Mitigating Talent Squeeze in the OGSE Sector

It is well known that the Oil & Gas industry faces multiple issues, including market volatility, a shifting energy landscape with a focus on renewable energy, and an increased focus on safety culture, with the most pressing issue remaining a shortage of talent. By virtue of its supply chain, the OGSE sector also faces a talent shortage. As in any industry, it is the people that make it. The Oil & Gas industry in particular is highly specialised and requires strong technical skills and knowledge that take years to acquire.

Despite the perceived attraction of high-income prospects within this industry, the Oil & Gas industry has been facing a steady decline in the availability of labour over the past 10 years.?In the last decade, we have witnessed the volatility of oil prices.? This, coupled with sometimes difficult work conditions in remote areas, has caused many to think twice about joining the industry, preferring more stable positions in more perceived stable industries. According to an EY study, it is reported that Gen Z and Millennials will make up 72% of the world’s workforce by 2029. The study also reveals that 62% of Gen Z respondents find a career in the oil and gas industry unappealing.?The prevalent perception of the industry among this generation is that the industry is low-tech, unstable, predominantly blue-collar, dangerous, and harmful to society at large. This poses a significant obstacle in attracting, hiring, and retaining talent.

As things stand, the majority of the workforce in the industry worldwide is not only ageing but also predominantly male. The increase in workload to meet the future levels of labour demand compared to the rate of incoming new hires is not sufficient, especially when we consider the number of those retiring. In light of the current shrinking talent pool and the transition to renewable energy in the industry, steps must be taken to address these issues before it is too late. At MPRC, we continue to prioritise fostering talent and promoting diverse opportunities within the OGSE sector. Through a combination of awareness campaigns, career fairs, talent assistance programmes, and strategic partnerships in line with the National OGSE Industry Blueprint 2021-2030, MPRC is part of the collaborative synergy with various partners and stakeholders in consolidating initiatives to achieve the goal of having 60,000 skilled and semi-skilled OGSE talents available by 2030.

In an industry as dynamic and evolving as OGSE, continuous learning and professional development are crucial. MPRC advocates for further upskilling and certification to ensure that professionals are equipped with the latest knowledge and competencies. This commitment to education not only enhances individual career prospects but also strengthens the overall industry by fostering a workforce that is capable of meeting contemporary challenges and leveraging new technologies, thereby promoting resilience and sustainability.

MPRC’s efforts extend beyond awareness and education. We actively facilitate job matching by partnering with various bodies from both the private and public sectors. These collaborations aim to bridge the gap between job seekers and employers, ensuring that the right opportunities are highlighted for everyone.

With an annual revenue of RM72.7 billion (2022),? Malaysia’s OGSE sector is booming. This thriving sector offers rich and diverse career paths, catering to a wide range of interests and expertise. Whether one's passion lies in hands-on engineering, innovative technology development, strategic project management, or environmental conservation, there is a place for everyone in this sector.?

Find out more about how you can participate in the sector at www.mprc.gov.my