How To Solve The Energy Sector’s Growing Skills Shortage
Energy sector jobs in renewables are growing
The energy sector is experiencing a talent crisis. Despite concerns about Trump’s move to cut Inflation Reduction Act funding for renewables, experts anticipate that long-term energy sector trends will remain steady, given private companies’ investments, global momentum in renewables and oil and gas companies’ innovation efforts to reduce their environmental impact.
As industries compete for skilled talent, workforce shortages are becoming a broader economic challenge—whether in energy, AI or IT. Among energy sector employers, 71% struggle to find the skilled talent they need, according to Manpower. The shortage of skilled workers is fueled by a sharp rise in energy demand, which is expected to double by 2050, based on a McKinsey report. Both fossil fuels and renewables are affected, albeit for different reasons.
Renewables are poised to be a key driver of growth in energy jobs. The two fastest growing occupations are in renewable energy: wind turbine service technician jobs are projected to grow by 60% and solar photovoltaic installers by 48%, according to the U.S. Bureau of Labor Statistics. The rapid growth has outpaced the talent pipeline, leaving organizations struggling to fill not just entry-level jobs, but also executive and board positions with candidates who have specialized in the energy sector. Meanwhile, fossil fuels will remain an important source of energy and, with a growing involvement in renewables, compete for that talent, too.
Build Skills Through Local Partnership
The rural nature of areas that produce the most oil, gas and renewable energy, means that just getting people onto those locations is a major obstacle to finding skilled people, according to Brian Korgel, Director of The University of Texas at Austin Energy Institute and the Rashid Engineering Regents Chair Professor in the McKetta Department of Chemical Engineering, with whom I spoke over Zoom.
The Permian basin, which spreads over West Texas and southeastern New Mexico, is “the number one oil and gas producing region in the nation, one of the largest, if not the largest gas producing basin in the world, actually” Korgel pointed out, but it is largely rural. “So the one challenge is just literally the number of people who live out there.” But even in more populated and urban areas, the skills needed are not necessarily available.
One solution is to partner with schools and community colleges to develop micro-credential programs that fast-track workers into the sector, according to Korgel. Liquefied natural gas companies that require specific skills have developed tailored training programs to prepare people for jobs, for example in Corpus Christi. Oil and gas companies may have larger budgets to invest in workforce development by collaborating with universities and community colleges. This could include offering internships and apprenticeships.
