COVID-19 Takes Major Toll On Australian Oil & Gas Jobs

Oil and natural gas exploration -- geology and geophysics
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Newsman
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COVID-19 Takes Major Toll On Australian Oil & Gas Jobs

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The Covid-19 pandemic hit Australia’s already declining oil and gas workforce hard, causing a loss of over 28,000 jobs this year, equivalent to a quarter of the country’s total count, a Rystad Energy analysis reveals. Some of these jobs will be restored from 2021 onwards, but Australia’s oil and gas workforce will struggle to recover pre-pandemic levels for at least five years - if ever, as the energy transition increasingly alters the global energy mix.

In 2019, Australian oil and gas jobs numbered just over 110,000, a tally slashed by current downturn to just over 82,000, Rystad Energy calculates. The industry’s workforce had been declining steadily even before the present catastrophic downturn, shrinking by close to 24% in 2019 from what it was in 2014. This is, in part, the result of lagging growth in operators’ spending in the country.

The engineering and construction segments have been amongst the worst hit in the current downturn. Over 8,000 jobs have been lost across these segments, representing nearly 29% of all industry job cuts this year. With the combined spend expected to further decline by almost 17% by the end of next year in both segments, we do not expect to see a strong resurgence in hiring levels in the short term.

Maintenance has been one of the best performing segments historically, and contrary to the performance of other segments, it witnessed a net addition in jobs from 2014 to 2019. As operators curtail their discretionary spending and prioritize maintenance activities, this segment may, yet again, remain resilient and avoid any steep job cuts compared to the rest of the industry.

In line with the global trend, drilling is one of the worst affected segments, having seen more than 1,100 drillers’ jobs face the ax in Australia, per our estimates. However, starting 2021, rig demand across the country is expected to rise and average at 6.5 rig years between 2021-2025, thus offering a much-needed respite to workers across the drilling segment.

On an overall basis, we expect the labor market will rebound starting in late 2021, adding a minimum of 20,000 jobs by 2025.

“In the future, the growth in labor demand will not only be driven by oil and gas projects that are under development, but also to a great extent by the infrastructure initiatives undertaken by the Australian government to bring gas prices down across the country,” says Sumit Yadav, energy service research analyst at Rystad Energy.

https://oilprice.com/Latest-Energy-News ... -Jobs.html

Michael_Seman
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Re: COVID-19 Takes Major Toll On Australian Oil & Gas Jobs

Post by Michael_Seman »

Yeah I know one geophysical company closed their Perth office early in the pandemic. Now looks stupid as the city has been free of it for more than 7 months, and functioning as normal, while rest of the world goes to hell in a handbasket.

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