In Our Opinion
Energy skills shortage: a boardroom issue

Future skills shortages and leadership development needs in the energy sector should be treated as strategic boardroom issues, according to the Energy Institute (EI).

This was one of the key recommendations drawn from surveys conducted by the EI in partnership with Deloitte, the management consultancy, and Norman Broadbent, an organisation dedicated to the search for executive talent in the energy sector, between 2005 and 2007.
 
A summary of the ‘Skills needs in the energy industry’ report was presented at International Petroleum Week, an annual four-day programme of major conferences and functions hosted in London by the EI.

For the first time, IP Week featured a seminar specifically dedicated to the issue of skills needs in the energy industry, during which delegates from 12 different oil and gas producing countries heard experts outline additional solutions. 

For some years, the sector has registered a steady decline in the number of new recruits, especially those with science, engineering and technical (SET) skills, whilst a large section of the workforce is rapidly approaching retirement. The EI, Deloitte and Norman Broadbent set out to examine the scale of the problem and surveyed both energy companies and individual employees to gauge how this could affect the industry and more importantly identify a way forward in responding to the challenge.
 
The surveys confirmed that, with 50 per cent of the respondents expecting to leave the industry within the next decade - mostly through retirement - and the main skills shortage being for technical specialists, particularly engineers, the industry faces a serious challenge in attracting a new generation of people to deliver the energy policies and targets set out by governments, especially in the UK.  

In addition to raising the issue of recruitment and training to boardroom level, the report concludes that, with two thirds of the individuals polled declaring a high degree of job satisfaction, there is an urgent need for the industry to demonstrate that it is one of the most exciting and technologically advanced field to work in, and to develop strategies to manage retention of experience and transfer of knowledge across the workforce. 
 
The research and subsequent report constitute the first phase of a wider project, the second part of which will focus on the supply side of the issue and survey universities, consultants and training providers. 

“The EI is keen to continue with this work of identifying skills issues and in particular to propose long-term solutions”, commented Sarah Beacock, EI’s Professional Affairs Director. “We will liaise with as many industry and academia partners as possible to put the resulting recommendations into effect.” 

<a href="http://www.energyinst.org"target=_blank>‘Skills needs in the energy industry’ report</a>