Transitioning from Oil & Gas to Renewable Energy

Introduction

Before we begin, I would like to introduce myself. I am Natascha, a Recruitment Consultant here at WeConnect Energy I am based out of our new UAE office, focusing on recruitment and relationship building in the global Low Carbon and Renewable Energy market. With a career dedicated to exploring the energy market, I want to share some topical first hand insights relevant to many in the industry. In this blog, I’ll provide guidance for those considering a transition to the Renewables sector and discuss potential obstacles.

I’m now three months into my role here in extravagant Dubai, I find myself reflecting on my career journey in the energy sector and wanted to give some advice as it frequently crops up both as a conversation within the company, but also during client and candidate meetings. Whilst I can’t claim to have scaled a wind turbine, or installed a solar panel, my experience of the Low Carbon and Renewables sector is learned from my recruitment experiences and advice over the past five plus years.

One of the reasons for writing this blog is that I regularly receive messages from candidates asking for advice on how to transition into new energy sectors. This transition is not always easy and depends heavily on their experience. My approach involves examining their experience, the types of projects they’ve been part of, and understanding their focus and drive.

With that, I wanted to share some advice that I think could help those of you thinking about a career in energy, to those thinking of transition roles or just pondering ‘what if’? I hope you find this information of value, and please feel free to connect with me if you need any support with your renewable energy recruitment needs. I’ll be incorporating insights from various sources, including data, statistics, and other resources in addition to my opinion, to give you what I hope is a well-rounded perspective.

Setting the Scene

I’ll begin with a strong statement - energy substitution or improvements are considered the backbone of every major progress in human history. In a modern setting, examples of these improvements include the change from centralised to distributed energy generation, the increase of renewables in the energy mix, and improvements in digital tech associated with this industry.  

Although news can sometimes be mixed, the transition from traditional energy sectors like oil and gas to renewable energy is gaining significant momentum. According to the IEA's Renewables 2023 report, the world is projected to add more renewable energy capacity in the next five years than it has in the past century – a truly eye-opening statistic. The report states that this growth is largely driven by solar PV and wind power, which are now more cost-effective than new and existing fossil fuel plants​.

In my experience, there has been a notable rise in renewable energy capacity, not only in my home country, South Africa, but also in the UAE. In my eyes. this signifies a strong commitment to sustainable development and reducing carbon footprint. It highlights both countries' strategic shift towards diversifying their energy sources, and enhancing energy security, the latter of which is a hot topic post the recent UK government elections which my colleagues wrote about recently.

While these statistics look promising on paper, this growth hinges on one critical factor: talent. Currently, the talent gap is substantial to say the least. A McKinsey report that I read whilst writing this blog suggests that between now and 2030, the Renewables industry (minus China) will need an additional 1.1 million blue-collar workers, and an additional 1.7million workers to manage and upkeep them. I am sure you would agree, that’s a sizeable figure.

Interestingly, the more I researched, the more conflicting employment statistics I found. An important point to add here is that some existing literature suggests that substituting fossil fuels with renewables is actually only likely to result in small net employment gains. For professionals in the oil and gas industry, especially those who have just stepped into this world, it’s easy for me to see why projections like this can be daunting to hear. This shift brings both challenges and opportunities, which I will go into some more detail later. But first, I’ll provide a bird’s-eye view of the current oil and gas landscape.

The Evolving Role of Oil and Gas

We’ve seen a real shift in perspectives regarding the future of oil and gas. Talks of the end of oil have been replaced by a recognition of the sector’s importance in the here and now, and the role it will play as the energy market transforms. Oil and gas account for 55% of global energy consumption and entire industries remain dependent on oil and gas. The industry has a significant role to play both in energy delivery today and in enabling the energy transition for tomorrow. This shift brings opportunity, and I’ll share some suggestions I have for those wishing to make the change.

The transition isn’t always direct, and it often requires training and education, but many workers from the traditional energy sector can successfully make the move into the green energy sector. I have seen first-hand how key skills in the O&G industry can successfully transition into renewables. Some of these skills include project management, construction management, and engineering disciplines, with electrical engineers finding the transition particularly smooth.

Government-owned companies, known as National Oil Companies (NOCs), such as the Dubai National Oil Company (DNOC) in oil-and gas-rich states, produce much of the world’s oil. These NOCs are, of course, focused on maximising the value of the resources they are fortunate to possess, as well as raising the revenue they can. In some countries, oil and gas may not be a major direct employer, but the indirect roles and supply chains hold considerable importance and responsible for sizeable government revenue streams. In this race to net zero, considerations for addressing impacts on workers and those vulnerable communities in developing and middle-income countries has been a topic of focus for many, and rightly so in my opinion.

Issues such as impacts on public spending, fuel subsidies for exposed groups are all important considerations. With this in mind, transition investments should be focused on creating jobs and preserving those key revenue streams to ensure workers and communities are both safeguarded. The concept of a ‘just transition’ is paramount in this wider . ‘Just’ is about ensuring that workers in fossil fuel industries receive essential retraining, education, and support to transition into new jobs within the renewable energy sector or other sustainable industries.

I often see discussions about NOCs and how they will continue to produce enough oil to meet revenue and employment goals, but are now altering portfolios towards low-carbon energy in a responsible manner–this is reassuring news for those employed within oil and gas.

In another one of WeConnect Energy’s recent blogs, some of my colleagues discussed the new Labour UK governent policies, focusing on one particularly standout item on the manifesto: the creation of the Great Britain Energy. There are plenty of stats to digest within it, but some standout are that as part of this £8+ billion initiative, the Labour party has promised some 69,000  new roles in clean energy. Something which I have no doubt gives a sense of relief to those already working in the Oil and Gas sectors in the UK.

Another article I will highlight in a bit more depth further on, provides evidence on the quantity and quality of jobs created through a low carbon energy transition. It’s worth remembering that technological and industry shifts often lead to the evolution of roles, more than their outright replacement. I have seen those who have transferable skills move from the traditional sector to the green energy sector including in areas such as project management, technical knowledge, physical labour, safety protocols, and logistical operations for example.

Bridging the Talent Gap

Our managing director, Dan Brooks, presented on this topic area at Intersolar in Q2 this year, and used Scotland as an example of a country ‘bridging this gap’. Through the Hydrogen Action Plan, Scotland set out targets to become a leading producer and exporter of hydrogen, particularly green hydrogen, which is produced using electricity from renewable sources. Dan emphasised that achieving these targets requires a skilled workforce. We have seen a big push of industry-level initiatives to spark interest in STEM career paths among school students, aiming to inspire them towards more technical professions. A good local example from here in the UAE is ADNOC’s STEM@Home program, which aims to nurture the next generation of energy workers.

Despite these efforts, there remains uncertainty regarding how the current shortfall in the talent pipeline might broadly impact process industries. A stat I found particularly revealing is from 2023 by the Institution of Engineering and Technology (IET) highlights that the STEM sector in the UK alone faces a shortfall of over 173,000 unfilled roles. This clearly showcases the disconnect between industry needs and student career paths.