The American oil and gas industry is in the midst of an historic boom. Propelled by several crucial new technologies as well as increasing demand for hydrocarbon products in the developing world, prices haven't meaningfully declined with the recent increase in supply. Although it's unclear whether this trend is sustainable over the long term, it may be useful for aspiring oil and gas workers to take stock of the industry's current competitive landscape.
Employment Shortages
One of the most noteworthy impacts of the ongoing oil and gas boom is a profound employment shortage in certain industries and geographical areas. Most of the richest North American deposits of oil and gas lie far from major population centers in places like West Texas, North Dakota and northern Alberta. Although the small towns and cities that lie near and within these deposits are booming, it remains difficult to attract workers to remote locations for short-term positions.
As such, drillers and logistics firms are willing to pay eye-popping premiums for quality labor. Even inexperienced oilfield workers can earn impressive sums in the continent's oil patches. However, this doesn't mean that there isn't any competition for certain jobs. Positions that offer regular hours, generous time off and familial contact tend to attract applicants in droves.
Technological Innovations and Outstanding Needs
Several technological innovations have made the recent oil and gas boom possible. In Canada, new extraction technology has made it cost-effective to mine the so-called "tar sands" for heavy petroleum. In the United States, hydraulic fracturing techniques have fomented a heady boom in drilling on shale formations that were previously impervious to exploration.
However, both of these technologies have lowered barriers to entry for smaller drilling and exploration firms. In turn, this has created a highly competitive landscape in which companies frequently merge or die off. For workers, this creates a high-risk, high-reward proposition in which job losses and layoffs are to be expected.
Economic Benefits of the Oil Boom
While the oil and gas boom has generally been a positive development for rural communities that may have been economically depressed before the arrival of drilling firms, it has created some unforeseen headaches. For instance, oil patch jobs that would normally pay minimum wage now offer starting rates of double or even triple that figure. In western North Dakota, hourly positions at places like McDonald's and Walmart can pay $18 per hour or more. Although this is great for workers, it raises the cost of doing business and may squeeze independent retailers out of the market.
Noteworthy Oil and Gas Jobs
There are a number of particularly lucrative oil and gas jobs that aren't overly dangerous or disruptive. These include:
- Truck driving jobs that pay as much as $110,000 per year
- Field engineers who avoid high-impact work and earn $80,000 or more per year
- Geologists who explore new formations and earn $150,000 or more per year
Caveats and Cautions for Workers
Competition for these and other lucrative jobs can create distortions in the labor market and lead to unexpected problems for eager workers. Generally speaking, those who wish to "get ahead" in the oil and gas business would do well to select a geographical area in which to work and begin sending applications or inquiries to firms that operate in it. Alternatively, prospective workers may wish to find larger firms that operate in multiple oil patches.
Final Thoughts
As North American oil and gas development continues apace, opportunities for aspiring workers abound. However, it's crucial for entrants to take a long view of the industry and determine where opportunities might exist in five, 10 or 15 years. Additionally, it's important for workers to set reasonable expectations for employment, pay and advancement. Those who understand where the industry is headed should be well-positioned to capitalize on its growth.
