The U.S. oil and gas industry supports 10.8 million full-time and part-time jobs in all 50 states, making up 5.4 percent of the country’s workforce, and contributes nearly $1.8 trillion per year to the U.S. economy, according to an American Petroleum Institute report prepared by PricewaterhouseCoopers in 2021.

The U.S. oil and gas industry directly employed 948,943 professionals in 2022, according to the Texas Independent Producers & Royalty Owners Association’s (TIPRO) State of Energy Report, which noted that this figure represented a net increase of 39,721 direct jobs compared to 2021.

Average annual pay in the oil and gas industry is more than $100,000, which is twice the U.S. average, according to the U.S. Bureau of Labor Statistics.

In 2012, the unconventional oil and natural gas value chain and energy-related chemicals activity together supported more than 2.1 million jobs, according to HIS—a number that’s projected to reach 3.9 million by 2025.

Meeting future workforce demands

As an industry that supports 10.8 million American jobs, oil and natural gas companies are preparing for the future of energy by investing in a diverse, inclusive and resilient workforce. Attracting and retaining the next generation of engineers, scientists and skilled laborers—the problem solvers who will tackle the world’s greatest energy challenges—is critical as the industry evolves in a world focused on reducing greenhouse gas emissions.

With nearly 1.9 million job opportunities projected in the oil & natural gas and petrochemical industries through 2035, there is a vast opportunity for the industry to attract, retain, and develop lifelong careers for a younger generation or workers who possess unique characteristics that will enable them to power past the impossible. By harnessing the next generation’s unshakable confidence in a better future and use of technology, the industry is positioned well to address tomorrow’s greatest challenges.

Vast opportunity exists for the oil and natural gas industry to attract, retain, and develop lifelong careers for military veterans in the industry. Veterans come to the civilian workforce with extensive technical and nontechnical skills gained through military experience and training. Many of these skills have direct applicability to the oil and gas industry, making them ideal candidates.

Minority workers and women represent critically vital and available talent pools to help meet the industry’s future workforce demands. Workforce training is key to this projected growth. In order for minority workers and women to be competitive for the 1.9 million job opportunities it will require:

• Significant improvement in minority and female participation in Science, Technology, Engineering and Mathematics (STEM) related disciplines at the primary and secondary school levels.
• Significant improvement in high school completion rates for Hispanics and African Americans
• Secondary and post-secondary staff (e.g., principals, faculty, counselors) being trained to inform their students on the workforce opportunities in the industry and the training required
• Partnerships between higher education and industry, especially at the community college level.

The principal findings of an IHS report for the American Petroleum Institute include:

• 707,000 jobs, or 38% of the total, are projected to be filled by African American and Hispanic workers through 2035. (131,000 for African Americans and 576,000 for Hispanics).
• Women in the industry are projected to account for more than 290,000 of the job opportunities, 16% of the total through 2035.

Opportunities for women

There are already more than 237,000 women working in the oil & natural gas and petrochemical industries. Nearly half of those women (over 114,000) work in management and professional occupations.

IHS projects continued opportunity for women in management and professional fields, with women accounting for 154,000 of these job opportunities through 2035. Much of the job growth is projected to occur in blue collar professions. There is significant potential for female blue-collar employment if interest and training are directed toward women to increase female participation in those areas.

Opportunities for minorities

The share of minorities employed in the oil & natural gas and petrochemicals industries is rising: Minority employment will rise from about one-quarter of the total in 2015 to more than one-third (36%) in 2035.

African American and Hispanic workers are projected to make up over one-fourth of the new hires in management, business, and financial jobs in the industry through 2035.

Meaningful career opportunities also exist in the industry for other minority groups, such as Native Americans and Asian Americans. For example, in 2011 an estimated 20% of known U.S. oil and natural gas reserves were beneath tribal lands, with the U.S. Department of the Interior estimating that Indian lands could produce up to 5.35 billion barrels of oil and 37.7 trillion cubic feet of natural gas.

Visit Caterpillar Careers to view available opportunities. To learn more about strategies for recruitment and retention, access episode 7 of The Energy Pipeline podcast with special guest Molly Determan, president of the Energy Workforce and Technology Council.