What Market Data Says About the Oil and Energy Industry

Since 2024, the oil and energy industry has managed a complex market shaped by increasing demand patterns, technological advancements, and the global push toward decarbonization. Here are a few key insights and trends currently shaping the industry:

• ‍Demand and supply dynamics: Demand growth is slowing down for the global oil market mainly due to the accelerating adoption of clean energy technologies and energy-saving measures, according to findings by the International Energy Agency (IEA). Emerging economies, particularly in Asia, remain the primary demand drivers, with China and India at the forefront. However, advanced economies are experiencing a notable decline in oil consumption, leading to a plateau expected toward 2030. Despite this, global oil supply is anticipated to exceed demand, potentially creating surplus capacity that could challenge current market strategies, especially those managed by OPEC+.‍
• Energy transition and investments: The oil and energy industry is transforming with significant global energy investments, which were expected to surpass $3 trillion in 2024. A surge in clean energy spending — which now eclipses oil, gas, and coal investments — underscores this shift. While advanced economies and China dominate these investments, regions such as India, Brazil, Southeast Asia, and Africa are beginning to show promising growth, though many developing economies still face challenges. Additionally, nuclear power is experiencing a revival, with strategic investments in clean energy manufacturing prioritized by major economies to secure energy independence and global competitiveness. Addressing regional disparities and infrastructure bottlenecks remains crucial for sustaining the momentum of clean energy.‍
• Technological and strategic shifts: Integrating AI into the oil and gas sector is poised to increase operational efficiency and decision-making processes. Companies that effectively embrace AI — such as ExxonMobil, Shell, and Chevron — are expected to generate significantly more value than their competitors. Furthermore, the industry is experiencing a wave of mergers and acquisitions (M&A) driven by robust cash flows and the strategic need to optimize operations and carbon management.‍
• Regulatory and policy: New regulations in the U.S., the European Union, and beyond are steering the industry towards more stringent emissions reporting and operational decarbonization. These regulations will likely accelerate the adoption of low-carbon technologies and enhance transparency in emissions management, further aligning the industry with global climate goals.

Going forward, the oil and energy industry will be characterized by efforts to balance traditional activities with the growing imperative to transition to cleaner energy sources. But what does this mean for the workforces at oil and energy companies?

Quick Analysis of the Oil and Energy Industry

TalentNeuron recently reviewed workforce data for 52 oil and energy companies operating from September 2022 to August 2024 across North America, South America, Africa, Europe, the Middle East, Asia, and Oceania regions. These companies represent a diverse range of operations within the sector, covering key departments such as exploration, production, refining, distribution, and environmental management. With major players including ENOC in the United Arab Emirates to Statoil (Equinor) in Norway and Petroperú S.A. in Peru, the analysis reflects the industry’s critical global footprint and multifaceted nature.

The companies analyzed are deeply rooted in regional and global markets, with some focusing on specific regional dominance and others maintaining a more diversified global presence. Their workforce distribution, technology integration, and strategic approaches provide valuable insight into the current state of the oil and energy sector and the challenges and opportunities it faces as it undergoes a period of significant transformation.

Workforce retention and other trends

Workforce retention is a significant concern across the oil and energy industry. Notable employee churn typically takes place in December and January, like many other industries. Many employees tend to resign or transition to new opportunities at the start of the new year, reflecting a desire for change, better work-life balance, or new career prospects. This trend was observed across several companies, including Nayara Energy, QatarEnergy LNG, and Marathon Oil Corporation (now part of ConocoPhillips).

January and July, however, stand out as periods of increased hiring. January typically marks the beginning of the fiscal year, when companies align their workforce needs with new business goals. July often coincides with mid-year evaluations and expansions, leading to a spike in recruitment.

Technological integration and its impact

Companies rely heavily on advanced technology to optimize their operations, enhance productivity, and ensure compliance with industry regulations. The most used technologies include:

• Cloud computing services: Amazon Web Services (AWS), Microsoft Azure, Cloudflare, Google Cloud
• AI and data analytics: Google Analytics, Adobe Media Optimizer (no Adobe Advertising Cloud), Hotjar, Crazy Egg, Grafana, Piwik, Microsoft Application Insights
• Website and content: WordPress, Drupal, Atlassian Cloud, Liferay, Netlify
• Social and email: Microsoft Outlook, Mailjet, Amazon Simple Email Service (SES), Facebook (widget), LinkedIn (widget), Disqus
• Recruitment and HR management: SuccessFactors (SAP), Workday Recruit, Cornerstone OnDemand, Jobvite, Kenexa, UKG UltiPro, Lever, Taleo, PeopleFluent
• Data and network security: Dynatrace Ruxit, reCAPTCHA, OneTrust, SSL certificates, UltraDNS
• Customer relationship management (CRM): Salesforce, SAP

The widespread adoption of cloud computing platforms is central to digital transformation efforts, enabling companies to scale their operations, manage vast amounts of data, and deploy AI-driven analytics for decision-making. This transformation is essential for companies to remain competitive in a highly dynamic market.

AI and data analytics greatly enhance operational efficiency, too. Google Analytics and SuccessFactors (SAP), for example, monitor operations in real-time, optimize resource allocation, and predict maintenance needs, thereby reducing downtime and operational costs.

The integration of AI and data analytics is also crucial for sustainability initiatives, allowing EDP Renewables, MODEC, and other companies to track and reduce their carbon footprints. By more effectively managing their environmental impact, companies can ensure compliance with increasingly stringent global regulations.

Adopting carbon capture and storage (CCS) technologies by companies such as Statoil (Equinor) highlights a proactive approach to meeting environmental targets. As regulations around carbon emissions tighten, the ability to monitor and reduce emissions will become a critical differentiator in the industry.

Departmental focus trends

Many companies appear to have a strategic focus on finance, HR, operations, and sales while other departments — including engineering, marketing, IT, and accounting— are less prioritized. This is determined by the difference in total employees per department within the period of the analysis.

These numbers are not just statistics, they provide a crucial snapshot of where companies are investing in growth or cutting back.

Future industry impact

• ‍Increased automation and efficiency: AI and automation will continue to improve operational efficiency and reduce costs, resulting in leaner operations with fewer manual processes. This also provides an opportunity to upskill and reskill employees to integrate and manage new and emerging technology and retain skilled talent in competitive markets.‍
• Improved competitiveness and innovation: Adopting the latest technology will also help companies gain a competitive edge, particularly in optimizing supply chains, reducing operational risks, and enhancing customer engagement. This will further consolidate the industry as tech-savvy companies outperform less progressive operations.‍
• Sustainability as a competitive advantage: As the industry shifts toward greater sustainability, embracing technology will help companies meet regulatory requirements and appeal to a broader range of stakeholders, including investors, customers, and governments. This could drive the growth of renewable energy within the sector and reduce the industry’s overall carbon footprint.‍
• Cybersecurity and data protection: As the industry becomes increasingly digitized, the importance of cybersecurity will grow. Companies that fail to secure their data and systems could face significant risks, including operational disruptions and financial losses due to cyberattacks. Investing in robust cybersecurity measures will be essential for the industry’s future resilience.

Location analysis

The geographic distribution of key global energy hubs reflects the location strategy of companies and the industry’s reliance on region-specific resources and market opportunities.

• ‍Middle East: The Middle East remains a central hub for the oil and energy industry, with companies including ENOC and QatarEnergy LNG headquartered there. The region’s abundant oil and gas reserves make it a vital exploration, production, and distribution area. Companies in this region are increasingly investing in technology to optimize extraction and manage resources efficiently while also beginning to explore renewable energy options.‍
• Asia: Asia hosts a variety of energy companies, from PETRONAS Lubricants International in Malaysia to PTTEP in Thailand. The region is marked by rapid industrial growth and increasing energy demands, making it a crucial area for traditional oil and gas exploration and renewable energy investments. Asian companies are increasingly adopting technologies to meet these growing demands while addressing environmental challenges.‍
• North America: North America is home to several major players, such as Marathon Oil Corporation, Hess Corporation, and Canadian Natural Resources Limited (CNRL). A well-developed infrastructure, significant investment in technology, and a focus on both traditional fossil fuels and emerging energy sectors like shale gas and renewables characterize the region. The U.S. and Canada are key energy production and consumption markets, with companies using advanced technologies for operational efficiency and environmental compliance.‍
• South America: South American companies Petroperú S.A. in Peru and Eneva in Brazil play a significant role in the region’s energy market. South America is rich in natural resources, and these companies and others are capitalizing on this by expanding their operations locally and internationally. However, they also face challenges related to environmental preservation and the need to modernize infrastructure to meet global standards.‍
• Africa: In South Africa, KenGen Kenya and Engen are among the crucial players in the regional energy market. The continent’s vast natural resources present significant opportunities for exploration and production, but companies here also face infrastructure, political stability, and environmental conservation challenges. Investments in renewable energy are also gaining traction as Africa seeks to meet the growing energy needs of its population.‍
• Oceania: Oceania is home to companies such as Santos Ltd and Woodside Energy in Australia. The region’s energy industry is characterized by its focus on traditional fossil fuels and an increasing investment in renewable energy. Australia, in particular, is a significant exporter of LNG and has a well-developed infrastructure for oil and gas exploration. Companies in Oceania are also exploring opportunities in solar and wind energy, responding to domestic and international demand for cleaner energy sources. The region’s stability and advanced regulatory frameworks make it an attractive destination for energy investments, particularly in the renewable sector.‍
• Europe: European companies — including Statoil (Equinor) in Norway, Tüpraş in Turkey, and Linde Engineering in Germany — are at the forefront of the global shift towards sustainability. Europe’s stringent environmental regulations and a strong emphasis on renewable energy have driven these companies to invest heavily in carbon capture, storage technology, and renewable energy projects. The region is also a leader in digital transformation, with many companies adopting AI, cloud computing, and advanced data analytics.

Drilling Down to the Bottom Line

TalentNeuron's analysis of oil and energy companies reveals dramatic shifts driven by technology, particularly in workforce management post-Great Resignation. Companies adopting AI, cloud computing, and data analytics are enhancing operational efficiency, advancing sustainability, and positioning themselves as future leaders in the developing energy industry. Digital transformation and robust cybersecurity will also be crucial as the industry continues to influence the global transition toward a more sustainable and resilient energy system.