Big Oil & Job Growth: One Trillion Reasons Industrial Hiring Will Increase
One trillion dollars. Sounds like a tremendous amount of money, right? That’s exactly how much is expected to be invested in the oil industry each year for the next 25 years. This massive shot in the arm will be necessary to keep up with rising oil demand not just in the United States, but across the world. As this $25 trillion is injected into the sector and demand rises, there will be an increased need for jobs not just directly on an oil rig, but throughout the entire production process. Here’s a look at why the oil industry is set to expand, and how it will increase industrial hiring.
World Demand Is Rising
The biggest factor that drives any industry is demand, and oil is no different. When economic conditions are strong energy consumption tends to increase. People purchase more automobiles, worry less about the price at the pump, and drive more. As the U.S. economy continues to improve, people are naturally consuming more energy.
Oil demand is not only rising in the U.S., but across the world. As the 1.3 billion citizens in India buy more cars, their consumption also increases. Oil demand in India is currently booming, having grown 9% over last year and is expected to continue in that direction. Think that doesn’t affect U.S. workers? India imports 80% of its oil, meaning this large demand could mean increased American jobs.
China, increasingly known for its massive traffic jams, is likewise impacting oil consumption. While demand is only expected to grow 1.2% in the next decade, that still amounts to a significant volume because China is such an enormous consumer of oil.
Regulations are Loosening
Demand is necessary for driving an industry, but heavy regulations can curb industry growth swiftly. When it comes to oil, the landscape surrounding regulations and government representation is quickly shifting in support of increased production.
Freshly sworn-in Secretary of State Rex Tillerson was the CEO of ExxonMobil up until his new high-ranking government position. Recently approved EPA head Scott Pruitt has a history of fighting against imposing environmental regulations. These individuals sit in powerful and influential positions and are expected to be a boon for the oil industry.
The increasing support of deregulation is not confined to major cabinet positions. The U.S. House of Representatives voted to repeal rules that oil companies found to be burdensome and costly. Even if this effort does not pass the Senate, lawmakers have made it clear that they will continue to push for actions that will result in oil industry growth.
The U.S. Shale Industry Grows
Not to be overlooked is shale oil production in the U.S. This sector of energy production is surging, having recently recorded its largest one week increase in five years with the number of active rigs jumping from 35 to 694. This alternative method of extracting oil will be tied to many of the same factors as the oil industry as a whole, and will similarly increase industrial job demand as time goes on.
What About Renewable Energy?
Clean, renewable energy innovations and technology have made headlines more and more in recent years as many look for new sources to maintain human energy consumption. Despite the great amount of progress that has been made, this sector is not in a position to hurt the oil industry in the near future.
While people such as Bill Gates have pledged $1 Billion to discover new energy sources, they also understand that this is a long-term goal and not a short-term reality. The project, called Breakthrough Energy Ventures, has a 20-year research vision. Combine that time period with the length of time it will take to make something commercially available for the public to adopt, and an oil alternative is decades away.
And when it comes to the adoption of current renewable energy methods, there is the added problem of competition delaying them further. Several types of fully-electric, hybrid, hydrogen, and solar cars have been developed and marketed, and as each competes with the other the traditional gasoline engine is an affordable and easy choice for consumers to make.
The Trickle Down Effect
When a large industry such as oil sees growth and increased production, it affects far more than just those on an oil company payroll. Countless businesses support oil, whether by manufacturing parts for drilling or producing industrial machinery and pipelines. Even those workers that make the industrial tools used for other manufacturers to create drilling parts will see an increase in demand. All the way down the line, even if they seemed unrelated at the surface level, ramped up oil production means increased industrial hiring.
How to Stay Competitive During Increasing Industrial Hiring
For a manufacturing or industrial business, hiring will be sure to spike in 2017 as a result of increased oil demand and production. When the pace quickens, will you be able to keep up? For those looking to fill roles quickly with experienced talent in order to capitalize on and support increased demand, the workforce solutions of a proven staffing partner will provide a streamlined solution.
For a staffing partner that can help you keep up with your HR demand, contact us today.