90% of oil and gas executives agree that investments in technology and workforce are essential to surviving current market conditions, according to a new EY survey.
In fact, 58% of respondents said the COVID-19 pandemic has made investing in digital technology more urgent, with a majority planning to invest a great deal (29%) or moderate amount (51%) relative to their total budget.
Andy Brogan, EY Global Oil & Gas Leader, says: “The COVID-19 pandemic has significantly accelerated the timeline for digital technology adoption from five years to three months. The cost savings digital can deliver for organizations is critical for survival in today’s low-price environment, as oil and gas companies look to gain greater operational efficiencies and drive productivity across the value chain.
“However, to capture the full value of these investments, oil and gas companies need the skills to harness and use the technology to its maximum potential.”
According to the survey, nearly half (46%) of companies, on average, do not have the skills within their current workforce to realize the investment on their adopted technologies. Companies recognize a lack of maturity in many skills around digital technologies they have deemed as critical — on average, the gap between importance and maturity is 36%.
For instance, the increasing availability of big-data analytics and insights was cited by 43% of executives as one of the top three trends that will positively impact their company’s business growth in the next three years. Yet, the gap between strategic importance and maturity of key skills was one of the widest on data analytics at 59%.
92% of executives agree their ability to reskill as a company will determine their success over the next three years. However, only nine percent feel strongly that they have a robust plan in place to do so, and just three percent feel strongly their organization is good at teaching in-demand skills.
When asked about their current workforce, respondents said 60% of workers need to be reskilled or upskilled, and it will take an average of 10 months to reskill the average worker, with nearly half of executives (48%) expecting it to take a year or longer.
Executives surveyed raised the time needed to reskill (97%), competing priorities (95%) and difficulty in assessing employee progress (95%) as primary impediments to effective and timely reskilling. Furthermore, two-thirds expressed a belief their organization’s structure hinders its ability to innovate, making solving these challenges as well as others, more difficult.
Oil and gas executives anticipate greater access to workers with digital skills within the next three years, which will help alleviate the current talent and skills shortage. The proportion of executives whose companies have adequate access to workers with cloud computing skills is expected to improve 11 percentage points over current availability along with digital literacy (+18), data science (+26) and artificial intelligence (+24), respectively.