US shale magnate Harold Hamm is leading attempts to lure an increasingly skeptical younger generation to the oil and gas industry as climate concerns and job insecurity dent the attractiveness of the industry for graduates and skilled tradespeople.
“We are going to be using oil for the next 50 years and ‘clean burning’ natural gas probably for the next 100 or 150 years . . . we want to get the next generation of game-changers involved,” said the businessman, who recently donated $50mn to establish the Hamm Institute for American Energy at Oklahoma State University.
The 78-year-old pioneered a two-decades-long shale revolution that has transformed the US into the world’s biggest oil and gas producer.
But, as the world reached an agreement to “transition away from fossil fuels” at the UN COP28 climate conference in December, he and other industry leaders have turned their attention to addressing a fall in applicants for petroleum engineering and related courses in the US and Europe.
The Hamm Institute is one of a growing number of initiatives aiming to dispel negative perceptions of the industry. In 2022, ExxonMobil donated $16.4mn to universities and colleges worldwide and Chevron has helped establish a jobs readiness program in the US called SkillsReady to prepare and attract workers to the oil and gas sectors.
Oil majors Shell and BP offer scholarships and apprenticeship programs to lure more young people to the sector. Shell has also led efforts on platforms popular among young people such as TikTok and Twitch to promote their traditional products.
But they face a formidable challenge. Undergraduate enrolment in a survey of mainly US petroleum engineering courses has fallen from 7,046 in 2019 to 3,911 last year, according to a study by Lloyd Heinze, emeritus professor at Texas Tech University. Some colleges in the US and Europe have dropped oil-and-gas-focused courses from their curriculums while others are restructuring courses to include green energy.
Heightened public concerns about climate change are causing a backlash against the oil and gas industries on some campuses, particularly in Europe. In November, Swansea became the seventh UK university to ban fossil fuel companies from advertising to students at career fairs.
Worldwide membership of the Society of Petroleum Engineers, an industry group, fell from 168,125 in 2015 to 119,120 in 2022, while the average age of professional members has increased to 48 years, up from 45 years over the same period.
“[Students have] been told for a very long time that oil and gas is going away and they’re concerned about having long-term careers,” said Jennifer Miskimins, head of petroleum engineering at the CO School of Mines.
She said the skills shortage was already having an impact and some companies have told the school that they were not hitting “hiring targets”.
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Data & Systems Strategist | Geoscientist | NFP Board member
3moThank you Newmont Australia, Kim Solomons, Kim Scully, Sunray Zheng, Michi Whittall, RM for your continued support to Get Into Resources Inc. event to inspire the next generation to pursue careers in the Resources industry. This year over 520 students from 21 schools in Perth attended the event over 3 days. Look forward to the ongoing collaboration.