Navigating the Crossroads: Oil, Gas Industry Reimagines its Role in Tech Age

Molly Determan is President of Energy Workforce & Technology Council, the national trade association for the global energy technology and services sector, representing more than 665,000 U.S. jobs in the technology-driven energy value chain. Determan advocates on behalf of the energy workforce and speaks frequently on workforce, culture, leadership, HSE and supply chain. She is also a member of Hart Energy’s E&P 40 Under Forty class of 2021.

In an age where technology is advancing at an unprecedented pace, we find ourselves at a pivotal crossroads. The digital revolution is reshaping industries, transforming how we live, work and interact with the world. As global economies adapt to this rapid change, sectors that have long been the backbone of progress are now reimagining their roles and strategies. Among these, the oil and gas industry stands out as a key player, essential to powering our modern world and driving future innovation.

The late 1700s saw the Industrial Revolution transform manufacturing and energy production, creating an immense demand for petroleum. Today, the oil and gas sector faces a critical crossroads defined by two major forces: the need to embrace digital transformation and the challenge of engaging a new generation of workers.

First, digital transformation is at the forefront. As technology advances rapidly, the sector is integrating data analytics, automation and artificial intelligence into its operations. This shift is essential for improving efficiency, increasing safety, reducing costs and enhancing decision-making. Embracing these technologies is not merely an option but a necessity to stay competitive in a rapidly evolving landscape.

Second, the industry is actively addressing workforce engagement. Companies realize they are better off by addressing head-on the expectations of Millennials and Gen Z, who prioritize work-life balance, career growth and meaningful impact over financial compensation. This requires a strategic approach to attract, retain and develop young talent, aligning with their values and career aspirations.

Additionally, the industry continues meeting complex challenges by using technology to achieve a lower-carbon future. The industry is leveraging advanced technologies to reduce emissions and enhance sustainability. And we do this while maintaining the sector’s critical role in powering economies. It’s no small feat.

Managing this involves significant investment and a shift in mindset. Companies must not only adapt to new technologies but also foster a culture of innovation and growth. This cultural shift is vital for bridging the generational divide and attracting a diverse talent pool capable of driving future advancements.

Currently, the oil and gas industry faces a critical challenge: engaging the next generation of workers—Millennials and Gen Z. Research shows that younger generations are often less engaged in their jobs compared to their predecessors, seeking better opportunities and showing less long-term commitment. However, this presents an opportunity to harness their traits to cultivate a more dynamic, innovative and successful workforce.

Gen Z, the newest entrant into the workforce, brings distinct values and expectations shaped by its experiences. I think it’s a huge opportunity for us that Gen Z prioritizes meaningful work over compensation. The oil and gas sector has a compelling story to tell, particularly regarding how it tackles complex challenges, enhances sustainability and reduces emissions. With 72% of Gen Z motivated by jobs that positively impact society, it’s crucial for the industry to clearly communicate its role in addressing these issues.

Additionally, Gen Z is deeply immersed in technology, averaging 10 hours a day online and using digital platforms for job searches. Companies are successfully engaging with potential employees through platforms like TikTok, offering a relatable and engaging presence. By meeting Gen Z where it is, the industry can attract tech-savvy individuals who are essential for driving innovation.

Next year, Millennials will make up 75% of the global workforce, yet only 29% report being engaged at work. While this might seem concerning, it highlights a significant opportunity for companies to connect more deeply with Millennials. To do so, organizations must understand that Millennials value purpose, transparency and open communication—attributes that may challenge traditional approaches but are crucial for attracting and retaining top talent.

A remarkable 87% of Millennials consider professional growth essential in their jobs. While annual promotions may not be feasible for everyone, offering lateral moves, special projects and skill-building opportunities can enhance employees’ resumes and encourage a more skilled and versatile workforce. By prioritizing career development, the oil and gas sector can transition potential flight risks into loyal, long-term employees.

As we look to the future, it is clear that the oil and gas sector can continue to face any challenge we’re given, just like this one. Just as the Industrial Revolution redefined our approach to energy, today’s digital revolution offers an opportunity to redefine how we operate and engage with emerging talent. By building cultures of innovation and growth, the industry bridges generational divides and can harness the full potential of a new workforce. The future of oil and gas is not just about what’s beneath the surface; it’s about the transformative power of the talent we cultivate and the innovative path we chart for the years to come.