"From the industrial platforms of oil rigs to air-conditioned design offices, the oil and gas industry is confronted with a shortage of brawn and brains so severe that it threatens to stall exploration and production growth around the world," argue BAH's Karim Sabbagh, head of marketing, Middle East, and Ren Stephan, who is leading marketing for the firm's energy practice.

"The importance of the oil industry to Middle East economies cannot be underestimated," said Sabbagh. "The oil and gas industry in this region cannot afford to be stunted by something as basic as acquiring a competent workforce. This is a problem that can have considerable consequences to this region."

The talent challenge is not new.  At the end of the 80s, skills shortages in the North Sea oil and gas industry hit the headlines, the close of the 90s saw major lay-offs particularly in the US, but it is over the last 12 to 18 months that a confluence of events, including oil prices, planned investments and industry demographics have stretched industry resources globally to breaking point, the consultants explain.

According to the Interstate Oil and Gas Compact Commission (IOGCC) in the US, the average employee working for a major operator or service company is 46 to 49 years old and the average retirement age for the industry is 55 years. It is because of this that the problem the industry faces is immense, according to BAH. There threatens to be a global "brain drain" of talent, as thousands of oil and gas engineers and employees retire.

In new investment hot spots, such as Canada and Qatar, some companies are looking to buy their way out of the crisis, notably poaching qualified staff from other firms, BAH observes.  

Karim and Stephan say it is incumbent on management teams to think carefully about the business implications of skills shortages and how best to react. This is no longer an isolated "people issue" but presents a strategic business challenge requiring joint ownership between technical, operating, and HR leaders. Companies need to take a fresh look at resourcing over a longer time horizon than they have previously cared to use. Stephan also adds: "There is no option but to see this strategic challenge as a top three priority to ensure a company's health and in some cases its survival."