Oil and gas industry seeks AI talent to harness unstructured data

Oil and gas industry seeks AI talent to harness unstructured data

In a significant shift, the traditional oil and gas industry is looking for artificial intelligence (AI) talent to transform unstructured data into accurate reports and actionable analytics. The industry's hiring in tech roles grew 14-16 percent year-on-year (Y-o-Y) in the last two years, according to data from recruitment company TeamLease Digital, shared with Moneycontrol.

While Q3 of FY 24 saw a dip in job numbers, there was an uptick of 26 percent in Q2 of 2024 as compared to Q1 2024. The demand constitutes both full-time and part-time workers.

The upstream business of the oil and gas industry involves activities such as drilling, refining, and operating rigs, which typically occur offsite. This sector is characterised by its continuous process operations, generating vast amounts of unstructured data.

“Unfortunately, this data is often not captured or aligned, leading to a significant loss of potential insights, and hindering automation efforts,” Munira Loliwala, AVP of Strategy and Growth at TeamLease Digital, told Moneycontrol.

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To address this challenge, Loliwala said the industry can leverage AI and generative AI (GenAI) technologies to convert unstructured data into accurate reports and analytics. This transformation enhances operational excellence and process efficiency.

For instance, GenAI can serve as a co-pilot, supporting equipment and processes in various aspects such as safety, maintenance, and operations. It also optimises assets, from drilling facilities to crude oil storage pumps, ultimately improving process workflows.

Sought-after roles

Tech roles such as Programming, Data Science, Analytics and RPA account for almost 60 percent of overall hiring, per the TeamLease Digital data. These roles are critical in harnessing the power of AI to drive innovation and efficiency in the upstream oil and gas industry.

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Loliwala said hiring from outside is currently preferred for AI roles as  developing in-house capabilities for advanced roles is currently challenging for the upstream oil and gas industry due to several factors.

“Firstly, these companies often lack the necessary built-in technology infrastructure to support the upskilling of their workforce. Without the required technology and equipment, they are unable to train and develop their employees in these advanced roles effectively,” she said.

Secondly, Loliwala said these companies typically lack the in-house capability to measure the outcomes of these roles. As a result, they must rely on third-party providers for analytics and performance evaluation, further necessitating the outsourcing of both technology and talent.

Thirdly, attracting tech talent to traditional oil and gas companies remains a challenge. The talent pool is often more inclined towards the energy and commodities market, which appears more appealing compared to the traditional oil and gas sector. The tech community is still at an early stage in engaging with core oil and gas organisations, making it difficult for these companies to attract and retain skilled professionals.

Evolving hiring strategy

The upstream oil and gas industry is continually evolving, and this transformation includes efforts to attract and retain tech talent. Companies in this sector have been implementing several strategies to enhance their appeal to potential employees.

One effective strategy has been the relocation of operations to tier-two and tier-three cities such as Ahmedabad, Baroda, Pune, Hyderabad, and Panipat, Loliwala said. By moving away from major tier-one metropolitan areas such as Mumbai, Bengaluru, and Gurugram, these companies have been able to tap the local talent pool in smaller cities.

For example, cities such as Indore and Kochi have become attractive hiring hubs due to their proximity to refineries and existing talent.

“The salary revisions in the industry also play a crucial role. Annually, industries see an uptick of 10-12 percent in salary to attract talent. This steady increase helps make positions in the oil and gas sector more competitive compared to other industries,” Loliwala said.

As per data, generic  roles have seen a marginal difference in salary whereas niche skills continue to get a 15 percent or even 20 percent jump in salary levels.

Currently, the salary for niche job roles such as Data Scientist ranges between 14 lakh per annum (LPA) to 37 LPA. Most organisations in the oil and gas industry only hire mid-level candidates with seven or more years of experience as the sector needs job-ready resources for faster implementation.

The upstream oil and gas companies have also utilised a combination of third-party resources and local talent to build their workforce. Initially, many core roles were filled by outsourcing, including the middle-layer management. Now, these companies are focusing on strengthening their upper management by balancing outsourced talent with core employees. This approach not only provides job stability but also offers a clear path for career progression within the organisation.

Another factor contributing to the attractiveness of these jobs is the low attrition rate, which averages just 6-7 percent for tech talent, Loliwala said.