Skills Shortages in Oil, Gas & Resources: What’s Really Going On?

Skills shortages in the oil and gas sector, aren’t new, but they’re deepening. According to the Hays Salary Guide FY25/26, 84% of hiring managers report shortages, with half describing them as moderate to extreme.

The drivers behind these shortages are wide-ranging:

• Competition for the same candidates (53%)

• Professionals reaching retirement age (34%)

• Negative perception of the industry (15%)

• Cost of qualifications & training (9%)

• Time required to complete qualifications (5%)

As someone who has spent much of my career helping people step into the oil and gas industry, these pain points are familiar. Let’s unpack them.

1. Competing for the Same Candidates

In labour supply, skill shortages in oil and gas are a constant battle. When a candidate has multiple offers, you almost always lose. The real question is: why are we all fishing in the same small pond? Instead of competing, how do we expand the pool of talent?

This is particularly visible in roles like Rig Managers wanting to transition into Wellsite Representatives, a natural step, but one that requires continuous training and investment.

2. Entry-Level Challenges

Oil and gas jobs remain tough. While rigs are cleaner and more automated than 20 years ago, it’s still hard, manual work in remote environments. For younger generations, used to convenience and flexibility, that’s a harder sell. Retention at entry level continues to be a challenge.

3. Retirement & the “Brain Drain”

A wave of experienced professionals is retiring, taking decades of IP with them. The loss isn’t just numbers, it’s wisdom, mentorship, and problem-solving ability. We need better systems to capture and transfer knowledge before it disappears.

4. Perceptions of the Industry

Resources work has a PR problem. Some Tier 1 miners are tackling this with advertising campaigns showing how mining fuels everyday life from phones to electric vehicles. We need more of this education if we want the next generation to see a future here.

5. Barriers to Entry: Training Costs & Time

Compared with other blue-collar industries, oil and gas requires significantly more training hours just to set foot on site. It’s essential for safety but it also creates a steep barrier for those who might otherwise “have a go.”

What the Salary Data Tells Us

The Hays Salary Guide also highlights some interesting salary benchmarks across engineering, mining, and resources.

📊 Engineering – Oil & Gas

📊 Resources & Mining

These numbers show where competition is fiercest. For example:

• HD Fitters in WA: $225K typical salary, well above QLD at $190K.

• Engineering Managers in WA: $210K typical, compared to $194K in QLD.

• Drillers: Still in high demand, earning $160K typical in WA versus $125K in NSW.

It’s clear that location plays a huge role in attraction and retention, further fuelling competition between states.

Where Do We Go From Here?

The reality is: the talent pool isn’t keeping pace with demand. The solution isn’t just better pay — it’s about:

• Broadening the entry pipeline

• Retaining people through culture and conditions

• Educating the public about the industry’s importance

• Capturing knowledge before it’s lost

I don’t have all the answers, but I do believe the industry needs fresh thinking if we’re going to overcome these challenges.

👉 What are you seeing in your business and how are you tackling skills shortages?