Generational Shift – Lack of Fossil Fuel Job Interest
One of the key contributing factors to climate change and the issues that come along with it is fossil fuels, which emit the greenhouse gases that are making our planet a boiling pot. Despite this, fossil fuel companies are enjoying some of their best times in the present as demand for products like oil and natural gas are still extremely high, leading to record profits and higher salaries in the industry.
Despite this, we are seeing a trend that may be concerning for the industry moving forward. Recent data shows that entrants for petroleum engineering in US colleges have reached a multi-year low despite oil and natural gas performing quite well during that time period, and a similar trend has been recorded in European countries. Historically, when fossil fuels have increased in value, the number of applicants for these petroleum engineering programs increases, but the viewpoint has changed significantly now. Students entering college are concerned about the viability of the industry moving forward due to the strong push towards renewable energy sources being proposed by the world, along with the negative environmental impacts associated with oil and gas.
As a result, workers are now in high demand, but sky-high salaries are clearly failing to serve as a solution. Analysts believe that companies in the industry need to clearly define their plans regarding transitioning to other energy sources to display that there is still a future in their industry moving forward. Additionally, universities across the country are considering removing the term “petroleum” from these programs due to the negative connotations associated with it, a move they are counting on to work as talent is necessary for this transition to occur in the first place.
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I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.