Robots Could Replace Hundreds Of Thousands Of Jobs In The Oil And Gas Market, Saving Billions In Drilling Costs By 2030

Oil And Gas Offshore Industry Begins To Worry About The Use Of Robots And The Replacement Of Jobs By Them

In a report that examined the adoption of robots throughout the oil and gas industry, Rystad Energy found that existing solutions could replace hundreds of thousands of oil and gas jobs globally and reduce drilling labor costs by several billion dollars by 2030, if there is an industry push for such a transition.

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Oil And Gas Industry May Gain New Robot Employees

One of the segments that has much to gain from the adoption of robots is oil drilling, as it is highly expensive and involves performing dangerous tasks in challenging environments. Robotic solutions have already been successfully introduced in drilling operations, with companies like Nabors at the forefront of development, taking a good share of jobs in the region.

Applying current supplier specifications, which suggest that drilling systems using robots could potentially reduce the number of drill crews needed on a drilling rig by 20% to 30%, Rystad Energy estimates that such a reduction in offshore and onshore drilling teams could bring cost savings of more than US$ 7 billion in wages alone in the U.S., based on current wage levels.

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Robotic Operations In The Oil And Gas Industry

Inspection, maintenance, and repair (IMR) operations are also ideal for robotic operations and are the segment where the adoption of robotics has gained the most momentum among operators in recent years.

So far, this has been mainly limited to underwater IMR activities, but we are now beginning to see IMR robotic solutions also being used for topsides.

Overall, Rystad Energy believes that at least 20% of jobs in segments such as drilling, operational support, and maintenance could, in theory, be automated in the next 10 years.

Looking at the current workforce picture of some of the major oil and gas producing countries, the U.S. could reduce its staffing needs by more than 140,000 employees and Russia by more than 200,000 employees. Canada, the United Kingdom, and Norway could eliminate between 20,000 and 30,000 jobs each.