Ernst & Young LLP (EY US) has released the EY Future of Energy Survey, which examines the perspectives of executives and employees from global energy organizations. Conducted in November and December 2024, the survey gathered insights from 1,020 respondents across the oil and gas, chemicals, and power and utilities sectors to assess trends in technology adoption, workforce development, and industry challenges.
Technology Investments Prioritized, Workforce Reskilling Lagging
The survey found that digital technology investments remain a strategic priority for energy companies, with 92% of energy executives planning to invest in digital technologies. However, only 27% of companies are currently engaged in retraining and reskilling efforts to meet evolving workforce demands.
Key findings include:
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Reskilling is recognized as critical but underutilized: 91% of power and utilities executives and 85% of oil and gas and chemicals executives believe their organizations' ability to reskill employees will be a key factor in long-term success. However, only 26% of power and utilities and 29% of oil and gas and chemicals companies report active retraining programs for their employees.
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Increased reliance on external resources: 88% of power and utilities executives and 81% of oil and gas and chemicals executives indicate they will rely more on vendors and contractors to meet workforce needs.
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Workforce agility on the rise: 86% of power and utilities executives and 81% of oil and gas and chemicals executives believe their workforce is agile enough to adapt to changing business demands, a significant increase from prior years (57% in 2021 and 53% in 2020).
Technology and Workforce Transformation in Energy
The survey identified the top three trends expected to have the most positive impact on the energy sector over the next five years:
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Adoption of new technologies
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Advances in renewable energy sources
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Changes in energy consumption patterns
Investment in digital technologies has increased significantly, particularly in the oil and gas and chemicals sector, where companies making substantial digital investments have risen by 20 percentage points since 2020, reaching 49%. Additionally, 42% of respondents indicate plans for moderate digital investments.
Despite these advancements, executives acknowledge potential challenges, including realizing expected returns on technology investments and integrating innovations such as artificial intelligence, cloud computing, and automation.
Balancing Workforce Strategy with Emerging Technologies
With 40% of power and utilities executives and 29% of oil and gas and chemicals executives planning to outsource certain business functions, companies are adopting a combination of external expertise and automation to meet evolving demands. At the same time, workforce skills related to technology and innovation are viewed as critical by 72% of power and utilities and 68% of oil and gas and chemicals executives.
While workforce agility has increased, 73% of power and utilities and 58% of oil and gas and chemicals companies acknowledge that organizational culture remains a barrier to the adoption of digital technologies. This suggests that while companies recognize the benefits of emerging technologies, integrating them effectively remains a challenge.
"Energy executives recognize the importance of reskilling and workforce development in maintaining competitive advantage," said Timothy Haskell, EY Americas People Consulting Leader for Power & Utilities and Oil & Gas and Chemicals. "The challenge lies in accelerating the skills gap closure, embedding continuous learning into corporate strategy, and aligning talent with technological advancements. Companies must take a proactive approach — whether through reskilling, outsourcing, or automation — to drive innovation and meet evolving market demands."
