How AI And Technology Are Reshaping The Oil And Gas Workforce

The term ‘roughneck’ conjures up images of greasy oilfield workers, sort of a depiction, like those of cowboys of the old West. In years past, the progress of operations carried out on an oilfield location was determined solely by the grit and tenacity of the workers involved, the roughnecks. Today, the industry is undergoing a transformation driven by artificial intelligence and advanced technologies. Times are uncertain for those old-school roughnecks who still go to work every day in the patch; their numbers are much smaller in size as operations move at the speed of light due to efficiency gains. New workers are also entering the industry with tech-savvy skills.

First came significant gains in efficiency, aided by AI software tools, making operations that would historically take months now trimmed down to just days or weeks. The new speed of these operations resulted in a significant reduction in the number of workers required. One example is the state of Oklahoma, which has lost nearly a third of its oil and gas workforce since 2019 with much of that workforce lost during a time of prosperity and record profits. According to the April 2025 jobs report by the Energy Workforce and Technology Council, Oklahoma’s oil and gas sector employs roughly 48,657 workers, a significant chunk in a state with only 4 million residents. These workers will face challenges ahead as efficiency gains continue to reduce headcount, especially when it comes to reskilling and finding comparable opportunities without relocating.

In addition to increasing the amount of labor a small team can accomplish; technological advancements have reduced unplanned downtime costs. By utilizing tools like cloud-based sensor data and automated spill detection systems, companies can significantly reduce human error and save millions of dollars annually. On average, an energy company may spend as much as $38 million a year on unplanned downtime costs, primarily due to human error. AI predictive maintenance is changing this by catching equipment failures before they occur.

How Skilled Workers Are Responding To The AI Boom

Traditionally, most oil and gas workers could start their careers with no formal college education. These were manual labor positions that could only be learned through on-the-job training. Today, robotics and drones are used to inspect pipelines and rigs. At the same time, autonomous drilling systems utilize AI to adjust parameters in real time, thereby reducing the need for human oversight. This shift means that companies are now seeking AI specialists, data scientists, and robotics engineers. There is a growing demand for hybrid-type roles that combine petroleum engineering with AI expertise. This shift in technology and streamlined corporate structures, where oilfield service companies transition from owning more expensive assets to being technology-focused, is also creating better profit margins without the need to increase capex.

Fortunately, the very thing that is reshaping the workforce in the oil and gas industry is also the thing that can train the workers. As the oil and gas industry faces a workforce crisis, where 40% of skilled workers are expected to retire by 2030, it is AI itself that can bridge the gap and equip existing workers with the skills they need moving forward. Augmented Reality training teaches workers to use AI-guided simulators instead of shadowing veterans. Digital twins, combined with AI, can recreate a digital version of any project or job to train workers on a step-by-step basis on how to perform tasks.

The oil and gas workforce of today looks significantly different from what it was just a decade ago, as the industry relies less on instinct and grit and more on data and technology. Many existing jobs will be replaced as part of this change, while new ones will emerge. One thing is sure: this is creating a much safer workplace than ever before, as we utilize technology to remove people from the most hazardous situations. Shell was able to achieve a 40% reduction in equipment failures and a 35% reduction in unplanned downtime, according to Global Insights. Reducing equipment failures and downtime also reduces the amount of time that employees are exposed to hazardous situations. The 2024 Texas Mutual Insurance report shows a 24% reduction in serious injury for the oil and gas industry in the state of Texas. This is particularly beneficial for oil and gas workers who labor through the boom-and-bust cycle of the industry, as these new skills will provide them with access to more opportunities and jobs outside of the industry during those downturns.