Oil and Gas Back Office Statistics, Trends And Facts 2023

Oil and Gas Back Office Statistics

Category	Statistics
Employment	70% of jobs lost during the pandemic may not come back by the end of 2021
Market value	Energy sector is the second smallest segment in the S&P 500, with a share of only 2.5% as of August 31, 2020
Employment rate	Rate of recovery in employment will likely be slower over the next 15-18 months
Chemical business	Rate of recovery will likely be higher but still below 100%
Pessimistic scenario	Rate of recovery in jobs would be only 3% in a scenario of US$35/bbl and US$2/MMBtu
Concerns	53% of oil and gas workers highlighted job security as a concern
Flexible workplace arrangement	Less than 1% of OG&C employers offered a flexible workplace arrangement before the pandemic
Greenhouse gas emissions	Production of oil and gas produces about 80% of full cycle greenhouse gas emissions for the OG&C industry
Travel restrictions	Travel restrictions caused fuel demand to fall 30% and global GHG emissions 17% in the first half of 2020
Cost of capital	Weighted average cost of capital of 8-10% for an oil and gas company is twice that of top renewable companies
Green energy projects	Only 1-2% of oil and gas capex is spent on new green energy projects
Sustainable investing	85% of individual investors are interested in sustainable investing and as many as 95% of millennials polled in the survey expressed interest in investing in sustainable companies
Job postings	About 90% of job postings are still for traditional energy cities, with less than 4% in nonconventional locations like Silicon Valley
Primary skill	Less than 15% of postings in 2019 had mathematical or data analytics as the primary skill
Graduates	The total number of US university graduates for technical courses like petroleum and geological engineering courses dropped by 15-21% from 2015 to 2019
Tenured crew	The tenured crew comprises nearly 50% of the industry’s personnel and most are retiring within the next five to seven years
Operating costs	The industry’s operating costs were the lowest during the pandemic, falling by 17-30%
Operating margins	Operating margins of OFS companies in 2019 remained around their 2016 lows of 5%
Personnel expense costs	About 15-20% of total personnel expense costs associated with support functions, significant opportunity lies before companies to make these fixed costs highly variable through outsourcing intelligent process automation, and cloud
Backoffice reductions	About 90% of backoffice reductions return to previous levels in 3 years
Business transformation	A combination of business transformation and skill development can lead to a much higher recovery in the employment rate than 30%
Oil and Gas Back Office Adoption Statistics
Value	Adoption of five use cases would deliver close to $250 billion of value to the oil and gas industry
Cost reduction	Adoption of these five use cases would lead to a 20-25% reduction in cost per BOE
Captured value	60-70% of the cost reduction would be captured by using available connectivity technologies
Oil and Gas Back Office Latest Statistics
Employment	About 70% of jobs lost in 2020 may not come back by the end of 2021
Employment rate	Rate of recovery in employment will likely be slower over the next 15-18 months

• The global oil and gas industry is expected to reach $3.7 trillion by 2030.
• The oil and gas industry has an average profit margin of 6.8%.
• The United States is the largest oil and gas producer in the world, with an output of 19.51 million barrels per day.
• The oil and gas industry employs over 5 million people worldwide.

Oil and Gas Back Office Facts

• Back office activities in the oil and gas industry include accounting, human resources, procurement, and IT support.
• 70% of oil and gas companies outsource at least one back office function.
• The top three challenges faced by oil and gas back office operations are compliance, cost reduction, and automation.
• 53% of oil and gas companies plan to increase their back office outsourcing in the next two years.

Oil and Gas Back Office Benefits

• Outsourcing back office functions can reduce costs by up to 40%.
• Automation of back office processes can increase efficiency by up to 50%.
• Outsourcing allows oil and gas companies to focus on their core competencies.
• Improved data management and reporting can lead to better decision-making.

Oil and Gas Back Office Trends

• The use of artificial intelligence and machine learning is on the rise in the oil and gas industry, with applications in back office operations.
• Cloud computing is becoming increasingly popular for back office functions in the oil and gas industry.
• The use of blockchain technology is expected to increase in the oil and gas industry for supply chain management and accounting.

Oil and Gas Back Office Adoption

• 80% of oil and gas companies have implemented some form of back office automation.
• The adoption of cloud computing for back office functions is expected to increase by 20% in the next two years.
• The use of artificial intelligence in back office operations is expected to increase by 25% in the next five years.

Oil and Gas Back Office Market Analysis

• The global oil and gas back office outsourcing market is expected to reach $5.1 billion by 2025.
• North America is the largest market for oil and gas back office outsourcing, followed by Europe and Asia Pacific.
• The top players in the oil and gas back office outsourcing market include Accenture, Infosys, Capgemini, and Wipro.

Oil and Gas Back Office Demographics

• The average age of oil and gas industry employees is 45 years old.
• 80% of oil and gas industry employees are male.
• The majority of oil and gas industry employees have a bachelor’s degree or higher.

Oil and Gas Back Office Software

• The top back office software used in the oil and gas industry include SAP, Oracle, and Microsoft Dynamics.
• Other popular software options for back office functions include Workday and NetSuite.
• The use of software-as-a-service (SaaS) for back office functions is expected to increase by 15% in the next two years.

Oil and Gas Back Office Opportunities

• Outsourcing back office functions can create opportunities for small and medium-sized businesses to provide specialized services to the oil and gas industry.
• The use of artificial intelligence and machine learning presents opportunities for innovation and cost reduction in oil and gas back office operations.
• The adoption of cloud computing and blockchain technology presents opportunities for improved data management and security in the oil and gas industry.

Oil and Gas Back Office Challenges

• Compliance with regulations and standards is a major challenge for oil and gas back office operations.
• The high cost of implementing new technology and software can be a challenge for smaller oil and gas companies.
• The need for specialized skills and knowledge in back office functions can be a challenge for outsourcing providers.

FAQ

Q: What back office functions can be outsourced in the oil and gas industry? A: Accounting, human resources, procurement, and IT support are common back office functions that can be outsourced in the oil and gas industry.

Q: How can outsourcing back office functions benefit oil and gas companies? A: Outsourcing back office functions can reduce costs, increase efficiency, and allow companies to focus on their core competencies.

Q: What are the top software options for back office functions in the oil and gas industry? A: SAP, Oracle, and Microsoft Dynamics are the top software options for back office functions in the oil and gas industry.

In conclusion, the oil and gas industry is constantly evolving, and back office operations are no exception. Outsourcing, automation, and the use of new technology offer opportunities for cost reduction and innovation, while compliance and specialized skills remain challenges. By staying up-to-date with industry trends and adopting new strategies, oil and gas companies can stay competitive in the global market.