Ernst & Young LLP (EY US) launched the EY Future of Energy Survey of oil and gas and chemicals and power and utilities companies. This survey of executives and employees at global energy organizations assessed perceptions of current and emerging technologies, skills and challenges within their organizations. The survey was fielded in November and December 2024, reaching 1,020 global respondents across the energy industry.
“The EY Future of Energy Survey captures industry sentiment at a very unique moment in time — around the US presidential election and looking toward 2025,” said Timothy Haskell, EY Americas People Consulting Leader for Power & Utilities and Oil & Gas and Chemicals. “Energy executives and employees expressed a refreshed focus on the strong operational performance of the industry. They also realized the challenges to stay competitive as new policies take shape in a rapidly changing technology and workforce environment.”
Technology adoption is prioritized, but reskilling is not
The survey found that the top three trends respondents predict to have the largest positive impact on the energy industry in the next five years are:
- Adoption of new technology
- Advances in renewable energy sources
- Changes in energy consumption
For oil and gas and chemicals companies, investing in digital technologies is even higher than the 2020 survey. In fact, those making a great deal of planned investment in digital technologies grew by 20 points since 2020 — up to 49%. Further, 42% say they plan to invest a moderate amount.
However, while these technologies are being implemented and developed, executives mention that they are likely to face significant challenges over the next five years and very few believe their technology, such as artificial intelligence, chatbots and cloud computing, has realized a return on their investment expectations thus far.
Reskilling remains an industry priority, as the survey found that 91% of power and utilities executives believe their ability to reskill as an organization will determine their overall success within the next five years. However, there is a significant gap between intention and action, with only 26% of the same organizations currently retraining their current employees, contributing to the value expectations gap.
Meanwhile, 85% of oil and gas and chemicals executives believe their ability to reskill as an organization will determine their overall success within the next five years, but only 29% said they are currently retraining their employees.
Across the energy industry, respondents indicate they will think differently about how they get the job done. For most, it’s an “and” not an “or” approach. For example, 40% of power and utilities executives and 29% of oil and gas and chemicals executives say they will outsource some business functions to external contractors, while the same groups say they will look to automate work.
Increased agility noted among the energy workforce
Oil and gas and chemicals (68%) and power and utilities (72%) executives believe that workforce skills tied to technology and innovation are either critical or very important to meeting organizational goals.
Data shows an increase in optimism when it comes to workforce agility, revealing that:
- 86% of power and utilities executives agree their workforce is agile enough to respond to changing business needs, significantly more compared to 57% in 2021.
- 81% of oil and gas and chemicals executives agree their workforce is agile enough to respond to changing business needs, significantly more compared to 53% in 2020.
Yet, simultaneously, 73% of power and utilities and 58% of oil and gas and chemicals companies believe their culture impedes the adoption of digital technologies. This suggests energy companies are fully aware of the immense potential of technologies but struggle to invest in retraining and reskilling talent to drive meaningful gains.
Many executives prioritize stability and risk mitigation and have a strong preference for proven technologies that deliver predictable results. Emerging technologies require adaptability, agility and a higher risk tolerance, which can prove difficult in incubating innovation and integrating rapidly evolving digital solutions into large-scale projects.
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