C. Pfauwadel, Airswift, Singapore
The Global Energy Talent Index was launched in 2017 to chart emerging trends across the global energy workforce. It has since drawn on insights from tens of thousands of professionals to create a comprehensive map of a changing energy landscape and provide companies the tools to retain and refresh their skills base. This article provides an overview of the global petrochemicals sector’s workforce, as well as how artificial intelligence (AI) is reshaping job roles, skills, adoption, popularity and policy awareness across the industry, and anticipate the major risks and opportunities it presents.
Salaries in the petrochemicals industry. The petrochemicals sector seems in a buoyant mood: salary progression is solid, and professionals are optimistic about adopting AI technology, both in terms of impact on the sector and their own careers. However, there are signs that may call for a more careful consideration of future skill requirements.
A tight labor market has seen petrochemicals salary sentiment soar to pre-pandemic levels. Sixty percent of professionals reported a salary increase in the last year, compared to 50% the year before and 55% before Covid-19.
Hiring managers report even higher numbers: 69% say pay has increased in the sector vs. 65% last year. Significant rises also seem more common, with 45% putting that increase above 5%–only 35% said the same last year. Both hiring managers and professionals expect even greater movement next year, with 80% and 75% expecting rises, respectively.
Global mobility. The petrochemicals workforce remains a mobile one. Eighty one percent of professionals would consider relocating—nearly identical to last year’s 83%--and more than a third of respondents are expatriates.
Career progression remains the primary driver for making a move (47%), with lifestyle and a low cost of living a distant second (13%). The most popular destinations continue to be Europe (33%), the Middle East (21%) and North America (13%).
For those reluctant to relocate, 43% say proximity to family is the main barrier. A further 12% point to concerns over their childrens’ education. Combined with apparently high satisfaction with salary progression, it seems some in the petrochemicals workforce are relatively settled for the time being.
Attracting and retaining talent. A large majority (87%) of respondents are open to moving roles. Though a move within the sector is the most attractive (57%), a significant percentage are open to moving to another energy sector (45%) or to another industry entirely (23%).
The adjacent oil and gas sector is the most popular destination as in previous years—52% would consider this move, and 29% of oil and gas professionals would consider a move to petrochemicals, demonstrating the connectedness of the sectors. However, 38% of respondents say they would consider a move into renewables this year, a 5% jump vs. last year, and interest in renewables is even higher among engineers (43%). Power is a very distant third (7%).
Sharon Barclay, Chief Human Resources Officer at Monument Chemical, commented, “There is growing concern for sustainability in the chemical industry, as in all sectors, so it is no surprise to see interest in renewables increasing. However, I think it reflects that, as an industry, we need to communicate our sustainability story better. There are huge opportunities to drive sustainability in chemicals, whether you are looking at sustainable aviation fuels or new ways to create products from waste streams. It is exciting, and we need to emphasise that.”
As in previous years, career progression remains the primary motivator for switching (33%). Interest in the wider industry (16%), remuneration and benefits (11%), and environmental, social and governance (ESG) (7%) are notable factors, but trail by a large margin.
Petrochemical professionals are also in high demand: 82% have been approached for another role in the past year, and 11% have been contacted more than 20 times. Engineers are in particularly high demand, with 86% having been approached.
Janette Marx, CEO of Airswift, warns, “This is a tricky situation for hiring managers. People report high openness to moving not just within the sector, but also beyond it. Yet, they are also relatively happy with how salaries are going, so retention is not as simple as offering more money. Above all, professionals in the petrochemical space need to see a viable and attractive path for progression.”
AI in the workplace. Despite its affinity with the oil and gas sector, the petrochemicals sector is closer to renewables when it comes to the apparent adoption of AI. Though most (58%) do not currently use AI in their role, 30% already do, and a further 8% expect to do so within 6 mos.
With a rapid uptake expected within the next 6 mos, it is encouraging that a third of respondents report that their workplace already has an AI policy (though 7% have yet to read it). Thirteen percent are unsure whether such a document exists. Where policies are in place, these tend to focus on explaining the benefits and/or objectives of using AI (reported by 59%) and maintenance of data protection, integrity and security (53%).
Popular AI choices. There are no clear winners in terms of which AI tools petrochemicals professionals are turning to. The most popular are machine-learning (ML) (used by 17%), generative AI such as ChatGPT (17%), robotic process automation (16%) and artificial general intelligence (14%).
The top use cases for these tools are automated workflow and collaboration (25%), and safety and inspection improvements (24%)—the same top pair as in oil and gas (both 23%).
The future of AI. A lack of soft skills, such as leadership and communication, is the number one challenge to making greater use of AI, followed by insufficient investment in AI applications. The lack of clarity over which tools best fit the company is third–this contrasts with oil and gas and power, where this uncertainty is the top barrier.
Petrochemicals is also among the most optimistic about AI's future impact, with 51% being ‘very optimistic,’ behind only the power sector (53%). Marx commented, “Consider these things in combination. Petrochemical professionals are optimistic about the impact of AI and are laser-focused on safety. They also wisely identify leadership and investment as the key barriers to uptake. Together, these factors suggest that the petrochemicals sector is doing a good job of approaching AI strategically.”
Nearly a third (32%) of respondents say that AI will help the sector optimize products, services and/or solutions. A quarter say it will boost research, development and innovation and reduce labor costs (24%). Similar numbers expect improved predictive analytics and forecasting (23%), reduced production or operating costs (22%), and increased creativity and critical thinking (21%).
Respondents are similarly optimistic about how AI might impact them personally in the next two years: 73% expect a boost in productivity, 58% look forward to increased job satisfaction and 57% anticipate both better career progression and more time with family and friends.
Professionals also recognize the risks that AI may pose. In the next two years, 41% are concerned over a lack of human or personal touch, 35% worry that lack of training could lead to misuse or poor adoption, and 26% are concerned about cybersecurity. Only 13% were confident there would be no concerns at all.
AI skills for the future. However, professionals do not expect to simply sit back and benefit from the promise of AI. Most (63%) believe it will also increase pressure on them to study or learn new skills.
When asked which skills would be in greater demand due to the increasing use of AI, respondents point to technical skills such as programming/software engineering, data science, cybersecurity and ML. Far fewer look to soft skills such as critical thinking and problem solving, creativity and innovative thinking, and leadership and communication skills. Professionals are interested in developing skills that broadly match what they believe will be needed, with engineers particularly interested in developing data visualization skills.
Barclay observed, “It is jarring that lack of leadership and communication is said to be the top challenge for greater AI adoption today; yet, they rank so low in professionals’ estimation of which skills will be in greater demand and which they personally expect to develop. This raises the question of the discrepancy between the two. What are we to make of that? Perhaps some believe that today’s leadership is sufficient and just needs more time, or possibly ambitious professionals might conclude that there are greater opportunities in these soft skills than they initially thought.”
Takeaway. Petrochemicals appears to be a relatively optimistic and enthusiastic early-adopter of AI, especially compared to the oil and gas sector. However, an apparent mismatch between today’s barriers to adoption and tomorrow’s prized skills suggests a need for careful leadership to reap these technological benefits. HP
Charles Pfauwadel joined Airswift in 2012 as Country Manager for Singapore. In 2016, he was promoted to Business Manager, and soon after Regional Director for Southeast Asia, where he was responsible for overseeing the sales, marketing and finance activities in Singapore, Thailand, Indonesia, Malaysia, Korea and Japan. Throughout his time with Airswift, Pfauwadel has been instrumental in growing the business in Singapore and Southeast Asia. In 2020, he was promoted to Vice President, Asia and was elected to the Operating Board representing Asia. Originally from France, Pfauwadel has worked in Asia since 2007, with previous experience in project management for various energy and IT suppliers. He earned an MS degree in logistics and purchasing from the Graduate Business School of Angers (ESSCA) in France.