Amy Ferguson, Tax and Treasury Specialist at Rutherford Cross, discusses the evolving energy industry and how professionals can gain invaluable experience by being part of the energy transition.
Over the past couple of years, we have noticed that candidates are increasingly putting a strong focus on their desire to work for businesses, and in industries, with purpose and values that align with their own. People want to work somewhere they feel comfortable that their values align with what the organisation is trying to achieve. In fact, businesses in the industry have now moved away from labelling themselves as ‘oil and gas’ businesses in line with candidates’ changing opinions. With the ongoing energy transition, I have reflected on the energy industry, and candidates’ feelings towards this evolving area of the Scottish market.
The Energy Industry
Research shows that in general, jobs in the energy industry have remained stable for a number of years. Job security (which is top of the list in terms of importance for many candidates), is still reported to be one of the main reasons professionals choose to work in this industry. Although the industry is facing pressure from its renewable industry competitors, O&G will not fall off a cliff; in fact, many of these companies are evolving to take part in the energy transition.
Globally, we are facing a change in attitude towards protecting the climate. This in turn is affecting where professionals in these industries want to spend their time and develop professionally. As a result, the oil and gas industry is now in direct competition with the renewable energy industry in terms of talent attraction and retention.
In recent years, we have found that candidates want to be part of an industry they believe in, not just somewhere where they can grow professionally and be remunerated well; although these aspects continue to be important.
Investment in clean energy is expected to continue to grow year on year, creating more jobs, whilst also protecting current jobs. Although there are controversies surrounding the industry, it remains stable. Research published by Deloitte reports that the oil and gas industry earned record profits in 2022, providing ample cash flow to fund their strategies in 2023. The article reports that that a combination of higher cash flows in energy companies in 2022, and new supportive policies coming into play, are enabling these companies to increase their investment into clean energy; accelerating the pace of the energy transition.
Opportunities within Energy
We have been fortunate to work with a number of fantastic businesses operating within energy, among other associated areas in Aberdeen and wider Scotland, and we continue to see interesting and unique opportunities presenting themselves in these spaces.
The Aberdeen area continues to be faced with a talent short market, particularly within specialist roles, and the opportunity to gain invaluable experience in a business operating in Aberdeen shouldn’t be overlooked by candidates based in other parts of Scotland or the wider UK.
The global energy transition provides opportunities for tax and treasury professionals to gain invaluable and unique experience working for businesses at different stages of the transition. Many businesses are going through change and restructuring, others are transitioning to a hybrid approach by incorporating renewable energy into their offerings, whilst many are continuing to supply the ongoing demand for oil and gas. This varied experience will look great on a CV and is transferrable to other industries and areas of the market.
We are currently working with a number of businesses operating in Aberdeen and wider Scotland, and would be pleased to have a conversation with any tax or treasury professionals considering their options. Please reach out to Amy at [email protected] for a confidential discussion.