Opinion

Addressing the skills shortage in the fuels industry: a critical challenge for the sector

Elizabeth de Jong, CEO Fuels Industry UK, considers the underlying causes of the sector skills shortage, and highlights the reasons it is essential the industry takes urgent action to tackle this problem head on.

Skills shortage in fuels industry

The fuels industry is facing an acute skills shortage that is affecting operations today as well as plans to decarbonise. We are not alone in this, as many technical and skilled sectors are realising that there is a shortage of the skills needed and that things are not going to improve quickly.

There is a particular shortage of skilled tradespeople, whose expertise is essential for maintaining and advancing industry operations, with this pool of vital workers being pulled in multiple directions – from the new nuclear build in Somerset, to new windfarms in the North Sea, as well as in the delivery of EV chargepoints and heat pumps across the country.

Production and delivery of fuels encompasses a range of activities: chemists, process engineers and others run a refinery or terminal day to day, while loading and delivering fuels also has its own group of specialist personnel who understand the dangers of moving 40,000 litres of flammable material at a time.

Often forgotten, but just as important, are the thousands of tradespeople who maintain and improve the site through regular maintenance activities, as well as the larger shutdowns which run every two to three years.

The country relies on these skilled tradespeople, including welders, pipefitters, electricians, and maintenance technicians. However, a combination of factors is contributing to a significant shortfall in this workforce.

Ageing workforce and retirement

One of the primary drivers of this shortage is the ageing workforce. Many skilled tradespeople are nearing retirement age, and the industry is struggling to replace them with younger workers.

According to a recent report by the International Energy Agency (IEA), nearly 50% of skilled tradespeople in the energy sector are expected to retire within the next decade. This looming wave of retirements will exacerbate the existing gaps and strain the industry’s ability to maintain its operations.

Lack of training and education Ordinarily, retirement should not be a major concern, but sadly the pipeline of new talent entering the trades is alarmingly thin.

Educational institutions and training programs are not producing enough skilled workers to meet industry demand, whether that be through STEM degrees or vocational courses such as apprenticeships, which the new government has committed to reforming.

Many young people are gravitating towards white-collar professions or tech- related careers, perceiving them as more lucrative and prestigious and there is a wrong assumption that fuels are no longer needed or are yesterday’s news, even when the transition is very much happening now in our sector.

This shift has left the fuels industry with fewer recruits to train and develop into the skilled tradespeople of tomorrow.

Industry initiatives and solutions

Addressing this skills shortage requires a multi-faceted approach. Fuels Industry UK and other manufacturing trade associations have written to all UK governments over the summer calling for greater commitment to vocational education and training programs, a long-term skills strategy, the broken apprenticeship levy to be addressed, support for the industry to address a longstanding lack of diversity in the trades and ensuring work visas be available where UK workers are unavailable.

To deliver on those asks, collaboration between companies, educational institutions, and government bodies will be crucial to create a sustainable talent pipeline. Additionally, the industry must work to change perceptions and highlight the rewarding career opportunities available in the trades.

There are excellent examples, past and present, of our sector employing the brightest and best. To continue to do so, industry must confront the skills shortage head-on by fostering education, embracing technology, and reshaping its workforce strategy.

Ensuring a steady supply of skilled tradespeople is not only essential for maintaining current operations but also for driving the future innovations that will define the industry.

Renewable fuels are on the up according to recent analysis published by Fuels Industry UK.
Elizabeth de Jong, CEO Fuels Industry UK

Image credit: EET Fuels, Fuels Industry UK