VARs Can Get A Burst Of Energy

The numbers tell the story. Half of the oil industry work force is eligible to retire within the next five years, and enrollment in college undergraduate petroleum engineering programs has dropped nearly 80 percent since 1982, according to a recent University of Texas report.

Energy industry executives will increasingly turn to technology to bridge the gap. Outsourcing will be one major area of interest, as domestic companies tap overseas talent to make up for the looming personnel shortfall here at home. Solution providers will play a key role in enabling far-flung staff in areas such as Russia, China and India to collaborate and work together efficiently with their U.S. counterparts.

As energy companies continue to expand, data management and warehousing will also take on added importance. Aside from streamlining day-to-day business operations, companies will need to retain critical industry information that would otherwise be lost as experienced employees retire. This trend, incidentally, is one that applies to other industries as well, as employers look to trim salary and benefit costs by replacing older, more experienced (and higher-paid) personnel with younger, less experienced individuals.

CRN research data has shown that the energy industry ranks low on the list of vertical markets that solution providers look to for revenue and profits. The percentage of solution providers expecting to enter the energy industry over the next 12 months is also significantly lower than for other verticals, such as manufacturing, health care, and government. But it should rank higher because the trends outlined above will be around for years to come, driven by demographics and industry expansion in response to the ever-increasing demand for energy.

The personnel crunch is coming. Get ready to take advantage of it.

Have you seen opportunity in the oil and gas industry? Let me know via phone at (732) 919-1530 or e-mail at jorobert@cmp.com.