Careers in Project Management – future PM

By, Ioan Gaitan, Non-Commissioned Officer in Charge of Civil Engineering Operations and Student in MPM Degree Program 

IMG_0194

Tech. Sgt. Ioan Gaitan, inspects aggregate brought on site for an airfield project at Suwon Air Base, Republic of Korea

Although the project management practitioners continue to be in high demand, the opportunities offered will vary by sector and location. Based on my research, I estimate that the energy industry will see the greatest need for project managers in the near and far future. Worldwide energy consumption is estimated to grow by 53 percent from 2008 to 2035, according to the U.S. Energy Information Administration’s International Energy Outlook 2011. The increasing demand for energy, combined with the high risk associated with these projects, translates into a significant need for experienced project managers (Hot sectors for project managers, 2010).

Although many nations are actively exploring renewable energy sources, traditional energy is still a hot sector for project managers. Some of the largest energy projects in the world are currently driven by the new oil-field discoveries and advances in fossil-fuel extraction technology. Let’s discuss about some countries that are experiencing this growth and have difficulty finding experienced PMs.

In Brazil, for example, the untapped oil fields off the coast of Rio de Janeiro could turn this country into one of the world’s leading oil producers. Moreover, the country’s 10-year energy plan intends to attract $133 billion in investments and triple its renewable energy by 2020. In order to get there, the nation will have to overcome a shortage of qualified project practitioners. According to PMI, more than 1.3 million new project management roles are expected to be needed by 2020.Despite this high demand, more than two-thirds of employers in Brazil report that they can’t find enough workers with the right skills.

In Norway, oil production has steadily declined over the last 10 years. Despite this fact, experts predict the fields still have 30 to 40 years of production left. The deep-sea oil drilling in the North Sea region is expected to need 100,000 new workers with college degrees in finance and administration by 2030. According to an industry survey released by Oilandgaspeople.com, the world’s largest oil and gas jobs board, found that 65 percent of North Sea oil and gas companies cannot recruit enough project engineers to meet the current and future demand. Because many workers will be retiring soon, the sector’s need for skilled project managers may reach “near-crisis levels.”

Australia has three operating liquefied natural gas projects and seven more under construction. This represents an investment of more than AU$200 billion. Here, a corresponding labor shortage translates to higher salaries for project managers. According to PMI, more than 375,000 new project management jobs are forecasted to be needed by 2020 (Sykes, 2014).

The developing countries will need project managers as well.  Here, project management is still new for many energy organizations. Mr. Olaoluwa Ibilola, business development manager at Korea National Oil Corp stated, “The regions that have giant oil fields and facilities could be tagged as hot, including Libya, Kuwait, [and] Syria.” In this case, the demand for project managers will depend on the amount of discovery and development in these regions. For example, a significant gas discovery in a certain region will drive more jobs for project managers.

global-map

According to a U.S. Energy Information Administration report, renewable energy is estimated to produce almost one-third of the world’s electric power by the end of 2035. A survey of industry leaders conducted by Cooley LLP in 2012 stated that the U.S. investors, executives and entrepreneurs predicted that the renewable energy sector would play at least a moderate (57 percent) or significant (25 percent) role in U.S. job creation over the next five years. Additionally, the Solar Foundation’sNational Solar Jobs Census 2011 stated that “the solar energy industry has bright days ahead, with a 24 percent market growth and 24,000 new jobs predicted for next year” (Bowles-Jackson, 2012). I estimate that these impressive numbers will only continue to grow in the near and long term.

In the last portion of this assignment I will answer the question Why are skilled PMs in such a high demand in the energy sector? Today, skilled project managers are very difficult to recruit and retain in this sector because the large projects in the oil and gas industry become increasingly complex and technologically demanding. According to Nava & Rivolta (2013), “Schedules and budgets are tight, safety is crucial and every project faces a network of stakeholders concerned about its impact on the environment and communities.”

In conclusion, I would predict that the need for experienced PMs will only become more acute as a generation of experienced engineers will soon retire in many countries. Under this circumstance, companies cannot afford to bring second-rate talent into their organizations because projects will only get more complex and their scope will grow (Nava & Rivolta 2013).

References:

(2010). Hot sectors for project managers. Retrieved from http://www.pmi.org/learning/professional-development/career-central/hot-sectors-for-project-managers.aspx

Bowles-Jackson, M. (2012), Sectors to watch. Here’s where the jobs are – and the skills you need to get them. Retrieved fromhttps://www.pmi.org/~/media/PDF/Professional-Development/PMN0112%20Sectors.ashx

Nava, R. & Rivolta, T. (2013). Large project management in oil and gas. Retrieved fromhttp://www.bain.com/publications/articles/large-project-management-in-oil-and-gas.aspx

Sykes, K. (2014). Global jobs report: hottest industries, highest salaries. Retrieved from https://www.pmi.org/learning/PM-Network/2014/global-jobs-report.aspx

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s