Digitalization and the Future of Employment: A Case Study on the Canadian Offshore Oil and Gas Drilling Occupations

Abstract

This paper presents a novel approach to identifying reskilling requirements, job merging pathways, and a tentative timeline for transforming offshore oil and gas drilling occupations amid the fourth industrial revolution (industry 4.0). The proposed algorithm focuses on potential job merging due to technological adoption. It introduces a scaling factor named digital readiness level to incorporate modulation factors (e.g., cost of development and deployment of new technologies, labour market dynamics, economic benefits, regulatory readiness, and social acceptance) that act as catalysts or hindrances for technology adoption. A feature-based approach is developed to assess the similarities between occupations, while a mathematical model is developed to project automation trajectories for each job under investigation. These facilitate the consideration of potential job merging scenarios and the associated timeline. Since technology adoption depends on the industry, region, occupation, and stakeholder's ability to manage the transformation, the proposed algorithm is presented as a case study on Canadian offshore oil and gas drilling occupations. However, this algorithm and approach can be applied to other industries or occupation structures. The proposed algorithm projects that the total number of personnel on board (POB) in a typical offshore drilling platform will be reduced to six by 2058. A sensitivity analysis was conducted to assess the robustness of the proposed algorithm against variations in the feature values and weighting factors. It was found that when changing feature values and weighting factors up to ±20% of their original values, only one job that remains after 2058 follows three different job merging pathways, while others remain unchanged. Even the job that followed three different pathways was composed of the same source jobs compared to the corresponding job in the baseline results.Note to Practitioners-This research is inspired by the ongoing digital transformation initiatives and their socioeconomic impact.

Reviewing the advancements in offshore drilling technologies in the USA and their global impact

“…Additionally, the development of environmentally friendly and high-performance water-based drilling fluids is a significant area of focus, reflecting the industry's commitment to sustainability and environmental responsibility (Liu et al, 2020). Furthermore, the use of digitalization and automation, as well as the application of advanced robotics, is transforming offshore drilling operations, leading to the need for reskilling and job merging pathways (Wanasinghe et al, 2023;Lamb, 2021).…”

“…Offshore drilling technologies are undergoing significant research and development to enhance efficiency and safety. The development of digitalization in offshore oil and gas drilling occupations is a key area of ongoing research (Wanasinghe et al, 2023). This includes the use of advanced technologies for detecting offshore drilling rigs and extracting information from satellite imagery to monitor offshore platforms and ensure environmental safety (Zhu et al, 2021;Wang et al, 2019).…”

“…Additionally, as drilling operations target offshore depleted reservoirs, there is a need to address the maximum allowable well depth while drilling to optimize resource extraction (Chen et al, 2018). Furthermore, the impact of offshore drilling on employment and the workforce is a subject of study, highlighting the need to address potential shifts in job duties and requirements in the industry (Wanasinghe et al, 2023).…”

Smart Oil Field Management System Using Evolutionary Intelligence

“…Thus, the petroleum area always seeks new technologies and methodologies to make its production more efficient [13], [14], [15]. The technological advance used in the oil production area allowed remote management systems, which enable real-time monitoring and actuation [16].…”