Sylvie Willis
Fossil fuel jobs have long been considered stable and lucrative. However, with the global shift towards renewable energy sources and net-zero carbon emission targets, the landscape of the energy sector is changing. This transition is expected to result in a loss of fossil fuel jobs, particularly in specific regions, and raises concerns about the employability of those currently working in this industry. While skills transferability is a concern, the primary challenge is the geographical mismatch between fossil fuel and emerging green energy industries, which could displace over 1.7 million workers in the US alone. To address this, policymakers suggest targeted investments in fossil fuel-dependent regions, workforce training, and support for worker transitions to alternative industries.
| Characteristics | Values |
|---|---|
| Job opportunities | Fossil fuel workers can find job opportunities in communities reliant on oil, gas, coal, and other fossil fuel industries. |
| Skills | Fossil fuel workers have many of the skills needed for renewable energy jobs. |
| Location | Location is a major barrier for fossil fuel workers transitioning to renewable energy jobs. |
| Job growth | Energy employment is set to grow, outweighing declines in fossil fuel jobs. |
| Wages | Established fossil fuel industries such as oil and gas typically offer higher wages than newer renewable energy segments like solar. |
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What You'll Learn
- Fossil fuel workers have the skills for green jobs, but location is a barrier
- Fossil fuel jobs are declining, but the renewable energy sector is booming
- Fossil fuel workers can transition to low-emissions sectors like mining and hydrogen
- Fossil fuel jobs are concentrated in Alaska, the Rocky Mountains, and Appalachia
- Communities reliant on fossil fuels need support to adapt their workforces
Fossil fuel workers have the skills for green jobs, but location is a barrier
As the world transitions to cleaner energy sources, thousands of coal, oil, and gas workers will need to find new jobs. Fortunately, many fossil fuel workers have the skills needed for green jobs. However, location acts as a significant barrier to their transition to the emerging clean energy industry.
Fossil fuel extraction jobs and renewable energy jobs share many similarities in terms of the required skill sets. For instance, both industries require hands-on work. A study by the University of Pittsburgh found a substantial overlap between the skills fossil fuel workers use in extraction and those needed for green jobs. Another study by the University of North Carolina Chapel Hill and the Swiss Federal Institute of Technology Lausanne found that fossil fuel workers could leverage their mobility to other industries as their skills are similar to those required in green occupations.
Despite the overlap in skills, fossil fuel workers face challenges in transitioning to green jobs due to a lack of geographical overlap between their current locations and the sites of future green energy production. Fossil fuel extraction is largely concentrated in the Appalachian states, Texas, New Mexico, and the Midwest, whereas solar energy plants are predominantly located along the coasts. This misalignment in geography poses a significant hurdle for fossil fuel workers aiming to enter the green energy sector.
The issue of location is further exacerbated by the limited mobility of fossil fuel workers. Historically, these workers have shown a tendency to remain in close proximity to their current locations when changing jobs. This pattern, combined with the spatial mismatch between fossil fuel and green energy hubs, underscores the magnitude of the barrier that location presents.
To address this challenge, policymakers and workforce developers must consider strategies that account for the unique circumstances faced by fossil fuel workers in different regions. Supporting manufacturing expansion in areas already co-located with fossil fuel workers could be one solution, as it would require limited reskilling and reduce the need for relocation. Additionally, federal officials can leverage the geographic alignment between some fossil fuel job hubs and the potential for renewable energy production in those regions. By deploying public policies that encourage the transition to renewable energy in these areas, federal officials can help ensure a socially just and environmentally sustainable future.
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Fossil fuel jobs are declining, but the renewable energy sector is booming
Fossil fuel jobs are indeed declining. In 2022, the fossil fuel industry employed 504,000 workers in the US, a 7% decline from 2020 and a 34% decline from 2014. This trend is evident in states with large oil and gas industries, such as Pennsylvania, New Mexico, and North Dakota. The recovery of the oil and gas industry in 2021 was accompanied by a continued decline in jobs. This is due in part to President Joe Biden's executive orders reducing oil and gas exploration on public lands and promoting electric vehicles.
However, the renewable energy sector is booming. The IEA's Renewables 2024 report predicts that the world will add more than 5,500 gigawatts of new renewable energy capacity between 2024 and 2030, with solar PV accounting for 80% of this growth. China is expected to lead this expansion, followed by India, which is growing at the fastest rate among major economies. By 2030, renewable energy is forecast to meet half of the global electricity demand, with the share of wind and solar PV in global electricity generation expected to double to 30%.
The transition to renewable energy offers opportunities for fossil fuel workers. There is a significant overlap between the geography of fossil fuel jobs and the potential for renewable energy generation. Policies to retrain fossil fuel workers and support their transition to the clean energy sector are essential. Communities historically reliant on fossil fuel jobs will need targeted support and economic resilience as the energy landscape shifts.
While job losses in the fossil fuel industry are concerning, the renewable energy sector has the potential to create more jobs than are lost. Already, more people work in wind and solar than in fossil fuel extraction. With the right policies and support, the transition to renewable energy can uplift fossil fuel communities and provide a more sustainable future for workers.
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Fossil fuel workers can transition to low-emissions sectors like mining and hydrogen
The transition to a low-carbon economy poses challenges for fossil fuel workers, but opportunities exist in low-emissions sectors like mining and hydrogen.
Fossil fuel workers possess transferable skills that can be utilised in the mining and hydrogen sectors. For example, research by Jacob Greenspon and Daniel Raimi highlights job opportunities for fossil fuel workers in communities reliant on oil, gas, and coal. This indicates that workers in the fossil fuel sector can find employment in mining operations, particularly those with experience in coal mining.
Additionally, the renewables sector, including hydrogen, offers prospects for fossil fuel workers. The production of green hydrogen, for instance, can benefit from the expertise of chemical engineers, while petroleum engineers can leverage their knowledge in geothermal drilling jobs. The expanding hydrogen industry presents opportunities for workers to apply their skills in a low-emissions setting.
To facilitate this transition, governments, policymakers, and industry leaders must provide support. This includes implementing training programs and subsidies, such as the POWER Initiative in the US, to assist workers in acquiring the necessary skills for renewable energy sectors, including hydrogen. Workforce mapping can also aid in identifying transferable skills and potential leadership roles for fossil fuel workers in these emerging industries.
Furthermore, the geographic alignment between fossil fuel jobs and renewable energy potential offers a strategic advantage. Regions historically reliant on fossil fuels can harness this opportunity to attract investment and develop renewable energy hubs, ensuring economic resilience.
While challenges related to location and potential earnings discrepancies exist, the transition to low-emissions sectors like mining and hydrogen offers a promising pathway for fossil fuel workers. With the right support and initiatives, these workers can secure employment and contribute their skills to emerging industries.
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Fossil fuel jobs are concentrated in Alaska, the Rocky Mountains, and Appalachia
Fossil fuel jobs are largely concentrated in Alaska, the Rocky Mountains, and Appalachia. These areas are heavily reliant on fossil fuel industries for employment, and any shift towards alternative energy sources can significantly impact the local economy and workforce.
In Alaska, for instance, there has been renewed exploration activity, new field developments on the North Slope, and work on legacy fields, all of which have created job opportunities for Alaskans. The Alaska LNG Project is expected to generate thousands of new jobs, and the state's Department of Labor and Workforce Development is working to prepare the local workforce for these opportunities.
The Rocky Mountain regions of Montana, Utah, Wyoming, and North Dakota have also traditionally offered many fossil fuel jobs. However, as the energy landscape evolves, these regions are expected to lose a sizable portion of fossil fuel-related employment.
The same is true for the Appalachia regions, particularly in Ohio and Kentucky, where fossil fuel jobs have been a significant source of employment. The transition to alternative energy sources will likely result in unemployment, lower-wage jobs, or the need for workers to relocate.
To ensure economic resilience, local policymakers and workforce developers will need to provide targeted support to these communities. This includes helping fossil fuel workers identify alternative job opportunities and addressing any skill gaps that may hinder their transition to new industries.
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Communities reliant on fossil fuels need support to adapt their workforces
The transition to a clean energy economy is essential to address climate change. However, this transition cannot leave behind the workers and communities that are currently reliant on fossil fuels. In the US alone, a phase-out of fossil fuels by 2050 could displace over 1.7 million workers. These workers possess specialized skills and experience, and the transition to new energy sources will impact not just them but also their families and communities.
Fossil fuel industries have a significant economic footprint in the communities where extraction, refining, and electricity generation occur. These communities stand to lose tax revenues and jobs as the industry declines. For instance, in Boone County, West Virginia, local government funding declined by half in the past five years due to coal mine closures. Therefore, it is essential to ensure that the transition to a clean energy economy is fair and just for these communities.
There is a notable overlap between the skills required for fossil fuel jobs and those needed for renewable energy jobs. However, the primary barrier to fossil fuel workers securing green jobs is location, as these new jobs may not be in the same places as the current fossil fuel hubs. To address this challenge, federal and state leaders should focus workforce development efforts and renewable energy investments in specific areas of need. For example, a quarter of US counties with high potential for wind and solar energy generation are also fossil fuel hubs. Targeted support and training can help workers in these communities adapt their skill sets and find new economic opportunities.
Additionally, policies and programs are needed to support workers and communities through the transition. This includes retraining initiatives, relocation assistance, and investments to generate new sources of income for affected communities. In the US, some states have taken the lead, with Colorado and New Mexico enacting laws to channel investments into coal communities and ensure a just transition. At the federal level, the Biden administration has set aside $16 million under the Department of Energy to support a fair transition. However, more comprehensive funding and initiatives are needed to ensure that fossil fuel-dependent communities are not left behind.
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Frequently asked questions
Renewable energy careers in wind and solar energy are a good alternative for fossil fuel workers as they require similar skills.
Fossil fuel workers have strong technical skills. However, they may need to develop analytical reasoning, active learning, and decision-making skills to transition to management or sales roles.
Location is a major barrier for fossil fuel workers transitioning to green jobs. Fossil fuel extraction workers are often not located in regions with green job growth.
Cheyenne, Wyoming, which previously relied on oil revenues, has increased its profits by adopting wind farms. Texas has also seen success in transitioning to solar energy and wind power.
Training programs can help fossil fuel workers develop the skills needed for alternative careers. Additionally, employers can actively recruit transitioning fossil fuel workers and consider their unconventional work experience when hiring for management or sales roles.
