Technological Innovations and Employment in the Oil and Gas Sector

Abstract

Changing external conditions and the need to reduce production costs will push oil and gas companies towards rapid automation. Introduction of modern digital technologies into the oil and gas industry will lead to significant changes in the quantitative and qualitative characteristics of labor demand, primarily in production units. These changes may be quite sensitive for many regions of Siberia and the Far East, where resource extraction companies are the most prominent employers. Despite the expected decline in employment and migration of jobs from the most remote regions to more urbanized areas, the technological innovations that trigger them will create new market niches and points of growth. Therefore, the impact of technological innovations on the Siberian and Far Eastern labor markets should be taken into account in the design of regional development plans and policies.