Implications of the energy transition for employees in the South African oil and gas industry

Abstract

"In recent years, the world has been experiencing increasing cases of severe climate change in the form of floods, heat waves, rising sea levels, and other extreme weather conditions. Scientists have attributed this change to excessive greenhouse gas emissions, with carbon dioxide being the dominant greenhouse gas. The major contributor to the emission of this gas is the energy industry through the burning of fossil fuels. In 2016, South Africa signed the Paris Agreement that mandates countries to undergo a transition away from a carbon-intensive economy to cleaner and renewable energy forms. The main objective of the Paris Agreement is to limit the global temperature increase to below 20C. The oil and gas industry in South Africa is of prime focus in undertaking a transition towards cleaner and renewable energy. This is an industry that contributes almost 4% of direct employment in South Africa, a country characterized by high unemployment rates. This study aimed to establish the implications of this energy transition for employees in the oil and gas industry in South Africa. The study method used was a qualitative exploratory approach in which thirteen participants that are currently employed in the oil and gas industry were interviewed. The objective was to establish whether the energy transition is being perceived as inclusive and equitable, i.e., ensuring that workers’ jobs and livelihoods are considered and accommodated in the process. The outcomes from this study were mainly a view that the transition is likely to result in increased unemployment rates in the country, especially amongst front-line workers. The other outcome was that some organizations were perceived to have more transparent and inclusive transition strategies than others. Lastly, the study indicated some optimism about the clean and renewable energy space but a lack of clarity and confidence on how the new opportunities are going to be realized."