Three Ways Europe’s Oil & Gas Industry Can Adapt to the ‘Silver Tsunami’

Can European economies grow when their workforce shrinks? The question could be a defining one for the next decade: For example, the Nordics have seen their working-age population shrink by 3% since 1990 as larger cohorts of workers retire than enter the workforce. 

Few sectors illustrate the challenge as clearly as the oil and gas industry. Globally, one in five of its employees is over 55, according to the 2025 Global Energy Talent Index. A survey by Hexagon found that two-thirds of industry executives already experience a “strong” or “severe” impact from retirements and departures. 

But the sector is also caught in a difficult position. Current economic uncertainty and persistent skill shortages limit its capacity to hire in large numbers. At the same time, the industry already lost 700,000 workers during the previous slowdown (2015–2022) and it now risks a significant loss of institutional knowledge, with implications for safety and performance. 

To address this, leading companies are investing heavily to capture operational knowledge. They also apply technologies, such as digital twins and artificial intelligence, that can help them to do more with less – or do more remotely. 

Capturing Institutional and Informal Knowledge 

On the first front, companies with a large share of employees nearing retirement are acting quickly to preserve operational knowledge. 

Consider the Crossbridge Energy Refinery, one of Denmark’s largest. To address the knowledge retention risks posed by a retiring workforce, the company adopted a “Connected worker” vision with a strong emphasis on digitising procedures and ensuring that they reflect the actual work being performed. 

The system is bidirectional – meaning that operators can now provide feedback while in the flow of work, so that procedures remain relevant and up to date. This also ensures that process knowledge is adequately documented, rather than being memorized by veteran employees.  

Beyond the example of procedures, there is a strong incentive for companies facing skill gaps and workforce challenges to identify and digitise key operational processes where information is exchanged, sometimes orally or informally – for example, shift handovers. 

Capturing Institutional and Informal Knowledge 

A crucial second step, after knowledge retention, is knowledge transfer: imparting that knowledge to raise the level of competence of the "5-year" average employee to that of a "20-year" veteran, making best use of available resources. 

Artificial intelligence plays a significant role in this shift. Chatbots and other conversational tools are already integrated into digital twins and maintenance platforms, providing process guidance and access to asset data and documentation. 

However, the sector still has a long way to go. As of 2024, only 24% of oil and gas employees reported using AI in their jobs, and 15% generative AI specifically. However, in line with the general population’s appetite for these tools, the sector’s workforce was eager to see them adopted: 71% of employees believed AI could make them more productive. 

Leveraging technology to Reduce On-Site Tasks 

Lastly, companies have a strong interest in reconsidering which tasks need to be performed on-site and which could be done remotely. 

Recent advances in imaging technologies, such as drones and handheld laser scanning, have helped extend the scope of tasks that can be performed by providing remote workers with a precise picture of the machinery and layout of the site, along with direct access to maintenance history and technical documentation.  

These technological advances mean that facilities can be monitored from thousands of miles away and some processes, such as line walks, performed entirely remotely. This perspective is particularly attractive to oil and gas companies, whose sites can be remote and spread across a large territory. 

Using imaging technologies like laser scanning data and a digital twin that housed all operational data and documents, Harbour Energy, the largest British North Sea leading North Sea oil and gas producer, was thus able to conduct certain inspections and line walks entirely remotely from India.  

This reconsideration will lead to leaner industrial facilities but also to smarter ones. For example, shifting from reactive maintenance interventions to predictive ones prompted by automated data analyses has been shown to drive productivity gains of up to 25% according to Deloitte, a consultancy.  

Using AI to Capture and Impart Operational Knowledge 

This shift fits into a broader trend. The pandemic has reshaped the way we think about work and exacerbated skill shortages, driving companies to rethink tasks that are unnecessarily labor-intensive. As Europe’s working-age population shrinks, there are significant benefits in accelerating the adoption of leaner distributed teams and smarter knowledge-sharing strategies. Organizations that embrace these changes will gain a competitive edge. 

Expectations have also changed regarding how this knowledge can be imparted. For example, companies are increasingly leaving behind static procedures for digitized and intelligent ones, structured and standardized by AI-driven natural language processing. These procedures can then be queried by a chatbot that can deliver access to appropriate documentation and broader process guidance. 

Conversational tools can thus elevate the competence of a 5-year employee to that of a 20-year veteran. By leveraging innovations such as digital twins, predictive maintenance and IoT connectivity, companies can ensure they’re making the best use of their resources while enabling faster and more accurate decision-making. 

HxGN EAM is pushing the boundaries of what it means to be a true asset management solution, integrating predictive maintenance, AI/ML algorithms scanning and visualization and interoperability. These tools make it easier than ever to optimize operations and prepare for the future of work. 

Do you want to see these technologies in action? Don’t miss the EAM Connect+ event on November 20th at ESS. Join us to learn how these solutions can transform your business.