· 2 min read
illuminem summarises for you the essential news of the day. Read the full piece on The Wall Street Journal or enjoy below:
🗞️ Driving the news: Major oil companies including Chevron and BP (see sustainability performance) are increasingly offshoring high-skilled engineering roles to India, where labor costs are significantly lower
• These moves involve transferring thousands of white-collar jobs, including geologists and engineers, to Indian hubs — where professionals earn roughly a third to a quarter of what their U.S. counterparts are paid
🔭 The context: This shift comes amid sustained cost-cutting pressures within the oil and gas industry, especially following recent oil price volatility and long-term strategic pivots toward leaner operations
• Companies have already downsized considerably in Western markets, with many previously impacted by recession fears and market disruptions triggered by geopolitical developments and trade policies
🌍 Why it matters for the planet: As Big Oil restructures its workforce, the trend highlights how energy companies are reallocating resources to maintain profitability during the energy transition
• However, offshoring key technical roles may raise concerns about oversight, environmental accountability, and consistency in safety standards — especially in complex, high-risk operations like fossil fuel extraction and carbon management
⏭️ What's next: Expect increased scrutiny from regulators, labor unions, and sustainability advocates in Western markets
• The move could also accelerate the bifurcation of technical innovation hubs, as India’s role in global energy operations expands
• U.S.-based roles may increasingly shift toward project oversight, compliance, and transition planning rather than traditional engineering functions
💬 One quote: “We’re optimizing our workforce globally to better align with our strategic goals and market realities,” — a spokesperson for Chevron
📈 One stat: Indian engineers in the oil and gas sector earn approximately 25% to 33% of the average salary of their U.S. counterparts, according to industry analysts
See on illuminem's Data Hub™ the sustainability performance of Chevron, BP and its peers Shell, ExxonMobil, and TotalEnergies
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