# Conventional oil and gas production: Resources and labour

Steel, injected water and the energy spent getting energy

Source page: https://www.materialinsights.org/energy/e_oil_gas_conv/resources/

What this tab covers The natural resources (land, water, materials, fuel or feedstock) and the labour needed to capture this energy, per unit, with the reason each is needed.

Oil and gas production needs steel, cement and drilling fluids for wells, water or gas to maintain reservoir pressure, fuel for compressors and pumps, and a skilled workforce of drillers, engineers and offshore crews.

#### Natural resources

| Resource | How much | Why it is needed |
|---|---|---|
| **Steel and cement** | Not quantified per barrel in our sources^[6](https://woa.un.org/third-world-ocean-assessment/socioecological-systems/sustainable-and-inclusive-ocean-economy/chapter-3-subchapter-3b-offshore-hydrocarbons) | Each well is lined with nested steel casing cemented in place to stop oil, gas and brine leaking into aquifers; platforms are large steel or concrete structures |
| **Injection water and gas** | Raises recovery from at most about 20% (primary) to typically 35-45% of oil in place^[1](https://www.spe.org/en/industry/increasing-hydrocarbon-recovery-factors/) | Replacing the volume of oil removed keeps reservoir pressure up so oil keeps flowing to the wells |
| **Energy for operations** | About 15.5% of the gross energy output of oil liquids is consumed in producing them^[5](https://ideas.repec.org/a/eee/appene/v304y2021ics0306261921011673.html) | Pumps, compressors, water handling, gas processing and transport all run on fuel or electricity, often gas from the field itself |
| **Ocean space** | Offshore supplies nearly a third of oil and gas output^[6](https://woa.un.org/third-world-ocean-assessment/socioecological-systems/sustainable-and-inclusive-ocean-economy/chapter-3-subchapter-3b-offshore-hydrocarbons) | Many large reservoirs lie under continental shelves and deep basins, requiring seabed and sea-surface installations |

#### Labour

| Phase | How much | Skills | Why it is needed |
|---|---|---|---|
| **Exploration and drilling** | Not quantified per unit output in our sources^[13](https://www.dallasfed.org/research/surveys/des/2025/2501.aspx) | Geologists, geophysicists, drillers, directional drilling and mud engineers | Finding reservoirs and drilling kilometres of hole safely needs specialised skills |
| **Operation** | Alberta's whole upstream energy sector, including oil sands, employed about 138,000 people (2022)^[14](https://alberta.ca/oil-sands-facts-and-statistics) | Production operators, reservoir and facilities engineers, maintenance technicians, offshore crews | Wells, separators, compressors and injection systems need constant monitoring |
| **Operating cost per barrel** | US firms need about USD 41 per barrel on average to cover operating costs of existing wells (2025)^[13](https://www.dallasfed.org/research/surveys/des/2025/2501.aspx) | Field services, water handling, lifting | Labour and services make up much of the running cost of mature fields |
| **Decommissioning** | Not quantified in our sources^[6](https://woa.un.org/third-world-ocean-assessment/socioecological-systems/sustainable-and-inclusive-ocean-economy/chapter-3-subchapter-3b-offshore-hydrocarbons) | Plugging and abandonment crews, divers, heavy-lift specialists | Wells must be permanently sealed and offshore structures removed at end of life |

#### Sources

1. [Increasing Hydrocarbon Recovery Factors (Zitha, Felder, Zornes, Brown and Mohanty)](https://www.spe.org/en/industry/increasing-hydrocarbon-recovery-factors/) Society of Petroleum Engineers, 2011
2. [Peak oil and the low-carbon energy transition: A net-energy perspective (Delannoy et al., Applied Energy 304)](https://ideas.repec.org/a/eee/appene/v304y2021ics0306261921011673.html) Elsevier (via RePEc IDEAS), 2021
3. [Third World Ocean Assessment, Chapter 3, Subchapter 3b: Offshore hydrocarbons](https://woa.un.org/third-world-ocean-assessment/socioecological-systems/sustainable-and-inclusive-ocean-economy/chapter-3-subchapter-3b-offshore-hydrocarbons) United Nations, 2025
4. [Dallas Fed Energy Survey, First Quarter 2025](https://www.dallasfed.org/research/surveys/des/2025/2501.aspx) Federal Reserve Bank of Dallas, 2025
5. [Oil sands facts and statistics](https://alberta.ca/oil-sands-facts-and-statistics) Government of Alberta, 2024

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_oil_gas_conv/index.md)
- [Overview](https://www.materialinsights.org/energy/e_oil_gas_conv/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_oil_gas_conv/correlation/index.md)
- [Efficiency](https://www.materialinsights.org/energy/e_oil_gas_conv/efficiency/index.md)
- [Techniques](https://www.materialinsights.org/energy/e_oil_gas_conv/techniques/index.md)
- [Impact on the biosphere](https://www.materialinsights.org/energy/e_oil_gas_conv/biosphere/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_oil_gas_conv/links/index.md)