America prioritises Oil & Gas - How does this impact the renewable energy sector?

The US has made their stance clear on the energy sources they see the most value in - and it's Oil & Gas.

There have been many news stories at this point about the US government cutting funding to clean energy projects, including solar and hydrogen energy initiatives. The most recent of these cuts equate to around $8 billion that has been taken away, and that doesn't even touch the sides of the full amount that has been cut over the course of 2025. 

When funding reduces in any area, it naturally has an impact on the way companies operating in the space go about their business. And one of the first areas that's often impacted - both positively and negatively - is recruitment. With that in mind, here's a rundown of what we're seeing in the space right now. 

Brain Drain / Gain

There are states in America that specialise in different energy sources. And with these cuts impacting energy sources in different ways, it stands to reason that different states will feel the effects in their own unique ways. California, Washington, and New York are among the states where their renewable energy projects are having funding slashed. These states could be set for a mass exodus of talented workers from these industries as they seek projects in different places where their skills will be better financially rewarded.

Companies based in these states looking to keep hold of their best talent will need to look into water-tight retention strategies. Think about what you can offer that doesn't come with a significant expenditure, but will be well received by your staff. This could include equity options for some more senior members in your company, or could even be more favourable working conditions/patterns - if you can offer flexibility in location or hours, then this could be an excellent retention strategy.

States where Oil & Gas are the most prominent energy industry include Texas, Pennsylvania, and Louisiana, and on paper they stand to be in a strong position to attract new talent - potentially even talent from the states that are losing their talent. There are likely to be enough transferable skills between roles in renewable energy and Oil & Gas that people can easily pivot between industries.

To be at the front of the list for talent leaving renewable energy, a key point could be in the support available for relocating. Providing a budget to alleviate the costs that come with moving to a new area, as well as helping find suitable accommodation for the candidate and their family, could be a big draw in this competitive talent market.

Talent shortages / expansion

It has been well documented that, other than a few talent hotspots across Asia, there has been a consistent skills shortage for certain technical roles within renewable energy. Budget cuts for these industries across America will do nothing to help this fact in the long term as the lack of job security and funding into the industry reduces the attractiveness of going for these roles.

One way to counteract this risk is by implementing strong learning and development schemes within your organisation. Whilst not the quickest way to get skills into your business, upskilling your existing team is certainly a worthwhile method that can be cost-efficient and a talent retention strategy at the same time; people feel valued by a company that invests into their development.

Oil & Gas companies on the other hand are likely to see their potential talent pipelines expand over the coming years in the states as that's where the money and job security are currently most prevalent in the energy sector. So the only problem to face here is the presence of too many candidates. How do you find the best candidate for a role without it taking an age?

Streamlining your recruitment process can come in a variety of different ways, including creating clear timelines from the start, having a targeted question bank, or even cutting out any unnecessary interview rounds. If you're interested in reading more about this, we have a whole blog that dives into great detail on this right here: https://www.fmctalent.com/article/how-to-streamline-your-interview-processes

It's not all doom and gloom for renewable energy companies in the US, but there certainly needs to be some extra thought going into recruitment and retention strategies moving forward. It's also worth pointing out that, for many people, working within renewable energy isn't about following the money, but it's actually a moral choice. Some candidates who lose their jobs within renewable energy may not look to transition to Oil & Gas for environmental reasons.

Despite this fact, Oil & Gas companies are likely to be in a strong position for talent attraction in the near future. Interested in how we can help with these attraction strategies? Reach out to me on andy.martin@fmctalent.com and let's see how we can work together!