Solar energy outshines oil and gas job numbers stateside

The number of U.S. jobs in solar energy overtook those in oil and natural gas extraction for the first time last year, helping drive a global surge in employment in the clean-energy business as fossilfuel companies faltered.

Employment in the U.S. solar business grew 12 times faster than overall job creation, the International Renewable Energy Agency said in a report on Wednesday. About 8.1 million people worldwide had jobs in clean energy in 2015, up from 7.7 million in 2014, according to the industry group based in Abu Dhabi.

Fed by state initiatives to spur clean energy and innovative financing measures offered by companies such as SolarCity Corp., developers are adding workers at record rates to install rooftop panels. Oil and gas producers by contrast have slashed 351,410 jobs worldwide since prices began to slide in the middle of 2014, according to Houston-based Graves & Co.

“The continued job growth in the renewable energy sector is significant because it stands in contrast to trends across the energy sector,” said Adnan Amin, directorgeneral of Irena, which is based in Abu Dhabi. “This increase is being driven by declining renewable energy technology costs and enabling policy frameworks. We expect this to continue as the case for renewables strengthens and countries move to achieve climate targets.”

The pace of jobs growth worldwide slowed last year from 18 per cent in 2014 mainly because of lower investment in biofuels following the oil price slump, which made alternative fuels less economically attractive, Irena said. Brent crude prices slipped 35 per cent last year, the third consecutive decline. Biofuels made from crops such as sugar and corn employed 1.7 million workers, second to solar with almost 2.8 million jobs.

The group projects the workforce in clean energy will grow to 24 million by 2030 if United Nations climate targets are met.

The 58 per cent slide in oil prices since June 2014, triggered by Saudi Arabia’s grab for market share, has prompted reductions in employment in the fossil-fuels industry. Many higher-cost producers in the U.S. shale industry, Canada’s oil sand sand Brazil’ s deep water-drilling projects have become unprofitable. The transition to clean energy spurred by a landmark deal in Paris involving almost 200 nations is reflected in the global labour market for renewables.

China installed the most new renewable capacity in the world in 2015 with 65 gigawatts. It employed 35 per cent more people in its clean energy industry than in oil and gas.