The oil and gas industry has long been the backbone of many communities across the U.S., from Texas to North Dakota. However, employment in this sector has seen a significant decline, dropping to 115,100 in June 2026 from 187,300 in January 2016, even as production levels remain high. This shift has left many workers anxious about the future of their livelihoods, especially as the energy transition gains momentum.
The recent closure of the Strait of Hormuz highlighted the broader implications of the energy transition. In April 2026, urea fertilizer prices surged above $850 per metric ton, an 80 percent increase since February. This spike underscores the link between energy production and essential goods like fertilizer, which relies on hydrogen derived from natural gas.
Morten Stahl, CEO of Natural Hydrogen Ventures, argues that the energy transition does not have to leave oil and gas workers behind. Natural hydrogen, which forms underground similarly to natural gas, could offer a viable path forward. The skills required to extract natural hydrogen, such as geology, land negotiation, and drilling, are already well-established in the oil and gas industry. With targeted retraining, workers could transition to this new sector.
Stahl emphasizes the need for federal support to explore and develop natural hydrogen. This could position American workers at the forefront of an emerging industry, creating new jobs and stabilizing domestic fertilizer supplies. Failure to act, he warns, could lead to a shrinking workforce, higher costs for consumers, and a loss of America's early lead in natural hydrogen to other countries.