solving the crew change dilemma in oil & gas
DESCRIPTION
The success of the oil & gas industry depends to a large extent on the people who work in it. Due to demographic & economic shifts, there will be a large gap in techno-commercial roles in the next few years. How should the industry respond? This presentation presents a few thoughts from an experienced executive.TRANSCRIPT
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Solving the Crew Change DilemmaLaying a Pipeline for Future Talent
Ian Rushby
Chairman, Global Energy Talent
www.globalenergytalent.com(c) Copyright 2008 Global Energy Talent Pvt Ltd. All rights reserved.
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A New Talent Networking Platform
Connect companies, professionals, students and academic institutions and help source and grow talent for the global energy ecosystem
EnergyCompanies
• Oil & Gas• Renewables• Power
Recruitment
ConsultancyTraining
Information Exchange
• Academia• Professional Bodies
Institutions
Professionals• Students• Early career• Management
• Grants• Research
• Placements• Career Advisory
• Custom courses• Executive education
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Geopolitical Shifts
Multiple industry inflection points– Energy security and resource nationalism– Accessability & developability getting more stringent
• Deeper waters, frontier economies
– NOC & IOC power shift• NOCs becoming IOCs of the future
• Increased use of Services providers
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0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
United States India China
Associate degrees
Bachelor degrees
Reserves and Talent Spread
Where will future technical talent come from?
Source: CERA 2007
O&G Related Engineering Graduates
VenezuelaNigeria & Eq.
Africa
Angola
S.ArabiaQatar
Iran
China
Sakahalin
Potential Staff Growth AreasSource: Booz Allen Hamilton 2007
Proven Gas Reserves end 2007 (Trillion cubic metres)
Middle East
Europe & Eurasia
Africa
S & C America
N. America
Asia Pacific
73
59
15
8
8
15
Proven Oil Reserves end 2007 (Billion barrels)
Middle East
Europe & Eurasia
Africa
S & C America
N. America
Asia Pacific
755
144
118
111
69
41
73
59
15
8
8
15Source: BP Statistical Review 2008
CentralAsia
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The Talent Gap in the Middle
• 38% shortage of Upstream engineers & geoscientists, 28% in instrumentation
• It will take 7-10 years to fully train and deploy replacements
0
5
10
15
20
25
20-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 61-65
Western Oil Industry: Demographics of Petroprofessionals
Perc
entil
e
Age Source: CERA
Source: CERA, Booz Allen Hamilton
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Implications for the Industry
Increase in risks related to personnel• Enterprise risks
– Understaffed projects minimize asset utilization– Higher financial risk due to project delays or failures– Boundaries of technology require innovation
• HR process– Missing mentors: Slower induction of fresh entrants– High value employees not used for recruitment: Poor
assessments in sourcing process
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How Future Talent Thinks
• Ethnography research– Psychographics among Indian engineering students
• Perceptions of industry– Old & dirty industry
– Exciting, travel opportunities– Nationalistic; serve my country
• Career decision making – Fully mapped out career even at young age
– Seek credible advisors
– Money is important, but not primary motivator
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Talent Development
Build a pipeline of younger professionals• Broader outreach to academia• Industry employment positioning
– Risk taking, adventure– High impact
Enhance induction• Simulation & modeling for quicker experience• Decision making roles earlier in career• Buddy learning system
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Building a Global Talent Pipeline
Sow the talent seeds for the next decade now
• Source from India & China for global deployments• Facilitate knowledge transfer for sustainable localization
– Vocational institutes– R&D
• Invest in local institutions for people development
10 www.globalenergytalent.com
Global Energy Talent Harnessing the Power of People
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