Tackling the Oil and Gas industry skills gap (page 2 of 2)

"Short term fixes are inadequate to cope with the magnitude of the challenge. HR must be allowed to take a more strategic role for closing the skills gap - and in organizations where this happens - people issues are successfully, jointly owned by technical, operational, and HR managers."

Solutions on the supply side

A number of companies have developed solutions on the supply side to deal with the skills shortage. Dr. Kombargi said: "One oil company we looked at created the position of Director of Capabilities within its Technology group.

"The result of this specialized position enabled other staff with strengths and capabilities for specific job roles to be recognized for further development. It reduced the time needed to develop staff to the same high levels of competence expected in the organization," he said.

Solutions on the demand side

The study's main finding is that demand side strategies must be addressed and companies can and must change the way in which they conduct business in order to effectively close the gap. Four key areas were investigated.

Simplifying Operations: This can be achieved by using more technology and reducing bureaucracracy. For example, corporate reporting can be reduced in number and frequency to focus on necessary information; this can be aided by the development of automated and more standardized reporting systems; other more technical activities could be streamlined also. "For example, in one company, we found that developing a simplified well prognosis e-format for simple wells allowed reservoir engineers to focus on more complex wells," said Dr. Kombargi. "Also, procurement and engineering could be much more efficiently implemented by standardizing requirements and simplifying the procurement process."

Changing ways of working: Another very effective tool for closing the skills gap is to change ways of working, for example in both engineering reviews and maintenance execution in mature fields. On engineering reviews, companies could use a simplified review process (away from their typical gated process) for minor projects involving like to like changes. For improving maintenance, companies could use proactive maintenance to ensure asset availability and /or selective maintenance on assets being replaced. All of these new ways of thinking / executing work can improve efficiency and result in freeing up the time of resources, thus reducing the demand for people and skills, and as a result closing the gap.

Implementing new technologies: Smart Wells are one example of a new technology. Smart Wells use remote operation of well-head valves and allow for field data collection and transmission. "Using technology such as a Smart Well puts a greater emphasis on automation - thus a reduction in the need for man power while utilizing more efficient resources for the job," Dr. Kombargi said. "It also has the feature of real time data monitoring, enabling real time optimization decisions that increase the top line production."

Outsourcing: Outsourcing some support transactional activities within an organization can reduce demand by up to 40% in certain areas. In addition to potential savings, the main goal is to reduce the complexity of work and free up the time of resources to work on more value adding strategic activities.

In conclusion, the industry is facing a real challenge that will undoubtedly have an impact on expansion and growth plans, potentially having a ripple effect on oil prices down the road. Tackling the challenges requires commitment from the top and a dual prong approach: focusing on recruiting, resourcing, developing and retaining talent, but more importantly, changing the method of doing business - thus positively reducing the magnitude of demand for talent in the first place.