Personnel problems, Part 1

Ian Williams, Campbell Dallas LLP, UK, investigates the skills gap in the North Sea oil and gas industry and explains how other sectors, such as agriculture, can play a role in meeting the demand.

It is no secret that the North Sea oil and gas industry is facing a skills gap. Sector skills body OPITO is leading calls for urgent action and is investing £1.2 million annually to create the first ever national oil and gas skills strategy.

The aim is to create a sustainable supply of people coming into the industry. It will begin with an all-encompassing skills survey. The results are due to be published in January 2014 and will form the basis of the strategy.

Management teams have battled to find adequately skilled workers over the last decade. Many of their most experienced employees are already working past retirement age. Personnel with 40 plus years in the industry are retiring without having the chance to pass their knowledge to enthusiastic, young ‘bright sparks’.

As the years roll on, the problem worsens. Leading trade association Oil & Gas UK expects the total invested by operators in 2013 to reach £13 billion and estimates total future investment to reach £100 billion. It means more people are needed, and this raises a question as to where employers should be looking.

Finding talent

With the future in mind, operators and support service companies are working with schools and higher education establishments to market offshore as a rewarding career option. Beyond the borders of high intensity oil and gas regions in the UK, such as the north east of Scotland, energy is not seen as an obvious career option. Perceptions need to change to create excitement about the industry among young people. It offers worldwide travel, cutting edge technology, state-of-the-art facilities and is a major contributor to the UK economy.

Oil majors are positive about their place at the forefront of technology, but they have a rival. Large software companies are beating their competition when it comes to landing top graduates. In a 2012 survey by professional social network LinkedIn, only two oil and gas companies were listed in the top ten of most in demand employers. In contrast, there were four information technology related names, Apple, Google, HP and Microsoft.

These companies have adopted strong branding strategies. They shout about their imagination, their latest products and corporate success built on teamwork and employee engagement. The oil and gas industry has all of this and more; they are powering the world and need to rise to the challenge of self-promotion. Only then will enough top bright sparks coming calling.

Employee search

Historically, the oil and gas industry in the UK was attractive to potential recruits. When the oil boom began in the early 1970s the country was facing high-energy prices and unemployment. Experienced professionals flew in from America to kick-start the offshore industry from the hub of Aberdeen.

Workers were recruited from traditional industries including textile production, farming and fishing. They were attracted by higher wages that the factories, farmers and skippers could not match. In time, these roustabouts learned how to live the offshore way. They learned the techniques and practices that would stand them in good stead for a long, fruitful career.

These pioneers are the experts of today. They are business owners, entrepreneurs and are part of an industry that has grown beyond expectations. There are 400 oil and gas platforms in the North Sea and vast onshore facilities and infrastructure. Oil & Gas UK has calculated that more than 400 000 people are employed on the UK Continental Shelf (UKCS) and that every £1 billion spent requires up to 20 000 personnel.

These are large numbers and illustrate the problem facing the industry. It takes time to train raw talent at a time when experience is needed now. This is why in-house HR departments and recruitment agencies are searching new avenues. They are watching current trends in other industries.

Part 2 of this article is available here.

Article adapted by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/12092013/personnel_problems_part_1/