Personnel Problems, Part 3

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Click here to read Part 2 of this article.

Ian Williams, Campbell Dallas LLP, UK, concludes his investigation into 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.

Smart global thinking

The world is not short of engineers. Investors think globally and certainly did when the benefits of the UK market could not compete with regions such as Brazil and Australia. Operators and support organisations could cast their nets wider to attract employees. Aberdeen has become a cosmopolitan city, but in contrast 85% of the UKCS workforce is from the UK. The countries with the next highest percentages are Norway, the Netherlands, Canada and the USA.

April 2011 saw the UK Government introduce an enhanced cap on the number of skilled workers who could migrate from countries outside the European Union. They gave a boost to companies by stating that skilled people coming in as intra-company transfers (ICTs) would be excluded from the cap. It means oil and gas companies have the freedom to recruit specialists from abroad.

The UK shortage occupation list allows workers who meet certain criteria to enter the country for employment. Desired oil and gas industry roles include mechanical engineers, petroleum engineers, drilling engineers, fluids engineers, offshore and subsea engineers and control and instrument engineers. Such government measures to help attract the right people are welcomed across the industry. It ensures the UKCS continues to attract the best people to fill vital vacancies and help the economy to grow.

Labour deficits have prevailed since the 1980s; yet surges in demand, the need for experience and aging workforces have forced companies to implement new talent acquisition strategies. Management teams are turning their attention to the talents of international personnel for the health of not only their business but also the industry as a whole. Trends in upstream recruitment show companies are building globally mobile workforces. Work in the industry is transient, employees are required anywhere hydrocarbons are being extracted.

India is emerging as a location for recruitment. It has skilled engineers that North Sea companies can utilise. These workforces can be a short or longer-term fix to plug the skills gap as experienced professionals retire. Training and graduate schemes will continue in the meantime. There are solutions to equalise the pressure that companies are feeling about the impending void of experience, which could stunt growth and affect safety practices.

Future proofing

Each industry and government must heed mistakes made in the past. There is solid ground in education and training but it is through awareness that tangible differences will be seen. If companies can get the message across that there are more than 50 years of life left in oil and gas exploration and production, renewables and decommissioning then applicants will come.

Oil & Gas UK chief executive Malcolm Webb previously said that the industry was ‘Britain’s Best Kept Secret.’ More than 24 billion bbls. of oil and gas remain under the seabed of the North Sea. The rate of production has hit a seven month high of 900 000 bpd. Such production results in more jobs and more people moving into the production areas of the UK. The industry needs to take responsibility for promoting itself in the right places. Marketing towards willing candidates from the agriculture sector is a solid start.

Work ahead

If the North Sea is to reach its potential over the coming years then it will require a constant supply of competent recruits. OPITO’s Labour Market Intelligence Survey asked companies to identify the greatest challenges facing their business. The ability to attract appropriately skilled staff was the biggest concern with 51% of respondents. Unsurprisingly, engineers are in highest demand. Managers come in second followed by operational staff.

The skills gap is set to continue. It will not go away overnight but the oil and gas industry has never been scared of sweeping changes. Strategists should work with the 12% decommissioning tax incentive to create foundations for the future. It is a spin off industry, which will sustain UK jobs in the long-term.

At the same time, companies should reach out to inform young people that oil and gas awaits. An individual could start their career today and enjoy a full, satisfying career. There are hundreds of opportunities for the taking.

Click here to read Part 1 of this article.

Click here to read Part 2 of this article.

Article adapted by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/13092013/personnel_problems_part_3/