One of the factors constantly nagging the oil and gas industry is the “big crew change,” or the “petroleum rapture,” as I like to call it. Effectively, it is that time in the not-so-distant future when the baby boomers decide to retire, and the Gen X-ers, Gen Y-ers, and Millennials are left with the not insignificant task of keeping the world’s largest industry afloat.
In this month’s issue we have devoted our “operator solutions” feature to workforce management in the hopes that there is some good news out there and those of us with a few gray hairs can think about retiring without too much guilt. In tandem with that feature, I talked to John Faraguna, the global managing director of Hays Oil & Gas. Hays recently released its “Oil & Gas Global Job Index,” indicating that improving economies and increased salaries may actually result in an overcapacity of workers in the industry.
“We’ve seen many cycles over the past 30 years, and in that time when money has flooded into major capital projects, that’s usually the peak before the downward ride,” the study said, although its authors have a “cautiously confident” attitude toward continued industry hiring.
I asked Faraguna how to best characterize the current workforce situation, and he said it boils down to a skills shortage. “Right now the feeling is that there is plenty of economic opportunity,” he said. “The question is, how do we do it? We’re constrained by people. In some respects, that is a good problem to have.”
In Faraguna’s opinion, economic concerns have subsided over the past year as countries such as Greece, once teetering on bankruptcy, are beginning to stabilize. Now the industry can focus on ways to improve its hiring and training capacity. Some countries are reexamining their immigration policies, making it easier and more attractive for skilled workers to relocate. The industry, while constantly constrained by a bad public image, is starting to look more attractive since petroleum engineers are now the most highly paid college graduates. And universities are becoming more engaged with the changing needs of the industry.
But another intriguing idea comes from other industries. Faraguna mentioned the popularity of “physician’s assistants,” trained professionals who can supplement the work that doctors do.
“I think the industry will find ways to create ‘subsidy engineers,’” Faraguna said. “It’s a way of making better use of the skills we already have.”
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