Dragged down by declining demand, production pressures and the emergence of the shale revolution, the worldwide (and regional) oil and gas industry is in a bind. Growth and earnings have been stymied thanks to global oversupply and the prolonged drop in key consumer markets has dented prices. In light of the current situation, experts believe the counter measures that might help to salvage the situation include taking strategic decisions on issues concerning workforce retention and relevance, expectations from employees, engaging employees, and enhancing employee skills.
With layoffs making headline news, employee survivability concerns are surfacing. Employee productivity is increasingly in the spotlight as companies restructure, and honing employees’ technical skills is a mandatory industry imperative for streamlining operations and improving productivity and cost-efficiency.
Under pressure from stakeholders, the industry is mindful of the need to take a fresh approach regarding employee output, and to undertake initiatives to empower employees and redefine their remit. As companies gravitate towards modernisation and a more technology-savvy, productive workforce, employees are increasingly being put through specialised training programmes to advance their skills and capabilities.
Islam Abdallah Hassan Ahmed is the UAE-based general manager for consulting and training operations for the GCC region at Intertek, a multinational quality assurance and services provider that offers testing, inspection and certification solutions, and has training facilities in the UAE and Saudi Arabia. He says that even with tougher market conditions, training remains a vital part of operations in oil and gas companies.
“In the oil and gas sector you need team members whose skill-sets are as current as possible and this entails regular, periodic training and constant upgrades to keep up with technological advances.”
He explains: “For training services, optimising the costs means customising programmes that adhere to specific, predetermined criteria including practical, on-the-job training, workshops and courses.”
He also advocates providing technical training, a position shared by Federica Schiaffino, HR regional director, Eastern Hemisphere for Tenaris, a manufacturer and supplier of steel pipe products and related services for the energy industry.
“Professionals working today in the oil and gas sector are required to have a sophisticated combination of technical and managerial skills that meet the current and future needs of a fast-evolving working environment,” she says.
The demand for specific technical training is presently very high, since it is vital for oil and gas professionals to be up-to-date on all emerging technologies and applications. At the same time, the oil crisis has transformed the business landscape in a way that requires a shift in thinking. Consistent drive for innovation and the ability to generate new and cost-effective solutions are key factors. This results in the need for cross-discipline training in business, project management, P&L, health and safety, environment and social responsibility learning experiences.
It appears that much of the younger workforce tends to be lacking both the technical competencies and the leadership skills needed to drive the sector forward, Schiaffino adds. “The demand for training is not only a strategic tool for the development of employees, but also plays a key role in the retention of talent, especially at a time when companies in the oil and gas sector are under duress and facing a challenge when it comes to retaining their top talents.”
The strong drive in the Middle East to promote local talent will lead to the hiring of new graduates, who will require training to get them up-to-speed with industry-specific knowledge, Schiaffino adds.
To buck the downward trends, companies must find ways to maintain the necessary cost reduction while still introducing training focused on the most critical skills required for the future of the industry. “These include mobile learning solutions, e-learning, training and leveraging expertise for instruction,” she concludes.
