by David Doig
The repercussions of the sharp decline in oil price are being felt globally and in this new era of cost-cutting and increasing efficiency, the industry must ensure it keeps its people safe and continues to develop the skills of the workforce.
In times of cost reduction all too often, and wrongly, training and development budgets are prime targets for budget cuts. But such sweeping cuts in these areas are often born from ignorance of the real harm they cause and only serve as short-term measures. History shows that the true cost of cuts in training come back to haunt us later in the form of skills shortages and wage inflation.
Hazards and risk remain the same regardless of the oil price and a lower BOE must not mean that they are managed differently.
A robust people strategy must be applied in a down turn to keep the workforce safe and ensure the operator is well placed and has a competitive edge to take advantage of the upturn when, as it will undoubtedly, arrive given the history of the industry.
It is the smart organisations who realise that in times of cost cutting and a drive for increased efficiency, it is our people who are the key to our success. It is a highly skilled, safe and motivated workforce that will ensure the industry remains competitive. Even in the current climate, production operations will continue as will the need for maintenance. If we take a cynical view that maintenance activities will be reduced then the need to ensure the workforce is trained and competent becomes greater.
Doing more with less will be the way of the future for some years and by taking a standards-based approach to training through OPITO, companies can ensure the workforce has the right skills, operates safely and is therefore much more efficient.
The OPITO model uses standards that focus on the critical needs in the workplace, it’s not “just a bit of training” it’s a structured approach to managing risk and developing skills be that safety or operational task critical.
The OPITO job role functional analysis defines knowledge, skills and ultimately competence. Feeding the analysis into OPITO standards provide employers with a structured standard-based approach to training, development and managing risk. There are clear cost efficiencies using the OPITO model of common global standards and structured skills development. Duplication is removed through the alignment of competence within the standard structure that makes up the OPITO skills frameworks. For example refresher training is defined only for skills that cannot be gained in the workplace, and nobody trains for something they do not need, so efficiency can be increased.
The OPITO structured approach to training and development of the workforce shows that by applying a well thought-out and structured training regime, costs can be reduced.
This year’s OSCC – OPITO Safety and Competence Conference – will explore the economics of safety at $60 oil. The event to be held on the 3rd of November in Abu Dhabi is the only global annual event focused on safety and competence and is now in its sixth year.
Through a blend of presentations from leaders in oil and gas other industries, delegates will be inspired to implement strategies that increase efficiency while making sure people are not at risk when operating within a lower BOE price environment.
The personal and corporate price of cutting corners on safety and how to fight back from tragic incidents will be reinforced while the need for and benefits of a structured standards-based approach to managing risk will be spelled out.
With statistics which show that accident rates do increase when corners are cut, OPITO will demonstrate that safety and skills must be seen as a long-term investment and not a short-term costs and why it is unacceptable, both commercially and morally, to cut workforce training.
The real cost of safety doesn’t show up on the balance sheet. When safety systems fail, the real and long-lasting human cost cannot be quantified simply in monetary terms. The impact on people and their families goes beyond the incident, investigation and conclusion.
Cost correction is critical but cost-cutting without a long term strategy is short-term thinking. Smart organisations need to think differently and see opportunity in all forms of change. These employers will remain committed and become inventive and entrepreneurial in their thinking. Innovation in training, through greater use of technology will be key in the future. With effective leadership, teamwork and innovation, employers will implement strategies that drive efficiency, create opportunity but don’t impact on safety.
In a lower oil price situation the industry inevitably has to correct itself, change and adapt its operations but so too must the regulators. At OSCC, regulators will discuss how these changes must influence their thinking and their strategies for inspection and compliance to accommodate and work within the changing environment.
Smart employers know that a safe, productive, motivated workforce will drive competitiveness and as the BOE price has declined it will inevitably rise and a dynamic workforce will be vital to take advantage of opportunities.
Smart employees know they only want to work for employers that genuinely want to keep them safe and continually invest in their skills and safety.
