Given a shortage of strong talent and changing workforce demographics, oil and gas leaders are looking to Gen Y to fill positions and grow in to leadership roles.
There is a serious risk of a talent crisis in oil and gas. The so-called “Big Shift Change,” with baby boomers retiring in droves and leaving half a million openings in the industry over the next five years, is a real threat to companies with an aging workforce. At the same time, fewer students are specializing in programs directly linked to the oil and gas industry, leading to a smaller pool of qualified entry-level talent to grow in the ranks.
Hack Heyward | Information Services Group (ISG)
Innovation in the oil and gas industry, by its very nature, eludes a hard and fast definition. The truth is innovation can even elude our understanding. In the commercial sense, this presents a significant—and growing—problem. Many oil and gas companies who outsource products and services say they want innovation, at least in a vague sense, and yet they have trouble defining it in meaningful terms, enforcing it with any muscle or measuring it with scientific rigor. Though it is a phenomenon that is difficult to promote and implement, innovation will be a defining characteristic for those outsourcing relationships that survive the rebalancing of the oil market in the short term and thrive in the changing energy sector over the long term.
Huw Rothwell | Petroplan
“Recruiting in oil and gas has traditionally been a case of ‘square pegs for square holes’, but as the industry adjusts to a new phase of low oil prices, the importance of a more sustainable resourcing strategy with a long-term outlook becomes clear.”, says Petroplan’s Huw Rothwell.
Oil and gas firms are beholden to macroeconomic factors and exposed to substantial levels of risk relating to market volatility, uncertainty, and geopolitical instability. Despite the fact they are operating in a strategic global industry, many firms tend to be reactive. This can result in a form of short-termism.
David Meats | Morningstar, Inc
The United States has rapidly become the critical source of incremental supply for global oil markets, and growth has come overwhelmingly from unconventionals. Until recently shale producers in the brand-name shale plays (including the Permian Basin, the Bakken, and the Eagle Ford) were incentivized to capitalize on stellar returns made possible by oil prices seemingly entrenched near $100/bbl. Activity was spurred further by technological enhancements and the initial shift toward batch-mode drilling utilizing multi-well pads, both of which drove down costs for operating companies and nudged returns even higher.
Kurlan Barbosa | Enrema LLC
Sweet crude has never tasted so sour. With global layoffs exceeding 100,000 jobs and rising, and oil trading at $50/bbl, many people in the oil industry are wondering, when will we see an end to another oil depression?
It all started in 2008, with the development of advanced techniques of hydraulic fracturing and the perfection of horizontal drilling. This allowed the United States, the world’s biggest importer of oil at the time, to tap into plays that were previously uneconomical, mainly shales. This forward step increased U.S. oil production by over 70% and has reduced oil import from OPEC (Organization of the Petroleum Exporting Countries) by 50%.