Employer Challenges


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Oil & Gas Careers – The State of Play Deirdre O’Donnell Managing Director, Working Smart Limited

1998/1999 Crash - Outsourcing Trend Birth of Flexible Organisation in O&G

Impact of 1999 Crash           

End of the “Career for Life” model Major layoffs across the supply chain Graduate programs cancelled/reduced O&G graduates join other industries – IT, Banking Training/Development budgets slashed Reduced sponsorship - MSc and PhD R&D moved out of operators Major reduction in graduate intake... Employer/Employee loyalty ends Boom/Bust - poor perception with young Emergence of consultancies

Impact of 2008 Crash  Poor year for Graduates

 Immediate reaction  “Local content” increases  Less Ex-Pat Assignments

Source: High Fliers Research June 2009

Impact of 2014 Crash 

Major Job cuts



Consultancy day rate cut 15%-30% Some Salary cuts



Services cuts 45% Rig Charges cuts 50%



Offshore shift pattern changed – 2 on 3 off to 3/3



Many 60+ age demographic - retired, reduced days....



Boom/Bust culture prevails...

Young Professionals - Survey Results What are your main concerns related to a low oil price environment?

Training cut-backs Lack of opportunity to travel Job security Career progression is difficult Change in career direction Lack of support after termination from job Experienced mentors no longer with company

Source: Survey 2015 SPE/PESGB/AFES

Looking back on what happened after the 1999 crash, when there were few graduate jobs, will the same thing happen again? Will we be the next lost generation?”

Source: Devex 2015 - Young Professional

Impact on Young Professionals       

Some YP layoffs Graduate programs cancelled/reduced O&G graduates join other industries Training/Sponsorships cut Workload increases Financial Lack of mentoring programs...

Some Statistics

Membership by Age

AAPG MEMBERSHIP DEMOGRAPHICS

What age do you intend to retire at? Expected Retirem ent Age 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85

Working Smart Research 2011 – “Great Crew Change – Fact or Fiction”

Available Resource How m any days a w eek do you envisage w orking after your intended retirem ent age.

2% 18% 28% 1 2 3 4 5 all days available 28% 17% 7%

Working Smart Research 2011 – “Great Crew Change – Fact or Fiction”

Do you Mentor Staff? Do You Mentor Staff

24%

No Yes

76%

Working Smart Research 2011 – “Great Crew Change – Fact or Fiction”

How do you mentor?

32% on one-to-one basis through a formal program through normal participation in a team

59%

9%

Working Smart Research 2011 – “Great Crew Change – Fact or Fiction”

Recognised Industry Resource Challenges          

Departure of baby boomers Competition for geoscientists & engineers Greater collaboration between industry and academia Global decrease of graduate intakes Tapping into the global pool of graduates – non-standard qualifications across countries School to Graduates to professionals Transferring Knowledge - Mentoring Attract/Retain/Manage for leadership Negative Image of Industry Managing the volatility of the oil price

Final Thought With our ageing workforce departing, minimal mid-tier expertise and limited graduate prospects... Devising a low cost sustainable ‘Resource Strategy’ has never been more critical!