Journal of Petroleum Technology, Vol.53, No.2, 54-58, 2001
Transforming traditional training methods to meet the needs of a modern industry
As the oil industry consolidated over the last 20 years, company profiles, core competencies, and the very demo graphics of many companies have changed radically! This is true throughout the industry and involves operating, service, and drilling companies. As hydrocarbon reserves become more challenging to exploit, the importance of technology plays an ever-increasing role in E&P operations. As the technical complexity increases, many companies are unwilling to support the budgets necessary to maintain noncore technologies in house. Some companies have found it more efficient to outsource these activities to service companies whose technology is a core competence supported by research and engineering. Mergers and acquisitions driven by the strategic need to acquire reserves and/or markets require tremendous rationalizations in the resulting work forces to reduce unnecessary numbers of engineers and technical and administrative staffs. Many operators are trimming engineering staffs whose primary responsibilities are now focused on finding replacement reserves. Operations of mature fields are being outsourced to independents as well as to service companies whose profiles are changing. This trend removes the low-risk environment that has traditionally served as the training ground for new engineers, and outsourcing brings about further reduction of excess engineering staffs. In many cases, this results in a younger, well-educated work force that lacks broad, diverse experience. In their strive for efficiency many companies have changed the demographics of their work forces, leaving them without the experience needed to mentor young engineers. The increased technology, acquisitions, downsizing, and efficiency along with outsourcing are all contributing factors to the skills gap we are experiencing in the E&P industry today.