In a report released earlier this year, management consultants Booz Allen Hamilton, suggested that the oil and gas industry had stretched its resources to breaking point. The report suggested an emerging skills and labour crisis could become a critical issue, creating the potential to stall the current oil and gas boom.
Raed Kombargi from Booz Allen Hamilton discussed the threats to the industry posed by the shortage of suitable human resources.
"[It could create an] inability to deliver expansion programmes, slowing down of oil and gas exploration programmes, missing the boat on knowledge transfer to the new generation of workers and/or from expatriates to indigenous workers and the migration of talent to other industries," said Kombargi. "There will also be less rigour on development of the technical side, leading to future leaders that are technically less capable than the current generation."
Had there been a shift in the perception of the value of engineering as a career? While baby-boomers had seen it as a valuable and well-paid option, this impression faded in the 1980s.
"Since the late 1980s everybody got an MBA and went to work for investment banks or consulting firms," said Kombargi. "Very few people obtained science or engineering degrees, let alone in a petroleum related subject. Even today, engineers are not usually attracted by petroleum engineering studies...You cannot run an oil company with MBAs, you need technical talent."
There's a widely held view that the industry is facing a declining resource pool. It's being caused by the limited number of young people entering the industry, combined with the retirement of experienced people.
"If the industry continues [like this] for a further 25 years, the peak of needs will certainly be in the early years of the next decade (2011-2015)," said Jerrard Winter, of specialist recruiter Haztek International. "That period will offer severe challenges to meet major operations and project goals and performance targets. The Gulf region is still on a learning curve and the training and early hiring of personnel in anticipation [of the peak] will be crucial."
What can be done? The industry must make itself more attractive to potential candidates, if it is to improve the chances of recruiting the people it needs. The industry treats the issue in different ways, but there are common themes and success is being found in some approaches.
The recruiters
Haztek specialises in recruiting HSE specialists for the oil, gas and construction sectors. The company uses three main sources to find candidates.
"Our preselection criteria enables to have a good selection of HSE professionals," said Winter.
"For any vacancy we initially use our own internal database shortlist. Failing this, we use a bulletin to all personnel on Haztek's global distribution list and thirdly an advert on our website. Our recruitment is very regional and we are able to use our Middle East office in Dubai to assist."
The local connection allows Haztek to develop a good picture of the region to feed back to potential candidates. The company claims this approach allows it to address one of the biggest issues companies face in getting people to move to the Gulf.
"The greatest challenges in mobilising personnel to the Gulf are those of culture and understanding the Middle East way of life," said Winter. "Many capable personnel looking for career changes and improvement in their family lifestyle will consider the Gulf, but base salaries remain behind western regions and also the possibilities for career advancement are not so evident.
"We recognise that the need for more HSE personnel to support major engineering, procurement and construction projects means developing existing line personnel into HSE advisors, supervisors and managers."
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