In search of a workforce

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Since its inauguration in 2001, the Petroleum Institute has grown to currently include 1000 undergraduate students and close to 50 graduate students.

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Tone Rognstad, StatoilHydro.

The energy industry must bolster and replenish its workforce. Rearing home-grown talent is the answer.

The oil and gas industry is facing catastrophe. It comes not in the form of deflated prices or dwindling energy stocks, but in human resources. During the late 1980s and early 1990s, the slump in oil prices resulted in significant numbers of skilled workers being deprived of jobs in the energy industry.

Not only did such workers abandon the industry, but future generations were also discouraged from pursuing careers in energy.

During these low profitability years the industry neglected investment in its workforce and it is now feeling the consequences in the form of a crunch.

The majority of the employee roster is eying retirement. Up to 50% could potentially retire within ten years, according to Michael Ohadi, interim president of the Petroleum Institute in Abu Dhabi.

Such labour shortages are undoubtedly felt worldwide, but it is in the Middle East that the problem is most severe. The energy industry must now take major steps to remedy such losses. Bringing expatriates into the region to fill vacancies may provide a quick-fix solution, but long-term measures are being loudly called for.

"We need to highlight the interesting and exciting roles available within the oil and gas industry. It is a truly dynamic business that is at the forefront of technological development. This message should reach high school students before they make crucial choices about their future," explains Sudhir Pai, Schlumberger's recruiting manager.

Finding answers

"Attracting candidates is becoming more challenging than ever before," says Elias Dib, human resources manager for Baker Hughes in the Middle East and South Asia. The energy industry needs to find out why.

"Naturally worker shortages are going to be bigger in the Middle East," explains Ohadi. "Middle Eastern economies are far behind those of the top ten worldwide and the region's education system is lacking - we do not have a single university that stands out in the international rankings, let alone a technical university that compares to the standards of the rest of the world.

Given such educational shortfalls, the Middle East is losing its brightest stars to well-established universities in the West. Both students and experienced workers alike are being lured by career opportunities available outside the region.

"The talent that we really need is studying abroad and choosing to work in countries where, in three or four years time they can get citizenship and their children can stay with them," says Ohadi.

Given increased demand for workers in the industry, those who opt to stay and work in the Middle East have ample job options to choose from. There is fierce competition between companies to attract local talent, adding to recruiting strain. "Competition to attract and retain key talent is increasing. Many economies in the region are developing and as a result the number of job opportunities is also increasing," says Dib.

While the Middle Eastern energy industry struggles to prevent nationals from leaving the region, companies must lure skilled expatriate workers into the region. This is no mean-feat given negative Western perceptions of the Middle East.

Jackie Allison, Weatherford's regional recruitment manager for MENA, lists many of the Middle East's apparent failings: "the high cost of living in recent years, the media portrayal of the Middle East, the lack of people visiting the region for tourism purposes, extreme weather conditions and the quality of life and availability of services and amenities."

Nationalising the workforce

In reaction to the skills shortages, a group of five international energy companies, led by Abu Dhabi National Oil Company (ADNOC), set-up the Institute and continue to provide financial backing. Too few Emirati students were entering engineering and technical programmes and, in accordance with worldwide trends, were dismissing science and mathematics in favour of business and arts majors.

"In the case of Abu Dhabi, 90% of the economy is composed of oil and gas, so it is vital that we train people and make sure we have enough skilled workers," says Ohadi, speaking of the impetus for the creation of the institute.

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