Manpower boost will need money

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Abdalla El-Badri, Secretary General of OPEC, believes a lack of investment has contributed to the shortage of manpower being experienced by the oil industry.

The shortage of manpower felt throughout all sectors of the oil industry is not just a Middle East problem, it's worldwide.

Its cause is a lack of investment during periods of low oil prices, says Abdalla El-Badri, secretary general of OPEC (Organization of the Petroleum Exporting Countries).

"Now the oil industry is not only facing production problems, but also a manpower shortage," he told Oil & Gas Middle East in an exclusive interview. "It is short of manpower in exploration, petroleum engineering and geology activities. Skilled manpower is really in short supply everywhere in the oil industry, not only in the Gulf, but in regions such as North Africa and even in the US itself.

"When prices were down, everyone got rid of their people and there was no investment in manpower. Students didn't go to technical colleges and get educated about the oil industry. Now, as a result, we have a big shortage."

El-Badri believes the only answer is to start training more people on a larger scale.

"There is no quick fix," he said. "You have to invest and you have to train and train and train."

From OPEC's point of view part of the problem comes back to security of demand. OPEC says it needs to know what future demand for oil will be, so its member countries can invest appropriately and avoid what El-Badri terms 'idle capacity'.

The presence of too much idle capacity could see the oil price drop to levels that discourage investment and result in companies shedding those human resources that have become so scarce in recent years.

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