How to hit your numbers when there is a skills gap.

Hit ting your numbers in Oil and Gas

Hit ting your numbers in Oil and Gas

60%

workers are over 45.of oil and gas

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Oil and gas industry producers are under more pressure than ever to perform, but at the same time they face an unprecedented shortage in skilled labor and the pool is continuing to drain fast. simply put, there aren’t enough experienced people for the work that needs to be done.

in a recent industry survey, the shortage of skilled workers is the single

largest concern expressed by employers, at 30.6 percent, higher than world

economic instability with 29 percent.1

With Canadian oil sands production poised to reach 3 million barrels

a day by 2021, forecasts suggest that the shortfall in workers to service that

figure will be 114,000 short. this is one example of a growing global trend,

and one that needs to be balanced alongside the natural resources

available, and how to extract, process and transport them in the most

cost-effective way.

Continuing staff shortages and high staff turnover have an impact on

asset safety, with inexperienced employees, or, in many cases, third-party

contractors, unsure how certain processes get implemented or how

some systems work. And with operations moving into more hazardous

environments onshore and offshore, the safety implications continue

to rise.

when there is a skills gap.your numbers

How to hit

1 source: Hays oil and gas salary guide 2012

As operations move further offshore, the potential risks inherent in contracting

inexperienced or less knowledgeable staff are compounded. technology raises

the bar for remote operations, but it’s imperative that the staff engaged to do

the work have a deep understanding of the processes required.

With the right people, subsea production facilities can cost up to 50 percent

less to operate than surface platforms, due to reductions in topside staff and

supplies required. And by moving production to the seabed and decreasing

the amount of pressure otherwise needed by surface platforms to extract

resources, oil and gas companies can recover up to 20 percent more from

producing fields.

Offshore implications.

Hit ting your numbers in Oil and Gas

www.oilandgas.rockwellautomation.com/demand

less to operatethan surface platforms.

50%

The implications for the boost in recovery combined with the reduction in capital investment are huge.

Companies can explore smaller, deeper fields that might not have been economically viable previously. They can mine reserves located in the remotest arctic environments not conducive to a topside production platform. At the same time, they can help improve safety by reducing the number of personnel needed to operate the production facilities.

As subject matter expertise retires, substantial industry knowledge is potentially lost, too. The concept of placing

experts in regionally-located hubs is gaining pace. Their expertise can then be shared across many assets using internet-based tools and secure cloud computing to manage the data presented.

As the industry strives to balance demand, supply and costs, strategies such as these help oil and gas companies to serve the world’s energy needs using a combination of advanced technologies and innovative thinking.

onshore, unconventional plays are further

testament to the changing face of the

industry. At the same time, international oil

companies from countries including China,

Japan and Australia are investing in

development of these unconventional plays

to pick up knowledge they can apply in

undeveloped shale plays in their own

countries. The seven shale plays that

account for over $54 billion in oilfield

services expenditures in 2012 will make a

major contribution to north America

potentially becoming a net oil exporter

around 2030.3

Changes

onshore.Hit ting your numbers in Oil and Gas

3 source: oil and gas Financial Journal, August 1, 2012. www.ogfj.com

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onshore.

In this scenario, automation can play a major role in bringing together various systems located over a large geographic area. This allows operators to help reduce total lifecycle costs when realizing the potential of new resources by having one, consistent network environment in place that supports optimization of efficiencies and production.

The new technologies open up new avenues for the oil and gas workforce, but also, indirectly, through the need for support services, pipeline companies, transport operators and infrastructure developers.

new technologies.

Making the most of

Hit ting your numbers in Oil and Gas

to meet increasing demand, the industry needs to access a

supply of suitably-qualified professionals to help to take

advantage of the new technologies available today.

Cost-effective alternatives to hard-wired systems including

ethernet/iP continue to emerge, helping to address staffing

pressures and the increasing speed of development,

operations and production required in the commercial

world today.

as the world’s leading industrial network protocol, Ethernet/iP helps enable facility-wide control and data visibility across applications. By providing actionable information, it enables people to make better business decisions. It offers the flexibility to be able to react to market conditions and other variables, and facilitates communication from wellhead all the way through to the enterprise level.

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new technologies.

As the industry evolves, the key is finding the balance between staff who know the industry and staff who know how to make the most of new technologies. Younger operators lacking the skills to operate legacy dCs systems will be more comfortable working with advanced automation technologies and so helping to take advantage of the productivity and performance benefits available.

www.oilandgas.rockwellautomation.com/critical

ongoing staff shortages make it difficult to

capitalize on the opportunities afforded by us

shale development and production, and

Canadian oil sands activity – the demand for

manpower outstrips supply. senior, skilled,

highly experienced staff are retiring and there’s

not enough ‘new blood’ coming through. new,

automated technologies, however, help to

reduce the need for staff numbers, and suit a

younger generation more comfortable with

the digital solutions available.

north americaStaffing environment:

refinery safety is an ongoing issue in this region, with high accident numbers reflecting

the fact that , in some cases, staff are not knowledgeable or experienced enough for the

work that needs to be done. Putting integrated information, control, power and safety

solutions in place help to meet increased consumer demand and capitalize on the

resources available.

latin americaStaffing environment:

Hit ting your numbers in Oil and Gas

Alberta, Canada is projecting a shortfall of 114,000 workers by 2021, when oil sands production is set to be three million barrels a day.4

Shale gas activity in Argentina and Brazil’s offshore industry will increase the need for skilled staff in these regions.6

An industry average wage, twice the uK national average at £64,0007

highlights the artificial salary inflation that comes with staff shortages

in the oil and gas industry in the north sea and across Western europe.

these shortages could undermine the region’s ability to maximize returns

in development of its unconventional gas and oil production outputs.

Activity and staff levels continue to increase in the middle east, while

in eastern europe opportunities for shale gas development are

being explored.

Europe, Middle East & africaStaffing environment:

Oil and gas companies in this region have increased pay by between 5 and 12 percent over the past two years, where the average increase is just 1.5 percent.7

the region faces a ‘labor crunch’ due to staff

and skills shortages. As markets expand, the

insufficient supply of people prevents optimal

performance. A base of graduate talent is available

and has the academic knowledge, but falls short

on practical industry awareness and expertise.

asia PacificStaffing environment:

4 source: Alberta oil energy sector insight, August 2012

5 source: global oil & gas Workforce survey, conducted by oilcareers.com and Air energi sept 2012

6 source: global oil & gas Workforce survey, conducted by oilcareers.com and Air energi sept 2012

7 source: Aberdeen and grampian Chamber of Commerce survey, november 2012

In APAC, where investments are about 40 percent higher than in the North Sea, the continuing demand is strong for engineering and technical expertise needed for the refinery, chemical and power processing areas along with support for projects in Australia.5

123456

The oil and gas industry in focus.

This is one of six Rockwell automation guides focusing on key industry challenges.

For more details about the comprehensive solutions we offer in oil and gas, visit www.oilandgas.rockwellautomation.com

The future of world energy: adapting to meet the challenges. www.oilandgas.rockwellautomation.com/challenges

4 ways to maximize assets. Ensuring operational excellence.www.oilandgas.rockwellautomation.com/demand

4 ways to reduce operational costs. Balancing operations and maintaining profitability.www.oilandgas.rockwellautomation.com/minimize

How to hit your numbers in critical control and safety. The costs and complexities of industry safety issues.www.oilandgas.rockwellautomation.com/critical

How to hit your numbers when there is a skills gap. Overcoming staff shortages worldwide.www.oilandgas.rockwellautomation.com/skills

How to hit your numbers in operations management. Optimizing production and reducing costs.www.oilandgas.rockwellautomation.com/maximize