But problems started appearing in 2014 when the boom triggered a collapse in oil prices to US$50/bbl, and the talent narrative shifted to mass layoffs.2 From July 2014 to June 2016, the industry laid off 200,000 people (figure 1).3 Additionally, the short-cycled nature of shales made hiring extremely cyclical. Mehnert's company is among those working with University of Houston researchers to gauge how the energy workforce is feeling during the pandemic. That mandate must come from the top. ”There’s definitely blood in the water,” said Dan Eberhart, chief executive officer of Denver-based Canary. Workplace: As for workplace safety, OG&C has some ground to cover—its fatality rate is seven times greater than other industries, even though it has been focusing on workplace health and safety.13 While OG&C companies remain focused on making their operations safer and healthier, the pandemic has forced them to reduce their on-site staffing altogether and move the staff to safer locations, including home. Halliburton, one of the world’s largest oilfield services companies, is laying off about 130 employees at its office in Fort Lupton. But that number is expected to fall by another 150 to 200 in the coming months, according to a Wednesday estimate from Houston investment bank Tudor, Pickering, Holt & Co. View in article, BASF, Competition for talent—BASF online report, 2019. “Even before the coronavirus pandemic and the Russia/Saudi crude price war, a number of companies were teetering on the edge of survival.”. “OFS [oilfield service] companies will feel the brunt of this impact,” the firm’s lawyers wrote, adding “many smaller or highly leveraged companies may not be able to hold on.”. has been saved, The future of work in oil, gas and chemicals View in article, Erica Volini et al., A memo to HR: Expand focus and extend influence, Deloitte Insights, May 15, 2020. “Long term $30 per barrel (oil price) will lead to massive consolidations and insolvency,” one survey respondent said. While workers in just about every industry are threatened by the economic slowdown, few are more at risk than those in the oil patch. Jeff Lattea wants to stay in the oil and gas industry. Bonny has over 20 years of experience, with most of it in upstream oil and gas. Email a customized link that shows your highlighted text. Worryingly, the rate of recovery in employment will likely be slower over the next 15–18 months. The next four years will be critical for the services sector, with $32 billion in debt for North American service firms coming due between now and 2024, according to Moody’s Corp. View in article, The International Energy Agency, Oil market report, April 2020. Operational agility is driven by its four levers (portfolio, assets, processes, and commercial). The journey begins with mechanizing operations using hydraulic, pneumatic, or electric control systems and progresses from the physical to the digital realm by sensorizing equipment and transmitting data to a unified network. That’s not just an economic problem, It’s back: Chemical e-commerce tries for an act 2, Strategic imperatives for the refining and chemical sectors, Bolstering trust of employees and investors, Bringing stability to margins and finding new ways to reduce costs, Finding new avenues of scalable and sustainable growth, US Oil, Gas & Chemicals leader | Principal. It reported revenue of $446 million, down 37 percent from $704 million in the first quarter of 2019. View in article, Deloitte Analysis based on data accessed from US Bureau of Labor Statistics. "A lot of this is about learning about how to get through that [initial] hardship," Mehnert said, "but then setting aside a bank, so to speak, of money and resources so that you can look at reskilling, you can look at options.". Copy a customized link that shows your highlighted text. Explore the Oil, gas & chemicals collection, Go straight to smart. View in article, Data from IES National Center for Education Statistics, accessed September 4, 2020. View in article, Collin Eaton, “Drillers go remote as pandemic reshapes oil business,” Wall Street Journal, August 2, 2020. Laid off workers should take an inventory of their skill sets, Spitzmueller said, "and do that in a pretty detailed level for both their technical skills and their non-technical skills.". View in article, Offshore Technology, “How leading oil and gas companies are adopting virtual reality,” January 3, 2020. An analysis of recent job postings by OG&C companies reveals that fast-growing occupations need skills that are different from those needed for slow-growing occupations (figure 10). © 2020 World Oil, © 2020 Gulf Publishing Company LLC. But the layoffs also include 125 jobs cut by fuel distributors Sun Coast Resources in Midland and Sunoco LP in Odessa. View in article, Irina Slav, “Wanted: Oil workers with more tech, less ‘roughneck,’” OilPrice, December 16, 2019. Both companies blamed their layoffs on record low oil prices and coronavirus-related lockdown orders that are destroying demand for their products and services. That's what he did. This talent tapped into new offshore and unconventional reservoirs, developed an integrated transportation network, and fueled the downstream renaissance in the United States. CLICK HERE TO TURN ON NOTIFICATIONS. This website uses cookies to improve your experience. View in article, Shell, “Shell signs innovative $10 billion revolving credit facility,” press release, December 13, 2019. But for that, fundamental changes will be needed across each element of the income statement and balance sheet—from traditional on-balance sheet budgeted expenses to off-balance sheet outsourcing, and even shifting to pay-as-you-go models. Houston, Texas-based fracking services company NCS Multistage Holdings is cutting about 80 employees, or 20% of its workforce, while Canadian firm STEP Energy Services also is shedding more than 150 workers in Texas and Oklahoma due to the “drastic downturn in oil,” according to workforce filings. View in article, Susan Caminiti, “Royal Dutch Shell reskills workers in artificial intelligence as part of huge energy transition,” CNBC, April 3, 2020. On Tuesday, U.S. crude futures were trading around $25.78 a barrel, up from the low of around $20 but still below the cost of production. Simply select text and choose how to share it: The future of work in oil, gas and chemicals The oil and gas industry has gone through booms and busts in the past, but this most recent downturn looks different from the rest. It’s unclear how much relief will result from an agreement struck Sunday by OPEC, Russia and other oil producers to cut production by nearly 10 million barrels of oil a day. Before joining the News 88.7 team she was the Morning Edition Host and a reporter at KUNC in Northern Colorado. The new trend of home-based workers shouldn’t be seen as transitory—as it impacts behavior and may become an expectation in the post-COVID-19 world. Combustion of fuels by the transportation sector (Scope 3 emissions) produces about 80% of full-cycle greenhouse gas (GHG) emissions for the OG&C industry.16 With unprecedented restrictions on travel, transportation-driven fuel demand fell 30% and global GHG emissions 17% in the first half of 2020.17 Now the big question is: Should the industry find comfort in these reduced emissions—and reduced pressure to invest in green businesses—or should it see the drop as a wake-up call to decarbonize their hydrocarbon “work” as the pandemic shines a light on the health and well-being of society. Some might argue that this is what cyclicality looks like, and the industry and employment will both pick up as oil prices recover. DTTL and each of its member firms are legally separate and independent entities. BASF, for example, is deploying social media campaigns focused on sustainability and digital ways of working for its younger workforce and is inviting women students to its campuses to network with women executives and leaders.36 Companies will need to build a new workforce architecture to attract new talent (figure 8).

Shelter On Demand, Cassandra As A Service, Elliot Moss Best Light, Wolves Vs Southampton Results, Rejoice Crossword Clue, Wwe Clash Of Champions 2020 Predictions, Gloria Diaz Son Adopted,