The Oil Boom of the 70’s saw a flurry of oil and gas exploration and production activity in the Middle East. Since there was a dearth of skilled manpower to sustain the fast growth in the region, international and national oil companies turned to experienced staff from overseas to make up for the talent shortage in the region. After 40 years of operation, the situation hasn’t changed much. Though there has been massive growth in the work force, the percentage of expatriates remains the same.
All was okay until recently. There has been an increase in violence directed at expatriates in Saudi Arabia. Meanwhile local unemployment has been growing; Arthur Little’s report released this week highlights how this problem has been growing in the region. Yemen’s unemployment rate is 36%, Saudi Arabia’s is creeping up to 14%.
Finally the cost of expats, typically 2-5 times higher than locals, is also more difficult for NOCs to bear. With the populace seeking to “share the wealth” (eg, the agitations in the Niger delta) governments are interested in greater knowledge transfer, upskilling and general hiring of local talent. The Dept. of Petroleum Resources, Nigeria has recently issued a directive to oil and gas companies to hire local talents instead of expatriates. Similar guidelines are already being provided by licensing and governing bodies in growth regions such as Libya and Iraq.
Instead of viewing such directives as a handicap, International oil companies should make most of the situation to cement their relationships with national governing bodies, while NOCs can build up their image as national champions; giving practical solutions for their country’s expatriates dependence in the future. National oil companies’ aspiration to play a major role in the international energy market is very closely related to building local capability. As they venture into other countries, they will need the expertise to manage their growing international operations.
There is a financial imperative to this calculus too. Block awards and renewals are increasingly tied contractually to local workforce development. IOCs also worry about the approximate 50% of the current expatriate workforce that will retire by the next decade. There is no time like now to build a local workforce that will not only deliver the project at hand but may also be a springboard for regional expansion.
Showing posts with label Research. Show all posts
Showing posts with label Research. Show all posts
Friday, December 12, 2008
Wednesday, October 15, 2008
Engineering Students: Career aspirations, expectations & needs
As a part of our campus outreach program, we have been interacting with students from various engineering colleges all across India. On of our primary objectives has been to understand the mindsets of young graduating engineering students’ vis-à-vis their career aspirations, expectations and needs. We are in the process of compiling the findings and implications from a very extensively commissioned ethnographic research and we hope to share it with you soon.
Meanwhile, i would like to dwell upon a few very interesting observations and revelations that came out in the process.
One very heartening trend we noticed is a strong 'anti-IT' sentiment that is brewing among most students. I could never fathom how and why half my mates from regular engineering disciplines ended up with a software company! Perhaps the economic recession and saturation in the IT sector are accountable for this change. But most students we spoke to were pretty uncluttered in their minds - they didn't want to pursue a career where their core academic expertise had nothing to contribute.
Students today take a much more proactive role in planning their careers. The Internet epitomizes information for them and they are adept at using it for academic and professionals reasons too. They have increased awareness of career choices coupled with better exposure and understanding of most industries. They consequently seek information that will help them make more informed career choices. However the Energy industry still seems to be in an information black hole - they encounter only a few sources on career related information and none of them is detailed and credible enough.
Another finding of the research was the emphasis students placed on maintaining an equitable work-life balance, even though they haven’t entered the workforce yet! Money is important, but they also feel the need for quality time to actualize themselves. Students also rate work satisfaction as more important than remuneration packages and are keen on seeking out challenging work environments and getting to a personal sense of fulfillment.
To be continued...
Meanwhile, i would like to dwell upon a few very interesting observations and revelations that came out in the process.
One very heartening trend we noticed is a strong 'anti-IT' sentiment that is brewing among most students. I could never fathom how and why half my mates from regular engineering disciplines ended up with a software company! Perhaps the economic recession and saturation in the IT sector are accountable for this change. But most students we spoke to were pretty uncluttered in their minds - they didn't want to pursue a career where their core academic expertise had nothing to contribute.
Students today take a much more proactive role in planning their careers. The Internet epitomizes information for them and they are adept at using it for academic and professionals reasons too. They have increased awareness of career choices coupled with better exposure and understanding of most industries. They consequently seek information that will help them make more informed career choices. However the Energy industry still seems to be in an information black hole - they encounter only a few sources on career related information and none of them is detailed and credible enough.
Another finding of the research was the emphasis students placed on maintaining an equitable work-life balance, even though they haven’t entered the workforce yet! Money is important, but they also feel the need for quality time to actualize themselves. Students also rate work satisfaction as more important than remuneration packages and are keen on seeking out challenging work environments and getting to a personal sense of fulfillment.
To be continued...
Monday, October 6, 2008
Climate-Change Management: Managing the Environment
The world is gradually moving from fossil fuel to greener substitutes. The western European countries’ governments especially are spending millions of Euros on alternative power source. However, one can not deny the need of fossil fuel to keep the world moving on. Whether we like it or not, Oil and Gas are the still the basic source for all our primary energy needs – 65% to be precise.
Even though developed countries are looking for alternative, renewable energy, it will be unfair to expect the same from the developing countries to follow suit. Growing economies like China and India have rapidly increased their fuel consumption, resulting in even higher demands. The technology and reliability of renewable energy use on a widespread commercial basis are not yet established nor are expected to be for several decades. Exorbitant cost is another major factor.
The best bet in view of the environmental effects like Global Warming, is that we should be more responsible towards the nature before we disturb its fine balance. This new sense of responsibility has given rise to academic fields like Climate Change Management and allied jobs in the Oil and Gas sector like Environmental Engineer, Environmental Geologist and Environmental Scientist for Petroleum etc.
Presently, a large portion of money is being pumped into the climate-change management studies is flowing from government sponsored grants apart from corporate or academic Research & Development. The U.S. Global Change Research Program has invested almost $20 billion in the areas of climate change and global change research. As we speak, more and more corporations are jumping into the foray to get access to specialists who can help them anticipate and mitigate the business impact of climate change.
The field is relatively new – not just as a course of study, but also as a career path. However, one can find many related environmental services jobs, drawn from diverse disciplines such as meteorology, geology and engineering. Companies are in a lookout for environmentally-savvy managers who can deliver energy efficiency, low carbon emission, smart buildings as well as sustainable business practices. Many of these corporations are willing to pay a premium to get out in front of the macro trend. Most of the current entry-level jobs demands academic qualifications like a bachelor’s degree in engineering or environmental fields or even a science-related graduate degree. If you can mix environmental management with a business degree, there is a lot of scope.
If you’re prospecting for work, bear in mind that there’s no environmental job gold rush yet but if you are the type to plan ahead, this is a career path destined for important things.
Even though developed countries are looking for alternative, renewable energy, it will be unfair to expect the same from the developing countries to follow suit. Growing economies like China and India have rapidly increased their fuel consumption, resulting in even higher demands. The technology and reliability of renewable energy use on a widespread commercial basis are not yet established nor are expected to be for several decades. Exorbitant cost is another major factor.
The best bet in view of the environmental effects like Global Warming, is that we should be more responsible towards the nature before we disturb its fine balance. This new sense of responsibility has given rise to academic fields like Climate Change Management and allied jobs in the Oil and Gas sector like Environmental Engineer, Environmental Geologist and Environmental Scientist for Petroleum etc.
Presently, a large portion of money is being pumped into the climate-change management studies is flowing from government sponsored grants apart from corporate or academic Research & Development. The U.S. Global Change Research Program has invested almost $20 billion in the areas of climate change and global change research. As we speak, more and more corporations are jumping into the foray to get access to specialists who can help them anticipate and mitigate the business impact of climate change.
The field is relatively new – not just as a course of study, but also as a career path. However, one can find many related environmental services jobs, drawn from diverse disciplines such as meteorology, geology and engineering. Companies are in a lookout for environmentally-savvy managers who can deliver energy efficiency, low carbon emission, smart buildings as well as sustainable business practices. Many of these corporations are willing to pay a premium to get out in front of the macro trend. Most of the current entry-level jobs demands academic qualifications like a bachelor’s degree in engineering or environmental fields or even a science-related graduate degree. If you can mix environmental management with a business degree, there is a lot of scope.
If you’re prospecting for work, bear in mind that there’s no environmental job gold rush yet but if you are the type to plan ahead, this is a career path destined for important things.
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