G&G personnel shortage forecast (November 1997)

Despite Industry wide downsizing, and efficiency gains, booming business in the E&P sector is creating headaches for HR departments particularly in the revitalized service sector.

The boom and bust cyclical nature of the oil business is yet again leading towards another mismatch between forecast industry requirements in the next few years and current levels of graduation and student intake in earth science departments world-wide. A shortfall of up to 4 times demand over supply has been postulated by industry observers. Some innovative thinkers have are linking this shortfall with the new asset team based approach to conclude that G&G asset teams may act like mercenaries, or football stars in the near future, with even a new profession, that of a G&G professional and asset team agent negotiating the best deal for the new superstars. We will not pretend that for individual G&G’s this isn’t some of the best news to hit the upstream for a decade. On the corporate level however two necessary actions are clearly requires, first hike the payroll budget appropriately to cater for the agent’s fees and new major league salaries, second, ensure that service providers really have the resources they claim – otherwise dealing with E&P services contractor may end up like trying to get the builder to finish off the construction work on your new house.

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