The 'capability crunch' in the oil & gas industry

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Tuesday, November 23, 2010, London, The Geological Society

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Many companies, and their CEOs, have been heard to declare that “people are our most valuable resource” and many an investor, especially in small-to-medium sized entities, has been heard to say “I put my money behind good management teams”.
With this in mind, what do we make of the following facts and anecdotes about people in the oil & gas industry:

1. The petrotechnical population in western Europe and North America is:

a. ageing and as a large number approach early retirement or even normal retirement, we are edging towards what some have referred to as “The Big Crew Change”, and

b. shrunken, as many folk permanently left the industry during the many lay-offs and mergers of the last 20 years, and

c. a diminishing number of good quality graduates are joining the industry.
2. Increasing numbers of high quality graduates are joining the industry from Russia, China, SE Asia etc.; ‘global’ companies, whether Majors or the bigger oil field service companies, are best positioned to access this new source of talent.

3. In the ‘global’ companies “attrition” rates are quite low, reward levels are high. Good petrotechs are in demand and feel more able to say “No thanks!” to postings to the back-of-beyond.

4. There is a lot of interesting work in the world – a lot of oil still to be found, a lot of reserves still to be converted to production, lots of exciting projects! Demand for staff is exceeding supply?

Andy Inglis, Upstream CEO of BP, has described what he refers to as the ‘capability challenge’, pointing to an interesting study by CERA that estimated the overall effect of the above pressures as a potential 10-15% “people deficit” by 2010, compared to the estimated number of staff need to deliver projects.

It seems as though the ‘global’s – the Majors, the bigger Independents, the bigger sevice contractors – have taken a number of steps to adjust to these realities and are not ‘feeling the crunch’…..but then who is? Which companies will find it difficult to attract and retain good people; and therefore be the ones whose projects suffer, who do not get developments completed on time, who drill dry holes through lack of “Know How”?

Investors have become pretty accomplished at figuring out where an ambitious company’s funds are going to come from; a pertinent question for this year might be “What is your capability strategy?”

For our November Forum, we have put together an agenda to help everybody ask the right questions and find the right solutions.

Agenda

9:30 Welcome & Introduction

9:45

Oswald Clint - Senior Analyst - Bernstein Research

Picking Long-Term Exploration Stocks: The importance of people


Dr Clint joined Sanford C. Bernstein in 2004 and was part of the Energy Team with Neil McMahon covering the Global Integrated Oil sector.

Currently he is the Senior Research Analyst covering the European E&P and Russian Oil & Gas sectors. The Bernstein Energy franchise has become well known due to both the provocative commentary on the commodities and oil stocks, as well as the innovative research that forms the core of their frequent publications. Previously, he worked as an accountant and consultant for KPMG covering energy, gas, and chemical sectors. Dr Clint received his PhD in Geophysics from University College London where he specialised in sub-surface rock physics and is also a Chartered Accountant.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.
10:20

Gordon Headley - Chief Human Resources Officer - Tullow Oil

Tullow Oil's approach to building its teams


Tullow Oil
Tullow Oil plc is one of the largest independent oil and gas exploration companies in Europe. The Group has operations in Africa, Europe, South Asia and South America. Tullow is headquartered in London and employs nearly 2000 people world-wide. Current production is ~90,000 barrels of oil equivalent per day (boepd). The company drills tens of exploration, appraisal and development wells annually, included multi-well campaigns in Ghana, Uganda and Kenya, with high exploration success rates.
10:55 Coffee & Tea

11:20

Andrew Lodge - Principal - StrategicFit

How Premier Oil finds the right people


Andrew is now a Principal at StrategicFit and a Non-Executive Director at Egdon Resources.

Previously, he joined Premier Oil plc’s Board as Exploration Director in April 2009 from Hess where he was Vice President, Exploration, responsible for Europe, North Africa, Asia and Australia for nine years. Prior to that, he was Vice President, Exploration, Asset Manager and Group Exploration Advisor for BHP Petroleum, based in London and Australia. Prior to joining BHP Petroleum, Andrew worked for BP as a geophysicist. He has an honours degree in Mining Geology from the University of Wales and a Masters in Applied Geophysics from the University of Leeds. He is a fellow of the Geological Society.

He retired from Premier Oil in June 2015.

StrategicFit
StrategicFit is a strategy consulting firm specialising in the upstream oil and gas industry.

We help companies, licence partnerships and stakeholders make difficult decisions they can be confident in.

Through decision analysis, a collaborative strategy process and sector expertise, we'll give you
a clearer way forward.
11:55

Rob Pinchbeck - - Petrofac

Petrofac - how the company works; what it offers


Petrofac
Petrofac aims to generate sustainable growth in value for its shareholders by leveraging its core competencies, being the ability to engineer, build and operate oil & gas infrastructure, and the ability to create and deliver value-adding investments.
12:30

Roger Clark - Senior Lecturer - Earth Sciences, Leeds University

The flow of geoscience graduates from UK universities


Took a Combined Honours BSc in Earth Sciences and Physics at Leeds, then did a seismology PhD on the upper mantle structure beneath the British Isles, at Leeds and MOD Blacknest. Following this he spent some years developing and applying, with Graham Stuart, new approaches in processing of land seismic data and operating a small consultancy/contracts group working on a large fraction of all UK land exploration. At the same time he has pursued global seismology interests, especially in the monitoring of underground nuclear explosions. In 1988 a UK University group, organised from Leeds, deployed the first modern seismic station in the former USSR allowed to record nuclear explosions at close (less than 1000-2000 km) range, facilitating a major new area of study which will be pivotal in verifying arms control treaties. Further interest (partly in collaboration with the Applied Mathematics Department), are: computation of synthetic seismograms which allow correct representation of small, complex structures which are important in hydrocarbon and coal exploration; and quantitative analyses of reflected wave amplitudes especially their use to determine attenuation, and their variation with angle of incidence.

Earth Sciences, Leeds University
Experts within the School study the Earth from its core to the atmosphere, with expertise ranging from geophysics and surface processes to atmospheric science, climate change and environmental sustainability. Leeds is in fact, one of just a few universities that has brought the complete range of disciplines from geology and geophysics, environmental science, meteorology and climate science, to environmental social science together under one banner. We also have one of the largest research clusters of Earth, environmental and social scientists in the UK and internationally. Our research is organised across four School Institutes and two national research centres. This means we are at the forefront in tackling global issues such as climate change, energy, water and sustainable development.
13:05 Prize Raffle followed by Lunch, more Coffee & Tea

Sponsors of this event

Opus Executive Partners
Opus Executive Partners is a specialist advisory firm serving the energy, mining and natural resources industries.

Opus Executive Partners act as a strategic advisor and provider of Board-level resourcing solutions to national and multi-national companies helping them overcome key business challenges by meeting critical leadership and governance needs.

Whether you are looking for advice, or to fill Board-level (Executive or Non-Executive) or Senior-level Management positions Opus can help you unlock new growth and value across your business.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.

New Eyes Exploration
New Eyes Exploration, founded by David Bamford, explores new ways to discover Oil and Gas.

Registered Delegates

Hugh Ebbutt
Director
A T Kearney
United Kingdom
Adam Marmaras
Event Organiser
Finding Petroleum
United Kingdom
Robin Pinchbeck

Petrofac
Tony Grindrod
Trustee
AAPG Europe
United Kingdom
Richard Hail
MD
FirstEnergy Capital LLP
Temitope Adeyinka
Energy Analyst/Economist
Petroleum Development Consultants
United Kingdom
Anthony Cooke
Business Development Manager
Baker RDS
United Kingdom
NADIA BELABED
Translator - Interpreter (English-French-Arabic)
Freelance Translator-Interpreter (English-Arabic-French)
United Kingdom
David Bamford

Petromall Ltd
Eleonora Zanderigo
Project Leader
BCG
Thomas Graf

Fugro Robertson
John Clure
Managing Director
Phoenix Hydrocarbon Resources Ltd
United Kingdom
OLIVER WHITFIELD

Buried Hill
Lisa Barnes
Marketing Geologist
Fugro Robertson
Alan Seymour
Europe Manager
Pinemont Technologies Inc
Murdo Mackay
Head of HR
Cairn Energy
Clova Bullen
Manager
Gas Strategies
Graham Woodcock
Senior Key Account Manager
Pole Star Space Applications ltd
Gabit Bekakhmetov
Intern
Canamens Energy Limited
George Walker
Consultant
GEOCOM
United Kingdom
Jerry Lunn
Group Information Manager
Premier Oil
United Kingdom
Aidar Amanbayev
aidar.amanbayev@canamens.com
Canamens Energy Limited
Peter Raymant
Director
Geomodelling Services Ltd
United Kingdom
David Lloyd
Partner / MD
Preng & Associates
Chris Gumm
Business Development
CGX
United Kingdom
Andrew Mann
Managing Director-International
Gerad Daniels
United Kingdom
Federico Filippi
Research Associate
Preng & Associates
Lesley Cripps
Sales Manager
Chapman Freeborn AirChartering Ltd
Susan Warhurst
Senior Researcher
Gerard Daniels
RICK MOORE
DIRECTOR
QUAD OPERATIONS
United Kingdom
Richard Smith
Senior Buyer
Chicago Bridge & iron
Alexander Chalke
Partner
Grosvenor Clive & Stokes
United Kingdom
Kes Heffer
Director
Reservoir Dynamics Ltd
United Kingdom
Peter Allen
consultant
consultant
United Kingdom
Paul McCarthy
Manager EMEA
GTS-Geotech
Robert Snashall
Consultant
RGSConsult
United Kingdom
Stephen Hilder
Consultant
Consultant
Mike Simmons
Technology Fellow (Geosciences)
Halliburton/Neftex
United Kingdom
Felicite Robertson

Robertson & Co - Translation & Interpreting
Robert (Bob) Parker
Consultant
Consultant
jerrard winter
HSE director
haztek inetrnational
Robert Waterhouse
Director
Rosha Resources Ltd
United Kingdom
Micky Allen
consultant
consultant
United Kingdom
Alex Matthews
Head of HR
Ikon Science Ltd
Chris Calodoucas

SAIC
Diwin Amarasinghe
Geophysical Specialist
Consultant
United Kingdom
Alexander Voake
Student
Imperial College
Shabbab Khan
Senior Manager
SAP
Dan Kunkle
Director
Count Geophysics
United Kingdom
Mike Ames

Independent
Tanya Pang
Consultant
SBC
Bilal Malik
Masters in Business Administration
Cranfield School of Management
Chris Boulter
Analyst
Infield Systems
Rolf Sohner

Schlumberger
Vikram Chandrashekar
Consultant
Cranfield University School of Management
United Kingdom
Robert Winsloe
Global Business Development Manager
Kestrel IDM
United Kingdom
Neil Ritson
Chairman
Solo Oil
United Kingdom
William Lacon
Partner
Curzon Partnership
United Kingdom
Tom Nigg
Sales Manager
Kongsberg Oil & Gas Technologies
Chris Wheaton
Director
Stifel
United Kingdom
Christopher Larvin
Oil & Gas Researcher
DRS-London
Roger Clark

Leeds University
Andrew Lodge
Principal
Strategic Fit, Egdon Resources
Michael Stoner
Oil & Gas Headhunter
DRS-London
David Dugdale
Analyst
Manulife Asset Management
United Kingdom
Jan Paul van Driel
Partner
StrategicFit
United Kingdom
Catherine Xu
Student
Durham University
United Kingdom
Azzurra Cillari
Geologist
Middlesex University
United Kingdom
Paul Rosier
Strategic Development Director - Xodus Group
Subsea 7
United Kingdom
Julian Dawson
MD
Durler Consulting
Nigel Bradburn
Managing Partner
NBS Ltd
United Kingdom
James Harding
MD
TEC Group
Geoffrey Turner
VP Industry Alliances
Eira Ltd
United Kingdom
Ed Evans
MD
NDB Ltd
United Kingdom
Robert Cernik
Professor
The University of Manchester
Sam Botterill
Carbon Capture and Storage Technical Manager
Energy Institute
United Kingdom
Helen Turnell
Principal Consultant
NR Global Consulting Ltd
United Kingdom
Andy Cooper
Sales Director
thyssenkrupp
United Kingdom
Tony Wood
CEO
Ensights Limited
United Kingdom
Andrew Wells
Director
One Point Three Limited
Paul D 'Arcy
Director, Sub-Surface
TNW Group
United Kingdom
Martin Riddle
Technical Manager
Envoi
United Kingdom
Elizabeth Lloyd

OPC Ltd
Gordon Headley

Tullow Oil
Sohabe Richyal
Reservoir Engineer
ERC Equipoise Ltd
United Kingdom
Oxana Bristowe
Partner
Opus Executive Partners
United Kingdom
David Steen
Director
UOP NV
ivar Schroder
explorationist
euroscan exploration
Adam Waterhouse
Director of Research
Opus Executive Partners
United Kingdom
Richard Schembri
Recruitment Director
Upstream Technical Consultants
Glenn Nevill
Principal
fcp Architects & Interior Designers
United Kingdom
Danny van Schie
Director
Pacific Oil Ltd
Bryn Williams

williams
Karl Jeffery
Editor
Finding Petroleum
United Kingdom