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Ownership, when it comes to nature’s precious resources, has the potential to be the source of some terrifying commercial and human conflict. Oil and gas resources are perhaps the most significant after clean water because they power the economies of the industrialised and, just as importantly, the industrialising world. Depending on the view you take, oil and gas are responsible for one major war this decade. It’s only when the black stuff starts to become scarce, however, that we will understand its true destructive potential.
That might be your view, at least, if you happen to live in a part of the world comparatively forsaken by Mother Nature’s bounty. If, on the other hand, you live in parts of Africa, the Middle East, South America or Russia, you might think the future looks rosy (providing you are not living in crippling poverty through oil corruption – but that’s another story).
In terms of energy security the future probably does look quite bright for these parts of the world. When oil and gas resources take their inevitable path towards exhaustion, energy-hungry nations such as the US, China, India and the UK will be at the bottom of the waiting list, while the energy-rich will supply their internal market for competitive advantage.
Still, the consensus is that oil and gas reserves will run out in the near future.
So when we look back in 200 years’ time, what will be the legacy of oil and gas left to the nations “fortunate” enough to have lots of it today?
My optimistic view is that it could leave them a generation of talented engineers, technicians and artisans; and that they will be the people to solve the looming energy crisis. The reason for my optimism? Increasingly, hydrocarbon-rich governments and their national oil and gas companies are dictating the terms under which the international (mainly European and US) energy giants access oil and gas reserves. There is no better example of this than Venezuela, in the news recently. In every case, these governments are insisting that foreign oil and gas companies employ local staff, sometimes insisting on quotas of more than 90 per cent local staff being employed on new projects. To secure the business, international companies must sign up to this undertaking, which, if they deliver, brings engineering and technical training to thousands of people who may never have seen an oil installation, let alone operated one. It also creates huge opportunities for universities, technical colleges and training firms involved in delivering skills on behalf of companies.
The idea that natural resources can translate into a skilled workforce (and a skilled workforce means that 100 per cent of the value of oil and gas production stays in your country) is certainly influencing oil-rich governments today. Politicians recognise that they can secure far more value, and international influence, from oil and gas if their own people are equipped to exploit it.
This applies as much to exploration and production as it does to refining and petrochemicals. Access to more of the value chain is one strong reason why we are seeing new refineries being built at a staggering rate in the Middle East. The closer these countries get to selling the final product, the more value they secure.
So while technology still has a role to play in the global oil and gas business, partnering with universities, colleges and training providers to build a capable, local workforce is how international oil and gas companies must differentiate themselves as they struggle to secure the goodwill of the owners of the world’s oil and gas. We’d just better hope that those new engineers and technicians decide to turn their attention to alternative energy sources before it’s too late.
Philip Andrews is the chief executive of Getenergy, which works to create a marketplace for education and training in the oil and gas sector
Getenergy Event
“State of the Art in Sustainable Workforce Development”
March 26-28 Business Design Centre, London N1
This is the fourth global education and training event for the oil and gas sector. It is the only event where oil and gas companies can get together with education and training providers over three days of exhibition, networking events, interactive exchanges and the Getenergy Awards. Book at www.getenergyevent.com
Getenergy awards ... the shortlist
The inaugural Getenergy awards recognise achievement in five areas of importance:
Learning at the core
Shortlisted: NNPC; BG Group Recognises the company that has made the most
significant contribution to its staff learning and development in the past
year.
Mentor/coach of the year
Shortlisted: Musa Rabiu, head of learning for Africa region, Shell Exploration
and Production; Edward Grave, fractionation and separation specialist,
ExxonMobil Upstream Research Company; Emma Bishop, SNS services manager,
Petrofac Denotes the manager who has contributed most to the learning and
development of his or her staff.
Education/training provider of the year
Shortlisted: Northern Alberta Institute of Technology, Canada; the Robert
Gordon University (RGU), Scotland; the University of Petroleum & Energy
Studies (UPES), India To the college, company or university that has
consistently developed and delivered industry-leading programmes.
The rejuvenation award for outstanding progress in local content
Shortlisted: Trinidad and Tobago; Canada; Nigeria For the country that has
made the most progress in achieving a locally employed workforce in its oil
and gas industry.
University partnership 2008
Shortlisted: Atlantic LNG and University of Trinidad and Tobago; BJ Services
and Bellevue University; Petroleum Development Oman and Sultan Qaboos
University To recognise a new partnership between an oil and gas company and
a university or college that shows significant promise.
The ceremony will be at 7.30pm on March 26 at the Landmark hotel, London NW1. www.getenergyawards.com
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