Strategies for the Oil and Gas Talent Crunch

By Jamie Ferguson, VP Business Development, Maxwell Drummond

One of the most talked-about topics in the oil and gas industry today is the ever-present talent crunch. How can it be overcome? Who is responsible for implementing changes and initiatives? It is a topic we as executive search consultants frequently discuss, but, as the industry continues to boom creating an even greater demand for talented and experienced leaders, it is certainly a topic to revisit. Initiatives by both the industry as whole and individual companies must be made to continue attracting and developing talent from entry-level workers to the most senior leadership roles.

The industry must be more proactive in marketing itself to the younger generation. The negative perception so many young people possess about the oil and gas industry could be remedied if the industry better communicated the vast opportunities available to those entering the workforce and countered claims of environmentally unsound practices. Students should also be educated on the investment the made in research and development, the opportunity to work in diverse geographic locations and the challenging technical advances they could be on the forefront of. Partnering with universities may not be enough-young adults should be reached before entering university to plant the idea of the opportunities available early on.

Companies must turn their attention to the talents of international personnel and cultivate “global sourcing” for the health of the industry. Currently, there is a trend in upstream recruitment to create a globally mobile workforce. For example, in India, there is a large market of skilled engineers which North Sea companies can tap in to in order to fill their current engineering needs; companies operating in countries with rich shale plays look to the experience of the US unconventionals workforce to drive their efforts. The creation of an internationally mobile workforce is ideal for the short-term and implementing this strategy into long term talent development and acquisition plans will be crucial in driving future industry growth. Utilizing global talent will unlock business opportunities on an international scale and give companies access to the talent they need to overcome the current deficits.

In addition, it will be critical that companies put a solid strategy in place to steer their organizations through the imminent transitions in corporate leadership and senior management. Succession planning and knowledge transfer are key components to ensure there will not be any gap or shortage of qualified leadership in the industry.

About the author
Jamie Ferguson joined Maxwell Drummond’s Aberdeen team in 2006 to focus on executive search in the energy sector. In 2007 he was promoted to General Manager in Aberdeen and in 2009 Jamie relocated to Houston as Vice President of Maxwell Drummond’s USA and Latin America business.

Maxwell Drummond International is a world leading retained search consultancy offering professional search services to clients in all sectors of the energy and natural resources industries.