3rd Brainstorming session Industry- Academia Interaction

3rd Brainstorming session Industry- Academia Interaction

Workforce Sustainability & Talent Management in India Oil & Gas Upstream Industry

A Study conducted by PETROFEDin association with Knowledge Partner PricewaterhouseCoopers

Deepak Mahurkar, Associate Director, PwCOctober 17, 2008

Contents

Introduction

Approach & Methodology

Key Findings: Demand-Supply Gap Analysis

Recommendations: Stakeholder-wise action steps

4

Globally, for the last several years, Oil & Gas industry has been plagued by shortages.

Shortages in the Oil & Gas Industry

Shortages

Refining Capacity

Talent

Supply of OilCapacity of service &

Supply Cos.

5

Engineering talent squeeze is likely to cause further delay in oil & gas production projects through 2010.

• 400 major projects in the next 5 years

• >55,500 engineering personnel required in 2010

• Engg and Proj Mgt personnel insufficient to meet 2007 upstream project demand

• With an average age of 51 years, over 50% of today’s workforce will retire by 2015 (6% attrition p.a.)

• Lack of experienced staff in the early-stage concept and pre-feasibility work phase expected to delay projects

Global Talent Squeeze

6

Recognizing the talent crunch being experienced by the E&P sector owing to the boom in the oil and gas upstream activity, MoPNG had advised PetroFed to conduct a detailed study and suggest actions.

• The study initially estimated manpower demand based on the projected E&P activity in India over the next

10 years and the findings were presented to MoPNG and its views were noted for finalisation of the report

in particular to include opportunity India may have for bridging global shortage of talent.

• Four scenarios of offering basinal areas for E&P activity were used to project the requirement of trained

manpower in subsequent rounds of NELP bidding .

• Inputs were obtained from leading organizations in the E&P sector (public sector, private sector and the oil

field service companies), MoPNG and educational institutions.

• These were supplemented with PwC’s in-house research and secondary research information available in

the public domain.

• A comparison of manpower demand and supply was used to assess workforce issues.

• The findings of the study were discussed with HR Directors of PSU Oil companies, senior industry officials,

some CEOs and senior officials of Service Companies and their comments were considered to finalise the

study.

• A report on the study was submitted to MoPNG in August 2006.

PetroFed Manpower Study

Contents

Introduction




8

Study covered scenarios of human resources availability in the upstream industry and commented on the potential India has to develop such resources to service local and global needs of trained resources and actions needed.


9

4 stage - activity based workforce projections model was used to project the manpower requirements for the projected E&P activity in India.


• EXPLORATION• EXPLORATORY DRILLING• DEVELOPMENT DRILLING• PRODUCTION

• ACTIVITY BASED SKILL MAPS• EDUCATION • EXPERIENCE• RETIREMENT & ATTRITION

• PRESENCE OF PETROLEUM SYSTEM

• OIL PRICES• RIG AVAILABILITY

• TIMING OF AWARD OF PEL• AREA FOR EXPLORATION• DYNAMIC COMPLETION• SUCCESS RATE OF

ACTIVITIES

Contents

Introduction




11

4 scenarios of acreage release by the GoI were considered.

Key findings: Demand-Supply Gap Analysis

Scenarios -Area awarded for exploration (cumulative)

800,000

1,300,000

1,800,000

2,300,000

2,800,000

2004

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Are

a in

sq.

km Scenario I

Scenario II

Scenario III

Scenario IV

….Addition of 12% area on an annual basis from 2007-10Scenario 1

Addition of variable % of area once every 2 years from 2008-14Scenario 4

Addition of 12% area once every 2 years from 2008-14Scenario 2Addition of 12% area once every 3 years from 2008-17Scenario 3

Source: PetroFed Manpower Study – PwC Analysis

12

India’s Oil & Gas industry is expected to face acute shortage of critical E&P skills in next ten years.

-2000

-1000

0

1000

2000

3000

4000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geologists Logger Driller Tool Pusher Reservoir Engg Geophysicist

Demand-Supply Gap using Scenario 2*


Source: PetroFed Manpower Study * Scenario 2 selected as most likely based on presentation to MoPNG

13

E&P skill-sets take time to be developed. We have to act now to address such an alarming “talent squeeze” situation.


Source: Scenario 2, India - PetroFed Manpower Study

Skill Set Year (of peak demand-

supply gap)

Demand Supply Projected Peak Demand –

Supply Gap

Demand per unit Supply

Geologists 2010 3955 1702 2,253 2.32

Loggers 2017 1289 281 1,008 4.59

Tool Pushers 2017 469 179 290 2.62

Drillers 2017 2329 774 1,555 3.01

Geophysicists 2010 4967 1471 3,496 3.38

Reservoir Engineer 2017 4071 752 3,319 5.41

14

Higher Education

2%

Others (IT, Communic

ations)29%

Oil Industry

Mineral & Mining13%

56%* Of the 400+ Petro-technical students graduating annually only 56% join O&G industry.

At entry level, limited awareness of job opportunities driving students to other industries. >850* critical skills to retire in the next decade.


• Import of skills

• Poaching of mid-career talent (4%

overseas attrition)

• Hiring of Indian talent at entry level

to feed global demand (12% talent

generated went overseas)

*PwC E&P Education Institute Survey 2006

Contents

Introduction




16

A Comprehensive “employment life-cycle planning” approach is required to address India’s E&P talent crunch situation.

• Capacity build up through expansion as well as addition of institutes

• Attract high caliber students into the courses

Education

Entry

Mid-Career

Retirement

• Recruitment strategy to hire best talent• Specialized training to help develop the skills in

the shortest time• Retention programs

• Ensure effective utilization of resource• Career planning and coaching/ mentoring to

maintain talent quality• Retention programs

• Utilizing vast experience base to nurture younger talent through coaching and mentoring ahead of superannuation and post retirement

Recommendations: Stakeholders-wise action steps

17

• Full involvement in Industry-Academia interface

• Enhance infrastructure and curriculum

• Establish feedback and audit mechanism

• Implement attractive programmes to orient students to O&G ind.

• Cater to global opportunities through collaborations, exchange programmes etc.

Industry Academia

Government

• “Go Explore” campaign

• Joint Committee of MoPNG & HRD Ministry to monitor talent requirements

• Budgetary support (OIDB) for new institutes

• Curriculum review of existing institutes

• Financial assistance for infrastructure enhancement

• Manpower planning with Joint Committee

• Industry-Academia interface

• “Go explore” assistance

• Set up mechanisms for knowledge transfer

• Industry sponsorship, scholarship schemes

• Apprenticeship, training opportunities for students

Recommendations: Stakeholders-wise action steps

Thank you

19

Demand side projections - Scenarios

88%27679533600002500027500060000NELP 102010

77%24079533600002500027500060000NELP 92009

65%20479533600002500027500060000NELP 82008

54%16879533600002500027500060000NELP 72007

% areas opened for explorationCUMULATIVETOTALOFFSHOREDEEPWATERON-LANDNELP #YEAR

88%27679533600002500027500060000NELP 102010

77%24079533600002500027500060000NELP 92009

65%20479533600002500027500060000NELP 82008

54%16879533600002500027500060000NELP 72007


88%27679533600002500027500060000NELP 102014

77%24079533600002500027500060000NELP 92012

65%20479533600002500027500060000NELP 82010

54%16879533600002500027500060000NELP 72008


88%27679533600002500027500060000NELP 102014

77%24079533600002500027500060000NELP 92012

65%20479533600002500027500060000NELP 82010

54%16879533600002500027500060000NELP 72008


88%27679533600002500027500060000NELP 102017

77%24079533600002500027500060000NELP 92014

65%20479533600002500027500060000NELP 82011

54%16879533600002500027500060000NELP 72008


88%27679533600002500027500060000NELP 102017

77%24079533600002500027500060000NELP 92014

65%20479533600002500027500060000NELP 82011

54%16879533600002500027500060000NELP 72008


Scenario 1 – Focus on immediate exploration

Scenario 2 – Focus on exploration staggered through the next decade

Scenario 3 – Focus on exploration staggered beyond the next decade

Note: Open Acreage system, if in place, is assumed to generate significant increase to comparable trends as in NELP rounds

77%24079532700001875020625045000NELP 102014

68%21379532700001875020625045000NELP 92012

59%18679532700001875020625045000NELP 82010

51%15979532700001875020625045000NELP 72008


77%24079532700001875020625045000NELP 102014

68%21379532700001875020625045000NELP 92012

59%18679532700001875020625045000NELP 82010

51%15979532700001875020625045000NELP 72008


Scenario 4 – Focus on exploration staggered through the next decade, less area opened for exploration

20

Organization & Work Groupings in the Upstream activity

Exploration Exploration Drilling

Developmental Drilling

Production

Geological

Field Party

Seismic

Field Party

Multi-

Disciplinary

Team

ProcessingMDT

Drilling Crew

Well Crew

MDT

Drilling Crew

Well Crew

Surface Facility

Development

MDT

Production

Geo physicist

Data Processors

Geoinformaticians

Observer

Supervisor

Geologist

Geophysicist

Petrophysicist

Geochemist

Reservoir Eng

Mud Logger

Programmer

MDT DRILLING CREW WELL CREWSEISMIC FIELD PARTY / PROCESSING

Drilling Suptd.

Tool Pusher

Driller

Asst Driller

Derrickman

Roughneck

Crane Operator

Roustabout

Chief Mechanic

Chief Electrician

Welder

Motorman

PRODUCTION

Oil Well Cementer

Acidizers

Perforator operators

Sample-taker

operators

Well pullers

Mining & geological

engineers

Chemical Eng

Mechanical Eng

Electrical Eng

Fire & Safety

Engineer

Corrosion Engineer

Instrumentation Eng

Technicians

Asst Technician

SURFACE FACILITY DEV. CREW

Chemical Eng

Mechanical Eng

Electrical Eng

Production Engg

Civil Engineer

Instrumentation Eng

Technicians

Asst Technician

Geologist

Geophysicist

Driller

Geochemist

Production Eng

Reservoir Eng

Petroleum Eng

Logger

SURFACE CREW


21

Academic/Experience profile of roles in upstream working groups

3

3

3

1

3

5

5

2

4

3

5

4

Year of M

inim

um E

xperien

ce

*with electronics

Electrical, Instrumentation & Control Engineers

Mechanical Engineers

Civil Engineers

Production Engineers

Chemical / Process Engineers

Reservoir Engineer

Drilling Engineers

Programmer

Petrophysicist

Geoinformatics

*Geophysicist

Geologist

Other Engg

Civil Engg

Mechanical Engg

Electrical / Electronics Engg

Chem

ical / Process Engg

Drilling Engg

Petroleum Engg

Chem

istry

Physics

Com

puter Science

Maths

Geophysics

Geology

Academic Profile

Job

3

3

3

1

3

5

5

2

4

3

5

4

Year of M

inim

um E

xperien

ce

*with electronics

Electrical, Instrumentation & Control Engineers

Mechanical Engineers

Civil Engineers

Production Engineers

Chemical / Process Engineers

Reservoir Engineer

Drilling Engineers

Programmer

Petrophysicist

Geoinformatics

*Geophysicist

Geologist

Other Engg

Civil Engg

Mechanical Engg

Electrical / Electronics Engg

Chem

ical / Process Engg

Drilling Engg

Petroleum Engg

Chem

istry

Physics

Com

puter Science

Maths

Geophysics

Geology

Academic Profile

Job

Accepted

Preferred

Accepted

PreferredSource: PwC Analysis based on industry interaction


22

Education and experience criticality of various skills

Source: PwC Analysis based on industry interaction

Profile of Positions

Geophysicist

Geologist

Geochemist

Logger

Reservoir Eng

Driller

Data Processors

Roughnecks

Tool Pusher

Petrophysicist

Petroleum Eng

Production Eng

Programmer

Engineering

Chemical Eng

Roustabouts

Oil Well Cementer

Technicians

Crane Operator

0

1

2

3

4

5

6

7

8

9

1 0

0 1 2 3 4 5 6 7 8 9 1 0

EDUCATION

EX

PE

RIE

NC

E

NO

R

EL

EV

AN

T

EX

PER

IEN

CE

Inst / Civil / Electrical / Fire &Safety / Corrosion EngineersUNSKILLED SPECIALIZED

SKILLS

HIG

H L

EV

EL

S O

F

EX

PER

IEN

CE Profile of Positions

Geophysicist

Geologist

Geochemist

Logger

Reservoir Eng

Driller

Data Processors

Roughnecks

Tool Pusher

Petrophysicist

Petroleum Eng

Production Eng

Programmer

Engineering

Chemical Eng

Roustabouts

Oil Well Cementer

Technicians

Crane Operator

0

1

2

3

4

5

6

7

8

9

1 0

0 1 2 3 4 5 6 7 8 9 1 0

EDUCATION

EX

PE

RIE

NC

E

NO

R

EL

EV

AN

T

EX

PER

IEN

CE

Inst / Civil / Electrical / Fire &Safety / Corrosion EngineersUNSKILLED SPECIALIZED

SKILLS

HIG

H L

EV

EL

S O

F

EX

PER

IEN

CE


23

Demand side projections - Scenarios for critical skills with high experience M

AN

POW

ER R

EQU

IREM

ENTS

YEARS

2008-2014 - Scenario 2

2008-2017 - Scenario 3 2008-2014 - Scenario 4

2007-2010 - Scenario 1

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geophysicist

Geologist

Reservoir Engr

Driller

Logger

Geochemist

Tool Pusher

Drilling Suptd.

Petrophysicist

0

1000

2000

3000

4000

5000

6000

7000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geophysicist

Geologist

Reservoir Engr

Driller

Logger

Geochemist

Tool Pusher

Drilling Suptd.

Petrophysicist

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geophysicist

Geologist

Reservoir Engr

Driller

Logger

Geochemist

Tool Pusher

Drilling Suptd.

Petrophysicist

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Geophysicist

Geologist

Reservoir Engr

Driller

Logger

Geochemist

Tool Pusher

Drilling Suptd.

Petrophysicist

24

Demand side projections - Scenarios for skills requiring low/medium education with high experience M

AN

POW

ER R

EQU

IREM

ENTS

YEARS

2008-2014 - Scenario 2


2007-2010 - Scenario 1

0

1000

2000

3000

4000

5000

6000

7000

8000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Roustabouts

Roughnecks

Asst Driller

Oil Well Cementer

Observers

Draftsmen

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Roustabouts

Roughnecks

Asst Driller

Oil Well Cementer

Observers

Draftsmen

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Roustabouts

Roughnecks

Asst Driller

Oil Well Cementer

Observers

Draftsmen

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Roustabouts

Roughnecks

Asst Driller

Oil Well Cementer

Observers

Draftsmen

25

Demand side projections - Scenarios for skills requiring general education with low experience M

AN

POW

ER

RE

QU

IRE

ME

NT

S

YEARS

2008-2014 - Scenario 2


2007-2010 - Scenario 1

0

1000

2000

3000

4000

5000

6000

7000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Engr

Programmer

Data Processors

Electrical Engr

Mechanical Engr

Chemical Engr

Instrumentation Engr

Civil Engr

Corrosion Engineer

Fire & Safety Engineer

Structural Engr

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Engr

Programmer

Data Processors

Electrical Engr

Mechanical Engr

Chemical Engr


Civil Engr

Corrosion Engineer


Structural Engr

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Engr

Programmer

Data Processors

Electrical Engr

Mechanical Engr

Chemical Engr


Civil Engr

Corrosion Engineer


Structural Engr

0

1000

2000

3000

4000

5000

6000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Production Engr

Programmer

Data Processors

Electrical Engr

Mechanical Engr

Chemical Engr


Civil Engr

Corrosion Engineer


Structural Engr

26

Demand side projections - Scenarios for skills requiring low/medium education with moderate level of experience

MA

NP

OW

ER

RE

QU

IRE

ME

NT

S

YEARS

2008-2014 - Scenario 2


2007-2010 - Scenario 1

0

5000

10000

15000

20000

25000

30000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Technicians

Crane Operator

Derrickman

Motorman

Chief Electrician

Chief Mechanic

Electrician

Welder

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Technicians

Crane Operator

Derrickman

Motorman

Chief Electrician

Chief Mechanic

Electrician

Welder

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Technicians

Crane Operator

Derrickman

Motorman

Chief Electrician

Chief Mechanic

Electrician

Welder

0

5000

10000

15000

20000

25000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Technicians

Crane Operator

Derrickman

Motorman

Chief Electrician

Chief Mechanic

Electrician

Welder

27

Supply side estimation – Key Stakeholders

Educational Institutes

Industry

GovernmentStudents -future workforce

Public Sector Undertakings

Private Companies

Oil Field Services

MoPNG

MHRD

Governing bodies – AICTE, UGC

28

Supply side estimation

Ministry of Human Resources and Development (MHRD)

Department of Higher Education Department of School Education & Literacy

University & Higher Education, Minorities Education, book promotion & copyrights

Technical Education

Vocational education, distance education& scholarships

Planning

M.Sc GeoInformatics (25)

M.Sc Geology (231)

M.Sc GeoPhysics (148)

M.Sc GeoChemistry

M.Sc Petrophysics

Drilling

Petrochemical (190)

Mechanical (63840)

Petroleum (60)

Others

Source: Numbers in bracket indicates intake for the colleges listed in next slide

The fresh talent pool for the E&P industry is sourced from amongst science graduates, engineers and diploma holders. An overview of our educational set-up viz these streams is provided below:

29

Supply side estimation

Source: Numbers in bracket indicates intake for the colleges listed in next slide

The E&P sector requires specialist skills in the form of technical graduates with specialization in courses related to petroleum, earth-sciences and processes like drilling. The number of institutes offering these courses is limited and has a low intake on an annual basis. The top institutions for sourcing talent educated in E&P related studies and the courses/certifications awarded therein, are listed below:

NAME OF INSTITUTE

COURSES OFFERED

ISM, Dhanbad Chemistry, Computer Science, Mechanical, Drilling, Environment, Petroleum, Applied Geophysics, Petroleum Exploration, Fuel

IT, Roorkee Geology, Geophysics, ChemicalIT, BHU Chemical, EnvironmentAndhra University Chemical, Geo-engineering, Applied Geology, Environment, Geology,

GeophysicsIIT, Mumbai Chemical, Applied Geology, Applied GeophysicsIIT Kharagpur Chemical, Geology, Geophysics, Applied GeologyCochin University Chemical, Environment, Instrumentation, Marine Geology, Marine

Geophysics, Safety & Fire, Kurukshetra University

Geophysics, Environment

Osmania University Chemistry, Geochemistry, Geology, Geophysics, Environment

MIT Pune Petroleum, Petrochem, Jadavpur University Chemical, Energy, Environment, Applied Geology

Kolkata University Instrumentation, Chemical, Petrochemical, Environment, Geology

3rd Brainstorming session Industry- Academia Interaction

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