Careers In Oil & Gas

Never Shy away from a ChallengeA recent survey carried out by consultancy

Accenture says that despite concerns about a challenging job market, just

17% of students will compromise their job requirements – and 75% say a key requirement is interesting and challenging work. Peter Cheese, Managing Director of Accenture’s Talent and Organization Performance, agrees, “Generation Y — those born after 1980, are entering the workforce with strong values and demands that employers haven’t had to address with previous generations,” Peter adds; “To be relevant to these job seekers, employers must find ways to satisfy their needs for balance, fun, mentoring and opportunities to grow and be challenged.”

So how do large organisations ensure their graduate recruits can live up to the challenges faced in a real life business environment? No longer satisfied with the hurdles of an assessment day, companies are coming up with new schemes to place graduates in real life business situations - notwithstanding the oil and gas industry.

Shell’s Gourami Business Challenge is one such scheme. It takes a selection of promising students and tasks them with running Shell businesses in a fictional country in order to assess their business and interpersonal skills. Participants who demonstrate evidence of the qualities Shell is looking for, can receive an offer of a full-time position upon graduation. Last year, the project attracted hundreds of graduate applicants from across Europe and provided the participants with a real insight into Shell’s international organisation. “Gourami

offers what no other university course, interview, team challenge or business opportunity does. The chance to interact with students from all over the world as well as the coaches, director and assessors was a unique learning and development experience”, said one participant.

Walbert Schulpen, a process engineer who started his career with the company and is currently based in London, is a coach on the Gourami challenge. He agrees with the students’ views of the benefits of the scheme. “The students taking part in Gourami are met by a huge challenge and as coach you help them with technical advice and tips on how to run an efficient business. The most valuable part of my role as a coach is that at the beginning of the challenge, most of the students have little knowledge of the energy industry in general. During the case you can really see them grow and develop technical and business skills. At the end of the week, you can see them interacting with the Shell employees accompanying them as colleagues themselves.”

Fiona Hall is one such graduate. Hired by Shell after taking part in the challenge, she now works as a Commercial Advisor in the Gas and Power business. For her, Gourami was the starting point before joining Shell, initially on a challenging first assignment within the team that operates as an internal management consultancy.

“The Gourami experience was the reason I chose Shell; prior to this I had no exposure to the energy industry or Shell. The five days on Gourami exposed me to a dynamic world where technical and commercial challenges combine to impact business decisions but also how the world meets key future challenges such as energy security and supply.

Participating in Gourami provided the opportunity to work with recent Shell joiners and subsequently gave me a valuable insight into life at Shell. This helped me gain a much better perspective on how and why Shell provides jobs with real responsibility from day one. This was definitely something I was looking for, the opportunity to contribute to the company from the start of my time there.”

Today’s economic climaTe is noT deTerring asPiring graduaTes From Their ideal jobs or a desire For an exciTing role

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Careers In Oil & Gas

No longer satisfied with the hurdles of an assessment day, companies are coming up with new schemes to place graduates in real life business situations

Securing a skilled and competent workforce is vital to the future health of the UK oil and gas industry.

OPITO – The Oil & Gas Academy is an independent industry-funded and employer-led organisation committed to developing the workforce capability both now and in the years to come.

Chief executive David Doig said: “At a grassroots level, the Academy is working with education and academia to encourage a greater uptake of mathematics, science and engineering subjects. We want to see the inclusion of

practical, relevant industry-based learning into the curriculum to help enthuse a whole new generation about what the industry can offer .”

“Our aim is not only to increase the number of applications to courses that support the core activities of exploration and production but to ensure qualifications are developed to meet specific industry needs and tailored to be fully relevant to what is an increasingly complex and technologically advanced industry.”

Through initiatives including the successful Modern Apprenticeship programme, Petroleum Open Learning Courses where people can

upgrade their existing skills sets and the online web portal www.oilandgas4u.com which outlines the lifestyle and range of careers available, the Academy is providing easy access routes into the industry for people who may never have considered it before.

“We work with training providers, government and trade bodies as well as enterprise agencies and authorities to develop the people and processes this vibrant industry needs to meet the world’s energy requirements and demands both now and in the future.” For more information visit www.opito.com

WiTh The equivalenT oF jusT over 36 billion barrels oF oil Produced To daTe and The PoTenTial For aT leasT 25 billion sTill To come, WiTh good managemenT The norTh sea is exPecTed To conTinue Producing For anoTher 30 To 40 years.

Securing the Next Generation

If you are looking for a humdrum 9.00-5.00 job with a set routine, and minimum rewards, stop reading this article instantly,

it’s clearly not aimed at you! I would like to tell you about careers in the

exciting, fast-paced, forward-looking marine contracting industry where the challenges - and the rewards - are all beyond the ordinary.

You find a great range of roles available, and a constant global demand for new entrants, with some of the best training and development packages around, and an advanced approach to safety and environmental protection. At IMCA, the trade association representing over 500 offshore, marine and underwater engineering contracting companies in over 50 countries, we feel strongly about the promotion of challenging careers within our $20 billion p.a. sector of the

offshore industry and have a website dedicated to marine contracting careers at www.imca-int.com/careers.

A rapidly expanding industryBack to basics. What does marine contracting

cover? It is a vital part of the offshore industry responsible for construction work on major oil and gas field developments globally, as well as undertaking specific contract work for field improvements and extensions. Those working in the industry with skills in engineering, science or mathematics will find free rein across the design, planning, construction, operation and maintenance of complex, high-tech equipment ranging from tiny sensors to giant cranes. No matter what specialism or discipline career ‘hunters’ bring with them, they’ll soon discover

unexpected pathways and be able to develop their analytical, numerical, interpersonal, interdisciplinary and supervisory skills too.

Sophisticated vessels are vital for the safe and efficient support of underwater and surface construction, and over $17 billion-worth of new vessels are currently in yards or in planning and engineering phases. In a relatively short time some 50 new marine construction vessels and 600 offshore support vessels will be in service around the world; to say nothing of 40 floating drilling rigs, 100 new work class ROVs; ten new portable or modular saturation diving systems; and a whole new generation of dredgers and seismic vessels.

The top-of-the-range installation vessels will be fitted with cranes of 3000t-5000t capacity, whilst the top-of-the-range pipelay vessels will have up to 60” diameter pipe handling capacity. More heavy lift transport ships are also being added to the fleet, and these, plus some of the offshore support vessels may be used for offshore construction projects. The offshore fleet is about to become physically

larger (in terms of numbers and size), and more sophisticated, with the majority featuring dynamic positioning (DP) and state-of-the-art control systems. Many vessels will have the scope to fit and operate cranes, ROVs, diving systems and reels for pipelines, umbilicals and cables.

What the industry needs now is skilled people at every level; and that is why the IMCA careers website has been set up to explain all the options available.

Step-by-step adviceThe basic facts about specialist careers in the

industry; mini-case histories featuring people actually doing the jobs and the steps they took to get where they are; detailed articles by people who feel passionate about their chosen speciality; and a ‘next steps’ section all feature on the website.

The facts section does just what is says on that proverbial tin. You get a broad picture as you open up the section with brief paragraphs looking at the opportunities in construction; for engineers, divers, life support technicians, those eager to work with remotely operated vehicles, or to serve as officers or crew aboard support vessel.

Then you can delve deeper and get real detail about the very varied careers on offer under the broad heading of “marine contracting”. You can click on any of the following: data processor; deck/engineering officer; diver; DP (dynamic positioning) operator; geophysicist; life support technician; offshore engineer; offshore surveyor; project manager; ROV (remotely operated vehicle) pilot/technician; survey engineer/technician; or technician. You will discover more about the ultimate jobs on offer; about education and qualification requirements; what skills and training are required; medical fitness requirements; working conditions and prospects; and how to find out more.

In the real stories section you can pick one of the roles on offer – data processor; diver/supervisor; geophysicist; offshore surveyor; survey engineer (more will be added as the site continues to develop and evolve); and you can read a real life account of what it is like to work in that particular specialist area.

Under see more you will find some in depth features where those with particular passions (dynamic positioning; lifting; materials; offshore survey; and ROVs, with diving coming soon) share their feelings about their chosen area of specialisation.

Last but not least, take a look at “next steps”. Then opt for make the move, the section that helps people understand the logical steps from electrical, electronic, mechanical or hydraulic engineering; civil engineering; marine engineering; structural engineering; and naval architecture into marine contracting and shows how they could fit in.

And, highly importantly, in the “next steps” section there are links to companies where there are recruitment opportunities – these can be sorted by types of career option, and geographically.

This is an industry crying out for skilled personnel. Open your horizons, spend time browsing www.imca-int.com/careers; make a vow today that a humdrum job is not for you; and set the wheels in motion to join the rapidly expanding and rewarding marine contracting industry!

Open Your Horizons -Challenging Careers In Offshore Contracting

hugh Williams, chieF execuTive oF The inTernaTional marine conTracTors associaTion (imca) shares his ThoughTs on a career in marine conTracTing

What the industry needs now is skilled people at every level; and that is why the IMCA careers website has been set up to explain all the options available.

schlumberger is The World’s leading suPPlier oF Technology, ProjecT managemenT, and inFormaTion soluTions To The oil and gas indusTry

Knowledge, technical innovation and teamwork are at the centre of who we are. For more than 80 years, we have focused on leveraging these assets to deliver solutions that improve customer performanceToday, our real-time technology services and solutions

enable customers to translate acquired data into useful information, then transform this information into knowledge for improved decision making-anytime, anywhere. Harnessing information technology in this way offers enormous opportunities to enhance efficiency and productivity. This is a quantum leap from providing traditional ‘just-in-case’ information to delivering ‘just-in-time’ knowledge that meets the changing needs of our customers. International teamwork Reflecting our belief that diversity spurs creativity, collaboration, and understanding of customers’ needs, we employ over 80,000 people, covering more than 140 nationalities working in approximately 80 countries. Our employees are committed to working with our customers to create the highest level of added value. Knowledge communities and special interest groups within our organization enable teamwork and knowledge sharing unencumbered by geographical boundaries. Technology innovation With 23 research and engineering facilities worldwide, we place strong emphasis on developing innovative technology that adds value for our customers. In 2007, we invested $728 million in R&D.

For further information, visit www.slb.com/careers

PublISher bradley Scheffer • [email protected] CreATIve dIreCTor dan Angel • [email protected] ProduCTIon MAnAger nikki dudley • [email protected] ProjeCT MAnAger Shola Adeniran • [email protected]

CIO&G is unable to consider unsolicited material for publication, cannot return it if submitted and accepts no liability for loss or damage. CIO&G is fully protected by copyright, reproduction without permission is strictly forbidden. The publisher, editor and authors accept no responsibility in respect of any products, goods or services that may be advertised or

referred to in this issue or for any errors, omissions, misstatements or mistakes in any such advertisements or references.

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name: david Mcguirejob Title: Project Managerlocation: Aberdeen, uKeducation: First Class honours degree in Mechanical engineering at Strathclyde university, glasgow

what does my job involve: I lead a team of Project Engineers and support staff in the onshore delivery and offshore execution of subsea projects. I manage all aspects of a project, including both commercial and engineering activities. My primary role is to ensure projects are delivered safely, within budget and on schedule for our clients.

Things I like about my job: I enjoy the diversity of each technical challenge and the satisfaction of seeing early engineering work develop all the way through to subsea systems installed on the seabed. Engineering within the oil and gas industry is rewarding in many ways, benefit packages are extremely competitive and you have the chance to enjoy an excellent standard of living. Similarly, the opportunity for foreign travel exists; I have worked across the Altlantic, in Canada, and visited many other countries in Europe. Within the Technip organisation, there is the opportunity to work in every major oil and gas region in the world.

Key points in my career development to date: I graduated in 1998 and was selected for the Technip Graduate Scheme the same year. This scheme was an excellent start to my engineering career - I worked in many of the company’s departments with experience gained on some exciting North Sea projects. Leaving the scheme in 2000 I was a fully trained Project Engineer, which was to be my role for 3 years before being promoted to a Senior Project Engineer in 2003. With each promotion my responsibilities increased but the challenges stayed fresh and I had a real thirst to develop my knowledge and the ambition to grab every opportunity available to me.

In May 2004, I was promoted to Assistant Project Manager and shortly after I was seconded to work on a large project in Newfoundland, Canada, for 10 months. This move opened up new growth opportunities and I believe the project became an important turning point in my career. I developed more confidence in myself and proved, even though I was relatively young, I was capable of managing, delivering and executing a large scale project. The hard work paid off when I returned from Canada and was promoted to my current role of Project Manager.

My advice for those looking for a job in the oil and gas industry: Anyone interested in a career in the oil and gas industry should be pro-active and willing to seek out opportunities, you can achieve anything, gaining both professional and life experience. Through the training and development offered to you at companies like Technip ‘the world really is your oyster’.

Subsea Project Manager...joining TechniP in 1998 as a graduaTe engineer, david mcguire is noW a ProjecT manager, leading a large Team in The delivery oF mulTi-million Pound norTh sea ProjecTs…

Career PrOfIle:

A Lyonsdown MediA Group suppLeMent Distributed in The Scotsman Careers In Oil & Gas002 A Lyonsdown MediA Group suppLeMent Distributed in The ScotsmanCareers In Oil & Gas 003

Graham had enjoyed a student placement in Prospect’s Aberdeen HQ, and after graduating from university in 1996 was delighted to receive an offer of permanent

employment.A day in the life of a graduate engineer

It’s been two years since Graham entered the North Sea oil and gas industry subsea sector as a graduate engineer. Today Graham’s life is filled with an array of exciting challenges and experiences. No two days are the same, with exposure to a wide variety of engineering challenges, regular foreign travel, secondments to Prospect’s satellite offices and client facilities, networking events, technical report writing, and client interaction.

Undoubtedly it’s a busy life, but importantly it’s a fulfilling one, with constant and structured professional development achieved through structured training and mentoring.

here’s graham’s account of a typical day in a young engineer’s life…

8.00 An early start today. I’m in the office beforehand, checking simulations set up to run over the weekend.

Our client needs the results today and we only received the necessary technical information on Friday. We leave the simulations running on clusters while we’re out of the office, and this one needed to run for 48 hours before the results could be analysed and interpreted.

8.30 I’ve just finished reading through all my emails from the weekend. I’m doing some structural analysis

calculations for an offshore platform in Thailand and they email me outside regular working hours. I’ve got all the results from my weekend simulation ready to analyse; and the Project Leader wants me to deliver the client report today.

9.00 There’s a project kick-off meeting at Halliburton this morning. The Project Leader and I have arrived at

Halliburton’s offices for the meeting with Halliburton’s design team. With timescale, resource and delivery requirements approved by my Project Leader, I’ll be responsible for the technical execution of the project, and mentored by one of Prospect’s technical experts.

9.30 Excellent opportunity! Just found out in the meeting that I’ll be travelling to Australia at the end of

the week, so must get back to the office and speak to Human Resources about travel arrangements.

10.00 Spending the hour before lunch interpreting the results of the weekend’s analyses. There are some

borderline results which have come out of this first phase of the work. My report to the client will recommend more detailed modelling, to further investigate and understand the issue. If the client agrees to extend the project, I’ll need to reconfigure the existing model and begin that analysis before travelling to Australia for the Halliburton project.

11.00 We’ve an internal lunch and learn session on project execution; covering project management,

resourcing, financial awareness and document control. These are useful sessions, allowing less experienced engineers to learn from the old hands.

12.00 After the training session, I quickly check my inbox and call some clients before the technical

manager sits down to go over my project handover notes and actions prior to my departure for Australia. I’ll maintain responsibility for the analyses already running as I can check these remotely from Australia.

13.00 Still writing and checking my formal report. It’s got to be finished early afternoon because I’m off

out to work from a client’s office.

13.30 Gave the report to the Project Leader for formal review, he’ll pass it to the Operations Manager for

approval before I issue it to the client by close of business.

14.00 Arrived at Aker Kvaerner’s office to work in their multidiscipline project team. I’m supporting their

design team on a long term project. We’ve been sub-contracted to complete this design unit and I’ll leave the project when this task is complete.

15.00 Still working out of office, time for a quick coffee break before I head back to Prospect’s office.

16.00 The report has been approved and I’ve sent it to the client. With this job I’ll follow up the report

with a trip off-shore to see the structure following its installation. This will not be until after my work in Australia is complete.

I’m glad that I can’t end this account by saying next day I’ll repeat the cycle. Instead, all I can say is that there’s no such thing as a routine day in the oil and gas industry.

a Day in the life of Graham Cookgraham cook, 25, is a graduaTe civil and sTrucTural engineer emPloyed by ProsPecT, an inTernaTional engineering soluTions Provider

Among the most prevalent challenges to any industry is the ability to manage costs. Recent fluctuating prices in the price of crude have made this an even more essential requirement to prevent business procurement costs running out of control.

A company from London, named after a beautiful church in Scotland has proven that with the right amount of drive, some great technology and a cohesive team working together, the largest companies in the world will literally queue at your door to work with you. Founded just three years ago by two investment bankers, Charles Clark and Hugh Cox, they have created a list of clients that every company would be envious of.

Most companies start out small and work up the chain. This usually includes not just the size of the company, but their customers as well. Conversely most global companies usually engage

services from providers similar in scale to themselves, but Rosslyn Analytics is a notable exception to the norm. In this case, by being able to provide a service that increases in value as the size and complexity of the organization increases. Rosslyn Analytics bill themselves as providers of “Data Services for Global Procurement” which means they take the financial data scattered across a large company’s many divisions and consolidate that information in a detailed and easy to access system.

SeaDragon Offshore, involved in building ‘state of the art’ deep water drilling vessels where visibility of every aspect of the expenditures is crucial to survival, realised early on that Rosslyn’s product, RA.Pid, would be invaluable to his ultra deep water exploration company. According to Steve Baird, CEO of SeaDragon, “It is akin to turning the lights on!” They followed that up with contracts from Aberdeen Asset Management where “Rosslyn technology enabled us to produce a Global Strategic Sourcing plan and introduced an external discipline to our regular purchasing processes” according to Andrew Laing, Deputy CEO. Additionally they have been retained by global players in the Oil and Gas industry, such as Maersk, RioTinto and others to find and release value for them in their expenditure, saving just one small unit of an unnamed energy firm £600,000 in the first year alone. The typical savings range between 2 – 10% of spend being managed. In this industry segment, these numbers can be enormous!

How did all this happen? By chance, Charles and Hugh, both ex-investment bankers were advising one of the largest telephone companies in the world. Part of this work entailed analysing the detail of £8bn in spend from the procurement team. Surprisingly, the procurement team was attempting to manage huge sums of money equal to what they often saw in the capital markets, but were using spread sheets with old data while players in the financial markets had access to systems which gave them real time visibility of precisely how their funds were allocated and the value of their investments, which to them was akin to using an abacus to count up a bank vault

Seeing this gap between need at the very highest level of global business and the lack of reliable solutions, which could deliver current data to procurement professionals, Charles and Hugh had a vision to create and establish Rosslyn as the Bloomberg / Reuters of the procurement world.

In their conversations with some of the leading Chief Procurement Officers (CPOs) at a recent summit in Switzerland, a worry for them was the size and disparity of the data within these large companies and their analysis. The answer that amazed most people was “our system doesn’t care”. RA.Pid can handle it. It all boils down to accurately tracking the smallest and simplest data form, “the transaction itself”. In this age of size and complexity, often the smallest and simplest answer is the best. So for Rosslyn, small really is big when it comes to handling the vast volumes of data stored in the financial systems of global companies.


no one Would doubT business inTelligence is essenTial To The oil indusTry To helP solve The mosT criTical inFormaTion challenges

Where Small is Big

For the man on the street, the oil and gas industry might seem an unlikely career choice for someone with environmental

concerns. Siding up with an industry that produces the raw energy that fuels most of the world’s cars and its power stations might seem a tad contradictory. Yet others might argue what better place to make a difference. If the world is going to get tough on environmental pollution and tighten emission controls – which it already is – then why not start at the beginning, where the natural resources are produced before we, the consumer, burn them in our engines.

The fact is big oil multinationals already spend more on environmental-related programmes than most other corporate entities put together. From renewable energy solutions

to carbon capture and storage, the likes of Shell and BP are constantly pushing the boundaries of innovation to fashion a more sustainable, environmentally responsible industry. Even in the field of oil and gas production itself there are concerted efforts to minimise the impact of operations on the surrounding environment, whether it be the harsh waters of the North Sea or the sun-scorched deserts of Arabia.

At one of the oil industry’s showcase events, the Offshore Technology Conference in Houston, in May, one of the biggest crowd pullers was the press launch of a new environmental initiative, Castrol Offshore’s GreenField. It includes the release of a new range of environmentally responsible products designed to help the worldwide offshore industry reduce its environmental impact. The range of hydraulic fluids, gear oils, specialist lubricants, greases and subsea control fluids has been scientifically proven to have significantly reduced impact compared with conventional products.

One of the central figures at the OTC press launch was Castrol Offshore’s environmental specialist Susannah Linington. Facing the world’s energy press, she highlighted the need for the offshore sector to operate responsibly above and beyond the requirements of legislators. “The offshore industry today faces unprecedented challenges to meet the world’s seemingly insatiable demand for energy and material goods,” she says. “Although oil and gas production can never be sustainable, the industry can operate responsibly and minimise its impact on the environment.”

Linington – employed to progress Castrol Offshore’s environmental enhancement programme – has clear environmental concerns and beliefs of her own. A lifelong interest in the outdoors and wildlife made her value the importance of maintaining biodiversity and preserving natural habitats. With a degree in marine chemistry followed by a masters degree in water pollution control technology, both have provided a solid foundation for her career as an environmentalist spanning telecommunications, pharmaceuticals and now the oil and gas industry.

A Chartered Environmentalist, Chartered Chemist and Castrol Offshore’s representative on the European Oilfield Speciality Chemicals Association (EOSCA), she has played a key role in the launch of the Castrol GreenField initiative. This meant working closely with other Castrol environmental and technical people, as well as international regulators, industry groups and other parties. “We have taken as the basis for our environmental performance criteria some of the world’s most stringent environmental legislation for products used offshore,” she says. “Our specialist chemists, working at our research and development centre in Pangbourne, continuously liaise with our environmental legislation specialists and experts. Castrol Offshore is committed to helping its customers protect the marine environment and is pro-active in the ongoing development of specialist environmental products.”

In key offshore locations around the world environmental legislation affecting the industry has increased significantly during the past decade or so. This trend is expected to continue as more legislation comes into force and as the

global offshore industry continues to expand into new frontiers, including new deepwater areas and environmentally-sensitive regions such as the Arctic. For companies caught between mounting environmental pressure and the harsh realities of offshore operations, Castrol GreenField offers an important and timely solution, Linington adds.

“The management and control of pollution from offshore operations is assuming a higher priority for the industry as governments and official bodies focus increasingly on the protection of the environment,” she says. “Legislation is becoming tighter, exposing companies to stiff penalties and accompanying loss of reputation. The industry should not simply react to authorities’ requirements but take the lead in minimising damage to the marine environment.”

As well as offering enhanced environmental benefits, Castrol GreenField products offer no compromise in terms of their performance and are easy to use on existing equipment, requiring little or no intervention. The

lubricants and greases are vital to the

reliable operation of numerous offshore applications on mobile

offshore drilling units, fixed, floating and subsea production facilities, supply boats and specialist support vessels. The OTC launch followed an earlier launch by Castrol Marine which is providing a similar range of environmentally responsible products for the shipping industry, which faces its own set of challenges. Castrol is now part of the BP family.

For Linington – and the many other environmental experts working in today’s global oil and gas industry – companies need to show great responsibility and regard to the environment and the impact of their operations, both at a local level and on a broader scale. “For responsible companies, complying with environmental laws is a minimum requirement,” she says. “They go further, however, in adopting pioneering environmental solutions as a standard part of ethical business.” Judging by the response to the Castrol GreenField initiative so far and the healthy level of interest in Houston earlier this year, going green also makes sound business sense it would seem.

These are exciting times for the subsea sector. The majority of oil produced from the North Sea now comes from

subsea wells and this is due to increase further in the coming years and yet, as has been widely acknowledged, our industry is facing a skills crisis.

If Britain is to retain its competitive advantage as a world class producer in subsea oil and gas technology then its industry needs to recruit capable and motivated individuals who can develop their skills in what is increasingly a challenging but highly rewarding sector.

With some 42,000 employees, and over 800 companies, the UK subsea industry sector currently leads the world in experience, innovation and technology.

In 2007 the industry in the UK achieved 29% growth based on £4.5bn in revenues, 50% of which was exported all over the world. The potential beyond the UKCS is even greater, with a £25bn global market, which is set to grow even further in the years ahead.

It’s long been thought that the oil and gas industry doesn’t do well to promote itself to those outside the sector but the UK subsea industry is one of the most exciting and fastest growing technology sectors in the world. It’s a career that can take you all over the globe – working in locations as diverse as the North Sea, the Gulf of Mexico or the Indian Ocean.

Our industry is increasingly moving into deepwater and more hostile and remote locations and we need the right skills to develop game changing technologies to economically develop these new discoveries and increase productivity.

As we push the boundaries into even deeper and harsher water conditions, the continued development of new solutions will play a key role in maintaining the UK as a global leader in the supply of offshore services in a wide range of oil producing provinces.

Imagine working for such a highly successful, expanding global business that’s pioneering earth’s last frontier and allowing you to regularly explore new experiences each day.

The future of the offshore oil and gas industry undoubtedly lies with subsea systems. Not only are these ideal for developing new, untapped oil and gas reserves in deepwater, but also for maximising the recovery of oil and gas from old, so called mature fields in places like the North Sea where it is simply no longer economic to build or maintain the large offshore platforms built in the 1970s and 80s.

In order to fully grasp this opportunity though, we have to become again, as we did in the late 70s and early 80s, a powerhouse, literally for new technology. We have to do more research in order to identify new technologies.

Bearing in mind our exponential growth, any sector growing annually by 30% will have skills and ageism issues and that is why the UK subsea industry is facing a skills crisis.

To give an insight into one particular area that highlights our industry’s shortage recent comments by IMCA, the International Marine Contractors’ Association, highlighted the fact that the subsea industry will commission at least 50 new offshore construction vessels in

the next 2 to 3 years. These together with more than 40 more floating drilling rigs will require some 2000 additional crew members and 800 additional personnel in diving and related positions.

Another area of potential growth for the subsea industry is within the marine renewables sector. It is here that the subsea industry has the skills and experience to really develop the desired outcome of making the UK the world leader in offshore wind, tidal and wave energy, thereby reducing CO2 emissions.

We need to ensure that the UK’s unique, unrivalled global expertise in subsea oil and gas is used to the full to develop marine renewable devices. Today, we have two separate technology groups in the UK – subsea oil and gas and subsea marine renewables – they have to converge to become one and the same.

A subsea well and a tidal stream device need the same technologies for construction, deployment and operation. They each exploit power from the oceans – they just use a different primary driver.

The biggest problem is recruiting staff with specialist, engineering skills, but general skills such as HR and office admin are also a concern. Addressing the skills shortage needs to be a priority for policy makers.

It is excellent to see the efforts being made to develop these skills such as OPITO’s Subsea Technicians programme and the

various recently created undergraduate and postgraduate courses in subsea engineering will all help.

All of the main engineering disciplines are required in the subsea industry:• Engineers with mechanical and structural skills make big contributions to the development of production equipment, subsea structures, and pipelines.• Electrical and electronic engineers are involved with control systems.• Chemical engineers carry-out process analysis of the systems to ensure the fluids will flow satisfactorily.• And engineers of all disciplines get involved in the management that's required to bring hundreds of millions of dollars of equipment together to complete a single offshore oilfield development.

The UK’s subsea companies are active in the full lifecycle of the industry from research and development through to the operation of producing oil and gas fields. That means engineers can experience a range of jobs and can find a role that suits their skills and aspirations.

Many engineers join the subsea industry directly from further education. Others begin in another field of the oil and gas business and transfer to subsea part-way through their careers.

As champion of the entire British subsea industry we, at Subsea UK, have created a dedicated website for those looking for a potential subsea career: www.subseaskills.co.uk was developed to attract potential engineers in a bid to tackle the skills shortage.

The site was officially launched late 2007 to attract and train potential new subsea engineers by reflecting the needs of the industry and allowing prospective engineers to gain more convenient access to all the information necessary to apply for the right job.

Visitors to the site can see how wide ranging a subsea career can be but it also allows potential employees direct access to the vast number of companies within the sector and their vacancy portals.

A number of Subsea UK member companies are listed on this site and each provides a short synopsis of the type of skills they employ, where they are based, how many staff they currently employ and each company’s logo links you directly to the vacancy section of their website.

It is essential for the industry to attract the right calibre of candidates with the technical competence to maintain our market leading position for the future. Exciting opportunities where ideas, vision and innovation are the norm are available now and we believe that in the next few years we will need between 3,000 to 5,000 more people.

Imagine working for such a highly successful, expanding global business that’s pioneering earth’s last frontier and allowing you to regularly explore new experiences each day.

Skills Needed for one of the UK’s fastest Growing Technology Sectors

subsea indusTry – The lasT FronTier. by david Pridden, ceo subsea uk

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Making a difference

Even in the field of oil and gas production

itself there are concerted efforts to minimise the impact of

operations on the surrounding

environment, whether it be the harsh

waters of the North Sea or

the sun-scorched

deserts of Arabia.

The launch oF casTrol oFFshore’s greenField range oF environmenTally resPonsible ProducTs For The oFFshore indusTry This year shoWs ThaT iT is Possible To Work in oil and care abouT The PlaneT aT The same Time


The oil and gas industry is currently experiencing unprecedented levels of change at a national and global level. In

this article, we look at some of the overarching themes impacting the industry and how management consultants’ support oil and gas companies to manage their way through the change.

The industry is rarely out of the media spotlight. Recent headlines have been dominated by the impact of the dramatic rise in oil and gas prices, calls for new investment and demands for tougher environmental

commitments.

These headlines are underpinned by a number of themes, permeating at both national and international levels:

• Increased consumption of oil and gas products,

driven at a global level by

substantial economic growth in countries

such as China and India;• Concerns over the ability of current production levels and the ability/willingness of producers to meet increasing demand;• Pressure to identify new reserves in less accessible places requiring new technical skills and potentially driving up the cost of extraction; • Need to reduce dependency on oil and gas and transition to a greater proportion of renewable energy sources;• The rise in oil and gas commodity prices which has driven up the cost of key inputs for the manufacture of semi finished and finished goods; and• The ongoing battle for talent to supply the right kind of technical skills needed to exploit new opportunities particularly in upstream.

So, what does this all mean? Firstly, it is clear that the challenges facing the oil and gas industry are wide ranging, complex and influenced by global economics, political, social and environmental considerations. Secondly, oil and gas companies need to prioritise the deployment of their resources to address these challenges and manage this complexity. Initiatives focused on

innovation, operational efficiency, talent, social responsibility, risk management and the successful delivery of change are all critical.

The principal role of the management consultant is to provide independent advice and to help to successfully execute on that advice. They assume an important role in supporting the oil and gas industry to develop and implement solutions that address the issues facing companies, governments and society on the whole. The breadth of skills required to fulfil this role include strategy and direction setting, leadership coaching and development, operations transformation, capability building and talent development, management information and IT systems development, and programme and change leadership.

The scale of change and existing demands on key resources in the business lead many companies to look for one or more consulting partners to support them to deliver the change. Let’s look at two key business challenges where consulting partner support is often sought - driving operational efficiency and developing and retaining talent.

Operational efficiency is delivered principally through the elimination of complexity and driving excellence in execution. This contributes to both improvements in performance and profitability. For example, in upstream, looking at ways to rationalise the supplier base for critical equipment and services or more strategically source and manage parts to mitigate the risk of operational downtime will avoid unnecessary cost. Alternatively, introducing remote collaborative working environments could help to optimise the use and effectiveness of scarce engineering / technical support for off-shore platforms.

In the downstream world, reducing the

number of product variants in a business to simplify the product portfolio or consolidating activities such as customer service across different channels may help reduce operational costs. Increasingly, downstream businesses are seeking to drive excellence throughout their supply chain by optimising the balance between demand and supply and managing the portfolio of refining assets in an integrated way.

Attracting and retaining the right talent is a key strategic objective for all oil and gas companies. Without sufficient skilled and experienced resource, the company will be ill prepared to meet the challenges that lie ahead. In the West, the industry has suffered from a poor image due to the focus on the environment and a perception of it being old fashioned. The oil industry, in particular the upstream oil industry, is currently experiencing talent shortages as a consequence of cut backs in the mid-nineties. Whilst there is access to the graduates and employees at the lower level, the average age of workers in upstream is over 50 with many due to retire in the next few years. In response, consultants have supported the company’s leadership to develop and implement talent management strategies that have helped focus recruiting, retention, training and remuneration approaches in a way that better draws and retains people to their organisation, thus winning the battle for talent.

We believe that the level of change and the nature of the challenges faced by the industry represent an exciting opportunity for management consultants to work with a wide range of global clients across the industry.

Through its member firms, Deloitte’s dedicated oil and gas group has developed considerable expertise in delivering leading advisory and business consulting support for complex business change programmes.

So, what does this all mean? Firstly, it is clear that the challenges facing the oil and gas industry are wide ranging, complex and influenced by global economics, political, social and environmental considerations.

There are FeW indusTries ThaT Touch our lives as much as oil and gas, and have as viTal a role To Play in all our FuTures. The PeoPle Who Work in This indusTry Play a PivoTal role in shaPing and delivering ThaT FuTure. Working WiTh The oil and gas comPanies, consulTanTs have an imPorTanT conTribuTion To make To The FuTure oF This indusTry, says sTeve WinkWorTh, direcTor in energy consulTing, deloiTTe

These Specialist Units of the Royal Engineers Territorial Army (RETA) boast a wide range of relevant technical skills, encompassing large swathes of the diverse oil and

gas business. Like the oil industry itself, which encompasses all manner of skills and technology, the military too is multi-faceted, comprising personnel ranging from engineers and tradesmen to technicians, each bringing with them different capabilities.

When the US-led invasion of Iraq commenced in 2003, these men and women were at the sharp-end when the advance overran the giant oil fields of the largely desert state. It was down to specialist military engineers and technicians to rein-in production at the oil fields before dedicated third party oil contractors could arrive on site to take over.

The Specialist Units RETA are the Territorial Army’s source of specialist infrastructure engineering expertise covering most areas of civil, mechanical and electrical engineering.

There are eight units, called teams, comprising between 20-25 soldiers in strength, though these are growing in size. Five provide specific infrastructure engineering capability covering core areas such as water, power, fuels, railways and ports. The other three provide more general engineering capability throughout the spectrum of horizontal and vertical construction. All teams include a mixture of civilian qualified engineers, tradesmen and technicians. The specialist fuels team focuses on fuels production, storage and distribution.

Its personnel come from right across the UK’s extensive energy chain, from the upstream production side to the downstream distribution side. Its knowledge spans oil production right through to refining and processing and final fuels delivery. The primary role of the team is to repair and maintain essential fuel supplies to the civilian population immediately post-conflict, in support of the military mission. The teams covering ports, water, power and railways have a similar remit for their own respective sectors.

As a career choice for oil workers, the army might just provide something a little out of the ordinary. The search for specialists is gathering pace too with the move to drive up numbers in the coming years. In 2005, the Specialist Units RETA integrated with the Regular Army Specialist Units to form 170 (Infrastructure Support) Engineer Group, headquartered near Nottingham. The combined force provides both brains and brawn to the UK’s military might. For further information, visit www.armyjobs.mod.uk

armycontinues

to build on its pool of oil

industry expertise

FolloWing several years oF inTensive oPeraTions in iraq, iT is liTTle Wonder The briTish army has builT uP a Pool oF exPerTise on The middle easTern counTry’s mosT Prized resource, iTs crude oilConsulting for the future of Oil and Gas


how is the uK addressing energy security, especially in the wake of record high oil prices and uncertainty in gas supplies from russia?Security of supply is a fundamental challenge for the UK. Growing demand, especially from fast-growing economies such as China and India, is increasing global competition for energy supplies and has been one of the reasons for the very high oil prices.

As our own supplies from the North Sea continue to decline, we need to avoid overdependence on any one region by having a diverse mix of supply sources and routes.

The UK has one of the strongest and most diverse energy markets in the world – we’ve seen many billions of pounds’ invested in new import infrastructure and we do import from, for example, Norway, Egypt, Algeria, Trinidad and Tobago, as well as continental Europe. We’re not dependent on Russian gas.

Energy security is also enhanced when we have a diverse mix of technologies. And that mix needs to be increasingly low carbon, because of the need to tackle climate change. That’s why we announced in January our decision in favour of new nuclear power stations, and it’s why we’ve committed to meeting our share of the very ambitious EU renewables target for 2020.

We’ll still need fossil fuels in the mix for decades, to keep the lights on, for transport, and to ensure the supply is flexible. But as we diversify to reduce dependence on fossil fuels, countries like China are using more and more. This is why we’re one of the world leaders in developing carbon capture and storage technology, a vital part of the solution to climate change.

given the rise of energy resource nationalism, how do you think we should be responding to protect british companies’ energy interest and properties?

Resource nationalism is not the way forward. The UK has one of the most competitive energy markets precisely because we haven’t gone down that road. Our experience shows that competition benefits consumers and the economy. Competitive energy markets are the best way of maintaining secure and sustainable energy supplies, increasing efficiency and improving services for customers.

We have been working with the European Commission on introducing greater competition in the energy markets across the EU, and we have recently made some significant progress.

At the June Energy Council in Luxembourg all EU nations signed up to a new agreement on the legal unbundling of the EU energy market. This agreement will bring real improvement to the way energy markets function across the

EU. It will put downward pressure on prices, give consumers greater choice and better levels of service, and help to bring new clean, green energy. The agreement moves the whole of the EU closer to the fully open and competitive energy markets we experience in the UK today.

Can we have cheap energy and meet our climate change objectives?

There are costs to tackling climate change, and that’s a bitter pill to swallow at a time of high prices. But as Sir Nicholas Stern’s analysis made very clear, the costs of not tackling this problem are far higher. The sooner the world tackles climate change successfully, the better, both environmentally and economically.

Looking at energy production, some low-carbon technologies do require subsidy – such as offshore wind – and others, notably new nuclear power stations, don’t. But for the long term, and to ensure we keep a diversity of sources, we need both nuclear and renewables.

Why was the uK the ‘lame duck’ nation in Phase I (2005-2007) of the eu emissions trading scheme, forcing british utilities to buy between 10-20% of their permits while other nations were given too many?

The first phase of the EU Emissions Trading Scheme (ETS) was intended to be a learning period prior to the Kyoto commitment period. It was a crucial stage in getting European businesses to take account of the cost of carbon. Over-allocation of emissions allowances was a common problem amongst member states including the UK, and we have seen improvements in Phase II. It is true that the UK auctioned a larger share of Phase I allowances than some other member states, but

this did not place our electricity generators at a competitive disadvantage; nor did it affect the carbon price which was generally relatively low.

Will britain experience the same disadvantages in Phase II (2008-12)?

In Phase II, the Government will auction 7% of allowances plus any remainder from the New Entrant Reserve. This is one of highest levels of auctioning in the EU - the maximum permitted level of auctioning is 10%. The allowances will be auctioned to the large electricity producers as they are more protected from international competition and there is more potential for abatement in this sector.

The Government is working hard to ensure that other UK industrial sectors can compete on a level playing field in Europe and beyond. We have taken competitiveness into account in our decisions on Phase II and have pressed for consistent implementation across the EU. The Commission has taken solid decisions on member states’ National Allocation Plans, showing a determination to prevent over-allocation and the dilution of the incentives the EU ETS is meant to provide. And to help reduce burdens on business, we have removed some of the smallest emitters from the scheme.

What are the plans for Phase III? There’s a current debate over the eTS. Is it going to provide an environmental benefit or is it just a revenue raising exercise?

The ETS is at the heart of EU climate policy. I am confident we can build on the improvements of Phase II and establish very robust arrangements for Phase III. The Commission has proposed a single, EU-wide cap which would reduce Member States’

emissions by 21% compared to 2005, with a clear downwards trajectory beyond 2020 – ensuring both scarcity of allowances and certainty for business.

We are likely to see a widening of the scope of the scheme. For example, we welcome the proposed inclusion of carbon capture and storage in the EU ETS, recognising it as a critical technology on the path to a low carbon economy.

There will be increased levels of auctioning. The Government announced in the 2008 Budget that it would auction 100% of allowances to the large electricity producers in Phase III. The sector is able to pass through the cost of allowances to customers, and auctioning, as well as being the most efficient way of making allocations, will address the issue of windfall profits.

between 1995 and 2004, the uK was the world’s fourth largest gas producer. In 2005, we slipped to sixth and in 2006 to seventh. Production of gas in the north Sea has declined recently, discoveries are technically difficult to recover, smaller than before and taxation is a disincentive with two increases in taxation on producers. What is the government doing to attract explorers and how are you planning to encourage investment in recovery, especially as the basin is mature?

Underlying geology and future oil and gas prices and development costs are the dominant drivers of investment and, hence, ultimate recovery levels. However, government does have a crucial role to play in ensuring that the regulatory and fiscal regimes help deliver the best possible future for the UK continental shelf. We also have a key role in promoting

Malcolm Wicks,energy Minister

careers in oil and gas quesTions The righT hon. malcolm Wicks on all Things energy, From cheaP resources, suPPly chains, eu iniTiaTives To norTh sea ProducTion

North Sea investment and supporting the UK oil and gas industry and have strong links with industry via the successful PILOT forum which continues to deliver value-increasing measures for the basin.

Last year saw the highest number (111) of offshore exploration and appraisal wells drilled since 1996. The previous year was a significant year for discovering oil and gas – the highest level since 2001 - with around half a billion barrels of oil equivalent (BOE) discovered and 40% of exploration wells finding potentially commercial accumulations. Last year was also positive with indications suggesting 300–400 million BOE found.

But we need to maintain momentum. This year we launched a new offshore licensing round with a record breaking 2,297 blocks offered and we have just received a very large number of applications from a wide range of companies. We continue through the fallow initiative to ensure that acreage is being properly worked on. We’ve seen success with Promote Licences with 40% of those offered two years ago continuing into the second - drilling/exploration - phase. There has been drilling success west of Shetland and we have a Task Force focusing on how to unlock gas reserves there.

The Treasury is also currently undertaking discussions with industry and other stakeholders on the North Sea fiscal regime. The 2008 Budget saw the announcement of a package of changes to the North Sea fiscal regime that Government believes will help encourage investment, provide certainty, facilitate asset trades and reduce the fiscal regime compliance burden. Following this, Government is currently discussing a range of further issues with industry, for example whether there is a need for any special measures through the fiscal regime to help incentivise development of marginal discoveries. And on 28 May we announced plans for new oil and gas fields to be carved out of currently un-commercially viable parts of some existing fields which would mean production from these new fields would be unaffected by Petroleum Revenue Tax.

There’s been a world class supply chain built around north Sea Production, which supports hundreds of thousands of jobs, contributes significantly to government tax revenue, and lifts the skills and technology base of the uK as a whole. how is the government helping ensure that supply chain companies continue to find the uK an attractive place to anchor themselves, and from which to export their goods and services?

We must use the North Sea to nurture and grow our supply capability but at the same time ensure our innovative range of companies remain anchored here and use the UK as a springboard for global growth. We are working closely with industry through PILOT to ensure we have the best economic and business frameworks to attract the investment and activity needed to deliver this potential.

The UK energy sector is thriving, but we must acknowledge our basin is maturing and if we are to make the most of its competitive position supply companies need to become more international. Our UK Trade & Investment organisation is working on this as a priority, and has recently launched an Energy Technology Strategy which looks ahead to 2030. It promotes key opportunities for UK businesses to make a leading contribution to the provision of the technology, innovation and expertise needed to supply better, cleaner, higher value energy - including low-carbon options.

Q&a

‘We’ll still need fossil fuels in the mix for decades, to keep the lights on, for transport, and to ensure the supply is flexible’

Having worked as a process control engineer for 13 years, Andrew’s first port of call wasn’t the oil and gas

industry. Working in the nuclear, chemicals manufacturing and process simulation industries, he moved North to Aberdeen in 2006 to transfer his expertise to the oil and gas sector. Andrew realised that the salaries and benefits achievable within the oil and gas industry

outstrip what is available in most other process industries.

“Combine this with the pace, innovation, challenges and continued investment in the oil and gas sector and it was a no brainer. When I was given the opportunity to work for Xodus, a young but highly dynamic oil and gas consultancy, I grabbed the opportunity with both hands.”

Continuing, Andrew said:

“I’ve worked for various companies of various sizes in my career and I can say, without a shadow of a doubt, that the industry and Xodus in particular is the most rewarding place of work I’ve had the privilege to have been part of.

“When I started working for Xodus, the company was still in its infancy but there was a tremendous atmosphere of new beginnings and the sense that all individuals had the potential to make a real difference.

“Two years on and the company has grown rapidly but there still remains that sense that we’re all essential parts of the team, albeit a significantly larger one.

“The reality of it is that I get to dream up new ideas of how to further develop our simulation products and packages. It’s great to be a part of such leading innovation and with each new product we develop, we really do push the boundaries of what is achievable.

“In a sense, it’s a shame that members of staff that join straight from university don’t have the past experience to appreciate that they’ve landed in such a great place. Xodus will not only kick start their careers by helping them gain valuable and front line, global experience but will also potentially offer them a rewarding and long term career. My advice - the grass doesn’t get much greener!”

Work hard and Play hard, an eThos many a comPany has declared buT never acTually made a realiTy. The oPPosiTe can hoWever be said oF xodus oil and gas consulTancy, according To andreW jones, a Process conTrol engineer WiTh The comPany

Working for XodusThe Dumbarton XPLORE System

Initially, I trained in law, graduating from the University of Lancaster and Chester College of Law – the prospect of thirty five years of high street litigation loomed. Sufficient dislike of the idea of long

term lawyery meant that I needed a plan! Whilst training as a solicitor, a fellow student at law college said he didn’t think I was destined to be a solicitor – at the time, I was replacing some power transistors for an electronic flash gun and re-designing the battery charge circuits. Maybe I should have listened then!

My love of sport diving brought me to Scotland. Whilst here, I signed up for a familiarisation dive at The Underwater Centre. From there, I enrolled on a course and completed my HSE part IV, Surface Supply and Wet Bell courses. It was on this course I saw my first ROV. Inevitably, this led to my taking an ROV course. From there, I went to work for Sonavision. Pretty soon I was teaching electronics to other ROV students whilst still working offshore.

Over the years, I’ve moved from being an ROV pilot/ technician who did a bit of training to running ROV training at The Underwater Centre and doing a bit of offshore ROV supervision (I managed two stints offshore over the Christmas period, with Fugro and GB Diving. I bumped into seven TUC graduates on these trips which was great to see – all were really enjoying their work and career progression). My current role means I have the best of all worlds: I teach at a world class facility; I’m involved with cutting edge industry developments via TUC’s industry trials programme and I get to keep my hand in, offshore, too.

There are three questions I get asked by nearly every person who is considering being an ROV pilot/technician: can I do it; how much can I earn; and will I get a job? So, as you’re all dying to know, here are the answers.

Can I do it? IMCA (the International Marine Contractors Association), the people who’s curriculum we follow, recommend people from an engineering, electronic, electrical or hydraulic background although I’ve found that many people with a keen interest in these subjects can be successful, even when coming from a completely unrelated background

like I did. If you have the will to learn and desire to succeed, your destiny is in your own hands.

how much can I earn? At the moment, employers are crying out for good pilot/ technicians with

demand being fuelled by extensive subsea oil exploration and extraction – a result of high oil prices. There is no reason to suppose that the current situation will change over the next few years, with industry experts making bullish predictions about ROV requirements. Typical starting rates will be something like £150 per day; within a few years you may command £500 per day as a

supervisor.Will I get a job? Whilst I can’t personally

guarantee any student a job, I can say that we work really hard to ensure that every student has

the best possible chance of a career in the ROV industry. I keep every student’s email address and

add this to my mailing list. This means I can keep them informed about every new job that comes along, and employers

use me as a way of finding new talent. There are hundreds of former students on this list and many let me know about job opportunities to circulate to everyone else. This has proven to be a great support network for all of our former students. Recently, I carried out a survey of ROV course graduates and discovered that 95% are working – the remaining 5% I did not hear from, so I can’t confirm what they are doing.

a day in The liFe oF Paul bury, head oF remoTe oPeraTed vehicles, The underWaTer cenTre

The King Of The Seas

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A Lyonsdown MediA Group suppLeMent Distributed in The Scotsman Careers In Oil & Gas012

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