The oil and gas industry has been in an era of restructuring and volatility for the past 18 months. Low oil prices have led to significant staff layoffs, business unit disposals, mergers, acquisitions and even some landmark bankruptcies. And at the same time oil companies have worked towards optimising their production levels and some have quickly pushed into completing or re-tendering existing projects taking advantage of the low cost supplier environment.
What we have seen more recently, over the last couple months, is that most oil and gas organisations now feel like they have completed their restructuring and are refocusing their attention into talents once again.
Despite the heavy restructuring, new-look companies have maintained their traditional management hierarchies, however they have changed the way that they utilise their human resources in order to concentrate on specific business opportunities that improve productivity and lower costs. This is especially true for those who began to build their facilities in a stronger business climate and are now entering production phase under low price conditions.
“As the industry moves into production the type and style of leader that might be required for an organisation is potentially quite different to the type of leader that is really successful in the construction phase” says Julie Harrison, Deloitte Australia human capital partner, said in an interview with Rigzone. Harrison suggested as an example. “It is still the type of leader who has significant experience but it has to be a leader with experience in production”.
Skilled professionals in operations and production disciplines were already the most sought after employees in the first half of 2016 in an otherwise quiet recruitment environment, said Austin Blackburne, recruitment director at Hays.
“It was really only in business critical roles where companies were hiring but now the super majors are being more strategic as they have come out of the doldrums – there is more forward thinking than reactive thinking”, Blackburne said. “As construction is well and truly over, and exploration is almost non-existent, it is really about streamlining processes in controls and operations, and in oil field services, to make sure everything is running smoothly and production is maximized”.
This renewed focus on talent is the right move in the current oil and gas climate. Companies need to look to the future rather than bunker down to survive the storm.
Recruitment however has not yet reached the point of desperation, but when the inevitable upturn in the oil price does come about there is likely to be a severe shortage of production skills in the market. Those who had the required experience and skills may not return. Furthermore, in contrast to recruitment criteria of the past, much more focus will now be placed on technology, especially for automation to streamline processes.
“The culture that prevailed for a long time was to develop and deliver at all costs. There was a significant focus on delivering, but very little focus on cost”, Harrison explained. “Now what we are seeing is organisational cultures changing to more high performance culture, which we are gradually starting to see emerge in the oil and gas sector”.
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Tyre market in Bangladesh is forecasted to grow at over 9% until 2020 on the back of growth in automobile sales, advancements in public infrastructure, and development-seeking government policies.
The government has emphasized on the road infrastructure of the country, which has been instrumental in driving vehicle sales in the country.
The tyre market reached Tk 4,750 crore last year, up from about Tk 4,000 crore in 2017, according to market insiders.
The commercial vehicle tyre segment dominates this industry with around 80% of the market share. At least 1.5 lakh pieces of tyres in the segment were sold in 2018.
In the commercial vehicle tyre segment, the MRF's market share is 30%. Apollo controls 5% of the segment, Birla 10%, CEAT 3%, and Hankook 1%. The rest 51% is controlled by non-branded Chinese tyres.
However, Bangladesh mostly lacks in tyre manufacturing setups, which leads to tyre imports from other countries as the only feasible option to meet the demand. The company largely imports tyre from China, India, Indonesia, Thailand and Japan.
Automobile and tyre sales in Bangladesh are expected to grow with the rising in purchasing power of people as well as growing investments and joint ventures of foreign market players. The country might become the exporting destination for global tyre manufacturers.
Several global tyre giants have also expressed interest in making significant investments by setting up their manufacturing units in the country.
This reflects an opportunity for local companies to set up an indigenous manufacturing base in Bangladesh and also enables foreign players to set up their localized production facilities to capture a significant market.
It can be said that, the rise in automobile sales, improvement in public infrastructure, and growth in purchasing power to drive the tyre market over the next five years.
Headline crude prices for the week beginning 14 January 2019 – Brent: US$61/b; WTI: US$51/b
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GEO ExPro Vol. 15, No. 6 was published on 10th December 2018 bringing light to the latest science and technology activity in the global geoscience community within the oil, gas and energy sector.
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