Start an Internship Program in your Company
- There’s never been a better time.
In the current Oil & Gas downturn, hiring has been put into the back-burner. With talent recruitment plans held back indefinitely, how do you sustain on-going projects and cope with existing workload? As you are pressed for continued productivity, what are the support options available to you?
This is where an internship program can immensely help you withstand the current cost crunch. If we look at internships from a solutions-based perspective, it's definitely something worth considering. Because essentially, your urgent primary needs are:
· Short-term increase in productivity. Hiring an intern allows you to overcome short-term shortage of manpower. Interns help fill-in the gaps in terms of support required for mainstream operations functions without extensive training.
· Low-cost. Interns are inexpensive. Compared to a full-time employee, their allowances are significantly lower. Some are even prepared to embark on an internship programme without an allowance! With their enthusiasm to perform, they are the most highly motivated team member!
Building an internship program in your department or company can help elevate current workload challenges in the short term, however there are benefits in store for the long run as well. Companies, who have a long term vision of their talent management, may want to consider the following ideas.
6 benefits from starting up an Internship Program in your company
1. A pipeline of future talents. An internship program provides for an ongoing pipeline of future fulltime employees. For most companies, the effort and costs associated with recruitment and hiring is extremely consuming. Solution? Get in hungry interns who need a career path in the current slow economy without the hassles of expensive job ads or time consuming tedious interviews.
2. Test before you commit. Hiring an intern is probably the smartest way to evaluate their potential as a fulltime team member. Hiring "tested out" candidates, will reduce pitfalls like “he is not a good fit here” or he does not have the passion required in this field of work.
3. Reduce negative employee turnover: Studies internationally have shown that employee retention rate is a lot of higher when they are hired through an internship program.
4. Another set of eyes. Interns may provide another perspective to certain types of work place challenges. Their uncluttered fresh minds may result in novel suggestions in resolving or enhancing work place processes.
5. Find them almost free-of-charge. For example, NrgEdge will soon allow you to post your company profile and internship positions completely free of charge targeted for the energy industry. This means you get extensive exposure to students looking for great opportunities in the energy sector from local and regional universities.
6. Remember you were once a student too. Offering a young person a career path, gives you a chance to pay back the opportunity given to you when you first started out with no industry experience. Not only do you help these individuals start out but you also help the whole workforce in your industry. With more experienced talent available in the market, you may have more talents to choose from later when the Oil price come back.
Your next step? NrgEdge will be launching its internship portal for the energy industry soon and we would be happy to post your internship positions free of charge. Take this opportunity and let us know about your interest or plans to hire interns in your company as well. We are here to help.
Have a productive week ahead.
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Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
Headlines of the week
Midstream & Downstream
Global liquid fuels
Electricity, coal, renewables, and emissions
2018 was a year that started with crude prices at US$62/b and ended at US$46/b. In between those two points, prices had gently risen up to peak of US$80/b as the oil world worried about the impact of new American sanctions on Iran in September before crashing down in the last two months on a rising tide of American production. What did that mean for the financial health of the industry over the last quarter and last year?
Nothing negative, it appears. With the last of the financial results from supermajors released, the world’s largest oil firms reported strong profits for Q418 and blockbuster profits for the full year 2018. Despite the blip in prices, the efforts of the supermajors – along with the rest of the industry – to keep costs in check after being burnt by the 2015 crash has paid off.
ExxonMobil, for example, may have missed analyst expectations for 4Q18 revenue at US$71.9 billion, but reported a better-than-expected net profit of US$6 billion. The latter was down 28% y-o-y, but the Q417 figure included a one-off benefit related to then-implemented US tax reform. Full year net profit was even better – up 5.7% to US$20.8 billion as upstream production rose to 4.01 mmboe/d – allowing ExxonMobil to come close to reclaiming its title of the world’s most profitable oil company.
But for now, that title is still held by Shell, which managed to eclipse ExxonMobil with full year net profits of US$21.4 billion. That’s the best annual results for the Anglo-Dutch firm since 2014; product of the deep and painful cost-cutting measures implemented after. Shell’s gamble in purchasing the BG Group for US$53 billion – which sparked a spat of asset sales to pare down debt – has paid off, with contributions from LNG trading named as a strong contributor to financial performance. Shell’s upstream output for 2018 came in at 3.78 mmb/d and the company is also looking to follow in the footsteps of ExxonMobil, Chevron and BP in the Permian, where it admits its footprint is currently ‘a bit small’.
Shell’s fellow British firm BP also reported its highest profits since 2014, doubling its net profits for the full year 2018 on a 65% jump in 4Q18 profits. It completes a long recovery for the firm, which has struggled since the Deepwater Horizon disaster in 2010, allowing it to focus on the future – specifically US shale through the recent US$10.5 billion purchase of BHP’s Permian assets. Chevron, too, is focusing on onshore shale, as surging Permian output drove full year net profit up by 60.8% and 4Q18 net profit up by 19.9%. Chevron is also increasingly focusing on vertical integration again – to capture the full value of surging Texas crude by expanding its refining facilities in Texas, just as ExxonMobil is doing in Beaumont. French major Total’s figures may have been less impressive in percentage terms – but that it is coming from a higher 2017 base, when it outperformed its bigger supermajor cousins.
So, despite the year ending with crude prices in the doldrums, 2018 seems to be proof of Big Oil’s ability to better weather price downturns after years of discipline. Some of the control is loosening – major upstream investments have either been sanctioned or planned since 2018 – but there is still enough restraint left over to keep the oil industry in the black when trends turn sour.
Supermajor Net Profits for 4Q18 and 2018
- 4Q18 – Net profit US$6 billion (-28%);
- 2018 – Net profit US$20.8 (+5.7%)
- 4Q18 – Net profit US$5.69 billion (+32.3%);
- 2018 – Net profit US$21.4 billion (+36%)
- 4Q18 – Net profit US$3.73 billion (+19.9%);
- 2018 – Net profit US$14.8 billion (+60.8%)
- 4Q18 – Net profit US$3.48 billion (+65%);
- 2018 - Net profit US$12.7 billion (+105%)
- 4Q18 – Net profit US$3.88 billion (+16%);
- 2018 - Net profit US$13.6 billion (+28%)