The energy sector is evolving and accepting best practices from other industries with an overall focus on efficiency and continuous improvements. The Human Resources Department plays a critical role in driving these internal activities as well as the growth and expansion of an organization.
Despite the intrinsic volatile nature of this industry, HR function has a deep implication to steer the overall productivity of the business. Overcoming the various challenges, ensuring sound HR practices and strategies can thus develop strong talent culture and a more resilient organization.
Recruitment: Attracting and retaining Talents in a unique sector
The energy industry is unlike any other. It is primarily a field-based industry, and it requires a mental attitude that cannot be compared to the practice of a regular desk job. The jobs demand a combination of mental skills and physical resilience that would sustain the employees even in most difficult working environments. In spite of fantastic financial incentives, the hostile work environment and the inherent risks of the job might prove to be the key roadblock for the HR team to promote job satisfaction.
One of the trickiest challenges for HR executives would be retaining their top talents and finding suitable replacements in case of attrition. The company makes a considerable investment to train and groom the recruits to become subject matter experts in due course of time. Thus the HR team needs a long-term and sustainable approach towards managing the work-life balance of these employees, provide timely rewards & recognitions, and bring in the sense of empowerment by upskilling them.
Dynamic Industry Requirements
The energy industry is highly competitive and its working depends on many extraneous factors. Therefore, the industry has a dynamic approach inbuilt into its management practices.
The HR executives usually find it difficult to evolve a long-term framework because of the changes being effected in the management strategies of the industry. This not only greatly affects the delivery but also makes them apprehensive about following long-time HR policies.
Information technology has now become an integral part of the industry and has opened up many new job profiles, such as data analysts, automation engineers, software engineers etc. The HR strategy should dynamically change to support the technological advancement in each business groups and develop leaders who can translate business needs into digital solutions.
Diversity: Maintaining gender balance and multi-cultural workforce
Professionals from different corners of the world come to work in foreign countries, sometimes in remote and isolated locations. Working in these locations and away from family for long periods of time has an effect on the motivation levels. Adapting local culture, climate and food sometimes pose a challenge for these employees. Mid-career retirement is not a new thing for employees of both genders.
The HR has to drive interactive sessions, motivational work groups, and discussion forums to enable early detection of demotivation and prompt resolution.
Capacity building at new sites:
Any new oil and gas project is a huge commitment of capital and resources. Human resources managers are under huge pressure to make a project fully operational as the talent search for a new project is even more difficult than the established ones.
Apart from identifying suitable employees, the HR managers are also responsible for creating a suitable work environment for every employee recruited for the new project. This is an absolutely critical factor for the long-term growth and success of the new site.
The HR function is key to helping organizations in the dynamic oil and gas sector survive and even thrive amidst downturns. More importantly, they must ensure that the organizations are well positioned for the turnaround.
While the harsh on-site terrains of oil and gas industry set a huge challenge for the HR executives to keep the employee motivation level high, there are several rewarding experiences for an employee to be lured into this industry.
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Source: U.S. Energy Information Administration, Short-Term Energy Outlook, October 2018; ClipperData
Note: Liquid fuels production includes crude oil, lease condensate, hydrocarbon gas liquids, biofuels, and refinery processing gain.
Iran's crude oil exports and production have declined since the May 2018 announcement by the United States that it would withdraw from the Joint Comprehensive Plan of Action (JCPOA) and reinstate sanctions against Iran.
The announcement included two wind-down periods to allow those doing business that involved Iran time to comply. On August 6, 2018, the first wind-down period ended and triggered the re-imposition of some sanctions. On November 4, 2018, the second wind-down period will end and trigger the re-imposition of full sanctions, including a number of measures that target Iran’s energy sector.
According to data from ClipperData, Iran's exports of crude oil and condensate peaked in June at about 2.7 million barrels per day (b/d), more than 300,000 b/d higher than the average during the first four months of the year (before the May announcement of sanctions). In September, Iran’s crude oil and condensate exports fell to 1.9 million b/d. Although some countries, such as France and South Korea, stopped importing crude oil and condensate from Iran in July, other countries continue to import from Iran. The United States has not imported crude oil and condensate from Iran in several decades.
Source: U.S. Energy Information Administration, based on ClipperData
ClipperData indicates that China and India collectively received nearly half of Iran's crude oil and condensate exports in the first half of 2018. During this period, China's imports from Iran averaged 644,000 b/d and India's imports from Iran averaged 554,000 b/d. In September, China's imports from Iran dropped to 441,000 b/d, the second lowest level since December 2015, while India's imports from Iran were 576,000 b/d.
Whether Iran's energy exports are declining entirely because of the sanctions or for other reasons is unclear. Trade press reports indicate a willingness on India's part to at least partially comply with the sanctions, but China had continued to import from Iran even when previous sanctions were in effect.
In response to the announcement of sanctions by the United States, the European Union passed a statute to protect European companies doing business in Iran from the effects of U.S. sanctions. Despite this effort, data from ClipperData indicate that France has not imported any crude oil or condensate from Iran since June. In addition, Italy’s and Spain’s imports from Iran in September were 27,000 b/d and 15,000 b/d lower than their averages for the first half of the year. Some countries could continue to import Iran's crude oil and condensate until the November 4 deadline, at which point they might stop importing from Iran.
Iran's exports have fallen at a faster rate than production. Shipping operators have decreased operations with Iran, but Iran has continued to export largely through the state-run National Iranian Tanker Company (NITC) and the Islamic Republic of Iran Shipping Lines. Trade press reports indicate that as countries continue to decrease imports from Iran, some of Iran’s shipping fleet is already being used as floating storage, where crude oil is placed onto ships and stored indefinitely.
Surplus crude oil production capacity in the Organization of the Petroleum Exporting Countries (OPEC) could be used to replace some of Iran's crude oil barrels that are coming off the market. Saudi Arabia’s Arab Light is similar in composition to Iran Light crude oil and may provide refiners with a possible crude oil that would not require refiners to make significant alterations to their crude slates.
In addition, trade press reports indicate that Saudi Arabia is offering sales of Khuff condensate. However, the extent to which Saudi Arabia and other OPEC members offer enough volumes of crude oil and condensate to replace exports from Iran is unclear. After full sanctions are implemented in November, the total volumes of crude oil and condensate coming off the market will become more apparent in the following months.
Rosenberg WorleyParsons has won an engineering, procurement and construction contract from Lundin Norway and partners of PL338 for handling the modification work on the Edvard Grieg platform in the North Sea.
Modifications will enable Edvard Grieg offshore platform to receive and process oil and gas from nearby fields. Work is expected to be complete in the first quarter of 2021.
Based in Australia, WorleyParsons is an engineering services company, while Lundin Norway is an oil and gas company based in Norway.
China National Petroleum Corporation (CNPC) has signed a memorandum of understanding (MoU) with Equinor for the development of sustainable energy projects.
The two companies will work to explore the unconventional gas resources or tight gas in China and will develop oil and gas ventures worldwide.
CNPC is an oil and gas company based in China, while Equinor is a Norway-based petroleum and wind energy company.
KBR’s UK-based subsidiary has secured a front-end engineering design (FEED) services contract from BP for the development of the Tortue field hub / terminal located off the coast of Senegal and Mauritania.
FEED work will assist in the final investment decision (FID) for the project.
The deal also includes a provision to transit the contract to an engineering, procurement and construction management (EPCM) agreement in future.
Based in the US, KBR is an engineering, procurement and construction company.
Saipem has received three offshore engineering and construction (E&C) contracts worth $400m in Azerbaijan, the North Sea and the Republic of Congo.
In Azerbaijan, the Saipem consortium comprising Saipem Contracting Netherlands, Boshelf and Star Gulf has received a subsea, umbilical, riser and flowline contract for Absheron field development.
On behalf of the Tolmount Development Partners, Humberside Gathering System provided a pipeline engineering, procurement, construction and installation contract to Saipem in Southern North Sea for development of the Tolmount Main gasfield.
Eni Congo provided a maintenance, modifications and improvements contract to Saipem for all Eni Congo offshore sites in the Republic of Congo.
Saipem is an oil and gas industry contractor company based in Italy.
Equinor has agreed to sell 77.8% stake in the King Lear gas discovery in the Norwegian Continental Shelf (NCS) for $250m to Aker BP.
The King Lear gas discovery lies in production licences PL 146 and PL 333 of the NCS and is estimated to contain recoverable resources of 77 million barrels of oil equivalent.
Equinor is an energy company, while Aker BP is an oil exploration and development organisation. Both companies are based in Norway.
If you’re looking for a new job in the oil and gas industry, you must ensure that you have the right application letter that opens a window of opportunity. A role in the oil and gas sector is highly specialized, so a regular application letter will not catch the attention of the recruiter. To grab eyeballs, your letter should have all the right ingredients to get you the interview call from the company you have been eyeing. If you are unsure about how to go about it, then here is a detailed guideline:
What is the purpose of the application letter?
An application letter is your first introduction to the company. It must answer the following questions and provide clarity on the same:
In the application letter, do not restate what you’ve covered in the resume. Although, you can give a sneak-peak into your resume by emphasizing your key skills.
How to begin?
Before you begin, remember: Be original. Do not copy and paste the template. Carefully list down the job requirements and note down your achievements and qualifications that match the expectations.
Components/format of a job application
Here is a list of components that you must include in your job application to the oil and gas sector.
The above components will give you a clear idea about the information that you will require to make your application stand out.
Detailed guideline to compose the letter for oil and gas industry
Use a technical CV format
In the oil and gas industry, technical expertise is in high demand. Exploration and production profiles in energy companies require electrical, chemical, mechanical engineering. Now with automation and digitization, IT skills are also in demand. The technical CV format is easily available online and it highlights the relevant technical expertise right at the beginning of the letter format. However, if you don’t find a ready-made format, always include your technical expertise in your cover letter, preferably in the first paragraph itself to highlight your credibility.
Highlight your willingness to travel
Numerous job roles in the oil and gas industry are available in remote locations. The head office is usually in a major city of the developed nation. However, the working centers are in developing nations. Oil and gas recruiters prefer candidates who are willing to work at remote locations and are flexible with traveling. So, highlight relevant experience where you have worked in remote locations. However, if you are a fresher, you may highlight evidence that proves your willingness to travel. You should mention it clearly, that you are internationally mobile and can relocate to any place based on the need.
Commitment to industry and relevant expertise
Oil and gas jobs need a highly qualified, skilled and dedicated workforce. Highlight your work experience that shows your dedication to the industry. Also, highlight your intention to work in this industry in future and your plans to upgrade your skills to stay relevant. Mention any training and development programs that you have been a part of.
Focus and optimize your application
The Oil and gas sector generally has openings in the roles of scientists, engineers, business people/managers, mathematicians, and analysts. Define clearly what job role you are targeting at and what relevant skills you have. Learn about the popular keywords pertaining to your job role and ensure the right usage of keywords in the application.
Show you are future-ready
The oil and gas industry is witnessing many changes due to digitization, automation, social media boost, millennial-workforce entry, big data management, virtual and augmented reality. These changes will impact future job responsibilities and roles. So, highlight your skills that show you are future-ready. Include all new-age skills, relevant experience, certification, training programs that you have undertaken that will boost your chances of selection.
Do not forget to follow-up
Following up after you have mailed your application letter is a must. Be aggressive in your follow-up by stating in your application that you will be following up within a week. However, if the employer has mentioned a process or a timeline for announcement of the shortlisted candidate, then mention ‘you look forward to their response.’ Please make sure you specify clearly how to reach you.
The oil and gas industry has numerous job opportunities if you have the right skills, attitude and talent to work and thrive in this dynamic industry. Just work on your application, customize it based on the specific need and you are good to go. If you are looking for any relevant job openings in the oil and gas sector, do check out the NrgEdge platform.