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.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
Headline crude prices for the week beginning 9 December 2019 – Brent: US$64/b; WTI: US$59/b
Headlines of the week
In the U.S. Energy Information Administration’s (EIA) International Energy Outlook 2019 (IEO2019), India has the fastest-growing rate of energy consumption globally through 2050. By 2050, EIA projects in the IEO2019 Reference case that India will consume more energy than the United States by the mid-2040s, and its consumption will remain second only to China through 2050. EIA explored three alternative outcomes for India’s energy consumption in an Issue in Focus article released today and a corresponding webinar held at 9:00 a.m. Eastern Standard Time.
Long-term energy consumption projections in India are uncertain because of its rapid rate of change magnified by the size of its economy. The Issue in Focus article explores two aspects of uncertainty regarding India’s future energy consumption: economic composition by sector and industrial sector energy intensity. When these assumptions vary, it significantly increases estimates of future energy consumption.
In the IEO2019 Reference case, EIA projects the economy of India to surpass the economies of the European countries that are part of the Organization for Economic Cooperation and Development (OECD) and the United States by the late 2030s to become the second-largest economy in the world, behind only China. In EIA’s analysis, gross domestic product values for countries and regions are expressed in purchasing power parity terms.
The IEO2019 Reference case shows India’s gross domestic product (GDP) growing from $9 trillion in 2018 to $49 trillion in 2050, an average growth rate of more than 5% per year, which is higher than the global average annual growth rate of 3% in the IEO2019 Reference case.
Source: U.S. Energy Information Administration, International Energy Outlook 2019
India’s economic growth will continue to drive India’s growing energy consumption. In the IEO2019 Reference case, India’s total energy consumption increases from 35 quadrillion British thermal units (Btu) in 2018 to 120 quadrillion Btu in 2050, growing from a 6% share of the world total to 13%. However, annually, the level of GDP in India has a lower energy consumption than some other countries and regions.
Source: U.S. Energy Information Administration, International Energy Outlook 2019
In the Issue in Focus, three alternative cases explore different assumptions that affect India’s projected energy consumption:
EIA’s analysis shows that the country's industrial activity has a greater effect on India’s energy consumption than technological improvements. In the IEO2019 Composition and Combination cases, where the assumption is that economic growth is more concentrated in manufacturing, energy use in India grows at a greater rate because those industries have higher energy intensities.
In the IEO2019 Combination case, India’s industrial energy consumption grows to 38 quadrillion Btu more in 2050 than in the Reference case. This difference is equal to a more than 4% increase in 2050 global energy use.
Cumulative U.S. installed onshore wind capacity exceeded 100 gigawatts (GW) on a nameplate capacity basis as of the end of September 2019, according to the U.S. Energy Information Administration’s (EIA) Preliminary Monthly Electric Generator Inventory. More than half of that amount has been installed since the beginning of 2012. The oldest wind turbines still operating in the United States came online as early as 1975.
Source: U.S. Energy Information Administration, Preliminary Monthly Electric Generator Inventory
As of the third quarter of 2019, 41 states had at least one installed wind turbine. Texas had the most capacity installed, at 26.9 GW, followed by Iowa, Oklahoma, and Kansas. These four states accounted for half of the total U.S. installed wind capacity.
In the United States, wind turbines tend to come online late in the year. Based on information reported in the Preliminary Monthly Electric Generator Inventory, EIA expects that an additional 7.2 GW of capacity will come online in December 2019. EIA also expects that another 14.3 GW of wind capacity will come online in 2020. If realized, the United States would have about 122 GW of wind capacity by the end of next year.