The tens of thousands of layoffs over the last year in the oil patch are not unique in the fact that they occurred so much as from where. For certain, jobs have been lost from oil and gas producers-majors and independents alike-but one key difference during this most recent industry downturn has been the consolidation activity and resulting layoffs from oil and gas services and supply companies.
According to Fortune magazine, oil and gas services and supply companies ranked high among the firms with the biggest workforce cuts announced so far in 2015. The magazine's ranking, published Oct. 2 and containing data from all industries current through Oct. 1, showed Schlumberger Ltd. making the list twice: once for its cut in January of 9,000 employees, and again in April for plans to let go of another 11,000 workers. In August, Schlumberger reported plans to acquire Cameron International Corp. in a deal valued at $14.8 billion (OGJ Online, Aug. 26, 2015).
Baker Hughes Inc. made Fortune's list for its January announcement of 7,000 layoffs, while Weatherford International in February reported the severance of 4,000 employees.
Halliburton Co. was another firm making the list twice: first in February with plans for 6,400 layoffs, and again in July with another 3,800 cuts. Late in 2014, Halliburton and Baker Hughes signed a definitive agreement to merge in a deal valued at $34.6 billion (OGJ Online, Nov. 17, 2014).
Renewed focus
Assuming with a fair degree of certainty that a large portion of those so far dismissed from the oil and gas industry's workforce are from the Baby Boomer Generation, then recruiters have their work cut out for them once oil prices rise and capital spending budgets again loosen. After all, up until Generation-Y reached working age, Baby Boomers comprised the largest wedge of the workforce. Now, it's the millennials' turn to dominate the market. Without doubt, these twenty- and thirty-somethings will have some rather large gaps to fill.
It's this editor's hope that the oil and gas industry learns from past mistakes of not sufficiently rebuilding its workforce following market downturns, and focuses its attention on attracting, training, and retaining young talent. Once oil prices rise again, and the dust settles from the numerous company consolidations, it should be the millennials on which companies might best focus the most light. Some examples of this trend of industry focusing its efforts on Gen-Y have recently crossed OGJ's news desk. A few of the more interesting items follow.
Advanced degrees in energy
Late last month, Texas A&M University reported the establishment of two new interdisciplinary graduate programs in energy: the Master of Science in Energy and the Certificate in Energy.
The degrees are designed "to introduce students and professionals to a broad spectrum of important energy issues, ranging from energy technologies based on fossil and nonfossil resources, to sustainable energy technologies, as well as their interactions with energy economics, entrepreneurship, law, and policy," the university says.
Texas A&M Pres. Michael K. Young explains, "By bringing together partners from a broad spectrum-including industry, government, and public policy arenas-and providing intensive interactions with these graduate students, we are helping create cutting-edge solutions to some of today's most pressing, global challenges related to economic stability, national security, and other critical areas."
More information about the in-residence programs, which are slated to begin next fall, is available at energy.tamu.edu/education.
Changing spaces
And if a shiny new degree isn't enough to spark a young person's interest in oil and gas, some insist that the properly designed work environment is.
Oblong Industries Inc. is one of many workspace design firms that tout as a perfect recruiting tool an open-office setting, with low or no partitions, and meeting spaces with multiple screens and wireless video connections to distant offices.
These "millennial-friendly workspaces" accommodate the young group's "collaborative, social, and tech-centric work style," according to Oblong.
Higher education aspirations and snazzy workspaces notwithstanding, the oil and gas industry would serve itself well not to lose sight of developing one of its most important assets: people.
Steven Poruban | Managing Editor-News
Steven Poruban was hired as staff writer for Oil & Gas Journal in October 1998. Two years later, he was promoted to senior staff writer. In October 2004, he was then promoted to senior editor. He now serves as managing editor-news.
Before working for OGJ, Steven was a reporter for Gas Daily and editor of Gas Transportation Report. He attended Boston University then transferred to and graduated from Ursinus College in Collegeville, Pa., with a BA in English in 1993.
