Kate has led global research teams based in North America, Europe, and Asia, and she has worked with energy and automotive companies, institutional investors, and start ups. During 2002–2007, the sensitivity was high, but it was positive for employment as oil prices rallied one way from US$30/bbl to US$100/bbl. “In the coming days, we plan to provide you with more specifics,” Hollub said in an email sent to staff Tuesday. Renewing the focus on the workforce lies at the very center of the talent puzzle, and the time has perhaps come to revisit the traditional talent life cycle. Email a customized link that shows your highlighted text. “They’re severely rattled,” said Christiane Spitzmueller, a psychology professor at the University of Houston, who’s studying the oilfield workforce. Basic Energy Services Inc. is trying to get creative, albeit on a small scale, by offering to throw in free rental tools for clients leasing one of its service rigs, Trey Stolz, a spokesman, said. Fill out the form below to subscribe our new daily editorial newsletter from the HPM Newsroom. But for task-based, on-demand, or transactional roles, leading organizations should consider exploiting new and off-balance sheet resource models that lower fixed cost and minimize business disruption. Expert Oil could go to negative $100 per barrel in May. The final milestone of winning the future (creating and leading the clean-energy system) is reducing emissions at end-use sectors and influencing paths to net-zero of the broader community.

Over the past five years, for example, there has been no major change in the hiring strategy or job postings of OG&C companies (figure 7). French drilling pipe manufacturer Vallourec this week said it was cutting 900 jobs, or one third of its North American workforce, after activity collapsed in the oil and gas industry. “As that happens, you’ll see continued and sharp declines in frac activity, which will take the frac crew count below 100.”. Denver metro area school and government office closures for Oct. 26, 2020, In latest hit to oil, gas industry, Halliburton lays off 130 workers at Fort Lupton facility, Snow hits Cameron Peak, East Troublesome fires Sunday, bringing critical relief, Colorado snow totals for Oct. 25-26, 2020, East Troublesome fire makes “significant” advance on east side of Rocky Mountain National Park, As Colorado wildfires burn, fears that climate change is causing “multi-level emergency” mount, Shelby Harris, Bradley Chubb air out Broncos’ “family” dysfunctions in public vs. Chiefs, Liberty Oilfield Services makes first-ever workforce cuts because of low prices, coronavirus-related drop in demand, Denver-based Whiting Petroleum files for bankruptcy as coronavirus continues making economic waves, Oil, gas industry’s woes move Extraction to cut capital spending, budget, Oil, gas industry’s economic turmoil fuels worries about fallout for landowners, communities, Tri-State announces plan to cut wholesale electric rates 8% over three years, give members more flexibility, Decisions on public lands in Colorado, across West questioned after ruling on acting federal agency chief, Colorado-based Climate Action Engine to help with tracking oil and gas emissions, This website uses cookies to improve your experience. In fact, Shell has enabled AI-based cross-skilling programs for employees, aiming to train them for futuristic roles in the company’s energy transition journey.39 Besides formal training, companies have been providing diversified exposure to business leaders by moving them to cross-functional roles every few years to enhance their value and competencies. View in article, CapitalIQ; Deloitte analysis. That's one reason why Lattea said those who are new to oil and gas should consider something else — or, if possible, develop new skills, and even go back to school. While the COVID-19 pandemic has brought a greater urgency in accelerating OG&C companies’ digitization efforts to unlock new operational gains, it has given a new mandate-cum-challenge to put people at the core and prioritize their health and safety. On the way to transforming the organization, the leaders will have to constantly probe their plans and course correct to deliver added value. Operational agility is driven by its four levers (portfolio, assets, processes, and commercial). Fuel Fix: Get energy news sent directly to your inbox. See Terms of Use for more information. According to filings with the state, in the last five weeks, at least 6,000 energy workers in Texas have been told they're either laid off or furloughed. Denver-based Whiting Petroleum said on April 1 that it is filing for bankruptcy. The US crude oil, natural gas, and chemicals (OG&C) industry employs close to 1.5 million people and hires a global cadre of engineers and scientists to unlock the earth's energy reserves.1 It was on the strength of this cadre that US energy companies were able to shift the discussion from energy scarcity to energy security. The decision was “necessary in a quickly deteriorating environment,” Chairman Edouard Guinotte said in a statement on Monday. Move toward open energy platforms: The OG&C industry is often held to ransom by brutal price cycles and painful successions of over- and under-capacity periods. The ultimate expectation is to move from a traditional oil, gas, chemical business model to a solution-driven, customer-centric energy company. The lack of pricing power for service companies is beginning to show up, as their clients look for discounts. The spread of COVID-19 has disrupted global financial and commodity markets, as well as the US oil and gas industry, now showing decline in energy demand without parallel. All quotes delayed a minimum of 15 minutes.

Transformative work, well-defined career paths, and agile working models seem to be the only way forward for OG&C organizations to thrive. Tom Bonny is a leader of Deloitte’s North America Digital Upstream and Operations practice in Deloitte Consulting LLP. In latest hit to oil, gas industry, Halliburton…, Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Twitter (Opens in new window), Click to email this to a friend (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Submit to Stumbleupon (Opens in new window). Woodside Energy, in collaboration with an oilfield service major, is leveraging a cloud platform to provide real-time field data to its specialists working remotely.30 In fact, major oilfield service companies have observed a surge in remote-work technologies, including cloud analytics, since March. The oil industry is consolidating. The CEO/chairman should bring this vision to the board and ask each member of the executive committee to align their businesses to the new vision and, most importantly, to live the new purpose (figure 11). The reduction in drilling rigs will be paired with reductions in the number of hydraulic fracturing fleets.

“Variabilize” fixed costs of support functions: In general, support functions are the prime cost-cutting targets in a downturn.

Job situation more difficult for those laid off in 2015 or later French drilling pipe manufacturer Vallourec this week said it was cutting 900 jobs, or one third of its North American workforce, after activity collapsed in the oil and gas industry. Free tools.

The main challenges aren’t complying with socialdistancing norms or working remotely, as people in the OG&C industry are used to following safety guidelines and have been operating from remote locations for years. The company has 123 drilling rigs in the field, but CEO Andy Hendricks says he expects customers — the exploration and production companies — to cut their activity with oil prices and demand at critical lows. Naysayers may call the new normal part of the industry’s cyclicality.

“Americans are simply consuming a fraction of the gasoline that they normally do.”.

Energy workers are already resilient and highly skilled. Houston Teachers Stage Sick-Out Protest To Demand Better COVID-19 Protocols, Voters Have 2 Very Different Choices For Texas’ Next Oil And Gas Regulator, Houstonians React To The Final Presidential Debate, Weekly Oil Market Crash Update: Pioneer To Acquire Parsley Energy; Oilfield Service Giants Post Millions In Losses, Climate Change, Energy Policy Playing A Bigger Role In 2020 Debates, Weekly Oil Market Crash Update: International Energy Agency Expects Global Oil Consumption Will Decline 8% in 2020, Voters Have 2 Very Different Choices For Texas' Next Oil And Gas Regulator. In a business-as-usual scenario of oil prices staying at around US$45/bbl, as much as 70% of jobs lost by the industry in the pandemic may not come back by the end of 2021 (see sidebar, “About 70% of jobs lost in 2020 may not come back by end-2021 in a business-as-usual scenario”).

She is also a member of the Council on Foreign Relations. Renewing the focus on the workforce lies at the very center of the talent puzzle, and the time has perhaps come to revisit the traditional talent life cycle. (Reuters) - More oilfield service companies dismissed workers this week and law firms braced for an onslaught of coming bankruptcies in an industry slammed by slumping fuel demand and crashing prices during the coronavirus pandemic. Reporting by Liz Hampton; Editing by Paul Simao and David Gregorio.

or, if possible, develop new skills, and even go back to school. © 2020.

Oil firms operating outside the Permian basin may be particularly hard hit by those prices, according to a survey released on Tuesday by the Federal Reserve Bank of Kansas City, which includes Oklahoma, Colorado, Wyoming, Kansas and parts of New Mexico.

Correction—The previous version of this wire service story contained a serious factual error. View in article, Deloitte Analysis based on data accessed from US Bureau of Labor Statistics. The company laid off 178 workers at its Grand Junction facility in October 2019 as part of workforce reductions across the region. ... a state oil and gas regulator. Are there any bright spots then? More than 4,000 of them are in Houston. And yet, Wright said this downturn also feels very different than the last one. Completing the “remote” loop would mean an enterprisewide integration of workflows with enhanced cloud computing for tailored analytics and secured next-generation user and data security experience. Reliance Industries Ltd. agreed to pay $1.3 billion to Pioneer Natural Resources Co. and its partner for its second purchase of shale gas assets in the U.S. in three months. Reimagined collaborations or Super Teams (humans and intelligent machines working together fruitfully) could give transformative insights and solutions. Many were already operating on thin margins, and now face customers pushing for deep price cuts. The four levers of transformation—energy transition, integrated human-machine collaboration, recoded careers, and organizational agility—could push OG&C organizations into the future (figure 4). The prize is big.

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