Transforming Traditional Training Methods to Meet the Needs of a Modern Industry
Authors: Cotten William B. 
Published: October 2008

As the oil industry has continued to consolidate over the last 20 years, company profiles, core competencies, and the very demographics of many companies have changed radically. This is true throughout the industry involving operating companies, service companies and drilling companies. As hydrocarbon reserves continue to become more challenging to exploit, the importance of technology plays an ever increasing role in E&P operations. As the technical complexity increases many companies are unwilling to support the budgets necessary to maintain non-core technologies in-house. Some companies have found it more efficient to out source through service companies whose technology is a core competence supported by research and engineering. Mergers and acquisitions that are driven by the strategic need to acquire reserves and or markets, require tremendous rationalizations in the resulting workforces to reduce unnecessary numbers of engineers, technical and administrative staffs. Many operators are trimming engineering staffs whose primary responsibilities are now focused on finding replacement reserves. The operations of mature fields are being outsourced to independents as well as to service companies whose profiles are changing. However this trend removes the low risk environment that has traditionally served as the training ground for new engineers. Again outsourcing results in the reduction of excess engineering staffs. In many cases this results in a younger, well educated workforce who lack broad diverse experience. In their strive for efficiency, many companies have changed the demographics of their work force leaving them without the experience needed to mentor younger engineers. The increased technology, acquisitions, downsizing and efficiency along with outsourcing are all contributing factors to the skills gap we are experiencing in the E&P industry today.

Introduction

Many companies view training as just another necessary expense, not really something that contributes directly to generating revenue. Most personnel are trained because the employer needs a specific skill. Sometimes a behavioral change is needed or training is mandated or legislated such as safety. In other cases training is a reward for good performance, and the employee is sent on a one week seminar in a field of his/her interest. Many view this as a kind of "training vacation". There are however some companies who view training as an investment; an essential element in their workforce strategy. These are also the companies that have performance management programs, and management is actively involved in the training and development of the companies workforce.

"The focus of training is to help employees improve and develop knowledge, skills, or competencies for their current jobs. Training can be conducted in both formal and informal learning settings, which include on-the-job activities. The delivery systems used in training can include computer-based training, satellite programs, employee self-directed learning, and on-the-job training."1

Formal training programs often attract the most ambitious young graduate engineers. Many of the companies that view training as just another necessary expense, recruit graduate engineers expecting them to already have the skills necessary to do the job.