Human resources

Survey Identifies Industry Skill Gaps

Employees place great emphasis on training and development opportunities when choosing employers, and lack of training and skills development could hamper the oil and gas industry’s short-term potential for production growth.

Employees place great emphasis on training and development opportunities when choosing employers, and lack of training and skills development could hamper the oil and gas industry’s short-term potential for production growth. Those were two of the key findings in a survey of industry professionals designed to build a current picture of the level of skills in the global engineering community and determine the importance that the oil and gas industry places on learning and skills development. The survey was conducted by SPE and sponsored by BP. Of the respondents, 47% were engineers and 25% were managers.

The survey confirmed that a wide range of skills are important for a successful career in the oil and gas industry, and that employees place great emphasis on training and development opportunities when choosing employers. The ability to learn, teamwork, communication skills, work ethic, and technical skills are some of the most important skills required for a career in the industry. Universities play an important role in equipping graduates for the start of their career and are seen to be particularly good at providing computer skills, knowledge, technical skills, and analytical skills. Upon starting a career, the majority (86.8%) of employees require training, even if only a little. Most survey respondents (82.4%) said they expect their employer to provide them with some of this training, which tends to be a combination of formal and informal. Only about a tenth (11.1%) expect the employer to provide all of their training.

Two-thirds (65.7%) of respondents said they have received formal training, which consists of technical training (76.5%), soft skills training (57.8%), and management and finance training (44.3%). Outside companies deliver the greatest share of this formal training. Formal technical training is mostly delivered by a mix of outside companies, workshops, on-the-job training, and internal training programs. Soft skills training often is provided by outside companies (28%) or internal training programs (24%). Of the formal training received, technical training was rated the most important in helping to meet the daily responsibilities of their job role. A majority of respondents (76.8%) said they are satisfied with the formal training they received, particularly the quality and content. However, improvements could be made to increase training budgets and the amount of training and time made available, as a tenth of survey respondents said they are dissatisfied with these aspects of training programs and opportunities.

Training and development opportunities are key to finding and keeping employees. Three-quarters (74.6%) of respondents said that it is important in their choice of role, and over half (53.3%) said that a lack of opportunities would be enough for them to consider leaving.

Training in unconventionals development, deep water, enhanced oil recovery/improved oil recovery, and heavy oil are expected to be some of the major sources of upstream production growth over the next 5 years. Importantly, there is awareness of the skill gaps that the industry faces in these areas, which if not rectified could affect production growth.

Detailed Findings

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Fig. 1: Importance of skills for a career in the oil and gas industry.

Survey respondents commented on the general skills necessary for a successful career (Fig. 1). A majority of respondents think a wide range of skills is important for a successful career in oil and gas. However, ability to learn, teamwork, and communication skills are perceived to be the most important skills for success.

Universities are perceived to be doing well at equipping graduates with computer skills, knowledge, technical skills, and analytical skills to help them at the beginning of their oil and gas career. The areas where universities are seen to not be doing well include providing graduates with initiative, flexibility, writing skills, and a work ethic; more than a quarter of respondents perceive universities as doing not well in these areas (Fig. 2).

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Fig. 2: Performance of universities in equipping graduates for the start of their career in oil and gas.

In terms of training, a majority (82.4%) of respondents expect their employer to provide some training when starting a new role. Only 11.1% expect their employer to provide them with all the necessary training. More than a quarter (26.8%) expects to be responsible for their training and development, with the employer providing some (Fig. 3).

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Fig. 3: Expectations regarding training and development when starting current job role.

  • Two-thirds (65.7%) of respondents have received formal training in their current role (Fig. 4).
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Fig. 4: Levels of training.

  • Of those having formal training, three quarters (76.5%)  are receiving technical training, while a further 57.8% are getting soft-skills training and 44.3% management and finance training.
  • Software training (17.6%) and technical courses/programs (12.6%) are the main types of formal technical training being received in their current role.
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Fig. 5: Usefulness of formal training to meet the day to day responsibilities in current role

The formal training received was seen as helpful in helping staff meet the day-to-day responsibilities of their current job roles. Just over 60% said formal training has been very useful to them in their current role (Fig. 5). Most respondents said they are satisfied with the formal training they have received in their current role. Quality (81.5%) and content (78.6%) of training are the areas that respondents said they were most satisfied with. But some improvement could be made to the amount of training provided, which received the lowest rating (Fig. 6).

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Fig. 6: Level of satisfaction with aspects of formal training received in current role

Training and Development Opportunities

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Fig. 7: Level of agreement with statements made about training.

Respondents to the survey were also asked to agree or disagree with several statements regarding employers and training opportunities (Fig. 7). Of those who said that they were dissatisfied with training opportunities that had been offered them:

  • The majority (62.1%) said they are waiting to receive technical training, which they believe they should have already received.
  • A significant proportion believe that they should have received management and finance training (46.4%) and soft skills training (34.6%).
  • The main barriers to receiving this training are budget and time constraints.
  • Nearly three quarters (64.7%) anticipate that this training will eventually be provided by their employer.

Key Skills for the Future

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Fig. 8: Areas of production growth and skills gaps.

The survey also asked respondents to identify skills gaps that the industry faces that could affect or limit production growth (Fig. 8). Awareness of skill gaps is highest among those who predict that unconventionals will be the main source of upstream growth in the next 5 years. The lack of technical skills and limited experience/knowledge were some of the main skill gaps faced within each of the areas that are expected to be major sources of upstream production growth over the next 5 years.

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Table of skills gaps