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Peter LloydIndependent, Falicon, France

John G. KaldiAustralian School of Petroleum, Adelaide Uni.

Beverley Ronalds,CSIRO Petroleum, Perth, Australia

Attracting, developing & retaining top technical people

• MANY TRAINING PROGRAMS IN MAJOR COMPANIES DOWNSIZED OR ARE GONE

• MOST RESEARCH CENTRES IN THOSE MAJOR OIL COMPANIES ARE GONE

• A LARGE NUMBER OF THE MAJOR COMPANIES ARE GONE (MERGED)

• MEDIAN AGE OF INTERNATIONAL PROFESSIONAL SOC. MEMBERSHIP: 52yrs

• IN 10 YEARS, MANY OF THE PEOPLE IN THE BUSINESS WILL HAVE RETIRED

WHO WILL REPLACE THEM?

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Projected World Energy Supplies

19001900 19201920 19401940 19601960 19801980 20002000 20202020 20402040 20602060 20802080 2100

2020

4040

6060

8080

100100100 BILLION

BARRELS

BillionBarrels

of OilEquivalent

per Year(GBOE)

BillionBarrels

of OilEquivalent

per Year(GBOE) Natural

GasNatural

Gas

HydroelectricHydroelectric

Crude OilCrude Oil

Solar, WindGeothermal

Nuclear Electric

1993

CoalCoal

Decreasing

Decreasing

Fossil FuelsFossil Fuels

New

TechnologiesN

ew Technologies

World Energy DemandWorld Energy Demand

after Edwards,AAPG 8/97

Careers inCareers inOil & GasOil & Gas

Will be ImportantWill be Important

Tar Sands/Oil Shales

Circa Circa 19901990

Eastern BlocQatar, VietnamYemen

54%54%InaccessibleInaccessible

46%46%AccessibleAccessible

Global Exploration AccessibilityUsing today’s New Technologies/Politics

Circa Circa 19961996

16%Inaccessible16%Inaccessible

AccessibleAccessible

C.I.S.C.I.S.(Former USSR)(Former USSR)

VenezuelaVenezuelaChinaChina

OthersOthers

The recent opening to exploration of previously inaccessible The recent opening to exploration of previously inaccessible areas has created a window of opportunity which has never areas has created a window of opportunity which has never been equaled before and likely will never be seen again. been equaled before and likely will never be seen again. In 2005 there are no politically/technically In 2005 there are no politically/technically ““inaccessibleinaccessible””areas except Arctic & Antarctic preservation areasareas except Arctic & Antarctic preservation areas

3

Global ExplorationOpportunities for Future Growth (after AAPG)

VenezuelaVenezuela

E. CanadaE. Canada

W. AfricaW. AfricaGOMGOM

N. SeaN. Sea

CaspianCaspian

PeruPeru

ArgentinaArgentina

IndonesiaIndonesia

SakhalinSakhalin

VietnamVietnam

BrazilBrazil

N AfricaN Africa

W. SiberiaW. Siberia

ChinaChina

Deepwater Plays across the GlobeTechnology

Impact

What’s In The Pipeline?

4

START UNISTART UNI

PRODUCTIVEPRODUCTIVEGEOSCIENTIST GEOSCIENTIST or ENGINEERor ENGINEERIndustry hire Industry hire

BScBSc

MScMSc

HonsHons..

3-4 years

1 year

1 year

3-4 years

8-10 year prep time for an industry professional from uni entrance!

NON-GEOSCIENCE

2%

UNKNOWN 9%

OTHER 8%

FEDERAL/ STATE

GOVERNMENT 13%

K-12 EDUCATION

2%

ACADEMIA 8%

RESEARCH INSTITUTES

1%MINERALS INDUSTRY

2%

OIL & GAS INDUSTRY gets 15% of geoscienceMSc’s; or about 600

entries/year into industry with 100,000 professional geoscientists

CONTINUING EDUCATION

19%

ENVIRONMENTAL CONSULTING FIRMS

20%

EMPLOYMENT TRENDS OF RECENT EMPLOYMENT TRENDS OF RECENT GEOSCIENCE GEOSCIENCE MASTERMASTER’’SS RECIPIENTS RECIPIENTS

From: AGI study of Geoscience Graduates from Western Universities

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UNSTABLE CAREER FUTURE

LOW TECH CAREER

DON’T LIKE BEING OUTDOORS

BETTER PAY IN OTHER FIELDS

ENVIRONMENTAL CONCERNS

Why not join the oil industry ?Why not join the oil industry ?

• … to attract strong students to O&G Masters programs

• … to make entry level graduates immediately effective when they join industry

• … to develop & retain people through their careers

In the context of those technical areas where we have some control,

what can the Uni’s & Industry do …

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International Teams working through these issues

1. ATTRACTING STUDENTS TO O&G PROGRAMS: 1. ATTRACTING STUDENTS TO O&G PROGRAMS: WHAT CAN UNIVERSITY DEPARTMENTS DO?WHAT CAN UNIVERSITY DEPARTMENTS DO?

• ESTABLISH RELATIONSHIPS / LINKAGES WITH INDUSTRY; SHOWCASE INDUSTRY TO STUDENTS

• INCREASE COOPERATION w. OTHER UNI’s, PROFESSIONAL SOCIETIES (STUDENT CHAPTERS)

• RELEVANT “CAREER USEFUL” COURSE CONTENT INTO CURRICULUM (Heath 2000)

• CROSS-DISCIPLINE COURSES; G & G, PET ENG, COMPUTER DB’s & various APP’s, RISK ANALYSIS

• PROMOTE RESEARCH & MASTERS PROGRAMS w. STRONG INDUSTRY BIAS; WORKSTATIONS TO MANAGE/INTEGRATE

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COMMON PARADIGM AT MANY UNIVERSITIES:ISOLATED, NON-APPLIED RESEARCH & TRAINING

PRESENT REALITY: RELEVANT,COLLABORATIVE RESEARCH NEEDED

8

Q Marine Data

Conventional Data

Diana Prospect

Geo-steeringNorth Sea - Joanne Field - Andrew Reservoir

Well Path

Well Path

Andrew A1 SandAndrew A1 Sand

96009600

97009700

9800980000 10001000 20002000 30003000 40004000

Horizontal Distance (ft)Horizontal Distance (ft)

MD (Entry Point to TD) = 3055MD (Entry Point to TD) = 3055’’Net Reservoir Sand = 1023Net Reservoir Sand = 1023’’Net/Gross = .33Net/Gross = .33

TVDSSTVDSS(ft)(ft)

Modified fromModified fromHolienHolien and Holmes, 1994and Holmes, 1994

Value addedValue added

$12MM$12MMBased on saved costsBased on saved costs

Microfacies Microfacies AA

Microfacies Microfacies CC

Microfacies Microfacies BB

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HiHi--Resolution Image & Log AnalysisResolution Image & Log Analysis

1m

Lloyd, 2000

Impact of Introducing New TechnologiesImpact of Introducing New Technologies

19701970 19751975 19801980 19851985 19901990 19951995 20002000 20052005 20102010 20152015 2020202000

2020

4040

6060

8080

101000

121200

141400

TBD

TBD

Production HistoryProduction History

Technology ImpactTechnology Impact

Successes in Tertiary Age Deltaic Reservoirs, USA Gulf CoastSuccesses in Tertiary Age Deltaic Reservoirs, USA Gulf Coast

Clayton, 1998Clayton, 1998

Technology Technology added added

significant new significant new reservesreserves

Projected DeclineProjected Decline

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Australian School Australian School of Petroleum / Schlumberger of Petroleum / Schlumberger Joint Training and Research Joint Training and Research

CentreCentre((UnivUniv Adelaide)Adelaide)

Synergistic Synergistic Technologies: Technologies:

Integrated Workstation Integrated Workstation ApplicationsApplications

&&VisualisationVisualisation CapabilitiesCapabilities

Building Building Integrated Integrated Geological Geological

ModelsModels

++

Cor

eC

ore

Well Logs

Well Logs

Seismic

Seismic

Bio

stra

tB

iost

rat ..

Integrated 3D Model

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WHAT CAN INDUSTRY DO?WHAT CAN INDUSTRY DO?

ENGAGE

INVOLVE

INVEST

• Teaching / Training Alliances• Provide Internships / Sabbaticals• Outsource Research

• Visits / Mentoring / Career Days / Seminars• Board / Committee Representation• Increase Company : University Dialog

• Scholarships / Prizes / Data / Equipment• Promote Professional Society Membership• Endow Chairs / Lectureships• Lobby Govt. (eg via IPA, APPEA)

2. Better preparing Graduates for

immediate impact on entering the industry,

by re-designing content of Masters Programs

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Pre-requisites• Strong first degree (Bachelors with Honors) in Mechanical, Chemical or Civil Engineering or equivalent, or a Geoscience

• Minor (or equivalent) in Natural Sciences (predisposition to cross-discipline thinking)

• Good communication skills in English

• Strong first degree (Bachelors with Honors) in Mechanical, Chemical or Civil Engineering or equivalent

• Minor (or equivalent) in Geosciences

• Good communication skills in English

Pre-requisites

Standard Academic ContentGEOSCIENCES

• Sedimentology & Sequ. Strat

• Seismics & Subsurf. Mapping

• Petroleum Systems

• Reservoir Engineering & FE

• Resource/Risk Evaluation

• Field Mapping/Develop. Project

• Research-Oriented Project

PETROLEUM ENGINEERING

• Petroleum Geoscience

• Formation Evaluation (FE)

• Reservoir Eng. & Mgt.

• Drilling Technology

• Production Technology

• Field Development Project

• Research-Oriented Project

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Pre-requisites• Strong first degree (Bachelors with Honors) in Mechanical, Chemical or Civil Engineering or equivalent

Standard Academic Content

• Petroleum Geoscience

• Formation Evaluation

• Reservoir Engineering

• Drilling Technology

• Production Technology

• Field Development Project

• Research-Oriented Project

Additional Skills• Technical writing and presentation

• IT skills and a computer language

• Ethics, QHSE, Legal & Business

• Teamwork and leadership skills

• Internship or practical project

• Integration competencies

• Professional awareness (member of student chapter)

3. Training & Development thru’ the Professional’s

career

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Research

+ Academics

Industry Experience

+

Competency

Geosciences + Petrophysics

Drilling + Production Technology

Petroleum Economics + Risk Analysis

Reservoir Engineering + Management

Dip

lom

a Bac

helo

r Mas

ters

PhD

Kn o

wle

dge

Ski ll

Adv

ance

d Sk

illE

xper

tise

Getting Started: 1-3 yrs

Broadening Skill-Base: 3-8 yrs

Keeping Sharp: 8 yrs+

Research +

Academics

Industry Experience

+

Competency

Kno

wle

dge

Ski ll

Adv

ance

d Sk

illE

xper

tise

Geosciences + Petrophysics

Drilling + Production Technology

Petroleum Economics + Risk Analysis

Dip

lom

a Bac

helo

r Mas

ters

PhD

Men

torin

g, P

eopl

e Ski

lls +

Man

agem

ent

Blen

ded

Trai

ning

+ C

omm

unic

atio

n Sk

ills

Com

pute

r B

ased

Tr

aini

ng

Tech

nolo

gy

Mas

tery

Shor

t Cou

rses

+ Fi

eld

Trip

s

Tech

nica

l Pub

s. &

ATW

par

ticip

atio

n

Reservoir Engineering + Management

Dis

tingu

ishe

d

Lect

ure

Tour

s

Broadening Skill Base-

Getting

Started

SharpKeeping

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Retaining staff

Retention in tough timesSaratoga survey of 8000 people in 35

industries: leading drivers for retention• exciting work & challenge• career growth, learning & development• fair pay & benefits• relationships & working with great people• supportive management, a great boss• pride in the organization, it’s mission &

product• great work environment or culture• being recognized, valued & respected• meaningful work, making a difference• autonomy

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Saratoga Research indicates …

• Pay usually appears as the 3rd or 4th

item in what motivates and retains people BUT jumps to 1 or 2 if any of the following are not in place:

• … Belief and trust company leadership• … Belief in career growth• … Trust & respect in the manager

CONCLUSIONSCONCLUSIONS

• COMPANIES MUST MAKE THE SAME CAREFULLY THOUGHT OUT STRATEGIC BUSINESS DECISIONS REGARDING THEIR FUTURE HUMAN RESERVES AS FOR THEIR SUBSURFACE RESERVES

• ADEQUATE SUPPLY OF WELL TRAINED PROFESSIONALS ESSENTIAL FOR A ROBUST PETROLEUM INDUSTRY

• ATTRACT TOP STUDENTS INTO MASTERS PROGRAMS• MASTERS PROGRAMS & RESEARCH MEET INDUSTRY NEEDS

• ALL STAKE HOLDERS MUST APPRECIATE THAT AN EDUCATIONAL / INDUSTRIAL CONTINUUM EXISTS. THE UNIVERSITY IS THE UPSTREAM PART OF E&P BUSINESS

• UNIVERSITIES & INDUSTRY MUST ALLIANCE THEMSELVES TO ASSURE SKILLS DEVELOPMENT OF STAFF THROUGHOUT THEIR CAREERS. KEY TO TECHNICAL ADVANCEMENT & RETENTION.

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The Future…..