The “Great Crew Change” has been widely reported in the global scale for the upstream oil and gas sector, starting from the early part of last decade. This term refers to a sudden and irrecoverable loss of knowledge and expertise in an industry, because of the age demographics leading to a high proportion of the workforce becoming eligible to retire. The upstream industry in India is also predicted to be facing a serious deficit in technical workforce, since more than half of the sector’s hands-on technical talents will need to be replaced during this decade. The crisis is more acute in the drilling sector since the core competency for a driller is generally not part of university curriculum. The industry still depends on years-of-experience-on-a-rig to qualify a good driller. The impact of Great Crew Change to the drilling industry is simply apparent in the huge cost burden to the drilling contractors are carrying in their budget in the recruitment and retention of experienced crew. While the talent conundrum is a matter of global concern, it also creates an opportunity for a country like India where there is a vast young educated population with secondary education and ready for vocational skill programs that can lead to attractive job market. This paper will be discussing the historical perspectives of the ‘Great Crew Change’ and the collaborative initiatives required by the industry to not only to mitigate the impending talent crisis, but also to serve the national cause of developing a trained and certified man-power resource base for global market.

1. Crew Resource Management in Oil & Gas Industry
Upstream India – Drilling Sector
Presented by:
Tapas Kumar Basu

2. Slide No
Talent Conundrum
Big Crew Change
Global Issue
Upstream India
Projected Staff Shortage
How it happened
Challenges
Consequences
Driving the Change
Accidents and Fall outs
Technology
HR Initiatives
Upstream Global
Upstream India
Upstream India
Talent Conundrum
Profile of Drilling Sector
2013, Rigs and Drilling Crew
What do we need
New Framework
Value of Competence – India 2013
IADC – Knowledge, Skills and Abilities
Crew Development Needs
What is available and what is required
Need for Strategic Collaboration
New Initiatives – Year 2013
Look Ahead – Year 2014
3
4
5
6
7
8 -9
10 - 12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27

3. 


Slide No: ‹3›

4. 

2005: Average age in O&G industry is 49; among the oldest of any industry…
2015: More than 50% of the workforce are ready to retire..
Slide No: ‹4›

5. 
2010: Average age is 47 for the NOCs which constitute 80%
of upstream work force of the country
2015…………???
Slide No: ‹5›

6. 
……Short supply of competent crew and looming talent crisis
Slide No: ‹6›

7. 


Analysis of 4 decades (1974 - 2013)
74 - 80
Oil price is going up
74 - 83
Upstream is booming
85 - 89
Oil price crashes
90s
Upstream is ailing
……….Oil Industry workforce starting career
mid-80s to end-90s is virtually missing
Slide No: ‹7›

8. 










Slide No: ‹8›

9. 
More challenges as we go forward….






Slide No: ‹9›

10. 



Slide No: ‹10›

11. 


Slide No: ‹11›

12. 
Cost of Incompetence
1975 – 1980: peak in US E&P activities,
average ft/active rig went down up to 30%
Future: increased activity, frontier
technology compounded by big crew change
Globally Incompetence may lead to loss of 10% from US$ 700 billion E&P spend
Slide No: ‹12›

13. 
In the Oil and Gas accidents are lost into HSE
statistics..
Piper Alpha in North sea and Mocando in GoM
received global attention which highlighted:
Poor Safety Culture in the upstream industry
Human Factors are the primary tool for
prevention
and were the primary vector for changing the industry norms…..
Slide No: 13

14. 
Journey into Deep/ Ultra-deepwater
Exploration successes in deepwater and ultra-deepwater
Complex Rigs, Subsea Systems and Production Facilities
Expensive exploration program
Many new entrants in deepwater drilling and services
Currently, demand driven by exploration work;
Will increase manifold as development activity begin
....importance of Safety and Performance had never been so important
Slide No: ‹14›

15. 
Last decade large scale global initiatives to address the Big Crew Change had
been initiated by Governments (UK, Norway, Australia, Canada & USA),
Education Institutions (Texas Tech University, University of Calgary),
Consulting Agencies (SBC, E&Y, Deloitte, Accenture, Bain & Co etc..) and
E&P Majors, Contractors and Associations (IADC, SPE etc) :
Slide No: 15

16. 
2006 – PWC & Petrofed
“Workforce Sustainability and
Crew Management in Upstream
Oil and Gas Industry”
Common Findings
2007 – Hewitt & Oil PSUs
“Compensation Benchmarking
and Attrition..”
Aging Workforce
Scarcity of Skills
2009 – FICCI and UKIBC
“Framework of Vocational
Education..”
Lack of Vocational
2010 – Booz & Co
“Big Crew Change and Talent
Crisis in India’s Oil and Gas
Sector”
Education
Slide No: ‹16›

17. 
Total Workforce (x 1000) -->
42
Upstream India: E&P Budget and Total Workforce
11
10
40
9
38
8
36
7
34
6
Source: Indian P&NG Statistics
2012 - 13,
GoI, MoPNG, Economic Div
32
30
2005
2006
2007
2008
2009
2010
2011
2012
E&P Budget (bn US$)
44
5
2013
4
“Big Crew Change” …..it will not fix by itself
Slide No: ‹17›

18. 
Slide No: ‹18›

19. 
Rig Count
Rig Crew Count
Total (Drilling & Workover): 216
Estimated Total: 15,000
• Utlisation: 70%
• Potential for new requirement: 6,000
Total (Platf, Jack-up, Floater): 49
Estimated Total: 5,000
• Floaters 12, Jack-ups: 37
Slide No: ‹19›

20. 

The Upstream industry spends about
US$ 3 bn, 30% of the E&P budget on
drilling of wells

Crew Development:
Drilling sector employs approximately
15,000 skilled workforce
India is still a major source of drilling
crew in ME region and Africa
Experience (Long) vs Skill Certification
(Fast Track)
Migration plan for talents:
from onshore to offshore, from nonupstream to upstream services
Training for New-gen developments:
cyber rig operation, deep-water
technology, sub-sea system
Slide No: ‹20›

21. 
Estimating Value of Competence: India 2013
Total no of wells drilled
580
Drilling Spend (≈ 35% of E& P budget)
Avg. flat time as % of total time per well
Slide No: ‹21›
US$ 3 bn
20% - 40%

22. 
IADC: Knowledge, Skills, and Abilities (KSA)
List of minimum Knowledge, Skills, and Abilities required to perform the jobs for
all rig-based positions – RA to OIM
Published in Offshore Competency Training Programme
Enhanced Competency Guidelines for rig personnel confirming proficiency
levels of current work force and developing competence levels for new
entrants
Slide No: 22

23. 
Recruitment
Development
Retention
Human Capital Growth
Slide No: ‹23›

24. 

Course
No of
Schools

1. KSA Program for Rig Crew (IADC)
Drilling Technology
1
2. OIM Certification (MODU)
WellCAP (IADC)
6
Rig Pass (IADC)
8
3. Continuous Development Program (e.g
PETEX)
HUET, First Aid, Fire
Fighting, BOSIET, PST etc..
Many
4. Communication, Leadership and
Emergency Response & Crisis Management
5. Competency Assessment Program by
Drilling Contractors
6. Accreditation as per International
Standard
7. Crew Qualification in Drilling Contracts
Slide No: ‹24›

25. 

Though major stakeholders in
Contractors
developing competent crew are
E&P companies and the drilling
Regulators
E&P
Operators
IADC, SPE
contractors, the success of the
program can be achieved by
collaborative efforts to create
consensus, sustainability and value
Universities
chain
Slide No: ‹25›

26. 

Year 2013
IADC SCAC: A new subcommittee to define the KSA
for Drilling Crew;
Major Drilling Contractors
from both Offshore and
Onshore sector have started
reviewing the new framework
for the crew development
Slide No: ‹26›

27. 
…Year 2014

1
•IADC, Operators and Contractors:
Agree on the KSA or KSA-revised, progressive
2
•Contractors, Simulation Experts and Training
Institutes: Create Infrastructure
3
•Contractors:
Recruit, Train Crew as per KSA, Develop and
Implement Competence Assessment Program
(CAP) and Continuous Education Program (CEP)
Slide No: ‹27›

28. 