Summary

This blog discusses challenges in the oil and gas industry, such as talent retention and skill gaps, and how workforce development can enhance safety and operational excellence.

According to the latest figures gathered by Predence Research, the global oil and gas market is valued at USD 27.94 billion as of this year. Despite the steady shift toward greener energy, the industry is still projected to hit USD 47.82 billion by 2034 at a healthy CAGR of 5.52%. According to the U.S. Energy Information Administration, the surge in global energy demands due to rising temperatures is one of the key drivers of this growth.

The industry, though essential, is a source of some of the world’s worst ecological disasters, such as the Deepwater Horizon incident, the 2005 Texas City Refinery Explosion, and the Macondo Well Blowout which originated from weak workforce training.

The key to Improving operational excellence in this sector is to address the primary challenges that plague it, namely, safety risks, skill deficits, and the sheer operational complexity of operations involved, and the best way to go about it is with a robust workforce learning and development strategy.

Table of Contents:

The Main Challenges Preventing the Oil and Gas Industry from Achieving Operational Excellence

The oil and gas sector is currently battling multiple workforce-related challenges that are impeding efforts to achieve operational efficiency. The chief among them are:

1. Talent Retention

Due to the nature of its work, the oil and gas industry is struggling to attract and retain a younger workforce. According to McKinsey, the industry is facing a major challenge in retaining “younger” top talent, who expect meaningful roles, better work-life balance, and development opportunities–which the industry’s traditional structure struggles to meet.

2. Knowledge Loss

Above leaves an industry with an aging workforce whose majority are nearing retirement, creating a situation whereby critical skills generally acquired from long service years will never be transferred to the next generation, causing the situation to become worse knowledge loss.

3. Skill Gap Amongst Technological Shifts

The advancement of technology by automation and AI has changed many industry processes. Although this is in itself good, the more significant staff, especially the elder workforce, lack the necessary skills to derive the maximum benefits from these new technologies.

4. Stringent Safety and Compliance Requirements

The industry is mandated to adhere to global (and local) standards like OSHA (Occupational Safety and Health Administration), ISO 45001, and IADC Rig Pass–all of which require continuous safety training, which is difficult to implement without a robust workforce learning and development strategy.

Also Read: How to Create an Effective Instructional Design for Your Employees?

How Can Workforce Learning and Development Help Achieve Operation Excellence?

Leveraging the latest workforce learning and development technologies is the key to overcoming the above challenges and the other less obvious ones. Here are five proven ways to achieve operational excellence in this sector.

1. Improve Safety and Compliance

As mentioned earlier, anything short of operational excellence in this sector can lead to devastating consequences. Advanced safety simulations, using a combination of AR/VR technologies and video-based learning, can decisively prepare the workforce for high-risk situations like oil spills, fires, and equipment failure.

These forms of training will also help them comply with global standards that this sector is subjected to. In addition, metrics obtained from these training sessions can help organizations in this sector further refine and improve their safety strategies.

2. Address the Skill Gap with Online Corporate Training

The nature of work in the various categories of this sector (up, middle, or downstream) does not leave opportunities for all employees in this sector to come in for in-person training sessions. This is where online corporate training helps allow employees across the sector to access essential oil & gas workforce training resources from wherever they are.

These platforms are scalable and feature Artificial Intelligence in their learning and development environments, which helps deliver tailored learning experiences for each employee.

3. Stem Knowledge Loss with Leadership Training and Development

As experienced professionals retire, the knowledge they possess is lost if not effectively passed on to their successors. Through initiatives like mentorship programs as part of corporate training solutions, these experienced professionals can pass on critical knowledge to the next batch of leaders.

4. Improve Workforce Engagement

Workforce learning and development, especially when imparted online, can solve two major hurdles facing the industry today. The first is the issue of retaining younger talent that expects convenience above all else. Online learning allows them to access critical training materials anywhere. This clicks the convenience check box and also shows them that the organization is willing to invest in their development which also helps in retaining talent.

In addition, Innovative learning solutions like gamification, microlearning, and AI-powered modules tend to increase training engagement in the younger generation which does tend to have lower attention spans.

5. Address Skill Requirements Proactively

Artificial Intelligence in learning and development is a major leap forward in workforce training. With its analytics capabilities, it helps organizations assess individual competencies, identify skill gaps, and develop and deliver targeted learning interventions as and when required. It also enhances onboarding processes, reducing the time required to integrate new hires into this sector’s complex operations.

Also Read: 7 Points to Consider While Implementing Just-in-Time Training for Employees

Summing it Up

Attaining operational excellence in the Oil and Gas sector is not impossible and can be attained with an efficient workforce learning and development strategy. Using the right platform that offers all the aforementioned technologies can help you address the key hurdles that come in the way of doing so– addressing safety risks, plugging any skill gaps, and preventing knowledge loss.

If you are looking for the right partner to help you do so, look no further than Hurix Digital. We specialize in cutting-edge workforce learning solutions tailored for the oil and gas industry and provide everything from immersive safety simulations to AI-powered corporate training platforms.

Our crack team of experts will ensure that your workforce is prepared, engaged, and on track to achieve your operational objectives.