June
2016
HYDROCARBON
ENGINEERING
64
THE RECRUITMENT CHALLENGE
“The refining and petrochemical industry has been in a
race to construct new plant operations, and undertake
upgrades on existing facilities in order to capitalise on the
abundance of low cost feedstock. Integrated operators have
shifted billions of dollars in capital expenditure from
exploration budgets to downstream budgets to construct
these new facilities.
“Refiners continue to conduct regular scheduled
maintenance and turnaround projects, and alongside these
necessary maintenance projects many have also faced
regulatory changes, such as lower sulfur Tier 3 gasoline grades,
and stricter carbon capture measures. These factors have seen
an increase in manpower demands to ensure project deadlines
are met. This extra demand has gone someway to cushioning
the blow felt In other sectors of the industry, creating a small
demand of much needed opportunities for skilled candidates
with transferable skills. We have witnessed a trend in the
demand for candidates with experience in project controls,
both for turnaround and maintenance projects and new build
capital projects; for example, planners, schedulers, cost
estimators and project engineers. We have also seen a demand
for instrumentation and control (I&C) and electrical and
instrumentation (E&I) engineering positions, alongside civil
construction and infrastructure engineers, as competing
projects battle to get operationally ready ahead of each other.
“Particular regions that are experiencing high demand for
seasoned and skilled professionals, especially with
brownfield experience, are Louisiana and the Gulf Coast,
Texas. With several billion dollar projects all competing for
the same skilled workforce, the skills shortage caused by the
ageing workforce population, which we have been warning
about for the last five years in the Hays Oil & Gas Salary
Guide, is evident. This gap has led to many projects bringing
back highly skilled retirees in order to fill knowledge gaps
and provide the necessary training to the younger
generations.
“While this a good time for refiners, there remains a
cautionary note in the air around the global talent pool.
However, the downstream sector provides some hope for
those skilled workers seeking opportunities, especially those
that have been laid off or made redundant during this
downturn, and we expect this trend to continue through
2016 and 2017.”
INSTITUTION OF MECHANICAL
ENGINEERS
Jenifer Baxter, Head of Energy and Environment,
outlines the engineering opportunities available in the
UK downstream oil sector:
“The UK oil and gas sector has faced a difficult few years.
The slump in oil prices has led to a drop in investment into
exploration, which has trickled through to the midstream
and downstream sectors. According to Oil & Gas UK,
North Sea spending in 2018 is predicted at just £7 billion by
2018, compared to close to £15 billion in 2014.
“Thousands of jobs have been lost and many of the
statistics are bleak, but the drop in oil prices has also
provided some opportunities for downstream companies.
Demand for products such as gasoline, jet fuel or asphalt
remains high, and the slump in costs has reduced feedstock
prices for manufacturers working to create products such as
transport fuels and petrochemicals.
“For the downstream sector, which comprises of about
200 companies in the UK, the impact of the drop in oil
prices has been mixed. With many companies seizing the
opportunity of low feedstock prices to invest in new
infrastructure, certain parts of the industry have seen new
opportunities for jobs.
“It is quite possible that oil prices will once again rise,
stimulating more investment into North Sea exploration and
subsequently into the downstream market. With as much as
20 billion bbls of oil and gas left in the UK Continental Shelf,
there is still much work left to do. But even if the oil price
remains low, the prospects for oil and gas engineers are
bright.
“The reality is that for trained engineers and technicians,
the demand for their skills is still high. With much of the
ageing UK oil and gas workforce retiring, the sector needs
more people entering the industry with mechanical and
marine engineering skills than ever before.
“The UK as a whole is facing an engineering skills
shortfall, which is affecting all UK manufacturing sectors,
including downstream oil and gas. The country needs to be
producing 69 000 more engineers and technicians each year
just to keep up with industry demand.
“With the huge shortfall the UK is facing, opportunities
for engineers will always exist. Indeed, because engineering
skills are so transferable, engineers and technicians are not
limited to working in just one industry. It is not uncommon
for engineers to work in a number of different sectors during
the course of their careers – from oil refining through to
aerospace, or even food manufacturing.
“For engineers and technicians wanting to help their career
prospects in the downstream sector, or indeed any
engineering sector, joining a professional institution can prove
hugely beneficial. Achieving Chartered status, or becoming a
registered engineering technician, gives prospective employers
independent confirmation of your skills and experience. In
addition, it can open up opportunities for professional
development, learning and networking.
“We have an engineering skills shortfall at a time when
technology dominates much of our lives and most of our
industries. Oil prices may ebb and flow, but the demand for
engineering skills looks set to stay.”
LINDE ENGINEERING NORTH
AMERICA, INC. (LENA)
Leslie Reynolds, Manager, Human Resources, highlights
the importance of developing the STEM pipeline, and
continuing to attract, develop, engage and retain
in-house talent:
“Our biggest challenge is the loss of baby boomers to
retirement and the shortage of mid-career and new
graduates in the engineering disciplines that we seek. There
is a great deal of competition for the lesser numbers of
mid-career individuals available.
“The midstream and downstream industries need to
ensure that corporate responsibility programmes strongly
support science, technology, engineering and mathematics
(STEM) education programmes, not just financially, but also by
