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Slb — Schlumberger — SPE Forum: 2020 Foresight – Ensuring Educational Excellence for Upstream Engineering Resou

22 slides from Slb's conference presentation, 2012

  1. Slide 1: Challenges and Opportunities from the Industry Generation Shift

    Challenges and Opportunities from the Industry Generation Shift Presentation to the SPE Forum: 2020 Foresight – Ensuring Schlumberger Public Educational Excellence for Upstream Engineering Resources Johann Schmid Vice-President, Schlumberger Business Consulting 0 © 2012 Schlumberger Business Consult

  2. Slide 2: Key Messages

    Key Messages  The O&G industry is facing an unprecedented demographic shift – 50% of the current experienced professionals likely to retire over the next 5-10 years Schlumberger Public  This shift will require companies to attract and hire a large number of new employees – Development and integrat

  3. Slide 3: SBC HR Benchmark & Forum: 9 years of strong contribution to industry

    SBC HR Benchmark & Forum: 9 years of strong contribution to industry Quantify Supply & The Supply PTP Intensity™… Demand of Chain of Petrotechnical Talent™ Professionals Time to IOC vs NOC Schlumberger Public (PTPs)… Autonomy recruiting 2004/5 2006/7 2008 2009 2010 2011 In front of the crisis, priva

  4. Slide 4: Strong participation in the 2012 SBC HR Benchmark and Forum

    Strong participation in the 2012 SBC HR Benchmark and Forum E&P COMPANIES PARTICIPATING TO E&P COMPANIES PARTICIPATING TO THE HR BENCHMARK THE HR FORUM Services Africa 1 Middle East 5 North America Schlumberger Public 12 1 NOCs South America 13 3 20 Independents 8 12 6 Asia Europe Majors Historical

  5. Slide 5: By 2020, the generation shift will be complete: Transition from Baby-Boomers to Y-ers

    By 2020, the generation shift will be complete: Transition from Baby- Boomers to Y-ers PTPs PER AGE BRACKET ON A GLOBAL BASIS Percentage of PTPs How to plan and manage succession? 25% How to selectively retain experienced employees? How to ensure knowledge transfer? Schlumberger Public 20% + 15% – 2

  6. Slide 6: This shift is both a challenge as well as an opportunity for the industry

    This shift is both a challenge as well as an opportunity for the industry EVOLUTION OF PTPS (2011-2020) Number of PTPs 180,000 160,000 Schlumberger Public 140,000 53% of PTP population in 2020 is not in the 120,000 To be hired industry today (~80 thousand PTPs) 100,000 Post-2004 boom hires 80,000 …

  7. Slide 7: Recruiting is currently stable at around 10,000 PTPs per annum

    Recruiting is currently stable at around 10.000 PTPs per annum PTP GRADUATES GLOBAL RECRUITMENT TARGETS 2005- estimated 2017 12,000 Schlumberger Public 10,000 8,000 6,000 Demand as per 2005 to 2011 Benchmarks 4,000 Demand as per 2012 Benchmark 2,000 Demand as per 2011 Benchmark 0 2005 2006 2007 2008

  8. Slide 8: Attrition will continue to increase

    Attrition will continue to increase ATTRITION RATE 2009-2012 2012 ATTRITION BY REGION Average percentage per peer group Average percentage of respondents Independents Majors 11% Schlumberger Public NOCs 8.6% 7.5% 8% 5.0% 4.7% 4.0% 3.3% 4% 3.0% 2.8% 2.6% 1.9% 2% 1.2% 1% 1.0% 2009 2010 2011 2012 E Asi

  9. Slide 9: The shortage of experienced PTPs will remain strong…

    The shortage of experienced PTPs will remain strong… EVOLUTION OF GLOBAL O&G PRODUCTION PTPs OLDER THAN 35 YEARS OLD VS. NUMBER OF PTPS Number of PTPs 2011-2020, Normalized / Index 100 80,700 77,800 125 Global O&G production 2,900 Schlumberger Public 120 Evolution of PTPs 8,900 115 Evolution of Auto

  10. Slide 10: … across all key disciplines

    … across all key disciplines WHAT IS YOUR COMPANY’S PERCENTAGE OF VACANCY PER DISCIPLINE? Average percentage per peer group Independents Majors NOCs Schlumberger Public PTPs Other non-PTPs Estimated number of vacancies: 8,900 14% 13% 12% 11% 10% 10% 9% 9% 8% 8% 8% 8% 8% 7% 6% 6% 5% 5% 5% 2% 1% 1% 1%

  11. Slide 11: PTP shortage is an issue as companies need PTPs to grow production

    PTP shortage is an issue as companies need PTPs to grow production PTP INTENSITY: TOTAL NUMBER OF PTPS VS. OPERATED PRODUCTION Number of PTPs, kboe/d 6,000 R² = 0.9 Low growth High growth Schlumberger Public 5,000 Number of PTPs 4,000 R² = 0.9 3,000 2,000 1,000 0 Operated 0 1,000 2,000 3,000 4,000 5

  12. Slide 12: Project delays and risks continue to increase

    Project delays and risks continue to increase WHAT ARE THE CONSEQUENCES OF STAFFING DIFFICULTIES? Percentage of respondents per peer group IOCs NOCs Schlumberger Public 2012 73% 78% Delay projects 2010 55% 67% More risk-taking 2012 59% 78% because of tight staffing 2010 67% 83% Source: SBC O&G HR Be

  13. Slide 13: Supply of quality graduates will barely match industry needs

    Supply of quality graduates will barely match industry needs DEMAND AND NET* SUPPLY OF DEMAND AND NET* SUPPLY OF GRADUATES IN GEOSCIENCES GRADUATES IN PETROLEUM ENGINEERING Number of graduates Number of graduates Schlumberger Public 12 © 2012 Schlumberger Business Consulting. All Rights Reserved.

  14. Slide 14: Supply and demand of PTPs seems balanced – Tensions will be high in North America, Middle-East and Africa

    Supply and demand of PTPs seems balanced – Tensions will be high in North America, Middle-East and Africa AVAILABLE SUPPLY OF GRADUATES VS. DEMAND PER REGION 2012, number of PTPs 300 750 700 Schlumberger Public 300 -200 EUROPE -350 RUSSIA & -1,500 CASPIAN -400 100 Balance 2,200 -1,100 NORTH -200 AME

  15. Slide 15: E&P companies acknowledge the difficulty to manage the new generation of talents

    E&P companies acknowledge the difficulty to manage the new generation of talents WHAT IS THE NEW GENERATION QUOTES EXPECTING? Most quoted answers - They want to achieve quick career growth, Traditional EVP to desire wider range of development, are more Schlumberger Public EVP reinvent concerned on d

  16. Slide 16: Monitoring and reducing time to autonomy has become a priority

    Monitoring and reducing time to autonomy has become a priority HOW MANY YEARS DOES IT TYPICALLY TAKE FOR A FRESH GRADUATE TO PERFORM THE FOLLOWING TASKS? 2012, In years, average of PTPs Western independents Majors NOCs Schlumberger Public 14.7 14.0 13.1 8.5 8.2 7.5 5.3 4.8 3.0 4.1 2.1 1.8 MAKE NON-S

  17. Slide 17: Time to autonomy is falling

    Time to autonomy is falling Schlumberger Public Source: SBC O&G HR Benchmark 2012 16 © 2012 Schlumberger Business Consulting. All Rights Reserved.

  18. Slide 18: E&P companies utilize different methods to reduce the Time to Autonomy

    E&P companies utilize different methods to reduce the Time to Autonomy Schlumberger Public Source: SBC O&G HR Benchmark 2012 17 © 2012 Schlumberger Business Consulting. All Rights Reserved.

  19. Slide 19: Outsourcing and technology are used to mitigate staffing difficulties

    Outsourcing and technology are used to mitigate staffing difficulties HOW DO YOU MITIGATE STAFFING DIFFICULTIES? Percentage of respondents per peer group Independents Majors NOCs Schlumberger Public Outsource non- 71% 50% 50% core competencies Invest in new 41% 17% 60% technologies Use virtual team

  20. Slide 20: Leadership competencies are missing in all domains

    Leadership competencies are missing in all domains IN WHICH AREA(S) DOES YOUR COMPANY HAVE A LACK OF LEADERSHIP COMPETENCIES Percentage of respondents per peer group Schlumberger Public Source: SBC O&G HR Benchmark 2012 19 © 2012 Schlumberger Business Consulting. All Rights Reserved.

  21. Slide 21: The current generational shift demands a Supply Chain of Talent

    The current “generational shift” demands a Supply Chain of Talent™ to ensure business continuity at all levels in the industry THE SUPPLY CHAIN OF TALENTTM Plan future needs Schlumberger Public • Anticipate strong tensions and turbulences until 2016 Manage inflow Integrate & develop Allocate & • Rev

  22. Slide 22: Johann Schmid

    Johann Schmid jschmid@slb.com Schlumberger Public 21 © 2012 Schlumberger Business Consulting. All Rights Reserved.

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