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Session 4: Employment and Skill Development

Session 4: Employment and Skill Development. Harry Pastuszek. Local Content Policies in the Oil, Gas, and Mining Sector. Oil and Gas Challenge. Average age in oil and gas – 49 (highest in offshore) 400,000 professionals employed globally in oil and gas

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Session 4: Employment and Skill Development

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  1. Session 4: Employment and Skill Development • Harry Pastuszek • Local Content Policies in the Oil, Gas, and Mining Sector

  2. Oil and Gas Challenge • Average age in oil and gas – 49 (highest in offshore) • 400,000 professionals employed globally in oil and gas • Studies suggest the industry must add 11,000 new entrants annually to counter retirement and new demand – engineering and vocational skills down significantly in developed economies • Estimates vary in particulars but all suggest a shortfall of 10-15% for technical positions in the industry – and it’s growing due to accelerated retirement impacts

  3. Mining Challenge • The oil and gas scenario is not unique – miners face the same • One distinction – mining operations do employ a higher % of local people • The crunch for mining is most severe in developed markets – Canada and Australia losing to retirement at a higher rate than O&G

  4. Education and Training • Primary and secondary • Tertiary • Arts • Sciences • Professional • Law • Accounting • Engineering • Business • Technical and Vocational Education and Training (TVET) • Services Technical • Services Personal • Construction • Training typically geared to post-secondary students to prepare directly for employment

  5. UNESCO definition - TVET • "those aspects of the educational process involving, in addition to general education, the study of technologies and related sciences, and the acquisition of practical skills, attitudes, understanding and knowledge relating to occupations in various sectors of economic and social life."

  6. Drivers of the Shortage • Maths and sciences are not in demand among young people • Developed world has turned its back on TVET • The boom and bust hiring cycles of the industry have entrenched the lack of mid-career retention that plagues the industry

  7. The real story for local content • This is a perfect storm for emerging market economies to seize the wheel • Petronas/Petrofac – an example. Need to fight off ageing workforce, GCC poaching • Lengthy lead time on some new developments – actually time for training and skills development to have an impact (Moz and Tanz) • The time may be now to focus on workforce participation over supply chain participation

  8. Questions to consider • How/whether to encourage a focus on technical skills rather than professional engineering/management? Is it an either/or? • Who is the proper steward of TVET programs – MNCs engaged in the industry, national companies, Gov., MFIs? • Is enterprise always better than manpower development – is this an either/or? • Should incentives be used to steer local employment and training? if so, what kind of incentives? • What are the most relevant factors that affect the success of localization of employment? • What actions can be taken to bridge the skills gap in the short term?

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