Investing in training in the oil and gas industry is not merely a fair-weather luxury that can be scaled back with impunity when the economic tides change, Phil Andrews, chief executive officer of Get Energy, has told attendees at Get Energy: Exploration and Production 2009.


In the opening address to representatives of the energy industry from more than 30 countries, Mr Andrews explained that while the financial sector can cut back on networking parties and the automotive industry can reduce its consultancy budget, oil and gas companies know that to cut training during times of economic adversity is to stockpile problems for the future.

He told his audience: "It's not a 'nice to have' when the weather is fair. Those who think it is and who have cut their spending as a result, have very short memories and will be forced to return and spend far more simply to catch those who did not."

The gravity of his comments finds historical precedence in the last major oil price crash in 1986, when barrel prices plummeted 60 per cent in less than 12 years, bringing swathing job cuts and operational reductions throughout the entire energy sector.

The American Association of Petroleum Geologists put the number of redundancies suffered in the Texan industry in the year that followed at 175,000, with this impulse to scale back mimicked in countries around the world.

And while the industry consolidated during the economic slump, cutting exploration and production budgets while simultaneously shedding staff numbers, the last misery came as many companies found themselves without the skills, manpower and technology to meet the rapid uptick in demand coming out of the slump.

Mr Andrews iterated this to attendees and reminded them that history also teaches another lesson: oil prices always recover.

His insistence that the industry will be supported over the long term by the globe's burgeoning energy use was redolent of comments made by fellow chief executive officer Tony Hayward of BP, who reminded the oil and gas industry that "the future is not cancelled", and that in order to meet the global demand for oil, gas and renewables tomorrow, the sector will need to invest heavily today.

"At BP we have been managing volatility for 100 years, in good times and bad. The next year or two will be challenging, but we are well-placed to meet that challenge," he assured investors and the industry in a speech made at CERAWeek 2009.

In turn, BP's commitment to investment in exploration and production and their employee base has been echoed by many of the world's largest energy firms, who have announced record budgets for the coming year.

Rex Tillerson, chief executive of ExxonMobil, recently told investors that the company would be investing between $25 billion and $30 billion annually over the next five years to meet future energy demand.

So too, Mike Bowyer, director of Halliburton, reassured the Scottish parliament's economy, energy and tourism committee that his company and a consortium of other energy firms operating in the country would continue to invest in training throughout the downturn to avoid the mistakes of the past.

In comments cited by the Press and Journal, Mr Bowyer told the committee:"It's fair to say that in previous downturns there has been an attendant drop in investment in ongoing maintenance and upkeep. Whatever happens in this downturn we can't take our eyes off the safety ball."

Applauding the attendees of the fifth annual Get Energy global education and training event for their recognition of the importance of maintaining training investment, Mr Andrews concluded by inviting them to use the summit to make new connections and build the bridges between companies, universities and governments that would ensure that they can weather the downturn and flourish in the future with the help of a highly skilled workforce.

5th Global Education and Training event for Oil and Gas: Exploration and Production