Transcript PTP Effectiveness for Sustainable Growth

PTP Effectiveness for
Sustainable Growth
SPE Thailand Dinner Talk
26th March 2008
High Oil Prices
2005 $/bbl
120.0
Oil Prices
100.0
High Price
80.0
60.0
Actual
Reference
40.0
Low Price
20.0
0.0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Source: International Energy Outlook 2007 – EIA DOE
Global Rig Count
4000
3000
U.S.
2000
Canada
1000
Foreign
0
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
Source: Baker Hughes Rig Count as of February 2008
Recruitment targets for
Petrotechnical Professionals
Global Demand for Petrotechnical Professionals *
Comparison between Recruitment targets of G&G and PE 2005-2010**
12,000
10,000
8,000
6,000
4,000
2,000
0
2005
2006
2007E
Demand as per 2005 Benchmark
*Petrotechnical Professionals = Geologists, Geophysicists & Petroleum Engineers
**China excluded, Service companies excluded
Source: 2005 and 2007 Schlumberger Business
Consulting O&G HR Benchmark
2008 E
2009 E
2010 E
Demand as per 2007 Benchmark
Competition for top universities
remains fierce
Geosciences Top University*
Petroleum Engineers Top University*
Supply vs. Demand 2006-2010
Supply vs. Demand 2006-2010
10,000
10,000
8,000
8,000
6,000
6,000
Actually entering E&P**
4,000
4,000
2,000
2,000
0
Actually entering E&P**
0
2006
2007E
2008E
2009E
2010E
Demand for Geologists &Geophysicists
Supply of G&G from “Schlumberger 85 universities”
Net Supply of G&G (60% entering E&P Industry)
2006
2007E
2009E
2010E
Demand for Petroleum Engineers
Supply of PE from “Schlumberger 85 universities”
Net Supply of PE (80% entering E&P Industry)
* 85 universities selected by Schlumberger worldwide (China excluded)
** Schlumberger estimates: 60% of Geosciences graduates enter E&P industry, 40% enter other industries;
80% of Petroleum Engineering graduates enter E&P industry, 20% enter other industries
Source: 2007 Schlumberger Business Consulting
O&G HR Benchmark
2008E
A Big Crew Change
Age Profiles of Two Different E&P Companies
35%
Percent of Population
30%
25%
A Mature Company
A Young Company
20%
15%
10%
5%
0%
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
Age Ranges
45 - 49
50 - 54
55 - 60
Creating Expertise Tension
New Project Difficulties
Available Experiences
“Price War” for PTP
During Past 10 Years
For New Graduates
Salary
Inflation
> 100%
< 50%
Insufficient Experience Growth
Growth
PTP Number
PTP Experience
Time
Seeking Sustainable Growth
 Maximize Productivity
of Experienced
 Expedite Development
of New Recruits
 Optimize Deployment
& Sharing
Maximize Productivity
 Technology to Increase Productivity
 Work Processes
 Workplace Environment
 KM – Community of Practice
Expedite Development
KM – Knowledge Transfer
Structured Training Programs
Development Assignments
Mentoring / Coaching
Accelerated Development
Optimize Deployment
Expertise Inventories
Priority Projects
Growth vs. Producing Assets
Restructuring for Synergy
Outsourcing Work
Mentoring Role for Retirees
Finally, Industry in a Bubble?
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New Expertise Not Realized Until Future
Escalation of PTP Costs
Huge Investments for Uncertain Future?
Will We Have Too Many PTP?
Will We Reach a Saturation Point?
Contingency for Industry’s Downturn?
THANK YOU