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Energy Industry – Oil & Gas
Energy Industry – Oil & Gas
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Agenda • The Industry Challenges • The failure to address those Challenges • Case Studies • The Solution • How NetD fits in • The competition • Selling into Oil & Gas • Competence Vs Compliance • How to Demo
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Challenges at first glance
– Changes keep occurring within the industry that impacting the potential consequences and risks of workforce accidents:
• More severe process conditions - higher temps and pressures • Larger and more complex facilities and procedures • More inhospitable regimes - deeper waters and colder climates • Greater financial and resource challenges as competition
increases
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Challenges at first glance
– Workforce safety issue becomes more critical than ever. Accidents frequently happen because of various subjective factors:
• Carelessness or recklessness • Delays in equipment maintenance or repair • Failure to give proper training • Failure to properly communication • Safety procedures not in place or current • Insufficient training be delivered to workforce in far remote
locations • Supply Chain partners workforce training hard to be covered
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Challenges at first glance
– No single certifying body: • Well Control • Helicopter Underwater Escape Training (HUET) • On-Shore & Off-Shore
– Well Control example: • Initial push on e-learning is on Well Control. • Regulations are changing and will be covered by IADC &
IWCF (overarched by WCI). • New regulations come into force in January 2015.that • Level 2 can be covered by e-learning run online • Exams traditionally classroom based can be moved to online • Competence Versus Certification. • Slate & Supervisory Assessment
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Fail in addressing those challenges… • BP Oil Spill at the Mexico Gulf in 2010 • Facts:
– 200 million gallons of crude oil was pumped into the Gulf of Mexico for a total of 87 days
– 16,000 total miles of coastline been affected – The initial oil rig explosion killed 11 people and injured 17 others – Over 8,000 animals (birds, turtles, mammals) were reported dead just 6
months after the spill – BP is responsible for close to $40 billion in fines, cleanup costs, and
settlements as a result of the oil spill in 2010, with an additional $16 billion due to the Clean Water Act.
• Causes: – Poor quality control and training – Safety procedures not in place – Strong reliance on contractors/partners, but weak in partner workforce
training management
• “Stronger regulations could have helped prevent the catastrophe.” – U.S. Coast Guard and Bureau of Ocean Energy Management
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Fail in addressing those challenges… Oil & Gas Offshore Accidents: • 2001 - P36, sinking of semi-submersible, 11 fatalities • 2005 - Bombay High, ship collision with platform and riser fire, 22
fatalities • 2007 - Usumacinta, jack up collision with platform, 22 fatalities Oil & Gas Onshore Facility Accidents: • 2003 - Chongqing, sour gas blow out, 243 fatalities • 2004 - Skikda, explosion on LNG plant, 27 fatalities • 2005 - Texas City, explosion on refinery isomerisation unit, 15
fatalities • 2009 - Nigeria, pipeline explosion, 100 fatalities • 2009 - Jaipur, explosion in gasoline storage area, 12 fatalities • 2010 – Congo, gasoline road tanker overturned, 230 fatalities
>25% of accidents in the industry occur in drilling activities
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Underwater Challenges you are ACTUALLY facing… • Insufficient Risk and Compliance Management:
– Being in an industry that suffering from high consequences of poor quality control and training, processes, procedures and compliance programs need to be well designed, implemented and managed.
– Frequently changing industry regulations and complicated & diversified regional government regulations make the issue more critical
• Insufficient Supply Chain Workforce Training Management – An industry with strong reliance on supply chains, but training to partner
workforce has never been enough
• Insufficient Information Systems and Communication Technologies – Limits in info sharing because of harsh working environment and
disconnected workforce in remote locations. – Independent IT systems between the corporate and its supply chain
partners
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More severe process conditions
Larger and more complex facilities and procedures
More inhospitable regimes
Greater financial and resource challenges
Carelessness or recklessness
Delays in equipment maintenance or
repair
Failure to give proper training
Supply Chain partners workforce
training and management
Failure to properly communication
Safety procedures not in place or
current
Insufficient training to workforce in
remote locations
Surface Challenges
Surface Challenges
Underwater Challenges
Insufficient Risk and Compliance
Management
Insufficient Supply Chain Workforce
training Management
Insufficient Info & Communication Technologies
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Case Study mobile – disconnected workforce
• CLIENT – Fugro Group, a Dutch multinational providing geotechnical,
survey & geoscience services to oil, gas, mining & construction industries
– 2010 revenues of €2.28bn • CHALLENGE
– Need to deliver on-the-job learning, assessments & competency-driven performance development
– Remote workforce often in locations with no connectivity – 13,500 users with at least half of them in the field at any given
time
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Case Study – Competence versus Certification
• CLIENT – Khafji Joint Operations (KJO) is a joint operation
between two national companies — Aramco Gulf Operations Company and the Kuwait Gulf Oil Company, which oversee the Saudi and Kuwaiti interests in the venture, respectively.
• CHALLENGE – Establish and maintain maximum sustainable crude oil and gas
production capacity not only in a reliable fashion, but also in a manner flexible enough to economically meet existing quotas and respond to fluctuations in global demand,
– ��Manage and develop reservoirs in full compliance with international standards and practices,
– ��Continue long-term exploration to evaluate the hydrocarbon potential of the area, while maintaining oil and gas reserves
– ��Rehabilitate and maintain all operational, industrial and community facilities in compliance with the appropriate, functional and reliability standards.
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Case Study – remote on premise • CLIENT
– Incorporated as a limited liability company on May 17, 1989, to harness Nigeria's vast natural gas resources and produce Liquefied Natural Gas (LNG) and Natural Gas Liquids (NGLs) for export.
– Considered one of the most important economic projects being carried out in Nigeria. • CHALLENGE
– A wide range of disciplines need to convey to employees of several key functions including human resources, shipping, engineering, LNG operations and health and safety.
– Traditional classroom/instructor led training was still the major way to pass knowledge to employees, causing
• Really high training cost • Employees of both corporate and supply chain partners located in far remote
locations cannot really be covered.
– Most of the employee locations with poor infrastructure and limited internet connectivity
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All you need are here:
- Build comprehensive Risk and Compliance Management programs - Programs need to be properly tracked , audited and reported
- Adapt a supply-chain wide technology strategy - Use technology to increase training coverage to remote supply chain workforce
- Supply-chain wide technology strategy - Data analysis tool to provide timely , accurate, reliable and complete reporting to top management
SOLUTIONS
Insufficient Risk and Compliance
Management
Insufficient Supply Chain Workforce
training Management
Insufficient Info & Communication Technologies
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The Solution - Build systematic compliance, governance and risks control training programs to both corporate and supply chain partner employees to ensure business compliance, regulations and risks are understood, processes , procedures and technology are aligned.
- All operational and regulatory training procedures to be distributed, accessed, legally completed, audited and reported and documented.
- Adapt a supply-chain wide technology strategy: Need a flexible, extensible, scalable, and adaptable info and communication system to achieve business-process modeling, automated notification, data access and sharing, and visualization and maximize the potential benefits of the collaboration between an corporate and its supplier organizations
- Procedural training analysis and reporting is needed to ensuring business management are kept informed as to whether all employees are within operational and legal regulatory compliance.
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What & How we can help? • NetDimensions Extended Enterprise + SDK
– Make your supply-chain wide technology strategy comes true
– Effectively keep the supply chain partners workforces under compliance and regulated.
– Make sure training be delivered to both corporate and partner employees but under personalized learning experience • NetDimensions Analytics
– Provide comprehensive training analysis and reporting to ensure business management are kept informed and supported
– To ensure Information reported to management, the board and stakeholders is accurate, reliable, timely and complete
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The Competition • Saba • CSOD • Success Factors – SAP strong vertical • Atlas • Many small players – typically custom
content specialists with home made not fit for purpose LMS – white label opportunities
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Selling into Oil & Gas • Get alliance/relationship with niche content vendors
– Oliennium – Part of Petrosfac – http://www.ihrdc.com/
• Focus of mobile & transitory workforce – mEKP & Slate
• Emphasise Competence versus certification – Competency Management is seen as specialist domain
• Accidents usually happen when people are certified but not competent.
• NTS focus on technical job profiles rather than softskills is a tick in the box
• NeTD has strong global reference in the oil & gas vertical
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How we can help? Competence Vs Compliance
• Learning Management System (LMS) – To manage regulatory training and
compliance in a safety critical environment.
– All operational and regulatory training procedures can be distributed, accessed, legally completed, audited and reported and documented within one robust system • NetDimensions Mobile Solutions
– For disconnected workforce in remote locations
– Supervisory Assessments – For workforce with poor
infrastructure and internet connectivity
– For workforce always on the move
How to Demo
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Areas of Functionality to Demonstrate/Discuss • Accessibility
– Mobile: mEKP – Mobile: Slate App with Supervisor Assessments – Mobile: Browser – Configurable language settings
• Compliance – Exams & Evaluations – e-Signatures – Certification (expiration/renewals/grace periods)
• Organisational profiling – Onboarding/Offboarding: Auto/group enrol – Job profiles and competencies including Learning
Path
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Areas of Functionality to Demonstrate/Discuss • Collaboration
– Knowledge centres – Links to Intranet/Extranets, Wikis, social media, etc
• Integration – Portals / HR-ERP transfers
• Reporting – Learning, Exams & Compliance Reports – Dashboards – Compliance Analytics – NetDimensions Analytics
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References Supply-Chain Management Issues In The Oil And Gas Industry http://www.cluteonline.com/journals/index.php/JBER/article/viewFile/2552/2598 http://www2.worksafebc.com/portals/petroleum/Statistics.asp
Top 10 challenges in O&G Industry • http://www.intelligenthq.com/latest-news/top-10-challenges-in-oil-
and-gas-industry-in-2012/
• http://www.rpsgroup.com/Energy/Services/Advisory/Downstream/pdf/RPS-Final-Hazard-White-Paper_Nov2010_combined.aspx
• http://www.iadc.org/well-control-institute/
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References http://www.rpsgroup.com/Energy/Services/Advisory/Downstream/pdf/RPS-Final-Hazard-White-Paper_Nov2010_combined.aspx http://www.lawyersandsettlements.com/lawsuit/oil-and-gas-accidents.html#.U6vgy3miSbZ Oil & Gas Value Chain: http://www.petrostrategies.org/Learning_Center/oil_and_gas_value_chains.htm
