VANCOUVER, BC / ACCESSWIRE / July 20, 2020 / The world has changed dramatically since December 2019 due to the Covid-19 pandemic, resulting in the loss of human lives and the collapse of global economies. It has impacted virtually all major industries, hitting the energy sector especially hard. The post-COVID-19 world will be different in terms of new challenges, and success will come to those who adapt to a new vision for growth and survival.
In April, industry visionary and CEO of Wolfpack Solutions, Kelly Bone, extended an invitation to numerous global experts in the Oil & Gas industry with a specific purpose in mind. Bone sought to determine what separates this cyclical downturn from other downturns previously experienced in the industry, and together research the why, when, where, and who, to develop the answer to how. How can the industry generate a lasting change? Together with co-chairs, industry experts Dwyann Dalrymple and Lori Dalrymple, Owner of AOC Skills, LLC, the group embarked on a journey with the agreed-upon understanding that the Oil and Gas Industry is on the precipice of a great change. A change being driven by two forces: COVID-19 and an oversupply of oil that has resulted in oil having a negative value. The goal being to determine what needs to change for companies in the Oil & Gas industry to be able to survive this crisis, and why the companies that don't adapt will guarantee their extinction.
"This is the most important time for the Oil & Gas industry. It is the biggest pivot we have been called to make. This downturn is like no other. If our sector and its partners are to thrive, our industry must evolve their current business models. This is the reason I have called on the most influential leaders in the Oil & Gas industry to build out the Blueprint for Success" explained Bone. Experts from the Middle East, Africa, India, Australia, Europe, Egypt, and the Americas came together, making fascinating discoveries and bold predictions of where we're headed.
As companies look to create new work environment models in a digital world, it becomes even more important for them to consider their culture. "Into the future, our focus is on how to anticipate and plan for our cyclical business with the knowledge we have gained from past cycles. We are implementing more flexible and mobile work schedules for our diverse and talented workforce who are stepping up to our current challenges and continuing to deliver more efficiently and productively than ever" says Expert Think Tank Member Colby Fuser, VP of Halliburton. Fuser also mentioned, "We believe promoting a well-rounded environment where employees can focus on their health, families and work accordingly, enables a more productive workforce and allows us to continue to be the company of choice"
The Primary Objective of the Oil and Gas Expert THINK TANK Committee was to bring industry change-makers together to build the industry BLUEPRINT FOR SUCCESS in a post-COVID-19 downturn:
1. Build 1st ever manual of its kind for the energy sector
2. The industry will change forever this time
3. Allow everyone the opportunity to thrive in difficult times
4. Look at business differently
To come up with a Blueprint for Success it was important to understand the current situation in the Oil and Gas Industry:
Industry mindset right now: Saving the company is the highest priority in the short term. Cash is the driver.
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Find ways to curb the outflow of cash because of a sudden loss of inflow
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Additional reserves do not help
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Better technology may not help
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People are expendable
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Experience vs salary
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If they are not necessary to save the company, then people are released. Experience is not most important right now
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Inexperience vs salary: If an employee does not provide immediate help to save the company, then they are released.
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The industry has always been cyclic in profitability. But CoViD-19 has resulted in the following global changes:
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Reduction in face-to-face meetings.
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Reduction of profitability of primary products
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Reduced air travel
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Reduced auto travel
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Reduced activity of energy using businesses in general
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The Expert Think Tank Members devised the following as the top Opportunities:
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Increase in available professional engineers and technical staff
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Tremendous drive to seek new ways to bring revenue into companies
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Industry more open to joint funding development
After a four-hour interactive Mastermind, the Oil and Gas Expert Think Tank Team came up with this Bold Prediction.
REAL-WORLD OIL & GAS EXPERT THINK TANK MODEL FOR SUCCESS LOOKS LIKE THIS:
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·PEOPLE
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·TECHNOLOGY
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·ECONOMICS
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·BUSINESS MODELS
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·INNOVATION
People - The Gig Environment is Entering Energy
Disciplines such as Geoscience, Petroleum Engineering, Drilling, Reservoir Engineering, Process Engineering, etc. are highly skilled based, taking years to develop those skill sets. They cannot be bought "off the shelf" like other manufacturing industries. It is critical to retain the talent from these fields for the survival of the Industry in the future.
However, to cut costs without losing talent, a freelance working model can be incorporated in the oil and gas industry, with the majority of the workforce converting to a consulting model, advertising their services through networking and online marketplaces. While predictions that 50% of the workforce would be freelance by the year 2027 seemed outlandish only a few months ago, in a post-COVID-19 world, that statistic seems conservative. The leader in this project-based employment model is the Energy focused company called GOHIIVE, owned and operated by Wolfpack Solutions' CEO Kelly Bone. A concept that she has been developing for years.
"Our Expert Think Tank Team completed the PEOPLE portion of the study. The result revealed that the industry is evolving into a gig inspired model. More people are working remotely, learning to utilize other types of remote work methods, and the result is that more people are, and will become contracted employees. This is possibly the single biggest change our industry has ever undergone," proclaimed co-chair Dwyann Dalrymple, who's survived major downturns during his 40 successful years in Oil & Gas. "In the past," explained Dalrymple, "you would expect the industry to rebound when the pandemic is over and the economy rebounds, it is cyclical. This time, a ripple through the world economy caused a shift in the paradigm of how business is done. Much like the seismic shifting of tectonic plates generates an earthquake, the paradigm shift in the industry, i.e., forced a change in business models to allow for working remotely and the security challenges that go with it, an immediate halt to travel and in-person meetings, etc., has caused a global earthquake in the Oil & Gas industry, and left the surviving businesses in damage control mode, which is why the GoHiive and the Blueprint for Success are so important for success going forward."
Bone and her team of industry influencers and investors are currently putting the final touches on the industry's first-ever gig solution, accelerated during the current downturn, aimed at being officially live by August 2020. Bone is without a doubt a pioneer in all she does and isn't afraid to lean into difficult conversations or to work with high-level experts pushing for purposeful change while addressing a need for the industry she is so passionate about.
"Our engineers and industry partners deserve the opportunity and a platform to showcase their talent and skill-set while generating income. There is no way we would be where we are today without the team of industry influencers who believe in what we are wanting to create. Their genius is what keeps me pushing for change. This downturn has been the hardest of all downturns, and I feel we must do what is necessary to capture the years of experience and knowledge before it disappears. Our industry is fragmented - GoHiive will be the marketplace for energy intelligence, experience, and knowledge. Easily accessible. The oil and gas industry depends on experience and technical knowledge and for the first time in the history of our industry, we are creating a model that will change the way we do business, empowering those who have worked hard to become industry experts" shared Bone.
The Expert Think Tank members believe that GoHiive will be the sector's marketplace where companies, academic institutes, and the government will be able to find the experts they need to do a particular specialized job. GoHiive will truly bring the industry together into one place. They also predict that this will be the largest online oil and gas training and recruitment hub worldwide. Their goal is to change the industry forever.
"We have a road ahead. It is important to do things the right way, with purpose and with value. Over the coming months, we will work closely with our technical team of industry experts to ensure that the GoHiive platform is state-of-art and purposeful in all ways. Win-win for all involved in an ever-changing energy world." Bone says.
Technology - Speed of Information Propagation will Require More Security
Cost-effective state of the art technology is the key to survival in Oil and Gas Industries in an economically challenging time. A greater emphasis on AI, Machine Learning, Data Analytics, smart instrumentation, robotics, automation, advanced drilling techniques, and intelligent pipeline with surveillance are amongst the technological advancements that will start leading the campaign in the sector.
When expert Think Tank member Colby Fuser, VP of Halliburton was asked his thoughts on how technology would influence the future of the industry, he stated "Enabling digital technology is becoming more important as our business and market evolves and our work environment changes. This digital evolution will change the talent companies need, increasing their ability to differentiate which roles require critical skills and which do not. Based on this, companies can manage the workforce differently such as contingent labor versus full-time employee, key SME versus administrator type role, as well as the centralization of activities versus specialization in the country."
"Cybersecurity, more than ever, will become a necessity for all energy companies. The more the industry moves to working online, companies are rushing to protect their information and secure their employees in a digital work environment as well. Remote tech on all levels will be even more important in the future." Says Andy Larin CEO of Cyber Security All Care IT.
Economics - Volatility to be Expected Moving Forward
The world economy is already in recession. This pandemic is likely to cause a cumulative loss to global GDP around USD 9 trillion in two years by 2021 as per IMF. With no encouraging results from OPEC + countries in recent times, coupled with less demand and adequate supply of oil in the market, the price is likely to maintain a plateau for the next 2 years. Think-Tank experts anticipate that the price for benchmark crude will remain low, around USD45/50 a barrel for the next 2 - 3 years, and this might adversely affect midsize independent, along with service companies.
"Operators, service providers, and investors should consider price volatility and industry sensitivity to geopolitics in everyday life. In addition, OPEC alone isn't in control of price regulation and we're lacking the consumption of both air and marine transportation, which appears might continue for a considerable time. The adverse impact will be felt by all businesses worldwide. Specific interest areas are scientific research, oil shale, and heavy oil. Exploration and Mega Projects will be deferred for a relatively long time. Noted is a trend of IOCs to become more of "NOC"(s). It's not a pessimistic view but a realistic one! " says Expert Think Tank Member, Dr. Sameh Macary.
"Well, how this will impact people, one can only guess. Let us start with the bad news: everybody will have a loss, starting from losing some of his/her remuneration package benefits, to those who will stay with no damage to their career or their investments. The Petroleum Education and Training Industry will suffer. Traveling constraints will limit expat's exchange, hence the Industry may lose some of the multicultural potential it used to have and so many other social capabilities. Poor recruitment of fresh graduates in addition to a drastic decrease in Petroleum Engineering Education activities will lead to a catastrophic drop in skills, 5 years from now and onward!" Macary also noted.
Business Models - Ditch the Brick and Mortar
Conventional business models of the Oil & Gas industry are likely to see transformational changes in how best to do business. The concept of shared services to optimize the Capex and Opex might be a game-changer.
Companies have been given enough time to meditate on overhead and having a big flashy office may no longer be in the cards. The industry could instead evolve to the co-working space model.
"Independent contractors could be hired on a project-by-project basis and have desk space to use and hang their hats while they work," says Bone.
As we all know a co-working environment is very different than an international oil and gas office. The engineers could very well be working next to a graphic designer or gaming coder, as the workspace would be owned and managed by a third party, and not the hiring Oil and Gas Company. This is a completely different model all together yet could allow for creative innovation.
"This new reality could also present opportunities to outsource services. With the rise in mobility, we will need policies, precautions, and maintenance that we have never needed before." Says Expert Think Tank Member Colby Fuser, Vice President of Halliburton.
"Diversification of renewables is another emerging business model for many Oil & Gas Companies and we expect big investment once the oil price is corrected and recovered. Our team is also looking at this closely," says Think Tank Expert Lori Dalrymple Founder of AOC Skills.
What the Energy sector is now seeing happen is a remodeling of human resources to survive in this new digital age of doing business.
"HR responsibilities will be drastically changed as "working from home" or "be online" doesn't need a "Dress Code"! Expats shortage will give better opportunities for National Staff to take over and lead the local activities. The huge availability of virtual pools of talent may allow us to revisit an incredible number of studies and an unlimited volume of data to be analyzed, which should bring value to the Industry around the world. It is time for the Technical/Professional Societies to keep their members challenged against their technicality by guiding technical discussions and enriching the cloud of expertise and this is why GoHiive is even more important than ever. The timing is perfect!" says Dr. Sameh Macary.
Innovation - Outside the Box Thinking on the Horizon
Innovation has always reduced the risk in the Oil & Gas business. During the slowdown process, while a majority of companies put a pause on innovation to reduce the cost, a section of companies find this as an opportunity, and never shy away from investing in innovation and that's a success mantra for survival in difficult times. The application of AI, ML, Cloud computing, etc. have already started showing some encouraging results in geoscience data evaluation in terms of quality and speed, and this is to be replicated in other areas of Oil & Gas technology.
"With an open-source human capital model, cloud computing, and Artificial Intelligence all working in harmony, we could witness an ideas exchange like never before in human history. Great advancements are on the horizon for the energy sector. We have lived through other downturns and our business is a cyclical industry, the question we need to all be asking is what have we learned from the past?" says Bone.
"Historically, innovative technology solutions have always helped us to reduce the finding and lifting cost of oil and gas during a bad time. Right technology at the right time will surely optimize the Capex and Opex in upstream business during the pandemic and even after that. However, it is important to have a balance between investment in technology, and return on investment." says Expert Think Tank Member Dr. Partha Mitra
Over the next few months Wolfpack Solutions, CEO Kelly Bone will be running focused Oil and Gas Think Tank sessions around each of the predictions. The bone will draw in top experts to mastermind the issues, solutions, and future opportunities for the industry. The ultimate goal for Bone and the Expert Think Tank Members to achieve is the release of a step-by-step blueprint of proven business models from all industries for the oil and gas sector to consider as they stabilize and continue to thrive. This initiative is bold and yet critical to the survival of many energy businesses.
Wolfpack Solutions and the Oil and Gas Expert Think Tank Members will be diving deeper into each prediction and then will release their findings to the industry. Follow and learn from some of the world's energy experts. This just might be the very difference you need to make in your company for it to thrive in the new world post-COVID-19.
JOIN THE MOVEMENT! If you are interested in joining this initiative, please contact Wolfpack Solutions by visiting the website at www.wolfpacksolutions.ca and apply to be a part of the solution today or email: [email protected]
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