Energy industry Rebuilds Workforce

By David Page
The Journal Record
Reprinted with permission
© March 12, 2007

OKLAHOMA CITY – In 2003, a task force formed by the Interstate Oil and Gas Compact Commission said regenerating the work force at all levels was one of the greatest challenges facing the domestic energy industry.

The task force was formed in 2001 by North Dakota Gov. John Hoeven to investigate a decrease in the ranks of domestic petroleum professionals – geologists, engineers and geophysicists.

Suggestions made in 2003 by the task force included a coordinated effort including industry, government and educational institutions to rebuild the work force.

The 2003 task force’s suggestions were not ignored. In a newly released follow-up report from the task force, Hoeven reported “an encouraging increase in the number of qualified petroleum professionals.”

Enrollments in petroleum-related majors at U.S. colleges are rising, according to the new report. More scholarships, internships and other programs have been added to attract students to energy programs.

Oklahoma’s energy industry has been actively promoting expanded training efforts.

Earlier this year, the Oklahoma Energy Resources Board in collaboration with Francis Tuttle Technology Center in Oklahoma City developed the OERB PetroTech Certification Program.

The program was created to provide training and certification to fill available jobs as geological, engineering or land technicians. Certification assures employers of skill levels of potential employees. Students must have a high school diploma or equivalent to qualify for the program.

“Our goal for this program is to fill a void within the industry for trained technological positions,” said Mindy Stitt, OERB executive director. “We are filling this void by providing a prospect to individuals who may not have had the desire or ability to go to college but have a desire to work in the industry.”

The Oklahoma oil and natural gas industry also is offering $250,000 in college scholarships during the current academic year through OERB.

While the pipeline of potential energy industry professionals has expanded capacity, employment levels continue to increase.
Energy production employment in Oklahoma totaled 40,500 in December, up 7.1 percent from 37,800 for December 2005, according to the Oklahoma Energy Index, a joint project of the Oklahoma Independent Petroleum Association and the office of state Secretary of Energy David Fleischaker.

Although more workers are being trained, Oklahoma energy companies are still seeking qualified employees.

“We are making progress getting professionals, but there is still a need for more workers,” said Mike Terry, president of the OIPA.
Truck drivers and technical workers are in high demand, he said.

“The big service companies are doing all they can to recruit and train employees,” Terry said.

Many trained professionals left the industry after companies cut employments levels in response to lower energy prices in the 1980s. Between 1986 and 2000, the American petroleum industry reduced its work force by 60 percent, according to OERB.
When energy prices increased, companies found a shallow pool of qualified workers and many of the employees who remained in the industry were nearing retirement age.

The Interstate Oil and Gas Compact Commission first warned of a shortage of personnel in a 1997 report. Hoeven, who is currently serving his second term as chairman of the IOGCC, formed the task force in 2001 to seek solutions to the shortage of trained energy industry workers.

“Oil and gas resources found domestically continue to be the key to the nation’s energy and national security,” said Christine Hansen, IOGCC executive director. “Without qualified petroleum professionals to fill open positions, these valuable resources may not be fully maximized.”