Sectors of industry

OPITO The Oil & Gas Academy is the focal point for skills, learning and workforce development in the industry, delivering the right skills for the industry now and in the future. It works with a wide variety of stakeholders to identify and meet the skills requirements for the global oil & gas industry. These stakeholders come from the industry itself, the government and education. The oil & gas industry´s activities are both upstream and downstream. The Academy was established by businesses in the upstream oil and gas industry. It aims to meet demands for a safe and effective workforce. The Academy works with industry employers, training providers, higher education and partnership organisations to achieve this.

The Academy´s funding comes from providing services to employers in the industry. It also works with schools, colleges and universities to ensure that the learning supply chain meets the skills requirements of the industry. To achieve this the Academy not only promotes the importance of STEM subjects (science, technology, engineering and mathematics) to students´ future careers, but also the range and diversity of business-related subjects (business studies, accountancy, ICT and craft & design) required across the industry.

The Academy supports the oil and gas industry in a number of ways:

• It shows leadership by setting industry standards. The standards provide a framework for the whole industry in areas such as Health and Safety. The standards are then developed into nationally recognised training schemes.
• It works with employers to identify their current and future workforce needs, both in terms of the number of workers and the skills required.
• It provides effective links between employers and training providers. There are currently 40 Academy-approved training centres in the UK and a further 60 centres across the rest of the world. However, this number is growing rapidly as training providers seek accreditation to deliver industry-approved standards. Each year over 100,000 of the oil and gas workforce are trained in these standards. This helps to bring about consistency in practices and increased workforce competency.
• It provides information about careers in the industry through events, roadshows and its website. It gives advice on the skills and qualifications needed for entry into different job roles.
• It also provides information on how to access the industry´s modern apprenticeships.

International Business Units deliver the Academy´s work in 28 countries across Europe, the Far and Middle East, Australasia and the USA. Although based in the UK, the Academy has gained a high profile globally. By raising awareness of the many opportunities available to young people, the Academy aims to show how existing skills and qualifications can be transferred into the oil and gas industry.

This case study shows the importance of primary sector activities in the oil and gas industry, highlighting the range of work and the skills required.

The economy is divided into three sectors:

• The primary sector involves the extraction of raw materials and natural resources. Examples of this are farming and mining, as well as the extraction of oil and gas.
• The secondary sector turns these raw materials into products. Manufacturing and Construction are secondary sector industries. In the case of Oil & Gas, this involves the processes from refining to delivery of fuel at the petrol pump. The production of oil and synthetic petroleum products such as lubrication oils and plastics also fall into this sector.
• The tertiary sector is also known as the service sector. Firms in this sector provide services to other businesses and consumers.

Chain of production

Goods move through a chain of production. This follows the goods from the extraction stage, through manufacturing into finished products and then on to the consumer. Each stage gives added value to the product. The oil and gas industry has a related supply chain. In reality, its upstream and downstream processes run across the three sectors. An example of tertiary sector activity would be the wholesale (business-to-business) and retail (business-to-consumer) trading of oil and gas.

Oil & Gas offers a diversity of employment opportunities in the UK and around the world for those interested in technical, engineering and scientific careers, such as geology, architecture, design and IT. It also provides opportunities in more creative roles in a wide range of business-related disciplines such as law, accountancy, sales & marketing, supply chain, HR and administration.

Raw materials are extracted in the primary sector. In the oil and gas industry, this means exploration (finding oil and gas) as well as extraction (drilling for oil and gas). Many skills required in this sector may be science or maths-based. However other skills such as teamwork and problem solving are equally important.

The whole exploration process requires different skills at different stages:

• Geologists and geophysicists search for new oil and gas reserves. They carry out seismic surveys and create geological models.
• Production geologists then determine the best way to produce these reserves to maximise how much oil or gas can be extracted.
• Business analysts use the data acquired to work out the most cost-effective way of extracting oil or gas. The analyst team investigates the costs for different types of production activity i.e. platforms (e.g. fixed or floating).
• Once the most appropriate set-up has been approved, production and well engineers will be involved to choose and set up equipment to start the extraction process.
• The Offshore Installation Manager oversees the whole platform operation. This includes managing people, safety and environmental issues as well as optimising performance.

Research

The oil and gas industry relies on innovation to meet the current and future needs of the industry. Research and development is therefore vital. Product and Process Researchers are often qualified to postgraduate level. They use their advanced research skills to ensure new technology and innovative methods keep the industry competitive.

• Currently, oil and gas account for 70% of the nation”s energy mix. However, there are various projects underway aimed at increasing the amount of green energy produced. This may be through the use of wind and wave power.