Contracting Strategies for Oil and Gas Companies
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The oil and gas industry is more dynamic than ever but the demands on a limited number of people resources continue to increase. The traditional approach of hiring and training staff is becoming ineffective as the current workforce is increasingly mobile and investing in training and development provides limited return as the frequency of people changing employers increases. The popularity of contracting technical and project management among oil and gas companies continously increases and new contracting arrangements are being created.
Stay focused on your core business
One of the most flexible contracting strategies is the use of a contract company. A specialized company is given a specific scope of work to deliver, and the responsibility for the resources doing the work is with the contract company. Work can be executed in the E&P company office, remotely, or a hybrid, and the tasks can be split between specialists within the contract company to provide consistent results regardless of any staffing issues. The disadvantage of this arrangement is the day to day management of the activity rests with the contract company, so , as long as the scope of work is well defined, the advantages of a fully flexible resource provider can be realized.
"The loss of technical horsepower...can create havoc"
The days of being able to train and retain skilled employees are transitioning into a new "Gig-Economy" where employees become increasingly transient. The loss of technical or business horsepower at a critical moment can create havoc in the accomplishment of goals.
