There is a great article in Oil and Gas engineering brought to my attention by a friend Bill Johnson entitled “Thirty years later, the industry is losing its best and brightest, again.
Seems that a lot of oil and gas companies are laying off, not their youngest, but their most experienced.
From a cost perspective these people usually make more, have higher health costs due to age, and often higher pension costs for the same reason. So if you look at people like CapEx then they are just the highest costing units of production.
But people unfortunately for the oil industry are not just parts but that is exactly the signal they have now given to even those who didn’t get laid off.
Experience matters. One better decision can save hundreds of thousands if not millions of dollars.
Some in the oil industry figure that their internal training will overcome any experience and knowledge gap.
Maybe….. but not likely.