Abstract
Prerequisite for the development of production linkages in the oil and gas (O&G) industry is the existence of a skilled and experienced workforce. Resource-rich countries, however, are either in short supply or lack of the requisite local capacity. This paper adopts system thinking (ST) methodology to provide a comprehensive approach in identifying, analysing and understanding the interconnections and interrelationship among the variables affecting the challenge of human resource development (HRD) in the oil industry. The concept of feedback embedded in ST allows complex issues to be viewed as an interconnected set of circular relationship rather than the linear cause-and-effect. Consequently, ST tool of causal loop diagram (CLD) aids in visualising the understanding of HRD factors, their relationships in the causal factors and the strategies for sustainable development of domestic skills, know-how and local capacity. Policies for developing human resource in the oil and gas industry are recommended to policymakers and stakeholders.
Highlights
A UK based magazine, New African in its January 2012 edition entitled; the curse of oil, how oil companies have left Niger Delta in the lurch [1]
Policies for developing human resource in the oil and gas industry are recommended to policymakers and stakeholders
The diagram disentangles the complexity and the various factors that can affect the development of human resource in the oil and gas (O&G) industry positively or negatively
Summary
A UK based magazine, New African in its January 2012 edition entitled; the curse of oil, how oil companies have left Niger Delta in the lurch [1]. It estimated that Nigeria had squandered about $500bn of petroleum revenue with the majority of its citizens living with daily oil contamination, underdevelopment, and corruption postulated to be the causes of instability in Niger Delta, Nigeria (ibid) This conundrum of the resource curse is not peculiar to Nigeria but most resource-rich countries in the form of price volatility, Dutch disease and poor governance etc. Obiri and Bjeirmi [11] argued that resource-rich countries are promulgating local content (LC) policies to stimulate resource-based development by linking the oil enclave to the wider economy through four main pillars: employment creation, procurement of goods and services, knowledge transfer and skills development. On the other hand of LC debate, the policy violates WTO agreements such the General Agreement on Tariffs and Trade (GATT), the agreement on Trade-Related Investment Measures (TRIMs), the General Agreement on Trade in Services (GATS), and the Agreement on Government Procurement (GPA)
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