President's column The aging of our industry’s workforce and the near-term disappearance of the related knowledge base and experience are apparent when examining the data on SPE members’ age distribution (excluding student members). Fig. 1 shows that the “big crew change” is well under way with the Baby Boomers* preparing to leave our industry. It is estimated that the potential outflux in the next decade will be as large as 50% of those who are currently employed in the industry. The chart also shows a developing second peak where Generation Y* enters the industry in recent years, with a low for the Generation X* segment of the workforce. Our industry lost a generation of workers in the 1980s, and now it is obvious that the rate of skills replacement is not adequate. Demographics in other sectors are similar to SPE’s. Charles Davidson, the CEO of Noble Energy, says, “There are about three per cent of the American Association of Petroleum Geologists members who are around 80 years old, and we may be needing them!” (Rhodes 2007). To sustain a planned expansion in investment estimated at USD 200 billion over the next 15 years, the industry is poised to recruit a large number of new talent. According to Lee Hunt, president of the International Association of Drilling Contractors, just the offshore rigs currently under construction will require an additional 17,000 new people not currently employed in our industry (Duey 2008). This talent squeeze can slow down the industry’s growth. The current economic downturn has only delayed the wave of retirements and has resulted in a slowdown in hiring that may have somewhat masked one of the most significant challenges facing our industry today—inspiring talented young people to join the industry and prepare to lead it into the future. *Baby Boomers are those born in the mid 20th Century, following World War II. Generation Y is the group born during the period 1976–95. Generation X is roughly defined as those born during 1965–80.
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