1. Future of Oil and Gas in the North Sea and the Potential Challenges for HR professionals
Employment Eye Event, Aberdeen, May 2018
Stuart Payne – Oil & Gas Authority
Alix Thom – Oil & Gas UK

2. Global Context
Population continues to grow: Projected to grow from 7 billions (today) to 10 billion by 2055 (2.5 billion in 1955)
Today 1.1 billion people have no access to electricity
Today 3 billion people use firewood or similar for heat & cooking
Paris climate change agreement to limit temperature rises to less than 2 degrees C above pre-industrial levels
Key role for hydrocarbons remains
Renewables fastest growing source
Industry (50%) biggest consumer of fuel
and feedstocks
Heating (29%) second biggest
Transport accounts for the rest (21%)
Sources: BP Energy Outlook 2018, United Nations Population Division, Shell Energy Transition Report 2018

3. Global Context
Source: BP Energy Outlook 2018

4. Context – the UKCS Oil price Government response Government response
2014
2015
2016
Crisis
2015 – Emergency Response
SCT & PRT Reduced
£20m for Seismic
£180m for OGTC
2017
£5m OGA Data & Studies
Decom Tax Transfer
Fightback
Stability
Wood Review
£1.3bn Fiscal Package
£20m for Seismic
Scotland’s Expert Commission
HMT Driving Investment
Industry outcomes
2017 23
2016 22
1.65 73 16
2015 26
1.6 71
Unit operating costs ($) 21
Production
(MMboepd)
E&A
wells
Production efficiency (%)
2014 31
1.4 65 30
Sources: OGA 2018

5. Vision 2035 & Future Projections
Realise full hydrocarbon potential of the UKCS
World class
competitiveness
Expand service sector range, market coverage, double exports
Increase the prize by half again over the next 20 years

6. Potential challenges for HR professionals?
Long term attraction – the brand & image of the sector (our role in the journey to a low carbon economy)
Skills – now and in the future:
Risk of inflation – knee-jerk reactions are not our friend
Leadership through enormous change
Digital
“All Energy”
AI & Robotics
Remote Operations
Advanced Software

7. Meanwhile, back at the ranch…
Compelling story – global, North Sea and decommissioning
Workforce engagement
More joined up industrial relations
HR led education and cross fertilisation
Within companies
Through supply chain
Across sectors
Skills shortages
Gender pay gap
Employment status –
Definition of employment status for employment rights
Possible extension of IR35 changes to private sector

8. Taylor Review
This Photo by Unknown Author is licensed under CC BY-NC-ND
This Photo by Unknown Author is licensed under CC BY

9. Review of Modern Working Practices – 6 themes
Security, pay and rights
Progression and training
The balance of rights and responsibilities
Representation
Opportunities for under represented groups
New business models
Review looked at 6 themes.
Government said that the panel ‘set out a compelling case that now was the time to place quality of work on an equal footing with quantity of work when measuring success. The overarching ambition was that all work…should be fair and decent with realistic scope for development and fulfilment.

10. Government response – 4 consultations
Agency workers recommendations (9th May)
Enforcement of employment rights (16th May)
Measures to increase transparency in the UK labour market (23rd May)
Employment status (1st June)
response-to-the-taylor-review-of-modern-working-practices

11. Employment status Issues with the current employment status regimes
Legislating for the current employment status tests
A better employment status test?
Employment status for employment rights
Defining working time
Defining self-employed and employers
Alignment between tax and employment rights?
64 questions!!!

12. Extension of IR35 to the private sector
This Photo by Unknown Author is licensed under CC BY-ND