If you can’t increase the supply of a resource you must increase its yield

If you can’t increase the supply of a resource you have to increase its yield!

The availability of skilled trade resources is an increasing issue for many industries, none more so that Oil and Gas.

Oil and Gas has historically been viewed by many as one of the best industries to work in. High wages, good leave cycles and long term job security attracted many to the industry. Even through the industry many downturns, people were keen to return to the industry so the industry never had to change its approach. It was, in effect, an employers market. This abundance of resource has mitigated many industry problems, such as poor planning, inefficient work execution etc. The abundance of resource meant that efficiency was not essential.

This is no longer the case.

Oil and Gas is no longer viewed as one of the most attractive markets to work in. Wages are becoming less attractive, as other booming industries are now competing for the same skilled resource. Attractive leave cycles have gradually shifted to more arduous ones and the long term future of the industry is no longer as clear.

It is now an employee’s market, where demand for their skills increases and the playing field across industries is levelled. This scarcity of resource essentially means a long standing Oil and Gas paradigm has also shifted, which is that efficiency is optional not essential. Operators can no longer rely on a ready supply of resource to effectively buy their way out of the inefficiency problem, and the sooner this truth is recognised the better.

Whilst many extremely intelligent people will be working on ways to attract more people to the industry it should be recognised that this will aid but not eliminate the resource scarcity problem. (In reality it is a problem that is likely to get worse).

The best way for the industry (and actually any competing industry) to help minimise a resource scarcity problem is to accept the truth of my opening statement:

“If you can’t increase the supply of a resource you have to increase its yield. ”

Increasing the efficiency of work execution, hence increasing wrench time is the way to get most amount of work done with the scarce resources available. Any conversations about tackling resource availability has to include the honest asking of the questions:

1)What is our wrench time?

2)Can we improve it?

(The answer to the last question is always “Yes” by the way).

Given the compounding nature of efficiency improvement programs, the faster this question is asked and answered, the better.