How Are You Preparing For The Oil Industry Rebound?

The much-promised rebound in oil prices is starting to look real.  Brent Crude has been over $50 all month.  Predictions of $60 by Christmas are looking like more than wishful thinking. Oil companies are entering their budget cycles with some level of optimism for the first time since 2014.

So are you ready to get back to work?   For many oil and gas service companies, the honest answer may be no.  We may not have the people in the right places to do the work.   By one estimate, the American oil and gas industry shed more than 220,000 jobs, but the true number may be much higher when you count trucking, construction and other providers who may not show up under the “oil and gas” category.   That is a lot of positions to fill. We’ve been to this rodeo before and we know that, when business ramps up, we see the big increase in injuries, accidents and claims.

So what should a company be doing now to take advantage of the coming upturn?  Here is a short checklist:

____ Safety Plan Review:  There have been some changes to regulations since the downturn and some new customer requirements.   More than that, operators are likely to want your safety program to follow a SEMS or other safety management format.   In most cases, I find companies already have the safety management elements; they just need to be revised and reformatted, but it can mean the difference between getting and losing a job.

____ Pre-employment and Post-Offer Testing:  Drug and alcohol testing is a must.   Depending on the job, compliance testing (audio, respiratory fit tests, etc.) may be required.  Physicals and physical assessments should be a part of your program.   Making sure new people can perform job functions is critical when there are so many new hires.  If you don’t budget for testing and have an organized process for onboarding, you risk having injury costs eat up any profits from the new work.

_____ Injury Case Management: Honestly, this hasn’t been much of a problem during the downturn.  Less work.  Fewer injuries.  More time for safety managers to stay on top of injuries.   That all changes when it gets busy.   One of the secrets of successful safety programs is that they focus on case management to keep unwarranted recordables down, help workers get well and back on the job more quickly and minimize workers comp costs.   This is the time to line up a provider who can help support case management so you can focus on preventing accidents.

____ Job Descriptions and Skills Assessments:   This may be a head-scratcher, but if you don’t have accurate job descriptions, how do you know what new hires will do?  And if you don’t have a methodology to assess workers on the particular skills that make up the job descriptions, how do you know whether you have the right people doing the jobs?   Sure, every company has a number of in-house subject matter experts who know every job inside and out. However, those people are worth their weight in gold and they won’t have time to look over every new employee’s shoulder.

_____ Operating Procedures: See above.   Too many companies rely on head knowledge, not written knowledge.  The most experienced people will be too busy to share everything they know.  You also run the risk that they will be hired away just when you need them most.  Operators and government inspectors have already said many service company SOPs are inadequate.   It only gets worse when a lot of new people head out into the field.   Now is the time to make sure procedures are correct and can guide a new employee in the job.

_____ Training:  Review your introductory training.    Does it meet your needs?   How will you make sure every new employee is ready when things get busy.    What about supervisory training?   Supervisors and mid-managers are the most important part of your workforce when new jobs start up.  They need to be ready to lead their crews.

That is a short list.  There are many other things that companies need to have ready when things pick up.  However, we need to remember that we call them “service companies” for a reason.  Service is delivered by people and having the right people ready to do the job is the most important investment you can make when business returns.

Lifeline Strategies has expertise in each of these areas.  If you want to be ready to take advantage of the upswing in the oil and gas cycle, let’s talk.   We can help develop a plan of action or provide you with solutions for any of the challenges listed above.  Contact us at info@lifelinestrategies.com or call at (985) 789-0577.

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