SCHLUMBERGER WHAT IS THE COMPANY ALL ABOUT? HISTORY
Founded by two brothers- Conrad and Marcel who were both scientists. Revolutionary idea of using electrical measurements to map sub-surface rock formations. Schlumberger initially (in the 1920s)carried out surface prospecting (geological analysis)for other ore mining industries. Now the company ,which is the world’s largest oilfield services company, does a lot more than just surface prospecting. They invent, design, engineer, and apply technologies that help customers find and produce oil and gas more efficiently and safely—often in remote and challenging locations. NOW LET US LOOK AT SOME NUMBERS!!
Schlumberger employs approximately 1,36,000 people from more than
140 nationalities . They work in more than 85 countries. The company’s revenue is around $30billion It owns 27 geo markets Runs 22 R&D centers GEO MEGASTIR SERVICES
OPERATING M-I SWACO DIVISIONS NExT
OMNI SMITH BITS
SEALS
WESTERN GECO TO WHAT DOES SCHLUMBERGER OWE ITS SUCCESS IN GLOBILAZTION EFFORTS ?
Constant innovation Heavy expenditure in Research and employee training Unique techniques used for obtaining data about oil and gas wells SCHLUMBERGER : MANAGING PEOPLE IN A CONSISTENT WAY
Schlumberger wants to have the best people in the world, and it is prepared to invest in these people. Its employee development programme for potential managers reflects this. For Schlumberger global consistency is the key. Therefore, in every location throughout the world, its people need to have the right skills and behavior to execute the strategy in the best possible way. Keeping in mind the huge number of employees the company has , we now know that employee management and training is an important aspect dictating the company’s success
So what is the strategy followed by schlumberger to accomplish this tedious task ?
Schlumberger selected Management Centre Europe (MCE) to cover one of
the key topics of its employee development programme for potential managers - managing people. WHAT DOES MCE DO?
Develops people to manage people
Conducts workshops on managing people The workshops focus on the key issues of people management in general but always with a clear emphasis on Schlumberger, its strategies and its people-related challenges to implementing strategies. MCE, together with Schlumberger, is looking at the end-to-end processes to see where further value can be added.
As a result of this, a strategy to resource local Associates and reduce travel expenses has already been created and implemented, as well as systems to manage global deliveries, quality and Associate performance. TRAINING
GLOBAL NETWORK OF TRAINING CENTRES
FIXED STEP TRAINING
ANNUAL TRAINING
INTERNSHIPS
PARTNERSHIPS global network of learning centers – Conduct courses – trainees acquire specific technical competencies
Fixed-Step Training – oilfield trainee - initially follow a fixed-step training program -lasts three years. The program blends technical, safety, personal development, business and managerial courses, and on-the-job validated training.
Importance of Internships – significant importance on internships for students at Schlumberger. (Many of the employees people start with Schlumberger this way) –Intensive off-the-job technical training. Alternatively, one may receive mainly on-the-job training interspersed with formal seminars.
Annual Training and Development – an annual training and development plan with respective managers –specific training actions for a 12-month period. training includes –classroom, self-training using the latest interactive on-line technology, on-the-job training, coaching and mentoring. NExT & SCHLUMBERGER
NExT, is a Schlumberger company that delivers complete oil and gas training and career development solutions
Schlumberger Software Training Centers -NExT has access to well-equipped, Schlumberger
software training centers located globally, where participants gain practical, hands-on experience on Schlumberger software.
Their training curriculum includes key disciplines like Geophysics, Drilling, Reservoir, Production, Facilities, Management, and Economics ,software and workflow training courses and programs using Schlumberger software tools including Petrel, Techlog, Petro Mod, ECLIPSE, and OFM. Continued…
Their facilities run multidisciplinary theory and practical training programs, which encompass classrooms, practical workshops, discipline-special simulators of field operations.
NExT also conducts geological field trips. These geology field trips provide an immersive learning environment that combines practical field studies, software training in leading applications like the Petrol E&P software platform, and visits to core laboratories.
These trips not only help the trainees develop , but also gives them a chance to take their career to an entirely different place. HRD INITIATIVES TO IMPROVE EMPLOYEE QUALITY
SCHLUMBERGER (HEALTH,SAFETY QUALITY HSE AND ENVIRON- MENT)
PERFORMANCE QUEST SNAPSHOT
HSE
GLOBAL STEWERDHIP TECHNICAL PAPERS
HSE INITIATIVES GIVE US AN INSIGHT OF DIFFERENT POLICIES BEING FOLLOWED BY SCHLUMBERGER TO CONDUCT ITS OPERATIONS WORLDWIDE EFFECIENTLY.
QUEST: Schlumberger captures its own performance data via QUEST, an online system that provides immediate consolidation of HSE information.
Accessible by all employees, QUEST monitors reporting of HSE events and Risk Identification Reports
(RIRs), facilitates investigations and records audits etc. .
GLOBAL STEWARDHSIP :
Global Stewardship describes Schlumberger’s approach to managing the environmental impact and risks associated with their operations and addressing the social needs of the communities where they live and work ANOTHER STRATEGY OF THE HRD:
TECHNICAL PAPERS-
Schlumberger has a long-standing commitment to share best practices
It does this through HSE technical papers and other means
By doing so it provides the employees with the first hand best techniques and experiences
This directs the employee towards betterment
THE GIANT IS NOT ALWAYS ALL ABOUT SUCCESS !
RECENT PROBLEMS :
Saudi Arabia – excessive production of oil – oil prices went down – other countries suffered huge losses
America’s hydraulic fracturing technology – took a plunge – revenue loss – lesser production of oil
Lesser production of oil - revenue loss to schlumberger
Revenue loss – major layoffs
DOMINO EFFECT!! FEW FACTS
Current oil price - $44
Oil prices saw a lowest of $32
In 2009 , the price was $142 which is approximately 3 times the current price
optimum price ( as decided by OPEC) to balance the budget ~ $54
Why is Saudi Arabia not willing to cut down oil production ? to benefit the non-opec countries like Brazil , it claims.
All this ultimately has some , or rather a very huge impact on schlumberger
The techniques used in the U.S and similar countries are much more expensive than those used by Saudi’s (due to the difference in availability of natural resources )
The main drillers and other oil services companies ( including schlumberger whose main base is in Houston ) depend on oil revenue for their budget
Because of the falling revenue , most of the drillers had to cut costs – LAYOFFS WHAT CAN THE COMPANY DO TO OVERCOME THIS PROBEM?
Communicate widely and often
Managers often think they shouldn’t let employees know when things are going poorly. They don’t want their workers to become discouraged. But people aren’t stupid; they know when things aren’t going well and they will understand If explained properly. Discussing and acknowledging the company’s position is the first step to keeping people involved and committed to solving problems they understand.
Provide outplacement support
The question everyone asks after a layoff is, “What do I do now?” Few people have a resume at hand and a job- hunting network mobilized. Outplacement helps them land on their feet. You’re offering help at a high-stress, emotional time. It sends a signal to them and to the remaining employees that the ex-workers are being treated as people, not as line items on a budget. Support survivors, too Employees who survive the layoffs will struggle with doubts about the company’s future. They want to know how their jobs will change. Will they now be expected to do their jobs plus the jobs of their ex-coworkers? Or will their goals be changed accordingly? What is the precise state of the company financially? Are further layoffs imminent? Their doubts will begin with their own roles and expand outward to their teams and to the company as a whole. the must address each level of concern with as much rational discussion as possible.
These are few ideas which we learned during the course period. Let us wait and see what the oil giant is going to do to deal with the layoffs!
