Oil & Gas Division (formerly Petroleum & Drilling Engineering Division) annual reports

OIL and GAS DIVISION

Annual report for 2016

Board membership

Gareth Hinds, based in London, joined the Board with effect 15th June 2016. Steve Bedford completed his second four year term as Division Chair and stood down, in accordance with Institute practice, on the 5th July 2016. Andrew Sturgeon was nominated by the Board as Chair, this nomination was accepted by the Institute and Andrew took up the role of Chair on the 6th July 2016 with Ian Merchant as vice chair.

At the end of 2016 the Division Board members were: Steve Bedford, Craig Durham, Margaret Copland, Babs Oyeneyin, Martin Cox, Ian Merchant, Andrew Duncan, Muhammad Ejaz, Andrew Sturgeon, Melissa Freeman (formerly Walker) and Gareth Hinds. All Board members are members of the Institute.

Board meetings

London and Aberdeen 1st March, attendees: Steve Bedford, Andrew Sturgeon, Craig Durham, Ian Merchant, Babs Oyeneyin, Muhammad Ejaz, Margaret Copland and Melissa Walker.

London and Aberdeen 23rd March, attendees: Steve Bedford, Andrew Sturgeon, Ian Merchant, Babs Oyeneyin, Muhammad Ejaz and Margaret Copland.

London and Aberdeen 14th June, attendees: Steve Bedford, Andrew Sturgeon, Ian Merchant, Muhammad Ejaz, Melissa Walker and Craig Durham.

London and Aberdeen 30th November, attendees: Steve Bedford, Craig Durham, Andrew Sturgeon, Muhammad Ejaz, Margaret Copland and Melissa Freeman.

Minutes of the Board meetings were posted on the Division microsite.

Activities during  2016

Technical programme

The Division was active throughout 2016 delivering technical presentations and student seminars as detailed in the Appendix. At each event there was a recruitment stand, with recruitment particularly successful at the student seminars. In total 296 students and professionals attended events organised by the Division across 6 different sites.

Web-site developments

The Division web master (Margaret Copland) ensured that the Division microsite was continually updated with fresh relevant news articles, presentation material, events information, links and Board papers. At the year end the Division micro site remained in the “top ten” most popular Institute sites and received recognition from the Institute for the quality and frequency of refresh.

Engagement with technical community and/or local societies

As shown in the Appendix the Division continued to maintain a close working relationship with the Mining Institute of Scotland due to the large number of Division members based in Scotland. The Division also worked closely with the Aberdeen based local societies of the: Energy Institute, Institute of Corrosion Engineers (ICorr), Institute of Mechanical Engineers (IMechE), the Society of Petroleum Engineers (SPE) and the International Coiled Tubing Association (ICoTA). Board members who were also members of ICorr raised the profile of the Institute at National ICorr events. 

The Division continued to maintain working relationships with MinSouth and the Midlands Institute of Mining Engineers to engage with Division members based in England. The Oil and Gas Division is a member of the International Minerals and Mining Association. The Division handed over the Chair of IMMa during 2016 as Martin Cox prepared to take on the role of Institute President.

Contributions to IOM3 house journals

The Division provided regular contributions to Materials World throughout the year.

Other

The Division continued to work closely with the IMechE on areas of mutual technical interest. A joint paper on shale gas well integrity was published and presented at a joint Shale Gas Summit hosted at the IMechE offices in London. The paper was communicated to Parliamentarians from both Houses at a breakfast briefing hosted by the IMechE in their London offices. Following the much publicised difficulties facing the UK steel industry the Division worked with the IMechE on the potential utilisation of welded casing in UK wells. Note that the UK no longer has the capability to manufacture seamless pipe in the required sizes but could manufacture welded pipe. The Iron and Steel Division were made aware of this project but decided not to engage. The project was ongoing at the year end.

In line with the Institute strategy to increase technician membership the Division Board continued to support the student forum at Fife College. The Forum held meetings throughout the year, undertook Industrial visits, attended trade events and technical presentations.

Recruitment was a key priority for the Division. As detailed in the Appendix the Division delivered a number of student presentations. In addition the Division was refreshed and re-issued at the year end.

Strategy and Objectives for 2017 and Beyond

Opportunities and constraints

The Division continued the trend of year on year growth with a 6% increase during 2016 to a total membership of 2517 at the year end relative to 436 members when the Division Board was established in 2007. The Division Board believed that the continued increase in membership was due to a combination of factors including the following:-

  • Professionals wanting to gain professional Qualifications to enhance their CV during the ongoing Industry downturn.
  • Members leaving the Industry who found they had more time available.
  • Increased media coverage of oil and gas with numerous articles on the impact of the drop in oil prices along with shale oil and gas development.
  • Increased visibility of the Institute through Division activities and engagement with students.

The Division Board continued to focus on both identifying and responding to the requirements of the existing members, while also identifying and actioning opportunities to recruit new members. The first priority of the Division Board was to sustain and continuously enhance existing successful offerings. The second priority was to develop new offerings, as detailed below.

The Division membership in the UK was split fairly evenly between the North East of Scotland, South East of England and the rest of the UK. The Division had established an active programme in the North East of Scotland over a number of years. The Board had determined to increase Board membership in the South East of England and then build activities in the South East of England. The objective of a balanced Board, split between Aberdeen and London, was achieved in 2016 along with the transfer of the Chair to London. The Board was in position to start building London based activities and utilise the Warren Street offices. 

The primary constraint to further growth was the time that members and the Institute staff can commit. The Division Board recognised the benefits of the Institute Governance changes and reorganisation. The Institute membership and communications departments continued to provide excellent support. In addition the Board viewed the following as constraints to continued growth:-

  • Companies working in the Oil and Gas sector had significantly reduced headcount. A large percentage of the Professional Engineers have left the Industry and a significant proportion are unlikely to return. Furthermore Companies have reduced funding and support for Institute activities. As the Industry comes out of the downturn the demands on the remaining Engineering resource will severely curtail the time available for Institute activities. 
  • There were multiple Institutes working in the Oil and Gas sector and decision makers tended to support their own “heritage” professional body.
  • There was limited career enhancement through gaining the professional qualifications offered by the Institute and participation in the continuing professional development activities. Unlike the United States the European Union and Regulators had not made the professional qualifications and continuing professional development offered by the Institute mandatory in the Oil and Gas sector.
  • The American Society of Petroleum Engineers (SPE) globally dominated the Oil and Gas sector. The SPE had linked up with the Energy Institute and was offering an increased level of service to Oil and Gas Engineers, including: a route to professional UK registration as a Chartered Engineer and model codes of safe practice/guidelines.

Specific targets for 2017

Firstly the Division Board agreed to continue the approach of sustaining successful activities through 2017. Secondly the Division Board recognised that while large number of students had been recruited over recent years data from the Institute membership department indicated that retention was around 7% when the students moved into employment. The Division Board decided that the priority, or theme, for the upcoming two year period would be retention of younger members. To progress these two themes and align with the objective to offer support to all members the Board agreed the following targets for 2017:-

Sustaining Activities:

  • Technical seminar at the Robert Gordon University.
  • Seminar at St. Andrews University.
  • Support the Oil and Gas student forum at Fife College.
  • Maintain the Division microsite.
  • Seminar at Heriot Watt University.
  • Awareness of the benefits of IOM3 membership to ICorr members through joint activities, ICorr website and the ICorr conference.
  • Produce an educational pack on corrosion management in oil and gas operations.
  • Deliver a paper on the use of welded casing in UK wells with the IMechE.

Development Activities:

  • Increase the University technical seminar programme targeting Universities with relevant courses
  • With the Younger Members Committee develop a mentoring programme to support female and/or younger members.
  • Hold a technical event in the “Mine” at the Warren Street offices.
  • Produce a refreshed slide pack to promote the Division.
  •  

Specific targets for the 3 years beyond 2017

The Division Board reviewed and refreshed the Division plan to 2020 in the first half of 2016. In light of the UK decision to leave the European Union and the emerging potential for an upturn in the Oil and Gas sector the Division Board reviewed the plan at the November Board meeting and decided to refresh the plan out to 2022 to align with the approach of two yearly focus areas as detailed above. For the four years from 2019 to 2022 the Division Board saw the potential focus areas as follows:-

  • Sustain and build on successful events/offerings.Increase Industrial and Academic accreditations.
  • Increase Board representation and activity in the North of England.
  • Identify and progress opportunities to further engage overseas members.
  • Increase academic course input outwith Scotland.
  • Input to and drive the development of British Standards relevant to the Oil and Gas sector.

Specific targets for the three years beyond 2017 were as follows:-

  • Maintain Division membership above 2000.
  • Maintain the monthly Division microsite hits above 500.

Other matters

The Division Board refreshed and re-issued the Board Structure and Modus Operandi in June 2016.

A.Sturgeon

31st March

Appendix: 2016 Technical Programme

Date

(DD/MM/YY)

Status

(Held

/Progressing

/Planned)

Title

Location

Organising  Division(s) /Committee(s)

/Collaborators

Financial Underwriter (IOM3/

Local/

Other)

100%

Target No's

Actual No’s

23/2/16

Held

UK Shale Gas Summit.

IMechE London

O&G / IMechE

IMechE

40

45

3/9/16

Held

Oil and Gas Industry overview.

St. Andrews University

MIS Trust / O&G

MIS Trust

50

70

13/10/16

Held

Oil and Gas career insights.

Heriot Watt University

O&G / MIS

Heriot Watt University

50

60

9/11/16

Held

Well servicing.

AECC, Aberdeen

O&G

ICoTA

25

19

10/11/16

Held

Subsea Engineering and an introduction to drilling & well operations.

RGU, Aberdeen

O&G

BP

25

23

29/11/16

Held

Failure Analysis – don’t be let down by corrosion.

Palm Court Hotel, Aberdeen

O&G / ICorr / MIS

Icorr

45

79

Notes:-

 

MIS:              The Mining Institute of Scotland.

ICoTA:          International Coiled Tubing Association.

RGU:             The Robert Gordon University.

O&G:            Oil and Gas Division.

AECC:          Aberdeen Exhibition and Conference Centre.

IMechE:        Institute of Mechanical Engineers