Skills Development in the Oil Sector

1
Skills Developmentin the Oil Sector

• Olga Svoboda
• Minerals and Energy Education and Training
  Institute
• Oil Summit, 2008

2
Governments Development Objectives

• Broad-based socio-economic empowerment
• Job creation SMME, enterprise development
• Participation ownership, control, management
• Preferential procurement
• Employment equity
• Development of management, scientific,
  engineering and other skills of HDSA
• While maintaining security of fuels supply

3
Governments Quest toRedress Past Imbalances

• Energy Policy, 1998
• Liquid Fuels Industry Charter, 2000
• Petroleum Product Act, 2003 (charter made law)
• BBBEE / DTI codes
• Skills and knowledge of the industry needed to
  implement, regulate and monitor
• Push for Compliance and Delivery

4
Industrys Development Objectives

• SAPIAs response
• Identify industry scarce skills across value
  chain
• Develop industry programmes to address skills
  gaps
• Foster supportive culture for industry
  transformation
• Communicate with stakeholders on progress
• Pull for
• continued sustainability, security of liquid
  fuels supply, availability of skills while
  meeting HR transformation objectives and
  provisions of the Charter

5
Petroleum Sector Skills Needs
Policy management/implementation/regulation
skills General management and technical skills
Industryspecific management and technical
skills Supplier development
6
Industry Scarce Skills Demand 2007-2010
7
Implementation Challenges 1

• Government aims not supported by education in SA
• No degrees/courses in petroleum industry
• No MBA, MAP, Masters or Diploma in Public
  Management with energy or petroleum electives
• No qualifications/unit standards/skills
  programmes specific to petroleum industry
• Rigid and slow SAQA/SETA structures do not help
• Lack of interest / red tape / inflexibility?

8
Implementation Challenges 2

• Reliance on petroleum industry initiatives
• Proliferation of company in house training to
  comply
• Training overseas - SA content lacking
• Sasda (supplier development) is it functioning?
  
• Leadership Oil and Energy cooperation WBS/SAPIA
  
• (General Management Advancement Programme
  enriched
• by petroleum industry module provided by MEETI)
  
• Does the petroleum sector (industry, government)
• need and want
• local petroleum-specific degrees/courses ?

9
Implementation Challenges 3

• Minerals and Energy Education Training
  Institute
• The only institution in SA offering certificate
  courses in
• Petroleum Policy and Economics
• that combine overseas and local expertise
• Not for profit organisation
• MQA accredited, courses Wits certified,
• No government or SETA funding self-funding
• In-kind support by industry, DME
• No capacity (financial) to develop full range of
  training to satisfy the petroleum sector skills
  needs

10
MBA in SA

• MBA.co.za
• Survey of 19 companies
• 63 graduates good
• 21 excellent
• 84 added value to company
• General degree preferred to industry-specific
• MEETI survey
• of dozens of training attendees

• UCT GSB
• Survey of 56 companies in 18 sectors
• 75 satisfied with graduates
• Mismatch between the MBA and the job market
• Industry knowledge gives
• head start advantage

11
Policy solutions to skills development ?

• Mixed economy - mirrors the world
• developed (1st world)/developing (3rd world)
• Redressing past imbalances
• BBBEE as a government priority
• Social responsibility/enterprise development
• Is there a need for SA-specific skills solutions
  ?
• Who should do it? Industry, DME, DOE, DOL, all ?
  
• Mutual flexibility and understanding of issues
• not push/pull relationship