inefficiency in ab o&g?

[79ford]

http://calgaryherald.com/business/en...dstream-assets


Not exactly entirely sure what goes on at the head office besides accounting,legal, marketing and HR. But how does a company have 189 head office people and only 109 people running the physical operation outside calgary?

There is enough people in these guys head office to assign a manager to keep track of every operations employee and have another 80% of the staff twiddling thumbs in head office.

[sillyak]

Originally Posted by 79ford

http://calgaryherald.com/business/en...dstream-assets


Not exactly entirely sure what goes on at the head office besides accounting,legal, marketing and HR. But how does a company have 189 head office people and only 109 people running the physical operation outside calgary?

There is enough people in these guys head office to assign a manager to keep track of every operations employee and have another 80% of the staff twiddling thumbs in head office.

Because junior and intermediate producers usually use 3rd party or consultants for everything. I worked for a junior that had about 60 office staff in Calgary and 1 field guy who just oversaw all the 3rd party operators, workeover, completions and drilling consultants.

Big guys like Shell will train drilling and completion supervisors and have them be actual employees. Smaller companies usually use a 3rd party consultants and contract operators.

[sillyak]

Re read the post. You definitely aren't involved in the oil patch. Pretty much everything a producer does goes on at the head office. Geology/exploration, reserves, programming for drilling/completions/workovers/abandonment, midstream planning ect. The oilfield service companies that they hire are the ones who actually go out and do the things needed to pull the oil out of the ground.

[79ford]

Originally Posted by sillyak

Re read the post. You definitely aren't involved in the oil patch. Pretty much everything a producer does goes on at the head office. Geology/exploration, reserves, programming for drilling/completions/workovers/abandonment, midstream planning ect. The oilfield service companies that they hire are the ones who actually go out and do the things needed to pull the oil out of the ground.

Those were company employee numbers excluding contractors.... and pou isnt really a junoir.

[79ford]

Originally Posted by sillyak

Because junior and intermediate producers usually use 3rd party or consultants for everything. I worked for a junior that had about 60 office staff in Calgary and 1 field guy who just oversaw all the 3rd party operators, workeover, completions and drilling consultants.

Big guys like Shell will train drilling and completion supervisors and have them be actual employees. Smaller companies usually use a 3rd party consultants and contract operators.

Is that company still in business or turning a profit?lol

[79ford]

I am curious as i have no clue how much management it takes in calgary to run an oil and gas company relative to the people that run the physical operation.

The numbers seem alittle heavy at head office?? The place i work for runs about 50/50 and we thought we were heavy on managment

[Okotokian]

Originally Posted by 79ford

I am curious as i have no clue how much management it takes in calgary to run an oil and gas company relative to the people that run the physical operation.

The numbers seem alittle heavy at head office?? The place i work for runs about 50/50 and we thought we were heavy on managment

I think it would depend on the type of assets, how much exploration is being done versus just ongoing operations, whether the company traditionally uses more of their own labour or hires contractors. I think it's pretty hard to judge the appropriate ratio from the outside. I'm quite sure nobody is carrying much "fat" these days.

[histyle]

Originally Posted by 79ford

I am curious as i have no clue how much management it takes in calgary to run an oil and gas company relative to the people that run the physical operation.

The numbers seem alittle heavy at head office?? The place i work for runs about 50/50 and we thought we were heavy on managment

It takes far more people than necessary due to the fact that oil & gas is the most heavily government regulated industry in the country. It takes a lot of manpower to ensure a company is being compliant. Remove some of the redundant regulations, and this industry would be way more efficient than it is.

Chances of that happening with any government; be it federal or provincial, liberal or conservative, are slim and none. Once pigs know where a trough is, they'll always come back for more.

Our tax codes aren't getting simplified either. More manpower required. Safety regulations= more manpower. Environmental regulations= more manpower. WCB, OH&S, AER codes, ground disturbance..... the list is virtually never-ending, with redundancies everywhere.

[coreya3212]

189-109... They need to double their managers. Isn't that the ratio the government needs to run?

[The Elkster]

Head office has

Executives
Legal
Joint venture
Surface land
Minerals
Drilling/Completions Engineering
Exploration/production Engineering
Geology (geologist and geophysicists)
Production accounting (count the bbls)
financial accounting (count the $)
Accounts Payable
Marketing
Procurement
IT
Health and Safety
Facilities/Pipeline Integrity and construction Engineers
Acquisition and Divestiture group
and...........HR

May be a few more but that's the bulk of it.

[MountainTi]

Originally Posted by sillyak

Because junior and intermediate producers usually use 3rd party or consultants for everything. I worked for a junior that had about 60 office staff in Calgary and 1 field guy who just oversaw all the 3rd party operators, workeover, completions and drilling consultants.

Big guys like Shell will train drilling and completion supervisors and have them be actual employees. Smaller companies usually use a 3rd party consultants and contract operators.

Many of the large ones do as well, including shell.