The oil industry faces several challenges. In addition, it’s an important sector in many countries. In the United States, the oil industry employs millions of Americans.
The United States Energy Department also acknowledges that the industry keeps American energy independent, secure, and costs low for consumers.
Challenges that the industry sees include:
- Pushback from environmental groups
- Cyberattacks on infrastructure
- Investment
- Government regulations
Overcoming these challenges requires decision-makers to implement the best management practice for their industry.
For example, some companies have put more focus on employee wellness. Companies need to recruit, train, and retain competent workforces.
Once they found the best professionals, companies started offering health screenings, wellness coaching, and injury prevention sessions.
Most oil industry workers commute long distances for their jobs. Companies can help keep their staff comfortable during the off-hours by providing stellar oil field housing.
Companies can also look at their operations and work to differentiate themselves from the competition. Plenty of market share exists for several businesses, but each still needs to make a mark on the field.
We look at a few best management practices for the oil industry.
Schedule Regular Equipment Maintenance
Most oil companies use large equipment that requires regular maintenance. Otherwise, the equipment might stop working and cost the company significant revenue.
Scheduling regular equipment maintenance is a practice that should become second nature for management.
Maintaining hoisting systems, derricks, pumps, and return lines is more cost-effective than replacing them.
Maintain a Safe Workplace
Maintaining the equipment helps maintain a safe workplace. The Centers for Disease Control and Prevention collects some occupational safety data for this field.
In 2017, the CDC found that 69 fatalities occurred on oil rigs. Since Texas has the most rigs, the state saw the most fatalities, with 44.
Thus, best management practices will focus on workplace safety.
Establish Standard Operating Procedures
Establishing standard operating procedures is one step toward maintaining a safe workplace. It outlines how workers should handle situations. SOPs also answer frequently asked questions.
Management benefits from examining industry-wide SOPs. Then, add additional guidelines that speak to their operations.
Remain Abreast of Federal and State Regulations
Companies in the oil industry face several regulations at the federal and state levels.
Some regulations that govern this industry include:
- Interstate Commerce Act of 1887
- Energy Policy Act of 2005
- Clean Air Act Amendments of 1990
- Energy Policy and Conservation Act of 1975
Violations can lead to audits, fines, and shutdowns of operations. Companies also need to invest resources to keep up with new regulations that the American government might release.
Therefore, management should keep abreast of changes and adapt to them quickly.
Hire the Best Professionals per Position
It’s already challenging to find workers for the oil industry. It’s even more challenging to hire the best professionals per position.
Nonetheless, management benefits from investing in recruiting, hiring, onboarding, and retaining the right candidates.
Each professional must understand their role in the process. Then, they must have quick learning curves that allow them to master their tools and equipment.
Moreover, they’ll value workplace safety and avoid taking unnecessary workplace risks.
Schedule Consistent Safety Training Sessions
Oil industry professionals must receive consistent reminders about workplace safety. Therefore, scheduling consistent safety training sessions is another best management practice.
Sitting through safety presentations isn’t the most entertaining way to spend afternoons. However, management can turn them into something fun to attend.
For example, management can provide snacks and lunch for the session.
Ensure that workers from the same departments attend the session, including management. It’s essential for management to lead from the front instead of behind.
Incorporate Software
Incorporating software is one way to manage the above practices efficiently from a central location. Entering 2023, oil industry managers will find a few options that suit their needs.
The software helps professionals schedule regular equipment maintenance and safety training sessions. Plus, it allows professionals to maintain a safe workplace.
Then, managers can assign roles to staff members and keep track of completed tasks.
Conclusion
The oil industry offers professionals attractive salaries and revenue. It also requires efficient managers who can keep up with federal and state regulations, hire the best staff, and maintain a safe workplace. The best industry practices involve scheduling regular equipment maintenance and safety training sessions. Then, incorporating programs specific to the company.
