A System Thinking Approach to Human Resource Development in the Oil Industry

Main Article Content

Kwadwo Ayeh Obiri
Bassam Bjeirmi
Prince Boateng

Abstract

Prerequisite for the development of production linkages in the oil and gas (O&G) industry is the existence of a skilled and experienced workforce. Resource-rich countries, however, are either in short supply or lack of the requisite local capacity. This paper adopts system thinking (ST) methodology to provide a comprehensive approach in identifying, analysing and understanding the interconnections and interrelationship among the variables affecting the challenge of human resource development (HRD) in the oil industry. The concept of feedback embedded in ST allows complex issues to be viewed as an interconnected set of circular relationship rather than the linear cause-and-effect. Consequently, ST tool of causal loop diagram (CLD) aids in visualising the understanding of HRD factors, their relationships in the causal factors and the strategies for sustainable development of domestic skills, know-how and local capacity. Policies for developing human resource in the oil and gas industry are recommended to policymakers and stakeholders.

Keywords:
System thinking, human resource development, oil and gas, local content policy.

Article Details

How to Cite
Obiri, K. A., Bjeirmi, B., & Boateng, P. (2020). A System Thinking Approach to Human Resource Development in the Oil Industry. Journal of Energy Research and Reviews, 4(1), 39-49. https://doi.org/10.9734/jenrr/2020/v4i130118
Section
Original Research Article

References

New African. The curse of oil: How oil companies have left Niger Delta in the lurch. London; 2012.

Auty R. Sustaining development in mineral economies: The resource curse thesis. Routledge; 1993.

Sachs JD, Warner AM. Natural resource abundance and economic growth. in Leading issues in economic development, G. Meier and J. Rauch, eds., Oxford University Press; 1995.

Humphreys M, Sachs JD, Stiglitz JE. Introduction: what is the problem with natural resource wealth? In: Humphreys M, Sachs JD, Stiglitz JE (Eds.), Escaping the Resource Curse. Columbia University Press, New York. 2007;1–20.

Gelb Alan H. Oil windfalls: Blessing or curse? World Bank Research, Washington D.C; 1988.

Frankel JA. The natural resource curse: A survey (Working Paper 15836). National Bureau of Economic Research, Cambridge; 2010. Forrester JW. Policies, decisions and information sources for modelling”, European Journal of Operational Research. 1992;59:42-63.

Collier P. The Political Economy of Natural resources. Soc. Res. 2010;77(4):1105–1132.

Yates DA. The scramble for african oil: Oppression corruption and war for control of Africa’s Natural Resources. Pluto Press, London; 2012.

Ramdoo I. Local content policies in mineral-rich countries. An Overview. Discussion Paper. 2016;193.

Stevens P, Lahn G, Kooroshy J. The resource curse revisited. Research paper. Energy, Environment and Resources. Chatham House. London; 2015.

Obiri KA, Bjeirmi B. A Comparative analysis of local content policies in the North Sea and the Gulf of Guinea Regions. Journal of Scientific Research and Reports. 2019;1-13.

Kalyuzhnova Y, Nygaard A, Omarov ES, Saparbayev A. Local content policies in resource-rich countries. Palgrave Macmillan; 2016.

Ado R. Local content Policy and the WTO Rules of Trade-Related Investment Measures (TRIMS): The Pros and Cons. International Journal of Business and Management Studies. 2013;137-146.

Tordo S, Warner M, Manzano O, Anouti Y. Local content policies in the oil and gas sector. World Bank Publications; 2013.

MoE (Ministry of Energy). Local content and Local Participation in Petroleum Activities-Policy Framework; 2010.
Available:http://www.gnpcghana.com/_upload/general/Meet_the_press_sept_2012.pdf› 18/04/13

Peek P, Gantès P. Skills shortages and local content in the Sub-Saharan African oil and gas industry. Centre de recherches enterprises et societies; 2008.

Sigam C, Garcia L. Extractive industries: Optimizing value retention in host countries. Geneva: UNCTAD; 2012.

Darkwah A. Keeping hope alive: An analysis of training opportunities for Ghanaian youth in the emerging oil and gas industry. International Development Planning Review. 2013;35(2):119-134.

Omenikolo IA, Amadi RO. Challenges facing Nigerian local content in oil and gas industry. Available:http://academia.edu/660216/CHALLENGES_FACING_NIGERIAN_LOCAL_CONTENT_IN_OIL_AND_GAS_INDUSTRY 14/07/> 13/07/13

Aneke P. The role of major operators in the development of local content in the Nigerian oil and gas industry. A paper delivered during a national seminar on the dynamics of equipment leasing and contract financing for local contractors in the oil and gas sector, Port Harcourt, Nigeria; 2002.

Ariweriokuma S. The political economy of oil and gas in Africa: The Case of Nigeria. New York: Routledge; 2009.

Ibilol A. Implementation of local content in Nigeria; Briefing note on the Nigerian Natural Resource Charter; 2012.
Available:http://nigerianrc.org/sites/default/files/Briefing%20Note%20on%20Local%20Content.pdf >14/07/13

Amoako-Tuffour J, Augynn T, Atta-Quayson A. Local content and value addition in Ghana’s mineral, oil, and gas sectors: Is Ghana getting it right?’ Washington DC: African Centre for Economic Transformation; 2015.

Onuoha NI, Onyihe IJ, Iledare O. Economic implications of oil and gas supply infrastructure disruption in Nigeria; 2015.
Available:http://www.iaee.org/iaee2017/submissions/OnlineProceedings/ONUOHA%20NNACHI%20ONLINE%
20PROCEEDINGS%20PAPER.pdf 04/04/2018

ADB (African Development Bank Group) and Bill and Melinda Gates Foundation. Flagship Report Paper Series. Paper6: Creating local content for human development in Africa’s new natural resource-rich countries; 2015.
Available:https://www.opml.co.uk/files/Publications/8517-harnessing-natural-resources/paper-1.pdf?noredirect=1 (01/07/2019)

Yamoah EE. The link between human resource capacity building and job performance. International Journal of Human Resource Studies. 2014;4(3): 139.

Kazzazi A, Nouri B. A conceptual model for local content development in petroleum industry. Management Science Letters. 2012;2(6):2165-2174.

Cosar AK. Human capital, technology adoption and development. TheB. E. Journal of Macroeconomics. 2011;11(1):1-41.
Available:http://dx.doi.org/10.2202/1935-1690.1907

Noe RA, Hollenbeck JR, Gerhart B, Wright PM. Human Resource Management: Gaining a Competitive Advantage (4th ed.). Boston: McGraw-Hill; 2003.

Youndt MA, Subramaniam M, Snell SA. Intellectual Capital Profiles: An Examination of Investments and Returns. Journal of Management Studies. 2004;41 (2):335-361.
Available:http://dx.doi.org/10.1111/j.1467-6486.2004.00435.x

Marimuthu M, Arokiasamy L, Ismail M. Human capital development and its impact on firm performance: Evidence from developmental economics. The Journal of International Social Research. 2009;2(8): 265-272.

Delaney JT, Huselid MA. The Impact of Human Resource Management Practices on Perceptions of Organizational Performance. Academy of Management Journal. 1996;39(4): 949-969.
Available:http://dx.doi.org/10.2307/256718

Ablo AD. Manning the rigs: a study of offshore employment in Ghana's oil industry (Master's thesis, The University of Bergen); 2012.

OXFAM American/ISODEC 2009. Ghana’s biggest challenge to democratic development.
Available:http://www.publishwhatyoupay.org/sites/pwydev.gn.apc.org/files/Ghana-Big-Test%200xfamlSODEC.pdf> (4/04/2014)

Gyampo RE. Saving Ghana from it soil: A critical assessment of preparations so far made. Afr. Today. 2011;57(4): 48–69.

ACEP (Africa centres for Energy Policy). The implementation of Ghana’s local content regulations in the upstream sector; achievements, challenges and way forward; 2017.
Available:https://s3.amazonaws.com/new-acep-static1/reports/LOCAL+CONTENT+PAPER.pdf (01/07/19)

Obeng-Odoom F. Oiling the urban economy: Land, labour, capital and the State in Sekondi-Takoradi Ghana. Routledge, New York; 2014.

Ackah-Baidoo A. Enclave development and ‘offshore corporate social responsibility’: Implications for oil-rich sub-Saharan Africa. Resource Policy. 2012;37:152–159.

IMANI. Is Ghana ready for more Local Content? Lessons from eight comparator countries in five economic sectors; 2009.
Available:https://imaniafrica.org/2018/09/25/new-report-is-ghana-ready-for-more-local-content-lessons-from-eight-comparator-countries-in-five-sectors/ (30/08/2019)

Obiri KA, Bjeirmi B, Boateng P. Local content implementation enhancement through infrastructure development in Ghana’s oil and gas industry. Journal of Energy Research and Reviews. 2019; 1-10.

Arnold RD, Wade JP. A definition of systems thinking: A systems approach. Procedia Computer Science. 2015;44:669-678.

Richmond B. Systems dynamics/systems thinking: Let’s just get on with it. In International Systems Dynamics Conference. Sterling, Scotland; 1994.

Senge P. The Fifth Discipline, the Art and Practice of the Learning Organization. New York, NY: Doubleday/Currency; 1990.

Richardson G. Feedback Thought in social science and systems theory. Philadelphia, PA, University of Pennsylvania Press; 1991.

Alasad R, Motawa I, Ougunlana S. A system dynamics-based model for demand forecasting in PPP infrastructure projects – A case of toll roads. Organization, technology & management in construction: An international journal, 5(Special); 2013.

Helen de Pinho. Systems tools for complex health systems: A guide to creating causal loop diagrams; 2015.
Available:https://www.who.int/alliance-hpsr/resources/publications/CLD_Course_Participant_Manual.pdf (30/08/2019)

Forrester JW. Policies, decisions and information sources for modelling. European Journal of Operational Research. 1992;59:42-63.

Ihua UB, Olabowale OA, Eloji KN, Ajayi C. Entrepreneurial Implications of Nigeria’s Oil industry Local Content Policy; Perceptions from the Niger Delta Region. Journal of Enterprising Communities: People and Places in the Global Economy. 2011;5(3):223-241.

Balouga J. Nigerian local content: Challenges and Prospects; 2012.
Available:http://webcache.googleusercontent.com/search?q=cache:UQIOYMls3gsJ:www.iaee.org/en/publications/newsletterdl.aspx%3Fid%3D176+&cd=1&hl=en&ct=clnk&gl=uk >14/07/13

Ablo AD. Local content and participation in Ghana's oil and gas industry: Can enterprise development make a difference? The Extractive Industries and Society. 2015;2(2):320-327.

Tordo S. National oil companies and value creation. World Bank Publications; 2011.

Esteves AM, Coyne B, Moreno A. Local content in the oil, gas and mining sectors: Enhancing the benefits at the subnational level. Revenue Watch Institute; 2012.

Ovadia JS. Local content and natural resource governance: The cases of Angola and Nigeria. The Extractive Industries and Society. 2014;1(2): 137-146.

Ovadia JS. Local content policies and petro-development in Sub-Saharan Africa: A comparative analysis. Resources Policy. 2016;49:20-30.

Dettmer HW. Goldratt’s Theory of constraints: A systems approach to continuous improvement, Wisconsin, ASQ Quality Press; 1997.

Burnes J, Musa P. Structural Validation of causal loop diagrams 2, SD conference. Atlanta; 2001.