Changes are taking place in the oi1,industry. New technology spurred on by the microchip is changing the tasks to be performed. New employees are entering the industry to operate and maintain the new as well as the old. Current employees need instructions on the use of the new and on improving the performance of the old. My job, as well as your job, is to provide these employees with the opportunity to obtain the knowledge and the skills necessary to perform these tasks efficiently, safely and with consideration of the environment.

A well planned and directed training program does pay in the oil industry. However, it should be a continuous program. There should be no cutbacks when the economy slows and/or the workload slackens. In fact, these slack periods are an opportune time to send an employee to a training session since it is easier to have other employees perform his tasks - thus obviating the need of hiring a temporary replacement. When the workload increases, better trained, more efficient employees will be available. This just could reduce the need for hiring new employees to take on the added workload.

Providing relevant and timely training develops a more satisfied and secure employee. Call it "esprit de corps", pride in self, or morale.

It is built through individual or group accomplishment and subsequent recognition. It promotes high standards of achievement and keen competition to better oneself or one's group. We have a letter in our files from a young woman in our Hobbs, New Mexico division. She developed a tremendous pride in accomplishment after attending a one week training course. One her own, she entered the local college and obtained an associate in science degree. The result is a better trained, more dedicated employee with not only pride in her accomplishments, but also pride in her company. It is important to expose the new employees to self-improvement early in their careers - this is best done with a planned and relevant personnel development policy, of which training is an integral part.

Up to this point I have been talking about intangible benefits to the company. It is difficult to put a dollar value on these; however, our files are full of training ,results and we can estimate the magnitude of the impact. I would like to share with you a few Conoco examples on which you can place a dollar value.

In one area in Texas, the attendees of a short course, based on what they learned, made over one hundred modifications to the wells in their area over a two year period, increasing production in individual wells from a two BOPD increase on the low side to a 140 BOPD increase on the high side. Also, fuel costs were lowered and maintenance reduced. Use your own crude price to place a dollar value on this measurable result of training.

Another example: a lease operator in our Corpus Christi division doubled production and cut energy 50% after participating in a course in which he learned how to properly time clock a well.

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