The vital Mix of the Hydrocarbon Industry and Energy Transition

Q: How have WTS Mexico and its track record evolved in recent past years? 

A: WTS Mexico opened for business in April 2016 and has faced several challenges since then. International studies have highlighted that Mexico is one of the most complex countries regarding bureaucracy, which makes setting up a business a complex process. Nonetheless, the company was able to fully comply with laws and regulations. Although WTS is known internationally, this was not yet the case in Mexico and this posed a second challenge. It needed to create a name in the energy market. Thanks to the 2014 Energy Reform, many IOCs and service companies were looking for compliant international vendors in the country. WTS was able to establish a broad range of clients among key operators and contractors in which Project Management and Engineering Services have been developed successfully.

The third challenge was the reconfiguration of the company after the 2021 labor and fiscal reforms. In August 2021, WTS obtained its REPSE register to provide specialized services focusing on engineering, HSE, logistics and IT services for the energy sector. In addition, we have continued our Specialized Recruitment Services for the sector for which we have been able to place Mexican and international talent at the most important O&G companies in Mexico. 

Q: What challenges do companies face when recruiting and retaining talent and how does WTS support them?

A: Companies understand that people are their main assets. The most important challenge today is globalization. In the past, people only had two or three job offers to choose from. Today, the world is a pool of work flexibility allowing talented people to travel all around the world and work wherever they want. 

In regard to the oil and gas industry in Mexico it is highly important for companies to invest in culture, retention strategies and additional benefits to retain talent. It is very important for us to understand that the world is going through an energy transition. However, we live in a world where everything we see, and use is still made out of hydrocarbons. This is our second-biggest challenge when it comes to attracting talent. Moreover, it is relevant for companies within the sector to focus on their organizational structure, culture and their social impact and plans for the energy transition to attract new talent.

Q: How has the Mexican talent pool changed in the last 10 years and where do you find more opportunities to improve?

A: The change has been significant. We have noticed a large increase in education, language and IT skill levels. The Mexican talent pool is becoming more attractive worldwide. In Europe, for instance, there is a scarcity of personnel, especially technical personnel. We have seen many cases where Mexican talent has been transferred to Europe to fill this gap, and with excellent results and we expect that this trend will continue. 

Q: How does the company contribute to the UN’s Sustainable Development Goals? 

A: WTS focuses on the UN’s social sustainable goals as well as complying with two of them: No. 7 and 8. The first relates to ensuring affordable and clean energy for everyone. Goal No. 8 is about decent work and economic growth.  

Goal No. 8 makes a great deal of sense for WTS because people are its main asset. In Mexico, the company is hiring people and providing them with great additional benefits and an excellent salary level and full and transparent compliance while supporting their personal growth. 

Additionally, for our Projects in WTS we try to rehire people who have worked for the company on previous projects in Mexico. We have examples of employees that are now in their fourth and fifth project with the company. These efforts are happening all over the world, and it ensures that people are paid accordingly while also having opportunities to grow in their careers. Moreover, WTS focuses on hiring local people for its projects. 

Goal No. 7 is about affordable and clean energy. To understand why we chose that goal, you need to comprehend the breakdown of the WTS energy group. At the moment, we are made up of three different companies. WTS Mexico is part of the WTS Energy group. Through innovative specialized recruitment services we provide talent to important companies in Solar, LNG and cogeneration companies. 

The second company, VS&H Offshore, is an offshore contractor, specialized in testing and terminations, cable repairs and outfitting of offshore high voltage assets. They perform a wide range of offshore high voltage activities for the connection and maintenance of offshore wind assets, covering array, export or interconnecting cables. Additionally, they have a training experience center in the Netherlands that focuses on high voltage cable installation of offshore wind parks. 

Then we have HiberHilo, an IOT company, which is a joint venture between WTS and Hiber that focuses on well monitoring services using space satellites to avoid risk or damage to the environment due to leakage. HiberHilo is a complete well and pipeline solution that is ready to go, out-of-the box through a subscription model. It includes sensors, software, satellite connectivity, and a continued service - this gives you the opportunity to monitor your assets 24/7.

All together, we are tackling the affordable and clean energy goal because we understand its necessity. 

Q: What are the main workforce changes the energy transition has brought to the industry?

A: Every change that requires the use of technology needs to apply new skill sets. For example, at WTS’ training center for its high cable company in the Netherlands, it specifically trains skill sets related to high voltage cables. This is because the wind turbines are so big, they require specific knowledge and specialized training. The energy transition will demand new skills from talent and companies will need to train them. 

Companies like WTS create training centers for specific skill sets. We train our clients, their staff and our own personnel to be able to go offshore. For instance, the company recently added a branch in the US focusing on high voltage wind cabling training and installation and a training center in Kenya that focuses on the energy transition. The solution is to create training centers that will provide new skill sets to the talent pool.

Q: How does the country's progress on these matters compare with that of the region?

A: It depends on the region. For example, the US is one of the largest wind energy markets in the world due to its size, and it just opened its offshore wind market. In Mexico, there are initiatives associated with natural gas, solar energy, and liquid natural gas. There are several plants being reconfigured and new pipelines being built, in addition to solar and wind projects. 

The media does not report it heavily but there is investment in the renewable energy industry. However, it is not a priority for the government at the moment. There is no doubt that at some point Mexico will jump on the energy transition train and there will be many opportunities. 

Q: What training or services do you think could further accelerate the country's adaptation to the energy transition?

A: Besides training and services, the most important factors to focus on are investments as well as embracing renewable energy. At the moment, the Mexican industry is mainly witnessing political decisions revolving around hydrocarbons and gas. It is important to focus on building a society around renewables as well. One does not exclude the other. The first step is to create a conducive atmosphere for national and international companies to invest heavily in Mexico and generate projects that can be connected to the electricity and gas networks. 

It is also important to focus on the workforce. Mexico has a young labor force that has been increasing rapidly in terms of education, technical and language skills. It is imperative to create specialized training centers and create a workforce that is ready to support these projects within the energy transition in Mexico and around the globe.