Category: History

One consequence was large-scale hoarding of oil, and the outbreak of war between Iran and Iraq in 1980 extended the crisis. Crude prices trebled and Norway, as a petroleum exporter, benefitted greatly.

Different systems for rotating personnel between work and leisure functioned in parallel on the drilling rigs during the early years of oil exploration in the Norwegian North Sea. The most common practice was nevertheless one week on and one off. To get a holiday, people carried on working offshore until they were entitled to three weeks free in one go.

However, this arrangement proved impractical – particularly for workers who going offshore or returning home on a Saturday or Sunday. They never got a full weekend off. To stagger such change-overs, the schedule was extended to eight days offshore with eight days free. One work period in five was also dropped, so every fifth free spell was 24 days long.[REMOVE]Fotnote: This gave a working time which averaged 38 hours per week and 1 824 hours per year after holidays. That corresponded to shift work on land.

When Norway’s Working Environment Act (WEA) came into force in 1977, the permitted length of a continuous shift on land was cut. But there was no assurance that this would be applied offshore. In its original form, the Act did not permit the 12-hour working day normal on all offshore installations. So amendments were needed to adapt the legal provisions to fixed platforms.[REMOVE]Fotnote: The Act specified that working time was 36 hours over seven days for work carried out around the clock throughout the week. That represented 1 877 hours a year on average. Adjusting this for four weeks of holiday gave a net working time of 1 733 hours.

The Norwegian Petroleum Directorate argued that reducing working time offshore was impractical, with the “special character” of the oil industry requiring exemptions.[REMOVE]Fotnote: Ryggvik, H, 1999, “Fra forbilde til sikkerhetssystem i forvitring: Fremveksten av et norsk sikkerhetsregime i lys av utviklingen på britisk sokkel”, Working Paper, Volume 114, Centre for Technology and Culture, University of Oslo, printed edition. Oslo: Centre for Technology, Innovation and Culture (TIK), University of Oslo: 16. As early as 1975, however, Ekofisk operator Phillips Petroleum had agreed to working hours for its own personnel which accorded with the provisions proposed for the new Act. A royal decree of 9 July 1976 extended the existing Worker Protection Act, with certain exceptions, to the fixed installations offshore on a temporary basis.

The WEA was then applied to these facility in 1977.[REMOVE]Fotnote: Ryggvik, H, 1999, “Fra forbilde til sikkerhetssystem i forvitring: Fremveksten av et norsk sikkerhetsregime i lys av utviklingen på britisk sokkel”, Working Paper, Volume 114, Centre for Technology and Culture, University of Oslo, printed edition. Oslo: Centre for Technology, Innovation and Culture (TIK), University of Oslo: 18. This meant that offshore workers had their working time regulated and acquired legal safeguards against unfair dismissal. After long discussions, the North Sea schedule was by and large established as two weeks working offshore and three weeks free on land.

But the WEA was not applied to floating units such as rigs, and working time in that part of the oil industry continued to be regulated by Norway’s Ship Labour Act.

 An extra day

Norway’s legislation on paid holidays was amended in 1981 to give everyone a legal right to four weeks and one day off. The latter was nicknamed the “Gro Day” after Gro Harlem Brundtland, the Labour premier of the day. This meant the two weeks on/three weeks off schedule now imposed too many working hours. It was decided that the extra would be compensated as 25 hours of overtime per year.[REMOVE]Fotnote: Working time was reduced from 1 752 to 1 727 hours.

Agreement was reached in the 1986 collective pay negotiations on a 7.5-hour normal working day and a 37.5-hour week. Personnel both on land and offshore working a continuous shift also had their weekly hours cut 33.6.[REMOVE]Fotnote: Net working hours after deducting holidays were reduced from 1 752 to 1 727. To comply with these new terms, the offshore schedule was altered to two weeks at work, three weeks ashore, two weeks at work and four weeks on land.

When the Gro Day was introduced in 1981, the Labour government originally proposed introducing a full week’s extra holiday in stages over three years. But that failed to materialise. In 2000, the Norwegian Confederation of Trade Unions (LO) proposed a fifth holiday week for all employees, which would thereby reduce the number of hours in a work-year.[REMOVE]Fotnote: That involved an additional four free days of 7.5 hours offshore (32 hours). The hours to be worked were then reduced from 1 612 to 1 580. That demand was accepted, and most workers could thereby enjoy five weeks off. This naturally had consequences offshore, but implementing it there was not a straightforward matter.

A schedule of two weeks at work and three/four weeks at home had been 19 hours short of a normal work-year. That was overcome by deducting this time from pay or leaving the first 11 hours of overtime unpaid.[REMOVE]Fotnote: Sande, Leif, “Arbeidstiden på sokkelen”, Sysla – meninger, 11 March 2015.

The new holiday deal meant that an offshore worker would be doing 12 extra hours per year. This was initially paid as overtime, which the unions found unsatisfactory. They demanded the full holiday entitlement awarded to everyone else through the introduction of a schedule of two weeks on and four off. In 2002, the Norwegian Oil Industry Association (OLF – today the Norwegian Oil and Gas Association) allowed local deals under the offshore agreements to adopt this two-four scheme. All the companies subject to these agreements introduced the new schedule. ConocoPhillips was among the operators to do this, in its case covering the Greater Ekofisk Area.

However, the two-four system meant workers were falling short of a work-year by 122 hours.[REMOVE]Fotnote: Working 12 hours a day for 14 days, followed by four weeks off, means that an employee works 168 hours every six-week period. That adds up to 1 460 hours per year. Annual pay was thereby cut by 7.71 per cent to take account of the reduced time worked.[REMOVE]Fotnote: Norwegian Official Reports (NOU) 2016:1, Arbeidstidsutvalget — Regulering av arbeidstid – vern og fleksibilitet. https://www.regjeringen.no/no/dokumenter/nou-2016-1/id2467468/sec16. Other conditions were also set on Ekofisk. The whole offshore organisation was to be reviewed to find efficiency gains, and the agreement specified that the change would not lead to an increase in the workforce.[REMOVE]Fotnote: Pioner, “2-4-ordningen innføres”, March 2003.

Åm was born at Årdal in the Sogn district of western Norway in 1944, and grew up in Oppdal and Volda/Ørsta where he proved an able pupil at school. 

He opted to study mining engineering at the Norwegian Institute of Technology (NTH) in Trondheim, graduating with honours in 1967. 

Åm’s first job was with the Norwegian Geological Survey (NGU), again in Trondheim, where he worked and conducted research for six years. One of his jobs was to interpret aeromagnetic measurements of sub-surface rocks made from the air, which provide valuable information on geology and prospects for finding petroleum. In a series of publications, he described the big sedimentary basins identified in the Skagerrak between Norway and Denmark and in the Norwegian and Barents Seas. 

He joined the Norwegian Petroleum Directorate (NPD) in 1974, serving as a section head in the resource department and a principal engineer in the safety department. 

That was followed by three years with Statoil, where he became the state oil company’s first vice president for research and development. His appointments at the time included chairing a research programme on offshore safety, which led to legislation enacted by the Storting (parliament) and a bigger research effort. 

Joining Phillips

Åm secured a job with Phillips in 1982 and was soon sent to the head office at Bartlesville in Oklahoma to get better acquainted with the company and its corporate culture. 

After a year in the USA, he returned to the company’s Tananger office outside Stavanger and became the first Norwegian to serve as offshore manager for the Greater Ekofisk Area (GEA). 

That put him in charge of 23 platforms, with responsibility for the waterflooding programme as well as the project to jack up a number of the installations. These major developments extended the producing life of the GEA and sharply increased estimates for recoverable reserves from its fields. 

Åm led this work during difficult times, with low oil prices and the need to implement cost savings and overcome substantial financial challenges. As if that were not enough, he also taught at the University of Bergen from 1985 to 1990 as an adjunct (part-time) professor of applied geophysics. 

First Norwegian chief executive

After heading operations in the Permian and San Juan Basins at Odessa, Texas, from 1988-91, Åm became the first Norwegian president and managing director for Phillips Petroleum Norway. 

That put him in charge of 3 000 employees in the GEA as well as in Tananger, Oslo, Teesside and Emden. This was when a redevelopment of Ekofisk was planned, along with the future cessation and removal of old platforms.[REMOVE]Fotnote: https://www.fylkesmannen.no/globalassets/fm-rogaland/dokument-fmro/felles-og-leiing/brev-og-artiklar/fm-tale-til-knut-am.pdf 

By 1996, Åm was back in Bartlesville – now as vice president and head of all exploration and production in Phillips. He stayed in that job until retiring in the USA during 1999.

Offices and committees

But his working life did not end there. Appointments from 1999 to 2007 include membership of the Statoil board – and many similar posts can be mentioned. 

Åm has been president of the Norwegian Geological Council and the Norwegian Petroleum Society, and chair of the Norwegian Oil Industry Association (now the Norwegian Oil and Gas Association). 

He led the exhibition committee of the 1996 ONS oil show in Stavanger, and has chaired Bergen’s Christian Michelsen Research institute as well as the industrial council of the Norwegian Academy of Science and Letters.  

In addition to chairing Hitec ASA, he has been a director of several technology companies. 

Mention must also be made of the improved recovery committee appointed by the Ministry of Petroleum and Energy with Åm as chair. This produced a report in September 2010 which presented 44 specific measures for improving the recovery factor on the Norwegian continental shelf (NCS). 

Through his work and many appointments, Åm has been acclaimed for a combination of expertise, creativity and determination.  He also demonstrated the ability to tackle the requirements of Norway as a nation as well as the industry and its employees – not least with regard to the working environment and safety in a demanding and risky offshore industry. 

Optimist

In retirement, Åm is an optimist – with regard to the climate as well. “I’m very concerned with nature, but believe we should extract the resources it’s given us,” he told Otium in 2016. 

“Norway could have a long and good future in the oil and gas industry if people give it more support. Exploring for new deposits is important, but we should also seek to achieve a far better recovery factor from both new and existing fields.” 

“You can naturally concentrate on life’s negative aspects. Then everything’s simply awful. I think you’ll be a far happier person if you prefer to see the positive side of life. I call that self-motivation. We need more of that in the energy sector.”[REMOVE]Fotnote: https://api.optimum.no/sites/default/files/PDF/optimum-magasinet-2016.pdf