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LETTER FROM THE PRESIDENT OF RIGZONE If you’re considering a job move or a career in oil and gas, you might be rethinking your options right about now… but a decision to leave the industry would be shortsighted and based on only half of the picture.

While companies may be making short-term decisions to reduce operating expenses and demonstrate fiscal responsibility, critical long-term talent needs are looming as many qualified professionals near retirement. In fact, many companies are still seeking qualified talent and while the market is certainly more difficult, oil prices will improve! Rigzone is proud to partner with candidates and recruiters to help them make the right connections. This career guide provides an outstanding collection of articles and interviews that focus on all aspects of the downturn, providing companies with insights on how to win and retain the best talent in the industry, and candidates with sound advice on how to remain essential. The Rigzone team is also proud to unveil our newly updated website here at OTC. We set out to highlight what our visitors value most by replacing distracting elements with modern, clean design. Our fresh look brings our editorial content to the forefront while also ensuring our increasingly global members can easily search and find jobs to advance their careers in energy. With the recent merger of OilCareers, finding the ideal job, as well as finding the right candidates, is even easier. Our audience is now at 3.2 million members – oil and gas professionals who come to Rigzone knowing we provide the largest collection of the highest quality jobs from the most reputable companies in the industry. Come back to the site soon and let us know what you think. We look forward to meeting you while at OTC, so please stop by the booth and say hello. Cheers,

Bob Melk

President, Rigzone


Last year, predictions of a downturn in oil prices were prominent as shale production in the U.S. and other geopolitical conditions began to change the dynamics of our industry; but few, if any, predicted that the price of oil might drop as quickly as we have seen in the past 9 months. The reaction to this downturn has been swift with many organizations quickly announcing delays in projects and extensive layoffs or hiring freezes. In fact, a recent Rigzone survey found that 63 percent of O&G global hiring managers experienced a loss of budgeted positions due to market volatility, and 62 percent said this volatility would decrease their hiring plans in the next 6 months.

TURBULENT TIMES CALL FOR A VISIT TO # OTC BOOTH 428 Whatever it takes, wherever it takes us. Even in tough times, Swift offers exceptional job opportunities around the globe. After all, that’s how we became the world’s premier manpower provider. Check out SwiftWWR.com/jobs. ®

Enter to win 2 tickets to anywhere in the world when you visit our booth!

Entry into Swift’s Getaway Giveaway is limited to one entry per person. Only individuals 18 years of age or older may enter the Giveaway. Giveaway is open to current and former Swift contractor employees, as well as all other OTC attendees. Internal Swift employees are ineligible for the Giveaway. Entry may only be done by scanning the entrant’s OTC badge at the Swift tent between May 4, 2015 and May 7, 2015. Drawing will be held on May 25, 2015. Swift shall notify the winner within ten (10) business days via the email address provided upon entry into the Giveaway. Winner shall receive two (2) roundtrip airline tickets of coach or economy class to any destination of Winner’s choice. Two tickets shall have a maximum combined value of $3000.00 USD. All Prizes are non-transferrable. Flights must booked through Swift’s Logistics Team. All flights must be booked by November 26, 2015. Winner agrees to abide by all local, state and federal laws applicable to the receipt of promotional items, specifically any and all anti-corruption regulations. Winner is responsible for any taxes which may be required as a result of acceptance of the Giveaway.


PAGE 5


NAVIGATING THE OIL, GAS CYCLES By Bertie Taylor

PAGE 8 RIGZONE.COM

A

Historically, this current story actually begins about two decades ago with the evolution of advanced technologies such as hydraulic fracturing and horizontal drilling. As these kinds of innovations expanded, they paved the way for the shale revolution in North America: a bright spot that helped pull the U.S. economy out of the 2008 recession. “But today we have a situation of weak crude demand while crude supply has surged in the United States,” said Paula WaggonerAguilar, president at The Energy CFO, LLC. “This adds to the complexity of the ‘petro politics’ and geopolitics in play. It’s also created a storage glut. Meanwhile, a market-share turf war is going on with OPEC (Organization of the Petroleum Exporting Countries) and the U.S. government still has a crude export ban in place. All of these factors have played out in falling crude commodity prices.” As companies sought to cut costs in late 2014, layoffs were made, and announcements about personnel cuts continued to roll out during early 2015. Executives that have been in this business for a while know the defensive drill: it’s about conserving cash, reducing CAPEX, lowering activity and reducing costs, Waggoner-Aguilar said. “The unknowns include how low prices will go and how long the downturn lasts, and the immediate response was belt-tightening. However ... [going forward] I expect to see more strategic analysis regarding the second half of 2015 and 2016.” Earlier downturns, particularly in the 1980s, saw several oil and gas companies struggle to come to grips with what was happening with commodity prices, so there could have been some “knee jerk” layoffs

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Paula Waggoner-Aguilar, President, The Energy CFO, LLC

Stefanie Hanz, Talent & Recruitment Manager, Newalta

Doug de la Morena, VP of Human Resources, Parker Drilling


s the energy industry watched oil prices begin their dramatic descent last fall, the reactions were varied. Everyone was jarred by how prices fell so far, so quickly. Many veteran executives warily pulled out the playbooks from previous downturns, while younger employees did their best to quickly step up and assist companies with executing game plans. As a high-risk, high-reward industry subject to commodity price volatility, supply and demand, and politics around the world, it’s simply not for the faint of heart. But history has shown that just as a downturn is a natural part of this cyclical business, so is survival – for both companies and the people that drive them toward success.

Navigating the Oil, Gas Cycles


happening back then, said Doug de la Morena, vice president of human resources at Parker Drilling.

Employees that have been in the industry for 20 to 25 years understand the ups and downs of our business.

“But as an industry, I think we’ve gotten smarter and more purposeful about managing through downturns. There have been quite a few announcements during the last few months about personnel reductions, but my sense is that the process is a lot more thoughtful this time around. Companies know they need to retain good employees now and attract good candidates in the future.”

“Those people are probably going to hang tight because our industry is an attractive one; it’s challenging, growing and it’s exciting,” he added. “Employees earlier in their career or ones that came over from another industry may be surprised by where we are. For the short-term, these folks may migrate to another industry. However, I believe the demand curve for talented people who are willing to travel and take on exciting new challenges will drive their return to our industry eventually.”

Various age groups have reacted to the market volatility slightly differently, Waggoner-Aguilar said. Millennials may have more of a “the sky is falling” view due to their limited industry experience. Some are now exploring international opportunities, and some are looking at entrepreneurial options or start-up energy projects, but generally speaking, they’re not leaving energy. As for Gen-Xers, some of the entrepreneurs in this group left while the going was still good, but those that stayed are hunkered down and know the drill, Waggoner-Aguilar added.

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“When we look at the Boomers, we see more are retiring. They represent a wealth of knowledge so some are electing to become consultants. Some are hunkering down and some are open to all industries. However, none of the people in these groups are sitting on the sidelines not doing anything.”

BOUNCING BACK

For those who have lost jobs during this downturn, it’s key to remember there is nothing personal in what’s happening, and companies do not take any pleasure in letting people go. This situation is temporary. Keep your skills up; learn as much as you can about how companies are planning to move forward, and make finding a job your 40-hour per week job, said de la Morena. Next, know that there are still openings available, and hiring is still happening. Top talent is always in demand. And, even in the process of reducing headcount, companies still want the best talent on their teams: high producing people who work efficiently and cost effectively.

“When we look at the Boomers, we see more are retiring. They represent a wealth of knowledge so some are electing to become consultants.”

The industry’s future is dependent on advancing technology and reducing the price of finding and extracting hydrocarbons from the ground. If it can do those things it will continue to be a viable industry for many decades to come. That said, younger employees and STEM students are in a great position to lead the oil and gas industry forward during the next few decades. “The oil and gas industry needs science and math wizards. Our industry wants them, is willing to pay a premium for them, and will continue to make finding and developing new talent a priority,” said de la Morena. RIGZONE.COM

“There are a variety of roles being recruited for as business and operations are continuing,” said Stefanie Hanz, Talent & Recruitment manager at Newalta. “It may not be with the same velocity, but I’m seeing opportunities in all areas of corporate business and field operations, just at a reduced volume. Even in a downturn there are roles within oilfield services that continue to have employee turnover or additional staffing requirements to service projects. On the operations side is where we will see more frequent hiring.” Most companies and employees are probably carefully evaluating their positions, value and prospects, but the industry has to keep moving forward, said de la Morena. As a drilling, drilling services and rental tools company, Parker Drilling helps customers search

“We’re an operational execution company focused on helping our customers manage their costs and mitigate their risks by consistently delivering innovative, reliable and efficient performance, products and services. To do this, we’re always going to need dedicated, passionate energy professionals – engineers, geologists, tech specialists and talent managers – to fill full-time needs as well as rotational positions around the globe. We will also always need compliance and safety specialists. All of these roles

meet with people in-person also goes a long way.” “These approaches are much more effective than asking for a business card and a job in the same sentence. Remember, it’s not about the number of connections you have within a social network. It’s about the level of engagement and the quality of the relationships that you’re forming.” “As for don’ts, a candidate shouldn’t treat current opportunities as just a way to get into the company, when they are actually eyeing a different role or another type of organization. You should be genuinely interested in the current opportunity that you are pursuing as it will come across in your interview and quickly upon starting within the new position. Also, be honest in your interview

PAGE 11

for hydrocarbons around the world in increasingly remote and harsh environments using technology that continues to evolve. The company can’t do that successfully without good talent.

HANZ ALSO RECOMMENDED SEVERAL ADDITIONAL STEPS IN THE JOB SEARCH PROCESS: Tailor your application and resume to the role you’re applying for

Be able to articulate how a particular opportunity fits in with your long-term career goals Do your research about the company’s revenue streams, team and hiring managers Focus on what success looks like in the role and identify what you bring to the table that can help lead to that success. are in demand today, but we expect that demand to increase significantly in a few quarters.” After realizing that there are still jobs to be had, it’s time to take action. Start by taking advantage of your network, as it’s how you might discover opportunities that aren’t necessarily being marketed yet. “Quality networking should be engaging and about creating mutually beneficial relationships,” Hanz said. “How can you help others get to where they want to be? How can you share relevant, high-quality information with your network or offer to introduce them to additional relevant connections? Putting in the effort to

examples; the work experience you describe should always be your own,” Hanz said. While you’re looking, volunteer in the interim, Waggoner-Aguilar added. “With all of the effort in finding a new job and anxiety about what’s happening in the market, volunteering can make you feel good and improve your mental health. Consider opportunities with industry organizations, or engineering or entrepreneurship departments at a local university. You never know who you’ll meet and it will improve your spirit.”


Be clear in your career aspirations within the role and with the company specifically

Navigating the oil, gas cycles


Once you land an opportunity, start the new job ready to learn. Ask lots of questions and go into discovery mode. Learn about other people, their roles and what is important for them to accomplish to drive business results. Understand how your role relates to theirs and how it impacts what the business is trying to accomplish. Identify key contacts within the company and seek to understand how you can provide value to others, Hanz advised. By setting oneself up to make a real impact within the first couple of months of starting in a new role, you’ll establish yourself as a valued contributor. Also, seek projects that you can offer your assistance on that will help you develop skills, relationships with colleagues and new insights into the business. It also doesn’t hurt to maintain an emergency savings in good times and tough times. Always keep your resume current so if your employment status changes you can hit the ground running. If you were not directly impacted by the layoffs, it’s very important to maintain a positive attitude at work, Waggoner-Aguilar said. Roll up your sleeves and jump in where there’s additional work to be done. Meanwhile, current employees should step up and let supervisors know about their interest in learning new things, taking on new roles or a willingness to work in other locations, said de la Morena.

PAGE 12

“Taking on new challenges puts people in a position to help their companies and advance their career development. And people – whether employed or not – should keep up their competencies, job skills, networking and business acumen. They need to be in the know about what’s happening in our industry. They should be very conversant in the language of finance and energy in order to be well positioned for that next opportunity.” Finally, remember to lend a helping hand and don’t forget to pay it forward, Waggoner-Aguilar said. “If you know people who were directly impacted

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by the layoffs, offer to make introductions that could lead to their next opportunity. Offer to walk their resume to a hiring manager. It doesn’t guarantee the job, but it improves their chances for being considered.”

COMPANY OUTLOOK

Just as people are evaluating the best strategies for moving forward, companies must do the same. Waggoner-Aguilar noted that for exploration and production (E&P) companies, their survival playbook is about conserving cash, shortening the cash conversion cycle, using tools such as cash flow forecasting and adopting rolling forecasts. “It’s also about maintaining a strong balance sheet, which includes cutting CAPEX and delaying major projects as necessary. You don’t want to accelerate production in a low price environment, but you want to make sure that the drilling that is going forward is in the best rocks in the best plays.” To cut costs, many E&P companies are renegotiating contracts with oilfield-service companies. If the company is vertically integrated and providing their own services they should look internally for ways to reduce those costs and benchmark their margins versus the most competitive external competitors to determine how competitive their services are, Waggoner-Aguilar said. Boosting operational efficiencies, integrating digital oilfield technologies and eliminating additional unnecessary costs as appropriate are also helpful in reigning in expenses. “All of these steps help E&P companies have cash available as opportunities arise during the downturn. It’s a great period to be on the lookout for new drilling acreage that can be added to the portfolio.” During a downturn, oilfield-service revenues decrease, rig counts drop and yards become full of equipment. Service companies also find themselves under a lot of pressure from E&P

Fundamentally, no matter the size of the company or whether it’s an E&P or a service-focused entity, to execute successfully in a down market a company needs cash, a strong balance sheet and a dynamic financial plan. “Things can change a lot in 30 days within a market like this so companies need to be able to have current information available to help them make timely decisions. They need external financial experts if they don’t have them in-house. Having experts available on the technical and operational sides are also critical. All of these experts can really help companies get a leg up right now.” While it’s crucial for companies to have financial plans that are sustainable in the current environment, it’s just as important for companies to continue to value the people that drive the business. This means always treating talent with respect and compassion. “Employees across the industry are going to have a lot of choices when the market recovers and there are more job openings,” said de la Morena. “Employers need to value people, and develop and retain them as much as we can. How you treat folks that may leave your company now and how you deal with remaining employees says a lot

It’s important to treat people with dignity, especially during mass layoffs, WaggonerAguilar added. “Executing these decisions is difficult for all parties – even more so for individuals that have been terminated. Demonstrating compassion during the process helps employees retain confidence and can let them move past being angry or disappointed quickly. This can create a better frame of mind for focusing on finding that new job.”

PAGE 13

“The oilfield-service companies that will survive this are going to be great negotiators with the most favorable term sheets, and they will have good margins,” Waggoner-Aguilar said. “They will run efficiently and they are taking advantage of technology to automate certain processes. The oilfield-service survival playbook is about conserving cash, maintaining a strong balance sheet, reducing costs, getting utilization up for the business that they do have – and possibly pivoting into untapped markets downstream – focusing on procurement and improving inventory systems.”

about the kind of company you are. We’ve been very careful about this as we’ve worked to balance our business footprint with the real-time demands of the industry.”

From an employer perspective, a company always wants to make optimizing talent a top priority, said de la Morena. The human resources department’s job is to figure out what the short- and long-term talent needs are; find the talent – both when it’s needed immediately and when it isn’t; develop the talent through tools such as e-learning and rotational programs; and then retain the people the company has invested in, he said. “At Parker Drilling we try to manage our workforce and talent pretty similarly in upturns and downturns. As an industry we’ve learned not to panic when commodity prices begin to drop. At Parker, we are being a lot more careful about protecting that investment in our people. As an industry we are wiser, more thoughtful, and we value employees. “Talented, dedicated professionals will be increasingly difficult to come by in the future. We have to develop and support our team members to ensure we have the right people in place to help our customers achieve their objectives, not only as we navigate this downturn, but as market conditions improve.”


customers to lower prices. Debt downgrades in the public and private sectors can happen as a result, and access to capital tends to be restricted.


BY SAANIYA BANGEE

PAGE 14 RIGZONE.COM

T

imes are tough. We’ve read the news, seen the statistics and heard enough water cooler stories to understand the challenges surrounding the current hiring environment. Whether it’s looking for a job or trying to keep a current one, oil and gas professionals worldwide are working tirelessly in setting themselves apart – to become that essential employee.

Workers need to “look at assets within operating groups that have guaranteed longevity due to a level of predicted depletion the asset is expected to return,” industry expert and Managing Partner of recruiting firm Kaye/Bassman International Corp.’s Christopher Melillo told Rigzone. “In many cases, these might be well-developed assets, so the complexity of the work may not be overly challenging, but the organization may have difficulty keeping headcount in that particular location. Too often, assets for midsized and larger operators happen to be located in less desirable geographies. Also, be prepared to be in a compressed or condensed role vs. skill set.”

PAGE 15

The key advice recruiters and hiring managers everywhere are giving industry workers and job seekers is to be flexible about factors such as work location, pay, position and job tasks.

While this doesn’t apply to everybody, Melillo warned, the general message does. The industry environment is competitive right now and being a difficult employee is not going to win you any points.

“There has been roughly a 45 percent decrease in jobs for the service industry for both onshore and offshore. While there is still a 3:5 ratio of qualified candidates for every professional engineering position that exists for operators, what was a 2:17 ratio of candidates for actual open jobs at this time last year, is now 6:7,” Melillo said. With such drastic volatility in the crude prices it’s inevitable that some workers will find themselves looking for jobs. While searching for a job in this market can be tough, employees “should stay positive and keep up morale. Anyone in the industry knows that things will come back around,” Melissa Williams, recruiting manager for Cenergy, told Rigzone. “By staying current with what is going on in the market and knowing how to use many of the new systems in the industry, workers can remain valuable in a competitive job industry.” How can job seekers get ahead during this time? Here, Rigzone highlights what industry and hiring specialists had to say:

Persistence never give up. It’s a challenging market but there are still huge levels of activities in this sector. Looking for work can take 40+ hours per week - Sean Fennell, initiafy Co-Founder

Leadership Leadership is a skill that will always be transferable, regardless of the market. If you are good at leading people, especially when you can lead during tough times, then you are valuable to the industry - Melissa Williams, Recruiting Manager for Cenergy

UPDATE RESUME Workers should update their resumes frequently with ROI stats, efficiency stats and promotions/advancements they have received at any given company – this will result in a cohesive and impressive resume - Erik Bowitz, Senior Resume Expert at Resume Genius

NETWORK The oil and gas industry is a small world. Pull out your Rolodex and schedule lunch with former colleagues. Get out and network – ask questions and listen – and use what you learn to strike up interesting conversations with others ... share knowledge to show breadth of knowledge -Josh Ross, associate partner at Aon Hewitt


However, budget cuts are inevitable due to the downturn the industry is facing, and unfortunately, not everybody is safe.

Flexibility is key in current hiring market

2015 COMPENSATION TRENDS IN U.S. OIL, GAS RIGZONE CAREER GUIDE

Salary increases are projected to be 3.7% for salaried workers in the O&G industry for 2015 25% higher than workers overall

Some O&G organizations have revised their compensation budgets for 2015, with those that finalized budgets in January: 58% said initial budget has not changed Nearly 38% decreased estimated budget, or have chosen to freeze base pay Approximately 5% plan to increase budgets

Approx. 40% of organizations said bonus pools are expected to fund at or above target level performance

PAGE 16

35% indicate funding levels to be below target levels 25% of organizations remain unsure

64% percent of organizations intend to reward higher performers through supplemental cash incentives, discretionary stock awards and higher base pay increases. Some organizations also noted offering additional learning and development opportunities. *From December 2014 to January 2015, Aon Hewitt surveyed 50 U.S.-based organizations, including upstream, midstream and services and equipment companies, amongst others. Source: Aon Hewitt's Salary Increase Survey

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FINDING A JOB JUST GOT EASIER Be in-the-know while on-the-go with the Rigzone mobile app. Search & apply to 1000s of oil & gas jobs, around the globe. Access the latest industry news & find events - all from your phone.

By Chee Yew Cheang

Uncertainties stemming from more than half a year of low oil prices have made job security a niggling issue facing most employees worldwide, including Asia’s oil and gas industry. Such concerns, frequently exacerbated by headline news reporting rounds of industry layoffs, have made employment at national oil companies (NOC) a desirable option for existing employees or potential candidates.

PAGE 17

Working for Asian National Oil CompaniesAn Attractive Choice? The downturn in the petroleum industry has already prompted many firms to reduce their capital expenditures (CAPEX) as global oil prices – which declined by more than 50 percent since the second half of 2014 after breaking through the psychologically significant $100 a barrel mark – showed little signs of recovery.

The oil majors, including BP plc, Chevron Corp., Exxon Mobil Corp. and Total S.A., slashed their investment spending by around 12 percent, while Royal Dutch Shell plc cut CAPEX by $15 billion over three years from 2015 to 2017, company data showed.

Capex Cuts Announced by Major IOCs Company

Period

Percentage/Amount Change

CAPEX Amount

BP

2015

Minus 12.67

$20 Billion

Chevron

2015

Minus 13

$35 Billion

ExxonMobil

2015

Minus 12

$34 Billion

Shell

2015-2017

Minus $15 billion over 3 years

Not Available

Total

2015

Minus 10.98

$23-24 Billion

Source: Companies


Several independent oil companies (IOC), including the oil majors, who are accountable to shareholders through their quarterly financial reports, were among those that wielded the axe on capex budgets as they announced their spending plans in recent months.

Working for Asian National Oil companies an Attractive Choice?

NOCS AND IOCS OPERATE DIFFERENTLY Like IOCs, low oil prices also hurt Asian NOCs, especially petroleum producers, prompting them to cut CAPEX budgets.

company posted job vacancies online and invited experienced hires to apply for positions in the upstream sector. These posts, as listed on Pertamina’s website in mid-March, covered:


Malaysia’s Petroliam Nasional Berhad (PETRONAS) – one of the world’s more successful NOCs – shaved 10 percent off its capital spending this year, while China National Offshore Oil Corp. and Indonesia’s PT Pertamina trimmed their investment expenditures by 31 percent and 37.14 percent, respectively.

GEOLOGY

Over in South Asia, India’s state-owned Oil and Natural Gas Corp. Ltd. (ONGC) moved against the current trend by budgeting a 4.1 percent increase in capex for financial year 2015 to 2016.

PROCESS & FACILITIES

Capex Spending by Some Asia NOCs Company

period

Percentage Change

CNOOC

2015

minus 31

ongc

2015-2016

Plus 4.1

petronas

2015

minus 10

pertamina

2015

minus 37.14

pttep

2015-2016

minus 9.53 over 5years

PAGE 18

source: companies/enercore isi

“Most of Asia Pacific is NOC-operated and NOCs are very different than IOCs. NOCs have a mandate to serve the people in the country and then make money. IOCs have a mandate to serve shareholders … [On] plans by IOCs for projects going forward, certainly we can see some drawback or slowdown. But they are two different animals,” Jason Waldie, an associate director of Douglas-Westwood Pte. Ltd., told participants at the Singapore Offshore Finance Forum in February.

PERTAMINA STILL HIRING Over in Indonesia, Pertamina appears to be the only bright spark for oil and gas employment. The

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GEOPHYSICS RESERVOIR & PRODUCTION ENHANCED OIL RECOVERY “Pertamina is still hiring. If you look at online job vacancies, I don’t see any [other] company in Indonesia that is hiring,” Sartika Abidin, chief human resources for PT Energi Tanjung Tiga (ETT) told Rigzone. But she noted that some of these vacancies could have arisen as Pertamina needs to replace staff whose contracts at the NOC, which has a workforce of 25,650 in November 2013, had expired or are expiring. As a nationally recognized business entity, Pertamina is an obvious choice for new job applicants, including candidates from top universities in Indonesia. “It’s not difficult for Pertamina to get fresh graduates, who are willing to take modest salaries. Pertamina will send them for on-job training in the fields” to gain experience, Sartika said. ETT operates brownfields in South Sumatra in a 25:75 partnership with Pertamina EP, the upstream arm of Pertamina.

NOC OFFERS OPTION IN MALAYSIA PETRONAS, ranked 69 on the list of the world’s top 500 companies in Forbes Global 2014 by revenue and 18th among its petroleum refining cohort, cited in its mission statement that a key “objective is to contribute to the well-being of the people and the nation.” It was therefore no surprise when PETRONAS described a Jan. 17 article published by Malaysian newspaper New Straits Times in which the NOC

However, lower oil prices did result in layoffs in Malaysia’s oilfield services sector, with some redundancies made in early 2015 as companies intended to trim CAPEX and operating expenditures (opex) – a move that affected a few large companies, like France’s Technip and Italy’s Saipem S.p.A. “I saw the trend [on job cuts] coming for engineering services companies like Technip and Saipem,” an industry professional who left Technip to join a NOC, told Rigzone. In the current industry climate, job security appears high on the agenda of existing and potential employees, who are now more willing to accept a moderate change in their wage demand. “NOCs are not cutting but holding on for now. I see an opportunity there and they want skilled labor. Personally, I received a small increase in my salary when I changed jobs, but I heard there are others that do not mind taking a small cut” to secure a job, the former Technip employee, who has asked to remain anonymous, explained to Rigzone. Still, there were indications that some expatriate staff were made redundant by PETRONAS. In 2012 and 2013, contract staff – that possibly included expatriate workers – accounted for 8.6 percent and 10.3 percent of the 5,428 and 3,699 new hires at the Malaysian NOC, respectively. “PETRONAS cuts a lot of its expatriate contractors … and there is no news on their hiring plan for this year,” Ross Gregory, team manager of Oil & Gas Practice at Hydrogen Group plc in Singapore, commented to Rigzone.

ONGC BUCKS TREND ON CAPEX In contrast to IOCs and many Asian NOCs, ONGC, India’s largest upstream oil and gas producer, has bucked the global trend among petroleum firms.

2012

46,415 Number of Employees

79-21

4,864 vs 564

Malaysian/Non-Malaysian Ratio (%)

Permanent & Contract Hires for Core Businesses in Malaysia

(5,428 New Hires)

2013

49,133 78-22 Number of Employees

Malaysian/Non-Malaysian Ratio (%)

3,380 vs 319

PAGE 19

“If PETRONAS takes on a longer term view, the company will have to hire people currently seeking jobs again. It takes time to train, especially as oil and gas talents are in short supply,” Arhnue Tan, an analyst with Malaysia’s Alliance Research explained to Rigzone.

PETRONAS: Total Number of Employees - Groupwide

(3,699 New Hires) Permanent & Contract Hires for Core Businesses in Malaysia

Source: Petronas

Chee yew cheang

COVER

I Cover apac region


indicated plans to cut its workforce by 10 percent as “misreported and inaccurate.”

Working for Asian National Oil companies an Attractive Choice?


Instead of responding to the oil price downtrend by reducing CAPEX, laying off staff and adopting other cost-cutting measures, ONGC announced plans to raise its capital spending. In February, the Indian upstream player announced it will raise its CAPEX to $5.8 billion (INR 3.625 trillion) for fiscal year 20152016, commencing April 1, up from $5.57 billion (INR 3.481 trillion) in the previous year. “All development projects in ONGC are evaluated, considering post discount prices available to ONGC and there is no issue of viability at existing prices. We are also going for exploration as per our approved work programs. We envisage this as an opportunity to get more competitive rates for oilfield services,” ONGC told Indian daily The Economic Times March 10.

PTTEP SEES MANPOWER AS KEY SUSTAINABILITY ISSUE Oil and gas consumption in Thailand, like in most growing Asian economies, has risen steadily in recent decades. While the Southeast Asian country has local sources of petroleum, consumption has constantly outstripped production. In 2013, Thailand imported 797,610 barrels of oil per day and 338.11 billion cubic feet of natural gas to meet domestic consumption, figures from the U.S. Energy Information Administration showed.

PAGE 20

“As the flagship company of national oil company PTT Public Company Ltd., our mission is to ensure the energy security in Thailand,” PTTEP said in an email response to Rigzone. The company has no intention of stopping exploration for new upstream opportunities and will proceed with its existing projects. “These [upstream] activities absolutely need skilled manpower and we have to be very careful in retaining our employees and sustaining the competency improvement amid the industry malaise as we have to maintain the stability of our long-term growth,” PTTEP explained. With the Thai upstream firm considering manpower as one of the crucial factors in sustainability of its businesses, “cutting jobs will be the last measure we will take,” PTTEP told Rigzone. Last year, PTTEP had approximately 4,000 employees working at its operating assets domestically and internationally.

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PTTEP's Total Employees in 2014 Number of Employees in 2014 Employee Type

Permanent Thai Contract Non-Thai Contract Local Seconded

Total

Total (Persons) 2,208 1,523 174 623 19

4,547 Source: PTTEP

Meanwhile, NOCs elsewhere such as Saudi Arabian Oil Co. (Saudi Aramco) began recruiting staff recently laid off by U.S. shale oil companies as the Kingdom attempts to grow its unconventional sector, a March 17 Bloomberg News report said. “To support the implementation of our strategy and continued growth, Saudi Aramco continues to hire expertise in a number of technical areas across the unconventional gas resource value-chain,” Saudi Aramco spokesman Nigel O’Connor told Bloomberg News.

LOOKING AHEAD

With Asia’s energy consumption projected to rise in the foreseeable future, this is expected to translate into strong demand for oil and gas. But with hydrocarbons located in increasingly inaccessible environments, extracting hydrocarbons will require a highly skilled workforce. As such, demand for skilled professionals will continue to be high on the agenda for most Asian NOCs – although this may not happen in the near term due to the current price of oil. “Not in the short term, but NOCs will definitely come in to hire some good people. The national companies don’t face the same financial pressure that the junior explorers do … [On the other hand] the priority for people now would all be around job security,” Kevin Gibson, Asia Pacific managing director at recruitment specialist Earthstream Global, told Rigzone.

Surviving the Downturn in Drilling PAGE 21

By Jon Mainwaring

Oilfield services companies focused on drilling have been laying off workers. The early months of this year saw Halliburton Co., Schlumberger Ltd., Weatherford International and Helmerich & Payne Inc., among other drilling firms, announce plans for significant job losses at their operations around the world. Meanwhile, the stock prices of companies involved in deepwater drilling – such as Transocean Ltd. and Seadrill – fell sharply between the summer of 2014 and spring of 2015. “The market right now is quite slow for the obvious reasons,” Paul Mazalov – team leader for Drilling and Completions at recruitment agency Spencer Ogden – told Rigzone recently. “Generally, the main thing that’s ceased is deepwater drilling activity purely for the reason of cost. If you think about it from a cost perspective, companies right now are trying to reduce that. A lot of organizations are finding it very hard just to break even. It costs more money for them to drill and produce oil than they can sell it for.” Mazalov said that a lot of deepwater projects need more than $90 per barrel in order to break

even, which means many companies that have invested in such projects “are hurting”. “There are companies that are right now scrambling around to find out what their hottest assets are that are actually making them money and investing more time into those,” he said. “Unfortunately, what that causes from a recruitment perspective is that they have had a lot of staff sitting there twiddling their thumbs and so they are now moving those staff to the operations where they are needed.”

Regional Differences Where you are in the world can make a big difference to your fortunes as a drilling professional at the moment, according to Mazalov. “An offshore drilling rig in deepwater in the Gulf of Mexico or West Africa, if it’s a good solid semisubmersible rig, might cost a company $1.5 million per day just to run. A jackup might cost only $300,000 to $400,000, but still if the company drills one dry hole, it’s in trouble,” Mazalov said. But companies drilling for oil on land in low labor-cost regions can still make a healthy profit. For example, the Middle East is still a hot region right now.


S

o far, 2015 has proved to be a tough time for workers in the upstream industry, particularly oil workers who are directly involved in drilling operations.

Survivng the downturn in Drilling


“The Middle East is booming. It’s full-steam ahead purely due to the fact that labor is cheap out there and they’ve got lots of it,” Mazalov said.

Gas Basin. At peak production, this will produce enough gas to meet the demand for nearly 1.5 million homes.

“The other good thing about the Middle East is that they are quite lucky because the nature of the geology is pretty straightforward and simple. A lot of the wells they drill are vertical, shallow wells. There may be some horizontal wells but they’re still shallow, so each well can take just 14-to-20 days to drill, which is very good. And land rigs cost more like $30,000 per day.”

Meanwhile, China has been very keen to increase its use of natural gas and has set a target for 2020 that gas should make up 10 percent of the energy it consumes from a current level of about 5 percent.

Asia Pacific is a region that is not immune to the suffering being experienced by drilling companies elsewhere around the world, but drilling professionals located there benefit from the fact that it is the largest jackup market in the world. “Because deep-water is suffering from the massive drop in the oil price, we’ve received more CVs from drillers who work on drillships and semisubs compared to those who work on jackups,” Mike Guo – Spencer Ogden Regional Manager for Asia-Pac – told Rigzone, pointing out that a lot of shallow-water drilling is still going on in Asia-Pac.

PAGE 22

Yet, even in mature basins such as the North Sea, there is still plenty of activity going on. For example, Norway intends to press ahead with development of the Statoil and Lundin Petroleum-led Johan Sverdrup field in its part of the North Sea in spite of the low oil price environment. This is targeted to produce up to 380,000 barrels of oil equivalent per day after phase one production begins in 2019.

Gas Versus Oil Analysts and industry executives that Rigzone has talked to in recent months believe that energy companies exposed to gas development projects are in better shape than most, particularly if they are located in areas of the world where natural gas is relatively expensive compared to North America and where gas can be easily transported to where it is needed, e.g. Western Europe, North Africa and the Far East. So, focusing on getting employed on gas projects in these regions might be an option for energy workers with drilling skills. One such project being developed in the UK is GDF Suez’s Cygnus project in the North Sea’s Southern

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Spencer Ogden’s Guo says that drilling activity on gas fields in Asia-Pac should continue to be strong “because lots of LNG project developments are budgeted, which means there are sufficient funds to support it”. In terms of unconventional gas drilling outside of the now well-developed shale gas industry in North America, some shale gas exploration activity is beginning to take place in Argentina and European countries such as the UK. In the UK, a study by Ernst & Young suggests that the number of new jobs that could result from a shale gas industry in the country might be as high as 64,000. However, it is likely to be some time before such an industry is properly established, particularly in the face of strong objection and action (legal and otherwise) from the UK’s environmental lobby.

What Drilling Skills are in Demand Right Now? In terms of drilling skills that are still very much in demand right now, Vibeke Sam – Head of Learning at Maersk Drilling – told Rigzone that people with suitable subsea drilling and cyber drilling skills have been hard to find for some time. Meanwhile, there remains a lot of demand for engineering professionals with extended reach drilling (ERD) experience, according to Spencer Ogden’s Mazalov. ERD is the directional drilling of very long horizontal wells and it is particularly in demand in parts of the world where oil companies want to access offshore reserves from onshore locations. “What extended reach drilling allows companies to do is reach reservoirs offshore by drilling onshore and having horizontal wells stretch for miles underneath the ocean floor, therefore eliminating the need for offshore rigs,” Mazalov said.

There is also a lot of demand for ERD drillers from companies involved in Arctic operations. “If you look at Alaska they can only technically drill offshore for three months per year, which is not a lot of time bearing in mind that an average offshore well takes three-to-six months to drill and complete. So, it doesn’t give companies a lot of time to actually mobilize, get a rig out there, set it up, start drilling and then demobilize everything. It’s just not possible. So companies operating in Alaska use ERD as a technique in a lot of their operations.” Yet, what is most important for drilling professionals looking to secure a job is proof that they possess the right skills and evidence that they have the right attitude towards their work.

“After having been through many years of the ‘what’s in it for me attitude?’ from some offshore employees, we are looking for drilling professionals who also have the perspective of ‘how can I contribute to make this company succeed?’”

PAGE 23

“They need to be able to demonstrate their competency level by having the right certificates, good work experience and good appraisals of both their professional skills and behavioural skills,” Maersk’s Sam told Rigzone.

Indeed, a more flexible attitude is likely to be a fact of life for anyone who wants to work offshore in a mature basin like the North Sea at the moment. For example, according to unions that represent energy workers, a number of oil and gas firms in the North Sea region are now expecting their employees to work extended shift patterns and even see paid leave sacrificed due to the low oil price environment. Sam said that social skills – communication skills, leadership skills and conflict management skills – are also very important for anyone working on a rig. “And within all positions: ambition, a positive attitude, enthusiasm and motivation, a stable career and so on weighs in the candidate’s favor as well,” he added.

The Drilling Professional’s Survival Kitbag Regional advantage: Candidates are more likely to find work in the Middle East and the Far East, where conventional oil is more easily accessed via land rigs and jackups, than in deepwater regions such as the Gulf of Mexico and offshore West Africa Gas versus oil: Several regions around the world still command healthy prices for gas, and gas field development projects continue apace Drilling skillset: Subsea and cyber drilling know-how are scarce at the moment, while extended reach drilling (ERD) experience is in demand Soft skills: Drilling firms are looking for candidates that have communications skills and leadership skills, and who display a positive attitude


“That’s a technology that’s up and coming. If you look at places like California, which has only a handful of offshore platforms, they will not allow any more large metal structures in the sea to spoil the view. I work with Occidental and they’ve got quite a large operation at Long Beach, California, where all they do is have onshore rigs sitting there and they do extended reach drilling. Apparently, there are quite a lot of reserves offshore California but for obvious reasons they won’t let them stick a rig out there in the ocean.”

NORTH SEA WORK: RIGZONE CAREER GUIDE

REASONS FOR OPTIMISM AMID THE GLOOM By Jon Mainwaring

PAGE 24 RIGZONE.COM

The situation in Norway is not much better. In early 2015, Statoil ASA confirmed that it would extend cuts that began in the summer of 2014 to 1,400 positions from its operations worldwide. Two weeks later, oilfield services firm Aker Solutions said it would shed more jobs from its maintenance, modifications and operations division. “It’s a challenging time. We all know that. But I think you have to keep an eye on the long term. And you have to find that balance of dealing with the short term – the pain that’s currently being felt and the consequences of that – but also trying to keep that eye to the long term,” David Rennie, Scottish Enterprise’s international sector head for Oil & Gas, told Rigzone. And, certainly, there remain plenty of reasons to be optimistic if you are an oil and gas worker who plies his trade in the North Sea. Exploration activity may be severely down in the basin but the industry is determined that several development projects go ahead. For example, BP is pressing on with its Clair Ridge project on the UK Continental Shelf (UKCS). Meanwhile, GDF Suez and Centrica are developing the southern North Sea’s Cygnus gas project that is set to support up to 4,800 jobs during its 5-year construction phase. Smaller operators are also involved in developing fields on the UKCS, with independent energy firm Premier Oil plc set to begin development drilling on the Catcher field later this year. Over in Norway, Statoil is moving ahead with the development of the giant Johan Sverdrup field that is due to come on stream in 2019. Scottish Enterprise’s Rennie points to figures from Oil & Gas UK that show that, even at $50 per barrel, two-thirds of the fields currently producing in the North Sea remain economic.

Meanwhile, after decades of producing oil and gas from the North Sea, Scotland is now an important global hub for oilfield skills and know-how. This is reflected by a 2014 report from Scottish Development International that showed exports by Scotland’s oil and gas supply chain companies had grown to almost $17 billion annually – accounting for around half of the supply chain sector’s total revenue. While North America remains the main region for exports by the Scottish oil and gas supply chain sector, Africa is catching up fast as demonstrated by sales to the region doubling to $3.9 billion between 2012 and 2013. This opportunity to increase Scotland’s share of the global oil and gas supply chain is why Rennie believes it is important to keep the domestic market strong – so that the UK industry retains and develops the skills that will be needed elsewhere in the world. “In times of downturn or slowdown that international element becomes even more important,” he said. Over in the Netherlands, the Dutch oilfield services sector is still doing well. Figures from the Netherlands Maritime Technology trade association show that Dutch shipyards and equipment suppliers (which get a significant amount of business from the offshore oil and gas sector) generated some $9 billion last year, compared to $7.8 billion in 2013, with order books currently stable. The Dutch industry recognizes it will begin to hurt in 2016 if oil prices remain the same, however. Back in the UK, Rennie believes it is important to maintain a focus on the future. “It’s hard to look beyond the short term but you’ve got to get that balance. We can’t talk ourselves into a pit of gloom. There has to be recognition of what’s happening right now and dealing with it and helping companies get through it, but we also have to keep an eye on the long term,” he said.

PAGE 25

This year has seen several companies that operate in the region announce swingeing job losses. As far as the UK sector of the North Sea is concerned, majors such as BP plc, Chevron Corp., ConocoPhillips Co. and Royal Dutch Shell plc have cut jobs in Scotland, while oilfield services firms that have long been established in Aberdeen, such as Schlumberger Ltd., have also announced cutbacks.

In the European oilfield services sector much comfort can be taken from the fact that important European offshore services companies – such as Aker Solutions ASA and Technip S.A. – increased their order books last year. In Technip’s case its backlog of orders achieved a record level of $23.8 billion by the end of 2014.


T

he lower oil price mean that times are tough for oil and gas professionals whose work depends on the health of the North Sea industry.

North Sea Work: Reasons For Optimism Amid The Gloom

Cygnus Gas Project Facts


The UK government has taken steps to help provide some relief to the UK oil and gas industry. Chancellor George Osborne introduced a few measures in his 2015 Budget in March that were designed to reduce the tax burden on the UK sector and boost investment in the UKCS. These included a new tax allowance to stimulate investment across the industry as well as government investment in new seismic surveys in little-explored areas of UK waters. The UK government is also cutting both the country’s Petroleum Revenue Tax and the Supplementary Charge – which is paid on ringfenced oil and gas profits. The decline in exploration drilling on the UKCS remains a cause for concern, with just 14 exploration wells drilled last year out of a planned 25 and only eight-to-13 exploration wells anticipated this year (source: Oil & Gas UK). But, as Rennie told Rigzone, “I think there’s now a recognition of a need to incentivize exploration and the importance of that in the long term is very clear.”

Jon mainwaring

COVER

I Cover EMEA Region

Cygnus is the largest discovery in the North Sea's Southern Gas Basin in the last 27 years, with 635 billion cubic feet of gas Discovered in 1988, it took a government tax allowance of $810 million for large shallow-water gas fields before the project was given the go-ahead in 2012 The plan is for Cygnus to produce enough gas for 1.5 million UK homes

The Cygnus development is providing work for an initial 1,200 jobs directly connected to the project Source: GDF Suez

Johan Sverdrup Project Facts Located some 90 miles west of Stavanger in the Norwegian North Sea, the giant Johan Sverdrup field holds up to 2.9 billion barrels of oil Operator Statoil announced in February 2015 that it will go ahead with developing the field

Production start-up is expected in 2019, with peak production expected to be more than 500,000 barrels per day PAGE 26

Source: Statoil

Clair Ridge Project Facts Located 45 miles west of the Shetland Islands on the UK Continental Shelf, Clair Ridge is the second phase of development of the Clair field Clair Ridge holds an estimated 8 billion barrels of oil in place – making it the largest undeveloped hydrocarbon resource on the UKCS Operator BP is targeting 640 million barrels of recoverable resources, investing some $6.5 billion in a development that includes two new bridge-linked platforms Production at Clair Ridge is scheduled to start in 2016 and continue until 2050, producing at a peak rate of more than 100,000 barrels of oil per day Source: BP

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Advertise With Rigzone With over 1.5 million unique visitors per month, Rigzone offers the best advertising platform in the oil & gas industry. We provide numerous options to best serve your recruitment or branding advertising needs. Contact me today to book your placement online, in our newsletters, and reserve your placement in our next Career Guide! David Aldrich, Manager, Ad Sales +001 281-861-2016 [email protected]


WAITING FOR THE OFFSHORE HIRING PENDULUM TO SWING BACK By Matthew V. Veazey

PAGE 28 RIGZONE.COM

RIGZONE:

PAGE 29

The offshore hiring situation has slowed down considerably within the past year, but there are still pockets of opportunity for the right people. Moreover, demonstrating flexibility will likely give you the edge when the job market picks up again – and that may well happen by the time 2016 rolls around. So say two recruiting pros who recently gave Rigzone their perspectives on the current downturn. Keep reading for excerpts from Rigzone’s conversation with Tobias Read, Houston-based CEO of Swift Worldwide Resources, and Whitney Mather, Houston-based upstream and midstream staffing consultant with Whitaker Technical.

Since May 2014, how has the offshore job placement scene changed?

were operating at full capacity are now standing idle, and the downturn has resulted in hiring freezes and layoffs. But we should remember that the market is cyclical. We’ve seen the market undergo similar drops before, and it will eventually recover. Despite uncertain global economics, the global population is expanding, as are the all-important middle classes who drive consumption. Irrespective of the cause of the current price dip, demand will inevitably increase and outpace supply. I strongly suspect that prices will recover by the end of 2015, leaving us potentially underinvested in 2016. The market will accelerate once again as it did after 2008 and probably to record highs. There is already talk that oil will recover to over $150 a barrel.

MATHER:

At that time, we were in one of the best hiring markets that we had seen in a while. Talent was hard to come by and companies would gladly create positions for the right candidates. In the recruiting world, we call this “opportunistic hiring.” Although the offshore industry has taken less of a hit than onshore, the industry has still drastically changed over the year. Upstream companies are erring on the side of caution and many have put a freeze on hiring. However, there are new opportunities that have developed in this market, such as acquisitions and divestitures (A&D) firms who are in need of different types of technical expertise.


READ: Since last year, the market has nose-dived. Some offshore rigs which once

Waiting for the offshore hiring pendulum to swing back

RIGZONE:

Which types of offshore positions and/or skill sets are still seeing solid demand, and is demand particularly strong in certain regions?

MATHER: Controlling costs is the most important focus currently in offshore. There are


incredible costs associated with running an offshore drilling rig (a semisubmersible can easily cost a company $1.5 million per day), and offshore projects can have $90-per-barrel breakeven points. Offshore companies will drill multiple wells and tap into them for completions and production much later.

Measurement while drilling (MWD) engineers, directional drillers, regulatory/safety personnel, production and completion engineers will still be in demand because of the lag time in this process. Unfortunately, many companies are cutting their other personnel and labor costs. These layoffs have caused folks to look at other sectors of the market that are still thriving. Those that have transferable skills are working to find roles in refineries, petrochemical and midstream companies. The most easily transitioned professionals are: environmental health and safety specialists, rotating equipment operators and skilled trades.

READ: Unfortunately there are very few offshore positions that are in demand right now.

For seven years, there was a shortage of staff. Now for the first time, there’s a surplus. The general maintenance jobs are relatively immune to the effects of the price drops, but on the whole, we’re seeing a halt in capital expenditure and new project development. Currently almost no one is hiring [for offshore positions].

RIGZONE:

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Would you like to make any additional comments regarding the outlook for the offshore job market, including recommendations for job-seekers?

READ:

Internationally the industry is dominated by national governments with different agendas, larger-scale projects and the political and financial will to ride the storm. The best advice I can give is to be open to other possibilities and other sectors. The job market in oil and gas is down, but there are opportunities in sectors that skills can transfer to, particularly industries with an engineering focus. Job or no job I’d say be flexible. If you are on a project then go the extra mile, if you are coming to the end of a project, find a new one internally if you can. If you are a contractor and rate adjustments are on the cards, think seriously about taking them. If you are currently on the job market, then be flexible, network, be open-minded and expect that you may have to accept a lower rate for the time being. The market will return and most likely return stronger in about twelve months. In the meantime, keep an optimistic long-term view and be pragmatic about short-term difficulties. The pendulum will swing back. RIGZONE.COM


PAGE 31

CATEGORY GOES HERE

OIL, GAS DISCOVERIES TODAY CAN LEAD TO JOBS TOMORROW RIGZONE CAREER GUIDE

Although the oil and gas industry is currently undergoing challenging market conditions, operators still need to develop discoveries in order to replace reserves. Appraisal and development drilling is only the beginning in bringing a discovery on stream. The time it takes to start production can range from a few months to several years depending on region, water depth and existing infrastructure, among other factors. Coupled with market dynamics and industry veterans retiring, companies will continue to need talented personnel.

BY RIGZONE DATA SERVICES

GUADALAUPE ANCHOR

GULF OF MEXICO

PAGE 32

WEST AFR

MINSALA M

OR

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MARINE

RCA

ROSNEFT OAO

Coring, logging and fluid acquisition at Cobalt’s Orca-1 pre-salt well in Block 20 confirmed the existence of a large light oil reservoir with a thin gas and condensate cap – resource potential is estimated to range between 400 and 700 million barrels. Upon completion of well testing, the company will evaluate the data to determine the best approach to reach full potential of the discovery. Orca is Cobalt’s second pre-salt discovery in Angola’s Block 20.

PAGE 33

West Africa, Angola - Discovery Well: Orca Operator: Cobalt International Energy, Inc. Water Depth: 6,168 feet Discovery Announced: May 2014

West Africa, Angola - Discovery Well: Minsala Marine Operator: Eni S.p.A. Water Depth: 246 feet Discovery Announced: October 2014 Eni’s Minsala Marine exploration prospect, located in the Marine XII Block offshore Congo, was drilled to a total depth of 12,139 feet. Light oil was encountered in the Lower Cretaceous age pre-salt sequence. Preliminary estimates place the well’s potential at approximately 1 Bboe in place, of which 80% is oil. This is the third pre-salt discovery in the Marine XII permit. During testing, the reservoir delivered 41 degree API oil in excess of 5,000 bopd and gas flowed at a rate of 14 MMscf/d. US Gulf of Mexico - Discovery Well: Guadalupe Operator: Chevron Corp. Water Depth: 5,006 feet Discovery Announced: October 2014 Chevron’s deepwater exploration well, Guadalupe, on Keathley Canyon Block 10 has been described as “significant”. Specific details were not provided but the discovery is in the Lower Tertiary Wilcox sands. The well was drilled to a depth of 30,173 feet. US Gulf of Mexico - Discovery Well: Anchor Operator: Chevron Corp. Water Depth: 5,183 feet Discovery Announced: January 2015 Chevron’s second Gulf of Mexico discovery in less than a year, Anchor, touted multiple high-quality pay zones in Inboard Lower Tertiary Wilcox sands. The well is located in Green Canyon Block 807 and was drilled to a depth of 33,749 feet. Appraisal drilling is expected to begin during 2015. Barents Sea, Russia - (Pobeda) Operator: Rosneft OAO Water Depth: 265 feet Discovery Announced: October 2014 Rosneft and its partner, Exxon Mobil Corp., reported a significant oil discovery at the Universitetskaya-1 well in the Kara Sea. The well was drilled to a total depth of 6,932 feet. Rosneft’s estimates indicate the field could hold as much as 9.3 Bboe. The partners have identified at least 30 other structures within the EPNZ blocks with a combined potential of 87 billion barrels. Gas was discovered in Cenomaniana and Aptian-aged chalk deposits, and oil was found in Jurassic sediments. Recoverable oil and gas reserves at the renamed Pobeda discovery are estimated at 953 billion barrels and 17 Tcf. Rosneft believes the Kara Sea could contain hydrocarbon volumes on par with Saudi Arabia’s resource portfolio. Barents Sea, Norway - Discovery Well: Alta Operator: Lundin Petroleum AB Water Depth: 1,273 feet Discovery Announced: October 2014 Lundin Petroleum successfully completed an exploratory well in the Barents Sea that was designed to test the Alta prospect in Norwegian license PL609. Well 7220/11-1 was drilled by the Island Innovator (mid-water semisub) 12 miles northeast of the 2013 Gohta discovery. The well encountered 36 feet of gas pay and 151 feet of oil pay in good quality carbonate reservoir. A pair of drill stem tests were carried out across both pay zones. The tests yielded maximum constrained flow rates of 3,260 bopd and 1.7 MMscf/d. Data suggests the Alta structure contains between 125 and 400 MMboe in gross recoverable resources and significantly de-risks other prospects located within the license.


RICA

ALTA

BARENTS SEA

RIGZONE CAREER GUIDE PAGE 34

Pockets of Jobs Exist in Asia Even as Industry Downturn Persists By Chee Yew Cheang

RIGZONE.COM

Global oil prices have fallen by more than 50 percent since the second half of 2014 began. Shrinking oil revenues have caused petroleum companies, particularly producers, to reduce spending, which has sparked a domino effect industry-wide as demand for services like seismic and drilling taper off. “The impact has been quite dramatic ... the number of profitable [marginal and deepwater] fields have decreased dramatically … a lot of projects have been shelved or canceled and there is a general moratorium on anything new being approved,” Kevin Gibson, Asia Pacific managing director at specialist recruitment company Earthstream Global, told Rigzone. Forbes estimated in a March 17 article that around 73,000 oil and gas jobs were lost worldwide in “The Oil Bust” of 2015. The bulk, or just over 80 percent, of the redundancies were in the oilfield services sector, with exploration and production companies including oil majors like Total S.A., Royal Dutch Shell plc, BP plc and Chevron Corp., accounting for 11.5 percent of the job cuts.

“For seven years, there was a shortage of staff. Now for the first time, there’s a surplus. Currently almost no one is hiring,” Tobias Read, CEO of recruitment firm Swift Worldwide Resources, told Bloomberg News in February.

PAGE 35

The present job market is a sharp turnaround from the one that attracted new recruits when oil prices were over $100 a barrel.

SOME SEGMENTS HIT HARDER THAN OTHERS Low oil prices have impacted the subsectors within the oil and gas industry unevenly; CAPEX cutbacks caused some exploration projects to be shelved, while those already in the development stage were mostly left untouched. “We see the seismic [sector] bottoming [as] they are actually the very first to be contracted … For the drillers, we haven’t seen the trough yet … For floating production contractors, they are slightly behind but they haven’t seen the worst either … SURF [subsea, umbilicals, risers and flowlines] contractors are following on quickly. They haven’t seen the worst either,” Jan-Hein Jesse, senior Energy Banker at ABN AMRO, said at the Singapore Offshore Finance Forum in February. When oil prices fell below $50 a barrel in January, for the first time in many years, an air of apprehension crept into the industry. In Malaysia, engineering

Kevin Gibson, Asia Pacific Managing Director, Earthstream Global


A

sia, like the rest of the world, could not escape the adverse impact caused by a sustained fall in oil prices that led many energy firms, including services companies, to reduce expenditures, whether capital (CAPEX) or operational (OPEX). While spending cutbacks resulted in some layoffs in the region, pockets of employment opportunities still exist.

Pockets JobsHERE Exist in Asia Even as Industry Downturn Persists CATEGORYofGOES

firms like France’s Technip S.A. reportedly laid off around 50 staff, while Italy’s Saipem S.p.A. and Netherlands’s SBM Offshore N.V. were also affected by the business slowdown.

RIGZONE CAREER CAREER GUIDE GUIDE RIGZONE

“In January, there was a lot of panic [in the Malaysian oil and gas sector] …. Companies made quick decisions and a hiring freeze came into effect straight away. Redundancy was the first wave and drilling and completion contractors were released ... stability is slowly creeping back to the markets now,” Ross Gregory, Singapore-based team manager of Oil & Gas Practice at Hydrogen Group plc, told Rigzone.

WHERE ARE THE JOBS? With global energy demand – led by Asia – expected to rise, the development of less costly and more accessible shallow water projects remains high on the agenda of oil and gas companies, including national oil companies (NOC), in the near term. Oilfield services firms like UK’s Petrofac Ltd. and Singapore’s Swiber Holdings Ltd. believe low oil prices will have less of an impact on the development of shallow water fields compared to deepwater activities and projects in the exploration stage. While the “industry is adjusting to the lower oil price environment, shallow water engineering, procurement, construction and installation (EPCI) remains competitive,” Petrofac commented when releasing its 2014 financial results Feb. 25.

PAGE 36 36 PAGE

Swiber CEO Francis Wong concurred with the view, as quoted in the company’s Feb. 27 announcement that “the Group’s EPCI activities focus on the field development stage, that is, post-exploration and appraisal stages when customers have decided to commence development activities.” Hays, a recruitment firm, listed job vacancies available in Asia in its January-March 2015 quarterly report, which included:

SURF Geosciences & Petroleum Engineering Original Equipment Manufacturers (OEM) Hays observed there is a shortage of senior project managers for SURF in Singapore with mega project

RIGZONE.COM

experience delivering $150-million-plus value projects. “Candidates with floating production, storage and offloading (FPSO)/topside experience are in particular demand, while jackup experience is also highly valued ... As Singapore is a regional and global hub for the design and construction of offshore rigs, FPSO and, floating storage offloading and topside structures, demand is expected to continue.” On geosciences and petroleum engineering, Hays noted a demand for reservoir engineers, senior geophysicists and geologists, with experience in unconventional and deepwater areas, is needed for existing and new fields in Malaysia, Indonesia and Vietnam. In addition, local independent operators and oil majors are continually looking for geosciences and petroleum candidates to support offshore and onshore drilling operations. “Subsurface geological and geophysical expertise are in demand with pockets of hiring as clients are committed to exploration projects. We are seeing demand in that area from companies like Tamarind Energy, Mubadala Petroleum and Enquest plc who still want to capitalize on opportunities in Malaysia,” Gregory said. Gibson believed “there is going to be a lot more activity as the price of oil starts to creep up … people in the reservoir engineering space will come back into demand because oil companies, largely NOCs, will be looking at optimizing wells already drilled ... shallow drilling people will be in demand.” Hays expected the OEM markets servicing Asia’s petroleum industry to stay relatively strong with “some products such as downhole tools experiencing growth as employers seek to maximize returns from existing assets.” Job opportunities in the OEM sector include regional sales managers and business development managers; manufacturing operations managers; and technical superintendents, according to the firm. “There is also some [oil and gas] work around the consultancies who are looking to optimize cost for business,” Gibson added.

EMERGING TRENDS IN ASIA Industry watchers commented on two trends that are emerging in the Asian oil and gas job market as candidates vie for opportunities: a push towards a localization of skilled talents by oil and gas companies and a need for expatriates to be flexible in their

Demand for expatriate staff is likely to decline after Malaysia’s national oil firm Petroliam National Berhad (PETRONAS) revealed that it would not offer risk sharing contracts if the price of oil remains below $80 a barrel. “That will mean that a number of expatriates will not be required and there will be a move to localize Malaysia-focused providers. There will be a demand for Malaysian drilling engineers, Malaysian geoscientists. If you are a local in these markets, your job is still very secure and you can still enjoy a pretty strong salary and rates,” Gibson told Rigzone. “PETRONAS’ key agenda is the nationalization of talents in Malaysia,” Hydrogen’s Gregory added. Expatriates seeking job opportunities in Asia should therefore manage their expectations as the region does not have the capacity to absorb job candidates made redundant in the North Sea or in the U.S. Gulf of Mexico. “Asia … has a lesser capacity to absorb these people and the supply is putting extra downward pressure on salaries for expatriates here ... With Australia also going backwards [as several upstream liquefied natural gas construction projects near completion] it is going to be a very challenging market for people looking for jobs in the region,” Gibson explained. “We have already seen people taking roles for 30 percent less than what they were working on a year ago; still pretty good money … but it is a buyer’s market, and typically the people who are getting work are the people who are being flexible … If you look at how much people have to discount their salaries it has almost tracked the fall in oil prices,” he added. Candidates’ flexibility has emerged as a significant factor in the Asian oil and gas job market as the industry downturn has currently provided employers an advantage in filling vacancies, even for work in

Forbes' 2015 Oil & Gas Layoffs Estimates Source: Forbes | * Estimates as of March 17

Oilfield Services

58,586 Layoffs

E&P

8,362 Layoffs

Manufacturing

4,521 Layoffs

Pipeline

1,250 Layoffs

PAGE 37 37 PAGE

“We have gone within a three-month period from a war for talent/extreme skilled shortages to a total glut of talent and if you are a company that is in the business of expanding right now, it’s a dream market. You have got some fantastic people at very reasonable salaries … in countries like Malaysia, Thailand and Indonesia, there is going to be a very large push to localize staff or businesses,” Gibson explained.

Total Layoffs 72,719 remote areas, particularly for expatriates. “Previously, they had to pay foreigners to come in to Asia and even that was hard. Competing against the United States was challenging last year. Competing against the tax free world of the Middle East was also challenging. And some of the projects were quite remote, like in Papua New Guinea. People weren’t that keen but now employers can have the pick of people,” Gibson told Rigzone.

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expectations to secure employment in the region.

DOWNSTREAM ROUNDUP:

LIGHT CRUDE ABUNDANCE CHANGING US REFINING RIGZONE CAREER GUIDE

BY MATTHEW V. VEAZEY DOWNSTREAMTODAY STAFF

U.S. refiners are reducing their dependence on foreign crude oils, thanks to greater access to discounted domestic grades. Although the changing supply picture has helped U.S. refiners’ bottom line, it has also become a cause for concern, according to industry experts interviewed by DownstreamToday, Rigzone’s sister site covering the downstream side of the oil and gas value chain.

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U.S. refiners have been modifying their facilities “to cope with a mismatch between crude slate and refinery configuration,” said Michael Wojciechowski, Americas director of refining and oil markets research with Wood Mackenzie.

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“In the coming year, exports of minimally processed condensate will increase on the heels of a clarification by the U.S. Commerce Department on the decades-oil crude oil export ban,” said Wojciechowski. “Condensate exports have renewed debate surrounding the potential removal of the ban. If the ban were removed, domestic crude oil prices would rise toward international prices, reducing the margins of U.S. refiners.” Although lifting or weakening the crude export ban likely would chip away at the discounted crude prices relative to international markets that U.S. refiners now enjoy, the refiners should still maintain some margin advantage, said Kevin Waguespack, executive vice president with Houston-based downstream consultant Baker & O’Brien, Inc. “The exported oil will have to seek distant waterborne markets, which will still result in price discounts and advantaged margins,” Waguespack explained. “So, there is plenty of opportunity for all

Outside of the United States, refiners are facing a different set of competitive pressures. As the highest-cost suppliers in the Atlantic Basin, refiners in Western Europe will continue to face stiffer competition from large export refineries in the Middle East, said Waguespack.

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The abundance of light oil also begs the question of where that production can find a home. In March, the American Fuel and Petrochemical Manufacturers reported a third-party study found that domestic refiners have plenty of processing capacity for growing U.S.-sourced crude supplies. Meanwhile, U.S. oil producers are eager to pursue a more lucrative global market that is slowly opening up to them.

refiners to overcome the logistics and processing constraints to increase the amount of light-tight oil processed in their refineries.”

“We expect additional capacity reductions going forward” despite the fairly steady margins Europe’s refiners enjoyed throughout the recent oil price collapse period, he added. “However, at the same time, companies are making investments in the better-positioned refineries.” Margins in Asia have also remained fairly steady during the oil price collapse but Japan has been taking steps to cut refining capacity, continued Waguespack. “The performance of the export refineries in the region – South Korea and Singapore – will largely depend on China’s long-short position on light products,” he added. Elsewhere, the oil price crash has curtailed capital spending, added Wojciechowski. It “has severely reduced national oil company budgets, delaying refinery investments in counties such as Mexico, Brazil, Peru, Colombia and Russia,” he said. Read on for additional trends in various corners of the downstream world.


“U.S. production growth is overwhelmingly light oil, while the complex refinery configuration is optimized for heavier crudes. In response, investments have been made in crude distillation capacity expansions and in standalone condensate splitters.”

CATEGORY Downstream GOESRoundup: HERE Light Crude Abundance Changing US Refining


PETROCHEMICALS

PIPELINES

Cheap and abundant natural gas has been a boon to the U.S. petrochemicals industry in recent years, leading to what has been termed a “renaissance” for the domestic chemicals industry. Much of the industry’s enthusiasm has been directed toward building new ethylene cracking capacity, primarily on the U.S. Gulf Coast.

Many eyes in the North American pipeline community will continue to focus on shipping crude oil from Canada to the United States, predicted Nicole Leonard, analyst with Denver-based BENTEK Energy.

“The current build of U.S. ethylene crackers and related derivatives is the most concentrated deployment of capital and investment in the history of the U.S. petchem industry,” said Andrew Walberer, partner and leader of the Americas Chemical Practice with global strategy and management consulting firm A.T. Kearney. The current slump in crude prices, however, has suppressed some of the petchem sector’s appetite for new ethylene cracking capacity, Walberer said. Crackers that use crude oil-based naphtha – as opposed to ethane and propane, which are derived from natural gas liquids (NGL) – find themselves more cost-competitive now that oil prices have fallen dramatically, he explained.

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“The decline of oil prices has had a negative effect on petrochemical earnings of U.S.-based chemical firms as their shale gas-based feedstock advantage has been reduced versus naphtha-based competitors in Europe and Asia,” he said. “The decline in natural gas has mitigated the oil decline impact to some degree, however.” A diminished U.S. feedstock cost advantage, coupled with the startup this year of large global projects such as the Dow-Saudi Aramco Sadara complex in Saudi Arabia, could prompt petchem firms to pare down their list of 12 announced U.S. ethylene cracker projects, added Walberer. “Some of the projects may get delayed or canceled if the owners/investors change their minds … it will be interesting to see how things play out in 2015 and early 2016,” he said. “The current volatility in global gross domestic product, combined with the uncertainty in oil, natural gas liquids and gas prices may cause some to reconsider, but we’ll get more clarity this year on how the industry looks through 2020.”

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“I think that, obviously, Canada to U.S. crude oil export pipelines will continue to be a big story,” said Leonard, citing TransCanada’s Keystone XL and Enbridge’s Alberta Clipper (Line 67) expansion projects as examples. Enbridge’s Line 9 reversal, which will give Eastern Canada refineries better access to crude oil produced in Western Canada, will also continue to make headlines, she added. Within the United States, how soon oil pipeline companies relieve shipping bottlenecks will hinge on region and oil price, Leonard added. A prolonged oil price slump would diminish the need to fill new pipelines in plays with higher production costs such as the Bakken shale formation and Denver-Julesburg (D-J) Basin, she noted. “In the D-J and Bakken, they do need that pipeline infrastructure because they’re so reliant on rail, but the high differentials put them at greatest risk of not achieving as much production growth,” Leonard said. However, one oil-producing region that is in a stronger position is the Permian Basin in West Texas, she added. “The Permian is one of the more prolific plays that will weather the storm the best,” Leonard noted. “In the Permian, they want to continue to build pipelines.” In regard to natural gas pipeline capacity, much of the infrastructure build-out should continue in the Eastern U.S., continued Leonard. Gas supplies from the Marcellus Shale will need to reach the East Coast LNG export terminals as well as industrial facilities in the Southeast, she explained, adding that low gas prices could prevent midstream companies from optimizing new infrastructure. “Whether the pipelines will all be full, that’s a risk they’re taking,” she said. “In the Northeast, what we’re seeing is so many pipeline projects have been announced in the last year that there’s a very real chance of overbuilding natural gas pipelines. Still, there is a need to increase pipeline capacity between the Northeast and Southeast.”

Because the price of liquefied natural gas (LNG) is tied to that of crude oil, the momentum behind some large LNG export projects in Australia, Canada and the United States has faltered over the past year. However, the developer of a smallerscale liquefaction project on the Texas Gulf Coast expresses optimism about the long-term outlook for projects with a solid economic footing. “The volatility of oil and natural gas prices presents both a challenge and an opportunity,” said Kathleen Eisbrenner, founder and CEO of NextDecade, LLC, which is developing the Rio Grande LNG project in Brownsville, Texas. “On one hand, projects that were originally marginally viable are no longer viable, and the market will see them being eliminated or postponed. Meanwhile, those projects with robust economics will continue to be viable at low oil prices, making them even more attractive and viable.” Eisbrenner is also bullish about the long-term attractiveness of LNG on the energy market. “LNG continues to enjoy the key benefits associated with natural gas as a feedstock,” she explained. “Its abundance and diverse applications, among other factors, means it will compete very well with other sources of energy.” In the nearer term, Eisbrenner will be paying close attention to the volatility of oil and natural gas prices. “One particular topic to watch is how Henry Hub-denominated pricing will hold up versus oil and Japan Crude Cocktail (JCC) pricing with customers,” she said.

U.S. crude oil inventories have been steadily rising into record territory, and there is a very real possibility that all of the country’s land-based oil storage facilities will run out of capacity in 2015, according to a Houston-based oil markets expert. “The market is very fluid at this time, but I expect to see storage continue to grow for some time to come,” said Brian Busch, oil markets and business development director with Genscape, Inc.

PAGE 41

LNG

TERMINALS/STORAGE

The change in the forward price curve structure for crude oil – not the recent steep drop in the price of oil – is motivating oil storage facilities to build inventories, Busch noted. The price curve has moved to contango, which occurs when crude oil commands a lower price via nearterm spot purchases compared to longer-term futures contracts, he explained. Backwardation, the opposite of contango, is a disincentive to building oil stocks. It occurs when crude oil is relatively scarce and commands a higher price in the short term. “At current rates, (the U.S. oil storage hub) Cushing, Oklahoma, could be operationally full sometime in early May,” said Busch. “It would take several months before all the on-land storage in the United States would become operationally full, but we could see it happen in this calendar year.” Oil storage providers are working to relieve the situation by adding new capacity – roughly 40 million barrels in Petroleum Administration for Defense District (PADD) 3 (Gulf Coast) alone, Busch noted. “This will include a couple of new terminals, all of which will have access to water transportation,” he said. “However, ultimately, storage can’t resolve the situation. Eventually, supply and demand will have to rebalance.”

The JCC index is often used in long-term LNG contracts.

Matthew Veazey

COVER

I Cover Downstream


Industrial demand growth in Mexico should also necessitate new natural gas pipeline capacity from the United States to its southern neighbor, Leonard said.

RIGZONE CAREER GUIDE PAGE 42

DESPITE LAYOFFS, COMPANIES STILL ACTIVE IN COLLEGE RECRUITMENT BY KAREN BOMAN

In spite of the layoffs and cutbacks in spending, the oil and gas industry’s interest in recruiting on college campuses for internships and full-time positions has not disappeared. Without exception, the decline in low oil prices is prompting oil and gas companies to scale back the number of students they’re hiring for internships and jobs, Phillip Tenenbaum, global energy vertical leader with Mercer LLC, a global consulting firm focused on talent, health, retirement and investments, told Rigzone in an interview. But all the companies that Mercer works with are saying they still plan to maintain a presence on college campuses and make a small number of offers. “The rationale is that they’ve built a pipeline with the universities and a positive reputation with the university career centers,” said Tenenbaum. “They don’t want to undo the good reputation they have on campuses by totally suspending recruitment.”

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The current oil price downturn hasn’t changed the fact that the oil and gas industry will face a shortage of talent. In the next 3 to 5 years, the industry will not only need petroleum engineers and other types of engineers such as plant and operations engineers, but geologists and geoscientists. The industry also will face a shortage of non-technical workers, such as project managers, Mercer found in a recent talent outlook and survey. The industry knows it needs to continue recruiting college graduates and progressing them quickly through an organization’s ranks to fill the trough between older workers who are retiring and younger millennial workers, said Tenenbaum. By doing so, the industry hopes to break the cycle of having a missing generation in the oil and gas industry. A 2014 Mercer study found the industry is facing a classic double hump, with a big wave of retiring older workers, a smaller group of mid-range managers, and then a large wave of younger workers. The gap in the number of workers between baby boomers and millennials resulted from the significant industry downturn in the 1980s that deterred large numbers of Generation Xers from entering the industry. The shortage of entry level and senior level workers seen six months ago has been pushed somewhat to the backburner because of low oil prices, but remains true today. Once prices recover, the industry will still face the fact that the number of university students pursuing degrees in STEM, or degrees in science, technology, engineering and mathematics programs, will be less than what’s needed. Retention also will remain an issue. “Survey after survey has found that salary isn’t the number one reason a person leaves a job, but their experience with their immediate supervisor.” To address retention, Mercer is seeing the industry moving from a buy strategy to a build strategy. Instead of poaching talent, companies are looking

Tenenbaum said that industry needs to do a better job in communicating the fact that the industry is not only high-tech, but in repairing its image as an unsafe and environmentally unfriendly business. To attract college graduates, the industry is also using the lure of international travel – and the opportunity for graduates to experience the world early on in their careers – as an incentive.

PAGE 43

“They understand that in the past, they had taken more drastic action, and it came back to hurt them in the longer-term.”

to spend time getting young workers in the door to train, develop and hopefully retain them.

UNIVERSITY VIEWPOINT ON OIL, GAS RECRUITING Two facets exist for the story on hiring in today’s oil and gas industry, Ramanan Krishnamoorti, chief energy officer at the University of Houston (UH), told Rigzone in an interview. In conversations with industry groups and companies, the oil and gas industry says that it should keep hiring people, and has the mechanisms to keep hiring. But in discussions with individual entities, companies currently are shedding jobs, including many senior level jobs, and still honoring offers made, but aren’t making any new offers. “It’s a somewhat nuanced position,” said Krishnamoorti. “Everybody understands that, from a broader perspective, they have to keep people in the industry and they have to keep getting people into the field and can’t lose momentum.” Companies are grappling with having expensive talent on their payrolls, many of whom are older workers wanting to retire. These workers will need to be replaced, but the downturn in oil prices have made them reluctant to hire, except for certain positions. With a large number of offshore projects placed on hold, companies are laying off workers, but trying not to lay off so many that they can’t resume operations when things improve. “There’s a lot of tension at this point,” said Krishnamoorti of the industry. However, the expectation is that the downturn will be short-lived. Despite the current layoffs and more cautious approach on hiring, Krishnamooriti said the industry will still have future talent needs beyond the downturn. And Krishnamoorti still sees big demand


Most companies are also trying to honor offers already made, and to bring in interns, albeit fewer in number. Tenenbaum believes these efforts reflect positively on the industry.

Despite layoffs, companies still active in college recruitment


for people in the areas of supply chain and safety as well as areas of technological innovation. Oil and gas companies are still interested in recruiting on college campuses, but instead of looking for reservoir engineers and production engineers, they’re looking for students with degrees and skills to help companies get the most out of production data and to operate safely. Companies are also looking for college graduates who are not just experts in one area, but can understand the holistic picture of where the industry is going. “People who can look at the whole value chain will become increasingly invaluable,” said Krishnamoorti.

PAGE 44

For innovation roles, Krishnamoorti sees demand for new interns and college graduates with petroleum and mechanical engineering backgrounds, as well as backgrounds in chemistry, physics and nanotechnology. Krishnamoorti also sees future demand for college graduates in areas such as Big Data and cybersecurity. Despite the layoffs, times such as these offer opportunities to bring in a variety of different talents, and for companies to make step changes versus incremental changes, Krishnamoorti noted. To ensure that students are not just experts in one rabbit hole, UH has adjusted its curriculum to include a variety of different minors for students, such as supply chain, and an integrated program for a bachelor’s of science degree and a masters of business administration. This will allow students to better understand the business as a whole. Despite spending cutbacks and layoffs due to low oil prices, middle-skills employees will still be in RIGZONE.COM

demand in oil and gas. Dr. Melissa N. Gonzalez, vice chancellor-workforce and economic development with Houston-based Lone Star College, told Rigzone that the spending cutback resulting from low oil prices means that oil and gas companies will rely on older equipment, creating demand for welders, electricians, machinists and drivers. “Many companies often use downturn periods to cross-train current employees,” said Gonzalez. “Also during the downturn, workers return to college to get retrained and add new skills to make themselves more attractive to companies.”

COMPANIES “SHOULD ALWAYS BE ON COLLEGE CAMPUSES” Even with low oil prices, BHP Billiton Ltd.’s position is that it should always be on college campuses recruiting future talent. “We recognize that the industry as a whole has an aging workforce,” said David Purvis, vice president of engineering with BHP, in an interview with Rigzone. BHP is experiencing an attrition rate of workers similar to the level occurring across industry as a whole. To offset this attrition, BHP seeks to bring in top quality talent not only in technical roles in engineering and geoscience, but health safety and environmental roles, data management, human resources and supply chain. Purvis told Rigzone that it takes a long-term approach with its talent recruiting strategy. That strategy focuses on recruiting interns from universities and converting those interns into employees once they graduate.

The company sees its recruiting approach as an extended interview process, in which BHP determines if the students have the background they need. It also gives students a chance to interview BHP and see if the company and its culture are a fit for what they’re looking for. For this reason, the company likes for college students to intern at BHP for a couple of summers. In 2015, BHP will have 55 interns joining BHP for the summer. Last year, BHP had 60 interns in its program. Purvis estimates the number of interns next summer will likely be around 50. The background of its interns is more heavily weighted towards technical areas; about one-third of its interns have nonengineering backgrounds. “As we engage with our employees at this time, particularly our junior employees who haven’t lived through a price downturn,” Purvis said, “The company emphasizes the importance of building a good foundational skillset and doing good work.” “If you have good commercial skills and you’re delivering quality work for the company, the concerns over price volatility should be less relevant,” Purvis said.

INDUSTRY STILL INTERESTED IN COLLEGE INTERNS, GRADUATES Oil and gas major BP plc and the wider energy industry is adapting to market changes which requires it to adjust plans and resources in line with operating realities in order to remain productive and competitive, a BP spokesperson told Rigzone.

“While this challenging economic environment has required us to make some difficult decisions, we will honor our commitments to our interns during 2015 and provide them with a challenging and positive experience while at ConocoPhillips,” a spokesperson for ConocoPhillips told Rigzone in an email statement.

PAGE 45

Interns from BHP’s petroleum and coal-based operations in the United States are brought together for formal training events, which allow interns from various disciplines to learn to work together and learn from each other. While understanding the overall business energy landscape is important, Purvis stressed the importance of interns building a strong foundation in their chosen field.

“Our commitment to graduate and internship hiring remains, however it’s necessary for us to adjust intake and other related spend in line with this environment. We remain committed, today and tomorrow, to supporting the ongoing development of the energy industry’s talent.”

“In addition, ConocoPhillips will honor outstanding job offers that have been made to graduating university students.” Despite the current oil price environment, Exxon Mobil Corp. continues to have an active campus recruiting program, a spokesperson told Rigzone. The company also is involved in a number of initiatives to encourage students to pursue careers in STEM. In February 2015, ExxonMobil reported it would encourage girls to pursue STEM careers through its 12th annual “Introduce a Girl to Engineering Day” program, which will be held over several months this year at 14 ExxonMobil and XTO Energy sites nationwide. More than 2,000 middle-school girls across the United States are expected to take part in the program, which builds on the success of ExxonMobil’s “Be An Engineer” efforts. ExxonMobil launched the “Be An Engineer” program in 2014 to highlight the real-life engineers behind some of the world’s greatest technical achievements and provides resources to encourage students to choose engineering careers. A Royal Dutch Shell plc spokesperson said the company’s current university recruitment targets have not been impacted by fluctuations in oil prices, and that graduate career opportunities at the company remain healthy. Chevron Corp. also continues to hire both new college graduates and interns. The company’s intern program has been recognized by Glassdoor as among the 25 highest-rated companies for internships in 2015, ranking number 2 behind Facebook.

Karen Boman COVER

I Cover Technology


Through its intern program, students are exposed to a mix of challenging field work assignments and formal training through lunch-and-learns with executives, weeklong sessions to learn about the company’s culture and history and training in soft skills such as presentations and teamwork. At the end of the summer, the interns give a presentation, outlining the project they pursued during their internship.

From the Mind of a New Grad

Proudly Presents

57

Young Professionals’

{

52

58

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Top Tips Applying for Your First Graduate Job in European Oil, Gas

Outlook Exploring the Next Generation of Oil, Gas Employees

Successful Career Development Strategies: The Intangibles’ Toolbox

}

A LETTER FROM RIGZONE Valerie Jones

hile the entire oil and gas industry is grappling with the effects of the drop in global oil prices, anxious and eager young professionals are preparing to enter the job market with hopes of landing a coveted position in the field of oil and gas. RIGZONE CAREER GUIDE

W

I remember a conversation I had with my dad a few years back and he offered me some great, yet simple career advice that still resonates today. He said, “Do your absolute best at what you know how to do and what you don’t know – learn. Approach each new job or position with that same mindset.” It’s true that on-the-job experience is invaluable, and that it will come – in time. And once you couple that experience with the education and skills you already possess, you’ll prove your worth in the industry, making you more marketable and better suited to sustain the cycles of the industry.

PAGE 48

Young professionals entering the industry today have a unique opportunity. As the Great Crew Change is still a significant industry challenge, oil and gas companies will be depending on its younger cohort of employees to hit the ground running – bringing in soft skills and tech-savviness to aid in continued success. Once the energy sector is on the upturn, the need for jobs involving project management, sales and engineering will need to be filled, as experts have already expressed. The mere fact that the industry is actively seeking to engage younger generations and more minorities and women in science, technology, engineering and mathematics (STEM) education is paramount; it means there is a great demand in the workforce for individuals with these specified skills and education. It also means they don’t have enough candidates to meet the demand. This leaves the door open for massive opportunities for young professionals.

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rz _ careernews

At Rigzone, we’re extremely excited about the future. That’s why Rigzone recently merged with OilCareers to expand our global access to the industry’s jobs, data and insight. We’re dedicated to providing you with access to in-demand jobs across the globe through our Rigzone Jobs as well as up-to-date industry news. While taking into account the current state of the industry, this special section of the Career Guide is tailored with you – the young professional – in mind. We provide interview tips and insight on hiring during a downturn; we also answer some of the most common questions recent graduates have about entering our industry and so much more. This is your gateway to the industry - your foot-in-the-door - to help you begin your career in oil and gas. It doesn’t stop with our Career Guide. Rigzone is 100 percent dedicated to providing you with resources to help you navigate through your career journey in oil and gas. If you haven’t done so already, take time to upload your resume to Rigzone. While you’re there, scan the most recent job postings, check out some upcoming industry events (great opportunities to network) or read the latest industry headlines. Be sure to also follow our social media handles … we strive to deliver the news when and how people want it – whether at home, work or on-the-go! The truth is, you’ll need to be proactive in your job search. In order to do that, you’ll need to know what oil and gas recruiters are looking for in candidates and what they expect in the near future – also inside this Young Professionals section of our Career Guide. Turn the page and let us help you jumpstart your career in one of the most vital industries in the world.

-Valerie Jones, Careers Editor


PAGE 49

CATEGORY GOES HERE

Recruiting Professionals Discuss Oil, Gas Hiring During Industry Slowdown RIGZONE CAREER GUIDE

BY GENE LOCKARD

Oil and gas talent professions are on the front lines when it comes to gauging interest from energy companies in hiring new workers, as well as assessing the level of interest that job candidates have in oil and gas jobs. So, Rigzone recently reached out to experienced energy recruiters at four agencies to learn how energy industry hiring was faring in the aftermath of the abrupt drop in crude oil prices in recent months. The talent professionals are Carolyn Stewart, regional business development manager of North America at NES Global Talent; Mark Charman and Eric Peters, CEO and managing director for the Americas, respectively, for Faststream Recruitment Group; Cindi Boudreaux, senior recruiter and account manager for Clearpoint Creative; and Christine Norris, division manager for Professional Alternatives (Proalt). Each has a unique perspective on the current state of hiring for the oil and gas industry.

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Rigzone:

Boudreaux: As with all downturns, the total

number of hires will drop, but companies will still be hiring for critical positions. Unfortunately, a lot of the oilfield-centric jobs are being cut, and then of course there are some mergers and acquisitions that are affecting layoffs, too. There are certainly well positioned segments that will still be looking for good people.

Norris: My thoughts are that recruiting will be

at a true minimum – maybe if there are layoffs, we’ll place temps in diverse positions to fill in the gaps with a low overhead and no hiring commitment attached.

What positions do you see opening up within the energy industry? Are you seeing particularly heavy recruiting in certain areas?

Rigzone: Based on what you’ve seen, is there

receiving continued requests for health, safety and environmental roles along with “early works” type roles such as inspection. We have also had a recent increase in client requests for project services type roles such as those related to cost, project controls, etc. due to a need to monitor costs and expenditures.

Applicants seeking to gain employment in the energy industry should always highlight relevant skills. Given the current market conditions, it would be beneficial for applicants to highlight any

Stewart: Currently, NES Global Talent is

Visit bit.ly/1DAVltk for the full story! RIGZONE.COM

Charman:

There are always electrical engineering skill shortages, and there is still a need for some of the hard-to-find G and G roles and reservoir engineers. So far, we haven’t seen a change. You talk to one company and they’re laying off. You talk to another and they’re hiring. It’s a funny market right now.

anything that applicants should be doing to better position themselves for a career in the energy industry?

Stewart:

over the last few years has been one of passive candidates. If you are half-decent, you’ve been getting calls from both internal recruiters, invites from LinkedIn, and from companies like Faststream. So, candidates became passive. In the new world of oil and gas, candidates need to remember that they have to be active. They need to be higher-profile, and to actively apply for positions, rather than wait for positions to come to them. The need to have a bigger-picture perspective of the marketplace, and to be more open-minded to, say, accepting an overseas project.

Boudreaux: In times like these, applicants that

have a breadth of skills versus a very specialized focus tend to do well as there is more focus on multitasking and consolidating roles. The work is always going to be there – someone who is willing and able to step up and take on more responsibility will automatically be better positioned as oil companies look to create efficiencies. Technical skills are obviously critically important in the industry.

Norris: Be open and amenable to a role that may

not be in your specific wheelhouse, get in where the company needs you, learn the business from diverse areas, and be on board and committed to transition and grow as the companies begin to climb again.

Rigzone: The energy industry has put some effort

into highlighting the need for new workers. Could it be doing something different or new to reach out to potential workers?

Stewart:

Continuing to add to the workforce is a topic at the forefront of talent acquisition. The energy industry should consider reaching out at an earlier stage, prior to college, particularly to attract women in to the industry. The industry could also focus on retention by implementing

Peters:

Companies can’t over-hire. They need to adopt a flexible staffing environment, including using contract workers. You see this more overseas than in the United States. Europe has always had more of a flexible staffing model, using contract labor in the 80-20 rule, which grew in I.T. staffing in the 1980s, during the big technology boom.

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Charman: The oil and gas industry market place

and growing mentoring programs and focusing on being a best employer in the market.

When you look at offshore crews, there is a predominant use of contract labor. Onshore – at the corporate offices, in the design team, in the electrical engineering sectors and other areas – more and more candidates are going to have to be open to doing contract work, and coming in during hiring freezes as a contractor. Companies are going to have to look at this talent pool of available people who were laid off and are open to doing contract labor.

Boudreaux: The industry has been doing a good

job with proactive education and awareness to raise overall energy literacy. It should continue to do what it has been doing. There are great things happening in oil and gas, and the industry needs to continue to tell and promote those stories. In some respects it will take time. It is an image and interest challenge, and more and more programs are being created to get the younger generation interested in science, technology, engineering and math – the STEM careers.

Norris: From what I know of our clients and

others, they’re doing a good job of targeting individuals at the college level and even in earlier school years. College and university recruiting is high, and many of our clients payroll talent through us whom they’ve recruited during campus recruiting and on their own.


examples where they have completed a project under budget, noting any relevant cost savings. With a focus on cost savings and reduction, this would be of great interest to clients.


Top Tips: Applying for Your First Graduate Job in European Oil, Gas

By Jon Mainwaring

Times are tough for young people about to graduate from universities across the European Union. In 2014, the European Commission released figures that showed there were almost 5.4 million EU citizens under 25 years old who were unemployed – equating to some 22.8 percent of all the region’s young adults. During the past few years, one industry that has sought out gifted young people with technical skills was the oil and gas sector as it aimed to stem the staff shortages it began to experience amid the Great Crew Change. However, the recent sharp decline in the oil price means that finding a job in oil and gas is going to be a whole lot tougher for young graduates with no prior experience of the industry. Two companies that operate strong graduate recruitment programs are BP plc and OMV Group. Here, Rigzone talks to them about how university students can best prepare their applications to the industry’s graduate recruiters.

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Both firms require that students applying for entry to their graduate recruitment programs fill out online application forms that can be found on the companies’ respective websites. These involve a set of questions about the candidate’s academic background, extra-curricular activities, work experience and the candidate’s motivations for wanting to work at the company in question. “We open for applications around mid-September, and the closing dates for applications are: Nov. 24 for trading; Dec. 15 for all other graduate roles; and Jan. 26 for interns. However, we may close these applications earlier if we have a strong candidate pipeline, so we would encourage all candidates to apply early,” Suzy Style, BP’s Head of UK Graduate Recruitment, told Rigzone.

KEEP YOUR DETAILS BRIEF & TO THE POINT

A spokesman for OMV said that although the company usually prefers students to use the

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application form on its website, it will accept CVs handed to its recruiters by students at campus recruiting fairs or at other recruiting events. “Try to keep [the CV] informative but quite lean. We are realistic that a graduate isn’t going to have a wealth of experience, so be open and honest about your achievements, qualifications and interests. It should ideally detail, from the top down, your qualifications, synopsis and profile of you as a person (no more than one paragraph), professional experience (internships, part time jobs) and then a little about yourself personally,” OMV’s spokesman said. Although BP does not accept CVs itself, Style also recommends that students sending them to other oil and gas recruiters should keep them brief: “Two or three pages, ideally.”

DON’T LET LACK OF EXPERIENCE PUT YOU OFF

Students with no direct work experience in oil and gas are very welcome to apply for a graduate position with BP, according to Style. “Just because you don’t have experience in the oil and gas sector, it shouldn’t put you off applying. Whilst we recruit a lot of our graduates from our summer internship program, there is a huge variety of roles on offer at BP, not just within engineering. We need graduates to work

“As long as you have done your research on the company, are able to demonstrate an interest in the oil and gas industry and a willingness to learn more, and have highlighted any extracurricular activities you have been involved in … have some level of work experience, your application will be considered. This work experience can be anything from working in a student union bar to voluntary work.” OMV told Rigzone that it will consider students who do not have qualifications directly applicable to oil and gas. “Of course in certain disciplines, if we want a junior geologist we are not going to hire a business graduate without any expertise in this field, but for broader areas such as HR, sales and marketing, project management, etc., we would look at a broad range of qualifications,” OMV’s spokesman said.

USE UNIVERSITY ACTIVITIES TO DEMONSTRATE YOUR QUALITIES

Student life affords candidates with plenty of opportunities to demonstrate that they are not just good academically, but that they have other attributes as well. “At BP, we look for graduates who can demonstrate a host of qualities including initiative, ambition, communication skills, good teamwork, as well as a range of technical skills and qualifications,” Style said. “For the ‘softer’ skills, there are many things besides work experience and academic achievement that help communicate these to a potential

“If you have helped to organize an event, undertaken any voluntary or charity work, or even had a summer job, then tell us about it. A lot of applicants will have outstanding academic credentials, and while we appreciate your work experience might be limited at this stage, your hobbies and achievements are an important way of showing us you have the skills and qualities we are looking for.” OMV added that experience of traveling and working overseas is “always interesting to see” and that it illustrates to the company that the candidate “is open minded and culturally aware”.

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A keenness to work at BP and evidence that you have been industrious at university will help.

employer. For example, being president of a society or captain of a sports team whilst at university shows your ability to lead a team.

THE ABILITY TO WORK IN A TEAM

Students should be wary of appearing too aspirational at the application stage. BP and OMV want ambitious candidates but first and foremost they need candidates who can fit into their respective work cultures. “It is important to have ambition and the desire to succeed in your role, but just as important is your willingness and ability to work well as part of a team, as well as having the right skills for your role,” Style said. OMV said: “Some applicants tend to go a little over the top which can come across too strong. Too keen. The best way to present yourself is to be honest. “This is an opportunity to tell us about you. There is nobody else like you, so explain why you are so unique, so interesting. Being honest does this in a professional manner. We don’t expect people at such stages in their career to be completely polished or the perfect candidate, but they can explain to us what makes them tick, what they want to achieve and their motivations.”


in HR, legal, accounting, trading, and numerous other disciplines besides,” she said.


S

howing a prospective employer that you have the requisite skills begins with a solid CV (or résumé) but the next step is to attend an interview where you can not only demonstrate your oil and gas knowledge but show that you are the team player who the company needs.

Preparation PAGE 54

Swift Worldwide Resources CEO Tobias Read told Rigzone that his company, which interviews people daily, sees most success from candidates who carry out a series of steps, starting with thorough research of the companies that they apply to. “Visit the company website and know about its history and growth over the years. Know the job description so you can fit your background most effectively to the company’s needs,” Read said. “Prepare questions for the interview and take notes during the interview.” All of the recruitment professionals Rigzone spoke to agree with this. But Ann Perrins, HR vice president for Upstream Resourcing at BP, pointed out that it is a good idea to visit any relevant social media platforms as well, “so that you understand the company’s values and are up to date with the latest company news”. Perrins also added: “It may seem obvious but RIGZONE.COM

make sure that you know the details of your CV inside out, so that you are prepared to answer any questions the interviewer may pose around it. It is also a good idea to review your job application and be prepared to talk around it, as it may have been a while since you submitted it.” Pam Radage, HR manager at North Sea-focused independent oil and gas firm EnQuest plc, said: “It really is all about preparation. If you fail to prepare – prepare to fail. Do your research on the company and try to get a good understanding of its business, strategy, goals, objectives and culture. This will help you understand what skills, knowledge and experience you can bring that will support the business, and will also help you articulate why you want to join the company and what questions you want to ask. “There are lots of resources at your disposal including websites, publications such as annual reports, company magazines and newsletters, online media coverage and social media sites. Don’t forget to tap into one of your most useful and powerful resources – your network of contacts. “As well as researching the company, it’s also useful to have an understanding of the bigger picture. In other words, where the company fits within the wider oil and gas supply chain.”

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“As well as researching the company, it’s also useful to have an understanding of the bigger picture. In other words, where the company fits within the wider oil and gas supply chain.”

When it comes to interview attire, turning up in jeans and a T-shirt is probably best left to those looking for jobs at funky technology start-ups. For an oil and gas role, you still need to dress smart. “Appearance and being well–presented is still as important as ever,” EnQuest’s Radage said. “It’s an old adage, but first impressions really do count and last. Being well-presented speaks volumes. It shows that you have made an effort and that the interview/opportunity is important to you. “Think about the impression you want to create and dress appropriately for the role. Creating the right impression from the outset will get you off to a good start and boost your confidence.” Christian Dorfinger, manager for Recruiting and Employer Branding at Austria’s OMV, added: “Dressing smart for the interview is essential. Make a good impression and don’t experiment.” Swift’s Read backs this up with some practical advice about what to wear. “Appearance is still an integral part of making a good first impression. Women should wear a suit or conservative dress. Men should wear a conservative suit, long sleeved shirt, and tie. Wear minimal amounts of jewelry and perfume/ cologne,” he said.

Coping with Nerves

Most people get nervous in interviews but TAQA Bratani HR Manager Gary Hunt believes a candidate can use nerves to his advantage. “It’s important to be yourself and nerves will always have a part to play for each and every one of us. However, nerves can often trigger an ultimately more polished performance. Think of famous movie stars

and singers who are haunted by nerves. This will help you to believe in yourself and recognize that you are not alone,” he told Rigzone.

Conduct

Swift’s Read reckons that candidates should take confidence from the fact that they have been called to an interview in the first place. “The company has asked to interview you because they think your résumé matches what they need,” he said. “This is especially true for our contractors. For each submittal, we carefully select candidates from our database of 200,000 qualified candidates that possess at least 90 percent of the desired criteria. The interview is more about making sure your personality is a fit and to learn more about the skills listed on your résumé.” BP’s Perrins believes the question of nerves ultimately comes back to good preparation. “Knowing you are as well prepared as possible will give you more confidence on the day. It is also a good idea to arrive early, so you have some time to relax and gather your thoughts before the interview, ensuring you are as calm and collected as you can be,” she said. OMV’s Dorfinger agrees with this view. “It’s generally important to be authentic and prepare upfront. Never go to an interview with no plan in mind,” he said. How candidates should interact with their interviewer (or, more commonly these days, interviewers) is a common concern. Do you only offer information about yourself when asked? Should you ask your own questions?


Presentation

INTERVIEW TIPS FOR GETTING THAT OIL, GAS JOB

“...Just relax, smile, be yourself and have confidence in your ability” RIGZONE CAREER GUIDE

BP’s Perrins has this advice:

TAQA’s Gary Hunt agrees with this.

“Good body language and eye contact are important in an interview situation, of course. But most importantly, just relax, smile, be yourself and have confidence in your ability.

“Asking questions of the interviewer is important since it should be a two-way process and will demonstrate that you are enthusiastic and have an appetite to know more. There are no specific rules around when to ask questions; ordinarily it’s towards the end, but depending on how the conversation evolves, it can be appropriate to ask questions throughout the interview session,” he said.

“If you don’t understand a question, it’s okay to simply ask the interviewer to clarify or repeat the question, and if you don’t know the answer, be honest. It’s not always about a right or wrong answer, but about the way you approach the question. “Don’t always feel the need to answer right away. Take a moment to really consider the questions that you are being asked, and try to use plenty of examples from your past experience, from as many different roles and organizations that you have worked for as possible. Varied and interesting examples will add substance to what you are saying, and help an interviewer to visualize the skills that you might bring to the organization.”

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EnQuest’s Radage points out that it is important to remember that an interview is a two-way process. “It is as much about you finding out if the job and the company is right for you as it is the interviewer finding out if you are the right candidate, so it is really important not to be passive,” she said. “Ask questions. It shows you are keen and interested and having a pre-prepared list of questions is a really good prompt, as it is sometimes difficult to remember everything you want to ask in an interview situation. Listening, however, is equally important, so give the interviewer ample opportunity to speak, and acknowledge and confirm an understanding of what you are hearing. “Setting expectations at the start of the interview is good for everyone, so don’t be afraid to clarify if you can ask questions throughout or if you should wait until the end.” RIGZONE.COM

Candidates who already have a background in oil and gas should use this to their advantage, according to Radage. “If you have experience in oil and gas, giving examples of relevant projects you’ve been involved in and tangibles you have delivered is a great idea,” she said. For those looking for their first role in the oil and gas sector, Hunt advised: “Demonstrate to interviewers that you have transferable skills and that you are adaptable. Give tangible examples and convince the interviewer that you can successfully make the transition from the industry you work in today to the oil and gas industry tomorrow.”

From the Mind of a New Grad... BY WENDY DIBENEDETTO

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Should I work onshore or offshore?

Thoroughly educate yourself about the two work environments. Two important areas to consider are salary and lifestyle. Offshore work often pays more and boasts greater tax benefits than onshore, but the risks are also higher and the work less sociable. Onshore work averages less in base pay but can provide financial rewards in the way of large bonuses for key contributions to successful projects. If you are young and single, and don’t mind working hard for 12 hours straight in harsh, remote locations for 28 days straight with little contact with family and friends, then offshore work may be for you. Onshore work caters to individuals with strong family ties and those needing more social interaction and access to modern comforts.

How do I find a mentor?

Determine your area of focus; identify whether you want a formal or casual relationship with your mentor (this will dictate the time and effort required by both you and your mentor); identify mentoring programs within professional organizations, academic institutions or within your place of employment and sign up; and, depending on the type of relationship, you will need to set your expectations accordingly. For a formal relationship, schedule regular meetings and set objectives and goals. For an informal relationship, make sure it’s okay to occasionally knock on his/her door or call with a question. It’s important not to make the person feel obligated or that you’re expecting a lot of his/her time.

The best way to network is to start with someone you know – have him/her introduce you to people with whom they are acquainted. If you are a recent graduate, find other alumni in the industry – you’ll have a starting point for conversation. When conversing, smile, ask questions and show you’re interested. Attend events you find interesting. By engaging in activities you’re passionate about, you will automatically have something in common with others in attendance. Make sure to swap information and follow up – show that you keep your word. It will set you apart from those that are just there for face time.

What if I can’t find a job – do I go back to school?

The expectation of finding a job in the oil and gas industry within six months is lofty. Until the right position comes along, earning certifications is an excellent idea as is completing a soft skills course. Taking any job with your targeted company or organization can open the door to future opportunities. Pursuing a higher or additional degree is always an option, but an expensive one. Incurring more debt when you don’t have any prospects for paying it off isn’t always the best idea.

What if I don’t have any experience in the industry?

Here’s your opportunity to become creative with the experience you do have – regardless of the industry. Make the most of what is on your resume. If you’ve worked in retail, stress your customer service experience. Showcase an issue that you resolved for a customer and tell how you used your problem-solving skills and critical thinking to find a solution. Volunteer or try an internship – these are excellent ways to gain practical experience, acquire new skills and make key contacts who can help secure a permanent position. Be flexible and practical. Consider accepting junior positions that may open doors to bigger and better opportunities down the road. Sources: “Offshore or Onshore: Which Route to Take?” By Matthew V. Veazey, Rigzone Staff, Rigzone.com April 30, 2014, “How to Network: 12 Tips for Shy People” by Meridith Levinson, CIO.com December 11, 2007


How do I network with strangers?


Outlook: Exploring the Next Generation of Oil, Gas Employees by Valerie Jones The oil and gas industry will soon see many veterans retire, leaving the field ripe for young professionals. With the recent layoffs and budget cuts from numerous oil and gas companies, it creates a pathway for new, fresh talent to enter the workforce. Young professionals shouldn’t allow the current state of the market to deter them from excitement about entering the world of oil and gas because there’s quite a bit to be excited about.

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With many baby boomers expected to leave the industry soon, it means that employers and recruiters will be looking for skilled young professionals to head up some of their roles. And recent grads stand to fare well in regards to earnings potential: oil and gas extraction is expected to be the top-paying industry for Class of 2015 bachelor’s degree graduates, according to the National Association of Colleges and Employers. “When everybody’s tied to commodity prices, everybody fires at the same time and everybody hires at the same time,” Mike Weast, regional vice president of IT at nationwide staffing firm Addison Group, told Rigzone. Weast works with companies across all sectors of the oil and gas industry. “That rush to hire depends on the skillsets that are available at the time. In upstream, there will be a wide gamut of skills necessary and many different levels of candidates to come onboard.”

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Once the market is back on the upswing, oil and gas employees should prepare for recruiters who are looking for educated and experienced candidates prepared to dive in headfirst.

What Recruiters are Looking for “With retirements and individuals choosing to take other career paths, there are still avenues for young workers coming out of school who want to make it in oil and gas,” Weast said. “We’ve never had so many clients. Production has almost doubled since 2005. That type of production requires workers. A lot of projects have been put on hold, so you’re going to need a lot of project managers, business analysts and those who can provide support for people in the field. There will be new holes being drilled, so companies will need to be able to support those people wherever they are.” Recruiters are looking for candidates with good tenure, whether it’s prior industry experience or recent graduates who were working their way through college, Weast added. Solid references are important. Internships are also important to recruiters, and a good indication of how much on-the-job experience a candidate possesses. “A great deal of the companies we work for offer internships and will hire interns after the culmination of an internship,” Weast said. “That experience on your resume is invaluable and really differentiates you from

Weast offered three distinct practices that make the difference between good workers and great workers:

•BE ON TIME: “If you’re supposed to be at work at 8 a.m., be there at 8 a.m.”

Dr. Bonnie Dunbar, Director, STEM Center, University of Houston

•GIVE 100 PERCENT EFFORT: “Everybody’s watching you. How you’re able to project effort doesn’t go unnoticed.”

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your other counterparts graduating with a bachelor’s degree.”

• PLAY NICE IN THE SANDBOX: “Sometimes it’s give; sometimes it’s take, but playing nice goes a long way to making the team better as a unit.” Grant Aguinaldo Principal, Envera Consulting

How to Become a Standout Candidate: University Officials Weigh In

Dr. Bonnie Dunbar, director for the University of Houston’s STEM Center, stresses the importance of soft skills, such as effective communication, to her students.

Dr. Sonia Garcia Senior Director of Access & Inclusion,Texas A&M University

“I tell my freshmen engineers all the time: you need the technical skills, but if you can’t communicate them, they just stay within you. You can’t always depend on your electronics and gadgets. You may need to communicate something to your boss who is sitting next to you on a plane,” said Dunbar. “Engineering is creative, dynamic and inventive and it requires more than just a technical skillset.”

Dr. Dan Hill, Department Head, Professor & Noble Chair, Harold Vance Department of Petroleum Engineering, Texas A&M University

While the compensation potential often attracts the attention of students – Dunbar said her students’ eyes light up at the mention of salaries in the industry – she encourages students to be as prepared as possible. “Learn the language of mathematics – it’s the most universal language in the world,” she said. “It’s a common communication tool. Having that foundation opens up significantly more careers in the industry.” Dr. Sonia Garcia, senior director of access and inclusion at Texas A&M University, added while students don’t

Mike Weast, Regional Vice President of IT, Addison Group


Colleges and universities across the nation are preparing the next generation of oil and gas professionals, individuals who will need to exhibit an increased level of marketability due to the current highly-skilled hiring pool.

it’s not your first choice.”

Mentors: The Essential Asset

In an uncertain market, the expertise of a seasoned industry veteran who has seen the ups and downs is invaluable to a young professional. have to love math and science, they should have a good working knowledge of the subjects as well as problem-solving skills. Garcia, diligent in trying to eliminate the underrepresentation of minorities and women in STEM fields by targeting students as early as elementary school, also mentioned the potential change in demographics of the oil and gas industry, especially in the energy-friendly state of Texas.

“Whether you are currently in school or working in the industry, build a connection with someone whom you can learn from,” Weast said. “You want to have solid relationships because those people are going to know people in the industry you’re trying to break into.” Grant Aguinaldo, principal of Envera Consulting, a California-based air quality compliance consulting firm, also mentors young professionals in the industry.

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“The growth of Hispanics and African Americans in the State of Texas, which has already become a minority-majority, will make for a possibly more diverse workforce than we’ve seen in this industry before,” said Garcia. “When we speak to students – especially minorities – we try to instill in them that there is a great need for them in STEM. We need a diverse group of people in the industry – be it age, gender or ethnicity.”

“I work with young professionals to develop their resume and introduce them to contacts in my network,” he said. “I also serve as a mentor and resource to these young professionals when they are faced with career questions (“should I do x or y”), questions about a certain industry (e.g. oil and gas, manufacturing, etc.) or even questions about a professional field (e.g. environmental compliance, design/build engineering, etc.). If I cannot get their questions answered, then I often connect them to someone in my network who can.”

Garcia stressed that strong relationships between university STEM programs and the oil and gas industry will help keep young professionals loyal to the industry.

What Young Professionals Should Be Doing Now

“I think it’s critical that we continue what we have developed as far as our STEM outreach, and do it early on,” she said. “We want skilled men and women who will graduate; enter the industry; add contributions, value, innovative ideas and retire in the industry – rather than leave in one or two years because they were uncomfortable or didn’t feel they were accepted.” Dr. Dan Hill, department head and professor and noble chair of the Harold Vance Department of Petroleum Engineering at Texas A&M University, advises his engineering students to emphasize to recruiters their strengths as well as an eagerness and willingness to work. “Candidates should be open to go anywhere a job takes them,” Hill said. “It would be good to move to or work in areas populous in oil and gas jobs. Engineers that begin in drilling jobs often become the best engineers in the future. Never turn down a job because RIGZONE.COM

When the market turns around, recruiters will be tasked with finding the right people and placing them in the right positions. Candidates can better their chances, Weast said, by networking, keeping their resume up to date and getting referrals – from recent graduates, older family members, colleagues or anyone who is in the industry and is willing to help. “When things tighten up in the industry, which is the case now, those relationships and connections you have become a lot more valuable when numerous people are trying to land the same positions,” he said. Aguinaldo offered three tips to young professionals preparing to enter the industry:

OUTLOOK: EXPLORING THE NEXT GENERATION OF OIL, GAS EMPLOYEES

• KNOW YOUR ROLE. “Understand how your role fits into

the larger operation of the business. For example, if you would like to work within the environmental field at a refinery, understand the overall goal of the department. Understand how all of the different job functions work together to meet the overall goal.”

• LEARN THE LANGUAGE. “Talk to folks currently working in the industry in order to understand the language of the industry. This is important because knowing the language of an industry can serve as a competence trigger to a potential employer. It demonstrates that you have done your research about the industry and you know what you’re getting into – something that is not done by many who are applying for the same job.” Industry newcomers should exhibit confidence, knowing that they have prepared well and possess the knowledge and skills necessary … and that they are the best person for the job. “This is a temporary slowdown. The long-term future of the industry is extremely bright,” said Hill. “It’s a matter of weathering the storm right now. With the demand for energy in the world and the growth around us, this downturn isn’t scheduled to last long.” Weast added that job-seekers should not get discouraged. “Know what it is that you want to do in oil and gas,” he said. “Find who’s hiring in the field and looking to fill the job you desire. Apply, and be ready when the phone rings.”

Having a Master of Business Administration (MBA) has become arguably the expected standard for business professionals and it looks attractive on a resume. Those who possess them have acquired skillsets and knowledge that can span across multiple industries. And with a change in leadership expected over the next few years due to the Great Crew Change, an MBA can help future leaders develop the skills needed to manage in the oil and gas industry. The Bauer College of Business at the University of Houston has offered its Global Energy Executive MBA program since 2007 and internationally in China since 2005. Dalia R. Pineda, director of admissions and recruitment for graduate professional programs, said Bauer College has seen a steady trend of increased energy industry interest and enrollment since inception. Duke University’s Fuqua School of Business offers two energy-related MBA concentrations in its Daytime MBA program: the concentration in energy and environment created in 2009 and the concentration in energy finance added in 2013; and an energy and environment concentration in its Cross-Continent MBA program and Weekend Executive MBA programs. “These concentrations were added in response to rising student interest in what are undoubtedly some of the most dynamic sectors and issues in business right now,” said Katie Kross, managing director for Fuqua’s Center for Energy, Development and the Global Environment (EDGE). “In 2009, the MBA Energy Club at Fuqua had about 50 student members; today, that number is over 300.”

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More U.S. Schools Add Energy-Focused MBAs


• EDUCATE YOURSELF ON THE ISSUES. “Understand the key issues that surround the oil and gas industry. With the accessibility of the Internet, it has become easier to conduct research on key industry issues and it’s important that young professionals understand these issues and how they impact the operation of a business. For example, if you’re targeting jobs in the upstream sector, learn how current and/or pending fracking regulations can impact the industry. You don’t have to become a ‘know-it-all’ about these issues, but you should be aware enough to have a basic discussion on the issues, should the topic come up within a conversation.”

Successful Career Development Strategies: The Intangibles’ Toolbox RIGZONE CAREER GUIDE

By Wendy DiBenedetto

Your applicable skillset, educational background, degrees and certifications are important for a career in oil and gas. However, these credentials comprise only a portion of what an employer desires in their employees. Soft skills and emotional intelligence, both previously thought as “nice-to-haves,” are now essential in the development of a successful career. Having the right set of soft skills can be the differentiator between you and another candidate or peer when pursuing a new position or promotion. If you think about it, the majority of your job performance involves the application of emotional intelligence or a soft skill. So, what are these “nebulous” terms and how can you obtain them? Although the terms may seem interchangeable, soft skills include learned abilities that are not directly related to a specific career or job. These skills may be broken down into three key categories: communication, teamwork and the basics. Emotional intelligence, commonly referenced as

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SOFT SKILLS

• COMMUNICATION • TEAMWORK • BASICS

COMMUNICATION: • Relationship Management • Advanced Presentation • Report & Business Writing

TEAMWORK:

• Meeting Facilitation • Project Management

BASICS:

• Customer Service

• Cross-Culture & Diversity

EQ, is comprised of inherent qualities that are developed or coached, rather than learned or taught. EQ affects how we govern our own behavior and social interactions in hopes of achieving positive results. Soft skills, which can be taught, allow us to effectively communicate within mostly business settings; whereas, EQ is the ability to recognize, understand and manage emotions in both personal and social situations. New graduates or individuals in between positions who want to begin a new career in the oil and gas industry are encouraged to earn certifications in as many soft skill courses as possible. Invest your time in one of several online courses offered by for-profit companies, industry organizations and academic institutions – some are even free. Pick up a few books on the various tangible skills offered by the “How-To for Dummies” series. There are also free phone/tablet apps available for download on emotional intelligence. Don’t miss out on mastering what is becoming an important part of your career in today’s workplace – it’s literally at your fingertips.

EMOTIONAL INTELLIGENCE SELF-AWARENESS:

• Willingness to Learn • Loyalty • Empathy • Ambition • Trust

• SELF-AWARENESS • SELF-REGULATION

SELF-REGULATION:

• Work Ethic • Stress Tolerance • Anger Management • Responsibility • Assertiveness

• DecisionMaking & Critical Thinking • Leadership

RIGZONE.COM

Sources: Society of Petroleum Engineers, MyCareerInOilandGas.com, MiningOilandGasJobs.com, North Carolina State University Supply Chain Metrics Blog, NAFT Club, Maersk Training, EmotionalIntelligence.net

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socially responsible manner while maintaining

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QUEIVA RICHARDSON President & CEO [email protected] South Texas Office 14100 San Pedro, Suite 618 San Antonio, Texas 78232 Phone: 210.496.DRIL (3745) Fax: 210.496.0606 QUEIVA RICHARDSON QUEIVA RICHARDSON President President & CEO& CEO [email protected] [email protected]

Houston Office SouthSouth TexasTexas Office Phone: 713. 2Suite 04.Office 8556 San Pedro, Suite 14100 14100 San Pedro, 618 618 San Antonio, San Antonio, TexasTexas 7823278232 4801210.496.DRIL Woodway Drive(3745) Phone: 210.496.DRIL Phone: (3745) Fax: 210.496.0606 Fax: 210.496.0606 Houston, Texas 77056 Houston Houston OfficeOffice Phone: 713.204.8556 Phone: 713.204.8556 4801 Woodway 4801 Woodway Drive Drive Houston, Houston, TexasTexas 7705677056

10 | RIGZONE Career Guide | OTC 2013

10 | RIGZONE OTC 2013 10 | RIGZONE CareerCareer Guide Guide | OTC |2013

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