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Strategies for Overcoming the Energy Talent VoidCharles Swanson
Director, Ernst & Young Energy Center
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Energy Industry Talent Void
Half of the current workforce will retire in the next 10 years
Half of today’s E&P workers are 50-60 years old
15% are early 20s to mid 30s
The average age in the O&G workforce is 48
• Oldest employee age in any U.S. industry
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Shallow Talent Pool
Shortage of petroleum engineers
BS programs down 50% • 34 in 1983 to 17 in 2006
BS enrollment down 79%• 11,014 in 1983 to 2,412 in 2006
Degrees granted down 74%• 1,529 in 1983 to 393 in 2006
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How did this happen?
Since 1985, energy firms have cut workforces by approximately 65%
Perceived instability
Tech industry boom
Layoffs in the mid-80s and the ripple effect
Image problem
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Without Trained Workers
Loss of differentiating technical capabilities
Slow down in project delivery
Unable to develop shut in capacity
Increase in operating costs from errors (World Oil story)
Further tightening of production supply; increased volatility and price at the pump
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What now?
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Extreme Makeover
Image makeover focusing on:
Wealth of opportunity
Caliber of opportunity
Employer of choice
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Wealth of Opportunity
Ample opportunity• Monster.com search for O&G returns more than 1,000 hits
– 850 petroleum and reservoir engineering– 520 geoscience
• 100% post-collegiate job placement
Generous salaries• Petroleum engineering starting salaries around $60,000
Global opportunities; opportunities for growth
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Caliber of Opportunity
Challenge• Focus on the cutting-edge technology
Value• Opportunity to meet growing worldwide demand
Pride• Lose the roughneck image
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Employer of Choice
Overall Industry Mature, stable Environmentally conscientious Profitable; investing wisely to increase
supply
Company Specific Exceptional benefits Growth opportunities
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Short Term Strategies
Be creative; recruit from non-traditional sources
Start with a younger audience
Retain and retrain
Utilize consultants
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Looking Forward
The word is out
Media coverage
Industry alignment• Cohesive messaging surrounding the issue• Increasingly aggressive recruitment
Movement afoot