Strategies for Overcoming
the Energy Talent Void
Charles Swanson
Director, Ernst & Young Energy Center
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
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
How did this happen?
 Since
1985, energy firms have cut
workforces by approximately 65%
 Perceived
 Tech
instability
industry boom
 Layoffs
in the mid-80s and the ripple
effect
 Image
problem
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
What now?
Extreme Makeover
Image makeover focusing on:
 Wealth
of opportunity
 Caliber
of opportunity
 Employer
of choice
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
Caliber of Opportunity
 Challenge
• Focus on the cutting-edge technology
 Value
• Opportunity to meet growing worldwide demand

Pride
• Lose the roughneck image
Employer of Choice
Overall Industry

Mature, stable

Environmentally conscientious

Profitable; investing wisely to increase
supply
Company Specific

Exceptional benefits

Growth opportunities
Short Term Strategies
 Be
creative; recruit from non-traditional
sources
 Start
with a younger audience
 Retain
and retrain
 Utilize
consultants
Looking Forward
 The
word is out
 Media
coverage
 Industry
alignment
• Cohesive messaging surrounding the issue
• Increasingly aggressive recruitment
 Movement
afoot