The Next Wave and The New Generation

The May 2008 Offshore Technology Conference in Houston included “The Next Wave” panel and breakout discussion session to provide career insight for a large group of engineering professionals 35 years of age and younger. The overall goal was to provide these new industry players with an overview of the global oil and gas business as it will develop over their careers. Additionally, a panel of industry executives shared observations on what helped them throughout their early careers.

The Next Wave’s opening session, titled “My Industry – The Prospective Relationships of NOCs, IOCs, and Service Companies,” included in-depth viewpoints from several industry leaders on the role of independent operating companies (IOCs) and service companies in an environment of increased nationalization of hydrocarbon resources.

Karl F. Kurz, chief operating officer, Anadarko Petroleum Corp., began the presentation by claiming that younger members of the industry would definitely witness many changes in the years to come. The “change” theme recurred throughout the session’s presentations.

According to Kurz, replacing the world’s reserves would require advances on many fronts. Technologically challenging regions, specifically the development of new resources in the Arctic, would inevitably play a big role throughout the careers of the new generation of oil and gas industry professionals, he said.

Ryan M. Lance, president, Exploration and Production – Europe, Asia, Africa, Middle East, ConocoPhillips, shared a similar message. As resources become scarce, access will become a driving factor for the industry over the next several decades – both political and technological, Lance noted.

Merrill A. (Pete) Miller Jr., chairman, president, and chief executive officer, National Oilwell Varco, expressed the important role that this new generation will play in the global E&P market over the course of their careers. “People and technology are vital,” he said.

Miller pointed out some important technological factors to be considered in the near future. He described how the average age of the world’s jack-up fleet was 25 years. The same age also applies to the world’s floating drilling rig fleet. “NOCs [national oil companies] and IOCs are both demanding better equipment,” he said. “These fleets will need to be upgraded.”

Miller also noted that when the price of oil dropped to US $10/bbl in 1999, reinvestment by industry slowed dramatically. This trend is now evidenced by aging equipment in today’s market, and there will be much to rebuild in the generation ahead. Part of the rebuilding process includes designing rigs of the future that require fewer rig hands on board, Miller said. He believes that automation is the way of the future for offshore installations, and the next wave of engineers will work with many new design concepts in the years to come. Because the world’s reserves are turning up in more remote locations, operations will have to be designed to do more with automated systems rather than additional crew members, according to Miller.

In addition to advances in technology, the presenters emphasized the geopolitical elements that will play a major role in tomorrow’s energy industry. “Eight of the top 10 areas for petroleum exploration and development are considered to be unstable by the US State Department,” said Miller.

The future of energy exploration will be open to more risk due to these geopolitical elements. The rise of NOCs worldwide and the nationalization of large areas will call for creative approaches by IOCs and service companies. “Providing services is not a political issue; resources in the ground are,” Miller added.

The collective experience of the executives in the The Next Wave’s opening session provided the attendees with a challenging vision for the future of the industry. Each speaker followed up with a question and answer segment.

Miller was asked how much value was placed on engineers who sought higher degrees. He responded that National Oilwell Varco encouraged all of their employees to strive for more education. On training, Miller said, “NOV currently has three training academies located in Norway, Singapore, and the US. These are mandatory for all new employees within the first year.”

He also pointed out that NOV has a recently developed relationship with Texas A&M’s Institute for Innovative Design Engineering. The company pays for interested individuals to attend the master’s-level Innovation Program. “We send employees on our nickel,” Miller said. “We encourage it, and we pay for it.”

The three speakers from the opening session emphasized several major points affecting the next generation of oil and gas employees. Technology would undergo sweeping transformation as new reserves are discovered in remote and difficult regions. Along with replacing experienced workers in the field, the industry will also develop new, better-suited equipment over the next several decades. As the demand for energy resources increases worldwide, creative relationships will develop among all parties involved, including NOCs, IOCs, and service companies.

Panel Discussion

The panel session was held directly after the opener. Titled “My Career – The Key Themes Impacting My Future Role in the Industry,” this session assembled four industry experts to discuss how the evolution of the industry will affect the decisions that younger employees will have to make about their career and the path they choose.

Christopher E.H. Ross, vice president, CRA International, moderated the event. “This is a great time to join the industry,” he said. “Developing countries like China and India are increasing demand for energy resources.”

Ross advised the attendees: “You have to become ambassadors for your generation.” He also discussed the rising cost of oil, noting, “$200 oil/bbl is in no one’s interest. Replacing the world’s reserves is now environmentally and socially relevant. Natural resources like petroleum are designed by nature to help people improve their lives.”

Chris Haver, who serves as director of DeepStar and vice president for Ultradeepwater Technology Program, RPSEA, offered his advice to the attendees. “Oil and gas companies are becoming more like energy companies,” he said. Haver a described his experience working for Unocal and Chevron before making the move to RPSEA.
“The oil and gas industry has kept me interested,” Haver said, adding, “It hasn’t always been wine and roses.”

He noted that one thing to expect from a career in the oil and gas industry is a life of travel with very little time to settle down. “There’s a lot of pressure to lead a nomadic lifestyle,” he said. “This has been one of the greatest challenges affecting my career choice.”

Bert Aragon, vice president, Operations Houston and Monterrey, KBR, shared some experiences from his 38-year career as an engineer. “Time goes by fast,” he said.
His message focused on a theme of learning new things. “Your career is yours to manage. It’s a journey of exploration,” Aragon said.

He told attendees learning never ends. Aragon also discussed the importance of conversing with oneself about career choices that will be made. “It is important to align your career goals with certain priorities in your personal life,” he said.

Aragon also noted that part of making choices throughout the course of a career will translate into many changes along the way. “The effect of change in your careers can be scary and exciting,” he said.

Overall, the panelists offered sound, tested advice that helped them throughout the early parts of their careers. By having formulating solid plans of action regarding the many challenges that arise from a volatile career in the energy business, all of the panelists had something important to share with the industry newcomers.