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Careers in the 21 st Century

Careers in the 21 st Century. AAPG Annual Meeting April 2008 Cheryl Collarini, presenter Carol Snodgrass, author Brittany Carnes, researcher. Rooted in engineering and consulting Formed in response to client needs Recruiting top talent in the business

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Careers in the 21 st Century

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  1. Careers in the 21st Century AAPG Annual Meeting April 2008 Cheryl Collarini, presenter Carol Snodgrass, author Brittany Carnes, researcher

  2. Rooted in engineering and consulting Formed in response to client needs Recruiting top talent in the business International expertise in consulting and staffing Achieving the perfect match of talent to needs Collarini Energy Staffing

  3. Accounting and finance personnel Administrative and clerical personnel Business analysts Civil and architectural engineers Drilling engineers & operations supervisors Executives Facilities Engineers Geologists, geophysicists, and petrophysicists Health, safety, and environmental personnel Human resources personnel Instrument and electrical engineers IT professionals Land, legal, and supporting personnel Material and corrosion engineers Naval Architects Operations supervisors Pipeline, riser, and subsea engineers Process engineers Procurement personnel Production engineers Project managers and support personnel Quality control and inspection personnel Reservoir engineers Sales and marketing professionals Technical writers Technicians, drafting and graphic Technicians, engineering and geoscience Disciplines we manage

  4. Your name Your company Your position Where you are from Introduction

  5. Background of the industry Where we are now Where will the industry be going in the 21st century? Where and what will the opportunities be? Succession planning: how to get new people in the petroleum industry? How to be personally successful in this new age of petroleum Overview

  6. In 400 B.C., an oil well was made on an island in the Ionian Sea to supply oil lamps. As early as 1013, wells were drilled in China for natural gas, which flowed through bamboo pipes. The gas was used in porcelain manufacture, if not cooking and heating. In the eleventh century, successful oil wells were drilled by the Burmese. Petroleum is mentioned in the Bible in Genesis 14:10, Deuteronomy 32:13, and Exodus 2:3. Petroleum is mentioned in the Koran in 23:20, 24:35, and 34:12. Fun Trivia About Oil and Gas • Source: www.helium.com (community of writers)

  7. In 1640, an oil well was completed in Italy. Kerosene from the oil was used for lighting. Streets of Genoa and Parma were lighted by kerosene from an oil well at Modena in 1803. In 1857, oil was discovered in Romania and Ontario. In 1829, a successful oil well was drilled in Kentucky. In 1932, Standard Oil Company of California (SOCAL) discovered oil in in Bahrain. In 1947, the first offshore oil well was drilled off the coast of Louisiana (by whom?). Fun Trivia About Oil and Gas • Source: www.helium.com (community of writers)

  8. Uses more computer power than any other industry except the entertainment industry Produces more than 75% of new energy options for our future (solar, fuel cells, wind, and hydrogen) Actively supports deepwater biological research by making off-duty equipment available to marine biologists during deepwater drilling Collects large amounts of metocean and atmospheric data to understand hurricanes Provides infrastructure for mariculture Oil prices, inflation-adjusted, finally exceeded the 1981 peak (3/08) Did you know? The upstream oil and gas industry: Source: Careers in Oil and Gas – A supplement to: E&P

  9. Globalization Economies, developing countries Overpopulation India – average 7 births per mother War and Terrorism Resource Depletion Who has the oil? / Who uses the oil? Energy Conversions LNG Ethanol 21st Century Trends

  10. Producing Countries / Consumers (2004 numbers, millions of barrels per day)

  11. Exporters / Importers (2004 numbers, millions of barrels per day)

  12. The Future of the Global Oil Industry • Is there a future? • "Supply is going no place, and demand is rising 2.5% to 3% a year," says economist Philip Verleger Jr. of Aspen, Colorado, August 2007 • "The issue isn't whether we have resources, but whether we have access to them. It is a not a resource question, but a question of availability and timely development.“ - Former ExxonMobil CEO Lee Raymond, December 2007 • “An oil crisis is coming, and sooner than most people think. All oil producers are not investing enough today.” – John Hess, Chief Executive of Hess Corporation

  13. 6% of energy comes from renewables (biomass, hydropower, geothermal, wind, solar) 17% of that 6% is solar 1/3 of that 6% is wind LNG LNG offers greater trade flexibility than pipeline transport, allowing cargoes of natural gas to be delivered where the need is greatest and the commercial terms are most competitive Coal Slowly on the decline Where are the other energy sources?

  14. Wind Pros Very efficient for electricity Clean source of energy Could replace up to 20% of our total electric consumption in the foreseeable future Cons Coastal areas and high altitudes Blades pose danger to birds Need area to build a significant number of windmills Solar Pros Free and efficient Can replace traditional electricity sources in many places Perfect for areas with abundant sunshine Cons High latitude areas do not have enough sunlight throughout the day Rainy areas do not have enough sunlight to produce efficient energy Wind and Solar Energy Ian Callis, ezinearticles.com

  15. LNG in the U.S. since 1912, when the first facility in West Virginia.  Now only 5 U.S. facilities (and one in Puerto Rico) capable of importing LNG – not nearly enough to handle the amount of LNG needed.  LNG provides 2.8% of U.S. natural gas, predicted to increase to 16% by 2030, according to U.S. DOE.  LNG is an efficient and safe way to transport natural gas across long distances and store it near consumers. Liquefied Natural Gas www.lngfacts.org

  16. Deepwater Gulf of Mexico West Texas Niger Delta South America North Sea Gulf Coast Florida Middle East Alaska Offshore California Algeria What and where are our future reserves? “The best place to look is where we know petroleum systems are in tact and functioning.” – Skip Hobbs, Ammonite Resources Company

  17. 1957: the first Alaskan oil discovered at Swanson River in Kenai. Alaska's most important revenue source is oil and gas; 25% of US oil  Prudhoe Bay is North America's largest oil field. 75% of Alaskans support E&P in ANWR; potential of more than 10 BBO. The Trans-Alaska Pipeline moves up to 88,000 barrels of oil per hour on its 800 mile journey to Valdez. Alaska Oil Industry Facts For Example www.50states.com, www.anwr.org

  18. A late 2006 industry survey of professionals….. Besides money, what is important to our employees?

  19. Fair compensation is a fundamental expectation Okay, it really is first about the money

  20. Base salary Sign-on bonus Performance bonus Technical training Tuition assistance Overriding royalty Stock purchase plan Stock options or company participation Disability insurance Life insurance Medical insurance Dental insurance Vision insurance Vacation and holidays Savings [401(k)] plan Pension plan Elements of compensation

  21. Salary ranges: Average Geoscientists $75,000 - $260,000 $140,000 Geo-technicians $40,000 - $90,000 $66,000 Engineers (19 years avg.) $83,000 - $185,000 $122,000 Engineering technicians $55,000 - $86,000 $64,000 Landmen $60,000 - $150,000 $110,000 Compensation in the 21st Century 9% increase over last year Average additional compensation, ($60,000 for technical people or 50%) Signing bonus, relocation expenses expected Sources: SPE, AAPG, AAPL, Internal

  22. Occupation Employment / Wages for Geoscience Professionals Source: AAPG

  23. Paid medical insurance is worth as much as $18,000 per year An escalating-contribution-percentage savings plan $100,000 per year salary 30 years $800,000 TODAY An escalating-contribution pension plan $700,000 TODAY Valuing non-salary compensation

  24. Comparing Job Offers Valuing non-salary compensation

  25. Valuing all monetary elements of the compensation package Make it easy for new employees to understand Provide a periodic refresher for all employees Perhaps make it part of their annual personal report Communicating compensation value

  26. Today's employees look for more than compensation and benefits…...they want to work where they are recognized and rewarded for performance, where there is good communication, and where they are part of the success of the company. But it is more than just the money……

  27. “Let’s survey our own employees!”

  28. Categories addressed career, work environment, and personal issues 36 non-monetary factors addressed in those 3 categories Respondents rated each factor 1 to 5, 1 being a must-have Collarini survey of oil industry employees

  29. "Please name one area where our company can improve." More formal performance evaluation process Formal acknowledgement of good work with some type of award More team building events Collarini pilot program

  30. Personal plea to get higher response rate Five minutes to respond Completely anonymous 1,026 people responded Double the expected response Collarini survey of oil industry employees

  31. 0 – 10 years 116 10 – 20 years 171 20 – 30 years 447 30 + years 289 Respondents by years of experience Years of Experience Number of Respondents

  32. Respondents rating issues #1 in importance Corporate reputation 636 = 62% Challenging work 572 = 56% My team 458 = 45% New ideas welcome 445 = 43% My supervisor 433 = 42% Influence on decision making 373 = 36% Commute time 368 = 36% Corporate leadership 382 = 37% Flexible work hours 357 = 35% Technology up to date 328 = 32% Corporate vision 317 = 31% Available tech. or prof. career paths 300 = 29%

  33. Most important issues by gender Men (840) highest AVERAGE Women (176) highest AVERAGE • • My supervisor 1.82 • Challenging work 1.87 • • My team 1.90 • • New ideas welcome 1.90 • • Flexible work hours 1.95 • Commute time 1.98 • • Corporate reputation 1.98 • Least important: variety of office locations and child, elder care support • Challenging work 1.78 • My team 1.88 • New ideas welcome 1.89 • My supervisor 1.93 • Corporate reputation 1.98 • Least important: child, elder care support

  34. Challenging work 1.60 Team 1.76 Influence on decision making 1.83 Corporate reputation 1.83 Supervisor 1.88 Welcome new ideas 1.91 Corporate leadership 1.99 Most important issues by position Managers Geologists ◆ Challenging work 1.70 ◆ Welcome new ideas 1.77 ◆ Supervisor 1.85 ◆Technology up to date 1.85 ◆Team 1.85 ◆Influence on decision making 1.89 ◆ Level of technology 1.91

  35. Challenging work 1.90 Team 2.00 Welcome new ideas 2.03 Supervisor 2.11 Commute time 2.12 Corporate reputation 2.13 Flexible work hours 2.17 Welcome new ideas 1.48 Supervisor 1.56 Corporate reputation 1.67 Team 1.68 Challenging work 1.73 Corporate leadership 1.74 Commute time 1.74 Corporate vision 1.77 Technology up to date 1.86 Personal and professional networking 1.91 Influence on decision making 1.93 Most important issues by position Engineers Other professionals (sales, financial, business, etc.)

  36. Corporate reputation 2.07 Corporate leadership 2.07 Security of premises 2.07 Work hours at home 2.14 Challenging work 2.14 Child/elder assistance 2.14 Most important issues by position Human resources personnel

  37. Least important issues • Provision of child and elder care • Variety of office locations • Office amenities

  38. Every individual has needs, desires, and challenges unique to him or her…..

  39. Comments from respondents “I used to be in it for the sex, but that got old. Now I am in it for the money.” “My new position pays a little less, my title is less…but I get to go to parent teacher conferences and see my daughter every night. I think this is one of the best jobs I have ever had!”

  40. Comments from respondents “A clear, stable and trusting leader is the most important factor for me.” “Important factors to me: Challenging work, knowing you contribute, sharing your success with the community and enjoying the company of people you spend over 40+ hours a week with.” “Main reason I want to leave my job now is that it isn't challenging. A monkey could do my job. The hours I'm working now is not very good for a single male who wants a social life.”

  41. “Its not the technology - its ALWAYS the people” Comments from respondents “Work should be fun. If it's not, why are we doing it?” “Reasonable amount of time off to pursue individual interests is VERY important as I get older. It's NOT all about work, work, work!”

  42. How can we address individual needs? • Culture of supervisory awareness, respect, and care • Train supervisors and managers • Offer flexibility in meeting individual needs

  43. Geoscientists only: 250 respondents Years of Experience 0-10 years 25 11-20 years 47 21-30 years 109 30+ years 68 2007 Survey of Industry Professionals

  44. Questions asked: Where do you see the industry trending in the next 20 years? Is your company outsourcing? How efficient are the outsourcers? Would you like to see more research on alternative fuels? How will technology affect careers? Are you able to stay current with technology? What will be the most valuable skills needed for a successful geoscientist? Are companies relying too heavily on computer technology? What skills are new industry entrants lacking? What suggestions do you have for encouraging youth to explore energy careers? Introduction about survey conducted August 2007

  45. Geoscientists only, (preparing for AAPG short course) 250 respondents, 170 with > 20 years of experience Their opinions on current industry trends: Oil prices up or flat over the next 20 years:80% Increased globalization:32% Companies going “green”: 27% 52% work for companies who are outsourcing, somewhat effectively 44% would like to see more research on alternative fuels This Year’s Survey of Industry

  46. Where do you see the industry trending in the next 20 years? Globalization: 21% Going green: 17%

  47. 129 respondents said yes Middle East 19 India 38 Asia 22 Mexico 9 South America 19 Other 49 How efficient are the outsourcers? 64 Somewhat 16 Not at all 14 Very Is your company outsourcing? 52% work for companies who are outsourcing, somewhat effectively

  48. Yes 108 /250 43% would like to see more research on alternative fuels Would you like to see more research on alternative fuels?

  49. Are you able to stay current with technology? Yes 98 On my own 103 no 31 Are companies relying too heavily on computer technology? Yes 58 (23%) How will technology affect careers?

  50. Question: Which skills are the most important? Rank the lists with 1 being the most important. Exercise

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