College graduates are a hot commodity in the oil and gas industry. As demand for oil and gas continues to rise, the industry looks to the next generation of geoscientists and engineers to solve the energy issues of tomorrow. Through advanced internship programs, concentrated college recruitment campaigns, extensive training curricula and open-communication mentoring, oil and gas companies are ensuring the future of the industry.
There are a number of reasons why the need is so great for new talent in the oil and gas industry. First of all, the demand for oil and gas is only increasing. In fact, the Energy Information Administration (EIA) reported in its International Energy Outlook for 2008 that worldwide energy consumption would increase by 50% from 2005 to 2030. Even with higher oil prices, the 25-year projection sees fossil fuels remaining the No. 1 source of energy for the world through that time period.
Additionally, the oil and gas industry, like many others, is experiencing a natural attrition of senior-level employees, as the Baby Boomers retire. This massive retirement of top-level employees is forcing the industry to develop extensive mentoring and training programs designed to promptly promote employees through the system.
Finally, oil and gas isn't as readily accessible as it was in generations past. Production requires substantially more technologies in order to tap hydrocarbons. Companies are drilling deeper, in deeper waters and less hospitable environments, in order to reach oil and gas today. Production methods are continually being improved upon to increase recoverable reserves, and refineries worldwide are updating and expanding in order to increase processing capabilities.
"Recent college graduates are entering the energy industry at the best possible time," said Valencia Amenson, staffing manager for El Paso Corp. "With a large number of experienced workers about to retire and a national debate on energy supply/demand, there is a strong need for new talent to help find new sources of energy."
Not only are recent-grads entering the oil and gas industry at the perfect time, they're guaranteed a lifelong career. The world's insatiable need for energy ensures that engineers and geoscientists have their work cut out for them. According to the US Bureau of Labor Statistics, both geoscience and engineering are burgeoning industries, offering long-term careers.
The Occupational Outlook Handbook for 2008-09 reports that employment growth for geoscientists is expected to increase by 22%, saying "employment is also expected to increase in the oil and gas extraction industry." Engineers are also expected to see career growth with an increase of 11%.
Internships
Both a pipeline for companies to recruit college graduates and a way to educate students about the industry in general, internships are an integral part of recruiting the next generation of oil and gas employees. Here, upper-level college students are exposed to a number of learning situations, and the company is able to observe the productivity and promise of potential employees.
Similar to scouting in baseball, internships allow companies to determine which students will fit best within their team. Many companies have developed intricate internship programs, hiring directly out of these pools of students after they graduate.
Nearly 80 students completed a summer internship at El Paso in 2008 - many of them getting offers for full-time employment after graduation. Next summer, the company plans to increase the number of students.
"Our goal for 2009 is to have 100 summer interns participate in our EP Elite Summer Intern Program, primarily focused on Engineering (Civil, Electrial, Mechanical and Petroleum), Land, Geoscience and other important disciplines, such as Environmental/Health & Safety, Supply Chain Management, Accounting, Finance, Information Technology, and Human Resources," explained Amenson.
College Recruiting
College recruiting incorporates a number of different strategies for different companies, but most college recruitment campaigns include on-campus interviews as well as career fair attendance, meeting sponsorships, job board listings and advertising.
Most companies will focus on a few colleges where they are going to funnel most of their recruiting efforts. Reasons for targeting different universities can vary - and many times takes into account a number of different reasons. Top engineering and geoscience schools are obviously big attractions, but geographical proximity can also be a reason for recruiting out of a school.
Students are given multiple occasions for meeting with and getting to know companies better. Recruiters set up a number of ways to meet with top students - from informational sessions to sponsorship opportunities; and interviews and networking opportunities are many times conducted on campus to make it easier on the students.
"We continue building strong relationships on campus directly with students, through student organizations, and with faculty members that allow us to collaborate with and engage students pursuing engineering studies," said Amenson of El Paso's college recruiting efforts.
Amenson describes El Paso's college recruiting campaign as "aggressive," adding that successful recruiting of petroleum, mechanical, metallurgical, environmental, project management, chemical, electrical and civil engineers is "pivotal to the success of our pipeline and exploration and production businesses for at least the next five to 10 years."
Training
Recruiting new hires is just a slice of the equation when it comes to attracting the next generation of oil and gas employees. Keeping them is just as important to the future of the industry. Retention is key to success, and proper training helps to ensure that newly hired employees remain with the company to become senior-level management.
Training differs throughout the industry, but most companies recognize that retention is higher when an employee understands the total workings of the company, understands his/her place in the grand scheme of things. To do this, many companies have developed training programs that rotate the new hire through the system in order for him/her to see every aspect of what the company does. At the end of the training program, both the employee and the company have a better idea of where he/she will fit best.
El Paso, for instance, offers newly hired employees department-specific training programs. The company's pipeline engineering department provides an 18-month rotation program named "REDI" for Rotation, Exposure, Development and Interaction. Here, employees rotate through host departments in an effort to provide a broad education and a variety of exposures within the company. In the same vein, El Paso's Geoscience Development Program combines both classroom and hands-on training with a geoscience engineering team.
Similar training programs exist for general engineers and landmen. Each program spans at least a year and encourages exposure to a number of disciplines, training both in the classroom and in a hands-on environment.
Mentoring
Beyond the classroom, one of the ways that companies are ensuring that recent graduates are learning exactly what they need is through mentoring. This way, soon-to-retire members of the team can impart their years of experience on incoming employees.
"Our Leadership Unplugged sessions expose students to executive management to discuss and explore leadership issues and career advice and suggestions," said Amenson. "Those sessions provide an opportunity for the students to network, build relationships, throughout team El Paso, and learn life lessons from our executive leaders."
Not all companies make their executives available for mentoring, but many do make sure that their incoming employees are tapped into and learning from the more experienced staff. If newly hired employees can grasp a concept more quickly or learn to perform a task more efficiently by working alongside their more-experienced peers, the company - and the industry as a whole - is more successful.
