Survey: Energy industry doesn’t appeal to Generation Z Technological changes will require workers with different skill sets

Baker Hughes employees monitor a customer’s wells remotely. A more complete robot rig system means an engineer could design an oil well at his desk. And with the press of a button, an automated system would identify the equipment needed from a supplier, create a 3-D model, send it to the rig and tell it to execute it, says Ahmed Hashmi, head of upstream technology for BP. “That is automation.” less Baker Hughes employees monitor a customer’s wells remotely. A more complete robot rig system means an engineer could design an oil well at his desk. And with the press of a button, an automated system would ... more Photo: Baker Hughes Photo: Baker Hughes Image 1 of / 1 Caption Close Survey: Energy industry doesn’t appeal to Generation Z 1 / 1 Back to Gallery

Oil and gas industry executives have just received a cold dose of reality with the results of a survey of the industry’s next generation of talent.

In EY’s latest edition of its polls surveying public perception of the oil and gas industry, only 26 percent of Generation Z (16- to 19-year-olds) — and only 45 percent of millennials (born between 1982 and 2004) found oil industry jobs appealing. About 55 percent of these respondents perceive oil industry jobs as blue-collar, dangerous and not environmentally friendly.

“That’s not actually where the majority of jobs are, but perception is reality,” Rachel Everaard, US Oil & Gas People Advisory Services Principal at EY, said in a phone interview from her Houston office.

She attributed that perception in part to how the industry is portrayed in the media.

“What you see in annual reports are people wearing hard hats, even the executives.”

The survey’s findings provide an opportunity to educate young people about future jobs in the industry and how cutting-edge the industry is, Everaard said.

The way technology is changing, “a lot of the more traditional jobs are going away,” she said.

The new jobs will require new skill sets, such as data analysis, she said.

“We’re seeing more work done around robotics in processing operations. Jobs will be in information technology, finance and accounting, human resources, the supply chain to capture margins,” she said.

Some people in the industry see the findings in a positive light.

“If it’s just a communications issue, we can change our communications strategy,” she said.

Others are concerned because the findings indicate companies may have to make significant changes to how they operate in order to attract, recruit and retain a workforce, she said.

Those changes may be a result of the survey’s finding that there is a disconnect between what young people want in a career and what oil and gas executives think the generation wants.

Young people responding to the survey overwhelmingly prioritize salary — 56 percent — followed by a good work-life balance — 49 percent — and job stability and on-the-job happiness, 37 percent each.

While executives and younger workers agree on salary being a top priority — 72 percent of executives ranked it first — 43 percent of executives ranked technology second, followed by good work-life balance, 38 percent ; and the opportunity to try new roles, 28 percent.

The survey found the industry’s lack of appeal among young people is largely driven by its lack of appeal to young women: Only 24 percent of women between 16 and 35 find the industry appealing, compared to 54 percent of men in the same age range.

Local companies such as Pioneer Natural Resources, Concho Resources and Occidental Petroleum have constructed new campuses that include cafeterias, child care and workout spaces, and Everaard said other companies may have to provide similar offerings to appeal to younger workers.

“Oil and gas companies should be assessing their benefit programs to offer things to attract young people,” Everaard said.

The results of the survey is providing the industry with very actionable items to address the need to recruit the next generation of workers, she said.

She said the rapid change in technology and rise in efficiency means there will be fewer industry jobs in the future, but those being created will require higher and more specialized skill sets. That adds a greater sense of urgency, she said.

“They’re trying to tap into a generation of people who don’t have a positive perception of the industry,” she said.