DeSanctis: Embracing Diversity to Overcome Energy Challenges

The U.S. shale revolution has not only changed the economic picture of the energy industry, and the economy as a whole, but it has also created an abundance of opportunities for a new and more diverse workforce wishing to enter the industry. And the job opportunities stemming from fracking in shale formations are coming at a time when the industry is already going through a paradigm shift as senior workers move into retirement. This is creating an unprecedented time of opportunity for the industry to take advantage of workplace diversity in solving some of its challenges.

That was the message ConocoPhillips Vice President, Investor Relations and Communications, Ellen DeSanctis, told attendees at a recent Women’s Energy Network luncheon.

The resurgence in the oil and gas industry is creating opportunities not dreamed of in the 1990s. As a result of the combination of hydraulic fracturing and horizontal drilling, the U.S. has access to more natural gas resources in some unconventional formations than all the natural gas resources in some countries, DeSanctis noted.   

One result for the United States of this abundance of accessible supply has been a change – even a reversal – in the geopolitics of buying and selling energy.

“Many believe that we and Canada could become net exporters by 2020. We are no longer as dependent on hostile nations for own crude oil supply. That’s a huge shift in the paradigm.”

Despite some recent price softening due to increases in supply, DeSanctis sees continued strength in the market for some time to come.

“There is still plenty of supply in our country being produced economically, and that bodes well for the future of gas production in our country. In many ways, we are a victim of our success. The more we find, the flatter we make our supply curve. That’s the nature of our business. But you have to believe that at some level, lower energy costs for the world, and certainly for our country, are good for all of us,” she said.

Projections by a number of market analysts support the idea that oil and gas production in the country will remain strong for many years. For example, just one formation – the Eagle Ford shale formation in South Texas – is expected to produce about 2.75 million barrels per day of crude and condensate by 2020, according to Rystad Energy. 

As a sign of North America’s newfound ability to become an energy exporter, there have been about 45 export projects filed with the U.S. federal Energy regulatory Commission or Canada National Energy Board by July 2014, according to ConocoPhillips.

Challenges and Opportunities for Oil, Gas

While all signs point toward full speed ahead, the oil and gas industry is not without a number of challenges that it must overcome to remain an economic powerhouse.

However, there are bright days ahead for the industry, and they stem from a constellation of three elements, DeSanctis said:

  • The energy renaissance
  • A unique demographic situation
  • Environmental challenges uniquely situated to a diverse workforce

The energy renaissance that has been created by drilling in unconventional shale formations using a combination of horizontal drilling and hydraulic fracturing. Drilling in shale formations is expected to make big difference for a long time, while creating many jobs in the industry and in manufacturing, DeSanctis said.

Regarding the changing of demographics, DeSanctis noted that while many new workers must be brought on to replace workers entering their retirement years, other new workers must also be found to fill new oil and gas company openings created by the expansion of the energy industry amid the shale revolution. This is creating the need for a more diverse workplace.

“We still have a lot of positions to fill. We’re scrambling to fill roles with people with experience and the business smarts and skills to be successful,” DeSanctis said, adding that the industry was “working hard to recruit the middle, and to harness the knowledge of our experienced workforce to develop a curriculum of technical training to help accelerate the careers of younger workers. The workforce itself is changing with regard to gender, race and nationality. A high-quality workforce is needed, and the industry has to get with the times.”

Meanwhile, workforce demands are changing, she noted.

“Our industry always has and continues to face numerous challenges and sophisticated oppositional movements. It’s going to face more adversity in the future. These critics are concerned with climate change, and they are concerned with water and air quality, they are concerned with the transparency of our business operations, and all kinds of other business issues. They are way ahead of us on social media. But we’re adapting, and we’re adopting. We work on our stewardship and we work on our environment.”



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