Diversity Defined: Exploring What Oil, Gas is Missing

Pressing Forward

In recent years, strides have been made in bringing more diversity to oil and gas boards. But there is still more work to be done.

Lindenberg, who has lived in the United States for 32 years, said other developed countries, such as European countries, particularly Scandinavian, have moved a lot quicker in placing women on boards. According to global data from Gender Map, Finland has the most female board representation (42.9%) of 37 S&P 500 oil and gas companies. Next is the Faroe Islands, an archipelago between the Norwegian Sea and North Atlantic Ocean, with 40% female board representation, followed by Norway at 36.6%.    

However, in the United States, the pipeline of potential female and minority board members remains a challenge. One of the main factors many boards consider when adding members is the candidate’s leadership experience. Women and minorities are already underrepresented in STEM and subsequently the industry, and aren’t very visible in executive and senior-level roles.

“There has been progress,” said Perrin. “Are [minorities and women] being represented? Yes. Are [they] being represented in the numbers that make a difference is another question.”

There’s encouraging news, though. The future looks bright for female millennials, according to a 2014 report by PricewaterhouseCoopers. The report finds that they are focused on advancement. Fifty-one percent said they believe they can rise to the most senior levels with their current employer.

In PwC’s annual global survey of CEOs, 33 percent of organizations said they plan to increase their focus on board level diversity in the next 12 months.  

“In the last five years, the idea of diversity as a value has permeated much deeper into the industry than it has in the past,” Lewis said. “The energy industry, statistically, is a bit behind and there are some understandable factors for that.”

He mentioned that, while change may be happening more slowly in the energy industry, progress is being made.

Lindenberg added that it’s important for companies doing business internationally to have individuals on the board who have sensitivity to other countries and customs.

“If an energy company wants to be successful in other countries, the more board members they have with cultural sensitivity, the better,” he said.

Regardless of race, ethnicity, gender or age, oil and gas boards can acquire value in members who don’t always fit the status quo, but who contribute to the diversity of thought and perspective.

“If an African American or Asian becomes an engineer, works for 10 to 15 years and is promoted within an oil and gas service company, could that person bring value to a board of older white men? That’s a no-brainer. The board would be crazy not to take advantage,” said Lindenberg.

In regard to increasing diversity on oil and gas boards, LaFollette said, “progress is never going to be fast enough. It’s going to take time, but I’m very impressed by the quality of the candidate pool that is available now.” 

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