How gender diverse is the oil and gas industry ?£" and how can it improve?

July 15, 2020
How gender diverse is the oil and gas industry ?£

Diversity and inclusion have been on the business agenda for a number of years, yet the energy industry, to date, does not have a strong track record in the area of encouraging and nurturing diverse talent. This is true of cultural, racial and disability diversity, and in particularly gender diversity. There are fewer women in oil and gas jobs than almost any other major industry, accounting for less than one quarter of employees in the sector worldwide – and these figures grow smaller the higher up the business ladder you go.

With the oil, gas and energy sector currently undergoing a period of change and disruption, now seems an opportune moment to examine the industry’s bias and take steps to encourage a more gender diverse workforce.

A state of affairs: Gender diversity in oil and gas

While women make up 22% of employees in the oil and gas industry worldwide, according to Catalyst, this gender diversity increases with seniority. Entry-level positions are comprised of 27% women, 17% are at senior and executive-level positions and just 1% of oil and gas CEOs are women.

The lack of women in technical and field roles is partly to blame for the lack of female representation at the top levels of oil and gas, as these roles are often stepping stones to advancement. Women are more likely to hold positions in support functions such as human resources, information technology and legal, with less representation across manufacturing, engineering and research.

While the lack of women is an industry-wide problem, there are companies taking active steps to improve. Canada’s PrairieSky Royalty Ltd has a management team that is 75% female, including 50% of senior management, while Pink Petro is a community and resource aimed at disrupting the energy industry’ gender gap.

In recent years we’ve seen Vicki Hollup appointed as the first female CEO of a ‘big oil’ firm and Oil and Gas UK launching an oil and gas diversity network. Other forms of diversity are being addressed in Energy UK’s Pride in Energy network, which is a diversity forum for LGBT+ members of the energy industry. However, the latest statistics within the industry – and particularly at the highest level – suggest more clearly needs to be done to encourage diversity within oil and gas.

Why gender diversity matters

Diversity has many business benefits, beyond simply contributing to a fair and equal workplace and society. It’s long been reported that organisations with diverse workforces perform better financially, and a report from the Peterson Institute for International Economics echoes this sentiment, showing that women leaders can add 6% to a business’s bottom line.

McKinsey research shows that companies in the top quartile for executive team gender diversity are 21% more likely to experience above-average profitability than those in the fourth quartile, with a 33% likelihood when executive teams are in the top quartile for ethnic and cultural diversity.

Within oil and gas, 94% of EY’s survey respondents believe that diversity of thought and experience are key to navigating the industry’s high levels of disruption, with the vast majority saying that diversity contributes to both financial and nonfinancial business performance. Yet the oil and gas industry has long struggled to attract, retain and promote women.

Industry job cuts and retirements that have plagued the industry over the past years – not to mention the unprecedented industry shutdown through coronavirus – means the market will likely see a shortage of petrotechnical professionals when oil production is reprioritised and exploration and production investments rebound. This talent gap presents a clear opportunity to attract more diverse teams, ushering in new skillsets to accommodate digital change and provide more innovative, creative thinking.

Encouraging gender diversity within oil and gas

It's clear the oil, gas and energy sector still has some way to go before truly being diverse, particularly when it comes to attracting and promoting women. However, there are clear steps companies can take to play their part in creating a more inclusive future.

Oil and gas companies can work to demonstrate the career opportunities and development potential available to women. If such progression is difficult to identify and express, this presents another challenge: examining why women are not advancing within organisations and putting procedures in place to help improve these outcomes.

Many oil and gas organisations have implemented diversity goals on their recruitment teams, as well as creating internal communities of support. The likes of BP, Shell, Spirit Energy, Expro and Worley have signed the AXIS Pledge, which asks companies working in Aberdeen’s energy sector to understand the underlying reasons behind their gender gap and take positive actions to close it.

Companies can also take a proactive approach to future-proof their talent pipeline by investing in science, technology, engineering and mathematics programmes for young people, and particularly for girls. Apprenticeships, mentoring and training programmes can be created to encourage more women to enter and progress oil and gas careers, while managers must provide high-performing women with the experiences required to develop their careers.

Above all, a complete culture shift is required to address the lack of diversity within oil, gas and energy and encourage more women to build their careers in this sector.

Stay up to date with Petroplan

The oil and gas sector faces considerable challenges in the near future, including an ageing workforce, demand for technological skills and uncertainty about the post-Covid-19 landscape. By not encouraging more women into the sector, companies risk missing out on the innovation, insight and profit that diverse teams can generate, and may fail to capitalise on opportunities for growth in the future.

At Petroplan, we understand how important gender diversity is to achieve not only a more balanced workforce, but also better business results. We’re led by a predominantly female Board of Directors, with a female CEO, providing strong leadership and a client-led management structure. This allows us to ensure clients receive unrivalled service levels and quality candidates to meet their specific needs.

We have a strong focus on industry news and developments. With deep experience in our sectors and strong relationships with candidates and clients alike, we make it our business to know what’s going on in oil and gas. Whether it’s diversity, future planning or crisis coordination, we are always happy to talk about the industry issues affecting you. Contact us to start a conversation.

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USA

Understanding LNG – an introduction to the current landscape

Liquid Natural Gas (LNG) has emerged as a critical player in the energy landscape, and the United States has become a focal point for substantial LNG project activity. Understanding what LNG is, the dynamics of the LNG market, and its significance to the American economy is paramount as the nation navigates its energy future.

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LNG is natural gas that has been cooled to the point of liquefaction, transforming it into a clear, colorless, and non-toxic liquid. This process reduces the volume of the gas significantly, making it easier and more cost-effective to transport and store. The liquefaction process involves cooling natural gas to around -260°F (-162°C), converting it into a liquid state. This transformation not only reduces the volume by about 600 times but also makes it more suitable for long-distance transportation, primarily through specially designed LNG carriers.

The LNG Boom in the United States

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Working at Petroplan: In a fast-paced environment, a one-year anniversary comes around quickly.

Valentina Bini is a ball of energy. She sits at the Petroplan conference table, a brightly lit room with large windows looking out over west Houston’s energy corridor, looking like she might jump out of the seat at any moment.

 

“The year has gone by so fast,” she says, looking like the completion of her first twelve months at Petroplan has genuinely surprised her.

“I didn’t think I’d have done so many different things so soon after joining this team.”

Valentina began her recruitment career five years ago, after graduating from UH with a bachelors in psychology.

“It’s been a particularly challenging time for recruiters everywhere,” she says.

“The pandemic dominated so much of the landscape for all of us, and for the customers we serve. It was draining in a lot of ways. Now that period is behind us, there’s this huge swell of energy in the industry, and so much activity going on.”

The statistics back this up. According to government data, overall labor force participation is back to its pre-pandemic forecasted level, and the closely-watched prime-age labor force participation rate is now a shade above pre-pandemic levels. Over the past 12 months, the market has seen a net gain of more than four million jobs, averaging around 350,000 new jobs gained, per month. This has left unemployment at a decades-long low. Filling these jobs represents a huge challenge in such a competitive market, especially in clean energy where skills are in relatively short supply. When asked about her approach to recruiting, Valentina explains that she looks for several key qualities in a candidate. She looks for candidates who have the right skills and experience for the role, as well as a strong work ethic, excellent communication skills, and the ability to work effectively in a team. She also looks for candidates who are passionate about their work and are committed to driving success for themselves and others.

“We have to look beyond the candidates’ hard skills to work out if they’re a genuine fit for the company they’re joining,” she says.  

The daughter of an expat, she spent her childhood in seven different countries, thriving amid the change and the constant exposure to new cultures. She brings this experience into her job.

“Culture is so important, particularly now that so many teams are working remotely and are separated from each other day to day.”

Valentina has adapted to a wide range of recruiting activities in engineering and oil and gas. The variety has clearly made her job quite challenging, but she focuses on the human elements of the recruiting task.

"I enjoy getting to know my clients and candidates on a personal level. It helps me to understand what motivates them and what they're looking for in a role,” she says.

“Valentina has been an asset to our team since she joined us a year ago,” says Craig McConochie, Petroplan’s Country Manager in the US.

“Her dedication to finding the best people, whatever the discipline, has made her hugely successful, and our clients appreciate the results they see.” Outside work, Valentina is an avid cook who loves to experiment with different cuisines. Her parents are Indian and Italian, which has influenced her cooking style. I love trying out new recipes and experimenting with different flavors. Cooking is a creative outlet for me, and I find it very relaxing."

After a few very confident photographs, she leaves as quickly as she arrived, back to the team, and to the open job list.

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Working at Petroplan: In a fast-paced environment, a one-year anniversary comes around quickly.

Valentina Bini is a ball of energy. She sits at the Petroplan conference table, a brightly lit room with large windows looking out over west Houston’s energy corridor, looking like she might jump out of the seat at any moment.

 

“The year has gone by so fast,” she says, looking like the completion of her first twelve months at Petroplan has genuinely surprised her.

“I didn’t think I’d have done so many different things so soon after joining this team.”

Valentina began her recruitment career five years ago, after graduating from UH with a bachelors in psychology.

“It’s been a particularly challenging time for recruiters everywhere,” she says.

“The pandemic dominated so much of the landscape for all of us, and for the customers we serve. It was draining in a lot of ways. Now that period is behind us, there’s this huge swell of energy in the industry, and so much activity going on.”

The statistics back this up. According to government data, overall labor force participation is back to its pre-pandemic forecasted level, and the closely-watched prime-age labor force participation rate is now a shade above pre-pandemic levels. Over the past 12 months, the market has seen a net gain of more than four million jobs, averaging around 350,000 new jobs gained, per month. This has left unemployment at a decades-long low. Filling these jobs represents a huge challenge in such a competitive market, especially in clean energy where skills are in relatively short supply. When asked about her approach to recruiting, Valentina explains that she looks for several key qualities in a candidate. She looks for candidates who have the right skills and experience for the role, as well as a strong work ethic, excellent communication skills, and the ability to work effectively in a team. She also looks for candidates who are passionate about their work and are committed to driving success for themselves and others.

“We have to look beyond the candidates’ hard skills to work out if they’re a genuine fit for the company they’re joining,” she says.  

The daughter of an expat, she spent her childhood in seven different countries, thriving amid the change and the constant exposure to new cultures. She brings this experience into her job.

“Culture is so important, particularly now that so many teams are working remotely and are separated from each other day to day.”

Valentina has adapted to a wide range of recruiting activities in engineering and oil and gas. The variety has clearly made her job quite challenging, but she focuses on the human elements of the recruiting task.

"I enjoy getting to know my clients and candidates on a personal level. It helps me to understand what motivates them and what they're looking for in a role,” she says.

“Valentina has been an asset to our team since she joined us a year ago,” says Craig McConochie, Petroplan’s Country Manager in the US.

“Her dedication to finding the best people, whatever the discipline, has made her hugely successful, and our clients appreciate the results they see.” Outside work, Valentina is an avid cook who loves to experiment with different cuisines. Her parents are Indian and Italian, which has influenced her cooking style. I love trying out new recipes and experimenting with different flavors. Cooking is a creative outlet for me, and I find it very relaxing."

After a few very confident photographs, she leaves as quickly as she arrived, back to the team, and to the open job list.