At a recent conference one question was posed to a panel member, “What must the industry do to make itself attractive to new entrants?” This is the root challenge the petroleum industry faces, perhaps even more daunting than reserves replacement, for it is this new workforce that will find and produce new reserves.

The early 21st century finds the world a very different place than the late decades of the 20th century. International political risks as well as economic risks are accelerating, and the technology challenges have never been greater. Political carping would have us all believe that the world in going to hell in a hand basket, and Big Oil and one major service company are pushing the buggy.

The industry will need top people to overcome these challenges, and top people are drawn to a challenge, not pushed into mediocrity. I was attracted to a well logging company at the beginning of my career because the work was interesting and challenging, used state-of-the-art technology and, oh, by the way, paid pretty well too!
Sons and daughters of boomers have a similar motivation. The old Chinese proverb “may you live in interesting times” is as true today as it was when it was first uttered. In Texas, we have another saying, “walk-the-talk” — do what you say you’re going to do.

Challenges arise out of interesting times, and companies attract and hold good people when they provide smart individuals the tools necessary to do the job and then stand by the decisions they make.

There is no shortage of interesting challenges in the oil and gas industry today that can attract and hold the attention of next-generation leaders. In addition to reservoir performance challenges, at least two other complex and critical opportunities come to mind: the digital oil field and green energy.

The opportunity to make the digital oil field with its integration of computing, communications, and field operational process changes come alive can magnetize some of the best and brightest minds. The industry has come a long way since the words “digital” and “energy” were combined, but much work is yet to be done. Technologists, managers, and engineers meet at this cusp to dramatically reduce costs while increasing petroleum production. In the words of one executive, “the digital oil field is becoming more digital and less oil,” meaning that we cannot economically extract hydrocarbons anymore without the aggressive use of information technologies both downhole and at the surface, indeed throughout the integrated supply chain.

Green energy is perhaps an even greater challenge — one that is inherently attractive to bright young professionals. Ranging from various alternative and renewable sources to the need to harvest fossil fuels in more planet-friendly ways, this challenge is combining social conscience and technology in ways not seen before. The challenges posed by water use and management in petroleum production is alone one of the most tantalizing puzzles the industry seeks to solve today.

To compound these challenges, the dramatic changes of the last 30 years since I entered the industry have placed much of the knowledge required to manage the green digital oil field into the hands of a multitude of key supply chain partners; non-industry vendors; and a host of third party contractors, consultants, and engineers. Operators now depend heavily on strategic suppliers who in turn rely heavily on their strategic suppliers to effectively and efficiently produce reservoir assets in an environmentally friendly way.

Additionally, the often-called “great crew change” — the near-term retirement of baby boomers resulting in a dramatic age gap of available workers — is forcing many oil companies to reevaluate approaches in capturing 30 years of investment in people and the intellectual capital they carry.

Early knowledge management systems either attempted to capture the learning of key personnel and then record that expertise into artificial intelligence systems or develop extensive data stores enabled by a variety of software products or a combination of both. In reality, and for a number of reasons, these systems largely have failed.

Knowledge that is dispersed across a global supply chain rather than largely resident inside one or a few organizations can be viewed through the lens of the definition of an ecology or an “interrelationship of intelligent living organisms and their perceptions of fact and understanding.” A somewhat different construct from just business intelligence and information warehouses, knowledge builds on the intuition and experimentation that comes from relevant experience. How do we strategically capture this ecology of intellectual exchange and focus it on tough industry challenges? One possible solution uses an online process management vehicle for managing the collective information of a knowledge ecology.

Another emerging approach is to continue to retain retirees long after they turn off the lights in their office one last time. Extracting their knowledge and using their services as consultants off the golf courses, cruises, and travels will require rethinking how frequently extended global teams work together. These individuals might join culturally diverse, global decision processes imparting wisdom into the younger generation online while never seeing one another in person.

Evidence suggests that the new generation of Millennials works best in a team environment, largely resulting from their reliance on on-demand and real-time communication tools like smart phones, WiFi, laptops, social networks, instant messaging, etc. A combination of mentoring and support teams as well as advancements in technology will greatly influence how oil companies bridge the knowledge gap. Everything from the way we work to the way we manage people and work flows must change to accommodate the style of the next generation of workers.

Simultaneously, the Age of Aquarius generation, who themselves brought about great social change in the ’60s and ’70s while not yet in the twilight of their careers, are increasingly mentoring and passing on their accumulated wisdom. Their presence will fade in the coming years, leaving a void to be filled by socially conscious and technologically savvy individuals raised to believe in themselves without knowledge of failure. The challenge of fueling the world while protecting the planet will be left at their doorsteps.

I believe the industry can attract top 20- and 30-somethings who will rise to the challenges before us. As generations before them have done, this group will respond with favor to an industry with employment opportunities where the work is interesting and challenging, uses state-of-the-art technologies and oh, by the way, pays pretty well too!