Few industries are as complex and involve as many overlapping disciplines as the oil and gas industry. This has prompted universities as well as the industry to adapt how they educate tomorrow’s energy managers.

Students are now required to combine technical skills such as geology and petroleum engineering with coursework in economics, accounting, finance, and law. Merging technical, business, and energy management education has increasingly become the goal of energy educational institutions.

There are currently six energy management undergraduate programs in North America accredited by the American Association of Professional Landmen (AAPL). In the 1980s, there were 10 universities that had AAPL-accredited petroleum land management (PLM) programs, demonstrating the transition from PLM programs to energy management.

AAPL is creating an accreditation committee that will act as the governing body for those universities interested in having their energy management, energy commerce, and/or PLM programs accredited by the association, said Christopher Halaszynski, director of education.

“Energy companies are not called oil and gas companies anymore; it is not just petroleum,” said Ted Jacobs, director of energy management at the University of Tulsa’s (TU’s) Collins College of Business. “It’s about all sources of energy. Students will graduate with a well-rounded understanding of the industry.”

Better prepared

Historically, oil and gas upper-management managers and executives came almost exclusively from technical backgrounds. According to Jacobs, many of them would return to school to learn business after stints in the industry. Now energy management graduates with a diversified business and technical education are prepared to see the “big picture” and can better communicate with their technical counterparts (e.g. geologists, petroleum engineers, and financial analysts).

University of Tulsa students visit a drilling rig. Energy management programs give students business as well as technical training. (Photo courtesy of the University of Tulsa)

Students seem to be embracing the concept. Entry-level energy management graduates typically earn about US $70,000 a year. This is twice the average salary of their counterparts with other business degrees and far more than the average for college graduates across the board. While many college graduates can’t find jobs, energy management graduates are in high demand. Jobs and high salaries are serving as strong recruiting tools for the program, said Jacobs.

Jacobs headed the University of Oklahoma’s (OU’s) energy management program until 2006, when he left to launch a similar program at the University at Tulsa (TU). In his 13 years directing such programs, Jacobs has placed 100% of his graduates, which number close to 300.

The energy industry has embraced the program at TU, providing about $825,000 in scholarships through 2010, according to Jacobs.

TU is currently in the process of building its masters of energy business program. The program will serve as an online effort aimed at the industry professional (i.e. engineers) who need business acumen and would have otherwise pursued a traditional MBA, said Jacobs. TU plans to launch the masters program the fall of 2011.

Multi-tasking generation

Steve Long, who succeeded Jacobs at OU, said the curriculum “is tailor-made for today’s multi-task generation in that students take energy classes not only in the Business College but also in engineering, geology, geophysics, law, meteorology, and GIS computer mapping.”

Energy industry recruiting and hiring are at levels not seen since the early 1980s as the industry seeks to replace its aging workforce and the opportunities associated with the emergence of global shale plays beckon. Traditional E&P players, financial institutions, and marketing and trading firms are all recruiting energy management students.

Enrollment has doubled in the past few years to 300 students in OU’s program. In addition, the university has created a new energy specialization option in the MBA program due to the industry’s request for postgraduate work in energy finance and economics.

Cooperation, collaboration

Bruce Bullock, director of the Maguire Energy Institute at the Southern Methodist University (SMU) Cox School of Business, said, “No other industry is as much at the center of modern life as the energy industry. No other industry involves as many geopolitical, economic, and technological issues.”

SMU is in the second year of offering an energy specialization in the finance area of its MBA program, said Bullock. “The MBA-level curriculum is much more rigorous in terms of the energy finance courses specifically. It prepares students for careers in energy investment banking, corporate finance within energy companies, energy private equity funds, and general manager roles within global oil and gas companies. Enrollment in this program has gone from zero to more than 50 students.”

SMU believes its critical competencies are in finance, strategy, business economics, and other core business areas, and it is developing undergraduate coursework in line with the various aspects of the energy industry. That said, a business student can major in a traditional area such as finance or accounting and then take elective coursework in preparation for a career in the energy industry.

“I believe energy management education is ripe for cooperation rather than competition among the various universities,” said Bullock. “We all face similar challenges, and we each have slightly different core competencies. It’s far more economical to share those competencies for the benefit of our students through cross-credit, etc., than it is to duplicate them.”

Soaring enrollment

Dr. Ken Morgan, director of the Texas Christian University (TCU) Energy Institute and the School of Geology, Energy, and the Environment, said TCU’s energy management program has expanded considerably over the past three years. The university now has a minor in energy technology and management available to any major.

“There is a general excitement about energy. It is all driven by jobs, jobs, jobs,” Morgan said. “More than 260 students from 12 different majors now minor in energy. We offer an industry certificate program in petroleum land management, and we now offer an MBA with an energy emphasis. Enrollment is soaring. Two years ago, the Energy Institute had 75 students. Now, 260 students are studying with a minor in energy.”

New domestic discoveries of natural gas, primarily shale plays, have resulted in a very positive attitude in the industry and in the Fort Worth area, said Morgan, who has taught at TCU since 1978.

Upward mobility

The University of Texas-Austin ended its PLM program in 1995. However, UT now offers a unique master’s program that provides graduates with skills in business, law, economics, and policy to complement their training in technical fields, said Dr. Sharon Mosher, dean of the Jackson School of Geosciences.

Based in the Jackson School of Geosciences and in collaboration with the department of petroleum and geosystems engineering, the energy and earth resources graduate program -- a 30 credit-hour program that includes a thesis -- has reached capacity at 48 students. While some students come directly from bachelor degree programs, most are early career people seeking to improve their qualifications for upward mobility in major energy companies, consulting firms, government agencies, and alternative energy specialty fields, said Chip Groat, program director.

“At the University of Texas at Austin, we primarily have concentrated on providing energy education focusing on the scientific and technical side,” Mosher said. “The Jackson School emphasizes a strong undergraduate degree with basic skills, and at the graduate level we provide a multidisciplinary research environment that takes a multifaceted approach to energy-related problems.”