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Geoscience Student Employment Opportunities

An opinion by

Richard I. Gibson, Gibson Consulting
301 N. Crystal St., Butte, Montana 59701

February 1995

UPDATE 1996 -- Gibson's recent experience at Indiana University suggests that things are looking relatively good for oil industry employment. Eight IU students have either permanent jobs or 3-month internships with four different oil companies.

UPDATE late 1999 -- What a ride we've had! From can't-hire-'em-fast-enough in the fall of 1997 to layoffs in the thousands in the fall of 1998, to renewed optimism in the fall of 1999, the past three years make it obvious that geoscience employment in the oil industry is highly sensitive to the price of oil and perceived problems in the business. And a screwy business it is. If I could offer just one line to those entering this business, it would be "Go in with your eyes open -- don't count on ANYTHING."

Also, be aware of a useful FREE Internet resource: GEOSCI-JOBS. The way to subscribe to this mailing list has been changing, so do an internet search on "GEOSCI-JOBS" or its manager, Ted Smith. Perhaps 70% of the listings are for academic teaching posts, but this is a valuable continuing resource that should not be ignored. Positions also sometimes get posted in the newsgroups sci.geo.geology and sci.geo.petroleum.

"Exploration is dying.... The present condition of geologic employment is the result of success of an effort. The case is won; the job is done and the profession must turn elsewhere. It is not a cycle out of phase. There will never again be swarms of employment interviews and a seller's market in exploration. ... Exploration no longer needs the numbers of geologists trained for the work of a decade ago. All of us should have realized that we permitted our profession to become too dependent on one industry."

This quote is from John A. Wolfe, and it was written in October, 1960. Mr. Wolfe could not foresee changes in politics in the Middle East, in energy usage in the United States, and other developments that increased the price of oil more than tenfold over the early 1960s.

Recent "downsizing," restructuring, layoffs, and change in emphasis by the U.S. oil and gas industry have created a perception that the industry is dead or dying. This is not true. Opportunities exist for today's graduates, if they can position themselves to be competitive in a tight job market.

There is less work being done in traditional, upstream exploration in the United States than in the past, but most major companies continue to have significant exploration efforts overseas. As always, economics and politics exert controlling influences on the oil business, and they are as unpredictable now as they were in the late 1800s, when price ranges from 10 dollars to 10 cents per 42-gallon barrel occurred. If the former Soviet Union stabilizes, it may become a windfall for oil companies and for exploration, production, and development geoscientists. Southeast Asia and Latin America are other broad regions where exploration is active today. Even in traditional, mature basins, secondary and tertiary recovery will provide opportunities for reservoir geologists and geological engineers.

In the United States, the most significant frontier for exploration (at least from the point of view of the major oil companies) is probably the deep-water Gulf of Mexico. World Oil recently (February 1993) forecast a "moderate" increase in U.S. exploration as measured by drilling -- an increase in wells to 4,781 in 1993, up 163 from 1992. Of that number, nearly half are predicted to be drilled in the Gulf of Mexico. New technologies such as 3-D seismic work are important tools there (and elsewhere), and geologists who have some knowledge of geophysics will be better placed to accomplish related studies. If economic and environmental hurdles can be overcome, Alaska and offshore California offer potential for exploration. And in the U.S., as overseas, enhanced production and development of existing fields will require geoscientists to perform geological and economic models of reservoir rocks, fluid migration, fractures, and other properties of fields.

Change in emphasis by the majors (to overseas and high-risk, high-potential plays in the U.S.) leaves a gap that U.S. independent oil companies appear to be filling. Small companies are stimulated by the relatively high price of natural gas, and are exploring places like New York and Kentucky. In Colorado, natural gas production has doubled between 1989 and 1994 — and Colorado was already an important producing state. Natural gas is in demand because it is relatively cheap, environmentally more “friendly” than oil, and it can still be found in large quantities in the US, eliminating imports.

A new sedimentary basin, pre-Late Cambrian in age, has been defined in western Ohio, and its exploration potential is only now being evaluated. Horizontal drilling in the Rockies provides a new tool for exploration and development. Associations of geoscientists are putting together plays and prospects in traditional basins in the United States, work that was formerly done in-house by big companies; the President of Pennzoil referred to the present as the dawn of "the golden age of consulting." Even though the level of activity in onshore U.S. basins is nothing like what it was 12 years ago, fascinating geological concepts are being applied to both exploration and production. Compared to 1980, when the majors snapped up dozens of graduates, it will be more difficult for graduating geoscientists to find employment with smaller oil companies and consulting firms, but the rewards may be worth it. When some majors have expressed hiring levels of zero, this is an alternative that must be considered. One of the best ways to determine which companies are active, and where, is to scan the Oil and Gas Journal, the weekly trade magazine of the oil industry.

There are places in the oil industry for qualified, creative, independent thinkers. A graduate's biggest hurdle is perhaps getting the proper attention in order to get a foot in the door. The broad, traditional education provided by Indiana University is one step toward that entry, and self-enhancement is another means. Be aware that Indiana University Geology does have a good reputation in the hydrocarbon industry. Thesis topics that are geared toward oil exploration will get more attention. Computer abilities, together with effective oral and written communications skills, are necessities in today's tight market; it is a fact that the best geologist in the world will probably not get or keep a job unless he or she can "sell" his or her work, whether internally to management or as a consultant to a client.

Prediction in the oil business is perilous, as the quote at the start of this article illustrates. But my opinion is that there will be geoscientists exploring for oil throughout most of our lifetimes.

Points to Remember

Some categories of employers to consider: Small Oil & Gas companies; service companies (Core Labs, Western Geophysical, etc. — many are now broad, integrated geoscience service providers, not limited by their company name); State Geological Surveys (oil & gas states); National Laboratories, other Federal (DOE etc.).

Reference List for Names and Addresses of Companies and Individuals

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