Same person, different hats
You’ve probably noticed a new employment dynamic in the upstream oil and gas industry… The line between employees, consultants, self-employed business contractors and business owners has become blurred…
This is likely to continue and even accelerate due to a number of macro factors:
There are other factors in play, ones that we’re all aware of. For example, we no longer need to choose. A side-gig, or multiple concurrent ventures can be launched, even while working full time. (If you can stomach that amount of stress!)
The point is that there is no set career path to follow anymore. The leaders of the future will be the ones who can pivot and solve problems in a creative way. It’s the creatives and visionaries that will blaze the way… In fact, when we think about it, hasn’t that always been the case?
Once you know the next steps in your career path, idea/market validation is crucial. You don’t want to be working on your new invention in the garden shed for 10 years, only to unveil it and find that no-one is interested.
So, the leaders of tomorrow will efficiently validate and market themselves, their products and ideas. You need efficient ways of getting the word out, to the people that you want it in front of.
Which brings me to the point of the post…
I’m a believer in creating not just an online presence, but an online omnipresence (I've written about that before). Demonstrate to the world that you’re committed, willing and able to continuously think about concepts and solutions.
You can be employed by 10 companies, and start 10 of your own. You can collaborate and be a lone wolf at different times.
While the economic activity that you undertake changes, there is something that doesn’t change… Your character, and your ability to create solutions.
These fundamental building blocks of a career can be chronicled, documented and stored online. Not on your hard drive, where they won’t help you, but online. For all of your peers, mentors, students, employers and business partners to see…
Your body of work, your career and life achievements.
Eventually, you might appear in all major news and media outlets, and in every industry association website. In the beginning though, in our path to online omnipresence and career security… We set up profiles and become known in as many places as possible.
Did you notice that I just wrote career security?
Job security is dead…
Long live career security!
Being a serial problem solver, who is willing to learn new concepts and put in the hard work, will likely mean career security. If you’re an amazing chef, it’s possible that you could move from French, to Japanese, to Chinese cuisine. If you use the same skills that you already know, applied to a new set of rules and tactics, you can succeed again and again.
A weak French Chef is unlikely to make the move to another kitchen art…
If you’re a serial achiever, chronicle it online. Create a track record that will allow you to stand out from all other candidates for future job applications. Set up series of online breadcrumbs that will increase the chances of finding your next business partner, supplier or customer.
Are you planning to create career security? Perhaps you already have a sideline or small business? Perhaps you’re set up as a consultant?
Apart form the obvious places that you need to be (Facebook, LinkedIn etc), here are a few places where you can set up a professional or business profile:
(All Oil and Gas/Energy related)
I’ve only listed five, and they’re all free to register on, search around and you’ll find dozens more. Gradually, you can capture more online real estate for yourself and your companies of the future.
Something interesting to share?
Join NrgEdge and create your own NrgBuzz today
Headline crude prices for the week beginning 11 February 2019 – Brent: US$61/b; WTI: US$52/b
Headlines of the week
Midstream & Downstream
Global liquid fuels
Electricity, coal, renewables, and emissions
2018 was a year that started with crude prices at US$62/b and ended at US$46/b. In between those two points, prices had gently risen up to peak of US$80/b as the oil world worried about the impact of new American sanctions on Iran in September before crashing down in the last two months on a rising tide of American production. What did that mean for the financial health of the industry over the last quarter and last year?
Nothing negative, it appears. With the last of the financial results from supermajors released, the world’s largest oil firms reported strong profits for Q418 and blockbuster profits for the full year 2018. Despite the blip in prices, the efforts of the supermajors – along with the rest of the industry – to keep costs in check after being burnt by the 2015 crash has paid off.
ExxonMobil, for example, may have missed analyst expectations for 4Q18 revenue at US$71.9 billion, but reported a better-than-expected net profit of US$6 billion. The latter was down 28% y-o-y, but the Q417 figure included a one-off benefit related to then-implemented US tax reform. Full year net profit was even better – up 5.7% to US$20.8 billion as upstream production rose to 4.01 mmboe/d – allowing ExxonMobil to come close to reclaiming its title of the world’s most profitable oil company.
But for now, that title is still held by Shell, which managed to eclipse ExxonMobil with full year net profits of US$21.4 billion. That’s the best annual results for the Anglo-Dutch firm since 2014; product of the deep and painful cost-cutting measures implemented after. Shell’s gamble in purchasing the BG Group for US$53 billion – which sparked a spat of asset sales to pare down debt – has paid off, with contributions from LNG trading named as a strong contributor to financial performance. Shell’s upstream output for 2018 came in at 3.78 mmb/d and the company is also looking to follow in the footsteps of ExxonMobil, Chevron and BP in the Permian, where it admits its footprint is currently ‘a bit small’.
Shell’s fellow British firm BP also reported its highest profits since 2014, doubling its net profits for the full year 2018 on a 65% jump in 4Q18 profits. It completes a long recovery for the firm, which has struggled since the Deepwater Horizon disaster in 2010, allowing it to focus on the future – specifically US shale through the recent US$10.5 billion purchase of BHP’s Permian assets. Chevron, too, is focusing on onshore shale, as surging Permian output drove full year net profit up by 60.8% and 4Q18 net profit up by 19.9%. Chevron is also increasingly focusing on vertical integration again – to capture the full value of surging Texas crude by expanding its refining facilities in Texas, just as ExxonMobil is doing in Beaumont. French major Total’s figures may have been less impressive in percentage terms – but that it is coming from a higher 2017 base, when it outperformed its bigger supermajor cousins.
So, despite the year ending with crude prices in the doldrums, 2018 seems to be proof of Big Oil’s ability to better weather price downturns after years of discipline. Some of the control is loosening – major upstream investments have either been sanctioned or planned since 2018 – but there is still enough restraint left over to keep the oil industry in the black when trends turn sour.
Supermajor Net Profits for 4Q18 and 2018
- 4Q18 – Net profit US$6 billion (-28%);
- 2018 – Net profit US$20.8 (+5.7%)
- 4Q18 – Net profit US$5.69 billion (+32.3%);
- 2018 – Net profit US$21.4 billion (+36%)
- 4Q18 – Net profit US$3.73 billion (+19.9%);
- 2018 – Net profit US$14.8 billion (+60.8%)
- 4Q18 – Net profit US$3.48 billion (+65%);
- 2018 - Net profit US$12.7 billion (+105%)
- 4Q18 – Net profit US$3.88 billion (+16%);
- 2018 - Net profit US$13.6 billion (+28%)