Brave New GeoWorld: Where Are the Geoscientists?

It's not easy, but I'm going to tackle the question of "What happened to the Great Crew Change, and where are the geologists?"

As you may recall, the "Great Crew Change" was the transition that was going to occur when the retirement-age oil industry technical professionals (including geoscientists) departed, with no one at hand to replace them, thanks to a "skipped generation" of people entering the oil industry, due to the generation-long downturn in the 80s and 90s.

So yes, the retirements occurred. But, were they replaced? Conventional wisdom held that they would be replaced by young professionals, who would then need extreme infusions of training and education.

That did not happen. Instead, $26/bbl oil happened, as did a proliferation of reorganizations, downsizing, bankruptcies, mergers, and more.

And, then came automation and "smart operations," where the geologist who would have once been in the geologist's trailer on the wellsite, monitoring the cuttings and the gas content in the drilling mud, is now minding 10 or 20 wells at a time, absorbed in a wall of monitors.

Many geoscientists have read articles about automation and have wondered if there is a future for them in the oil industry.

The answer is complicated. Clearly, the old roles have changed. But, new roles and opportunities have emerged, and it's possible that not everyone is aware of just where these bright spots exist. So, in the spirit of sharing insights, and encouraging sharing of your own observations, I'm listing a few areas where geoscientists are working today.

1. Shale play teams. Geoscientists are needed to understand the rocks themselves, which requires not just geology but also petrophysics, engineering, and geophysics. These geologists are diversified interdisciplinary experts. So, now the big shale plays are experiencing a renaissance, thanks to improved engineering and a better understanding of the geology. Recoverable reserves have dramatically improved, which in turn improves the economics.
2. Economic decision-making. Geoscientists who understand economics, reservoir engineering, and finance are very valuable for companies buying and selling assets, purchasing minerals and production.
3. Data mining / Big Data sweet spot hunting and reservoir optimization / revitalization. Geoscientists who are also adept in analytics (statistics, Big Data, neural network modeling for pattern recognition) are very valuable, not just for the models they can create, but also for the "reality check."
4. Investment banking. Sources of private equity would like to know they're putting money in something that makes sense. For that reason, they hire engineers and well-rounded geoscientists who can quickly and reliably give a range of probabilistic outcomes for a single deal or an entire play.
5. Technology innovators. Geoscientists who like to solve problems are very valuable at companies implementing new techniques and technologies at all stages of the exploration and development process. Further, companies such as Shell, Chevron, Devon, GE and others are investing in new technologies and have divisions within them dedicated to finding new game-changing technologies.
6. Tech startups. Geoscientists are creative, flexible thinkers. They are naturals with new technology and techniques, and with new analytical methods, imaging and futuristic, positive thinking. Many recent graduates, especially those near tech centers such as Denver, San Francisco, Houston, Pittsburgh and Oklahoma City are finding employment in tech startups.
7. Taking over operations. Companies are changing ownership quite rapidly and as they acquire properties they need teams to operate them. They seek geologists with experience.
8. Elephant and groundhog hunting. Using new techniques and technologies to find bold, big new fields or small, overlooked sweet spots.
9. Field, Lab, Research. This is shrinking every day, at least in the old paradigm. The new paradigm, however, which involves investing in startups and new technologies, is growing.
10. Blended energies and regulatory compliance. Geoscientists who can bring together alternative and renewable energies and also assure regulatory compliance are very valuable, especially in a world where the pace of change is absolutely dizzying.

This is not an exhaustive list, and I have not gone into a lot of detail. It's meant to trigger your own thoughts and to compare what you see with your own experience. Please share your own perceptions.