1. Strategies for Overcoming the Energy Talent Void Charles Swanson Director, Ernst & Young Energy Center

2. Energy Industry Talent Void  Half of the current workforce will retire in the next 10 years  Half of today’s E&P workers are 50-60 years old  15% are early 20s to mid 30s  The average age in the O&G workforce is 48 Oldest employee age in any U.S. industry

3. Shallow Talent Pool Shortage of petroleum engineers  BS programs down 50% 34 in 1983 to 17 in 2006  BS enrollment down 79% 11,014 in 1983 to 2,412 in 2006  Degrees granted down 74% 1,529 in 1983 to 393 in 2006

4. How did this happen?  Since 1985, energy firms have cut workforces by approximately 65%  Perceived instability  Tech industry boom  Layoffs in the mid-80s and the ripple effect  Image problem

5. Without Trained Workers  Loss of differentiating technical capabilities  Slow down in project delivery  Unable to develop shut in capacity  Increase in operating costs from errors (World Oil story)  Further tightening of production supply; increased volatility and price at the pump

6. What now?

7. Extreme Makeover Image makeover focusing on:  Wealth of opportunity  Caliber of opportunity  Employer of choice

8. Wealth of Opportunity  Ample opportunity Monster.com search for O&G returns more than 1,000 hits –850 petroleum and reservoir engineering –520 geoscience 100% post-collegiate job placement  Generous salaries Petroleum engineering starting salaries around $60,000  Global opportunities; opportunities for growth

9. Caliber of Opportunity  Challenge Focus on the cutting-edge technology  Value Opportunity to meet growing worldwide demand  Pride Lose the roughneck image

10. Employer of Choice Overall Industry  Mature, stable  Environmentally conscientious  Profitable; investing wisely to increase supply Company Specific  Exceptional benefits  Growth opportunities

11. Short Term Strategies  Be creative; recruit from non-traditional sources  Start with a younger audience  Retain and retrain  Utilize consultants

12. Looking Forward  The word is out  Media coverage  Industry alignment Cohesive messaging surrounding the issue Increasingly aggressive recruitment  Movement afoot