Financial institutions have been involved historically in oil and gas investment. Recent investment in oil and gas has lost as much as 60% in value during the past five years. As a result, bankruptcy sales are expected to rise while a number of these companies reduce their investment in oil and gas. While commodity price stability is the largest driver of the A&D market, there are opportunities at banks for Geologists as Jr. Analysts and Associates. The job typically involves nearly year-round long hours working in high stress and client focused environments. The hours required of applicants need to be weighed against one’s personal situation, as they are rewarding but stressful. Analysts are primarily responsible for supporting more senior technical staff. Most of these jobs are found in larger oil patch cities, primarily Houston.
Investment Banking Analyst (A&D; M&A)
Banks and A&D advisors hire geologists, but it is a very specialized role with few positions available and most targeting mid-sr level geologists (i.e. 3-7 years’ experience with an operator). Banks and advisory companies need geologists to evaluate investments for acquisition or divestiture (A&D). In addition, some operators have internal business development teams, or Technical Transaction Teams, composed of geologists and engineers that internally evaluate investment opportunities. On par with the overall trend in the industry, most teams are smaller than in the past, but with a number of RBL re-determinations upcoming there is the potential for an up-tick in work which will require additional geological guidance.
Educational Requirements:
- MS Geoscience and must be business minded
- MBA a plus
Experience-Expertise:
- Broad geological expertise especially in field asset analysis
- Good knowledge of reservoir engineering evaluation
- Experience with unconventional play economics
- Well-rounded knowledge of oil and gas A&D market
Professional Opportunities:
- Geology Analyst
- A&D Geologist
- Oil and gas strategist
Compensation:
- Pay ranges from $60-130k/yr boe
Potential Clients:
- Multinational investment banks and financial services; e.g. JP Morgan
- Local to regional financial institutions; e.g. BOK, Tulsa
- Operators and PE backed companies
- Insurance companies
- High net-worth individuals or groups
Opportunity Ratio:
- Mature=5/1.5=Low Job Density
Examples:
- Sr. Geologist-Investment Banking, Houston, TX (MS+8): JoeAmara-ExecSearch
- Oil and Gas Geologist, Investment Banking, JP Morgan (MS+A&D Exp): JP Morgan
- Geology Analyst, A&D Boutique Firm, Detring Energy Advisors (MS+4): Detring Energy Advisors
- Business Analyst, Noah Cns., OKC, OK (BS/BA+15): Indeed (5/15/20)
Private Equity Partner
During the unconventional oil boom from 2008 to 2015 private equity invested billions of dollars in oil and gas. They invested heavily in personnel in particularly petroleum engineers and geologists. This industry has collapsed but may re-emerge as prices return. To develop a PE program or to be a key member of the management team you must be able to 1) develop a great, sellable idea or concept, 2) have the financial contacts and understanding of economics to raise money, and 3) have the contacts and ability to build a great team. Remember, it’s all about economics, it’s not personal, it’s all about economics…and what kind of team can you build to reach the best ROR.
Educational Requirements:
- MS geology, geophysics, engineering (reservoir and operations) or land management
Experience-Expertise:
- Excellent at developing new ideas for unconventional and even conventional ideas
- Good knowledge of play types and successful plays
- Good knowledge of activity and land setting in target area.
- Good reservoir analysis and related economics
- Able to understand and focus on petrophysics of target zone(s)
- Excellent at team building and management
- Must have experience raising funds
Team Professional Opportunities:
- Geo-CEO
- Geological manager
- Exploration geologist
- Business development geologist
- Reservoir engineer
- Land specialist
- Petrophysicists are often the key to ultimate success
- Geotech
Compensation:
- Compensation is typically from $75-200k/yr (in the past); plus shares based on investment usually by the management team and shares based on a waterfall system for the company employees)
Potential Clients:
- Large PE firms
- PR funded companies
- Institutional investors
- Financial institutions
- High-net worth individuals or groups
Opportunity Ratio:
- Mature (Contracting)=4/1.5=Low Job Density
Examples:
- Geologist, Private Equity E&P OKC, OK: HEI Search
Forensic Accountant
Geoscientists with related degrees in accounting, business, and/or economics can use their analytical skills to evaluate accounting histories and irregularities. Many geologists are trained to deal with multivariate analysis and problem solving that can be used in this discipline but they will need accounting education and/or experience.
Educational Requirements:
- BS/BA degree with primary/secondary degree in accounting, business or economics; MS a plus
- Additional training for CPA; CPS and CFE certifications are a plus
Experience-Expertise:
- Basic accounting techniques
- Accounting software experience
- Great focus and observational skills
- Good at client relations
Professional Opportunities:
- Financial analyst
- Client accounting specialist
Compensation:
- Pay ranges from $55-75k/yr; w/CPA $75-120k/yr
Potential Clients:
- Financial—tax and audit companies
- Insurance companies
- Government
Opportunity Ratio:
- Mature Industry=5/1.5=Low Job Density (for geos)
Examples:
- Entry-level Forensic Accountant, Robson PC, Glen Allen, VA (BS/BA+/$62k+): ZipRecruiter (5/01/20)
- Forensic Accountant, Deloitte, Lake Mary, FL (BA/BA+1/$57k/yr+); ZipRecruiter (5/15/20)