Some geologists have a unique ability to develop new ideas and new ventures. In petroleum or mining exploration ventures geologists are typically a key part of the team in a new area. Being an entrepreneur is a difficult path to take especially if you are inexperienced, do not have a network and have not developed the ability to attract venture capital. Nevertheless, there are always opportunities for new ideas and start-ups in multiple disciplines.
Oil and Gas Prospector
There will be a future need for good quality prospects especially low cost, conventional targets. A geo-entrepreneur first needs to develop great prospect ideas with all of the details to support the concept especially economics. Next, you must find financial backing to lease land or at least a contractual relationship with a company or high-net worth individual to promote and develop the prospect.
Educational Requirements:
- BS-MS geology or geophysics
Experience-Expertise:
- Self-starter with good expertise in a key area of interest.
- Access to hardware—computers, printers, etc. to map and make cross-sections
- Access to geologic and engineering software such as GeoGraphics/Petra and Aires
- Access to databases for GIS and well/production data
- Ability to understand costs and compute economics
- Potential access to capital or some other relationship
Professional Opportunities:
- New horizontal plays
- Cheap conventional oil plays
- Prospects based on 3-D seismic shot during resource play boom
- New gas plays
Compensation:
- All deals are custom. Compensation is typically based one or more of the four following fees/interest arrangements:
- Prospect generation/ Finder’s fee—these fees range from $5-10k for small prospects (e.g. conventional) to $15-20k for larger deals (usually horizontal)
- Over-riding royalty interest (ORRI)— usually 1-4%; typically depends on the NRI on the prospect; for example 1/16 override for 1/6 NRI, 4% for 1/8 leases.
- Carried interest—e.g., 1%-2% carry if drilling right away (need to be careful as large companies can overwhelm a CI with multiple AFEs). CI’s are typically tied to a stage in operations, e.g. carried to the tanks.
- Back-in after payout, e.g., 1-6+%; often tied to ORRI 3%BI for each 1% ORRI (know that the operator controls payout which can be further complicated by changes in asset ownership)
Potential Clients:
- Small to medium independent companies
- Privately owned small companies
- Private equity shops
Opportunity Ratio:
- Mature=5/1.5=Low Job Density
Examples:
- Talk to mentors about past deals
Producing Properties Promoter
With the variance and prices in re-determination there will be emerging opportunities to buy production. Typically, a geologist will team with a reservoir engineer to develop a new venture. Financial backing from banks or other financial institutions may be available for the right rate-of-return.
Educational Requirements:
- BS-MS geology or geophysics
Experience-Expertise:
- Familiarity with the key characteristics (geology, engineering, production, etc.) of a target area
- Understand the market and players in the target area
- Ability to evaluate reserves and economics—most likely will need a partner or reservoir engineering consultant.
- Potential access to capital.
Professional Opportunities:
- Acquisitions consultant
- Member of acquisitions team
Compensation:
- Compensation is usually based on a commission, e.g., 5%. If you spend a lot developing the idea then you can also ask for a bonus.
Potential Clients:
- Multinational investment banks
- Regional banks
- Private equity investors
- High net-worth investors
Opportunity Ratio:
- Semi-Mature=5/2.5=Medium Job Density
Examples:
- Talk to mentors about past deals
Mineral Interest/ Royalty Buyer
Investment in funds that contain royalties, and in some cases carried working interest. Royalty Interest is an ownership in production that bears no cost in production as opposed to Working Interest which is an ownership in a well that bears 100% of the cost of production. Royalty interest owners receive their share of production revenue before the working interest owners. They hire geologists, landmen, and engineers to scout, scan, evaluate, and recommend purchases, and then the landmen contact the owners to make a proposal and to negotiate.
Educational Requirements:
Experience-Expertise:
- Familiar with key areas of exploration and development
- Develop a good geologic model for areas of interest
- Know, or attempt to know the upcoming drilling schedules in the target area.
- Develop “buy maps” that “grade” the leases and inform purchasing decisions and the prices offered
- Basic knowledge of land related software, e.g., Quorum, Bolo, Access, etc.
Professional Opportunities:
- Stratigrapher/ Mapper
- Data manager
- Play analyst
Compensation:
- Pay ranges from $50-120k or based on deal
Potential Clients:
- Mineral companies
- Privately owned, LLCs
- Financial investment institutions
Opportunity Ratio:
- Mature=5/1.5=Low Job Density
Examples:
- BD-Oil and Gas Mineral and Royalty Buyer, Thunder River Prod, LLC, Denver, CO (BS+5Land): ZipRecruiter (5/01/20)
Note: Multiple jobs for sales agent with land experience.
Land Speculator
Petroleum and mining geologists often have ideas where the next play or find will develop. Some private investor and usually smaller independents are willing to pay for that information though a land promotion arrangement.
Educational Requirements:
- BS-MS geology or geophysics
- Edu/training in land management
Experience-Expertise:
- Self-starter with good expertise in a key area of interest or play
- Access to hardware—computers, printers, etc. to map and make cross-sections
- Access to geologic and engineering software such as GeoGraphics/Petra and Aires
- Access to databases for GIS and well/production data
- Experience in land evaluation
- Potential access to capital or some other relationship
Professional Opportunities:
- New horizontal plays
- Conventional oil plays
- New gas plays
Compensation:
- Compensation is typically based on $/acre. $5/acre is a good number. Small ORRIs are possible.
Potential Clients:
- Small to medium independent companies
- Land companies
- Privately owned small companies
Opportunity Ratio:
- Semi-Mature=4/1.5=Low to Fair Job Density
Examples:
- Talk to mentors about past deals
Oilfield Chemical Developer
There are opportunities for innovation in completions. The best approach is to be self-funded and to start by promoting the concept, obtaining permission for field-testing, and partnering with potential commercialization partners or with early adopters. Areas of interest usually involve crossover with engineers.
Educational Requirements:
- MS-PhD geoscience
- Specialty in geochemistry
Experience-Expertise:
- Wettability alteration
- Water processing
- Smart operations
- Real-time reservoir characterization improvements
- Smart equipment (smart pipe, smart tanks, etc.)
Professional Opportunities:
- Completions consultant
- New venture geochemistry
Compensation:
- Compensation is typically based on deal with financial backers
Potential Clients:
- Investment banking
- Operations vendors
- High net-worth individuals
Opportunity Ratio:
Examples:
- Talk to mentors about past deals
Advanced Technology Promoter
New ideas are constantly emerging. Geologists can play a key role in applying new ideas, building the team to work on a new technology, and finding investors to get a project started.
Educational Requirements:
- MS-PhD in science or engineering
Experience-Expertise:
- Jack-of-all-trades but lots of experience in one subject
- Ability to focus on multiple ideas and concepts.
- Innovation
- Ability to communicate new concepts
Professional Opportunities:
- Self-driving geosteering
- Automation / smart operations of many types
- Expanded LWD / characterization
- New types of well logs based on new algorithms for lithology identification
- New energy sources (earth-based batteries)
- Lithium / rare earth optimization
- New hydro and micro hydro-energy
- Wettability alteration and optimization of EOR
- Reservoir characterization and basin development modeling, with the idea of developing alternative fracture network projections, migration pathways, and economic accumulations
- Mississippi Valley type deposits – hydrothermal enrichment for dual methods of prospecting (for minerals as well as petroleum)
Compensation:
- Compensation based on costs and royalties
Potential Clients:
- Multinational investment banks
- Regional banks
- Private equity investors
- High net-worth investors
Opportunity Ratio:
- Emerging=2/1.5=Low Job Density
Examples:
- Contact mentors about past deals
Training Educator
If a geologist has specialty even if they are relatively inexperienced, they may be able to provide training for that specialty. Most often training is through one of the major training vendors, but many companies are cutting training right now.
Educational Requirements:
- MS-PhD in geoscience or geophysics
Experience-Expertise:
- Significant experience in geoscience; typically 10+ years
- Expert in a particular field
Professional Opportunities:
- GeoAnalytics—Many companies are interested in this field (For more info see below)
- EOR—There is great interest in this field in both petroleum and carbon capture and utilization
- CCUS—companies are preparing for a system of credits and disposal. Although this is not a full-fledged industry now is the time to train
- ESG—Most companies will be required to provide this information for banking and investment. This is a “hot” training need
- Exploration—with the focus on development and mining through density drilling there will be a future need to teach exploration methods
Compensation:
- Pay ranges from $50-75+/hour
Potential Clients:
- Multinational majors and large independents
- Small to medium-sized independents
- Multinational and regional service companies
- Consultancies
Opportunity Ratio:
- Semi-Mature=4/2=Low Job Density
Examples:
- Contact mentors about past deals