EY makes the case for people and culture amid historical oil and gas disruption

The pandemic can be an opportunity to accelerate a workforce transformation. Photo by Sarote Pruksachat/Getty

When considering the future of energy, you might see a world powered by cleaner energy sources and guided by bots and algorithms in the workplace. But digitalization and decarbonization are complex transitions. The road ahead will mix human talent with cutting-edge technologies, fossil fuels with low-carbon alternatives, next-generation renewables and energy storage.

These trends present a potentially dizzying array of challenges for the oil and gas industry. Today's strategies for tomorrow's reality require skills that are continuing to evolve and jobs that haven't been defined yet — all against a backdrop of unprecedented uncertainty and disruption.

This past year, the COVID-19 pandemic has accelerated digital adoption while reducing energy demand and prices, causing companies to focus on survival. Now more than ever, the industry must find an investment balance between addressing current market pressures and positioning for the future.

EY's 2020 Oil and Gas Digital Transformation and the Workforce Survey shows that 58% of oil and gas executive respondents agree that COVID-19 has made investing in digital technology more urgent, with 80% planning to invest at least a moderate amount relative to their total budget in digital technology today. The most popular targets of that money include remote monitoring, mobile platforms or apps, cloud computing, and operational technology.

However, digital technologies alone are not a panacea. Digital integration is a process that requires human and organizational investment. Nearly all respondents in the EY survey said that too few workers with the right skills in the current workforce is a major or minor challenge to technology adoption, with executives identifying nearly 60% of the workforce as needing to be reskilled or upskilled.

The need to incorporate an intentional skills strategy into digital implementation is crucial. It will require change management and leadership commitment to address human and organizational challenges alongside digital investments. Looked at positively, the pandemic can be an opportunity to reset the agenda and accelerate a workforce transformation in which rig workers, data scientists, internet of things, and remote monitoring sensors are all co-workers building toward a new future.

Organizational challenges hindering technology adoption
Challenges to digital adoption and workforce reskilling can be embedded deep in a company's structure, processes, and culture. Over half of oil and gas executives in the EY survey say that their culture and organizational structure limit how well skills are developed. Companies can often struggle with reskilling efforts when there is no unifying program to organize around.

The tone and commitment from the top of an organization can convey the importance of reskilling. To cultivate a digital mindset, company leadership must develop a deeper understanding of how digital can enhance business operations. Executives can complete a data-driven assessment of their organizations and current workforces to diagnose skill gaps and set tangible benchmarks to measure progress. Addressing skill gaps will require a mix of techniques from online and in-person training curriculums and on-the-job experiences, to mentorship and coaching.

Building learning programs can take significant investment. Oil and gas can collaborate with other organizations to leverage platforms and courses tailored to develop specific skills. Similarly, oil and gas companies can look to partners to fill talent and skill gaps. Companies must assess which skills and functions need to be owned and which ones can be performed better by a partner.

Importance of trust and transparency
Transparency is going to be very important for the industry to remain resilient through the energy transition. With the global population expected to reach 10 billion within a few decades, eliminating fossil fuels — while keeping energy affordable and reliable — is not feasible based on the technology available.

It might seem like a paradox, but the oil and gas sector can draw on its skills in meeting the energy needs of the planet to advance decarbonization in broader areas, such as the circular economy, hydrogen, and better batteries that rely less on rare-earth minerals.

This is an opportunity for oil and gas companies to lead with purpose and tell the story behind their environmental, social, and governance (ESG) metrics.

In order to have that transparency, the industry will need to embrace a standard way to measure, track, and share data that is reliable. In doing so, oil and gas companies can attract strong, diverse talent that wants to work for companies with a sense of purpose. Nearly three-fourths of Gen Z agree that business has a responsibility to create a better world, and current employees are three times as likely to remain with a purpose-driven organization, according to the Global Energy Talent Index Report 2019.

The future of work for oil and gas requires different capabilities and mindsets, not just technical expertise. Critical thinking, creativity, innovation, problem solving, and ideation are needed to adapt to a new technology, consider how it can be applied to the business and extract every bit of value possible.

There's a growing acceptance that a return to the pre-pandemic "normal" is not an option; that's doubly true for oil and gas companies. Yet that desire for normality is in itself misplaced: proactive organizations should always think about what is possible. New talent strategies are at the heart of what a business wants to be and the world it wants to build in the process.

The views reflected in this article are those of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.

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EY exists to build a better working world, helping create long-term value for clients, people, and society and build trust in the capital markets.

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Working across assurance, consulting, law, strategy, tax, and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.
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Houston startup is off to the races with its innovative running shoes

running start

Despite Houston’s reputation as a sneaker town, there are few actual shoe companies headquartered in the Bayou City. One that is up and running is Veloci Running, an innovative enterprise that combines the founder’s history as a track runner for Rice University with the realities of running in a changing world.

Tyler Strothman started running cross country growing up in Wisconsin and Indiana before moving to Texas to attend Rice in 2020. Naturally, his college life was altered significantly by the COVID-19 pandemic. Unfortunately, Strothman contracted the virus, leading to pneumonia and causing him to consider other plans for his future.

One thing that stood out from Strothman’s running career was how bad his shoes fit.

“Traditional shoes narrowed in, cramped the front of my feet, and it was causing foot pain,” he said in a video interview. “But any other shoes that were shaped to better fit the natural foot shape were more barefoot (style)—they were more minimalist overall. And that was hurting my calf and Achilles. It was pulling on it, kind of like a rubber band.”

Strothman decided to start Veloci and went on to win the annual Liu Idea Lab for Innovation and Entrepreneurship's H. Albert Napier Rice Launch Challenge in 2025. The win secured $50,000 in startup money, which Strothman used to immediately launch his new runner-centered shoe design with himself as the CEO at the age of 24.

Along for the jog was Strothman’s college friend, Austin Escamilla, who serves as chief operating officer. Escamilla believed in Strothman’s vision, but the project immediately ran into snags beyond Veloci’s control, particularly with manufacturing in Asia.

“It was quite a year to start a shoe business, especially dealing with tariffs and global economic trade tensions,” he said in the same video interview. “We've luckily had some really good partners and really solid advisors throughout the journey who've either done it or had some good feedback and advice. It certainly takes a village, but every day is different. So, it's fun to come into work every day and problem solve.”

The flagship Veloci shoe is the Ascent, which comes in both men’s and women’s sizes. It combines the wide toe cage that Strothman wanted with extra support cushion for a softer, easier run. They retail at $180. Strothman has personally been testing them for a year, noticing reduced lower leg pain when he runs.

At the same time, Veloci has attended to some of the more unique running problems in Houston and other hot, Southern states. A combination of heat and humidity makes for a very soggy shoe if not designed with such environments in mind. The Ascent is built to be very open and breathable, allowing hot air to flow and keeping sweat from building up. These various comfort improvements have made the Ascent Strothman’s favorite running shoe.

“I put on more pairs of this Veloci shoe than I have in my other running shoes in the last seven years,” he said

Currently, Veloci is still a very niche brand. Since the company launched last year, they’ve sold roughly 10,000 pairs. Those sales come either directly through their website or from specialty running stores, most of which are located around the Houston area, like Clear Creek Running Company in League City.

Building community around the shoe through these specialty retailers has been a prime marketing strategy. Part of the $50,000 grant went to a custom van that Veloci can take to various 5Ks, runs and events to get people interested in the brand. The personal touch has helped news of Veloci spread through the running world.

“We went to many run clubs throughout the last year,” said Escamillia. “We've been to pretty much every one of the major run clubs at least once or twice. Folks who try on the shoes, love them, become fans and post and repost…. The marketing side's been a lot of fun.”

Intuitive Machines lands $180M NASA contract for lunar delivery mission

to the moon

NASA has awarded Intuitive Machines a $180.4 million Commercial Lunar Payload Services (CLPS) award to deliver science and technology to the moon.

This is the fifth CLPS award the Houston spacetech company has received from NASA, according to a release. It will be the first mission to utilize Intuitive Machines' larger cargo lunar lander, Nova-D.

Known as IM-5, the mission is expected to deliver seven payloads to Mons Malapert, a ridge near the Lunar South Pole, which is a "compelling location for future communications, navigation, and surface infrastructure," according to the release.

“We believe our space infrastructure provides the scalability and flexibility needed to support an increased cadence of new Artemis missions and advance national objectives. This CLPS award accelerates our expansion efforts as we build, connect, and operate the systems powering that infrastructure,” Steve Altemus, CEO of Intuitive Machines, said in the release. “We look forward to working closely with NASA to deliver mission success on IM-5 and to provide sustained operations and persistent connectivity in the cislunar environment and across the solar system.”

The delivery will include the Australian Space Agency’s lunar rover, known as Roo-ver, and another lunar rover from Honeybee Robotics, a part of Jeff Bezos' Blue Origin. Intuitive Machines will also deliver chemical analysis instruments, radiation detectors and other technologies, as well as a capsule named Sanctuary that shows examples of human achievements.

Intuitive Machines previously completed its IM-1 and IM-2 missions, which put the first commercial lunar lander on the moon and achieved the southernmost lunar landing, respectively.

Its IM-3 mission is expected to deliver international payloads to the moon's Reiner Gamma this year. It’s IM-4 mission, funded by a $116.9 million CLPS award, is expected to deliver six science and technology payloads to the Moon’s South Pole in 2027.

The company also announced a $175 million equity investment to fuel growth earlier this month.

TotalEnergies exits U.S. offshore wind sector in $1B federal deal

Energy News

TotalEnergies, a French company whose U.S. headquarters is in Houston, has agreed to redirect nearly $930 million in capital from two offshore wind leases on the East Coast to oil, natural gas and liquefied natural gas (LNG) production.

In its agreement with the U.S. Department of the Interior, TotalEnergies has also promised not to develop new offshore wind projects in the U.S. “in light of national security concerns,” according to a department press release.

Federal agency hails ‘landmark agreement’

The Department of the Interior called the deal a “landmark agreement” that will steer capital “from expensive, unreliable offshore wind leases toward affordable, reliable natural gas projects that will provide secure energy for hardworking Americans.”

Renewable energy advocates object to what they believe is the Trump administration’s mischaracterization of offshore wind projects.

Under the Department of the Interior agreement, the federal government will reimburse TotalEnergies on a dollar-for-dollar basis for the leases, up to the amount that the energy company paid.

“Offshore wind is one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers,” Interior Secretary Doug Burgum said in the announcement. “We welcome TotalEnergies’ commitment to developing projects that produce dependable, affordable power to lower Americans' monthly bills while providing secure U.S. baseload power today — and in the future.”

TotalEnergies cites U.S. policy in move away from U.S. wind power

In the news release, Patrick Pouyanné, chairman and CEO of TotalEnergies, says the company was “pleased” to sign the agreement to support the Trump administration’s energy policy.

“Considering that the development of offshore wind projects is not in the country’s interest, we have decided to renounce offshore wind development in the United States, in exchange for the reimbursement of the lease fees,” Pouyanné says.

TotalEnergies redirects capital to LNG, oil, and natural gas

TotalEnergies will use the $928 million it spent on the offshore wind leases for development of a joint venture LNG plant in the Rio Grande Valley, as well as for production of upstream oil in the Gulf of Mexico and for production of shale gas.

“These investments will contribute to supplying Europe with much-needed LNG from the U.S. and provide gas for U.S. data center development. We believe this is a more efficient use of capital in the United States,” Pouyanné says.

TotalEnergies paid $133.3 million for an offshore wind lease at the Carolina Long Bay project off the coast of North Carolina and $795 million in 2022 for a lease covering a 1,545-megawatt commercial offshore wind facility off the coast of New Jersey.

“TotalEnergies’ studies on these leases have shown that offshore wind developments in the United States, unlike those in Europe, are costly and might have a negative impact on power affordability for U.S. consumers,” TotalEnergies said in a company-issued press release. “Since other technologies are available to meet the growing demand for electricity in the United States in a more affordable way, TotalEnergies considers there is no need to allocate capital to this technology in the U.S.”

Since 2022, TotalEnergies has invested nearly $12 billion to promote the development of oil, LNG, and electricity in the U.S. In 2025, TotalEnergies was the No. 1 exporter of LNG from the U.S.

Industry groups push back on offshore wind pullback

The American Clean Energy Association has pushed back on the Trump administration’s characterization of offshore wind projects.

“The offshore wind industry creates thousands of high-quality, good-paying jobs, and is revitalizing American manufacturing supply chains and U.S. shipyards,” Jason Grumet, the association’s CEO, said in December after the Trump administration paused all leases for large-scale offshore wind projects under construction in the U.S. “It is a critical component of our energy security and provides stable, domestic power that helps meet demand and keep costs low.”

Grumet added that President Trump’s “relentless attacks on offshore wind undermine his own economic agenda and needlessly harm American workers and consumers.” He called for passage of federal legislation that would prevent the White House “from picking winners and losers” in the energy sector and “placing political ideology” above Americans’ best interests.

The National Resources Defense Council offered a similar response to the offshore wind leases being paused.

“In its ongoing effort to prop up waning fossil fuels interests, the administration is taking wilder and wilder swings at the clean energy projects this economy needs,” said Pasha Feinberg, the council’s offshore wind strategist. “Investments in energy infrastructure require business certainty. This is the opposite. If the administration thinks the chilling impacts of this action are limited to the clean energy sector, it is sorely mistaken.”

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This article originally appeared on EnergyCapitalHTX.com.

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