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.

---

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.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform, and operate.

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.
Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston femtech co. debuts new lactation and wellness pods

mom pod

Houston-based femtech company Work&, previously known as Work&Mother, has introduced new products in recent months aimed at supporting working mothers and the overall health of all employees.

The company's new Lactation Pod and Hybrid Pod serve as dual-use lactation and wellness spaces to meet employer demand, the company shared in a news release. The compact pods offer flexible design options that can serve permanent offices and nearly all commercial spaces.

They feature a fully compliant lactation station while also offering wellness functionalities that can support meditation, mental health, telehealth and prayer. In line with Work&'s other spaces, the pods utilize the Work& scheduling platform, which prioritizes lactation bookings to help employers comply with the PUMP Act.

“This isn’t about perks,” Jules Lairson, Work& co-founder and COO, said in the release. “It’s about meeting people where they are—with dignity and intentional design. That includes the mother returning to work, the employee managing anxiety, and everyone in between.”

According to the company, several Fortune 500 companies are already using the pods, and Work& has plans to grow the products' reach.

Earlier this year, Work& introduced its first employee wellness space at MetroNational’s Memorial City Plazas, representing Work&'s shift to offer an array of holistic health and wellness solutions for landlords and tenants.

The company, founded in 2017 by Lairson and CEO Abbey Donnell, was initially focused on outfitting commercial buildings with lactation accommodations for working parents. While Work& still offers these services through its Work&Mother branch, the addition of its Work&Wellbeing arm allowed the company to also address the broader wellness needs of all employees.

The company rebranded as Work& earlier this year.

Rice biotech studio secures investment from Modi Ventures, adds founder to board

fresh funding

RBL LLC, which supports commercialization for ventures formed at the Rice University Biotech Launch Pad, has secured an investment from Houston-based Modi Ventures.

Additionally, RBL announced that it has named Sahir Ali, founder and general partner of Modi Ventures, to its board of directors.

Modi Ventures invests in biotech companies that are working to advance diagnostics, engineered therapeutics and AI-driven drug discovery. The firm has $134 million under management after closing an oversubscribed round this summer.

RBL launched in 2024 and is based out of Houston’s Texas Medical Center Helix Park. William McKeon, president and CEO of the TMC, previously called the launch of RBL a “critical step forward” for Houston’s life sciences ecosystem.

“RBL is dedicated to building companies focused on pioneering and intelligent bioelectronic therapeutics,” Ali said in a LinkedIn post. “This partnership strengthens the Houston biotech ecosystem and accelerates the transition of groundbreaking lab discoveries into impactful therapies.”

Ali will join board members like managing partner Paul Wotton, Rice bioengineering professor Omid Veiseh, scientist and partner at KdT Ventures Rima Chakrabarti, Rice alum John Jaggers, CEO of Arbor Biotechnologies Devyn Smith, and veteran executive in the life sciences sector James Watson.

Ali has led transformative work and built companies across AI, cloud computing and precision medicine. Ali also serves on the board of directors of the Drug Information Association, which helps to collaborate in drug, device and diagnostics developments.

“This investment by Modi Ventures will be instrumental to RBL’s growth as it reinforces confidence in our venture creation model and accelerates our ability to develop successful biotech startups,” Wotton said in the announcement. "Sahir’s addition to the board will also amplify this collaboration with Modi. His strategic counsel and deep understanding of field-defining technologies will be invaluable as we continue to grow and deliver on our mission.”