1. Opportunities in the Oil Field
John Roby
December 9, 2008

2. Overview Personnel Background Occidental Petroleum
Fall of the Oil Price – What now?
Outlook for Young Professionals
Career Insight
Questions

3. Personnel Background Graduate from the University of Texas at Austin
Graduated spring 2006
Mechanical Engineer by degree

4. Career Development 1st year 2nd year+
Participated in Oxy’s Engineering Training Program
3 month rotations in drilling, production, reservoir and facilities engineering
Introduction to upstream engineering disciplines
Field time
2nd year+
Completions engineer
Hydraulic fracture stimulations
Sand control design
Production engineer
Base production management
Workovers
Primary recovery and secondary recovery
Voidage and subsidence

5. WHAT IS OXY? A world leader in oil & gas production
A major North American chemical manufacturer
2005 Earnings Contribution
8,000 Employees (3500 Oil & Gas)
$15+ billion revenue (2005)
$26+ billion in assets (12/31/05)

6. HOW BIG IS OXY? Market Capitalization 5/1/06 ($b)
Data for all companies from SEC filings, except BP (2005 BP Annual Report)

7. LA BASIN OIL FIELDS N Wilmington Oil Field Long Beach Unit L.A. Basin
California
San Vicente
Salt Lake
Los Angeles
Beverly Hills
Sawtelle
Montebello
Las Cienegas
L.A. Basin
Cheviot Hills
Whittier
Inglewood
Sansinena
Potrero
Bandini
Playa Del Rey
Brea Olinda
Rosecrans
Santa Fe Springs
Coyote
El Segundo
Yorba Linda
Dominguez
Kraemer
Pacific
Ocean
Richfield
Torrance
Long Beach
Seal Beach N
68 oil fields in the Los Angeles Basin. The blue stars show where the pictures were taken.
Belmont Offshore
Wilmington Oil Field
Newport
Huntington Beach
Long Beach Unit 4 8 12
Scale in Miles

8. Top 10 oil fields in the US (based on recoverable volume)
LA BASIN OIL FIELDS
Top 10 oil fields in the US (based on recoverable volume)
California
San Vicente
Salt Lake
Los Angeles
Beverly Hills
Sawtelle
Montebello
Las Cienegas
L.A. Basin
Cheviot Hills
Whittier
Inglewood
Sansinena
Potrero
Bandini
Playa Del Rey
Brea Olinda
Rosecrans
Santa Fe Springs
Coyote
El Segundo
Yorba Linda
Dominguez
Kraemer
Pacific
Ocean
Richfield
Torrance
Long Beach
Seal Beach N
68 oil fields in the Los Angeles Basin. The blue stars show where the pictures were taken.
Belmont Offshore
Wilmington Oil Field
Newport
Huntington Beach
Long Beach Unit 4 8 12
Scale in Miles

9. THUMS
World Class Drilling

10. The Price Rise Contributing Factors Strong demand growth 2004 +
Non-OPEC resource access/growth
OPEC behaviour post 1999
Deference to efficiency opportunities
Low spare capacity
Geopolitics
Falling value of US Dollar
Energy as a financial commodity
BP Statistical Review of World Energy June 2007

11. The Fall Why the fall Price adjusting Slowing economy
Less demand
Increase value of the US Dollar
Divisions between OPEC members
Energy as financial commodity
Forecasting future demand
Energy Information Administration

12. The Future of Oil Price Current WTI price – $44.61 Price will rebound
A Barrel of Crude Oil Provides:
Current WTI price – $44.61
temporary phase
Price will rebound
Barclays Survey estimates oil will average between $75 to $100/bbl range over next 5 years
Demand will increase
Increase in Asian development
World economy will rebound
…Opportunities will continue to grow for young engineers
One Barrel =
42 gallons
Gasoline gallons
Fuel Oil gallons
Jet Fuel gallons
Asphalt gallons
Kerosene gallons
Lubricants gallons
Petrochemicals,
other products gallons
American Petroleum Institute, 1999

13. Setting The Stage : Oil Supply Requirements
Existing Field
Production
IEA & NPC
100 MMBD
Exploration 38%
Reserves Growth 38%
EOR 18%
Unconventional 6%
We Need More Trained People, Improved Efficiency, and Better Technology

14. Our industry challenge…U.S. human resources
OVER HALF OF THE WORKFORCE ELIGIBLE
TO RETIRE IN NEXT 10 YEARS 25
AGE DISTRIBUTION 20 15
% OF U.S. WORKFORCE 10 5
The oil industry experienced a hiring surge in the late 70’s and early 80’s followed by an extended period of decline resulting in the peak evident in this age distribution.
A recent influx of new talent has not made up for decades of depressed hiring activity. As a result, over half of today’s workforce is eligible for retirement within the next 10 years – often referred to as “the big crew change”.
The workforce must be replenished, but this challenge is exacerbated by an overall shortage of science and engineering graduates, particularly women and minorities. Additional challenges include the industry’s image and competition from other industries. 20 25 30 35 40 45 50 55 60 65 70
AGE
Source: U.S. Dept of Labor
Bottom line: You are well positioned
“Facing The Hard Truths About Energy”
A Comprehensive View To 2030 Of Global Oil And Natural Gas, National Petroleum Council Study

15. Imbalances at Regional level
Major excess
Major deficit
Source: SBC analysis, 5 years average

16. Career Opportunities Engineering Geoscience Sciences Business
Petroleum, Chemical, Mechanical, Others
Geoscience
Geology, Geophysics
Sciences
All basic sciences - research
Business
Finance, HR, Management

17. SPE 2008 Salary Survey Great financial compensation early in career
Engineers and Geologist earn more early in career
Continue increase over past few years
SPE International and Western Management Group

18. Keys to Obtaining a Job 5 pieces of advice
Experience
Internships, externship, class projects
Keep an updated resume
Know the industry
Read news articles, talk with industry professionals
Be open
Look at both service companies and operators
Take advantage of SPE
Networking

19. Keys to Success in Early Career 5 pieces of advice
Ask questions, and learn
Not just in your discipline but all areas
Field exposure
Build a technical base
Don’t get in a hurry for the next promotion
Work well with others
Being a manager is not the only measure of success

20. Bottom Line
Our industry has many challenges….that’s part of what makes it fun and a great place to work
The world is counting on us to solve energy challenges and provide energy….energy is vital to our world
Your professional development is in your hands – pursue excellence
You have chosen a noble career

21. QUESTIONS?