In the year 2017, Emma McConville was filled with elation when she secured a prestigious position as a geologist at Exxon Mobil. Assigned to an exhilarating venture—a colossal oil field off Guyana—she embraced the opportunity with fervor. However, as the pandemic wreaked havoc, causing a collapse in oil prices, her world was shattered when she received the devastating news of her layoff via a heart-wrenching video call. Ms. McConville vividly recalls the moment when her consciousness faded, overwhelmed by the weight of despair.
Yet, her desolation was short-lived, for destiny had other plans. Merely four months later, a beacon of hope emerged in the form of Fervo—a young and visionary Houston-based company dedicated to harnessing the power of geothermal energy from beneath the Earth's surface. Embracing this transformative opportunity, Emma now spearheads the design of two groundbreaking Fervo projects in Nevada and Utah, all while enjoying a more substantial income than she had ever imagined at Exxon.
"Covid allowed me to pivot," she declares with resolute determination. "It served as a catalyst for renewable energy, not only for myself but also for countless colleagues who found new paths in its wake."
Throughout 2020, the oil and gas industry witnessed the grim reality of laying off approximately 160,000 workers. Bound by strict budgets and cautious hiring practices over the past two years, these companies faced turbulent times. Yet, in a twist of fate, the renewable energy sector experienced rapid expansion once the initial shock of the pandemic subsided. Geologists, engineers, and skilled professionals previously employed by industry giants like Exxon and Chevron found solace in the arms of these renewable enterprises. Among Fervo's 38 employees, an astounding half hail from the fossil fuel domain, having once served BP, Hess, Chesapeake Energy, and their counterparts.
Executives and workers in energy hubs such as Houston and Dallas bear witness to the steady migration of talents from fossil fuel to renewable energy jobs. While such shifts may prove challenging to track in employment statistics, the overall trend suggests that these career transitions are growing increasingly common. Although employment in oil, gas, and coal remains below pre-pandemic levels, the number of jobs in the renewable energy sector—spanning solar, wind, geothermal, and battery enterprises—steadily ascends.
Compared to six years ago, the oil and gas industry has witnessed a staggering decline of over 20 percent, resulting in nearly 700,000 fewer workers. This decline can be attributed to the slowdown in shale drilling and the emergence of greater automation. In stark contrast, the wind energy sector experienced remarkable growth of almost 20 percent between 2016 and 2021, offering gainful employment to over 113,000 individuals.
During numerous interviews, energy workers and executives alike have expressed their motivations for transitioning to the realm of renewable energy. Many believed that the oil and gas industry's glory days had become a thing of the past. Others grew weary of the unpredictable rollercoaster of oil and gas prices, accompanied by waves of rapid hiring followed by heart-wrenching layoffs. Climate change, predominantly caused by the burning of fossil fuels, also emerged as a significant factor influencing their decisions.
Jean Paul Beebe, a former negotiator of land leases for oil and gas corporations, found himself facing a layoff early in the pandemic. Today, he has discovered new purpose as an employee of Enel North America, a renewable project developer under Italian ownership. While the shale drilling boom once bestowed financial prosperity upon him, the toll of downturns weighed heavily on his soul.
"Riding that wave takes an immense toll, both mentally and emotionally," confides Mr. Beebe. "In comparison, what I have come to learn about renewables has revealed an unparalleled stability."
For many workers, including electricians, offshore construction engineers, information technology specialists, and environmental surveyors, their honed skills from the oil and gas industry seamlessly translate into their current roles. "The fundamentals remain unchanged," asserts Miguel Febres, a petroleum engineer who spent 19 years in the oil industry but now devotes his expertise to planning wind and solar projects at Enel. "We lay foundations, erect turbines, construct roads, and lay cables—it's a familiar tapestry woven into a new narrative."
The Greater Houston Partnership, an ardent advocate for businesses within a city deeply entrenched in oil and gas, has taken a proactive approach to attract renewable energy enterprises to the region. A recent study conducted by McKinsey & Company on behalf of the organization reveals a disheartening reality: between 2014 and 2020, the Houston area suffered a 26 percent reduction in oil exploration, production, and pipeline jobs, equating to a loss of 125,000 positions. Warnings echo within the study, cautioning that traditional energy jobs may face further erosion over the next three decades.
"The workforce of the future will bear a stark contrast to the present," reflects Jane Stricker, Senior Vice President for Energy Transition at the Greater Houston organization, who formerly held an executive position at BP. She highlights the influx of dozens of startups that have either opened or relocated to Houston since 2020, some boasting impressive teams of up to 50 employees.
Jane continues, her words brimming with hope and conviction, "Covid birthed a plethora of opportunities. The prevailing belief in the unprofitability of oil and gas investments deterred many. Yet, a multitude of investors eagerly sought new prospects, offering renewed vitality to the renewable energy domain."
Executives within the renewable sector based in Houston rejoice in the advantages their location affords them. Tim Latimer, CEO of Fervo, the pioneering geothermal company, reveals, "Whenever we advertise positions such as geologists, drilling engineers, or geophysicists, we are inundated with applications from candidates representing every oil company imaginable."
Oil and gas executives remain steadfast in their belief that their industry still holds many fruitful years of employment and continues to serve a vital purpose. Scott Sheffield, Chief Executive of Pioneer Natural Resources—an influential Texas oil and gas producer—proudly asserts, "We must acknowledge that we have provided the nation and our international partners with energy security, while affording our citizens a stable and affordable source of power." Such profound dedication renders the industry an attractive professional pursuit.
Trent Latshaw, Chief Executive of Latshaw Drilling, overseeing operations in Oklahoma and Texas, dismisses the notion of oil and gas jobs fading into oblivion. He firmly states, "Many have been misled into thinking that oil and gas are on the brink of extinction. The sheer magnitude of the industry outweighs renewables by an immense margin and will continue to do so for the foreseeable future."
Nonetheless, Mr. Latshaw concedes that the rise of renewables cannot be ignored—an acknowledgment of their growing significance.
Sunnova Energy, a prominent solar and battery provider headquartered in Houston, has witnessed remarkable expansion, increasing its workforce from 350 employees in March 2020 to an impressive 1,400. Last year alone, Sunnova doubled the size of its Houston office space, with its information technology team experiencing exponential growth, expanding from approximately 70 members to around 200 in just two years.
"There is a myriad of individuals transitioning from oil and gas, each embracing the change with open arms," reveals Anthony Cervantes, Director of Information Technology, who spearheads job interviews at Sunnova.
Mr. Cervantes himself ventured into the renewable realm two years ago after a career as an oil company consultant. He discovered newfound contentment in his current role, fuelled by his concerns about climate change. He professes, "Having a purpose in one's work is truly gratifying."
While some lawmakers and union officials express concerns that the transition to green energy might adversely impact workers, citing higher wages and stronger union representation in the oil, gas, and coal sectors, renewable energy executives argue that such comparisons fail to capture the whole picture. They emphasize the stability and unwavering employment opportunities offered by the renewable industry.
John Berger, CEO of Sunnova, proudly attests to the rapid wage growth within his company. He affirms, "Over the past 12 to 18 months, the pay rates we offer our service technicians have surged significantly. Therefore, any pay disparity that may have existed has either diminished or is swiftly disappearing."
Workers who have defected from oil and gas companies express their frustrations with their former employers' sluggish embrace of clean energy. Sam Johnson, a 30-year-old mechanical engineering graduate from the University of Texas at Austin, entered the industry with a fervent passion for renewable energy, but his tenure at Shell—where he researched large-scale renewable projects and electricity sales—left him increasingly disillusioned.
"I initially held hope that oil companies would transform their business models," he reflects. "Most industry players acknowledged that a day would come when the demand for oil and gas would dwindle, compelling us to seek alternative solutions."
However, Mr. Johnson's optimism waned as he observed oil companies allocating only a minuscule fraction of their revenue to clean energy research. The advent of Covid and the subsequent plunge in oil prices further stifled funding for his research. Isolated in his home office, he watched as colleague after colleague resigned, lured by opportunities in the renewable sector.
Most disheartening was the lens through which Shell executives viewed his projects, strictly prioritizing high returns on investment. "Every project had to yield significant profits," he explains. "But electricity, unlike oil or gas, is not as lucrative a commodity."
Curtis Smith, a spokesman for Shell, defends the company's commitment to investing in lower-carbon energy, stating that they continuously scrutinize their strategies to contribute to a balanced energy transition while maximizing shareholder value.
Over time, Mr. Johnson's disillusionment deepened. When his supervisor departed Shell for a startup, the writing on the wall became evident. That very same manager soon extended an enticing offer to Mr. Johnson—an opportunity to become a Senior Service Architect at GreenStruxure, an organization dedicated to helping businesses reduce their greenhouse gas emissions. Today, he employs his skills to develop models demonstrating how companies can achieve cost savings by adopting solar panels and batteries.
Sam still appreciates the experiences and connections he made during his tenure at Shell, acknowledging the invaluable lessons gained. However, he admits, "I would entertain the idea of returning to Shell, but only if I were convinced that I could make a tangible impact."
