University of Houston Bauer College GEMI

1
University of HoustonBauer College -- GEMI

• Building the Energy
• Workforce of the Future

Arthur L. Smith, CFA John S. Herold, Inc.
Chairman CEO November 3, 2005
2
Greater Houston Energy Education Collaborative
G.H.E.E.C.
3
Lets Place Today in Perspective

• Very Difficult 1998-99
• Strong Wellhead Prices for Oil Natural Gas
• Phobia of another Price Meltdown (2001)
• Malaise in Energy Convergence
• Profound Cynicism among Energy Investors
• Continuing Consolidation
• But many new Start-Ups
• Great Opportunities!

4
Headcount of the Top 25
5
(No Transcript)
6
(No Transcript)
7
The Occupational Handbookis Wrong about Oil Gas
8
Petroleum Extraction is NOTa Sunset Business
9
The Outlook is Bright

• DOL is extrapolating yesterdays job market in
  its current assessment that employment in the
  oil gas extraction industry is expected to
  decline 28 through the year 2012 . . . while
  overall employment will increase by 16.
• The petroleum sector real world today is very
  strong and likely to get even stronger

10
(No Transcript)
11
Big Oil -- Big Downsizers
12
JSH CoverageJanuary 1970
86 INDEPENDENT EP COMPANIES
13
JSH Coverage--January 1980
INDEPENDENT EP COMPANIES 45 Survivors
14
JSH Coverage 1990 2004
INDEPENDENT EP COMPANIES
Nov 2005 4 Survivors
Jan 1990 - 14 Survivors
Mesa Inc.
Amerada Hess
Amerada Hess
Equity Oil Gas
Noble Affiliates
Equity Oil Gas
Pennzoil
Forest Oil
Forest Oil
Ranger Oil

Home Oil
Reading Bates
Helmerich Payne
Imperial Oil
SONAT
Imperial Oil
Louisiana Land
Noble Energy
Wilshire Oil of Texas
15
OXYMORONSJSH Favorites
Great Depression
Jumbo Shrimp
Peacekeeper Missiles
OBSCENE PROFITS!
Friendly Fire
Working Vacation
Legally Drunk
Airline Food
Casual Sex
Microsoft Works
Marital Bliss
Tight Slacks
Synthetic Natural Gas
Military Intelligence
16
26 Members Growing
Greater Houston Energy Education Collaborative
G.H.E.E.C.

• Associations
• Society of Petroleum Engineers (SPE)
• Houston Geological Society (HGS)
• Independent Petroleum Association of America
  (IPAA)
• American Petroleum Institute (API)
• Women in Energy Network
• Houston-Galveston Area Council
• UH-GEMI Energy Students Association
• Texas Oil Gas Association
• State of Texas Industry Cluster/Energy
• Engineering Council of Houston

• Schools
• Texas AM
• San Jacinto College
• Rice University
• UH- Cullen College of Engineering
• UH- Global Energy Management Institute
• Environmental Institute of Houston (UH-Clear
  Lake)
• Houston Community College System (HCCS)
• HISD
• San Jacinto College
• Texas Southern University
• HUNSTEM

• Organizations
• INROADS
• Offshore Energy Center
• Junior Achievement
• Education Foundation of Harris County (EFHC)
• Watson Wyatt

17
G.H.E.E.C. Mission

• To RAISE AWARENESS and HEIGHTEN INVOLVEMENT of
  all students into energy-specific education
• To LEVERAGE ACTIVITIES of its key constituencies
  to have greater impact on achieving the
  fundamental mission
• To become the LEADING ENERGY EDUCATION COMMUNITY
  that leverages off Houstons energy know-how and
  is a role model for initiatives in other
  communities

18
(No Transcript)
19
If you are worried about the Graying of the Oil
Industry
20
Greater Houston Energy Education Collaborative
G.H.E.E.C.
21
(No Transcript)
22
Petroleum Engineering
Greater Houston Energy Education Collaborative
G.H.E.E.C.
Starting Salaries are Rising Sharply
2005 Graduates Engineering Business Geoscience
s
23
Leverage Strategy
Greater Houston Energy Education Collaborative
G.H.E.E.C.

• Consensus for a flexible, solution-driven
  collaborative that provides opportunities for
• NETWORKING and sharing
• LEVERAGE off each other
• Providing critical mass for organizations to
  INCREASE IMPACT and influence results (e.g.
  leveraged marketing)

24
3 Task Force Groups
Greater Houston Energy Education Collaborative
G.H.E.E.C.

• Content Capability Framework
• Marketing Promotion of Workforce Challenges and
  Solution-Oriented programs
• Policy Impact Educational Public Policy

25
Showcase Of the Programs
Greater Houston Energy Education Collaborative
G.H.E.E.C.

• Jeanne Perdue (Society of Petroleum Engineers)
• Brenda Wiser (American Petroleum Institute)
• Kristina Hardwick (Offshore Energy Center)
• Jennifer Anderson (Junior Achievement)

26
Greater Houston Energy Education Collaborative
G.H.E.E.C.
27
August 12-16th, 2005
28
August 26th, 2005
29
(No Transcript)