"It’s the Economy, Stupid." Or Is It?

Abstract

What's Ahead - Editor Thomas Bruni assesses whether the oil industry is risky after all. Unlike the theme this issue suggests, there are strong indications that our sector is less of a "risky business" and more of a pot of gold, with minimal downside and a lot of rewards. Look at some recent financials:• In 2005, the top five international integrated oil and gas companies (by market capitalization) created wealth of approximately U.S. $100 billion (for perspective, this equates to the gross domestic product of countries such as the UAE, New Zealand, and Iraq).• Their profits rose in excess of 30% compared to 2004.• ExxonMobil set a new profit record for the New York stock market.• Shell did the same in the London stock market.• And the $60/bbl oil price is projected to keep floating above the U.S. $60 mark for 2007. The list of dazzling economic results could go on. The job market is also incredibly active. It is sufficient to shuffle through JPT to witness a job-offer bombardment, equally intensive from oil and gas as well as service companies. After all, young and well-prepared resources are vital not only to keep fueling the industry's outstanding results and growth, but also to guarantee a smooth "big crew change" when the baby boomers eventually retire—in other words, the outlook for YEPPs seems as bright as it can get. So, is this all there is to it? Has the oil industry, with its pioneering and polluting stereotype suddenly turned into a piece-of-cake enterprise?