I graduated from a non-target but a regionally relevant school (at least in the Energy business). I graduated with a decent gpa and was on the bottom end of the honors list. I luckily got a job in the Oil Industry at a supermajor oil company as a financial analyst (been working here 4 months now).
I basically do credit analysis here, I spread financials and see what risk there is in us doing business with a certain counterparty. This is a rotational program and I will be moved into another position after 18months or so. My next job could possibly be an accounting role which I would absolutely hate!
Ever since college I've been interested in ER but never took the right steps to secure an ER position right out of college. I'm taking the CFA lvl 1 in December, and I've decided to learn some modeling on my own.
The experience I'm getting here is great, because I feel I understand financial statements pretty well now. Also, after my first rotaton they'll put me in a 2-month Finance training program, where I'll learn everything I can possibly learn about the oil business. From what I've heard this program is very valued in the industry (Exxon, Shell, BP, etc.) but I'm not sure if it holds any value beyond the industry.
I really would appreciate anyones input on whether I can secure an ER position after 1.5yrs of experience here. Hopefully by then I'll have passed CFA lvl 1&2. Any input is greatly appreciated..
Thanks in advance.
I think finance (Oil Major), lets call it FOM vs. ER are very different.
While it is possible to cross over to say a oil & gas role, ultimately you need a better understanding of both roles to make a more informed decision.
For FOM, better work life balance, more specialist and a much clearer progression since most of the super majors have some what an induction program, training modules and an assessment check list to grade employees apart from just purely P&L. They even have things like peer grading, divisional expertise and perhaps even weight loss. Theres also a range of scopes like business development, strategic acquisitions, regional studies etc. So more real world learning and on the hands activity.
On the other hand, while banks do pay better, job scope is very different. ER at junior level is largely late night work, data crunching and collection, supporting the lead writer etc. You will probably take I dont know..3-5 years? before you can start to cover something. And do remember you are bounded to equities or credit. FOM experience is good but not a must have as the lead writer and team will guide you along. ER is also mainly a cost centre so you will get stable base with occasional pressure when the going gets tough.
A CFA will definitely help in securing ER, but more importantly you have to understand who you are competing against, mainly ER people, grads, buy side people etc.
I think you have to ask yourself the following: 1) Do you really want to go ER and how do you see yourself moving (Er is jr->assoc->vp (lead) -> head) after which you will most likely plateau or rotate other sectors. 2) Are you enjoying at FOM. Cos if you do, stay there. Perks are good, people are nice, work life balance, cushy progression. I can assure you, working dynamics of a bank can vastly differ from FOM.
Why don't you try go to to energy banking? I guess if you have a legitimate interest in ER then go for it, but your supermajor experience would be a great background for oil & gas i-banking.
@Superm - I understand you view and I truly appreciate your input. I do like the job, people are nice and the pay is pretty good considering I just graduated. The only problem is that it's not fast paced enough for me right now, I don't feel excited when I go to work. Eventually I want to work for a hedge fund and I know for a fact that the current career path I'm on will not take me there. From all the research I've done my best bet is to move into ER or IB, I prefer ER only because the work seems to be a little more meaningful compared to what junior analysts do at IB's. Please advise if you feel you can help me better understand what I need to do to reach my ultimate goal (hedge fund).
@porkbellies - I've always considered banking, but the school I went to was not known to attract many banks (although we did have some). Truthfully I wasn't even sure up until I read your post that my experience would be an advantage at an IB. Don't banks usually hire straight out of undergrad and grad? I've read in many places that the CFA doesn't really help for banking, is this true?
The benefit of a CFA for banking is marginal at best but a must for ER.
IB recruiting is rare outside the traditional entry points you mentioned (M&I has an article about it, check that out). Your experience is definitely an asset to have in nat res groups in ER and IB however, it is likely you'll need to network a ton or find some other way to catch the attention of the investment banks. I work in O&G ER and can tell you that there are tons of people with your profile that are trying to jump to finance.
If your goal is a hedge fund, look up the ER FAQ on this forum. IB and ER can both lead to hedge funds but to ones focusing on different strategies.
FLDP Oilfield Services looking to Transition to ER O&G (Originally Posted: 08/27/2015)
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Anything?
littleredman I'll add more details when I get off from work but I am also a "graduate" of a rotational program with an O&G company (I think we may work for the same one).
I think your resume is fine but I would change the way it "looks" and add more details about your rotations and accomplishments or special projects and minimize the activities section. Also it looks as if you quit the rotational program from the way you have the duration listed...be prepared to address that if that's the case.
Oil & Gas / Utility Operations to ER, Project Finance, or IBD??? (Originally Posted: 04/12/2015)
Good Afternoon,
I studied as a Finance major at a non-target, had few decent job prospects upon graduation, and unconventionally proceeded to become a Power Engineer / Field Operator in the Oil & Gas and Utilities sectors.
I expect to be a 2nd Class Power Engineer with the operational responsibilities of an Assistant Chief Engineer within 2 years time.
I am taking on management responsibility for the operation and commissioning of several thousand km of interconnected sweet and sour gas gathering systems and field dehydration and compression facilities, as well as sour and sweet gas plants with a combined licensed processing capacity exceeding 1 bcf/d (capacity will continue to be bolstered as infrastructure is brought online and improved upon).
The pay and lifestyle is alright in operations management, I work roughly half a year (7 days on and 7 days off) and get paid a little over $140,000, although that's after working a considerable amount of overtime.
However, pay and career prospects tend to plateau in just a matter of a few years for operations personnel; I don't see myself making much more than $200,000 a year in 2 years time, and I'll begin working a much more typical 9-5 Monday-Friday routine as I slowly progress between Chief Engineer and VP level opportunities.
I would like to eventually put myself back on a Finance track, and pursue opportunities in equity research, project finance or investment banking for the Oil & Gas or Utilities sector.
5 years out from now, at 29 years old, with 5 years of experience in Oil & Gas and Utility operations, do you think I may be able to obtain a CFA or MBA, rebrand myself and obtain a position in finance that's related to the Oil & Gas or Utilities sector?
I have enough time at work to study towards higher level certification in Power Engineering and should have enough time to begin the CFA program.
Could publishing my own equity research significantly help my chances of getting hired as an equity research associate?
Regards,
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