Energy Private Equity
I will be graduating this year with a chemical engineering degree. I will be accepting an offer from a major oil company working as a process engineer. My plan is to work as a engineer for 2-3 years then try to make the switch into energy private equity. Is it necessary to try and get into a T10 MBA program or is it possible to make the switch after just 2-3 years of work as a process engineer.
How do you guys feel about the trading positions at major oil companies? Do you think making the switch within the company in a couple years to a trading position will help make the transition into energy pe easier?
This transition is definitely possible, though the folks I know that have done it did it later in their careers (usually post MBA, as well). Thinking about it pragmatically, you will be competing for PE analyst/associate jobs with investment banking analysts and equity research analysts who spent 70+ hours a week for the past two years modeling out hydrocarbon resevoir lifetimes, asset sales, and M&A transactions. The value petroleum engineers bring to the buyside lies in their operational experience [i.e. how will a refinery shut-in affect production rates? How will commodity prices affect xxyy's profitability], industry familiarity, intelligence, and of course, connections. So, the question becomes: will your two years of experience in engineering outweigh that of an otherwise equal candidate with two years energy finance?
My personal opinion is that two years in engineering is probably not long enough. The petroleum engineers I know have been in the business a long time; there's a limitless amount of knowledge to take in. It is mildly difficult to imagine the limited partners placing more value on your experience than on your counterparts in finance, who already have 2+ years of directly relevant experience. Just my $0.02
Trading positions at major oil companies are very respectable--I think it's one of the coolest lines of work out there. But it will not make transitioning to energy PE easier as the skills do not overlap.
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