Energy/Oil & Gas ER still viable?

Currently debating on whether or not to take an offer for an associate seat for Oil & Gas ER. Reading about the banking side of things a lot of people seem bearish about the future of the industry, but I've gotten more optimistic takes from people I know on the credit side. Personally I am not incredibly interested in Energy but have been looking to move on from my current role into sell-side ER, is Energy esoteric enough where after ~2 years it would be hard to lateral to a different space even if its within Industrials/Materials?

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Comments (8)

  • Analyst 2 in AM - FI
Apr 13, 2021 - 11:36am

Sure, dont know everything about the space but happy to help.

  • Analyst 1 in S&T - Comm
Apr 13, 2021 - 7:49pm

People have been predicting peak demand for oil for decades... current realistic projections say ~15 years, and after that it won't drop to zero immediately... natural gas will act as the bridge between oil -> renewables

O&G won't have growth like renewables or tech, but it certainly isn't a dead industry in the time of your career

  • Managing Director in S&T - Other
Apr 13, 2021 - 10:02pm

If you are not interested in Energy I would stay away unless the comp look too good. Research is one of the harder hit areas in O&G same with as aforementioned the great PE exits of old. The other issue is that "modeling in Energy" is different than modeling in other industries and valuation skills differ I beleive.

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  • Managing Director in S&T - Other
Apr 14, 2021 - 8:50am

OP said they are not interested in Energy in general. Sure you can pivot since all energy has the same "macro trends". But when it comes to technical skills/valuation, figuring out the IP, lifecycle of shale well which is a finite resource is much different than valuing a hydro storage facility or solar farm. This is why most of the new combined bank renewables groups come from industrials.  

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