Why Energy Investment Banking?

Im a sophomore who will probably be applying to energy investment banks. Why O&G/Energy is a common question for energy investment banking. I was wondering for those who are currently working in Energy IB or have in the past, what did you say to answer Why Energy and why did you go into energy IB? What are your thoughts into the space?

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Comments (15)

  • Analyst 1 in IB - Cov
Oct 24, 2020 - 10:55pm

Are you applying in Houston? Because it's a pretty Texas-centric world out here where most people went to Texas schools, so I think a lot of people at Houston banks didn't think "why energy," they rather wanted to do IB and coming from Texas schools, their best shot was in Houston which by default means energy. If you have local ties to the area, I don't think there's anything wrong with making that your focus, and also saying you find energy interesting as well. That's essentially what I did.

  • Intern in IB-M&A
Oct 24, 2020 - 11:00pm

Are you an analyst in Houston right now? I am an incoming SA at a bank in Houston and would love to have a convo. any way I can dm you?

  • Intern in IB-M&A
Oct 24, 2020 - 11:03pm

agree with the comment above, my class doesn't have any students from a non-texas school and showing any sort of a connection is huge in Houston recruiting.

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  • Intern in IB-M&A
Oct 24, 2020 - 11:30pm

That's probably the biggest thing you can say. Some targets have special programs and clubs for energy IB so make sure you are in them cuz the first set of people you'll be compared to will be your peers for OCR and if they are in the programs and you aren't, then that's a red-flag imo. Also, try to get internships related to O&G

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  • Intern in IB-M&A
Oct 24, 2020 - 11:09pm

Energy IB focuses on real assets, as compared to something like tech where you're constantly valuing companies based on the unknown. It's because of this that energy investment bankers brag about the deeply technical skillsets they get when working in O&G IB.

Other things you can talk about: O&G is heavily influenced by the sociopolitical landscape, and that's something which fascinates you. You have ties to Houston and would love to stay there. It's the backbone of America since everything uses oil, and you've always been interested in working in the industry. You have family members that work in O&G and you've always enjoyed learning about it. It's one of the largest industries in the world, and the rapid change that's being brought on by environmental concerns has been leading to a large amount of consolidation, meaning that M&A work will be booming throughout your career. 

I thought I wanted to go into O&G IB but decided that it wasn't my cup of tea. I'd highly recommend you branch out if it isn't your first choice OP; if you aren't actually fascinated by energy then you'll hate your job. Now I'm heading to NY instead because I recognized that I'd land something in my city of choice as long as I had real reasons for wanting to be there. On the other hand, if it is your first choice, then all power to you.

  • Intern in IB-M&A
Oct 24, 2020 - 11:13pm

All good advice until now. Something you should keep in mind is that you are more than likely going to be asked about why you want to enter a coverage (ie. energy) that is supposedly "dying/declining". I was asked about this multiple times.

  • Analyst 1 in IB - Cov
Oct 26, 2020 - 1:10am

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