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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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.
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?
I go to a target in Texas, so yes I am. What would you recommend to say when they ask "why do you want to go into a dying industry"? Feel free to pm/dm.
Energy ain’t dying my guy just transforming. That’s what makes it interesting.
O&G will last longer than our careers, we haven’t even hit peak oil yet, much less traveled down the curve.
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.
I go to a target school in Texas. What other connection can I say in interviews besides that?
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
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.
Thanks for the advice! Can I pm/dm you if possible (or you can pm me since I'm not anonymous rn) as I have a quick follow-up question to that?
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.
Thanks for the advice!! I would love to PM you with follow up questions. Is that okay?
check your DMs haha, Already dm-ed you.
What did you say when asked that question? I'm not sure what I would reply to that. Feel free to pm/dm if not comfortable posting on here.
what was your answer to that?
Best thing to tell a bunch of O&G bankers is “what do you mean a dying industry, commodity prices are going to recover!” I know that people at my bank get hard at the thought (fantasy?) of that. Hell will freeze over before we see >$80/bbl oil again
Aged like milk
Lmaooo
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hell may freeze over before we get back to normal prices again.
Apply to renewable energy IB. It's valuing solar/wind assets and doing project finance for them but in a space that is quickly growing. High demand for renewable energy will go even higher if the Build Back Better act passes. Yeah in the near/medium term, O&G will stick around but renewables are the future
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I'm a bit biased but KBCM (KeyBanc) is one of the top shops in this space because they just merged KBCM's project finance team with Fifth Third's renewables M&A team. It's a large team spread across SF, NY, CLE, Chicago, and Boston, that does a ton of deals. Some other noteable names:
1. Marathon Capital
2. Nomura Greentech
3. MUFG
4. CohnReznick Capital
O&G has literally given the (first) world the lifestyle that we've all been accustomed to. It's shaped our world, started and ended wars, and built society. It's an extremely dynamic field with a ton to learn about. Personally, when I was interviewing I just said that I was interested in diving deeper into the resource that has allowed for such rapid advances in innovation, as well as wanting to position myself at the heart of the O&G industry in preparation for what could be one of the last super-cycles.
Also, have you seen the price of oil? Brent to the mooooon!
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