Big Oil Has A Diversity Problem : NPR

Good profile of US oil patch and diversity. Assume similar in Canada but I welcome Canadian oil patch reader comment and insight:

Oil industry leaders say they want be more welcoming to women and minorities. Both groups are underrepresented across much of the oil industry, compared with the U.S. workforce as a whole.

One example is the category “oil and gas extraction,” where Bureau of Labor Statistics numbers show only 20.2 percent of workers are women, compared with 46.8 percent in the overall workforce. African-Americans make up only 6.2 percent in the same category, compared with 11.9 percent overall.

At oil companies, “for both women and for African-Americans, they tend to be among the worst performing in terms of both pay gaps and employment representation,” says sociologist Don Tomaskovic-Devey. He directs the Center for Employment Equity at the University of Massachusetts, Amherst and wrote a report about these federal labor statistics.

Tomaskovic-Devey says some firms probably do a better job than others. He says it’s difficult to know because those numbers aren’t available. “The key thing to understand is when diversity is a managerial priority, it happens,” he says.

The great crew change

A few people at the top of the oil business do want to make diversity a priority. One reason is something the industry calls “The Great Crew Change.” After the oil bust in the 1980s, a lot of companies stopped hiring. That has left the industry with an aging workforce that includes many who are headed toward retirement.

Winkel co-authored a 2016 American Petroleum Institute research report detailing how many women and minorities work in the oil and gas business now and how that could change in the future. It projects the industry needs to attract 1.9 million new workers by 2035 to make up for retirements and growth in the oil business.

“We know from the Census Bureau that we will be a majority-minority country by 2044 … Those changing demographics demand that we pay more attention to diversity than, perhaps, we have in the past,” says Winkel.

You can see evidence of the industry’s desire to at least appear as if it’s changing in advertisements for big oil companies. One from ExxonMobil shows a string of mostly women and minority workers wearing hard hats and holding signs that tout the benefits of the industry.

This ExxonMobil advertisement features a string of female and minority workers that are much more diverse than the oil industry’s actual workforce.
ExxonMobil YouTube
Chevron’s Twitter posts highlight the company’s commitment to diversity in its suppliers.

The company has made diversity and inclusion one of the core principles highlighted in its mission statement called “The Chevron Way.”

“Staffing our workforce for the future is a priority and we actually start focusing on our talent pipeline with kids as young as 5 years old,” says Rhonda Morris, vice president of human resources at Chevron.

Big oil companies like Chevron and ExxonMobil spend millions promoting science and math to children around the world — in part hoping that it will lead to a more diverse workforce. At colleges, those companies recruit women and minorities and then offer them mentors. And for existing employees, there are programs such as unconscious bias training.

Ray Dempsey, the chief diversity officer at BP America, says this is good for business. “There’s data that you can find from many, many sources that talk about how much difference a more diverse and a more inclusive workforce can make on your fundamental business outcomes.”

Dempsey says executives already embrace diversity. The focus these days is on middle managers where the hiring and firing happens.

But he says there are other things about the oil industry that are difficult to change, like where the oil or gas is located. Dempsey says it’s often in remote places, “versus the urban centers where minorities — communities of color — tend to be and, frankly, where people from those communities tend to want to live and to work.”

Dempsey says the industry needs to do more to make rural places welcoming to women and minorities.

via Big Oil Has A Diversity Problem : NPR