After finishing university or college most new grads usually start working in the oil and gas industry by joining either an operator or service company.
Both have their unique advantages and disadvantages.
What Service Companies Do?
Service companies provide a specific service or equipment for the oil and gas industry.
These companies vary in size and might have different lines of products that they offer.
Smaller companies might be just focusing on one product line like for example wireline, coiled tubing, or fracturing.
Bigger companies might provide all these services.
Examples of large service companies:
- Schlumberger
- Weatherford
- Halliburton
- Baker Hughes
- FMC Technologies
What Operators Do?
Operators or Exploration & Production (E & P) companies are usually the ones that hire service companies to drill, complete, and maintain the wells for them.
E&P companies are involved in finding the best locations to drill the wells, dealing with land acquisition, and are in control of all the operations on the lease.
Field locations usually have a company man or as he is sometimes called onsite representative (OSR) that works for the operator and is in charge of all the operations happening on location.
This includes dealing with the service companies and making sure that the operations go as planned while following all the guidelines and procedures coming from his main office.
Examples of large operators:
- Chevron
- Shell
- Suncor
- Ovintiv
- Petronas
Related: Working In the Oilfield | Requirements, Entry Level Jobs and Work Conditions
Advantages of Working for the Operators
Better pay
The salaries are usually higher in operators than in service companies.
In addition, there are usually better benefits such as more vacation time and bigger annual bonuses.
The retirement pension matching and severance are also higher when you work for the operator.
Better work-life balance
In addition to vacation time, schedules are usually more flexible when you are working for the operators.
Many office employees get every second Friday off.
Even field positions for large operators usually have better rotational schedules.
For example, some OSRs get two weeks on and two weeks off schedules.
More stable employment
The turnover rates are generally lower for operators versus service companies
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Advantages of Working for the Service Companies
Easier to get a job
Both GPA and experience requirements are relatively low.
However, many new grads often start working in the field as operators or field engineers.
Gaining more specialized knowledge
If you are working for a service company as an engineer, you will be doing a lot of in-depth engineering and will learn every detail of the service that your company provides.
Working for the operator usually involves doing a lot of project management instead of in-depth engineering.
More options to get overtime hours
Even though the pay is lower in service companies than in operators you can still make a lot of money by working overtime
Fast-paced environment
The decisions are made quicker in service companies.
This usually means that work is more exciting and often less paperwork is involved than in operators.
Easier to progress into a managerial role
Both because of the higher turnover rate and fast-paced environment, it is usually easier to get into a supervisory position while working for the service company.
If you have a degree, you will already have more advantages over someone who doesn’t have one and if you put some effort into learning your product and networking, it will be easy for you to move up the ladder.
Related: 6 Oil and Gas Cover Letter Examples for Fresh Graduates
How to Increase Your Chances of Getting a Job With an Operator?
Even though working for a service company has its own unique advantages, if you are like most new grads you probably prefer to start working for the operator because of the higher salaries and better work-life balance.
To increase your chances of landing a position with an operator right after graduation the three most important things you need to focus on are your grades, getting an internship or summer position, and networking.
Because of the higher demand, operators can be more choosy than service companies when it comes to the people they hire.
There is usually a minimum required grade average that you need to have even to apply for positions with operators.
You also should expect to have at least two or more interviews before you get a job.
I heard of people that had to go to 4-5 sequential interviews before they were hired.
Getting an internship with an operator is a great way to get to know the company, show off your skills and build connections with the people working there.
Most operators prefer to hire new grads that had internships with them because it allows them to assess your skills before hiring you for a full-time position.
It is much easier and cheaper to cancel an internship than let a full-time employee go.
In addition, since you already worked for the company, you will require less training.
Related: What is Wireline in Oil and Gas?
How to Transition from a Service Company to an Operator?
Most people that start working with service companies eventually try to transition to operators.
Even though operators like to hire fresh new grads from university so that they can train them from the very beginning, there are still some people that successfully get a job with operators after working for service companies.
Two main factors that can help you to move are your experience and the people you know.
One of the most productive ways to increase your chances of getting a job with an operator is by building connections with the people that already work there and can get your resume to the hiring manager.
The problem with just applying online is a large amount of competition and if you add to this AI software that many companies use to go through hundreds of resumes that they receive your chances are not that high.
That’s why you need to try to focus on building your professional network by getting to know your clients which might include engineers, company men, and superintendents.
You never know when the position with the operator might open up and one of your connections can recommend you.
In most companies, positions are usually advertised internally before they are posted online for everyone to see.
If you can be the first one who finds out about the position, you will have a much higher chance of landing a job.
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