But the Industry Can Successfully Tackle the Challenges, Says New Research from the World Petroleum Council and BCG
ISTANBUL—Women account for a far smaller share of employees in the oil and gas industry—roughly one-fifth—than they do in most other industries. The oil and gas industry has a range of potential actions it can take to address the imbalance, according to a new report from the World Petroleum Council (WPC) and The Boston Consulting Group (BCG). The report, Untapped Reserves: Promoting Gender Balance in Oil and Gas, is being released today.
The report is based on proprietary research that included in-depth interviews with more than 60 male and female senior industry executives, a survey of approximately 2,000 male and female industry professionals, and primary quantitative data provided by major international and national oil companies that collectively account for $1.9 trillion in revenues and more than 25% of industry employment. The study examines gender balance at three stages of women's career development—entry level, midcareer, and senior management—and draws on different perspectives to provide new insights into the challenges that women and companies interested in advancing gender balance face at each stage. Critically, the report also provides pragmatic recommendations for how these challenges can be addressed.
"The oil and gas industry faces substantial challenges in the years ahead and will need to be able to attract and retain the best talent it can if it hopes to surmount them," said Katharina Rick, a BCG partner and coauthor of the report. "This means, necessarily, a greater focus on women, a segment the industry has long underemphasized. It is our hope that this report, by providing greater insight into the status quo and identifying a potential path forward for these companies, can help the industry succeed on this front."
The authors plan to update the report every three years in conjunction with the triennial World Petroleum Congress. This will provide the sector with information against which companies can benchmark their performance related to gender balance and monitor their progress in this area.
The report's key findings include the following:
The percentage of women in the industry's workforce drops over time and falls particularly sharply—from 25% to 17%—between the middle-management and senior-leadership career stages. This trend won't change unless CEOs make gender diversity a higher strategic priority.
Although men and women start out on an equal footing, women rarely reach the top of the organization. This isn't owing to a lack of ambition on the part of women. Rather, it is largely due to the fact that, among women who have spent many years in the industry, relatively few have been offered the technical and operating roles that their male colleagues have, positions that allow employees to accumulate the critical experiences necessary for advancement to senior management.
Unless oil and gas companies develop a critical mass of women across all types of roles, meaningful change in the industry's gender balance will not occur. Female employees work disproportionately in business support roles; they have a very limited presence in technical roles, which are often considered prerequisites for career advancement, and in upper management.
There are wide gaps in perception between men and women regarding the gender-related challenges that women face. The differences of opinion are particularly evident with regard to women's underrepresentation in the senior ranks. Fifty-seven percent of women surveyed said that female employees receive less support for advancement into senior positions than male employees; only 24% of men agreed. Fifty-six percent of women said that women are overlooked for senior positions; only 23% of men agreed.
The industry can take action in a variety of areas to increase the number of female employees and accelerate its progress toward greater gender balance. These include the following:
Greater gender balance is a worthwhile and attainable goal for the industry, and one that it has the means to achieve. Provided that leadership commitment, especially from CEOs, remains sufficiently strong, the industry could boost women's representation steadily and materially over time—and reap a host of benefits, including improved organizational performance, creativity, decision making, and morale.
"Support for gender balance at the top is critical," says Ivan Marten, a BCG senior partner and coauthor of the report. "Our study found that when men believe that the CEO considers gender diversity to be very unimportant, only 34% of them view it as important or very important. But when men believe that the CEO views the issue as very important, 86% of them likewise consider it important or very important. In the end, a commitment to gender balance needs to be part of the corporate strategy—and that commitment needs to be clearly communicated by the CEO."
A copy of the report can be downloaded here.
The World Petroleum Council was established in 1933 and provides a forum for discussion of the issues facing the oil and gas industry worldwide. It is a non-advocacy, non-political organization, dedicated to the application of scientific advances in the oil and gas industries, technology transfer, and the sustainable use of the world's petroleum resources for the benefit of all. The WPC is registered as a charity in the UK. Its nearly 70 member countries represent 96% of the world's oil and gas production and consumption. The triennial World Petroleum Congress, also known as "the Olympics of the oil and gas sector," is the oil and gas industry's largest and most prestigious international event. For more information, please visit http://www.world-petroleum.org/.
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with more than 90 offices in 50 countries.