WPC/BCG Study on Untapped Reserves - Promoting Gender Balance in Oil and Gas

Promoting Gender Diversity
in World Oil & Gas 2018, London
February 20, 2018

18-02 WPC-BCG Gender Report 1
Copyright©2017byTheBostonConsultingGroup,Inc.Allrightsreserved.
The Oil & Gas industry needs more talent
Women represent the Untapped Reserves of talent the industry needs
Need for talent to face challenges
Game-changing
technology (robotics &
artificial intelligence)
Investments needed to
compensate for the
declining of existing fields
Need to fill crew vacancies
~350k workers laid off
during downturn
Aged current workforce –
2/3 are over 50 years old

60% 55% 43% 39% 33% 33% 28% 22% 11%
Percentage of women across industries
Health
& social
work
Edu-
cation
Restaurants
& hotels Finance
Agri-
culture
Manu-
facturing
Public
sector Oil & Gas
Con-
struction
Oil & Gas, among the industries with smallest share of women
Source: WPC & BCG; company data

Gender balance is important in Oil & Gas
Risk of becoming a vicious cycle in which it is
gradually more difficult to recruit women in the industry
Lacking gender
diversity damages the
industry's reputation
among women as a
career choice
Bad reputation
Companies miss out on
superb teamwork,
diversity of perspectives
and creativity in
problem-solving
Lower quality work
Many talented women
either never join the
industry or drop out
prematurely
Smaller talent pool
✗ ✗

WPC & BCG created a global baseline for the industry
Surveys
• Survey of 2,000
industry
professionals
• 65 countries
represented
Quantitative data
• Primary data from
38 companies
• $2T in combined
revenues
• 25-30% of industry's
global workforce
Personal interviews
• 60+ individual
interviews with
senior male and
female industry
executives

BCG-WCP London Feb 2018.pptx 5
4 key findings in the Untapped Reserves report
The underrepresentation of women is consistent across different
geographies and types of companies
• Especially acute underrepresentation in Technical & field roles
The percentage of women in the workforce worsens at more
seniors levels
• And they rarely reach the top of organizations
There are major gaps between men and women in terms of
perception of the challenges
The perceived commitment of CEOs to gender issues is the most
relevant factor in determining its importance in organizations
✓
✓
✓
✓

13
11
161517
2422
36
50
47
0
20
40
60%
Entry level
- other
Entry
level -
graduates
Mid-
career
level
Senior
level
Executive
level
Underrepresentation of women worsens at more senior levels
Consistent
underrepresentation
More acute in technical
& field roles…
• …often considered a
prerequisite to advance
Most significant decrease
at the midcareer level
Technical & field roles Business & office support roles
Share of women in each career stage & type of role

If CEOs commit to gender balance, organizations will follow
"How important is gender diversity to your CEO?" (male
responses only)
"How important is
gender diversity
to you?"
(men only)
100
80
60
40
20
0
Very unimportant
or Unimportant
Neutral
Very important
or Important
(%)
Very UnimportantVery important
86
34

WPC & BCG analyzed the challenges in each career stage
Strengthening the
inflow of women
Maintaining
enthusiasm
among women
Increasing women's
representation at the
top of organizations
Entry Level Midcareer Senior Leadership

Entry Level – Reasons why not enough women join industry
Limited presence
of women in STEM programs Industry's Image Problem
Women in STEM programs, by region
North
America
21%
South &
Central America
31%
Europe
24%
Middle East
39%
Africa
26%
Asia
24%
Oceania
21%
Note: STEM = science, technology, engineering and mathematics.
Source: UNESCO; Organization for Economic Cooperation and Development; Eurostat.
"No women make it to
the top"
"Oil & Gas is a male-
dominated industry"
"Not an environmentally
friendly industry"
"Dirty & physically
demanding job"
Women make up 54% of post-secondary
students, but only 27% in STEM programs which
provide training in technical areas
1 2

The industry's voice – Problems at Entry Level
The industry is still considered by many women to be male
dominated, and there is a view that it has not yet made a conscious
decision to increase gender diversity
Male senior executive
If you Google the Oil & Gas industry, you will find images of men in
dirty clothes and mud everywhere
Female senior executive
There is a perception of roughnecks, which is hard to change and
creates an unappealing image of the industry for women
Male senior executive

Actions to strengthen the inflow of women
• Promote STEM programs among girls and young women, and offer scholarships
and internships to high-potential women
• Establish clear recruiting targets for women, and develop KPIs to attract and
retain them
• Consider out-of-the-box approaches to recruiting
• Promote the wide range of roles available in the industry (engineering, supply
chain ops., etc.)
• Foster greater flexibility in women's careers, especially in early stages
• Remove structural barriers that impede women from advancing in the workforce
• Develop a larger number of visible female role models at senior levels
Entry level Backup

Midcareer – Women start to lose steam at this critical level
Men
3 most critical reasons
for dissatisfaction
• Lack of awareness &
access to opportunities
• Lack of sponsorship
• Challenge of balancing
career and family
"How satisfied are you with your career progression?"
3.5
2.5
4.0
3.0
>20 years
3.7
2.9
3.0
<1 year
3.0
3.4
10-20
years
3.3
2.9
Level of satisfaction
(0 low; 5 high)
5-10
years
3.3
2.8
3-5 years
3.2
3.4
2.8
1-3 years
Women

Midcareer – Sponsorship considered a key factor by women
21
45
26
24
26
15
12
7
15
9
%
MenWomen
Very important Important Neutral Very unimportantUnimportant
"To get promoted to senior management, how important is
having senior-level sponsors?"

The industry's voice – Problems at Midcareer level
Sometimes a male colleague, in discussing a woman under
consideration, will say, "She just had a baby, she won't want to
make the move that this position demands". To which I'll respond,
"Have you asked her?" The answer, typically, is no
Senior female leader
You'll hear "Nobody knows you" – which is code for "You are not
part of the club and I am not willing to take on the risk of
sponsorship for you"
Female executive
If a father leaves work early to bring his son to soccer practice, he
is seen as a good dad. If a woman does that, people can say she
cannot cope with the combination of family and job
Female executive

Actions to maintain enthusiasm among women
Midcareer
• Ensure that woman are aware of opportunities and offered the same ones as
men
• Encourage women to make their careers goals clear
• Create more flexible career paths
• Develop separate and sufficient facilities for women working in field roles
• Insist that executives and seniors take talented women under their wing
• Develop policies and services to make the industry more accommodating, and
encourage policies that promote a better work-life balance
• Give women influential roles in developing those policies
• Consider instituting job sharing, specifically when possible
• Make policies that support gender balance (bias awareness, mandatory
training, etc.)
Backup

Senior Leadership – Different views on women representation
0%
10%
20%
30%
40%
50%
60%
Less support
Overlooked
Not
confident
Not in
promotion
mix
Not enough
qualified women
Not flexible enough
Not enough
time in position
Don't want
senior
leadership
None
Women
Men
"Why do you think women are underrepresented in senior ranks?"

Senior Leadership – However, women show more flexibility
3.3
...interrupt your career to take care of your children 3.0
3.3
...move with your significant other if he/she were transferred 3.5
3.6
...have your significant other relocate with you if you were transfered 3.3
3.6
...spend time or money to gain additional qualifications 3.3
3.7
...take a lower-paying job to gain experience 2.7
2.8
...take an assignment if you had only 60% of the qualifications 3.2
...take an assignment in another country 3.6
3.7
...take an assignment in a different functional area 3.6
3.9
...adjust your behavior to accommodate different situations? 3.9
4.1
"How likely would you be to...?"
(1 very unlikely; 5 very likely)
Women Men

The industry's voice – Problems at Senior Leadership level
It is often difficult for a woman to build the same relationships as a
man could. It requires going golfing, drinking Scotch, or talking
football. If you don't like hunting or fishing trips, you're at a
disadvantage
Female executive
Women tend to underplay their skill set. They need to be
encouraged to be more confident and assertive. Lack of confidence
among women leads them to shy away from taking responsibility
Female executive
The industry needs to do more to promote women, certainly. But
this should not come at a cost of unfair discrimination against men.
Ultimately, the best person for the job should get it. The bar should
be raised to boost equality, not lowered
Male executive

Actions to increase women's representation at the top
Senior Leadership
• Provide women with stretch goals and the support needed to achieve them
• Talk shop with women to ensure a better understanding of hard leadership factors
• Broaden the criteria for inclusion in lists of high-potential candidates
• Apply uniform standards when making promotion decisions
• Ensure strong leadership and a visible commitment to gender balance from
the top of the organization, especially the CEO
• Adopt an inclusive, gender-neutral approach to advancement coupled with
quantitative targets that support growth in the representation of women
• Work to instill greater self-confidence among women
Backup

WPC & BCG developed recommendations for all levels
Entry Level Midcareer Senior Leadership
Keep MEASURING
PROGRESS in increasing
the share of women
at all levels
Broaden the range of
CAREER PATHS
from which executives
pick senior leaders
Boost
women's participation
in STEM PROGRAMS
Make the industry
more attractive as a
CAREER CHOICE
for women
Ensure that women have
the same CAREER
OPPORTUNITIES as men
Apply work-life balance
policies EQUALLY
ACROSS GENDERS

Greater gender balance is a worthwhile and attainable goal
The commitment from the leadership team makes the difference
It is important that senior leaders take talented women under
their wings
This journey will require perseverance and a lot of
communication
What gets measured gets done – tracking the KPIs is key
✓
✓
✓
✓

Find the full report at: www.world-petroleum.org/diversity
www.bcg.com/en-gb/publications/2017/energy-environment-people-organization-untapped-
reserves.aspx

WPC/BCG Study on Untapped Reserves - Promoting Gender Balance in Oil and Gas

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