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Career options in the Upstream Sector: Exploration and Production (E&P) Industry
By Careerizma on April 18, 2017 Categories Tags

This is a guest post by Chandan Kumar Pathak, a Petroleum Engineering Graduate from Indian
School of Mines, Dhanbad (now IIT Dhanbad); 1986 batch. He has spent more than 30 years in
the E&P sector having worked in India and abroad. Currently, he is the Global Account Director
of Weatherford International.

Jobs and Careers in the Upstream Sector (E&P Industry)

by Chandan Kumar Pathak

I would like to start with a small story about me leading to a career in E&P Industry. But hey,
don’t brand me as a narcissistic yet. There is a purpose behind it.

How I became a Petroleum Engineer (not by choice)

I was born and raised in the scenic North East India, in the city of Guwahati in Assam. Mine was
an amazing childhood spent in the lap of unspoilt nature. The hills and the rivers, the rains and
the thunders and a soothing feeling from the greenery all around – they were my childhood
chums.

From my primary school days, I wanted to become a doctor and I was quite focused on it. I
dreamt of going to the poor villages and treat the needy – sounds a bit idealistic but that is what I
had seriously dreamt of. During my higher secondary education in New Delhi, I had even
resisted my father a lot who wanted me to become an engineer – his own unfulfilled dream.
Subsequently, he gave in to my wish but queer fate had other plans.

Before the board examination, I fell seriously ill and was bed ridden for several weeks due to
which I could not apply for any of the medical entrance examinations. Caught in the dilemma
whether to wait for one year to apply and then qualify in the medical entrance examination or
not, an opportunity knocked on my door.

Due to my good score in the HSC examination, I had qualified to get admission in the Petroleum
Engineering branch at Indian School of Mines (now IIT Dhanbad) as the Assam Government
nominee. The nominee was selected on the basis of highest PCM % (Physics, Chemistry and
Mathematics).

The elders from our family advised that it was a much better choice rather than waiting one more
year to appear for the medical entrance examination as there was a risk involved –what if I
would not get admission in a reputed medical college?But I knew nothing about Petroleum
Engineering and my sole dream always was to become a doctor. But I saw the sense in the
advice and with a heavy heart, I decided to join the course.

Before that, I tried to gather some basic information about the course which was tough because
‘Google’ did not exist. All I could learn was – after doing this course one was 100% certain to
get a job in Oil & Natural Gas Corporation Ltd. (ONGC), a government organisation.

After four fun-filled years in ISM, I became a graduate Petroleum Engineer passing the course
with distinction. Thus, my case was not a well-planned career-oriented education but a curious
turn of events led me to abandon my childhood dream and move on a path laid out by destiny.

There was an important learning for me which I strongly believe and try to follow.

Few things in our lives are destined to happen irrespective of whether we wish them or not. So
when we stand at such crossroads, we should follow the guided path, not resist. End results are
always going to be good in some way or other.

My Career
Thirty long and eventful years so far. Started off with ONGC, worked for 9-1/2 years. Monotony
tortured me so I moved to Reliance seeking bigger challenges. Money lured me after a while, so
I went international with Baker Hughes. 13 enjoyable years in Singapore, Myanmar, India &
Bangladesh. Gradually climbed to the position of Director-Operations in South West Asia geo-
market.

With a reasonable bank balance, a massive load of stress and an ever increasing blood pressure I
developed the much-dreaded mid-career syndrome. I quit and went on a semi-sabbatical, part-
time consulting and the rest of time either roamed in the Himalayas encountering near-death
experiences or did some social work through my NGO to promote rural education.

After 2-1/2 years I had rejuvenated fully and also had two important realisations,(1)contrary to
my earlier belief, my bank balance was not a sufficient insurance for the rest of my life and the
responsibilities (2) too much of free time also creates stress.

So I jumped back into the rat race, it has been 4 years since then and I am still going strong. Life
taught me another serious lesson – it is important to remain engaged with life rather than give up
meekly and run away.

(However, now I am taking care of a child who I had totally neglected earlier. Sounds eerie? Not
really. If curious to know what I mean, click here.)

What is this E&P Sector:

The American Petroleum Institute (API) divides the petroleum industry into five sectors:
Upstream (exploration, development and production of crude oil and natural gas)
Downstream (oil tankers, refiners, retailers and consumers)
Pipeline
Marine
Service and supply

Here we will discuss primarily the Upstream sector or commonly known as the E&P sector
(Exploration & Production Sector) where I have been engaged. This sector is all about the search
for elusive crude oil and natural gas which lie trapped miles beneath the earth surface. Once
found, wells are drilled to produce these oil and gas together called hydrocarbon, to the surface
and then processed to delivery or sell to the downstream sector for refining.

E&P sector is quite heavy equipment intensive with lots of high-end technology applications as
well. The operations are challenging, physically demanding in certain aspects and generally in
difficult areas like the deep sea or the remote jungles. There is some amount of hereditary
glamour and machoism associated with the E&P sector due to these factors.

There are two categories of companies in this sector – E&P Companies and Service Providers.
The E&P companies are primarily the owner of the oil fields where they invest money and
technologies in exploring and producing oil and gas. The service providers are the specialists
which developexpertise in engineering, technologies and products that are required by the E&P
companies for drilling and producing. Thus both are interdependent.

Reputed global E&P companies: Shell, BP, ExxonMobil, Roseneft, Gazprom etc.

Reputed Indian E&P Companies: ONGC, Oil India, GSPC, Reliance Industries, Cairn India

Reputed global Service Providers: Schlumberger, Halliburton, Baker Hughes, Weatherford –

together known as the ‘Big Four’.

A general organisation structure is very similar to other industries in terms of support services
like HR, Finance etc. However, the core department i.e. Operations is specific to oil field
operations. In fact, this is where the organisation structures of an E&P Company and a Service
Provider also defer.

Typical Organization Chart of an E&P Company

Typical Organization Chart of a Service Provider

I am sure you are curious to know how oil and gas buried and stored thousands of feet beneath
the surface of the earth are located by oilfield experts. This is where the geoscientist has his
major role. Watch this easy to understand & interesting video

After such oil and gas reserves are located, it is time for the drilling team to drill wells to get
these ready to produce oil and gas. Here is good video which gives an overview and the history
of oil well drilling.

Once the wells are drilled, these are handed over to the production engineers who produce from
these wells for 10-15 years at a stretch through a maze of pipelines, production facility,
monstrous offshore oil tankers etc. Interested in learning how life is for an engineer in an
offshore process platform? Watch this video.

This is where the activity of the Upstream or E&P sector gets over. The crude oil and natural gas
are handed over to the refineries at the delivery points as mentioned above. The Downstream
sector activates here and does all sort of refining activities to generate various by-products like
petrol, diesel, kerosene, LPG, naphtha etc. for the consumer market.

I hope am able to help you a peek into the Upstream or E&P Sector in a simplified way without
bantering with too many technical jargons. For those who are keen to learn more about this
industry, I shall encourage you to read and watch more videos on the internet.

Career Options in the E&P Industry

This was one of the highest paying sectors globally till a decade and a half ago, thereby attracting
a huge amount of talents. Other sectors have caught up of late but it still retains an enviable
position in the top 15 worldwide.

Graduates from following engineering and science streams are commonly hired:

Petroleum, Mechanical, Electrical, Chemical, Petrochemical, IT, Computer etc.

Geology, Geophysics, Chemistry, Physics etc.
It is imperative for a young graduate to spend 8-10 years in the field to develop hands on
experience and expertise which help in increasing the market value. The ones who prefer the
comfort of office chair actually struggle with growth later on.

As regard to the jobs in support functions like Finance, HR, legal etc. they are same as other
industries.

Why the E&P sector is attractive

Attractive remunerations.
Hefty field bonus for days worked in the field.
Rotational assignment (28 days duty, 28 days paid off) or compensatory off days for field
engineers.
Glamour, machoism associated with the job profiles
Relatively easy to get an international assignment after garnering good experience in the
domestic market.

A roller coaster ride

But everything is not so rosy! Do expect a bumpy or should I say a roller coaster ride.

This industry is quite cyclic and the business yo-yo with the price of crude oil which again is
governed by the demand-supply equation and the global economy as well as the global politics.
Below is a graphical plot of crude oil price in USD for last 5 years.

One of the worst downturns in the history of this industry is being witnessed since mid-2014
when the oil price plummeted from more than USD 100 to a bottom of USD 29 per barrel. The
industry is still reeling under the impact and yet to commence a recovery which hopefully will
from the middle of 2017.

When the crude oil collapses, the profitability of the projects nosedives south. Result – shelving
of future activities, a drastic reduction in manpower and across the board reduction of cost.
Since mid-2014, many of the big companies have released 25-35% of their workforce. Such has
been the impact!

But once the turnaround takes place, then a complete frenzy catches up with everyone because
then there is a rush to fast track everything. So things start shooting up north in terms of the job
availability, good salary bargain in favour of the job seekers etc.

E&P Sector in India E&P Trends

India is currently the fastest growing economy in the world, therefore you can imagine the
demand for energy to fuel this crazy rate of growth. As far as energy consumption goes, it
already stands a high 5th position globally. But shockingly, we produce only 20% of our total oil
and gas requirement thus putting an excruciatingly painful burden on our exchequer having to
import 80% annually.

Interestingly, only 18-20% of the country’s total area (including offshore) have been explored for
hydrocarbon reserve so far. Since early 1990s the central governments have gradually opened up
this sector for foreign investment and implemented a slew of good measures.

Currently the major players are ONGC, Oil India, Reliance Industries, Cairn India, GSPC and
Shell India. There are several fringe players like Niko Resources, HOEC, BPRL, Geo Enpro etc.
We expect the bigger international operators to come to India in the near future as the
environment becomes more conducive for setting up business for them.

All the major international service providers like Schlumberger, Halliburton, Baker Hughes and
Weatherford have been operating in India for decades. Small local companies have also come up
but they have a long way to catch up with the big ones.

Considering the gaping distance between the demand and supply, the rapid growth of Indian
economy and the initiatives being taken by the governments to further open up this sector, E&P
industry in India has a very positive long-term outlook from employment perspective. Since it is
an aspiration of many engineering students from premier institutes, the competition is also
heating up rapidly with every major institute including the IITs are trying to woo the prospective
employers.

Closing Comments
E&P Industry is an exciting place to pursue a career. If you possess the basic attributes – hard
working, sincere, honest and smart, this space is worth taking a plunge into.

And now you may feel like asking me as to what my own experience has been? In one single
word – THRILLING!

References: YouTube, macrotrends.net

About the Author:

Chandan Kumar Pathak lives in Mumbai with his small family. Writing is his favourite pastime
and has authored two books – ‘The Beckoning of Gyanganj’ (fiction) and ‘Footprints’ (short
stories). The next, ‘A Leap into The Dark – for Love’ (fiction) is getting ready for publishing.
Chandan is also a wanderlust and an avid photographer – makes his solo trips to the Himalayas
or in the jungles or some remote villages in India. Check in his blogs and photographs at these
links: LinkedIn, Blog | Photographs

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35 Comments
Venkatesh Vadari says:
April 18, 2017 at 11:51 am
Chandan,
It’s really inspiring !! A very clear picture for those who aspire E&P as career.
Loved reading it. Please do call me in your next rome around trip to the Himalayas. Eager to join
to explore the best of the beauty the mother nature !!

Reply
Chandan K. Pathak says:
April 18, 2017 at 4:48 pm
Thanks for liking it Venkatesh.

Reply
Bitun says:
April 18, 2017 at 5:40 pm
Good stuff. Where can one learn about post MBA roles are companies like Shell, Exxon,
Schlum, Haliburton? And other energy investment management firms?

Reply
Chandan K. Pathak says:
April 18, 2017 at 9:07 pm
Hi,
The upstream sector does have good opportunities for MBA post graduates in the sales,
marketing, finance, HR departments depending upon which stream of MBA one has the
qualification. If one has an engineering degree and/or some early experience in the operations of
Upstream sector, that becomes an added advantage.
I would suggest you visit the job opportunity sites of these individual companies to learn more.
Hope this helps.

Reply
Ashish Samant says:
April 18, 2017 at 10:36 pm
My son is presently studying at IIT/ISM Dhanbad 3rd year of the 5 years integrated M.Tech
course. I highly appreciate your article on upstream as well as the sub article of the child in us.
Very well written, want to read ur other 2 books too. Happy to meet you sometime in mumbai.
ASHISH SAMANT [personal details edited out].

Reply
Chandan K. Pathak says:
April 18, 2017 at 11:00 pm
Dear Mr Samant,
Thank you for your encouraging comments on the article. I am sure that by the time your son
completes his course, the upstream sector will be steaming ahead in full force – once again. Let’s
hope our paths cross someday. You can connect with me on Linkedin if you desire. If the sub-
article on the child (which is very close to my heart) interested you, you may like to subscribe to
my blog (the link is provided below the article) for future ones. Your valuable feedback is
always welcome.

Reply
Shabbir Hossain says:
April 19, 2017 at 9:17 am
Chandan- I am 1980 ISM graduate from Bangladesh. Very well written. I am currently with
Chevron Bangladesh. Hope our paths will cross someday.
Thanks,
Shabbir Hossain

Reply
Chandan K. Pathak says:
April 19, 2017 at 10:13 am
Shabbir Sir,
Nice to communicate with you. Thanks for your kind words. I am sure we will get an
opportunity to meet in the near future.
Regards,
Chandan

Reply
Ramesh Mahindra says:
April 19, 2017 at 12:59 pm
Very good article on subject matter. Help new comers and encourage them to take up career in
upstream E and P sector.

Reply
Chandan K. Pathak says:
April 19, 2017 at 2:48 pm
Thanks you Mahindra ji, for liking it. We need to guide and encourage the young professionals
as much as possible.

Reply
Ramesh Mahindra says:
April 19, 2017 at 1:01 pm
Good one.

Reply
Mahesh Gapat says:
April 19, 2017 at 1:02 pm
chandan sir ,
Really awesome article written by you, so thankfully to you to share your kind and guidline path
words with us

Thanks with regards

Mahesh Gapat

Reply
Chandan K. Pathak says:
April 19, 2017 at 2:55 pm
Thank you, Mahesh, for liking it and finding it helpful.

Reply
Raveendra.chelika says:
April 19, 2017 at 2:11 pm
Sir
This lesson very helpful to everyone.I am very happy to read and understand the lesson..

Thanks
Raveendra.chelika

Reply
Chandan K. Pathak says:
April 19, 2017 at 2:55 pm
Thank you Raveendra.

Reply
Dr V K Rao says:
April 19, 2017 at 2:20 pm
hello Mr Pathak,
Your article is really inspiring and a sort of Guide for all those Young Petroleum Engineering
Graduates who are in a dilemma these days about the future of their careers. Like you , I too was
not knowing anything about Geology as a subject when I filled up my Graduation form. It is was
just that I wanted to study this “new” subject . And as you rightly said -we never know what
destiny has in store for us. I just decided to stay on in ONGC inspite of my getting selected in
GSI and also CGWB.
I keep telling the Graduates that Oil & Gas industry is bound to rebounce and history shows that
it has always had its volatality.
I congratulate and appreciate your writing skills . Please do send me all your thought provoking
writings. I loved them .Let us give the Younger generation the confidence they deserve.

Reply
Chandan K. Pathak says:
April 19, 2017 at 2:58 pm
Hello Dr.Rao,
Thank you for reading my article and sharing your own valuable thoughts. The upstream
industry is bound to bounce back and let’s hope it happens sooner than later. Resilience is the
key thing for the newcomers in such trying time.
You can read my blog if you find any other article interesting. Here is the link
http://chandanpathak.blogspot.in/
Have a great day ahead.

Reply
sriram says:
April 19, 2017 at 3:42 pm
The offshore is separate world that’s why i like that area. Here this article is not boring he has
wrote the article with his own personal life experiences so interesting good. I read fully.

Reply
Rohit Singh Negi says:
April 20, 2017 at 11:47 am
Upstream Industry superbly briefed for career oriented individuals. Also, inspiring for those who
are inclined to the idea of writing along with their “involuntary career”.

Reply
Yasmeen Hossain says:
April 22, 2017 at 10:28 pm
I really liked your personal life experience. Not only I found it unique but very motivating also
and could not agree with your life lesson about excessive free time and the stress caused by it.

Reply
Chandan K. Pathak says:
April 23, 2017 at 1:44 am
Hi Yasmeen,
Thank you for reading the post and for your encouraging comments.

Reply
Saeed Pathan says:
April 24, 2017 at 3:54 am
Hello Chandan
Well written article. My work history is pretty much similar to that of yours and there are a lot of
commonalities. Working in upstream oil sector has always been like riding a roller coaster and
one should always be ready with a Plan B. We should always inspire young professionals who
chose oil and gas as their career. My son is graduating is a couple of weeks with Petroleum
Engineering honors degree and I look forward for him to accept these challenges.
Regards
Saeed Pathan

Reply
Chandan K. Pathak says:
April 24, 2017 at 9:52 am
Hello Saeed,
Thanks for your note and for liking the article. All the best to your son for his future and I am
sure he will do quite well especially when his father is a veteran of the same industry who can
guide him.
Regards,
Chandan

Reply
Susheel Srivastav says:
April 24, 2017 at 11:05 am
Thanks Sir for sharing beautiful experience with us. Its always good to read our alumni
experiences. Hoping it would be inspiring to us as E & P professional. I am also Geo science
graduate from Ism Dhanbad and working with Great Eastern Energy.

Reply
Chandan K. Pathak says:
April 24, 2017 at 2:47 pm
Hi Susheel,
Nice to hear from you and happy that you liked the article. I hope the youngsters who are ready
to get into this sector do get some benefit out of it. Wishing you all the best.
Regards,
Chandan Pathak

Reply
Akshay says:
August 27, 2017 at 1:30 pm
Hello Chandan Sir,
A very interesting and motivating presentation of ideas and your personal life experiences in this
article.
I have personally met you during my college days in Conferences and Seminars along with my
colleagues in Mumbai and it was wonderful experience.
I also happen to read your book ‘Footprints’ , will be reading your other published books very
soon.
Keep inspiring as always!
Regards,
Akshay Jagtap

Reply
Chandan K. Pathak says:
August 31, 2017 at 8:33 pm
Hi Akshay,
Happy to know that you liked the article and found it useful.
I shall look forward to your feedback on my other published novels that you intend to read.
Regards,
CK Pathak
My Blog: https://chandanpathak.blogspot.in/

Reply
Gaurav Sethi says:
September 7, 2017 at 6:11 pm
Hi CK,

Really inspiring article. The candid way you have expressed your life history really teaches a lot.
I am wondering what you must have done during your Himalaya visit

Would really like to meet you again and listen about your roller coaster ride.

Thanks for penning it down.

Cheers!!!

Gaurav – GET
Reply
Chandan K. Pathak says:
October 13, 2017 at 3:41 pm
Hi Gaurav,
Thanks for your comment and happy that you liked the article. As regards to my Himalayan
sojourns will certainly share some anecdotes in person.
Regards,
CK

Reply
Rajesh Gudavalli says:
October 8, 2017 at 8:26 pm
Dear Chandan sir,
Very good article and its inspiring

Reply
Chandan K. Pathak says:
October 13, 2017 at 3:42 pm
Thank you, Rajesh!

Reply
Dr Chandra Sekhar says:
October 21, 2017 at 5:30 pm
Hi! CK,

Nice to be in communication. Article is really nice, inspiring and useful to youngsters.

As mentioned by you as well as some readers, I also joined in Geophysics as I got the seat for
my percentile. Once joined, went in to the same field deeply. I was fortunate enough to get a
very good professor as guide to complete my Ph.D . I did doctorate in earthquake seismology
and later joined ONGC and entered E&P. I also did doctorate from the same university, you
passed out, ISM (presently IIT ISM) and near that period (1981 to 1983).
Hope to get an opportunity in future to meet you.

Dr Chandra Sekhar

Reply
Chandan K. Pathak says:
November 3, 2017 at 10:37 am
Hello Dr. Chandra Shekhar,
Thanks for reading the article and happy to know that you liked it. If the youngsters get some
benefit out of sharing our experience and knowledge in this field of oil & gas, it gets very
satisfying. Happy to learn about our common connection i.e. ISM. Have a good day ahead!

Chandan
Reply
VISHAL KUNAL says:
January 4, 2018 at 2:34 am
Dear Sir,
Your story is really inspiring (especially that “permanent” child in us), this is what I was looking
for from my past one and a half years, after the downturn of the industry. Introducing myself, I
am a third year Applied Petroleum Engineering student with specialization in Upstream from
University of Petroleum and Energy Studies, Dehradun.
Sir, as of current industry’s scenario, it is clearly depicted that there is a huge loss in the hiring
process by the companies. Also, some of the companies have been shut-in. Drilling and other
operations are not going on with the same rate as it was earlier. In some of the companies (or say
countries), drilling has stopped.
So, my question here is being in third year and completing two internships in drilling (one was
the classroom lecture and the other was the practical oilfield training), how to secure a job in
drilling if one aspire to be a driller?

Thanks and Regards

Vishal Kunal
Applied Petroleum Engineering with specialization in Upstream
(2015-2019)
UPES, Dehradun

Reply
Chandan says:
January 17, 2018 at 6:47 pm
Vishal,
Thanks for reading this article and my other blogs and for liking them. As regard to the ongoing
oil crisis since the end of 2014, it has been a never-seen-before type. Oilfield professionals have
suffered a lot in terms of job loss, pay cut, unemployment etc. I can understand that you are as
disillusioned as any other aspiring students as regards to the future prospects in the E&P
Industry. However, the good news is, the oil price is steadily rising and currently hovering
around USD 70/bbl which is quite good. If it sustains at this level, you will see the companies
investing more and more in drilling and exploration in the coming months thereby increasing the
job opportunities with both the Operator and service providers. So, don’t lose hope and focus on
your remaining semesters while keeping your eyes and ears alert. There are many drilling
companies in India which hire fresh engineers for their drilling rigs. Once you get a job, don’t
worry about the money part initially. Gather good experience for 2-3 years after which you can
pick up much better jobs with better packages.
All the best!
Regards – Chandan K.Pathak

Reply
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