"Dirty, Difficult, And Dangerous": Why Millennials Won't Work In Oil

Authored by Tsvetana Paraskova via OilPrice.com,

Like many industries today, the oil industry is trying to sell its many job opportunities to the fastest growing portion of the global workforce: Millennials. But unlike any other industry, oil and gas is facing more challenges in persuading the environmentally-conscious Millennials that oil is “cool”.  

During the Super Bowl earlier this year, the American Petroleum Institute (API) launched an ad geared toward Millennials, who now make up the largest generation in the U.S. labor force.   

“This ain’t your daddy’s oil”, the ad says, in what API described as “a modern look at how oil is integrated into products consumers use now and in the future supported by bold visuals.”  

Despite its pitch to speak the Millennials’ language and reach out to the elusive generation, the ad sparked anger with many consumers and viewers.

Millennials continue to have the most negative opinion toward the oil industry compared to all other industries, and they don’t see a career in oil and gas as their top choice of a workplace. The oil industry’s talent scouting and recruiting methods of the past are failing to reach Millennials, who want their work to have a positive impact on society, various studies and polls have found—a rather big ask for the oil industry.

This failure to reach the group that makes up the largest portion of today’s workforce—which now surpasses Generation X—points to a huge problem for the oil sector, as Baby Boomers move into retirement in droves.

Not only are Millennials snubbing oil and gas because of its negative image, they also seek different job perks than previous generations sought, and in this regard, the oil industry will need to do more as it becomes increasingly obvious that Millennials want different things than what oil executives think they want. 

A total of 14 percent of Millennials say they would not want to work in the oil and gas industry because of its negative image—the highest percentage of any industry, McKinsey said in September 2016.

Young people see the industry as dirty, difficult, and dangerous, according to an EY survey published last month. EY’s survey polled Millennials—the 20-to-35-year-olds today—as well as Generation Z coming after them, and found that younger generations “question the longevity of the industry as they view natural gas and oil as their parents’ fuels. Further, they primarily see the industry’s careers as unstable, blue-collar, difficult, dangerous and harmful to society.”

In addition, two out of three teens believe the oil and gas industry causes problems rather than solves them, the survey showed.

So ‘not your daddy’s oil’ is not sinking in with Millennials and Generation Z, and with many of them, it never will, despite the oil lobbies’ marketing efforts to try to make it sound like an attractive career path.

According to executives polled by EY, the top three drivers for young people would be salary (72 percent), opportunity to use the latest technology (43 percent), and a good work-life balance (38 percent). But young people—although they are also prioritizing salary—have other views on what they look for in a job. Salary is still the top priority at 56 percent, but a close second comes good work-life balance (49 percent), with job stability and on-the-job happiness equally important at 37 percent.

Executives are underestimating the importance of work-life balance and stability for Millennials, while overestimating the allure of technology as a factor. It’s not surprising that Millennials are not as attracted to the opportunity to use new tech as oil executives believe they are – Millennials generally don’t see technology as a perk, they take it for granted.

Moreover, Millennials don’t see the oil and gas industry as innovative – a major driver of career choice among this generation. According to a recent report by Accenture, “Despite evidence to the contrary, many Millennials believe the sector is lacking innovation, agility and creativity, as well as opportunities to engage in meaningful work. In fact, only 2 percent of U.S. college graduates consider the oil and gas industry their top choice for employment.”

Accenture is warning that ‘the talent well has run dry’ and said:

“We believe the growing workforce deficit will, in fact, be a greater barrier to oil and gas companies’ upturn success than any deficits that might exist in capital, equipment or supplies.”  

The oil   and gas industry is losing the competition for talent recruitment to industries that are more appealing to Millennials, and U.S. oil and gas firms will face the talent crunch first, according to Accenture.

“Any mature industry has to think about the fact that there’s a new sheriff in town with new values, new spending habits,” Jeff Fromm, an expert in marketing to American Millennials, told Bloomberg.

And if the oil and gas industry wants to get this ‘new sheriff in town’ on board, it needs to profoundly change recruitment strategies and talent sourcing. But with the negative image that is probably set to become even more negative—despite oil organizations’ marketing efforts—oil and gas has a huge workforce problem looming.

The Fourth Turning's Neil Howe Warns: We Are In The 1930s, "Winter Is Coming"

Via Mauldin Economics,

From the Balkans to the US, walls are going up, not down, according to demographer and The Fourth Turning author Neil Howe.

Speaking to a packed crowd at Mauldin Economics’ Strategic Investment Conference in Orlando, Howe said we are reliving many of the same trends and changes of the 1930s.

Faith in Democracy Is Fading

“Worldwide, people are losing trust in institutions,” he said. “Trust in the military, small business, and police is still there. But trust in democracies, media, and politicians is dropping.”

“When was the last time we saw these changes and the rise of right-wing populism?” he asked. “The 1930s.”

Howe’s statement is borne out of a June 2016 Gallup poll. When poll takers were asked how much confidence they had in institutions in American society, the results were troubling.

Just 15% said they had a “great deal” of confidence in the US Supreme Court. Banks trailed behind at 11%, followed by the criminal justice system (9%), newspapers (8%), and big business (6%).

Meanwhile, just 16% expressed a “great deal” of confidence in the presidency, with that number plummeting to 3% for Congress.

What Does This Mean for the Future of the West?

In his keynote, Howe shared his forecasting logic:

“My method is to step back and realize one thing: There is something we know about the world in 20 years’ time. The people who live there will be all of us, 20 years older and playing a different role. I call this ‘looking along the generational diagonal.’”

The critical thing to remember about the current crisis period is that what comes next will be an era in which there is a new order.

According to the Strauss-Howe generational theory, as this new order takes root, individualism declines and institutions are strengthened.

“History is seasonal, and winter is coming,” Howe has said. But after winter, comes spring.

As the American Revolution was followed by calm, as the Civil War was followed by reconstruction and a gilded age, and as the Great Depression and World War II were followed by an age of peace and prosperity, so too will this crisis period be followed by a calm, stable era.

It’s simply a matter of time.

Detroit Is A Stark Reminder Peak America Was Over 50 Years Ago

Submitted by Stock Board Asset

The most common saying amongst the baby boomer generation is “America is not like it was when I was growing up”. Have you ever wondered what that means?

Let’s first examine Jefferson Avenue and Conner, 1949-2010. As quickly as the city had grown, Detroit started to decay in the 1960’s. East Jefferson Avenue was once home to some of Detroit’s most prestigious industrial plants, including Chalmers, Hudson, Briggs, and Continental. The loss of many of these plants started in the 1960’s and had a devastating impact on the neighborhoods nearby, leading to a mass exodus of residents.

The Strauss–Howe generational theory, authored by William Strauss and Neil Howe may explain why Detroit started unraveling in the mid-1960’s. This was due to the late phase of the generation shift called the ‘American High’, which lasted from 1946 to 1964. This was a period of massive expansion of birth rates, industry, and infrastructure — America had it all.

The ‘American High’ ended in 1964 giving way to the next generational shift called the ‘Consciousness Revolution’ 1964 to 1984. During this period, Detroit started to fall ill to a disease called globalism. This is where global elites shifted capital from Detroit, and or other American cities to manufactures overseas on the basis of a human instinct called greed. In the process, many communities were destroyed as industry left producing third world conditions for the remaining few.

During the ‘American High’ (1946-1964), Detroit was the epicenter of the world’s auto industry. With the hard lead-in into the ‘Consciousness Revolution’ (1964-1984) globalism started to deplete US car production.

Here are a few examples of cheap labor overseas hallowing out the American auto industry:

US Car Production vs Japan Car Production

US Car Production vs Mexico Car Production

From Baltimore to Detroit, i’ve surveyed the worst zip codes America has to offer. With-in these zip codes, the rhyming factor is globalism, which forced industry to leave sending the communities around it on a downward spiral.

So, here is an Uber drive to remember touring through the most dangerous neighborhoods in Detroit, Michigan. I was armed with a drone, I-phone 7, and an Uber.  The area of focus is the zip code 48204 area ranked Michigan Radio’s top six most dangerous neighborhoods in Michigan.

Alastair Williamson tours the most dangerous neighborhoods in Detroit, Michigan armed with a drone, I-Phone7, and an Uber. He comes across crumbling neighborhoods, climate change protests, and a touching interview at the end. His overall thoughts include, “the end results of globalism has been detrimental to the area. The industry and neighborhoods left decades ago, and what’s left are the artifacts of a civilization from the ‘American High"”.

It has a median real estate value of $39,372 due to a significant volume of vacant commercial and residential structures. A majority of residential real estate structures in the area are worth < $62,000 making the area almost impossible to hold value, as well as attract new buyers to the area.

Real estate never recovered, but flatlined after the Great Recession

Conclusion: We have no-one else to blame but the global elites along with government officials who sold out America’s prosperity many decades ago. The elites prospered tremendously off this tectonic shift of capital overseas leaving the American middle class hallowed out. America needs her industry back, without it, we’re just an empire in decay. 

Bonus:  Millennials in the next 8 years, according to Gordon T. Long will be 75% of the US workforce. What millennials don’t realize is that decades of decaying US cities or even just Detroit will be a massive uphill battle to produce a sustainable economy. Challenging times are ahead.

The Baby Boom Tsunami That May Drown The Economy

Submitted by Stock Board Asset Management

In our most recent article Millennials: A Menacing Metamorphosis To The Status Quo breaks down an interview hosted by Gordon T. Long and Charles Hugh Smith. The interview discusses the massive generational shift occurring in the United States as the Millennial generation sets to stitch their beliefs and ideas in the American fabric. But there is an issue. The status quo i.e. the baby boomers are not ready to give up the reigns forcing a generational clash, and as described by Gordon T. Long and Charles Hugh Smith will continue for the next eight years. Such a clash will lead to economic and social consequences. In terms of crisis, Strauss–Howe generational theory provides an excellent blue print of this generational clash called the ‘Fourth Turning’, where the old older is dismantled giving way to the new order.

To continue the theme of generational shifts, we have come across an interesting presentation hosted by Mike Maloney of goldsilver.com called ‘The Baby Boom Tsunami That Is Set To Drown The Economy’. His analysis rhymes with Gordon T. Long and Charles Hugh Smith of a colossal change in demographics that is currently underway in the United States. Maloney outlines how the baby boomer generation is becoming a ‘max social burden’ on an economic basis and in his own language “mandates a stock market crash”. His thesis is simple and it’s all about the structural issues of an aging population becoming less productive and demanding more withdraws from the system.

Like a Tsunami, Maloney outlines in a series of graphs, the rise of the baby boomer generation in the 1950’s, 1960’s, and 1970’s. As the baby boomer generation morphs into the working and max spending period of life this has contributed to the massive stock market and real estate bubbles of the 1990’s and 2000’s. But times are changing as the baby boomers are now transitioning into max savers and ultimately max social burdens in the years of 2020-2030. During this time period, the working age and max spenders in society will have difficulties in supporting the aging population.

In 7 slides, Maloney highlights an actual wave of the baby boomers vibrating throughout time from ‘child’ to ‘max social burden’.

Bonus: Japan seems to be ahead of the curve when it comes to an aging demographics. If Maloney is right about the US could we be turning Japanese? Most importantly, will the SPX500 mimic an early 1990’s Nikkei225 stock index?

Why Millennials Are Behind: They Earn 20% Less Than Boomers Did At The Same Age

Over the past few years, as the Millennial generation has grown into its own, in 2016 surpassing Baby Boomers as the nation"s largest living generation according to the Census (Americans aged 18-34 in 2015 now number 75.4 million, surpassing the 74.9 million Baby Boomers aged 51-69), in the process becoming the fulcrum support of the US economy, it has also prompted many questions: why aren"t Millennials investing in the stock market? Why aren"t they starting families and buying houses? Why are they living in their parents" basements well into their thirties? Why don"t they just... spend?

The latest answer to all these questions came yesterday following a new analysis of Fed data by the Young Invincibles group, according to which with a median household income of $40,581, despite being better educated, millennials now earn 20% less than boomers did at the same stage of life in 1989, who earned $50,910 some 25 years ago.

The analysis released on Friday shows other disturbing trends, which confirm that America"s troubling generational divide is all too real and helps explain much of the anxiety that defined the 2016 election. Some examples: millennials have half the net worth of boomers; their home ownership rate is lower, while their student debt is drastically higher.

The generational gap is a central dilemma for the incoming presidency of Donald Trump, who pledged a return to the prosperity of post-World War II America. The analysis also hints at the issues of culture and identity that divided many voters, showing that white millennials — who still earn much more than their blacks and Latino peers — have seen their incomes plummet the most relative to boomers.

Andrea Ledesma, 28, says her parents owned a house and were raising kids by her age. Not so for her.

Ledesma graduated from college four years ago. After moving through a series of jobs, she now earns $18,000 making pizza at Classic Slice in Milwaukee, shares a two-bedroom apartment with her boyfriend and has $33,000 in student debt.

"That"s not at all how life is now, that"s not something that people strive for and it"s not something that is even attainable, and I thought it would be at this point," Ledesma said.

Her mother Cheryl Romanowski, 55, was making about $10,000 a year at her age working at a bank without a college education. In today"s dollars, that income would be equal to roughly $19,500. Romanowski said she envies the choices that her daughter has in life, but she acknowledged that her daughter has it harder than her. "I think the opportunities have just been fading away," she said.

The Fed data shows the extent of the decline. It compared 25 to 34 year-olds in 2013, the most recent year available, to the same age group in 1989 after adjusting for inflation. Education does help boost incomes. But the median college-educated millennial with student debt is only earning slightly more than a baby boomer without a degree did in 1989.

The home ownership rate for this age group dipped to 43 percent from 46 percent in 1989, although the rate has improved for millennials with a college degree relative to boomers. The median net worth of millennials is $10,090, 56 percent less than it was for boomers.

While whites still earn dramatically more than Blacks and Latinos, reflecting the legacy of discrimination for jobs, education and housing. Yet compared to white baby boomers, some white millennials appear stuck in a pattern of downward mobility. This group has seen their median income tumble more than 21% to $47,688. Median income for black millennials has fallen just 1.4 percent to $27,892. Latino millennials earn nearly 29 percent more than their boomer predecessors to $30,436.

The analysis fits into a broader pattern of diminished opportunity. Research last year by economists led by Stanford University"s Raj Chetty found that people born in 1950 had a 79 percent chance of making more money than their parents. That figure steadily slipped over the past several decades, such that those born in 1980 had just a 50 percent chance of out-earning their parents.

This decline has occurred even though younger Americans are increasingly college-educated. The proportion of 25 to 29 year-olds with a college degree has risen to 35.6 percent in 2015 from 23.2 percent in 1990, a report this month by the Brookings Institution noted.

The declining fortunes of millennials could impact boomers who are retired or on the cusp of retirement. Payroll taxes from millennials helps to finance the Social Security and Medicare benefits that many boomers receive, programs that Trump has said won"t be subject to spending cuts. And those same boomers will need younger generations to buy their homes and invest in the financial markets to protect their own savings.

"The challenges that young adults face today could forecast the challenges that we see down the road," said Tom Allison, deputy policy and research director at Young Invincibles.

For now, despite Obama"s recurring narrative of an economic "recovery" which unfortunately skipped some 75.4 million Americans, and despite Trump"s promises that he will somehow make it batter, it remains unclear just how this most important US generation will emerge from its demographic and economic doldrums.

Source: Financial Health of Young America: Measuring Generational Declines between Baby Boomers & Millennials