Why oil and gas must prioritize culture and leadership amid COVID-19 and low oil

Oil and gas companies face fundamental uncertainty right now. Whether in responding to COVID-19 and low oil, integrating digital technology or preparing for the energy transition, oil and gas companies must balance both immediate, commercial concerns with the need to create long-term sustainable value. The moves companies are making during this disruptive environment have ripple effects across the entire organization, including its culture, people (or workforce) and the way leadership interacts with internal and external stakeholders.

In late June, I spoke with Dr. Brent Smith, Associate Dean for Executive Education of the Jones Graduate School of Business at Rice University, to discuss the impacts to energy organizations, their cultures and their leadership across three time horizons: now, next and beyond.

Dr. Smith, who has conducted executive programs around the world for large industry leaders, focuses his teachings primarily on leadership and management development. Following is a snapshot of the questions we discussed. To listen to the full discussion, visit ey.com.

• What are the most immediate consequences for organizational culture and leadership? What should leaders be doing now?
• The typical oil and gas playbook in a low-price downturn is to cut workforce — to go through reductions. How should leadership be thinking about workforce reduction in a more strategic way — to ultimately make the organization more resilient?
• As a leader, how do you continue to inspire and attract talent during uncertain times?
• On top of that, how do leaders think about diversity and inclusiveness in this time?
• Do you see the pandemic as a challenge or an opportunity? As we move into the next phase of reopening and envisioning a “new normal,” what should senior leaders consider?
• How should leaders change their views of what success looks like in this new normal? What advice do you give leadership as it considers how to build a resilient workforce and reprioritize during times of volatility?
• How are you viewing working remotely or virtual work in this transition? In the future?
• How will work change in the future, and how can management best prepare for the changes that may be catalyzed by our prolonged experiment with remote work? What impact will this have on organizational culture?

The views reflected in this article are those of the author and do not necessarily reflect the views of Ernst & Young LLP or other members of the global EY organization.