Industry insights - Energy and utilities

Overview

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The industry in a nutshell

The UK’s energy and utilities industry is a vast and diverse sector comprising:

The sector plays an indispensable role in the global economy, with fossil fuels considered among the world's most important resources. However, the industry has been affected by the recent economic crisis, as well as the increasing regulations relating to climate change.

The opportunities within these sectors are huge, with the sector employing over 530,000 people. It is believed that around 14,000 people expected to be recruited over the next 10 years. (Energy & Utility Skills , 2009)

What kind of work can I do?

The energy and utilities industry employs people with a variety of skill levels across the oil, electricity, nuclear, gas, coal, water, waste management and renewable energy industries. The areas of work within the industry include:

What’s it like working in this sector?

How big is this sector?

Where can I work?

For information on working overseas, see opportunities abroad.

Job roles

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The following profiles are examples of key jobs that exist in the energy and utilities sector. To find the job roles that best match your skills and interests, login to what jobs would suit me?

For even more career ideas, take a look at types of jobs.

Entry and progression

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How do I find a job?

Jobs are advertised in a variety of places, including local and national press, specialist energy, engineering or planning publications, recruitment fairs and networking events. Websites of large organisations, professional bodies and public sector organisations are also a useful source of information about graduate opportunities.

The larger graduate recruiters tend to use online applications although requests for a CV and a covering letter are still used across the industry. Speculative applications for lower-level positions are fairly common, although most posts will be advertised, certainly at a senior or professional level.

Graduate, apprentice, and management training schemes remain common despite the current economic climate. Intakes for graduate schemes are typically in the autumn and spring terms, although many national and international organisations recruit for positions all year round. Oil companies have been known to recruit internationally, so UK graduates can be in competition with those from the USA and Europe.

Fixed-term contract work, short-term placements, and temporary work through agencies are all useful entry points, especially in a depressed economic market where employers may be reluctant to take on permanent staff.

While the industry has been affected by the economic downturn and increasing government interventions, there are still opportunities across the sector particularly in the alternative and renewable energy fields.

Find out more about job application advice.

What skills do I need?

Employers will expect a sound technical background in a relevant degree, typically with a minimum grade of 2:2 or equivalent. Due to competition of certain jobs, some larger employers may ask for a minimum of a 2:1 degree.

High levels of mathematical, scientific and technological skills may also be expected.

In parts of the industry, it’s possible to enter the profession at a lower level and work through to senior positions using a combination of experience and qualifications along the way.

In addition to academic requirements, graduate recruiters may look for the following skills which can be developed through studies and extracurricular activities:

Many academic courses are structured to incorporate these skills but other ways to gain them could include work experience, or getting involved in student clubs or societies, student newspapers or event organisation or promotions.

Where can I find work experience?

Employers will value work experience across all levels and job roles. Many graduates gain experience through a placement on a sandwich year degree. If a degree does not offer this then students should be encouraged to apply for work experience opportunities themselves. This will show potential employers evidence of initiative, commitment and enthusiasm.

Temporary and voluntary positions are also useful, although these types of work opportunities are rarely advertised so speculative letters, applications and networking are encouraged.

Many of the larger fuel and energy organisations now offer work experience opportunities through summer courses, one-year industry schemes and summer internships. For example BP and Shell both offer 13-week summer internships and 12-month work placements.

There are also specialist agencies such as the Year Out Group and The Year in Industry  who have details of gap year organisations and companies.

Is postgraduate study useful?

While postgraduate study is not usually necessary to enter the profession, in a competitive jobs market it is certainly useful for technical roles. As the alternative energy industry expands, postgraduate courses, such as an MSc in Renewable Energy Technology, are now becoming more commonly available.

The industry generally supports further study while working, and any good employer will provide the opportunity to work towards gaining professional status, awarded by an institution. Acquiring professional status usually takes around two years of working and studying, and requires an achievement of specific competencies within the area of work. The process typically involves keeping a log of experiences and a final interview and/or presentation.

How can my career develop?

Once you have found a job, most companies offer on-the-job training. Technical roles such as engineers are likely to pursue chartered status. Gaining chartered membership of the appropriate institution and undertaking agreed levels of continuing professional development (CPD) is a key part of career development which will enable progression to more senior posts.

Most employers will fully support graduates during this process through mentoring, training courses, graduate networking events and even tailored career pathways. Promotion may be dependent on gaining professional qualifications and the appropriate practical experience. Generally there will be opportunities to advance through the company structure or move to a larger organisation in order to gain promotion.

There also may be opportunities in research and development roles or working as a consultant, which can provide more scope for the development of personal interests. There are also many opportunities for employment overseas.

Typical employers

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There are many different opportunities in the fuel production industries including oil, gas and nuclear. This can include exploration, drilling, construction, diving supplies, transportation, petrol retailers or refineries.

Opportunities in energy and the utilities include geotechnical, engineering, scientific, environmental and waste management roles, although almost every area of industry uses a large amount of energy in its production processes, so there are many industries that employ energy specialists. 

Research is also a growth area, with an increasing need to research, develop and test alternative sources of energy, such as wind, solar, tidal and geothermal power.

Local governments, public bodies and charities are concerned with promoting energy conservation and can offer opportunities to graduates who want to work in this area. There are government initiative and nationwide schemes that need to be endorsed through local action and programmes.

Big players

There are many top global companies involved in the exploration and production of oil and gas. Big players and major recruiters include oil and gas producers such as:

There are over 18 energy companies supplying the UK and include:

The renewable energy market has been growing at record rates, with the wind industry leading the way and a number of global companies such as:

There are over 20 water companies in the UK including:

The waste management and recycling market also offers many opportunities. Companies include:

Small to medium-sized enterprises (SMEs)

SMEs are organisations with less than 250 employees and an annual turnover of around £26million. Working for a smaller company can be rewarding because you are more likely to forge a path for yourself within the company, although opportunities to try other departments may be limited.

SMEs are unlikely to use the testing and assessment techniques of larger companies, or follow lengthy recruitment procedures. SMEs are more likely to advertise their vacancies through the local press; university careers service bulletins, local graduate vacancy listings, jobcentres, and word of mouth, rather than rely on their reputation and a presence at graduate recruitment fairs.

Careers services should have listings of jobs with small firms. Vacancies are also advertised in local papers and through relevant professional bodies. Also see the Department for Business, Innovation and Skills (BIS).

Self-employment

Self-employment and freelance work is possible but not very common in this sector. However, there are some freelance consultants that offer expertise in highly specific areas within the oil and gas industry, waste management, recycling and renewable energies. However self-employment is not usually possible until graduates have several years’ experience and are professionally qualified.

Find out more about self-employment.

Opportunities abroad

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The energy and utility sector is a global industry with opportunities in various professional and technical disciplines available across the world, particularly in the oil and gas industry. A lot of the energy and utility firms working in the UK will also have sites and offices across the world.

What are the chances of getting a job overseas?

The most likely opportunities for working abroad can come from working for large multinational companies, where there may be opportunities to work on an overseas project or be based abroad. If this is a long term goal, then it would be useful to be able to speak a second language to help secure overseas opportunities.

The following countries rank amongst the largest producers and exporters of oil and natural gas, offering a range of opportunities:

New oil fields have been discovered in Turkmenistan, Vietnam, Azerbaijan and Kazakhstan.

Will my qualifications be recognised?

While there are no specific Europe-wide qualifications, UK qualifications and membership of the leading institutions are widely accepted and respected by organisations throughout the world.

While overseas companies tend to favour experienced graduates, many multinational organisations will readily take on more recently qualified graduates. For skilled, technical or managerial positions, educational background is something that potential employers will consider, with a degree in a related subject improving your chances of landing a higher paying job abroad.

Where are the opportunities?

There are offshore opportunities throughout the world in places such as Asia, Australia, Gulf of Mexico and western Africa.

The largest wind turbine producers are the USA, Germany, Denmark and Spain. The USA and Spain are leading the field in the construction of huge solar farms with projects running to 2014 and beyond.
 
Many countries remain active in developing nuclear power, including China, India, Japan and Pakistan. All are actively constructing new plants and developing thermal technology, offering further opportunities for international employment.

Future trends

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Energy and environmental legislation, cost savings and desire for public environmental credentials are a driving force in the industry. According to current projections, there is sufficient oil supply for another 50 years, and gas for another 100-200 years. However, with demand for oil and gas increasing, the cost of extraction rising, and greater care being taken of our natural resources, the industry faces a challenging future.

The renewable energy industry has expanded rapidly during the last three to four years, and despite the economic recession which stalled rather than stopped production, the industry continues to grow.

Photovoltaic production has been increasing by an average of some 20% each year since 2002, making it the world’s fastest-growing energy technology. Renewable energy use tends to be more labour-intensive than fossil fuels, and so a transition towards renewable energy promises employment gains.

Impending legislation

UK energy legislation has changed greatly over the last few years to reflect the country’s necessity to meet projected energy demands as well as carbon emission reduction targets.

With the UK Energy Act 2008, the Climate Change Act 2008 and the Planning Act 2008 all now published, these important legislative changes indicate the country’s commitment to the UK’s climate change programme.

The CRC Energy Efficiency Scheme (formerly known as the Carbon Reduction Commitment) is the UK's mandatory climate change and energy saving scheme. The scheme started in April 2010 and is administered by the Environment Agency.

Impact of technology

Within the last decade, technology advances have made it possible to unlock more oil from old fields, and, at the same time, higher oil prices have made it economical for companies to go after reserves that are harder to reach.

In addition technological advances continue to improve the way energy is generated, particularly through alternative energy solutions that harness energy from natural resources.

Demographic changes

Population growth is the key demographic change that will affect this industry, with predictions showing that by 2050 there will be half as many people again on the planet as there are now, placing increasing demand on our oil and gas resources.

Growth and reduction

Growth areas include corporate social responsibility (CSR) and research and development (R&D) as the search for new and better ways to optimise energy production and finding new renewable energy sources.

The Government has set a target of getting 15% of total energy consumed from renewable sources by 2020, of which electricity will be a large share.

Biofuels, wind and solar are continuing to grow rapidly as sources of energy, but in the UK its wind energy that is quickly becoming a thriving industry. The new Gunfleet Sands wind farm, five miles offshore from the Essex coastline is one of the biggest offshore wind farms ever built, and pushes Britain’s offshore wind power capacity past 1 gigawatt - enough to power 700,000 homes.

Jargon buster

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AGCAS
Written by Nick Huston, AGCAS
Date: 
September 2010
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