The Need for Baccalaureate-Degreed
Individuals
The case for baccalaureate degrees in the petrochemical industry and in manufacturing and operations industries lies in the need to enable technicians to move into supervisory and administrative positions. (This is similar to the case for baccalaureate degrees in fire sciences.) Whereas associate programs focus on building technical skills, baccalaureate- level education would focus on business and management, safety, accounting, and other administrative areas. Entry- level educational requirements for technicians are generally low, typically requiring a high school degree at most. Even supervisory programs typically do not require a certificate or degree; indeed, as of 2012, only 12.5 percent of first- line supervisors of production and operating technicians in Texas had baccalaureate degrees (U.S. Census Bureau, n.d.). In regions of Texas that host large oil and gas industries, however, substantial numbers of associate-degree programs prepare technicians for work in these industries, and these programs enjoy a steady stream of enrollees.
According to those we interviewed, employers are beginning to require candidates for management posts to hold bachelor’s degrees, particularly at some of the largest companies. In the petrochemical industry, technicians without bachelor’s degrees are unable to advance into management positions, which are filled by engineers instead. Several employers and community college interviewees reported that successfully overseeing technicians requires applied technical expertise, and many engineers lack this expertise and so (according to one community college interviewee) they may be sent to community colleges to receive technical training. In Brazosport, employers are paying the tuition of baccalaureate students, signaling a clear demand for candidates who have both baccalaureate and technical expertise.
The Level of Demand for Baccalaureate-
Degreed Individuals
The oil and gas industry is booming right now. Texas leads the nation in total energy production, which primarily comes
from crude oil and natural gas.7 Texas also leads the country
in crude oil reserves and production, and the largest reserves are located in the fields of the Permian Basin of West Texas.
Although the first major oil boom in Texas started over a century ago, 2010 signaled a shift in increased petroleum production due to advances in production technology that allowed producers to turn out 1.9 million barrels per day by mid-2012. Additionally, close to one-third of the nation’s natural gas reserves are in Texas, the lead producer of natural gas. Most of the state’s natural gas fields are located in the East Texas basin and the Fort Worth basin. The Eagle Ford Shale, located in South Texas, has begun to produce substantial amounts of natural gas and petroleum-based liquids from more than 20 fields in 23 counties.
The TWC (n.d.) estimates that in 2014, across the range of industries involved in production and operations, there were more than 48,000 first-line supervisors in Texas. Figure 4.5 shows projected annual job openings in production and operations supervision between 2010 and 2020 by WDA. Statewide, more than 1,000 new positions will open each year. Given that only 12.5 percent of individuals in these occupations have baccalaureate degrees, we might expect only 125 of the open positions are for baccalaureate-degreed supervisors.
The regional distribution of production and operations supervisory positions indicates that demand is particularly high in the Gulf Coast region. In fact, more than one-third of all open positions each year can be found along the Gulf Coast, accounting for an estimated 48 open positions annually that might require baccalaureate degrees. The Gulf Coast, with its vast complex of more than 200 chemical plants and refineries, is the largest petrochemical complex in the world (Office of the Governor, 2005). The state is seeking stronger partnerships between local community colleges and universities in this region, with the goals of reducing reliance on international workers and increasing employment of Texas workers.
Even in the Gulf Coast region, there may not be enough demand to support more than one or two face-to-face or blended programs that meet these workforce needs. DFW also may have sufficient demand to offer a program to serve regional-specific needs; of its 275 total open positions, 34 might require candidates with baccalaureate degrees.
Panhandle Alamo Permian Basin West Central Gulf Coast Upper
Rio Grande Concho Valley
South Plains
North Central East Texas
Coastal Bend North Texas Deep East Texas North East Central Texas Middle Rio Grande Rural Capital South Texas Heart of Texas Golden Crescent Brazos Valley Texoma Lower Rio Grande Valley South East Texas Capital Area Cameron County Dallas County Tarrant County 0 to 10 11 to 25 26 to 40 41 to 105 106 to 380
Figure 4.5. Projected Annual Openings in Management of Production/Operations Technicians Positions Between 2010 and
2020, by WDA
The Supply of Baccalaureate-Degreed
Individuals
The supply of degrees that prepare individuals for production and operations supervisory positions is difficult to measure for two reasons: the programs vary widely in name, and they are typically not tailored to a single industry or occupation. As of early 2014, three colleges plan to offer pilot programs to serve these workforce needs: the organizational management degrees offered by Midland College and South Texas College and the more specialized tracks offered by Brazosport (which include process management and business administration). The BAT and BAAS programs at Tarleton State and UT–Brownsville are also specifically tailored to business administration and may be able to meet these workforce needs.
The bigger question is whether multidisciplinary BAAS programs also can meet workforce needs in management of production and operations technicians. These programs are provided at many universities across the state and are capable of graduating large numbers of students. Many of these colleges have well-established business and leadership courses that may be able to provide high-quality business education to managers of production and operations technicians. Many of these programs are provided online, which would help meet the needs of working individuals pursuing baccalaureate degrees to advance in their careers. Employers in these industries, however, reported that they are looking for applied management and supervisory skills rather than theoretical business expertise, so the coursework available at universities may not suffice to help individuals deal with the practical issues they will encounter at production and operations plants.