Leading the Change: Key Energy Services Focuses on Their Employees

As an industry leader in oilfield services, Key Energy Services has been part of the backbone of the energy production sector for more than 40 years.

Led by President & CEO Marshall Dodson, Key oversees one of the largest well service rig fleet in the U.S. Dodson recently sat down with Well Servicing Magazine to discuss Key’s robust safety culture, his people-focused leadership style and how companies can flourish in the post-pandemic economic recovery.

Dodson joined Key after a stint in the financial industry and found the inherent challenges of the business intriguing.

“This is a capital and people-intensive business with so many moving parts spread out over long distances,” Dodson said. “The people part of the industry has drawn me more into the business. We have a tremendous workforce; it is very hard work outside in the heat and cold, rain and snow, performed away from the comforts of home or office.”

“Our industry is one where someone who did not have the educational opportunities I did, can change the trajectory of their family’s lives with the skills they acquire through dedication and hard work. I have heard countless stories and met people who have proved it out.”

Safety Culture

To be successful in protecting the safety of employees, all companies must develop and implement a robust and sustainable safety culture that is pervasive throughout every level of the company.

“Nothing is more important to me than the safety of our workforce and that of the communities that we live in and share the road with,” Dodson said.

In order for this culture to materialize into the implementation of actual safety-improving processes, the organization must first fully understand the challenges that are posed from jobsite to jobsite.

“We can have the best processes in the industry, with mitigation layered to keep people safe, but there is always a human element,” Dodson said. “I think that ensuring that our employees first know they have a voice and role in their own safety, but also understand why following the process is important, is a step in creating the right behaviors and culture.”

An industry that changes from “just a job” to pay the bills to one that affords families and children the opportunities they might not have had otherwise is something to value, he said.

One barrier that companies often face in the development of an effective and comprehensive safety protocol is a disconnect between what “should” happen versus what “actually” happens. Without first-hand insight into the nitty gritty details of a job on the site, it can become common practice for a safety plan to hold up in theory alone. To remove the veil separating theory from practice, Dodson relies on the company’s most valuable assets for information: its people.

“I do not believe you can build a common culture and ensure your message is being received with office meetings, emails or posters,” he said. “You have to be present, and our leaders have to be present to model and demonstrate our culture and values.”

With the sheer geographic spread of concurrent operations, it is essential that safety standards are modeled correctly and directly by the leadership across the board.

“You cannot find out what you need to change without listening and getting feedback from employees,” Dodson said. “How I experience Key every day is different than the experience of someone new to the company or working on a customer’s location. You have to give employees a voice and listen to know what is working and what is not.”

Post-Pandemic Economy

Energy markets have oscillated dramatically over the past two years with supply and demand trends fluctuating dramatically. The world watched as disruptions to critical elements of the industry quickly translated to market uncertainty and speculations being questioned more than ever. In the early stages of the global rebound as the world began to slowly pull itself out of its economic slump, the market began to rebalance and companies started to open up their portfolios to new ventures.

“Pandemic or not, having a diversity of assets with different revenue sources, either geographically or different services or economic drivers can provide stability against a disruption to any market fluctuations,” Dodson said.

While extolling the advantages of having a diverse portfolio of assets, Dodson also warned against playing too far away from a company’s strengths. While a diversification of assets can be key to an organization’s success, Dodson said, “most companies cannot be great or even good at multiple things, so there has to be a balance or common threads and synergies.”

Dodson also provided insight on the importance of companies to establish trust in the investment sector in order to regain critical funding. “First and foremost, demonstrate to investors that we are good stewards of their capital. In turn, that will earn a return to investment in our sector.”

Energy Technologies

As the energy transition is underway, it’s crucial to realize that the transition is not about switching from one fuel source to another but reshaping the entire energy ecosystem to accommodate emerging technologies that will make energy production more reliable, more affordable and cleaner. In a time where investors want to see companies reduce their climate impact and improve environmental performance, allocation of capital is crucial.

“Technologies such as digitalization, automation and remote operation will reshape the landscape of the oilfield and allow us to be smarter about how we work or deploy capital and leverage the capital we do put to work,” Dodson said.

The energy industry is in an era where innovation and technological development will be essential to achieve the goals of meeting growing energy demand and reducing greenhouse gas emissions.

However, this cannot be a sustainable enterprise if the technology deployed in the field and the capital investment that supports it donot prioritize safety and emphasize putting the welfare of the people first.

“The returns on technology investments that improve safety are not nearly as visible as those that drive more revenue or better margins, but they are there,” he said.

Attracting New Talent

A crucial critical part of enhancing the resilience of the energy workforce is the ability to attract diverse, innovative talent that will shape the future of the industry. However, Dodson urges that the narrative around the perception of the oil and gas industry needs to change before we see a significant change in oilfield employment.

“First, I think we need to overcome the perception that our industry has an end date inside the lifetime of someone entering the workforce today,” Dodson said.

The other challenge to attracting and retaining the talent that buoys the success of the industry are the “boom and bust” cycles that the energy sector has undergone over the past two decades.

“I am hopeful that this new era of capital discipline can hold on long enough to perhaps smooth some of the fluctuations out and allow for the industry to retain talent through the cycles.”

Looking to the Future

Over the past decade, there has been a remarkable effort by the global economy to promote economy-wide decarbonization goals and robustly decrease all forms of emissions. While the prospect of a quick and easy path for a comprehensive departure away from hydrocarbons has been touted through the media, Dodson urges the narrative to recenter itself around the facts.

“I’m not sure the pandemic has really changed the fundamentals of society’s longterm need for reliable energy and where hydrocarbons fit into that mix,” Dodson said. “I think energy usage through the pandemic and both the supply and demand for oil and gas may have lulled many into a belief that a transition away from hydrocarbons could occur quickly.”

As policy makers and public narratives work to push impractical policies with unrealistic deadlines that would realistically leave our energy industry in a catatonic state were they to be met, it is important for the world to continue working towards a lower carbon future while simultaneously remaining rooted in reality.

“Oil or gas production from a well declines over time. If we cease to invest and add new wells and production, over time we will have less oil and gas. I don’t think the industrial capacity exists today to pivot away quickly to a viable alternative across the globe, and we will need to continue to invest in oil and gas.”

In the end, Dodson believes that what sets a company apart from others is the services they offer and the people they employ.

“I’m passionate about the people in our industry and the good that our industry does for society. I want to do anything I can to champion that.”