If You Don’t Understand the Financials, You’re Already Behind

Why Technical Talent Needs to Learn the Language of Money

Walk into any oil and gas operation and you’ll find engineers who can model a reservoir down to the last frac stage. You’ll find geologists who can read rock like a book. You’ll find production managers who know every valve in the field.

But ask them to read a balance sheet — and you’ll often hear silence.

Claude Thorpe believes that’s a mistake. A costly one.

The Best Technical Leaders Understand Capital — Not Just Completions

Here’s the reality:

In this industry, you’re not just managing equipment. You’re managing investment.

Every AFE, every delay, every design decision has a dollar value attached to it. And if you can’t see the connection between your technical work and the company’s financial health… you’re working blind.

3 Costly Gaps That Happen When Engineers Don’t Learn the Financials

1. They Design Projects the CFO Can’t Defend

A technically sound project is not always a financially sound one. If your completion plan adds 10% recovery but blows the capital budget, it’s not a win — it’s a write-down.

2. They Miss the “Why” Behind Leadership Decisions

Ever wonder why management cancels a project that looked promising? It’s not always politics. Sometimes it’s netback, cycle time, or market risk. Understanding the financial lens helps you align your recommendations with business reality.

3. They Stall Their Own Career Growth

The engineers who get promoted aren’t always the smartest in the room. They’re the ones who can bridge the gap between technical insight and financial outcomes. They speak both languages.

It’s Not About Becoming a CFO. It’s About Thinking Like One

Claude isn’t suggesting technical professionals abandon their craft. But he is challenging them to stretch:

• Learn how AFEs roll into the capex forecast
• Understand how downtime affects EBITDA
• Know how reserves are valued — and what moves the needle

When you start seeing projects through the lens of capital efficiency, you don’t just become a better engineer. You become a strategic asset.

Final Thought

If you’re in operations today, financial literacy isn’t optional. It’s the difference between being part of the conversation — or waiting outside the room.

So ask questions. Read the P&L. Sit with someone from finance. Learn how your work affects the business.

Because if you don’t understand the financials… you’re already behind.