FEATURE-U.S. petroleum engineers become rare commodity February 16, 2004 10:31:00 AM ET By David Brinkerhoff NEW YORK, Feb 16 (Reuters) - Striking oil isn't easy, but companies searching for black gold are finding it even tougher to recruit new petroleum engineers. Layoffs, the technology boom and a bad public image have all contributed to a sharp decline in students pursuing energy careers at U.S. universities. And as a large number of engineers approach retirement age, a staffing crunch looms. "We have an aging problem," said Stephen Holditch, head of petroleum engineering at Texas A&M University. "Universities in the U.S. are barely turning out enough students to meet the demand from industry." Petroleum engineers are crucial because they locate new fields and devise ways to pump oil from hard-to-reach places like ocean floors, deserts and Arctic tundra. With fewer recruits, the average age of engineers is rising, resulting in higher salaries that will jack up production costs. The staffing problem is more acute in North America, where the average age is 51, according to the Society of Petroleum Engineers. Overseas, the average is closer to 41. Staffing shortfalls could also delay projects at a time when Big Oil is working harder than ever to boost production. Since peaking in 1983, enrollment in U.S. petroleum engineering has dropped 60 percent, according to industry data. At most programs, there are a dozen oil engineers compared with hundreds pursuing mechanical or electrical professions. LOST GENERATION U.S. students have generally avoided petroleum engineering since the early 1980s, when a collapse in oil markets spawned huge industry layoffs. The profession never recovered as fears of another bust discouraged enrollment. Those concerns grew in the 1990s, when a wave of mergers forced more layoffs. "They really lost a generation," said Charles Swanson, Americas director of oil and gas at Ernst & Young. Since then, a new generation has been lured away by the Internet boom or scared off by the industry's environmental and human rights record, Holditch said. Allegations against Halliburton Co. (HAL) of overbilling in Iraq, among other accusations, and Exxon Mobil Corp.'s (XOM) Alaskan oil spill have soured young prospects. "All this stuff about Halliburton being evil doesn't do us any favors," Holditch said. "And the Valdez spill, that just killed us." Because of that, new graduates no longer consider energy companies "sexy," said Neil McMahon, oil analyst with Sanford C. Bernstein & Co.. "It is a challenge," a ChevronTexaco Corp. (CVX) spokesman said. "We have a few programs here, not only for recruiting new engineers but also to retain them." The image problem could hit the bottom line at a time when production growth is challenged. PRODUCTION DECLINES In North America, the size of new fields continues to decline. As a result, energy companies are forced to drill more wells just to maintain production levels. While advanced computers and communications enable fewer employees to monitor wells, oil producers could still use more people to design, maintain and monitor facilities. Over the next decade, a quarter of the industry's engineers will retire, Holditch estimates. The manpower shortage could mean delays in energy projects, resulting in higher costs. Expenses could also increase as aging staffs command higher salaries, according to McMahon. The average salary has grown at least 3 percent a year over the past decade. Pension contributions will also rise. "These costs will feed to the bottom line and the trend is unlikely to be reversed in the near future," McMahon said. Higher oil prices could result, he concluded. REACHING OUT Holditch sees steady job growth in the sector over the next few years. Recently, hiring trends have stabilized as energy companies enjoyed a sustained rally in commodity prices. Ultimately, companies will need to go overseas to plug gaps, as schools in Beijing, Moscow and Cairo churn out candidates. BP Plc has tapped a new pool of Russian graduates, McMahon noted. Companies also should reach out to colleges and high schools, convincing students that oil and gas will remain a rewarding career, Holditch said. "The industry must further improve its hiring practices if it wants to avert a staffing crunch over the next decade," Holditch said.
Chemical and petroleum engineering are about as cyclical as you can get in a profession. They're hot for about 5-10 years, then most of them are unemployed. Take a look at what happened to chemical and petroleum engineers during the 70's and 80's. Ouch. There are nurses that can make as much as many engineers, but I think it's more taxing to be a nurse. You also have to be able to deal with being a nurse - it's often no cakewalk. The upside is that there's almost always a shortage of nurses. Somehow, though, I doubt you want to be a nurse...
I am majoring in Computer Science, but as of lately I have had a change of heart. I am looking into other majors. I have been looking into the job that are in demand and are going to be in demand. Looking into classes for pharmacists.
Don't sign up for huge boring classes like Biology or Chemistry unless you REALLY want to, or absolutely have to! I completely hated my first 2 1/2 years at UT simply because that's all my classes were - the "weed out" classes that were 300+ people and didn't teach much of anything. Maybe you should go to a community college and take some random classes that you're interested in. This way you can explore your options for way less money than some big fat university would charge. Then, if you like the classes, you can transfer the credit, and take more classes at your school.
*cough* Murse! *cough* Scrubs reference. Carla: Todd, have you seen any of the extra long tongue depressors? Todd: No.... Wait I found one. It's not made of wood, but gimme a minute. WHAZZZZUP.
