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A Pipe Stress Engineer's Salary
by Rick Suttle, Demand Media

Pipe stress engineers earn more in certain west- and east-coast states.
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Oil, gas and other power companies depend on pipe stress engineers to perform stress analysis tests on pipes and
expansion joints on land or underwater. Pipe stress engineers use various tools to conduct these tests, ensuring
the pipes work properly and meet government standards and regulations. Their salaries can vary depending on
the states or districts in which they work.
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Salary Over $100,000
The average annual salary for a pipe stress engineer was $102,000 as of 2013, according to the job site Indeed.
The minimum educational requirement for this job is typically a bachelor's degree in mechanical engineering.
These engineers must pass the Fundamentals of Engineering Examination after graduating to earn licenses as
engineers in training, in their states, according to the Bureau of Labor Statistics. After gaining six months or
more of experience, EITs can take the Principles and Practice of Engineering Exam to earn full licensure. Many
employers refer hiring pipeline stress engineers who have five or more years of experience in pipe stress
engineering. Other essential requirements for this job are mechanical, math, creative, listening and problem-
solving skills.
Top Pay in New York
In 2013, average salaries for pipe stress engineers varied the most within the West region, according to Indeed,
where they earned the lowest salaries of $66,000 in Hawaii and the highest of $110,000 in California. Those in
the South made $86,000 to $121,000 per year in Louisiana and Washington, D.C., respectively. Pipe stress
engineers earned $87,000 to $123,000 in Maine and New York -- the lowest and highest salaries in the
Northeast. In the Midwest, they made $76,000 in Nebraska and South Dakota and $113,000 in Illinois, which
were the lowest and highest salaries in that region.
Related Reading: The Average Salary of a Search Engine Optimization Specialist
Earn More Than Mechanical Engineers
While pipe stress engineers earned $102,000 on average in 2013, according to Indeed, the BLS reported average
salaries of $84,770 for all mechanical engineers as of May 2012. Pipeline stress engineers may earn more than
mechanical engineers because the job requires greater skills and experience. Mechanical engineers' salaries were
highest in the oil and gas extraction industry at $128,650, according to 2012 BLS data. They made $110,150 per
year in the pipeline transportation of oil industry.
Below-Average Job Growth
The BLS estimates a 9 percent increase in jobs for mechanical engineers, including pipe stress engineers, from
2010 to 2020, which is slower than average. Mechanical engineers may find more job opportunities through
temporary employment services firms, as more companies are hiring engineers for temporary assignments to cut
costs. Jobs for pipe stress engineers may increase in the oil industry as major pipelines are built across the U.S.


http://www.plastemart.com/upload/literature/Infrastructure-boom-Middle-East-drives-growth-of-
plastic-pipes.asp

Infrastructure boom in the Middle East drives growth of plastic pipes


The six nations of the Gulf Cooperation Council - Saudi Arabia, Kuwait, Bahrain, Omar, Qatar, and the UAE, earned US$381 bln from oil
exports in 2007. Oil export revenues earned by member countries of OPEC are set to reach a record total of over US$1 trillion by the end
of 2008 and continue on an upward trend into 2009, according to estimates by the U.S. Energy Information Administration. In the first
seven months of 2008, OPEC members earned a record US$642 billion for oil exports. A lot of that money is flowing into infrastructure.
From Dubai to Kuwait, there's an estimated US$2.4 trillion in construction projects either underway or in development in the world's
biggest oil patch. Surprisingly, US$1.4 trillion of that total is for projects in civil construction. This means spending on residential and
commercial construction projects in the Middle East outweighs construction on oil, gas, power, petrochemical, industrial, and water
projects combined. The rapid infrastructure development in the Middle East region drives the markets of pipe systems from water and
sewage to cooling systems and industrial pipes. In addition, existing pipe systems are prone to leaking valuable water resources and need
to be upgraded. The Middle East region offer challenges including conditions of extreme temperatures, wind and sand erosion which
ultimately take its toll on the piping systems. Saudi Arabias King Saud University has done extensive research in this parti cular area.

Development of infrastructure in the Middle East has been a regional focus for international organisations like the World Bank and the
IMF. This region has been relatively underinvested with a large portion of the rural population being completely unserved by electricity and
telecommunications, while services in urban areas often experience high distribution losses, frequent service interruptions, and weak
financial performance. Infrastructure development is not only crucial in meeting the regions social challenge, but has an essential
contribution to make towards improving business competitiveness in the Middle East. Infrastructure mean public infrastructure, which can
be classified into water, electricity, transport, sewerage, telecommunications, sanitation. Given that the region is now characterised by high
monetary inflows and a rapidly growing population that has more than doubled to about 270 mln in the past 30 years, could double again
in the next 30 years recording an annual growth rate of approx 2.5%), the growth in infrastructure investments will obviously outperform
most other areas of the world. The water sector is a unique problem to the Middle East more than anywhere else, and it is evident from an
examination of demand and supply. In terms of supply, the water availability per capita is historically the lowest among all the world's
major regions, and this is expected to remain similar in the future.



Among the various Middle-East countries, the rich Gulf countries are the ones that lack renewable (ie. natural) water the most: Bahrain,
Saudi Arabia, UAE, Qatar, Kuwait, implying that these countries offer the greatest opportunities for water infrastructure development. On
the demand side, many Middle-East countries have some of the highest consumption rates per capita in the world (in UAE, consumption
per capita is more than 3X the world average). High consumption rates are mainly driven by aggressive agricultural policies, which can
account for >80% of a country's water usage, and further accentuated by high technical and commercial losses in the water systems, also
referred to as unaccounted for water(UFW). Kuwait, Saudi Arabia and the UAE actually provide water for free.

http://www.assemblymag.com/articles/90742-oil-and-gas-industry-adopts-lean-manufacturing
il and Gas Industry Adopts Lean
Manufacturing
By Austin Weber
December 4, 2012

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KEYWORDS Lean Manufacturing / oil-field
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Oil and gas equipment manufacturers face many unique challenges. For instance, swings in
demand for pumps, compressors, drill bits, Christmas trees,
wellheads and other products come from many
different sources.

Besides normal market demand changes, companies that produce oil and gas equipment must
react to a high number of variable factors. Demand can be impacted by changes in legislation,
foreign policy, political situations, oil and gas discoveries and the logistics of installing heavy
equipment.

In contrast to other industries that produce physical parts to customer demand, this industry is
more project-driven, similar to the heavy construction industry, says Kevin Duggan, a lean
manufacturing consultant and founder of the Institute for Operational Excellence. The oil and gas
equipment industry also is schedule-driven. Most manufacturers are willing to pay to get things
expedited.

While in the past, the equipment manufacturers have been more traditional and conservative
approach to equipment, lately the industry has begun to accelerate through innovation, says
Duggan. Using approaches as modular design and computer technology advances in equipment
design are making this industry more cutting edge.

Oil and gas equipment manufacturers are also harnessing the power of lean manufacturing to
improve productivity and satisfy growing customer demand.
Because most drilling, pumping and processing equipment is complex and custom-built, low-
volume, high-mix production processes are widely used in the industry.

Compared with the automotive and consumer goods industries, oil and gas equipment is built in
very small quantities and in a specific configuration for an application. Much of the equipment is a
design and build and not repetitive of previously produced equipment.

This forces high demand on engineering resources and also a heavy integration of design
engineering and manufacturing, says Duggan. Design for manufacturing methods and modular
design have made significant improvements to this industry, where engineering is done on
almost every customer order.

Consumables such as standard pipes, elbows and valves can be built in a production run and put
in small amounts of stock. However, Duggan says that these would still be built using the
principles of mixed-model production (determining product family matrices, work content
variation, equipment needed by family and demand, interval calculations for mix, finished good
strategies and Heijunka scheduling), due to the mix of part numbers.

Compared with other industries, assemblies are not done on work benches or assembly lines,
says Duggan. Operators normally have to walk around the product itself to build it, similar to the
construction of a building on a lot.

Therefore, production to takt time is not as easily accomplished as it is in other industries, adds
Duggan. However, these large machines still must be built in floweven if the physical
machines are not moved on a chain conveyor or moving line.

To achieve this, different techniques are needed to create pitch (a physical way for operators to
know if equipment assembly is achieving takt time), Duggan points out. These techniques
include balancing work to timed team assemblies, presenting material at preset times, kitting
material by assembly time, and color-coded visual flags that show the timing of long takt time
builds.

The high-mix, low-volume production environment common in the oil and gas industry presents
challenges to engineers. One of the challenges is truly understanding customer demand in
terms of mix, says Duggan. Establishing an interval in a high-mix, low-volume environment is
key to dealing with this.
The interval is how long it will take (or what is our ability) to produce all the part numbers in a
product family, explains Duggan. This can be difficult to establish in the oil and gas industry
because of its high-mix, low-volume nature, long lead times, and high customization of parts.

Traditional techniques used for production and creating flow, such as balancing operators to
create continuous flow or assembly lines, wont easily work in high-mix, low-volume
environments.

Some other challenges that engineers in the oil and gas equipment industry faces are:

*Trying to optimize resources to produce parts while customers are changing their forecasts.
*Managing changeovers to produce different parts in small quantities.
*Effectively utilizing equipment for efficiency and cost-effectiveness.
*Trying to forecast raw materials on a global basis.
*Achieving consistent lead times when assemblers dont know what is being produced in front of
the next unit.
*Varying cycle times, varying setup times and variation in worker abilities in a high-tech
environment cause variation in lead times.

The oil and gas equipment industry is not as far along on its lean journey as automotive, medial
and consumer goods manufacturers. However, Duggan says engineers are beginning to realize
the benefits of lean and operational excellence and what can be achieved in their complex
industry. While its adoption of these techniques is a little behind other industries, early gains
have fostered a desire to learn and apply more knowledge quickly to see additional results, he
points out.

As demand builds and new oil or gas fields are found, companies are aggressively adopting lean
manufacturing principles to help them meet customer demand.
They are realizing that lean and operational excellence apply to their industry, but not the vanilla
automotive techniques, claims Duggan.

They need much more advanced techniques, such as establishing takt capabilities (instead of
the typical takt or customer demand rate), mixed model production and creating flow through
shared resources, adds Duggan. [Oil and gas equipment manufacturers also need help]
creating flow in the business processes using workflow cycles and integration events, and a
robust method of lean product development and flow through engineering departments.

Now that the industry has proof that these advanced techniques can handle the challenges of
applying lean and operational excellence in oil and gas, the education and application of these
principles has begun, bringing results to this industry similar to what automotive manufacturers
have achieved, says Duggan.

Large oil and gas equipment manufacturers have incorporated continuous improvement and lean
manufacturing principles to cut production costs and improve productivity. The oil and gas
industry has applied much more in-depth design principles for value stream improvement, says
Duggan. While other industries run kaizens or continuous improvement events where their
people brainstorm to spearhead improvement, oil and gas equipment producers map their
existing product flows, then engineer or design future state flow using principles and tenets.

Those principles teach guidelines that must be used to design a future state. They include
advanced concepts, such as product family matrices for determining families for flow, different
modes of takt time calculations, machine loading, interval analysis and different methods for
FIFO, such as sequenced FIFO and offset sequencing.

Duggan says he recently encountered a large oil equipment manufacturer that always incurred a
bottleneck of parts in its nondestructive testing (NDT) department. Many meetings were needed
to prioritize and expedite parts through the NDT area, says Duggan. Hot lists and schedule
changes were the normal way of working in order to push work through the NDT area.

An attempt to use the lean concept of supermarkets, which is widely used in the automotive
industry, was considered during a kaizen but dismissed due to the high customization of parts
and the amount of stock needed.

After learning the principles of flowing through shared resources, calculations were performed,
intervals determined and sequenced FIFO lanes established, says Duggan. The result was a
guaranteed turnaround time for the NDT process. Any part in an input FIFO lane would flow
through the process within a guaranteed amount of time.

As a result, flow was established without supermarkets, eliminating scheduling, hot lists and the
bottleneck, adds Duggan. Visual indicators were also established so each assembler could tell
if the flow was on time to how it was designed using these principles. The success in this area
quickly spread to other areas throughout the operation as well.

http://talentegg.ca/incubator/2012/10/10/indemand-occupations-petroleum-industry/


he Most In-Demand Occupations In
The Petroleum Industry For College
And University Grads
By Leah Ruehlicke
11

13

0

2


The oil and gas industry is a growing one which plans to hire thousands over the next four years
as workers retire and the industry continues to expand, particularly in the oil sands.
More than three quarters of oil and gas companies say they plan to hire to support industry
growth, which means there are plenty of job opportunities for students and recent grads with lots
of room for advancement.
According to the Petroleum Human Resources Council of Canada, the most in-demand
occupations in the oil and gas industry include:
Field workers, labourers and operators
Drilling and service supervisors
Chemical, mechanical and petroleum engineers
Non-steam ticketed operators
Heavy equipment operators
Drilling co-ordinators and primary production managers
Truck drivers
Millwrights and machinists
Geologists and geophysicists
Steam-ticketed operators
While recent graduates dont have enough experience to become drilling supervisors, there are
many entry level positions in the other occupations many of which you can find right here on
TalentEgg. Browse student and entry level oil and gas jobs.
Lets take a look at some of these in-demand occupations:
Petroleum Engineers
Did you know that entry level engineers are particularly in demand in the petroleum industry
because companies prefer to teach you on the job rather than retraining engineers from other
industries? Thats right. So the fact that you dont know it all yet is actually a huge plus for new
engineers!
Petroleum Engineers have a natural curiosity about and a knack for figuring out how things work.
Critical thinking, the ability to creatively problem solve, clear communication skills and the ability
to manage yourself are all qualities that will put you to the top of employers lists.
These engineers typically specialize in either oil and gas drilling, reservoir management or
production:
Reservoir Engineer
Reservoir Engineers identify oil and gas reserves and develop strategies to maximize recovery,
conducting simulation studies in order to do this. The plans they work on may include field
developments, enhanced oil recovery techniques and revised well placements.
Production Engineer
Production Engineers analyze, develop and optimize the performance of individual wells, and
design connections between the reservoir and the well. They evaluate the effectiveness of
methods that increase the flow of water, gas and oil, and develop surface equipment systems to
separate those substances. Most Production Engineers perform work indoors and journey to the
field sites for specific troubleshooting operations.
Drilling Engineer
These engineers plan, design and implement drilling methods for all types of wells. They ensure
drilling is done in the safest and most economical way possible.
Geologists and Geophysicists
Geoscientists are the industrys Earth whisperers they find, study and eventually help
develop mineral, geothermal, and oil and gas deposits. While some of their time is spent in the
field, the majority of the work that Geologists and Geophysicists do happens in an office or
laboratory, where they analyze samples and use computer models.
According to the Petroleum HR Council, geology and geophysics graduates have the option of
working for exploration and production companies that find and extract oil and gas recources, or
geophysical services firms which help petroleum companies locate oil and gas reserves through
seismic imaging.
Skilled Trades
Cheryl Knight, Executive Director and CEO of the Petroleum HR Council, says one of the most
interesting things happening in oil and gas right now is how much technology is making the
industry bigger and more efficient. We are really seeing that technology and being
technologically proficient is really important to the industry.
And as the industry has become more reliant on advanced, specialized technologies, skilled
tradespeople, such as millwrights, machinists, steam-ticketed operators or power engineers,
have kind of become like the glue that keeps everything. They are the ones who actually
construct, maintain, operate and repair all of the equipment, machinery and facilities in use at oil
and gas operations. Without them, engineers and geoscientists wouldnt be able to do their jobs.
- See more at: http://talentegg.ca/incubator/2012/10/10/indemand-occupations-petroleum-
industry/#sthash.ph1g79PW.dpuf





http://www.offshore-technology.com/features/feature2012-oil-gas-job-offshore-recruitment/




nside story behind 2012's booming oil and
gas job market
16 May 2012

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As the age of austerity bites deeper, its encouraging to report that oil and gas sector recruitment is
improving. Ian McInnes spoke to Graeme Fyfe, Hays Oil and Gass Aberdeen office director, to find
out what's behind the significant boost in offshore recruitment and job opportunities reported in the
recently released Oil and Gas Global Salary Guide 2012.

Oil and gas job market: open for business
"Poaching is very much at the mindset of owners at the SME (small
to medium enterprise) end of the business and is a hurdle to
recruitment."
Using data input from 14,000 industry professionals, the Oil and Gas Global Salary Guide 2012,
produced by Hays Oil and Gas (Hays) and the leading jobsite, Oil and Gas Job Search, points to a
hiring situation in the industry which has improved on last year and become friendlier for entry level
graduates.
Graeme Fyfe is the director for Hays' Aberdeen office and offered some insights as to why graduates
are more welcome in the oil and gas industry. "I think companies have realised that the reality is that
the industry doesn't have enough skills in it and that they need to find routes to be able to facilitate the
future."
"One of the limitations that most of the industry has at the moment is that they can't just buy people in
from abroad," says Fyfe.
That reality, coupled with governmental advice, seems to have set in as older workers retire. "I think
graduates have got a better chance at the moment than they've ever had to get a job because
companies are now saying right, we need to think about the future, we need to think about succession
planning and the fact that there's more people leaving than entering at the other end. What do we do
about it?
"Therefore graduates, everyone with an engineering background, are now getting a chance again."
In the past, engineering courses have not exactly hit the number one spot for students and that is part
of the problem. "If you look at engineering particularly, engineering during the last 20 years or so has
really taken a beating because it's not been seen as an aspirational industry to go into," explains Fyfe.
"Therefore with university intakes, I think those kind of courses have suffered quite a lot."
Recruits no longer dependent on engineering degrees alone
There are also opportunities for graduates that haven't taken engineering degrees, says Fyfe. "It
depends on what they want to do. There are quite a lot of companies that will take people on at a
pretty raw end of the spectrum for more junior roles. Some companies are running graduate training
programmes for more generalist skills. I think there's an opportunity for those people," believes Fyfe.
"The document side of it, the actual negotiation of contracts, you tend to find people that have
business related degrees, such as administration. At that end there's a lot more basic skills such as
numeracy and written English and your personality in terms of being able to stand toe-to-toe with
someone and negotiate a contract with them," says Fyfe.
"So those kinds of graduates will get a better chance for those kinds of jobs rather than mechanical
engineering. There's an actual intellectual property element of that kind of job."
Oil and gas market 2012: a sea change for recruitment
Fyfe highlights that aside from the companies that have always had graduate training programmes,
there is a sea change taking place in other companies. "More and more of these companies are
taking bigger intakes of graduates," says Fyfe.
"In the past, engineering courses have not exactly hit the number
one spot for students and that is part of the problem."
"Organisations like EMEC (European Marine Energy Centre) and Subsea 7 and people like that are
taking in quite a number of graduates." Moreover, the trend seems to go further: "What you're starting
to find now is that companies lower down the food chain are also beginning to take graduates as well
and training their own and that's something that we maybe haven't seen so much of in the last two
years," explains Fyfe.
"Some of the suppliers too, they're also looking at graduates and I suppose that kind of indicates
where the industry is at in terms of skills because these companies have been very reticent about
taking on graduates, because what they would find is that other companies would take them off them
after a few years and basically poach them."
Poaching employees certainly seems to be an issue that needs a solution sometime soon: "You have
this kind of constant poaching all the way up the food chain towards the operator end," says Fyfe. "I
don't know how the industry can resolve this issue but it's got to think about it."
Certainly poaching is very much at the mindset of owners at the SME (small to medium enterprise)
end of the business and is a hurdle to recruitment.
"It is them that often train these guys in the actual intricacies of the engineering that they do," says
Fyfe. "There's got to be a balance but I don't know how you would ever resolve that issue, because
obviously people have their aspirations and they can't have their trade restricted. I think this
conundrum is perhaps why graduates have struggled to get jobs."
A lack of skills is forcing change in offshore recruitment trends
""One of the limitations that most of the industry has at the moment
is that they can't just buy people in from abroad," says Fyfe."
With uncertainty looming large in the global economy it is not surprising that companies have been
reticent about taking on graduates and training them, but circumstances have caught up with them.
"There are precious few other options," says Fyfe. "There are not enough experienced people out
there and therefore they need to work at training their own."
Of course, the price of oil and gas is volatile and once again they seem to be falling again, after a
period of high prices. In the Hays Oil and Gas Global Job Index for the first quarter of 2012 there is a
note of caution: "If the debt worries in Europe dissipate then we see no barriers to the index rising well
above the 1.39 level we see today.
"However if there are further reverberations in the financial markets and the oil price drops below
US$60/bbl (barrel) then we would expect a sharp decline in the index to below 0.8."
With a comfort zone for many oil producers being a price per barrel of between $80.00 and $100.00
there is, hopefully, a bright future for new graduates to continue to join and prosper in the oil and gas
industry

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