World Systems Framework for Oil and Gas Industry 11

United  States was up 28% from 2011 to 2012 while gas-focused drilling
rose by 1.4% over the same period. The Marcellus Shale, a layer of rock that
stretches from upstate New York to eastern Ohio and as far south as West
Virginia, may be a major source of natural gas in the future. The Marcellus
Shale has been known for more than a century to contain gas, but it was
generally not seen as economical to tap. Recent improvements in recovery
technology, sharply higher natural gas prices, and strong drilling results
in a similar shale formation in north Texas are changing the playing field
of oil and gas exploration. It has been confirmed that parts of the country
where energy supplies were long thought to be largely depleted are sud-
denly finding a new lease on exploration life cycle. The oil and gas indus-
try is already aggressively buying mineral rights in Pennsylvania, where
the Marcellus Shale appears to be thickest. It is estimated that more than
20 oil and gas companies will invest $700 million in 2012 in developing
the Marcellus Shale. This bodes well for the application of systems-based
project management tools and techniques. Another confirmation of the
interconnectedness of markets is the 2012 report linking the sharp rise in
the sale of pickup trucks to the increased activities in oil and gas explora-
tions. Apparently, the caliber of those working or seeking employment
in the oil and gas industry is in alignment with those who drive pickup
trucks. The most likely type of vehicle to be spotted in the parking lot of
oil and gas companies are pickup trucks, which is coveted in that industry
for their rugged dependability.

Education and Workforce Development Issues

There is no other industry that is so global and aggressive in educational
programs and workforce development as the oil and gas industry. The indus-
try itself is large with operational tentacles reaching all parts of the world.
The most aggressive nations pursuing oil and gas education and workforce
development are the developing nations with newly discovered reserves.
The resource-rich developing nations produce more oil and gas graduates
than the United States and Europe. This large and steady supply of petro-
leum graduates from the developing nations is helping to mitigate the over-
all shortage of technical workforce for the industry. The nations are, thus,
chipping away at the educational advantage typically held by Western coun-
tries. Traditionally, the top U.S. schools such as the University of Oklahoma
and Texas A&M had provided most of the world’s petroleum graduates. But
in recent years, Brazil, Argentina, Nigeria, and other nations are making dra-
matic inroads into the production of petroleum graduates. While many of the
new graduates are employed by Western oil and gas companies, many are
also joining their nation-based companies. A key part of the education and