Professional Documents
Culture Documents
This paper was prepared for presentation at the SPE Annual Technical Conference & Exhibition originally scheduled to be held in Denver, Colorado, USA, 5 – 7
October 2020. Due to COVID-19 the physical event was postponed until 26 – 29 October 2020 and was changed to a virtual event. The official proceedings were
published online on 21 October 2020.
This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents
of the paper have not been reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect
any position of the Society of Petroleum Engineers, its officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written
consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may
not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.
Abstract
Petroleum Engineers and Geoscientists are trained to offer substantive expertise in engineering the
development of subsurface natural resources and the management of their production for commercial
use. These professionals, by their educational training and experience, have specialized knowledge of
subsurface geology, drilling, well completion, subsurface reservoir characterization, reservoir management,
and production operations. They are the most qualified to take on the tasks of locating, mapping, selecting,
monitoring, testing, and managing such operations. These professionals have experienced the pains and
rewards of past several price cycles of oil and gas. The dependence of their employment opportunity on the
inherent volatility of oil and gas prices has created extended periods of employment and career uncertainty,
Adams-Heard, Rachel and Saraiva, Catarina: (2020). However, as we look to the future, new opportunities
may be evolving for these professionals. In this paper, we will frame our discussion of the evolving nature
of the career opportunities for petroleum engineers and geoscientists in the context of three key dimensions:
– The Digital Transformation of the industry.
– Changing educational requirements for petroleum engineering and geoscience.
– Expanding career opportunities for petroleum engineers and geoscientists.
The transformation taking place in oil and gas operations by digital technologies is perhaps the clearest
example of both new opportunities and new challenges being presented to petroleum engineers and
geoscientists. The content knowledge, specific expertise, and experience are essential for the successful
application of rapidly advancing digital technologies, while at the same time displacing many traditional
technical functions. The ongoing energy transition will alter the mix of future energy sources, and changes
in supply and demand will like to continue the era of price volatility; however, hydrocarbons will continue to
be a primary source of supply for the world's fuel and power needs. Critical domain expertise will continue
to be needed for developing, operating, and abandoning oil and gas resources for many decades to come.
The transformation of the energy supply chain will also create new opportunities, such as the re-purposing
of subsurface structures to make them suitable for the storage of energy products or for the safe disposal of
waste. The expertise need will heavily rely on this brand of graduates.
2 SPE-201423-MS
This includes issues related to subsurface storage of natural gas, oil, and compressed air, hydrogen, and
disposal of carbon dioxide and further focuses on the recovery of geothermal fluids as a non- hydrocarbon
source of energy. Additionally, these subsurface specialists can help with managing the recovery of fresh
subsurface waters for many communities. The future is also like to see the use of hydrocarbons as feedstocks
for advanced industrial materials. In this study, we also discuss the role that the companies and government
organizations can play to ensure attracting talent and maintaining the educational institutions essential for
the professional development of subsurface experts who can address these important and evolving areas.
Introduction
Historically, graduates in petroleum engineering and geosciences have been among the best-paid
professionals in the U.S. industry. Starting salaries, for example, have often been a specific attractor
to the petroleum industry for many engineering students. Their expertise in exploration, extraction, and
production of oil and gas and geothermal resources has helped supply the world's energy needs. The
subsurface specialist typically works on drilling, completion, production, and reservoir management tasks
and subsurface mapping and evaluation methods. Petroleum engineers and geoscience specialists have
contributed to the evolution of the shale boom in the United States and Canada. Petroleum engineering
and geoscientists also keep the world running by bringing to surface the source materials medical, plastics,
and textile industries manufacturers need to produce several hundred products. The capabilities offered by
these specialists have been amazing. The operation has become more technical with drilling deeper wells,
ultra-long reach horizontal wells, high-precision multi-lateral wells, all while dealing with higher pressures
and temperatures and operating under increasingly stringent environmental regulations. Petroleum and
subsurface specialists offer expertise on finding oil, geothermal fluid beneath the earth's surface and evaluate
whether they have economic potential for recovery, transportation, and storage. Their input is essential to
determine if the effort of extracting the resources will make economic sense. Besides extracting energy and
mineral resources from subsurface reservoirs and managing resources, their contribution includes designing
and developing methods for environmental safety issues during production and after the abandonment stage.
Their role is essential in devising the most efficient way to extract subsurface resources via drilled wells by
optimizing drilling and completion issues. In summary, this brand of experts is vital to today's economies.
With a key blend of educational knowledge and field experience, they make the drilling, completion, and
production of subsurface resources safer and more efficient. They abide by compliance laws ensuring the
safest and best practices, established standards, environmental, and safety regulations. Their contribution
has helped U S move into a direction of energy independence.
The global energy system is evolving and diversifying, including a drive for a lower carbon intensity
and scaled-up production of renewable energy sources. But hydrocarbon resources are still essential for
transportation fuels, baseload grid power, and as source materials in many different industrial sectors. The
focus of discussion is what can be done to preserve the expertise required to sustain the petroleum industry.
There is a historical and expected correlation between benchmark oil prices and upstream petroleum industry
employment opportunities. Oil prices drive upstream cash flow and capital investment levels, which in
turn directly impacts the level of drilling and resource development project activity. As industry activity
levels grow in the "booms," it makes the demand for the knowledge and services of petroleum engineers
and geoscientists. Typically, this translates into increased demand for new university graduates with the
education and expertise needed by the industry. This related correlation can be be seen in Figure 1, which
shows the response of petroleum engineering enrollments to oil price variation since 1972. We can also
see from Figure 1 that enrollment trends lag the changes in oil prices and the financial state of industry
investment, Heinze et al. 2019.
SPE-201423-MS 3
The current industry downturn continues to reflect the long historical trend of booms and busts, as it
is still oilfield economics that determines major capital expenditures by the energy industry that affects
employment stimulation. The current downturn, however, has been amplified by the significant decline in
global oil demand due to the Covid-19 pandemic. While supply and demand will return to balance, these
cycles have created extended periods of industry unemployment for engineers and geoscientists as operators
and service companies pare their professional staff levels to match industry investment levels. This current
cycle of low oil prices and uncertain demand has drastically changed the industry employment levels and,
in turn, changed the opportunity landscape for new petroleum engineering and geoscience graduates. Other
fundamental trends are also impacting industry employment and career opportunities, as we will discuss.
We live in an age where rapid changes are significantly affecting the supply, demand, and structure for
the workforce across almost all industries. A fundamental transition of the modern economy is underway as
the result of major advances in digital technologies and information sciences, A.I. (Artificial Intelligence),
and robotics. Significant impacts are being seen across a broad swath of the manufacturing and service
sectors. We contend that the nature of the oil and gas industry, with its history of utilizing digital information
and its sensitivity to capital and operating costs, is particularly amenable to this Digital Transformation.
The challenge of this transformation is also matched with a broad set of new opportunities for petroleum
engineers and geoscientists who can transition their own expertise and capabilities. As pointed out by
Rapacon (2019), there will be a decline in demand and or transformation for many traditional professions.
With these changes in market conditions, predictions have been made that some professions, including some
specialized forms of engineering, maybe severely impacted or even cease to exist. For example, we have
also seen the virtual elimination of textile engineering and the sharp decline in demand in mining and nuclear
engineering over the past several decades. We will discuss further the implications for petroleum engineers
and geoscientists. For the U.S., as indictaed by Blotnicky et al. (2018), there is also the disconcerting trend
that overall, there is a drop of interest among high schoolers to pursue STEM careers, although interest in
4 SPE-201423-MS
computer science remains relatively stable. It is essential for SPE as a professional engineering society to
communicate to the population of U.S. high school students that engineering broadly is an exciting and
rewarding career choice. Engineers with a brilliant mind can make a world of difference to society and can
fundamentally change the shape of the future. Combining a drop in the level of engineering graduates and
with the retirement of the existing engineering workforce, all point to the direction that the demand for
engineers must become high. The question here is whether some fields of engineering will also cease to
exist, We need to discuss if there will be a drastic change in demand for engineering and particularly for
petroleum engineering and subsurface specialist and is there a need on a state and national level help to
recruit students and ensure a healthy supply of such specialists.
In this paper, while we specifically focus on education and workforce issues as they relate to the U.S. oil
and gas industry, some of the fundamental trends and issues may also apply to other producing countries,
however, who may find some relevance to their specific cases. In the context of both the current industry
downturn and the ongoing digital transformation, we will first discuss the transformation in university
education and training needed in petroleum engineering and geoscience to ensure that new graduates
are more aligned to the current employment market realities and to position themselves for the future
opportunities of a digitally transformed oil and gas industry. Second is the role of the operating companies,
government agencies, and the society at large to recognize the importance of subsurface engineering experts
as a critical workforce to ensure environmental safety and economic security of the nation. This also means
ensuring adequate supplies of these specialists in the workforce. While in the long term, the state and federal
governments may recognize the risk and provide employment cushions for these specialists. The third issue
is a roadmap of what these specialists can do in the short term and in situations when the employment
conditions for subsurface engineering are not optimal in the oil and gas and associated service companies
and government agencies.
follow a similar methodology, we know that subsurface engineering requires engineers and geoscientists to
have a well-developed understanding of risk to develop and execute a field development plan. We know
that the information abundance per se does not necessarily mean certainty. The abundance of information
can lead to a sense of overconfidence that can lead to improper application of information. It takes an
expert understanding of recognizing an information deficiency assessment by evaluating them in terms of
relevance, completeness, consistency, and other considerations. If we define uncertainty as predicting the
future based on the physical measurements, both the information limitation and abundance and ignorance
can contribute to a sense of uncertainty. One needs to be concerned about the limited capacity of the human
mind to deal with complexity and information deficiency. Computers can bring about access to historical
databases but cannot handle a higher order of knowledge deficiency or ignorance. Part of the educational
training of these petroleum engineering and geoscience expertise is handling risk with limited information.
Preserving the supply and maintaining the domestic production is to the benefit of the national security
interest of the U S. With the past major investment in the development of renewables, we are still decades
away before we can have an affordable non-oil and gas-based substitution for motor fuels, jet fuels,
and other petroleum-derived products. Even then, we need subsurface specialists to manage subsurface
energy storage, well abandonment, and site management. Well, and field abandonments are definitely areas
where input from petroleum engineers and geoscientists is necessary for long term environmental safety.
In summary, the state and federal governments’ roles in cushioning the employment issues needs to be
recognized.
The COVID-19 experience has shown that the country and the economy can be extremely vulnerable to
these unpredicted disruption-causing effects. It has truly been very alarming as to how a disruption caused
by health concerns affects the way we conduct the economy. It can destroy jobs, professions, and businesses
and become a major national liability. The availability of affordable energy is the cornerstone of economic
viability. The heath industries, I.T. industries, and transportation all need reliable and affordable sources of
energy. Currently, even a limited disruption in the oil and gas supply can also have had similarly devastating
effects as a crisis. Oil and gas for the foreseeable future will constitute a major part of the energy basket.
can lead them in fluid transportation industries, including midstream oil and gas operations. Because they
know subsurface geology and that can also lead them in geological engineering related to soil properties
and foundation work. They know economics, and that can be an asset to the investment industry, they know
drilling and that can lead them to join in water well drilling companies, they know thermodynamic, and that
can help them to work for many manufacturers. Of course, they can always teach in high schools or junior
colleges, depending on their qualifications. Granted that the salaries are not as much as they can earn, in oil
and gas jobs, but these alternatives can be available to pass through the storms. Once the graduates recognize
their engineering and computational skills, they can find new directions to offer their expertise. We believe
it is an essential new responsibility of our petroleum engineering educational programs to actively engage
with our students, with a much broader set of industry and government, to help them expand their career
horizons. We give a specific example of the opportunities for new applications of petroleum engineering
and geoscience expertise in the following example on geological storage.
Conclusions
in this paper, we have argued that the competencies and expertise provided by petroleum engineers and
geoscientists are essential components in providing economic well-being and for the national security for
SPE-201423-MS 9
the U.S. through the support of a robust oil and gas industry. We have emphasized the need to evolve our
petroleum engineering and geoscience educational programs to ensure that these specialized knowledge
graduates are positioned to meet the market realities of today's oil and gas industry. The graduates need to
know how to integrate the digital technologies of today and tomorrow and be flexible enough to move into
new application areas of their expertise. Industry and governments have intersecting roles in the successful
and sustainable management of our natural resources and the security of our energy supply system. As
such, there can be a role for state and federal governmental agencies to play in supporting recruiting, the
education and employment of petroleum engineering and geoscientists where their expertise and experience
can be more broadly applied for societal benefit. Besides the fundamental training in Data Science areas,
the schools need to include components that help the graduates to realize the value of their expertise in
other fields such as environmental safety, subsurface storage, and groundwater hydrology. An expansion
of this employment pathway could also aid in the stabilization and diversification of careers for petroleum
engineers and geoscientists and to ensure their critical capabilities are maintained for the benefit of the
society.
References
Adams-Heard, Rachel and Saraiva, Catarina: (2020), Crude's crash sees college grads giving up on oil and gas careers,
World Oil 5/7/2020.
Blotnicky, Karen, Franx-Odendaal, Tamera, French, Fedrick and Joy, Phillip: (November 2018), A study of the correlation
between STEM career knowledge, mathematics self-efficacy, career interests, and career activities on the likelihood of
pursuing a STEM career among middle school students, International Journal of STEM Education 5(1), doi: 10.1186/
s40594-018-0118-3.
Bobo, J. E., & Reece, C.: (1999), The Advancement of the Petroleum Engineering Professional: Establishment of
Professional Competency Guidelines. Society of Petroleum Engineers. doi: 10.2118/56603-MS.
Ershaghi, I., & Omoregie, Z. S. (2005, January 1). Continuing-Education Needs for the Digital Oil Fields of the Future.
Society of Petroleum Engineers. doi: 10.2118/97288-MS.
Ershaghi, I., Paul, D., Hauser, M., Crompton, J., & Sankur, V. (2016, September 6). CiSoft and Smart Oilfield
Technologies. Society of Petroleum Engineers. doi: 10.2118/181068-MS.
Ershaghi, I., & Paul, D. L. (2017, October 9). The Changing Shape of Petroleum Engineering Education. Society of
Petroleum Engineers. doi: 10.2118/187115-MS.
Feder, J. (2019, December 1). As Industry Changes, So Does Petroleum Engineering Education. Society of Petroleum
Engineers. doi: 10.2118/1219-0044-JPT
Heinze, L., Menouar, H., Watson, M., & Gamadi, T.: (2019), Petroleum Engineering Enrollment: Past, Present and Future.
Society of Petroleum Engineers. doi: 10.2118/195908-MS.
Kühna, Michael, Streibelb, Martin, Nakatena, Natalie and KempkaaThomas: (2014), Integrated underground gas storage
of CO2 and CH4 to decarbonize the "power-to-gas-to-gas-to-power" technology European Geosciences Union General
Assembly 2014, EGU 2014.
Langley, D. (2006). Shaping the Industry's Approach to Intelligent Energy. Society of Petroleum Engineers. doi:
10.2118/0306-0040-JPT.
Liu, J.X., Goryakin, Y., Maeda, A. et al.: (2917), Global Health Workforce Labor Market Projections for 2030. Hum
Resour Health 15, 11 -https://doi.org/10.1186/s12960-017-0187.
Maa, Jianli, Lia, Qi, Kühnc, Michael and Nakaten, Natalie: (2018), Power-to-gas based subsurface energy storage: A
review -Renewable and Sustainable Energy Reviews 97, 478–496.
McCartney, John S., Sánchez, Marcelo, Tomac, Ingrid: (May 2016), Energy geotechnics: Advances in subsurface energy
recovery, storage, exchange, and waste management, Computers and Geotechnics, Volume 75, Pages 244–256.
Rapacon, Stacy: (2019), 20 Worst Jobs for the Future: Keplinger.com.
Shi, Zhuofan, Jessen, Kristian and Tsotsis Theodore T.: (2002), Impacts of the subsurface storage of natural gas and
hydrogen mixtures International Journal of Hydrogen Energy (IF 4.939) Pub Date: 2020-02-04, DOI: 10.1016/
j.ijhydene.2020.01.044.
Swantek. D.:(207) https://eesa.lbl.gov/wp-content/uploads/2017/02/Subsurface-Energy-Storage-150x150.jpg.
Unneland, T., & Hauser, M. K. (2005, January 1). Real-Time Asset Management: From Vision to Engagement-An
Operator's Experience. Society of Petroleum Engineers. doi: 10.2118/96390-MS.