Guest editorial

During the last 3–5 years, one of the top priorities and challenges for the oil and gas industry has been trying to find the next generation of petroleum engineers, driven by the increasing demand for oil and gas and the aging workforce. And a related concern is how the industry will transfer the knowledge from its experienced professionals to the new entrants.

 Responding to the looming “big crew change” that will result from the retirement of so many petroleum professionals in the next few years, universities have increased enrollment in petroleum engineering departments. US petroleum engineering departments are now producing more graduates than at any time in the last 20 years (Table 1, Fig. 1). Similarly, the number of graduates in petroleum engineering has increased worldwide. Petroleum engineering department heads at US universities have shared enrollment data that indicate total enrollment has leveled off. Many universities are capping enrollment as a result of restrictions on space and the number of professors who are teaching. We expect the number of total graduates in 2011 and beyond to hover around 1,000–1,200.

No one counted on a global economic recession that has caused many experienced professionals to postpone their retirement, delaying the long-anticipated “brain drain.” With lower revenues, companies have reduced or put a hold on recruiting new graduates.

The result is that the number of jobs being offered to new graduates is being reduced just as the pool of graduates has been enlarged. In 2009, more than 90% of petroleum engineering graduates of US schools were offered jobs or went to graduate school. According to feedback from the US department heads, the 50 oil and gas companies that recruited on campus in 2008 and 2009 are estimating that they will hire only approximately 70% of available graduates in 2010, leading to an estimated 300 graduates needing jobs. Company reports and information from WorldWideWorker.com, which provides the job board for SPE student members, also confirm that global hiring plans for new graduates are expected to be substantially lower in 2010.

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