Engineering education, in general, has been undergoing significant changes in recent years with the arrival of groundbreaking technology. Because of this technological revolution, globalization of the economy, and changing perspective on energy issues, the education of petroleum engineers needs to evolve to meet the challenges of the future petroleum industry. The petroleum industry has become more service oriented and diversified than ever before. This will lead to the role of an engineer as a creator of public goods, which are not necessarily tangible, as warranted by the industry. The objectives of this study are to identify the critical challenges facing petroleum engineering education today, to analyze the vision of petroleum engineering in future, and to develop a plan to meet the future educational challenges. The tools available for petroleum engineering education in the past and in the present are reviewed, and those expected to dominate the 21st century are analyzed. The impact of new technological devices on the delivery, quality, scope, and recipient of petroleum education is critically evaluated. The evolving shift in learning model from a traditional, school based one to a non-conventional, virtual one is discussed. The areas of petroleum engineering education that need improvement are highlighted. It is clear that engineering education will be challenged as never before to shape the nature and quality of life in the new millennium. Engineering education must be proactive to meet these challenges.