Even as energy demand skyrockets, the global production of oil and natural gas will be hampered in the coming years because of a shortage of engineers and other project managers, a new report says.
By 2010, companies trying to produce hydrocarbons can expect to find between 10 percent and 15 percent fewer engineers than they need, according to a survey by Massachusetts-based Cambridge Energy Research Associates (CERA).
CERA's report, being released this week, is based on an analysis of engineering and management needs for more than 400 projects expected to begin worldwide in the next five years.
"Pressure in the industry continues to increase as companies vie for the limited pool of skilled resources, and personnel costs rise as companies recruit from each other," said Pritesh Patel, a CERA associate director and co-author of the report.
Engineers are vital to the search for and production of oil and gas, a process that has become more complicated in recent years as companies explore and drill in deeper waters and more rugged terrain.
Petroleum engineers, for instance, evaluate potential oil and gas reservoirs, work with geologists and other specialists to understand rock formations and monitor drilling and recovery operations. One of their big tasks is to design methods that achieve maximum recovery of oil and gas.
Bustling oilfield activity and retiring baby boomers, among other factors, have petroleum outfits large and small trying to hire thousands of engineers, and experts say the trend is expected to extend into the next decade as worldwide energy demand grows.
CERA said engineering contractors in a few years will need more than 55,500 engineers to meet the requirements of the 400 projects studied.
The firm surveyed global engineering contractors and found a current base of 55,100 engineers involved in exploration and production activities. But with an average age of 51, more than half of those engineers are expected to retire by 2015 CERA forecasts.
Meanwhile, the rate of new entrants is expected to be from 2 percent to 5 percent.
Petroleum executives acknowledge the dearth of qualified personnel, but they say the picture is getting brighter. College enrollment numbers are improving as the industry aggressively touts the potential for challenging work, exotic postings and starting annual salaries at US$70,000.
In addition, the industry is adapting to meet its commitments, the report says. For example, some oil firms and their contractors and subcontractors are considering partnering on projects and profit-sharing arrangements as a way to secure adequate engineering resources, CERA said.
MORE VISITORS: The Tourism Administration said that it is seeing positive prospects in its efforts to expand the tourism market in North America and Europe Taiwan has been ranked as the cheapest place in the world to travel to this year, based on a list recommended by NerdWallet. The San Francisco-based personal finance company said that Taiwan topped the list of 16 nations it chose for budget travelers because US tourists do not need visas and travelers can easily have a good meal for less than US$10. A bus ride in Taipei costs just under US$0.50, while subway rides start at US$0.60, the firm said, adding that public transportation in Taiwan is easy to navigate. The firm also called Taiwan a “food lover’s paradise,” citing inexpensive breakfast stalls
TRADE: A mandatory declaration of origin for manufactured goods bound for the US is to take effect on May 7 to block China from exploiting Taiwan’s trade channels All products manufactured in Taiwan and exported to the US must include a signed declaration of origin starting on May 7, the Bureau of Foreign Trade announced yesterday. US President Donald Trump on April 2 imposed a 32 percent tariff on imports from Taiwan, but one week later announced a 90-day pause on its implementation. However, a universal 10 percent tariff was immediately applied to most imports from around the world. On April 12, the Trump administration further exempted computers, smartphones and semiconductors from the new tariffs. In response, President William Lai’s (賴清德) administration has introduced a series of countermeasures to support affected
CROSS-STRAIT: The vast majority of Taiwanese support maintaining the ‘status quo,’ while concern is rising about Beijing’s influence operations More than eight out of 10 Taiwanese reject Beijing’s “one country, two systems” framework for cross-strait relations, according to a survey released by the Mainland Affairs Council (MAC) on Thursday. The MAC’s latest quarterly survey found that 84.4 percent of respondents opposed Beijing’s “one country, two systems” formula for handling cross-strait relations — a figure consistent with past polling. Over the past three years, opposition to the framework has remained high, ranging from a low of 83.6 percent in April 2023 to a peak of 89.6 percent in April last year. In the most recent poll, 82.5 percent also rejected China’s
PLUGGING HOLES: The amendments would bring the legislation in line with systems found in other countries such as Japan and the US, Legislator Chen Kuan-ting said Democratic Progressive Party (DPP) Legislator Chen Kuan-ting (陳冠廷) has proposed amending national security legislation amid a spate of espionage cases. Potential gaps in security vetting procedures for personnel with access to sensitive information prompted him to propose the amendments, which would introduce changes to Article 14 of the Classified National Security Information Protection Act (國家機密保護法), Chen said yesterday. The proposal, which aims to enhance interagency vetting procedures and reduce the risk of classified information leaks, would establish a comprehensive security clearance system in Taiwan, he said. The amendment would require character and loyalty checks for civil servants and intelligence personnel prior to
RSS