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.
MISINFORMATION: The generated content tends to adopt China’s official stance, such as ‘Taiwan is currently governed by the Chinese central government,’ the NSB said Five China-developed artificial intelligence (AI) language models exhibit cybersecurity risks and content biases, an inspection conducted by the National Security Bureau (NSB) showed. The five AI tools are: DeepSeek, Doubao (豆包), Yiyan (文心一言), Tongyi (通義千問) and Yuanbao (騰訊元寶), the bureau said, advising people to remain vigilant to protect personal data privacy and corporate business secrets. The NSB said it, in accordance with the National Intelligence Services Act (國家情報工作法), has reviewed international cybersecurity reports and intelligence, and coordinated with the Ministry of Justice Investigation Bureau and the National Police Agency’s Criminal Investigation Bureau to conduct an inspection of China-made AI language
BOOST IN CONFIDENCE: The sale sends a clear message of support for Taiwan and dispels rumors that US President Donald Trump ‘sold out’ the nation, an expert said The US government on Thursday announced a possible sale to Taiwan of fighter jet parts, which was estimated to cost about US$330 million, in a move that an expert said “sends a clear message of support for Taiwan” amid fears that Washington might be wavering in its attitude toward Taipei. It was the first announcement of an arms sale to Taiwan since US President Donald Trump returned to the White House earlier this year. The proposed package includes non-standard components, spare and repair parts, consumables and accessories, as well repair and return support for the F-16, C-130 and Indigenous Defense Fighter aircraft,
CHECKING BOUNDARIES: China wants to disrupt solidarity among democracies and test their red lines, but it is instead pushing nations to become more united, an expert said The US Department of State on Friday expressed deep concern over a Chinese public security agency’s investigation into Legislator Puma Shen (沈伯洋) for “secession.” “China’s actions threaten free speech and erode norms that have underpinned the cross-strait ‘status quo’ for decades,” a US Department of State spokesperson said. The Chongqing Municipal Public Security Bureau late last month listed Shen as “wanted” and launched an investigation into alleged “secession-related” criminal activities, including his founding of the Kuma Academy, a civil defense organization that prepares people for an invasion by China. The spokesperson said that the US was “deeply concerned” about the bureau investigating Shen
LIMITS: While China increases military pressure on Taiwan and expands its use of cognitive warfare, it is unwilling to target tech supply chains, the report said US and Taiwan military officials have warned that the Chinese People’s Liberation Army (PLA) could implement a blockade within “a matter of hours” and need only “minimal conversion time” prior to an attack on Taiwan, a report released on Tuesday by the US Senate’s China Economic and Security Review Commission said. “While there is no indication that China is planning an imminent attack, the United States and its allies and partners can no longer assume that a Taiwan contingency is a distant possibility for which they would have ample time to prepare,” it said. The commission made the comments in its annual
RSS