Workers needed in oil fields

FUTURE LOOKS GOOD: Workforce is aging; opportunities abound

The Associated Press

A proposed natural gas pipeline, which could be the largest-ever construction project in North America, would place heavy demands on the oil industry's work force. Plus, existing infrastructure on the North Slope needs maintenance, said Mike Utsler, a senior vice president for BP who oversees the company's operations at Prudhoe Bay.

The oil and gas workforce is aging, with an estimated 40 percent of those in professional occupations eligible for retirement in the next seven years.

Utsler said the North Slope has a slightly younger workforce, where those in mechanical and technical trades average between 48 and 51 years, and professional employees average 43 to 44 years.

BP Alaska has hired 600 people in the last 2 1/2 years, many of whom are recent graduates who could help offset anticipated retirements, Utsler said.

"There is a vast array of opportunities to pursue," Utsler said. "When you look at the next 50 years in Alaska -- what an incredible period of opportunity."

Fresh out of four years in the Air Force, Christy Cadle is hoping an oil and gas job will let her apply her engineering skills and stay in Alaska.

She attended an industry career fair last week at the Carlson Center sponsored by BP. About two dozen other companies, unions and training programs had booths hoping to attract potential employees.

Ryan Smith, recruiting coordinator for UAF's College of Engineering and Mines, said enrollment is up even over last year's high numbers.

"There's a huge market in need of engineers, and there aren't that many engineers out there," Smith said.

Petroleum Engineer's Job Description

This video is a provides a comprehensive overview of the petroleum engineering industry and the job of a petroleum engineer. A must watch video for all those who are interested in doing a major in petroleum engineering.

How to make a drill pipe connection

Making a drill pipe connection is one of the basic jobs of a floor worker or rough-neck. There are two floor workers on the rig floor while pulling and running pipe. The more experienced individual is usually referred to as the lead and operates the lead tong. The second person on the floor operates the back-up tong and may be referred to as the back-up. The floor workers are generally the least experienced members of the crew. Team-work is therefore absolutely essential. The video below demonstrates how to making a perfect connection.

Why petroleum engineers earn big?

Petroleum engineering is a very well paid profession. I have already discussed that matter in my earlier post which you can read here. In this post however I would like to explore some of the reasons that account for the high salaries earned by petroleum engineers around the world.

Oil is black gold

Oil is a very valuable resource. In constitutes the major source of usable energy in the world. In fact the industrial progress of the past 150 years can be credited to the discovery and usage of oil. Petroleum engineers extract this “black gold” and it therefore does not come as a great surprise that they command such high salaries. Oil companies are filthy rich and a small fraction of that money ends up with petroleum engineers.

Inflation of oil prices

Owing to the rise in demand for oil over the last 4-5 years, the oil prices have literally sky-rocketed to a record high. This means even more money for oil companies and hence higher salaries for their employees.

Increasing oil demand

Oil is a non-renewable resource, which means that it is eventually going to get exhausted. What that means in the long term is that oil companies will be out of business and petroleum engineers will be jobless. However that scenario will not happen until the next 50-100 years or so. During the current phase however, the oil will continue become scarce. This should (in theory at least) increase the importance of petroleum engineers. Enhanced recovery methods will have to be employed, to recover the last drops of oil from the reservoir. Deeper wells will have to be drilled in order to discover new oil fields. All this adds up to some serious challenges requiring greater knowledge and expertise. Thus the importance of petroleum engineers will increase which should see them earning even more than before.

Sacrifices

A petroleum engineer on duty has to make many sacrifices to perform their job. Whether it is family commitments or any other special occasion (like Christmas or Eid), there is no room for sentiments. So if you are on duty, missing your friends and family on a New Year’s Eve, you have no alternative except to maybe look ahead to next year. That is one of the reasons why this job this job has a huge salary associated with it, to make it attractive.

Health and Safety

Accidents are a frequent occurrence on a drill site. Injuries happen, people die but life has to go on. That is way it is; if you can’t take the heat, get out of the kitchen. So all you chickens out there do not opt for drilling engineering or related work if you can’t take the rough and tough environment.

The job of a petroleum engineer (whether involved in drilling, reservoir or production) is one of the toughest there is. There is huge investment in the oil industry and the stakes are very high. Hiring and firing is very common in this occupation as a petroleum engineer is expected to work under pressure for long, stringent hours to meet deadlines. On top of that there is safety risk involved primarily for workers on the rig-site. One mistake could cost you a job while in come cases it has cost people their lives. Therefore petroleum engineers deserve to be paid the highest possible salaries.

The derrick worker

The derrick worker works high above the floor when the pipe is being pulled or run during regular operations. This position is commonly referred to as a derrick man.

On most modern rigs, sections of drill pipe are held vertically in a rack along side the derrick awaiting to be added to the drilling string as the bit works its way deeper into the ground. One of the duties of the derrick worker is to handle pipe that is added to or removed from the drill string. Pipe is added as the drill bit cuts deeper into the ground. Pipe is removed as the drill string is pulled from the ground once the drilling is complete or to replace the bit or to deal with a drilling problem. The pipe is raised and lowered with elevators. The pipe is stored between “fingers” in the rack next to a platform referred to as a monkey board.

When the rig is drilling, the derrick worker supervises and assists the two floor workers in maintaining the cleanliness of the rig. The derrick worker generally supervises and assists in equipment repairs and often catches and labels the mud samples. The derrick worker may also operate the draw works to provide the driller with time to fill out reports and perform other duties. This also gives the derrick worker experience in driller duties to prepare for a possible promotion.

Jobs in petroleum engineering

Geologist
The geologist will use the seismic data to reconstruct the subsurface configuration to locate possible sites of oil traps. As the oil is found within porous rock they will also calculate the percentage of oil that could possibly be extracted from the reservoir. The geologist will work closely with the geophysicist.

Geophysicist
The geophysicist will interpret the seismic data and build up the picture of the subsurface by using his or her knowledge of the past changes in the earth's structure. The geophysicist will work closely with the geologist.

Mud Logger
The mud logger, usually a geologist, will inspect and test the drilling fluid, 'mud' and the debris from the well. They will be looking for traces of oil and the different types of rock samples from the well to build up a picture of the subsurface.

Reservoir Engineer
The reservoir engineer will decide from the size and shape of the reservoir, the most appropriate locations for the production wells to be drilled to get optimum recovery of the oil and gas.

Mud Logger
The mud logger, usually a geologist, will inspect and test the drilling fluid, 'mud' and the debris from the well. They will be looking for traces of oil and the different types of rock samples from the well to build up a picture of the subsurface.

Reservoir Engineer
The reservoir engineer will decide from the size and shape of the reservoir, the most appropriate locations for the production wells to be drilled to get optimum recovery of the oil and gas.

Roustabout
This role is generally unskilled manual laboring. The roustabout helps with the drilling activities and maintenance of the drilling area.

RoughnecklFloorman
More skilled than the roustabout, the roughneck/floorman is directly involved in the drilling process under the supervision of the assistant driller. This position involves hard physical work.

Derrickman
Working about 90 feet above the floor of the rig in the 'derrick' (the distinctive high tower), the derrickman handles the section of drill pipe under the direction of the assistant driller.

Assistant Driller
The assistant driller co-ordinates the activities on the drill floor, reports to the driller and communicates instructions and information from the driller to those working on the drilling.

Driller
The driller is responsible for the drilling team and controlling the rate and continuity of the drilling. This is highly skilled as the drill may have to penetrate many different types of rock.

Toolpusher
The toolpusher oversees the drilling operations at night. He also ensures that the necessary equipment and materials are available.

Rig Superintendent
The rig superintendent has overall responsibility for the drilling operation.

Drilling Engineer
The drilling engineer specifies the drilling program, what kind of 'mud' should be used and the
casing required for the well.

The installations used in the process of extracting oil and gas, whether fixed operating platforms, mobile drilling rigs, or the modern floating production storage and offloading vessels, all require a variety of personnel whose role is to manage and maintain the day to day operations of offshore life. Being cut off from land, sometimes by hundreds of miles of sea, an oil installation is more than just a workplace. Many roles in the offshore environment are concerned with living conditions rather than direct oil production. Given the proximity of colleagues on the installation, good team-based working practices are essential.

Offshore Installation Manager
The Offshore Installation Manager, or OIM, has overall responsibility for the activities offshore. This position is sometimes compared to that of a ship's captain.

Radio Operator
The radio operator will control all movements of the helicopters, passengers and freight. He or she will also communicate with shipping in the area.

Crane Operator
Responsible for the loading and offloading of cargo, the crane operator works high above the sea and the movements of the vessels means that the work calls for a high degree of accuracy.

Chef
The chef will provide the crew with a variety of meals from breakfasts at 5 am until late suppers at 1 am.

Steward
The stewards ensure that the cabins and all the accommodations of the installation are cleaned and maintained.

Divers
The divers inspect and maintain the subsea structures. Technological advances mean that remotely operated equipment is being used more and more.

Medics
The medic will deal with the day to day well-being of all the offshore personnel.

Storeman
The storeman is responsible for ordering all the necessary equipment and supplies for the operation of the installation.

Choosing a career in petroleum engineering

Petroleum engineering refers to the subsurface engineering activities related to the production of hydrocarbons, which can be either crude oil or gas. These activities are deemed to fall within the upstream sector of the oil and gas industry which are the activities of finding and producing hydrocarbons prior to the point of refining or distribution to a market, which is referred to as the downstream sector. Petroleum engineers divide themselves into several types:

Reservoir engineers work to optimize production of oil and gas via proper well placement, production levels, and enhanced oil recovery techniques. Of particular interest to reservoir engineers is generating accurate reserves estimates for use in financial reporting to the SEC and other regulatory bodies. Other job responsibilities include numerical reservoir modeling, production forecasting, well testing, well drilling and workover planning, economic modeling, and PVT analysis of reservoir fluids. Reservoir engineers also play a central role in field development planning, recommending appropriate and cost effective reservoir depletion schemes such as water-flooding or gas injection to maximize hydrocarbon recovery.

Drilling engineers manage the technical aspects of drilling both production and injection wells. The planning phases involved in drilling an oil well typically involve estimating the value of sought reserves, estimating the costs to access reserves, acquiring property by a mineral lease, a geological survey, a well bore plan, and a layout of the type of equipment required to reach the depth of the well. Drilling engineers are in charge of the process of planning and drilling oil wells. Their responsibilities include:

• Designing casing strings in conjunction with drilling fluid plans to prevent blowouts (uncontrolled well-fluid release) and Formation evaluation.
• Designing or contributing to the design of casing (drill string), cementing plans, directional drilling plans, and drill bit programs.
• Specifying equipment, material and ratings and grades to be used in the drilling process.
• Providing technical support and audit during the drilling process.
• Performing cost estimates and analysis
• Developing contracts with vendors

Production engineers manage the interface between the reservoir and the well, including perforations, sand control, artificial lift, downhole flow control, and downhole monitoring equipment; they also select surface equipment that separates the produced fluids (oil, natural gas, and water).

How much do petroleum engineers earn?

Petroleum engineers are one of the best paid professionals around. In order to give you some idea of what petroleum engineers are worth, i would like to quote the salaries reported by the SPE members in a salary survey conducted by Western Management Group for the SPE. More than 10,000 SPE members participated in the 2007 survey.

The results showed the average base salary of respondents worldwide was USD 122,458, an increase from the USD 116,834 in the 2006 survey. Additional compensation, such as bonuses, housing allowances, car allowances, and retirement contributions raised total average compensation for 2007 to USD 167,712. The chart below illustrates the regional differences observed in base salary and total compensation. On average, SPE members reported receiving an 8.3% increase in base pay. The average age of respondents was 43 and the average number of years in the industry was 18.

Now all these numbers are really exciting for the students and young professionals embarking a career in this field. However i would like to advise all of my colleagues to keep their feet firmly on the ground. Because at the end of the day you are paid for what you are worth. It takes a lot of dedication, motivation and sacrifices to reach the top no matter how intelligent and talented you may be. Therefore although i am pleased to know that my potential future income could be as high as USD 122,458 p.a., i also realize that i need to be worthy of receiving such a salary.

You can download the highlights of the 2007 SPE salary survey (in pdf format) from here. The full report can be purchased from the SPE website.