introduction to petroleum engineering

							"Petroleum Engineering Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

Petroleum Engineering Overview

Overview - The Field - Preparation - Day in the Life - Earnings -

Employment - Career Path Forecast - Professional Organizations

Overview

Petroleum engineers search the world for reservoirs

containing oil or natural gas. Once these resources are

discovered, petroleum engineers work with geologists and

other specialists to understand the geologic formation and

properties of the rock containing the reservoir, determine the

drilling methods to be used, and monitor drilling and

production operations. They design equipment and processes

to achieve the maximum profitable recovery of oil and gas.

Petroleum engineers rely heavily on computer models to

simulate reservoir performance using different recovery techniques. They also use computer

models for simulations of the effects of various drilling options.

Because only a small proportion of oil and gas in a reservoir will flow out under natural forces,

petroleum engineers develop and use various enhanced recovery methods. These include

injecting water, chemicals, gases, or steam into an oil reservoir to force out more of the oil, and

computer-controlled drilling or fracturing to connect a larger area of a reservoir to a single well.

Because even the best techniques in use today recover only a portion of the oil and gas in a

reservoir, petroleum engineers research and develop technology and methods to increase

recovery and lower the cost of drilling and production operations.

The Field

The word petroleum generally refers to crude oil or the refined products obtained from the

processing of crude oil (gasoline, diesel fuel, heating oil, etc.) We
find petroleum products in every area of our lives. They are easily

recognized in the gasoline we use to fuel our cars and the heating

oil we use to warm our homes. Less obvious are the uses of

petroleum-based components of plastics, medicines, food items,

and a host of other products.

The United States consumes over 20 million barrels (840 million

gallons) of petroleum products each day, almost half of it in the

form of gasoline used in over 200 million motor vehicles with

combined travel over 7 billion miles per day. "Petroleum Engineering Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

Gasoline is made from crude oil, which was formed from the remains of tiny aquatic plants and

animals that lived hundreds of millions of years ago. These remains were covered with layers

of sediment, which over millions of years of extreme pressure and high temperatures became

the mix of liquid hydrocarbons (an organic chemical compound of hydrogen and carbon) that

we know as crude oil. Because crude oil is made up of a mixture of hydrocarbons, refineries

break down these hydrocarbons into different products. These "refined products" include

gasoline, diesel fuel, heating oil, jet fuel, liquefied petroleum gases, residual fuel oil, and many

other products.

Refining Basics

The most basic refining process is aimed at separating the

crude oil into its various components. Crude oil is heated and

put into a still -- a distillation column -- and different

hydrocarbon components boil off and can be recovered as

they condense at different temperatures. Additional processing

follows crude distillation, changing the molecular structure of

the input with chemical reactions, some through variations in

heat and pressure, some in the presence of a catalyst, a
substance that increases the rate of a chemical reaction without being consumed in the

reaction.

The characteristics of the gasoline produced depend on the type of crude oil that is used and

the setup of the refinery at which it is produced. Gasoline characteristics are also impacted by

other ingredients that may be blended into it, such as ethanol. The performance of the gasoline

must meet industry standards and environmental regulations that may depend on location.

Distribution

After crude oil is refined into gasoline and other petroleum

products, the products must be distributed to consumers. The

majority of gasoline is shipped first by pipeline to storage

terminals near consuming areas, and then loaded into trucks

for delivery to individual gas stations. Gasoline and other

products are sent through shared pipelines in "batches." Since

these batches are not physically separated in the pipeline,

some mixing or "commingling" of products occurs. This is why

the quality of the gasoline and other products must be tested as they enter and leave the

pipeline to make sure they meet appropriate specifications. Whenever the product fails to meet

local, state, or federal product specifications, it must be removed and trucked back to a refinery

for further processing.

After shipment through the pipeline, gasoline is typically held in bulk storage terminals that

often service many companies. At these terminals the gasoline is loaded into tanker trucks

destined for various retail gas stations. The tanks in these trucks, which can typically hold up to

10,000 gallons, usually have several compartments, enabling them to transport different

grades of gasoline or petroleum products. The truck tank is where the special additive

packages of gasoline retailers get blended into the gasoline to differentiate one brand from

another. In some areas, ethanol may be "splash blended" in the tanker to meet environmental

requirements. When the tanker truck reaches a gas station, the truck operator unloads each
grade of gasoline into the appropriate underground tanks at the station. "Petroleum Engineering
Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

Oil Sources

Crude oil is a smelly, yellow-to-black liquid and is usually found in underground areas called

reservoirs. Scientists and engineers explore a chosen area by studying rock samples from the

earth. Measurements are taken, and, if the site seems promising, drilling begins. Above the

hole, a structure called a 'derrick' is built to house the tools and pipes going into the well. When

finished, the drilled well will bring a steady flow

of oil to the surface.

The world's top five crude oil-producing

countries are: Saudi Arabia, Russia, United

States, Iran, and China. Over one-fourth of the

crude oil produced in the United States is

produced offshore in the Gulf of Mexico. The

top crude oil-producing states are: Texas,

Alaska, California, Louisiana, and New Mexico.

Note: Some resources and graphics in "The Field" section are provided by the Energy Information
Administration (www.eia.doe.gov).

Preparation

A bachelor's degree in engineering is required for almost all entry-level engineering jobs.

Admission Requirements

Admissions requirements for undergraduate engineering schools

include a solid background in mathematics (algebra, geometry,

trigonometry, and calculus) and science (biology, chemistry, and

physics), and courses in English, social studies, humanities, and

computer and information technology.

Co-ops
Internships and Coops provide students with a great opportunity to

gain real-world experience while still in school. Many universities

offer co-op and internship programs for students studying

Petroleum Engineering. This provides students with first hand

experience in the industry and the opportunity to contribute to a

real-world program or project.

Courses of Study

Bachelor's degree programs in engineering typically are designed to last 4 years, but many

students find that it takes between 4 and 5 years to complete their studies. In a typical 4-year

college curriculum, the first 2 years are spent studying mathematics, basic sciences,

introductory engineering, humanities, and social sciences.

Petroleum engineering students may also take courses such

as Reservoir Petrophysics, Petroleum Engineering Systems,

and Physical Geology during these years. In the last 2 years, a

petroleum engineering program might include courses in

Drilling and Production Systems, Geostatistics, Well

Performance, Reservoir Fluids, Petroleum Project Evaluation,

Engineering Ethics, and Well Completion and Stimulation. "Petroleum Engineering Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

Accredited Programs

Those interested in a career in petroleum engineering should consider reviewing engineering

programs that are accredited by the Accreditation Board for Engineering and Technology, Inc.

(ABET). ABET accreditation is based on an evaluation of an engineering program's student

achievement, program improvement, faculty, curricular content, facilities, and institutional

commitment. The following is a partial list of universities offering accredited degree programs

in petroleum engineering.

Programs
The following is a current list of universities offering degree programs in Petroleum

Engineering.

• University of Alaska Fairbanks

• Colorado School of Mines

• The University of Kansas

• University of Louisiana at Lafayette

• Louisiana State University and A&M College

• Marietta College

• Missouri University of Science and

Technology

• Montana Tech of the University of Montana

• New Mexico Institute of Mining and

Technology

• The University of Oklahoma

• Pennsylvania State University

• Texas A & M University

• University of Texas at Austin

• Texas Tech University

• The University of Tulsa

• West Virginia University

Day in the Life

A degree in petroleum engineering can lead to many career

paths. While most work directly for oil and gas production

companies, the options for work are broad and cross over

many industries.

Job Duties

Petroleum engineers focus on a wide range of projects and
activities. Some focus on production challenges, identifying,

testing, and implementing methods for improving oil and gas production. They might focus on

economics, helping a team determine the optimum number of wells appropriate for a given

operation. A petroleum engineer may focus on safety issues, or

maintenance support, identifying and planning upgrades of equipment

or systems. A petroleum engineer may choose to teach, or to serve as

a consultant to investors, banks, or other financial services firms.

The Workplace

The type of job a petroleum engineer has will often determine whether

how much they work inside or outside. Many petroleum engineers work

on job sites, but others work in an office setting. A consultant to the

financial industry, for example, may spend most of their time working in

an office setting. There are strong international travel opportunities for

petroleum engineers, as it is very much a global business. Many

companies have offices and sites in multiple countries and transfers are

common. "Petroleum Engineering Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

Teams and Coworkers

Almost all jobs in engineering require some sort of interaction with coworkers. For example, a

petroleum engineer might be working on a team with geologists and contractors developing a

design for a new drilling operation. Whether they are working in a team situation, or just asking

for advice, most engineers have to have the ability to communicate and work with other

people. Engineers should be creative, inquisitive, analytical, and detail-oriented. They should

be able to work as part of a team and to communicate well, both orally and in writing.

Communication abilities are important because engineers often interact with specialists in a

wide range of fields outside engineering.

Earnings
Earnings for engineers vary significantly by specialty, industry,

and education. Even so, as a group, engineers earn some of

the highest average starting salaries among those holding

bachelor's degrees.

Salary Data

According the U.S. Department of Labor, Bureau of Labor

Statistics, the median income for petroleum engineers is

$98,380. In terms of starting salaries, the average starting salary for petroleum engineers who

have earned a Bachelor's degree is $60,718. According to a recent salary survey by the

National Association of Colleges and Employers, bachelor's degree candidates in petroleum

engineering received starting salary offers averaging $62,236 a year. They are among the

highest paid engineers.

SPE Salary Survey

The Society of Petroleum Engineers conducts a global salary survey of members. For the most

recent survey (2007), the average base salary of respondents worldwide was $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 $167,712. Not surprisingly, the average income increased

with years of work experience.

Employment

According to the U.S. Bureau of Labor Statistics, petroleum engineers hold about 17,000 jobs

in the United States. This represents 1.1% of the 1.5 million jobs held by engineers in the U.S.

Petroleum engineers work mostly in oil and gas extraction, professional, scientific and

technical services, and petroleum refining. Employers include major oil companies and

hundreds of smaller, independent oil exploration, production, research institutes, and service

companies.

Most petroleum engineers work where oil and gas are found. Large numbers are employed in
Texas, Louisiana, Oklahoma, Alaska, and California, including offshore sites. Many American

petroleum engineers also work overseas in oil-producing countries. "Petroleum Engineering
Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)

The following is a partial list of employers of petroleum engineers:

Oil/Gas Producing Companies and

Equipment Manufacturers

• Amerada Hess Corp.

• Anadarko Petroleum Corp.

• Apache Corp.

• BP plc

• Burlington Resources Inc.

• Cabot Oil & Gas Corp.

• Callon Petroleum Co.

• Canadian 88 Energy Corp.

• Canadian Natural Resources Ltd.

• Chesapeake Energy Corp.

• Chevron Corp.

• Citation Oil & Gas Corp.

• CMS Energy Corp.

• ConocoPhillips Co.

• Denbury Resources Inc.

• Devon Energy Corp.

• Eagle Plains Resources Ltd.

• El Paso Corp.

• ENI SpA

• Energen Corp.

• EOG Resources Inc.
• Equitable Resources

• ExxonMobil Corp.

• Forest Oil Corp.

• Halliburton

• Houston Exploration Co.

• Kerr-McGee Corp.

• Koch Industries Inc.

• Marathon Oil Corp.

• Murphy Oil Corp.

• Newfield Exploration Co.

• Occidental Petroleum Corp.

• Petro-Canada

• Pioneer Natural Resources Co.

• Shell

• Stone Energy Corp.

• Swift Energy Co.

• Unocal Corp.

• Vintage Petroleum Inc.

• XTO Energy

U.S. Federal Government

• U.S. Bureau of Land Management

• U.S. Chemical Safety and Hazard

Investigation Board

• U.S. Department of Energy

• U.S. DOE Fossil Energy Program

• U.S. Environmental Protection Agency

• U.S. Department of the Interior -
Offshore Minerals Management

• U.S. Geological Survey

Research Institutes

• Argonne National Laboratory

• Brookhaven National Laboratory

• Idaho National Engineering and

Environmental Laboratory

• Lawrence Berkeley National

Laboratory

• Los Alamos National Laboratory

• Natural Gas and Oil Technology

Partnership

• Oak Ridge National Laboratory

• Sandia National Laboratory

• U.S. National Energy Research

Scientific Computing Center

• International Research Institutes

Other Employers

• Consulting Firms

• Professional Associations

• Colleges and Universities

• Environmental Groups

• State Agencies such as Arkansas Oil

and Gas Commission

• State Geological Surveys such as the

Colorado Geological Survey"Petroleum Engineering Overview"

Prepared as part of the Sloan Career Cornerstone Center (www.careercornerstone.org)
Career Path Forecast

According to the U.S. Department of Labor, Bureau of Labor

Statistics, petroleum engineers are expected to have 5 percent

employment growth over the projections decade of 2006-2016,

more slowly than the average for all occupations. Even though

most of the potential petroleum-producing areas in the United

States already have been explored, petroleum engineers will

increasingly be needed to develop new methods of extracting

more resources from existing sources. Favorable opportunities

are expected for petroleum engineers because the number of

job openings is likely to exceed the relatively small number of graduates. Petroleum engineers

work around the world and, in fact, the best employment opportunities may include some work

in other countries.

Professional Organizations

Professional organizations and associations provide a wide

range of resources for planning and navigating a career in

Petroleum Engineering. These groups can play a key role in

your development and keep you abreast of what is happening in

your industry. Associations promote the interests of their

members and provide a network of contacts that can help you

find jobs and move your career forward. They can offer a variety

of services including job referral services, continuing education

courses, insurance, travel benefits, periodicals, and meeting

and conference opportunities. A broader list of professional associations is also available at

www.careercornerstone.org.

American Association of Petroleum Geologists (www.aapg.org)

American Gas Association (www.aga.org)
American Institute of Mining, Metallurgical, and Petroleum Engineers

 (www.aimehq.org)

American Petroleum Institute (www.api.org)

Organization of Petroleum Exporting Countries (www.opec.org)

Society for Mining, Metallurgy, and Exploration (www.smenet.org)

Society of Petroleum Engineers (www.spe.org)