Exploring Career In Petroleum Engineering

WELCOME FRIENDS IN THE WORLD OF PETROLEUM ENGINEERING

A deep fascination for the earth sciences is a good start for a student who intends to become a career petroleum engineer. Oil and gas reservoirs exist beneath the earth's surface in the upper strata of the crust. A petroleum engineer’s skills lie in locating the reservoir (or oil field as it’s commonly called) using precision instruments like gravimeters and magnetometers and then applying the most efficient methods to bring the resources to the surface for further processing. Oil fields can be found in the deserts, high seas, mountains, and frigid regions of the world, and intensive explorations continue across the world for new untapped sources to feed the world’s ever-growing energy needs.

Petroleum engineers apply a variety of geologic and engineering research data to determine the most likely sources of petroleum. Once the reservoirs of crude oil and natural gas are located, petroleum engineers find ways to bring them out of the ground for processing. Wells are drilled into the reservoir – often multiple wells are drilled into the same reservoir to optimise extraction. Depending on the underground pressure in the reservoir, oil is forced to the surface. The well head is connected to a pipeline for storage and processing. This process is called primary oil extraction. Over a period of time, the pressure in the reservoir can get depleted. In a situation like this, techniques like beam pumps, electrical submersible pumps, water or gas injection are used to bring the oil to the surface. This is known as the secondary recovery process. There is a third process too, the tertiary recovery which is used only when rising oil prices make it viable for extraction.

The petroleum engineer is involved in nearly all phases of the production process, from finding oil resources to processing, refining and distribution. Raw oil or crude is not of much use when it’s brought to the surface. Studies and tests are carried out on the drilled oil and gas for quality. They often find a mixture of oil, gas, water, and other components that must be separated and refined into various end-products including fuel, plastics and foams. Petro engineers are also involved in the design and development of the physical refining plants required to be established to process and prepare crude oil for various market uses. The typical products of an oil refinery include diesel, fuel, fuel oils, gasoline, asphalt, kerosene, liquid petroleum gas, lubricating oils, paraffin wax and tar.

Eligibility

Students with Bachelor's degrees in petroleum engineering enjoy an advantage when applying for a Master's degree programme. Degrees in engineering technology, physical sciences, and geo-sciences also receive high consideration in many programmes. Anyone with a degree in any another field will have to take undergraduate courses in petroleum engineering to get up to speed in terms of basic knowledge of the field.
Petroleum engineering is an upstream sector focusing on exploration, drilling and extraction of petroleum reserves. Petrochemical engineering on the other hand is a downstream sector focusing on processing and refining the extracted crude into sellable products. One can select to study either sector at the undergraduate level, or choose to specialise in either at the post graduate level. Quite a few students who study petro engineering at the undergraduate level prefer to take up a job assignment for a few years before taking leave of absence to do the Master’s programme.

A few institutions also offer five-year dual degree programmes in Petro Engineering, such as the one offered by the Indian School of Mines, Dhanbad and the Institute of Petroleum Technology, Gandhinagar. There are integrated programmes combining petroleum studies with management to prepare an engineer to deal with the business aspect of the industry. Apart from post graduate engineering studies, those with a background in Geology can take an MSc degree in Petroleum Technology.

Research is emphasised at the PhD level, and programmes can often be influenced by the specialty of the faculty at a university. Schools will generally require an MS in petroleum engineering for admission. Along with coursework in a specific area of research, students may be asked to take advanced classes in areas such as mathematics, computer science, and physical sciences.

Career Prospects

Intensive explorations for oil reservoirs are only matched by the increasing demand for petroleum products in the world today. According to a survey carried out by PriceWaterHouse Cooper, Indian industry will require 600 petroleum engineers by 2012. With very few qualified engineers joining the industry each year, the demand translates into corresponding pay packages. Campus placements by petroleum companies in India take care of the employment factor. A word of caution though: upstream or downstream, a career in petroleum engineering requires one to work in extreme conditions.

Here are a few areas of employment for petroleum engineers:

Geologists

They study rocks and drilling site samples to detect the presence of crude oil and gas. Data from geological surveys, field maps and seismic studies aid their analysis.

Geophysicists

They analyse the earth's external and internal composition, and examine various factors like water, atmosphere, and magnetic and gravitational fields to locate oil and gas reservoirs.

Drilling engineer

Involved in designing the best process to execute the drilling operation. Considering the multi-million dollar investment required for the process, a drilling engineer is responsible for working with the drilling contractors to confirm the location and carry out the operation successfully and economically.

Production engineer

Responsible for the actual extraction of the crude oil and gas from its location below the earth’s strata and bringing it to the surface.

Reservoir engineer

Responsible for analysing the pressure distribution inside the well, and works with the production engineer to maximise output profitably.

Facility engineer

Works on the separation, processing, and transportation of the crude oil and natural gas after it has been brought to the surface. Responsible for designing and building pipelines to move petroleum from the drill site to the refinery.

Safety engineer
In the context of heavy equipment and machinery involved in the process from locating and drilling oil, all the way to refining it for sale, safety is a key component of the entire operation. Responsible for establishing the safety protocol in every phase of operations.

Environmental/Regulatory specialist

Petroleum extraction and refining involves a tremendous impact on the environment. Knowledge of petroleum engineering is an essential part of ensuring environmental compliance.

Energy economist

Requires keen awareness and understanding of the petroleum industry from a strategic business and financial viewpoint. The petroleum industry has a global perspective, and this role has never been more defined than in the current market scenario.

Consultant

Petroleum engineers with relatively substantial experience and expertise in the industry can move on to consulting for several companies in the global arena in specific competencies.

Salary Levels

Petroleum engineering is considered one of the most lucrative of all engineering professions. One reason for this is the relatively low number of qualified professionals in the industry. The average starting salary is about Rs 7.5 Lac, going as high as Rs 27.5 Lac in India. Employment opportunities are plenty both in the public and private sectors. Engineers with even five years of experience can explore opportunities in the oil-producing Gulf countries at extremely high packages.

Top Study Destinations – Colleges & Universities

1. School of Petroleum Engineering, University of New South Wales
2. Colorado School of Mines Petroleum Engineering Department
3. Department of Energy Resources Engineering, Stanford University
4. Indian School of Mines University, Dhanbad
5. Institute of Petroleum Engineering, Heriot-Watt University, Edinburgh
6. University of Aberdeen
7. Maharashtra Institute of Technology, Pune
8. University of Petroleum and Energy Studies, Dehradun

RECESSION

ECONOMIC RECESSION

Question: What is a Recession?

Answer: A recession is when GDP growth slows, businesses stop expanding, employment falls, unemployment rises, and housing prices decline. For those reasons, many experts say the U.S. is actually in a recession now:GDP is slowing,Businesses are expanding more slowly,Employment is falling,Housing prices are down 10%.

Many experts state that it is only an economic recession when GDP growth is negative for two consecutive quarters or more. However, for all practical purposes a recession starts when there are several quarters of slowing but still positive growth. Often a quarter of negative growth will occur, following by positive growth for several quarters, and then another quarter of negative growth.

A good example was the stock market crash and subsequent economic downturn in 2000. This was not a recession in technical terms because GDP growth was negative in Q3 2000, Q1 2001, and Q3 2001, none of which were consecutive. However, anyone who lived through it knows that it felt like a recession during all that time. And in fact, GDP growth did not reach over 3% until Q3 2003.

About the only good thing about a recession is that it will cure inflation. The balancing act the Federal Reserve must pursue is to slow economic growth enough to prevent inflation without triggering a recession. Currently, it must do this without the help of fiscal policy, which is generally trying to stimulate the economy as much as possible through lowering taxes, spending on social programs and ignoring current account deficits.

How Would a Recession Affect Me?

In a recession, economic growth falls dramatically. The stock market declines, and usually enters a bear market. This usually causes a “flight to safety”, where investors buy Treasury Bonds, which causes interest rates to fall. Employers reduce new hiring, and eventually start laying off workers.To revive the economy, the Federal Reserve usually starts lowering interest rates to spur business lending and investment. The Federal Government may institute tax breaks to spur consumer spending.

The current economic slowdown was started by a housing market decline which itself was initiated by the Subprime Mortgage Crisis. This decline also means that existing home values have fallen by 10%. In a recession, prices could fall another 5-10%.How It Affects YouYou have probably already felt the impact on your home’s value, and therefore your home equity. This reduces your wealth. You will continue to feel the impact on your retirement savings, as stock prices decline, further reducing your wealth.The greatest risk is if you are in an industry that has layoffs, and you lose your job. If you aren’t laid off, then you will probably be asked to work longer hours to compensate for the new employees who aren’t hired.

As the recession continues, you may benefit from lower interest rates and tax cuts, which are applied to everyone. Normally, this would help you refinance or get a better mortgage. However, lenders have become more stringent about credit standards, so you won’t benefit unless you have great credit scores.