How relevant is a petroleum engineering degree Today.

In the renewables age, it is clear that carbon dioxide emitted by burning fossil fuels is negatively affecting the planet, bringing the future role of oil and gas companies into question. 

With the demand for oil declining since the mid-2020s, the global primary energy supply set to peak in 2030, and renewable energy sources increasing, what is the future of employment in petroleum engineering?

Astonishingly, the demand for fossil fuels continues to rise, especially in the continents of Asia and Africa, with the increase in economic growth and industrial activity. Diesel and gas oil demand is forecast to reach 30 million barrels per day in 2045, up from 26.4 million barrels in 2019, and gasoline demand is forecast to reach 27.4 million barrels by 2045.

In a bid to reduce CO2 emissions to secure the planet from climate change effects, advocacy for the replacement of fossil fuels with alternative clean energies, i.e., electrical and renewable energy, is well underway. This has given rise to what is known as ‘the Energy Transition’. 

This begs the question, what place does a degree in petroleum engineering have in today's new energy system?

Transferable skills between the industries

Although there are predictions that the clean energy sector will grow and spurn sufficient employment opportunities, there is still a lack of experienced field technicians and engineers. Because of their many transferable skills in areas such as project management, engineering, construction, finance, and operations, oil and gas professionals are proving to be a vital talent resource in the industry.

Offshore wind energy projects, for example, could easily make use of the deepwater and offshore expertise of oil and gas professionals. Also, petroleum engineers can use their knowledge of geology to do more than extract oil and gas, but also identify reservoirs below the surface that can store CO2 or locate sources of geothermal energy that can be converted to electricity.

The Way Forward

According to Deloitte’s 2022 Oil and Gas Industry Outlook, report, there are at least four steps that oil and gas companies can take to address the challenge of managing the negative effects of fossil fuels to remain relevant and drive the clean energy race.

Identify easier ways to reduce greenhouse gas emissions by eliminating methane leaks from existing infrastructure

Deploy renewables to reduce emissions from field operations

Evaluate opportunities for CO2-enhanced oil recovery, in which carbon dioxide and water are used to flush residual oil from subsurface rock formations between wells

That being said, petroleum engineers are faced with a plethora of challenges and opportunities in the energy transition journey, and professionals in petroleum engineering could be at the forefront of providing solutions to these challenges.

They will be required to develop and apply innovations in technology, including data analytics and machine learning, to recover hydrocarbons from oil shale and offshore oil and gas fields, for the responsible location of new wells and application of energy-efficient techniques, for harvesting resources and recovery of oil left in the ground after more traditional producing techniques.Incorporating digitalization into energy processes will ensure a safer drilling process for people, wildlife, and the environment. 

Petroleum engineers must solve the variety of technological, political, and economic problems encountered in these assignments, making it a most rewarding career.

In conclusion,

With energy transition accelerating, petroleum engineers in oil and gas will continue to play a major role going forward, as multiple pathways for decarbonization will form part of the sector when coupled with the proper technologies and policies. Petroleum engineers will still be needed for their expertise and training, and by upskilling to include digitalization and electrification (subsea and subsurface), they can expect to grow their careers in the new carbon-neutral energy system.