Wednesday, July 16, 2008

The Environmental Benefits of Offshore Drilling
Louisiana produces almost 30 per cent of America's commercial fisheries. Only Alaska (ten times the size of the Bayou state) produces slightly more. So obviously, Louisiana's coastal waters are immensely rich and prolific in seafood.These same coastal waters contain 3,200 of the roughly 3,700 offshore production platforms in the Gulf of Mexico. From these, Louisiana also produces 25 per cent of America's domestic oil, and no major oil spill has ever soiled its coast. So for those interested in evidence over hysterics, by simply looking bayou-ward, a lesson in the “environmental perils” of offshore oil drilling presents itself very clearly.Fashionable Florida, on the other hand, which zealously prohibits offshore oil drilling, had its gorgeous "Emerald Coast" panhandle beaches soiled by an ugly oil spill in 1976. This spill, as almost all oil spills, resulted from the transportation of oil – not from the extraction of oil. Assuming such as Hugo Chavez deign to keep selling us oil, we'll need increasingly more and we'll need to keep transporting it stateside – typically to refineries in Louisiana and Texas.This path takes those tankers (as the one in 1976) smack in front of Florida's panhandle beaches. Recall the Valdez, the Cadiz, the Argo Merchant. These were all tanker spills. The production of oil is relatively clean and safe. Again, it's the transportation that presents the greatest risk. And even these spills (though hyped hysterically as environmental catastrophes) always play out as minor blips, those pictures of oil-soaked seagulls notwithstanding. To the horror and anguish of professional greenies, Alaska's Prince William Sound recovered completely. More birds get fried by landing on power lines and smashed to pulp against picture windows in one week than perished from three decades of oil spills.For fear of oil spills, as of 2008, the U.S. Federal government and various states ban drilling in thousands upon thousands of square miles off the U.S. Coast. These areas, primarily on the Outer Continental Shelf, hold an estimated 115 billion barrels of oil and 633 trillion cubic feet of natural gas. This leaves America 's energy needs increasingly at the mercy of foreign autocrats, despots and maniacs. All the while worldwide demand for oil ratchets ever and ever upward."Environmentalists" wake up in the middle of the night sweating and whimpering about offshore oil platforms only because they've never seen what's under them. This proliferation of marine life around the platforms turned on its head every "environmental expert" opinion of its day.The original plan, mandated by federal environmental "experts" back in the late '40s, was to remove the big, ugly, polluting, environmentally hazardous contraptions as soon as they stopped producing. Fine, said the oil companies.About 15 years ago some wells played out off Louisiana and the oil companies tried to comply. Their ears are still ringing from the clamor fishermen put up. Turns out those platforms are going nowhere, and by popular demand of those with a bigger stake in the marine environment than any "environmentalist."Every "environmental" superstition against these structures was turned on its head. Marine life had EXPLODED around these huge artificial reefs: A study by LSU's Sea Grant college shows that 85 percent of Louisiana fishing trips involve fishing around these platforms. The same study shows 50 times more marine life around an oil production platform than in the surrounding Gulf bottoms.An environmental study (by apparently honest scientists) revealed that urban runoff and treated sewage dump 12 times the amount of petroleum into the Gulf than those thousands of oil production platforms. And oil seeping naturally through the ocean floor into the Gulf, where it dissipates over time, accounts for 7 times the amount spilled by rigs and pipelines in any given year.The Flower Garden coral reefs lie off the Louisiana-Texas border. Unlike any of the Florida Keys reefs, they're surrounded by dozens of offshore oil platforms.These have been pumping away for the past 50 years. Yet according to G.P. Schmahl, a Federal biologist who worked for decades in both places, "The Flower Gardens are much healthier, more pristine than anything in the Florida Keys. It was a surprise to me," he admits. "And I think it's a surprise to most people.""A key measure of the health of a reef is the amount of area taken up by coral," according to a report by Steve Gittings, the National Oceanic and Atmospheric Administration's science coordinator for marine sanctuaries. "Louisiana's Flower Garden boasts nearly 50 percent coral cover. In the Florida Keys it can run as little as 5 percent."Mark Ferrulo, a Florida "environmental activist" uses the very example of Louisiana for his anti-offshore drilling campaign, calling Louisiana's coast "the nation's toilet."Florida's fishing fleet must love fishing in toilets, and her restaurants serving what's in them. Most of the red snapper you eat in Florida restaurants are caught around Louisiana's oil platforms. We see the Florida-registered boats tied up to them constantly. Sometimes us locals can barely squeeze in.In 1986 Louisiana started the Rigs to Reef program, a cooperative effort by oil companies, the feds and the state. This program literally pays the oil companies to keep the platforms in the Gulf. Now some platforms are simply cut off at the bottom and toppled over as artificial reefs; over 60 have been toppled thus far.A few years back, Louisiana Wildlife and Fisheries officials were invited to Australia to help them with a similar program. Think about it: here's Australia, the nation with the Great Barrier Reef, the world's biggest natural reef, the world's top dive destination – they're asking help from “the nation's toilet” about developing exciting dive sites by using the very structures that epitomize (in greenie eyes) environmental disaster.America desperately needs more domestic oil. In the process of producing it, we'd also get dynamite fishing, dynamite diving, and a cheaper tab for broiled red snapper with shrimp topping.

Saturday, June 21, 2008

The Petroleum Industry
Jobs in the petroleum industry are fun and exciting because they provide people with a chance to "do geology" in a high-technology, high-data environment that isn't found in most other geoscience professional jobs. Even better, many petroleum companies provide generous salary and benefits packages that include annual bonuses, flexible work schedules and company-sponsored training. Petroleum geoscientists gather, process, and analyze seismic data and well data in order to locate drillsites for their companies. During a typical career, people learn to locate three different types of drillsites: exploration drillsites (big scale/high risk), field-development drillsites (medium scale/medium risk) and producing-field drillsites (small scale/lowest risk). Most petroleum industry jobs are based in major cities like Houston and Denver and require some domestic and foreign travel as part of the job assignment.

To get a job with a medium-to-large company you will need a bachelor's degree in geology or geologic engineering from a university that teaches the fundamental principles of geology and a master's degree with a specialty in structural geology, sedimentology, stratigraphy, or geophysics/seismology. Research geoscientists, paleontologists, and geochemistry specialists are also employed but in fewer numbers.

The number of petroleum-industry jobs often fluctuates with the price of a barrel of oil. When oil prices are high, employment opportunities are generally stable or expanding, and when oil prices are low, the industry usually undergoes layoffs. Dealing with the stress of this boom-or-bust employment cycle is the toughest part of choosing a petroleum-industry career.

No matter how you view the ups and downs of the oil business, the employment outlook for new graduates appears to be bright for the foreseeable future. Many companies plan to grow slowly regardless of the price of oil, and they have strategies that include hiring new talent into their maturing workforces. Because statistics show that not enough geoscientists were hired during the 1990s to replace all the employees who will soon begin to retire, it seems likely that the industry's recruiting targets will be stable and might even increase over the next five to 10 years as companies seek to replace retirees. As hiring proceeds in the future, companies will likely prefer students who are globally mobile and willing to work in international locations. Companies will preferentially seek out students with advanced degrees, broad-based training in the fundamental principles of geology, and complementary teamwork and commercial skills developed through summer internships.

Job openings are also currently available for people with three to 15 years of professional experience. These openings occur because many smaller companies are willing to pay a premium in salary and bonuses to people trained by larger companies. Job hopping has always been a part of the petroleum landscape and is likely to remain so into the future.

In summary, the petroleum industry provides well-paid, fun jobs for people who are willing to acquire a master's degree in geoscience. Although it is more enjoyable to be a part of the industry when oil prices are stable and high, geoscience jobs are vital to the industry even when prices are low. Jobs are currently available both for new graduates and experienced professionals, and recruiting is likely to continue for the foreseeable future.

Oil and Gas Industry
Employment within the oil and gas industry has been as volatile and unstable as the price of oil and the price of gas, and it takes geologists who thrive on the excitement and potential of this industry to enjoy and appreciate careers within this specialty. Geologists who succeed within the oil and gas industry not only need the research and educational skills for creating and imagining the geologically unknown, they must also have business and communication skills and often management skills that are above average.

Employment within an oil and gas company is very economy-driven. If a geologist isn't finding or developing new oil and gas potential, the company is losing money on their investment in this employee. It can be a stressful environment, but it is also an extremely rewarding environment because these geologists have an opportunity to see their labors bear fruit. Their creative geologic talents and ideas are tested with seismic and drill bits and can result in exciting discoveries. Very little can match the thrill and satisfaction of being on a drilling rig as it drills into the predicted reservoir with the anticipated results! And few other careers in the world provide the universal service and benefits to the every single person, worldwide, as does the business of supplying energy…and it is fun!

Oil prices (and gas prices) took an unprecedented dive in 1986 and the industry suffered enormously: more than 250,000 industry workers were put out of work, including a large number of geologists. In early 1993, economic predictions included a stable oil price of about $21 per barrel. By December 1993, oil prices had again fallen to a low level. Eighteen months later, prices were high again, and in the winter of 2000-2001 record high gas prices fueled new drilling incentives. Employment in the industry will always be subject to these fluctuations, but there is a type of geologist who belongs in the industry regardless of these fluctuations, a geologist with enthusiasm, creativity, vision and especially, one who has been bitten by the thrill of the oil patch, the excitement of discovery, and the satisfaction of these accomplishments.

There will always be a place for a young geologist with these interests and qualities. Many times, continuing your profession in petroleum requires perseverance, determination, dedication, and maybe even "addiction" to this career. But, if you have ever sat down with some of the oil pioneers at an AAPG meeting, men and women in their 80s and 90s, and experienced their continued excitement and enthusiasm for their careers, you will see the joy it has brought to the lives of those who persist.

Hiring statistics in the geological profession (AGI, 1999, Report on the Status of Academic Geoscience Departments) indicate that approximately 13% of the geologists hired in 1999 were in the oil and gas business-compared to 27% hired in 1991. That contrasts with 29% in the environmental business, 13% in academia, 14% in government, 4% in mining, and 3% in research and DOE labs. The oil and gas industry offers the highest industry salaries at each degree level. The level in greatest demand for the petroleum industry is a master's degree. For instance, the average salary for all entry-level geologists with a master's degree is about $31,500, and the average in the petroleum industry is about $59,700. However, to enter the oil and gas field for the income alone is clearly discouraged...this is not a career for the faint-hearted!

Fewer and fewer geologists remain with the same company for their entire careers. Independents (those who earn most of the income directly from production) and consulting geologists make up the bulk of membership in the American Association of Petroleum Geologists (AAPG). Those interested in pursuing this career do well to prepare themselves for a future as an independent or consultant. Talking to successful independents and consultants and getting their advice is an excellent way to start this preparation. Skills that are critical for success as a consultant also serve an employee well within a company. These include: ability to focus, ability to complete projects, self-motivation, ability to put creativity into action, clear communications, good public speaking, financial planning, accounting and NETWORKING. (This assumes you have developed expertise in most facets of petroleum geology, which generally is learned "on-the-job" after 4 to 12 years of higher education.)

There is tremendous appeal to some people to be "on their own," to be their own boss, to have this independence, however risky and insecure. For others, the thought of it is terrifying and they avoid it. Those who don't think they want to be "on their own" should prepare from the first day on the job with a company for this possibility. Save, invest, gain the skills, gain the confidence. If these skills are never used outside the "company" environment, they will still help in the advancement of your career within a company.

Oil Companies Recruiting on College Campuses

For years it has been a trend for college students to study computer science. Those jobs are certainly still in demand, but some students have learned that geoscience has serious potential as well.

Oil and gas companies – large and small - have started to recruit from U.S. colleges and universities in a big way lately because demand far outstrips supply. They're looking for new graduates and a large number of summer interns. A combination of the following factors has employers scrambling:

  • An aging work force is one major reason why oil companies are in a pinch for workers. Back in the 1980s, the oil industry was in a funk and very little hiring occurred. One major study reported recently that the average worker is 49 years of age and that half of the current workforce will need to be replaced in the coming 10 years.
  • The supply of workers educated in the geosciences has fallen off sharply since the 1980s when more than 9,000 students graduated with degrees in the field. Last year it was closer to 1,500 with Master's degrees and several thousand more with undergraduate degrees.
  • The petroleum industry is absolutely booming. If you've been reading the newspapers, then you know that the oil companies have plenty of money. They can spend some of it on recruiting and salaries for smart people who use science and technology to locate more oil. A recent newspaper article reported that BP was hiring 235 people from college campuses in 2006, up from 163 the previous year. Every other company is in the same boat. Students have found that they can land jobs out of college paying $50,000 to $65,000 per year with oil companies. One recent study showed that the average job offer made last fall to undergraduate petroleum engineers was $62,236 (6 percent increase), and the highest of any categories in National Association of Colleges and Employers's survey. Starting pay for geologists is lower but still excellent.

    It used to be the norm that without a Master's degree in the geosciences you would have a tough time finding quality, high paying oil and gas jobs. But beggars can't be choosers, as they say , meaning that employers are more willing now to hire undergraduates and train them. In a sharp parallel to the computer science arena, U.S. universities simply aren't churning out enough people with a Master's level education in the geosciences.

    A great many colleges and universities have educational programs for petroleum engineers and geologists, which had been weak fields in recent years. Enrollment is definitely up from what it was ten years ago.

    Looking for a quality, well-known geoscience programs? Check out the University of Texas, Massachusetts Institute of Technology, and Colorado School of Mines

    If you happen to get a job offer, then be sure to negotiate wages smartly. Some companies have been known to give signing bonuses to the right candidates.

Oil And Gas: How Both Affect The Economy
The economy is affected by many factors that determine if it is strong or weak. These factors have to do with buyers consuming goods and services and at what rate they do this. Do the goods and services that are consumed by people created wealth, jobs and a better overall economy for a country. Throughout history some economies have evolved faster and stronger than others. Policies that the government places on industry, technology and the environment can all affect the prosperity of an economy. Of the factors that affect economic growth the industry of Oil and gas is one that holds a stronghold in the world's and America's economy today. When evaluating the economic growth factor of economy and specifically oil and gas on must consider the following questions: ¨ What relationship does the factor have with the whole economy? ¨ How does this factor affect economic growth ¨ Is the factor a cause or effect of economic growth? ¨ what would the economy be like if there were significant problems with this factor? ¨ What relation does a central bank have to this factor? I will answer each of these questions in respect to how economy is affected by oil and gas. The economy in the United States today is greatly affected by oil and gas. When there are large reserves and an increase of active drills in respect to oil, the economy seems to receive a boost. This is because prices for such things like gas and oil fall and people are able to consume more gas at a lower price. There is more supply and prices fall, therefore people save money on gas and can consume other items in the economy. People working in these industries have more job openings and more jobs filled, therefore creating a lower unemployment rate and a higher national per capita income. The need for substitutes are not there so, consumers will consume oil and gas at a growing rate. Since, people use oil and gas for so many different things like heating there homes, driving their cars, and a variety of other sources, the overall GNP for the consumer will rise. Economic growth is affected through significant fluctuations in inflation of oil and gas. If you look throughout history when there have been fluctuations in gas and oil prices you have vast fluctuations in the economy of our country. The instability of this factor has cause government regulation to come into play in times of crisis. For example during the mid-seventies we had the oil and gas shortage due to the Middle East cutting off supply to Importers of their oil. By doing this, they caused a shortage in a lot of countries creating rising oil prices and high demand. Consumers could not rely on the oil prices to be stable, therefore they consumed less of other products due to the inflation of gas prices and more of their dollar began to be spent on gas. Americans particularly started to come up with more efficient means of using and consuming gas over the past 25 years. Oil and gas is a resource that can be used up if not conserved properly. That is why OPEC was formed, as well as organizations such as NAFTA to help regulate trade of these commodities and bring organization to a disorganized status. In addition, governments like the United States impose taxes on gas to regulated the prices in order to ward off against supplies of oil affecting the nations economy. This only works to an extent, in the early to mid-eighties one state's economy lived and died by the supply of oil. That state was Texas. When Texas's oil rigs began to dry up, their economy went into a recession. Their reliance on the oil supply as their main revenue producer caused a lot of people to lose their jobs and demand and consumption for other products fell as well. This caused a spiraling effect which caused people from all industries to lose their jobs. Texas's economy suffered and so did parts of the American economy with High inflation and high debt which caused the economy to suffer. Increased regulation and diversification of a country's resources can stop this from being the case. Countries representing OPEC all live and die by the constant production of oil. While this factor is used to stimulate their countries economic growth, it should be used to stimulate the building of a country's infrastructure. Oil-rich countries should use the positive affect oil has had on their countries to build strong governments and consumer demand for other goods. This powerful infrastructure that could be built will give the economy stability and allow for a country's GNP to grow in a slow, steady, and positive way. The building of a strong middle-class will allow for country's to prosper for many years to come. Instead what has happened is that economies of these countries are in a state of flux. What I mean by this is that their economies are very unpredictable and unstable and their reliance on oil has made the disparity between the rich and the poor a gap that becomes too large to overcome. One prime example of this is Brazil, Brazil has large reserves of oil in a very large country. Brazil is a developing nation and is very unstable when it comes to central governments. In the 70's and 80's Brazil made large amounts of oil from its reserves. Instead of investing the money made (from exporting oil) into their countries future, the leaders of that country used the money to make themselves rich and left the country in political and economic disarray. The middle class of Brazil became almost non-existent and their seem to be but two classes in that country. Those classes were the extremely rich and the extremely poor. The lack of infrastructure and consumer confidence in the economy due to the mishandling of oil profits lead to many political assassinations and increased crime rates throughout the country. It has taken and will continue to take Brazil years and years to recover from these economic crisis's , which all could have been avoided had Brazil's government invested in its future. It is definitely true that an economy of a country can be vastly affected by the demand, consumption, and supply of oil. The affect that good supplies of oil has on a country's economy is one that can only be measured in the sense that it is inevitable that they will be affected. As long as we drive cars that are fueled by gas and we use heat in the winter time, oil will always be a strong factor in determining the growth of a countries economy. In the United States, we have the strong infrastructure to adapt to problems that the instability of both the supply and demand of oil will cause. Countries need to look within themselves for managed growth in order to steady their economies if oil is what sparks their economy. A strong central bank and government will allow for funds to be invested in supporting the economy, the oil business, and consumerism. Once the infrastructure is set the shear reliance on oil will not be a factor, because the country's economy will be able to handle the affect. When the day comes that oil wells ran dry and substitutes are needed the countries that will survive will be the ones that have braced themselves for the effect that this will have on their economy. Then these countries will adapt and overcome. Oil and gas should be used as helper of a country's economy and not the passion by which it is run. The production of great income for a country and a higher GNP that oil production is something that should be able to benefit them for many years to come. If you look at the United States as a model you will see a country that handles oil with precision. When the oil industry is in a downturn, the government can step in and regulate taxes and stimulate investment by having the central bank pump in funds that would not otherwise be used. When the oil industry is doing fine, the government can sit back and reap the prosperity of increases in employment and a rise in demand for oil. The prices will be lower for gas and oil, which means consumption will be up and the economy will be up too. Countries around the world can learn how to handle oil to the extent that it creates an agenda that the benefits far outweigh the costs. We know that oil and gas affects the economy and that it easily regulated by strong central government and bank. The infrastructure must be built up to manage growth. The leaders of the country should be committed to the development of the oil industry. Finally the consumers should be aware of how their role in the consumption of oil will affect the economy as a whole. When all parties are aware and committed to the prosperity of their country and to the industry then the consumption, supply, demand, profits, losses, and investment towards oil will be a mutually beneficial one for the country and it's people.
Working on and offshore

The industry develops and uses the most advanced technology and innovative techniques to find and extract oil. As technology advances the lifetime of the oil and gas fields extends as more of the reserves can be extracted economically. At today's estimates it will need personnel for decades to come - personnel with the relevant skills and qualifications, but who are also motivated, adaptable individuals with good communication and IT skills, ready to become part of a team.

In these pages, you'll get an overview of offshore life and the many different jobs available. There are opportunities for employment for school leavers and those who have chosen to go into further or higher education. The process of finding and extracting oil and gas involves many different functions but they don't just work independently of each other. They're integrated to form a highly sophisticated industry in a unique environment.

Drilling

Drilling a well beneath the surface of the North Sea is a similar process to drilling a hole in a piece of wood at home. The major difference is in the size and strength of the drill bit as it will be boring through some very hard rock formations. The depth of the well will depend on the site of the reservoir and can be from a thousand metres to a few kilometres deep. Lengths of drill pipe, on average 9 metres long, are attached to the drill bit and some drilling operations can take many hours to complete. The use of fluids, usually called drilling mud, to lubricate the drill bit can make the process very dirty and working on the drill floor means exposure to all types of weather conditions.

As the well is being drilled, a casing to prevent the hole from collapsing will be cemented in. Appraisal wells are drilled at the exploration phase and, following the decision for the field to go 'on stream', production wells are drilled. As technology advances, the technique of directional drilling is being used to maximise the performance of the reservoirs. In many locations the drilling is horizontal, which means that the well is more than 80 degrees from the vertical.

Roustabout

This role is generally unskilled manual labouring. 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.

Oil, oil, oil
As oil prices continue their climb to new heights, the only remaining OPEC country able to increase production is feeling political and economic pressure to do so—although not in the way expected by Congress. Saudi Arabia will add another 500,000 barrels of daily output to raise its production to the kingdom’s highest level in 25 years, in an attempt to allay unrest and to continue its client countries’ economic growth so they will continue to purchase additional oil.
Left unsaid by the Saudis is that current oil prices have rekindled alternative-energy efforts, which eventually would destroy their oil market altogether. The major auto manufacturers are well along in their development of hydrogen and electric vehicles, and the cost of producing oil from shale located in the United States is about half the current cost of a barrel of oil. Some projections say that the U.S. has enough oil shale to meet its current needs for the next 400 years.
Meanwhile, Exxon Mobil is unloading its 800 company-owned gas stations in addition to 1,400 dealer-operated locations. While in 2007 American oil companies turned in an 8.3 percent profit (which is seven-tenths of a percent below the average for all U.S. manufacturing), Exxon’s divesture is unlikely to affect oil and gas prices as the largest American oil and gas companies produce only three percent of global oil production and six percent of global refining capacity. Selling marginally unprofitable retail outlets will carry nowhere near the same price impact as drilling for more oil (such as in ANWR, which happens to be located merely 60 miles from the 15 billion barrels of oil already sent by Alaska through the pipeline in Prudhoe Bay).

Friday, June 20, 2008

Oil & Gas Industry Jobs Overview
The oil and gas – or petroleum – industry is truly multinational. In every newspaper just about every day there are articles about some aspect of the petroleum industry. One can learn from reading these articles that the majority of the world's oil comes from places in the Middle East like Saudi Arabia, the United States, Russia, Canada, and Iraq. Despite the global nature
of the industry, the types of jobs are very similar regardless of where in the world you are.
With the rise of China and India demand for refined petroleum has never been higher. Gas prices are high and rising, as demand outstrips supply. Oil companies are forced to find ways to extract more oil from known reserves and to find new ways of getting oil. In Canada, for instance, they have found a way to remove oil from what are called 'oil sands' in Alberta. There is ongoing talk in the United States about opening up the Arctic National Wildlife Refuge in Alaska to exploration and drilling. Additionally, more offshore rigs may be built and put into operation.
In short: the need for workers is fairly high now but it could be far higher in the coming years.
Oil & Gas Jobs
Gas industry jobs, whether onshore or offshore, are most preferred career option for people due to Oil & its vast employment potential as well as high rate of wages. The oil & gas industry job vacancies exist in fields as well as rigs. Onshore and offshore jobs are available for Petroleum engineers, Geoscientists, Pipeline engineers, Reservoir engineers, Design engineers, Shipping officers, Geologists, Drilling supervisors, Pipe stress engineers, Reservoir managers and many more categories.