Oil and Gas

Global energy consumption is expected to grow by nearly 50 percent from 2018 through 2050, according to the U.S. Energy Information Administration (EIA). It also reports that "energy consumption will increase in the United States over the next 30 years across a variety of economic scenarios as population and economic growth outpace energy efficiency gains. Through 2050, natural gas and petroleum will remain the most-consumed sources of energy in the U.S., but renewable energy will be the fastest growing if current trends continue and government policies remain in place.

The EIA reported in late 2023 that the United States "produced more crude oil than any nation at any time...for the past six years in a row." Oil in shale deposits, recovered by fracturing methods, have boosted the United States’ own reserves and lessened its dependency on foreign oil. The United States has more shale oil reserves than any other country in the world, with the largest deposits located in the Green River Formation in Colorado, Utah, and Wyoming and in the Permian Basin that covers western Texas and southeastern New Mexico. Though extraction poses some technical challenges, U.S. oil shale in-place resources (the total amount of producible and nonproducible oil) contain the energy equivalent of more than 260 billion barrels of oil.

There were 132 operable petroleum refineries in the United States as of January 1, 2024, according to the EIA. The number of refineries has remained roughly the same in recent years, but it has dropped significantly from 1982, when there were 301 refineries. Advances in technology and efficiency measures have increased overall production capacity. Much of the oil exploration and refining activity has gone overseas, particularly to offshore Africa, South America, the Middle East, Russia, and the North Sea.

Overall employment in the oil and gas extraction industry is expected to decline by 6.7 percent from 2023 through 2033, according to the U.S. Department of Labor (DOL). Increasing efficiency and automation, as well as growing interest in renewable energy resources, will reduce demand in the field. Despite this prediction, there will continue to be many opportunities in this large occupational field. Additionally, the election of Donald Trump—who has been a strong proponent of oil and gas exploration—to a second presidential term may slow or reverse employment declines in the industry.

The DOL predicts that employment of petroleum engineers will increase by 2 percent, slower than the average for all occupations, from 2023 through 2033. The DOL says that "increased use of renewable energy and weaker investments in fossil fuel production may limit job growth over the projections decade." It also notes that changes in oil prices affect employment levels; for example, when prices are high, oil and gas companies can increase their capital investment in new facilities and expand existing production operations and oil exploration. Petroleum engineers will be needed to develop new methods to extract more resources from existing sources and also to develop new resources. There may also be increased demand for engineers associated with both petroleum and natural gas fracturing. Demand for petroleum engineers in support activities for mining is expected to increase faster than the average through 2033. Refiners and extracting companies in need of workers, especially petroleum engineers, sometimes recruit college students on campuses before they graduate and receive their degrees. The Journal of Petroleum Technology says that "oil companies are eagerly hiring petroleum engineering graduates . . . [and] most seniors have lined up jobs well in advance of graduation and some are getting multiple offers."

Job opportunities for geological and hydrologic technicians are projected to increase by 3 percent from 2023 to 2033, about as fast as the average for all occupations. "Demand for natural gas, along with exploration and management of resources such as minerals and water, is expected to increase demand for geological exploration and extraction," according to the DOL.

There will continue to be opportunities in jobs that are associated with hydraulic fracturing. IBISWorld reports that 61,537 people were employed in the hydraulic fracturing services industry in the U.S. in 2023. However, an increase in environmental concerns over the process of fracturing voiced by the general public, scientists, and government officials concerned about pollution of groundwater and other environmental harm, over-utilization of water resources to provide the 1.5 million gallons to about 16 million gallons of water required for one fracturing well (according to the U.S. Geological Survey), damage to human health, and possible links to earthquakes. "Scientific studies show that hydraulic fracturing and related activities have caused environmental impacts, including surface and groundwater contamination, soil contamination and air pollution as well as the release of methane, a potent greenhouse gas," according to the American Association for the Advancement of Science. "Hydraulic fracturing activity has also been linked to exposure to toxic chemicals and other adverse health effects."

The DOL reports that 119,700 people worked in the U.S. oil and gas extraction sector in November 2024 (down from 193,900 workers in January 2014). The mean annual wage of workers in the industry was $98,946. This is much higher than the national average ($63,098) for all private sector workers. Mean annual earnings for selected careers were as follows in 2023:

• petroleum engineers: $163,170
• geoscientists (except hydrologists and geographers): $156,580
• petroleum pump system operators, refinery operators, and gaugers: $83,380
• wellhead pumpers: $73,800
• roustabouts, oil and gas: $52,470

A total of 54,600 people worked in the pipeline transportation sector in November 2024 (up from 46,000 workers in January 2014). Mean annual earnings for selected careers were as follows in 2023:

• control and valve installers and repairers: $94,580
• petroleum pump system operators, refinery operators, and gaugers: $90,930
• gas plant operators 40.00 40.98 83,190 85,240 Industrial machinery mechanics: $88,870
• gas compressor and gas pumping station operators: $69,030