• THE MENTORS IN THE MAJOR COMPANIES ARE GONE

• THE TRAINING PROGRAMS IN THE MAJOR COMPANIES ARE GONE

• THE RESEARCH CENTRES IN THE MAJOR COMPANIES ARE GONE

• A LARGE NUMBER OF THE MAJOR COMPANIES ARE GONE

• OUR INDUSTRY IS GREYING

• IN 10 YEARS MOST OF US TEACHING YOU WILL BE GONE

THE PRODUCTIVITY “GAP”THE PRODUCTIVITY “GAP”

UNIVERSITYUNIVERSITYPRODUCTIVE PRODUCTIVE PETROLEUM PETROLEUM ENGINEER / ENGINEER /

GEOSCIENTISTGEOSCIENTIST

8 YEARS8 YEARS

Carnarvon Gorge, Qld (S.Lang)

START UNISTART UNI

PRODUCTIVEPRODUCTIVEPETROLEUM PETROLEUM

GEOSCIENTISTGEOSCIENTISTIndustry hire Industry hire

BScBSc

MScMSc

Hons.Hons. TheInternet

What’s In The Pipeline?

40000

35000

30000

25000

20000

15000

10000

5000

01960 1965 1975 1985 1995

ST

UD

EN

TS

UNDERGRADUATE

GRADUATE From W. Fischer

1955 1970 1980 1990

GEOSCIENCE STUDENTS AT US UNIVERSITIESGEOSCIENCE STUDENTS AT US UNIVERSITIES

200

400

600

800

1000

1200

1400

ST

UD

EN

TS

GEOSCIENCE STUDENTS AT NON-U.S. UNIVERSITIESGEOSCIENCE STUDENTS AT NON-U.S. UNIVERSITIES

92 88 97 93 95 90 96 89 91 94 98

Diplomas at German Universities

Graduates at British Universities

Honours at Australian Universities From Bottomley, 1999;

D.I.S.T., 2001

2002 Geological Salary Survey

$75,000 High

$64,000 Average

$55,000 Low

Salaries for New hires (with 0-2 years experience)

AAPG (2002)

US

Do

llar

s

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

0-2 3-5 6-9 10-14 15-19 20+

Years Experience

2002 Geological Salary Survey

High

Average

Low

AAPG (2002)

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

US

Do

llars

0-2 3-5 6-9 10-14 15-19 20+

Years Experience

Average Salary by Degree

B.Sc

M.Sc

Ph.D

AAPG (2002)

Why There is Still a Viable Why There is Still a Viable Future With Oil CompaniesFuture With Oil Companies

Four Reasons:

DemographicsDemographics

International OpportunitiesInternational Opportunities

New TechnologyNew Technology

Market ForcesMarket Forces

Largest Hydrocarbon BasinsLargest Hydrocarbon Basins by Ultimate Potentialby Ultimate Potential

GasGasOilOil

Global Giant Oil and Gas Fields

Opportunities for Future Growth

VenezuelaVenezuela

E. CanadaE. Canada

W. AfricaW. Africa

ItalyItaly

PapuaPapuaNew New

GuineaGuinea

GOMGOM

N. SeaN. Sea

CaspianCaspian

PeruPeru

ArgentinaArgentina

IndonesiaIndonesia

SakhalinSakhalin

VietnamVietnam

Australia Australia BrazilBrazil

N AfricaN Africa

W. SiberiaW. Siberia

Global Exploration

MalaysiaMalaysia

Why There is Still a Viable Why There is Still a Viable Future With Oil CompaniesFuture With Oil Companies

Four Reasons:

DemographicsDemographics

International OpportunitiesInternational Opportunities

New TechnologyNew Technology

Market ForcesMarket Forces

MobilMobil

Core Calibration forCore Calibration forPetrophysical AnalysisPetrophysical Analysis

JMAJMA

Geologic Data AnalysisGeologic Data Analysis

MobilMobil

Computer SimulationComputer Simulationand History Matchingand History Matching

MobilMobilJMAJMA

NCPGG / Schlumberger Joint NCPGG / Schlumberger Joint Training and Research CentreTraining and Research Centre

(Univ Adelaide)(Univ Adelaide)

Synergistic Synergistic Technologies: Technologies:

Integrated Workstation Integrated Workstation ApplicationsApplications

&&Visualisation CapabilitiesVisualisation Capabilities

FORMER PARADIGM:ISOLATED RESEARCH

Subject matter: Non-applied, “esoteric”

PRESENT REALITY: RELEVANTINTERACTIVE RESEARCH

Impact ofImpact ofIntegrated Reservoir ManagementIntegrated Reservoir Management

19701970 19751975 19801980 19851985 19901990 19951995 20002000 20052005 20102010 20152015 2020202000

2020

4040

6060

8080

100100

120120

140140

BO

D x

100

0B

OD

x 1

000

Production HistoryProduction History

Technology ImpactTechnology Impact

Neogene Deltaic ReservoirNeogene Deltaic Reservoir

Clayton, 1998Clayton, 1998

Technology Technology added added

significant significant new new

reservesreserves

Projected DeclineProjected Decline

The Importance of Developing Technologies

• New opportunities, some in old placesNew opportunities, some in old places– Sub-salt, sub-volcanic imagingSub-salt, sub-volcanic imaging– Deep water sequence stratigraphyDeep water sequence stratigraphy– Imaging of deep structureImaging of deep structure

• Technology leads to efficiency and Technology leads to efficiency and profitability, even at $15/bblprofitability, even at $15/bbl

• Emphasis upon computer technology and Emphasis upon computer technology and geological skillsgeological skills

• Infusion of new ideas into the workforceInfusion of new ideas into the workforce

Future OpportunitiesFuture Opportunities

New Ideas

New ToolsNew Tools

ChangedChangedEconomicsEconomics

New DiscoveriesNew Discoveriesin ‘Old’ Areasin ‘Old’ Areas

Assume:Assume:

Job Market Expectation By Employers

• Self-motivated

• Computer- literate

• Well - educated

• Team player

• Excellent communicator

Job Market ExpectationBy Employers

• Immediate Impact• Bottom Line Focus• High Productivity• Continuous Learning• Self Reliant

Expectation:Expectation:

Job Market ReadinessStudent Preparation

• Broadly Based• Balance of Theory

and Application

Education:Education:

• TargetedThesis:Thesis:

Job Market ReadinessStudent Preparation

• Think 4-D• Computer Workstation• English Proficiency

Skills:Skills:

• Self-motivated• Proactive

Traits:Traits:

Petroleum Industry CareersPetroleum Industry Careers Survival TrainingSurvival Training

• Strong basic-discipline training Strong basic-discipline training

• Competitive-edge in several skillsCompetitive-edge in several skills

• Excellent communication skillsExcellent communication skills

- Quantitative (space & time)Quantitative (space & time)- Workstation (computer)Workstation (computer)- InterpersonalInterpersonal- English LanguageEnglish Language

- Oral, written, graphicalOral, written, graphical

• Constant updating / expansion of skillsConstant updating / expansion of skills

Cyclic Job MarketCyclic Job Market

Rosy

Predi

ctio

n

?

?

?

?

Gro

wth

Employment (number of

jobs)

Employment (number of

jobs)

TimeTime

Timely ChangeTimely

ChangeTimely

ChangeTimely

Change

Continuous Learning Facilitates Timely ChangesContinuous Learning Facilitates Timely Changes

Discip

line

A

Discip

line

A

Discip

line

B

Discip

line

B

Discip

line

C

Discip

line

C

Professional SocietiesProfessional Societies

Local SocietiesLocal SocietiesGSM, IPA, etcGSM, IPA, etc TechnologyTechnology

DisseminatorsDisseminators

The Future for the Oil IndustryThe Future for the Oil Industry

• Dominant fuel source for 30-60 more yearsDominant fuel source for 30-60 more years

• Increased emphasis on enhanced Increased emphasis on enhanced recovery/production scale sedimentology/3-D recovery/production scale sedimentology/3-D visualisation/cross-disciplinary communicationvisualisation/cross-disciplinary communication

• Higher efficiency demands high workstation skill Higher efficiency demands high workstation skill levels as well as competency in fundamentalslevels as well as competency in fundamentals

• People provide the competitive edge (because People provide the competitive edge (because everyone has the same tools)everyone has the same tools)

Jobs for the best engineers / geoscientistsJobs for the best engineers / geoscientists

The Future…..