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Sunday, 20 July, 2008, 21:00 GMT | more prices >>

Staff shortage hits energy projects

By Upstream staff

Engineering staff shortages will be the biggest constraining factor for energy projects in the medium term, said Schlumberger chief Andrew Gould.

“The only real constraint is the availability of people with experience and education. It's the result of underinvestment in new talent,” he said.

Reuters quoted Gould as saying that while a lack of lack of equipment could be solved in a short time frame, the cyclical nature of the industry with thousands of jobs shed in recent years hampered recruitment.

Exploration companies say that a tight oil services sector is adding to the difficulties and costs of developing projects to increase oil production.

“A shortage exists at all levels,” he said, adding that US universities were producing a fraction of engineering graduates compared with previous years, despite overall student numbers rising.

Gould said these technology-savvy youngsters were needed in an industry that could see companies increasingly drilling for oil from the office.

“New automation and communication technologies are likely to provide part of the answer,” he said. “If we can drill holes on Mars, there's no technical constraint.”