The oil and gas workforce has declined sharply in the past 20 years and there are few signs of any significant growth ahead, according to results by a recent Ernst & Young LLP study. The firm notes that while the number of enrollees in the nation's top petroleum engineering schools has risen in the past few years, today's enrollment numbers pale in comparison to 1984 when the price of oil was reaching record highs. After commodity prices collapsed in 1986, technical, professional and field workers left the industry by the hundreds of thousands, "headed for what they believed to be greener pastures," says Charles Swanson, Ernst & Young director, Americas, oil and gas, and based in Houston. Then, he points out, when industry recovery came, those same workers didn't return and weren't replaced with new talent. According to the U.S. Bureau of Labor Statistics, the number of petroleum engineers dropped from a 1983 level of 33,000 to 18,000 in 2002. Similarly, the ranks of geologists and geophysicists during that same period contracted from 65,000 to 48,000. "Obviously, a dilemma 20 years in the making won't be solved overnight," says Swanson. "But by focusing our efforts, enhancing the industry's image and prioritizing existing resources, the trend can be reversed." For starters, he says, the industry must enhance its work with colleges and universities to educate young people about the opportunities in, and the highly technical nature of, the industry. "Though the oil and gas industry, by and large, has an unsophisticated image, it is one of the most technologically advanced industries available to scientifically inclined workers." Swanson also believes the industry must work to improve its image by emphasizing the contributions it makes to the world. Meanwhile, as a short-term solution, companies within the industry can begin attracting young professionals by wisely taking the dollars they have available for compensation and earmarking those for hiring and retaining talented technical workers while outsourcing noncore functions, he says. "This will allow companies to focus on what they do best, which has become increasingly difficult given today's overwhelming accounting and reporting requirements." Swanson adds that any successful strategies for reversing the industry workforce decline are long-term and won't increase the number of graduates in the oil and gas fields, even during the next few years. These strategies will, however, "help companies weather current shortages and build the framework for long-term improvement," he says. -Brian A. Toal

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