Although worldwide demand for oil and gas is expected to grow, overall wage and salary employment in the oil and gas extraction industry is expected to decline by 28 percent through the year 2012, while employment in all industries combined is projected to increase by16 percent. Employment in establishments that contract work to larger oil companies, such as drilling and operating wells, will likely experience greater fluctuations in employment.

The level of future crude petroleum and natural gas exploration and development and, therefore, employment opportunities, remain contingent upon a number of uncertainties-most importantly, the future price of oil and gas. Sharply higher prices mean that companies, seeking greater profits, can be expected to implement new technologies, expand domestic and international exploration and production, and increase employment. Substantially lower prices, on the other hand, could make exploration and continued production from many existing wells unprofitable, resulting in reduced employment opportunities. Stable and favorable prices are needed to allow companies enough revenue to expand exploration and production projects in order to meet increased global energy demand. Stable oil prices also would allow for more stable employment levels, instead of the boom and bust that has affected the industry for the past few decades. However, maintaining high and stable prices is difficult, especially during economic downturns.

Environmental concerns, accompanied by strict regulation and limited access to protected Federal lands, also continue to have a major impact on this industry. Environmental constraints, especially restrictions on drilling in environmentally sensitive areas, should continue to limit exploration and development, both onshore and offshore. However, changes in policy could expand exploration and drilling for oil and natural gas in currently protected areas, especially in Alaska.

In addition, environmental emissions standards already in place or planned for the future could significantly limit the amount of sulfur and carbon dioxide levels that can be emitted by powerplants. Many new powerplants run on natural gas, as opposed to coal, which emits higher levels of sulfur into the atmosphere. The natural gas exploration and production industry, and its employment, would benefit from the increasing demand for cleaner-burning fuels. However, a lack of proper infrastructure for transporting natural gas, which is found mainly in unpopulated areas or offshore, currently limits natural gas consumption.

While some new oil and gas deposits are being discovered in this country, companies increasingly are moving to more lucrative foreign locations. As companies expand into other areas around the globe, the need for employees in the United States is reduced. However, advances in technology have increased the proportion of exploratory wells that yield oil and gas, enhanced offshore exploration and drilling capabilities, and extended the production of existing wells. As a result, more exploration and development ventures are profitable and provide employment opportunities that otherwise would have been lost.

Despite an overall decline in employment in the oil and gas extraction industry, job opportunities in most occupations should be favorable. The need to replace workers who transfer to other industries, retire, or leave the workforce will be the major source of job openings as more workers in this industry approach retirement age, and others seek more stable employment opportunities in other industries. Employment opportunities will be best for those with previous experience and with strong technical skills. There is strong demand for qualified professionals and extraction workers who have significant experience in oil field operations and who can work with new technology. As employers develop and implement new technologies-such as 3-D and 4-D seismic exploration methods, horizontal and directional drilling techniques, and deepwater and subsea technologies-more workers capable of using sophisticated equipment will be needed.