Petroleum engineers design and oversee drilling operations to extract oil and natural gas from underground reservoirs. They earned a median salary of $141,280 as of May 2023, but job growth is projected at just 1% from 2022 to 2032-well below average-as the industry produces more with fewer workers and faces energy transition pressures.
Thinking about petroleum engineering as a career? The salary numbers look impressive-some of the highest in engineering. But here's what we need to talk about: this field's at a crossroads, and the long-term outlook is more complicated than the paycheck suggests.
We've spent 20+ years tracking engineering careers, and petroleum engineering sits in a unique spot right now. The industry is producing record amounts of oil and gas with fewer workers than a decade ago, and that trend isn't reversing. If you're considering this path, you need the full picture-both the opportunities and the challenges ahead.
What Does a Petroleum Engineer Do?
Petroleum engineers figure out the best way to get oil and natural gas out of the ground. It's not just about drilling holes-it's about solving complex engineering problems to extract resources safely, efficiently, and economically.
Here's what the day-to-day looks like: You'll evaluate reservoirs to determine if they're worth drilling. You'll examine geology at future drilling sites to plan the safest extraction method. You'll manage equipment installation and operation, and you'll monitor production yields to squeeze every possible barrel out of a well.
Since current techniques only recover part of what's underground, petroleum engineers also develop new drilling technologies and extraction methods. You're basically asking: "How do we get more out of this reservoir while keeping people safe and protecting the environment?"
Most petroleum engineers specialize in one area. Reservoir engineers determine how much oil or gas you can realistically extract from a deposit and design the recovery strategy. Drilling engineers plan the actual drilling process-choosing equipment, determining well depth, and ensuring operations stay safe and cost-effective. Completion engineers design the well infrastructure so that oil and gas flow to the surface efficiently. Production engineers monitor output and troubleshoot underperforming wells.
The work matters because petroleum engineers make drilling safer for communities and the environment. They also keep energy prices more affordable by improving extraction efficiency. And increasingly, they're applying these skills beyond traditional oil and gas-to carbon capture, geothermal energy, and hydrogen storage.
Where Do Petroleum Engineers Work?
You'll split your time between offices and field sites-sometimes in places most people would call remote. According to recent BLS industry data, about 32% of petroleum engineers work directly in oil and gas extraction, while 25% provide support services for mining operations. Another 10% work for corporate management firms, 7% in petroleum and coal products manufacturing, and 4% in engineering services.
Office work involves planning, analysis, and design. But fieldwork? That's where reality hits. You might spend weeks at offshore platforms in the Gulf of Mexico or at drilling sites in West Texas, Alaska, or North Dakota. International assignments aren't uncommon-companies drill everywhere from the North Sea to the Middle East.
Expect long hours when you're on field or on offshore assignments. The field standard is often 84-hour rotations, meaning you work 12-hour shifts for seven days straight, then get time off. Office-based roles typically follow more conventional schedules, but when you're on-site, the hours are intense. Many engineers find the focused work periods followed by extended breaks work well for them.
Here's what they don't always tell you: Remote locations can be challenging. Limited cell service, basic accommodations, extreme weather-it's part of the package. If you're someone who needs to be home every night, this might not be your field. But if you don't mind adventure and can handle the isolation, the work can be incredibly rewarding.
Petroleum Engineer Salary & Compensation
Let's talk money. According to the U.S. Bureau of Labor Statistics, petroleum engineers earned a median annual salary of $141,280 as of May 2023. That's nearly triple the median for all occupations ($49,500) and significantly higher than the engineering median ($106,070).
But there's a wide range depending on experience and where you work:
| Percentile | Annual Salary (May 2023) |
|---|---|
| 10th (Entry-level) | $77,340 |
| 25th | $104,020 |
| 50th (Median) | $141,280 |
| 75th | $176,990 |
| 90th (Top earners) | $225,920 |
Your employer makes a big difference. Engineers working for corporate management firms earn around $170,090 median, while those in oil and gas extraction average $164,960. Engineering services firms pay less-typically around $126,070.
Geography matters too. Texas employs 58% of all petroleum engineers (about 11,870 positions) and pays a mean salary of $155,290. The Houston metro area alone accounts for 5,850 jobs. Other high-employment states include Oklahoma, Colorado, Louisiana, and Alaska. Interestingly, some states with minimal employment offer the highest pay-New Jersey tops the list at $206,490 mean annual wage, though they only employ about 100 petroleum engineers.
Job Demand & Industry Reality
Here's where we need to be straight with you. The BLS projects petroleum engineering employment will grow just 1% from 2022 to 2032. That's significantly slower than the 3% average across all occupations. We're talking about adding only 200 net jobs to the current base of approximately 19,600 positions over the entire decade.
But-and this is important-there will be roughly 1,200 job openings per year. Why? Because experienced engineers retire or change careers. So opportunities exist, just not from industry expansion.
What's driving this tepid outlook? The industry's getting more efficient. Companies are producing more oil and gas with fewer workers through automation and technology. Several major oil companies have recently announced significant workforce reductions as part of broader industry consolidation and efficiency initiatives.
The energy transition's also a factor. As the world shifts toward renewable energy and companies face pressure to reduce carbon emissions, traditional oil and gas extraction faces long-term headwinds. Oil prices remain volatile, and drilling projects get greenlit or shelved based on global markets-meaning job security can be less stable than other engineering fields.
Does this mean petroleum engineering's a dead end? Not necessarily. If you're willing to adapt, your drilling and reservoir management skills transfer well to emerging sectors-carbon capture and storage, geothermal energy development, and subsurface hydrogen storage all need engineers who understand what petroleum engineers do. Universities report that petroleum engineering programs are increasingly focusing on these alternative applications rather than just conventional oil and gas extraction.
Career Advancement & Alternative Paths
Let's talk about where your career can go. Many petroleum engineers start as field engineers, working directly at drilling sites and learning operations hands-on. After 3-5 years, you might move into reservoir engineering or drilling engineering roles with more responsibility and better pay-typically jumping from that $104,000 range to $140,000-$165,000.
With 8-10 years of experience and strong performance, management becomes an option. Senior engineers and engineering managers often earn $175,000-$225,000+, overseeing teams and major projects. Some eventually reach director-level positions coordinating entire drilling programs.
Not everyone wants to climb the management ladder, though. Some engineers use their technical expertise to become sales engineers, helping oil service companies sell drilling equipment and technology to operators. The commission structure can be lucrative if you're good at it.
Others start consulting firms that provide specialized services to larger companies-reservoir analysis, enhanced recovery techniques, or regulatory compliance expertise. It's entrepreneurial and risky, but you keep more of what you earn.
And here's an increasingly common path: pivoting to adjacent fields. Geothermal energy companies are actively recruiting petroleum engineers right now. Environmental engineers with drilling backgrounds are valuable for carbon capture projects. Some petroleum engineers transition into mining engineering or even into renewable energy development, applying subsurface expertise to new problems.
The bottom line? Your salary can grow significantly with experience-from $77,000 at the entry level to well over $200,000 for top performers. But increasingly, the best long-term prospects might involve using petroleum engineering as a foundation for work in emerging energy sectors.
How Do I Become a Petroleum Engineer?
You'll need a bachelor's degree at a minimum. Most employers want petroleum engineering specifically, but some will hire graduates with degrees in chemical engineering, mechanical engineering, or civil engineering-especially if you can demonstrate relevant coursework or internship experience.
Look for ABET-accredited programs. Accreditation matters to employers and is required if you eventually want professional engineering (PE) licensure. Your coursework will cover engineering fundamentals, geology, thermodynamics, fluid mechanics, and drilling technology. Expect a heavy math and physics foundation-calculus, differential equations, and chemistry are prerequisites.
Here's what separates competitive candidates: internships and co-op programs. Companies heavily favor graduates who've actually worked in the field during college. These programs let you earn academic credit while gaining real job experience, and they often lead directly to full-time offers after graduation. We've seen it happen countless times-students with strong co-op experience get hired immediately, while those with just classroom learning struggle to land that first position.
Is a graduate degree necessary? Not for entry-level work. But a master's can help you advance faster, especially into research or specialized roles. Universities are increasingly offering programs focused on carbon management, enhanced recovery techniques, and subsurface energy storage-positioning graduates for both traditional and emerging opportunities. Consider a geoscience degree or specialized training in reservoir engineering if you want to stand out.
What about costs and ROI? Petroleum engineering programs aren't cheap-tuition at major programs can run $40,000-$60,000 per year for out-of-state students. But starting salaries around $77,000-$100,000 mean you can pay off student loans faster than in many other fields. Just remember that career stability is less certain now than it was a decade ago, so borrowing six figures for this degree carries more risk than it used to.
Petroleum Engineer - Related Degrees
Petroleum Engineer Licensure
Do you need a professional engineering (PE) license? It depends on what you want to do. If you plan to offer services directly to the public or sign off on engineering documents, you'll need it. Most petroleum engineers working for oil companies don't pursue licensure because it's not required for those positions. But having your PE can open doors to consulting work and demonstrate a higher level of professional competency.
Here's the path to licensure:
Step 1: Graduate from an ABET-accredited program. This is your foundation-most states won't even let you sit for the exams without it.
Step 2: Pass the Fundamentals of Engineering (FE) exam. You can take this right after graduation. It's an 8-hour computer-based exam covering general engineering principles. Pass this, and you're officially an Engineer in Training (EIT) or Engineer Intern (EI).
Step 3: Gain four years of relevant work experience. You need to work under a licensed PE during this time. The experience requirement varies slightly by state, but four years is standard.
Step 4: Pass the Principles and Practice of Engineering (PE) exam. This is the final hurdle-an exam specific to your discipline that tests your ability to practice independently.
Once licensed, most states require continuing education to maintain your license-typically 15-30 professional development hours per year. And if you move states, you'll need to verify that your license transfers. Most states have reciprocity agreements if your original state's requirements meet or exceed theirs.
There's also an optional certification through the Society of Petroleum Engineers (SPE). It's not required, but it shows commitment to your profession. You'll need an undergraduate petroleum engineering degree (or related science), four years of experience, SPE membership, and a passing score on their exam.
Professional Societies & Organizations
Connecting with professional organizations can significantly enhance your career. These groups offer networking, continuing education, industry insights, and job boards.
The Society of Petroleum Engineers (SPE) is the leading organization for petroleum engineering professionals worldwide. SPE provides technical knowledge sharing, professional development programs, and optional certification. Membership gives you access to industry conferences, technical papers, webinars, and a global network of professionals. They also administer the optional professional certification exam.
The National Society of Professional Engineers (NSPE) serves the broader engineering community and is the go-to authority on licensure, ethics, and professional practice. NSPE hosts a job board, provides salary surveys, offers mentoring programs, and delivers resume writing services. They organize six interest groups covering construction, government, higher education, industry, private practice, and young engineers-helpful for connecting with peers in your specific area.
Frequently Asked Questions
Is petroleum engineering a good career in 2025?
It's complicated. The pay is excellent-median $141,280 as of May 2023, making it one of the highest-paid engineering fields. But job growth is minimal at 1% from 2022 to 2032, and the industry faces long-term uncertainty from the energy transition and automation. If you're comfortable with volatility and willing to adapt your skills to emerging sectors like carbon capture or geothermal energy, it can be rewarding. If you need stability and predictable growth, other engineering paths might serve you better.
How long does it take to become a petroleum engineer?
Plan on four years for your bachelor's degree, then typically 1-2 years to land a solid entry-level position and gain your footing. If you pursue PE licensure, add another four years of work experience before you can take the final exam. So you're looking at 5-6 years minimum from starting college to becoming an established engineer, or 9-10 years if you go the licensure route.
Can petroleum engineers transition to renewable energy careers?
Absolutely, and it's becoming increasingly common. Your drilling expertise translates directly to geothermal energy development. Reservoir management skills apply to subsurface hydrogen storage and compressed air energy storage. Carbon capture projects need engineers who understand injection wells and subsurface geology. Many renewable energy companies actively recruit petroleum engineers because the technical fundamentals overlap significantly. You might need some additional training in new technologies, but your core competencies are highly transferable.
What's the difference between petroleum engineering and chemical engineering?
Petroleum engineering focuses specifically on extracting oil and gas from underground reservoirs-drilling, well completion, and reservoir management. Chemical engineering is broader, dealing with chemical processes and manufacturing across many industries-pharmaceuticals, food production, materials science, and yes, refining petroleum products. Chemical engineers might work in a refinery turning crude oil into gasoline, while petroleum engineers work upstream, getting that crude oil out of the ground. There's overlap in thermodynamics and fluid mechanics, but the career applications are quite different.
Do petroleum engineers work offshore?
Some do, especially if you work in regions with significant offshore drilling like the Gulf of Mexico. Offshore work typically involves longer rotations-you might work 14 days on a platform followed by 14 days off. The pay is often higher to compensate for the demanding schedule and isolation. But plenty of petroleum engineers work exclusively on land-based operations or in office roles coordinating projects. Where you work depends largely on which company you join and which geographical regions they operate in.
Key Takeaways
- Exceptional pay, limited growth: Median salary of $141,280 (May 2023) ranks among the highest in engineering, but job growth is just 1% from 2022 to 2032 as the industry becomes more efficient with fewer workers.
- Education pathway requires commitment: You'll need a bachelor's degree from an ABET-accredited program (preferably petroleum engineering), with internships or co-op experience essential for landing that first job. PE licensure is optional but valuable for consulting work.
- Industry faces transition pressures: Traditional oil and gas extraction is volatile due to global oil prices, energy transition policies, and automation. The sector is consolidating with recent workforce reductions despite record production levels.
- Specialization shapes your work: Whether you focus on reservoir engineering, drilling, completions, or production determines your daily responsibilities. Field and offshore rotations can mean weeks away from home at remote locations with intense schedules, while office roles follow more conventional hours.
- Skills transfer to emerging sectors: Your expertise in drilling, subsurface geology, and reservoir management applies directly to carbon capture, geothermal energy, and hydrogen storage-potentially more stable long-term career paths than traditional oil and gas.
Ready to explore engineering careers that align with your goals? Compare petroleum engineering with related fields to find the best fit for your interests and career priorities.
2023 US Bureau of Labor Statistics salary and job growth figures for petroleum engineers reflect national data, not school-specific information. Conditions in your area may vary. Data accessed January 2026.
