US developers see hope in abandoned oil wells

“The US sits on 3 per cent of the world’s proved oil reserves and accounts for more than a fifth of global consumption, making nonsense of the “energy independence” stances of both presidential candidates. But it has spare oil a-begging.”

The most interesting part is tucked away in the last couple of paragraphs…

Developers like Cano need investors prepared to bet on oil prices staying high. But reopening old wells has also highlighted a skills shortage in the industry. US oil companies laid off some 100,000 staff in the late 1980s and early 1990s. A $50 barrel doesn’t bring them all back.

“Some companies are having difficulty finding people to fill positions,” says Mark Rubin, executive vice-president of the Society of Petroleum Engineers in Dallas.

Mr Rubin says the problem is exacerbated by the “Big Crew Change”, with the average age of petroleum engineers in the US creeping up to 49, compared with 42 in the rest of the world. “There is a question mark as to whether enough engineers are coming out of college to take their place,” he says.

Financial Times