Good morning; here's what the Oilman has for you today:

• Oil Industry Faces Massive Talent Shortage

• U.S. Oil Output Set for Record This Year

• Upcoming Oil and Gas Events

• Tweet of the Day

Oil Industry Faces Massive Talent Shortage

Oil companies are raking in record profits, but they’re facing a serious problem.

There are not enough young professionals entering the industry.

Scaring people away from careers

One big reason for the talent shortage in oil is young people’s concern about the climate.

So reports the WSJ, adding that the problem is present in both the U.S. and Europe.

It also creates another problem.

With the industry’s vilification as a single culprit for climate change, people can’t be sure about long-term job security.

As a result, petroleum engineering enrollment rates are shrinking.

People don’t want to work in the oil industry.

Can’t really blame them.

If you’re subjected to a constant flow of “Everything’s Big Oil’s fault,” you’ll give up sooner or later.

Especially with oil companies getting kicked out of job fairs and direct recruitment at universities.

A massive opportunity for the smart kids

It’s all about demand and supply.

The fewer petroleum engineers graduate every year, the greater the demand for them.

The higher salaries they would command and the greater job security they’d have.

Because oil and gas are going nowhere.

The only ones who can’t see it are the ones too busy banning oil companies from job fairs.

And the ones who ignore news like this report about Big Oil building offshore wind.

And this one is about more offshore wind getting built by Big Oil.

Because they have the money (from oil) and the expertise.

Yep. Oil’s not going anywhere, but it will have trouble with its future workforce.

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U.S. Oil Output Set for Record This Year

Oil production in the United States should reach 12.8 million barrels daily this year.

That’s according to the EIA, which also forecasts output will surge further to 13.1 million bpd in 2024.

Thanks, Saudi Arabia

Higher prices were one reason the EIA cited for its updated output forecast.

Higher prices are the result of OPEC+ curbs.

Of course, the biggest “curb” was Saudi Arabia’s voluntary 1-million-bpd cut.

Once again, by working in their own interests, the Saudis are also working in the interests of U.S. oil.

The other reason for the record projection is higher than expected well productivity.

This productivity story is turning into the hit of the season.

Just when some thought U.S. shale was over, we get surprisingly high productivity.

The time for efficiency gains in the patch is not over yet.

Beware the pitfalls of high prices

Whenever OPEC+ decides to cut output to push prices higher, U.S. drillers also benefit.

Previously, they have wasted the benefit by boosting production; costs be damned.

Which has inevitably pressured prices. And generated losses.

This time could be different.

This time, drillers seem to have internalized the vicious circle of high prices-more production-low prices-bankruptcy for many.

The best thing, however, is the efficiency gains in the shale patch.

This means that we’re getting more oil for the same money.

But it could become a trap, too, if you let it.

When your output rises, but costs don’t, it’s tempting to bet all on higher output.

Luckily, there’s so much U.S. oil going out into the world.

The reason this is lucky is that the market has become sensitive to U.S. production changes.

And this means higher production would pressure prices.

This pressure, in turn, will keep drillers on the straight and narrow of capital discipline.

Upcoming Oil & Gas Events

• August 13-15: GO-WV Summer meeting, The Greenbrier, White Suplhur Springs WV

• August 13-16: EnerCom Denver, The Westin Denver Downtown Denver

• August 16-17: Petroleum Alliance of Oklahoma Flycatcher Fly Fishing Tournament Beavers Bend, OK

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