One significant factor that will continue putting pressure on the oil and gas industry is the declining number of petroleum engineers (PE) available, according to a report by Raymond James & Associates. The latest statistics from the Society of Petroleum Engineers puts the average age of PEs in the United States at 51 compared to 41 internationally. About 59% of PEs in the U.S. in 2003 were 45 or older (compared to 45% in 1997) and only 25% are under 36 (compared to 33% in 1997), Raymond James said.

“The ‘graying of the oil patch’ is arguably an even more acute problem [than underinvestment in infrastructure], because while a rig can be built in months, it takes many years to train a new petroleum professional,” said Raymond James analyst Jeffrey L. Mobley. “Of course, this is not...