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Petroleum engineering is involved in the exploration and production activities of petroleum as an upstream end of the energy sector. Upstream refers to the process of finding and extracting oil, which is usually buried deep beneath the earth's surface, to provide a continuous supply to consumers "downstream". Petroleum engineering covers a wide range of topics, including economics, geology, geochemistry, geomechanics, geophysics, oil drilling, geopolitics, knowledge management, seismology, tectonics, thermodynamics, well logging, well completion, oil and gas production, reservoir development, and pipelines.

Petroleum engineering has become a technical profession that involves extracting oil in increasingly difficult situations as the "low hanging fruit" of the world's oil fields are found and depleted. Improvements in computer modeling, materials and the application of statistics, probability analysis, and new technologies like horizontal drilling and enhanced oil recovery, have drastically improved the toolbox of the petroleum engineer in recent decades.

As mistakes may be measured in millions of dollars, petroleum engineers are held to a high standard. Deepwater operations can arguably be compared to space travel in terms of technical challenges. Arctic conditions and conditions of extreme heat have to be contended with. High Temperature and High Pressure (HTHP) environments that have become increasingly commonplace in today's operations require the petroleum engineer to be savvy in topics as wide ranging as thermohydraulics, geomechanics, and intelligent systems.

Petroleum engineers must implement high technology plans with the use of manpower, highly coordinated and often in dangerous conditions. The drilling rig crew and machines they use become the remote partner of the petroleum engineer in implementing every drilling program. Understanding and accounting for the issues and communication challenges of building these teams remain just as vital to the petroleum engineer as ever.

The Society of Petroleum Engineers is the largest professional society for petroleum engineers and publishes much information concerning the industry. Petroleum engineering education is available at 17 universities in the United States and many more throughout the world - primarily in oil producing states - but not only top producers, and some oil companies have considerable in house petroleum engineering training classes.

Petroleum engineers have historically been one of the highest paid engineering disciplines; this is offset by a tendency for mass layoffs when oil prices decline. According to a survey published in Dec 2006 the average income was $116,834.

Petroleum engineers divide themselves into several types:

• Reservoir engineers work to optimize production of oil and gas via proper well placement, production levels, and enhanced oil recovery techniques.
• Drilling engineers manage the technical aspects of drilling both production and injection wells.
• Production engineers manage the interface between the reservoir and the well, including perforations, sand control, artificial lift, downhole flow control, and downhole monitoring equipment; they also select surface equipment that separates the produced fluids (oil, natural gas, and water).

• Engineering

• The Society of Petroleum Engineers
• Schlumberger Oilfield Glossary: An Online Glossary of Oilfield Terms