Petroleum Engineer Salary in USA 2025
Oil & gas sector, reservoir, drilling, and production engineering
Average Petroleum Engineer Salary
How Much Do Petroleum Engineers Earn in 2025?
Petroleum engineers design and develop methods for extracting oil and gas from deposits below the earth's surface. They work in drilling, production, reservoir analysis, and completion engineering across upstream oil and gas operations.
2025 petroleum engineer salaries are among the highest in engineering: average $100,000–$150,000, with entry-level starting at $75,000–$95,000 and senior engineers earning $150,000–$220,000+. BLS reports median annual wage of $131,800—one of the highest for any engineering discipline.
Specialization significantly impacts pay: reservoir engineers command $120,000–$170,000, drilling engineers $110,000–$160,000, and completions engineers $115,000–$165,000. Oil prices and industry cycles affect compensation—bonuses and job security fluctuate with energy markets. For context, see the average salary in the US and jobs that pay $100K.
Petroleum Engineer Salary Snapshot
| Metric | Value |
|---|---|
| BLS Median | $131,800 |
| National Average Range | $100,000–$150,000 |
| Entry-Level (0–2 yrs) | $75,000–$95,000 |
| Mid-Level (3–7 yrs) | $100,000–$135,000 |
| Senior (7+ yrs) | $135,000–$180,000 |
| Principal/Staff | $160,000–$220,000+ |
| Bonus (typical) | 10–30% (tied to oil prices) |
Use our salary calculator to convert rates.
Petroleum Engineer Salary by Specialization
Specialization creates salary differences:
| Specialization | Salary Range | Focus Area |
|---|---|---|
| Reservoir Engineer | $120K–$170K | Subsurface analysis, simulation |
| Completions Engineer | $115K–$165K | Well completion design |
| Drilling Engineer | $110K–$160K | Drilling operations |
| Production Engineer | $100K–$145K | Well optimization |
| Facilities Engineer | $95K–$140K | Surface facilities |
Reservoir Engineer (Highest Pay)
Salary: $120,000–$170,000
Analyzes subsurface reservoirs, builds simulation models, estimates reserves, and optimizes recovery strategies. Requires advanced technical skills and often graduate degrees. Strategic role in asset development.
Drilling Engineer
Salary: $110,000–$160,000
Designs and supervises drilling operations. Field rotation common—offshore or remote locations often include additional allowances (housing, per diem, rotation bonuses).
Production Engineer
Salary: $100,000–$145,000
Optimizes producing wells, manages artificial lift, troubleshoots production issues. Often office-based with field visits.
Petroleum Engineer Salary by Experience Level
| Experience Level | Salary Range | Typical Responsibilities |
|---|---|---|
| Entry-level (0–2 yrs) | $75K–$95K | Field support, analysis |
| Mid-level (3–7 yrs) | $100K–$140K | Project ownership |
| Senior (7–15 yrs) | $140K–$185K | Technical leadership |
| Principal (15+ yrs) | $170K–$230K | Strategic advisory |
| Management | $180K–$300K+ | Team/asset leadership |
Entry-Level Petroleum Engineer (0–2 Years)
Salary: $75,000–$95,000
Focus: Field rotations, data analysis, supporting senior engineers, learning operations.
Requirements: BS in Petroleum Engineering, Mechanical, Chemical, or related field. Internship experience valuable.
Senior Petroleum Engineer (7–15 Years)
Salary: $140,000–$185,000
Focus: Lead projects, mentor juniors, interface with asset teams, technical decision-making.
Petroleum Engineer Salary by Location
| Location | Salary Range | Key Factors |
|---|---|---|
| Houston, TX | $110K–$170K | Oil & gas capital, most jobs |
| Midland/Permian Basin | $115K–$175K | Field premium, high demand |
| Denver, CO | $100K–$155K | Rockies operations |
| Oklahoma City | $95K–$145K | Mid-Continent hub |
| Alaska | $120K–$180K | Remote premium |
| Offshore (Gulf of Mexico) | $130K–$200K+ | Rotation allowances |
| National Average | $100K–$150K | Baseline |
Houston (Industry Capital)
Salary: $110,000–$170,000
Global oil and gas headquarters. ExxonMobil, Chevron, ConocoPhillips, Shell, BP, and hundreds of independents and service companies. Most petroleum engineering jobs in the US.
Permian Basin (Midland-Odessa)
Salary: $115,000–$175,000 (+5–10% field premium)
Most active US drilling region. High demand, field housing/allowances often included. Lower cost of living improves purchasing power.
Offshore
Salary: $130,000–$200,000+
Gulf of Mexico offshore roles include rotation schedules (14/14, 28/28), housing, and premium pay for remote/hazardous conditions.
Petroleum Engineer Salary by Company Type
| Company Type | Salary Range | Characteristics |
|---|---|---|
| Supermajors (Exxon, Chevron, Shell) | $110K–$180K + bonus | Best benefits, stability |
| Large Independents | $105K–$170K | Growth opportunities |
| Mid-size Independents | $95K–$155K | Broader experience |
| Service Companies (SLB, Halliburton) | $85K–$140K | Technical depth, travel |
| Consulting | $100K–$175K | Project variety |
Supermajors (Highest Stability)
Salary: $110,000–$180,000 + 15–30% bonus
ExxonMobil, Chevron, Shell, BP, TotalEnergies. Best benefits, international opportunities, structured career paths. More resilient during downturns.
Service Companies
Salary: $85,000–$140,000
Schlumberger, Halliburton, Baker Hughes. Technical specialization, extensive travel, faster promotions possible. More exposure to industry cycles.
How to Increase Your Petroleum Engineer Salary
Specialize in Reservoir Engineering
Reservoir engineers earn $120K–$170K versus production $100K–$145K (+15–20%).
Target Supermajors
Supermajors pay $110K–$180K+ versus service companies $85K–$140K (+25–30%).
Consider Offshore/Remote Assignments
Offshore pays $130K–$200K+ with rotation allowances versus onshore $100K–$150K.
Pursue Advanced Degree
MS adds $10K–$20K. PhD opens research/specialist roles ($150K–$200K+).
Develop Business Skills
MBA enables transition to asset management, business development ($150K–$250K+).
International Assignments
Expatriate packages often include 25–50% premium plus housing, education, and hardship allowances.
See our salary negotiation guide for strategies.
Career Path and Related Roles
| Career Stage | Position | Salary Range |
|---|---|---|
| Entry | Petroleum Engineer I | $75K–$95K |
| Mid | Petroleum Engineer II/III | $100K–$140K |
| Senior | Senior Petroleum Engineer | $140K–$185K |
| Principal | Principal/Staff Engineer | $170K–$230K |
| Management | Engineering Manager | $180K–$250K |
| Executive | VP Engineering/Asset | $250K–$400K+ |
Related Roles
Chemical Engineer: $80,000–$120,000
Mechanical Engineer: $75,000–$110,000
Geologist: $70,000–$120,000
Frequently Asked Questions
What is the average petroleum engineer salary in 2025?
Petroleum engineers earn $100,000–$150,000 on average. BLS reports median of $131,800—one of the highest for any engineering discipline. Entry-level earns $75,000–$95,000, senior $140,000–$185,000, and principal $170,000–$230,000.
Can petroleum engineers make $200K?
Yes. Senior reservoir engineers earn $150K–$180K. Principal engineers reach $170K–$230K. Offshore roles pay $130K–$200K+. Management positions start at $180K–$250K+. See jobs that pay $100K.
Is petroleum engineering still a good career?
It depends on risk tolerance. Highest-paying engineering field with excellent compensation. However, industry is cyclical—layoffs common during oil price downturns. Energy transition creating uncertainty long-term. Best for those passionate about energy and comfortable with cyclical employment.
Where do petroleum engineers get paid the most?
Houston ($110K–$170K) has most jobs. Permian Basin ($115K–$175K) and Alaska ($120K–$180K) pay field premiums. Offshore Gulf of Mexico ($130K–$200K+) highest with rotation allowances. International assignments add 25–50% for expatriate packages.
How do oil prices affect petroleum engineer salaries?
Significantly. High oil prices = aggressive hiring, large bonuses (20–40%), and job security. Low prices = layoffs, frozen salaries, reduced bonuses. Supermajors more stable; service companies and independents more volatile. Base salaries relatively stable; variable compensation (bonuses) fluctuates most.