Abstract The supply of Petroleum Engineers within the U. S. has shown an exponential growth during the last decade due to increases in the price of petroleum and concommitant demand for engineers in the petroleum industry at all levels of activity. Schools currently have very large enrollments; many lack sufficient faculty and facilities to adequately handle the large loads. Recent uncertainty in long range forecasting of petroleum demand, coupled with uncertainty in the price of oil due to turmoil in the Middle East and the discovery of additional large reserves of petroleum as a result of increased drilling, has led to a decline of approximately 25% in the price of crude oil on the spot market and subsequent reductions in drilling in 1982 from a high of 4,500 rigs in the U. S. to 2528 rigs by August 31, 1982; a reduction of 44% this year. This reduction in activity will be reflected in reduced job opportunities for many new graduates in December 1982 and in 1983, and the "pipelines" within the schools are filled with students in expectation of good jobs in the private sector of the economy. Since Petroleum Engineering departments maintain a close tie with industry, it is essential that some balance be maintained between supply and demand, so as to try to prevent a glut of engineers descending upon the market. Steps are underway at many schools to reduce enrollments by a variety of methods at the present time. An upturn in demand in petroleum prices may serve to mitigate the problem within the next two years, but a long-range interchange between industrial hiring forecasts and universities is essential in planning for the future.