Acquisitions have traditionally been measured by their fungible assets, such as associated production-the price per flowing barrel of oil equivalent (BOE). And this metric is setting new records in the U.S. For example, Whiting Petroleum's planned purchase of most of Celero Energy's West Texas and Oklahoma assets is at an average price of more than $100,000 per flowing BOE. More often, deals are broken down by the associated proved, probable and possible-or 3P-reserves. In that category, new U.S. records are being set as well. Houston-based Randall & Dewey reports that first-half 2005 average prices paid for U.S. proved reserves were $11.53 per BOE. (For more on this, see "U.S. M&A" in this issue.) In Canada, the first-half average was C$14.84 for proved plus probables, according to Sayer Securities Ltd. (See "NewsWell" in this issue.) In both cases, the figures are double that of just a few years ago. Third-quarter averages are bound to be higher. Mariner Energy plans to pay $20.40 per proven BOE for Forest Oil's Gulf of Mexico assets. (See "Company Briefs" in this issue.) And, at press time, Norsk Hydro announced a bid for Spinnaker Exploration for $41.29 per proved BOE. Yet, coming soon may be an additional way to measure the value of North American acquisitions-whether people come with them. Not long ago, having to lay off employees was put in the merger-liability column in corporate transactions. Today, gaining personnel may be a bonus. Call it the fourth "P." Chevron Corp. mentions Unocal's employees several times in its announcement of the merger closing. David J. O'Reilly, Chevron chairman and chief executive, says, "Chevron has proven technical and financial capabilities to maximize the full value of Unocal's world-class assets, and Unocal's talented employees worldwide will enhance our organizational capability." Chevron is retaining more than 5,000 Unocal employees, and has made employment offers to most of the 1,400 others. It is probably the first large upstream merger David Preng has seen in which so many seemingly overlapping staff members were aggressively retained. Preng is founder and president of 25-year-old upstream executive-recruiting firm Preng & Associates. In past mergers in which most employees were kept, these were often instances in which the buyer was not already in the seller's business or didn't have a large presence, or saw the opportunity to add high-potential talent, he says. The rush to add upstream executives and professionals began for Preng the day after Labor Day 2004. Business had been strong at the firm. That Tuesday, the phone began ringing and it hasn't slowed. "It is an employee's market right now," he says. Everyone from general accountants to geoscientists to support personnel is in demand, according to other sources. BP has hired 16 recruiting firms to find 400 geoscientists. Chevron is seeking an additional 300. Outside of poaching, "where are they going to get them?" Preng asks. There are few newcomers to the geosciences since the mid-1980s. The average age of upstream industry personnel is reportedly around 50 years and is advancing at some 11 months each year, according to industry reports. Meanwhile, demand for oil and gas continues to grow, and new reserves are harder to find. Preng adds that there were only 123 English-speaking petroleum engineering professors in the world when he researched the subject in 2001. The upstream industry should be prepared for a much more culturally diverse workplace in the future, as India, China, Russia and other countries roll out more oil professionals, he says. Adding to the shortfall in the near future may be a bittersweet twist of events-some professionals, especially those who are selling their start-ups, are cashing out at never-dreamed-of prices. How could Start-Up II Inc. do better? Or III or IV? They may sit on the sidelines for a while, or eventually never fully get back in the game. John Walker, chief executive of EnerVest Management Partners Ltd. and IPAA chairman, told industry members in Houston recently, "Everything is harder in this business." Drillbit costs are rising and it's hard to do acquisitions. "The whole industry is in a zero-sum game...It's a serious issue." The IPAA has set up a full-standing committee on workforce issues. "I'm planning [to lobby for] a bill in Congress that you can't retire." The industry's image is key to its future, he added. "Kids are not attracted to an industry that has an image problem." (For more on the industry's image, see "On the Money" in this issue.) Watch for more acquisition announcements that note the status of the seller's personnel, and for analysts' reviews that make note of this too. After BP acquired Amoco and Arco in the U.S. and pushed out thousands of upstream professionals, one laid-off geoscientist asked Oil and Gas Investor why it thought the E&P industry would need his or his colleagues' services again. "They're doing the job without us," he said. The response: "Are they?"