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KUALA LUMPUR, June 12 - A shortage of equipment will not be a constraining factor for energy projects in the medium term but a lack of engineering staff is a serious problem, head of world's top oil services firm Schlumberger Ltd. said on Monday.

"The only real constraint is the availability of people with experience and education," Andrew Gould told an industry conference. "It's the result of underinvestment in new talent."

Exploration firms say a tight oil services sector, such as rig and construction firms, is adding to the difficulties and costs of developing projects to increase oil production.

Gould said a lack of equipment could be solved in a short time frame, but the cyclical nature of the industry, with thousands of jobs shed in recent years, hampered recruitment.

"A shortage exists at all levels," Gould said, adding that U.S. universities were producing a fraction of engineering graduates compared with previous years, despite overall student numbers rising.

Gould said these technology-savvy youngsters were needed in an industry that could see companies increasingly drilling for oil from the office.

"New automation and communication technologies are likely to provide part of the answer," he said. "If we can drill holes on Mars, there's no technical constraint."