What makes you think they are not? How else could they hire anyone?
Average Faculty Salaries by Field and Rank at 4-Year Colleges and Universities, 2010-11
http://chronicle.com/article/Average-Faculty-Salaries-by/126586/
Nearly every Engineering Professor I saw in my college had first worked in his field. Nearly all of them were registered PEs.
I agree.
One of my kids attends Marietta College, a small liberal arts school in OH. It has a highly regarded, difficult to get into Petroleum/Natural Gas Engineering Program (as well as recognized Geology Program). The classes are small sized; difficult as “major related” courses are the curriculum from day one of Freshman year. Alot of weeding done then. No one has ever heard of the school, save for industry insiders (east of the Mississippe—west is CO School of Mines).
Same idea—students need to know what they want to do and find the best programs out there (and alot of times that requires alot of research).