OIL & GAS
GLOBAL SALARY GUIDE
The 2016 Compensation, Recruitment and Retention Guide
for the Oil and Gas Industry
hays-oilgas.com oilandgasjobsearch.com
PEOPLE RESPONDED
TO THE SURVEY
RESPONDENTS WHO
ARE EMPLOYERS IN THE
INDUSTRY
COUNTRIES REPRESENTED
WORLDWIDE
DISCIPLINE
AREAS COVERED
28,000
4,000
178
28
SURVEY SUMMARY
1 | Oil & Gas Salary Guide
3 Managing Directors’ Welcome
4 Summary of Key Findings
SECTION ONE - DEMOGRAPHICS
5 Demographics
SECTION TWO - INDUSTRY PERSPECTIVE
9 Global Perspective
11 Regional View
SECTION THREE - SALARY INFORMATION
15 Salary Overview
18 Salaries by Seniority Level
19 Salaries by Company Type
SECTION FOUR - BENEFITS INFORMATION
21 Industry Benefits
24 Company Benefits
25 Benefits by Region
SECTION FIVE - EMPLOYMENT TRENDS
27 Staffing Levels
29 Global Mobility
30 Experience and Tenure
31 Deciding Factors for Top Talent
32 Accessing Job Seekers
33 Employment Mix
SECTION SIX - INDUSTRY OUTLOOK
35 Confidence and Concerns
37 Addressing the Global Skills Shortage
38 The Effect of the Fall in Global Commodity Prices
40 Focus for 2016
CONTENTS
Oil & Gas Salary Guide | 2
3 | Oil & Gas Salary Guide
We are delighted to share with you our Oil and Gas Global
Salary Guide 2016.
This is the seventh year that we have conducted our survey and
our goal is to provide you with an informed view of global and
regional trends in employment, compensation and benefits
within the oil and gas industry, while identifying some of the
key industry factors and events that have influenced these
trends over the past 12 months.
The fall in the price of oil and the resulting impact on the
industry and labour market have had a significant effect on the
survey results. The initial prediction by many last year of a sharp
rebound in the oil price didn’t materialise, and according to
many recent analyses and reports, it appears the industry is in
for a rough ride in 2016, as the three leading export countries,
Saudi Arabia, Russia and Iran, continue to battle for market
share. The ongoing downturn has been reflected in this year’s
survey with salaries having declined by 1.4 per cent year-on-
year, and 44 per cent of employers conducting restructuring
initiatives in order to cut costs, protect profits and ensure their
futures. On a more positive note, 53 per cent of employers have
confidence that the industry will start to improve over the next
six to 12 months.
Thank you to everyone who participated in the survey. Every
answer is valuable and contributes towards the findings within
the guide. Last year, over 70,000 copies of the guide were
downloaded or distributed to businesses and at events around
the world. The results prompted conversations with business
leaders, hiring managers and job seekers across social media and
attracted significant media attention worldwide. We strive to
improve the guide every year and as such, we are keen to receive
your feedback. Please contact us at hays-oilgas@hays.com or
info@oilandgasjobsearch.com with comments or suggestions.
SURVEY METHODOLOGY
This year, approximately 28,000 participants across 28
disciplines fr
om 178 countries responded to our survey.
The survey was completed in November 2015 and once closed,
the data were compiled and cleansed to eliminate spurious
samples and outliers.
Next we reviewed the data to ensure they reflected the realities
of the local labour markets.
We then analysed the findings to identify trends and the
reasons behind the results.
We believe that by blending the survey’s quantitative data with
our localised expertise, we produce the best and most
representative view of remuneration in the industry.
As always with surveys, statistical errors due to sample size and
respondent errors limit the accuracy of any particular figure. In
addition, since the people who respond to our survey vary from
year to year, changes in the demographics of respondents (e.g.,
their experience level, location and discipline) will have an
impact on our figures that might not represent actual changes
in labour markets.
In addition, respondents report their salaries to us converted to
$US from their local currencies, so fluctuations in the relative
value of currencies versus the $US will also impact our results.
This year, we again have taken into consideration some of these
biases to present a like-for-like global average salary alongside
the average salary computed from the unadjusted raw data. We
have not adjusted the other figures.
John Faraguna
Managing Dir
ector
Hays Oil & Gas
Duncan Freer
Managing Director
Oil and Gas Job Search
Disclaimer:
The Oil & Gas Global Salary Guide is representative of a value added service to our clients and candidates. While every care is taken in the collection and compilation of data, the survey is
interpretative and indicative, not conclusive. Therefore, information should be used as a guideline only and should not be reproduced in total or by section without written permission from Hays and
Oil and Gas Job Search.
This survey data was gathered during September and October 2015, during this time the price per barrel of brent oil averaged $47 per barrel. This guide therefore may not fully reflect any changes to
the market caused by any changes in prices after this date.
MANAGING DIRECTORS’ WELCOME
Oil & Gas Salary Guide | 4
Summary of key findings:
1. Save on workforce spend as workers are prepared to be flexible on salary, but only for the right total package
• Emplo
yers are being creative with compensation and benefit plans to try and avoid further headcount cuts. Workers are
making this possible by being flexible on salaries. For example, 51 per cent of employee respondents said they would
consider a cut in salary to retain their current job. Although willing to bend on base salary, benefits remain one of the four
key influencing factors, and over the past seven surveys there has been a shift in employers personal welfare-based
incentives. For instance, since 2010, there has been a 50 per cent increase in the number of employees receiving health/
medical plans and a 67 per cent increase in the number receiving retirement plans, but bonuses have remained steady,
with only a three per cent increase over the same time frame. Furthermore, in this year’s survey, 20 per cent of
respondents said that health plans are the most important benefit, compared to 10 per cent in the previous year’s.
• As a result of having to reduce headcount, employers have noted that a lack of resource has affected productivity levels
and increased workplace pressure. Eighty-nine per cent of hiring manager respondents said the reduction in manpower
has negatively impacted productivity and 90 per cent said that this is causing an increase in workplace pressure. Given
that professional development is the third most important factor for employees when evaluating their role, offering training
and development could be a low cost way to help tackle these issues and also support retention. Survey results show that
employers recognise this need, as 35 per cent of employers invested in or upgraded training plans in the past 12 months
and 43 per cent are using training as a way to upskill their current workforce.
2. Protect your employer image as working for a company with a good reputation is a top priority for employees
• F
orty-one per cent of oil and gas professionals said a company’s reputation is the number one factor when evaluating a
job offer, ranking above compensation (34%), career progression (15%) and benefits (10%). For the majority of businesses
effected by the downturn, the focus has been to keep headcount costs low and to remain profitable. However, it is
important that businesses understand the impact that an employer reputation has on an organisation’s ability to attract
and retain top professionals in the industry, no matter the industry circumstances. For example, 60 per cent of those
respondents who have been laid off or made redundant said they did not receive any assistance from their previous
employer in helping them secure a new role. The choices in the survey included low cost options such as time off for
interviews or being introduced to a recruiting firm. Supporting workers throughout the full work lifecycle, including exiting
the business, will help preserve a good reputation, as well as help ensure that when market conditions improve, the
employer brand is still attractive.
3. Plan today for when you’re ready to grow your workforce, through developing and implementing a succession plan
• Se
venty-five per cent of employed survey respondents said they are currently looking for a new job, which is surprising
based on the high number of redundancies in the industry over the past year. Not surprisingly, however, is that 40 per cent
of survey respondents said their workload has been negatively impacted by the reduction in headcount. Retention may not
be at the top of the agenda for hiring managers, however, employers cannot afford to lose essential workers. Further to
this, career progression is cited by survey respondents as the third most influencing factor when considering a new role,
company reputation and compensation being number one and two respectively. What is more surprising is that 36 per
cent of employer respondents said their retention issues are caused by poor succession planning. To support existing staff,
as well as to be in a position to effectively attract candidates when ready to recruit, having a long-term succession plan in
place is key. However, when asked only 17 per cent of hiring managers said they are intending to implement one in the
coming 12 months. A succession plan is a great way to attract candidates as well as bolster confidence with existing staff.
Devising a succession plan does not have to be costly or complex exercise and should be looked at as a key component to
a long-term growth plan.
As a result of the global downturn in the industry, 2015 proved to be a difficult year. Thirty-two per cent of respondents said they had
been laid off or made redundant and 93 per cent of employers said they had to make some level of headcount reductions over the past
12 months. Looking to the year ahead, we’re likely to see further changes as 41 per cent of vice president respondents said they are
currently considering mergers or acquisitions in order to remain profitable. Optimistically, 53 per cent of employers predict that the
market will start to strengthen in the coming six to 12 months. Currently, 56 per cent of employers said the main issue facing the industry
is economic instability. However, looking at the next six to 12 months, just 34 per cent of employers said economic instability will still be
the main challenge and 22 per cent feel that skills shortages will be the growing concern. This could be an early sign of employers
preparing to start hiring in the latter half of the year, should the oil price start to rise again. Something to note, in an effort to secure a
new role, 72 per cent of those who have been laid off or made redundant are currently looking for a role outside of the industry. If
successful, this could cause a brain-drain of talent leaving the sector, potentially creating future talent challenges. That being said, despite
pursuing opportunities in alternative industries, 85 per cent are confident that they will secure a role within the industry.
Based on the findings from this year’s salary guide, the following are the key insights and recommendations for action to support
employers’ human capital management plans.
For the first time in five years of the Oil and Gas Global Salary Guide, employers cite economic
instability above skills shortages as the number one industry concern.
SUMMARY OF KEY FINDINGS
SECTION ONE
DEMOGRAPHICS
Amidst a changing global market, the demographics of survey
respondents remain consistent with last year’s survey
5 | Oil & Gas Salary Guide
SECTION ONE: DEMOGRAPHICS
Oil & Gas Salary Guide | 6
Survey respondents by region
2015
2014
Africa Asia Australasia CIS Europe Middle East North
America
South
America
0%
5%
10%
15%
20%
25%
7 | Oil & Gas Salary Guide
Seniority level
3%
9%
5%
29%
6%
5%
11%
11%
21%
2014
4%
5%
4%
31%
6%
3%
13%
11%
23%
2015
Graduate
Senior
Manager
Other
Operator/technician
Intermediate
Lead/principal
VP/director
Consultant
Local
Expat
Permanent
Contract
Expats versus local
Contract versus permanent
66.6%33.4%
2015
65.8%34.2%
2015
2014
39.4% 60.6%
34.7%
2014
65.3%
DEMOGRAPHICS
The figures below show the demographics of the 28,000 respondents to
this year’s survey.
Although the industry has seen many changes in the labour market over
the last 12 months, there is much consistency in the demographics of this
year’s respondents compared to last year.
Age and gender
0
20%
40%
60%
80%
100%
24 and
under
25 to 29
30 to 34
35 to 39
45 to 49
50 to 54
55 to 59
60 to 64
65 and
over
40 to 44
Male
Female
Oil & Gas Salary Guide | 8
DEMOGRAPHICS
Company type
10%
16%
21%
16%
14%
17%
6%
2014
9%
9%
22%
18%
15%
21%
6%
2015
Contractor
Equipment manufacture
Oil fi eld services
Consultancy
EPC
Global super major
Operator
Discipline area
0%
3%
6%
9%
12%
15%
Business development/
commercial
Construction/installation
Downstream
operations management
Drilling
Electrical
Estimator/cost engineer
Geoscience
Health, safety and
environment (HSE)
Logistics
LNG
Marine/naval
Manufacturing/
instrumentation
Mechanical
Piping
Petrochemicals
Process (chemical)
Production management
Project controls/
project management
Quality assurance/
quality control (QA/QC)
Reservoir/petroleum
engineering
Structural
Subsea/pipelines
Supply chain/procurement/
commissioning
Technical safety
2015
2014
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
Company size by number of sta
0%
5%
10%
15%
20%
25%
30%
35%
40%
11% 36%20%10%13% 10%
<100
101 - 250
251 - 500
501 - 1,000
1,001 - 5,000
>5,000
SECTION TWO
INDUSTRY
PERSPECTIVE
9 | Oil & Gas Salary Guide
SECTION TWO: INDUSTRY PERSPECTIVE
The concern over China’s slowing economy and associated
decline in oil consumption coupled with an ongoing global
surplus of oil supplies has meant that the anticipated “V”
shaped recovery in the oil price didn’t materialise. As we enter
2016, key analysts and industry experts are now predicting a
“U” shaped recovery, with the market adjusting itself for a much
longer period of subdued pricing than was first anticipated.
The continued fall and subsequent stagnation of oil prices is
considered, by some, to be the most important macro-
economic event in recent times. The drop in price has meant
lower fuel bills for many consumers, helping boost economic
activity in energy intensive countries such as the US.
However, it has also drastically reduced the revenues of oil-
exporting countries, whose governments rely heavily on oil
and gas royalties to finance budgets and loan repayments.
The subsequent loss in oil revenues has helped push countries
such as Russia, Venezuela and Nigeria either into deep
recession or to the brink of bankruptcy and has been a major
contributing factor in the change in government in Venezuela.
According to the International Energy Administration’s
November 2015 report, global demand for oil is set to fall in
2016 as supportive factors that have recently fuelled
increased consumption, such as post-recessionary bounces
and sharply fallingcrude oil prices, are expected to fade. In
2015 global oil supplies breached 97 million barrels per day
(mmb/d), as output outside the Organization of the
Petroleum Exporting (OPEC) countries rebounded from
reduced levels in the early part of the year. OPEC’s
crudeoutputheld steady at an average 31.76 mmb/d, as
declines in output from Iraq and Kuwait were offset by
increased production from Libya, Saudi Arabia and Nigeria.
Non-OPEC (excluding the US) production growth in 2015 was
largely attributed to investments committed to projects
before the oil price decline that began in mid-2014. For
example, the Golden Eagle and Peregrine fields in the North
Sea went into production late 2014 and early 2015, but
received final investment decision (FID) in 2011.
US production, now the world’s largest swing producer,
driven by a decade of shale oil growth, has remained steady
despite a significant decline in drilling activity. However,
reports issued in early November by the Energy Information
Administration indicate that production is starting to decline,
as operators wait for the recovery in price before completing
new wells. Output outside of the US continued to defy
expectations, posting healthy gains in spite of lower prices
and spending cuts. Despite declines in mature fields, there
was a boost in output from Russia, China, Oman and the
North Sea. Brazil, a significant contributor to production
growth earlier in the year, saw its output slow as the
beleaguered semi-state owned Petrobras continued to
struggle with its corruption scandal and negotiate with
unions and workers over strike action.
The reduction in rig count in the US will support upward
pressure on price, but for now, OPEC is standing firm on its
decision to maintain production levels. There is also the
possibility of an influx of additional oil onto the market as
Iran reaches a deal that eases sanctions applied against them.
Forecasted demand for oil throughout 2016 remains weak,
and although US production looks to be curtailing, it remains
to be seen if the reduction in output from the world’s largest
oil producer will have enough impact on surplus supplies to
drive prices upwards.
Redirection of investments away from exploration and
towards maximising production efficiencies has helped
maintain production levels in the short-term. However, in the
medium to long-term, this lack of investment in finding and
developing new reserves will lead to an undersupply and
higher prices. More than half the projects currently awaiting
final approval have either been cancelled or deferred. These
projects would have seen more than $750 billion of capital
expenditure and at peak would have added approximately
10.5 mmb/d to global output. The combined effect of lower
E&D investment, a decline in output from US shale due to
lower drilling activity and growth in global oil consumption
will ultimately create upward pressure on prices.
Financially stable companies are looking to maximize on
growth opportunities through mergers and acquisitions or the
purchase of high performing assets at below market rates
from cash-strapped operators. The move away from
exploration and new drilling activity has seen a consolidation
in the service company sector as businesses seek to merge or
acquire competitors with advanced technologies or unique
service offerings, as demonstrated in both the Halliburton
takeover of Baker Hughes and Schlumberger’s approach for
Cameron. The upstream market is seeing early signs that
sellers’ expectations are dropping to a level more in line with
buyers’, an example being Occidental’s divestment of its
Williston Basin assets to Lime Rock for approximately $500
million, a reduction from the $3 billion Occidental was
reportedly seeking 12 months earlier. These mergers are
further compounding the weakening of the labour market, as
the consolidation process will lead to further redundancies in
the short to medium-term.
Looking forward, analysts are currently divided as to how the
market will change over the coming year. Those in the “lower
for longer” camp believe that the price is likely to stay
subdued for a minimum of two years, versus those who
expect to see a quicker recovery in late 2016/early 2017. Both
sides make compelling arguments as to why they are correct,
however, it is still too early to give full support to either side.
Needless to say, the industry will face some tough challenges
in the next 12 months. Even at $65 per barrel, much less the
current sub $40 level, we would expect to see continuing
pressure to reduce costs and increase efficiency. To date, cost
reduction activity has resulted in an estimated 250,000
redundancies worldwide. More will follow. These changes in
the workforce, coupled with the accelerating retirement of
baby boomers will leave employers with a hefty gap in their
workforce once industry activity recovers. With hiring plans
low on the agenda for the foreseeable future, there is a storm
gathering within the industry, one that could create an even
greater skills shortage than that caused by the downturn of
the mid-to-late 1980’s, when the oil price crashed 65 per cent
and an estimated 55 per cent of those employed in the
industry lost their jobs; a period of time that is widely referred
to as “The Lost Generation”.
Oil & Gas Salary Guide | 10
John Faraguna, Managing Director, Hays Oil & Gas
It is a difficult time for the industry and the decisions
made today in the height of the commodities downturn will
have a significant impact on how deep the talent shortage will
be in future years. The question has to be asked: are we creating
a repeat of the 1980’s talent shortage that in future years will
again hold the industry hostage to inflated wages?
“
”
Duncan Freer, Managing Director, Oil and Gas Job Search
The low oil price environment has lasted a lot longer
than many people’s expectations. Those surveyed have
indicated they are hopeful to start seeing improvements
towards the end of 2016.
“
”
GLOBAL PERSPECTIVE
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
11 | Oil & Gas Salary Guide
INDUSTRY PERSPECTIVE
Regional View
Political changes are having significant effects on
oil and gas businesses. In Mexico, privatisation is
driving new business opportunities whereas in
Brazil, Venezuela and Colombia, governments are
battling significant debt and security concerns.
Mexico’s opening to the private sector will generate
opportunities for exploration and production (E&P)
operators, the E&P arms of international oil and gas
companies, suppliers, and investors. In November
2015, Transcanada announced that it expected to
benefit fromMexico’s energy sector
privatisationand will build a new pipeline to carry
gas fromhydraulic fracturingin the US to Mexico’s
electricitygrid, the first pipeline under Mexico’s
energy sector privatisation era.
Brazil’s semi-state owned energy corporation,
Petrobras, is facing significant challenges as it
continues to carry the industry’s biggest debt load,
handle the fallout from the ongoing fraud and
bribery investigations and now negotiate with its
striking workforce. This has led to the organisation
sitting out of the latest licensing round for the first
time ever. The country’s National Petroleum Agency
sold only 37 of the 266 onshore and offshore blocks
it offeredin the last round of auctions, which had the
worst turnout in more than a decade. International
major operators in Brazil, including Statoil ASA, Royal
Dutch Shell Plc and Total SA, didn’t submit any bids.
The auction took place amid a slump in crude prices
and a national political crisis while Petrobras
struggled to come to terms with cash constraints.
The Brazil auction followed on from a disappointing
auction earlier in the year in Mexico. With crude
prices having slumped almost 50 per cent in 2015,
operators including ConnocoPhillips and Shell have
slashed investments in the country.
Venezuela, one of the world’s largest oil
exporters, was already finding it difficult to meet
budgetary commitments and loan repayments
due to economic mismanagement even before
the oil price slumped. With inflation running at
approximately 60 per cent, the country is on the
brink of bankruptcy. Venezuela and Ecuador have
led pleas to other member states in the
Organization of Petroleum Exporting Countries
(OPEC)to limit oil production, in order to drive
prices back up. However, OPEC to date has
remained firm on maintaining production,
preferring to battle for market share.
Colombia continues to be blighted by attacks from
anti-government guerrillas, and although pipeline
attacks had declined significantly from 2005 to
2010, according to Colombia’s Ministry of Defence,
the number of attacks has now increased
substantially, reaching 141 in 2014.This has led to a
significant rise in unplanned production
disruptions in Colombia. The US Energy
Information Administration estimates the country
averaged 45,000 bbl/d of unplanned production
disruption throughout 2014, nearly a three-fold
increase since 2012. As such, foreign investment
into the region has reduced and a slowdown in the
industry has occurred.
With the appointmentof President Macri in
Argentina, seen by many to be more pro-business
than his predecessor Cristina Fernandez, analysts
think planned policy changes by the new
administration will help attract foreign capital
into the country’s oil and gas industry.
The Vaca Muerta play, located on Argentina’s
western border with Chile, is one of the most
significant shale resources outside the US. With
the new Government in place, one of the main
impediments to international investment seems
to have been removed. However, the heavy
impact of unions on labour costs still remains a
significant hurdle that the state owned YPF will
need to overcome in order to attract the partners
it will need to fully develop the 6.3m acre play.
The market in North America has been
unpredictable over the last year and this is set to
continue throughout 2016.
US drilling activity has seen a considerable
slowdown. According to Baker Hughes Rig Count
data there has been a 60 per cent drop in active
rigs, dipping to levels not seen since July 2010, as
upstream activity, primarily driven by the “shale
boom”, has slowed in response to low oil prices.
The drop in active US oil rigs has yet to translate
into significant output declines, as the drop in
activity levels have been offset by high-grading
and other efficiency gains. However, the most
recent data clearly shows that onshore
production growth has stalled and output is
starting to decline. It is still to be seen what
effect, if any, this decline will have on the global
supply/demand imbalance and prices.
Throughout the year there has been a
fundamental attitude shift in Washington D.C.
towards lifting the 40 year ban on US crude
exports. Experts from different fields agree that
exporting US crude oil will help grow the
economy, lower consumer fuel prices and create
jobs, all at a time when the industry sorely needs
a boost.
Once the world’s largest energy importer, the US
is now poised to become the largest LNG
exporter in the world and this could potentially
trigger five to seven years of unprecedented
growth in demand for domestic natural gas. The
implications this has for Australian projects are
particularly significant. Until recently, Australia
was expected to be the leading force in future
global LNG supplies. However, as highlighted in a
recent study by McKinsey, even after taking into
account the higher shipping costs to move LNG
from the US to Asia, LNG supplies from green-
field projects in Australia are still likely to be 30
per cent more expensive than from brownfield
projects in the US.
It has been a rough ride for the Canadian oil and
gas industry, with several key projects having FID
delays or being cancelled such as Keystone XL,
Total’s Pierre River and Canada LNG. A recent
report conducted by CAPP, estimates some
35,000 workers have been laid off in the Alberta
oil patch. However, there is some good news as
producers are realising the value of certain gas
plays in Eastern British Columbia and Western
Alberta. The Montney and Duvernay plays, for
example, are still seeing significant investment
inexploration and production, as companies such
as Encana, Severn Generations and Arc Resources
look to take advantage of favourable pricing
dynamics and improved technology that has
aided well productivity. The continuing
investment in these plays has led to several
recent midstream infrastructure announcements.
Meritage Midstream began construction of a 75
million cubic feet per day gas and 10,000 barrel
per day crude pipeline in May and The North
Montney mainline project received approval.
Additionally, the Prince Rupert Gas Transmission
Project started construction and is scheduled to
be completed within the next four years.
Although the layoffs and redundancies that have
occurred in North America have been well
publicised in the media, there still remains
pockets of hiring activity. LNG projects, such as
Freeport, Sabine and Cove point have moved into
construction phase. This has led to high demand
of qualified skilled labour including Electricians,
Welders and Mechanical Fitters. Furthermore,
additional projects are expected to receive FID
and move forward with construction plans over
the next 12 to 18 months. As these projects move
through the phases, demand for skilled trades
will intensify as competing projects battle for
talent in order to meet project timescales.
Latin and South America
North America
There has been a 60 per cent drop in active
rigs, dipping to levels not seen since July 2010.
Mexico’s opening to the private sector will
generate opportunities for exploration and
production (E&P) operators, the E&P arms of
international oil and gas companies, suppliers,
and investors.
Oil & Gas Salary Guide | 12
The decline of activity in the North Sea will
continue to have an impact on the workforce
throughout 2016. However, there are a few
glimmers of light as plans are being made that
could reinvigorate hiring needs in the future.
Last year’s Scottish referendum and
recommendations from the Wood report have
done little to spark activity in the region. A
recent report by Oil and Gas UK highlighted
that in the third quarter of 2015, 55 per cent of
respondents reported lower activity than the
previous quarter of 2015. With capital
investment across the industry of£14.8 billion
last year, capital investment is anticipated to
decline between £2 billion and £4 billion
annually into 2017, requiring further downsizing
and restructuring by regional operators and
service companies.
In order to replace lost revenues from
declining North Sea output, the UK
government has fast tracked the development
of fracking. Recently passed legislation allows
the Community Minister to directly approve
shale gas permits, removing the decision
making from local politicians after progress
was blocked on the UK’s first fracking wells.
However, the Government still faces strong
opposition from environmental groups and it
is yet to be seen how significant
unconventional production will be.
The North Sea region has seen its lowest
exploration activity since the early 1970s and
very few new projects have received FID due
to unfavourable economic conditions. On the
other hand, the reduction in new exploration
and production is likely to help speed along
the decommissioning phase of ageing and
non-productive assets. Over the next few
years, the process of retiring North Sea oil and
gas facilities is anticipated to accelerate,
creating opportunities for those firms that
develop the safest and most cost effective
solutions. In turn, this is expected to generate
new opportunities for those with relevant skills,
such as Planners, Estimators, Supply Chain
Professionals and Project Managers.
For the past four years, Poland has been
regarded as the European Union’s biggest
hope for developing indigenous sources of
natural gas and the best prospect for breaking
Russia’s grip over natural gas supplies into
Europe. As such, dozens of wells have been
drilled since 2010. However, only a very small
percentage have been successful. In fact,a
Bloomberg report highlighted that the most
productiveof these projects have returned gas
flows that were just 30 per cent of what is
needed to be commercially viable. With
Chevron’s decision to cancel further drilling
activities within Poland, Europe will need to
seek alternative options if it is to reduce
dependency on Russian gas.
INDUSTRY PERSPECTIVE
Regional View
It has been a challenging year for the Russian
economy. The Rouble has lost 43 per cent of its
value against the dollar during the last 12 months
and inflation has reached a 13 year high. EU and
US sanctions have restricted trade with the West
and the downturn in oil and gas has led to Russia
sinking into recession for the first time since
2009. Oil and gas revenues account for more
than 70 per cent of Russian export income,
highlighting how heavily Russia’s economy relies
on these revenues.
In response to tightening sanctions, Russia has
turned eastward to China for financial support
and to tap into the Chinese talent pool in order
to replace those workers lost as a result of
western companies withdrawing from Russia
following the sanctions. The $400 billion deal
between the two countries will see Russia
supplying China with gas from Sakhalin, however,
further deals seem to be on hold as China’s
Government struggles with a slowdown in its
economy and waits to see the longer term
implications of lower oil and gas prices.
Russia’s lobbying of OPEC to cut production
seems to have been futile, even after several high
profile meetings with Saudi officials. Furthermore,
with Russia taking military action in Syria, the
possibility of the two largest oil producing
countries agreeing on production cuts seems to
have evaporated. Russia continues to increase
output in a bid to win back market share from
Saudi Arabia and other exporting countries. As
such, the job market has remained steady and
there is still high demand for Western rig
managers and health safety experts with
experience in the region.
United Kingdom (UK) and Continental Europe
Russia and Commonwealth of Independent States (CIS)
Russia continues to compete with Iran and
Saudi Arabia, the other two leading oil
exporting countries, for market share.
The inevitable decommissioning of North Sea
oil and gas facilities could create new jobs,
especially for those in construction, supply
chain, material management and safety.
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
13 | Oil & Gas Salary Guide
Although the industry globally has suffered a
well-publicised decline in project spend, the Gulf
Cooperation Council (GCC) has decided to
continue with infrastructure projects. In some
cases, budgets have been increased to bolster a
growth in production and to help be more self-
sufficient, relying less on the refining capability of
other countries.
The Saudi Arabian Monetary Agency (SAMA) for
the first time in eight years issued a $4 billion
domestic bond designed to assist the
Government in dealing with a deficit of $130
billion for 2015, or 17.5 per cent of gross domestic
product (GDP). Last year’s deficit was only
approximately 2.3 per cent of GDP.
Oil production in Saudi Arabia continued to
increase throughout the year with Saudi Aramco
ramping up production in order to maintain
market share. In recent years, the primary
concern has been competition posed by shale oil
production from the US. Now there is a new
challenge as Iranian oil could be flooding the
market in 2016 after a deal to remove sanctions
was agreed. This has left Saudi Arabia pondering
on what rate and pace Iran’s oil and gas
resources will return to the market and the effect
this will have on an already depressed oil price.
We can assume from Iran’s perspective, having
suffered varying degrees of economic hardship
associated with sanctions since the late 1970’s, a
boost to its central finances is a priority. The
estimated 40 million barrels of Iranian crude oil
currently aboard tankers in the Gulf looks
destined for a quick sale, further adding to an
already over supplied market.
As the leading influencer within OPEC, Saudi
Arabia is coming under increased pressure from
other member states to announce a cut in
production and stimulate an increase in prices.
With a recent announcement that Riyadh intends
to release a further round of domestic bonds in
late 2015, it looks unlikely that a cut in production
will be announced any time soon.
Where there have been redundancies in the region,
these have mainly been as a result of restructuring
by international companies. While drilling
contractors have suffered, National Operating
Companies (NOC) and EPC contractors within the
GCC have continued hiring for essential skills, for
example for project and construction professionals.
Overall activity in the industry has slowed across
the continent in the wake of the declining oil prices.
Several of the regions’ governments, including
Nigeria, Tanzania, South Africa and Kenya have
responded by passing bills in support of the oil
and gas industry in order to attract investment.
For example, the Nigerian Government has
pledged to overhaul the state owned Nigerian
National Petroleum Company (NNPC). President
Buhari’s reform of the NNPC is underway, having
fired the NNPC board and appointed an outsider.
The new remit is to drive transparency and
governance in a bid to rid the NOC of corruption
and restore trust with International Operating
Companies.
Africa still remains one of the last frontiers for
exploration, and although capital budgets for
further exploration have been reduced, it is only a
matter of time before companies reinvest. One of
the biggest challenges facing employers in the
region is retention of skilled labour, as highlighted
in this year’s survey. A lack of skills and skills
retention is rated as the most likely factor to
impact business over the six to 12 months, second
only to economic instability.
East Africa’s huge offshore gas potential still has
a pivotal role to play in the global LNG market.
With Anadarko and ENI both pushing ahead on
plans to build world class liquefaction facilities,
analysts estimate that LNG exports could be
worth up to $39 billion per year to Mozambique,
one the world’s poorest countries. However, even
if the Mozambique Government approves the
schemes there is still some concern over
resettlement programmes and cooperation from
indigenous tribes.
INDUSTRY PERSPECTIVE
Regional View
Africa
Middle East
The Middle East is starting the feel the effects of
low commodity prices, but some states in the
GCC are pushing through with planned projects.
As with other regions, the low oil prices have
had far reaching consequences, such as
capital budgets being slashed and other cost
cutting initiatives being rolled out throughout
the region.
Oil & Gas Salary Guide | 14
Despite the current downturn in commodity prices,
the prospects for Australia’s resources and energy
sector remain broadly positive as the industry
transitions from a period of high investment to one
of production growth. Lower commodity prices
have curtailed the flow of capital into new projects
and have halted sustained capital expenditure.
Exploration expenditure has declined as companies
seek to reserve cash.
By 2019-20, all seven mega-LNG projects will begin
operation and there will be a total of 86.6 million
tonnes of LNG production capacity in place, with a
projected combined export volume of just over 76
million tonnes. However, with North American LNG
due to come online in 2016, there has been a
softening in spot LNG prices. Consequently, the
underlying economics of those trains not due to
come online until 2017 are again in question.
The production phase of the LNG boom is yet to
peak, and is expected to last considerably longer
than the investment phase. This new phase is
largely underpinned by AUD $400 billion of
investment that was channelled into resources and
energy projects between 2003 and 2014.
Although hiring for LNG project construction is now
slowing down, a recent study by Energy Skills
Queensland forecast that demand for workers in
upstream Coal Seam Gas (CSG) would not peak
until 2024 (based on a scenario of 45,000 wells and
six LNG trains). The need for these different roles
will change over the duration of the project. Since
well servicing requires the most manpower
following the drilling and gas field development
stages, we expect to see rise in demand for these
roles in the next one to two years. This phase of the
LNG projects brings with it new workforce
challenges. According to a recent study by the
Australian Workplace and Productivity Agency,
Australia will require approximately 3,000 LNG
process operators over the next two to three years,
however, current estimates suggest there are only
between 200 and 300 available. This will raise
concerns among operators that there could be a
repeat of over-inflated compensation packages,
which blighted budgets during the design and
construction phases.
Although current market conditions are challenging,
demand for Australia’s resources and energy
commodities is projected to increase over the
medium- to long-term due to growing consumption
in developing regions, particularly in Asia. This
expectation is based largely on increasing
urbanisation and the expansion of manufacturing in
emerging, highly-populated Asian economies. As a
result, Australia’s earnings from resources and
energy commodities are projected to increase at an
average annual rate of 6 per cent a year, from
2015-16, to rise to a total $235 billion in 2019-20.
In the short- to medium-term, lower commodity
prices will force resources companies to reduce
costs and improve productivity. As a result, we
anticipate further headcount reductions.
INDUSTRY PERSPECTIVE
Regional View
The downturn has affected all markets across the
region but overall the industry in Asia is likely to
remain relativity stable over the coming year.
Growth in major Association of South East Asian
Nations (ASEAN) economies is projected to
moderate in 2016, owing to lower commodity
prices, political uncertainty in Malaysia, and
weaker growth in China. Slower trade should also
dent growth prospects in Singapore and the
Philippines. Thailand is expected to see a
rebound as public and private domestic demand
recover, as a result of less policy uncertainty.
The oil and gas sector in the region has typically
relied on both debt and non-debt financing. For
example, bond issuance and syndicated loan
issuance by Asian oil and gas firms has surged in
recent years. Since sources are linked to asset
values and profitability expectations, a prolonged
period of lower pricing could see the cost of
financing increase and, in turn, lead to lower
capex budgets.
A cause for concern for Singapore is the $5.25
billion Panama Canal Zone expansion due to be
completed by the beginning of 2016. A report
issued last year from energy consultancy, Wood
Mackenzie, said that the canal’s expansion holds
particular significance for the US. This expansion
offers time and cost savings on LNG trade routes
from the US Gulf Coast to East Asia and therefore
could weaken the influence Singapore has as a
regional trading post. As this scenario develops,
Singapore will likely find itself losing market share
in North Asia and will be pushed to concentrate
more on South Asian (predominately India) and
Southeast Asian LNG markets, where it will face
competition from Australian LNG facilities.
Since late 2014, India’s oil demand has been
rising, with early 2015 data showing a record rise
in oil demand to 3.91 mmb/d, a 9.4 per cent
increase year-on-year. In March 2015, Prime
Minister Narendra Modi set the challenge to
reduce India’s imports of oil, currently 77 per cent
of total consumption, by 10 per cent. This will be
a tough target to meet given India’s largest
producing oil field is in decline and the last major
oil discovery was 11 years ago. Work has already
begun to study and design ways that could boost
domestic oil production, including in the regions
of Jammu and Kashmir, which are thought to
have significant reserves. Special attention is
being placed on the Riasi and Poonch regions on
the banks of River Chenab. However, given that
these regions are near the Line of Control with
Pakistan, attracting foreign investment could
prove problematic.
The long-awaited crude contract will better
reflect China’s growing importance in setting
crude prices, and boost the use of the Yuan
globally. China, the world’s second-biggest oil
consumer and fourth largest producer, for the
first time has begun to loosen its grip on the
physical oil sector this year by granting quotas
for imported crude to privately-owned refiners,
surprising market participants with the speed of
reform. Looking forward, China’s economic
growth is expected to continue to disappoint,
with forecasted growth rates under the
government’s seven per cent target. Lower
exports reflect tepid global economic growth,
and the country’s efforts to move toward a more
service- and consumer-based economy is
progressing more slowly than expected.
Asia
Australasia
China continues to push ahead with reforms to
open up its oil markets.
Over the next five years the mega-LNG
projects that have been developed are
scheduled to begin operation and Australia will
emerge as the world’s largest LNG exporter.
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
15 | Oil & Gas Salary Guide
SECTION THREE: SALARY INFORMATION
SECTION THREE
SALARY
INFORMATION
Salaries decreased by 1.4% globally
Oil & Gas Salary Guide | 16
Salaries decreased from 2014 levels
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
2010 2011
-2.1%-1.4%
6.1% 3%1.1% 1.1% 8.5% 5% 2.2% 1.3%
-7.8% -1%
2012 2013 2014 2015
Like-for-Like Data*
Raw Data
* Adjusted for changes in the demographic of survey respondents.
SALARY INFORMATION
Salary Overview
17 | Oil & Gas Salary Guide
Over the last year we have seen the average global salary decrease by
1.4 per cent, from 2015’s average salary of $82,141 US. This breaks down
into local talent average of $68,400 US and an expat talent average of
$98,200 US. The average contractor day rate globally in 2015 was $525
US.
The fall in oil prices has had a direct effect on business activity
worldwide, which has impacted employers’ hiring plans and salaries in
many locations and discipline areas.
Africa Asia Australasia CIS Europe Middle East North
America
South
America
0
30,000
60,000
90,000
120,000
150,000
2015 Local
2015 Imported
2014 Local
2014 Imported
Average salary changes by region
Background for this section
Permanent staff salaries are the figures returned by respondents as their base salary in US dollar equivalent figures (respondents were asked to
convert their salary into US dollars using xe.com at the time of responding) excluding one-off bonuses, pension, share options and other non-cash
benefits, for those working on a yearly payroll. Those on a daily payroll are extracted and listed separately.
The average salaries listed under local labor are representative of respondents based in their country of origin. Salaries listed under imported labor
are representative of those who are working in that country but originate from another.
Contractor rates are listed as US dollar equivalent day rates as provided by respondents.
Key Insights:
Although the overall market has seen a decrease in salaries, there are
still pockets of the industry, particularly in Asia and the Middle East,
where the war for talent continues, wage pressures remain and salaries
have seen little change.
SALARY INFORMATION
Salaries by Seniority Level
Oil & Gas Salary Guide | 18
ANNUAL SALARIES
BY DISCIPLINE AREA (IN US DOLLARS) Graduate Intermediate Senior
Manager Lead/
Principal
Vice President/
Director
Business Development/Commercial 41,000 59,700 71,000 92,300 154,600
C
ommissioning/Decommissioning 46,100 56,500 74,200 105,800 127,500
Construction/Installation 32,100 54,300 79,200 129,100 180,500
Downstream Operations Management 35,000 51,800 89,900 92,400 162,000
Drilling 39,700 60,800 87,200 106,800 189,900
Electrical 37,200 45,400 69,000 86,200 148,700
Estimator/Cost Engineer 36,200 50,100 74,000 119,700 151,300
Geoscience 45,800 66,000 108,700 129,950 225,600
Health, Safety and Environment (HSE) 33,500 53,200 66,300 92,400 168,600
LNG 39,000 52,100 82,400 124,900 233,300
Logistics 26,500 39,500 62,500 78,800 121,800
Manufacturing/Instrumentation 28,100 46,700 58,900 86,750 122,800
Marine/Naval 33,800 65,200 85,200 110,900 180,400
Mechanical 40,100 47,800 65,000 86,600 134,000
Petrochemicals 35,600 45,000 66,700 78,900 160,200
Piping 30,100 42,300 59,200 84,200 110,300
Process (chemical) 41,200 50,900 76,300 114,200 182,300
Production Management 29,500 53,500 77,400 103,200 196,300
Project Controls/Project Management 34,900 59,100 75,700 100,300 160,600
Quality Assurance/Quality Control (QA/QC) 34,700 53,000 60,200 85,300 129,000
Reservoir/Petroleum Engineering 44,000 65,700 97,200 123,500 210,100
Structural 37,100 41,300 68,200 87,900 160,300
Subsea/Pipelines 44,200 70,000 98,700 129,700 189,500
Supply Chain/Procurement 32,100 58,700 70,700 87,900 173,100
Technical Safety 36,200 70,000 78,600 95,100 163,200
Accounting & Finance 37,300 45,300 58,600 76,600 178,900
IT 40,500 55,300 67,300 77,800 188,900
Human Resources/Recruitment/Administration 29,800 38,200 58,000 76,300 132,000
Three functional areas that have seen the greatest increases are
Petrochemicals, Process Chemical Engineering and Pipeline Design.
CONTRACTOR DAY RATES
BY REGION (IN US DOLLARS)
Operator/
Technician Intermediate Senior
Manager Lead/
Principal
Vice President/
Director Consultant
Australasia 410 610 700 840 1,000 1,200
Eas
t/South Africa 270 290 450 550 1,050 1,000
Eastern Europe 280 170 300 440 620 650
Middle East 350 210 330 540 860 800
North Africa 450 290 350 440 540 1,050
North America 350 540 600 690 800 900
North East Asia 350 300 400 600 880 900
Northern Europe 200 320 580 800 980 900
Russia & CIS 500 250 500 600 720 800
South America 200 180 330 500 740 800
South East Asia 300 210 240 350 560 620
West Africa 300 200 500 580 900 800
Western Europe 300 380 600 720 910 880
Key Insights:
The areas that have best weathered the storm are chemical and midstream
companies. Chemical manufacturers have taken advantage of low feedstock
prices and those in the midstream industry have played catch up after years
of historically high production levels.
Key Insights:
Contractor day rates have fallen in line with permanent salaries. We have
seen a decline in the use of high-cost expat contractors, however, businesses
continue to utilise local contract workers when specific skills or knowledge
are required. This shift in the use of local contract workers is resulting in a
slight decline in overall contractor day rates.
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
19 | Oil & Gas Salary Guide
SALARY INFORMATION
Salaries by Company Type
ANNUAL SALARIES
BY COMPANY TYPE (IN US DOLLARS) Graduate Intermediate Senior
Manager
Lead/
Principal
Vice
President/
Director Consultant
Consultancy 38,100 48,500 74,200 106,700 145,000 96,100
C
ontractor 36,900 50,300 76,200 107,300 150,100 91,300
EPCM 35,100 45,000 59,500 78,200 136,400 54,300
Equipment Manufacture 35,800 51,200 63,900 88,200 152,100 58,300
Global Super Major 58,000 75,600 93,600 131,800 220,400 113,500
Oil Field Services 35,000 40,800 61,400 76,400 135,800 89,900
Operator 43,100 61,000 91,300 114,600 222,800 129,400
Average salaries by company type over the last fi ve years
Consultancy Contractor EPCM Equipment
manufacture
Global
super major
Oil field
services
Operator
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
2014
2015
2012
2013
2011
Key Insights:
In order to remain profitable amidst downsizing and restructuring
programmes, employers are faced with the challenge of finding the balance
between reducing headcount and retaining the knowledge and skills that
will be required in the future.
Salaries for those working in Operators, EPCs and Oilfi eld Services have
su ered the biggest decreases in average salaries, caused by budget cuts
as a result of low oil prices, and the subsequent slowdown in exploration
and production.
Over the next 12 months, eight per cent of employers surveyed expect
salaries to decrease, six basis points more year-on-year. Signifi cantly,
33 per cent of employers surveyed expect salaries to hold steady, a
refl ection of the hope that the market will start to stabilize throughout 2016.
Expected salary changes globally over the next 12 months
0%
20%
40%
60%
80%
100%
33%
26%
14%
19%
22%
28%
25%
22%
28%
26%
23%
19%
16%
21%
30%
32%
18%
24%
30%
27%
17%
24%
29%
28%
14%
39%
24%
21%
2010 2011 2012 2013 2014 20162015
Remain static
Increase between 5 to 10%
Decrease
Increase up to 5%
Increase more than 10%
Oil & Gas Salary Guide | 20Oil & Gas Salary Guide | 20
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
SECTION FOUR: BENEFITS INFORMATION
SECTION FOUR
BENEFITS
INFORMATION
Overall, benefi ts received have remained consistent
with 2014 fi gures
21 | Oil & Gas Salary Guide
High-cost benefi ts have declined, whereas training continues to rise
Oil & Gas Salary Guide | 22
Percentage of employees receiving benefi ts
2010 2012 2013 2014 2015
10%
20%
30%
40%
50%
38%
39%
25%
27%
23%
37%
26%
19%
16%
12%
2011
38%
28%
21%
18%
13%
43%
32%
24%
20%
14%
45%
33%
24%
21%
15%
44%
39%
32%
29%
21%
Retirement plan
Training
Health plan
Car/transport/petrol
Bonuses
23 | Oil & Gas Salary Guide
BENEFITS INFORMATION
Overview of Industry Benefi ts
The number of employees receiving benefits has remained static
year-on-year with 73.9 per cent of survey respondents receiving benefits.
For the first time, this year’s survey respondents reveal that healthcare
plans have overtaken bonuses as the most prevalent benefit received.
Although the overall number of people receiving benefits has stayed the
same, the perceived value of these benefits has increased. Health plans
are valued 31 per cent more than last year and bonuses now make up
nearly 20 per cent of employees total compensation packages.
Benefits associated with expat and overseas assignments have decreased
as employers seek to utilise lower cost local talent. Also notable is the
decline in the number of survey respondents receiving commissions. This
could be a reflection on declining sales, as operators seek to maximize
performance and life cycles of current equipment and machinery, rather
than replace with new.
Background:
T
he bar chart shows two figures related to benefits that employees in the oil
and gas industry receive. The first figure represents the percentage of
respondents that receive that particular benefit, (e.g. 38.4 per cent of
respondents receive some sort of bonus.) The second figure represents the
value of that benefit stated as a percentage of their overall package for
those that receive it, which in the case of bonuses is 19.5 per cent.
20.5%
16.3%
17.1%
14.8%
24.4%
23.6%
10.9%
19.5%
22.1%
17.1%
14.0%
17.0%
18.6%
15.3%
38.7%
11.3%
9.8%
9.9%
22.2%
23.6%
10.2%
38.4%
12.2%
26.6%
12.5%
22.6%
18.8%
25.3%
14.0%
19.5%
Health plan
Schooling
9.1%
5.8%
Commission
T
ax assistance
Hazardous
danger pay
Housing
Home leave
allowance/
fl ights
Share scheme
Bonuses
Paid overtime
Retirement plan
Hardship
allowance
Training
Meal allowance
Relocation
26.1%No benefi ts
Car
/transport/
petrol
Percentage
that receive
the benefi t
Average
percentage of their
total package
Overview of industry benefi ts
Key Insights:
Although employers are under pressure to minimise expenditure, it’s a
positive sign that benefits received are holding steady. Employee
respondents indicate that benefits are a deciding factor when evaluating
a job offer.
Oil & Gas Salary Guide | 24
BENEFITS INFORMATION
Company Benefi ts
Health plans are the most prevalent benefit offered in EPC/contractors
and oilfield services/consultancy businesses, surpassing bonuses for the
first time. For the second year, retirement plans do not appear in the top
five benefits offered by EPC/contractors. Furthermore, EPC/contractors
have the highest proportion of workers who do not receive benefits.
Top benefi ts received by company type
Meal allowance
Car/transport/petrol Training
24.8%
28.8%
Training
34.7%
33.1%
Training Car/transport/petrol
28.9%
Home leave allowance/fl ights
29.2%
33.3%
No benefi ts
No benefi ts
No benefi ts
No benefi ts
31.1%
28.1%
24.4%
21.1%
Bonuses
Bonuses Health plan
31.6%
37.4%
Retirement plan
35.4%
48.0%
Home leave allowance/fl ights
25.3%
Car/transport/petrol
Retirement plan Retirement plan
25.9%
29.0%
Health plan
45.2%
36.9%
Health plan
Health plan
Bonuses
Bonuses
31.8%
39.4%
46.2%
49.8%
EPC/Contractor
Oilfi eld services/consultancy
Global super major/operator
Equipment manufacturer
Key Insights:
Although there are certain benefits that are appealing to most oil and gas
professionals, such as health plans and bonuses, employers should try to
be flexible to suit individual needs. This tailored approach could be an
effective way to retain or attract the best talent.
Permanent
Contract
Benefi ts received by employment type
74.1%25.9%
26.2%
2014
2015
73.8%
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
25 | Oil & Gas Salary Guide
BENEFITS INFORMATION
Benefi ts by Region
Percentage of employees who receive benefi ts by region
After last year’s sharp increase in benefits in Africa, Asia and CIS, this
year, these regions have seen a fall in benefits received.
North America has seen an increase in the number of respondents
receiving benefits, however, this is likely to be an effect of the recent
changes in healthcare provision laws in the US.
Respondents in Europe reported an uplift in benefits continuing the
trend for the last 5 years.
Africa Asia Australasia CIS Europe Middle East North
America
South
America
0%
20%
40%
60%
80%
100%
2014
2015
2012
2013
2011
Key Insights:
Those areas that have traditionally relied heavily on an expat workforce have
seen a decline in benefits received, as companies repatriate often high-cost
foreign labour in order to reduce staffing spend.
Oil & Gas Salary Guide | 26
BENEFITS INFORMATION
Benefi ts by Region
Top benefi ts received by region
Car/transport/petrol
Home leave allowance/fl ights
Car/transport/petrol
29.4%
16.8%
29.5%
No benefi ts
No benefi ts
No benefi ts
26.7%
43.4%
22.3%
Bonuses
Retirement plan
Bonuses
31.5%
21.0%
34.2%
Housing
Training
Housing
25.1%
14.9%
27.6%
Retirement plan
Health plan
Retirement plan
31.5%
17.4%
30.4%
Health plan
Bonuses
Health plan
33.4%
27.8%
37.1%
Africa
Australasia
Training
21.5%
No benefi ts
31.6%
Retirement plan
30.5%
Meal allowance
21.4%
Health plan
25.3%
Bonuses
32.4%
CIS
Car/transport/petrol
32.1%
No benefi ts
21.0%
Health plan
36.4%
Training
26.4%
Home leave allowance/fl ights
35.0%
Bonuses
36.7%
Middle East
Asia
Training
24.1%
No benefi ts
36.5%
Health plan
29.0%
Car/transport/petrol
22.4%
Retirement plan
24.2%
Bonuses
33.5%
Europe
Training
29.7%
No benefi ts
19.2%
Bonuses
35.3%
Car/transport/petrol
21.6%
Retirement plan
35.3%
Health plan
46.2%
North America
Training
34.6%
No benefi ts
18.3%
Bonuses
38.3%
Meal allowance
24.7%
Retirement plan
38.3%
Health plan
42.7%
South America
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
SECTION FIVE: EMPLOYMENT TRENDS
SECTION FIVE
EMPLOYMENT
TRENDS
Employers hiring plans have been signifi cantly a ected by the
current downturn, with only 37% of hiring manager respondents
planning to increase headcount fi gures in 2016
27 | Oil & Gas Salary Guide
Expectation that sta ng levels will change in the next 12 months
Remain static
Decrease
0%
20%
40%
60%
80%
100%
2010 2011 2012 2013 2014 2015 2016
15%
10%
12%
32%
31%
14%
15%
34%
27%
10%
12%
13%
27%
34%
14%
26%
26%
21%
23%
25%
23%
24%
23%
22%
24%
25%
23%
16%
24%
23%
26%
11%
Increase between 5 to 10%
Increase up to 5%
Increase more than 10%
Oil & Gas Salary Guide | 28
EMPLOYMENT TRENDS
Sta ng Levels
As predicted last year, the continued decline in oil prices has led to a
number of high profile mergers and acquisitions. As these companies
continue to integrate with each other, we are likely to see further
headcount reductions. On a more positive note, we would also expect to
see opportunities for skilled contractors with specific knowledge to assist
with the integrations.
0%
20%
40%
60%
80%
100%
120
2010 2011 2012 2013 2014 2015 2016
21%
50%
29%
37%
51%
12%
39%
43%
18%
50%
7%
43%
43%
8%
49%
44%
49%
7%
39%
53%
8%
0%
20%
40%
60%
80%
100%
120
2010 2011 2012 2013 2014 2015 2016
22%
48%
30%
33%
46%
21%
43%
47%
10%
46%
16%
38%
40%
16%
44%
42%
40%
18%
35%
56%
9%
Remain the same
Remain the same
Decrease
Decrease
Increase
Increase
Expectation that expat levels will change in the next 12 months
Expectation that contractor levels will change in the next 12 months
In which areas does your company employ contract workers?
0% 10% 20% 30% 40% 50%
Construction subsea pipelines
Drilling and well delivery
Engineering design
Geoscience petroleum engineering
HSE/QCQA
Operations maintenance production
Petrochemicals
Projects Controls
Supply Chain/Procurement/Purchasing
Support Function
Never Employed Contractor
43%
25%
46%
14%
27%
40%
15%
29%
24%
22%
7%
Key Insights:
Employers could take advantage of the increase in available talent by
engaging workers on short-term contracts, without adding to
permanent headcount. Contract workers can supply specific skills or
knowledge as and when required.
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
29 | Oil & Gas Salary Guide
EMPLOYMENT TRENDS
Global Mobility
Year-on-year there are 15 per cent less expat respondents, as only 33 per
cent of survey respondents indicated they are working overseas. This is
likely to be an example of companies looking to reduce expat staffing
costs. However, 85 per cent of respondents are still seriously considering
an international move, and of those, 40 per cent are looking to make this
move within the next 6 months.
The Middle East remains the number destination for those looking to relocate
overseas, however, Europe is becoming a target area for potential expats.
TALENT MIGRATION BY REGION
Key Insights:
The perceived value of expat specific benefits such as housing (24% of
salary), home leave allowance/flights (23% of salary) and relocation support
(20% of salary) are amongst the highest valued benefits. Employers need to
manage expectations of potential international relocations in order to control
costs in this tight market.
24%33%
31%
20%
35%29%
21%
22%
24%37%
10%77%
16%23%
Export
Import
27%
15%
less expat workers
year-on-year
1%
4%
14%
16%
4%
30%
11%
20%
11%
4%
19%
41%
25%
Asia
CIS
Middle East
South America
Africa
Australasia
Europe
North America
6 to 12 months
2 to 5 years
within 6 months
1 to 2 years
5 or more years
Where are you considering relocating to? In what time frame would you consider making this move?
96%
of employees say compensation
is the main factor when looking
to relocate internationally
85%
of oil and gas workers are
seriously considering
relocating internationally
11%
Oil & Gas Salary Guide | 30
EMPLOYMENT TRENDS
Experience and Tenure
Years of experience in the oil and gas industry
Time in current role
Years of experience for specifi c discipline areas
0%
20%
40%
60%
80%
100%
120
2010 2011 2013 20152012
20%
23%
28%
29%
36%
22%
21%
21%
28%
23%
24%
25%
36%
23%
22%
19%
32%
23%
24%
21%
2014
42%
22%
20%
16%
10 to 19 years
0 to 4 years
20+ years
5 to 9 years
As the industry is aware, the workforce population is aging as more Baby
Boomers near retirement. This year’s survey results highlights this growing
concern, as there are 32 per cent more survey respondents in this category
year-on-year.
14.7%
Less than 1 year
27.1%
1-2 years
30.6%
3-5 years
17.2%
6-10 years
Key Insights:
After last year’s reported increase in the success of government and
industry’s efforts to bring in Gen Y workers, we have seen a reversal in
numbers of respondents in the 0-4 year’s experience bracket, back to
2013 levels. Employers are faced with the challenge of striking the right
balance of keeping headcount costs low, while ensuring the right talent
is secured in order to bridge the ongoing skills gap.
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
47%
of employers say the ageing
population will cause issues
for the future labour market
Geoscience
Construction/installation
22.1%
17.3%
13.2%
19.1%
26.3%
27.8%
30.8%
31.2%
28.1%
29.1%
31.8%
22.9%
23.5%
25.8%
24.2%
26.8%
Subsea/pipelines
Pr
oject controls/
project management
0-4 years 5-9 y
ears 10-19 years 20+ years
31 | Oil & Gas Salary Guide
EMPLOYMENT TRENDS
Deciding Factors for Top Talent
Key factors when considering a new role
0%
10%
20%
30%
40%
50%
Company
reputation
Compensation Career
progression
41%
15%
Benefits
10%
34%
Where there is competition for top talent, it is increasingly important to
understand what the target talent pool needs from their next role and
what their long-term career goals are. In previous years, salary and
company reputation have competed for the number one deciding factor
when evaluating job offers. This year’s survey respondents revealed that
company reputation is the most important factor when considering a new
role, therefore, building and maintaining a strong employer brand is critical.
Company stability and the opportunity to work with new technologies
are high on job seekers’ requirements when assessing a career move in
today’s market.
Key Insights:
In this challenging climate, candidates are particularly sensitive to how
employers are responding to the downturn, specifically how headcount
reductions are managed. It is important to remember a company’s
reputation can suffer long-term consequences from a poorly managed
redundancy program.
How candidates search for jobs
0% 10% 20% 30% 40% 50% 60% 70% 80%
Company website
Recruitment agency
Job boards
Word of mouth/networking
Social media
Headhunted
Internal job listings
Association membership
Mainstream media
University college career websites
Other
63%
61%
45%
43%
35%
31%
27%
26%
20%
5%
2%
Key Insights:
In line with last year’s results, only three per cent of employers are
successfully using social media to hire. As candidates increase their use
of social channels and online profiles to search and apply for new jobs,
companies need to build their online presence to be able to capitalise
on this talent pool and engage with potential candidates.
Seventy-five per cent of employed survey respondents are looking for a new
job, a surprisingly high percentage given the current climate in the industry.
This year, 35 per cent of employees say they use social media to search for
new jobs, an increase of 58 per cent year-on-year. Social media is becoming
a common place for businesses to connect with potential job seekers. More
often, oil and gas professionals are being presented with jobs, rather than
having to proactively search for them. Although the uplift in this year’s data
has likely been skewed due to the increase in active job seekers, we do think
there has been a shift in the number of candidates using social media to
search and apply for jobs.
75%
of employed respondents
are currently seeking
new opportunities
Oil & Gas Salary Guide | 32
EMPLOYMENT TRENDS
Accessing Job Seekers
Human resources changes to attract new talent in the last 12 months
0%
5%
10%
15%
20%
25%
30%
35%
25% 17%23% 23%19%35% 22%
Compensation structure
Rewards and recognition
Succession plans
Training and development
Recruitment attraction strategy
Unsure
None
Key Insights:
Improvements to employee benefits are not only helping attract new
talent, but also retain current staff. Employers should ensure all staff
are aware of training and development programmes that are available
to them. Utilising existing training resources could be a low cost option
to help bolster staff moral.
Health plans are important to both contract and permanent workers.
Bonuses and commission are favoured by the permanent workforce.
Contractors look for housing and home leave allowance as more
contractors work internationally than full-time workers.
Despite market conditions, 77 per cent of employers felt they had to make
improvements to their employee offering, an increase of seven per cent
year-on-year. Training and development is again the number one area
employers have aimed to improve on, with 35 per cent of employers
upgrading their training offering.
Most important factor when considering a new role
Bonus/
commission
Sharesave
Tax assistance
Health
medical plan
Retirement
Plan
Housing
allowance
Home leave
allowance/flights
Hardship
allowance
International
schooling for
dependents
Relocation
package
0%
5%
10%
15%
20%
25%
Permanent
Contractor
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
33 | Oil & Gas Salary Guide
EMPLOYMENT TRENDS
Employment Mix
Employment mix by company type
Contractors
Consultancy
54.2%
58.4%
2.4%
1.9%
28.4%
24.3%
15.0%
15.4%
Oil fi eld
services
64.7% 1.4% 15.6% 18.3%
Total
64.1% 1.7% 18.8% 15.4%
Equipment manufacturer
EPCM
82.8%
61.5%
1.3%
0.5%
10.1%
22.5%
5.8%
15.5%
Operators
Global super major
66.1%
60.7%
3.1%
0.8%
19.9%
12.6%
10.9%
25.9%
Permanent Permanent/
part-time
Contracted direct Contracted
through agency
Employment mix year-on-year
0%
20%
40%
60%
80%
100%
63%
37%
52%
48%
56%
44%
62%
38%
59%
41%
66%
34%
34%
66%
2009 2010 2011 2012 2013 20152014
Permanent
Contract
Key Insights:
This year’s survey results reinforces last year’s trend of contractors
being used to cover short-term skills gaps and provide niche expertise,
continuing the shift away from being used as a long-term staffing
solution. This is likely to continue as businesses look to curb headcount
spend and reduce the number of expat contract workers.
Due to redundancies and layoffs seen across all regions, this year’s
survey results indicate there has been a decrease of three basis points in
the number of permanent workers. However, although permanent
headcount dipped over the last 12 months, the figure is still 20 per cent
above 2009 levels, which was during the last global economic downturn.
Oil & Gas Salary Guide | 34
EMPLOYMENT TRENDS
Employment Mix
Percentage change of employment type from 2014 to 2015
4.9%
-16.6%
-2.4%
-1.2%
GLOBAL SUPER MAJOR
-2.1%
-1.5%
1.6%
EPCM
-35.6%
5.7%
-28.2%
11.1%
-3.0%
OPERATORS
-2.0%
-14.8%
-1.2%
1.3%
TOTAL
-24.4%
-2.9%
4.5%
7.3%
CONTRACTORS
2.2%
-10.3%
3.4%
-0.8%
OIL FIELD SERVICES
9.8%
-8.6
4.8%
-1.0%
EQUIPMENT MANUFACTURER
-6.5%
-20.1%
-1.1%
CONSULTANCY
9.8%
Permanent Permanent/part-time Contracted direct Contracted through agency
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
35 | Oil & Gas Salary Guide
SECTION SIX: INDUSTRY OUTLOOK
SECTION SIX
INDUSTRY OUTLOOK
Employer’s short-term outlook for the industry is one of
uncertainty, however, 80% expect the market to stabilise and
strengthen over the next 12 months
Employer’s confi dence in the oil and gas Industry
0%
20%
40%
60%
80%
100%
2011 2012 2013 2014 2015 2016
41%
46%
11%
23%
40%
22%
15%
12%
45%
33%
26%
48%
21%
26%
46%
22%
10%
26%
47%
21%
6% 5%
6%
Negative
Positive
Neutral
Very positive
35 | Oil & Gas Salary Guide
Oil & Gas Salary Guide | 36
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
INDUSTRY OUTLOOK
Confi dence and Concerns
As expected, economic instability is the number concern for employers
over the coming year, however, survey results show that skills shortages
will again become a key issue towards the back end of 2016. Continued
downward pressure on oil prices along with concerns over the Chinese
economy and political instability in the Middle East may yet see further
declines in investment.
The trend lines indicate how
employers’ concerns around
economic instability decrease
over the next year and skills
shortages start to become a
more prominent issue.
Employers concerns for the oil and gas industry by region
South America
Australasia
Asia
Africa
34.3%
2.0%
1.4%
2.6%
15.0%
40.1%
59.8%
44.5%
9.2%
14.4%
8.4%
12.7%
11.9%
7.8%
6.4%
11.2%
2.9%
11.6%
5.5%
8.7%
9.6%
6.7%
4.7%
6.9%
17.1%
17.4%
13.8%
North America
2.9%
53.5% 11.4%
3.5%
6.2% 5.4% 17.1%
Europe
Middle Eas
t
CIS
2.0%
2.2%
2.5%
49.4%
49.9%
41.7%
8.9%
10.6%
12.2%
8.9%
5.0%
9.1%
8.7%
7.1%
9.3%
7.8%
7.5%
8.4%
14.3%
17.7%
16.8%
13.4%
Cyber
security
threats
Economic
instability
Environmental
concerns
Immigration/
overseas
visa program
Safety
regulations
Security/safety
caused by social
unrest
Skills
shortages
John Faraguna, Managing Director, Hays Oil & Gas
It’s not surprising that economic instability is the major
concern for employers. It will be interesting to see how
accurate employers predictions are surrounding the recovery
of the industry.
“
”
Employers’ concerns in the current employment market globally
Skills
shortages
Economic
instability
Environmental
concerns
Safety
regulations
Security/safety
caused by
social unrest
Immigration/
overseas
visa
Cyber
security
threats
0%
10%
20%
30%
40%
50%
60%
3 to 6 months
6 to 12 months
<3 months
37 | Oil & Gas Salary Guide
INDUSTRY OUTLOOK
Addressing the Global Skills Shortage
37 | Oil & Gas Salary Guide
The key cause of skills shortages
14%
15%
17%
36%
18%
The number of new professionals entering the industry
Up-to-date skills sets with the latest technological advancements
Inadequate succession planning for knowledge transfer/skills retention
Strict immigration laws preventing access to talent globally
Loss of manpower due to the retiring workforce
The industry risks losing considerable knowledge and expertise as older
workers retire without training the next generation. It is therefore not
surprising that 36 per cent of employer respondents said a lack of
succession planning for knowledge transfer and skills retention is the
contributing cause of the skills shortage. This is an increase of 19 per cent
year-on-year. The knock on effect on productivity is creating workplace
pressure. Engineering & Design, Operations & Maintenance and
Petrochemicals are the functional areas most affected.
Key Insights:
Employers are taking action by improving training and upskilling
programmes or engaging short-term contract workers to help bridge
the gap and alleviate workplace pressure.
How are skills shortages impacting productivity in functional areas?
What are employers doing to overcome ongoing skills gap?
0% 10% 20% 30% 40% 50%
Support function eg HR, Finance, IT
Supply chain/procurement/purchasing
Project controls
Petrochemicals
Operations/maitenance/production
HSE/QC QA
Geoscience & petroleum engineering
Engineering & design
Drilling & well delivery
Construction/subsea/pipelines
Business development
22%
25%
31%
28%
37%
29%
36%
41%
34%
33%
24%
0% 10% 20% 30% 40% 50%
Training and development
Targeting outside industries
Targeting female workforce
Partnering with colleges
Changes to retention and recruitng practices
Bringing retires back
Apprenticeships
25%
27%
36%
32%
14%
43%
13%
Oil & Gas Salary Guide | 38
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
INDUSTRY OUTLOOK
The E ect of the Fall in Global Commodity Prices on Employers
How has the downturn in the oil and gas industry impacted your business?
0% 10% 20% 30% 40% 50% 60% 70% 80%
Changes to workload
Changes to benefits/incentive programs
Salary changes
Headcount changes
62%
40%
40%
66%
How many employees have businesses had to lay off in the last 12 months?
None
<50
51-100
101-250
251-500
501-1,000
1,000-5,000
5001-10,000
10,0001-15,000
>15,000
0%
5%
10%
15%
20%
25%
30%
35%
7% 31% 14% 14% 9% 10% 9% 3%
1%
1%
Over the coming months, how do you see the oil and gas industry changing?
<3 months 3-6 months 6-12 months
10%
20%
30%
40%
50%
60%
18%
24%
53%
44%
20%
34%
38%
42%
27%
Weakening
Remaining static
Strengthening
32%
of respondents have been
laid o /made redundant
due to the global
industry downturn
39 | Oil & Gas Salary Guide
INDUSTRY OUTLOOK
The E ect of the Fall in Global Commodity Prices on the Workforce
Almost two thirds of survey respondents who have been laid off or made
redundant, due to the current climate, have received no support from
their former employer. This is likely to leave a negative impression for
some time on those directly affected and the wider oil and gas
community. Given that company reputation is the most influencing factor
for job seekers when evaluating a job offer, employees must be aware of
the importance of building a good employer brand. The exiting of staff is
a key part of building a good reputation and so must be managed
effectively to keep a strong employer brand.
Seventy-one per cent of respondents affected by lay-offs or
redundancies are considering a role outside of the oil and gas industry.
Renewable energy, construction and mining are the most popular
options. However, reassuringly, 85 per cent are confident they will secure
a role within the industry.
Key Insights:
Employers should seriously consider providing low cost/high value
support to those affected by lay-offs such as those below.
Key Insights:
Twenty-two per cent of employed respondents have taken a pay cut to
retain their job. Furthermore 51 per cent would consider taking a
reduction in salary to stay in their current role.
How confi dent are you about fi nding new employment in oil and gas industry?
15%
14%
15%
30%
26%
Very confi dent
Slightly confi dent
Extremely confi dent
Moderately confi dent
Has your former employer provided assistance or resources in helping you to secure new employment?
Are you currently seeking new opportunities in your field outside of the oil and gas industry?
0% 10% 20% 30% 40% 50% 60% 70%
Time o
Financial support
Referrals to other employers
Connect with recruiting firm
Paid-for-support from 3rd party
Career advice/counselling
None
Other
10%
10%
8%
60%
11%
16%
13%
7%
0%
5%
10%
15%
20%
25%
30%
35%
40%
37%
14%
22%
5%
30%
10%
14%
8%
29%
Not at all confi dent
Nuclear
Forestry
Renewable Energy
Mining
Construction
Government and Defense
Aviation and Aerospace
Pharmaceuticals
Not at this time
Oil & Gas Salary Guide | 40
SECTION SIX:
INDUSTRY OUTLOOK
SECTION FIVE:
EMPLOYMENT TRENDS
SECTION FOUR:
BENEFITS INFORMATION
SECTION THREE:
SALARY INFORMATION
SECTION ONE:
DEMOGRAPHICS
SECTION TWO:
INDUSTRY PERSPECTIVE
INDUSTRY OUTLOOK
Focus for 2016
Employer’s geographical focus over the next 12 months, outside their own regional area
8.7%
6.8%
4.6%
17.7%
5.2%
7.9%
6.6%
28.4%
14.3%
Asia
Mike Wilkshire, Director, Hays Oil & Gas
Despite current conditions, the oil
and gas industry in Asia is a huge market
with the potential for significant growth.
We could expect to see companies in the
region slowly restart hiring activities
should the price of oil increase to over
$60-$65 per barrel during 2016.
“
”
Oil and Gas Job Search
Duncan Freer, Managing Director, OIl and Gas Job Search
The level of confidence in the industry by the employers surveyed has remained robust despite the difficult market conditions.
“
Middle East
Gary Ward, Director, Hays Oil & Gas
Although other oil producing regions have reduced
capital spend, the National Operating Companies (NOC)
within the GCC have increased spend in order to boost
production levels as they continue to battle for market
share. These NOC’s together with EPC contractors in the
region have been on a recruitment drive for a wide
variety of Project and Construction Professionals and we
expect to see this trend continue throughout 2016.
“
”
North America
Jim Fearon, Vice President, Hays Oil & Gas
2015 has been a challenging year
throughout the region, where the global oil price
drop has been especially strongly felt. Overall,
employers have now adjusted to the new
economic conditions and are hoping for a more
stable 2016.
“
”
Latin America
Neil Gascoigne, Director, Hays Oil & Gas
The sharp decline in oil prices
has had a negative effect on the
region, highlighted at the latest
Brazilian oil field auctions by the
worst turnout in more than a
decade. Pipelines from the Texas oil
plays into Mexico look set to
provide a small glimmer of
opportunity for those companies
willing to invest and create jobs for
local talent in the region.
“
”
”
41 | Oil & Gas Salary Guide
PEOPLE PLACED INTO
TEMPORARY ASSIGNMENTS
LAST YEAR
PERMANENT CANDIDATES
PLACED LAST YEAR
STAFF WORLDWIDE
OFFICES WORLDWIDE
COUNTRIES WORLDWIDE
200,000
63,000
9,000
240
33
Hays Oil & Gas specialise in the recruitment of professionals within the oil and gas sector across the following regions: Africa, Asia,
Australasia, Commonwealth of Independent States, Europe, Middle East, North America and South America.
Hays specialises in the following 20 functional areas and industry sectors globally:
To register your vacancy or to find your next job, please visit hays-oilgas.com
ABOUT HAYS
Accountancy & Finance
Banking & Capital Markets
Construction & Property
Contact Centres
Education
Engineering & Manufacturing
Executive
Financial Services
Health & Social Care
Human Resources
Information Technology
Legal
Life Sciences
Office Professionals
Oil & Gas, Energy
Purchasing
Resources & Mining
Retail
Sales & Marketing
Telecoms
Oil & Gas Salary Guide | 42
© Copyright Hays plc 2015 and Oilandgasjobsearch.com Limited. HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the
HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc. The Corporate and Sector H devices are
original designs protected by registration in many countries. All rights are reserved. The Oil and Gas Job Search logo is protected by trade mark
and design laws in many jurisdictions. The reproduction or transmission of all or part of this work, whether by photocopying or storing in any
medium by electronic means or otherwise, without the written permission of the owner, is restricted. The commission of any unauthorised act in
relation to the work may result in civil and/or criminal action.
To find your local office please visit the Hays website: hays-oilgas.com
NORTH AMERICA
CANADA
Calgary
T: +1 403 269 4297
E: recruit@hays.ca
UNITED STATES
Houston
T: +1 713 961 0359
E: hays-oilgas-us@hays.com
LATIN & SOUTH AMERICA
BRAZIL
Rio de Janeiro
T: +55 21 2430 6600
E: ogriodejaneiro@hays.com.br
COLOMBIA
Bogotá D.C.
T: +57 (1) 742 25 02
E: colombia@hays.com.co
MEXICO
Mexico City
T: + 52 (55) 5249 2500
E: mexico@hays.com.mx
EUROPE
DENMARK
Copenhagen
T: +45 33 15 56 00
E: copenhagen@hays.com
FRANCE
Paris
T: + 33 1 42 99 16 64
E: paris@hays.fr
ITALY
Milan
T: +39 02 888 931
E: milano@hays.it
POLAND
Warsaw
T: +48 22 584 5650
E: warsaw@hays.pl
UNITED KINGDOM
Aberdeen
T: +44 122 494 5483
E: aberdeen@hays.com
London
T: +44 203 465 0133
E: oilandgas@hays.com
RUSSIA & CIS
RUSSIA
Moscow
T: + 7 495 228 2208
E: moscow@hays.ru
MIDDLE EAST
UNITED ARAB EMIRATES
Abu Dhabi
T: +971 2 671 1127
E: og.abu-dhabi@hays.com
Dubai
T: +971 4 361 2882
E: og.dubai@hays.com
ASIA
CHINA
Beijing
T: +86 10 5765 2688
E: beijing@hays.cn
Shanghai
T: +86 21 2322 9600
E: og.shanghai@hays.cn
MALAYSIA
Kuala Lumpur
T: +603 2786 8600
E: og.kualalumpur@hays.com.my
SINGAPORE
Singapore
T: +65 6303 0152
E: og.singapore@hays.com.sg
AUSTRALASIA
AUSTRALIA
Adelaide
T: +61 8 7221 4141
E: og.adelaide@hays.com.au
Brisbane
T: +61 7 3231 2692
E: og.brisbane@hays.com.au
Melbourne
T: +61 3 9670 2066
E: og.melbourne@hays.com.au
Perth
T: +61 8 9254 4595
E: og.perth@hays.com.au
Sydney
T: +61 2 9249 2299
E: og.sydney@hays.com.au
UNITED KINGDOM
Manchester
T: +44 161 975 6026
AUSTRALIA
Perth
T: +61 8 9262 6297
UNITED ARAB EMIRATES
Dubai
T: +971 44 27 5001
E: sales@oilandgasjobsear
ch.
com
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