Workforce Survey h1 2014

2014 January - June
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Introduction 1
Survey Findings 2
Summary Overview 6
Africa 7
Americas 9
Asia Pacifc 11
Australasia 13
Europe 15
Middle East 17
Industry View 19
Air Energi Overview 20
OilCareers Overview 21
Disclaimer: The Air Energi, OilCareers.com H1 Workforce Survey 2014 is representative of an added value service to clients and candidates. Whilst every
care is taken in the collection and compilation of data, the survey report is interpretive and indicative not conclusive. Therefore information should be used
as a guideline only.
Contents
Introduction
www.airenergi.com 1 Air Energi 2013
Introduction from Mark Guest
At OilCareers.com, we are delighted to introduce the frst new look
Global Workforce Survey for 2014 in partnership with Air Energi. Before
we get to the fndings I would like to thank the industry professionals
who took the time to participate.
Looking forward, 2014 is set to be another year of high activity across
all the main producing regions as global demand continues to increase.
This will have a big impact on the industrys jobs market, presenting
opportunity and challenge in equal measure for the sector in 2014.
Of course the skills gap remains a major issue facing the industry in 2014, with retention, education
and local content initiatives likely to be major areas of focus for companies looking to recruit.
To echo the views of OPITO CEO David Doig, 2014 must be the year where we begin to collaborate
in our efforts to curb the skills gap and make a conscious effort to retrieve the situation before it
becomes too late. Something we can ill afford if we are to continue to meet the worlds energy
demands.
As the worlds largest online dedicated oil and gas jobs board, our objective is to provide our
candidates with access to a variety of positions spanning the entire oil and gas supply chain. With
more than 24,000 new candidate registrations per month and 930,000+ searchable CVs, we in turn
help recruiters and organisations in their continued quest to source the best solutions.
Introduction from Duncan Gregson
With increased project activity anticipated in many regions of the world,
2014 is set to be another exciting year of growth and development for
the oil and gas industry.
Professionals from across the supply chain expect to see salaries and
contractor rates rise as demand increases. At the same time, it is clear
that the impact of people-related risk on projects is also on the rise.
People-related risk is having a tangible impact in the form of budget and
schedule overruns whether in the form of increasing labour costs or diffculties with retention,
challenges with global mobility and compliance, or the shrinking pool of talent as cuts in training
budgets and retirement rates begin to bite.
Certainly, this is the overarching theme to emerge from the fndings of the H1 2014 Global Workforce
Survey, and is a primary consideration shaping Air Energis strategy for delivering a total personnel
solution at any scale, at any point in the project lifecycle, and at any location.
On behalf of Air Energi, I would like to take this opportunity to thank everybody that has participated
in this survey for their valuable contributions, with special thanks going to David Doig, Group CEO
at OPITO, for sharing his thoughts on the collective action needed to ensure our industry retains
its position as the most dynamic in the world.
www.airenergi.com - www.oilcareers.com 1
Air Energi/OilCareers.com 2014
Welcome to the H1 2014 Global Workforce Survey,
prepared by Air Energi and OilCareers.com. With more
than 500 industry professionals participating and
representing every region and type of organisation
across the supply chain including EPC (engineering,
procurement and construction) and project
management contractor (PMC) frms, sub-contractors
and energy companies the aims of the Global
Workforce Survey are to:
Highlight the people-focused issues oil and
gas companies will face in 2014
Raise awareness of people-related risk in the
oil and gas industry and its impact on projects
Provide an overview of pay
rates for contractors across
the industry
Key fndings
Half of respondents expect
both permanent and contract
hiring activity levels to
increase in 2014, and more
than half (58%) expect
rates and salaries to rise
Skills shortages were
identifed by 44% of
respondents as the biggest threat to the oil
and gas industry currently, followed by
economic instability (28%), capital costs and
visa / immigration issues (both 9%)
Engineering was by far the most sought after
discipline (58%), followed by project
managerment (22%) and drilling (9%)
An overwhelming majority of respondents
(80%) felt that the skills shortage is real,
based on their experience of flling roles in
their organisation over the last 12 months
Survey Findings
Hiring activity, rates and salaries
The oil and gas industry is powered by highly mobile,
career-oriented people. Experienced professionals
are extremely sought after, highly remunerated, with
excellent benefts packages and training programmes
available to them. There has been no change in the
way these professionals are treated by the major
international oil companies (IOCs) throughout the
years.
Increased project activity is anticipated in many regions
of the world, driven by shale oil and gas in the USA,
oil and gas projects in the Middle East, and the gas
projects in Australia. Many of the
worlds leading drilling companies
are looking to increase their feets
to meet global demand.
According to the results of
the Global Workforce Survey,
engineers are highly sought
after, with 58% of respondents
identifying this as the professional
role most in demand at their
organisation. This was followed by
Project Manager (22%), Drilling
(9%), Contract Administrator
(6%) and Geologist (5%).
But with demand for talent continuing to outstrip
supply in verticals such as subsea, shale, LNG, and
downstream, hiring activity and pay rates are on
the rise: 48% of survey participants expect their
organisations hiring activity levels for both permanent
and contract positions to increase in 2014. Only 12%
anticipate a decrease in permanent hiring activity,
while 11% expect a drop in contract hires. More
than half of participants (58%) believe that rates and
salaries will rise this year, with 36% expecting them
to stay the same and just 6% anticipating a fall.
The rise in rates and salaries means that retention is
an issue. In the Middle East, increased competition in
the EPC / PMC market from Asia in particular and the
More than half
of participants
(58%) believe
that rates and
salaries will
rise this year
tight margins for such work has presented an issue for
companies both in terms of attracting new talent, and
retaining existing talent. Although it is diffcult to place
a fgure on the impact that attrition has on a project,
this is perhaps becoming one of the key drivers in
budgetary over-expenditure and project delays.
Meanwhile, a growing number of experienced
professionals are moving from IOCs and national
oil companies (NOCs) to smaller, more agile players
that have lower overheads and can therefore offer
higher salaries. They are also relocating to other
regions where better rates and salaries are available.
For example, while Australasia is a key player in the
global LNG market, there is the added pressure on
companies to focus their retention strategies, with
Australia being seen as a key talent pool of highly-
skilled LNG professionals for future developments in
North America and East Africa.
Training and talent
Retention is also becoming more challenging at
organisations serving IOCs and NOCs. Mid-tier service
companies and EPCs have traditionally found it diffcult
to attract professionals given that IOCs and NOCs are
able to offer more attractive opportunities for training
and career development. Although
they too have training programmes
in place, service companies and
EPCs continue to see a natural
migration of talent to IOCs and
NOCs over time.
Of the more than 550 industry
professionals participating in
the survey, the majority (75%)
confrmed that their organisation
offered internal training, although
29% said that there was not a full
selection of training available. The
other main challenges in employee
training were identifed as having
a lack of quality candidates (28%), a lack of budget
(24%), and a lack of skilled trainers (19%).
Nevertheless, IOCs and NOCs expect their suppliers to
maintain a certain level of service quality, placing the
onus on service companies and EPCs to maintain their
levels of experienced resources and ensure a healthy
fow of new talent. Although 59% of survey respondents
felt that their companys training programme was
capable of dealing with the anticipated increase in
new recruits entering the industry, the majority (69%)
said they do not believe the education system does
enough to inform and advise young people on careers
in oil and gas in their region and globally.
According to OPITO, the oil and gas industry skills
body, education is key to unpicking many of the
problems faced. OPITOs David Doig warns that the
industry has already gone beyond the skills shortage
to a skills crisis and that more companies need to
wake up to the fact that cooperation on training is
badly needed (turn to page 19 to read more).
Local content
The need to encourage more young people to enter
the oil and gas industry and up-skill the local workforce
suggests that companies must implement more robust
training programmes in each locale, taking in the most
promising students each year from the best colleges,
and recognising this as a cost of doing business.
Local content policies are being enforced rigorously
in some countries (and circumvented in others).
In Nigeria for example, 80% of
engineering has to be performed in-
country. This might be considered a
high percentage, but such a policy
ensures that companies invest in
training and recruiting engineers
who live locally.
There is little evidence to suggest
that local content policies impact
on the industrys ability to fll roles,
with more than half of survey
participants (61%) confrming
this. Ultimately however, retention
remains an issue, because once
professionals are trained and attain
a certain level of experience they
tend to migrate to other markets where salaries are
higher.
Certainly, we have seen evidence of this in parts
of Asia and West Africa. In Angola for example, a
migratory pattern is anticipated as projects in Brazil
Employee
Training Issues
29% Selection issues
28% Lack of
Candidates
24% Budget issues
19% Lack of skilled
trainers

gain momentum, given that Portuguese is widely
spoken in both these markets. Moreover, professionals
returning to their country are paid not as expats but as
returning citizens. Thus it is proving diffcult to entice
expats, back with skills they have received overseas.
In Africa, a lot of companies are looking at strategies
to attract locals back into the region. This can be
expensive as they have to offer them higher rates.
Alternatively, there has also been an increase in the
level of training and ongoing qualifcation taking
place, so the skills gap wont be quite as high as it has
been in the past.
Pressures in the supply chain
The industrys persistent failure to act collectively
in dealing with the root causes of
the skills shortage, combined with
typical approaches to recruitment
and retention of experienced
professionals (i.e. increasing
rates of pay) are false economy:
increased labour costs drive up
project costs, resulting in continued
price pressure in the supply chain.
For LNG projects in British Columbia
for example, the overriding gold
rush mentality is being heavily
constrained by the number of
experienced professionals in
Canada with LNG experience.
Downward pressure on price also
impacts on the level of investment
in training, which is one of the frst areas to see cuts
at service companies lower down the supply chain.
If the point of differentiation is price, and business is
based on winning scopes of work, those lower down
the supply chain are unlikely to be investing in long-
term training. In some markets in Asia for example, we
have seen direct evidence that smaller and mid-size
companies are not spending as much time and money
on training as larger companies, which increases risk
given future demand.
Of course, contractor pay rates can go up and down
according to supply and demand, whereas permanent
salaries have historically remained static or followed
an upwards trajectory. During 2014 however, survey
respondents said that they expect pay rates to
increase across both permanent and contractor roles.
This becomes an issue in boom markets such as
Australia and Africa, where project development costs
can become prohibitive.
High labour costs and low productivity in the
construction sector means construction cost per
unit capacity in Australia is among the highest in the
world. The challenges arent limited to the west coast,
with all three CSG projects in Queensland delivering
announcements of budget overruns and heightened
speculation of delayed plans for Arrow LNG. Mainly
due to high labour costs, continued productivity
challenges and uncertainties caused by the hype
around the North America shale boom.
The skills shortages across
operations professionals are likely
to mirror those faced during the
construction ramp up in Australia
during 2012/2013, with multiple
projects all requiring professionals
with the same skill sets at the
same time. Signifcant investments
in training and a greater focus
on skills development from both
industry and government bodies
will be seen in an effort to curb skill
shortages and meet operational
demands, supplemented by
continued access to the global
markets for skilled personnel.
Risk mitigation
A further trend identifed by the Global Workforce
Survey has been the continued shift from West to
East in respect of the activities of larger companies.
Many are moving work to where the available trained
workforces are e.g. China, Malaysia, and India.
Not only have labour costs been lower historically in
developing markets, there also tends to be a more
abundant pool of younger and more qualifed talent.
Nevertheless, these markets are maturing and rates
of pay are increasing.
In Indonesia, there has been a large increase in local
A further trend
identifed the
continued shift
from West to
East in respect
of the activities
of larger
companies.
wages over the last fve years. Skilled young nationals
are taking jobs outside of Indonesia and when they
return, they expect global wages. In addition, the
global oil and gas workforce is aging rapidly and
there is a short supply of good young professionals
and they are tough to keep.
With half of companies participating in the Global
Workforce Survey stating that their organisation
was prepared for a gradual loss of talent through
retirement, several trends provide early warning signs
of what the potential impact of exacerbating the skills
shortage would be:
Rising labour costs impacting on the
commercial viability of development projects
Developing countries struggling to retain
experienced professionals
An inability inherent within the industry to
address the need for encouraging the next-
generation of talent makes the skills shortage
a self-fulflling prophecy
For 2014, it will be essential for oil and gas frms
to adopt a more strategic approach to mitigating
people-related risk. Ultimately it is people-related risk
that is increasingly resulting in project delays and
cost overruns irrespective of whether oil and gas
companies have accurately forecasted the number
and types of professionals they need.
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4
Q1
Africa
18.0%
Russia
1.85%
Australia
6.1%
Middle
East
24.0%
Americas
19.65%
APAC
18.0%
UK
7.95%
Europe
7.05%
36%
SAME
58%
RISE
6%
FALL
Contract
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
H2
2013
H1
2014
100
90
80
70
60
50
40
30
20
10
Perm
H1
2010
H2
2010
H1
2011
H2
2011
H1
2012
H2
2012
H1
2013
H2
2013
H1
2014
100
90
80
70
60
50
40
30
20
10
Global Salary
Predictions
Percentage of responses from each geographical region
Perm and Contract Hiring Rates
H1 (2014) Survey Summary
Air Energi and OilCareers.com would
like to thank all organizations and
participants who took the time to respond
to and infuence our survey and report.
The returns clearly show a substantial
response from decision makers and
industry insiders across all the oil and gas
producing regions. We are pleased to
present the fndings in this report for our
industry partners to utilise in their future
decision making.

%Increase %Same % Decrease
Africa
Regional Overview
The continent of Africa can be divided in two with regards
to oil and gas development. In West Africa, there are a
large number of existing operational assets, including
deepwater projects, with the on-going development
of future projects and a signifcant level of drilling and
exploration activity also underway. This makes West Africa
a relatively mature market.
Meanwhile, East Africa is very much an up and coming
market. It is recognised as a region where there is a lot
of opportunity, particularly in countries such as Kenya,
Tanzania, and Mozambique. A number of oil majors are
heavily engaged in East Africa and recognise that there
are many felds that are as of yet untapped and ripe for
development.
In respect of the verticals, we are seeing that disciplines
related to operations and maintenance are increasingly
needed for the operating assets in West Africa. These
skill sets are required to a lesser extent by the emerging
countries in East Africa, such as Tanzania and Mozambique,
and instead, there is a high demand for exploration,
drilling and appraisal candidates. There are also several
large LNG projects underway in East Africa, meaning local
candidates and expats with strong LNG experience are in
high demand.
Given that the East and West regions of Africa are
effectively standalone markets, there are different drivers
of workforce demand both in terms of operational assets,
and availability of candidates.
In West Africa, the skill sets of the local candidates have
been well developed over a number of years, and oil and
gas professionals are well qualifed. But for operators,
retention of locals is becoming more of an issue, as
experienced professionals are looking to emigrate from
Africa to regions where they may be better paid. Because
local content compliance laws and regulation demand
that companies must have a certain percentage of their
workforce as local nationals, there are a growing number
of initiatives underway to recruit these individuals.
Workforce impacts
Certainly, this is going to be a challenge, and particularly
for Angola moving forward. As Brazil develops as an oil
producing nation, we are going to see a lot of Angolans
moving to Brazil, since they speak Portuguese and can
emigrate relatively easily. It is therefore anticipated that
the situation for local candidates will worsen in Angola
over the coming years.
In East Africa, local candidates are yet to gain signifcant
levels of experience and the skill sets required for the oil
and gas sector is not inherent in the local population. For
emerging oil and gas producing nations such as Kenya,
Mozambique, Tanzania, and Uganda where the industry
is not as yet established, we will see inward investment
from many of the operators on cultural projects, to address
the growing training requirement and ensure more people
attain the necessary qualifcations and experience to work
in the oil and gas sector.
Increase 68.75%
Decrease 1.95%
No Change 29.3%
RATES & SALARIES
BIGGEST THREAT TO INDUSTRY
Capital Costs 6.6%
Labour Costs 9.75%
Skill Shortages 29.05%
Economic Stability 38.45%
Safety Regulations 4.95%
Visa/Immigration 11.2%
PREDICTED HIRING NUMBERS
63.2% 38.9%
6.7% 14.6%
30.1% 46.5%
Permanent Contract
Increase Decrease No Change
The migration away from West Africa to more lucrative
projects is compounding the skills shortage and although
many companies are implementing strategies to attract
locals back into the region, this can be expensive as they
have to offer them higher salaries and contract rates to do
so. Nevertheless, the substantial level of activity around
training and sponsored qualifcations in the region should
mean that the skills gap wont be quite as wide as it has
been in the past.
Moreover, there are candidates coming through the
university system to fll the gaps left by professionals
that are emigrating. In developing countries however, the
skills shortage is going to be an issue. Those approaching
graduation currently do not have a great deal of knowledge
and experience relevant to the oil and gas industry.
Project impacts
Despite the progress being made in developed markets
to increase the level of qualifed candidates available,
production deadlines are still being impacted by a lack
of available local talent. High labour costs are having an
impact too. Whereas previously, companies would have
anticipated a specifc cost associated with having local
candidates, the fact that they have to offer higher salaries
and rates to attract expats has had an impact in terms of
cost, as well as schedule for current development projects.
Where there is no local expertise available, it is a case of
importing more expensive expats to fll the skills gap while
companies bring the local population up to speed over a
period of years especially since there hasnt been any
relaxation of local content laws. There are, however, some
initiatives to reduce withholding tax in emerging regions
to incentivise foreign companies to invest. In Mozambique,
for example, the government has reduced withholding tax
to 10% for certain projects.
Although there are going to be signifcant infrastructure
issues and local content diffculties, the outlook for future
development projects is extremely positive. East Africa
in particular is seen as an untapped resource, and the
opportunity in terms of assets is huge. There are major
projects planned particularly LNG projects in Mozambique
and Tanzania and there are major international players
involved, so any issues with infrastructure and local
content are unlikely to impact on the sanctioning of
planned projects.
Historically, Africa has been a volatile region and there are
on-going conficts in Sudan and South Sudan currently.
This is having an impact on both the price of oil and the
opportunity to develop oil and gas projects. Indeed, oil
prices will remain high as those countries that are oil
rich but volatile politically will not be attractive to outside
investors until there is an improved level of stability.
Conversely, Tanzania is proving particularly attractive to
foreign investors, due to the ease of doing business and
ability to repatriate funds.
Africa
Africa
Quotes from participants of the Survey
The local content policies have encouraged the
availability of skilled manpower. We have taken
advantage of this to fll important roles.
(Local content policies are) creating an enabling
environment for more jobs to be awarded to
indigenous frms and thus flling of roles.
Ive been in this business for 35 years and there
always has been a perceived shortage of quality
personnel. We are no different from any other
business in that we need to spend more money
on training & attract more young people into our
industry.
Manpower training and retraining for technology
advancement in the oil and gas (industry) is vital.
Regional Overview
Over the past 12 months the US has experienced its
domestic production exceeding imports for the frst time
in 20 years. In 2014, the momentum continues, led by oil
rich shale opportunities, particularly in mega plays such
as the Permian Basin, Eagle Ford and Bakken. Investment
remains healthy with various authorities across the US
offering tax incentives, and the oil and gas sector continues
to see job creation as a result.
As the industrys leading players seek further approvals to
construct and upgrade existing LNG facilities (combining
world-class production and export capability on some
projects) the demand for LNG and liquefaction talent
continues. Within the refnery and manufacturing sector it
is likely that the strong US talent base will be encouraged
by an increase in projects to upgrade existing production
refneries. Whilst this is likely to provide job seekers with
confdence in 2014, an increase in remuneration is yet to
be realised.
Offshore skills continue to be in demand with an increase
in Gulf of Mexico activity providing employment and
contract opportunities from the small industry players
through to the super majors. In particular, deep water
drilling experienced candidates remain in high demand,
particularly those with a strong background of health and
safety.
A market shift is currently underway however, as
engineers possessing offshore project experience, such as
topsides, move toward major onshore facilities projects.
Onshore related skills in high demand relate to Drilling
& Completions (Conventional & Unconventional), Project
Controls, Geologists, Subsurface and Facilities Engineers.
The unconventional market continues to attract talent and
those with niche skills will earn a premium.
In Canada, LNG projects on the west coast of British
Columbia remain a major story, with several additional
export licenses being granted. Development programs
continue at pace in the face of a signifcant battle for
talent with LNG experience. With longer timelines, but
similarly themed labour challenges, activity in Atlantic
Canada continues to build, with new felds expected to be
developed across the remainder of the decade. Interest in
further exploration in this region is also building.
Workforce impacts
From west to east, the story is a familiar refrain in Canada:
more demand for skilled oil and gas professionals than
the market can support. This is expected to worsen in the
next decade as some 190,000 skilled workers are likely to
retire. For LNG projects in British Columbia, the overriding
gold rush mentality is being heavily constrained by the
number of experienced professionals in Canada with LNG
experience. Canada has only had one notable LNG project
in the past decade and as such, the talent pool is mostly
limited to recent immigrants with LNG experience gained
in other markets. To deal with this issue, most companies
involved are using a combination of tactics, hiring as much
as possible within Canada, but work-sharing to other
countries, or outsourcing larger packages.
Permanent Contract
Increase 53.25%
Decrease 8.15%
No Change 38.6%
RATES & SALARIES
Capital Costs 14.3%
Labour Costs 5.3%
44.7% 35.9%
14.4% 17.2%
40.9% 46.9%
Permanent Contract
Americas
In Atlantic Canada, the pool of available and experienced
personnel, particularly in Newfoundland, is almost
completely utilised, with the movement of personnel
between projects depending largely on project timings.
Safety personnel, Topsides, Subsea and GBS engineers
remain in strong demand, as well as Project Controls
personnel, and key discipline engineers notably civil/
structural.
Broadly, pay rates have been under downward pressure in
Alberta throughout 2013 with exceptions for specifc skill
sets. This will change during 2014 as activity increases
both in Alberta and across the country. Rates for LNG
personnel will escalate more acutely as competition for
personnel between projects for Canadians with LNG
experience continues to grow. The ability to outsource
work to lower cost regions continues, but is seeing signs
of abating.
Project impacts
Capital spend is shifting in the US from the upstream
sector to midstream (pipelines/LNG) and downstream
(refneries new build and upgrades/petrochemical
facilities) sectors. The US begins 2014 in an enviable
position, with the majority of work still being awarded
to western-based businesses. The demand for talent
continues to outstrip supply in specifc markets such as
shale, LNG and downstream. Whether employers fnd
themselves forced to either increase rates and salaries,
or award work outside the US in order to meet demand
remains to be seen.
The Canadian oil story has been one of excess supply and
lack of capacity to distribute to markets where demand
is high and pricing stronger. The capacity constraint
has slowed both project pace and interest in new
developments, while fostering an increase in oil by rail
as a viable alternative. Oil-by-rail safety is an escalating
issue and is cited as having a 300% higher spill risk
than pipelines. Numerous derailments in North America
are increasing the negative pressure on this option, but
the expectation is that ultimately, eastern and western
Canadian pipeline projects will advance to fnal sanction.
For Alberta, oil projects have changed little, other than
a slowly rising tide of overall demand. The current
challenge is fnding strong Construction Management
personnel, Pipeline Engineers, Cost Estimators/
Engineers, Drilling Engineers, HSE Advisors, Mechanical/
Completions Engineers, and Commissioning Managers and
Superintendents.
In Brazil, technological advances, immigration diffculties
and the lack of a solid supply chain are all factors limiting
investment and the forward movement of projects. Local
content regulations have been reviewed with no change,
meaning that the very low unemployment rate continues
to hamper the resources available. This war for talent
covers all disciplines.
Americas
Americas
I am in dire need of grass-roots experience.
Every one of my contract folks are above 25 years
experience. Best money I have ever spent and
cannot do without them. Most all of their wage
agreements are above 200% market value for
someone with a fresh graduate diploma and no
experience.
These (retiring) folks are the lifeline of our
success. Its very shortly after they retire we have
to buy them back at a huge rate but the increased
expense is absolutely justifed. Mistakes are much
more expensive.
There must be further need by government and
private institutions to forge ahead with further skills
training, not only for the oil and gas industry but
also the new energy age that is almost upon us.
There must be a global need to further explore
what is to be done to generate further exploration
and also the need to seek new frontiers of energy.
Regional Overview
Asia is expecting increased project activity across the
region throughout 2014. This will mean high demand
for engineering, construction, contract, and project
management skill sets.
Oil companies obtaining Final Investment Decision (FID)
on some of the worlds largest and most complex onshore/
offshore upstream and downstream projects, combined
with the possibility of a second wave of liquefed natural
gas (LNG) projects coming out of Australia, will see the
stretch on demand tighten further, as does the risk of
increased workforce costs. In addition, with companies
setting up new premises throughout the APAC region, we
see a high demand for executive search services.
Core markets on the rise throughout APAC are LNG and
Subsea. In Indonesia, we expect to see an increase in
onshore drilling in Sumatra and East Java. In Malaysia,
oil and gas production is set to grow, thanks to the
development of large discoveries. A string of prolifc
discoveries and major projects are set to come online
between 2013 and 2018, which would see gas production
continue on an upward trend. Nearly all of these new
projects are off the coast of Sarawak, East Malaysia.
In Singapore, orders for Jack-up and foating production
storage and offoading (FPSO) are decreasing. Orders
made in 2008 are now close to fnishing and we do not
foresee any major uplift until 2015-2016. Meanwhile,
increasing costs and capacity issues at Singapores three
main shipyards (Sembawang, Keppel, Jurong) have
seen construction projects going to South Korea, China,
Malaysia, and Indonesia.
Workforce impacts
Increased project activity is placing further strain on
workforce retention at companies across the region.
Those operating where local content requirements are
paramount namely Malaysia, Indonesia and Thailand
are expecting increased international project activity
(e.g. FEED, EPC). At the same time, a number of domestic
projects are coming into play such as Petronas $20
billion RAPID project in Malaysia, and BPs expansion plans
on the Tangguh facility in Indonesia.
To help maintain current headcount and attract new talent,
companies are offering higher salaries and rates, as well as
training the existing workforce to meet demand. Training
in general and safety-related issues are critical areas when
it comes to using more local workforces where English is
not the frst language. In some markets, smaller and mid-
size companies are not spending as much time and money
on training as larger companies, which increases risk given
future demand for qualifed and competent professionals.
In Malaysia, Petronas is starting to play a more infuential
role by increasing the percentage of local suppliers for
its oilfeld service needs, and is becoming a conduit for
capital, technology, talent and knowhow. Bringing in
more local talent drives up pay rates, while competition is
ferce as many local companies vie for limited resources.
In terms of permanent recruitment, the need for retained
search is on the rise, as sourcing and securing talent is
proving tougher than ever before.
Permanent Contract
Increase 62.6%
Decrease 4.95%
No Change 32.45%
RATES & SALARIES
Capital Costs 6.2%
Labour Costs 7.4%
41.5% 47.9%
14% 8.9%
44.5% 43.2%
Permanent Contract
Asia Pacific
n Singapore, global companies are turning to manpower
suppliers because they have strong processes and quality
controls.. Competition from smaller players who have
lower overheads has meant that quality may be being
compromised where price is the major factor. We believe
this to be one of the factors in project delays. However,
training has been made a priority, and will be focused
primarily on health and safety, high-technology systems,
and methodologies.
Project impacts
Due to the Singapore governments changing of manpower/
immigration regulations, the ratio for hiring locals to an
expat is now even higher. This has repercussions for the
long-term employment strategies of companies engaged
in construction, who rely heavily on temporary hiring and
foreign nationals. This could see some companies exploring
other locations for projects already in the construction and
commissioning stages.
These trends heighten the risk of projects running over
budget. Failure to attract the required skill-sets risk
missing delivery dates, with timelines impacted further in
the form of cost overruns and late start-up and operational
revenues. We therefore anticipate some loosening of
local content requirements at certain stages of a project to
allow regional or expatriate personnel to be added to the
project workforce. Another option is to attract nationals
back from overseas locations.
In Malaysia, companies have deployed a variety of
channels to mitigate risk, including over-hiring, developing
a talent pipeline with graduate programs, or hiring short-
term contractors. Companies have now started to run
recruitment campaigns in a number of different countries
(those located in the Middle East in particular) to try
and attract expatriates. This trend is growing as more
companies adopt these methods to attract experienced
talent.
Local content requirements across certain locations in Asia
and the need to maintain lower costs in others have meant
the local candidate pool has almost reached saturation
point. As a result, the price for locals is reaching similar
levels to those that candidates in ASEAN markets are
being paid. Rates have not yet reached the levels seen in
western markets, but as demand continues to rise, parity
in terms of costs will likely follow.
Asia Pacific
Asia Pacifc
Asia Pacifc region is still expanding and its
demand for energy and resources is on the
increase. Especially countries like Indonesia with
250M population.
Current projects are on the increase and their
doesnt seem to be enough skilled labour.
There is currently no established global unique
skill measurement standards for each job role &
company sector.
(Local content policies are) restricting our ability to
bring in top technical management and transfer our
technology/competency/training to our workforce.
Due to shortage of skilled manpower, we should
consider and value experience from other industries
even it is not related to the oil and gas industry.
Regional Overview
A signifcant proportion of Australias east coast gas is
earmarked for export. Domestic gas supply is therefore
high on the agenda with medium-sized operators reaching
signifcant sale agreements with their larger counterparts.
Further domestic gas sales will be negotiated throughout
2014/2015 with exploration activity continuing in the
Cooper and Surat basins.
Similarly, momentum gathers for Australias shale potential
with a number of key international operators farming into
permits across Queensland and Western Australia. This
will see demand for drilling, exploration and geoscience
professionals remain steady.
Workforce impacts
Peak construction employment across the region was seen
from Q3 of 2013 and will continue through Q2 2014 before
ramping down from about Q3 onwards as the transition
from a construction phase to operations phase begin. This
shift will have a two-fold effect on the Australian oil and
gas labour market. The transition will see the construction
workforce over the second half of the year soften, while
the lack of solid greenfeld marked for Final Investment
Decision (FID) in the short term will result in the majority
of workers being unable to be absorbed by the local
market.
Concurrently, the Australian Workforce and Productivity
Agency (AWPA) predicts a 57% increase in oil and gas
operational jobs in Australia through 2018 with major
projects entering production. The skills shortages across
operations professionals are likely to mirror those faced
during the construction ramp up in 2012/2013 with
multiple projects all requiring professionals with the
same skill sets at the same time. Consequently, these
projects may be plagued by the same labour cost versus
productivity burdens felt during construction throughout
the operations phase.
Signifcant investments in training and a greater focus on
skills development from both industry and government
bodies will be seen in an effort to curb skill shortages and
meet operational demands, supplemented by continued
access to the global markets for skilled personnel. While
Australasia is a key player in the global LNG market,
there is the added pressure on companies to focus their
retention strategies, with Australia being seen as a key
talent pool of highly-skilled LNG professionals for future
developments in North America and East Africa.
In Papua New Guinea, the focus for LNG is shifting to
operations, meaning construction personnel will add to
the saturation of the Australia-based workforce in late
2014/2015 with Brisbane the key demobilisation point. Mid-
to-long-term investment with the recent Total and Interoil
deal, together with Talisman Energys Gas Aggregation
Program, will lead to new exploration and development of
the Elk and Antelope felds, indicating increased investor
confdence.
Permanent Contract
Increase 25.45%
Decrease 17.15%
No Change 57.4%
RATES & SALARIES
Capital Costs 15.5%
Labour Costs 25.9%
36.8% 42.6%
13% 17.2%
50.2% 40.2%
Permanent Contract
Australasia
Project impacts
Production deadlines are looming for the 15 LNG trains
currently in construction phase across Australasia, with the
majority due for completion throughout 2015 and 2016.
Maintaining the projected schedules has not come without
challenges for the major operators. The tail end of 2013
saw Chevrons Gorgon project announce yet another cost
blowout with further expected throughout 2014 taking total
forecasted CAPEX estimates to $60 Billion, 62% higher than
the original project budget.
High labour costs and low productivity in the construction
sector means construction cost per unit capacity in Australia
is among the highest in the world. The challenges arent
limited to the west coast, with all three CSG projects in
Queensland delivering announcements of budget overruns
and heightened speculation of delayed plans for Arrow LNG,
mainly due to high labour costs, continued productivity
challenges and uncertainties caused by the hype around the
North America shale boom.
Capturing the next phase of capital development projects
is critical. The likelihood of future investments in the
region is dependent on a number of external forces,
namely: increasing project competitiveness through the
strengthening US$ against the AU$; Henry Hub future gas
pricing; Australia LNG commercial linkages to the price of
oil; the Australian Governments proposed implementation
of a more effcient regulatory framework, and its associated
impacts on the regions oil and gas workforce.

The infuence that this melting pot of variables will have on
the regional outlook is set to transpire over the next 12 to 18
months, ideally with commitment to future greenfeld capital
development projects to bolster Australasias position as a
key player in the global oil and gas market.

Australasia
Australia
Media and society pushes white collar professional
degrees while the pursuit of blue collar trade
professional craftsmanship is demeaned as
substandard.
Not enough young talent capable of handling the
increased responsibilities as they move up. This is
a worry.
We are seeing mining staff migrate to oil and gas.
Regional Overview
Unlike other regions, Europe has seen little activity in
respect to major new project activity. Nevertheless,
workforce requirements have grown consistently over the
last 24 months, primarily due to the limited pool of available
talent (a trend that is refected globally).
The largest vertical is safety disciplines. Oil companies
and EPCs today are more risk assessed and safety focused
than ever before. The majority have made a commitment
to health, safety and the environment (HSE) as a core
value. This has ensured that demand for experienced HSE
professionals has remained buoyant.
Demand across the structural disciplines has also increased,
with structural designers and engineers, and subsea
engineers being highly sought-after. In addition, Liquifed
Natural Gas (LNG) has become a hot spot for recruitment
for oil companies, EPCs and consultancies alike.
Meanwhile, the UK governments commitment to
optimising reserves in the North Sea has seen a ramp-
up in commissioning, decommissioning and construction
activity on the continental shelf. Moving forward, there will
be bigger scopes of work in these areas as companies look
to maintain operational capability and extend the life of
ageing assets.
Much of the resultant demand is for project design
professionals. Despite the wider trend of off-shoring
fabrication to low-cost centres in Asia and the Far East,
design projects continue to be managed out of France,
Norway and the UK. Similarly, recruitment in corporate
disciplines remains a focus, given that three of the largest
oil and gas players globally have their headquarters in
Europe.
Workforce impacts
Much of Europes workforce requirement in the oil and
gas sector is being driven by advances in extraction
technologies, which have made a greater number of
deep water plays viable. The pool of professionals skilled
in subsea disciplines was already limited, but the recent
introduction of new wellhead technology has meant that
even experienced subsea engineers need to be up-skilled.
Technological progression has also been the key factor
in driving the upturn in LNG. It has ensured projects are
now less costly and much safer to develop, and many of
the projects underway currently would have been written
off in the past due to cost and HSE concerns. However,
the limited pool of talent combined with rising demand
for subsea and LNG professionals has driven a signifcant
increase in both permanent salaries and contractor rates.
Over the last couple of years, there has been a rise of about
20% in remuneration across these disciplines. Professionals
experienced in HSE can command even higher premiums.
Permanent Contract
Increase 42.35%
Decrease 2.8%
No Change 54.85%
RATES & SALARIES
Capital Costs 18.1%
Labour Costs 4.15%
36.1% 38.9%
11.1% 14.6%
52.8% 46.5%
Permanent Contract
Europe
Despite the on-going rise in the cost of labour, only the
oil majors are investing in internal training programmes.
The wider trend is for companies to bolster their existing
workforce with external experience as required. The main
concern is that the results of internal training programmes
take two years or more to flter through to the wider
workforce and, given the associated cost, it is much quicker
and easier to buy-in the disciplines required to deliver
projects.
Project impacts
The longer-term challenge for the oil and gas industry
is that workforce requirements tend to be treated as a
secondary consideration when projects are scoped. Labour
costs are relatively small when compared to the huge capital
expenditure required for raw materials such as steel.
Steady demand combined with the dearth in new project
activity in Europe means companies have continued to buy-
in the skill-sets required. On-going projects might experience
delays due to diffculties in attracting professionals with the
right skill-sets, but not to the extent that fnancial penalties
are incurred. As a result, the cost of labour continues to rise.
Another longer-term concern in respect of the skills
shortage will be the impact of increased activity in markets
such as Russia and Ukraine. Although the oil and gas
industry in these two countries already employs hundreds
of thousands of professionals drawn from the indigenous
population, technological advances and a need to become
more operator and production-focused will require them to
import more expertise.
Activity is building in Russia across the board as it prepares
to host the 2018 World Cup, and it is opening up to a
growing number of international players. Certainly, the larger
international oil and gas companies are establishing a bigger
footprint in what was 10 years ago a nationalised industry,
and the process has accelerated considerably since 2011,
with Russias ascension to the World Trade Organisation
(WTO) seeing it embrace a series of rules and commitments
to an open, transparent and non-discriminatory global
trading system.
Deploying foreign nationals into projects in Russia and the
Ukraine remains a complex and time-consuming undertaking.
However, the oil and gas industry in Europe must recognise
that the skills shortage could be exacerbated by increased
demand in emerging markets and that ferce competition for
resources has triggered numerous project delays and even
cancellations in market such as Australasia.
Europe
Europe
Fuel price continuing (to) increase is strongly
impacting on oil company recruitment policies
causing money loss in downstream.
Our organisation does not comprehend the loss
of experience due to retiring personnel and have
diffculty flling positions with suitable candidates.
In our type of business experience and wisdom are
critical to our success, unfortunately these qualities
must be personally gained and we struggle to fnd
candidates with the attitude and drive to try and
achieve this.
Insuffcient drive to have apprenticeships and train
younger people to fll roles. Too many want workers
with 10 years experience.
Permanent Contract
Increase 57.55%
Decrease 9.05%
No Change 33.4%
RATES & SALARIES
Capital Costs 3.15%
Labour Costs 3.15%
49.8% 51.2%
13.2% 10.8%
37% 38%
Permanent Contract
Regional Overview
2014 will continue in much the same vein of 2013 throughout
the Middle East region with a wide raft of major project
work underway and a number of large scale projects about
to be embarked upon. This will result in a continued high
demand for all disciplines across the engineering verticals.
The worldwide trend of high demand for Geology and
Geophysics disciplines looks set to continue.
Onshore LNG remains a core market with a large number
of projects ongoing. There is a steady rise in the number of
downstream requirements as the Middle East looks to meet
its own local energy demands. With over $200bn of post
FID projects currently in play across the Gulf Cooperation
Council (GCC) region workforce demand will continue to
fourish.
Iraq continues to be an area of substantial growth, while
a number of signifcant new projects in UAE means inter-
regional competition will become increasingly ferce. With
Qatar continuing its self-imposed moratorium on North
Field development, it will be business as usual. Construction
of the new $6.5bn Al-Karaana petrochemical complex is
underway, as is RasGas Barzan, possibly the worlds safest
project in terms of commitment for completion given that
it is critical to meeting the energy needs of Qatar in its
preparations for the World Cup. As such, demand for oil
and gas professionals will continue to be reasonably strong.
Workforce impacts
With a number of nationalisation programs in place across
the region, a strong focus will remain on the sourcing,
training, development and retention of national workforces.
In some areas, demographics make this a particularly
diffcult task, and there will continue to be large investments
made in training and development.
Increased competition in the EPC/PMC market from Asia in
particular, and the tight margins for such work, have meant
salaries have had to become more and more competitive.
This is presenting an issue for companies both in terms of
attracting new talent, and retaining existing talent. They
therefore have to become a little more creative in putting
together packages for attraction and retention.
However, the plethora of major project work elsewhere in
the world and the burgeoning shale market are increasing
competition for affordable talent. Sourcing candidates is
becoming that much more diffcult.
Middle East
Project impacts
The squeeze being put on rates through highly-competitive
tendering has meant that there are concerns regarding
the impact this will have on quality, safety and delivery.
It is diffcult to place a fgure on the impact that attrition
has on a project, but this is perhaps becoming one of the
key drivers in budgetary over-expenditure and project
delays. Recruitment Campaigns targeting mass hires
from a particular location have an even greater impact as
companies struggle to ensure they have enough affordable
experience to minimise impact in terms of project overruns
and subsequent loss of revenues.
National content policies also continue to have an impact.
Signifcant investment is therefore required in the training
and development of local content for the long term benefts
of the national oil companies. However, it is imperative that
this is implemented correctly.
With labour codes across the region proving incompatible
with some of the general trends within the oil and
gas communities in respect of standard remuneration
expectations, this also has an impact. Day rate payments
and rotational assignments not ftting within this structure
is another obstacle in attracting the right talent and
subsequently resulting in project overruns.
Middle East
Middle East
Most companies want people with experience,
they dont want to recruit staff and train them.
The industry has been facing the skills shortage for
years, yet it has managed to pull along. However,
this cant go on for ever. The industry has to take a
leading role in addressing this issue.
Pressure to hire/promote nationals who may not
have suffcient experience/expertise. Increased
demand for contractors/consultants to support
these personnel.
Graduate and apprentice programmes in place but
are not suffcient to replace skills or experience.
Industry view
David Doig, group CEO at OPITO*, the skills organisation for oil and
gas, examines the impact of the skills shortage and the need for more
collaborative action in response to the fndings of the H1 2014 Global Oil
& Gas Workforce Survey
The key to unpicking many of the problems we face is education. Get
things right in schools, colleges and universities and we will create a big
enough pool of people for the future. As it stands though, I believe that
the oil and gas sector has already gone beyond the skills shortage to a
skills crisis. As a result there is huge cost infation built into the industry.

Companies realise they dont have the right skills so they buy them in.
And in order to attract quality people they have to pay higher salaries,
golden hellos, golden handcuffs and generous ex pat packages. This
high level of remuneration is also creating a more mature workforce. If
you put signifcantly more money on the table people are naturally going
to stay longer before retiring. So its true to say there isnt as much young
blood coming into the business as needed.

The impact of these growing cost pressures is being felt all over the world
with projects from the North Sea to Australia being closely examined for
cost effectiveness and overall viability. And this is all in the context of a
positive business environment. If, and when, things slow down one of the
frst things that tends to be cut is the training budget. This of course only
goes to exacerbate the problem.
More collective action
What OPITO would like to see is more collective action. This happened
successfully in the North Sea with the Upstream Technician Training
Scheme. Running since 1999, the scheme is the oil and gas industrys
response to the need for a competent, stable and fexible technician
workforce to meet its current and future needs. Backed by the industry
and run by OPITO, it is one of the most successful modern apprenticeship
programmes of its kind providing the oil and gas industry with suitably
skilled, trained and highly motivated technicians.

This sort of collaboration tends to be the exception. It is hard enough to
develop interworking between companies on issues like safety let alone
training. Short term, insular thinking certainly wont solve the crisis and
more companies need to wake up to the fact cooperation on training is
badly needed.
However, this is the greatest industry in the world; its certainly the most
dynamic, and I am sure we will all rise to the challenge.
*OPITO is an industry-owned organisation aiming to improve safety standards, enhance the
talents of existing staff and remains committed to developing a safe and skilled sector. Visit:
www.opito.com
David Doig, group CEO at OPITO
Air Energi is the trusted supplier to
the oil and gas industry. With over 30
years experience in the sector our goal
is to become the recognised, foremost
provider of trusted expertise to the
international oil and gas industry.
The Air Energi Group has ventures in over thirty fve countries
across the globe and deploys engineering professionals in over
ffty countries. Our clients are driven by the need to reduce costs,
improve effciency of recruitment and to concentrate on delivering
major projects on time and to budget. Increasingly our clients want
to outsource the recruitment, pay rolling and logistical support for
a growing percentage of their workforce. Air Energi provides a
comprehensive range of services which allow us to deliver a total
personnel solution on any scale, at any point in your project life cycle
or feld development and at all your locations.
With offces in 35 locations worldwide, and through our company
values: Safe, knowledgeable, innovative, passionate, inclusive and
pragmatism, WE DELIVER, each and every time.
Our range of services include:
Talent Acquistion - The identifcation, mobilization and support
of technical consultants assigned to major oil and gas projects
worldwide.
Global Mobility Services - Tax and payroll, immigration, transport,
health, security, accommodation and on-going care.
Integrated Project Solutions - Fully equipped, multi-disciplined
teams for major oil and gas capital development projects. Air Energis
expertise and knowledge is increasingly being sought to develop and
deliver workforce solutions to a range of challenging situations.
Key Stats
3000 consultants currently assigned to major projects
Workforce 60% local/regional and 40% Western Ex-Pats
Present in 35 global locations
Experience in a total of 50 countries
Clients include ExxonMobil, ConocoPhillips, Shell & Total
EPC clients include Worley Parsons, Wood Group, AMEC,
Bechtel and KBR
Americas
Americas
Air Resources Americas LLC
6002 Rogerdale
Suite 340, Houston
Texas, 77072, USA
Tel: +1 281 983 3464
Fax: +1 281 983 3468
americas@airenergi.com

Asia Pacifc
APAC Region
Air Energi Group Singapore Pte Ltd
1 North Bridge Road
#06-03/04 High Street Centre
Singapore, 179094
Tel: +65 6511 1060
Fax: +65 6511 1050
asiapacifc@airenergi.com
Australasia
Australasia
Air Consulting Australia Pty Ltd
Level 8, 46 Edward Street
Brisbane, QLD, 4000
Australia
Tel: +61 (0)7 3056 0900
Fax: +61 (0)7 3112 2601
australia@airenergi.com
Caspian
Caspian Region/FSU
Air Energi Caspian LLP
6 offce, 4 foor, 113 Kulmanov st.
Atyrau, Kazakhstan 060011
Tel: +7 7122 306033
caspian@airenergi.com

UK, Europe & Africa
Europe
Air Resources Ltd
4th foor, Delphian House, Riverside
New Bailey Street, Manchester
M3 5FS United Kingdom
Tel: +44 (0)870 112 9444
europe@airenergi.com
Middle East
Middle East
Air Resources Qatar
3rd foor, Qatar First Investment Bank
Al Jazeera Finance Building, PO BOX 2953
C Ring Road, Doha, Qatar
Tel: +974 4462 0886
Fax: +974 4462 6675
middleeast@airenergi.com
OilCareers.com was launched in
1999, and has become the giant of
online recruitment within the Oil & Gas
industry. We provide job seekers with
an easy and effective way of searching
for a new job or career across all
specialisms in the Oil & Gas industry.
Our heritage, size and global reach, mean we are best placed to
match professionals to the right job, and provide recruiters with the
best value and a wide range of advertising opportunities to access
the largest global talent pool of job seekers.
OilCareers.com offers one of the industrys most visited websites
with over 1.6 million visits each month. The site already helps some
of the biggest and most reputable employers in the Oil and Gas
industries to advertise their vacancies.
We provide instant job advertising for the Oil and Gas industry to
both local and worldwide audiences, with offces serving the global
industry hubs of the North Sea, US, Canada, Middle East and
Australia, bringing employers, agencies and candidates together
effciently and confdentially.
With an unparalleled web presence, continuous online and offine
marketing, and a dedication to matching the best candidate to the
right job as easily and effectively as possible, OilCareers.com is a
vital resource for all companies recruiting in Oil & Gas.
Key Stats
OilCareers.com have over 1.6 million visits per month
Over 9.5 million page views
More than 1.5 million registered users
A CV database of over 930,000 searchable CVs
Over 18,000 new vacancies posted each month

United Kingdom
OilCareers.com
Unit 22, Abercrombie Court
Arnhall Business Park
Westhill, Aberdeenshire
AB32 6FE United Kingdom
Tel: + 44 01224 548080
United States
OilCareers.com Inc
PO Box 22768, Houston
Texas, 77227-278, USA
Tel: +1 713 520 4410
Dubai
OilCareers.com
P. O. Box 33817
Dubai, UAE
Tel: +971 4 4280618
Australia, Brisbane
OilCareers.com
Level 3,
130 Commercial Rd,
Teneriffe, Qld 4005
Australia
Tel: +61 07 3872 6000
Australia, Perth
OilCareers.com
464 Hay Street,
Subiaco, WA 6008,
Australia
Tel: +61 08 9489 5400
Canada
OilCareers.com
1333 8 St Sw
Calgary, Alberta
T2R 1M6, Canada
Tel: +1 403 209 3551
www.airenergi.com 17 Air Energi 2013
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2014 January - June

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