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Complete Oil & Gas Global Salary Guide 2010
Complete Oil & Gas Global Salary Guide 2010
Contents
04 Managing Director Reports 05 Regional Overview Section One - Salary Overview 07 Average annual salary for permanent staff by country 08 Average annual salary for contract staff by country 09 Average annual salary by experience 10 Overview 10 The last 12 months 10 The next 12 months Section Two - Industry Benefits 12 Typical benefits by company type 12 All 12 Consultancy 12 Contractor 12 EPCM 13 Equipment manufacturer & supplier 13 Global super major 13 Oil field services 13 Operators Section Three - Industry Employment 15 Experience & tenure 15 Years of experience 16 Time in current role 16 Employment by company type 17 Movement of workforce 17 Imported workforce v local workforce 17 Working overseas v working in home country 18 Staffing levels 18 In the next 12 months 19 Percentage of staff employed on temporary/contract assignment 20 Job seeking Section Four - Economic Outlook 22 Economic outlook
THANK YOU
We would like to express our gratitude to all those organisations who participated in the collection of data for this years survey. More than 7,000 people responded which was certainly overwhelming. This has ensured that we can produce an informative document to help support your business decisions.
Disclaimer: The Oil & Gas Global Salary Guide 2010 is representative of a value added service to our clients and candidates. Whilst every care is taken in the collection and compilation of data, the survey is interpretive 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.
SURVEY SUMMARY
When Hays requested oil and gas job searchs assistance with the salary survey, it was with a great deal of excitement that we accepted the challenge. We knew that we had access to a wide enough selection of oil and gas professionals to make the survey a success, and this has indeed proved to be the case. The last 12 months has seen a significant amount of uncertainty in the industry. Not surprisingly the feedback from our customers, particularly job seekers was that the site was a life line to many in such a difficult year. Being in touch with the industry globally was seen as essential and these same users contributed massively to the survey by submitting their responses in the thousands. The level of interest generated by the survey has been phenomenal and the data generated provides a true snapshot of the state of the industry at the start of a new decade. Despite the doom and gloom of most of 2009, towards the latter half of the year we experienced a renewed optimism amongst clients which translated into more jobs on the website. The results of the survey very much back this up and every indication is that this trend is set to continue. Finally Id like to thank those who contributed to the survey. This has certainly helped Hays and oilandgasjobsearch.com deliver such an informative document. We wish you all the best for a very successful 2010. Duncan Freer, Managing Director, Oil and Gas Job Search
Regional overview
A GLOBAL PERSPECTIVE
Confidence is returning 43.6 per cent describe their confidence in the current employment market as positive.
The past 18 months saw one of the biggest down turns the industry has known but the beginning of a steady recovery is now taking place. The results of our global oil and gas salary survey reveal a somewhat cautious outlook with more than one third of respondents indicating they believe the recovery will take more than 12 months. Despite this, confidence is returning 43.6 per cent describe their confidence in the current employment market as positive. While some salaries have decreased in comparison with the rates of 07/08, they have now levelled out and most working in this industry remain extremely well paid in comparison to those in other industries. The overall average salary is a little over $75,000* (based on annual salaries of all permanent staff). Australians working at home are at the top of the ladder, averaging more than $138,000 a year while salaries for locally based staff in Kazakhstan are propping up the table. For those working abroad, expat packages are not what they were a few years ago. This said, contract rates are averaging more than $700 per day. Norway and the USA are paying some of the highest rates, with contractors earning more than $900 per day. In terms of the best paid discipline areas, subsea/pipeline leads the way with higher than average salaries across all levels of experience. Production Management and Geoscience are also highly paid areas. While average salaries by company type were fairly evenly spread, ranging between $78,000 and $87,000, the one exception is equipment manufacturers & suppliers, averaging less than $65,000. this year is firmly on natural gas with some major developments on the drawing board. Hotspots There is high demand for Exploitation, Production and Reservoir Engineers as operators are undertaking economic evaluations of existing assets. There is a growing need for knowledge of shale gas plays, as well as a number of heavy oil and oilsands projects coming on line. This is creating demand for Facility Engineers, Power Engineers, Steam Chiefs, Maintenance Coordinators, Control System specialists, Process Engineers and Electricians to pipe fitters.
South America
The current market is placing a great deal of strain on retention of senior executives with pressure on two fronts. Firstly from competing industries such as mining and civil/heavy construction as they consider oil and gas professionals to be accomplished, well trained and used to dealing with sizable budgets. Secondly is the trend to succession plan expatriate executives out of leadership positions in multinational companies and replace with suitable local talent. Both trends ensure that competition for locally bred talent in South America remains significant. Hotspots Geologists, Geophysicists, Equipment/Drilling Specialists, are being targeted with continual salary increases. Employers are also investing in training and providing housing assistance and other benefits as an incentive. Candidates fluent in English will be in high demand given the massive presence of international/foreign firms and the global market.
Asia
Hiring intentions are very positive and employers have indicated an increase in vacancies across the board. We expect this to continue for at least the first half of the year. Since a large percentage of these roles are to work on specific projects, the majority will be contract assignments. Theres also been an increase in the number of executive level positions such as Managing Directors and Regional Managers as international businesses expand their coverage in the region. Hotspots Engineers with subsea construction and installation experience are in high demand due to the number of new fields that are coming online this year. In order to secure these skills, employers are starting to increase salaries. They are also more willing to consider international candidates from regional territories. Project services candidates, specifically estimators, proposal engineers and cost engineers are also in demand.
Europe
The Oil and Gas market has started to shake off the negativity from last year and demand is picking up quickly. The return of market confidence, clear signs of the recession ending and the sustained improvement in the oil price has allowed many to push on with their planned projects. Hotspots Geoscience and Exploration Engineers, Health and Safety specialists as well as Mechanical, Structural, Electrical and Chemical Engineers remain in demand in many locations. Larger projects are already struggling to hire the numbers they require so there will be more opportunities for Engineers moving into the regions. There remains a solid demand in Aberdeen and London for senior level exploration Geophysicists and Reservoir Engineers with 10 to 15 years experience.
Australasia
Employers are expressing an intention to recruit more selectively and with a longer-term view than they have during the past two years. Not surprising given there is more than $200 billion of work due to come on line in Australias gas infrastructure over the next 12 months. This is set to re-energise the job market back to pre recession levels if not more so. We therefore anticipate a much stronger trend towards permanent recruitment this year. New vacancies are expected to be created in New Zealand in the coming months in response to both growth and the replacement of departing staff to new opportunities. We expect a strong increase in candidate movement both in the local market and to/from Australia. Hotspots Subsea Engineers, Development and Exploration Geologists, Petroleum/Reservoir Engineers and Geophysicists are all in high demand in this region. There is also significant demand for candidates with prior LNG experience, in particular Drilling Engineers, Construction Managers and Civil Engineers. Oil & Gas Salary Guide 2010 | 05
North America
With the price of oil hovering around the $75 bbl mark in the past six months, Canadian focused companies have begun to announce their Heavy Oil & SAGD projects are back on the table. However the spotlight
*All figures are quoted in US dollars.
Salary overview
Salaries
Country Local Labour Average annual salary Europe UK Norway Netherlands Russia Kazakhstan Azerbaijan UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran Libya Angola Algeria USA Canada Venezuela Brazil Argentina Vietnam Singapore Malaysia Korea Japan Indonesia India China Australia New Zealand
Notes: All figures are base salaries, quoted in US dollars.
Imported Labour Average annual salary 94,200 101,000 112,000 105,700 88,100 144,500 88,500 86,400 91,400 67,800 83,500 N/A 89,300 78,700 118,900 107,800 128,100 112,500 113,700 125,200 N/A N/A 102,900 131,000 144,100 N/A 136,300 77,800 102,900 133,700 112,700 Oil & Gas Salary Guide 2010 | 07
92,200 114,700 104,200 65,600 30,700 53,300 50,200 67,600 35,900 58,400 N/A 32,600 37,300 46,000 53,600 33,800 117,900 112,800 72,300 72,500 65,000 N/A 56,700 43,100 N/A N/A 32,000 50,000 51,600 138,100 99,700
Middle East
Africa
North America
South America
Asia
Australasia
Salary overview
Salaries
Country Local Labour Average annual salary Europe UK Norway Netherlands Russia Kazakhstan Azerbaijan UAE Saudi Arabia Qatar Oman Kuwait Iraq Iran Libya Angola Algeria USA Canada Venezuela Brazil Argentina Vietnam Singapore Malaysia Korea Japan Indonesia India China Australia New Zealand
Notes: All figures are base salaries, quoted in US dollars.
Imported Labour Average daily rate 630 850 720 560 290 500 300 210 N/A 230 N/A 200 230 320 280 320 820 790 410 610 N/A 320 280 520 N/A N/A 200 220 300 800 600 Average annual salary 134,900 226,900 210,300 203,600 191,500 202,500 123,900 103,700 166,300 183,200 125,700 178,500 159,000 188,000 169,100 166,300 220,800 206,700 154,000 176,000 N/A 163,500 175,800 160,200 201,500 84,400 203,200 166,200 189,800 204,000 182,700 Average daily rate 520 870 810 780 740 780 480 400 640 700 480 690 610 720 650 640 850 790 590 680 N/A 630 680 620 770 320 780 640 730 780 700
163,800 222,300 186,500 146,000 76,300 129,200 78,600 55,100 N/A 60,500 N/A 53,000 60,800 83,800 73,200 84,000 214,300 205,400 106,300 159,000 N/A 82,800 71,700 134,500 N/A N/A 51,900 58,400 78,600 207,400 155,300
Middle East
Africa
North America
South America
Asia
Australasia
Salary overview
Salaries
Years of experience 0 to 4 Discipline area Business development Construction/installation Downstream operations management Drilling Electrical Estimating/cost engineering Geoscience HSE Logistics Marine/Naval Mechanical Piping Process Production management Project controls QA/QC Reservoir/petroleum engineering Structural Subsea/pipelines Supply chain/procurement Technical safety Consultancy Contractor EPCM Equipment manufacturer/supplier Global Super Major Oil Field Services Operator 47,800 47,200 40,000 43,500 46,800 37,500 52,300 49,400 45,000 54,100 42,700 48,900 43,900 50,500 45,000 41,700 39,700 39,900 57,300 43,500 46,800 47,000 39,600 37,100 34,300 51,800 50,500 60,700 5 to 9 61,900 76,900 53,600 55,100 58,800 53,700 73,700 62,300 59,500 68,600 60,600 56,500 60,000 77,600 58,000 60,600 59,200 53,700 75,800 56,800 66,800 73,300 53,100 64,900 48,300 65,900 66,400 78,400 10 to 19 98,500 100,500 79,100 91,500 85,800 110,600 110,700 91,900 85,700 99,900 94,400 80,200 93,200 133,800 99,300 90,600 79,700 94,200 141,300 90,900 83,800 96,400 100,600 83,300 75,600 102,500 82,300 88,100 20 + 126,600 119,900 90,500 135,500 122,900 140,400 138,900 121,500 133,700 140,400 107,700 111,900 122,600 154,200 120,100 127,200 109,000 136,200 162,700 121,800 113,600 114,200 145,800 131,400 96,800 119,000 115,500 121,600
Company type
Notes: All figures are base salaries, quoted in US dollars. EPCM - Engineering, procurement and construction management; HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.
Salary overview
Salary trends
The last 12 months The recession of 2009 was clearly reflected in the fact that 12 per cent of respondents indicated their salaries were reduced over the last 12 months. Those most affected worked with consultancies and contractors, were in the 0 to 4 years experience bracket and had been in their current role for less than one year. Whilst the majority of employers preferred to keep salaries static (44%), there were some signs of market improvement with an equal number of employees receiving an increase (16% + 28%). Of those that received an increase of more than 5 per cent over half were permanently employed and have been in their current role for 3 to 5 years. The next 12 months A more positive trend is appearing in the forecasted salaries returned by employers for 2010 with two thirds expecting to increase salaries, and very few expecting any decrease. Those working within oil field services could be the big winners with many employers in this area indicating they expect salaries to increase by more than 10 per cent. Retention of key staff through careful salary management is likely to become a prominent issue for employers this year. Background Only employers were asked to provide their intentions with regard to salaries in the next 12 months, whereas the figures for the previous 12 months were taken from the employees experience.
Salary trends
In the last 12 months has your salary:
28%
12%
Reduced 44% Remained static Risen less than 5% Risen more than 5%
16%
4% 19%
28%
Decrease 23% Remain static Increase up to 5% Increase more than 5% but less than 10% Increase more than 10%
26%
Industry benefits
Typical benefits
By company type All company types returned consistent results in terms of those receiving health care and bonuses. When comparing with the industry average (All) those working with a Global Super Major receive the most benefits, where results were higher for all benefit types except commissions. It is not surprising that only 25 per cent of those working with an equipment manufacturer and supplier receive home leave allowance/flights and that this is much lower than the industry average of 40 per cent. Share schemes are still relatively underutilised in comparison to other industries as is the use of monthly commissions. On average, one quarter of respondents received no benefits over their base and statutory pay. Those working for a consultancy firm were the worst off in this regard with nearly 40 per cent receiving no benefits. This said just less than one fifth of respondents working for a global super major, an operator or EPCM stated they receive no benefits above statutory requirements. With the market improving, competition for the best talent will only increase. Many companies will likely use any number of these benefits to attract and retain the staff in addition to the base salary. The results of our next survey will therefore be eagerly awaited providing a valuable comparison to these figures.
Benefits
Do you receive any benefits?
All
Consultancy
0%
0%
Contractor
EPCM
0%
0%
40%
40%
60%
60%
50%
50%
30%
30%
20%
20%
10%
No benefits Tax assistance Pension Bonuses Commission Health plan Car/transport Housing Home leave allowance/flights Hardship allowance Share scheme Schooling Other/s
10%
Other benefits
No benefits
Industry benefits
Tax assistance
Pension
Bonuses
Commission
Health plan
Car/transport
Share scheme
Schooling
Other benefits noted include mobile phone, laptop, petrol/parking, meals, overtime, additional annual leave, hazardous/danger pay and training.
Other/s
No benefits Tax assistance Pension Bonuses Commission Health plan Car/transport Housing Home leave allowance/flights Hardship allowance Share scheme Schooling Other/s
Tax assistance
Pension
Bonuses
Commission
Health plan
Car/transport
Share scheme
Schooling
Other/s
0% 40%
Operators
0%
40%
60%
60%
50%
50%
30%
30%
20%
20%
10%
No benefits
10%
0%
0%
Benefits
Industry employment
40.6%
22.8%
15.6%
Subsea/pipelines
Geoscience
8.3%
54.5%
55.2%
21.5%
22.9%
Reservoir/petroleum engineering
Estimating/cost engineering
19.9% 27.6%
23.7% 30.3%
Construction/installation
Mechanical
Salary overview
12.1%
Less than 1 year 27.3% 1 - 2 years 3 - 5 years 6 - 10 years 28.3% More than 10 years
Global Super Major Operators EPCM Equipment manufacturer & supplier Oil Field Services Consultancy
Contractors
0%
20%
40%
60%
80%
100%
Industry employment
Movement of workforce
Imported workforce Results of the survey indicate North America uses predominantly a locally bred workforce, with very few imports compared to other regions. The Middle East and Africa are at the other end of the spectrum importing the majority of their workforce from overseas. Background Imported workforce shows the makeup of the workforce by region, comparing those working in their country of origin against those who originated from elsewhere. Working overseas The second chart below shows how those from Australasia and Europe continue to seek experience internationally, with significant numbers approaching 50 per cent working overseas. Conversely, those from Africa (81%) and the Middle East (72%) mostly remain at home. Background Working overseas shows the regions where respondents originate from, comparing those who are working locally against those that are working overseas.
Movement of workforce
Imported workforce versus local workforce
100%
80%
60%
40%
20%
0%
100%
80%
60%
40%
20%
0%
Australasia Europe Asia Africa Russia North America South America Middle East
Industry employment
Staffing levels
In the next 12 months Just over half of employers have indicated they expect staffing levels to increase this year which is positive news for those currently looking for employment. From analysing the data further we see this is particularly the case in the Middle East and Africa. There is still a level of uncertainty in the market and employers will take a cautious approach to hiring this year. One third of employers have indicated they will not make any changes to their staffing levels while some, albeit a minority are still managing the effect of the global recession and are set to decrease headcount in the next 12 months. Expat packages There is a reasonable proportion of the workforce currently employed on an expat package. As youd expect there is a high concentration in the Middle East. Results indicate that many expats are working within construction/installation, QA/QC and HSE. More than one third of employers indicated the percentage of those employed on an expat package will increase in the next 12 months and salaries are likely to increase slightly in this sector as market conditions improve.
Staffing levels
In the next 12 months, do you expect staffing levels to:
13.3%
12.5%
13.5%
Decrease 33.3% Remain static Increase up to 5% Increase more than 5% but less than 10% Increase greater than 10%
27.4%
24.2%
Nil Nil to 5% 17.6% 28.8% Above 5% but less than or equal to 10% Greater than 10%
36.9%
50.8%
Industry employment
Staffing levels
What percentage of your staff are employed on temporary / contract assignment?
31.8%
16.4%
23.2% Nil Nil to 5% Above 5% but less than or equal to 20% Greater than 20%
28.6%
How do you expect you expect this percentage to change in the next 12 months?
33.2% 46.2%
Engineering
Geoscience
Drilling
Project controls
N/A
0%
20%
40%
60%
80%
100%
Industry employment
Job seeking
Word of mouth continues to be the predominant method of finding work in the industry and unsurprisingly so. With the project led nature of the oil and gas employment market, it is often former colleagues that can best promote individuals skills and availability. Equally the data also shows that agencies and head hunting play a more prominent role for moves overseas, whilst at home traditional newspapers and internal company mechanisms are in greater use.
Job seeking
How did you find your current role?
25%
20%
15%
10%
5%
0%
If you are not working in your country of origin, how do you keep abreast of job opportunities at home?
0%
Internet
Other
Economic outlook
Economic outlook
Market recovery Whilst only seven per cent of those surveyed saw the recovery taking hold in the near term (within three months) there was undoubtedly a more positive mood through the latter half of the year. The majority of respondents believe the market will recover in less than 12 months which would suggest the second half of 2010. Employment market This optimism is yet to be fully realised within the employment market with half of respondents either neutral or negative toward the current situation. Business confidence will always lead an individuals assessment of the employment market, so this should come as no great surprise. Our own experience at the end of 2009 and the start of 2010 is that the market is picking up and confidence is higher than weve seen it since 2008. There is however still a good deal of slack to take up in available candidates, and 7 to 12 months may well be the time frame in which job seekers, once again gain the ascendancy. Geographic focus Somewhat surprisingly the Middle East appears a stand out in terms of employers focus for 2010. This said the region remains a significant part of the world market, still employing over half of the worlds oil and gas expatriates. As such it will always be near or close to the forefront of plans for many in the industry.
Economic outlook
In your opinion, how long will the market recovery take?
6.9%
35%
22.3%
Less than 3 months Between 3 & 6 months Between 7 & 12 months More than 12 months 35.8%
How would you describe your confidence in the current employment market?
6.5% 15.8%
Which geographic areas will be a key focus for your operations over the next 12 months?
0%
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