12 Salary Survey Highlights

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  • SPE Research [email protected]

    Society of Petroleum Engineers Richardson, Texas

    2012 SPE Membership Salary Survey Highlight Report - September 2012

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    SPE presents its annual salary survey for 2012 Invitations to participate in the Annual SPE Salary Survey were successfully sent to 59,332 professional members via e-mail on 13 July 2012. This year 7,117 members provided valid responses resulting in a 12% response rate. This sample of completed responses produces a margin of error of 1.05% at a 95% confidence level. Salary information and other data in the reports are entirely self-reported, as we rely on members to provide information to help us understand more about the condition of the industry. This years participants are based in 102 different countries and represent citizenship in 103 countries. Their employers are based in 95 countries, and 40 U.S states. In 2012, almost six out of ten respondents 58% were based in countries outside of the United States. The representation of international members reflects the increasing international growth and presence of SPE.

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    General Findings All compensation data presented in this Highlight Report is expressed in US dollars. Data collected in local currencies has been converted to US dollars (USD) using the exchange rate as of 15 August 2012, which is the effective date of this years data. Compensation in the petroleum industry continues to follow the growth trend of recent years in 2012, with an overall increase in total compensation of 9.3%, or an average self-reported income of USD 223,472 in 2012 compared USD 204,368 in 2011. Mean base pay increased from USD 148,301 in 2011 to USD 166,753 in 2012, an increase of 12.4%. Bonus and extra income remained steady at over USD 56,000 from 2011 to 2012. The percentage of workers in the industry reporting base pay increases drove the overall increase in compensation, with almost three quarters of participants (73.4%) reporting that their pay increased over last year. . A third of respondents (33%) indicated that they received a car allowance in 2012. The Middle East and Africa had the highest percentage of employees who reported receiving a car allowance at almost 60%. The average age of energy and petroleum professionals reported in the survey leveled at 43 years, which was the 2010 average, after a slight increase in 2011 to 44 years. Experience decreased slightly at an average of 18 years in 2012 from 19 years in 2011, possibly reflecting a younger workforce. The education level of participants was higher in this years sample, with 43% indicating they have beyond a Bachelors Degree. Three out of four professionals (75.0%) indicated that they are a citizen of the country in which they work in 2012 and North Americans were again most likely to work in their home countries.

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    Figure 1 SUMMARY OF RESULTS BY WORK REGION (All compensation data is expressed in US dollars.)

    Regional data includes only valid cases where respondent entered their base region. (n=Total valid cases)

    Total (n=7117)

    USA (n=2989)

    Africa (n=307)

    Oceania, Australia,

    New Zealand (n=343)

    Canada (n=514)

    Middle East

    (n=383)

    North Sea & North Atlantic (n=997)

    Northern & Central

    Asia (n=181)

    S. America,

    Caribbean, & Mexico (n=409)

    South Central & Eastern Europe (n=157)

    Southeast Asia

    (n=493)

    Base Pay

    Mean $166,753 $195,097 $116,550 $163,748 $176,030 $158,200 $190,899 $85,224 $91,853 $181,779 $96,001

    Median $126,000 $145,000 $70,000 $145,880 $146,630 $96,000 $150,000 $30,632 $54,250 $113,330 $44,352

    Other Compensation

    Mean $56,719 $65,238 $34,854 $66,061 $62,103 $48,956 $65,628 $29,719 $35,252 $62,854 $33,666

    Median $20,000 $29,000 $3,949 $31,260 $30,337 $12,000 $18,907 $3,600 $6,977 $18,218 $3,868

    Total Compensation

    Mean $223,472 $260,335 $151,404 $229,809 $238,133 $207,156 $256,527 $114,943 $127,106 $244,632 $129,667

    Median $159,000 $180,000 $83,000 $184,997 $188,647 $120,000 $190,757 $36,819 $66,750 $137,725 $52,648

    Average Base Pay Increase 6.4% 6.2% 6.7% 8.2% 6.0% 7.3% 5.7% 5.3% 7.0% 5.8% 7.2%

    % With Car Allowance 33.2% 24.2% 59.9% 24.6% 22.6% 59.3% 41.3% 33.1% 35.9% 43.3% 44.7%

    .

    Average Age 43 46 39 41 42 41 43 39 41 43 38

    Average Years of Experience 18 21 13 16 17 16 18 15 15 17 14

    % With Education Beyond Bachelors Degree 43.8% 32.2% 50.8% 41.1% 27.0% 45.7% 72.1% 71.3% 56.2% 76.4% 38.9%

    % Citizens of Work Region 74.9% 87.8% 61.9% 69.4% 84.8% 28.2% 64.7% 61.9% 70.7% 59.9% 59.6%

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    Figure 2

    Base Pay and Other Compensation by Work Region

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    Job Categories and Total Compensation

    Compensation in the top categories in most regions showed a leveling trend while lower-level compensation showed increased representation of younger professionals. Reflected in this are gains in compensation among the lower-category professionals among the regions. Distribution and dispersion of compensation among the higher levels is reflected in overall lower median income, while the average total compensation among all professionals continues to increase. Top-level compensation in South America, Caribbean and Mexico, as well as Southeast Asia showed the strongest growth among regions from 2011 to 2012. Figure 3

    TOTAL COMPENSATION BY JOB CATEGORY AND WORK REGION

    United States Africa Australia/NZ Canada Middle East

    North Sea/ Atlantic

    Northern/ Central

    Asia S. Am./Carib./

    Mexico South Cent./ East. Europe

    Southeast Asia

    Executive/Top Management $290,897 $156,214 $152,175 $196,955 $166,487 $230,996 $300,706 $116,107 $278,193 $183,123

    Manager/Director $202,441 $196,161 $163,361 $170,675 $181,571 $220,934 $116,554 $133,665 $164,358 $129,764

    Supervisor $189,272 $91,417 $169,599 $176,737 $123,937 $184,609 $58,412 $73,085 $189,549 $85,894

    Professional/Individual Contributor $198,208 $124,908 $157,371 $171,191 $179,779 $159,976 $91,783 $78,365 $211,795 $103,850

    Technician/Specialist $120,576 $85,557 $140,089 $172,697 $170,822 $179,412 $61,925 $110,542 $117,119 $57,642

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    Figure 4

    *Table includes only cell values containing adequate valid cases to be statistically representative

    BASE PAY BY REGION OF COMPANY HEADQUARTERS AND JOB FUNCTION*

    Job Category United States

    of America Africa

    Oceania, Australia &

    New Zealand Canada Middle East North Sea & N. Atlantic

    North & Central Asia

    South America/Caribbean/Mexico

    South/Central/Eastern Europe SE Asia

    Grand Total

    College/University/Academic $136,872 $44,576 $312,600 $132,297 $126,157 $269,985 $28,943 $97,938 $43,420 $31,537 $145,402

    Computer or Information Technology $141,193 $69,194 $94,822 $146,825 $50,665 $225,954 $10,616 $71,919 $61,129 $3,775 $138,868

    Earth Science/Geology $201,012 $86,247 $190,020 $225,197 $174,916 $170,435 $99,319 $101,055 $289,346 $102,170 $168,430

    Engineering - Chemical/Chemistry $247,352 $117,561 $139,833 $131,645 $128,404 $148,769 $27,604 $94,419 $204,715 $38,962 $152,470

    Engineering - Civil/Construction/Facilities $193,468 $346,016 $236,667 $161,798 $121,523 $135,828 $253,000 $58,221 $115,113 $63,252 $173,001

    Engineering - Completions $197,739 $82,073 $162,340 $226,221 $194,093 $247,251 $55,568 $86,227 $143,868 $103,735 $183,205

    Engineering - Drilling $212,123 $123,010 $155,182 $165,463 $182,334 $159,947 $108,971 $92,853 $139,755 $108,140 $164,930

    Engineering - Health/Safety/Environment $173,938 $38,566 $121,200 $175,057 $318,314 $113,239 * $44,105 $139,835 $85,274 $142,375

    Engineering - Other or Combination of Above $207,146 $133,401 $153,654 $203,951 $144,541 $207,379 $77,254 $105,167 $178,947 $100,818 $180,579

    Engineering - Production $194,481 $104,553 $164,089 $163,850 $149,319 $178,445 $77,670 $76,867 $222,517 $94,531 $160,407

    Engineering - Reservoir $187,780 $115,107 $163,020 $159,510 $119,896 $189,298 $45,022 $77,027 $161,377 $93,818 $157,626

    Finance or Administration $155,301 $1,270 $197,755 $160,339 $74,444 $197,098 $63,025 $86,675 $329,577 $65,634 $157,018

    Geophysics/Petrophysics/ Physics $200,039 $120,126 $146,356 $227,545 $105,701 $215,089 $61,674 $85,772 $130,883 $81,948 $160,460

    Non-Engineering Technical $212,122 $102,757 $153,158 $168,816 $189,531 $174,486 $193,815 $11,572 $2,390 $87,360 $181,358

    Other or Combination of Above $176,410 $140,405 $147,931 $160,714 $221,094 $239,995 $228,834 $112,546 $194,314 $140,752 $178,655

    Professional Training $142,202 $161,578 * * $38,145 $197,974 $224,100 * * $209,858 $158,087

    Research $166,202 $112,593 $276,547 $124,072 $120,230 $177,282 $49,133 $70,735 $24,040 $72,660 $149,474

    Sales or Marketing $191,940 $88,810 $161,880 $168,561 $143,251 $211,903 $73,757 $187,302 $190,958 $123,116 $176,378

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    The Impact of Gender Women represented a higher proportion of respondents in the 2012 study, totaling 11.3% of participants. Females continue to be about 3% more likely to experience positive salary growth over the previous year than their male colleagues. Professionals of both genders were much more likely to have remained stable than experience negative salary changes than in 2011. Figure 5

    Members Change in Salary since July 2011 by Gender

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    Experience Level and Compensation Experience continues to be a strong indicator of compensation at all levels. In overall compensation, bonuses have decreased over the past year as a percentage of overall compensation, while base salaries have seen an increase over the past year. The overall trend remains consistent between both genders, although women in the industry were less likely to experience a decrease in compensation compared to their male colleagues. Figure 6

    Cash Compensation by Position and Experience

    Female Male

    Executive/Top Management

    Manager/ Director Professional Supervisor

    Technician/Specialist

    Executive/Top Management

    Manager/Director Professional Supervisor

    Technician/Specialist

    Average Years of Experience 22.3 19.9 8.9 15.4 14.6 28.8 24.5 14.8 19.4 14.5

    Number of Records 17 95 503 115 69 483 1522 2711 1274 327

    Base Pay $192,749 $177,443 $155,450 $127,540 $102,819 $221,607 $186,651 $160,804 $161,710 $146,595

    Other Cash $45,467 $48,100 $52,204 $51,062 $42,476 $62,346 $61,967 $57,144 $51,794 $46,482

    Total Cash $228,216 $215,543 $207,653 $178,602 $165,294 $283,954 $248,618 $217,948 $213,504 $193,077

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    How to Learn More This report represents a sample of current compensation in the industry. Presentation of every possible combination of the many jobs, geographies, and employer types and an analysis of the data dispersion in all of the compensation elements included are not possible in this summary; however detailed reports are available through the SPE Bookstore at www.spe.org/store beginning in late November 2012. SPE will make detailed summary reports available for download, in .pdf file format containing charts and descriptive statistics of trends, through the SPE Bookstore at a USD 50 member price and USD 125 non-member price. Data tables, containing the raw data from the survey responses for those who prefer to do additional analysis, will be made available for download through the bookstore as well, to provide the opportunity for individual analysis and localization of data. Pricing for access to data for analysis will be USD 225 for SPE members and USD 425 for non-members, also available in late November 2012. In addition to our annual reports, SPE is making available for download, beginning in late November 2012, a historical summary of SPE Salary Survey Highlights dating back to the first survey in 1967. The SPE Salary survey became an annual study beginning in 1984, with previous editions having been conducted in alternate years. The archive document will include the highlights through 2010. Highlights of the two most current years are available on SPE.org. The archive .pdf document will be available through the SPE Bookstore at a price of USD 125 for SPE members and USD 325 for non-members. Inquiries regarding purchase may be addressed through the SPE Bookstore Website. Other questions regarding the survey can be addressed to [email protected]. Thank you for your interest in this important project and your continued support of SPE! The SPE Research Team