Salary guide (Oil Gas)

8/10/2019 Salary guide (Oil Gas)

http://slidepdf.com/reader/full/salary-guide-oil-gas 1/32

THE OIL & GAS

GLOBAL SALARYGUIDE 2012Global salaries and recruiting trends.



DISCIPLINE AREAS COVERED

24COUNTRIES WORLDWIDEREPRESENTED 53

RESPONDENTS WORK WITHA GLOBAL SUPER MAJOR 1,200+

RESPONDENTS AREEMPLOYERS IN THE INDUSTRY 5,400

PEOPLE RESPONDED TO THE

SURVEY 14,400+

SURVEY SUMMARY

THANK YOU

We would like to express our gratitude to all those organisations and individuals who participated in

the collection of data for this year’s survey. More than 14,000 responded , which is almost 30 per cent

up on last year and this has once again ensured that we can produce an informative document to helpsupport your business decisions.

Disclaimer: The Oil & Gas Global Salary Guide 2012 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.



1

CONTENTS

2 A global perspective

Section one - salary information

6 Overview and salaries by country

7 Salaries by discipline area

8 Salaries by company type

9 Contractor day rates by region

Section two - industry benefits

12 Overview of benefits

13 Benefits by company type

14 Benefits by region

Section three - industry employment

17 Staffing levels

18 Diversity and movement of workforce

20 Experience and tenure

22 Employment mix

Section four - economic outlook

26 Industry outlook

27 Most significant issues

From boom times in Australia and Brazil to unrest in North Africa, our report

on salaries once again displays the many trends, events and forces that shape

the complex world of how people are paid in the oil and gas industry. We are

often very aware of remuneration within our own regional industry (it is one

of those topics that impacts us all in some way), however very few of us have

a good handle on how remuneration changes as we move around the world.This is the endearing quality and attraction of this document and we are

pleased to say the main reason why it receives so much interest throughout

the industry.

In general the trend in remuneration for 2011 was up; driven on by a buoyant

oil price and most countries around the world seeking to explore for, or

extract the energy resources they need to advance their own economies.

Indeed it was a year that stood out from others in the breadth of geographic

coverage. Whilst South America and Asia Pacific continued to lead the way

in new investment, two of the traditional power houses of the industry, the

North Sea and the Gulf of Mexico, also came back on line in terms of hiring.

This added to an already busy market, where very few areas of the globe

were left untouched.

This wider participation was also reflected in those completing our survey,

both in their geographic coverage and their number. To have over 14,000

respondents this year was a tremendous number which exceeded all

expectations. This large response has allowed us to drill down into more

specific roles, disciplines and regions. In this regard individuals can more

clearly identify their own situation whilst at the same time we can ensure that

the figures we produce are an accurate portrayal of the market.

Whilst assessing our own individual package against the figures is an

emotive and often interesting activity, it is the movement of remuneration

and employment trends over the last three years that provide the most

fascinating insights. In general the market in 2010 reflected the tail end of the

global recession of the previous year and was further weighed down by the

oil disaster in the Gulf of Mexico. In 2011 we have seen these issues left behind

and the market regain most of those losses, particularly so when it comes

to permanent salary packages and benefits. Contractor rates are still below

the highs of 2008, and with the general drift towards permanent staffing

it remains to be seen whether they will return in the near future. Whilst the

markets have softened towards the end of the year in the face of intense

negative sentiment around Europe, the data shows an entrenched confidence

that should prevail through 2012 and beyond.

Last year’s Salary Guide was downloaded by over 150,000 people. With a

further 10,000 hard copies distributed at various industry exhibitions and

conferences, it is fast becoming the reference of choice for those wishing tocompare remuneration globally. This continues to be our driving ambition,

and we will continue to work hard in improving the content to ensure that it

remains as such.

There are numerous people to thank in the compilation of this document, not

least of which are the many industry professionals that took valuable time

to complete the survey. We would also like to thank those in our respective

teams at ‘Hays Oil & Gas’ and ‘Oil and Gas Job Search’ that spent many an

hour analysing the data and designing the format. Once again their hard

work and the time taken by those responding have combined to produce a

great reference document for our industry.

Matt Underhill Managing Director, Hays Oil & Gas

Duncan Freer Managing Director, Oil and Gas Job Search



OIL & GAS SALARY GUIDE 20122

A GLOBALPERSPECTIVE

PRE-SALT FIELDS, BRAZIL

The Brazilian government pursues

its ambitious plans to develop the

deep water pre-salt fields with

multi-billion dollar investments.

GULF OF MEXICO

The region sees a strong recovery in

employment following the Horizon disaster of

the year before.

NORTH SEA

Hiring returns to the region following

a difficult recession.

WESTERN CANADA

Buoyant oil prices bring oil sands

projects back on line and drives

up salaries.

WEST AFRICA

Further discoveries and a lack

of social disruption continue toserve the region well. Salaries

rise for both imported talent and

a growing body of local skills.



3

AUSTRALIA

Limited human capital,

multiple mega-projects

underway and a new

emerging Coal Seam

Gas industry drive

salaries to the top of

the global league table.

POLAND

Emerging shale market attracts

foreign multinationals to the many

opportunities on offer.

CHINA

Chinese operators extend their

activities overseas, whilst at home

they aggressively expand operations

to keep up with supplying the

countries mounting energy

requirements.

MIDDLE EAST

Iraq proves to be the major draw

card in the region for new projectsas the country starts to develop its

extensive oil reserves.




SECTION ONESALARY INFORMATION Permanent salaries rose 6.1% over the last 12 months.



5

S E C T I O N O N E -

S A L A R Y I N F O R M A T I O N

S E C T I O N T W O - I N D U S T R Y

B E N E F I T S

S E C T I O N T H R E E - I N D U S T R Y E M P L O Y M E N T

S E C T I O N F

O U R - E C O N O M I C O U T L O O K

Almost 50 per cent of respondents

experienced an increase of more

than 5 per cent to their salary

compared to just under 30 per centof respondents in 2011. A higher

number of respondents also expect

salaries to increase more than 10

per cent in the new year.

Increase more than 5%

Increase up to 5%

Remain static

Decrease


Increase between 5-10%

Increase up to 5%

Remain static

Decrease

CHANGES TO SALARIES IN THE LAST 12 MONTHS

EXPECTED SALARY CHANGE IN THE NEXT 12 MONTHS

2012

2011

2012

2011

49.5% 16.6% 29.7%

4.2%

29.4% 20.4% 39.7% 10.5%

32.4% 30% 20.9% 15.7%

21.6% 25.3% 28% 21.9%

1%

3.2%




SALARYSALARY INFORMATION

SALARIES

Algeria 40,600 89,200

Angola 48,400 107,700

Argentina 68,800 N/A

Australia 164,000 173,100Azerbaijan 40,400 139,200

Bahrain N/A 77,900

Brazil 119,600 106,700

Brunei 140,500 94,400

Canada 128,700 123,300

China 55,700 143,700

Colombia 69,000 122,600

Denmark 106,300 152,400

Egypt 35,300 132,300

France 92,100 118,400

Ghana 40,200 139,900

India 39,300 101,600

Indonesia 45,000 157,200

Iran 52,200 93,900

Iraq 36,900 131,000

Italy 68,400 95,800

Kazakhstan 39,700 128,500

Kuwait N/A 73,000

Libya 44,100 69,200

Malaysia 46,800 128,400

Mexico 43,600 117,300

Netherlands 138,500 N/A

New Zealand 116,500 112,400

Nigeria 45,600 123,200

Norway 180,300 122,800

Oman 68,000 80,300

Pakistan 31,600 51,300

Papua New Guinea 29,600 189,900

Philippines 37,100 111,300

Poland 61,000 129,300

Portugal 49,400 116,600

Qatar N/A 72,300

Romania 34,400 123,000

Russia 59,100 138,200

Saudi Arabia 102,900 67,100Singapore 79,700 99,300

South Africa 79,200 95,000

South Korea N/A 147,500

Spain 70,700 73,100

Sudan 29,200 79,400

Thailand 40,300 137,200

Trinidad and Tobago 65,300 162,400

Turkey 67,100 89,300

United Arab Emirates N/A 69,400

United Kingdom 87,100 80,900

United States of America 124,000 119,200

Venezuela 75,500 109,400

Vietnam 47,600 151,900

Yemen 30,000 75,100

The headline figure in this data is the average permanent

salary across the whole sample, which has risen this year

to $US80,458 from last year’s figure of $US75,813. This is a

significant increase for salaries across such a large sample and

reflects the general buoyancy of the market following the down

turn of 2008/9.

The year saw a flurry of activity from most corners of the globe

as countries sought to take advantage of a high oil price and

pushed through new developments, and rejuvenated the old.

The general well being was unique in comparison to previous

upturns both in its scale and global coverage, leaving very few

countries not playing some role in the rush for energy. This in

turn drove up vacancies, hiring and salaries.

The world was not without its share of economic worries,

however (and without wishing to tempt fate) even the

recent concerns in Europe have failed to impact the oil price

significantly. This more than any other factor ultimately

influences hiring intentions in the industry and its resilience ledto a project rich environment for vacancies across deep water

development, LNG and a range of non conventional plays.

Adding to this buoyant outlook was a number of significant

new field discoveries, and carbon capture also started to make

its way from government funded research to live commercial

projects.

The hotspots around the world which saw significant salary

rises included Brazil, Australia, China and Iraq. All were driven

by huge projects underway, which added further pressure to

the already stretched skill pool. Regionally, West Africa had a

good year, as did South East Asia, Northern Europe (including

Poland) and North America.When we break the figures down by local and imported we also

noted an increase in those countries that actively encourage

hiring local nationals. This took the form of significant increases

in local pay whilst the imported figure remained relatively

steady. Such examples included Saudi Arabia, Oman, Brazil and

Venezuela.

The list of those countries importing skills at a lower cost to the

local market rates have grown markedly since last year and now

includes the UK, Norway, Netherlands, Saudi Arabia, Brunei,

New Zealand, Canada, the United States and Brazil. All sought

to reduce their cost base by importing lower cost options from

overseas.

Perhaps more interestingly, are the countries that have seen

falling salaries. Many of these are in two regions, Northern

Africa and mainland Europe. Both are a reminder that whilst the

demand for energy remains high the industry is not immune to

what is going on in the world around us on a regional basis, be

it social conflict or economic pain.

For those looking from the outside in, the situation in Europe is

of most concern. At the time of writing, the situation continues

to weigh heavily on equity markets and trading conditions

within the wider global economy. The impact of this sentiment

has been felt already with some recruitment markets softeningin the last few months of 2011, and day rates struggling to

maintain previous levels.

ANNUAL SALARIESBY COUNTRY

Local average

annual salary

Imported average

annual salary



7




B E N E F I T S


S E C T I O N F


SALARY INFORMATION

SALARIES

ANNUAL SALARIESBY DISCIPLINE AREA

Operator/

TechnicianGraduate Intermediate Senior

Manager

Lead/Principal

VP/ Director

Business Development/ Commercial 55,700 38,400 51,800 60,700 94,700 188,400

Commissioning 61,300 N/A 68,500 76,800 116,200 N/A

Construction/ Installation 52,900 47,300 57,400 78,000 118,500 173,200

Downstream Operations Management 38,700 33,800 37,700 62,700 103,600 166,300Drilling 60,900 30,900 75,100 98,000 142,500 N/A

Electrical 55,900 28,600 47,400 67,800 98,400 136,000

Estimator/ Cost Engineer 28,000 29,600 39,000 67,100 107,900 N/A

Geoscience 56,700 35,100 58,700 109,000 140,100 159,100

HSE 56,900 35,200 58,700 79,600 95,900 128,100

Instrumentation, Controls & Automation 51,300 33,900 48,000 75,300 107,800 N/A

Logistics 53,900 31,000 42,500 72,500 82,400 99,000

Maintenance 47,100 N/A N/A 54,600 84,600 N/A

Marine/Naval 62,900 38,300 55,000 85,100 115,200 168,700

Mechanical 55,400 30,400 45,100 66,700 102,700 122,300

Piping 47,400 28,400 43,500 59,000 96,900 N/A

Process (chemical) 48,200 30,100 47,100 68,100 104,800 139,900

Production Management 51,300 31,800 59,300 67,500 107,700 260,700

Project Controls 41,200 42,400 49,000 78,600 112,000 134,100

QA/QC 51,000 37,000 48,700 68,300 94,400 128,900

Reservoir/ Petroleum Engineering 42,100 37,900 61,400 97,800 123,400 150,000

Structural 43,700 35,600 44,900 59,200 105,800 N/A

Subsea/ Pipelines 56,000 38,600 59,500 105,200 146,900 225,000

Supply Chain/ Procurement 40,500 29,500 48,600 58,200 98,500 180,000

Technical Safety 41,400 32,500 44,300 58,500 110,000 151,900

Undoubtedly we are delicately poised when it comes

to salaries within the industry for next year. Without a

European induced collapse in the global economy we willinevitably be faced with skill shortages in more than just a

few select locations. This will drive salaries up further, and

in this scenario we would expect a larger increase than

the rise we have seen in 2011. With this said, and when

considering the alternative, it would be a ‘nice problem to

have’.

How much difference a year makes in the oil and gas

industry is demonstrated by the rise in salaries within

drilling. Last year’s figures showed those in this sector of

the industry were sitting in the middle of the pack. This year

they are level pegging with subsea engineering as one of

the hotspots for salaries. With demand for onshore drilling

on non conventional sources at an all time high, and rig

utilisation offshore rising, labour demand in this sector is

obviously buoyant.

With drilling activity up, it is not unexpected that salaries for

others in the exploration and production field are also strong

this year. Geosciences and reservoir/petroleum engineersshowed good increases and production management and

logistics were also strong. Subsea engineering repeated its

increases of last year and project controls and construction

and installation proved that there was plenty of new projects

under construction.

Core engineering disciplines didn’t fare so well with

electrical, mechanical, structural and process engineers all

flat in comparison to last year. These core disciplines are

where most engineering professionals will start their careers,

and may suggest why headline salaries have not increased

beyond the levels seen.




SALARY INFORMATION

SALARIES

ANNUAL SALARIESBY COMPANY TYPE

Operator/

TechnicianGraduate Intermediate Senior

Manager

Lead/Principal

VP/ Director

Consultancy 44,600 32,700 46,800 76,000 120,300 146,800

Contractor 46,300 31,300 51,300 65,800 101,900 142,500

EPCM 49,500 36,400 51,700 79,400 120,600 172,300Equipment Manufacture and Supply 42,900 28,300 38,900 59,700 73,800 129,100

Global Super Major 60,200 48,300 70,300 93,100 129,400 222,800

Oil Field Services 49,300 31,500 51,300 69,200 89,400 155,200

Operator 51,000 48,700 72,300 97,400 149,200 221,400

In line with the increase in project work those working in an

EPCM company saw a rise in salary as did anyone working

for an operator. The most significant rises however came for

those with the least experience within any of the company

types, and reflected the increasing competition for entry

level talent compared to the year before. We also saw a rise

for the most experienced end of the market as companies

sought to put their increasing profits to good use, both in

rewarding that talent, and also in attracting new strategic

hires.

2012 $102,000

2011 $100,800

2012 $67,300

2011 $64,100

YEARLY SALARY CHANGES BY COMPANY TYPE

Consultancy

Contractor

EPCM

Equipment Manufacture

Global Super Major

Oil Field Services

Operator

and Supply

2012 $90,200

2011 $85,700

2012 $74,800

2011 $75,600

2012 $91,200

2011 $87,000

2012 $61,600

2011 $62,900

2012 $103,300

2011 $97,500

+5%

-1.1%

+4.6%

-2.2%

+1.1%

+4.8%

+5.6%

With the market on the increase, in general it was a year

in which most company types saw increases in salary

of around the 5 per cent mark. The exceptions to this

trend included both general contractors and equipment

manufacturers, both of which have a high level of localemployees (as opposed to imported talent). In this respect

both groups will be more aligned to local economies than

any global forces and may explain the lack of growth.

The third group to experience little movement in comparison

to last year is the global super majors. This may be the

effects of localisation/nationalisation drives within the

workforce, reducing average salaries. Indeed we have noted

an increase in local employees within this group from 47 percent last year to approaching 55 per cent this year.



9




B E N E F I T S


S E C T I O N F


Most contractor day rates have progressed through the year;however there were conflicting pressures on this market

making it a complex back drop in which to extract any trends.

In many ways employers were shifting their employment mix

away from contractors to a more permanent staff base. This

reduced the overall requirement for temporary employment

and followed the increasing confidence employers felt

throughout the year. Evidence of this can be clearly found

within our results on pages 22 and 23.

Countering this trend is a general increase in the practice

of using contractors in new regions and countries. The

flexibility to be found for both employers and employees is a

compelling driver for those seeking to match the cost base

with fluctuating revenues.

Those regions experiencing skill shortages are most prone

to hikes in contractor rates and it is no coincidence that both

Australia and Brazil have seen the highest increases since

last year. North Africa and Western Europe were relatively

subdued reflecting weaknesses in their local economies.

Whilst the exchange rate movements through the year canaccount for some of the rise in the Australasian figures it is

the local project led environment that is really driving the

numbers. The same can be said for South East Asia, which

continues to import a high level of expatriate skills. We also

noted the rise of rates in West Africa as the region continued

to expand.

CONTRACTOR DAY RATESBY REGION

Operator/

TechnicianIntermediate Senior

Manager

Lead/

Principal

VP/ Director

Northern Europe 410 440 670 840 1380

Western Europe 350 370 690 850 1100

Eastern Europe 260 290 380 500 900

CIS 300 350 630 730 830Middle East 220 320 360 540 820

North Africa 280 380 380 500 750

West Africa 310 330 480 660 910

East/South Africa 280 310 380 670 N/A

Southern Asia 190 220 270 380 560

South East Asia 210 260 440 720 1300

North East Asia 310 300 440 780 1130

Australasia 630 680 970 1250 1830

North America 410 430 690 810 1110

South America 300 320 550 610 830

Background for this section

Only where the sample size is large enough have we listed figures in these tables. Where not enough responses were received, entries are returned as N/A.

Permanent staff salaries are the figures returned by respondents as their base salary in US dollar equivalent figures (respondents were asked to convert their

salary into US dollars using xe.com at the time of responding) excluding one-off bonuses, pension, share options and other non-cash benefits, for those

working on a yearly payroll. Those on a daily payroll are extracted and listed separately.

The average salaries listed under local labour are representative of respondents based in their country of origin. Salaries listed under imported labour arerepresentative of those who are working in that country but originate from another.

Contractor rates are listed as US dollar equivalent day rates as listed by respondents.

Notes: EPCM - Engineering, procurement and construction management; HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.

SALARY INFORMATION

SALARIES




SECTION TWOINDUSTRY BENEFITSBenefits rise in the form of incentives.



11

Those benefits on the rise

reflected the increasing

confidence in the market and the

desire of companies to provide

an environment that incentivised

growth. Consequently bonuses,

commissions and share schemes

all made the top five increases.

5 LARGEST INCREASES

IN BENEFITS

2012 2011 Increase

Bonuses 4.78% 3.52% 1.27%

Pension 1.94% 1.44% 0.50%

Commission 0.78% 0.30% 0.48%

Hardship allowance 1.26% 0.80% 0.46%

Share scheme 0.87% 0.48% 0.39%

Value of the benefit as a

percentage of the overall package




OVERVIEW OF INDUSTRY BENEFITS

Last year, we forecast an increase in benefits for this year’s

survey and our data has confirmed this prediction as

correct. Somewhat surprisingly it was not the number of

respondents receiving benefits that increased but how much

they were getting. It appears that as companies have grownout of the recession then the increasing wealth has been

shared - but not with all.

In terms of numbers receiving benefits there were a few

notable exceptions from the downward trend. These were

share schemes, commissions and pensions, all of which rose

compared to last year’s figures. These rises followed a global

trend of wider company ownership within a company’s

employees, and more immediate returns for those tasked

with selling their products and services. In line with these

trends we saw once again bonuses were prevalent in terms

of the make-up of allowances and benefits overall.

Those allowances that dropped included health care,

home leave and housing allowance, which suggests fewer

experienced expatriates. We also noted a reduction in

overtime, a trend following the wider working population.

Whilst the number of people receiving benefits returned a

mixed bag of results in comparison to last year, the amount

each of those benefits was worth was in positive territory

across the board. Bonuses and commission payments led

the way as we would expect given the market conditions,

however a raft of other allowances also increased as more

cash was available to meet specific requirements. These

included allowances for meals, hardship, share schemes,

schooling and training.

SALARY

INFORMATION

Background: The bar chart shows two figures related to benefits that employees in the oil and gas industry receive. The first figure represents the percentage

of respondents that receive that particular benefit, i.e. 35% of respondents receive some sort of bonus. The second figure represents the value ofthat benefit stated as a percentage of their overall package for those that receive it, which in the case of bonuses is 13.7%.

INDUSTRY BENEFITS

OVERVIEW OF INDUSTRY BENEFITS

35% 13.7% 8.9% 8.8% 10% 11% 17.2% 11 .3% 28.8% 11.4% 17.6% 10.7% 1 7.8% 17.6% 15.6% 12.8% 8.5% 14.8% 7.2% 14.9% 14.1% 12.2% 7.3% 11 .9% 8.1 % 14% 10.9% 12.7% 14.8% 16.5% 40.2%

B o n u s e s

C o m m i s s i o n

T a x a s s i s t a n c e

P e n s i o n

H e a l t h p l a n

C a r / t r a n s p o r t / p e t r o l

H o u s i n g

H o m e l e a v e a l l o w a n c e / fl i g h t s

H a r d s h i p a l l o w a n c e

H a z a r d o u s / d a n g e r p a y

M e a l a l l o w a n c e

S h a r e s c h e m e

S c h o o l i n g

T r a i n i n g

O v e r t i m e

N o b e n e fi t s

Percentage that receive the benefit

Average percentage of their total package



13




B E N E F I T S


S E C T I O N F


Background: Graphs here show the top benefits by company type and the percentage of people who receive them.

INDUSTRY BENEFITS

COMPANY BENEFITS

41% 21% 22% 19% 17% 16% 35%

32% 21% 16% 17% 16% 17% 42%

33% 16% 21% 17% 17% 15% 42%

43% 23% 28% 18% 19% 17% 33%

TOP BENEFITS BY COMPANY TYPE

EPCM/CONTRACTOR GLOBAL SUPER MAJOR/OPERATOR

EQUIPMENT MANUFACTURER & SUPPLY OILFIELD SERVICES/CONSULTANCY

In terms of company type, operators and the

majors continued to distribute more benefits to

their workforce than any other group at just over

29.5 per cent of overall package.

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n



C a

r / t r a n s p o r t / p e t r o l

C a

r / t r a n s p o r t / p e t r o l

H o u s i n g

H o u s i n g

H o u s i n g

H o u s i n g

H o m e l e a v e

a l l o w a n c e / fl i g h t s

H o m e l e a v e


H o m e l e a v e



O v e r t i m e

O v e r t i m e

N o b e n e fi t s

N o b e n e fi t s

N o b e n e fi t s

N o b e n e fi t s




Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. CIS includes Russia and the former Soviet Republics.

INDUSTRY BENEFITS

REGIONAL BENEFITS

TOP BENEFITS BY REGION

AFRICA ASIA

AUSTRALASIA COMMONWEALTH OF INDEPENDENT STATES

On average, benefits received by those working in

Africa are valued at 34% of their total package.


Asia are valued at 36% of their total package.


Australasia are valued at 17% of their total package.


CIS are valued at 23% of their total package.

33% 24% 19% 21% 18% 19% 28%

38% 17% 14% 11% 8% 8% 35% 33% 13% 19% 13% 15% 13% 37%

42% 18% 27% 22% 23% 18% 25%

Across most geographic regions we saw an increase in the

value of the benefits paid, although most significantly in

Africa and Asia. Australasia, Russia & the CIS, and Europe

were also in positive territory. As has been the case in

recent years we have seen most of the increases coming

from developing nations, which is reflective of the desire of

companies in these regions to retain trained staff in the face

of increasing competition from overseas.

While both North and South American figures fell slightly, it

was the Middle East that saw the largest drop in the value of

the benefits in comparison to overall package. This was from

previous highs of 38 per cent the year before to just over 32

per cent. However there is some evidence to suggest that

this is more reflective of employers in that region shifting the

emphasis in remuneration towards higher base salaries and

away from allowances.

This relationship between benefits and base salary should

not be ignored when considering the relative make up of

employees’ remuneration. Whilst some regions continue to

place more emphasis on either base salary or benefits, we

have found that all regions are trending towards 72 per cent

base salary and 28 per cent benefits.

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

P e n s i o n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n

C a r / t r a n s

p o r t / p e t r o l



H o u s i n g

H o u s i n g

H o u s i n g

H o m e l e a v e


T r a i n i n g

N o b e n e fi t s

N o b e n e fi t s

N o b e n e fi t s

N o b e n e fi t s


H o m e l e a v e


O v e r t i m e

S c h o o l i n g

M e a

l a l l o w a n c e



15




B E N E F I T S


S E C T I O N F


INDUSTRY BENEFITS

REGIONAL BENEFITS

TOP BENEFITS BY REGION

EUROPE MIDDLE EAST

NORTH AMERICA SOUTH AMERICA


Europe are valued at 16% of their total package.

On average, benefits received by those working in the

Middle East are valued at 32% of their total package.


North America are valued at 21% of their total package.


South America are valued at 33% of their total package.

29% 21% 19% 14% 8% 8% 43%

36% 21% 32% 12% 8% 12% 30% 37% 15% 34% 22% 31% 12% 28%

38% 22% 21% 26% 23% 19% 25%

B o n u s e s

B o n u s e s

B o n u s e s

B o n u s e s

P e n s i o n

P e n s i o n

P e n s i o n

H e a l t h p l a n

H

e a l t h p l a n

H e a l t h p l a n

H e a l t h p l a n



C a r / t r a n s p

o r t / p e t r o l


H o u s i n g

H o m e l e a v e



O v e r t i m e

O v e r t i m e

N o b e n e fi t s

N o b e n e fi t s

N

o b e n e fi t s

N o b e n e fi t s


O v e r t i m e

H o u s i n g

T r a i n i n g




SECTION THREEINDUSTRY

EMPLOYMENTOver a fifth of all employers expect salaries to

increase by more than 10 per cent in the next year.



17




B E N E F I T S


S E C T I O N F


The confidence in the staffing markets at the point the

survey data was taken was particularly high, although it is

worth noting that data was taken in September and October

2011, before the world economy started to falter around

European concerns. Over a quarter of those surveyed

expected an increase in staffing levels by 10 per cent or

more, which is an unprecedented level of confidence sincethis survey first started. As 2011 came to a close, it is this

confidence that is most at risk from depressed sentiment

engulfing the media.

As mentioned earlier, the use of contractors has become

more widespread in comparison to the year before. The use

of expats continued to expand on the back of forecasted

growth last year, and once again the market appears to

believe it will grow again in 2012.

STAFFING LEVELS

CONFIDENCE THAT STAFFING LEVELS WILL

CHANGE IN THE NEXT 12 MONTHS

PERCENTAGE OF STAFF EMPLOYED ON A

TEMPORARY OR CONTRACT ASSIGNMENT

AREAS IN WHICH CONTRACTORS ARE

EMPLOYED IN OIL AND GAS

EXPECTATION THAT CONTRACTOR LEVELS

WILL CHANGE IN THE NEXT 12 MONTHS

PERCENTAGE OF WORKFORCE EMPLOYED

AS AN EXPAT

EXPECTATION THAT EXPAT LEVELS

WILL CHANGE IN THE NEXT 12 MONTHS



Increase up to 5%

Remain static

Decrease

More than 20%

Between 5-20%

0-5%

None

Increase

Remain the same

Decrease

Engineering

Geoscience

Drilling

Construction/Installation

Project controls

Always

Sometimes

Never

Increase

Remain the same

Decrease



Increase up to 5%

None

26.1%

25.3%23.3%

21%

4.3%

37.2%

29.6%

21.9%

11.3%

45.9%

37.8%

16.3%

34.9%

25.6%

20.6%

18.9%

49.6%

43.6%

6.8%

INDUSTRY EMPLOYMENT

STAFFING LEVELS

0 20 40 60 80 100




INDUSTRY EMPLOYMENT

DIVERSITY & MOVEMENT OF WORKFORCE

This year we have seen an increase in the number of women

working in the industry, however the pace of growth is not as

quick as most would like. The percentage this year has risen

to 7.8 per cent up from last year’s figure of 7.1 per cent. Sadly,

to achieve parity with the wider general workforce in terms of

gender diversity will take over 30 years at the current rate of

growth.

We have noted a small decrease in the average age of those

working in the industry from 36.5 down to 35.5 years old. This

is consistent with the rest of our data, which shows that while

there was a good level of new entries into the industry, many of

these people were experienced staff from other industries. This

has reduced the average level of experience in the industry;

however it has had only a marginal effect on age.

DIVERSITY OF STAFF

GENDER IN OIL AND GAS WOMEN IN OIL AND GAS

Business development

Project controls

HSE

Supply chain

QA/QC

Construction/installation

Other

92.2% 7.8%

DEMOGRAPHICS

Male

Female

-

2 4

2 5 -

2 9

3 0 -

3 4

3 5 -

3 9

4 0 - 4 4

4 5 -

4 9

5 0 -

5 4

5 5 -

5 9

5 0 -

5 4

6

5 +

4.3%

5.6%

16.9%

27.1%

17.4%

21.9%

14%

17.2%

12.4%

8.9%

10.2%

7.9%

10.3%

5.5%

7.7%

3.1%

5.1%

1.1%

1.7%

Male Female

WORKING AT HOME OR ABROAD

57.3% 42.7%

2012

Home Abroad

16%

7.4%

9%

6.2%

4.8%5.4%

51.2%



19




B E N E F I T S


S E C T I O N F


INDUSTRY EMPLOYMENT

DIVERSITY & MOVEMENT OF WORKFORCE

MOVEMENT OF THE WORKFORCE

53.8% 46.2% 23.2% 76.8% 28.8% 71.2% 33.5% 66.5% 51.6% 48.4% 88.4% 11.6% 29.2% 70.8% 27.2% 72.8%

28.3% 71.7% 42.4% 57.6% 16.9% 83.1% 42.1% 57.9% 28.2% 71.8% 20.7% 79.3% 29.3% 70.7% 27.3% 72.7%

A u s t r a l a s i a

A s i a

A f r i c a

E u r o p e

C I S

M i d d l e E a s t

N o r t h A m e r i c a

S o u t h A m e r i c a

A u s t r a l a

s i a

A

s i a

A f r

i c a

E u r o

p e

C I S

M i d d l e E

a s t

N o r t h A m e r

i c a

S o u t h A m e r

i c a

IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

Imported labour

Local labour

Working overseas

Working in homecountry

Since the bottom of the recession in 2009 the number of

people working overseas in oil and gas has been steadily

increasing. This is consistent with employers having to search

further afield to find the skills they require. However, there is still

some way to go before the levels rise to those achieved in mid

2009 of over 45 per cent.

Last year we reported a quick exit from the downturn in

Australia, and a corresponding sharp increase in the number of

overseas candidates that came into the market to work on the

country’s burgeoning LNG projects. This trend has continued

with overseas workers now making up over 53 per cent of the

market. Europe was the only other region to follow this trend

as many of those imported skills previously retrenched through

the downturn returned to take up roles in a rejuvenated labour

market.

Elsewhere, trends showed a downwards movement regarding

imports as localisation and home grown skills development

programs started to come through. The regions showing the

most changes were Africa, CIS and South America. In general

this was accompanied by a reduction in age and experience

as much of this recruitment was taking place with those at the

entry level.

The graphs below represent the movement of candidates and

how specific region’s nationals are working locally or overseas.

So where we have seen the number of imports rise within the

busy Australian market, we have also seen a great number of

nationals returning home to take advantage of the high salaries.

This was going against the trend elsewhere that saw a general

drift overseas in search of better remuneration.




YEARS OF EXPERIENCE

INDUSTRY EMPLOYMENT

EXPERIENCE AND TENURE

FOR SPECIFIC DISCIPLINE AREAS

0-4 years

5-9 years

10-19 years

20+ years

36.3% 22.2% 20.9% 20.6%

Within last year’s survey we reported a sharp decrease in

those with less than four years experience in the industry.

This was consistent with a drop in recruitment for those

with little or no experience and was reflective of the fact

the industry was recovering from the recession of previous

years. In 2012, the pool of available talent has diminished

significantly and this has led many companies to employnew talent and seek to retrain.

As a result, the percentage of those with less than four

years experience has grown from 20 per cent of the total

workforce to just over 36 per cent. It is worth noting that in

2010 the figure was over 40 per cent when the market was

arguably at its peak so we still have a small way to go before

we hit that mark.

The picture becomes more pronounced when broken down

by job function, with Geo-science and Subsea/Pipelines

showing little change from last year, and in some cases

edging up slightly in terms of average experience. However

we have seen a reduction in construction/installation and

project controls. Both disciplines are clearly project led and

indicate that the project development space has attractedthe most newcomers. In our experience this is where

most skills can be transferred into oil and gas from other

industries.

Construction/Installation

Project controls

Geoscience

Subsea/Pipelines

0 20 40 60 80 100

OIL & GAS INDUSTRY



21




B E N E F I T S


S E C T I O N F


TIME IN CURRENT ROLE

INDUSTRY EMPLOYMENT

EXPERIENCE AND TENURE

Tracking last year’s figures, tenure has remained

static with just over 25 per cent of respondents

possessing less than one year’s experience in theircurrent role. Again this indicates a busy market

with a great deal of hiring activity taking place.

SOURCE OF NEW EMPLOYMENT

Less than 1 year

1-2 years

3-5 years

6-10 years

More than 10 years

2012

2011

26% 25% 28.7% 12% 8.3%

24.7% 23.8% 31.5% 11% 9%

N e w s

p a p e r

C o m p a n y w e b s i t e

O n l i n e j o b b o a r d

W o r d o f m

o u t h

H e a d h

u n t e d

A g e n c y

I n t e r n a l

M o v e

O t h e r

8.5% 13% 15.1% 21.3% 13.6% 13.6% 8.3% 6.6%




INDUSTRY EMPLOYMENT

EMPLOYMENT MIX

Aside from the equipment manufacturers, the year saw a

sharp rise in permanent staff as a percentage of the overall

workforce. This trend continued year-on-year as companies

sought to build up their core skills in a buoyant market.

The increase in permanent staff was in some cases at the

expense of temporary staff. However it should be noted that

this does not signify a drop in contractor numbers, only a

reduction in their share of the total employed.

Contracting companies and consultancies appear to have

been most bullish, making a strong rebound on the back of

a buoyant project market. Correspondingly there was less

of a fall in the use of temporary contractors within these

employers as they coped with extra workload.

Equipment manufacturers have reduced overall staffing

levels and may be feeling the effects of the recent economic

turmoil somewhat earlier in the project cycle than other

companies.

Should this trend flow through to other parts of the industry,

we would expect the use of contractors to rise in responseto uncertainty around the general economy.

EMPLOYMENT MIX BY COMPANY TYPE

GLOBAL SUPER MAJOR OPERATORS

0 20 40 60 80 100

Permanent

Permanent / part-time

Contracted direct

Contracted through agency

PERCENTAGE CHANGE FROM 2011 TO 2012

Global Super Major

Operators

EPCM

Equipment manufacturers & Suppliers

Oil Field Services

Consultancy

Contractors

7.5%

0.7%

-3.3%

-4.9%

5.2%

0.2%

-0.2%

-5.2%



23




B E N E F I T S


S E C T I O N F


INDUSTRY EMPLOYMENT

EMPLOYMENT MIX

“the year saw

a sharp rise inpermanent staff

as a percentage

of the overall

workforce”

EPCM EQUIPMENT MANUFACTURER & SUPPLIER

OIL FIELD SERVICES CONSULTANCY

CONTRACTOR

8.6%

0.1%

-3.8%

-4.9%

-8%

-1.7%

1.4%

8.3% 7.3%

0.5%

-3.9%

-3.9%

-0.8%

1.3%

0.6%

-1.1.%

-6.8%

0.1%

0.6%

6.1%




SECTION FOURECONOMIC OUTLOOKIt was a good year for the Oil & Gas industry with

confidence being led by a robust oil price.



25




B E N E F I T S


S E C T I O N F


As the market continued to

heat up so did the concern for

skill shortages. This has grown

as a percentage of the overallsample from 28 per cent to over

30 per cent and now represents

the largest concern of those in

the industry.

Skills shortages

Economic instability

Environmental concerns

Safety regulations

Immigration/overseasvisa program

Other

Security/safety causedby social unrest

30.6%

29%

13.3%

10.1%

7.1%

8.3%

1.6%

EMPLOYER’S CONCERNS IN THE CURRENT EMPLOYMENT MARKET




ECONOMIC OUTLOOK

INDUSTRY OUTLOOK

Employer’s confidence in the current employment market

has seen a large increase in comparison to last year’s results,

with the ‘very positive’ share up to 26.7 per cent from last

year’s 9.7 per cent.

Whilst the majority of regions were experiencing solid

growth this time last year, the Gulf of Mexico and theNorth Sea markets were still shaking off the effects of the

recession, which consequently weighed down the overall

average. Since the start of 2011, those markets came on line

from a hiring perspective and this removed any negative

sentiment in the market. A huge 73.5 per cent of the market

is either positive or very positive. (Again it is worth noting

that data was taken in the 3rd quarter of 2011, before the

market experienced any negative sentiment.)

With regards to where individuals believe their operational

focus will be in 2012, the Middle East again leads the way,

although the percentage is down slightly in comparison to

last year’s figures. A number of other regions followed this

trend with only the North American and European markets

showing an increase. This appears to be in line with the

comments in previous sections regarding the pick up in

activity in the Gulf of Mexico and the North Sea.

EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

EMPLOYER’S GEOGRAPHICAL FOCUS OVER NEXT 12 MONTHS OUTSIDE OF THEIR OWN REGIONAL AREA

Extremely positive

Positive

Neutral

Negative

2012

2011

26%

24.7%

C e n t r a l A s i a

E a s t A s i a

A u s t

r a l a s i a

M i d d l e E a s t

N o r t h A m e r i c a

S o u t h A m e r i c a

A f r i c a

10.7%

26.7% 5.7%46.8% 20.8%

9.7% 45.1% 33.4% 11.8%

11.7% 10% 7.1% 10.2% 20.8% 8% 8% 13.5%

E a s t e r n a n d

C o n t i n e n t a l E

u r o p e

U K a n d N o

r t h e r n

E

u r o p e



27




B E N E F I T S


S E C T I O N F


EMPLOYER’S CONCERNS IN THE CURRENT EMPLOYMENT MARKET

ECONOMIC OUTLOOK

MOST SIGNIFICANT ISSUES

As the market continued to heat up so did the concern

for skill shortages. This has grown as a percentage of the

overall sample from 28 per cent to over 30 per cent and now

represents the largest concern of those in the industry. This

is being felt most acutely in Australia and South America,

the two hotspots in the world where local resources are

most stretched. North America and Europe are following

close behind.

Not surprisingly economic stability is also a concern at 29

per cent. It is only in Australasia with its booming market

where this appears to be of lesser concern.

Moving the other way and slowly diminishing from people’s

focus is environmental and safety concerns. We can only

assume, as time passes by so does the memory of the oil

spill in the Gulf, and the issues surrounding the cause of that

event attract less attention.

This year we have included a new response which we havesought to gain an insight into, namely social unrest. As

expected, we saw spikes in concern in both Africa and the

Middle East. A comparison of data on this issue will make for

interesting reading in subsequent years.

All

Africa

Asia

Australasia

CIS

Europe

Middle East

North America

South America

0 20 40 60 80 100

Skills shortages

Economic instability

Environmental concerns

Safety regulations

Immigration/overseasvisa program

Other

Security/safety causedby social unrest




COUNTRIES WORLDWIDE

32

OFFICES WORLDWIDE 257

CONSULTANTS WORLDWIDE 7,620

PERMANENT CANDIDATESPLACED LAST YEAR 60,000

ABOUT HAYS

PEOPLE PLACED INTO

TEMPORARY ASSIGNMENTS

LAST YEAR 190,000

We are leading global experts in qualified, professional and skilled recruitment. Last

year our experts placed around 60,000 candidates into permanent jobs and around190,000 people into temporary assignments.

We employ 7,620 staff operating from 257 offices in 32 countries across 20

specialisms. We have market-leading positions in the UK, Asia Pacific, Continental

Europe and Latin America.



29

© 2012 Copyright Oil and Gas Jobsearch.com Limited :: Part of The Jobsearch Group



United Kingdom

Aberdeen

T: +44 12 2459 2870E: [email protected]

London


Russia

MoscowT: + 7 495 228 2208

E: [email protected]

Poland

Warsaw

T: +48 22 584 5650


Netherlands

Rotterdam


France

ParisT: +33 (0)1 42 99 16 60


Canada

Calgary

T: +1 403 269 4297


United States

Houston

T: +1 866 420 4297


Mexico

Mexico CityT: + 52 (55) 5249 2500


Colombia

Bogotá D.C.

T: +57 (1) 313 58 67


Brazil

Rio de Janeiro

T: +55 21 2430 6600


United Arab Emirates

Dubai


India

MumbaiT: +91 22 4248 2500


ChinaBeijing

T: +86 10 6598 9122


Shanghai

T: +86 21 2322 9600


Singapore

Singapore City

T: +65 6303 0152E: [email protected]

Australia

PerthT: +61 8 9254 4579


Melbourne

T: +61 3 9670 2066


Brisbane

T: +61 7 3231 2962


SydneyT: +61 2 9249 2299


Adelaide

T: +61 8 8212 5242


New Zealand

Wellington


United Kingdom

Manchester


Australia

PerthT: +61 404 162 491


United Arab EmiratesDubai

T: +971 4311 7175


oilandgasjobsearch.com

To find your local office please visit the Hays website: hays-oilgas.com

Documents

Salary guide (Oil Gas)