OIL & GAS GLOBAL SALARY GUIDE 2013 - Global salaries and recruiting trends.
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OIL & GAS GLOBAL SALARY GUIDE 2013 Global salaries and recruiting trends.
SURVEY SUMMARY
DISCIPLINE
AREAS COVERED
24
COUNTRIES WORLDWIDE
REPRESENTED
53
RESPONDENTS WORK WITH
A GLOBAL SUPER MAJOR
2,500+
8,200+
RESPONDENTS ARE
EMPLOYERS IN THE
INDUSTRY
PEOPLE RESPONDED
TO THE SURVEY
25,000+
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 25,000 responded, which is approximately
74 per cent up on last year and this has once again ensured that we can produce an informative
document to help support your business and employment decisions.
Disclaimer: The Oil & Gas Global Salary Guide 2013 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 the producers of this guide.
It is with great delight that we introduce this year’s global oil and gas salary
guide. This is the fourth year we have published the document and each year CONTENTS
we have seen an increase in the number of respondents taking their time to
give us such valuable information and insights into their world of work. This
year’s survey saw more than 25,000 professionals and skilled employees in 2 A global perspective
the oil and gas industry respond, giving us more than one million separate
pieces of information to collate into findings. As with previous years, it is the
trends and movements within the data that make for such interesting reading
Section one - salary information
– indeed every figure tells its own tale!
With so much data it can become a question of what to present and publish, 6 Overview and salaries by country
however, we have tried to stay true to the goals that we set ourselves when
first embarking on such a document. This was namely to produce some 7 Salaries by discipline area
meaningful data on how salaries and remuneration change as we move
around the world of work in the oil and gas industry. This is then 8 Salaries by company type
complemented with some informed insights as to what industry events and
activities are contributing to the outcomes. We hope you enjoy reading the 9 Contractor day rates by region
document, and more importantly it is of assistance to you in your
employment dealings.
2012 was a good year for many in the oil and gas world with an increase in Section two - industry benefits
salaries, benefits and conditions. The same cannot be said for too many other
industries and it would not be stretching the truth to state that more wealth 12 Overview of benefits
has been created in the oil and gas industry than any other over the last 12
months. With nearly every country around the world striving to secure its own 13 Benefits by company type
energy future, either through exploration, increased production or developing
infrastructure, demand for the oil and gas professional, in all its guises, was 14 Benefits by region
most definitely high.
Our headline figure for the average base salary has once again grown to now sit
at $87,300*, showing an 8.5 per cent increase on the previous year. Such an Section three - industry employment
increase now accounts for a 14 per cent rise in base salary in two years alone.
That is significant for an industry employing some five million people worldwide. 17 Staffing levels
There were numerous developments contributing to this rise through 2012, not 18 Diversity and movement of workforce
least of which was a proliferation of non-conventional field developments. This
was seen by many nations as the route to energy independence and saw a 20 Experience and tenure
wave of hiring. Indeed many countries eagerly embarked on this path only to
discover that the skills didn’t exist, at least not in their own country. This was 22 Employment mix
consequently, for some, their first steps onto the global recruitment market. The
other change that this sector saw was an expansion into cities/regions
previously untouched by the industry. The likes of Houston, Aberdeen and Perth
are still important, just not as important as they were, it would seem. Section four - economic outlook
There were some environmental challenges to overcome and for some 26 Industry outlook
countries or regions this was a bridge too far. (Development stalled and
salaries with it, trends that are easily spotted within our data). 27 Most significant issues
Despite the general upward trend there were headwinds to overcome. As the
year came to a close the oil price edged slowly lower, reflecting continued
negative sentiment around the general global economy, and the impact this
may have. Most roads led back to Europe in this regard and their continuing
debt issues weighed down consumer demand. This in turn impacted
manufacturing output, most notably in China. The fragile nature of this
scenario has dominated the economic backdrop, and appears likely to
continue well into 2013. This said, confidence from those taking this survey
has remained high and at least in the oil and gas world, forecasts are for
continued optimism, albeit guarded.
We would like to take this opportunity to thank all of those individuals that
gave up their valuable time to respond to this survey, once again allowing us
to produce such a valuable document. We would also like to thank those
people in our marketing departments for helping collate and design the guide.
Lastly, but by no means least, we would like to thank our consultants and staff
for their valuable insights which undoubtedly bring the document to life.
Matt Underhill, Managing Director, Hays Oil & Gas
Duncan Freer, Managing Director, Oil and Gas Job Search
*Respondents were asked to provide their base salary only in US dollars equivalent, converting
foreign currency into US dollars at the time of responding.
2013 Oil & Gas Salary Guide | 1
A GLOBAL
PERSPECTIVE NORTH SEA
The drain of talent to overseas
markets intensifies skill shortages
UNITED STATES
Energy self-sufficiency now in sight
for the US with extensive shale gas
developments
BRAZIL
A long awaited round of field
auctions announced, breathing
life back into the market
2 | 2013 Oil & Gas Salary Guide
IRAQ
Flurry of hiring as a range of new
mega-projects kick off
SOUTH KOREA
Korean ship yards seek to
monopolise vessel and rig
fabrication work
AUSTRALIA
Australia dominates
the LNG market with a
multitude of projects
under construction
EAST AFRICA
East Africa becomes the next big
focus for oil and gas majors
2013 Oil & Gas Salary Guide | 3
SECTION ONE
SALARY
INFORMATION
Permanent salaries rose 8.5% over the last 12 months.
SECTION ONE: SALARY INFORMATION
4 | 2013 Oil & Gas Salary Guide
With almost 50 per cent of those
responding experiencing an increase of
5 per cent or more to their salary, this was
the second consecutive year of significant
rises for the industry.
CHANGES TO SALARIES IN THE LAST 12 MONTHS
Increase Increase Remain Decrease
more than 5% up to 5% Static
3.7%
2013 49.7% 16.3% 30.3%
4.2%
2012 49.5% 16.6% 29.7%
EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS
Increase Increase Increase Remain Decrease
more than 10% between 5-10% up to 5% Static
1.1%
2013 27.5% 29.8% 24% 17.6%
1%
2012 32.4% 30% 20.9% 15.7%
2013 Oil & Gas Salary Guide | 5
SALARY INFORMATION
Salaries
Once again we saw the average permanent salary for those in the oil and gas
industry rise by a significant amount. On the back of last year’s 6 per cent
ANNUAL SALARIES Local average Imported average
rise, 2012 delivered another impressive increase in base pay of 8.5 per cent, BY COUNTRY annual salary annual salary
rising to $87,300* as an average US dollar equivalent worldwide. There would Algeria 45,200 92,400
be few industries with such a track record of growth over the last few years in
what has been, in the most part, an uncertain economic environment. Angola 53,700 108,700
Argentina 94,200 60,000
While the headline growth is impressive, the individual country figures once
again portray the numerous forces shaping remuneration in the industry. Be Australia 163,600 171,000
they issues stemming from politics, the environment, the economy or in some Azerbaijan 47,500 133,500
cases armed conflict, each country’s salary tells a story.
Bahrain N/A 92,200
Overall, we have seen the recruitment industry working well to iron out the
extreme variations in pay, with those at the top of the table seeing salaries Brazil 111,000 131,400
plateau or in some cases ease slightly, and those at the bottom seeing higher Brunei N/A 123,100
demand for cheaper talent, which in turn raises salaries. As the markets
Canada 123,000 122,500
continue to become more efficient, with national borders less restrictive to
skilled migration, and the movement of people more prevalent, this is China 68,300 161,400
inevitably the outcome. Colombia 81,700 106,900
In general the year saw increases for most countries as the global energy Denmark 109,700 148,500
industry remained buoyant. It is therefore more interesting to look at some of
those that fell and speculate why. There were a number of locations that Egypt 41,900 118,500
suffered from issues stemming from political fallout, Iran and Venezuela being France 92,800 107,400
the obvious standouts. The delay in auctions in Brazil saw a drop in their
previously spiralling salaries (to some this would be a welcome respite). Some Ghana 40,500 121,600
parts of Europe continued to suffer from the debt crisis with relatively flat India 38,900 111,800
demand, i.e. Spain; and in Poland the environmental lobby combined with a Indonesia 45,200 146,000
number of disappointing drilling campaigns put the brakes on shale gas
developments and in turn local salaries. Iran 46,900 68,100
At the top of this year’s table we once again see Australia and Norway. Both Iraq 47,200 124,500
countries have limited skilled labour pools and significant workloads, the Italy 69,000 84,600
result is very high pay rates, although both would appear to have met some
sort of ceiling. Completing the top five on local salaries, we also see New Kazakhstan 41,900 117,200
Zealand, Netherlands and Canada. Kuwait 114,400 79,700
Where imported salaries are concerned, it is once again the frontiers of the Libya 42,200 82,800
industry that are pushing the upper limits of pay. Representing a mix of Malaysia 47,200 130,200
danger money and hardship allowance in these base salaries, we find Russia’s
arctic exploration driving imported skills, and China’s drive on non- Mexico 50,000 132,300
conventional skills also pulling in experts on premium rates. Along with Netherlands 123,800 84,900
Australia, the Caribbean hub for oil and gas, Trinidad & Tobago, rounds off
the top five importers by salary level. New Zealand 127,600 110,700
The major headwind in the world economy in late 2012 was the slowdown in Nigeria 55,100 140,800
growth within the Chinese manufacturing sector. It is therefore somewhat Norway 152,600 128,600
surprising that their local and imported salary figures exhibit such growth. Oman 72,600 92,100
However, taking a closer look at the market this is clearly a reflection of their
quest to become self reliant on energy in the future driving exploration and Pakistan 32,600 70,000
infrastructure development, than any immediate increase in domestic energy Papua New Guinea N/A 145,600
demand. Other countries showing big increases include Iraq, Nigeria, Thailand
and Argentina. The first two reflect significant project demand; Argentina is Philippines 35,600 170,000
playing catch up on the previous year’s sluggish growth; and Thailand is Poland 42,500 139,600
increasingly home to many oil and gas professionals on rotation on offshore
Portugal 51,000 125,800
facilities in South East Asia or North Western Australia.
Qatar N/A 77,900
In general the Asia Pacific countries have fared well in the year with
Singapore, South Korea and Malaysia joining China in those with positive Romania 34,400 105,200
increases. Aside from the USA which saw a relatively flat year for Russia 57,900 151,100
remuneration (all be it at a high level) we did see increasing rates in Mexico
and Colombia, two hot spots for the region. Saudi Arabia 86,500 81,000
As we forecast in 2011, Northern Europe also came through with increasing Singapore 84,900 103,900
salaries reflecting a lack of skills to meet burgeoning demand. Demographic South Africa 75,300 93,100
issues contributed to this shortage, as did a ‘brain drain’ of professionals
South Korea 81,400 141,800
overseas, which continues to take its toll on the UK talent pool in particular. The
relative low salary levels in the UK clearly contribute to this effect, and it will Spain 68,900 97,900
take further significant rises domestically before we see the trend reversing. Sudan 31,100 59,800
At the time of writing the oil price remained above $80 bbl and at this level Thailand 49,400 142,400
we should see salaries continue to rise as we progress into and through 2013.
This rise however will be modest and we would expect the increase to be Trinidad and Tobago 66,200 168,800
somewhere in the bracket of 4 to 6 per cert. We also expect to see more Turkey 77,400 101,900
‘flattening’ of the market as skills move around the world to alleviate pockets
United Arab Emirates N/A 79,400
of acute demand, and employers move to those countries at the bottom of
our tables to take advantage of lower cost levels. United Kingdom 93,400 93,100
United States of America 121,400 123,800
Venezuela 62,200 113,000
*Respondents were asked to provide their base salary only in US dollars Vietnam 53,300 132,700
equivalent, converting foreign currency into US dollars at the time of responding. Yemen 35,100 97,300
6 | 2013 Oil & Gas Salary Guide
SALARY INFORMATION
SECTION ONE: SALARY INFORMATION
Salaries
Manager
ANNUAL SALARIES Operator/ Lead/
BY DISCIPLINE AREA Technician Graduate Intermediate Senior Principal VP/Director
Business Development/Commercial 53,500 35,600 48,900 65,500 100,900 184,300
Construction/Installation 58,700 46,400 57,200 80,600 124,000 191,400
Commissioning 62,000 47,400 53,300 96,700 139,600 N/A
Downstream Operations Management 59,300 42,800 53,600 74,900 103,900 174,600
Drilling 75,200 39,400 75,100 102,400 151,700 181,300
Electrical 59,600 37,100 50,800 73,100 98,000 N/A
Estimator/Cost Engineer N/A 38,100 51,700 68,500 103,800 N/A
Geoscience 58,500 43,400 58,800 101,800 144,500 230,000
Health, Safety and Environment (HSE) 55,000 39,900 58,100 76,900 107,500 148,500
SECTION TWO: INDUSTRY BENEFITS
Instrumentation, Controls & Automation 50,600 N/A 47,700 68,700 104,000 N/A
Logistics 57,800 34,300 40,200 70,200 85,200 114,500
Maintenance 54,100 41,100 47,400 87,700 108,600 N/A
Marine/Naval 62,700 41,100 55,300 87,900 112,800 142,200
Mechanical 53,700 38,900 54,100 75,600 108,300 158,500
Piping 49,400 34,100 43,100 68,900 104,800 N/A
Process (chemical) 54,900 38,600 52,200 81,200 117,300 166,100
Production Management 68,300 36,200 52,100 77,600 117,600 240,600
Project Controls 56,100 42,700 54,200 85,300 118,100 169,000
Quality Assurance/Quality Control (QA/QC) 51,300 40,000 52,400 76,300 102,400 123,200
Reservoir/Petroleum Engineering 51,800 37,500 66,300 96,800 124,100 153,300
Structural 52,800 34,500 51,100 68,400 101,200 191,700
Subsea/Pipelines 63,500 37,000 65,900 102,400 149,500 251,200
Supply Chain/Procurement 42,200 37,000 54,600 72,700 97,700 141,300
SECTION THREE: INDUSTRY EMPLOYMENT
Technical Safety 55,300 31,900 50,400 75,600 110,500 142,400
Breaking the data down into discipline areas In line with more project work coming through
and comparing against the previous year’s Final Investment Decision (FID), the core
figures provides us an interesting insight into disciplines of electrical, mechanical, piping
what has been driving the market. and process engineering all had a good year,
making up for some lost ground in 2012. This
Following the downturn of 2008, those
was also mirrored in HSE and commissioning
projects put into development the following
specifically in the more senior roles, where
year were starting to make their way through
experienced managers of projects in these
to operational phases, and it is in both the
disciplines were hard to find.
downstream operations and upstream
production management figures that we saw When considering the various levels of
this effect – both sets of figures climb, seniority in employment, and in line with the
particularly in the more junior ranks, implying previous section, salaries were up. However
volume recruitment. Conversely, the disciplines we saw the biggest increase in graduate
associated with exploration were somewhat salaries rising by more than 12 per cent to just
flat after sizeable rises in 2012, although high under US$40,000 equivalent. For an industry
levels of production ensured it was a busy that has historically under-invested in entry-
year in drilling. level skills this is welcome news. At other
levels, salaries for operators/technicians also
SECTION FOUR: ECONOMIC OUTLOOK
saw rises of 9 per cent, as did the top end of
the scale with base salaries in VP/Directors
rising by the same amount.
2013 Oil & Gas Salary Guide | 7SALARY INFORMATION
Salaries
Manager
ANNUAL SALARIES Operator/ Lead/
BY COMPANY TYPE Technician Graduate Intermediate Senior Principal VP/Director
Consultancy 56,100 36,100 50,600 82,600 119,300 162,500
Contractor 68,800 40,800 53,100 72,000 107,300 181,700
EPCM 57,000 48,400 54,800 82,000 126,300 172,000
Equipment Manufacture & Supply 50,400 30,700 50,600 61,700 85,500 166,200
Global Super Major 76,800 55,200 71,900 103,900 131,700 252,100
Oil Field Services 53,400 37,900 49,300 70,700 98,300 166,500
Operator 58,000 48,800 75,000 105,900 153,800 244,000
This data is fascinating. With such a healthy accelerating at a faster rate than at any point
oil price, it is no surprise that the operators in history. Much of the onus for meeting these
are increasing salaries by about 12 per cent, demands rests with those in this sector and
however, it was a surprise to see the global this in turn is driving talent needs and the
super majors lagging their competition with salaries needed to recruit effectively.
only a 6 per cent rise.
The other ‘under achievers’ historically in
This aside, we saw the largest rise at more terms of salaries are the service contractors,
than 16.7 per cent within the equipment and these companies also saw a good return
manufacturers. There is some conjecture as to in 2012 with an increase of 11 per cent.
why this is happening, however, it is probably
In terms of the magnitude of the base salaries
no coincidence that this industry was the ‘least
by company type, global super majors and
well paid’ of the company types surveyed in
other operators continue to lead the market as
2011. It is only now after a couple of years of
we would expect, however the relative levels
positive revenue that they are starting to claw
between these two groups makes for some
back some of the lost ground in what they can
interesting reading in itself. As is evident ‘big
afford to pay their workforce. We have also
is not always best‘.
seen technological demands in the industry
YEARLY SALARY CHANGES BY COMPANY TYPE
2013 $96,000 +6.4%
Consultancy
2012 $90,200
2013 $83,000 +11%
Contractor
2012 $74,800
2013 $98,900 +8.4%
EPCM
2012 $91,200
Equipment 2013 $71,900 +16.7%
Manufacture
& Supply 2012 $61,600
2013 $107,700 +5.6%
Global Super Major
2012 $102,000
2013 $73,400 +9.1%
Oil Field Services
2012 $67,300
2013 $115,500 +11.8%
Operator
2012 $103,300
8 | 2013 Oil & Gas Salary GuideSALARY INFORMATION
SECTION ONE: SALARY INFORMATION
Salaries
CONTRACTOR DAY RATES Operator/ Manager Lead/
BY REGION Technician Intermediate Senior Principal VP/Director
Northern Europe 430 490 720 850 1,130
Western Europe 390 360 550 770 940
Eastern Europe 300 250 340 460 N/A
CIS 350 440 580 830 880
Middle East 250 320 400 610 1,000
North Africa 310 300 440 560 N/A
West Africa 320 350 610 750 N/A
East/South Africa 310 270 450 820 790
South East Asia 330 320 450 750 1,060
SECTION TWO: INDUSTRY BENEFITS
North East Asia 240 340 630 940 1,260
Australasia 690 700 940 1,330 1,590
North America 420 490 760 840 1,110
South America 340 320 480 630 N/A
Our data shows healthy rises in day rates for The other significant rise was in the manager/
most disciplines across all levels. The lead/principal level, particularly in East/South
operator/technician level saw some of the Africa and North Asia. The latter region saw
largest rises and at these lower levels this good rises across all levels for contractor rates
implies volume hiring with plenty of project being led in the most part by large
work available. As highlighted in this report it engineering firms out of South Korea (with
is the construction/installation companies China not far behind). Constructing and
along with the large EPCMs that have most fabricating FPSOs, vessels, and large scale
need for contractors, and with a wave of new subsea infrastructure, the need for senior
facilities now being built and coming through engineering talent is driving up rates, and also
design we would expect the operator/ saw them elevated to the top of the table for
technician rates to continue rising. importing talent (see table on page 6).
SECTION THREE: INDUSTRY EMPLOYMENT
SECTION FOUR: ECONOMIC OUTLOOK
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
are representative of those who are working in that country but originate from another.
Contractor rates are listed as US dollar equivalent day rates as listed by respondents.
Notes: EPCM - Engineering, procurement and construction management; HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.
2013 Oil & Gas Salary Guide | 9SECTION TWO
INDUSTRY BENEFITS
Bonuses account for rise in benefits.
SECTION TWO: INDUSTRY BENEFITS
10 | 2013 Oil & Gas Salary GuideThe rise in bonuses continues and
now represents the dominant mechanism
by which companies attract and retain
their talent.
5 LARGEST INCREASES IN BENEFITS Value of the benefit as a
percentage of the overall package
2013 2012 Increase
Bonuses 5.80% 4.78% 21%
Health Plan 2.90% 2.59% 12%
Home leave allowance/flights 2.30% 2.00% 15%
Hardship 1.50% 1.26% 19%
Housing 3.40% 3.13% 9%
2013 Oil & Gas Salary Guide | 11INDUSTRY BENEFITS
Overview of industry benefits
The significant figure in our data here is that the number of people not OVERVIEW OF INDUSTRY BENEFITS
receiving benefits has once again dropped, this year to just under 35 per
cent. We know from our own activities that benefits and allowances are a
vital part of recruitment in the industry, where tailoring to the individual, Percentage Average
the project and the business are increasingly commonplace. In this way that receive percentage of their
companies are able to engage far more with the individual they are the benefit total package
seeking to employ and retention rates are bolstered. To some, the fact
that 35 per cent do not receive any benefits is still incredible.
The main mechanism by which employers are engaging with candidates 42.8%
is through bonuses and this is where we have seen the largest growth,
Bonuses
rising 7.8 per cent since 2011 to a total of 42.8 per cent of our
13.8%
respondents receiving some sort of bonus. Healthcare and home leave
allowances were the two other movers in 2012 rising 3.16 per cent and 7.5%
2.56 per cent respectively. Commission
10.2%
In terms of what these benefits were worth to individuals there was not a
great deal of change from 2011. Tax assistance rose slightly as a percentage
of what it is worth, however, slightly fewer were receiving it, so it has not 9.5%
made much of an impression on the overall remuneration pool. Tax Assistance
12.7%
Breaking down the data into company types we see a similar pattern
across all sectors. The exceptions included a jump in healthcare provision
within equipment manufacturers and global super majors, along with 18.9%
home leave allowance showing a small increase across the board. Pension
10.8%
26%
Health Plan
10.8%
Car/Transport/ 19.1%
Petrol 10.2%
19.2%
Housing
17.9%
Home leave 18.2%
allowance/
flights 12.9%
Hardship 10.4%
allowance 16.5%
Hazardous 6.7%
danger pay 16.1%
14.3%
Meal allowance
12.1%
6.7%
Share scheme
12.0%
7.8%
Schooling
14.4%
10.8%
Training
12.6%
15.1%
Overtime
Background: The bar chart shows two figures related to benefits that 17.5%
employees in the oil and gas industry receive. The first figure represents the
percentage of respondents that receive that particular benefit, i.e. 42.8% of No Benefits 34.6%
respondents receive some sort of bonus. The second figure represents the
value of that benefit stated as a percentage of their overall package for
those that receive it, which in the case of bonuses is 13.8%.
12 | 2013 Oil & Gas Salary GuideINDUSTRY BENEFITS
SECTION ONE: SALARY INFORMATION
Company benefits
Almost 65 per cent of the respondents receive some
benefit or allowance above their base pay, the highest
rate of participation since the survey was launched
four years ago.
SECTION TWO: INDUSTRY BENEFITS
TOP BENEFITS BY COMPANY TYPE
SECTION THREE: INDUSTRY EMPLOYMENT
EPCM/CONTRACTOR GLOBAL SUPER MAJOR/OPERATOR
35% Bonuses 43% Bonuses
23% Health Plan 29% Health Plan
19% Housing 24% Pension
18% Car/Transport/Petrol 20% Housing
18% Home leave allowance/flights 19% Home leave allowance/flights
17% Overtime 18% Car/Transport/Petrol
39% No Benefits 30% No Benefits
EQUIPMENT MANUFACTURER & SUPPLY OILFIELD SERVICES/CONSULTANCY
SECTION FOUR: ECONOMIC OUTLOOK
42% Bonuses 33% Bonuses
28% Health Plan 22% Health Plan
23% Car/Transport/Petrol 16% Car/Transport/Petrol
22% Pension 16% Housing
16% Housing 15% Pension
13% Meal allowance 15% Home leave allowance/flights
30% No Benefits 38% No Benefits
Background: Graphs here show the top benefits by company type and the percentage of people who receive them.
2013 Oil & Gas Salary Guide | 13INDUSTRY BENEFITS
Regional benefits
As with previous years Asia remains the Whilst the Middle East and Asia continue to
region in which more allowances and benefits deliver higher levels of benefits across most
are paid out as a percentage of the overall categories, this is in the most part offset by
package than any other region. The Middle lower basic salaries. Indeed the inter
East is not far behind, with Africa and South relationship between base salary and benefits
America next. Europe and North America should not be ignored when considering
continue to weight their salaries towards basic regional differences in overall remuneration.
salary and consequently benefits are relatively Perhaps even more of a factor for some
light in comparison. regions is the level of tax on gross pay, and
this is where the majority of the Middle East
In terms of regional differences we identified a
clearly plays its trump card, having a zero tax
number of interesting patterns. In South
on earnings.
America health plans are given to far more
employees than any other region. They also
pay out a high proportion of meal allowances,
at a level not seen elsewhere. In Asia there is
a distinct absence of pension payments, as
well as overtime. This was offset by having the
highest payments of bonuses.
TOP BENEFITS BY REGION
AFRICA ASIA
37% Bonuses 43% Bonuses
25% Health Plan 29% Health Plan
21% Housing 24% Car/Transport/Petrol
20% Home leave allowance/flights 24% Housing
20% Car/Transport/Petrol 22% Home leave allowance/flights
19% Pension 19% Meal allowance
36% No Benefits 26% No Benefits
AUSTRALASIA COMMONWEALTH OF INDEPENDENT STATES
33% Bonuses 30% Bonuses
27% Pension 20% Health Plan
12% Health Plan 19% Home leave allowance/flights
11% Car/Transport/Petrol 17% Housing
10% Home leave allowance/flights 14% Meal allowance
9% Overtime 12% Pension
43% No Benefits 40% No Benefits
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.
14 | 2013 Oil & Gas Salary GuideINDUSTRY BENEFITS
SECTION ONE: SALARY INFORMATION
Regional benefits
SECTION TWO: INDUSTRY BENEFITS
TOP BENEFITS BY REGION
SECTION THREE: INDUSTRY EMPLOYMENT
EUROPE MIDDLE EAST
30% Bonuses 40% Bonuses
22% Pension 29% Housing
19% Health Plan 26% Home leave allowance/flights
12% Car/Transport/Petrol 24% Health Plan
9% Overtime 22% Car/Transport/Petrol
7% Meal allowance 18% Overtime
49% No Benefits 27% No Benefits
NORTH AMERICA SOUTH AMERICA
SECTION FOUR: ECONOMIC OUTLOOK
37% Bonuses 39% Bonuses
35% Health Plan 39% Health Plan
22% Pension 24% Meal allowance
13% Car/Transport/Petrol 21% Pension
11% Overtime 17% Car/Transport/Petrol
10% Training 13% Housing
34% No Benefits 25% No Benefits
2013 Oil & Gas Salary Guide | 15SECTION THREE
INDUSTRY
EMPLOYMENT
Confidence remains high with almost a quarter
of employers expecting salaries to rise by
10 per cent or more in the next year.
SECTION THREE: INDUSTRY EMPLOYMENT
16 | 2013 Oil & Gas Salary GuideINDUSTRY EMPLOYMENT
SECTION ONE: SALARY INFORMATION
Staffing levels
Confidence levels in the industry on staffing world. Energy demand continues to edge up Interestingly, the use of expats appears to be
demand remains high, in line with rising salary and demand for skills continue to outstrip falling, with more than 20 per cent of those
costs. However, the level has come off from supply in many regions. responding stating that their company did not
2012 albeit only slightly. Through the latter employ people on an expat basis. This is very
The contractor base in the industry has
part of 2011 and early 2012 European debt much in line with the increasing trend to
remained relatively static since 2011. We also
worries dominated business confidence. As localise the workforce. The level of those
see the use of contractors has continued to
the year progressed the possibility of serious expecting the number of expatriates to
predominate in the construction and
financial melt-down in Europe receded and increase remains stubbornly high however.
installation disciplines. However, looking ahead
the markets became similarly afflicted with This was the same in 2011, despite this year’s
the market does not have the same
concern for the downturn in growth within data showing a contraction in expat use
confidence as last year that this contract base
China, an economy that has helped to prop up contradicting that forecast.
will increase. While it is still high, more of our
global activity for the last few years. This
sample believes contractor numbers will
concern is having an impact on the wider
remain static.
economy, however, less so in the oil and gas
CONFIDENCE THAT STAFFING LEVELS PERCENTAGE OF STAFF EMPLOYED
SECTION TWO: INDUSTRY BENEFITS
WILL CHANGE IN THE NEXT 12 MONTHS ON A TEMPORARY OR CONTRACT ASSIGNMENT
24.8% Increase more than 10% 38.9% More than 20%
23.9% Increase between 5-10% 29.7% Between 5-20%
23.2% Increase up to 5% 18.9% Up to 5%
22.9% Remain static 12.5% None
5.2% Decrease
DISCIPLINE AREAS IN WHICH CONTRACTORS EXPECTATION THAT CONTRACTOR
ARE EMPLOYED IN OIL AND GAS LEVELS WILL CHANGE IN THE NEXT 12 MONTHS
39.6% 44.3%
Always Sometimes Never
SECTION THREE: INDUSTRY EMPLOYMENT
Subsea/Pipelines
48.3% 38.8% 12.9% Increase Remain the same
Drilling & Well Delivery
39.5% 35.7% 24.8% 16.1%
Decrease
Engineering & Design
43.7% 45.5% 10.8%
PERCENTAGE OF WORKFORCE
EMPLOYED AS AN EXPAT
Equipment & Supply
46.5% 38.3% 15.2% 36% More than 10%
22.8% Between 5-10%
Geoscience & Petroleum Engineering
20.1% Up to 5%
30.5% 44% 25.5%
21.1%
SECTION FOUR: ECONOMIC OUTLOOK
None
HSE & QAQC
37.6% 42.7% 19.7%
EXPECTATION THAT EXPAT
LEVELS WILL CHANGE IN THE NEXT 12 MONTHS
Ops, Maintenance & Production
40%
Petrochemicals
43.7% 16.3%
43.4% 48.5%
Increase Remain the same
32.8% 41.7% 25.5%
Project Controls
36.1% 45.3% 18.6%
8.1%
Decrease
2013 Oil & Gas Salary Guide | 17INDUSTRY EMPLOYMENT
Diversity & movement of workforce
Disappointingly we didn’t find an increase in Controls and HSE as the largest sectors of In line with our own experience, the number
the number of women working in the industry. employment for females. of oil and gas professionals working overseas
With skill shortages as they are this appears continues to increase. In 2012 this percentage
There has been a small aging of the working
to be the ideal time to take advantage of what has risen to 47.4 per cent, up from the
population within our sample and this is in line
should be a sizeable proportion of the previous year’s figure of 42.6 per cent. This
with the years of experience as documented
workforce, unfortunately it appears an trend is due to a number of factors, primarily
in the figure below. While overall the global
opportunity missed. Regionally the Americas the promotion of inward skilled migration by
data does not show any significant issues with
are faring better than other regions, as the nation’s governments that facilitates the
demographics, the same cannot be said of
only two continents with more than 10 per growth. With skill shortages as they are, we
specific markets. The market with the most
cent of female workers. The Middle East, do not expect it will be long before there are
acute issue is the US with more than 55 per
Africa and Asia are once again at the lower more oil and gas professionals overseas than
cent of respondents over 50 years of age. We
end of the scale. there are in their own home countries.
believe that this is already driving the high
The spread of discipline splits amongst demand for talent in the US and Canada, that
women in the industry remains the same as would appear to exceed current project and
last year, with Business Development, Project production needs.
DIVERSITY OF STAFF AGE DEMOGRAPHICS
REGIONAL GENDER DIFFERENCES Male Female
Male Female 2.6%
24 and under
5.9%
90.9%
Australasia
9.1% 12.4%
25-29
22.4%
93.5%
Asia
6.5% 16.2%
30-34
22.9%
94.4%
Africa
5.6% 14.0%
35-39
17.6%
91.7%
Europe
8.3% 13.6%
40-44
12.0%
91.7%
CIS
8.3% 12.0%
45-49
6.8%
96.9%
Middle East
3.1% 11.3%
50-54
6.6%
89.8%
North America
10.2% 9.3%
55-59
3.9%
89.7%
South America
10.3% 6.1%
60-64
1.3%
2.5%
65 and over
0.5%
WORKING AT HOME OR ABROAD
52.6% 47.4%
Home Abroad
18 | 2013 Oil & Gas Salary GuideINDUSTRY EMPLOYMENT
SECTION ONE: SALARY INFORMATION
Diversity & movement of workforce
Of all the sections in this report, this one gives largest importer of skills, although localisation In terms of nationals working overseas (see
us the most insight into the markets around of staff levels did manage to make a small table below) the figures support three big
the world and how they are faring. High levels dent in the levels of those imported. In Asia movers in the export of staff. These include;
of project work, lack of home grown talent there was a significant increase in local Asian nationals, primarily from the
and drives on localising the workforce can all participation, again we believe due to those sub-continent, but also the Philippines and
be identified within these figures. returning home to higher rates of pay. China; Africa, with nationals mostly heading
north to Europe; and more recently as the
In Australia, the overall percentage of imports Moving the other way we saw something of an
data shows South Americans heading to both
dropped, however we also know that the exodus of foreign nationals from Europe, most
Europe and North America.
workforce grew at a significant rate, and this of which were heading east to chase the
demand was filled with Australian nationals. dollars. Africa continued to increase its imports
The proportion of Australian nationals working as did South America as wages increased.
at home once again grew for the third year
running. The Middle East continues to be the
MOVEMENT OF THE WORKFORCE
SECTION TWO: INDUSTRY BENEFITS
IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE
Imported labour Local labour
Australasia 49.4% 50.6%
Asia 18.2% 81.8%
Africa 35.6% 64.4%
Europe 14.2% 85.8%
CIS 58.9% 41.1%
SECTION THREE: INDUSTRY EMPLOYMENT
Middle East 86.4% 13.6%
North America 27.8% 72.2%
South America 33.0% 67.0%
WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY
Working overseas Working in home country
Australasia 28.8% 71.2%
Asia 48.1% 51.9%
SECTION FOUR: ECONOMIC OUTLOOK
Africa 23.8% 76.2%
Europe 43.2% 56.8%
CIS 34.7% 65.3%
Middle East 23.5% 76.5%
North America 31.5% 68.5%
South America 42.5% 57.5%
2013 Oil & Gas Salary Guide | 19INDUSTRY EMPLOYMENT
Experience and tenure
In 2012 we reported a large influx of new and suggest that the wave of projects coming Last year we started to measure where oil and
experienced hires into the oil and gas industry. through the industry has gone through its peak gas professionals sought their new roles. To
This saw record numbers of people in the zero and the big ‘flex’ in headcount (those with zero recruiters there are a number of useful
to four years experience bracket. This year to four years experience) is behind us. observations that we can see derive from
these numbers remain high, although some numbers. Firstly that traditional newspaper
There was little change in most of the
have moved through into the following band advertising continues to disappear as a source
other disciplines, including those in the
with the net effect of increasing the of job hunting. We also saw a small decline in
sub-surface areas.
experience levels across the whole sample. those seeking work through internal company
The changes, however, are relatively small and Again we have seen only a small change in the websites, or internal moves. On the increase
indicate a more ‘steady state’ market than in tenure of respondents with a small increase. was head hunting and the use of agencies. Job
previous years when the market was emerging As the market settles into this particular cycle board use remains level at just over 15 per cent.
from a downturn. we would expect tenure to continue to
increase, albeit gradually. Should the market
In terms of disciplines, the construction and
turn down then this may well accelerate as
project controls figures have both increased
‘last in: first out’ principles start to take hold.
their average experience level. This would
YEARS OF EXPERIENCE
OIL & GAS INDUSTRY
28.3% 23.4% 23.5% 24.8%
0-4 years 5-9 years 10-19 years 20+ years
FOR SPECIFIC DISCIPLINE AREAS
0-4 years 5-9 years 10-19 years 20 + years
Construction/
27.8% 19.6% 21.8% 30.8%
Installation
Project
23.7% 25.1% 27.1% 24.1%
Controls
Geoscience 25.5% 24.5% 21.6% 28.4%
Subsea/
23.4% 25.1% 21.8% 29.7%
Pipelines
20 | 2013 Oil & Gas Salary GuideINDUSTRY EMPLOYMENT
SECTION ONE: SALARY INFORMATION
Experience and tenure
Tenure edged up slightly from last year’s figures,
reflecting a less volatile market but one which
continued to drive hiring.
SECTION TWO: INDUSTRY BENEFITS
TIME IN CURRENT ROLE
2013
24.6% 29.2% 24.7% 13.7% 7.8%
Less than 1 year 1-2 years 3-5 years 6-10 years 10+ years
SECTION THREE: INDUSTRY EMPLOYMENT
2012
26.0% 25.0% 28.7% 12.0% 8.3%
Less than 1 year 1-2 years 3-5 years 6-10 years 10+ years
SOURCE OF NEW EMPLOYMENT
SECTION FOUR: ECONOMIC OUTLOOK
6.1% 21.0%
12.4% 15.0%
Newspaper Company website Online job board Word of mouth
7.9% 7.1%
16.0% 14.5%
Head hunted Agency Internal move Other
2013 Oil & Gas Salary Guide | 21INDUSTRY EMPLOYMENT
Employment mix
In last year’s data we saw most companies This year, as confidence has come off its highs,
(outside of the constructors/installers) we’ve seen the trend reverse with employers
changing their mix of employment to include seeking more flexibility in their workforce. The
more permanent staff, at the expense of most pronounced shift occurred within the
contractors (direct or through an agency). This super majors and operators, closely followed by
was appropriate for a market where confidence the consultancies.
was sky high.
EMPLOYMENT MIX BY COMPANY TYPE
Permanent Permanent/ Contracted Contracted
Part-Time Direct through
agency
Global Super Major 52.6% 1.5% 14.2% 31.7%
Operators 59.5% 1.4% 14.9% 24.2%
EPCM 53.1% 1.6% 24.6% 20.7%
Equipment Manufacturer 80.7% 2.0% 10.3% 7.0%
& Supplier
Oil Field Services 60.9% 3.5% 20.2% 15.4%
Consultancy 42.9% 3.3% 27.4% 26.4%
Contractors 47.1% 2.5% 26.4% 24.0%
PERCENTAGE CHANGE FROM 2012 to 2013
GLOBAL SUPER MAJOR OPERATORS
-6.9% -4.7%
-0.6% -1.3%
2.4% 0.1%
5.1% 5.9%
22 | 2013 Oil & Gas Salary GuideINDUSTRY EMPLOYMENT
SECTION ONE: SALARY INFORMATION
Employment mix
EPCM EQUIPMENT MANUFACTURER & SUPPLIER
-3.1% 1.8%
0.0% -1.6%
1.4% -0.5%
1.6% 0.3%
SECTION TWO: INDUSTRY BENEFITS
OIL FIELD SERVICES CONSULTANCY
0.5% -5.3%
-0.9% -0.8%
0.4% 1.3%
0.0% 4.8%
SECTION THREE: INDUSTRY EMPLOYMENT
CONTRACTORS
ost of last year’s gains
M
in permanent hires were
-1.5%
-0.1%
reversed this year as
1.2% economic concern saw a
0.4% move towards more flexible
SECTION FOUR: ECONOMIC OUTLOOK
employment solutions.
2013 Oil & Gas Salary Guide | 23SECTION FOUR
ECONOMIC OUTLOOK
Confidence was delicately balanced in the year with high profits
from a buoyant oil price offset by concerns over European debt
and a slowdown in China’s growth.
SECTION FOUR: ECONOMIC OUTLOOK
24 | 2013 Oil & Gas Salary GuideSkill shortages are now by far the major
concern for employers in the industry.
employer’s concerns in the current employment market
37.3% 25.3% 11.8% 8.7%
Skills shortages Economic instability Environmental Safety regulations
concerns
7.2% 8.1%
Immigration/overseas Security/safety caused
1.6%
Other
visa program by social unrest
2013 Oil & Gas Salary Guide | 25ECONOMIC OUTLOOK
Industry outlook
These figures remain largely in line with 2011, This cycle has seen widespread demand, but development. Balancing this positive sentiment
which represents high levels of confidence in without the critical spikes. This said it is without is concern around China’s growth and whether
comparison to figures given in other years. This doubt that investment ‘rates of return’ are Europe will re-emerge as the trigger to create a
is a pleasing result for those involved in talent being tested in such locations as Australia and ‘meltdown’. For now both forces are balancing
acquisition, showing that the market still has a Brazil, however, we are yet to see this stall each other and producing a steady, buoyant
great deal to offer both employers and job project development. market. It would, however, not take much to
seekers alike. In 2008, before the economic push the markets out of kilter either way, so it is
The key factors affecting the market in late
downturn, the skill shortages were acute in a with some interest that we enter 2013. Whether
2012 included, on the positive side, a high oil
few select places. This caused salaries to spiral or not the current positive feeling turns to
price, driven by growing energy demand. This
upwards, jeopardising many of the projects trepidation we will have to wait and see.
is giving operators plenty of revenue to drive
that caused the demand in the first place.
EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET
2013
26.0% 47.8% 20.7% 5.5%
Extremely positive Positive Neutral Negative
2012
26.7% 46.8% 20.8% 5.7%
Extremely positive Positive Neutral Negative
EMPLOYER’S GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS OUTSIDE THEIR OWN REGIONAL AREA
16.6% 16.3% 13.4% 13.3%
Middle East Europe CIS Australasia
12.2% 10.4% 9.5% 8.3%
Africa
Asia South America North America
26 | 2013 Oil & Gas Salary GuideECONOMIC OUTLOOK
SECTION ONE: SALARY INFORMATION
Most significant issues
In terms of the worries for employers in the Economic worries were conversely waning as
industry, it is clear that skill shortages are their were those concerns around environmental
number one concern. This is a change from last factors and safety. Social unrest and
year when this issue was on a par with those immigration issues remain steady and at
around the economy, and would indicate that relatively low levels.
the pendulum continues to swing towards a
candidate-led market.
SECTION TWO: INDUSTRY BENEFITS
EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET
SECTION THREE: INDUSTRY EMPLOYMENT
Skills Economic Environmental Safety Immigration/ Security/Safety Other
shortages instability Concerns regulations overseas visa caused by
program social unrest
All 37.3% 25.3% 11.8% 8.7% 7.2% 8.1%
Africa
Asia
Australasia
SECTION FOUR: ECONOMIC OUTLOOK
CIS
Europe
Middle East
North America
South America
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