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Oil & Gas Global Salary Guide



Lees ons rapport over trends in recruiting en verloning, wereldwijd binnen de Oil & Gas branche.

Lees ons rapport over trends in recruiting en verloning, wereldwijd binnen de Oil & Gas branche.



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    Oil & Gas Global Salary Guide Oil & Gas Global Salary Guide Document Transcript

    • OIL & GASGLOBAL SALARYGUIDE 2013Global salaries and recruiting trends.
    • PEOPLE RESPONDEDTO THE SURVEYRESPONDENTS AREEMPLOYERS IN THEINDUSTRYRESPONDENTS WORK WITHA GLOBAL SUPER MAJORCOUNTRIES WORLDWIDEREPRESENTEDDISCIPLINEAREAS COVERED25,000+8,200+2,500+5324THANK YOUWe would like to express our gratitude to all those organisations and individuals who participatedin the collection of data for this year’s survey. More than 25,000 responded, which is approximately74 per cent up on last year and this has once again ensured that we can produce an informativedocument 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 andcompilation of data, the survey is interpretive and indicative, not conclusive. Therefore information should be used as a guideline only and should not be reproduced intotal or by section without written permission from the producers of this guide.SURVEY SUMMARY2 A global perspectiveSection one - salary information6 Overview and salaries by country7 Salaries by discipline area8 Salaries by company type9 Contractor day rates by regionSection two - industry benefits12 Overview of benefits13 Benefits by company type14 Benefits by regionSection three - industry employment17 Staffing levels18 Diversity and movement of workforce20 Experience and tenure22 Employment mixSection four - economic outlook26 Industry outlook27 Most significant issuesCONTENTSIt is with great delight that we introduce this year’s global oil and gas salaryguide. This is the fourth year we have published the document and each yearwe have seen an increase in the number of respondents taking their time togive us such valuable information and insights into their world of work. Thisyear’s survey saw more than 25,000 professionals and skilled employees inthe oil and gas industry respond, giving us more than one million separatepieces of information to collate into findings. As with previous years, it is thetrends and movements within the data that make for such interesting reading– indeed every figure tells its own tale!With so much data it can become a question of what to present and publish,however, we have tried to stay true to the goals that we set ourselves whenfirst embarking on such a document. This was namely to produce somemeaningful data on how salaries and remuneration change as we movearound the world of work in the oil and gas industry. This is thencomplemented with some informed insights as to what industry events andactivities are contributing to the outcomes. We hope you enjoy reading thedocument, and more importantly it is of assistance to you in youremployment dealings.2012 was a good year for many in the oil and gas world with an increase insalaries, benefits and conditions. The same cannot be said for too many otherindustries and it would not be stretching the truth to state that more wealthhas been created in the oil and gas industry than any other over the last 12months. With nearly every country around the world striving to secure its ownenergy future, either through exploration, increased production or developinginfrastructure, demand for the oil and gas professional, in all its guises, wasmost definitely high.Our headline figure for the average base salary has once again grown to now sitat $87,300*, showing an 8.5 per cent increase on the previous year. Such anincrease 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.There were numerous developments contributing to this rise through 2012, notleast of which was a proliferation of non-conventional field developments. Thiswas seen by many nations as the route to energy independence and saw awave of hiring. Indeed many countries eagerly embarked on this path only todiscover that the skills didn’t exist, at least not in their own country. This wasconsequently, for some, their first steps onto the global recruitment market. Theother change that this sector saw was an expansion into cities/regionspreviously untouched by the industry. The likes of Houston, Aberdeen and Perthare still important, just not as important as they were, it would seem.There were some environmental challenges to overcome and for somecountries or regions this was a bridge too far. (Development stalled andsalaries with it, trends that are easily spotted within our data).Despite the general upward trend there were headwinds to overcome. As theyear came to a close the oil price edged slowly lower, reflecting continuednegative sentiment around the general global economy, and the impact thismay have. Most roads led back to Europe in this regard and their continuingdebt issues weighed down consumer demand. This in turn impactedmanufacturing output, most notably in China. The fragile nature of thisscenario has dominated the economic backdrop, and appears likely tocontinue well into 2013. This said, confidence from those taking this surveyhas remained high and at least in the oil and gas world, forecasts are forcontinued optimism, albeit guarded.We would like to take this opportunity to thank all of those individuals thatgave up their valuable time to respond to this survey, once again allowing usto produce such a valuable document. We would also like to thank thosepeople 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 stafffor their valuable insights which undoubtedly bring the document to life.Matt Underhill, Managing Director, Hays Oil & GasDuncan Freer, Managing Director, Oil and Gas Job Search*Respondents were asked to provide their base salary only in US dollars equivalent, convertingforeign currency into US dollars at the time of responding.2013 Oil & Gas Salary Guide | 1
    • AUSTRALIAAustralia dominatesthe LNG market with amultitude of projectsunder constructionIRAQFlurry of hiring as a range of newmega-projects kick offSOUTH KOREAKorean ship yards seek tomonopolise vessel and rigfabrication workA GLOBALPERSPECTIVEBRAZILA long awaited round of fieldauctions announced, breathinglife back into the marketUNITED STATESEnergy self-sufficiency now in sightfor the US with extensive shale gasdevelopmentsNORTH SEAThe drain of talent to overseasmarkets intensifies skill shortagesEAST AFRICAEast Africa becomes the next bigfocus for oil and gas majors2 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 3
    • SECTIONONE:SALARYINFORMATIONWith almost 50 per cent of thoseresponding experiencing an increase of5 per cent or more to their salary, this wasthe second consecutive year of significantrises for the industry.SECTION ONESALARYINFORMATIONPermanent salaries rose 8.5% over the last 12 months.4 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 5CHANGES TO SALARIES IN THE LAST 12 MONTHSEXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS201320132012201227.5%32.4%49.7%49.5%29.8%30%16.3%16.6%24%20.9%30.3%29.7%17.6%15.7%3.7%4.2%1.1%1%Increasemore than 5%Increasemore than 10%Increaseup to 5%Increasebetween 5-10%RemainStaticIncreaseup to 5%DecreaseRemainStaticDecrease
    • SECTIONONE:SALARYINFORMATIONSECTIONTWO:INDUSTRYBENEFITSSECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONFOUR:ECONOMICOUTLOOKSALARY INFORMATIONSalaries6 | 2013 Oil & Gas Salary GuideSALARY INFORMATIONSalariesBreaking the data down into discipline areasand comparing against the previous year’sfigures provides us an interesting insight intowhat has been driving the market.Following the downturn of 2008, thoseprojects put into development the followingyear were starting to make their way throughto operational phases, and it is in both thedownstream operations and upstreamproduction management figures that we sawthis effect – both sets of figures climb,particularly in the more junior ranks, implyingvolume recruitment. Conversely, the disciplinesassociated with exploration were somewhatflat after sizeable rises in 2012, although highlevels of production ensured it was a busyyear in drilling.In line with more project work coming throughFinal Investment Decision (FID), the coredisciplines of electrical, mechanical, pipingand process engineering all had a good year,making up for some lost ground in 2012. Thiswas also mirrored in HSE and commissioningspecifically in the more senior roles, whereexperienced managers of projects in thesedisciplines were hard to find.When considering the various levels ofseniority in employment, and in line with theprevious section, salaries were up. Howeverwe saw the biggest increase in graduatesalaries rising by more than 12 per cent to justunder US$40,000 equivalent. For an industrythat has historically under-invested in entry-level skills this is welcome news. At otherlevels, salaries for operators/technicians alsosaw rises of 9 per cent, as did the top end ofthe scale with base salaries in VP/Directorsrising by the same amount.2013 Oil & Gas Salary Guide | 7Once again we saw the average permanent salary for those in the oil and gasindustry rise by a significant amount. On the back of last year’s 6 per centrise, 2012 delivered another impressive increase in base pay of 8.5 per cent,rising to $87,300* as an average US dollar equivalent worldwide. There wouldbe few industries with such a track record of growth over the last few years inwhat has been, in the most part, an uncertain economic environment.While the headline growth is impressive, the individual country figures onceagain portray the numerous forces shaping remuneration in the industry. Bethey issues stemming from politics, the environment, the economy or in somecases armed conflict, each country’s salary tells a story.Overall, we have seen the recruitment industry working well to iron out theextreme variations in pay, with those at the top of the table seeing salariesplateau or in some cases ease slightly, and those at the bottom seeing higherdemand for cheaper talent, which in turn raises salaries. As the marketscontinue to become more efficient, with national borders less restrictive toskilled migration, and the movement of people more prevalent, this isinevitably the outcome.In general the year saw increases for most countries as the global energyindustry remained buoyant. It is therefore more interesting to look at some ofthose that fell and speculate why. There were a number of locations thatsuffered from issues stemming from political fallout, Iran and Venezuela beingthe obvious standouts. The delay in auctions in Brazil saw a drop in theirpreviously spiralling salaries (to some this would be a welcome respite). Someparts of Europe continued to suffer from the debt crisis with relatively flatdemand, i.e. Spain; and in Poland the environmental lobby combined with anumber of disappointing drilling campaigns put the brakes on shale gasdevelopments and in turn local salaries.At the top of this year’s table we once again see Australia and Norway. Bothcountries have limited skilled labour pools and significant workloads, theresult is very high pay rates, although both would appear to have met somesort of ceiling. Completing the top five on local salaries, we also see NewZealand, Netherlands and Canada.Where imported salaries are concerned, it is once again the frontiers of theindustry that are pushing the upper limits of pay. Representing a mix ofdanger money and hardship allowance in these base salaries, we find Russia’sarctic exploration driving imported skills, and China’s drive on non-conventional skills also pulling in experts on premium rates. Along withAustralia, the Caribbean hub for oil and gas, Trinidad & Tobago, rounds offthe top five importers by salary level.The major headwind in the world economy in late 2012 was the slowdown ingrowth within the Chinese manufacturing sector. It is therefore somewhatsurprising that their local and imported salary figures exhibit such growth.However, taking a closer look at the market this is clearly a reflection of theirquest to become self reliant on energy in the future driving exploration andinfrastructure development, than any immediate increase in domestic energydemand. Other countries showing big increases include Iraq, Nigeria, Thailandand Argentina. The first two reflect significant project demand; Argentina isplaying catch up on the previous year’s sluggish growth; and Thailand isincreasingly home to many oil and gas professionals on rotation on offshorefacilities in South East Asia or North Western Australia.In general the Asia Pacific countries have fared well in the year withSingapore, South Korea and Malaysia joining China in those with positiveincreases. Aside from the USA which saw a relatively flat year forremuneration (all be it at a high level) we did see increasing rates in Mexicoand Colombia, two hot spots for the region.As we forecast in 2011, Northern Europe also came through with increasingsalaries reflecting a lack of skills to meet burgeoning demand. Demographicissues contributed to this shortage, as did a ‘brain drain’ of professionalsoverseas, which continues to take its toll on the UK talent pool in particular. Therelative low salary levels in the UK clearly contribute to this effect, and it willtake further significant rises domestically before we see the trend reversing.At the time of writing the oil price remained above $80 bbl and at this levelwe 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 besomewhere in the bracket of 4 to 6 per cert. We also expect to see more‘flattening’ of the market as skills move around the world to alleviate pocketsof acute demand, and employers move to those countries at the bottom ofour tables to take advantage of lower cost levels.*Respondents were asked to provide their base salary only in US dollarsequivalent, converting foreign currency into US dollars at the time of responding.ANNUAL SALARIESBY COUNTRYLocal averageannual salaryImported averageannual salaryAlgeria 45,200 92,400Angola 53,700 108,700Argentina 94,200 60,000Australia 163,600 171,000Azerbaijan 47,500 133,500Bahrain N/A 92,200Brazil 111,000 131,400Brunei N/A 123,100Canada 123,000 122,500China 68,300 161,400Colombia 81,700 106,900Denmark 109,700 148,500Egypt 41,900 118,500France 92,800 107,400Ghana 40,500 121,600India 38,900 111,800Indonesia 45,200 146,000Iran 46,900 68,100Iraq 47,200 124,500Italy 69,000 84,600Kazakhstan 41,900 117,200Kuwait 114,400 79,700Libya 42,200 82,800Malaysia 47,200 130,200Mexico 50,000 132,300Netherlands 123,800 84,900New Zealand 127,600 110,700Nigeria 55,100 140,800Norway 152,600 128,600Oman 72,600 92,100Pakistan 32,600 70,000Papua New Guinea N/A 145,600Philippines 35,600 170,000Poland 42,500 139,600Portugal 51,000 125,800Qatar N/A 77,900Romania 34,400 105,200Russia 57,900 151,100Saudi Arabia 86,500 81,000Singapore 84,900 103,900South Africa 75,300 93,100South Korea 81,400 141,800Spain 68,900 97,900Sudan 31,100 59,800Thailand 49,400 142,400Trinidad and Tobago 66,200 168,800Turkey 77,400 101,900United Arab Emirates N/A 79,400United Kingdom 93,400 93,100United States of America 121,400 123,800Venezuela 62,200 113,000Vietnam 53,300 132,700Yemen 35,100 97,300ANNUAL SALARIESBY DISCIPLINE AREAOperator/Technician Graduate Intermediate SeniorManagerLead/Principal VP/DirectorBusiness Development/Commercial 53,500 35,600 48,900 65,500 100,900 184,300Construction/Installation 58,700 46,400 57,200 80,600 124,000 191,400Commissioning 62,000 47,400 53,300 96,700 139,600 N/ADownstream Operations Management 59,300 42,800 53,600 74,900 103,900 174,600Drilling 75,200 39,400 75,100 102,400 151,700 181,300Electrical 59,600 37,100 50,800 73,100 98,000 N/AEstimator/Cost Engineer N/A 38,100 51,700 68,500 103,800 N/AGeoscience 58,500 43,400 58,800 101,800 144,500 230,000Health, Safety and Environment (HSE) 55,000 39,900 58,100 76,900 107,500 148,500Instrumentation, Controls & Automation 50,600 N/A 47,700 68,700 104,000 N/ALogistics 57,800 34,300 40,200 70,200 85,200 114,500Maintenance 54,100 41,100 47,400 87,700 108,600 N/AMarine/Naval 62,700 41,100 55,300 87,900 112,800 142,200Mechanical 53,700 38,900 54,100 75,600 108,300 158,500Piping 49,400 34,100 43,100 68,900 104,800 N/AProcess (chemical) 54,900 38,600 52,200 81,200 117,300 166,100Production Management 68,300 36,200 52,100 77,600 117,600 240,600Project Controls 56,100 42,700 54,200 85,300 118,100 169,000Quality Assurance/Quality Control (QA/QC) 51,300 40,000 52,400 76,300 102,400 123,200Reservoir/Petroleum Engineering 51,800 37,500 66,300 96,800 124,100 153,300Structural 52,800 34,500 51,100 68,400 101,200 191,700Subsea/Pipelines 63,500 37,000 65,900 102,400 149,500 251,200Supply Chain/Procurement 42,200 37,000 54,600 72,700 97,700 141,300Technical Safety 55,300 31,900 50,400 75,600 110,500 142,400
    • 8 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 9SECTIONONE:SALARYINFORMATIONSECTIONTWO:INDUSTRYBENEFITSSECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONFOUR:ECONOMICOUTLOOKSALARY INFORMATIONSalariesSALARY INFORMATIONSalariesThis data is fascinating. With such a healthyoil price, it is no surprise that the operatorsare increasing salaries by about 12 per cent,however, it was a surprise to see the globalsuper majors lagging their competition withonly a 6 per cent rise.This aside, we saw the largest rise at morethan 16.7 per cent within the equipmentmanufacturers. There is some conjecture as towhy this is happening, however, it is probablyno coincidence that this industry was the ‘leastwell paid’ of the company types surveyed in2011. It is only now after a couple of years ofpositive revenue that they are starting to clawback some of the lost ground in what they canafford to pay their workforce. We have alsoseen technological demands in the industryaccelerating at a faster rate than at any pointin history. Much of the onus for meeting thesedemands rests with those in this sector andthis in turn is driving talent needs and thesalaries needed to recruit effectively.The other ‘under achievers’ historically interms of salaries are the service contractors,and these companies also saw a good returnin 2012 with an increase of 11 per cent.In terms of the magnitude of the base salariesby company type, global super majors andother operators continue to lead the market aswe would expect, however the relative levelsbetween these two groups makes for someinteresting reading in itself. As is evident ‘bigis not always best‘.Our data shows healthy rises in day rates formost disciplines across all levels. Theoperator/technician level saw some of thelargest rises and at these lower levels thisimplies volume hiring with plenty of projectwork available. As highlighted in this report itis the construction/installation companiesalong with the large EPCMs that have mostneed for contractors, and with a wave of newfacilities now being built and coming throughdesign we would expect the operator/technician rates to continue rising.The other significant rise was in the manager/lead/principal level, particularly in East/SouthAfrica and North Asia. The latter region sawgood rises across all levels for contractor ratesbeing led in the most part by largeengineering firms out of South Korea (withChina not far behind). Constructing andfabricating FPSOs, vessels, and large scalesubsea infrastructure, the need for seniorengineering talent is driving up rates, and alsosaw them elevated to the top of the table forimporting talent (see table on page 6).Background for this sectionOnly 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 toconvert their salary into US dollars using xe.com at the time of responding) excluding one-off bonuses, pension, share options and other non-cashbenefits, 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 labourare 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.ANNUAL SALARIESBY COMPANY TYPEOperator/Technician Graduate Intermediate SeniorManagerLead/Principal VP/DirectorConsultancy 56,100 36,100 50,600 82,600 119,300 162,500Contractor 68,800 40,800 53,100 72,000 107,300 181,700EPCM 57,000 48,400 54,800 82,000 126,300 172,000Equipment Manufacture & Supply 50,400 30,700 50,600 61,700 85,500 166,200Global Super Major 76,800 55,200 71,900 103,900 131,700 252,100Oil Field Services 53,400 37,900 49,300 70,700 98,300 166,500Operator 58,000 48,800 75,000 105,900 153,800 244,000CONTRACTOR DAY RATESBY REGIONOperator/Technician Intermediate SeniorManager Lead/Principal VP/DirectorNorthern Europe 430 490 720 850 1,130Western Europe 390 360 550 770 940Eastern Europe 300 250 340 460 N/ACIS 350 440 580 830 880Middle East 250 320 400 610 1,000North Africa 310 300 440 560 N/AWest Africa 320 350 610 750 N/AEast/South Africa 310 270 450 820 790South East Asia 330 320 450 750 1,060North East Asia 240 340 630 940 1,260Australasia 690 700 940 1,330 1,590North America 420 490 760 840 1,110South America 340 320 480 630 N/AYEARLY SALARY CHANGES BY COMPANY TYPE+6.4%+11%+8.4%+16.7%+5.6%+9.1%+11.8%ConsultancyContractorEPCMEquipmentManufacture& SupplyGlobal Super MajorOil Field ServicesOperator2013 $96,0002013 $83,0002013 $98,9002013 $71,9002013 $107,7002013 $73,4002013 $115,5002012 $90,2002012 $74,8002012 $91,2002012 $61,6002012 $102,0002012 $67,3002012 $103,300
    • SECTIONTWO:INDUSTRYBENEFITSThe rise in bonuses continues andnow represents the dominant mechanismby which companies attract and retaintheir talent.SECTION TWOINDUSTRY BENEFITSBonuses account for rise in benefits.10 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 115 LARGEST INCREASES IN BENEFITS Value of the benefit as apercentage of the overall package2013 2012 IncreaseBonuses 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%
    • 12 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 13SECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONFOUR:ECONOMICOUTLOOKSECTIONONE:SALARYINFORMATIONSECTIONTWO:INDUSTRYBENEFITSINDUSTRY BENEFITSCompany benefitsINDUSTRY BENEFITSOverview of industry benefitsThe significant figure in our data here is that the number of people notreceiving benefits has once again dropped, this year to just under 35 percent. We know from our own activities that benefits and allowances are avital part of recruitment in the industry, where tailoring to the individual,the project and the business are increasingly commonplace. In this waycompanies are able to engage far more with the individual they areseeking to employ and retention rates are bolstered. To some, the factthat 35 per cent do not receive any benefits is still incredible.The main mechanism by which employers are engaging with candidatesis through bonuses and this is where we have seen the largest growth,rising 7.8 per cent since 2011 to a total of 42.8 per cent of ourrespondents receiving some sort of bonus. Healthcare and home leaveallowances were the two other movers in 2012 rising 3.16 per cent and2.56 per cent respectively.In terms of what these benefits were worth to individuals there was not agreat deal of change from 2011. Tax assistance rose slightly as a percentageof what it is worth, however, slightly fewer were receiving it, so it has notmade much of an impression on the overall remuneration pool.Breaking down the data into company types we see a similar patternacross all sectors. The exceptions included a jump in healthcare provisionwithin equipment manufacturers and global super majors, along withhome leave allowance showing a small increase across the board.Almost 65 per cent of the respondents receive somebenefit or allowance above their base pay, the highestrate of participation since the survey was launchedfour years ago.Background: The bar chart shows two figures related to benefits thatemployees in the oil and gas industry receive. The first figure represents thepercentage of respondents that receive that particular benefit, i.e. 42.8% ofrespondents receive some sort of bonus. The second figure represents thevalue of that benefit stated as a percentage of their overall package forthose that receive it, which in the case of bonuses is 13.8%.13.8%16.5%10.2%16.1%12.7%12.1%10.8%12.0%10.8%14.4%10.2%12.6%17.9%17.5%12.9%42.8%10.4%7.5%6.7%9.5%14.3%18.9%6.7%26%7.8%19.1%10.8%19.2%15.1%18.2%34.6%BonusesHardshipallowanceCommissionHazardousdanger payTax AssistanceMeal allowancePensionShare schemeHealth PlanSchoolingCar/Transport/PetrolTrainingHousingOvertimeHome leaveallowance/flightsNo BenefitsPercentagethat receivethe benefitAveragepercentage of theirtotal packageOVERVIEW OF INDUSTRY BENEFITSTOP BENEFITS BY COMPANY TYPEOvertime17%Meal allowance13%Home leave allowance/flights19%Home leave allowance/flights15%Housing19%Car/Transport/Petrol23%Car/Transport/Petrol18%Car/Transport/Petrol16%No BenefitsNo BenefitsNo BenefitsNo Benefits39%30%30%38%Health Plan23%Pension22%Pension24%Pension15%Home leave allowance/flights18%Housing16%Housing20%Housing16%Car/Transport/Petrol18%Health Plan28%Health Plan29%Health Plan22%BonusesBonusesBonusesBonuses35%42%43%33%EPCM/CONTRACTOREQUIPMENT MANUFACTURER & SUPPLYGLOBAL SUPER MAJOR/OPERATOROILFIELD SERVICES/CONSULTANCYBackground: Graphs here show the top benefits by company type and the percentage of people who receive them.
    • 14 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 15SECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONFOUR:ECONOMICOUTLOOKINDUSTRY BENEFITSRegional benefitsINDUSTRY BENEFITSRegional benefitsTOP BENEFITS BY REGIONOvertimeMeal allowanceHome leave allowance/flights20%Overtime9%9%Overtime11%19% Overtime18%Meal allowance14%Meal allowance24%Car/Transport/PetrolCar/Transport/PetrolHousingCar/Transport/Petrol20%12%11% Car/Transport/Petrol13%24%Housing29%Housing17%Car/Transport/Petrol17%No Benefits No BenefitsNo Benefits No BenefitsNo Benefits No BenefitsNo Benefits No Benefits36% 49%43% 34%26% 27%40% 25%PensionPensionHealth PlanPension19%22%27%Pension22%29%Health Plan24%Pension12%Pension21%Home leave allowance/flightsHome leave allowance/flightsHousing21%Meal allowance7%10%Training10%22%Home leave allowance/flights26%Home leave allowance/flights19%Housing13%Health PlanHealth PlanCar/Transport/PetrolHealth Plan25%19%12%Health Plan35%24%Car/Transport/Petrol22%Health Plan20% Health Plan39%Bonuses BonusesBonuses BonusesBonuses BonusesBonuses Bonuses37% 30%33% 37%43% 40%30% 39%AFRICA EUROPEAUSTRALASIA NORTH AMERICAASIA MIDDLE EASTCOMMONWEALTH OF INDEPENDENT STATES SOUTH AMERICATOP BENEFITS BY REGIONSECTIONONE:SALARYINFORMATIONSECTIONTWO:INDUSTRYBENEFITSAs with previous years Asia remains theregion in which more allowances and benefitsare paid out as a percentage of the overallpackage than any other region. The MiddleEast is not far behind, with Africa and SouthAmerica next. Europe and North Americacontinue to weight their salaries towards basicsalary and consequently benefits are relativelylight in comparison.In terms of regional differences we identified anumber of interesting patterns. In SouthAmerica health plans are given to far moreemployees than any other region. They alsopay out a high proportion of meal allowances,at a level not seen elsewhere.  In Asia there isa distinct absence of pension payments, aswell as overtime. This was offset by having thehighest payments of bonuses.Whilst the Middle East and Asia continue todeliver higher levels of benefits across mostcategories, this is in the most part offset bylower basic salaries. Indeed the interrelationship between base salary and benefitsshould not be ignored when consideringregional differences in overall remuneration.Perhaps even more of a factor for someregions is the level of tax on gross pay, andthis is where the majority of the Middle Eastclearly plays its trump card, having a zero taxon earnings.Background: Graphs here and overleaf show the top benefits by region and the percentage of people who receive them. CIS includes Russia and theformer Soviet Republics.
    • 2013 Oil & Gas Salary Guide | 17SECTIONTWO:INDUSTRYBENEFITSSECTIONFOUR:ECONOMICOUTLOOKSECTIONTHREE:INDUSTRYEMPLOYMENTINDUSTRY EMPLOYMENTStaffing levelsSECTIONTHREE:INDUSTRYEMPLOYMENTSECTION THREEINDUSTRYEMPLOYMENTConfidence remains high with almost a quarterof employers expecting salaries to rise by10 per cent or more in the next year.SECTIONONE:SALARYINFORMATIONConfidence levels in the industry on staffingdemand remains high, in line with rising salarycosts. However, the level has come off from2012 albeit only slightly. Through the latterpart of 2011 and early 2012 European debtworries dominated business confidence. Asthe year progressed the possibility of seriousfinancial melt-down in Europe receded andthe markets became similarly afflicted withconcern for the downturn in growth withinChina, an economy that has helped to prop upglobal activity for the last few years. Thisconcern is having an impact on the widereconomy, however, less so in the oil and gasworld. Energy demand continues to edge upand demand for skills continue to outstripsupply in many regions.The contractor base in the industry hasremained relatively static since 2011. We alsosee the use of contractors has continued topredominate in the construction andinstallation disciplines. However, looking aheadthe market does not have the sameconfidence as last year that this contract basewill increase. While it is still high, more of oursample believes contractor numbers willremain static.Interestingly, the use of expats appears to befalling, with more than 20 per cent of thoseresponding stating that their company did notemploy people on an expat basis. This is verymuch in line with the increasing trend tolocalise the workforce. The level of thoseexpecting the number of expatriates toincrease remains stubbornly high however.This was the same in 2011, despite this year’sdata showing a contraction in expat usecontradicting that forecast.CONFIDENCE THAT STAFFING LEVELSWILL CHANGE IN THE NEXT 12 MONTHSPERCENTAGE OF STAFF EMPLOYEDON A TEMPORARY OR CONTRACT ASSIGNMENTPERCENTAGE OF WORKFORCEEMPLOYED AS AN EXPATDISCIPLINE AREAS IN WHICH CONTRACTORSARE EMPLOYED IN OIL AND GASOps, Maintenance & ProductionPetrochemicalsProject ControlsHSE & QAQCGeoscience & Petroleum EngineeringEquipment & SupplyEngineering & DesignDrilling & Well DeliverySubsea/Pipelines48.3% 38.8% 12.9%39.5% 35.7% 24.8%43.7% 45.5% 10.8%46.5% 38.3% 15.2%30.5% 44% 25.5%37.6% 42.7% 19.7%40% 43.7% 16.3%32.8% 41.7% 25.5%36.1% 45.3% 18.6%Always Sometimes NeverEXPECTATION THAT CONTRACTORLEVELS WILL CHANGE IN THE NEXT 12 MONTHSEXPECTATION THAT EXPATLEVELS WILL CHANGE IN THE NEXT 12 MONTHS39.6%Increase43.4%Increase44.3%Remain the same48.5%Remain the same16.1%Decrease8.1%DecreaseRemain static NoneNone22.9% 12.5%21.1%Increase between 5-10% Between 5-20%Between 5-10%23.9% 29.7%22.8%Decrease5.2%Increase up to 5% Up to 5%Up to 5%23.2% 18.9%20.1%Increase more than 10% More than 20%More than 10%24.8% 38.9%36%16 | 2013 Oil & Gas Salary Guide
    • 18 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 19SECTIONTWO:INDUSTRYBENEFITSSECTIONFOUR:ECONOMICOUTLOOKINDUSTRY EMPLOYMENTDiversity & movement of workforceINDUSTRY EMPLOYMENTDiversity & movement of workforceSECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONONE:SALARYINFORMATIONDisappointingly we didn’t find an increase inthe number of women working in the industry.With skill shortages as they are this appearsto be the ideal time to take advantage of whatshould be a sizeable proportion of theworkforce, unfortunately it appears anopportunity missed. Regionally the Americasare faring better than other regions, as theonly two continents with more than 10 percent of female workers. The Middle East,Africa and Asia are once again at the lowerend of the scale.The spread of discipline splits amongstwomen in the industry remains the same aslast year, with Business Development, ProjectControls and HSE as the largest sectors ofemployment for females.There has been a small aging of the workingpopulation within our sample and this is in linewith the years of experience as documentedin the figure below. While overall the globaldata does not show any significant issues withdemographics, the same cannot be said ofspecific markets. The market with the mostacute issue is the US with more than 55 percent of respondents over 50 years of age. Webelieve that this is already driving the highdemand for talent in the US and Canada, thatwould appear to exceed current project andproduction needs.In line with our own experience, the numberof oil and gas professionals working overseascontinues to increase. In 2012 this percentagehas risen to 47.4 per cent, up from theprevious year’s figure of 42.6 per cent. Thistrend is due to a number of factors, primarilythe promotion of inward skilled migration bynation’s governments that facilitates thegrowth. With skill shortages as they are, wedo not expect it will be long before there aremore oil and gas professionals overseas thanthere are in their own home countries.Of all the sections in this report, this one givesus the most insight into the markets aroundthe world and how they are faring. High levelsof project work, lack of home grown talentand drives on localising the workforce can allbe identified within these figures.In Australia, the overall percentage of importsdropped, however we also know that theworkforce grew at a significant rate, and thisdemand was filled with Australian nationals.The proportion of Australian nationals workingat home once again grew for the third yearrunning. The Middle East continues to be thelargest importer of skills, although localisationof staff levels did manage to make a smalldent in the levels of those imported. In Asiathere was a significant increase in localparticipation, again we believe due to thosereturning home to higher rates of pay.Moving the other way we saw something of anexodus of foreign nationals from Europe, mostof which were heading east to chase thedollars. Africa continued to increase its importsas did South America as wages increased.In terms of nationals working overseas (seetable below) the figures support three bigmovers in the export of staff. These include;Asian nationals, primarily from thesub-continent, but also the Philippines andChina; Africa, with nationals mostly headingnorth to Europe; and more recently as thedata shows South Americans heading to bothEurope and North America.9.1%5.9%6.5%22.4%5.6%22.9%8.3%17.6%8.3%12.0%3.1%6.8%10.2%6.6%1.3%10.3%3.9%0.5%49.4%28.8%50.6%71.2%90.9%2.6%18.2% 81.8%48.1% 51.9%35.6% 64.4%23.8% 76.2%14.2% 85.8%43.2% 56.8%58.9% 41.1%34.7% 65.3%86.4% 13.6%23.5% 76.5%27.8% 72.2%31.5% 68.5%33.0% 67.0%42.5% 57.5%93.5%12.4%94.4%16.2%91.7%14.0%91.7%13.6%96.9%12.0%89.8%11.3%6.1%89.7%9.3%2.5%AustralasiaAustralasiaAustralasia24 and underAsiaAsiaAfricaAfricaEuropeEuropeCISCISMiddle EastMiddle EastNorth AmericaNorth AmericaSouth AmericaSouth AmericaAsia25-29Africa30-34Europe35-39CIS40-44Middle East45-49North America50-5460-64South America55-5965 and overImported labourWorking overseasMaleMale Local labourWorking in home countryFemaleFemaleIMPORTED WORKFORCE VERSUS LOCAL WORKFORCEWORKING OVERSEAS VERSUS WORKING IN HOME COUNTRYREGIONAL GENDER DIFFERENCESMOVEMENT OF THE WORKFORCEDIVERSITY OF STAFF AGE DEMOGRAPHICSWORKING AT HOME OR ABROAD52.6%Home47.4%Abroad
    • 20 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 21SECTIONTWO:INDUSTRYBENEFITSSECTIONFOUR:ECONOMICOUTLOOKINDUSTRY EMPLOYMENTExperience and tenureINDUSTRY EMPLOYMENTExperience and tenureSECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONONE:SALARYINFORMATIONIn 2012 we reported a large influx of new andexperienced hires into the oil and gas industry.This saw record numbers of people in the zeroto four years experience bracket. This yearthese numbers remain high, although somehave moved through into the following bandwith the net effect of increasing theexperience levels across the whole sample.The changes, however, are relatively small andindicate a more ‘steady state’ market than inprevious years when the market was emergingfrom a downturn.In terms of disciplines, the construction andproject controls figures have both increasedtheir average experience level. This wouldsuggest that the wave of projects comingthrough the industry has gone through its peakand the big ‘flex’ in headcount (those with zeroto four years experience) is behind us.There was little change in most of theother disciplines, including those in thesub-surface areas.Again we have seen only a small change in thetenure of respondents with a small increase.As the market settles into this particular cyclewe would expect tenure to continue toincrease, albeit gradually. Should the marketturn down then this may well accelerate as‘last in: first out’ principles start to take hold.Last year we started to measure where oil andgas professionals sought their new roles. Torecruiters there are a number of usefulobservations that we can see derive fromnumbers. Firstly that traditional newspaperadvertising continues to disappear as a sourceof job hunting. We also saw a small decline inthose seeking work through internal companywebsites, or internal moves. On the increasewas head hunting and the use of agencies. Jobboard use remains level at just over 15 per cent.Tenure edged up slightly from last year’s figures,reflecting a less volatile market but one whichcontinued to drive hiring.YEARS OF EXPERIENCETIME IN CURRENT ROLESOURCE OF NEW EMPLOYMENTOIL & GAS INDUSTRY20132012FOR SPECIFIC DISCIPLINE AREAS20 + years10-19 years5-9 years0-4 yearsConstruction/InstallationProjectControlsGeoscienceSubsea/Pipelines21.8%27.1%21.6%21.8%19.6%25.1%24.5%25.1%27.8%23.7%25.5%23.4%30.8%24.1%28.4%29.7%28.3%0-4 years24.6%Less than 1 year26.0%Less than 1 year23.4%5-9 years29.2%1-2 years25.0%1-2 years23.5%10-19 years24.7%3-5 years28.7%3-5 years24.8%20+ years13.7%6-10 years12.0%6-10 years7.8%10+ years8.3%10+ yearsNewspaper Company website Online job board Word of mouthHead hunted Agency Internal move Other6.1%15.0%21.0%16.0% 14.5%7.9% 7.1%12.4%
    • 22 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 23SECTIONTWO:INDUSTRYBENEFITSSECTIONFOUR:ECONOMICOUTLOOKINDUSTRY EMPLOYMENTEmployment mixINDUSTRY EMPLOYMENTEmployment mixSECTIONTHREE:INDUSTRYEMPLOYMENTSECTIONONE:SALARYINFORMATIONIn last year’s data we saw most companies(outside of the constructors/installers)changing their mix of employment to includemore permanent staff, at the expense ofcontractors (direct or through an agency). Thiswas appropriate for a market where confidencewas sky high.This year, as confidence has come off its highs,we’ve seen the trend reverse with employersseeking more flexibility in their workforce. Themost pronounced shift occurred within thesuper majors and operators, closely followed bythe consultancies.EMPLOYMENT MIX BY COMPANY TYPEPERCENTAGE CHANGE FROM 2012 to 2013ContractorsConsultancyOil Field ServicesEquipment Manufacturer& SupplierEPCMOperatorsGlobal Super Major47.1%42.9%60.9%80.7%53.1%59.5%52.6%2.5%3.3%3.5%2.0%1.6%1.4%1.5%26.4%27.4%20.2%10.3%24.6%14.9%14.2%24.0%26.4%15.4%7.0%20.7%24.2%31.7%Permanent Permanent/Part-TimeContractedDirectContractedthroughagency5.1%1.6%0.0%0.4%5.9%0.3%4.8%-0.6%0.0%-0.9%-0.1%-1.3%-1.6%-0.8%2.4%1.4%0.4%1.2%0.1%-0.5%1.3%-6.9%-3.1%0.5%-1.5%-4.7%1.8%-5.3%GLOBAL SUPER MAJOREPCMOIL FIELD SERVICESCONTRACTORSOPERATORSEQUIPMENT MANUFACTURER & SUPPLIERCONSULTANCYMost of last year’s gainsin permanent hires werereversed this year aseconomic concern saw amove towards more flexibleemployment solutions.
    • SECTIONFOUR:ECONOMICOUTLOOKSkill shortages are now by far the majorconcern for employers in the industry.SECTION FOURECONOMIC OUTLOOKConfidence was delicately balanced in the year with high profitsfrom a buoyant oil price offset by concerns over European debtand a slowdown in China’s growth.24 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 25employer’s concerns in the current employment market37.3%Skills shortages7.2%Immigration/overseasvisa program25.3%Economic instability8.1%Security/safety causedby social unrest11.8%Environmentalconcerns1.6%Other8.7%Safety regulations
    • 26 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 27SECTIONTWO:INDUSTRYBENEFITSSECTIONTHREE:INDUSTRYEMPLOYMENTECONOMIC OUTLOOKIndustry outlookECONOMIC OUTLOOKMost significant issuesSECTIONFOUR:ECONOMICOUTLOOKSECTIONONE:SALARYINFORMATIONThese figures remain largely in line with 2011,which represents high levels of confidence incomparison to figures given in other years. Thisis a pleasing result for those involved in talentacquisition, showing that the market still has agreat deal to offer both employers and jobseekers alike. In 2008, before the economicdownturn, the skill shortages were acute in afew select places. This caused salaries to spiralupwards, jeopardising many of the projectsthat caused the demand in the first place.This cycle has seen widespread demand, butwithout the critical spikes. This said it is withoutdoubt that investment ‘rates of return’ arebeing tested in such locations as Australia andBrazil, however, we are yet to see this stallproject development.The key factors affecting the market in late2012 included, on the positive side, a high oilprice, driven by growing energy demand. Thisis giving operators plenty of revenue to drivedevelopment. Balancing this positive sentimentis concern around China’s growth and whetherEurope will re-emerge as the trigger to create a‘meltdown’. For now both forces are balancingeach other and producing a steady, buoyantmarket. It would, however, not take much topush the markets out of kilter either way, so it iswith some interest that we enter 2013. Whetheror not the current positive feeling turns totrepidation we will have to wait and see.In terms of the worries for employers in theindustry, it is clear that skill shortages are theirnumber one concern. This is a change from lastyear when this issue was on a par with thosearound the economy, and would indicate thatthe pendulum continues to swing towards acandidate-led market.Economic worries were conversely waning aswere those concerns around environmentalfactors and safety. Social unrest andimmigration issues remain steady and atrelatively low levels.EMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET2013201226.0%Extremely positive26.7%Extremely positive47.8%Positive46.8%Positive20.7%Neutral20.8%Neutral5.5%Negative5.7%NegativeEMPLOYER’S CONFIDENCE IN THE CURRENT EMPLOYMENT MARKETMiddle EastNorth AmericaSouth AmericaEuropeCISAustralasiaAsiaAfricaAll 37.3% 25.3% 11.8% 8.7% 7.2% 8.1%SkillsshortagesEconomicinstabilityEnvironmentalConcernsSafetyregulationsImmigration/overseas visaprogramSecurity/Safetycaused bysocial unrestOtherEMPLOYER’S GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS OUTSIDE THEIR OWN REGIONAL AREAMiddle East Europe CIS AustralasiaAfricaAsia South America North America16.6% 13.4% 13.3%12.2% 10.4% 9.5% 8.3%16.3%
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