THE OIL & GAS GLOBAL SALARY GUIDE 2012 Global salaries and recruiting trends.
SURVEY SUMMARY DISCIPLINE AREAS COVERED
24
COUNTRIES WORLDWIDE REPRESENTED
53
RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR
1,200+
RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY
5,400
PEOPLE RESPONDED TO THE SURVEY
14,400+
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 help support 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.
Contents 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.
2 A global perspective
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.
9 Contractor day rates by region
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.
Section one - salary information 6 Overview and salaries by country 7 Salaries by discipline area 8 Salaries by company type
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
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 to compare 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
A GLOBAL PERSPECTIVE
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.
GULF OF MEXICO The region sees a strong recovery in employment following the Horizon disaster of the year before.
PRE-SALT FIELDS, BRAZIL The Brazilian government pursues its ambitious plans to develop the deep water pre-salt fields with multi-billion dollar investments.
WEST AFRICA Further discoveries and a lack of social disruption continue to serve the region well. Salaries rise for both imported talent and a growing body of local skills.
OIL & GAS SALARY GUIDE 2012
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.
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.
MIDDLE EAST Iraq proves to be the major draw card in the region for new projects as the country starts to develop its extensive oil reserves.
Section one salary information Permanent salaries rose 6.1% over the last 12 months.
OIL & GAS SALARY GUIDE 2012
SECTION ONE - SALARY INFORMATION SECTION TWO - INDUSTRY BENEFITS
Almost 50 per cent of respondents experienced an increase of more than 5 per cent to their salary compared to just under 30 per cent of respondents in 2011. A higher number of respondents also expect salaries to increase more than 10 per cent in the new year. changes to salaries in the last 12 months 2012 Increase more than 5%
0
16.6%
29.7%
Increase up to 5%
4.2% 100
20
40
60
80
0
2011
20
40
60
80
100
0
20
40
60
80
100
40
60
0
29.4%
20
20.4%
39.7%
80
Remain static Decrease
SECTION THREE - INDUSTRY EMPLOYMENT
49.5%
10.5%
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
40
60
80
100
0
20
32.4%
40
0
20
40
60
80
100
0
20
40
60
80
1% 100
expected salary change in the next 12 months
2012 Increase more than 10%
20.9%
80
15.7%
100
0
20
40
60
80
100
0
20
40
60
80
100
60
80
0
21.6%
20
40
25.3%
28%
21.9%
100
0
20
40
60
80
100
0
20
40
60
80
3.2% 100
Increase between 5-10% Increase up to 5% Remain static
SECTION FOUR - ECONOMIC OUTLOOK
2011
30%
60
Decrease
SALARY INFORMATION salaries
SALARY
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 led to 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 softening in the last few months of 2011, and day rates struggling to maintain previous levels.
OIL & GAS SALARY GUIDE 2012
Annual SALARies By Country
Local average annual salary
Imported average annual salary
Algeria
40,600
89,200
Angola
48,400
107,700
Argentina
68,800
N/A
Australia
164,000
173,100
Azerbaijan
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
67,100
Singapore
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
Operator/ Technician
Graduate
Intermediate
Senior
Manager Lead/ Principal
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
166,300
Drilling
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
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.
SECTION TWO - INDUSTRY BENEFITS
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 engineers showed 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.
SECTION THREE - INDUSTRY EMPLOYMENT
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 will inevitably 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’.
VP/ Director
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.
SECTION FOUR - ECONOMIC OUTLOOK
Annual Salaries BY Discipline area
SECTION ONE - SALARY INFORMATION
SALARY INFORMATION SALARIES
SALARY INFORMATION salaries aNNUAL SALARIES By Company Type
Operator/ Technician
0
Consultancy
2044,600
40
Graduate
Intermediate
Senior
Manager Lead/ Principal
VP/ Director
32,700 60
80 46,800
100 76,000
120,300
146,800
51,300
65,800
101,900
142,500
Contractor
46,300
31,300
EPCM
49,500
36,400
51,700
79,400
120,600
172,300
Equipment 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
51,000 20
48,700
72,300 80
97,400 100
149,200
221,400
Operator
0
40
60
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.
Yearly salary changes by company type
+5%
2012 $90,200
Consultancy
2011 $85,700
Contractor
EPCM
Equipment Manufacture and Supply
Global Super Major
Oil Field Services
Operator
-1.1%
2012
$74,800
2011
$75,600
2012
$91,200
2011
$87,000
2012
$61,600
2011
$62,900
2012
$102,000
2011
$100,800
2012
$67,300
2011
$64,100
2012
$103,300
2011
$97,500
0
+4.6%
-2.2%
+1.1%
+4.8%
20000
+5.6%
40000
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 local employees (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.
OIL & GAS SALARY GUIDE 2012
60000
80000
100000
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 per cent last year to approaching 55 per cent this year.
120000
Intermediate
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
830
Middle 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
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.
SECTION TWO - INDUSTRY BENEFITS
Operator/ Technician
CONTRACTOR Day RATES By Region
SECTION ONE - SALARY INFORMATION
SALARY INFORMATION SALARIES
Whilst the exchange rate movements through the year can account 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.
SECTION THREE - INDUSTRY EMPLOYMENT
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.
SECTION FOUR - ECONOMIC OUTLOOK
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.
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.
Section two industry benefits Benefits rise in the form of incentives.
10
OIL & GAS SALARY GUIDE 2012
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
Value of the benefit as a percentage of the overall package
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%
11
INDUSTRY BENEFITS overview of industry benefits
SALARY INFORMATION 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 grown out 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.
overview of industry benefits
50
Percentage that receive the benefit Average percentage of their total package
40 30 20
12
7.3% 11.9%
Hazardous/danger pay
Meal allowance
Share scheme
8.1%
14%
10.9% 12.7%
14.8% 16.5% 40.2%
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 of that benefit stated as a percentage of their overall package for those that receive it, which in the case of bonuses is 13.7%.
OIL & GAS SALARY GUIDE 2012
No benefits
14.1% 12.2%
Overtime
7.2% 14.9%
Training
8.5% 14.8%
Schooling
15.6% 12.8%
Hardship allowance
17.6% 10.7% 17.8% 17.6%
Home leave allowance/flights
28.8% 11.4%
Housing
17.2% 11.3%
Car/transport/petrol
11%
Health plan
10%
Pension
8.9% 8.8%
Tax assistance
35% 13.7%
Commission
0
Bonuses
10
SECTION ONE - SALARY INFORMATION
INDUSTRY BENEFITS company BENEFITS
In terms of company type, operators and the majors continued to distribute more benefits to 40 40 50 50 their workforce than any other group at just over 30 30 40 40 29.5 per cent of overall package. 20 20 30 50 50
SECTION TWO - INDUSTRY BENEFITS
30 10 10 20 20 00 10 10 00
top benefits by company type
40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10
19%
17%
SECTION THREE - INDUSTRY EMPLOYMENT
Overtime
50 50
18%
33% No benefits
Home leave allowance/flights
16%
21%
17%
17%
15%
42% No benefits
Background: Graphs here show the top benefits by company type and the percentage of people who receive them.
SECTION FOUR - ECONOMIC OUTLOOK
33%
Home leave allowance/flights
0
Housing
0
Car/transport/petrol
35%
Health plan
16%
Pension
17%
Bonuses
19%
No benefits
22%
Overtime
21%
Meal allowance
41%
Housing
0
Health plan
0
28%
equipment manufacturer & supply oilfield services/consultancy
Bonuses
40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10
0
23%
Home leave allowance/flights
Housing
50 50
0
43%
Car/transport/petrol
17%
Health plan
16%
Pension
17%
No benefits
16% Car/transport/petrol
0
21%
Car/transport/petrol
0
32%
Health plan
40 40 50 50 30 30 40 40 20 20 30 30 10 10 42% 20 20 0 0 10 10
Bonuses
40 40 50 50 30 30 40 40 20 20 30 30 10 10 20 20 0 0 10 10
Housing
Global super major/operator 50 50
Bonuses
EPCM/CONTRACTOR 50 50
13
INDUSTRY BENEFITS regional BENEFITS 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.
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.
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.
top benefits by region Africa asia
18%
19%
28%
50 40
australasia
0
40
40 20 30 10
30 10
20 0
20 0
22%
23%
18%
25%
commonwealth of independent states
On average, benefits received by those working in CIS are valued at 23% of their total package.
35%
Health plan
Car/transport/petrol
Schooling
Training
No benefits
0
33%
13%
19%
13%
15%
13%
37% No benefits
8%
Meal allowance
8%
Home leave allowance/flights
11%
Housing
14%
Health plan
17% Pension
10 38% Bonuses
10 0
27%
50
On average, benefits received by those working in 50 Australasia are valued at 17% of their total package.30 40 20
50 30
18%
Pension
0
10
42%
Bonuses
10
20 0
No benefits
21%
Overtime
19%
Housing
24%
Car/transport/petrol
33%
20 0
Health plan
30 10 Pension
30 10
On average, benefits received by those working in Asia are valued at 36% of their total package.
Bonuses
40 20
No benefits
40 20
Meal allowance
50 30
Home leave allowance/flights
50 30
Housing
40
Car/transport/petrol
40
Health plan
On average, benefits received by those working in 50 Africa are valued at 34% of their total package.
Bonuses
50
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 50OIL & GAS SALARY GUIDE 2012
40
50 40
0
0
50
50
40 50 30 40 20 30 10 20 0 10
40 50 30 40 20 30 10 20 0 10
0
0
INDUSTRY BENEFITS regional BENEFITS SECTION ONE - SALARY INFORMATION
40 20 30 10 20 0 10
SECTION TWO - INDUSTRY BENEFITS
40 20 30 10 20 0 10
Top benefits by region europe middle east
No benefits
26%
23%
19%
SECTION THREE - INDUSTRY EMPLOYMENT
Overtime
21%
25%
north america south america 40
Housing
Overtime
No benefits
37%
15%
34%
22%
31%
12%
28%
SECTION FOUR - ECONOMIC OUTLOOK
Car/transport/petrol
0
No benefits
30%
Training
12%
Meal allowance
8%
Car/transport/petrol
12%
Health plan
32%
Pension
21%
On average, benefits received by those working in South America are valued at 33% of their total package.
Bonuses
36%
Health plan
On average, benefits received by those working in 50 30 North America are valued at 21% of their total package. 40 20 30 10 20 0 10 Pension
0
50
Bonuses
40 50 30 40 20 30 10 20 0 10
22%
No benefits
Meal allowance
50
0
38%
Overtime
43%
Home leave allowance/flights
8%
Housing
8%
Car/transport/petrol
14%
Health plan
19%
On average, benefits received by those working in the Middle East are valued at 32% of their total package.
Bonuses
21%
Car/transport/petrol
0
29%
Health plan
40 50 30 40 20 30 10 20 0 10
Pension
40 50 30 40 20 30 10 20 0 10
Bonuses
50
On average, benefits received by those working in 50 Europe are valued at 16% of their total package.
15
Section three industry Employment Over a fifth of all employers expect salaries to increase by more than 10 per cent in the next year.
16
OIL & GAS SALARY GUIDE 2012
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 since this 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.
What percentage What percentage of your ofstaff yourisstaff currently is currently What percentage of your staff is currently What What percentage percentage ofstaff youremployed is staff currently isbasis currently employed employed on a temp/contract onofof ayour temp/contract basis Percentage staff on a employed on a temp/contract basis temporary contract assignment employed employed on a temp/contract onor a temp/contract basis basis
SECTION TWO - INDUSTRY BENEFITS
staffing levels
In theIn next the12 next Months 12 Months do youdo you In the next 12 Months do you In theIn next the12 next Months 12 Months do you do you expect expect Staffing Staffing levels levels to: to: Confidence that expect Staffing levels to: staffing levels will change in the nextto: 12 months expect expect Staffing Staffing levels levels to:
SECTION ONE - SALARY INFORMATION
INDUSTRY EMPLOYMENT STAFFING LEVELS
4.3% Increase more than 10%
26.1% In the next 12 Months do you Increase between 5-10% 21% expect Staffing levels to: Increase up to 5%
More than 20%
11.3%
What percentage of your staff Between 5-20% is currently 37.2% employed on a temp/contract basis 0-5% 21.9%
Remain static Decrease
29.6%
If yourIfcompany your company employs employs contractors, contractors, If your company employs contractors, If yourIf company your company employs contractors, contractors, please please indicate indicate in inemploys which areas: areas: areas inwhich which contractors are please indicate which areas: pleaseplease indicate indicate in which in which areas: areas: employed in oil and gas
How you Howexpect you expect this percentage thiscontractor percentage to tolevels expectation How you expect thisthat percentage to How you How expect you expect this percentage this percentage to to change change in the in next the 12 next months? 12 months? will change inmonths? the next 12 months change in the next 12 change change in the in next the 12 next months? 12 months? How you expect this percentage to
If your company employs contractors, please indicate in which areas:
change in the next 12 months?
Always
Engineering
Remain the same
45.9%
Never
Drilling
Increase
16.3%
Sometimes
Geoscience
SECTION THREE - INDUSTRY EMPLOYMENT
25.3%
23.3%
None
Decrease
Construction/Installation
37.8%
Project controls
0 20 40 60 80 100 001 08 06 04 02 0 0 1 08 08 06 06 04 04 02 02 0 0 0 8 0 6 0 4 0 2 0 What percentage of your workforce is 0 1 08 08 06 06 04 04 02 02 0 0
currently employed on an expat What percentage What percentage of your ofworkforce your workforce is package is What percentage of your workforce is percentage ofan workforcE What What percentage percentage of on your of workforce your is employed is currently currently employed employed on expat anworkforce expat package package currently employed on an expat package as employed an expat currently currently employed on anon expat an expat package package
How do you expect this to change in the next 12 months How do How youdo expect you expect this tothis change to change in the in the How do you expect this to change in the expectation that expat levels How 12 do How you doexpect you expect this tothis change to change in thein the next next months 12 months next 12 months will change next 12 next months 12 monthsin the next 12 months
6.8%
Increase more than 10%
18.9% 34.9%
Increase
Increase between 5-10%
Remain the same
Increase up to 5%
20.6%
None
SECTION FOUR - ECONOMIC OUTLOOK
01 01 01
49.6%
Decrease
43.6%
25.6%
17
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
diversity of staff
Diversity of staff
gender in oil and gas women in oil and gas Diversity of staff
sity of staff Diversity of staff
0
0
50
20
20
40
60
Male 0 Age Bracket 20
40
60
80
80
100
40
60
100
80
51.2%
6.2%
Female 100
QA/QC
Diversity of staff
Diversity of staff
5040
Supply chain
9%
Age Bracket
5.4%
4.8%
Construction/installation Other
Age Bracket
30
0
20
40
60
80
100
40Demographics 20 50
Age Bracket
10 3040
Male Female
5.5%
17.4%
14%
12.4%
10.2%
10.3%
Based in country of origin
0
7.9%
3.1%
1.1%
7.7%
5.1%
1.7% 65+
16.9%
8.9%
50-54
10 0
5.6% 4.3%
17.2%
45-49
10
21.9% 27.1% in country Based of origin
50-54
2020
55-59
300
40-44
0
0
35-39
0
HSE
7.8%
30-34
0
Project controls 7.4%
92.2%
25-29
0
16%
-24
0
Business development
working at home or abroad
Based in country of origin
2012
Based in country of origin
100 80
57.3% Home
60
100
18 40 OIL & GAS SALARY GUIDE 2012
80
20
42.7% Abroad
30 40 20 30
0
Last year we reported a quick exit from the downturn in Australia, and a corresponding sharp increase in the number of Based in country of origin 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.
SECTION TWO - INDUSTRY BENEFITS
Since 10the bottom of the recession in 2009 the number of 20 people working overseas in oil and gas has been steadily increasing. This is consistent with employers having to search 0 afield to find the skills they require. However, there is still 10 further some way to go before the levels rise to those achieved in mid 2009 of over 45 per cent. Based in country of origin
SECTION ONE - SALARY INFORMATION
INDUSTRY EMPLOYMENT DIVERSITY & MOVEMENT OF WORKFORCE
MOVEMENT OF THE WORKFORCE IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE
Imported labour Local labour
100 80 100
SECTION THREE - INDUSTRY EMPLOYMENT
60 80 40 60
100 80 100
28.8% 71.2%
33.5% 66.5%
51.6% 48.4%
88.4% 11.6%
29.2% 70.8%
Europe
CIS
Middle East
North America
WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY
27.2% 72.8% South America
23.2% 76.8%
Africa
0
53.8% 46.2%
Asia
0 20
Australasia
20 40
Working overseas Working in home country
SECTION FOUR - ECONOMIC OUTLOOK
60 80 40 60 20 40
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%
Asia
Africa
Europe
CIS
Middle East
North America
South America
0
Australasia
0 20
19
INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE 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 employ new talent and seek to retrain.
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 attracted the most newcomers. In our experience this is where most skills can be transferred into oil and gas from other industries.
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.
Years of experience
0
20
40
60
80
100
Years of experience
YEARS OF EXPERIENCE OIL & GAS INDUSTRY 22.2%
36.3% 0
Construction/instrallation 20
40
geoscience
20.9%
0-4 years
20.6%
5-9 years 60
80
100
10-19 years
FOR SPECIFIC DISCIPLINE AREAS
20+ years
Construction/Installation
Project controls Construction/instrallation
geoscience
Geoscience
Subsea/Pipelines 0
0
20
20
20
OIL & GAS SALARY GUIDE 2012
40
40
60
60
80
80
100
100
timein incurrent current role Time role Time in current role Time in current role
2011
SECTION TWO - INDUSTRY BENEFITS
Tracking last year’s figures, tenure has remained static with just over 25 per cent of respondents 60 80 possessing2020less than one4040 year’s experience in their 60 80 current role. Again this indicates a busy market 0 20 deal of hiring 40 60 80 place. 100 with a great activity taking
2011 2011
2012 Less than 1 year
0
0
20
40
20
2011
0
20
40
60
40
60
20
40
12%
80
60
23.8%
24.7% 0
28.7%
25%
80
100
100
80
100
80
1-2 years 3-5 years 6-10 years More than 10 years
9%
11%
31.5% 60
8.3%
SECTION THREE - INDUSTRY EMPLOYMENT
26%
100
0
20
40
60
80
100
0
20
40
60
80
100
13%
15.1%
21.3%
13.6%
13.6%
8.3%
6.6%
Online job board
Word of mouth
Head hunted
Agency
Internal Move
Other
SECTION FOUR - ECONOMIC OUTLOOK
8.5%
Company website
source of new employment
Newspaper
0 0
SECTION ONE - SALARY INFORMATION
INDUSTRY EMPLOYMENT EXPERIENCE AND TENURE
21
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.
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 response to uncertainty around the general economy.
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.
employment mix by company type
Global Super Major
Permanent
Operators
Permanent / part-time
EPCM
Contracted direct
Equipment manufacturers & Suppliers
Contracted through agency
Oil Field Services Consultancy Contractors 0 0
20 20
40 40
60 60
Global Super Major
80 80
100 100
120
Operators
Percentage change from 2011 to 2012 global super major operators 0
20
40
60
Global Super Major
80
100
Operators
EPCM
7.5%
Equipment man.
5.2% 0.2%
0.7% -3.3%
-0.2%
-4.9%
EPCM Oil Field Services
22
120
OIL & GAS SALARY GUIDE 2012
-5.2%
Consultancy
Equipment man.
20
40
60
Global Super Major
80
100
120
INDUSTRY EMPLOYMENT EMPLOYMENT MIX
Operators
epcm equipment manufacturer & supplier EPCM 0
20
40
60
Global Super Major
80 Equipment man. 100
120
Operators -1.1.%
6.1% 0.6% EPCM
0.6% Equipment man.
0.1%
-6.8%
1.3%
SECTION ONE - SALARY INFORMATION
0
oil field services consultancy Oil Field Services
Consultancy
7.3%
8.3%
Contractor Oil Field Services
1.4%
0.5% Consultancy -3.9%
-1.7%
-8%
-3.9%
Contractor
Contractor Contractor
8.6% 0.1% -3.8% -4.9%
“the year saw a sharp rise in permanent staff as a percentage of the overall workforce”
SECTION THREE - INDUSTRY EMPLOYMENT
Consultancy Equipment man.
SECTION FOUR - ECONOMIC OUTLOOK
Oil Field Services EPCM
SECTION TWO - INDUSTRY BENEFITS
-0.8%
23
Section FOUR ECONOMIC OUTLOOK It was a good year for the Oil & Gas industry with confidence being led by a robust oil price.
24
OIL & GAS SALARY GUIDE 2012
the market continued to 15heat up so did the concern for skill shortages. This has grown 10 as a percentage of the overall 5sample from 28 per cent to over 030 per cent and now represents the largest concern of those in the industry. employer’s concerns in the current employment market 1.6% Skills shortages
8.3%
Economic instability
7.1%
30.6%
Environmental concerns
SECTION TWO - INDUSTRY BENEFITS
20As
SECTION ONE - SALARY INFORMATION
25
Security/safety caused by social unrest Other
13.3% 29%
SECTION FOUR - ECONOMIC OUTLOOK
Immigration/overseas visa program
SECTION THREE - INDUSTRY EMPLOYMENT
Safety regulations
10.1%
25
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.
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.
Whilst the majority of regions were experiencing solid growth this time last year, the Gulf of Mexico and the North 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.)
Employer’s confidence in the current employment market
2012 Extremely positive
26% 26.7% 0
20
2011
0
20
46.8% 40
60
5.7%
80
100
Positive Neutral Negative
40
60
9.7% 24.7%
0
20.8%
80
45.1%
20
40
100
33.4% 60
11.8% 80
100
25 0
20
40
60
80
100
20 employer’s geographical focus over next 12 months outside of their own regional area
15 10 5
26
10.7%
11.7%
10%
7.1%
10.2%
20.8%
8%
8%
13.5%
Central Asia
East Asia
Australasia
Eastern and Continental Europe
UK and Northern Europe
Middle East
North America
South America
Africa
0
OIL & GAS SALARY GUIDE 2012
This year we have included a new response which we have sought 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.
SECTION TWO - INDUSTRY BENEFITS
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.
employer’s concerns in the current employment market Skills shortages
All
Economic instability Environmental concerns
Africa
Safety regulations Immigration/overseas visa program
Asia
Security/safety caused by social unrest Other
Australasia
SECTION THREE - INDUSTRY EMPLOYMENT
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.
SECTION ONE - SALARY INFORMATION
ECONOMIC OUTLOOK most significant issues
Europe
Middle East
North America
South America 0
0
20
40
60
80
100
20
40
60
80
10
SECTION FOUR - ECONOMIC OUTLOOK
CIS
27
ABOUT HAYS COUNTRIES WORLDWIDE
32
offices worldwide
257
Consultants WORLDWIDE
7,620
PERMANENT CANDIDATES PLACED LAST YEAR
60,000
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 around 190,000 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.
28
OIL & GAS SALARY GUIDE 2012
© 2012 Copyright Oil and Gas Jobsearch.com Limited :: Part of The Jobsearch Group
29
United Kingdom Aberdeen T: +44 12 2459 2870 E:
[email protected]
United Arab Emirates Dubai T: +971 4 361 2882 E:
[email protected]
United Kingdom Manchester T: +44 161 975 6026 E:
[email protected]
London T: +44 203 465 0133 E:
[email protected]
India Mumbai T: +91 22 4248 2500 E:
[email protected]
Australia Perth T: +61 404 162 491 E:
[email protected]
China Beijing T: +86 10 6598 9122 E:
[email protected]
United Arab Emirates Dubai T: +971 4311 7175 E:
[email protected]
Russia Moscow T: + 7 495 228 2208 E:
[email protected] Poland Warsaw T: +48 22 584 5650 E:
[email protected]
Shanghai T: +86 21 2322 9600 E:
[email protected]
Netherlands Rotterdam T: +31 10 201 3700 E:
[email protected]
Singapore Singapore City T: +65 6303 0152 E:
[email protected]
France Paris T: +33 (0)1 42 99 16 60 E:
[email protected]
Australia Perth T: +61 8 9254 4579 E:
[email protected]
Canada Calgary T: +1 403 269 4297 E:
[email protected]
Melbourne T: +61 3 9670 2066 E:
[email protected]
United States Houston T: +1 866 420 4297 E:
[email protected] Mexico Mexico City T: + 52 (55) 5249 2500 E:
[email protected] Colombia Bogotá D.C. T: +57 (1) 313 58 67 E:
[email protected] Brazil Rio de Janeiro T: +55 21 2430 6600 E:
[email protected]
oilandgasjobsearch.com
Brisbane T: +61 7 3231 2962 E:
[email protected] Sydney T: +61 2 9249 2299 E:
[email protected] Adelaide T: +61 8 8212 5242 E:
[email protected] New Zealand Wellington T: +64 4 473 6860 E:
[email protected]
To find your local office please visit the Hays website: hays-oilgas.com
© Copyright Hays plc 2012 and Oilandgasjobsearch.com Limited. HAYS, the Corporate and Sector H devices, Recruiting experts worldwide, the HAYS Recruiting experts worldwide logo and Powering the World of Work are trade marks of Hays plc. The Corporate and Sector H devices are original designs protected by registration in many countries. All rights are reserved. The Oil and Gas Job Search logo is protected by trade mark and design laws in many jurisdictions. The reproduction or transmission of all or part of this work, whether by photocopying or storing in any medium by electronic means or otherwise, without the written permission of the owner, is restricted. The commission of any unauthorised act in relation to the work may result in civil and/or criminal action.
