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OIL & GAS
GLOBAL SALARYGUIDE 2013Global salaries and recruiting trends.
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PEOPLE RESPONDEDTO THE SURVEY
RESPONDENTS AREEMPLOYERS IN THEINDUSTRY
RESPONDENTS WORK WITHA GLOBAL SUPER MAJOR
COUNTRIES WORLDWIDEREPRESENTED
DISCIPLINE
AREAS COVERED
25,000+
8,200+2,500+
53
24
THANK YOUWe would like to express our gratitude to all those organisations and individuals who participatedn the collection o data or this years 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 inormativedocument to help support your business and employment decisions.
Disclaimer: The Oil & Gas Global Salary Guide 2013 is representative o a value added service to our clients and candidates. Whilst every care is taken in the collection andcompilation o data, the survey is interpretive and indicative, not conclusive. Thereore inormation should be used as a guideline only and should not be reproduced intotal or by section without written permission rom the producers o this guide.
SURVEY SUMMARY2 A global perspective
Section one - salary inormation
6 Overview and salaries by country
7 Salaries by discipline area
8 Salaries by company type
9 Contractor day rates by region
Section two - industry beneits
12 Overview o beneits
13 Beneits by company type
14 Beneits by region
Section three - industry employment
17 Staing levels
18 Diversity and movement o workorce
20 Experience and tenure
22 Employment mix
Section our - economic outlook
26 Industry outlook
27 Most signiicant issues
CONTENTSIt is with great delight that we introduce this years global oil and gas salaryguide. This is the ourth year we have published the document and each year
we have seen an increase in the number o respondents taking their time to
give us such valuable inormation and insights into their world o work. Thisyears survey saw more than 25,000 proessionals and skilled employees in
the oil and gas industry respond, giving us more than one million separate
pieces o inormation to collate into indings. As with previous years, it is thetrends and movements within the data that make or such interesting reading
indeed every igure tells its own tale!
With so much data it can become a question o what to present and publish,
however, we have tried to stay true to the goals that we set ourselves whenirst embarking on such a document. This was namely to produce some
meaningul data on how salaries and remuneration change as we move
around the world o work in the oil and gas industry. This is thencomplemented with some inormed insights as to what industry events and
activities are contributing to the outcomes. We hope you enjoy reading the
document, and more importantly it is o assistance to you in youremployment dealings.
2012 was a good year or many in the oil and gas world with an increase insalaries, beneits and conditions. The same cannot be said or too many other
industries and it would not be stretching the truth to state that more wealth
has 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 own
energy uture, either through exploration, increased production or developing
inrastructure, demand or the oil and gas proessional, in all its guises, wasmost deinitely high.
Our headline igure or the average base salary has once again grown to now sit
at $87,300*, showing an 8.5 per cent increase on the previous year. Such an
increase now accounts or a 14 per cent rise in base salary in two years alone.That is signiicant or an industry employing some ive million people worldwide.
There were numerous developments contributing to this rise through 2012, notleast o which was a prolieration o non-conventional ield developments. This
was seen by many nations as the route to energy independence and saw a
wave o hiring. Indeed many countries eagerly embarked on this path only todiscover that the skills didnt exist, at least not in their own country. This was
consequently, or some, their irst steps onto the global recruitment market. Theother change that this sector saw was an expansion into cities/regions
previously untouched by the industry. The likes o Houston, Aberdeen and Perth
are still important, just not as important as they were, it would seem.
There were some environmental challenges to overcome and or some
countries or regions this was a bridge too ar. (Development stalled andsalaries with it, trends that are easily spotted within our data).
Despite the general upward trend there were headwinds to overcome. As the
year came to a close the oil price edged slowly lower, relecting continued
negative sentiment around the general global economy, and the impact thismay have. Most roads led back to Europe in this regard and their continuing
debt issues weighed down consumer demand. This in turn impacted
manuacturing output, most notably in China. The ragile nature o thisscenario has dominated the economic backdrop, and appears likely to
continue well into 2013. This said, conidence rom those taking this survey
has remained high and at least in the oil and gas world, orecasts are orcontinued optimism, albeit guarded.
We would like to take this opportunity to thank all o those individuals thatgave up their valuable time to respond to this survey, once again allowing us
to produce such a valuable document. We would also like to thank those
people in our marketing departments or helping collate and design the guide.Lastly, but by no means least, we would like to thank our consultants and sta
or their valuable insights which undoubtedly bring the document to lie.
Matt Underhill, Managing Director, Hays Oil & Gas
Duncan Freer, Managing Director, Oil and Gas Job Search
*Respondents were asked to provide their base salary only in US dollars equivalent, converting
oreign currency into US dollars at the time o responding.
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AUSTRALIA
Australia dominates
the LNG market with amultitude o projects
under construction
IRAQ
Flurry o hiring as a range o new
mega-projects kick o
SOUTH KOREA
Korean ship yards seek to
monopolise vessel and rig
abrication work
A GLOBALPERSPECTIVE
BRAZIL
A long awaited round o eld
auctions announced, breathing
lie back into the market
UNITED STATES
Energy sel-sufciency now in sight
or the US with extensive shale gas
developments
NORTH SEA
The drain o talent to overseas
markets intensies skill shortages
EAST AFRICA
East Arica becomes the next big
ocus or oil and gas majors
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With almost 50 per cent o thoseresponding experiencing an increase o5 per cent or more to their salary, this wasthe second consecutive year o signicantrises or the industry.
SECTION ONESALARYINFORMATIONPermanent salaries rose 8.5% over the last 12 months.
4 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 5
CHANGES TO SALARIES IN THE LAST 12 MONTHS
EXPECTED SALARY CHANGES IN THE NEXT 12 MONTHS
2013
2013
2012
2012
27.5%
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%
RemainStatic
Increaseup to 5%
Decrease
RemainStatic
Decrease
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SECTIONONE:SALARYINFORMATION
SECTIONTWO:INDUSTRY
BENEFITS
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
SECTIONFOUR:ECONOMICOUTLOOK
SALARY INFORMATIONSalaries
SALARY INFORMATIONSalaries
This data is ascinating. 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 global
super 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 equipmentmanuacturers. There is some conjecture as towhy this is happening, however, it is probablyno coincidence that this industry was the leastwell paid o the company types surveyed in2011. It is only now ater a couple o years opositive revenue that they are starting to clawback some o the lost ground in what they canaord to pay their workorce. We have alsoseen technological demands in the industry
accelerating at a aster rate than at any pointin history. Much o the onus or meeting thesedemands rests with those in this sector andthis in turn is driving talent needs and the
salaries needed to recruit eectively.
The other under achievers historically interms o salaries are the service contractors,and these companies also saw a good returnin 2012 with an increase o 11 per cent.
In terms o the magnitude o 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 or someinteresting reading in itsel. As is evident bigis not always best.
Our data shows healthy rises in day rates ormost disciplines across all levels. Theoperator/technician level saw some o thelargest rises and at these l ower levels thisimplies volume hiring with plenty o projectwork available. As highlighted in this report itis the construction/installation companiesalong with the large EPCMs that have mostneed or contractors, and with a wave o newacilities now being built and coming throughdesign we would expect the operator/technician rates to continue rising.
The other signiicant rise was in the manager/lead/principal level, particularly in East/SouthArica and North Asia. The latter region sawgood rises across all levels or contractor ratesbeing led in the most part by largeengineering irms out o South Korea (withChina not ar behind). Constructing andabricating FPSOs, vessels, and large scalesubsea inrastructure, the need or seniorengineering talent is driving up rates, and alsosaw them elevated to the top o the table orimporting talent (see table on page 6).
Background or this section
Only where the sample size is large enough have we listed igures in these tables. Where not enough responses were received, entries are returned as N/A.
Permanent sta salaries are the igures returned by respondents as their base salary in US dollar equivalent igures (respondents were asked toconvert their salary into US dollars using xe.com at the time o responding) excluding one-o bonuses, pension, share options and other non-cashbeneits, or 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 o respondents based in their country o origin. Salaries listed under imported labourare representative o those who a re working in that country but originate rom another.
Contractor rates are listed as US dollar equivalent day rates as listed by respondents.
Notes: EPCM - Engineering, procurement and construction management; HSE - Health, saety and environment; QA/QC - Quality assurance/quality control.
ANNUAL SALARIESBY COMPANY TYPE
Operator/
Technician Graduate Intermediate Senior
Manager
Lead/
P ri nci pa l VP/ Di re ct or
Consultancy 56,100 36,100 50,600 82,600 119,300 162,500
Contractor 68,800 40,800 53,100 72,000 107,300 181,700
EPCM 57,000 48,400 54,800 82,000 126,300 172,000
Equipment Manuacture & Supply 50,400 30,700 50,600 61,700 85,500 166,200
Global Super Major 76,800 55,200 71,900 103,900 131,700 252,100
Oil Field Services 53,400 37,900 49,300 70,700 98,300 166,500
Operator 58,000 48,800 75,000 105,900 153,800 244,000
CONTRACTOR DAY RATESBY REGION
Operator/
Technician Intermediate Senior
Manager Lead/
Principal VP/Director
Northern Europe 430 490 720 850 1,130
Western Europe 390 360 550 770 940
Eastern Europe 300 250 340 460 N/A
CIS 350 440 580 830 880
Middle East 250 320 400 610 1,000
North Arica 310 300 440 560 N/A
West Arica 320 350 610 750 N/A
East/South Arica 310 270 450 820 790
South East Asia 330 320 450 750 1,060
North East Asia 240 340 630 940 1,260
Australasia 690 700 940 1,330 1,590
North America 420 490 760 840 1,110
South America 340 320 480 630 N/A
YEARLY SALARY CHANGES BY COMPANY TYPE
+6.4%
+11%
+8.4%
+16.7%
+5.6%
+9.1%
+11.8%
Consultancy
Contractor
EPCM
EquipmentManuacture& Supply
Global Super Major
Oil Field Services
Operator
2013 $96,000
2013 $83,000
2013 $98,900
2013 $71,900
2013 $107,700
2013 $73,400
2013 $115,500
2012 $90,200
2012 $74,800
2012 $91,200
2012 $61,600
2012 $102,000
2012 $67,300
2012 $103,300
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The rise in bonuses continues andnow represents the dominant mechanismby which companies attract and retain
their talent.
SECTION TWOINDUSTRY BENEFITSBonuses account or rise in benets.
10 | 2013 Oil & Gas Salary Guide 2013 Oil & Gas Salary Guide | 11
5 LARGEST INCREASES IN BENEFITS Value o the benet as apercentage o the overall package
2013 2012 Increase
Bonuses 5.80% 4.78% 21%
Health Plan 2.90% 2.59% 12%
Home leave allowance/ights 2.30% 2.00% 15%
Hardship 1.50% 1.26% 19%
Housing 3.40% 3.13% 9%
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SECTIO
NT
HREE:INDUSTRYEMPLOYMENT
SECTIONF
OUR:ECONOMICOUTLOOK
SECTIONONE:SALARYINFORMATION
SECTIONTWO:INDUSTRY
BENEFITS
INDUSTRY BENEFITSCompany benets
INDUSTRY BENEFITSOverview o industry benets
The signiicant igure in our data here is that the number o people notreceiving beneits has once again dropped, this year to just under 35 percent. We know rom our own activities that beneits and allowances are avital part o recruitment in the industry, where tailoring to the individual,the project and the business are increasingly commonplace. In this waycompanies are able to engage ar more with the individual they areseeking to employ and retention rates are bolstered. To some, the actthat 35 per cent do not receive any beneits is still incredible.
The main mechanism by which employers are engaging with candidatess through bonuses and this is where we have seen the largest growth,rising 7.8 per cent since 2011 to a total o 42.8 per cent o ourrespondents receiving some sort o bonus. Healthcare and home leaveallowances were the two other movers in 2012 rising 3.16 per cent and2.56 per cent respectively.
n terms o what these beneits were worth to individuals there was not agreat deal o change rom 2011. Tax assistance rose slightly as a percentageo what it is worth, however, slightly ewer were receiving it, so it has notmade much o an impression on the overall remuneration pool.
Breaking down the data into company types we see a similar pattern
across all sectors. The exceptions included a jump in healthcare provisionwithin equipment manuacturers and global super majors, a long withhome leave allowance showing a small increase across the board.
Almost 65 per cent o the respondents receive somebenet or allowance above their base pay, the highestrate o participation since the survey was launchedour years ago.
Background: The bar chart shows two igures related to beneits thatemployees in the oil and gas industry receive. The irst igure represents thepercentage o respondents that receive that particular beneit, i.e. 42.8% orespondents receive some sort o bonus. The second igure represents thevalue o that beneit stated as a percentage o their overall package orthose that receive it, which in the case o 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%
Bonuses
Hardshipallowance
Commission
Hazardousdanger pay
Tax Assistance
Meal allowance
Pension
Share scheme
Health Plan
Schooling
Car/Transport/Petrol
Training
Housing
Overtime
Home leaveallowance/ights
No Benefts
Percentagethat receivethe beneft
Averagepercentage o theirtotal package
OVERVIEW OF INDUSTRY BENEFITS
TOP BENEFITS BY COMPANY TYPE
Overtime17%
Meal allowance13%
Home leave allowance/ights19%
Home leave a llowance/ights15%
Housing19%
Car/Transport/Petrol23%
Car/Transport/Petrol18%
Car/Transport/Petrol16%
No Benets
No Benets
No Benets
No Benets
39%
30%
30%
38%
Health Plan23%
Pension22%
Pension24%
Pension15%
Home leave allowance/ights18%
Housing16%
Housing20%
Housing16%
Car/Transport/Petrol18%
Health Plan28%
Health Plan29%
Health Plan22%
Bonuses
Bonuses
Bonuses
Bonuses
35%
42%
43%
33%
EPCM/CONTRACTOR
EQUIPMENT MANUFACTURER & SUPPLY
GLOBAL SUPER MAJOR/OPERATOR
OILFIELD SERVICES/CONSULTANCY
Background: Graphs here show the top beneits by company type and the percentage o people who receive them.
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SECTIO
NT
HREE:INDUSTRYEMPLOYMENT
SECTIONF
OUR:ECONOMICOUTLOOK
INDUSTRY BENEFITSRegional benets
INDUSTRY BENEFITSRegional benets
TOP BENEFITS BY REGION
Overtime
Meal allowance
Home leave a llowance/ights20%
Overtime9%
9%
Overtime11%
19% Overtime18%
Meal allowance14%
Meal allowance24%
Car/Transport/Petrol
Car/Transport/Petrol
Housing
Car/Transport/Petrol20%
12%
11% Car/Transport/Petrol13%
24%
Housing29%
Housing17%
Car/Transport/Petrol17%
No Benets No Benets
No Benets No Benets
No Benets No Benets
No Benets No Benets
36% 49%
43% 34%
26% 27%
40% 25%
Pension
Pension
Health Plan
Pension19%
22%
27%
Pension22%
29%
Health Plan24%
Pension12%
Pension21%
Home leave a llowance/ights
Home leave allowance/ights
Housing21%
Meal allowance7%
10%
Training10%
22%
Home leave allowance/ights26%
Home leave allowance/ights19%
Housing13%
Health Plan
Health Plan
Car/Transport/Petrol
Health Plan25%
19%
12%
Health Plan35%
24%
Car/Transport/Petrol22%
Health Plan20% Health Plan39%
Bonuses Bonuses
Bonuses Bonuses
Bonuses Bonuses
Bonuses Bonuses
37% 30%
33% 37%
43% 40%
30% 39%
AFRICA EUROPE
AUSTRALASIA NORTH AMERICA
ASIA MIDDLE EAST
COMMONWEALTH OF INDEPENDENT STATES SOUTH AMERICA
TOP BENEFITS BY REGION
SECTIONONE:SALARYINFORMATION
SECTIONTWO:INDUSTRY
BENEFITS
As with previous years Asia remains theregion in which more allowances and beneitsare paid out as a percentage o the overallpackage than any other region. The MiddleEast is not ar behind, with Arica and SouthAmerica next. Europe and North Americacontinue to weight their salaries towards basicsalary and consequently beneits are relativelyight in comparison.
n terms o regional dierences we identiied anumber o interesting patterns. In SouthAmerica health plans are given to ar moreemployees than any other region. They alsopay out a high proportion o meal allowances,at a level not seen elsewhere. In Asia there isa distinct absence o pension payments, aswell as overtime. This was oset by having thehighest payments o bonuses.
Whilst the Middle East and Asia continue todeliver higher levels o beneits across mostcategories, this is in the most part oset bylower basic salaries. Indeed the interrelationship between base salary and beneitsshould not be ignored when consideringregional dierences in overall remuneration.Perhaps even more o a actor or someregions is the level o tax on gross pay, andthis is where the majority o the Middle Eastclearly plays its trump card, having a zero taxon earnings.
Background: Graphs here and overlea show the top beneits by region and the percentage o people who receive them. CIS includes Russia and theormer Soviet Republics.
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SECTIONTWO:INDUSTRY
BENEFITS
SECTIONFOUR:ECONOMICOUTLOOK
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
INDUSTRY EMPLOYMENTStang levelsSECTION THREE
INDUSTRYEMPLOYMENTCondence remains high with almost a quartero employers expecting salaries to rise by
10 per cent or more in the next year.
SECTIONONE:SALARYINFORMATION
Conidence levels in the industry on staingdemand remains high, in line with rising salarycosts. However, the level has come o rom2012 albeit only slightly. Through the latterpart o 2011 and early 2012 European debtworries dominated business conidence. Asthe year progressed the possibility o seriousinancial melt-down in Europe receded andthe markets became similarly alicted withconcern or the downturn in growth withinChina, an economy that has helped to prop upglobal activity or the last ew years. Thisconcern is having an impact on the widereconomy, however, less so in the oil and gas
world. Energy demand continues to edge upand demand or skills continue to outstripsupply in many regions.
The contractor base in the industry hasremained relatively static since 2011. We alsosee the use o contractors has continued topredominate in the construction andinstallation disciplines. However, looking aheadthe market does not have the sameconidence as last year that this contract basewill increase. While it is still high, more o oursample believes contractor numbers willremain static.
Interestingly, the use o expats appears to bealling, with more than 20 per cent o thoseresponding stating that their company did notemploy people on an expat basis. This is verymuch in line with the increasing trend tolocalise the workorce. The level o thoseexpecting the number o expatriates toincrease remains stubbornly high however.This was the same in 2011, despite this yearsdata showing a contraction in expat usecontradicting that orecast.
CONFIDENCE THAT STAFFING LEVELSWILL CHANGE IN THE NEXT 12 MONTHS
PERCENTAGE OF STAFF EMPLOYEDON A TEMPORARY OR CONTRACT ASSIGNMENT
PERCENTAGE OF WORKFORCEEMPLOYED AS AN EXPAT
DISCIPLINE AREAS IN WHICH CONTRACTORSARE EMPLOYED IN OIL AND GAS
Ops, Maintenance & Production
Petrochemicals
Project Controls
HSE & QAQC
Geoscience & Petroleum Engineering
Equipment & Supply
Engineering & Design
Drilling & Well Delivery
Subsea/Pipelines
48.3% 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 Never
EXPECTATION THAT CONTRACTORLEVELS WILL CHANGE IN THE NEXT 12 MONTHS
EXPECTATION THAT EXPATLEVELS WILL CHANGE IN THE NEXT 12 MONTHS
39.6%Increase
43.4%Increase
44.3%Remain the same
48.5%Remain the same
16.1%Decrease
8.1%Decrease
Remain static None
None
22.9% 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%
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SECTIONTWO:INDUSTRY
BENEFITS
SECTIONFOUR:ECONOMICOUTLOOK
INDUSTRY EMPLOYMENTDiversity & movement o workorce
INDUSTRY EMPLOYMENTDiversity & movement o workorce
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
SECTIONONE:SALARYINFORMATION
Disappointingly we didnt ind an increase inthe number o women working in the industry.With skill shortages as they are this appearsto be the ideal time to take advantage o whatshould be a sizeable proportion o theworkorce, unortunately it appears anopportunity missed. Regionally the Americasare aring better than other regions, as theonly two continents with more than 10 percent o emale workers. The Middle East,Arica and Asia are once again at the lowerend o the scale.
The spread o discipline splits amongstwomen in the industry remains the same asast year, with Business Development, Project
Controls and HSE as the largest sectors oemployment or emales.
There has been a small aging o the workingpopulation within our sample and this is in linewith the years o experience as documentedin the igure below. While overall the globaldata does not show any signiicant issues withdemographics, the same cannot be said ospeciic markets. The market with the mostacute issue is the US with more than 55 percent o respondents over 50 years o age. Webelieve that this is already driving the highdemand or talent in the US and Canada, thatwould appear to exceed current project andproduction needs.
In line with our own experience, the numbero oil and gas proessionals working overseascontinues to increase. In 2012 this percentagehas risen to 47.4 per cent, up rom theprevious years igure o 42.6 per cent. Thistrend is due to a number o actors, primarilythe promotion o inward skilled migration bynations governments that acilitates thegrowth. With skill shortages as they are, wedo not expect it will be long beore there aremore oil and gas proessionals overseas thanthere are in their own home countries.
O all the sections in this report, this one givesus the most insight into the markets aroundthe world and how they are aring. High levelso project work, lack o home grown talentand drives on localising the workorce can allbe identiied within these igures.
In Australia, the overall percentage o importsdropped, however we also know that theworkorce grew at a signiicant rate, and thisdemand was illed with Australian nationals.The proportion o Australian nationals workingat home once again grew or the third yearrunning. The Middle East continues to be the
largest importer o skills, although localisationo sta levels did manage to make a smalldent in the levels o those imported. In Asiathere was a signiicant increase in localparticipation, again we believe due to thosereturning home to higher rates o pay.
Moving the other way we saw something o anexodus o oreign nationals rom Europe, mosto which were heading east to chase thedollars. Arica continued to increase its importsas did South America as wages increased.
In terms o nationals working overseas (seetable below)the igures support three bigmovers in the export o sta. These include;Asian nationals, primarily rom thesub-continent, but also the Philippines andChina; Arica, 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%
Australasia
Australasia
Australasia
24 and under
Asia
Asia
Arica
Arica
Europe
Europe
CIS
CIS
Middle East
Middle East
North America
North America
South America
South America
Asia
25-29
Arica
30-34
Europe
35-39
CIS
40-44
Middle East
45-49
North America
50-54
60-64
South America
55-59
65 and over
Imported labour
Working overseas
Male
Male Local labour
Working in home country
Female
Female
IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE
WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY
REGIONAL GENDER DIFFERENCES
MOVEMENT OF THE WORKFORCE
DIVERSITY OF STAFF AGE DEMOGRAPHICS
WORKING AT HOME OR ABROAD
52.6%Home
47.4%Abroad
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SECTIONTWO:INDUSTRY
BENEFITS
SECTIONFOUR:ECONOMICOUTLOOK
INDUSTRY EMPLOYMENTExperience and tenure
INDUSTRY EMPLOYMENTExperience and tenure
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
SECTIONONE:SALARYINFORMATION
n 2012 we reported a large inlux o new andexperienced hires into the oil and gas industry.This saw record numbers o people in the zeroto our years experience bracket. This yearthese numbers remain high, although somehave moved through into the ollowing bandwith the net eect o increasing theexperience levels across the whole sample.The changes, however, are relatively small andndicate a more steady state market than inprevious years when the market was emergingrom a downturn.
n terms o disciplines, the construction andproject controls igures have both increasedtheir average experience level. This would
suggest that the wave o projects comingthrough the industry has gone through its peakand the big lex in headcount (those with zeroto our years experience) is behind us.
There was little change in most o theother disciplines, including those in thesub-surace areas.
Again we have seen only a small change in thetenure o 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 aslast in: irst out principles start to take hold.
Last year we started to measure where oil andgas proessionals sought their new roles. Torecruiters there are a number o useulobservations that we can see derive romnumbers. Firstly that traditional newspaperadvertising continues to disappear as a sourceo 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 o agencies. Jobboard use remains level at just over 15 per cent.
Tenure edged up slightly rom last years gures,reecting a less volatile market but one whichcontinued to drive hiring.
YEARS OF EXPERIENCE
TIME IN CURRENT ROLE
SOURCE OF NEW EMPLOYMENT
OIL & GAS INDUSTRY
2013
2012
FOR SPECIFIC DISCIPLINE AREAS
20 + years10-19 years5-9 years0-4 years
Construction/Installation
ProjectControls
Geoscience
Subsea/Pipelines
21.8%
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 years
24.6%Less than 1 year
26.0%Less than 1 year
23.4%5-9 years
29.2%1-2 years
25.0%1-2 years
23.5%10-19 years
24.7%3-5 years
28.7%3-5 years
24.8%20+ years
13.7%6-10 years
12.0%6-10 years
7.8%10+ years
8.3%10+ years
Newspaper Company website Online job board Word o mouth
Head hunted Agency Internal move Other
6.1%15.0%
21.0%
16.0% 14.5%7.9% 7.1%
12.4%
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SECTIONTWO:INDUSTRY
BENEFITS
SECTIONFOUR:ECONOMICOUTLOOK
INDUSTRY EMPLOYMENTEmployment mix
INDUSTRY EMPLOYMENTEmployment mix
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
SECTIONONE:SALARYINFORMATION
n last years data we saw most companies(outside o the constructors/installers)changing their mix o employment to includemore permanent sta, at the expense ocontractors (direct or through an agency). Thiswas appropriate or a market where conidencewas sky high.
This year, as conidence has come o its highs,weve seen the trend reverse with employersseeking more lexibility in their workorce. Themost pronounced shit occurred within thesuper majors and operators, closely ollowed bythe consultancies.
EMPLOYMENT MIX BY COMPANY TYPE
PERCENTAGE CHANGE FROM 2012 to 2013
Contractors
Consultancy
Oil Field Services
Equipment Manuacturer& Supplier
EPCM
Operators
Global Super Major
47.1%
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-Time
ContractedDirect
Contractedthroughagency
5.1%
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 MAJOR
EPCM
OIL FIELD SERVICES
CONTRACTORS
OPERATORS
EQUIPMENT MANUFACTURER & SUPPLIER
CONSULTANCY
Most o last years gainsin permanent hires were
reversed this year aseconomic concern saw amove towards more exibleemployment solutions.
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Skill shortages are now by ar the majorconcern or employers in the industry.
SECTION FOURECONOMIC OUTLOOKCondence was delicately balanced in the year with high prots
rom a buoyant oil price ofset by concerns over European debtand a slowdown in Chinas growth.
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EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET
37.3%Skills shortages
7.2%Immigration/overseas
visa program
25.3%Economic instability
8.1%Security/saety caused
by social unrest
11.8%Environmental
concerns
1.6%Other
8.7%Saety regulations
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SECTIONTWO:INDUSTRY
BENEFITS
SECTIO
NTHREE:INDUSTRYEMPLOYMENT
ECONOMIC OUTLOOKndustry outlook
ECONOMIC OUTLOOKMost signicant issues
SECTIONFOUR:ECONOMICOUTLOOK
SECTIONONE:SALARYINFORMATION
These igures remain largely in line with 2011,which represents high levels o conidence incomparison to igures given in other years. Thiss a pleasing result or those involved in talentacquisition, showing that the market still has agreat deal to oer both employers and jobseekers alike. In 2008, beore the economicdownturn, the skill shortages were acute in aew select places. This caused salaries to spiralupwards, jeopardising many o the projectsthat caused the demand in the irst place.
This cycle has seen widespread demand, butwithout the critical spikes. This said it is withoutdoubt that investment rates o return arebeing tested in such locations as Australia andBrazil, however, we are yet to see this stallproject development.
The key actors aecting the market in late2012 included, on the positive side, a high oilprice, driven by growing energy demand. Thisis giving operators plenty o revenue to drive
development. Balancing this positive sentimentis concern around Chinas growth and whetherEurope will re-emerge as the trigger to create ameltdown. For now both orces are balancingeach other and producing a steady, buoyantmarket. It would, however, not take much topush the markets out o kilter either way, so it iswith some interest that we enter 2013. Whetheror not the current positive eeling turns totrepidation we will have to wait and see.
In terms o the worries or employers in theindustry, it is clear that skill shortages are theirnumber one concern. This is a change rom 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 environmentalactors and saety. Social unrest andimmigration issues remain steady and atrelatively low levels.
EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET
2013
2012
26.0%Extremely positive
26.7%Extremely positive
47.8%Positive
46.8%Positive
20.7%Neutral
20.8%Neutral
5.5%Negative
5.7%Negative
EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET
Middle East
North America
South America
Europe
CIS
Australasia
Asia
Arica
All 37.3% 25.3% 11.8% 8.7% 7.2% 8.1%
Skillsshortages
Economicinstability
EnvironmentalConcerns
Saetyregulations
Immigration/overseas visaprogram
Security/Saetycaused bysocial unrest
Other
EMPLOYERS GEOGRAPHICAL FOCUS OVER THE NEXT 12 MONTHS OUTSIDE THEIR OWN REGIONAL AREA
Middle East Europe CIS Australasia
AricaAsia South America North America
16.6% 13.4% 13.3%
12.2% 10.4% 9.5% 8.3%
16.3%
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28 | 2013 Oil & Gas Salary Guide
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PEOPLE PLACED INTOTEMPORARY ASSIGNMENTSLAST YEAR
PERMANENT CANDIDATESPLACED LAST YEAR
CONSULTANTSWORLDWIDE
OFFICES WORLDWIDE
COUNTRIES WORLDWIDE
182,000
55,0007,800
245
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