hays oil & gas salary guide (2012)

7/28/2019 Hays Oil & Gas Salary Guide (2012)

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THE OIL & GAS

GLOBAL SALARYGUIDE 2012Global salaries and recruiting trends.


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DISCIPLINE AREAS COVERED

24COUNTRIES WORLDWIDEREPRESENTED 53

RESPONDENTS WORK WITHA GLOBAL SUPER MAJOR 1,200+

RESPONDENTS AREEMPLOYERS IN THE INDUSTRY 5,400

PEOPLE RESPONDED TO THE

SURVEY 14,400+

SURVEY SUMMARY

THANK YOU

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

the collection o data or this years 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 inormative document to helpsupport your business decisions.

Disclaimer: The Oil & Gas Global Salary Guide 2012 is representative o a value added service to our clients and candidates. Whilst every care is taken in the collection and

compilation o data, the survey is interpretive and indicative, not conclusive. Thereore inormation should be used as a guideline only and should not be reproduced in total or by

section without written permission rom Hays.


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OIL & GAS SALARY GUIDE 2012

CONTENTS

2 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 benefts

2 Overview o benets

3 Benets by company type

4 Benets by region

Section three - industry employment

7 Stang levels

8 Diversity and movement o workorce

20 Experience and tenure

22 Employment mix

Section our - economic outlook

26 Industry outlook

27 Most signicant issues

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

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

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

oten very aware o remuneration within our own regional industry (it is one

o those topics that impacts us all in some way), however very ew o us have

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

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

the industry.

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

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

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

Indeed it was a year that stood out rom others in the breadth o geographic

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

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

North Sea and the Gul o Mexico, also came back on line in terms o hiring.

This added to an already busy market, where very ew areas o the globe

were let untouched.

This wider participation was also relected 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

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

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

the igures we produce are an accurate portrayal o the market.

Whilst assessing our own individual package against the igures is an

emotive and oten interesting activity, it is the movement o remuneration

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

ascinating insights. In general the market in 2010 relected the tail end o the

global recession o the previous year and was urther weighed down by the

oil disaster in the Gul o Mexico. In 2011 we have seen these issues let behind

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

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

the highs o 2008, and with the general drit towards permanent staing

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

markets have sotened towards the end o the year in the ace o intense

negative sentiment around Europe, the data shows an entrenched conidence

that should prevail through 2012 and beyond.

Last years Salary Guide was downloaded by over 150,000 people. With a

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

conerences, it is ast becoming the reerence o choice or those wishing tocompare remuneration globally. This continues to be our driving ambition,

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

remains as such.

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

least o which are the many industry proessionals 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 ormat. Once again their hard

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

great reerence document or our industry.

Matt UnderhillManaging Director, Hays Oil & Gas

Duncan FreerManaging Director, Oil and Gas Job Search


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2

A GLOBALPERSPECTIVE

PRE-SALT FIELDS, BRAZIL

The Brazilian government pursues

its ambitious plans to develop the

deep water pre-salt elds with

multi-billion dollar investments.

GULF OF MEXICO

The region sees a strong recovery in

employment ollowing the Horizon disaster o

the year beore.

NORTH SEA

Hiring returns to the region ollowing

a dicult recession.

WESTERN CANADA

Buoyant oil prices bring oil sands

projects back on line and drives

up salaries.

WEST AFRICA

Further discoveries and a lack

o social disruption continue toserve the region well. Salaries

rise or both imported talent and

a growing body o local skills.


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AUSTRALIA

Limited human capital,

multiple mega-projects

underway and a new

emerging Coal Seam

Gas industry drive

salaries to the top o

the global league table.

POLAND

Emerging shale market attracts

oreign multinationals to the many

opportunities on oer.

CHINA

Chinese operators extend their

activities overseas, whilst at home

they aggressively expand operations

to keep up with supplying the

countries mounting energy

requirements.

MIDDLE EAST

Iraq proves to be the major draw

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

extensive oil reserves.


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4

SECTION ONESALARY INFORMATIONPermanent salaries rose 6.% over the last 2 months.


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SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS

SECTIONTHREE-INDUSTRYEMPLOYMENT

SECTIONF

OUR-ECONOMICOUTLOOK

Almost 50 per cent o respondents

experienced an increase o more

than 5 per cent to their salary

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

number o respondents also expect

salaries to increase more than 10

per cent in the new year.

0 20 40 60 80 00

0 20 40 60 80 00

Increase more than %

Increase up to %

Remain static

Decrease

Increase more than 0%

Increase between -0%

Increase up to %

Remain static

Decrease

CHANGES TO SALARIES IN THE LAST 12 MONTHS

ExPECTED SALARY CHANGE IN THE NExT 12 MONTHS

2012

2011

2012

2011

0 20 40 60 80 00

0 20 40 60 80 00


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6

SALARYSALARY INFORMATION

SALARIES

Algeria 40,600 89,200

Angola 48,400 07,700

Argentina 68,800 N/A

Australia 64,000 73,00Azerbaijan 40,400 39,200

Bahrain N/A 77,900

Brazil 9,600 06,700

Brunei 40,00 94,400

Canada 28,700 23,300

China ,700 43,700

Colombia 69,000 22,600

Denmark 06,300 2,400

Egypt 3,300 32,300

France 92,00 8,400

Ghana 40,200 39,900

India 39,300 0,600

Indonesia 4,000 7,200

Iran 2,200 93,900

Iraq 36,900 3,000

Italy 68,400 9,800

Kazakhstan 39,700 28,00

Kuwait N/A 73,000

Libya 44,00 69,200

Malaysia 46,800 28,400

Meico 43,600 7,300

Netherlands 38,00 N/A

New Zealand 6,00 2,400

Nigeria 4,600 23,200

Norway 80,300 22,800

Oman 68,000 80,300

Pakistan 3,600 ,300

Papua New Guinea 29,600 89,900

Philippines 37,00 ,300

Poland 6,000 29,300

Portugal 49,400 6,600

Qatar N/A 72,300

Romania 34,400 23,000

Russia 9,00 38,200

Saudi Arabia 02,900 67,00Singapore 79,700 99,300

South Arica 79,200 9,000

South Korea N/A 47,00

Spain 70,700 73,00

Sudan 29,200 79,400

Thailand 40,300 37,200

Trinidad and Tobago 6,300 62,400

Turkey 67,00 89,300

United Arab Emirates N/A 69,400

United Kingdom 87,00 80,900

United States o America 24,000 9,200

Venezuela 7,00 09,400

Vietnam 47,600 ,900

Yemen 30,000 7,00

The headline igure in this data is the average permanent

salary across the whole sample, which has risen this year

to $US80,458 rom last years igure o $US75,813. This is a

signiicant increase or salaries across such a large sample and

relects the general buoyancy o the market ollowing the down

turn o 2008/9.

The year saw a lurry o activity rom most corners o the globe

as countries sought to take advantage o 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 ew

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

turn drove up vacancies, hiring and salaries.

The world was not without its share o economic worries,

however (and without wishing to tempt ate) even the

recent concerns in Europe have ailed to impact the oil price

signiicantly. This more than any other actor ultimately

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

development, LNG and a range o non conventional plays.

Adding to this buoyant outlook was a number o signiicant

new ield discoveries, and carbon capture also started to make

its way rom government unded research to live commercial

projects.

The hotspots around the world which saw signiicant salary

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

by huge projects underway, which added urther pressure to

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

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

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

noted an increase in those countries that actively encourage

hiring local nationals. This took the orm o signiicant increases

in local pay whilst the imported igure remained relatively

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

Venezuela.

The list o 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 rom

overseas.

Perhaps more interestingly, are the countries that have seen

alling salaries. Many o these are in two regions, Northern

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

demand or 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 conlict or economic pain.

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

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

to weigh heavily on equity markets and trading conditions

within the wider global economy. The impact o this sentiment

has been elt already with some recruitment markets soteningin the last ew months o 2011, and day rates struggling to

maintain previous levels.

ANNUAL SALARIESBY COUNTRY

Local average

annual salary

Imported average

annual salary


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SECTIONF

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SALARY INFORMATION

SALARIES

ANNUAL SALARIESBY DISCIPLINE AREA

Operator/

TechnicianGraduate Intermediate Senior

Manager

Lead/Principal

VP/ Director

Business Development/ Commercial ,700 38,400 ,800 60,700 94,700 88,400

Commissioning 6,300 N/A 68,00 76,800 6,200 N/A

Construction/ Installation 2,900 47,300 7,400 78,000 8,00 73,200

Downstream Operations Management 38,700 33,800 37,700 62,700 03,600 66,300Drilling 60,900 30,900 7,00 98,000 42,00 N/A

Electrical ,900 28,600 47,400 67,800 98,400 36,000

Estimator/ Cost Engineer 28,000 29,600 39,000 67,00 07,900 N/A

Geoscience 6,700 3,00 8,700 09,000 40,00 9,00

HSE 6,900 3,200 8,700 79,600 9,900 28,00

Instrumentation, Controls & Automation ,300 33,900 48,000 7,300 07,800 N/A

Logistics 3,900 3,000 42,00 72,00 82,400 99,000

Maintenance 47,00 N/A N/A 4,600 84,600 N/A

Marine/Naval 62,900 38,300 ,000 8,00 ,200 68,700

Mechanical ,400 30,400 4,00 66,700 02,700 22,300

Piping 47,400 28,400 43,00 9,000 96,900 N/A

Process (chemical) 48,200 30,00 47,00 68,00 04,800 39,900

Production Management ,300 3,800 9,300 67,00 07,700 260,700

Project Controls 4,200 42,400 49,000 78,600 2,000 34,00

QA/QC ,000 37,000 48,700 68,300 94,400 28,900

Reservoir/ Petroleum Engineering 42,00 37,900 6,400 97,800 23,400 0,000

Structural 43,700 3,600 44,900 9,200 0,800 N/A

Subsea/ Pipelines 6,000 38,600 9,00 0,200 46,900 22,000

Supply Chain/ Procurement 40,00 29,00 48,600 8,200 98,00 80,000

Technical Saety 4,400 32,00 44,300 8,00 0,000 ,900

Undoubtedly we are delicately poised when it comes

to salaries within the industry or next year. Without a

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

ew select locations. This will drive salaries up urther, and

in this scenario we would expect a larger increase than

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

considering the alternative, it would be a nice problem to

have.

How much dierence a year makes in the oil and gas

industry is demonstrated by the rise in salaries within

drilling. Last years igures showed those in this sector o

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

they are level pegging with subsea engineering as one o

the hotspots or salaries. With demand or onshore drilling

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

utilisation oshore rising, labour demand in this sector is

obviously buoyant.

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

others in the exploration and production ield are also strong

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

logistics were also strong. Subsea engineering repeated its

increases o last year and project controls and construction

and installation proved that there was plenty o new projects

under construction.

Core engineering disciplines didnt are so well with

electrical, mechanical, structural and process engineers all

lat in comparison to last year. These core disciplines are

where most engineering proessionals will start their careers,

and may suggest why headline salaries have not increased

beyond the levels seen.


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8

SALARY INFORMATION

SALARIES

ANNUAL SALARIESBY COMPANY TYPE

Operator/

TechnicianGraduate Intermediate Senior

Manager

Lead/Principal

VP/ Director

Consultancy 44,600 32,700 46,800 76,000 20,300 46,800

Contractor 69,400 3,300 ,300 6,800 0,900 42,00

EPCM 8,800 36,400 ,700 79,400 20,600 72,300Equipment Manuacture and Supply 0,800 28,300 38,900 9,700 73,800 29,00

Global Super Major 6,200 48,300 70,300 93,00 29,400 222,800

Oil Field Services 49,300 3,00 ,300 69,200 89,400 ,200

Operator 46,700 48,700 72,300 97,400 49,200 22,400

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

EPCM company saw a rise in salary as did anyone working

or an operator. The most signiicant rises however came or

those with the least experience within any o the company

types, and relected the increasing competition or entry

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

or the most experienced end o the market as companies

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

rewarding that talent, and also in attracting new strategic

hires.

202 $02,000

20 $00,800

202 $67,300

20 $64,00

YEARLY SALARY CHANGES BY COMPANY TYPE

Consultancy

Contractor

EPCM

Equipment Manuacture

Global Super Major

Oil Field Services

Operator

and Supply

202 $90,200

20 $8,700

202 $74,800

20 $7,600

202 $9,200

20 $87,000

202 $6,600

20 $62,900

202 $03,300

20 $97,00

+5%

-1.1%

+4.6%

-2.2%

+1.1%

+4.8%

+5.6%

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

in which most company types saw increases in salary

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

trend included both general contractors and equipment

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

both groups will be more aligned to local economies than

any global orces and may explain the lack o growth.

The third group to experience little movement in comparison

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

eects o localisation/nationalisation drives within the

workorce, reducing average salaries. Indeed we have noted

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


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SECTIONF

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

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

In many ways employers were shiting their employment mix

away rom contractors to a more permanent sta base. This

reduced the overall requirement or temporary employment

and ollowed the increasing conidence employers elt

throughout the year. Evidence o this can be clearly ound

within our results on pages 22 and 23.

Countering this trend is a general increase in the practice

o using contractors in new regions and countries. The

lexibility to be ound or both employers and employees is a

compelling driver or those seeking to match the cost base

with luctuating revenues.

Those regions experiencing skill shortages are most prone

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

Australia and Brazil have seen the highest increases since

last year. North Arica and Western Europe were relatively

subdued relecting weaknesses in their local economies.

Whilst the exchange rate movements through the year canaccount or some o the rise in the Australasian igures it is

the local project led environment that is really driving the

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

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

noted the rise o rates in West Arica as the region continued

to expand.

CONTRACTOR DAY RATESBY REGION

Operator/

TechnicianIntermediate Senior

Manager

Lead/

Principal

VP/ Director

Northern Europe 40 440 670 840 380

Western Europe 30 370 690 80 00

Eastern Europe 260 290 380 00 900

CIS 300 30 630 730 830Middle East 220 320 360 40 820

North Arica 280 380 380 00 70

West Arica 30 330 480 660 90

East/South Arica 280 30 380 670 N/A

Southern Asia 90 220 270 380 60

South East Asia 20 260 440 720 300

North East Asia 30 300 440 780 30

Australasia 630 680 970 20 830

North America 40 430 690 80 0

South America 300 320 0 60 830

Background or this section

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

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

salary into US dollars using xe.com at the time o responding) excluding one-of bonuses, pension, share options and other non-cash benets, 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 labour arerepresentative o those who are 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.


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0

SECTION TWOINDUSTRY BENEFITSBenets rise in the orm o incentives.


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Those benets on the rise

refected the increasing

condence in the market and the

desire o companies to providean environment that incentivised

growth. Consequently bonuses,

commissions and share schemes

all made the top ve increases.

5 LARGEST INCREASES

IN BENEFITS

202 20 Increase

Bonuses 4.78% 3.2% 1.27%

Pension .94% .44% 0.50%

Commission 0.78% 0.30% 0.48%

Hardship allowance .26% 0.80% 0.46%

Share scheme 0.87% 0.48% 0.39%

Value o the benet as a

percentage o the overall package


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2

OVERVIEW OF INDUSTRY BENEFITS

Last year, we orecast an increase in benets or this years

survey and our data has conrmed this prediction as

correct. Somewhat surprisingly it was not the number o

respondents receiving benets that increased but how much

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

shared - but not with all.

In terms o numbers receiving benets there were a ew

notable exceptions rom the downward trend. These were

share schemes, commissions and pensions, all o which rose

compared to last years gures. These rises ollowed a global

trend o wider company ownership within a companys

employees, and more immediate returns or those tasked

with selling their products and services. In line with these

trends we saw once again bonuses were prevalent in terms

o the make-up o allowances and benets overall.

Those allowances that dropped included health care,

home leave and housing allowance, which suggests ewer

experienced expatriates. We also noted a reduction in

overtime, a trend ollowing the wider working population.

Whilst the number o people receiving benets returned a

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

each o those benets 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 rat o other allowances also increased as more

cash was available to meet specic requirements. These

included allowances or meals, hardship, share schemes,

schooling and training.

SALARY

INFORMATION

Background

The bar chart shows two gures related to benets that employees in the oil and gas industry receive. The rst gure represents the percentage

o respondents that receive that particular benet, i.e. 3% o respondents receive some sort o bonus. The second gure represents the value othat benet stated as a percentage o their overall package or those that receive it, which in the case o bonuses is 3.7%.

INDUSTRY BENEFITS

OVERVIEW OF INDUSTRY BENEFITS

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

Bonuses

Commission

Taxassistance

Pension

Healthplan

Car/transport/petrol

Housing

Homeleaveallowance/fights

Hardshipallowance

Hazardous/dangerpay

Mealallowance

Sharescheme

Schooling

Training

Overtime

Nobenets

Percentage that receive the benet

Average percentage o their total package


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Background

Graphs here show the top benets by company type and the percentage o people who receive them.

INDUSTRY BENEFITS

COMPANY BENEFITS

4% 2% 22% 9% 7% 6% 3%

32% 2% 6% 7% 6% 7% 42%

33% 6% 2% 7% 7% % 42%

43% 23% 28% 8% 9% 7% 33%

TOP BENEFITS BY COMPANY TYPE

EPCM/CONTRACTOR GLOBAL SUPER MAJOR/OPERATOR

EQUIPMENT MANUFACTURER & SUPPLY OILFIELD SERVICES/CONSULTANCY

In terms o company type, operators and the

majors continued to distribute more benets to

their workorce than any other group at just over

29.5 per cent o overall package.

Bonuses

Bonuses

Bonuses

Bonuses

Pension

Pension

Healthplan

Healthplan

Healthplan

Healthplan



Ca

r/transport/petrol

Ca

r/transport/petrol

Housing

Housing

Housing

Housing

Homeleave

allowance/fights

Homeleave

allowance/fights

Homeleave

allowance/fights

Mealallowance

Overtime

Overtime

Nobenets

Nobenets

Nobenets

Nobenets


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4

Background

Graphs here and overlea show the top benets by region and the percentage o people who receive them. CIS includes Russia and the ormer Soviet Republics.

INDUSTRY BENEFITS

REGIONAL BENEFITS

TOP BENEFITS BY REGION

AFRICA ASIA

AUSTRALASIA COMMONWEALTH OF INDEPENDENT STATES

On average, beneits received by those working in

Arica are valued at 34% o their total package.


Asia are valued at 36% o their total package.


Australasia are valued at 17% o their total package.


CIS are valued at 23% o their total package.

33% 24% 9% 2% 8% 9% 28%

38% 7% 4% % 8% 8% 3% 33% 3% 9% 3% % 3% 37%

42% 8% 27% 22% 23% 8% 2%

Across most geographic regions we saw an increase in the

value o the benets paid, although most signicantly in

Arica 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 o the increases coming

rom developing nations, which is refective o the desire o

companies in these regions to retain trained sta in the ace

o increasing competition rom overseas.

While both North and South American gures ell slightly, it

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

the benets in comparison to overall package. This was rom

previous highs o 38 per cent the year beore to just over 32

per cent. However there is some evidence to suggest that

this is more refective o employers in that region shiting the

emphasis in remuneration towards higher base salaries and

away rom allowances.

This relationship between benets and base salary should

not be ignored when considering the relative make up o

employees remuneration. Whilst some regions continue to

place more emphasis on either base salary or benets, we

have ound that all regions are trending towards 72 per cent

base salary and 28 per cent benets

Bonuses

Bonuses

Bonuses

Bonuses

Pension

Pension

Pension

Healthplan

Healthplan

Healthplan

Healthplan

Car/trans

port/petrol



Housing

Housing

Housing

Homeleave

allowance/fights

Training

Nobenets

Nobenets

Nobenets

Nobenets

Mealallowance

Homeleave

allowance/fights

Overtime

Schooling

Mea

lallowance


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INDUSTRY BENEFITS

REGIONAL BENEFITS

TOP BENEFITS BY REGION

EUROPE MIDDLE EAST

NORTH AMERICA SOUTH AMERICA


Europe are valued at 16% o their total package.

On average, beneits received by those working in the

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


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


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

29% 2% 9% 4% 8% 8% 43%

36% 2% 32% 2% 8% 2% 30% 37% % 34% 22% 3% 2% 28%

38% 22% 2% 26% 23% 9% 2%

Bonuses

Bonuses

Bonuses

Bonuses

Pension

Pension

Pension

Healthplan

H

ealthplan

Healthplan

Healthplan



Car/transp

ort/petrol


Housing

Homeleave

allowance/fights

Mealallowance

Overtime

Overtime

Nobenets

Nobenets

N

obenets

Nobenets

Mealallowance

Overtime

Housing

Training


18/33

6

SECTION THREEINDUSTRY

EMPLOYMENTOver a th o all employers expect salaries to

increase by more than 0 per cent in the next year.


19/33


SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS


SECTIONF

OUR-ECONOMICOUTLOOK

The condence in the stang 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, beore the world economy started to alter around

European concerns. Over a quarter o those surveyed

expected an increase in stang levels by 10 per cent or

more, which is an unprecedented level o condence sincethis survey rst started. As 2011 came to a close, it is this

condence that is most at risk rom depressed sentiment

engulng the media.

As mentioned earlier, the use o contractors has become

more widespread in comparison to the year beore. The use

o expats continued to expand on the back o orecasted

growth last year, and once again the market appears to

believe it will grow again in 2012.

STAFFING LEVELS

CONFIDENCE THAT STAFFING LEVELS WILLCHANGE IN THE NExT 12 MONTHS

PERCENTAGE OF STAFF EMPLOYED ON A

TEMPORARY OR CONTRACT ASSIGNMENT

AREAS IN WHICH CONTRACTORS ARE

EMPLOYED IN OIL AND GAS

ExPECTATION THAT CONTRACTOR LEVELS

WILL CHANGE IN THE NExT 12 MONTHS

PERCENTAGE OF WORKFORCE EMPLOYED

AS AN ExPAT

ExPECTATION THAT ExPAT LEVELS

WILL CHANGE IN THE NExT 12 MONTHS



Increase up to %

Remain static

Decrease

More than 20%

Between -20%

0-%

None

Increase

Remain the same

Decrease

Engineering

Geoscience

Drilling

Construction/Installation

Project controls

Always

Sometimes

Never

Increase

Remain the same

Decrease



Increase up to %

None

26.%

2.3%23.3%

2%

4.3%

37.2%

29.6%

2.9%

.3%

4.9%

37.8%

6.3%

34.9%

2.6%

20.6%

8.9%

49.6%

43.6%

6.8%

INDUSTRY EMPLOYMENT

STAFFING LEVELS

0 20 40 60 80 00


20/33

8

INDUSTRY EMPLOYMENT

DIVERSITY & MOVEMENT OF WORKFORCE

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

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

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

to 7.8 per cent up rom last years igure o 7.1 per cent. Sadly,

to achieve parity with the wider general workorce in terms o

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

growth.

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

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

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

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

these people were experienced sta rom other industries. This

has reduced the average level o experience in the industry;

however it has had only a marginal eect on age.

DIVERSITY OF STAFF

GENDER IN OIL AND GAS WOMEN IN OIL AND GAS

Business development

Project controls

HSE

Supply chain

QA/QC


Other

92.2% 7.8%

DEMOGRAPHICS

Male

Female

-

24

2-

29

30-

34

3-

39

40-44

4-

49

0-

4

-

9

0-

4

6

+

4.3%

.6%

6.9%

27.%

7.4%

2.9%

4%

7.2%

2.4%

8.9%

0.2%

7.9%

0.3%

.%

7.7%

3.%

.%

.%

.7%

Male Female

WORKING AT HOME OR ABROAD

7.3% 42.7%

2012

Home Abroad

6%

7.4%

9%

6.2%

4.8%.4%

.2%


21/33


SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS


SECTIONF

OUR-ECONOMICOUTLOOK

INDUSTRY EMPLOYMENT

DIVERSITY & MOVEMENT OF WORKFORCE

MOVEMENT OF THE WORKFORCE

3.8% 46.2% 23.2% 76.8% 28.8% 7.2% 33.% 66.% .6% 48.4% 88.4% .6% 29.2% 70.8% 27.2% 72.8%

28.3% 7.7% 42.4% 7.6% 6.9% 83.% 42.% 7.9% 28.2% 7.8% 20.7% 79.3% 29.3% 70.7% 27.3% 72.7%

Australasia

Asia

Arica

Europe

CIS

MiddleEast

NorthAmerica

SouthAmerica

Australa

sia

A

sia

Ar

ica

Euro

pe

CIS

MiddleE

ast

NorthAmer

ica

SouthAmer

ica

IMPORTED WORKFORCE VERSUS LOCAL WORKFORCE

WORKING OVERSEAS VERSUS WORKING IN HOME COUNTRY

Imported labour

Local labour

Working overseas

Working in homecountry

Since the bottom o the recession in 2009 the number o

people working overseas in oil and gas has been steadily

increasing. This is consistent with employers having to search

urther aield to ind the skills they require. However, there is still

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

2009 o over 45 per cent.

Last year we reported a quick exit rom the downturn in

Australia, and a corresponding sharp increase in the number o

overseas candidates that came into the market to work on the

countrys burgeoning LNG projects. This trend has continued

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

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

as many o 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 Arica, CIS and South America. In general

this was accompanied by a reduction in age and experience

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

entry level.

The graphs below represent the movement o candidates and

how speciic regions nationals are working locally or overseas.

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

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

nationals returning home to take advantage o the high salaries.

This was going against the trend elsewhere that saw a general

drit overseas in search o better remuneration.


22/33

20

YEARS OF ExPERIENCE

INDUSTRY EMPLOYMENT

ExPERIENCE AND TENURE

FOR SPECIFIC DISCIPLINE AREAS

0-4 years

-9 years

0-9 years

20+ years

36.3% 22.2% 20.9% 20.6%

Within last years survey we reported a sharp decrease in

those with less than our years experience in the industry.

This was consistent with a drop in recruitment or those

with little or no experience and was relective o the act

the industry was recovering rom the recession o previous

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

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

As a result, the percentage o those with less than our

years experience has grown rom 20 per cent o the total

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

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

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

we hit that mark.

The picture becomes more pronounced when broken down

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

showing little change rom last year, and in some cases

edging up slightly in terms o average experience. However

we have seen a reduction in construction/installation and

project controls. Both disciplines are clearly project led and

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

most skills can be transerred into oil and gas rom other

industries.


Project controls

Geoscience

Subsea/Pipelines

0 20 40 60 80 00

OIL & GAS INDUSTRY


23/33


SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS


SECTIONF

OUR-ECONOMICOUTLOOK

TIME IN CURRENT ROLE

INDUSTRY EMPLOYMENT

ExPERIENCE AND TENURE

Tracking last years gures, tenure has remained

static with just over 25 per cent o respondents

possessing less than one years experience in theircurrent role. Again this indicates a busy market

with a great deal o hiring activity taking place.

SOURCE OF NEW EMPLOYMENT

Less than year

-2 years

3- years

6-0 years

More than 0 years

2012

2011

26% 2% 28.7% 2% 8.3%

24.7% 23.8% 3.% % 9%

News

paper

Companywebsite

Onlinejobboard

Wordom

outh

Headh

unted

Agency

Internal

Move

Other

8.% 3% .% 2.3% 3.6% 3.6% 8.3% 6.6%


24/33

22

INDUSTRY EMPLOYMENT

EMPLOYMENT MIx

Aside rom the equipment manuacturers, the year saw a

sharp rise in permanent sta as a percentage o the overall

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

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

The increase in permanent sta was in some cases at the

expense o temporary sta. However it should be noted that

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

reduction in their share o the total employed.

Contracting companies and consultancies appear to have

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

a buoyant project market. Correspondingly there was less

o a all in the use o temporary contractors within these

employers as they coped with extra workload.

Equipment manuacturers have reduced overall staing

levels and may be eeling the eects o the recent economic

turmoil somewhat earlier in the project cycle than other

companies.

Should this trend low through to other parts o the industry,

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

EMPLOYMENT MIx BY COMPANY TYPE

GLOBAL SUPER MAJOR OPERATORS

0 20 40 60 80 00

Permanent

Permanent / part-time

Contracted direct

Contracted through agency

PERCENTAGE CHANGE FROM 2011 TO 2012

Global Super Major

Operators

EPCM

Equipment manuacturers & Suppliers

Oil Field Services

Consultancy

Contractors

7.%

0.7%

-3.3%

-4.9%

.2%

0.2%

-0.2%

-.2%


25/33


SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS


SECTIONF

OUR-ECONOMICOUTLOOK

INDUSTRY EMPLOYMENT

EMPLOYMENT MIx

the year saw

a sharp rise inpermanent sta

as a percentage

o the overall

workorce

EPCM EQUIPMENT MANUFACTURER & SUPPLIER

OIL FIELD SERVICES CONSULTANCY

CONTRACTOR

8.6%

0.%

-3.8%

-4.9%

-8%

-.7%

.4%

8.3% 7.3%

0.%

-3.9%

-3.9%

-0.8%

.3%

0.6%

-..%

-6.8%

0.%

0.6%

6.%


26/33

24

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

condence being led by a robust oil price.


27/33


28/33

26

ECONOMIC OUTLOOK

INDUSTRY OUTLOOK

Employers conidence in the current employment market

has seen a large increase in comparison to last years results,

with the very positive share up to 26.7 per cent rom last

years 9.7 per cent.

Whilst the majority o regions were experiencing solid

growth this time last year, the Gul o Mexico and theNorth Sea markets were still shaking o the eects o the

recession, which consequently weighed down the overall

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

rom a hiring perspective and this removed any negative

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

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

that data was taken in the 3rd quarter o 2011, beore the

market experienced any negative sentiment.)

With regards to where individuals believe their operational

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

although the percentage is down slightly in comparison to

last years igures. A number o other regions ollowed 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 Gul o Mexico and the North Sea.

EMPLOYERS CONFIDENCE IN THE CURRENT EMPLOYMENT MARKET

EMPLOYERS GEOGRAPHICAL FOCUS OVER NExT 12 MONTHS OUTSIDE OF THEIR OWN REGIONAL AREA

Extremely positive

Positive

Neutral

Negative

2012

2011

26%

24.7%

CentralAsia

EastAsia

Aust

ralasia

MiddleEast

NorthAmerica

SouthAmerica

Arica

0.7%

26.7% .7%46.8% 20.8%

9.7% 4.% 33.4% .8%

.7% 0% 7.% 0.2% 20.8% 8% 8% 3.%

Easternand

ContinentalE

urope

UKandNo

rthern

E

urope


29/33


SECTIONONE-

SALARYINFORMATION

SECTIONTWO-INDUSTRY

BENEFITS


SECTIONF

OUR-ECONOMICOUTLOOK

EMPLOYERS CONCERNS IN THE CURRENT EMPLOYMENT MARKET

ECONOMIC OUTLOOK

MOST SIGNIFICANT ISSUES

As the market continued to heat up so did the concern

or skill shortages. This has grown as a percentage o the

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

represents the largest concern o those in the industry. This

is being elt most acutely in Australia and South America,

the two hotspots in the world where local resources are

most stretched. North America and Europe are ollowing

close behind.

Not surprisingly economic stability is also a concern at 29

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

where this appears to be o lesser concern.

Moving the other way and slowly diminishing rom peoples

ocus is environmental and saety concerns. We can only

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

spill in the Gul, and the issues surrounding the cause o that

event attract less attention.

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

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

Middle East. A comparison o data on this issue will make or

interesting reading in subsequent years.

All

Arica

Asia

Australasia

CIS

Europe

Middle East

North America

South America

0 20 40 60 80 00

Skills shortages

Economic instability

Environmental concerns

Saety regulations

Immigration/overseasvisa program

Other

Security/Saety causedby social unrest


30/33

28

COUNTRIES WORLDWIDE

32

OFFICES WORLDWIDE 257

CONSULTANTS WORLDWIDE 7,620

PERMANENT CANDIDATESPLACED LAST YEAR 60,000

ABOUT HAYS

PEOPLE PLACED INTO

TEMPORARY ASSIGNMENTS

LAST YEAR190,000

We are leading global experts in qualied, proessional and skilled recruitment. Last

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

We employ 7,620 sta operating rom 257 oces in 32 countries across 20

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

Europe and Latin America.


31/33


202 Copyright Oil and Gas Jobsearch.com Limited :: Part o The Jobsearch Group


32/33

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Amsterdam

Netherlands

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United Kingdom

Aberdeen

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

London


Russia

MoscowT: + 7 495 228 2208

E: [email protected]

Poland

Warsaw

T: +48 22 584 5650


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Rotterdam


France

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


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Calgary

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United States

Houston

T: +1 866 420 4297


Colombia

Bogot D.C.T: +57 (1) 313 58 67


Brazil

Rio de Janeiro

T: +55 21 2430 6600


United Arab Emirates

Dubai


India

MumbaiT: +91 22 4248 2500


ChinaBeijing

T: +86 10 6598 9122


Shanghai

T: +86 21 2322 9600


Malaysia

Kuala Lumpur

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

Singapore

Singapore CityT: +65 6303 0152


Australia

Perth

T: +61 8 9254 4579


Melbourne

T: +61 3 9670 2066


Brisbane

T: +61 7 3231 2962


Sydney


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Manchester


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