Oil and gas contractor demand surged during 2012, with clients increasing their contractor workforce up to 5.9% at the expense of permanent hires. And the concerns over the global economic outlook have slipped to second place as oil and gas clients say skills shortages are their “number one concern”.
This is according to the Oil & Gas Global Salary Guide 2013, published by Hays Oil & Gas and Oil and Gas Job Search. It also shows a sharp increase in contractor day rates, peaking at $1,600 (£1,045) for senior level contractors working overseas.
“While many western economies have witnessed anaemic rises in wages, the oil industry has rewarded its professionals with robust growth and a wealth of opportunities,” explains Duncan Freer, managing director of Oil and Gas Job Search.
“Indeed, many industry professionals are rewarded at far higher rates than the average figures suggest, especially if they have a good level of experience or particular in-demand skills, such as drilling and the geosciences.”
Matt Underhill, managing director of Hays Oil & Gas agrees, adding: “This level of confidence has far surpassed that which we have seen over the last few years, and contrasts significantly with the wider economic outlook.”
However, Freer highlights that “these positive developments are not to say the industry is without its concerns. Skills shortages have become the most significant of these. Nevertheless,” he says, “the salary guide points to an industry full of confidence and opportunity as we progress through 2013.”
The report notes that contractors in the operator/technician bracket have seen some of the highest rate increases. And these look set to continue, as the report notes that it is “the construction/installation companies along with the large EPCMs [engineering, procurement and construction management firms] that have most need for contractors.” It goes on to say: “With a wave of new facilities now being built and coming through design we would expect the operator/technician rates to continue rising.”
At the other end of the scale, senior contractors and interims are also well rewarded. East/South Africa and North Asia-based contractors at the ‘manager lead/principal’ level enjoy day rates averaging up to $1,330 (£870).
The report also warns of a ‘brain drain’ of professionals choosing to work overseas, which it says “continues to take its toll on the UK talent pool in particular”.
“The relative low salary levels in the UK clearly contribute to this effect,” continues the report, “and it will take further significant rises domestically before we see the trend reversing pay for UK-based oil and gas workers.”