THE OIL & GAS

GLOBAL SALARY
GUIDE 2010
Global salaries and recruiting trends.
Contents

04 Managing Director Reports

05 Regional Overview
Section One - Salary Overview
07 Average annual salary for permanent staff by country
08 Average annual salary for contract staff by country
09 Average annual salary by experience
10 Overview
10 The last 12 months
10 The next 12 months

Section Two - Industry Benefits

12 Typical benefits by company type
12 All
12 Consultancy
12 Contractor
12 EPCM
13 Equipment manufacturer & supplier
13 Global super major
13 Oil field services
13 Operators

Section Three - Industry Employment

15 Experience & tenure
15 Years of experience
16 Time in current role
16 Employment by company type
17 Movement of workforce
17 Imported workforce v local workforce
17 Working overseas v working in home country
18 Staffing levels
18 In the next 12 months
19 Percentage of staff employed on temporary/contract assignment
20 Job seeking

Section Four - Economic Outlook

22 Economic outlook

THANK YOU
We would like to express our gratitude to all those organisations who participated in the
collection of data for this year’s survey. More than 7,000 people responded which was certainly
overwhelming. This has ensured that we can produce an informative document to help support
your business decisions.

Disclaimer: The Oil & Gas Global Salary Guide 2010 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.

Oil & Gas Salary Guide 2010 | 02

SURVEY SUMMARY

7,000+
PEOPLE RESPONDED TO THE SURVEY

1,900+
RESPONDENTS ARE EMPLOYERS IN THE INDUSTRY

800+
RESPONDENTS WORK WITH A GLOBAL SUPER MAJOR

30+
COUNTRIES WORLDWIDE RESPRESENTED

20+
DISCIPLINE AREAS COVERED
Oil & Gas Salary Guide 2010 | 03
Managing Director Reports
Matt Underhill & Duncan Freer
THE BEST DECISIONS
ARE INFORMED DECISIONS
Managing Director, Hays Oil & Gas
Matt Underhill
Managing Director, Oil and Gas Job
Search Duncan Freer
“The past year has seen change of unprecedented levels in the oil and gas industry, through previously
unforeseen highs in the oil price, followed by an equally significant drop. Then through the later part of
the year, we began to see a steady sustained recovery. And all over the course of 12 months! This survey
is therefore of particular interest to many in the industry following a period of such upheaval.
Understanding and insight into the current and forecasted cost of labour throughout the world has
surely never been in such demand. As such this survey aims to assist our stakeholders to make informed
decisions on their staffing needs for the coming year.
When comparing many of the factors influencing what employers pay their staff, the results are
interesting and in the most part expected but in some cases completely unexpected. With such a large
response we are however confident that the figures are a fair reflection on the industry we work in. In
this regard we are indebted to our partners; Oil and Gas Job Search, without whom we would not have
been able to map the industry as we have done. A big thank you to all the team there.
Clearly there is renewed optimism in the industry with many describing their confidence in the current
employment market as positive. And long may it continue, for it is those who work within this industry
that make it such a rewarding, exciting and fulfilling experience.
We hope you enjoy reading the survey and trust it provides you with the information you are seeking.”
Matt Underhill, Managing Director, Hays Oil & Gas
“When Hays requested oil and gas job search’s assistance with the salary survey, it was with a great deal
of excitement that we accepted the challenge. We knew that we had access to a wide enough selection
of oil and gas professionals to make the survey a success, and this has indeed proved to be the case.
The last 12 months has seen a significant amount of uncertainty in the industry. Not surprisingly the
feedback from our customers, particularly job seekers was that the site was a life line to many in such a
difficult year. Being in touch with the industry globally was seen as essential and these same users
contributed massively to the survey by submitting their responses in the thousands.
The level of interest generated by the survey has been phenomenal and the data generated provides a
true snapshot of the state of the industry at the start of a new decade. Despite the doom and gloom of
most of 2009, towards the latter half of the year we experienced a renewed optimism amongst clients
which translated into more jobs on the website. The results of the survey very much back this up and
every indication is that this trend is set to continue.
Finally I’d like to thank those who contributed to the survey. This has certainly helped Hays and
oilandgasjobsearch.com deliver such an informative document. We wish you all the best for a very
successful 2010.”
Duncan Freer, Managing Director, Oil and Gas Job Search
Oil & Gas Salary Guide 2010 | 04
Regional overview
A GLOBAL PERSPECTIVE
“Confidence is returning – 43.6 per cent describe their confidence
in the current employment market as positive.”
The past 18 months saw one of the biggest down turns the industry has
known but the beginning of a steady recovery is now taking place.
The results of our global oil and gas salary survey reveal a somewhat
cautious outlook with more than one third of respondents indicating
they believe the recovery will take more than 12 months. Despite this,
confidence is returning – 43.6 per cent describe their confidence in the
current employment market as positive.
While some salaries have decreased in comparison with the rates of
07/08, they have now levelled out and most working in this industry
remain extremely well paid in comparison to those in other industries.
The overall average salary is a little over $75,000* (based on annual
salaries of all permanent staff). Australians working at home are at the
top of the ladder, averaging more than $138,000 a year while salaries for
locally based staff in Kazakhstan are propping up the table.
For those working abroad, expat packages are not what they were a few
years ago. This said, contract rates are averaging more than $700 per
day. Norway and the USA are paying some of the highest rates, with
contractors earning more than $900 per day.
In terms of the best paid discipline areas, subsea/pipeline leads the way
with higher than average salaries across all levels of experience.
Production Management and Geoscience are also highly paid areas.
While average salaries by company type were fairly evenly spread,
ranging between $78,000 and $87,000, the one exception is equipment
manufacturers & suppliers, averaging less than $65,000.
Middle East & Africa
Both regions remain the focus of the majority of employers, and continue
to attract oil and gas professionals from around the world. Given almost
50 per cent of respondents stated the regions will be a key focus for
them over the next 12 months, this is not likely to change any time soon.
Hotspots
Within the upstream sector, Reservoir Engineers, Geologists, Drilling,
Safety, Process Engineers & Project Engineers are all in demand as new
projects and new exploration activities get the green light.
In the downstream arena there will be a number of shutdowns in the first
quarter of 2010, along with significant expansion activity planned. Both will
generate increased demand within Integrity, Maintenance and Planning.
We expect an increase in the number of barrels per day (bpd) for the
GCC region. As a result new plants are being commissioned with go live
dates set for the near future. This will see increased demand for
candidates within production/operations within the downstream sector.
Europe
The Oil and Gas market has started to shake off the negativity from last
year and demand is picking up quickly. The return of market confidence,
clear signs of the recession ending and the sustained improvement in
the oil price has allowed many to push on with their planned projects.
Hotspots
Geoscience and Exploration Engineers, Health and Safety specialists as
well as Mechanical, Structural, Electrical and Chemical Engineers remain
in demand in many locations. Larger projects are already struggling to
hire the numbers they require so there will be more opportunities for
Engineers moving into the regions.
There remains a solid demand in Aberdeen and London for senior
level exploration Geophysicists and Reservoir Engineers with 10 to 15
years experience.
North America
With the price of oil hovering around the $75 bbl mark in the past six
months, Canadian focused companies have begun to announce their
Heavy Oil & SAGD projects are back on the table. However the spotlight
*All figures are quoted in US dollars.
this year is firmly on natural gas with some major developments on the
drawing board.
Hotspots
There is high demand for Exploitation, Production and Reservoir Engineers
as operators are undertaking economic evaluations of existing assets.
There is a growing need for knowledge of shale gas plays, as well as a
number of heavy oil and oilsands projects coming on line. This is
creating demand for Facility Engineers, Power Engineers, Steam Chiefs,
Maintenance Coordinators, Control System specialists, Process Engineers
and Electricians to pipe fitters.
South America
The current market is placing a great deal of strain on retention of senior
executives with pressure on two fronts. Firstly from competing industries
such as mining and civil/heavy construction as they consider oil and gas
professionals to be accomplished, well trained and used to dealing with
sizable budgets. Secondly is the trend to ‘succession plan’ expatriate
executives out of leadership positions in multinational companies and
replace with suitable local talent. Both trends ensure that competition
for locally bred talent in South America remains significant.
Hotspots
Geologists, Geophysicists, Equipment/Drilling Specialists, are being targeted
with continual salary increases. Employers are also investing in training and
providing housing assistance and other benefits as an incentive.
Candidates fluent in English will be in high demand given the massive
presence of international/foreign firms and the global market.
Asia
Hiring intentions are very positive and employers have indicated an
increase in vacancies across the board. We expect this to continue for at
least the first half of the year. Since a large percentage of these roles are
to work on specific projects, the majority will be contract assignments.
There’s also been an increase in the number of executive level positions
such as Managing Directors and Regional Managers as international
businesses expand their coverage in the region.
Hotspots
Engineers with subsea construction and installation experience are in
high demand due to the number of new fields that are coming online
this year. In order to secure these skills, employers are starting to
increase salaries. They are also more willing to consider international
candidates from regional territories.
Project services candidates, specifically estimators, proposal engineers
and cost engineers are also in demand.
Australasia
Employers are expressing an intention to recruit more selectively and
with a longer-term view than they have during the past two years. Not
surprising given there is more than $200 billion of work due to come on
line in Australia’s gas infrastructure over the next 12 months. This is set
to re-energise the job market back to pre recession levels if not more so.
We therefore anticipate a much stronger trend towards permanent
recruitment this year.
New vacancies are expected to be created in New Zealand in the coming
months in response to both growth and the replacement of departing
staff to new opportunities. We expect a strong increase in candidate
movement both in the local market and to/from Australia.
Hotspots
Subsea Engineers, Development and Exploration Geologists,
Petroleum/Reservoir Engineers and Geophysicists are all in high demand
in this region. There is also significant demand for candidates with prior
LNG experience, in particular Drilling Engineers, Construction Managers
and Civil Engineers.
Oil & Gas Salary Guide 2010 | 05
SECTION ONE
SALARY OVERVIEW

Confidence is returning to the market -

two thirds of employers surveyed intend to
award salary increases in the next 12 months.

Oil & Gas Salary Guide 2010 | 06

Salary overview

Average annual salary for permanent staff by country

Results from our survey indicate those working in oil and gas are well
paid. With an average permanent staff salary of more than $75,000
globally (based on the combined total of local and imported labour)
those in this industry are earning a premium compared to most other
industries. There is however still a vast divide between those countries at
the top of the table and those at the bottom and for this reason it’s not
hard to understand why easily transferrable skills continue to migrate
around the world in search of higher returns.
Of all the countries on the list only three pay less for skills they import
compared with what they pay their local resident employees - Norway,
Canada and Australia. All other countries import skills from overseas at a
premium, and in some cases at a significant premium. There does not
however appear to be any correlation between home salaries and those
imported, with Indonesia being at the bottom of the scale in terms of the
average salary for local workforce, however it is the second highest payer
for those it imports. The same can be found in Azerbaijan.
At the other end of the spectrum, Oman pays its local workforce an
average ‘mid table’ rate of just over $58,000. However it is the lowest
payer of imported labour on the list. (With a highly concentrated
number of employers there is some evidence that this is a reflection of
an efficient overseas recruitment policy).
If we combine both figures for each country - the five highest paying
countries are Australia, USA, Azerbaijan, Canada and Netherlands. Those
paying the least are Kuwait, Oman, Libya, India and Kazakhstan.
Background
Only where the sample size is large enough have we listed countries in
this table.
Permanent staff salaries are the figures returned by respondents as their
package in US dollar equivalent figures excluding one-off bonuses,
pension, share options and other non-cash benefits, and for those
working on a monthly or yearly payroll. Those on a weekly or daily
payroll are extracted and included in the figures for contracting overleaf.
The first column represents the average salary for respondents based in
their country of origin, the second column for those who are working in
that country although originate from another. Where not enough
responses were received, entries are returned as N/A.

Salaries

Country Local Labour Imported Labour

Average annual salary Average annual salary

Europe UK 92,200 94,200

Norway 114,700 101,000
Netherlands 104,200 112,000

Russia & CIS Russia 65,600 105,700

Kazakhstan 30,700 88,100
Azerbaijan 53,300 144,500

Middle East UAE 50,200 88,500

Saudi Arabia 67,600 86,400
Qatar 35,900 91,400
Oman 58,400 67,800
Kuwait N/A 83,500
Iraq 32,600 N/A
Iran 37,300 89,300

Africa Libya 46,000 78,700

Angola 53,600 118,900
Algeria 33,800 107,800

North America USA 117,900 128,100

Canada 112,800 112,500

South America Venezuela 72,300 113,700

Brazil 72,500 125,200
Argentina 65,000 N/A

Asia Vietnam N/A N/A

Singapore 56,700 102,900
Malaysia 43,100 131,000
Korea N/A 144,100
Japan N/A N/A
Indonesia 32,000 136,300
India 50,000 77,800
China 51,600 102,900

Australasia Australia 138,100 133,700

New Zealand 99,700 112,700
Notes: All figures are base salaries, quoted in US dollars.
Oil & Gas Salary Guide 2010 | 07
Salary overview

Average annual salary for contract staff by country

With an average annual contractor salary of more than $95,000 for
those working locally and more than $168,000 for imported labour, there
is a considerable premium placed by employers on this method of
working. However it should be noted that this figure and all other
salaries listed assume that the individual works a full 240 days a year (or
48 weeks) which is clearly not always possible, or in many cases desired.
The other observation from the figures shows that the discrepancy
between contracting rates and equivalent permanent salaries is most
pronounced in those countries with extensive permanent employment
legislation i.e. The Netherlands. Here we can assume that this valuation
of contractors is driven by employers avoiding expensive permanent
employment costs.

Clearly the trade off between security and guarantee of work versus an
increase in rate for contracting is very much at work in the oil and gas
industry. This is further accentuated where candidates work overseas on
contract with the average return increasing to an impressive $168,500
per annum. In all but two cases, countries are employing contractors
from overseas at a premium (it can be assumed the skills required do
not exist or are not available in the local workforce).
Background
Contractor salaries are those working on daily or weekly payroll. The
annual salary equivalent assumes they work for 240 days a year, or 48
weeks respectively. Where not enough responses were received, entries
are returned as N/A.

Whilst Australia’s imported rate for labour is marginally below that for
local staff, the UK shows a clear differentiation between the two. This
may reflect a trend in the UK to import cheaper labour to combat
margin decline in a difficult market. As the market improves however, it
will be interesting to see whether the UK remains in a group of its own,
or if they are joined by other nations seeking similar savings.

Salaries

Country Local Labour Imported Labour

Average Average Average Average

annual salary daily rate annual salary daily rate
Europe UK 163,800 630 134,900 520
Norway 222,300 850 226,900 870
Netherlands 186,500 720 210,300 810

Russia & CIS Russia 146,000 560 203,600 780

Kazakhstan 76,300 290 191,500 740
Azerbaijan 129,200 500 202,500 780

Middle East UAE 78,600 300 123,900 480

Saudi Arabia 55,100 210 103,700 400
Qatar N/A N/A 166,300 640
Oman 60,500 230 183,200 700
Kuwait N/A N/A 125,700 480
Iraq 53,000 200 178,500 690
Iran 60,800 230 159,000 610

Africa Libya 83,800 320 188,000 720

Angola 73,200 280 169,100 650
Algeria 84,000 320 166,300 640

North America USA 214,300 820 220,800 850

Canada 205,400 790 206,700 790

South America Venezuela 106,300 410 154,000 590

Brazil 159,000 610 176,000 680
Argentina N/A N/A N/A N/A

Asia Vietnam 82,800 320 163,500 630

Singapore 71,700 280 175,800 680
Malaysia 134,500 520 160,200 620
Korea N/A N/A 201,500 770
Japan N/A N/A 84,400 320
Indonesia 51,900 200 203,200 780
India 58,400 220 166,200 640
China 78,600 300 189,800 730

Australasia Australia 207,400 800 204,000 780

New Zealand 155,300 600 182,700 700
Notes: All figures are base salaries, quoted in US dollars.
Oil & Gas Salary Guide 2010 | 08
Salary overview

Average annual salary by experience

By discipline area
Those working within subsea/pipelines, production management and
geoscience came out on top in this survey, with subsea leading the way
on an average of $109,000 per annum. Downstream operations
management, reservoir/petroleum engineering, piping, mechanical and
technical safety were the lowest paid, with an average annual salary for
downstream operations management of $65,800 per annum.
Apart from the abovementioned, all other discipline areas came in with
an average salary between $70,000 and $90,000.
By company type
When comparing by company type, figures were consistently between
an average salary ranging from $78,000 to $87,000. Equipment
manufacturers and suppliers fell below this level, with an average annual
salary of $63,700.
Those working with a contractor were rewarded most for their increasing
experience while those in their first four years with an operator were
remunerated above their peers in other company types when first
embarking on their career.

These figures also allowed us to track how experience is valued, and in
some disciplines it is greatly; notably, subsea, production management,
marine/naval, estimating/cost engineering and logistics. These areas all
showed accelerated salaries as the experience grew.
Project controls, reservoir engineering and HSE showed less than
average growth in salaries as experience levels increased.
Background
These figures are based on permanent staff salaries returned by
respondents as their package in US dollar equivalent figures excluding
one-off bonuses, pension, share options and other non-cash benefits,
and for those working on a monthly or yearly payroll. Those on a weekly
or daily payroll have been extracted from this comparison.

Salaries

Years of experience

0 to 4 5 to 9 10 to 19 20 +

Discipline area Business development 47,800 61,900 98,500 126,600

Construction/installation 47,200 76,900 100,500 119,900
Downstream operations management 40,000 53,600 79,100 90,500
Drilling 43,500 55,100 91,500 135,500
Electrical 46,800 58,800 85,800 122,900
Estimating/cost engineering 37,500 53,700 110,600 140,400
Geoscience 52,300 73,700 110,700 138,900
HSE 49,400 62,300 91,900 121,500
Logistics 45,000 59,500 85,700 133,700
Marine/Naval 54,100 68,600 99,900 140,400
Mechanical 42,700 60,600 94,400 107,700
Piping 48,900 56,500 80,200 111,900
Process 43,900 60,000 93,200 122,600
Production management 50,500 77,600 133,800 154,200
Project controls 45,000 58,000 99,300 120,100
QA/QC 41,700 60,600 90,600 127,200
Reservoir/petroleum engineering 39,700 59,200 79,700 109,000
Structural 39,900 53,700 94,200 136,200
Subsea/pipelines 57,300 75,800 141,300 162,700
Supply chain/procurement 43,500 56,800 90,900 121,800
Technical safety 46,800 66,800 83,800 113,600

Company type Consultancy 47,000 73,300 96,400 114,200

Contractor 39,600 53,100 100,600 145,800
EPCM 37,100 64,900 83,300 131,400
Equipment manufacturer/supplier 34,300 48,300 75,600 96,800
Global Super Major 51,800 65,900 102,500 119,000
Oil Field Services 50,500 66,400 82,300 115,500
Operator 60,700 78,400 88,100 121,600

Notes: All figures are base salaries, quoted in US dollars. EPCM - Engineering, procurement and construction management;
HSE - Health, safety and environment; QA/QC - Quality assurance/quality control.

Oil & Gas Salary Guide 2010 | 09

Salary overview

Salary trends
The last 12 months
The recession of 2009 was clearly reflected in the fact that 12 per cent
of respondents indicated their salaries were reduced over the last 12
months. Those most affected worked with consultancies and contractors,
were in the 0 to 4 years experience bracket and had been in their
current role for less than one year.
The next 12 months
A more positive trend is appearing in the forecasted salaries returned by
employers for 2010 with two thirds expecting to increase salaries, and
very few expecting any decrease. Those working within oil field services
could be the big winners with many employers in this area indicating
they expect salaries to increase by more than 10 per cent.

Whilst the majority of employers preferred to keep salaries static (44%),
there were some signs of market improvement with an equal number of
employees receiving an increase (16% + 28%).
Of those that received an increase of more than 5 per cent over half were
permanently employed and have been in their current role for 3 to 5 years.
Retention of key staff through careful salary management is likely to
become a prominent issue for employers this year.
Background
Only employers were asked to provide their intentions with regard to
salaries in the next 12 months, whereas the figures for the previous 12
months were taken from the employees experience.

Salary trends

In the last 12 months has

your salary: 12%

28%

Reduced
Remained static
44%
16%
Risen less than 5%
Risen more than 5%

In the next 12 months, do you 4%

expect salaries to: 19%

28%

Decrease

23% Remain static

Increase up to 5%
Increase more than
5% but less than 10%
Increase more
26% than 10%

Oil & Gas Salary Guide 2010 | 10

SECTION TWO
INDUSTRY BENEFITS

The types of benefits offered will most likely

be a key attraction and retention strategy for
employers in 2010.

Oil & Gas Salary Guide 2010 | 11

Industry benefits

Typical benefits
By company type On average, one quarter of respondents received no benefits over their
All company types returned consistent results in terms of those receiving base and statutory pay. Those working for a consultancy firm were the
health care and bonuses. When comparing with the industry average (All) worst off in this regard with nearly 40 per cent receiving no benefits.
those working with a Global Super Major receive the most benefits, where This said just less than one fifth of respondents working for a global
results were higher for all benefit types except commissions. super major, an operator or EPCM stated they receive no benefits above
statutory requirements.
It is not surprising that only 25 per cent of those working with an
equipment manufacturer and supplier receive home leave With the market improving, competition for the best talent will only
allowance/flights and that this is much lower than the industry average increase. Many companies will likely use any number of these benefits to
of 40 per cent. attract and retain the staff in addition to the base salary. The results of
our next survey will therefore be eagerly awaited providing a valuable
Share schemes are still relatively underutilised in comparison to other comparison to these figures.
industries as is the use of monthly commissions.

Benefits
Do you receive any benefits?

All Consultancy

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
No benefits
Tax assistance

Bonuses

Home leave
allowance/flights
Hardship allowance
Share scheme

Other/s

No benefits
Tax assistance

Bonuses

Home leave
allowance/flights
Hardship allowance
Share scheme

Other/s
Pension

Commission
Health plan

Pension

Commission
Health plan
Housing

Schooling

Housing

Schooling
Car/transport

Car/transport

Contractor EPCM

60% 60%

50% 50%

40% 40%

30% 30%

20% 20%

10% 10%

0% 0%
No benefits
Tax assistance

Bonuses

Home leave
allowance/flights
Hardship allowance
Share scheme

Other/s

No benefits
Tax assistance

Bonuses

Home leave
allowance/flights
Hardship allowance
Share scheme

Other/s
Pension

Commission
Health plan

Pension

Commission
Health plan
Housing

Schooling

Housing

Schooling
Car/transport

Car/transport

Oil & Gas Salary Guide 2010 | 12

 0%
10%
20%
30%
40%
50%
60%
0%
10%
20%
30%
40%
50%
60%
No benefits No benefits

Oil field services

Other benefits

Tax assistance Tax assistance

Industry benefits

Pension Pension
Bonuses Bonuses

Do you receive any benefits?

Commission Commission
Health plan Health plan

Equipment manufacturer & supplier

Car/transport Car/transport
Housing Housing
Home leave Home leave
allowance/flights allowance/flights
Hardship allowance Hardship allowance
Share scheme Share scheme
Schooling Schooling
Other/s Other/s
overtime, additional annual leave, hazardous/danger pay and training.
Other benefits noted include mobile phone, laptop, petrol/parking, meals,

0%
10%
20%
30%
40%
50%
60%
0%
10%
20%
30%
40%
50%
60%

Operators
No benefits No benefits
Tax assistance Tax assistance
Global Super Major

Pension Pension
Bonuses Bonuses
Commission Commission
Health plan Health plan
Car/transport Car/transport
Housing Housing
Home leave Home leave
allowance/flights allowance/flights
Hardship allowance Hardship allowance
Share scheme Share scheme
Schooling Schooling
Other/s Other/s

Oil & Gas Salary Guide 2010 | 13

Benefits
SECTION THREE
INDUSTRY EMPLOYMENT

More than half of employers surveyed expect to

increase staffing levels in the next 12 months.

Oil & Gas Salary Guide 2010 | 14

Industry employment

Experience & tenure

Industry experience
The majority of respondents are in the early stages of their career. When
comparing the years of experience by discipline, more than 50 per cent
of those working within subsea/pipelines, geoscience,
reservoir/petroleum engineering and estimating/cost engineering fall
within the first bracket. Subsea in particular is attracting more and more
attention from engineering students/graduates. An exciting and
challenging field offering high salaries, this is hardly surprising.
Within both the construction/installation and mechanical engineering
fields, years of experience was fairly evenly spread. These are the more
traditional fields and hence remain well represented through all levels.
Skills gap
There has been widespread concern in the past few years about an
imminent skills shortage within the industry. With an ever-increasing
number of study options, fewer people are choosing the oil and gas
industry as a career path. Some operators have also citied poor training
during and after graduation as a major issue.
Now, with many nearing retirement age, some employers have introduced
incentives such as extended annual leave or reduced hours to keep these
people and their highly valued knowledge in the workforce longer.

Experience & tenure

Years of experience
14.8%

40.6%

21.5%

0-4
5-9

10 - 19
20 +
23.1%

9.9%
15.7%

14.9%

15.2%
53.5%
52.4%

22.8%
15.6%

Subsea/pipelines Geoscience

8.9% 8.3%

13.6%
15.1%

54.5%
55.2%

21.5% 22.9%

Reservoir/petroleum engineering Estimating/cost engineering

19.9% 23.7%

27.6% 30.3%

26.7%
26.1%
25.8%
19.9%

Construction/installation Mechanical

Oil & Gas Salary Guide 2010 | 15

Salary overview

Experience & tenure (continued)

Time in current role
While the results are relatively even across all groups, it is important to
note that close to half of respondents have been in their current role for
less than two years. This would support the idea the oil and gas industry
is extremely transient.
Employment mix
Equipment manufacturers employed the highest percentage of
permanent staff (as opposed to temporary contractors) whilst the
company types ‘contractors’ and ‘consultancies’ employed the highest
contractor base likely due to the project led nature of their work.

With a readily accessible job market fuelled by international job boards
and global agencies, candidates are left in no uncertainty of their value
and the number of opportunities available to them. This allows
employees to pursue careers that have many and varied experiences,
often at the expense of tenure with one particular employer.
The results suggest that there is very little part time work done in
the industry.
There is an even mix between agency and direct contracting, with the
exception of global super majors. Here the percentage of those
contracted through an agency is double that of those contracted direct.

Experience & tenure

Time in current role

15.6% 16.7%

12.1%

Less than 1 year

1 - 2 years
27.3%
3 - 5 years

6 - 10 years
28.3%
More than 10 years

Employment mix
Global
by company type Super Major

Operators

EPCM

Equipment
manufacturer
& supplier

Oil Field Permanent

Services

Permanent /
Consultancy part time
Contracted
Contractors direct
Contracted
0% 20% 40% 60% 80% 100% through agency

Oil & Gas Salary Guide 2010 | 16

Industry employment

Movement of workforce
Imported workforce
Results of the survey indicate North America uses predominantly a
locally bred workforce, with very few imports compared to other
regions. The Middle East and Africa are at the other end of the spectrum
importing the majority of their workforce from overseas.
Working overseas
The second chart below shows how those from Australasia and Europe
continue to seek experience internationally, with significant numbers
approaching 50 per cent working overseas. Conversely, those from
Africa (81%) and the Middle East (72%) mostly remain at home.

Background Background
‘Imported workforce’ shows the makeup of the workforce by region, ‘Working overseas’ shows the regions where respondents originate
comparing those working in their country of origin against those who from, comparing those who are working locally against those that are
originated from elsewhere. working overseas.

Movement of workforce

Imported workforce versus

local workforce 100%

80%

60%

40%

20%
Imported labour

Local labour
0%
Europe
Australasia

Asia

Africa

Russia

North America

South America
Middle East

Working overseas versus

working in home country 100%

80%

60%

40%

20%
Working overseas

Working in
0% home country
Europe
Australasia

Asia

Africa

Russia

North America

South America
Middle East

Oil & Gas Salary Guide 2010 | 17

Industry employment

Staffing levels
In the next 12 months
Just over half of employers have indicated they expect staffing levels to
increase this year which is positive news for those currently looking for
employment. From analysing the data further we see this is particularly
the case in the Middle East and Africa.
Expat packages
There is a reasonable proportion of the workforce currently employed on
an expat package. As you’d expect there is a high concentration in the
Middle East. Results indicate that many expats are working within
construction/installation, QA/QC and HSE.

There is still a level of uncertainty in the market and employers will take
a cautious approach to hiring this year. One third of employers have
indicated they will not make any changes to their staffing levels while
some, albeit a minority are still managing the effect of the global
recession and are set to decrease headcount in the next 12 months.
More than one third of employers indicated the percentage of those
employed on an expat package will increase in the next 12 months
and salaries are likely to increase slightly in this sector as market
conditions improve.

Staffing levels

In the next 12 months, do you

expect staffing levels to: 13.3% 12.5%

13.5%

Decrease
33.3% Remain static

Increase up to 5%
Increase more than
5% but less than 10%
27.4% Increase greater
than 10%

What percentage of your

workforce is currently
employed on expat package?
24.2%
29.4%

Nil

Nil to 5%
Above 5% but less
17.6% than or equal to 10%
28.8%
Greater than 10%

How do you expect this

percentage to change in the
next 12 months?

36.9%

50.8%

Increase

Decrease

Remain the same

12.3%

Oil & Gas Salary Guide 2010 | 18

Industry employment

Staffing levels (continued)

Temporary/contract staffing
Over the past 18 months, employers have favoured temporary/contract
employment as it provides a great deal of flexibility in an uncertain
market. Only a small proportion indicated they do not currently employ
staff on this basis (16.4%) however of these at least 25 per cent plan to
start to do so in the next 12 months.

Unsurprisingly engineering and construction/installation was the

discipline in which contractors were being used the most, whereas
geosciences came in with the lowest utilisation.

Staffing levels

What percentage of your staff

are employed on temporary / 16.4%
contract assignment?
31.8%

23.2%
Nil

Nil to 5%
Above 5% but less
than or equal to 20%
Greater than 20%
28.6%

How do you expect you expect

this percentage to change in
the next 12 months?

33.2%

46.2%

Increase

Decrease

Remain the same

20.6%

If your company does employ

contractors, please indicate in Engineering
which areas:
Geoscience

Drilling

Construction
/installation
Never

Production Sometimes
/operations

Always
Project
controls
N/A
0% 20% 40% 60% 80% 100%

Oil & Gas Salary Guide 2010 | 19

Industry employment

Job seeking
Word of mouth continues to be the predominant method of finding
work in the industry and unsurprisingly so. With the project led nature of
the oil and gas employment market, it is often former colleagues that
can best promote individuals skills and availability. Equally the data also
shows that agencies and head hunting play a more prominent role for
moves overseas, whilst at home traditional newspapers and internal
company mechanisms are in greater use.

Job seeking

How did you find your

current role? 25%

20%

15%

10%

5%
Working country
of origin
Working abroad
0%
Newspaper

Company website

Online job board

Head hunted

Agency

Internal move

Other
Word of mouth

If you are not working in your

country of origin, how do you
100%
keep abreast of job
opportunities at home?
80%

60%

40%

20%

0%
Word of
mouth

Agency
contact
Intranet
and other
internal
mechanisms

Other
Internet

Oil & Gas Salary Guide 2010 | 20

SECTION FOUR
ECONOMIC OUTLOOK

More than a third of respondents describe

their outlook in the current employment
market as positive.

Oil & Gas Salary Guide 2010 | 21

Economic outlook

Economic outlook
Market recovery
Whilst only seven per cent of those surveyed saw the recovery taking
hold in the near term (within three months) there was undoubtedly a
more positive mood through the latter half of the year. The majority of
respondents believe the market will recover in less than 12 months which
would suggest the second half of 2010.
Employment market
This optimism is yet to be fully realised within the employment market
with half of respondents either neutral or negative toward the current
situation. Business confidence will always lead an individual’s assessment
of the employment market, so this should come as no great surprise.
Our own experience at the end of 2009 and the start of 2010 is that the
market is picking up and confidence is higher than we’ve seen it since
2008. There is however still a good deal of slack to take up in available
candidates, and 7 to 12 months may well be the time frame in which job
seekers, once again gain the ascendancy.
Geographic focus
Somewhat surprisingly the Middle East appears a stand out in terms of
employers focus for 2010. This said the region remains a significant part
of the world market, still employing over half of the world’s oil and gas
expatriates. As such it will always be near or close to the forefront of
plans for many in the industry.

Economic outlook

In your opinion, how long will 6.9%

the market recovery take?

35%
22.3%

Less than 3 months

Between 3 & 6 months

Between 7 & 12 months

More than 12 months

35.8%

How would you describe your 6.5%

confidence in the current 15.8%
employment market?

43.6%
Negative

Neutral
34.1%
Positive

Extremely positive

Which geographic areas will be

a key focus for your operations 50%
over the next 12 months?
40%

30%

20%

10%

0%
Eastern and
Continental Europe

UK and
Northern Europe

Other
Central Asia

East Asia

Australasia

North America

South America

Africa
Middle East

Oil & Gas Salary Guide 2010 | 22

ABOUT HAYS

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Oil & Gas Salary Guide 2010 | 23
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