TechTAC® CFD Report Summary: A Comparison of Two Types of Tubing Anchor Catchers
OIL & GAS GLOBAL JOB INDEX 2014 Q1
1. hays-oilgas.com
HAYS OIL & GAS
GLOBAL JOB INDEX Q1 2014
Increase in hiring globally, with significant jumps in key regions
2. GLOBAL INDEX
Welcome to Q1 2014 Global Job Index.
The start of the year has been positive with an overall increase in the Global Job
Index from 1.31 in Q4 to 1.65 in Q1. Several regions are showing higher increases in
the number of available jobs, confirming our optimism about the global economic
recovery. The industry still has a significant shortage of skilled talent and this
shortage will continue to drive compensation packages as companies fight to secure
the talent required to drive their business forward.
Providing the price of oil remains above $100 per barrel we are optimistic of the
continuing levels of capital investment throughout 2014 and expect to see strong
growth in the job market through the second half of the year.
The job markets in South America, Asia and the Middle East have had a strong Q1.
In particular Argentina’s Vaca Muerta shale has multi nationals forming a queue
to get projects moving. According to data released by the US Energy Information
Administration, Argentina has potential to be the world’s fourth largest shale oil
producing region and the worlds second largest shale gas region, behind China.
Experts have drawn comparisons between Vaca Muerta and the prolific Eagle Ford
paly in Texas USA, which helped transform the dynamics of the US domestic energy
market. As these projects are approved the competition for engineers with shale
experience is likely to increase.
Africa has seen a good start to the year as high levels of job activity and key projects
in areas such as Angola and Mozambique are driving job creation. Salaries for critical
positions in these areas can be high in order to attract foreign talent. Operator and
service companies face stiff competition to hire contract staff who, not only possess
strong technical knowledge, but also the ability to train local engineers to ensure
stringent governmental regulations on hiring local workforce are met.
Hiring in Australia has been steady and we are seeing indicators that the job market
is picking up, reflected in the latest unemployment figures released by the Australian
Bureau of Statistics reporting the first fall in unemployment since Q2 2013.
In Europe, profit concerns of British and European companies have slowed hiring
plans. However, the British Chamber of Commerce has announced that the UK GDP
growth will surpass its 2008 pre-recession peak in the second half of 2014, ahead of
forecast. We remain cautiously optimistic for the remainder of the year, strengthened
by research released by the Bank of Scotland, in which 69 per cent of the top UK oil
and gas executives were confident about job growth in the second half of 2014. The
reports conclude that approximately 39,000 new jobs will be created in the UK oil
and gas market over the next 12 to 24 months.
North America has seen continued leasing and exploration in the Gulf of Mexico with
drilling activity surpassing pre-Macondo levels. Production is expected to surpass the
2009 peak production of 1.6 MMbopd, from the current 1.2 MMbopd, before the end
of 2015. Investment into the midstream and downstream sectors has seen a jump
in business activity and therefore jobs, however, hiring has leveled off as employers
await final decisions on various pipeline and LNG projects.
Further growth in the US is expected, buoyed by the low cost of gas and improved
manufacturing conditions, however, if political stability and stringent regulations
can be resolved in South America and West Africa the US will face stiff competition
for talent. Energy prices should remain within a relatively narrow band, between
$107 and $112 per barrel, perhaps on the upside depending on political unrest in
Ukraine. While the dollar per barrel remains in this range, conditions are favourable
for continued capital spend as companies look to maximize value, this continued
investment, will in turn, drive job creation. The midstream sector needs to bridge
the gap with current capacity and keep pace with the unprecedented levels of
exploration and production in recent years. This would drive increased capital
investment in the midstream sector this year, perhaps on the order of 29 per cent
over 2013 level, according to figures released by the American Petroleum Institute.
Should this happen, we expect compensation packages to rise overall, but with a
wide variation between disciplines and countries, as competing organisations vie to
attract in talent with in demand skills.
What is the Job Index?
The Global Job Index is a quarterly publication featuring
news and updates affecting the oil and gas employment
market. It provides an insight into fluctuating job numbers,
as well as local events which affect employment demand
making it a unique and informative resource for the
industry professionals.
Background
Finding a new job via an online medium is now the norm
for any job seeker looking for work. This trend has of
course led employers to rely on their web presence, either
direct or indirect, to source, attract and drive candidates
to apply for their jobs.
The oil and gas industry is no stranger to the use of online
media to attract candidates, with globalisation and remote
work locations meaning the vast majority of roles in the
industry are now resourced using online portals. These
sites range from a company’s own online web pages to
large recruitment groups, specialist job boards focused on
specific geographies, and those dedicated to the oil and
gas industry in all its guises across the world. These global
boards have grown considerably in the last few years and
now contain many thousands of jobs and resumes of users
eager to access their next opportunity.
Methodology
Our team of analysts and researchers measure the
numbers of live jobs posted on all the major job boards
that are specific to the oil and gas industry. These are
collated into regional figures and compared against a
datum of 1.00 taken from October 2010.
At this time the industry had largely recovered from the
global recession, and the oil price reflecting this recovery
slowly edging upwards over $80 bbl. Capital had flowed
back into the industry boosting exploration, project starts
and profits. Recruitment had recovered steadily since the
start of 2010 in line with the increase in revenues although
there were no significant skill shortages at that time. With
expectations of a growing recruitment market through
2011, October 2010 appeared to be an ideal point from
which to set our benchmark for the Global Job Index.
Each month since this date we have measured job posting
activity on the same sites making sure we are consistent
in how and what we measure. From time to time the sites
themselves will change the way in which they post and
maintain jobs, and this is closely monitored to ensure that
this does not alter the results of our research over and
above the specific measure of job posting activity we are
seeking.
This data is broken down further to give a measure of
regional activity and the trends within those regions. This
further analysis is essential to oil and gas recruiters that
scan the world for available talent.
All salaries in the Job Index are listed in US Dollars.
The Results
Hays Oil & Gas publishes its results on a quarterly basis
producing the Global Job Index along with dedicated
figures for each region; Europe, Africa, Middle East, Russia
and CIS, Asia, Australasia, North America and South
America.
3. GLOBAL OVERVIEW
Q1 job index by region
Asia
Middle East
North America
Europe
Africa
South America
Australasia
CIS
Q4 2011 Q4 2012 Q4 2013 Q4 2014
Yearly comparison of Q1 job index
indexscore
0.5
1.0
1.5
2.0
2.5
Jan Feb Mar
0.0
0.5
1.0
1.5
2.0
EUROPE AFRICA CIS MIDDLE EAST ASIA AUSTRALASIA N.AMERICA S. AMERICA
2013 in summary
Global Dec 1.31
High Feb 1.89
Low Dec 1.31
North America Dec 1.39
High Feb 1.91
Low Dec 1.39
South America Dec 1.20
High Sep 1.25
Low Jan 0.82
Europe Dec 1.24
High Feb 2.05
Low Dec 1.24
Africa Dec 1.23
High Feb 1.81
Low Dec 1.23
Asia Dec 1.81
High Jan 2.08
Low Mar 1.76
CIS Dec 0.89
High Nov 1.32
Low Mar 0.65
Australasia Dec 1.05
High Feb 1.48
Low Dec 1.05
Middle East Dec 1.40
High Aug 2.37
Low Dec 1.40
4. Jump in hiring in Q1 fueling further
plans for expansion
Following the fall in jobs in Canada’s upstream sector at the
end of 2013, Q1 has seen a jump in the job market as businesses
invest in highly technical personnel to maximize production
from existing facilities. As a result, there has been consolidation
activity, alongside a shift in resource focus from dry gas assets
to liquid rich gas and conventional oil mix of consolidated
assets. The streamlining activity is due to financial instabilities,
while the resource shift is due to horizontal drilling and
fracturing technologies unlocking previously unrecoverable
reserves.
While Alberta is known mainly for producing crude oil, natural
gas exports have increased, boosting production from the
region. The lower value Canadian dollar has attracted business
from foreign interests which has also supported job market
growth in the region.
Forecasting looks strong for Q2 and Q3 in the US services
and manufacturing sectors and the number of positions in
production have increased as a result. We are seeing businesses
upgrading to larger premises to accommodate the predicted
increase in headcount.
Sales and business development roles are in demand as US
manufacturers are looking for experienced sales professionals
to create business opportunities and push their products.
The US exploration and production job market has remained
steady over the last two quarters though there has been a shift
in focus from exploration to production of onshore assets.
Although slower to pick up than expected, the international
offshore markets for South America in both Brazil and Mexican
Gulf of Mexico are gaining traction. Pemex is set to start leasing
options at the end of 2014 which should lead to an increase in
demand for upstream staff in Houston.
The onshore operations and production market has shown an
increase in activity which should build momentum towards the
end of the year. As a result of the increase in asset sales and
leasing in the USA onshore market, we are expect to see an
increase in the acquisitions and divestiture markets.
With the increase of operations and development in the US,
we are seeing an increase in demand for enhanced recovery
reservoir engineers and operations and development
geologists. The need for modeling and mapping geologists is
also on the rise.
In demand
Senior Engineers - Pipelines
in Canada
Average salary in North America
$150,000 base
Seismic Interpreters
in the US
Average salary in North America
$145,000-$165,000 base
Year-on-year comparison
NORTH AMERICA
201320122011
0.5
1.0
1.5
2.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2014
1.67
5. State and commercial investment
driving hiring activity
In comparison to the relatively sedate job market at the end
of last year, Q1 of 2014 in South America began with a major
boost in activity.
As new budgets have been allocated, in Colombia and Peru
specifically, there has been a push to increase salaries in order
to attract the right talent needed for operations.
In Argentina and Mexico we are still awaiting the confirmation
of government changes to determine how state interest or
external investment will impact the industry’s production and
increase business activity.
South America has been ranked as the fourth largest region for
investment in oil and gas ($69 billion in 2013) therefore, we can
expect further rises in jobs over the coming quarter, increasing
pressure on the candidate market. The trend is to strengthen
reserves and increase production in the region therefore the
majority of hiring has taken place for roles in operations,
reservoir, drilling, logistics and transportation of crude oil. An
increase in Unconventional Hydrocarbon Exploration (UHE) has
led to a demand for experienced professionals and employers
are finding they must search internationally to hire foreign
workers.
Overall in South America there has been more control,
especially in the processing of environmental licenses which
has delayed the launching of the new licencing round in
Colombia for the first half of 2014.
In demand
Operations Manager
Average salary in South America
$240,000 + 30% bonus
+ benefits
Drilling Manager
Average salary in South America
$180,000 + 25% bonus
+ benefits
Year-on-year comparison
SOUTH AMERICA
0.5
1.0
1.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
201320122011 2014
1.24
6. Despite low job index, experienced
specialist talent is in demand in niche
areas
As expected, there was a slight spike in vacancies registered in
January, but this is the norm following the usually quiet month
of December. This surge in vacancies was relatively short lived
as overall the quarter displayed the lowest number of vacancies
recorded in three years for the same quarter.
Although not all jobs are directly linked to the North Sea, this
region does have a significant impact on the overall job market.
Several of the major operators in the region have issued profit
warnings within the quarter and this had a knock on effect
in confidence, causing project delays as well as feasibility
reassessments. The design and EPC market, has had a
particularly quiet quarter with relatively few significant project
wins announced. However, due to new regulations regarding
environment and safety within refining, there is a focus on
compliance, resulting in new jobs created to implement
processes and tackle the regulations.
A record amount of decommissioning is planned in the North
Sea, which will result in the need for experienced candidates
in this area, increasing pressure on what is already a skill short
market. Salaries in for these roles could rise as companies
compete for top talent.
In order to support enhanced oil recovery (EOR), Original
Equipment Manufacturers (OEM) are investing in technology
and new processes to tap into hard to reach oil reserves and
increase the output of existing reserves.
There has been a softening in the number of roles in
Engineering, Procurement and Construction (EPC), however
employers tell us they are still struggling to find technical
specialists with design and project engineering experience.
As the offshore industry is getting ready for decommissioning
projects through the summer months, some larger offshore
companies have new build vessels and are in the middle of
starting new projects including pipelay, installation etc.
The tank terminal business is growing and we are seeing an
increasing number of new build projects for which skilled,
qualified personnel from the European Union are needed.
The oil and gas population in Europe are aware of the lucrative
markets elsewhere in the world, and therefore are particularly
mobile. This has led to a skills drain from the region and
employers are finding the need to offer increasingly attractive
compensation packages and project work to attract talent.
In demand
Senior Pipeline Engineer
Average salary in Europe
$97,000
Integrity specialist
Average salary in Europe
$91,000 +
EUROPE
Year-on-year comparison
201320122011 2014
1.57
1.0
1.5
2.0
2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
7. Increased hiring in Q1 highlights
Africa for potential growth
opportunities
The African job market made an unpredicted leap forward in
the first quarter despite some negative news in the region.
Governments continue to push the need for local hires and
nationalisation of assets. In some areas this has led to the
proactive reduction in the use of expatriate employees.
This trend has been progressive over the last 12 months but
considerably more so recently.
Overall we have seen a resurgence in business activity in North
Africa, which has resulted in an increase for exploration and
production staff, particularly in Morocco and neighbouring
countries.
Across to the West, niche skills including deepwater drilling
and cost engineering are in high demand with traditionally
strong disciplines such as reservoir engineering waning slightly.
Overall salaries have remained stable, however, a lack in
demand could lead to a softening in wages.
To the east, geosciences remain in high demand with several
significant projects pushing ahead. The hiring challenge in
east Africa is to source candidates who have faced conditions
similar to those typical to the specific geology and resources
in the region. An example being the interest in people with
prior experience with assets in countries such as India to solve
similar production and extraction challenges in countries like
Uganda.
The European and African markets remain firmly entwined
with many of the largest players in the African market still
staffing significant proportions of their workforce from Europe
rather than locally. Similarly a large amount of the detailed
engineering and design for the African market resides in
Europe.
Overall the key challenge in the African market is finding
experienced local talent. This is particularly evident for
key management roles but exists throughout the ranks.
Employers in the region regularly seek people with experience
working with local partners and stakeholders including local
governments and other parties in joint ventures. In many
countries this is a considerable challenge as experienced local
talent is very rare. Nationals with these skills have often left the
country to pursue more lucrative careers elsewhere and can be
reluctant to return on a local employment arrangement.
Africa remains one of the most interesting regions in terms of
employment growth and opportunities. This is directly linked to
the enormous opportunity it represents in terms of unrealised
reserves.
In demand
Deepwater Drilling
Professionals
Average salary in West Africa
$87,000
Operations Manager
Average salary in West Africa
$150,000
Year-on-year comparison
AFRICA
2.26
201320122011 2014
0.5
1.0
1.5
2.0
2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
8. New and existing fields driving
business and hiring activity forward
Energy demand from South East Asia is expected to grow by
80 per cent by the year 2035. This increase should result in the
global centre of gravity of oil and gas shifting eastward.
A region rich in natural resources, politically stable and with
a well-educated, relatively low cost workforce, Asia Pacific
continues to be a region targeted for business growth by global
IOCs to. Reflecting this, the Asia Job Index has demonstrated
a consistently high level of vacancies and continues to grow in
comparison to global markets.
With existing and new fields in Malaysia, Indonesia and Vietnam
in both conventional and non-conventional reserves driving
the market forward, we are experiencing continued growth in
exploration and production sectors. Additionally design and
construction of offshore structures (in particular Topsides,
FPSO, FSO and offshore rigs) remains a strong and expanding
market with Singapore, South Korea and China well established
as market leaders globally.
The manufacturing industry in Asia also continues to drive
forward, with the OEMs sector proving to be a consistent
engine for growth. With issues of quality and reliability high
on the end users’ agenda, Asia has made giant strides in
improving quality of the equipment manufactured and the
results are increased orders and a wider range of products
being produced.
Regional sales managers and business development managers
in Asia Pacific are in high demand, targeted by global OEM’s
to drive new business by capitalising on the development of
offshore oil and gas fields in Malaysia, Vietnam, Indonesia
and China. This demand has seen salaries slowly creep up
as businesses seek to maximize their sales revenues though
employers are increasingly keen to secure lower cost local
talent in lieu of foreign workers.
In demand
Regional Sales Managers/
Business Development
Managers
Average salary in Asia
$140,000-$200,000 +
bonus + package
Construction Manager/
Senior Project Manager
Average salary in Asia
$180,000-$250,000 +
bonus + package
Year-on-year comparison
ASIA
2.32
201320122011 2014
0.5
1.0
1.5
2.0
2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
9. International agreements set to drive
investment and hiring activity
Due to several large projects surrounding pipeline construction,
we are seeing an invigorated Caspian basin job market. This is
driving demand for drilling and pipeline supervisors alongside
specialists in offshore platforms.
A major player in the labour market in Russia and CIS is the
Caspian Pipeline Consortium, which is currently expanding
its transport capacity to 67 million tons of petrol by 2015 and
plans to build 10 new pumping stations and additional terminal
handlers worth 5.4 billion dollars.
Although the most active phase of attracting staff for Pipeline
Consortium (CPC) has passed, the company’s investments are
still high. Crimea is likely to see further attention, specifically on
the 23 fields along the Black Sea coast.
News of the agreement between Gazprom and the China
National Petroleum Corporation (CNPC) to supply gas to the
Chinese markets could signal new investment in the region. In
particular, in order to maintain compliance with international
standards we are seeing signs of state and international
investment in reconstruction of infrastructure.
In demand
Drilling Supervisor
Average salary in Russia & CIS
$7,000-10,000 per month
Pipeline Supervisor
Average salary in Russia & CIS
$5,000-8,000 per month
Year-on-year comparison
COMMONWEALTH OF
INDEPENDENT STATES
(CIS)
1.45
201320122011 2014
0.5
1.0
1.5
2.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
10. Focus on cost saving driving demand
for cost engineers
The job market in Western Australia is steady. There are still
a number of contracts to be awarded which will generate
opportunities in both the marine sector and operations
& maintenance providing good career opportunities, in
particular for rotating equipment engineers who have in-depth
knowledge of managing assets in this area.
Keeping costs low is a focal point for many businesses; which
has resulted in a recent rise in demand for cost engineers. In
particular, employers are looking for candidates who, alongside
reporting, can also analyse cost trends, identifying potential
problem areas and taking advanced action.
As projects move into operation phase, Queensland employers
are looking at ways of strategically partnering with plants
to provide optimisation and maintenance services. This
is increasing demand for electrical and instrumentation
technicians, who are very short supply as it takes time to
progress from an electrical starting position. As competition
for skilled staff increases, we are seeing an uplift in salaries as
companies bid for top talent.
The market here continues to be contract driven and salaries
here are stable. Commissioning personnel, project management
and construction related skills are required for a finite time only,
therefore employers are engaging candidates on a temporary
basis to keep long-term costs down.
In order to drive business forward, specialist companies
servicing the oil and gas industry in Victoria are focused on
securing experienced sales engineers. Finding and retaining
sales talent with strong technical knowledge has been the key
to success for these organisations.
In demand
Commissioning – Electrical
Instrumentation
Average salary in Australia
$100,000 + site uplift &
allowance
Operations & Maintenance
Supervisor
Average salary in Australia
$120,000-$130,000 + bonus
Year-on-year comparison
AUSTRALASIA
1.04
201320122011 2014
0.5
1.0
1.5
2.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
11. Increased investment in infrastructure
resulting in the creation of new jobs
Employers in Dubai, Abu Dhabi and Doha confirmed that
staffing levels would increase during 2014 which is why we
see an increase of 21 per cent for the Middle East versus the
Global Job Index.
As reported last quarter the push continues to be in
polymer and plastics projects together with increased
investment across the Middle East in infrastructure and
project related expansion. Our expectation for the next
quarter is a continuation of the above as well as vacancies
created through attrition, as rates are currently running at
approximately eight to nine per cent across the region.
The above two components of new jobs and replacement
vacancies provides a very fluid job market, however
employers tell us they don’t have major plans to increase
base salaries in order to attract talent needed to fill these
jobs. In order to ensure the offering is attractive, employers
are considering some tactics to keep competitive including
re-evaluating job grades for critical positions or offering
specific bonus to reward tenure, performance or upon
completion of stage in the project.
Process engineers both at senior and mid-level are in
high demand, specifically those who have international
experience in facilities modifications, efficiency
improvement and technical process engineering support.
Regional sales and business development managers
who have expertise within niche oilfield services, oilfield
equipment manufacturers and components across all the
GCC regions are in demand. Of particular interest are those
who understand the processes of doing business with all the
major OPCO’s and EPCM’s in the region and have a good
network of contacts.
Senior discipline engineers with international EPCM
company experience on projects related to the hydrocarbon
processing plants sector are in highly sought after,
specifically in electrical and instrumentation engineering.
This skill set will be in demand for the foreseeable future,
particularly those interested in Saudi Arabia and some other
(non-city) based locations in Oman and Qatar.
In demand
Regional Sales and
Operations Manager
Average salary in Qatar
$18,500 per month
Senior Reservoir Engineer
(Development Planning)
Average salary in Oman
$14,000 per month
+ expat benefits
Year-on-year comparison
MIDDLE EAST
2.08
201320122011 2014
1.0
1.5
2.0
2.5
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
12. HAYS OIL & GAS
We serve over 50 countries through our global
office network.
hays-oilgas.com
NORTH AMERICA
Canada
Calgary
T: +1 403 269 4297
E: recruit@hays.com
United States
Houston
T: +1 713 297 8816
E: hays-oilgas-us@hays.com
SOUTH AMERICA
Brazil
Rio de Janeiro
T: +55 21 2430 6600
E: ogriodejaneiro@hays.com.br
Colombia
Bogota D.C.
T: +57 (1) 742 25 02
E: colombia@hays.com.co
Mexico
Mexico City
T: + 52 (55) 5249 2500
E: mexico@hays.com.mx
EUROPE
Denmark
Copenhagen
T: +45 33 15 56 00
E: copenhagen@hays.com
France
Nice
T: +33 (0)4 97 18 8000
E: btp@hays.fr
Italy
Milan
T: +39 (0)2 888 931
E: milano@hays.it
Netherlands
Rotterdam
T: +31 10 201 3700
E: rotterdam@hays.com
Poland
Warsaw
T: +48 22 584 5650
E: warsaw@hays.pl
Russia
Moscow
T: +7 495 228 2208
E: moscow@hays.ru
United Kingdom
Aberdeen
T: +44 122 494 5483
E: aberdeen@hays.com
London
T: +44 203 465 0133
E: oilandgas@hays.com
MIDDLE EAST
United Arab Emirates
Dubai
T: +971 (0)4 361 2882
E: og.dubai@hays.com
ASIA
China
Beijing
T: +86 10 6598 9122
E: beijing@hays.cn
Shanghai
T: +86 21 2322 9600
E: og.shanghai@hays.cn
Malaysia
Kuala Lumpur
T: +65 6303 0152
E: og.kualalumpur@hays.com.my
Singapore
T: +65 6303 0152
E: og.singapore@hays.com.sg
AUSTRALASIA
Australia
Adelaide
T: +61 8 8212 5242
E: og.adelaide@hays.com.au
Brisbane
T: +61 7 3231 2962
E: og.brisbane@hays.com.au
Melbourne
T: +61 3 9670 2066
E: og.melbourne@hays.com.au
Perth
T: +61 8 9254 4579
E: og.perth@hays.com.au
Sydney
T: +61 2 9249 2299
E: og.sydney@hays.com.au
New Zealand
Wellington
T: +64 4 473 6860
E: og.wellington@hays.net.nz