The global oil and gas industry is brimming with confidence despite widespread concerns over the global economy and wages are surging in the sector, according to an annual salary guide. The Salary Guide, produced by Hays Oil & Gas and leading jobsite Oil and Gas Job Search, is based on over 14,000 respondents worldwide.
Employer confidence has seen a large increase with 26.7 percent extremely positive about the current market: up from just 9.7 percent in 2011. Three quarters of all employers expect staffing levels to increase in the next 12 months. Matt Underhill, managing director of Hays Oil & Gas, said: "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. With confidence comes salary increases and this is reflected with an increase in the average worldwide salary for professionals and skilled employees in the industry to $80,458 per annum (equivalent) up 6.1 percent in the past 12 months."
Duncan Freer, managing director of Oil and Gas Job Search, said: “The oil and gas industry is certainly in good shape and this is coming through loud and clear in our data. There has been a distinct move to employ permanent staff rather than contractors for many oil companies, demonstrating a confidence amongst employers in hiring new staff to cover future workloads. This is not to say that contractor demand is falling, with a multitude of new projects coming on line through the year, rates in this sector of the industry are still rising. " Freer continued: ”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. 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.” The USA, Canada, Norway, The Netherlands and Australia once again feature prominently in the current guide but, as Matt Underhill pointed out, there are also areas of tremendous potential around the world. “Brazil, China and Iraq are rising stars that have seen significant salary hikes driven by huge local investment giving rise to some very exciting and bold projects.” Underhill said: “These positive developments are not to say the industry is without its concerns.
Skills shortages have become the most significant of these, and economic and political instability also remain prominent. The guide also highlights demographic issues particularly in the US and other developed economies. Nevertheless, the Salary Guide points to an industry full of confidence and opportunity as we progress through 2012. "Salaries are rising as are staffing levels and with a range of promising projects coming to fruition, there is every reason to be upbeat about the oil and gas industry over the coming 12 months and beyond,” he said.