Oil and gas contractors look set to enjoy a buoyant 2012, as hiring returns to the UK sector following a difficult recession. Day rates for oil and gas contractors working in the North Sea are among the most competitive worldwide, with rates averaging £540-£900 a day.
The Oil & Gas Global Salary Guide 2012 also reports that contractor rates rose by 30% in 2011. Further rate increases are expected as the rapid recovery of the sector stimulates acute skills shortages, particularly in upstream disciplines as exploration and production activity ramps up significantly.
“Average oil and gas salaries in the UK are around 8% more than the worldwide average,” notes Duncan Freer, managing director of the guide’s co-author, Oil and Gas Job Search. “Greater activity is scheduled for 2012 and beyond following a difficult period during the recession.”
Matt Underhill, managing director of the guide’s other co-author, Hay’s Oil & Gas, is equally bullish: “Last year we reported a 30% rise in contractor wages for UK professionals. This was particularly encouraging for UK-based oil and gas professionals, as the rates are a good indicator of the state of the job market, being more reactive to short-term changes in demand for skills.”
The report, which includes detailed salary and contract data on 24 disciplines from over 50 countries, says that conflicting hiring trends are currently proving to be of benefit to contractors. Greater investment certainty is resulting in a larger proportion of permanent hires as companies gain the confidence to make long-term recruitment decisions.
However, contractors are being used in new regions and countries where the fluctuation in revenues from these markets can be matched to the flexibility resulting from hiring contractors. So the use of contractors has become more widespread compared to previous years.
Contractors can be found, and are in demand, across all core operating areas within the sector, including engineering, geoscience, drilling, construction and project controls. Over 45% of survey respondents confirmed plans to increase the use of contractors in 2012, and 37.2% had more than one in five of their workforce hired on a contract basis.
Freer concludes: “Despite some forecasts, many oil companies are continuing to invest in the North Sea, so it is a time to look forward with confidence.”
Published: Wednesday, February 01, 2012
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