OIL & GAS

GLOBAL
SALARY GUIDE
Review of 2013, outlook for 2014.
PEOPLE RESPONDED
TO THE SURVEY
RESPONDENTS ARE
EMPLOYERS IN THE
INDUSTRY
COUNTRIES WORLDWIDE
REPRESENTED
DISCIPLINE
AREAS COVERED
24,000
7,200+
53
24
THANK YOU
We would like to thank all of you who took the time to participate in our survey.
Wed especially like to thank the teams from Oil and Gas JobSearch and from Hays for all of their hard work conducting the survey,
analysing the results and producing an excellent document.
Last year we had over 150,000 copies of the Guide downloaded and an additional 20,000 distributed in person and at various
conferences, and we hope to surpass these levels this year.
We believe that our growing number of readers is a strong indication of the value and quality of our document, but we are always
interested in receiving feedback from you on how to improve and make our study more useful for you.
We hope you enjoy the read and, more importantly, find it useful in your job.
Disclaimer: The Oil & Gas Global Salary Guide is representative of a value added service to our clients and candidates. While 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.
SURVEY SUMMARY
24,000
7,200+
1 Managing Directors Welcome
1 Summary of Findings
SECTION ONE - INDUSTRY PERSPECTIVE
3 Global Perspective
4 Regional View
SECTION TWO - SALARY INFORMATION
10 Salary Overview
11 Salaries by Discipline
11 Contractor Day Rates
12 Salaries by Company Type
SECTION THREE - INDUSTRY BENEFITS
16 Overview of Industry Benefits
17 Company Benefits
18 Regional Benefits
SECTION FOUR - INDUSTRY EMPLOYMENT
21 Staffing Levels
22 Diversity and Movement of Workforce
24 Experience and Tenure
25 Recruiting in the Digital Space
26 Employment Mix
SECTION FIVE - INDUSTRY OUTLOOK
30 Confidence and Concerns
31 Focus for 2014
CONTENTS
MANAGING DIRECTORS WELCOME
We are delighted to share with you our Global Oil and Gas Salary Guide for 2014.
Our goal is to provide the industry with an informed view of global and regional
trends in compensation and benefits and to identify some of the key industry
factors and events that have contributed to these trends.
This is the fifth year that we have conducted our survey and produced this
document, and we are proud to say that each year weve seen the level of interest
rise and the quality of our document and underlying analysis improve.
This year, approximately 24,000 participants from 53 countries across 24
disciplines responded to our survey.
Once our survey was completed, the data were compiled and cleansed to eliminate
spurious samples and outliers.
Next, our regional recruitment consultants, whose daily job is to work with
companies to attract and retain permanent and temporary workers, reviewed the
data to ensure they reflected the realities of the local labour markets.
We then analysed the findings to identify trends and the reasons behind the
trends.
We believe that by blending the surveys quantitative data with our recruitment
consultants localised expertise, we produce the best and most representative view
of remuneration in the industry.
As always with surveys, statistical errors due to sample size and respondent errors
limit the accuracy of any particular figure. In addition, since the people who
respond to our survey vary from year to year, changes to the demographics of
respondents (e.g., their experience level, location, and discipline) will have an
impact on our figures that might not represent actual changes in labour markets.
For instance, in this years survey, we had considerably more respondents in lower
salary brackets than last year, which has yielded lower average salaries than
observed by our recruitment consultants.
In addition, respondents report their salaries to us converted to $US from their
local currencies, so fluctuations in the relative value of currencies versus the $US
will also impact our results. This year, the $US gained value against most
currencies, over 15 per cent against the Australian dollar and Brazilian real, for
instance. This has also yielded lower salaries than weve observed in the markets in
$US terms.
This year, we have taken into consideration some of these biases to present a
like-for-like global average salary alongside the average salary computed from the
unadjusted raw data. We have not adjusted the other figures. Nonetheless, we
believe that by looking at the results as a whole, and particularly at trends, there is
considerable value in this research.
SUMMARY OF FINDINGS
2013 saw a one per cent decrease in like-for-like average salary to $81,184.
Contractor day rates broadly declined as well. While perhaps disappointing, this is
probably a necessary correction after two consecutive years of significant growth
in salaries that have started to threaten the financial performance of some
companies and assets.
There were numerous developments across the globe that led to this years decline,
and these will be discussed in the pages to follow.
Despite the decrease in salaries and day rates, there still exist skills shortages in
certain areas and in certain disciplines, most pronounced for engineers and
technical professionals with 10 or more years of industry experience.
Looking forward, our survey respondents remained confident about the coming
year, in terms of industry activity, hiring and salary increase. Over 72 per cent of
employers have a positive or very positive outlook of the industry moving into
2014, and over 70 per cent of companies plan to expand their workforce.
This view is supported by a general consensus of industry and economic analysts,
who anticipate growth in capital spending in the order of five per cent in 2014.
Given this scenario, we would expect the war for experienced talent to remain
fierce, and skills shortages to remain the most pressing concern facing the industry.
John Faraguna, Managing Director, Hays Oil & Gas
Duncan Freer, Managing Director, Oil and Gas Job Search
Oil & Gas Salary Guide | 1
SECTION ONE
INDUSTRY
PERSPECTIVE
2 | Oil & Gas Salary Guide
S
E
C
T
I
O
N

O
N
E
:

I
N
D
U
S
T
R
Y

P
E
R
S
P
E
C
T
I
V
E
While a detailed analysis of the global oil and gas
industry is beyond the scope of this document,
here are some of the key issues that have had
and will continue to have an effect on the
industrys labour markets and remuneration.
GLOBAL PERSPECTIVE
Overall, 2013 saw sluggish economic growth in most of the
worlds economies, which helped to keep oil prices in a
relatively narrow range between $90-105/bbl, above the
standard $80 economic threshold but below prices that
would jeopardise a fragile global economic recovery.
While there are signs of faster economic growth in the
coming year in most regions, and consequently higher energy
prices, there are also some analysts who predict lower crude
prices due to relatively flat demand and increased production
from places like the US, Libya, Iran and Iraq.
The worlds oil market is being thrown out of balance
largely by light tight oil from the US. In addition, the US
now vies with the Middle East in LPG exports, creating
downward pressure on global prices in this market.
Finally, in LNG, expansion investments in Australia are
being reconsidered in view of potential competition from
less expensive North American exports.
How quickly the fracking revolution spreads from the US
to other countries with significant shale reserves is
perhaps the biggest question in the global energy puzzle
over the coming decades. This will also have a profound
effect on what skills are required and where.
Worldwide, rising costs of labour and services coupled
with only modest increases in revenues have squeezed
company profits and cash flow and have sounded an early
warning for some companies and investors alike.
While this is causing a weakening in investment appetite in
certain cases, the longer term view is still relatively strong,
particularly for high potential areas such as Brazil, the Gulf
of Mexico, West Africa and the Arctic.
The worlds energy demand is expected to increase by 50
per cent in the next three decades, primarily caused by
increased requirements in developing nations. Only 50 per
cent of the reserves have been developed, which suggests
that massive ongoing capital investments will be required
in increasingly challenging operating environments.
Oil & Gas Salary Guide | 3
4 | Oil & Gas Salary Guide
INDUSTRY PERSPECTIVE
Regional View
Mexico has passed legislation to open its
energy industry to outside investment in order
to reverse steeply declining production, which
has dropped 20 per cent since 2002. The
changes would allow international companies
to enter into globally competitive contracts to
explore for and produce hydrocarbons and to
take ownership of the oil above ground, after
paying royalties and taxes. It also permits
international companies to open retail gas
stations. If the law is implemented successfully,
this could create significant activity in the
Mexican Gulf of Mexico, an area that has been
only lightly explored compared to the highly
productive US areas to the north.
In Brazil, Petrobras is having difficulties
financing its five year investment plan, which,
at over $200 billion, is the worlds largest
corporate spending programme. This has
delayed deepwater projects and has led to
sales of some of its international assets.
However, successful licensing rounds for the
pre-salt in 2013 has led to renewed optimism
for 2014 activity levels.
Colombia also had a successful licensing
round, but at a more subdued level than
Brazil. Exploration is a priority to boost
diminishing reserves of crude oil, which stood
at around 2.4 billion barrels in 2013.
Akacias is one of the biggest exploration
successes in recent years in Colombia, and
clearly shows the potential of heavy crudes in
the Llanos area. Plans are being made to
spend as much as $75 billion by 2020 to
increase oil and gas production to 1.3 million
barrels.
While 2013 was a relatively quiet year in terms
of activity and hiring in both Brazil and
Colombia, recruiting efforts are starting to
shift into gear particularly in the geoscience
and subsea engineering disciplines,
predominantly for operations and project
managers.
Both countries are trying to reduce their
dependence on international workers by
attracting nationals who are currently working
abroad.
In Brazil, the government estimates it will
need an additional 250,000 new professionals
this decade and has initiated a programme to
attract and develop 200,000 new workers to
the industry, but despite a swelling youthful
population it is unclear whether there will be
sufficiently trained workers to fulfill their
needs. It is likely that there will continue be
an influx of as many as 5,000-10,000
international workers per year.
In Argentina, the government has recently
relaxed regulations enabling agreements to be
put in place to develop the vast Vaca Muerta
shale reserves, one of the worlds most
promising shale formations.
Argentina is hopeful that shale production will
help recover energy self-sufficiency it lost earlier
this century.
The US is projected to become the largest
global producer of oil and gas in the world,
driven by a surge in production from shale
reserves. Imports of gas and oil have dropped
by 32 per cent and 15 per cent in the past five
years, creating a shifting and uncertain
geopolitical environment for major oil
producing countries.
Many believe that by the end of the decade the
unconventional bubble will burst and the
importance of imports, particularly from the
Middle East, will again rise.
Due to surging unconventional gas production,
natural gas prices have remained low,
decreasing the attractiveness of drilling for dry
gas and opening the opportunity to export
LNG to higher priced markets such as Asia.
The US is poised to become the worlds largest
exporter of LNG. In the meantime, low gas
prices have greatly benefitted the chemicals
and manufacturing industries, which have
announced new investments of as much as $110
billion.
Offshore activity has completely rebounded
since the Macondo incident of 2009.
Deepwater and ultra deepwater activity is
expected to continue to rise, with active rigs
increasing from 37 currently to 60 by 2015.
Production is expected to increase by 10 per
cent next year. Onshore drilling is focused on
oil and liquids.
The shale drilling boom has attracted new
competition to the service market, which now
looks like it might need to consolidate.
The US workforce has grown by over 40 per
cent since the recession, and energy companies
are forecasting a need for many thousands of
engineers by the decades end.
Due to an aging workforce and difficult
immigration restrictions, there is a need to
attract more Science, Technology, Engineering
and Mathematics (STEM)-skilled workers from
schools as well as from other sources, such as
the military.
Increasingly, professionals with unconventional
expertise are being sought for international
assignments.
In Canada, transportation bottlenecks and a
glut of oil and gas in the US have led to a
general softening of the market and a push to
build infrastructure for LNG export.
The government has been enhancing policies
to encourage foreign investment and to further
develop the required infrastructure to export to
Asia and other markets, thus reducing the
reliance on exports to the US.
Some companies have announced significant
reductions in workforce and others have
reduced profit forecasts because of delayed
projects; however, other companies are hiring
and are even struggling to find adequate skills.
Significantly, the end of 2013 saw a number of
large projects get Final Investment Decision
(FID) and move into detailed engineering and
construction phases. This activity is likely to
reinvigorate the competition for talent in this
space and we expect to see renewed upwards
pressure on salaries and day rates through
2014.
South America
North America