Slow and steady...
It is no secret that the Oil and Gas industry continues to suffer from a major downturn in 2014, a result of the global oversupply of its product. We are however seeing a change in sentiment towards hiring, mainly driven by America’s appetite to grow its unconventional and shale businesses. The positive sentiment is slowly but surely filtering out into global oil and gas hubs.
According to the US Bureau of Labor Statistics there is 172,400 Oil and Gas jobs available today in America. What this implies is that the production of oil in the US, and indeed the global oil and gas industry, will rise in the future.
This will, in turn, lead to more recruitment as a result of increased drilling and a greater number of wells that will require completion, more deliveries, and other administrative work. According to Goldman’s prediction, the rig count will increase by 650 oil rigs. More jobs will be created with each of those rigs requiring an average of 130 to 150 workers.
The Oil and Gas industry seems to have birthed a new survival instinct that is based on short-term projects. While there is no doubt that this approach has limited the risk of individual companies, it does, however, pose some bigger challenges in the form of energy supply and security. Without long-term projects of say three to four years, for instance, to cater for future production, where will energy supply come from in future years? Or will the short-term projects be able to make up for the deficit in supply?
The most comforting answer, however, is that there is no other industry or sector that is as resilient as the Oil and Gas industry. And you can trust the industry’s bright and innovative personnel to come up with solutions that will address these challenges – as they have done so far to ensure the industry recovers from the major hit in 2014. The recovery process has followed a slow path. With that said, we can anticipate better years for the Oil and Gas industry, shown by a slow but steady improvement over the past two years.
Clearly, the downturn experienced by the Oil and Gas industry rendered a large percentage of the industry’s personnel jobless. Now the question is where are these people now? Have they started moving or seeking for jobs in other industries? Have they retired? Or are they waiting at home for the next upturn?
Well, according to a study carried out by Rigzone, the industry’s largest news and jobs site in the world, 38% of those who lost their jobs said they were still without a job. However, an estimated 17% said they had secured a job outside of the oil and gas industry. And according to Applegate, “there are more and more job candidates with oil and gas experience when we announce job vacancies”. So, it is safe to conclude that, unemployed professionals with oil and gas experience are starting to seek employment in other industries.
Studies have shown that the preference for permanent or contractor employees in the Oil and Gas industry vary from region to region. While Europe and Middle East regions are relying upon contractors, E&P organisations in America are recording significant growth in permanent employees within the last two years. The availability of experienced and suitably skilled candidates has a major role to play in the above statistics.
At Subsurface Global, we continue to work hard to support our industry. We hope our long term commitment will pay off when the good times return.
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