Oil, gas salaries fall as price slump forces cost cuts

LONDON (Reuters) – Oil and gas workers saw their salaries fall 1.4 percent over the past year after a sharp decline in oil prices forced their employers to trim costs, but their average global salaries remain high at more than $80,000 (£56,057) a year.

Oil and gas companies are facing a steep decline in revenues because oil prices have declined nearly 75 percent since the middle of 2014, leading to billions of dollars of budget costs.

As a consequence, those employed in the sector, used to rising bonuses and commission pay, saw average salaries decline to around $81,000 a year, according to an annual salary survey published by recruitment firm Hays.

The percentage of employees receiving bonuses, cited by respondents as the most important factor when considering a new job, fell to 38 percent from 44 percent in 2014, the survey showed.

“The ongoing downturn has been reflected in this year’s survey with salaries having declined and 44 percent of employers conducting restructuring initiatives in order to cut costs, protect profits and ensure their futures,” said John Faraguna, managing director of Hays’ oil and gas unit.

More pain is expected in 2016, the survey of 28,000 from 78 countries showed.

As many as 41 percent of respondents expected salaries to decrease or remain the same this year, the highest percentage in at least six year.

Additionally, 62 percent of respondents said they expected staffing levels to either decrease or remain the same in 2016, also the highest percentage since at least 2010.

Nevertheless, oil and gas sector salaries remain high.

Those earning most are workers employed in the liquefied natural gas (LNG) sector at an average salary of $233,300, closely followed by geoscientists at $225,600 and petroleum engineers at $210,100, the survey showed.

 

(Reporting by Karolin Schaps; Editing by Katharine Houreld)

Share this article

Follow Offshore Energy Today

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

Shanghai Int Petrochemical and Offshore Oil & Gas and Chemical Industry Technology and Equipment Exhibition 2019

cippe Shanghai has attracts both domestic and overseas buyer groups, including Shell, Exxon Mobil, Total…

read more >

OIL & GAS PHILIPPINES 2019

Oil & Gas Philippines event display products like Oil & gas, fire protection systems and materials…

read more >

Nigeria Oil & Gas Conference & Exhibition 2019

The annual meeting once again proved to be a great success, gathering over 700 industry professionals…

read more >

08th OIL & GAS AFRICA 2019 CONFERENCE

OIL & GAS AFRICA is one of the most prime regional & international Oil and Gas conferences in East Africa…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply