EarthStream Says Hiring Companies Gain from Decline in Oil Price
While the decline in oil prices continues to weigh on companies operating in the petroleum industry, whether as producers, oilfield services firms or rig contractors, skilled manpower shortage has continued to be a long-term issue facing the sector. Now, firms hiring may benefit as they have a larger pool of experienced candidates to select from and who may be available at more competitive salaries in the present market, Kevin Gibson, Asia Pacific Managing Director of specialist recruitment company EarthStream Global told Rigzone.
"There has been an extraordinary increases in salary expectations to unsustainable levels (in recent years when oil prices were at $100 a barrel) so this will rebalance the supply demand curve. We have seen people very quickly lower their expectations to secure work," he added.
Despite the present low oil price environment, there are still a number of firms in Asia Pacific hiring, leading EarthStream to expand in Malaysia, where it noted that competition for such roles will become much tighter.
"As such the firms who are in a position to hire will experience some relief from the extreme skilled shortages that were a feature of $100 a barrel oil and get well-qualified candidates at reasonable salaries," Gibson said.
EarthStream observed that major oil and gas operators are reducing bonus, while many independent and smaller players will be paying very low bonuses, if any.
"Typically the bonuses are roughly evenly split between company and individual performance. Overall bonus will be reduced on average by 50 to 60 percent which reflects the drop in oil price."
In the construction and subsea sector, the amount of bonus available depends on whether the companies have long term contracts signed prior to the oil price collapse or those that are still trying to close the deal.
Bonuses at firms that already have existing contracts "will not be greatly affected as they will have multiyear projects to deliver. Firms who were in the process of closing deals will be cutting bonuses back to the bone and will most likely lay off people as those projects will be inevitably be delayed or cancelled outright," Gibson explained.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Malaysia's InvestKL Woos Top Oil, Gas MNCs to Base in Kuala Lumpur
- Petrobangla Invites EOIs for 3 Offshore Exploration Blocks in Bay of Bengal
- Malaysia's SapuraKencana Posts 7.1% Gain in 2Q FY17 PAT to $27M
- TH Heavy Engineering, McDermott End Partnership in Malaysia
- Singapore's NUS Slowly Builds its Petroleum Engineering Program
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- Analyst Says USA Influence on Middle East Seems to be Fading
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally