Oil, Gas Employment Moves from Shale to Offshore



Oil, Gas Employment Moves from Shale to Offshore
Looking at the oilfield services industry sectors with the highest percent change of employment, Rystad Energy found the main driver of employment is moving from shale to offshore.

Anticipated demand for offshore services brings with it an increased demand for workers as oil and gas employment shifts from shale to offshore, according to new analysis by energy research firm Rystad Energy.

Looking at the oilfield services industry sectors with the highest percent change of employment, Rystad found the main driver of employment is moving from shale to offshore.

“This is a clear effect of the increase in offshore sanctioning,” Matthew Fitzsimmons, vice president on Rystad’s oilfield services team, said in a report sent to Rigzone. “We expect offshore commitments to nearly double from 2018 to 2020 and sustain high levels of spending over the next five years.”

While onshore basins like the Permian have been a hotbed of activity in recent years – holding US employment in the services sector steady in 2016 and 2017, offshore has now taken the lead, contends Rystad.

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Source: Rystad Energy

Earlier this month, Rystad forecasted a massive year for offshore project sanctioning in 2019. Now, it’s expecting offshore services demand to reach $442 billion in 2025, a 45 percent increase from 2018.

Rystad said there was a cumulative workforce reduction of 31 percent due to reduced activity in 2015-2017, which greatly affected companies exposed to the offshore industry.

But now the offshore market is gaining momentum as four out of the five top oilfield services companies with the largest workforce change from 2017 to 2018 were primarily exposed to the offshore industry.

Still, there will be challenges.

“Our informal interviews with oilfield services company leaders across the offshore industry all echoed a common challenge: how to bring experienced personnel back into the industry amidst current growth, and how to attract new talent,” said Fitzsimmons. “History would show that to bring back experienced professionals into an industry, higher wages will be required.”

Rigzone recently reported that U.S. exploration and production (E&P) workers were getting paid more in 2019.



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.

Grant  |  August 04, 2019
If companies are expecting experienced personnel to return to the patch then they are going to have to offer them something better than the "bronze package"! Walk the walk, don't just talk the talk!
Thomas Morrison  |  August 04, 2019
Workers are here enduring the downturn, Companies need to know that the compensation has to go up to bring Mariners back,with long term employment, not just when needed. Everyone has families to support, Careers are built on Loyalty and Commitment.
Abone71  |  August 02, 2019
Yeah, God forbid the wages be high enough to put a dent in those CEO millions.
Tammie Cooley  |  August 01, 2019
Are these jobs overseas? My husband is experienced on drilling, workover and completion rigs, but can find no work in the U.S,
Whitney Lasseigne Jr.  |  July 30, 2019
I've noticed that a majority of oilfield services and contractors are putting ads out for EXPERIENCED EMPLOYEES.., knowing full well that a majority of those workers have moved on or, are currently working in those experienced job levels, leaving the obvious need for EXPERIENCED HANDS.. .. very, very few companies offer or even mention TRAINING FOR QUALIFIED CANDIDATES.. ..THUS THE SHORTAGE IN MANPOWER IS "MAN-MADE..", AND NOT ENTIRELY THE FAUL OF THE IN-EXPERIENCED OILFIELD WORKERS WHO HAVE BEEN IN THE OILFIELD BUT AT DIFFERENT SKILLS OR OPERATIONS.., BUT ARE INDEED OILFIELD RELATED AND THEY ARE INDEED EXPERIENCED.. ..SI ANY SHORTAGE OF WORKERS FALLS UPON THE SHOULDERS OF COMPANIES RECRUITING, AND NOT OFFERING QUICK TURN-AROUND TRAINING IN THEIR PARTICULAR FIELDS.. ..THE WORKERS ARE THERE.. ..ITS THE EMPLOYERS THAT ARE NOT...