Hays Oil & Gas Global Job Index cools slightly in the third quarter 2013
(PRWEB UK) 19 November 2013 -- The Hays Oil & Gas Global Job Index for the third quarter of 2013 showed a slightly cooling oil and gas labour market around the world when compared to last quarter.
The Index, which charts the number of jobs posted on nine oil and gas portals across the world, slid slightly to 1.7 in September 2013 from 1.75 in June 2013. The Index average of 1.7 for Q3 is also slightly lower than the average of 1.9 during the same period last year. The Index was established in October 2010 when it was set at 1; all subsequent months have been compared to this benchmark. The results from Q3 indicate that demand for mid to senior level professionals will increase; particularly for those experienced in unconventional reserves, while shortages will continue for engineers with subsea expertise.
“While global economic uncertainly in 2012 continued to keep regional oil and gas labour markets slightly depressed, Q3 of 2013 indicates that the situation is stabilising,” said John Faraguna, Global Managing Director of Hays Oil & Gas. “We anticipate that there will be a gradual return to much higher numbers for the Global Job Index in Q4 and Q1 of 2014 with decreases in the price of crude oil fuelling demand.”
Crude prices have dropped below $100/bbl, the lowest they’ve been since June, as supplies have risen particularly due to unconventional production in the United States. A continued gradual improvement in the worldwide economy over the coming months should keep crude prices near the $100/bbl mark. Consequently, we anticipate global industry activity to largely remain flat.
TRENDS BY REGION
As well as a global perspective, the Hays Oil & Gas Global Job Index also provides a measure of month-to-month jobs posted by region. The figures from July to September 2013 (Q3) reveal:
Europe
A more positive sentiment toward the economy has taken hold in the UK and Europe, and yet the oil and gas labour market has remained relatively flat, and even declined slightly in Q3. The recently strong Gathering & Processing market appears to have tightened whereas mid and downstream demand seems strong, particularly within continental Europe. In the UK health and safety requirements along with specialist engineering skills and subsea experience continue to be areas with a significant shortage.
Australasia
The newly elected Australian government has begun to put steps in place to remove red tape and facilitate acreage releases and approvals for onshore exploration bolstering demand for oil and gas professionals, and creating a stable labour market in the process. Many large scale employment services contracts have been awarded for big ticket LNG projects, and offshore trades and labour resources specifically focused on vessel crewing and logistics are beginning to see increased recruitment levels. Australia has also seen increased demand for their specialist fabrication and QAQC candidates from overseas markets as work continues to build in major fabrication yards.
Asia
Rich in resources and targeted as a region for growth by many multinational corporations, the Asia Job Index has demonstrated a consistently high level of vacancies that continues to outpace global markets. Exploration activity in the region is likely to continue, with a particular interest in shale gas/ shale oil deposits, mainly in China. With existing and new fields in Malaysia, Indonesia and Vietnam driving the Asian oil and gas market, local independent operators and majors are continually on the lookout for Gathering & Processing candidates to support offshore and onshore operations. Drilling operations are keen on candidates with non-conventional and deepwater experience. Additionally, senior drilling engineers have proven to be in high demand.
North America
The North American labour market has remained relatively flat and stable since Q2, weathering the U.S. government shut-down admirably and perhaps buoyed by the Canadian recruitment market where oil companies are focusing on developing existing properties rather than investing in exploration. Across North America engineers in enhanced oil production and recovery as well as development geoscientists continue to be in high demand.
South America
The overall outlook in South America is very positive, with a steadily increasing labour market due to high levels of job availability and increased wage pressure. This increase can be explained by the new investments in Colombia and Peru associated with the arrival of international companies that are generating a volume of new employment opportunities with generally better conditions and benefits than their local counterparts. Due to these new investments construction and installation professionals will be needed to get projects off the ground.
Africa
While the labour market recovered many of the jobs it lost at the beginning of the New Year, there has been a steady decline in jobs from July to September mirroring Q3 in 2012. However, Africa continues to emerge as a potential new source of energy so there is continued optimism among major organisations in this region. There has been an increase in demand for people with pipeline experience and project management skills, particularly in the north. While there is a trend to reduce a dependency on expatriates, the local market has considerable maturing to do before it can fill gaps.
Commonwealth of Independent States (CIS)
The 2013 labour market rebound continues to be slow, and Q3 traditionally reflects a low season in the Russian market. The main onshore oilfields are situated in remote locations, and all the construction and commissioning work is usually planned during the autumn-winter season when the ground is frozen allowing for the delivery of heavy equipment to work sites. As a result we anticipate that construction and installation professionals will be in high demand.
Middle East
The Middle East remains the strongest labour market with the local Index reaching 2.24 in September, well above the global average of 1.7 for the same month. This indicates the release of a number of projects that were originally postponed in Q1 & Q2. Experts in geosciences particularly with IOC experience will remain in high demand for the remainder of 2013. Drilling contractors and related well engineering services companies are presently competing to retain staff and find ways to attract new staff for upcoming projects.
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About the Hays Oil & Gas Job Index
The Hays Oil & Gas Global Job Index provides a measure of month-to-month jobs posted on the principal online job portals within the global oil and gas industry. The data is compiled by a team of analysts and researchers, and is broken down to reflect regional differences in hiring activity.
To view further detail on the index and the regional results please go to the Hays Oil & Gas website on http://www.hays-oilgas.com.
About Hays Oil & Gas
Hays is the leading global specialist recruiting group. Hays Oil & Gas is the expert at recruiting qualified, professional and skilled people across the full lifecycle of the global oil and gas industry. Its recruiting experts deal in both permanent positions and contract roles within upstream, project development and downstream operations.
About Hays
Note to Editors
Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Asia Pacific and one of the market leaders in Continental Europe and Latin America. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2013 the Group employed 7,840 staff operating from 239 offices in 33 countries across 20 specialisms. For the year ended 30 June 2013:
– the Group reported net fees of £719 million and operating profit (pre-exceptional items) of £125.5 million;
– the Group placed around 53,000 candidates into permanent jobs and around 182,000 people into temporary assignments;
– 29% of Group net fees were generated in Asia Pacific, 40% in Continental Europe & RoW (CERoW) and 31% in the United Kingdom & Ireland;
– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;
– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Colombia, Chile, China, the Czech Republic, Denmark, France, Germany, Hong Kong, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA
Deepa Bose, HAYS, http://www.hays.co.uk, +44 2072003760 Ext: 44, [email protected]
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