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Jobs growth predicted for oil and gas sector

The stabilisation in the oil price since July has led to renewed confidence in the industry.
The stabilisation in the oil price since July has led to renewed confidence in the industry.

The oil and gas industry expects more jobs to be created than lost in the next year as confidence returns to the sector.

The results of a major global industry survey shows that almost 60% of employers expect to recruit more staff in the next 12 months. Around half of workers expect their salaries to rise.

More than 3,000 employers and almost 7,000 workers were surveyed for NES Global Talent and oilandgasjobsearch.com’s Oil and Gas Outlook 2017 report.

Since the price of oil crashed in 2014 an estimated 440,000 jobs have been cut in the sector worldwide.

However, with the price of oil having stabilised since July this year, the new research shows that almost 90% of employers expect staffing levels to either increase or remain the same in 2018.

Almost a quarter (23%) of employers expect to increase their workforce by 5%; almost a fifth, (19%) expect to increase staff by between 5 and 10% and a sixth (17%) by more than 10%.

Almost a third (30%) of employers expect staffing levels to remain the same with just 11% of companies expect to cut jobs.

Tig Gilliam, CEO of NES Global Talent, said: “Globally we are now increasingly confident that the market supports increased investment in the energy sector.

“Energy companies with the support of their partners have right-sized their organisations for the current levels of activity.

“With a stabilised price environment and lower cost profile more and more assets offer attractive returns on investment and operations.

“This increasing activity is leading the higher performing companies to refocus on recruiting quality people to lead and deliver value.”

Mr Gilliam said the sector activity is being led by a sharp increase in investment in US shale but that there had also been an uptick in capital projects being approved across all regions.

“The increasingly positive tone of clients and contractors is a welcome signal of the turnaround in the market and the participants in this survey echo that sentiment,” he added.

There has been a 2% increase in the number of jobs posted throughout the industry this year compared to last year.

Alex Fourlis, managing director of Oilandgasjobsearch.com, said results as positive hadn’t been seen since 2013.

He added: “This can be read as an indication of a potential stabilisation of the oil market which is key to kick-start projects that haven’t been viable for a while.”

rmclaren@thecourier.co.uk