After four years of shedding more than 440,000 jobs in the global oil and gas industry, the majority of companies now expect “significant” increases in recruitment in 2018, according to a new survey.

Growth returns to the energy sector

The survey of more than 3,000 companies worldwide, conducted by technical and engineering recruitment firm NES Global Talent and oilandgasjobsearch.com, found that 89 per cent anticipated increasing staffing levels or, at least, maintaining existing levels over the coming 12 months.Some 17 per cent of respondents expected to increase their workforces by more than 10 per cent, while almost a fifth said they were likely to grow by between 5-10 per cent and 23 per cent expected to increase staffing by up to five per cent. Only 11 per cent said they were looking for further cuts.The news on salaries was also encouraging with almost half the firms expecting wages to increase by at least five per cent over the coming year.Tig Gilliam, chief executive 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.“While this activity is being led by a sharp increase in investment in US shale, there has also been an up-tick in capital projects being approved, which will positively impact the industry across all regions. With our own staff operating in over 60 countries, the increasingly positive tone of our clients and contractors is a welcome signal of the turnaround in the market and the participants in this survey echo that sentiment.”

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Further coverage of the oil and gas industry:

•  Trends in the global oil and gas industry
•  Offshore Europe hears of renewed optimism in North Sea
•  New technology dominates opening of ‘offshore Europe’

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Confidence grows in the North Sea as Oil market begins stabilising

Alex Fourlis, managing director of oilandgasjobsearch.com, added, “There is a sense of positivity throughout the guide, the likes of which we have not seen since 2013 and can be read as an indication of a potential stabilisation of the oil market.“This is key to kick-start projects that have not been viable for a while and will have a positive effect on job volume and salaries across the industry. Comparing the number of jobs posted throughout the industry in the year to the end of July versus the same period in 2016, there has been a two per cent increase, with jobs from corporates up by eight per cent.”A total of 3,000 employers responded to the survey, part of the Oil and Gas Outlook 2017 report, which signals a return in confidence since the oil price stabilising since July.In the UK, Lee Anderson, operations director at NES Global Talent, said that prospects in the North Sea were now looking brighter than they had been for several years.“Confidence is now returning to the market,” he said. “Although we are still at the very early stages of the recovery we are now seeing clients look at new development opportunities and further exploration in the North Sea.”Commenting on Edinburgh University’s oil and gas study published last month, Deirdre Michie, chief executive of Oil & Gas UK, said, “There are up to 20 billion barrels of oil and gas resources still to be recovered on the UK Continental Shelf (UKCS), based on production forecasts provided by the Oil and Gas Authority.“Production has increased over the last two years and we expect that to continue to rise. Significant new capacity has been added to the UKCS. Nine new fields began production in 2016 and a further seven started producing in the first half of this year - most of which will still be producing in 2030.“A further 12 are due on-stream by the end of next year. Some notably large developments will still be producing towards 2050. Advances in technologies are also presenting fresh opportunities and helping make discoveries commercially viable.“To ensure the remaining potential of the UKCS is realised, we need to keep operating costs low, bring in new investment and maintain a relentless focus on exploration and enhanced recovery.“The UK Government forecasts that two thirds of the UK’s energy will come from oil and gas in 2035. We must maximise recovery of our domestic resources so that we can continue to help to meet the UK’s energy needs and safeguard the 300,00 UK jobs our industry supports.”

Decommissioning continues growth 

Further good news is expected to come out of the Offshore Decommissioning Conference 2017, which is sponsored by Aberdeen Harbour Board, and run jointly by Oil & Gas UK and Decom North Sea. The event takes place from 27-29 November at the Fairmont Hotel, St Andrews.Acknowledged as one of the most extensive decommissioning events in the industry’s calendar, the three-day conference brings together experts in analysing market trends, industry regulation, cost strategies, supply chain capabilities, well plugging and abandonment, technology and business opportunities offered by the sector.Oil & Gas UK’s upstream policy director, Michael Tholen, said, “The key to helping the UK supply chain seize the opportunities that the emerging decommissioning sector presents is to ensure companies have the most up to date market intelligence.“Delegates at the conference will be among the first to hear what our annual Decommissioning Insight report reveals about the market in the UK, Norway, the Netherlands and Denmark.“Decommissioning is gradually taking its place alongside exploration and production as part of the lifecycle on the UKCS.“Experiences companies gain when operating in the UK market will serve them well in the international scene.“Our supply chain’s emerging track record of cost efficient and environmentally responsible delivery is building a world-class centre of excellence in the UK.”Decom North Sea chief executive, Roger Esson, said, “While current market intelligence is critical to the objective of efficient and cost-effective North Sea decommissioning, maximum results will be achieved when that information is considered alongside the industry’s ability to carry out the work required.“The Offshore Decommissioning Conference will see the launch of Decom North Sea’s Supply Chain Capacity and Capability report, which I believe will go on to become a staple of the decommissioning sector.“Providing an accurate annual reflection of our capacity to fulfil not only the North Sea, but global decommissioning demand, it will allow the supply chain to plan for future, identify alternative contracting and commercial arrangements and ensure it is ready to optimise the opportunities that arise.”For related news and features, visit our Enterprise section.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory  

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