The number of oil & gas sector vacancies increased across all regions during the second quarter of 2014 compared with the previous quarter, with the exception of Australasia, according to the Hays Oil & Gas Global Job Index Q2 2014. 

On a year-on-year basis, all regions with the exception of Australasia and Europe reported an increase in oil & gas sector job vacancies, reinforcing Hays’ view that the global economic recovery is gaining momentum.

The Hays Global Job Index rose to 1.99 in Q2 2014, up from 1.65 in Q1, against a baseline of 1.00 set in October 2010.

Across North America the Hays Oil & Gas Index was 2.28 in Q2 2014. The LNG (Liquefied Natural Gas) market continues to see strong hiring activity both in large scale export facilities and smaller domestic projects and demand for LNG specialist knowledge is expected to remain high for the remainder of 2014.

There has been a large focus on production optimisation and completions. This in turn has led to an innovation boom in technologies based around these areas. Organisations who work in the oil tools sector, especially in completions, have experienced an increase in demand for their services. Therefore, as this market has grown, employers are placing significant importance of attracting top talent.

The South American Index was 2.49 during the second quarter of the year. Following changes to legislation, Mexico is set to open up large reserves of both deep water and onshore shale. As a result, significant investment for major operators is expected, with job opportunities most likely to be created in Mexico and Houston.

In Colombia, however, difficulties in attaining environmental licences, security issues, and complex negotiations with local communities are delaying business activity in the region. There has been an increase in the number of professionals moving between Argentina and Colombia as employers seek to address the demand for top talent. As new investors are attracted to the area, there will be a continued rise in demand for candidates in the construction and projects sectors.

The European Index was 1.88 during Q2 2014. There has been a surge in the number of jobs advertised in the last two months, following the announcement of several new projects. Within the UK market the original equipment manufacturers have experienced a strong quarter, along with consultancies and Engineering, Procurement, Construction and Manufacturing (EPCMs) companies. All-in–all, the UK market remains somewhat fractured. Several large organisations have made redundancies – often heavily publicised – and yet many organisations are still struggling to source these very same skills.

Across Europe, the job market is also looking more positive. There are numerous projects underway which has seen an increase in demand similar to that within the UK. Engineers with design experience remain in high demand especially in relation to process engineering and plant upgrade projects.

There haven’t been any significant policy changes throughout the quarter, but it is likely the Scottish independence vote will feature heavily in Q3, as this will have a knock on effect across the region.

The African Index in Q2 2014 was 2.75. The region saw continued growth throughout the second quarter, as key projects in Angola, Mozambique, and Nigeria continued to drive job creation. 

South Africa’s oil & gas sector is set for growth, as an upsurge in exploration and the increasing prospect of the country’s offshore acreage point towards considerable upside potential for the country’s long-term upstream prospects. The country also has vast unconventional resource potential, and with growing political support for lifting the moratorium on hydraulic fracturing, Hays expects shale development permits to be issued in the second half of 2014.

However, the passage of the Mineral and Petroleum Resources Development Bill has caused widespread unease in the industry, and deep regulatory uncertainty may cloud the country’s long-term oil & gas outlook unless the government can offer greater clarity to potential investors. Should the government overcome the unease, demand for those candidates with deep and ultra-deep water experience will rise significantly, putting further pressure on the global talent pool.

In general terms, East Africa remains the hottest part of the region particularly in terms of exploration and production activity. There is a steady demand for geosciences and petroleum engineering expertise along with local in-country experience. Numerous companies continue to fight over the limited highly skilled and locally knowledgeable staff available.

The Ebola outbreak has had an impact on a number of companies operating in the region, even those whose focus is elsewhere in the continent. Concerns about the outbreaks has caused a decline in confidence within the markets for projects throughout the region, not just in West Africa.

The Asian Index in Q2 2014 was 2.56. The consistently high level of job vacancies across the region has seen salary pressure increase as candidates are now fully aware of the rising demand for their skills. However, employers continue to resist, and we are witnessing a widening gap between candidates’ salary expectations and employer offers, which extends the time to fill roles as employers hold out for skilled candidates within budget. This disparity is particularly pronounced when it comes to employing local talent, as the workforce becomes increasingly savvy with regards to pressure on employers to recruit Asian nationals. 

The focus in both Malaysia and Singapore to recruit local workers is making it increasingly difficult for companies to source workers. Companies vying for highly skilled local workers are forced to pay a premium.

The Australasian Index was 1.07 in Q2 2014. While the Australian economy has finally showed some signs of stabilisation, this has not yet spread to the oil & gas industry, which showed a significant year-on-year decline in the job index. The removal of Australia’s Carbon Tax will make the region more competitive again; however, it will likely take a bit of time before it makes an impact. Salaries have remained stable with specialist areas still commanding higher rates. Salary increases will be highly unlikely in the coming months.

Across the Middle East Hays Oil & Gas Index was 2.22 in Q2 2014. According to Hays, the future looks increasingly bright for the region’s drilling industry as oil rig construction companies report significant increases in orders of drilling rigs. National oil drilling companies have confirmed onshore and offshore drilling projects, indicating that drilling will be an active area of the market through to 2016. 

As more projects are awarded, the battle for top talent continues to rise. Employers still hire contractors to staff project work, however in order to attract and retain the best skills; permanent recruitment is also on the rise.

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