HIRED! powered by hays specialist recruitment VOL 1 / 2014
women on a rig
interview with a recruiter
EUROPEAN UNCONVENTIONAL OIL & GAS
salary stats
Winds
of change
C
hanges, changes, changes. There’s little doubt that 2014 has been an eventful year so far that has the potential to change Europe quite significantly. First, the upcoming elections to the European Parliament that took place in late May could prove – I’m writing these words two weeks earlier – to change the EU lawmaking institution a great deal, mainly because of the rise of eurosceptic parties, such as Britain’s UKIP. The second game changer this year has been the Ukrainian crisis. European politicians suddenly woke up from a dream about stable and secure energy supplies from Russia. Which may actually turn out for the better, as new solutions to keep Europe’s energy supply secure, are coming up already. I only hope that action will follow words. Another change, which is not as obvious as the previous ones, is the upcoming Polish law on shale gas. The Ministry of the Environment keeps assuring industry that it will be accepted by the Polish parliament in June. But we have heard that before on a number of occasions when new laws were announced to go through the vote “soon.” Don’t hold your breath just yet, those of you that see shale gas as future of the Polish energy mix. For us, the editorial board of this publication, this year is also full of changes. After the long adventure with YoungPetro magazine, we have now started a career supplement to the Shale Gas Investment Guide, called HIRED! You are enjoying the first issue. Women in the oil and gas sector is our lead feature. Enjoy also the interview with a Hays Specialist Recruitment Operations Director about the perspectives for the oil and gas job market. It will give you some insight if you’re looking for a career in the sector.
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Jan Wypijewski
Contents MANAGING EDITOR Jan Wypijewski jan.wypijewski@cleantechpoland.com DEPUTY MANAGING EDITOR Gordon Wasilewski gordon.wasilewski@cleantechpoland.com EDITOR Katarzyna Wierzba GRAPHIC DESIGN Marta Tomczak PHOTOGRAPHY Ania Pietrowicz Marathon Oil Shell Flickr WRITERS Hubert Karoń Piotr Lewandowski Edyta Stopyra Dawid Wierzbicki PUBLISHED BY Cleantech Poland LLC ul. Krucza 51/31 00 - 022 Warsaw, Poland PRINTER Drukarnia Beltrani
P/4 GET TO KNOW US P/6 BY ACCIDENT I’M A RECRUITER P / 10 WOMEN ON A RIG P / 14 THE LATEST DATA FROM OIL & GAS LABOUR MARKET SUMMER 2014
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Edyta Stopyra Ambitious, motivated, not afraid of new challenges, a woman who believes in knowledge, people and passion. She tries to follow the words: “If you can dream it, you can do it.” Fascinated by a world of opportunities in the oil and gas industry, new technologies and innovations, especially in the drilling sector. She enjoys spending her spare time actively, a lover of great mountain expeditions and a good book. Jan Wypijewski Ambitious, hard-working, a powered by success kind of person. Fan of production and reservoir engineering. Always eager to face new challenges. Driven by the motto Volenti non fit iniuria (“To a willing person, injury is not done”) day-by-day. A traditionalist and free marketer, in private life passionate about genealogy, family history and travelling. Dawid Wierzbicki As the advert says Nothing is Impossible he tries to develop his skills, gain new experiences and broaden his knowledge. Nobody claims it will be easy but without hard work and determination you do not achieve anything. He always searches the best solution and after that he sets new goals for himself. Interested in oil and gas industry especially in new drilling technologies.
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INTRODUCING
our team Gordon Wasilewski Engaged in European shale gas information campaign through NGO advocacy and journalism. Enthusiastic and ambitious man seizing every possible opportunity of experiencing the O&G industry. Protestant work ethic, capitalism, knowledge and truth are his biggest values. Personally eager karaoke singer and progressive rock fan. Piotr Lewandowski Passion driven and critical thinking young professional. His main areas of interests are oil and gas job market and economy. Always thinking about his self-development and increasing efficiency and quality of his work. Believes in sincerity and quality of delivering his services and knowledge. He knows that in every difficulty there is a seed of greater opportunity. Hubert Karoń Creative, social and open-minded young professional with high motivation to pursue an international career in a dynamic and result-oriented organization. He always tries to do something more than just completing ordinary tasks. Hubert really enjoys working with people that are ambitious enough to take risk in creating new projects in order to develop their life. Great organizer and fan of spontaneous travelling.
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By accident
I’m a recruiter interview with gary ward by piotr lewandowski
Gary Ward is currently the Operations Director for Hays Oil & Gas. He is responsible for Central & South America, Middle East, Continental Europe, Russia and former CIS countries. Born in London, he grew up in Johannesburg, has worked all over the world. With over 30 years of experience in oil & gas recruitment he is a person with the great industry insights, and a good dose of healthy distance from himself. We have asked him a few questions about the dynamics of the oil and gas labour market.
PIOTR LEWANDOWSKI: Your resume is quite lengthy, but how did it all start? GARY WARD: My opportunity to join the recruiting industry was purely by accident. I loved water sports, so when I was in my early twenties, I was in the Netherlands on a break sailing and windsurfing, and saw a rig yard building Jackets and Topsides and couldn’t believe how big they were, started talking to one of the locals and he told me the company were looking for someone to co-ordinate the movements of English Labour between the UK and the Netherlands, arrange accommodation, reconcile timesheets etc. I applied and got the job and spent 18 months working on the rig yard before heading to Germany to do exactly the same for two years, learning all the time about the industry.
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PL: Statistics show that 50% of the oil and gas engineers will reach retirement age by 2015. A shale bonanza changes then the industry’s labour market. How do HR departments manage this rather significant change? Do you see this in increased hiring? And do workers’ profiles change? GW: The ageing workforce is a serious problem, especially for countries that normally don’t use a high proportion of imported foreign labour. The UK is one example where they export more people than they import. Several countries are investing in graduate programs and training for technician levels to counter the problem but it’s still accepted that there will be a huge shortfall before the end of this decade. All employers are looking for experience, simultaneosly graduates/techni-
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cian trainees are finding it difficult to actually get that experience in most countries. With more oil & gas producing countries looking to invest heavily in their own infrastructure those that have a flexible labour market that can make use of foreign labour will benefit and those that have a rigid structure that can’t import labour – will lose. Shale will add to this problem, especially in geosciences, subsurface engineering and operational personnel such as drillers and drilling crews across Europe. From Hays’ point of view, this type of problem is good as we would offer several recruitment solutions to facilitate the movement of personnel globally, however, this can only be done where the country allows foreign workers. PL: What are the current tendencies and the most visible changes in oil & gas job market – what are the reasons that stand beside them? GW: A lot of countries are now trying to bring their own nationals back that have gone to work in foreign countries, we’ve seen this a lot in S. America, however, the Middle East is changing their focus away from hiring cheap Indians; they are now looking to focus on hiring personnel from Europe and N. America, which is going to add to the shortages over the
next few years in certain disciplines, driven by the need for experienced engineers. PL: What upcoming projects are going to change the European oil & gas job market? GW: There are two areas to look at that will change the oil & gas business in Europe: Russia and their investment programs in infrastructure to supply both oil & gas to Europe, and the rest of the world and the Shale revolution, however, both are stuck in political and environmental issues at the moment but as we all know the oil & gas Industry has a way of dealing with these problems. PL: The youngest part of the so called Generation Y (born between 1983 and 1995) is about to graduate from universities and strengthen the oil & gas business. What’s a general opinion about their readiness to start working? Are they well prepared by universities? GW: Some countries prepare their graduates better than others; the main problem is the lack of practical experience. Graduates have the theoretical knowledge but lack the practical application and companies don’t want a large number of graduates they have to train. SUMMER 2014
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Unless they can get them really cheap, which is one of the reasons the Indians have had such a large impact on the Middle East. My feeling is universities should engage more with a broader range of potential employers to understand exactly what they are looking for from a practical point of view, but also I think the universities need to manage the expectations of the graduates better in preparing them for the global market as it is a global industry. One area a lot of universities are bad at is training for the needs of the market and understanding where the shortage of skills will be globally not just nationally, and as such they are training potential engineers in areas that don’t have a skills shortage thereby adding to the problem. PL: What are the biggest difficulties to overcome after entering the job market by fledgling graduates? GW: Personally, I think the biggest difficulty is managing their own expectations, they want big money quick, they want a great job quickly, and they want great locations quick. It’s about managing expectations and understanding the global market they’re entering.
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SUMMER 2014
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Women
on a rig by edyta stopyra The oil and gas industry has been dominated by men for much of its history. However, it is changing and recognizes the need to replace the aging workforce and fill leadership positions with people of diverse backgrounds and perspectives.
Forward-thinking companies welcome the benefits of a diverse workforce. They also recognize the strengths of a workforce with men and women of many nationalities and backgrounds working together and sharing common objectives. They want to offer equal opportunities to all employees. The result is that that they can draw on more ideas, innovations and contributions. Many doors of the oil and gas industry are being open for women in its effort to access the best talent. It includes more female representation in the senior management positions and the boards of directors. “The shale drilling boom has attracted new competition to the service market, which now looks like it might need to consolidate. Due to an aging workforce and difficult immigration restrictions, there is a need to attract more Science, Technology, Engineering and Mathematics (STEM)-skilled workers from schools as well as from other sources, such as the military. Increasingly, professionals with unconventional expertise are being
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sought for international assignments.” according to the Hays Oil and Gas Salary Guide. As the previous generation heads for retirement, the oil and gas sector has to face with a demand for new, young workforce. According to PricewaterhouseCoopers research, the E&P industry needs to recruit 120,000 new employees worldwide over the next decade to avoid the skills shortage. Increasingly, the competitive global job market is pushing companies to tap the enormous potential talent pool. All these factors have caused that women on the rigs, at the refineries and, more significantly, in positions where their authority and influence can have a substantial impact on the industry’s future are nowadays nothing extraordinary. WHAT ABOUT VARIATIONS BY GENDER IN NUMBERS?
The oil and gas industry has traditionally been a male dominated arena but the recent statistics make for some interesting reading. Women are taking the advantage of career
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prospects, opportunities improved by the oil and gas industry over the last few years. Data from the Bureau of Labor Statistics tells us about nearly half of the all new oil industry jobs during the first quarter of 2013 filled by women (1,800 positions). It was the 13th straight quarter of job creation in the oil and gas sector. Still, they make up 18% of all roles in the oil and gas industry as a whole. However, it is certainly a step in the right direction. “So, that half of the hires in the first quarter were women is, I think, a sign that some of the programs that the major oil companies and service companies have been putting into play in terms of trying to attract more women to the industry is actually now taking hold,” said Paul Caplan, president of Rigzone. Rigzone has analyzed data and got these results: in 2004, approximately 48,900 women worked in America’s oil fields. The numbers
from 2012 show that 78,400 women working in the industry – the increase of 29,500 in just seven years. As the research shows, the participation of women in the predominantly male oil and gas industry has changed and will continue to change. “I see more and more women and minorities within my company every day... It makes me feel good knowing that they are willing to hire the best candidates for the job despite their gender or ethnic background,” said Kelly Emanuel, NAM credit manager at Weatherford International. Companies are actively recruiting women with many launching internal goals for gender representation among senior leadership. Actually women and the younger workers make up more of the oil and gas workforce than last year. Demand for female engineers is strong, not only for typically connected with oil and SUMMER 2014
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gas fields, such as chemical engineering. The study conducted by BP and Rigzone (Global Diversity and Inclusion Report) have examined female representation in the energy workplace from the perspective of 3,000 oil and gas professionals. Below we present the results: • 47% of the respondents believed that gender plays a role in setting compensation • 36% of the respondents said that the male oil and gas professionals are more paid than the female oil and gas professionals • 44% of the oil and gas professionals noted that a salary is comparable between the genders • 20% strongly agreed that gender based discrimination is common in O&G industry. According to Hays Oil and Gas Salary Guide, women and younger workers make up more of the oil and gas workforce than last year. We can also notice the bigger number of female employees in North America. It may be related with a boom in the energy industry fueled by drilling in the shale regions. For example, the Marcellus jobs are specifically tied to drilling and hydraulic fracturing, as well as campaigns, scholarships, and internships. EXPECTATIONS VS. REALITY
There is a widespread belief that women can bring many important values to the oili and WOMEN AT WORK IN AMERICA’S OIL FIELDS 78, 600
80 70
2004 2012
60 50
48, 900
40 30 20 10 SOURCE: RIGZONE
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gas industry. Females are perceived as being able to analyze situations in a patient and understanding way. They focus on priorities, in order to manage challenges; their presence helps to bring a different point of view. They have an ability to balance the goals of the company while managing personnel. These and the other reasons mentioned in the first part of the article speaks for obtaining some more female representatives in the oil and gas industry. The industry perception on gender diversity is changing for the better. Most of the companies offer many opportunities to encourage women to choose this career path. To address any barriers to women’s participation, many major players in the oil and gas sector have prepared conveniences that enable women can find a balance between work and the family life. We could find here: a positive working environment, the assurance of a workplace hospitable for women, chances for professional development, and childcare facilities for working mothers. GIRLS CAN WORK ON OIL RIGS, TOO…
The element that excites people is the very steep learning curve and taking on some real responsibility. Involvement in big projects, possibility of challenging careers, and travel opportunities are attracting both, male and female employees. The oil and gas industry has progressed. Women are playing an evergrowing role in the oil industry as: technicians, engineers, managers, and much more. However, they must be prepared to face certain challenges in their careers when adapting to the male-dominated industry. A great example which shows the rise of employment for women in the oil patch is Savanna Energy Services. The company employs 16 women now and they want to hire more: “fit, active women who like working outside and getting their hands dirty.” Women can advance to more responsible positions as they gain some more experience, starting with the leasehand position, through
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floorhand, then motorhand, derrickhand, driller, to finally become the rig manager. “I hope people will give us a chance to change their minds about some of the stereotypes they might have of working on a rig,” said Helgi Eyford, team leader in Savanna Energy Services. A little different situation concerns offshore: many offshore jobs require a combination of physical strength and a willingness to work in dangerous conditions among a harsh, male-dominated environment. There is no doubt that rigs are very difficult places to work whichever the sex. Extreme conditions physically demanding jobs make life on the rigs as a challenge. Common stereotypes say that offshore work is designed for men, but companies in several industries may have an offshore job waiting for ladies. Despite the increasing popularity of offshore rigs, women
are still a minority. Approximately, according to Macleans Magazine, 5% of offshore oil jobs go to women. A FEW WORDS TO SUMMARIZE…
The participation of women in the predominantly male oil and gas industry has changed and will continue to change. Workforce diversity in the oil and gas industry promotes and increases efficiency, competitiveness, innovation, and contribution. At the end, here are a few words spoken to women by Lisa Cavanaugh during Women in Energy: Closing the Gender Gap Session (19th World Petroleum Congress in Madrid, 2008): “People in this industry respect knowledge and confidence and the strength of your convictions. You need to be able to commit time and energy to continue to improve and sharpen your skill sets to adjust to technological changes.”
SUMMER 2014
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THE LATEST DATA FROM OIL & GAS LABOUR MARKET
powered by hays specialist recruitment
ANNUAL OIL AND GAS SALARIES IN SELECTED COUNTRIES
200,00 200,000
GLOBAL SURVEY
$USD
Local average annual salary Imported average annual salary
150,00 150,000
SOURCE: HAYS OIL AND GAS SALARY GUIDE
100,000 100,00
St a Am tes er of ica
wa y No r
Un ite d
Sp Un ain ite dK ing do m
ma nia
l ga
Ro
tu Po r
nd Po la
ds
ly
he rla n
Ita
Ne t
Fr an ce
De nm a
rk
50,000 50,00
Norway is the undisputed salary leader. According to the Hays Oil and Gas Salary Guide, a local employee can expect to make around $180,000 USD on average. In Western Europe, an average local salary hovers around $100,000 USD; in Poland an employee will get half that figure.
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GLOBAL SURVEY
OIL AND GAS SALARIES BY DISCIPLINE
Annual salaries by discipline area
Operator/ Technician
$USD
Graduate
Intermediate
Senior
Manager Lead/ Principal
Vice President/ Director
Business Development/ Commercial
53,600
36,000
41,800
59,700
101,100
168,100
Construction/ Installation
61,000
37,000
54,500
76,800
105,700
188,000
Downstream Operations Management
55,000
42,000
50,000
83,700
92,000
163,400
Drilling
65,200
37,000
67,900
86,900
125,800
199,900
Electrical
61,200
38,100
48,500
70,100
87,200
N/A
Estimator/ Cost Engineer
35,000
30,000
46,700
74,000
102,000
N/A
Geoscience
60,000
45,000
56,000
95,400
137,100
222,300
Health, Safety and Environment (HSE)
42,500
34,500
55,800
71,800
94,500
182,300
Logistics
55,900
31,300
35,000
65,000
85,000
116,900
Marine/ Naval
72,000
32,900
67,600
80,300
98,200
175,000
Mechanical
50,000
38,000
42,600
69,200
87,100
102,000
Piping
47,000
34,000
43,000
59,900
86,900
N/A
Process (chemical)
49,400
38,900
46,200
73,700
113,000
125,400
Production Management
55,800
32,400
52,100
79,600
109,700
242,200
Project Controls
55,000
40,000
50,600
72,600
111,200
156,500
Quality Assuarance, Quality Control (QA/ QC)
49,300
36,500
53,700
60,000
92,900
134,000
Reservoir/ Petroleum Engineering
45,900
44,800
67,800
105,700
131,900
262,800
Structural
57,700
36,000
41,800
73,000
93,000
204,100
Subsea/ Pipelines
54,200
41,400
62,400
89,100
134,500
199,000
Supply Chain/ Procurement
45,600
31,900
53,800
72,100
86,600
186,800
Technical Safety
61,300
35,000
60,700
74,300
115,200
185,000
SOURCE: HAYS OIL AND GAS SALARY GUIDE
The discipline which is in demand in Europe is Pipeline/ Subsea Engineer. The average salary for this profession reaches $89,100 USD. The second most sought after profession is Directional Driller with the average salary of $67,900 USD.
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TOTAL COMPENSATION
SHARES OF BENEFITS FROM 2010 TO 2013
PERCENTAGE
BENEFITS
2010
2011
2012
2013
Bonuses
36.7%
38.1%
42.8%
42.8%
Health plan
25.7%
27.9%
32.4%
33.2%
Home leave allowance/ flights
19.1%
21.2%
23.9%
24.0%
Hardship
20.6%
21.7%
24.3%
22.8%
Housing
20.0%
20.4%
24.5%
23.0%
SOURCE: HAYS OIL AND GAS SALARY GUIDE
According to the Hays Global Oil and Gas Salary Guide, bonuses remain the most popular benefit that was offered by the companies, nevertheless health plans are on the increase.
WORKER AGE
OILFIELD DEMOGRAPHICS
Male [%]
2.0 2.1
Female [%]
4.7
55-59
7.8
4.9
50-54
8.6
45-49
8.5
40-44
10.1 11.4 11.5
13.7 14.4 15.5
35-39 30-34
17.6
13.7
25-29 4.5
24 and under
10
19.1
15
20
PERCENTAGE
Male [%]
Russia and CIS
86.8
North America
81.6
Middle East
95.8
25
MALE/FEMALE
REGIONAL GENDER DIFFERENCES
88.7
22.7
6.6
5
South America
SOURCE: HAYS OIL AND GAS SALARY GUIDE
60-64
0.3
Female [%] 11.3 13.2 18.4 4.2
Europe
89.2
10.8
Australasia
89.3
10.7
Asia
92.7
Africa
91.6
7.3 8.4
20
40
60
80
100
SOURCE: HAYS OIL AND GAS SALARY GUIDE
65 and over
YEARS