Hays Oil & Gas - October 2008

Hotspots

Lead/senior discipline engineers, including structural, piping, chemical process, instrumentation and electrical design engineers, are a major hotspot of demand across Australia, where a huge shortage of engineers exists. This is even more so the case for those with specific previous oil and gas experience.

Other hotspots include subsea and pipeline engineers. Most companies, especially in Victoria, require these candidates in order to grow the local assets, with the aim of winning major projects that were traditionally awarded overseas.

In New Zealand the EPCM sector is buoyant with several new and existing projects requiring design engineers and project managers of various levels. On the exploration and production front geoscience staff at the intermediate and senior level are required to cope with this developing sector.

Exploration for new commercially viable oil and gas fields is also increasing, so new venture and exploration staff will be required at all levels.

The coming quarter

The coming quarter will be very active. Victoria will be a particularly busy market given its number of onshore and offshore oil and gas assets. Melbourne in particular is becoming a centre of excellence for oil and gas, and with the major powers in the industry establishing a home base in the city, growth is going from strength to strength.

In light of candidate competition, most employers prefer permanent staff, but this same level of demand also means candidates are more accepting of, and in many cases prefer, contract roles as they are secure in the demand for their skills.

Companies in New Zealand are looking at increasing their permanent staff levels over the next quarter and into 2009. All sectors of oil and gas will require staff as several new exploration projects get underway.

Executive recruitment

With the energy sector being such a leading industry worldwide, capable executives are in continuous demand in order to cope with increasing demand and energy consumption and increase the production and profits.

Salaries

Australian salaries are expected to increase slightly this quarter in light of the shortage of skilled candidates and increased competition for those available.

New Zealand's oil and gas salaries have increased over the last year and as demand for staff across the region increases, it is expected that salary levels will experience a steady rise this quarter.

Candidate trends

Candidates in oil and gas typically follow the major project work, particular for large operating companies and iconic projects. As a result, those companies that have failed to win new work often see their employees look at other options.