Rigzone 2Q Survey Reveals Oil, Gas Companies Reluctant to Hire

Rig Zone ^ | 6/25/2015 | Valerie Jones|

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Still grappling with market uncertainty, 51 percent of global hiring managers decreased their hiring efforts in the past three months, according to Rigzone’s latest global hiring survey. Additionally, 13 percent have completely frozen their recruitment plans.

Since oil prices bottomed out in mid-March, the industry has seen slight increases in oil price per barrel, but not enough for oil and gas companies to feel comfortable enough to actively increase hiring plans in the near future, the survey revealed. In fact, 54 percent of global hiring managers said they believe job cuts are more likely in the next six months and 65 percent expect to experience a loss of budget for approved headcount in 2015. Since the beginning of the downturn, globally, the oil and gas industry has already seen more than 150,000 jobs lost.

A very valid concern among oil and gas companies during a downturn, especially with the continued challenge of the Great Crew Change, is employee attrition. According to the same hiring survey, almost 70 percent of global hiring managers expect an anticipated decline in voluntary departures of employees throughout the next six months.

Despite the decreased hiring and recruitment efforts, opportunities still exist for oil and gas companies to secure skilled workers, with 81 percent of global hiring managers expressing that the candidate pool has grown in the last three months and 34 percent said the time to fill open positions has shortened in the last three months. Additionally, 70 percent indicated candidates are not asking for more compensation compared to three months ago.

[HiTech RedNeck]

Bust cycle.

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“anticipated decline in voluntary departures of employees throughout the next six months”

Time to hunker down, hold on, and wait it out...

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Oil and natural gas production job declines tend to lag oil price declines
http://www.eia.gov/todayinenergy/detail.cfm?id=21772

Employment in oil and natural gas extraction and support activities in the United States reached nearly 538,000 in October 2014, but then it declined by about 35,000 jobs, or 6.5%, over the following six months, through April 2015, according to data from the U.S. Bureau of Labor Statistics (BLS).

Declines in oil and natural gas extraction and support employment tend to lag declines in crude oil prices. As prices of North Sea Brent crude oil fell from their June 2014 level of $112 per barrel, firms reduced the number of new wells drilled and the associated workforce. The count of drilling rigs in the United States, as measured by Baker Hughes, totaled 857 for the week ending June 19, 54% below the same point a year ago and the lowest level in nearly six years.

Declines in production jobs lag oil price declines. In July 2008, Brent crude oil reached a record-high monthly spot price of $133 per barrel, before falling to $43 per barrel by February 2009. Oil and gas production jobs reached a high of 391,000 in September 2008, two months after the oil prices had started declining. Employment in drilling, extraction, and support activities then continued to decline for 13 months, when the number of production jobs dropped by more than 51,000. Most (82%) of the decline in these jobs occurred after oil prices reached the lowest monthly level and were on the rise.

BLS data showing declines in national oil and natural gas production jobs between October 2014 and May 2015 represent a contraction of about 6.5% of the industry workforce. Although unemployment rates for states that are heavily dependent on resources production remain well below the national average, the effects of reductions in oil and natural gas jobs are different in key states.

In oil-rich North Dakota, the unemployment rate slightly increased from 2.8% in October 2014 to 3.1% in May 2015, and Nebraska has replaced North Dakota as the state with the lowest unemployment rate. Oklahoma’s unemployment rate also increased slightly from 4.1% to 4.3% in that period. But in Texas, where many reported reductions in oil and natural gas jobs occurred, the unemployment rate actually decreased from 4.7% in October 2014 to 4.1% in May 2015, because of offsetting growth in other areas of its more diverse economy.

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