Oil Workers Are Seeing A Decline In Wage Growth

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Known for its promising wage growth year on year, the oil and gas industry is witnessing a slowdown over the past year. With many oil and gas companies laying off workers in a bid to save on costs, they have managed to continue with wage hikes for existing workers, although it is considerably lower when compared to previous years.

Owing to the decline in crude oil prices, the oil and gas industry is seeing a decline in wage growth. Oil and gas workers in Houston area are the most affected as they have experienced a fall in wages. Although this can deter job aspirants from finding work in the oil and gas industry, the situation is likely to improve when crude oil prices begin to pick up.

Wage Growth Has Slowed Down In The Oil And Gas Industry

It is a well-established fact that oil and gas exploration and production workers have enviable pay packages. However, over the past year, wage growth has slowed down, resulting in stagnant pay or a marginal increase in wages for oil and gas workers.

Tom DiChristopher said in a recent article:

“Pay packages for exploration and production workers are still big by most measures, but they are no longer booming, according to a new report. After steadily rising on the back of America’s shale oil and gas revolution, wage growth has slowed considerably in the face of a year-long commodity collapse.”

The situation will likely improve when crude oil prices begin to recover. As of now, existing oil and gas workers need to be patient and be thankful for their jobs.

Workers In Houston Area Most Affected

It has also been reported that Houston area has seen a drop in wages for oil and gas workers. Taking the biggest hit, oil and gas workers in Houston are an unhappy lot as they have witnessed a drop in wages over the past year.

The drastic decline in wage growth can be attributed to the decline in oil prices around the globe, affecting margins and profitability.

Ryan Holeywell said in a recent article:

“Falling oil prices and a slowdown in the energy sector have meant stagnant oil and gas wages, with workers in the Houston area taking the biggest hit, according to a new study… Since 2006, oil and gas workers have enjoyed a 19 percent increase in wages, the most of any industry. Houston’s wages also showed signs of trouble according to the study. The city’s wages fell 0.2 percent from the fourth quarter of 2014 to the first quarter of 2015.”

This article highlights the development that wage growth in the oil and gas industry has suffered, owing to the drastic decline in crude oil prices. However, this situation is likely to improve, following an up stick in oil prices.