The Oil And Gas Job Scenario Likely To Remain Grim

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The oil and gas industry is reeling from the dip in crude oil prices. The entry of Iranian oil is likely to make matters worse. Leading oil and gas companies are taking some cautionary measures to tide through the tough times ahead. These include announcing job cuts and a decline in investment for exploration and production. Read this article to find out why the job scenario in the oil and gas industry is likely to remain grim for the rest of the year.

Oil And Gas Employees Are Ready To Take A Pay Cut

Understanding the situation that oil and gas companies are faced with, many employees are ready for salary cuts, as long as they don’t need to forego their jobs. Traditionally known for high-paying jobs, the oil and gas industry is crumbling under the pressure of low crude oil prices. This has forced many companies to reduce the salaries and even lay off employees.

In a recent survey, it was found that many oil and gas workers are ready to consider a cut in their salaries, instead of losing their jobs. This change in mind-set reflects the sorry state of affairs in the oil and gas industry.

Valerie Jones said in a recent article:

“Oil and gas salaries globally have declined and employees are willing to consider salary cuts if it means keeping their jobs. Findings from the “2016 Oil & Gas Global Salary Guide” by recruiting group Hays plc revealed that salaries decreased by 1.4 percent due to workforce redundancies and reductions while 51 percent of employees would take a drop in pay if it means keeping their current jobs.“

Rig Counts And Drilling Permits Have Declined

The oil rig count has decreased by 68 percent and the number of drilling permits issued are down by 70 percent, when compared to figures in 2014. This indicates that the oil and gas job scenario will continue to be grim. With more layoffs being announced this year, job aspirants will be better served if they study further or prepare to take on challenging roles in the oil and gas industry. This way, they will find it easy to land lucrative jobs in the oil and gas industry when the market recovers.

Jennifer Hiller said in a recent article:

“Compared to peak levels established in 2014, the rig count is now down by 68 percent, drilling permits are off 70 percent, and oil and gas well completions have each declined by about 60 percent.” “Massive layoffs” have caused total oil and gas industry employment to decline from a record 306,330 workers in December 2014 to about 246,150 in December 2015.”

The oil and gas job scenario is expected to remain grim, given the continued slump in crude oil prices, the entry of Iranian oil in the global market and the readiness of oil and gas workers to take a pay cut, if they get to keep their jobs. This holds true, whether it is oil and gas companies in London or Houston. The number of oil rigs and drilling permits have also declined, marking a slump in profits and an adverse impact on the oil and gas operations.