The oil and gas industry saw an overall increase in wages and benefits in 2012, according to the 2013 Oil & Gas Global Salary Guide. The report, published by Oil & Gas Job Search in collaboration with Hays Recruitment, stated that base salaries across the entire oil and gas industry rose by 8.5% in 2012—a shocking figure when compared to the current distressed economic conditions around the globe.
The study covered 53 countries over 24 disciplines from 25,000 respondents, and included salary information, industry benefits, employment demographics, and an economic outlook.
Once again, Australia and Norway found themselves at the top of the list for highest domestic wage in the oil and gas sector—each with an average annual wage above $150,000.
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“Both countries have limited skilled labour pools and significant workloads,” the report states, a combination that is bound to result in higher industry wages. Canada, Netherlands, and New Zealand were also chart toppers with an average base salary exceeding $120,000.
While most countries enjoyed a significant increase in wages, political instability stifled salaries in a few locations such as Iran and Venezuela, which boast average salaries of less than $47,000.
The report also highlighted a drop in benefits to oil and gas workers, continuing the downward trend seen in 2011. According to the report, a staggering 35% of workers are not compensated with any type of benefit. Although the number of workers receiving benefits fell, the number who received bonuses increased by 7.8% in 2012, with 42.8% of respondents reporting that they receive some type of bonus. On average, bonuses make up 11.3% of the compensation package.
Particularly noteworthy is the analysis on the migrating workforce. While some countries such as Europe and Asia rely heavily on local talent, others, such as the Middle East, rely mainly on imported labor. Where is the labor coming from? Asia, Europe, and South America exported the largest percentage of workers overseas, with over 43% of its skilled workforce jumping ship.
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With oil priced above $80 bbl, wages are likely to continue to rise, although at a more modest 4-6%, according to the report. On the whole, employers in the industry echo this sentiment and remain confident with the employment outlook as we head into 2013. Of the respondents, 73.8% rated their outlook as either positive or very positive.
When asked to rate their region of focus over the coming months, 33% of the responding employers reported that their primary focus would be the Middle East and Europe, while America garnered a meager 8.3%.
To view the full Oil & Gas Global Salary Guide 2013, visit https://www.oilandgasjobsearch.com/SalaryGuide
By. Charles Kennedy of Oilprice.com
However, eliminating certain oil and gas tax provisions, which are often inaccurately represented as “subsidies,” would compromise the industries ability to created more jobs,economic growth and could even bring the emerging renaissance to a halt.
Avoiding sequestrian by raising taxes on the energy industry is a common complaint among economists and energy personnel since economic development in the U.S. hinges on the success of the domestic energy sector.
Although the effective tax rate of the oil and natural gas industry averaged 44.3 percent from 2006-2011, many elected officials believe that the industry does not pay enough federal taxes.
However, between 2006-2011 other industries paid significantly less. According to Standard & Poor’s Research Insight, health care service providers paid a rate of 35.1 percent in taxes, and pharmaceuticals and industrial conglomerates a tax rate of 24.2 percent and 15.8 percent respectively.
The oil and gas industry is already the highest-taxed industrial sector in the United States and contributes roughly $86 million a day of taxes and fees into federal coffers.
The oil and gas industry is also the top creating job sector in the United States. The industry offers job-seeking workers better wages and salaries compared to other industries.
These workers, with the exception of gas station employees, maintain an average salary of $93,000, which is well above the average private sector wage.
Furthermore, when 4.5 million jobs were cut between 2006 and 2011 due to economic downfall, the energy sector added 120,000 new jobs.