30% Rise in Daily Rates for Oil and Gas Engineers
The price per barrel of Crude Oil is currently around $100 per barrel (February 2011), predictions are that by 2020 it will rise to $350 per barrel (based on forecasts from the U.S Energy Information Administration). These predictions are based on the fact the Oil and Gas industry cannot keep up with worldwide demand and as a direct result the industry is rich with opportunities.
The rapid growth of new economies such as China and India, coupled with commodities traders bidding high, are the two largest reasons why demand is so high. Accelerating, both full time workers and contractors within the Oil and Gas job market.
It is expected over the next five years that £40 billion will be invested in developing new and existing fields in the North Sea, bringing 15,000 new positions. Due to the flexibility of most Oil and Gas projects, many roles in the Oil and Gas industry are being posted on a contract basis.
In 2010, daily rates for Oil and Gas contractors increased by 30%. Matt Underhill, managing director of Hays Oil & Gas, said contractor day rates were a good indicator of the state of the job market as they reacted quickly to short-term changes in demand for skills.”To have an increase of this level shows the UK oil and gas industry is on a strong recovery curve following the tough times of 2008.”
Underhill also commented, “There is a definite risk of skill shortages in the UK oil and gas market and it has not gone unnoticed – 42.3% of UK based respondents believe the most significant issue the industry will have to tackle in the next 12 months is skill shortages.” This is positive news for contractors as they can demand higher daily rates due to the shortage of skilled candidates.
NEW Oil and Gas Resource Centre Launched to help Contractors
In response to this increase of demand for Oil and Gas contractors and the lack of an information hub on the Internet, SJD Accountancy, the UK’s largest accountants for contractors with more than 10,000 limited company contractor clients many of whom are Oil and Gas Engineers, have launched a new Oil and Gas Engineer Resource centre on its website to give advice to potential and existing Engineers looking to get into this growing industry.
The Resource centre will include clear, easy to read advice on: becoming an Oil and Gas Engineer, benefits of becoming an Oil and Gas engineer, rates of pay and finding a contract with Cheveron Texaco, Worldmald Tyco, Technip, Talisman, ConocoPhilips, Wood Group, Hydrasun, Subsea7, Shell, Exxon Mobil and BP.
In addition, the website has a wealth of resources for Contractors. There is simple to understand information on all the frequently asked questions about becoming a contractor, information on tax, and how to make the move from a permanent position to contracting.
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