Oil and gas recruitment continues to suffer amid market uncertainty

Oil rig workers
Source: DollarPhotoClub

In spite of the small gas and oil price increase within the last few months the oil and gas industry is still in a rather challenging situation at the moment. Such uncertainty regarding future industry development keeps HR specialists cautious when it comes to hiring new employees.

According to official statistics revealed by Rigzone at the end of July, oil and gas companies are reducing their hiring activities. The main reason cited being the uncertainty surrounding future perspectives in this field. These staffing reductions are observed even in spite of the slight gas and oil price growth over the last few months, with 51 per cent of global oil and gas hiring managers polled saying they had decreased their hiring efforts. Statistics also show that 13 per cent of HR managers have already discontinued the process of hiring new specialists.

The situation may get worse as 54 per cent indicated that they believed job cuts would be likely in the next six months. This could lead to many specialists being left without work, resulting in higher levels of competition in the labor market. With more qualified and experienced specialists applying for jobs in the oil and gas sector, employers may be able to offer lower salaries which would be beneficial for the companies.

This news comes not long after oilfield giant Halliburton officially announced the closure of its Western Pennsylvanian Plant a few weeks ago. Company representatives reported that of the 430 employees who worked on this separate enterprise division, 350 would be transferred to subsidiaries in Ohio and Pennsylvania, the rest will lose their jobs.

It seems HR managers of oil and gas companies are reconsidering their approach to the current situation on the labor market, preferring to consider future needs for qualified specialists over current production requirements.

With many experts believing the necessity for new employees will only decrease in the near future we can’t say if this will turn out to be good or bad for the industry, the only thing that is certain, is that the situation has changed drastically.

Additional reporting by Dmitrii Zaitsev.

Article continues below this message

Have your opinion heard with Shale Gas International

We accept interesting, well-written opinion and analysis articles of up to 1,500 words, that offer unique insights into the shale industry. The articles cannot be overtly promotional in nature and need to fit into at least one of our content categories.

If accepted, the article must be exclusive to Shale Gas International website and cannot appear on any other websites, publications, etc. Each article may contain up to three links to external websites relevant to the content discussed in the piece.

If you would like to contribute to Shale Gas International website, please contact us at: editor[at]mw-ep.com