Posted on 05/05/2011 6:06:03 AM PDT by thackney
Despite stubbornly high unemployment in the United States, the oil and gas sector is suddenly adding jobs in droves, as high oil prices and the economic recovery provide fresh incentive to pursue new projects from Texas to Iraq.
On the hunt for talent are major oil companies as well as lesser-known engineering firms, in a sweeping effort that recalls previous boom cycles and is likely to bring more jobs to Houston.
“We’re definitely back in heavy growth mode,” said Billy Stein, recruiting manager for Aker Solutions, a Norwegian engineering and construction company with offices in Houston.
Stein is one of many industry recruiters who converged on Houston this week for the 2011 Offshore Technology Conference, which concludes today at Reliant Park. Attracting more than 70,000 engineers and other technical professionals, the event is tailor-made for companies looking to fill vacant positions — and recruiters came ready.
BP had a lounge-like recruiting center set up in Reliant Stadium. Chevron Corp. hosted applicants at the Hotel Icon downtown. Others, including Saudi Aramco, had recruiting managers at booths on the show floor and were prepared to interview job candidates on the spot.
The renewed interest in hiring comes after some lean years for the industry, marked by recession, downsizing and cautious predictions of the future. When oil prices plummeted from the record highs of 2008 and energy demand stalled with the recession, Shell, BP and other oil majors cut thousands of jobs. Oil field services companies like Schlumberger and Halliburton and other support companies responded by making deep cuts of their own.
BP’s deadly Macondo well blowout in the Gulf of Mexico last year dealt the industry yet another blow by bringing most deep-water drilling activity to a halt in the U.S. offshore basin.
But in recent months, optimism began returning to the industry, as oil prices gave companies confidence to green-light new projects, such as massive offshore installations in the Gulf that can put thousands to work.
“The projects are all getting the go-ahead,” said Gavin Peavoy, North American operations manager for NES Global, which recruits engineers and other specialists for the oil and gas industry. Also spurring more hiring are growth in U.S. shale gas and oil drilling, resumption of exploration in the Gulf of Mexico and increasing international work in Brazil, Iraq and Africa.
Given the higher activity levels, NES is on track for 2011 to be its best year for revenue, he said.
Plenty of vacancies It’s difficult to get precise numbers on how many oil and gas jobs are available. But job search site Oilcareers.com noted that almost 12,500 new vacancies were posted in March – 60 percent more than a year ago. And online applications doubled.
Meanwhile, U.S. unemployment remains near 9 percent.
In the oil and gas industry as well, “there’s an element of caution still,” Peavoy said. Compared to the last hiring boom, from 2005 to 2007, companies are more cost- aware and are scrutinizing salaries more, he said.
But with the job market growing more competitive, representatives of several companies at the Offshore Technology Conference said they are already seeing things tighten.
“We’re not back there at the bubble yet,” said David Dickson, senior vice president of the North American region for French engineering and construction giant Technip. “But we could be back there by 2014.” He said the company is trying to fill a “reasonable number” of jobs but wouldn’t elaborate on how many.
Bill Westcott, director of Americas business development at INTECSEA, a unit of engineering and construction company WorleyParsons Group, said his firm is trying to add 25 hires to its Houston office, which now has about 300 employees. “It’s very competitive,” he said.
Good news for students While that may be a tough reality for companies trying to staff up, it’s good news to potential job candidates like Nathan Krohn, 21, a junior at Texas A&M University studying ocean engineering.
He toured OTC with a group of classmates Wednesday, and though not in the job market yet, he carried a flash drive containing his ré sumé just in case. He was keenly aware that when he exits school, he will have some good options.
“I’m just glad I didn’t graduate last year,” he said.
But is a darn big dark cloud...
Our local paper is always running a bunch of ads for truck drivers. If I’m ever unemployed the first thing I’m going to do is get my CDL.
Our local paper is always running a bunch of ads for truck drivers. If I’m ever unemployed the first thing I’m going to do is get my CDL.
Back in ‘08 it was $140 oil that drove gas to $4/gal. Why did gas surpass $4/gal recently with oil at only $113/bbl?
that is exactly my plan. however, may I suggest that you go to a school that guarantees you a job upon graduation? most places wont hire you without experience...which of course, you cant get without being hired and working somewhere...
Not if you’re a coal miner in West Virginia.
Obama and his EPA have seen to that.
(how ya likin’ yer Manchin vote now???)
In 2008, WTI traded at a premium over the “Global” oil price. Now, due to some new domestic production (like Bakken and other oil from Shale formations) and pipeline bottle necks, WTI is traded at a discount to the “Global” oil price.
The following are a few months behind, but if you compare the prices from early this year, to 2008, you will see the difference between the relative prices of the Quoted WTI and the average price of oil that the refineries purchase.
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F003048623&f=M
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R1200____3&f=M
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R1200____3&f=M
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=R0000____3&f=M
The result is average price refineries are paying now is early the same price today as they were back then to bring in the oil.
The average price for a barrel of oil purchased by US refineries in July 2008 was 129.03. The quoted price in the Media now and then is WTI delivered to Cushing next month.
Keep in mind most oil that is used in our refineries is not bought one month in advance on the NYSE, it as an average for more long term contracts.
Media reports like to bandy around “Energy Projects” as the latest hot buzz word. But they really mean oil and gas for this and many other articles.
Thank you.
And once you done that for a while you can go offshore or overseas.
Fellow I know is driving a water truck for fracking. His 80-100 hour weeks were cut back to 60 last week.
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPMR_PTE_NUS_DPG&f=W
Almost, but not quite. We are now about the same as the end of May 2008.
In ‘08 the price of gas never reached $4 around here.....close, but topped at about $3.90. Today it is $4.20 here in North-Central WV.
Interesting. California is still about 30¢ behind their 2008 peak.
http://eia.doe.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=EMM_EPM0_PTE_SCA_DPG&f=W
Well, I'm sure the Democrats will take care of THAT soon enough.
Charleston is always higher than my rural area. However, WV taxes are .155/gal LESS than CA......it just doesn’t make sense to me.
Your area seems to jump up quicker and fall back slower than the average. I guess your regional difference is due to local retailers and/or wholesale suppliers.
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