AGEING WORKFORCE CONTRIBUTING TO RISING DEMAND
AGEING WORKFORCE CONTRIBUTING TO RISING DEMAND FOR OIL AND GAS ENGINEERS OVERSEAS
50% INCREASE IN REQUIREMENTS FOR CONTRACTORS IN LAST 18 MONTHS
Despite the job casualties among North Sea oil and gas workers, international demand is very much on an upward curve. Thats according to engineering recruitment specialist CBSbutler. Organisations have learned harsh lessons from the halt on building programmes instigated during the last oil price lull of the late 1980s and 90s and are probably running at about three years behind, says David Leyshon, managing Director of CBSbutler. Consequently, large projects such as those in Nigeria, Croatia and the Caspian Sea are going ahead in the hope that oil prices will be buoyant once the projects are completed.
Leyshon says that one of the main causes of the shortage is an ageing workforce due to an under investment in succession planning in the 90s. The average age within the oil and gas engineering market is 56, says Leyshon. This means that there is a huge talent gap and consequently we are seeing continued upward pressure on contractor rates. Demand has increased by more than 50% in the last 12-18 months mainly driven by projects around the new gas to liquid technology - particularly in Qatar - the largest in the world to date. With another three of these projects planned in the region during the next 12 years, it seems unlikely that there will be any let up in demand.