With the collapse in the oil price in 2014 the oilfield services sector there was a massive 35% reduction in headcount in the oilfield services industry between 2014 and 2016, however, since then workforce levels have remained stable according to Rystad Enregy in its Oilfield Service Newsletter.
The higher oil price this year is bringing the sanctioning of new offshore projects and in 2018 Rystad Energy expects to see 100 projects worth some $95bn sanctioned compared to just 45 projects in 2016.
Looking ahead the analyst sees more projects being sanctioned and the report said: “With an additional 100 projects expected to be sanctioned in 2019, with higher average cost per project, the required activity levels for these would be 80% of the peak in 2013.”
The impact of this renewed project activity would be a sharp rising in hiring by offshore service companies.
“Together with expected continuous growth in shale market, we should see growth of the overall service sector labor market to the levels seen in 2010. The 20% growth expected towards 2020 would call for massive recruitment and is good news for professionals that want to enter, re-enter or switch paths in the oil and gas sector,” the report said.