LABOUR MARKET AT USD 60 PER BARREL: Oil and gas sector remains stable
- Written by Lavinia Iancu
According to the European Commission, Romania’s economic growth forecast remains robust for 2015 and 2016, mainly due to the domestic demand and due to a stable labour market. In the oil and gas sector, the effects of drastic price falls have been absorbed, as the labour market has had a roughly similar level to the previous period, the representatives of Premier Global say.
Although the fall in crude oil prices has had a serious impact in general on companies in the oil and gas sector and related industries, in terms of labour market the consequences were not comparable to those experienced by the industry. “The sudden drop in oil prices has had, in our view, insignificant effects on the labour market in this sector,” says Daniel Neagoe, Business Director with Premier Global, a company that provides assessment, coaching and recruiting services. “Ahmed Zaki Yamani, one of the Ministers of Saudi Arabia in office for three decades now, said that ‘the Stone Age did not end for lack of stone and the Oil Age will end long before the world runs out of oil’ anticipating the current situation. Saudi Arabia, for example - although oil prices are at extremely low levels, compared to the previous period - has intensified its crude oil production, preferring to sell while the demand for oil is still there, instead of keeping oil deposits which might not be used following the disappearance of the demand for such an energy source,” the Premier Global representative further says.
Growing demand for labour force
Explanations on reducing the consequences of such drastic fall in the price of the oil barrel consist of several aspects, detailed by Daniel Neagoe. “The drop in oil prices caused, in fact, an increase in oil production to maintain a high level of income, which is likely to keep the oil price at low levels for an additional period of time. This may have the consequence of an increased demand for labour in order to supplement oil production. There is still a strong demand for professionals in the oil and gas industry, and as personnel turnover in this area is quite high, oil companies will try to keep valuable staff through various instruments of motivation, salary packages or favourable rotations, regardless of fluctuations in oil prices. In any case, employers’ offer has not changed and we think it will not diminish, because in this area cheap decisions are extremely costly. The offer gives priority to attracting experienced and qualified professionals that bring added value to the company, of course, in return for a consistent remuneration.”
Daniel Neagoe: Premier Global conducts recruitment campaigns for major oil and gas companies in the Middle East, Europe and Asia, at similar volume levels compared to the same period of previous years, as there is a healthy ratio between demand and supply on the labour market. Also, at least during recent years, no changes were observed on the remuneration packages offered, continuing to be at similar levels as in the prior period.
The mood within the sector “Regarding the state of mind in the oil and gas industry, both HR managers and engineers or professionals in this field, in an optimistic note, are focusing on continuing contractual obligations in a manner in which they are unaffected by market fluctuations. In other words, the job descriptions are unchanged, equally as the benefits were not subject to changes,” the Premier Global representative says.
The drop in oil prices caused, in fact, an increase in oil production to maintain a high level of income, which is likely to keep the oil price at low levels for an additional period of time. In conclusion, “the recruitment activity for companies in the oil and gas field remained at similar levels as compared to the same period of previous years, with a healthy ratio between supply and demand on the labour market. Also, at least in recent years, no changes have been noticed on the remuneration packages offered, they remain at the levels of the previous period,” Daniel Neagoe specified.