Oil & gas recruiters are showing strong and consistent growth, regardless of the economic downturn or the six-month slump in oil prices.

Business publishers Plimsoll recorded a 17.6% increase in turnover for the UK-based recruiters operating in the sector in 2008, compared to the previous year, bringing the total market to £5.18bn in turnover.

Fear over falling oil prices have not ailed recruiters’ growth, as they continue to see new international developments.

John Richards, chief executive of oil & gas recruiter Mentor IMC, told Recruiter he is “excited” about the expansion opportunities with company
growth for the year end July 2009 forecast at 40%.

“Mentor is still investing, we are looking to hire several business developers, people with a technical background and we need senior staff,” said Richards.

Stuart Kennedy, sales manager at job board Oilcareers.com, told Recruiter the number of job postings had grown from 5,625 in January 2008 to 9,194 in February, adding drilling, geo-science, and health and safety positions were the most popular.

Developments in the liquefied natural gas (LNG) industry are causing an increasing demand for staff, particularly in Australia. At least six LNG projects are currently planned in Queensland, including one of Chevron Corp’s biggest ever exploration campaigns, according to news wire Bloomberg.

Richards said the developments would provide a lucrative sales pipeline.

“The demand for experienced LNG industry staff is greater than the supply. Major projects in Australia could demand up to 300 management personnel and more than that in terms of labour,” he said.

Daniel Griggs, head of the oil & gas division at Beresford Blake Thomas (part of the Randstad group), is also placing people within the projects and targeting LNG developments in the region and Singapore.

Salaries continue to rise in the oil & gas sector, according to recruiters, apart from a blip in the North Sea development which has been affected by oil prices (recruiter.co.uk, 6 February).

Gordon Duff, operations manager of OilExec, told Recruiter: “Over the last two months, a lot of companies are looking for reductions in rates
around the offshore North Sea developments, particularly in the Aberdeen area,” adding international day rates have gone up around 10% over the last year.

Hamed Bastan-Hagh, oil & gas specialist at NES Process, told Recruiter that while a number of skill sets have broken the mould, salary increases had been minimal.

“There are a number of niche areas where demand remains stronger, such as flow insurance and advance process control. In general contract staff have seen steady growth, rather than the very rapid growth we have seen before. The rates are reasonably flat compared to last year.”

However, economic pressure has led to client caution.

Griggs told Recruiter a reduction in available capital across the economy had affected attitudes. “If you had asked me the question a year ago, I would have said demand was outstripping supply. That is still the case, but there’s more caution in the market,” he said.

Richards had also noticed a shift in client behaviour. However, he feels demand for talent will mean rates and fees are maintained.

“These contractors can pick and choose where they work but at the end of the day the project will win.

” The surge in oil prices, which peaked last year, and the resultant demand for contractors, has tempered as the price dipped, creating a shift towards permanent placements, according to Bastan-Hagh.

“Recruitment of large numbers of engineers has been more strategic. Over the last couple of months we have noticed a shift towards perm recruiting more than contractors,” he said.

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