26 June 2015, Lagos – A global hiring survey has revealed oil and gas companies’ reluctance in Nigeria and other oil-producing countries to increase hiring efforts in the near term.
Still grappling with market uncertainty, 51 per cent of global hiring managers in the industry decreased their efforts in the past three months, the report, which was released by Rigzone for the second quarter of 2015, revealed.
Additionally, 13 per cent have completely frozen their recruitment plans, it added.
Since oil prices bottomed out in mid-March, the industry has seen slight increases in oil price per barrel, but not enough for oil and gas companies to feel comfortable enough to actively increase hiring plans in the near future, the survey explained.
“In fact, 54 per cent of global hiring managers said they believe job cuts are more likely in the next six months and 65 per cent expect to experience a loss of budget for approved headcount in 2015. Since the beginning of the downturn globally, the oil and gas industry has already seen more than 150,000 jobs lost,” the report further noted.
A very valid concern among oil and gas companies during a downturn, especially with the continued challenge of the Great Crew Change, is employee attrition. According to the same hiring survey, almost 70 per cent of global hiring managers expect an anticipated decline in voluntary departures of employees throughout the next six months.
Despite the decreased hiring and recruitment efforts, opportunities still exist for oil and gas companies to secure skilled workers, with 81 per cent of global hiring managers stating that the candidate pool had grown in the last three months and 34 per cent said the time to fill open positions had shortened in the last three months.
Additionally, 70 per cent indicated candidates were not asking for more compensation compared to three months ago.
Meanwhile, in Nigeria, the situation is also looking bleak as the official prices for the country’s crude hit their lowest in at least a decade as a nagging oversupply of physical oil takes its toll.
The Nigerian National Petroleum Corporation lowered the official selling price for its largest crude oil stream, Qua Iboe, to dated Brent plus 35 cents per barrel, the lowest differential since May 2005.
Bonny Light, once in demand for its high yield of valuable motor fuels, fell to dated Brent plus 23 cents, with the differential below May 2005 levels, traders said last Friday.
The drop follows North Sea crude, which hit a 10-year low earlier this week as all Atlantic Basin sellers, particularly those with light, sweet oil, struggle to place cargoes, according to reports.
Nigeria is having a particularly hard time with the glut, as the shale boom in its once key market, the United States, has all but shut out its exports.