This month’s blog focus is on upbeat articles discussing oil and gas prices and the pricing cycles. These articles cover everyone -- from the operator down to the refinery. Commodity Price Cycles: Explained by an Expert August 11, 2015 Introduction: Oil and natural gas are the lifeblood of modern economies. Together, they account for close to 60% of global commercial energy consumption. Even in future scenarios with a high penetration of alternative energy sources or technologies, oil and natural gas are expected to maintain a share of ~ 50% by the middle of this century; more business-as-usual scenarios forecast a share of 60% or more. What is the Interplay Between Oil, Natural Gas, and Alternatives? Natural gas is an important feedstock but the growth in gas has come primarily from the electric power sector, where it has been replacing oil and other fuels. Although there is a level of dichotomy between oil-exporting and -importing countries, generally speaking, “lower” oil and gas prices provide a boost to the world economy. Globally, the price of natural gas delivered by pipelines or as LNG is linked to the price of oil through formulas. This pricing is a historical remnant of the long-term contracts needed to develop long-distance pipelines and LNG value chains. In the US, natural gas and oil prices are mostly independently determined in their own markets. Why Did the Price of Oil Spike in 2008 and Remain High Between 2009 and Late 2014? These boom-bust cycles result primarily from the inherent time inconsistency between business cycles and the investment cycle of upstream projects, which can be as long as 10 years for conventional projects. There are factors other than the demand and supply fundamentals that impact [...]
Posted from Oil Pro, Written by David Styles: I recently advertised for a position I had available for a Drilling Engineer in Australia and I had in excess of 400 applications within the first week. This is an incredible level of response when 2 or 3 years ago I would have been lucky to get a dozen responses. The reason for this is simple, we have moved from a 'Candidate Led' job market to a 'Vacancy Led' job market. In a 'candidate led' market the supply of good candidates does not meet the demand for them and we see job seekers very much in control of negotiations. They may have multiple offers of employment, can command higher remuneration and can dictate (to a degree) the remit of their role. As a result of the low oil price (among a number of other things, perhaps) and associated redundancies we now find ourselves in a 'vacancy led' market where there are more people looking for work in the Australian oil and gas sector than there are vacancies available. And employers hold the power in negotiations, often offering lower salaries and demanding more from potential job seekers by way of the requirements of their role. This is the third time I have seen this swing in my 14 years of recruitment, and I am certain that the model will shift back to a more candidate led model as the oil price recovers. My advice to hiring companies in the current market conditions is simple: 1) Do not offer dramatically lower salaries just because you can, people will be more likely to leave when the job market shifts. 2) Do not keep people waiting for responses for longer than [...]
As we approach summer, this month’s blog focuses on vacation. We are sharing relevant articles from both employer and employee perspectives on vacation policies. These articles explore traditional vacation and unlimited vacation programs. Employee Vacations Are Good for Business Employees aren’t the only ones who can benefit from taking a vacation. Businesses that urge workers to take time off to relax, recuperate and recharge typically have lower health care, workers’ compensation and turnover costs, and they benefit from higher productivity and employee engagement levels. Most U.S. workers don’t take full advantage of paid-time-off benefits. The negative effects of overworked and burned-out employees can kick businesses right in their bottom line. Healthy Organizations: The paybacks to companies include enhanced innovation, improved productivity and reduced health care costs. A Boost to Camaraderie: Improvements in teamwork and employee camaraderie are benefits employers should consider when urging workers to take time off. Ways to Encourage: Good communication is key when encouraging employees to use paid-time-off benefits. Employers that build this into their culture make a tremendous leaps forward in becoming a healthy enterprise. Planning for Time Off: Research shows companies with policies urging workers to take vacation tend to have lower unscheduled absences. Planning time off also assists leaders and teams with workload scheduling. Employee Vacations Are Good for Business was written by Bill Leonard, Sr. Writer for HR Magazine and HR News Vacation Policy Trends in America, the ‘No-Vacation’ Nation The U.S. comes in last place when comparing the number of vacation days provided to workers in the top 21 OECD countries. In addition to a handful of national holidays, the typical American worker gets two or three weeks off out of the entire year for vacation. [...]
From Oilpro today: BP & Total’s 1Q15 Results Show Advantages Of Being An Integrated Major During A Downturn
In this month’s blog we provide several articles on how the survive the cut/weather layoffs/helpful tips should you be laid off. These notable and timely articles include: Surviving the Cut: Advice from 3 Veteran Oilpros. The main points of this article: 1. Demonstrate that you are someone worth keeping. 2. Don’t panic as this is not the first and certainly not the last time we will see large swings in the price of oil. 3. If you gave 110% when it didn’t matter, you have a better chance now that it does. 4. The offshore arena – the support infrastructure (engineering, procurement, construction, installation) – is often able to weather the downturns, even though the revenue streams are reduced. 5. Adding value now definitely can contribute to cost reduction and separates the partners who will be there for the long run. Surviving the Cut: Advice from 3 Veteran Oilpros was written by Bruce Crager, EVP at Endeavor Management, Skipper Strong, 40 year Consultant for Marine and Offshore Construction, and Steve Swanstrom, National Sales Manager at Suluforce RLP. Ready, Steady, Fired! How to keep your job regardless of the oil price If you want to secure your future and income, and remain in the O&G space follow these three steps: 1. Live below your means: Inevitably at one point in your career you may become a victim of a mass layoff, regardless of performance. The key is staying lean, having an emergency fund and liquidity to keep you afloat for six months. 2. Know your enemies: If you don’t know who your competition is, and who’s in charge of hiring people like you, or if you don’t know your counterparts at other companies, you are [...]
Much discussion is in place about the current state of the Energy industry. Factors such as low oil and gas prices and the continued uncertain regulatory environment play the largest role in the conversation. However, hiring decisions and especially career decisions are not made with short timelines in mind. Whether the wellbeing of the company is at stake or organizational planning and staffing decisions are crucial, these decisions are not affected by day-to-day fluctuations in prices or demand. This same principal should be followed by individuals contemplating a career move. Energy companies and job seeking professionals understand the cyclical nature of the business and are always thinking forward. Below are 5 tips for landing your dream job. 1. Master Skills Employers are seeking multi-faceted professionals who add value. Many energy related professional associations are geared towards continuing education. Whether you need CEUs or just want to keep up to date in your field, this can be accomplished through online webinars or monthly meetings. Educate yourself and develop more skills! 2. The New Resume Yes, you will almost always need a professional resume but also consider your social media profile as an employment tool. Create a Linkedin profile to highlight your accomplishments, work portfolio and show your personality. Further, Linkedin analytics show profiles with a picture are viewed 14 times more than profiles without a picture. Typically, we recommend a professional picture. Tips for choosing the right photo: Pick a picture that looks like you Make sure your face takes up at least 60% of frame Wear what you would wear to work Chose a background that is not distracting. 3. Connect With Others Join professional groups and [...]
J MAR & Associates is a respected leader in energy recruiting. For over 25 years we have successfully placed talented professionals within the energy industry. Employers who utilize our services range from small businesses to Fortune 100 Companies. J MAR provides services throughout the United States. We are the Energy Search Experts.