Energy Pay Heats Up

Jan. 16, 2006
Historical data may be useful for estimating relative pay levels among various petroleum industry jobs.

Historical data may be useful for estimating relative pay levels among various petroleum industry jobs. But it doesn’t give much of a picture of compensation in today’s energy environment - particularly in the hottest areas of activity.

One difficulty in obtaining reliable salary information is due to the fact that companies are competing for the same workers. Even “off the record” information is hard to get, because competitors are reluctant to contribute to “raising the bar.” Nevertheless, the available general and anecdotal information indicates that pay levels are sprinting ahead.

For example, in areas such as the U.S. Rocky Mountains, which is experiencing a drilling and production boom, the opportunities far outweigh the available talent. In such areas, it is not unusual for experienced oilfield crew members to make over $90,000.

Recent information from various industry sources also suggests that salaries for experienced professional employees - such as petroleum engineers - are climbing very high very quickly. Increasingly, many professionals are signing on to jobs paying salaries of $140,000 and up.

As the industry continues to rapidly expand and companies compete to attract a shrinking pool of talent, compensation will continue to increase commensurate with the challenges. The most challenging areas of the industry - such as deep offshore and unconventional resources with hard-to-produce deposits - offer the highest compensation for experienced talent.