Oil & Gas UK UKCS Workforce Demographics Report

Transcription

1 Oil & Gas UK 27 UKCS Workforce Demographics Report

2 Oil & Gas UK 27 UKCS Workforce Demographics Report Published August 28 2 nd Floor Vauxhall Bridge Road London SW1V 1AU Tel: +44 () Fax: +44 () info@oilandgasuk.co.uk Website: For further information please contact: Jessica Burton (jburton@oilandgasuk.co.uk) Copyright August 28 Oil & Gas UK 1

3 Foreword The UK oil and gas industry provides over 45, high quality jobs within the UK and attracts workers from around the world. High levels of activity within the industry have led to increased demands for skilled labour, particularly offshore, and concerns to ensure the future sustainability of this vital workforce. A primary area of concern frequently raised is the demographic profile of offshore workers, a group which is traditionally referred to as an ageing workforce. Oil & Gas UK is working with the industry to ensure that it retains a suitably sized and skilled workforce which can meet future requirements and challenges. As part of this work, we undertook research into the demographics of the workforce in 26. This research demonstrated that much of the concern around the ageing workforce was misplaced, with the average age of an offshore employee being 41 years. The research did show, however, that certain key occupations had a less reassuring age profile. In order to monitor these trends, and to support the work of OPITO The Oil and Gas Academy in tackling skills shortages and working to ensure the future of the industry s workforce, Oil & Gas UK intends to publish regular reports on the demographics of the UKCS workforce. This 27 UKCS Workforce Demographics Report presents the results of the latest research, including, for the first time, demographics data for sections of the onshore workforce. The analysis demonstrates some very positive trends for the demographics and diversity of the workforce. The average age of an offshore worker continues to be 41 years, and we have seen an increase in the number of female workers, particularly in technical roles which have traditionally been male dominated. Although there are still significant challenges to face with particular occupations and skills areas, these positive trends highlight the changing face of the UKCS, and the good work that organisations within the industry are doing to attract young, highly skilled and diverse workers by demonstrating the excellent career prospects the UK oil and gas industry has to offer. Oil & Gas UK will continue to use this data to feed into ongoing efforts to tackle industry skills issues and sustain the UK oil and gas industry s future workforce. Malcolm Webb CEO Oil & Gas UK Copyright August 28 Oil & Gas UK 2

4 1. Introduction This report is an update on the Oil & Gas UK 26 UKCS Demographics Report, as Oil & Gas UK believes the demographics of the oil and gas industry must continue to be monitored. The source data comes from the Vantage POB (Personnel On Board) system, an internet-enabled personnel tracking system used by the UK offshore industry. The Vantage POB system tracks all movements offshore and holds a large quantity of data on the UKCS workforce. This data can be used to build a detailed picture of the workforce, with the information gathered able to identify any trends and areas of concern. Vantage POB data for all trips over the last 12 months, sorted into male/female personnel and separate occupation categories, was used to develop an age profile for the industry as a whole, as well as for key occupations. This data was further interrogated by adding a filter of 25+ nights offshore (those personnel who had spent more than 25 nights offshore in 27) and 1+ nights offshore (those personnel who had spent more than 1 nights offshore in 27) for each worker on the system. Additional information was gathered regarding the age profiles of operator staff (those directly employed by oil companies) and non-operator staff (those employed by contractors), female offshore personnel, and a comparison between the various offshore sectors. This report includes the results of this data analysis. Appendix In addition to the data analysis for offshore workers, Oil & Gas UK has also collated data on the onshore population for the upstream oil and gas industry. This is shown in Appendix 1. As there is no complete database for onshore workers which can be used in the same way as Vantage, Oil & Gas UK surveyed member companies on the ages and male/female ratio of their onshore upstream workforce, in a total of 29 agreed job categories. Whilst the conclusions drawn from the onshore data analysis are not as precise as those taken from the offshore Vantage data, they give an indicative picture of the demographics onshore. Going forward, Oil & Gas UK hopes to continue increasing the number of companies involved and the data set analysed so the analysis of onshore demographics can be as accurate as possible. Copyright August 28 Oil & Gas UK 3

5 2. Overview The results of the data analysis continue to provide a much more optimistic picture for the industry demographics than the commonly held perception. The average age for the total UKCS workforce remains 41. years. This is an expected average for a workforce generally ranging from 2 to 6 years old and should therefore not be regarded with undue concern. The fact that the average age has remained unchanged from 26 implies a steady intake of younger workers to match the ageing of the core workforce or attrition due to retirement. As in 26, there is a noticeable variation in the average ages amongst individual occupation categories; this again highlights the importance of the industry continuing to target skills efforts in key areas. We see the results as positive evidence that the industry skills base can be sustained through joint industry initiatives targeting key areas of the workforce. It is hoped that the work of OPITO - The Oil and Gas Academy will benefit this approach even further. On the positive side (i.) (ii.) (iii.) (iv.) The average age for the total UKCS workforce remains 41. years - This is an expected average for a workforce generally ranging from 2 to 6 years old and should therefore not be regarded with undue concern. - The fact that it has not increased from 26 suggests a steady rate of incoming and outgoing workers from the industry. - The average age becomes slightly higher for those personnel spending 25+ nights offshore (41.3 years for 25+) but this difference is relatively minor. Workers within several key occupations have an average age below this industry average - This includes drilling and well services personnel, who continue to show a high intake of younger workers. - Other occupation categories, for example production and maintenance personnel, have an average age which closely reflects the average age of the industry as a whole. There is little variation in age profiles between the offshore sectors - The comparison age profiles demonstrate little difference between the sectors. The WOS (West Of Shetland) sector is slightly more weighted towards lower ages than the other sectors, and the NNS (Northern North Sea) has slightly more people at the top end of the age range. - For mobile personnel (those who visited multiple sectors in 27) the profiles were noticeably weighted to the younger age brackets, with the average age being lower than the industry wide figure. The workforce is becoming increasingly diversified and encouraging greater numbers of female workers offshore - 27 saw a 7.2% increase in the number of female workers offshore, which rose to an 8.4% increase in female workers when catering roles are excluded. This suggests an increasing number of females, particularly outside the more traditional catering and stewarding roles. - A total of 121 nationalities are represented in the UKCS workforce. More worryingly... (v.) The 1+ nights category is increasing in age with little turnover - The average age in nearly every occupation category for 1+ nights workers has increased by a year since 26. The numbers of workers in each has also shown almost no change, suggesting that the industry s core workforce remains the same. Copyright August 28 Oil & Gas UK 4

6 (vi.) The 3-34 age group continues to show fewer numbers than other age groups - This may lead to a shortage of supervisory personnel in future years. (vii.) Personnel numbers continue to be lower below the age of 24 - This may represent a potential recruitment issue for the industry in the near future. (vii.) Certain key occupation categories have age profiles weighted towards the higher age groups - OIMs have the highest average age (5.3 years for 25+), and although this can be explained by the level of experience required for this role, it should be noted that this average age has increased from Other occupations with more workers in the higher age groups were rigging and crane operations, as in 26. Copyright August 28 Oil & Gas UK 5

7 So our conclusions are The average age for total UKCS personnel (41. years) is the expected average for a workforce ranging in age from 2 to 6 years old, rather than an indication of an ageing workforce. This average age increases slightly for personnel who are offshore for more than 1 nights (43.7 years), and also for personnel who are employed directly as Operator staff (43.4 years). The average age for each of these groups has increased by 1 year since 26. These groups should therefore be monitored closely by the industry, as a low turnover of workers and continued ageing may create demographic problems in the future. Individual age profiles for occupation categories demonstrate that the workforce is distributed fairly evenly in some occupations (production, electrical), but weighted in others. OIMs and rigging personnel show a higher average age than, for example, well services. The number of females employed by the offshore industry is continuing to increase. There has been a 7% increase in the number of women travelling offshore in the last year. Although the majority of female workers are still employed in the catering sector, there has been an even larger increase (8.4%) in the number of females going offshore in non-catering or technical roles. The age profile for female workers continues to be weighted towards the younger age brackets, with an average age of 34.4 years, indicating the ongoing recruitment of young females into the industry. All occupations demonstrate a need for continued recruitment efforts amongst the under-24 s in order to avoid a potential personnel shortage in the near future. This is particularly important in those occupations with a higher average age. Recruitment efforts are also needed for the 3-34 age group, to avoid a potential shortage of supervisory personnel in the near future. This area is a particular issue in certain occupation categories, for example catering, drilling, and scaffolding. In order for recruitment incentives to be as effective as possible, the industry needs to identify the issues affecting personnel levels in the UKCS. Oversubscribed applications for training and graduate schemes run by operators and industry bodies such as OPITO suggest the issue may not, despite reports to the contrary, be the attractiveness of the industry. 121 nationalities were present within the UKCS workforce in 27, with workers from the UK accounting for 86.3% of all personnel. This demonstrates not only the diversity of the UKCS workforce, but also the continuing importance of the UK offshore industry to the UK economy and job market. Copyright August 28 Oil & Gas UK 6

8 3. Age Analysis 3.1 UKCS Profile Figure 1: Age Profile for the entire UKCS Percentage of Workforce Nights 1+ Nights Total Workforce Nights 25+ Nights Total Workforce Total Personnel Male 97.5% 97.4% 96.2% Female 2.5% 2.6% 3.8% Average Age 43.7 years 41.3 years 41. years The offshore workforce reflects continuing high levels of activity over recent years, with the analysis showing that just under 5, individuals travelled offshore in the UKCS in 27. More than 3, of these workers spent more than 25 nights offshore, and around 2, spent more than 1 nights offshore in the UKCS during 27. These numbers remain very similar to the totals for 26. The average age for the total UKCS workforce is 41. years; this has not changed since the previous year. This is an expected average for a workforce generally ranging from 2 to 6 years old and should therefore not be regarded with undue concern. The average age becomes slightly higher for those personnel spending 25+ and 1+ nights offshore (43.7 years for 1+), but is still comfortably within the expected average age range. There is a slight weighting towards the higher ages for personnel working 1+ nights offshore, compared to the workforce as a whole. In addition, the average age for workers spending 1+ nights offshore has increased by a year since 26, suggesting this core group of workers has seen little turnover. Areas of concern within the industry-wide age profile are the 3-34 age group, which continues to show a lower number of personnel than other age groups and may lead to a shortage of supervisory personnel in future years, and the age groups below 24. These continue to show much lower numbers of personnel, and could represent a potential recruitment issue for the industry in the near future. Copyright August 28 Oil & Gas UK 7

9 3.2 Age Profiles by Occupation Age profiles were put together for thirteen occupation categories with the results for personnel working 25+ and 1+ nights offshore plotted against each other for comparison purposes: Catering Crane Operation Deck Crew Drilling Electrical Maintenance Mechanical Medical OIM Production Rigging Scaffolding Well Services OIMs continue to have the highest average age (51. years for 1+). Other occupations with profiles weighted towards higher ages were rigging (49.1 years for 1+) and crane operations (48. years for 1+). Well Services personnel have the lowest average age (35.3 years for 1+). For those workers spending 1+ nights offshore, average ages were higher in every occupation category. There has also been little change in the numbers for every occupation spending more than 1 nights offshore. The average ages for these workers have increased by a year in every category. This implies little turnover in this core group of workers. Significantly lower numbers within the 3-34 age group continue to be seen in the majority of occupation groups. Every category showed much lower numbers of personnel aged below 24. The primary areas of concern highlighted by these age profiles are recruitment of personnel below the age of 24 across the industry in general, and specifically in crane operations, scaffolding, deck crews, rigging and electrical. The high average age and lack of younger personnel amongst OIMs (and to some extent medical personnel) is of less concern as it is at least partially expected due to the amount of experience necessary to reach this position. As stated above, the lower personnel numbers in the 3-34 age group, seen in almost all occupation categories, is an issue which could potentially lead to a shortage of qualified supervisory personnel over the next 1 years. A further area of concern is the 1+ nights or core workers in each occupation. These workers show an increase in average age and very little change in personnel numbers. Copyright August 28 Oil & Gas UK 8

10 Figure 2: Age Profile for Catering Personnel 25 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 83.3% 8.2% Female 16.7% 19.8% Average Age 44.3 years 41.9 years Figure 3: Age Profile for Crane Operation Personnel 25 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.7% 1% Female.3% % Average Age 48. years 47.2 years Copyright August 28 Oil & Gas UK 9

11 Figure 4: Age Profile for Deck Crew Personnel 25 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 1% 1% Female % % Average Age 45.2 years 44.9 years Figure 5: Age Profile for Drilling Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.3% 98.9% Female.7% 1.1% Average Age 39.7 years 38.3 years Copyright August 28 Oil & Gas UK 1

12 Figure 6: Age Profile for Electrical Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.93% 99.95% Female.7%.5% Average Age 46.1 years 43.7 years Figure 7: Age Profile for Maintenance Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.4% 98.7% Female.6% 1.3% Average Age 43. years 4.5 years Copyright August 28 Oil & Gas UK 11

13 Figure 8: Age Profile for Mechanical Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.9% 99.9% Female.1%.1% Average Age 46.4 years 44.3 years Figure 9: Age Profile for Medical Personnel 25 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 87.1% 84.% Female 12.9% 16.% Average Age 45.2 years 44.4 years Copyright August 28 Oil & Gas UK 12

14 Figure 1: Age Profile for OIMs 35 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 98.2% 98.7% Female 1.8% 1.3% Average Age 51. years 5.3 years Figure 11: Age Profile for Production Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 99.4% 99.% Female.6% 1.% Average Age 43.7 years 41.8 years Copyright August 28 Oil & Gas UK 13

15 Figure 12: Age Profile for Rigging Personnel 2 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 1% 1% Female % % Average Age 49.1 years 46.6 years Figure 13: Age Profile for Scaffolding Personnel 3 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 1% 1% Female % % Average Age 44.1 years 42.1 years Copyright August 28 Oil & Gas UK 14

16 Figure 14: Age Profile for Well Services Personnel 35 Percentage of Occupation Workforce Nights 1+ Nights Nights 25+ Nights Total Personnel Male 97.7% 97.3% Female 2.3% 2.7% Average Age 35.3 years 33.3 years Copyright August 28 Oil & Gas UK 15

17 Age Profiles for operator vs non-operator Staff Figure 15: Age Profile for Operator vs Non-Operator staff vs Total Workforce Operator Non Operator Staff Total Workforce Percentage of Workforce Figure 16: Age Profile for Operator vs Non-Operator staff. 16. Operator Staff Non Operator Staff 14. Percentage of Workforce Operator Non-Operator Total Personnel Male 95.6% 96.4% Female 4.4% 3.6% Average Age 43.4 years 4.1 years Operator staff (those directly employed by oil companies) are clearly weighted towards the higher ages, followed by a steep decline above 6, which could be attributed to retirement or a change to Copyright August 28 Oil & Gas UK 16

18 onshore/managerial roles. Operator staff now account for 25% of the workforce, which is an increase of 1% from 26. Non-Operator staff (those employed by contractors) account for 75% of the offshore workforce and show a clear weighting towards the lower age bands, with a steady decline above the age of 44. Both Operator and Non-Operator staff continue to demonstrate lower numbers of personnel in the 3-34 age band, seen in the industry as a whole, as well as much lower numbers below the age of 24. Copyright August 28 Oil & Gas UK 17

19 Age Profiles by UK Offshore Sector Figure 17: Age profile comparing major UK offshore sectors 2 Percentage of Workforce CNS NNS SNS WOS CNS (Central NNS (Northern SNS (Southern WOS (West of North Sea) North Sea) North Sea) Shetland) Total Personnel Male 95.7% 96.7% 96% 96.5% Female 4.3% 3.3% 4% 3.5% Average Age 41.6 years 42.1 years 41.5 years 4.4 years The comparison age profiles demonstrate little difference between the sectors. The WOS sector has a slightly lower average worker age than the other sectors, and the NNS has a slightly higher percentage of people at the top end of the age range. An analysis of those workers who visited multiple sectors was also done. The more mobile workforce are once again predominantly in the younger age brackets, with noticeably fewer people at the top end of the age ranges (average age 39.1 years). Figure : Age profile for personnel visiting multiple sectors 25 2 Percentage of Workforce Copyright August 28 Oil & Gas UK

20 Age Profile for Female Workers The offshore industry has traditionally been seen as one dominated by male workers. Although the figures demonstrate the majority of offshore employees are still male, the numbers of females employed by the offshore industry is increasing. In 26, 1756 female personnel travelled offshore, the majority employed in the catering sector. In 27 this has risen to 81, a 7% increase. There has also been an 8.4% increase in the number of females employed in roles other than the traditional catering/stewarding areas. Figure 19: Comparison Age Profile for Total Female UKCS Workforce- 26 vs Total Number of Female Workers The age profile for 27 shows that female workers are typically weighted towards the younger age groups, with an average age of 34.4 years. The comparison age profiles show that every age group excluding has seen an increase in female workers. The largest increases (in number of workers) were seen in the and age groups. Figure 2: Comparison Age Profile for Female UKCS Workforce minus Catering Total Female Profile Excluding Catering Percentage of Female Workers As the catering sector accounts for the majority of the female workers in the UKCS, a comparison age profile excluding catering was collated. The exclusion of catering did not make a major Copyright August 28 Oil & Gas UK 19

21 difference to the overall shape of the profiles, however there are a higher number of female workers excluding catering in the lower age brackets (24-34). This suggests an increased number of young female science and technology graduates becoming involved in technical roles (e.g. drilling, well services, geology) which involve offshore visits. Copyright August 28 Oil & Gas UK 2

22 4. Nationality Analysis Figure 21: Nationality Profile for UKCS (Top 14 Nationalities) NORWAY 1.63% UNITED KINGDOM 86.34% Other* 4.21% NETHERLANDS 1.51% *Break Down of Next 1 UNITED STATES.67% CANADA-.65% FRANCE-.6% POLAND-.51% IRELAND-.35% LITHUANIA-.33% GERMANY-.33% AUSTRALIA-.27% PORTUGAL-.25% MALTA-.24% Of the 121 nationalities represented in the UKCS in 27, workers from the UK continue to represent the majority of the workforce, accounting for 86.3% of UKCS workers in 27. This is a slight increase from 26 (85.1%). Norway is the second highest nationality, representing 1.6% of the workforce, and the Netherlands third with 1.5%. These figures demonstrate that the UK offshore industry is still providing many thousands of jobs for the UK, as well as attracting workers from around the world. Copyright August 28 Oil & Gas UK 21

23 Appendix- Onshore Data A1. Introduction As a build on the Oil & Gas UK 26 UKCS Workforce Demographics Report it was decided to attempt to collate onshore data for the upstream oil and gas industry in the UK. As there is no comprehensive database similar to the Vantage system for onshore personnel, Oil & Gas UK, with the assistance of the consulting firm Hewitt Associates, collected data from member companies regarding their onshore, upstream UK workforce in key occupations. The following companies provided data: Anadarko Apache North Sea BHP Billiton BP Centrica ConocoPhillips (UK) ExxonMobil International Maersk Oil UK Marathon Oil UK Talisman Energy UK Total E&P UK Oil & Gas UK wishes to extend their thanks to the above companies for their participation, and to Hewitt for their assistance. Companies submitted data covering 59 onshore, upstream workers in the UK oil and gas industry. Copyright August 28 Oil & Gas UK 22

24 A2. Age Analysis Figure A1: Onshore UK Upstream Age Profile Number of Workers Plus Chart based on data from 11 companies (59 workers in total) Figure A1 shows the overall age profile for the onshore workers. The average age for the 59 workers in the survey was 41.8 years. This demonstrates very little difference in the average ages for offshore workers and the onshore workers surveyed. 23.4% of the onshore workers were female. This is considerably higher than the percentage of female workers offshore. Age Analysis by Occupation Although data was collected on a total of 29 separate job categories, detailed analysis was only done on the following 7 categories given the significant number of workers in each: Professional Engineering (all roles) Safety & Environmental Engineering Commercial (all roles) Drilling Engineering (all roles) Geologist Geophysicist Petroleum Engineer The age profiles for each of these categories, along with the average age, are shown below. Copyright August 28 Oil & Gas UK 23

25 Figure A2: Age profile for Professional Engineering (All Roles) Number of Workers Plus Average Age: 42.1 years Figure A3: Age Profile for Safety and Environmental Engineering 35 3 Number of Workers Plus Average Age: 41.9 years Copyright August 28 Oil & Gas UK 24

26 Figure A4: Age Profile for Commercial (All Roles) 6 5 Number of Workers Plus Average Age: 42.2 years Figure A5: Age Profile for Drilling Engineering (All Roles) 35 3 Number of Workers Plus Average Age: 42. years Copyright August 28 Oil & Gas UK 25

27 Figure A6: Age Profile for Onshore Geologists 6 5 Number of Workers Plus Average Age: 41.6 years Figure A7: Age Profile for Onshore Geophysicists Number of Workers Plus Average Age: 43. years Copyright August 28 Oil & Gas UK 26

28 Figure A8: Age Profile for Petroleum Engineering Number of Workers Plus Average Age: 4. years Conclusions The data analysis for the onshore workers included in this survey demonstrates that: The average age for onshore workers surveyed is 41.8 years. This is only slightly higher than offshore and comfortably within the expected range for a workforce aged between 2-6 years on average. The ratio of male to female workers onshore is 76.6% to 23.4%. This is a much higher percentage of female workers than for the offshore workforce. The major occupation categories profiled show average ages of between 4 and 43 years, with some occupations (i.e. Geophysicists) showing a clear weighting towards higher age groups. These conclusions are based on a sample of 59 onshore UK upstream oil and gas workers. In order to be able to draw firmer conclusions about the onshore workforce, the database used will have to be expanded going forward. It is hoped that, for 28 data, Oil & Gas UK will be able to encourage participation from a larger number of companies, and gather information on a greater number of onshore occupations. Oil & Gas UK would like to once again thank those companies who did participate, as well as Hewitt for their assistance in facilitating this data collection. Copyright August 28 Oil & Gas UK 27