Offshore Labor Market Intelligence

Offshore Labor Market Description

The global oil and gas offshore labor market is estimated to grow at a CAGR of 5.43 percent to reach $ 73.2 billion by the end of 2021. The global offshore workforce is estimated to expand from 945,000 to 1,144,000 in 2020, following the recovery of crude price and the new offshore Exploration and Production (E&P) activities. New deepwater discoveries are expected to drive the demand for the global offshore labor market. On the contrary, prevailing low oil spend, due to a slow recovery of crude oil prices, is affecting new investment in offshore.

The report covers the key market drivers and constraints existing in the offshore labor market. It also covers Porter’s Five Forces in detail. A comprehensive list of offshore labor profiles with their average yearly salaries has been shared in the report. The report addresses the sourcing and supplier engagement models along with their pros and cons. An elaborate supplier analysis of the major regional suppliers from the U.S. and Australia has also been included. The report additionally discusses the portfolio of some of the key service providers like Oceanwide, G.A.S. Global, WTS Energy, Airswift, DARE, Kuiper International, and Go Offshore.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Technological Trends
Supplier Analysis
Supplier Profiling
Best Practices

Offshore Labor Market Trend, Analysis & Forecast

Category Intelligence on Offshore Labor covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Global Market Outlook on Offshore Labor Market

The global offshore labor market is valued at $62.47 billion in 2018. It is expected to grow at a CAGR of 5.43 percent to reach $73.2 billion by the end of 2021
The demand for offshore labor is driven primarily by E&P activities, majorly in APAC, followed by the Americas, ME, and Europe
Discovery of deep water assets is expected to drive the demand in offshore platform-based labor job roles

Offshore labor market trends

Global oil and gas offshore labor market for 2018 was estimated to $62.47 billion
By 2021, it is expected to reach a market value of $73.2 billion with a CAGR of 5.43 percent
Recovering crude oil price and increase in spending from E&P companies are expected to drive the offshore recruitment over the next 4 years
Discovery of deep offshore assets and increased offshore production is expected to drive the demand for offshore labor across Brazil, Gulf of Mexico, Asia

Market Drivers and Constraints

Drivers

An offshore well continues to produce comparatively same volume of crude for 10–15 years, whereas onshore wells reach approx. 50–60 percent of production in the first year. This would ensure long demand for offshore labor compared to onshore
Nearly, 70 percent of the world’s oil & gas production comes from mature fields. This high number of maturing fields would demand production and related activities on offshore, to tap the maximum reserves, in order to meet the increased demand globally
New deep water discoveries are expected to drive the demand for the offshore labor market

Constraints

Prevailing low oil spend, due to slow recovery of crude oil prices, is affecting new investment in offshore
Stringent regulatory policies, health and safety measures to be followed on offshore platform would limit the number of labor on platforms
Since labor has to stay in rigs for a longer duration, companies prefer to keep the crew to minimum, in order to bring down the expenses on accommodation, food, etc.
Work–life balance for the labor would be compromised, as the working environment is challenging for the labor crew
Recent developments in drilling, such as increased drilling speed (~100 times), would bring down the drilling time by 50 percent. This would bring down the labor count and requirement
Automation and efficient drilling rigs have reduced the actual need for field hands on offshore platforms

Sourcing Models

Currently, it is observed that different models are adopted for each spend category by oil companies; however, in the future, large organizations would opt for hybrid or blended model, due to increased focus on developing a holistic approach for offshore labor role, which could be a temporary or permanent one
The hybrid or blended model will provide a single point-of contact for all categories of labor across upstream, downstream, and midstream

Master Vendor Model

Takes the overall responsibility for sourcing temporary and contract staffing services
All orders go to the master supplier, to be either filled by the master supplier or distributed to a tier-II supplier

Direct Sourcing Model