Job market information
Finding out about oil and gas
The oil and gas industry is part of the broader science‐based sector represented by Cogent Sector Skills Council, which also includes chemicals, polymers, nuclear, petroleum and pharmaceuticals industries. Most goods used by people in their homes, at work and in their everyday activities are products derived from the chemical, nuclear, oil and gas, petroleum and polymer industries. The combined industries represent nearly half a million people in the UK and are of huge economic and strategic importance to the UK.
The UK oil and gas industry operates as one part of a global business and its product is traded internationally.
There has been a decline in UK oil and gas output since 2000 and this is not forecast to change significantly to 2017. Industry needs are determined by high energy prices, the volatility of the oil price, the uncertainty over reserves and poor reservoir performance. These all undermine investment in discovery and extraction. The UK offshore industry will continue to make a contribution to the UK’s energy supply for many years to come. Over the longer term, oil and gas production in the North Sea will fall as reserves become depleted and it becomes increasingly difficult to find new wells.
New discoveries, on-going operations, planned lifetime extensions for existing operations, decommissioning activities and retirement of the incumbent workforce, are all factors that mean the industry has a sustained recruitment demand with a requirement for skills training and up‐skilling of the incumbent workforce.
Keeping the UK Continental Shelf competitive will require exploration and production activities to be carried out, requiring a diversity of people from geoscientist to engineers and from environmental scientists to electricians.
Key facts:
- The skills developed in the UK workforce are in demand globally.
- In 2007/08, there were 40 new fields on‐stream in the UK Continental Shelf.
- The industry is highly capital intensive with capital expenditure of £5.6 billion.
- It is one of the UK’s strongest industry investors in research and development.
- Sustainability of the UK Continental Shelf is highly dependent upon the development and realisation of new technologies.
- Oil and gas together met 75% of UK primary energy demand in 2005.
Jobs in the oil and gas industry are divided into:
- Discipline engineers – graduate engineer, engineer, senior/lead engineer, specialist/principal engineer, engineering/operations management
- Offshore technicians – maintenance technician, production technician, senior/lead production technician, shift supervisor, operations management
Entry and progression
There are a range of career opportunities in the oil and gas industry. Careers in the industry are usually well‐paid and long‐term, with opportunities throughout the UK and worldwide. There are many ways into the industry:
- Straight from school or college and progress through operator and technician roles onwards to craftsperson status
- Through apprenticeships such as the apprenticeship in process technology, oil and gas extraction industry or chemicals manufacturing and petroleum industries
- Vocational qualifications such as process engineering maintenance or operations and maintenance engineering
- Higher education courses that have been designed to equip graduates with the practical and hands‐on knowledge
- In‐house training and development, of which there is a strong tradition in the sector
OPITO manages the apprenticeship programme for entry into the oil and gas industry, and supports recruitment and placement in the sector. Their Oil and Gas Academy is developing courses and qualifications specific to the industry.
For job specific entry requirements, take a look at our job profiles.
Workforce statistics
| Number of UK employees: |
30,000 |
|---|
| Number of UK employers: |
600 |
|---|
| Gender: |
79% male |
21% female |
|---|
| Ethnicity: |
99% white |
1% non‐white |
|---|
| Age: |
5% of workforce is 16‐24 years |
|---|
| 22% 25-34 years |
| 25% 35-44 years |
| 30% 45-54 years |
| 18% is 55 years and over |
Only a small number of the workforce is part‐time or self-employed; this is unlikely to change significantly over the next few years.
[N.B. Data derived from Labour Force Survey (January-December), 2006.]
Employment trends and future prospects
The future direction of the industry remains stable with a declining need for petrol but a rising demand for diesel. Maintaining this stability, however, will require investment in UK refineries to meet the changing product demand and crude oil supply and avoid reliance on imports.
In 2006, there were 30,100 direct industry employees, of which 72% were Scotland‐based (the Aberdeen area alone accounts for 38% of industry employment). The supply chain employs 260,000 across Britain.
Skill requirements and shortages
- There is a 12% surplus of people qualified at S/NVQ level 1 and below.
- There is a 17% under supply of people qualified to level 2 and 3.
- The top four skills that need improving or updating according to employers are job‐specific practical or technical skills, problem solving, general IT user skills and management.
Occupational trends
Across the sector there is high demand for skilled managers, engineers and technicians, scientists, process operatives and professionals to replace those leaving the industry. Elementary occupations, such as roustabouts who do unskilled manual labouring jobs on rigs and platforms, only account for 1% of the overall workforce. Level 2 and 3 occupations, such as process operators, technicians, skilled trades and business administrators, account for 55% of the workforce.
Oil and gas industry occupational distribution
| Managers and Senior Officials |
16% |
|---|
| Professional Occupations |
24% |
|---|
| Associate Professional and Technical |
19% |
|---|
| Administrative and Secretarial |
13% |
|---|
| Skilled Trades Occupations |
13% |
|---|
| Personal Service Occupations |
2% |
|---|
| Sales and Customer Service Occupations |
1% |
|---|
| Process, Plant and Machine Operatives |
11% |
|---|
| Elementary Occupations |
1% |
|---|
[N.B. Data derived from Labour Force Survey (January‐December), 2006.]
National and regional data
Across Great Britain, there are an estimated 28,000 people working in the oil and gas industry. The largest number of employees is located in:
- Scotland
- East of England
- North West
73% of the oil and gas industry workforce are employed in Scotland; 38% are in Aberdeen. There are also clusters of activity in Orkney, Shetland and Cromarty. In the East of England, 21,000 people are directly employed in the industry and a further 10,000 are indirectly working in the industry. The region is a significant centre for the industry focused on Norfolk, with offshore support in Lowestoft and Norfolk.
Salary levels
Reliable salary data for those working in the extraction of crude petroleum and natural gas is not available. For an oil and gas engineer:
- New graduate entrants may earn £25,000 to £35,000 a year
- Engineers with three to five years experience may earn between £45,000 and £55,000
- Lead engineers or those with management responsibility may earn £55,000 to £70,000 or more
Oil drilling roustabout/roughneck starting salaries may be around £20,000 a year, which may rise to around £25,000 with experience. Roughnecks may earn around £30,000.
Engineers working offshore receive extra allowances.
For more information on pay scales go to the Cogent job roles 
.
Career paths
Careers in the industry are usually well‐paid and long‐term, with opportunities throughout the UK and often worldwide too. For further information:
Further sources
Produced Sept 2010, using Cogent AACS LMI report (June 2010)
