Consultants currently working in the exploration and production sector are earning on average 27% less than they did in 2013. This was one of the key findings of the OPC E&P Consultant Market Report 2016.
This fact comes as no surprise to OPC Managing Director Piers Johnson. "I don't know any consultant who hasn't had to reduce day rates over the last two years. The pressure on costs from operators has been pushed onto the consultant community and everyone has needed to reduce rates."
The report from OPC obtained data from nearly 500 consultants throughout the world in October 2016 and provides a detailed insight into the current state of professional consulting in the sector.
The average day rate of consultants still able to find work is now $1,109 compared to their average day rate of $1,520 in 2013.
Only 45% of those surveyed currently have work within the oil industry – and just over a half of those have consultancy contracts within exploration and production (E&P) - a stark demonstration of the severe reduction in the use of professional consultants since the start of 2014.
Those not currently working would accept an average day rate of just $790, which is 39% lower than the $1,285 that they were charging in 2013.
The reduction in day rates means that using consultants is now a very attractive proposition for many oil and gas companies. Riley Smith, Middle East manager said “Operators are looking for partners that can provide flexible, low risk and cost effective services. This is excellent news for OPC as our model of a core engineering team supported by specialist consultants is particularly competitive at present. We are able to deliver projects at day rates that are approximately 35% lower than three years ago due to the current market conditions and flexibility of our consultants.”
A full copy of the report is available on the OPC website.
Established in 1988, OPC is a specialist consultancy providing integrated geoscience, subsurface engineering and production technology expertise to the global E&P sector. OPC has offices in London, Aberdeen, Stavanger, Atyrau, Astana, Aktau, Doha, Basra and Houston with OPC staff, consultants and software technology working either in-house at OPC or externally at our clients' offices, rig sites and installations around the world.
OPC, 1-2 Apollo Studios, Charlton Kings Road, London, NW5 2SB, Tel: +44 (0)20 7428 1111
Visit source sitejobspay ratesmarket trends