Reply To: Pay cut due to the economic downturn. Why?

At least ROVjobs added some valuable insight into the thread for those that need it. It’s quite refreshing to actually see an agency representative give some sort of explanation/reasoning behind their approach.

Of course all slots can be filled with the right kind of experience if the correct rate is on offer. Too many times in the past have I heard Ops managers say they can’t get a replacement. I think a better way of seeing that is, they can’t fill the slot for the money they are offering. Try GBP 750/day for an experienced Tech and the slot would be oversubscribed in short order!

Many companies are trying to take commercial advantage of the (land based) recession by quoting it as the reason for the lower rates on offer. The ploy is so transparent I am surprised people are even contemplating the lower rates. The Operators and companies should be ashamed of themselves, but I doubt of they are or ever will be.

In the UK (at least) the price of a tank of fuel at the pumps has risen, some in part to government taxes and some in part to operator imposed rises. On average oil has seen an increase since the start of 2009 and is holding aroun USD50.00/barrel. Soon, you will hear more about some of the profits made by the Oil majors in 2008 and how they are keeping their shareholders happy.

The offshore industry is undergoing some shrinkage but is otherwise currently healthy, so don’t let anyone try and convince you that it isn’t.

One thing that is apparent though is the glut of new ROV trainees (or those so called PTII’s with one job or two from last year) sniffing around for work. In part, I feel this over subscription was driven by the previously high price of oil, increased offshore activity as a result, and the training schools popping up left right and centre looking to make a quick killing by pumping out huge amounts of so called PTII’s.
The rush is now over and for the moment oil has settled around $50.00. I can see the industry settling down to a little less activity than seen in the last few years. Training schools will shut their doors, the glut of ROV labour will thin out and some semblance of normality may return.
In short, the short term bubble has burst and only those with genuine experience and talent will survive. Nature has been like that forever and the offshore game is no different.

To those of you with little experience and not getting a sniff of work… You are most likely part of the excess that will be shed through natural selection. Start looking at your options away from this game.

To those of you with a shed full of experience hang on in there for the best rate, just as some of the more established players are already doing. It will come around but not quite as soon as many are hoping.

Some hard words, and maybe not what some people want to read, but it needs to be said rather than let a whole pile of people suffer in the hope that all will be well.