Oil engineering consultant Steve earns 550,000 Australian dollars (US$560,000) a year and is seeing new graduates signed up for six-figure salaries.
These pay rates, along with other rising costs the oil industry cannot control, are sharpening its focus on mass production methods, clever supply deals and investment in innovation.
“For oil and gas executives, the need for operational excellence has never been greater,” says industry consultants Bain & Co in a March 1 study on costs.
LONDON/ANCHORAGE, Alaska – An oil rig that ran aground in Alaska on New Year’s Eve in “near hurricane” conditions dragged two vessels trying to control it more than 10 miles (16 km) toward a wave-battered rocky shore before the crews cut it loose to save themselves.
The stricken Kulluk oil rig is owned by Royal Dutch/Shell and is a vital part of its controversial Arctic oil drilling program, which has encountered several problems.
Giant Kazakh oilfield Kashagan, which was brought to a halt by leaks shortly after start-up last year, is grappling with a bureaucratic “nightmare” on top of its engineering troubles as it strives for commercial production in 2014.
The scale and complexity of the world’s most expensive standalone oil project led its seven partners away from the traditional single operator command-and-control model, where one of the larger companies takes charge while the others provide support and share the risks, costs and rewards.
By Evaluate Energy:There were three large deals by super majors this week as Total (TOT) played it safe by acquiring a producing North Sea asset whilst Royal Dutch Shell (RDS.A) and ENI (E) opted for a high risk but high reward asset in Nigeria.