Consultants working in the exploration and production sector in October 2016 are charging on average 27% less than in 2013. This was one of the key findings of the OPC 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 we’ve all had to reduce rates.”
The report from OPC obtained data from nearly 500 E&P consultants in October 2016 and provides a detailed insight into the current state of professional consulting in the sector.
In a remarkable co-incidence on percentages, only 27% of our survey base of consultants are actively working on projects in E&P – a stark demonstration of the severe reduction in the use of professional consultants since the start of 2014.
We asked just the consultants who are still working in the industry what their current working rate is and what it was in 2013. The average day rate now is $1,109. The average day rate in 2013 was $1,520.
This represents an average reduction of 27%. Virtually every consultant still working in the industry has needed to reduce rates. Only 5% of those still working have maintained the rates that they were charging in 2013.
Barry Shaw, Chief Operating Officer for OPC commented: “The industry has entered into an unusual period where the rates contractors are willing to work for is often below the total remuneration package enjoyed by equivalent engineers in full time employment. This is contrary to the established industry norms and presents an excellent opportunity right now for operators to access top quality expertise on a temporary or variable basis at a cost equivalent to or below the equivalent for full time employees.”
The full report is freely available for everyone to view – just complete your name and email address below.