Consultants who were active in the E&P sector in 2013 but not currently working due to the cutbacks in the industry would take a day rate that is 39% lower. This was one of the key findings of the OPC Consultant Market Report 2016.
Our research asked those consultants not currently working (but were keen to return) what day rate they would want from a new position.
- The average day rate wanted now is $790
- The average day rate in 2013 was $1,285
- This represents an average reduction of 39%
A few consultants claim that they wanted the same rate as they earned before the oil price crash. However, most have been flexible with their rates to reflect a lower demand for their services.
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.
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.
The reduction in day rates means that using consultant skills 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.”
Comments from consultants included:
“At the end of the day anything moderately reasonable has to be considered.”
Please click here to see the full report which is freely available for everyone to view.