2013 e&p salary report - csi recruiting.pdf

REPORT

2013 E&P Salary

Petroleum Engineering Petroleum Geosciences Petroleum Land Management

Salary Data and Position Descriptions U.S. E&P Technical Professionals

1-888-264-7600 www.csirecruiting.com

CSI Recruiting Domestic U.S. E&P 2013 Salary Report

© 2013 CSI Recruiting 2

Table of Contents

Introduction 3 Using the Report 4 How the Report Was Created 6 The ‘Other’ Compensation 7 2013 State of the E&P Industry 8 2013 State of Compensation 10 Petroleum Engineering 13 Reservoir Engineer……………………………………………………………………………..14 Drilling Engineer………………………………………………………………………………..17 Production / Operations Engineer………………………………………………………..20 Engineering Technician……………………………………………………………………….23 Petroleum Land Management 26 Landman……………………………………………………………………………………………27 Land Technician………………………………………………………………………………… 30 Petroleum Geosciences 33 Geologist…………………………………………………………………………………………… 34 Geophysicist……………………………………………………………………………………….37 Geological / Geophysical Technician ……………………………………………………40 Petrophysicist …………………………………………………………………………………… 43 About CSI Recruiting 46



Introduction

Welcome to our 9th annual salary report. As has been the case since we began the report in

2005, CSI Recruiting‟s 2013 Domestic E&P Salary Report is a survey of compensation within the

domestic exploration and production marketplace. This report consists of average base salary

data for technical positions across the engineering, geoscience and land disciplines. In addition,

the report illustrates average annual bonus payments, company stock program participation

percentages and average paid time off data.

The primary objective of this report is to provide up-to-date, detailed data and commentary tied

to specific job titles and technical disciplines to enable readers to fully understand current

market compensation conditions within the United States E&P community.

Data included in this Report is restricted to technical professionals currently in

full-time, salaried positions within Exploration & Production companies, working

in a U.S. location.

The Job Descriptions portion provides detailed and in-depth definitions for the experience and

educational requirements of the position, and delves into responsibilities and expectations for

those particular positions.

The Annual Update portion provides an overview of present day supply and demand for the

specific skill set with commentary as to the expected trends related to that specific technical

role.

As has been the case since we began the report in 2005, the landscape of the Domestic E&P

hiring marketplace is constantly changing. Technical skill sets have been and will continue to be

in high demand and short supply, resulting in an ever-changing compensation environment.

Developments in the world economy and within the domestic E&P industry influence these

numbers, and the evolving marketplace has implications for everyone in the E&P business.



Using the Report This report strives to provide a comprehensive overview of compensation within the domestic

E&P marketplace, backed by detailed data, to be utilized by hiring authorities, human resources

personnel, company executives and technical personnel within the E&P community.

CSI Recruiting‟s 2013 Domestic E&P Salary Report includes ten Job Categories, which are

organized by three Disciplines:

1. Petroleum Engineering (Includes Reservoir Engineer, Drilling Engineer,

Production / Operations Engineer and Engineering Technician)

2. Petroleum Land Management (Includes Landman and Land Technician)

3. Petroleum Geoscience (Includes Geologist, Geophysicist, Geological / Geophysical

Technician, and Petrophysicist)

Each Job Category provides an overview of the position within a typical E&P organization, and

then details the experience and educational requirements of the position. The report delves into

specific responsibilities and expectations for that Job Category and addresses the current state

of affairs for that particular Job Category, the overall supply and demand issues and regional

nuances for the skill set.

Base Salary data is presented at the end of each Job Category, presented in average and median

numbers. The base salary and annual cash bonus data is further broken down into Years of

Experience and Region Working.

Following an addition we made to the report in 2011, we include information related to the

annual cash bonus, company stock and paid time off portions of the compensation package.

While the report does not address the details related to stock plans, such as vesting schedules,

option versus grant programs or stock purchase plans, we feel that the details presented tell at

least part of the story about non-base compensation within the industry.



New in the 2013 E&P Salary Report is the inclusion of “Average Years of Experience”, provided

for each of the ten Job Categories. This figure represents the average industry experience of all

salary survey participants for that specific skill set.

We‟re including this statistic to illustrate those skill sets where a senior-level population may

drive the average salary data higher, or where a youthful population of a particular technical

discipline may lower average base salaries. Also, it helps illustrate those job categories where

industry veterans vastly outnumber young professionals, which could portend succession

planning issues as the senior-level talent retires.



How the Report Was Created

CSI Recruiting‟s 2013 Domestic E&P Salary Report contains data from over 2,200 professionals

currently employed in full-time, salaried positions within E&P Operators, based in a U.S.

location, and paid in U.S. dollars.

The data was gathered via voluntary survey, which asked respondents to disclose their current

job title, base salary and years within the industry. As we‟ve done since 2011, we also asked

respondents for information related to participation in a company stock program, annual cash

bonuses and paid time off.

For the sake of useable data groups, certain job titles were combined into the most suitable Job

Category. For job titles with very small data groups that were not deemed to be aligned to a Job

Category contained within the Report, that data was not included.

Within a Job Category, in order for an Experience Data or Regional Data grouping to be

presented, we required that the count of that grouping‟s data set represented a minimum of 8%

of the total count for that Job Category.



The ‘Other’ Compensation

The most-oft-asked question in response to our Salary Report is “Why just Base Salary – Why not

include „other‟ compensation?” The argument goes that since base salary is, more often than not, one

piece of an overall compensation package, a report that ignores bonuses, stock options, benefits and

other forms of non-salaried compensation is not comprehensive.

Well, we agree. Base salary is not, on its own, representative of whether a person is well compensated

or lags behind his or her colleagues. It does not illustrate whether a company is truly „taking care‟ of

its employees, or simply keeping pace with the market.

These compensation components are difficult to quantify. Given the variety of programs for the most

prevalent „others‟ (stock, bonus and benefits), a side-by-side comparison is elusive as there is little

consistency between organizations. Take, for example, stock options and grants: their value moves

with the daily price of the publicly traded stock, making it impossible to assign a value to any stock

option program. And what about privately held companies that have „phantom‟ stock programs?

All this said, these „other‟ components cannot be ignored. As base salary compensation within the

industry has fluctuations so does the annual bonus, the quality of benefits and the access to stock

programs.

Bearing that in mind, and responding to the requests of the report‟s participants, we are continuing

with changes made in the 2011 E&P Salary Report by including data on the „other‟ compensation

components that are most easily defined: Annual Cash Bonus as Percentage of Salary, Quantity of Paid

Time Off and Participation in Company Stock Program (Y/N), in a new section of the report that can

be found within each discipline and job category.

Furthermore, following an addition to the 2012 Report we again are presenting detailed Annual Cash

Bonus data. This data highlights the average percentage of salary received in Annual Bonus -

Segmented into Experience Level and Region – for each of the ten Disciplines.



2013 State of the E&P Industry

For domestic E&P companies, 2013 could be thought of as “the year we stayed the course”.

The domestic E&P industry has achieved noteworthy headlines in both crude and natural gas

production as well as reorienting the US energy economy. In September 2012 the Energy

Department reported that US oil production surged to the highest level since January 1997.

From a global perspective, the International Energy Agency reported in November 2012 that the

shale-oil boom will help the US overtake Saudi Arabia as the worlds largest oil producer by

2020. Similarly, US natural-gas production is projected to accelerate for decades. The shale-gas

boom has had a profound impact on the US energy economy. The country is steadily increasing

its electricity generation from natural gas (30% in 2012), instead of coal, and US carbon-dioxide

emissions have fallen to their lowest level since 1994 according to a recent estimate by the US

Energy Department. The natural gas growth from domestic E&P firms is also prompting

announcements of mutibillion-dollar investments to build chemical, steel, and fertilizer plants

that will consume enormous quantities of gas.

It was a year marked by some firms trying to survive while their neighboring peers thrived; of

foreign capital raining from Australia, China, Britain, and Canada into the key unconventional

shale plays; of industry veterans seeing their retirement nest eggs recover, allowing for that

delayed retirement to be realized; and of mixed movement for oil and gas pricing, neither

changing substantially for any extended period of time.

For those firms saddled with natural gas assets they overpaid for in years prior (“Gas

Companies” for the purpose of this summary), these companies largely stayed afloat finding

pockets of liquids in their portfolios. With the best of their gas hedges already exercised they

reported losses but reduced overhead and found investment dollars from foreign and domestic

sources. In summary, for the most part, they‟re still in business and working to stay that way.

Then there are the “Contrarians”, those natural gas focused startups that emerged over the last

two years. These firms were founded and funded on the premise that gas was cheap and



acquiring gas-heavy acreage (dry gas, at that) within the premium domestic gas plays would

yield as pricing rebounded to more logical levels. Acquisitions to populate these Contrarians

were a lifeline to many of the Gas Companies in need of cash, and initially the model was ideal,

with an eager seller and itchy-trigger-finger buyer working out deals quickly and often. Pricing,

however has been slow to make these moves lucrative, and so the Contrarians lie in wait.

“Diversifieds” would be those E&P‟s that either came into the gas pricing collapse with a

healthy oil portfolio, or were quick to adapt and build up a liquids inventory via drill bit or

acquisition. The Diversifieds have enjoyed strong profits, a more attractive hiring market, and

easy access to capital to develop liquid-rich plays. These firms are not in break-neck expansion

mode, however. They are sitting on good sums of cash, developing the acreage they have,

buying logical bolt-on properties and pursuing a strategy of measured growth.

The Diversifieds are hiring opportunistically, taking advantage of their position in the

marketplace to lure good talent from the Gas Companies on a case-by-case basis.

First Quarter of 2013

The first quarter of 2013 has seen select pockets of hiring activity, primarily by the small and

mid-size Diversified independents, and almost exclusively in development oriented roles with a

focus on pulling liquids out of the ground – Key skill sets being production engineers, drilling

engineer, operations geologist and land negotiators.

While the Contrarians have held steady on their staffing levels, the Gas Companies have started

backfilling roles open from the attrition or small-scale layoffs of the past 18 months.

From our perspective, supply and demand for talent is at a healthy level, with companies in need

of talent being able to fill roles via various sources (internal referrals, agencies, new grads). The

majority of the job seekers in the marketplace, there by circumstance or of their own volition, are

having success in landing new jobs in a reasonable (~3 months) period of time.



2013 State of Compensation

Domestic E&P compensation continues to be a very bright area within the overall U.S. economy,

with all signs pointing to continued steady growth. Even new college graduates entering the

industry are extremely well positioned. The industry had the highest starting salaries of any

industry for 2012 bachelor‟s degree recipients according to the National Association of Colleges

and Employers.

Cash bonus compensation, at an average of 21.7% of base salary across all Job Categories, was

actually down 2% from last year‟s report. A bonus of nearly 22% is no cause for alarm, and

instead we view this as a sign of two things: younger talent entering the industry and gas

companies holding a little tighter on overall compensation.

Participation in these cash bonuses continues to be robust with every Job Category registering a

participation rate of 89% or above. These domestic cash bonus participation percentages far

exceed the approximately 35% bonus participation averages we have seen in global all-company

type compensation reports.

Comparisons of domestic cash bonus payment amounts to global all-company type reports leads

us to conclude the domestic E&P technical professionals are again earning higher average cash

bonuses than the global oil & gas population.

Stock / Equity Compensation, then and now

Stock Compensation, for purposes of this report, is defined as present-day or deferred stock

options, stock grants or „phantom‟ stock options, value creation shares, and other non-salary

compensation (ORRI, for example), generally granted to professionals and managers.

Stock / Equity compensation is given to employees for both individual and corporate

performance, oftentimes varying in size and amount from person to person or department to

department.



As both our industry and the overall economy experienced a period of growth and expansion

from 2001 until mid-2008, Stock /Equity compensation grew substantially, often climbing into

the millions of dollars within start-up E&P companies, or for higher-level managers at mid and

large-cap independents. Even staff-level technical professionals within the E&P community

were able to bank six-figure sums as a result of growth in stock option values and profit sharing

distributions. These perks were effectively cancelled, if not in practice, then certainly in value,

in 2009. Stock options were under water with no signs of returning to the black, and profit

sharing and liquidity event bonus checks were diminished if not eliminated.

As we saw in 2010, the stock market, particularly within the energy sector, performed well, and

incentive compensation in the form of stock showed strong value. 2011 saw the E&P industry‟s

broad-based stock market recovery of 2010 begin to take a more personal approach, particularly

in the last quarter of the year, where the oil-focused firms began to significantly outpace the

natural gas operators. 2012 continued to be tough going for those public E&P firms focused on

natural gas and they began to see hard-hitting declines in value as hedges expired and gas prices

continued to fall.

Present day Stock / Equity compensation appears to have taken on a „third leg of the stool‟ role,

meaning that it‟s one of the three primary components in an E&P professional‟s compensation

plan, along with base salary and bonus. Engineers, Geoscientists and Landmen can expect to

participate in stock options or stock unit grants, but the upside value is being viewed as „icing on

the cake‟ versus part of a hiring decision calculation.

The one segment of the industry where the Stock / Equity component does factor heavily into

hiring decisions is in the world of small, privately held E&P‟s backed by private equity. As

opposed to small, family-owned private E&P‟s companies, these firms are more like Silicon

Valley startups than multi generation oil companies. They are high energy environments, rife

with entrepreneurs and lean on staff and overhead.

These firms are typically led by a proven executive team of E&P veterans with major oil

company and large independent pedigree, and with a thirst for ownership and more influence

on outcome than they would see in a publicly traded entity. These firms, as they take flight,



often need to fill in key management or technical positions in order to execute on their

acquisition, development and liquidity event objectives. In order to attract top talent, and to

give that talent a sense of ownership in firm, there will often be an equity component that allows

the non-founding member to share in the success of the organization, i.e. an asset or whole

company sale.

Depending on the arrangement, this can be as simple as a small percentage share of the overall

profit of the venture, or it can require a cash contribution from the new hire. Typically the level

of risk involved for the individual is mirrored by the potential upside, and with the right set of

circumstances between equity financing arrangement, asset quality, technical acumen and

leadership, this can in a few years‟ time translate into life-changing money.

Benefits

Benefits have long been an intangible component of a compensation package. Even 10 years

ago, robust health insurance was considered to be a given, as was generous vacation time, and a

covered, reserved parking space. Times are different, even for the oil business.

Health insurance costs are onerous. The cost to insure a family in any kind of decent health

insurance program can cost a company $1,500 / month or more, and that doesn‟t include vision,

dental life or disability coverage. In tandem, gone is the company pension, replaced with 401k

matching. Vacation time is now often part of a “PTO Bank” where time off for your honeymoon

counts the same as a dentist appointment or the flu.

These changes could be viewed negatively, but instead they illustrate that E&P companies, while

being mindful of the runaway cost of benefits, have done well at keeping the key pieces in place:

health coverage, retirement, and time off, all while maintaining strong base salaries and

installing incentive compensation components. Perhaps the health coverage may have a high

deductible or require more out-of-pocket monthly contribution from the employee, or you may

not actually get to use all of your PTO because of workload, but overall E&P companies continue

to maintain better-than-average benefits programs for their employees.



Petroleum Engineering

Reservoir Engineer

Drilling Engineer

Production / Operations Engineer

Engineering Technician `` `

REPORT 2013 Salary


Salaries, Job Descriptions, and Recruiting and Hiring Trends


Reservoir Engineer Drilling Engineer Production/Operations Engineer Engineering Technician

Petroleum Engineering – Summary Table

AVERAGE SALARY

AVERAGE CASH BONUS

AVERAGE YEARS IN

INDUSTRY

Reservoir Engineer $165,537 29% 15

Drilling Engineer $164,012 26% 14

Production/Operations Engineer

$162,772 25% 16

Engineering Technician $89,479 15% 18



Reservoir Engineer The Reservoir Engineer is responsible for estimation of hydrocarbons in place within an oil or gas reservoir, and for forecasting the probable future production performance of a gas or oil reservoir. Responsibilities and Expectations:

Conduct economic evaluation of exploration and development drilling opportunities, acquisitions and divestitures

Prepare budgets, forecasts, and SEC reserves reporting documents

Support drilling plans and execution (e.g. well location, well testing, logging )

Develop and maintain field profitability models, and running economic models of production optimization proposals

Build reservoir models and carry out simulations to evaluate the possible development scenarios and associated reserve profiles

Perform detailed simulation studies to optimize well production/design or to investigate critical aspects related to fluid movements

Conduct analytical studies to understand the fluid flow characteristics in the reservoir

Develop and maintain standard field profitability models, and run economic models of optimization proposals

Prepare reserve estimates and economic analyses for exploration and development drilling and recompletion projects

Analyze electric logs, formation pressures and reservoir fluids

Evaluate potential acquisitions and divestitures

Identify and recommend exploitation opportunities on existing properties

Supervise reserve studies performed by consulting firms

Mentor junior engineers and engineering technicians, and providing guidance and training in fundamental and advanced applications of reservoir engineering

Experience and Educational requirements:

Bachelor of Science Degree in Petroleum Engineering

Hands on experience in field studies, acquisition evaluations, and federal lease sale economics

Oil and Gas Reserve Estimations, Decline Curve Analysis, Petrophysical Log Analysis, Material Balance Studies

Experience in Economic Evaluations using ARIES, OGRE, PEEP software

Excellent communication skills (written and oral) for internal and external project presentation



2013 Update - Reservoir Engineers

Reservoir engineers continue to see strong demand for their economic evaluation skills to gauge

value of an E&P firm‟s in-house assets as well as for asset purchase and sale transactions.

In fact, over the last year we‟ve seen a significant increase in employers seeking reservoir

engineers to fill “Business Development” or “New Ventures” or “A&D” engineer positions.

These roles, rather than sitting in a specific asset team, often float between geographic regions,

evaluating both new play and bolt-on acquisitions, analyzing divestiture candidates in non-core

areas and working hand-in-hand with senior management on overall strategy. These positions

are very desirable for 10+ year experienced reservoir engineers that have seen a diversity of

assets in their careers and been involved in acquisition and divestiture events previously. In

addition, a team-oriented, collaborative personality is important for this role, in order to

connect well across technical disciplines, corporate hierarchy and with colleagues from other

E&P companies.

Additionally, even small to mid-size E&P firms are carving out reserves as an engineering

specialty. In years past we saw reserves as one of several duties that a senior reservoir engineer

would have, along with economic evaluations, exploitation evaluation, decline curve analysis

and the like. Now these growing firms are titling positions such as Reserves Engineer or

Corporate Reservoir Engineer, and these positions focus exclusively on estimating reserves,

preparing SEC reserve reports and coordinating that reporting and auditing with 3rd parties and

funding partners.

The domestic E&P community continues to prize „traditional‟ reservoir engineering over

simulation-heavy skill sets, though the larger independents are increasingly bringing on a

modeling / simulations expert or two for more complex plays.

New grads that enter into rotational petroleum engineering programs within majors or large

independents are seeing a reservoir engineering rotation along with drilling, production and

completions. We have seen a steady uptick in 2-3 year engineers electing to specialize in

reservoir engineering upon completion of the rotational program.



RESERVOIR ENGINEER COMPENSATION

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

0-5 yrs 6-10 yrs 11-25 yrs 26+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS

OVERALL AVERAGE $165,537 15 Years

29% of base salary

EXPERIENCE AVERAGES

0-5 Years Experience $125,890 28%



26+ Years Experience $199,279 32%

REGIONAL AVERAGES

Dallas/Fort Worth Metro $169,411 31%

Denver/Rockies $165,173 28%

Houston Metro $168,659 29%

Mid-Continent $162,695 21%

Midland $170,578 32%

ADDITIONAL COMPENSATION

STOCK

75% participate in a company stock program

BONUS

93% receive an annual cash bonus

VACATION

Average 4.3 weeks

Salary



Drilling Engineer

The Drilling Engineer is responsible for the design, development, review, and implementation of

drilling and well work-over programs, and to recommend changes in such programs due to

economic and production factors.

Responsibilities and Expectations:

Design and implement a procedure to drill the well as economically as possible

Manage the complex drilling operation including both the people and technology

Work closely with the drilling contractor (the operator of the rig and its crews), service

contractors, and compliance personnel, as well as the other members of his internal team

Direct the review and analysis of drilling, redrilling, and remedial well work-over

programs; inspect the implementation of drilling and various remedial programs

Review and monitor mud programs, directional drilling methods, and logging methods

Review and analyze well completion methods to be used in the well for secondary

recovery projects

Direct and prepare graphic records relative to drilling and redrilling, such as well

histories, bit performance records, directional surveys, and drilling cost records

Coordinate activities with other staff as to well logging programs, interpretation of well

logs and sand counting for the preparation of isopach maps

Obtain cores and fluid samples for and exchanges information with other sections

relative to the drilling, redrilling, and remedial well work required to obtain the

maximum efficient recovery of petroleum products from waterflood programs

Prepare detailed reports on the status of drilling operations

Experience and Educational requirements:


Knowledge of petroleum engineering and secondary recovery methods and techniques,

drilling, redrilling, and remedial work

Excellent communication skills (written and oral) for interface with professional

engineers, company management, field personnel and drilling contractors.



2013 Update - Drilling Engineers

Drilling Engineers, particularly those with advanced skill in horizontal drilling within one or

more of the domestic shale plays, are in high demand and will continue to see robust salary

increases and bonus payouts. The job is demanding, and the phone can ring at some very odd

and inconvenient hours, however these engineers are key to driving growth within any E&P

organization. Those drilling engineers with an exclusively vertical / conventional drilling

background still see demand for their skills, but not nearly to the level enjoyed by the

experienced horizontal drilling engineers.

While rig counts for gas-focused operators have declined substantially, and drilling engineers in

those companies pine for higher activity levels, drilling engineers with E&P firms that have a

robust drilling budget and oil assets to exploit are busier than ever. Preparing AFE‟s, selecting

drilling contractors, overseeing the drilling program both from the office and the field, drilling

engineers shoulder a great deal of responsibility, both in manpower and dollars.

Often during early stages of developing a play, these professionals will serve as both drilling

superintendent and engineer in order to more closely monitor progress and ensure the program

is on schedule and budget.

We continue to see experienced drilling engineers crossing into completions work, and vice

versa, in companies big and small, and while it still can be a hurdle, E&P firms are selectively

hiring drilling and completions engineers away from the service companies.

Drilling continues to be a key component of the new grad rotational programs within majors and

large independents, along with completions, production operations, and reservoir engineering.

Anecdotally, it seems that the more a junior engineer enjoys and connects well to the field

operations, the more likely they are to continue in drilling once the rotational program is

complete.

As long as oil prices hold steady and gas prices maintain the incremental increases of the past

couple months, drilling engineers will be in strong demand.



DRILLING ENGINEER COMPENSATION

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

0-5 yrs 6-10 yrs 11-20 yrs 21+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


26% of base salary

EXPERIENCE DATA





REGIONAL DATA






STOCK


BONUS


VACATION

Average 4.0 weeks

Salary



Production / Operations Engineer The Production / Operations Engineer is charged with overseeing the daily operation of wells, including constant monitoring of well performance, planning, and supervising workover operations to maximize recovery and optimizing artificial-lift and pipe flow systems. Additionally, as the well produces, these engineers are responsible for the design and implementation of well completions and subsurface and surface production facilities which are needed to produce the field and treat the produced fluids to produce oil and gas with the specifications needed for transportation and refining operations. Responsibilities and Expectations:

Analyze, interpret, and optimize the performance of individual wells

Determine the most efficient means to develop the field considering the viscosity of the crude oil, the gas-to-oil ratio, the depth and type of formation, and the project economics

Identify wells for production enhancements

Maximize the daily production and ultimate recovery of producing properties through optimum operational procedures

Perform open hole and cased hole log evaluation

Recommend wells for completion or abandonment

Design facilities and coordinate installation

Responsible for cost containment and regulatory compliance

Develop a system of surface equipment that will separate the oil, gas, and water. Explore additional technologies to enhance production from wells that are declining

Work closely with reservoir engineers and those in other disciplines to determine the optimal approach for a particular field

Coordinate all phases of drilling, completion and workover operations

Oversee State, Federal and environmental compliance and deliver professional testimony

Experience and Educational Requirements:


Knowledge of petroleum engineering operations and production methods for oil and natural gas recovery

Excellent communication skills (written and oral) for interface with professional engineers, company management, and field personnel



2013 Update – Production / Operations Engineer

Production and Operations Engineers yet again came out in quantity to participate in our annual

Salary Report, and at all ends of the experience spectrum.

The Average Years of Experience of respondents dipped from a 2012 average of 18 years

experience to 16 years in industry, signaling that we‟re hiring young operations and production

professionals at a steady clip. The Petroleum Engineering programs at our nation‟s colleges and

universities are producing high-quality graduates, and the E&P industry is aggressively hiring

them for both internships and fulltime positions.

Rotational training programs typically revolve around providing new grads with extensive

production and operations engineering experience, which oftentimes leads to specializing in this

discipline at the program‟s end.

While we‟ve seen some industry veterans retire and exit the industry, there are still a large

quantity of production and operations engineers with 30+ years of experience. Given the

industry‟s current drive towards rapid, high volume oil production, particularly in the shale

plays, these engineers have plenty of work and there continues to be strong demand within the

marketplace for senior-level talent.

Enhancing production performance through well optimization continues to be a hallmark of a

good production / operations engineer, and that can mean anything from artificial lift techniques

to workovers, even coloring into optimizing surface facilities. Young and veteran engineers

alike who can demonstrate measurable success in optimizing existing wells are highly valued

and, when inclined to change jobs, find an active and interested marketplace.

While the days of eye-popping sign-on bonuses have not returned, bonus targets and stock

programs continue to be robust, along with a strong industry-level base salary. Production and

operations is the heartbeat of any E&P organization, and it continues to be a high demand area

for hiring.



PRODUCTION/OPERATIONS ENGINEER

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

0-5 yrs 6-10 yrs 11-20 yrs 21-29 yrs 30+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


25% of base salary

EXPERIENCE DATA






REGIONAL DATA

Appalachia $130,264 21%





Midland $169,020 23%


STOCK


BONUS


VACATION

Average 4.1 weeks

Salary



Engineering Technician

The Engineering Technician is responsible for economic evaluation of oil & gas properties for acquisition and divestment, waterflood monitoring, workover and well maintenance records, with daily utilization of ARIES and related valuation programs. Responsibilities and Expectations:

Maintain reserve and production databases; provide annual, mid-year and quarterly reserve reports to banks, verifying financial position

Digitize well logs and create reservoir cross-sections

Maintain files and schematics for surface equipment on oil & gas leases

Organize and update well log library

Perform economic forecasting to evaluate marginally economic oil & gas properties for divestment

Provide oil production forecasting and reserve analyses using production decline curves

Generate computations to determine the economic life of oil & gas fields

Maintain well equipment inventory databases for producing oil & gas leases

Monitor operating, workover, and repair expenses

Estimate drilling & completion costs for drilling projects and provided management with requests for approval of project capitalization

Provide support to acquisition, exploration and development by accessing outside information sources

Provide reports and production history graphs, and data imports for engineering software

Use computer software to create wellbore schematics of downhole equipment for well completions and workovers

Prepare AFEs for well drilling, completions, and workovers

Prepare and maintain scheduling time lines of ongoing projects

Organize and maintain well files Experience and Educational Requirements:

Knowledge of petroleum evaluation software (ARIES)

Experience supporting petroleum engineers within an exploration and production environment.



2013 Update - Engineering Technicians

While the industry isn‟t to the point where engineering technicians have a corner office with a

window, they are certainly seen as essential members of the engineering team, and demand for

those with a developed skill set in engineering support continues to be robust.

Engineering Technicians typically specialize in one engineering discipline, and then become

adept at the software specific to that discipline. Their data management and analysis skills are

at the core of their market value. Drilling Technicians, Production Technicians, Reservoir

Technicians and even Completions Technicians are invaluable to a busy engineering team, and

the software applications they use are specialized and complex.

In smaller operators, you‟ll often see these lines blurred as the few (or lone) engineering

technicians need to support several components of the operation. In addition, some rare

hybrids are adept in supporting both the engineering and the geoscience staff.

As for hiring experienced technicians, the market can be challenging, particularly in the

reservoir technician skill set. As financial institutions that specialize in E&P transactions work

to become more technically astute in their investment and borrowing decisions, they have been

hiring away some of the top ARIES and PhD Win experienced talent, often to the tune of higher-

than-industry salaries. We‟ve seen this more in Houston than the secondary markets, but it‟s

having an impact nationwide.

At long last, training programs are beginning to take hold. Private service firms run by former

E&P technicians offer to train those with a strong math and computer science aptitude in the

industry‟s software and data sets, and then place these trainees in junior technician positions

within E&P firms.

The Technician ranks include a substantial number of senior-level 25+ year professionals,

however that figure, “Average years of experience”, is creeping downward as more industry

newbies gain hands-on experience.



ENGINEERING TECHNICIAN

AVERAGE BASE SALARY

$0

$20,000

$40,000

$60,000

$80,000

$100,000

0-5 yrs 6-10 yrs 11-20 yrs 21-29 yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


15% of base salary

EXPERIENCE DATA





REGIONAL DATA





Midland $88,993 11%


STOCK


BONUS


VACATION

Average 4.4 weeks

Salary



Petroleum Land

Landman

AVERAGE SALARY

AVERAGE CASH BONUS

AVERAGE YEARS IN

INDUSTRY

Landman $135,391 22% 16

Land Technician $66,269 10% 8

REPORT 2013 Salary

Landman Land Technician

Petroleum Land – Summary Table




Petroleum Land





Landman The Petroleum Landman is a job unique to North America. The petroleum landman is

responsible for obtaining permission to drill a well, meaning the land must be leased from the

landowner who owns the subsurface oil and gas.


Responsible for acquisition or disposition of oil, natural gas or surface interests

Conduct negotiation, drafting or management of agreements respecting property

interests

Interface directly with surface owners, research ownership records in county, state, or

provincial offices.

Research titles and negotiate and draft a wide variety of leases and agreements with

landowners, mineral owners, state and federal agencies, Native American tribes and

industry partners.

Represent their employer before regulatory bodies, participate in and provide expertise

for multidisciplinary teams, and apply state-of-the-art software to create maps, reports

and other documents to aid management in the decision-making process

Obtain the proper documents and data so that the company may obtain leases on

acreage it is interested in

Assemble data and maps in connection with acreage rental expiration deadlines to

determine whether the company should renew or continue lease agreements.

Review and evaluate lease recommendations and other data for presentation to

management

Work closely with attorneys in preparation of title opinions, filing force integration

proceedings, interpleading to Court suspended royalties, and quiet title suits

Maintain project area land/well forms on computer systems and spreadsheets


Bachelor of Science Degree in Petroleum Land Management or related discipline

Knowledge of petroleum land management principles

Excellent communication skills (written and oral) for interface with professional

engineers, company management, field personnel, and business contacts / partners



2013 Update – Landmen

Landmen thrive when the industry is in an expansion cycle – at the dawn of new basins and

plays, when innovation and new technology allows for extraction of hydrocarbons from areas

long considered uneconomical, when new infrastructure allows for cheap and easy

transportation of resources to market, when commodity prices allow for even the most

challenging economics to look attractive.

Safe to say that over the past 10-12 years we‟ve had a of number of these expansion events,

which call into action legions of field landmen to gather leases, brokers to manage those crews,

departments of in-house landmen to negotiate agreements, interface with the field and

communicate with company management.

As the Utica works its way into becoming an established play, we‟re taking a pause in the land

grab of the past decade. The industry is in development mode, making the most out of the

strong oil prices in unconventional and conventional oil plays, producing those assets while still

looking for the next marquis play or technological innovation. Domestic E&P companies are, to

speak generally, in harvest mode.

There is demand for experienced landmen, to be sure, however the demand is very specific.

E&P firms are exacting in their hiring parameters: specific basin experience; insistence on

specific type of play experience; strong preference for PLM degrees and CPL certification.

Hands-on negotiations experience is key, as „harvest mode‟ can often translate into a growth

plan via acquisition of producing assets, not a land-driven strategy. As such, landmen that can

work hand-in-hand with the A&D or Business Development department look more appealing

than one that has had a singular asset focus.

The transition from Field Landman to an in-house role continues to be a difficult move to

navigate, largely due to overall demand for experienced landmen being soft, and an overriding

desire for a deal making and A&D negotiations skill set.

We will see another land-focused expansion cycle over the next 18-24 months, and it will be

interesting to see if that‟s driven by a new play or technological innovation, or both.



LANDMAN COMPENSATION

AVERAGE BASE SALARY

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

0-5 yrs 6-10 yrs 11-25 yrs 26+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


22% of base salary

EXPERIENCE DATA





REGIONAL DATA






STOCK


BONUS


VACATION

Average 4.0 weeks

Salary



Land Technician The Land Technician supports the petroleum landmen in their petroleum land management functions within the land department of an exploration & production firm. Responsibilities and Expectations:

Orders and reviews drilling title opinions and prepares necessary curative as required for

drilling activity.

Prepares and reviews exhibits for Federal Unit Agreements and Unit Operating

Agreements.

Assists with forming federal participating areas, securing paying well determinations,

preparing annual plan of development and unit contractions for government approval.

Prepares communication agreements and pooling agreements.

Communicates with various federal and state agency personnel.

Assists Landman with spacing applications and exhibits.

Prepares JOAs and state, federal, and fee assignments.

Reviews and monitors contract briefs set up by Land Administration.

Working with tax maps, farmline and topo maps and property deeds

Working with deed plotting programs and chain of title programs


Demonstrated proficiency in Microsoft Word, Excel and Access

Excellent written and oral communication skills

High degree of initiative, attention to detail and accuracy, timeliness

Strong working knowledge of Leases and Division Orders to interface with Land

Administration personnel and handle difficult land owner questions regarding pooling,

unitization, and spacing.



2013 Update – Land Technicians

While the overall population of land technicians within the domestic E&P industry pales to that

of the geoscience or engineering technician ranks, it is a role we see more and more, and in

operators of all sizes. While the title may vary from one firm to another (Land Associate / Land

Analyst / Land Coordinator), the function is essentially the same, assisting the company‟s land

professionals and utilizing oil & gas land-focused software applications where applicable.

Much like the other technician skill sets, Land Technicians have an experience profile that sits at

the ends of the spectrum, meaning a large number of land techs with 25+ years experience and a

growing number with less than 5 years. In fact the Average Years of Experience of Land Tech

respondents declined significantly, from 11 years in 2012 to an average of 8 years in 2013.

However, there‟s another interesting phenomenon at play with Land Technicians that we don‟t

see nearly as much with engineering or geosciences techs – the technician role seems to serve as

a stepping stone to other roles within the land department.

Typically Geotechs move up in the organization to be senior geotechs and, if the company is

large enough, supervisor of a team of technicians. The same is largely true of Engineering

Technicians. For Land Techs, however, we often see progression not into a Senior Land

Technician job, but into Junior Landman positions after 2-5 years functioning as a Land Tech.

So why would this transition occur in an E&P land department and not an engineering or

exploration department? The quick answer is „the degree‟. In order to be a geologist, you need

to have (at a minimum) a BS in Geology. In order to be a Drilling Engineer need to have a BS in

(preferably) Petroleum Engineering, or in Chemical or Mechanical Engineering. While PLM

degrees are a huge plus for landmen to have, particularly when shopping their skills, it is by no

means a must-have degree in order to be a Petroleum Landman at an E&P company.

Land Technicians provide much-needed support to landmen, and in the process, build themselves

a versatile skill set that can be applied to senior-level tech work or a junior landman role.



LAND TECHNICIANS

AVERAGE BASE SALARY

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

0-5 yrs 4-8 yrs 9+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


10% of base salary

EXPERIENCE DATA




REGIONAL DATA






STOCK


BONUS


VACATION

Average 3 weeks

Salary



Petroleum Geosciences

Geologist

Geophysicist

Geological / Geophysical Technician

REPORT 2013 Salary

Petroleum Geosciences



Geologist Geophysicist Geological/Geophysical Technician Petrophysicist

Petroleum Geosciences – Summary Table

AVERAGE SALARY

AVERAGE CASH

BONUS

AVERAGE YEARS IN

INDUSTRY

Geologist $160,214 26% 18

Geophysicist $192,135 25% 27

Geological/Geophysical Technician $90,210 15% 24

Petrophysicist $172,006 24% 18



Geologist

The Petroleum Geologist is typically focused on development (also referred to as operations) geology or exploration geology. Exploration Geologists are more involved in the activity of prospect generation, which includes locating a prospect, making geological surveys, and documenting the viability and location of the prospect. Development Geologists work alongside drilling staff to best get the resources out of the ground. Responsibilities and Expectations:

Perform log analysis, and well site work that results in the discovery of new reservoirs and field extensions

Prepare detailed studies regarding producing properties with respect to future drilling, secondary recovery operations, and rework potential

Prepare a variety of detailed structural and stratigraphic maps used to define exploration models for generating prospects

Work closely with Geophysics, Land and Engineering to develop a prospect portfolio

Achieve increases in oil and natural gas production by revising previous formation structural and stratigraphic interpretations

Evaluate prospects and develop lead areas by conducting well data analysis, log interpretation and lithologic correlation, generation of maps and cross sections, and modeling gas/oil in-place volumetric estimates

Develop existing assets by daily interaction with engineering (reservoir management), selection of well completion intervals, and providing geological interpretation to field operations

Select core sites and intervals, and coordinate geologic specific drilling requirements

Interpret geologic data and calculate pay zones from log analysis

Compile and evaluate historical production and trends in completion techniques.

Conduct subsurface evaluations to link logs, stratigraphy, and petrophysical properties to production


Master and Bachelor of Science Degrees in Geology or related Geosciences discipline

Successful track record of prospect generation and finding hydrocarbons

Excellent communication skills (written and oral) for interface with geoscientists, company management, seismic service companies and technicians

Experience as well-site geologist or in well-logging or data acquisition or interpretation is desirable



2013 Update – Geologists

Geologists experienced another good year in 2012, with a steady flow of open positions in both

exploration and operations / development functions. The unconventional plays most certainly

focused more on hiring for development and operations geologists, while the offshore and

onshore new ventures roles sought explorationists.

Overall, geologist salaries from year to year did not change appreciably within our report except

for notable growth in the 6-10 year experience group. We largely attribute the lack of overall

increase in average salary to a lower average „years of experience‟ in our data sets, the result of

more „young‟ geologists entering the business combined with the retirement of industry veterans.

With an average salary of $107k for geologists with 0-5 years experience versus an average of

$194k for those with 30+ years, it‟s easy to see how a small increase in the number of young

geologists and the removal of a quantity of senior talent can impact the statistics.

E&P firms, particularly the majors and large independents have continued to hire the top

academic performers coming out of the Masters-level programs throughout the U.S. We see new

hires that are graduating from programs in California, Kansas, Wisconsin, Ohio and New York,

in addition to many from the „usual suspects‟ of UT, A&M, Oklahoma, OSU and Mines. With

some exceptions, an MS is still the gold standard. Those with a BS in Geology can certainly

land a job in industry, but the lack of a Masters certainly limits their opportunities.

Geologists continue to be key players within “New Ventures” or “Business Development” team.

These teams are charged with locating, evaluating and proposing acquisition opportunities, both

in the form of bolt-ons to existing acreage and in new play opportunities, be it existing

production or exploration acreage. These positions, highly desired by exploration-minded

geoscientists, can have a huge influence on the future of an organization, and therefore are

typically reserved for senior-level professionals.

Geologists should see consistent demand for their skills in the coming year in most of the major

markets in the U.S.



GEOLOGISTS

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

0-5 yrs 6-10 yrs 11-20 yrs 21-29 yrs 30+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


26% of base salary

EXPERIENCE DATA






REGIONAL DATA

Appalachia $143,045 28%





Midland $167,088 29%


STOCK


BONUS


VACATION

Average 4.2 weeks

Salary



Geophysicist

Petroleum Geophysicists use the principles of physics to measure and assess the properties of

the earth and its environment in order to manage exploration and development projects on land

and at sea. They plan, oversee and analyze complex land and marine surveys.


Take seismic projects from concept to drill ready which can include 2-D / 3-D design,

acquisition, processing, interpretation, and modeling

Perform evaluations utilizing workstation environments including Landmark,

Kingdom/3D-Pak, Geoquest, ZMAP, Geographix, and GMAplus software platforms

Compile regional maps and coordinate seismic processing efforts for exploration efforts

Participate in the evaluation and acquisition of production and exploration assets

Conduct structural and stratigraphic interpretation of 3D seismic reflection volumes

Perform quantitative amplitude interpretation, including AVO, for pre-drill prediction of

lithology and fluid types away from well control

Assess 3D seismic data fidelity by, for example, ray-tracing effects of acquisition on

seismic image and modeling effects of velocity on migrated position of reflectors

Perform volumetric calculations, risk assessment and preliminary economic analysis for

exploration opportunities

Work with Managers of Engineering, Land, and Exploration to fully evaluate all aspects

of new exploration opportunities


Master and Bachelor of Science Degrees in Geophysics or related Geosciences discipline

Successful track record of prospect generation and finding hydrocarbons

Excellent communication skills (written and oral) for interface with geoscientists,

company management, seismic service companies and technicians



2013 Update – Geophysicists

Another year, another substantial increase in average base salary for Geophysicists! Up from

last year‟s average of $183k to $192k yet again Geophysicists were our top earners in the 2013

E&P Salary Report. They also outpaced (by a wide margin) the Average Years Experience of all

the other skill sets, at an average of 27 years of experience. The next highest for professional-

level skill sets was Petrophysicists at an average of 18 years of experience – not even close.

So what‟s to be made of this aging Geophysicist population? 10 years ago, this phenomenon

was seen in every technical discipline in E&P. In 2001, SPE published data that their

membership was aging at a rate almost identical to the calendar, meaning no young people were

entering the industry. That‟s changed in Engineering, it‟s changed in Land and it‟s even changed

in Geology, so why not in geophysics?

Clearly there are young geophysicists (< 5 years experience) in the E&P business, however their

numbers are few. Furthermore, as the domestic operators continue to concentrate on

unconventional plays the need for exploration geophysicists to perform high-end seismic

interpretation wanes. Geophysicists are called into action on development and operations efforts,

but not at the rate geologists are needed. Geophysicists are key to unlocking the potential in new

frontier areas and offshore, but the domestic industry seems to be in harvest mode, not looking

for elephants.

The Geophysicist is still a key component to any successful exploration effort, and they are well

compensated for their work. When an E&P company needs to hire a senior geophysicist, often

it‟s a long search and requires both strong financial incentives and a demonstrated commitment

to exploration to get candidates hired.

That said, while these industry veterans are still coming to work every day, there needs to be

more young people brought into the industry to be mentored and trained in the nuances of

seismic interpretation and hydrocarbon exploration. It would be a shame to have that experience

leave the industry without more knowledge transferred to younger colleagues.



GEOPHYSICISTS

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0-10 yrs 11-20 yrs 21-29 yrs 30+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


25% of base salary

EXPERIENCE DATA





REGIONAL DATA






STOCK


BONUS


PAID TIME OFF

Average 4.7 weeks

Salary



Geological / Geophysical Technician The Geological / Geophysical Technician supports petroleum geoscientists in their exploration and development efforts for company assets. Additionally, these technicians assist the geoscientists with evaluation efforts for acquisitions and divestitures. The Technician‟s work is performed using workstation software and mapping software, including Geographix, Petra, Kingdom / SMT, and Zmap, to name a few. Responsibilities and Expectations:

Scanning, digitizing and geo-referencing all types of hard copy geological maps, lease maps, etc. for use in many different software packages including GESX, AutoCAD, and Global Mapper

Creating thematic seismic basemaps, Isopach maps and cross sections in GES97 and GES Explorer

Retrieve, print and prepare mud logs for geologists

Create and maintain team well files which includes e-logs, mud logs, maps and election papers for wells

Researched and produced acreage ArcView/GIS gas maps to determine new ventures acreage for new acquisitions

Generate contour maps of monthly production (gas & water rate).

Coordinate with Drafting department to complete comprehensive Geographix mapping projects for presentations

Utilize Geographix to depth calibrate and create smart-rasters for wells, creating maps and cross-sections to determine new drill locations

Generate maps and cross-sections zeroing in on multiple pay zones using Petra and hand cross-sections

Prepared structure and isopach maps

Work closely with engineers to determine production rates, reserve adds, decline curves, gas in place, recoverable gas, spacing issues and potential payout

Manage GESX Well Library, consisting of the acquisition and importation of .las data and workstation ready digits from numerous vendors

Deliver clear and succinct presentations to management, geoscientists and mineral owners

Undertake practical field and laboratory work to support geophysical exploration and development work


Bachelor‟s Degree in Geology, Geophysics or related Geosciences discipline is preferred but not essential

Knowledge of geosciences workstation software and mapping software

Experience supporting petroleum geoscientists within an exploration and production environment



2013 Update – Geological and Geophysical Technicians

“Steady as she goes” would summarize the marketplace for Geological and Geophysical

Technicians over the past year. The average salary data showed a small increase in both base

salary, from an average of $89k to an average of $90k, and a small bump in the percentage of

salary received as cash bonuses from 14% to 15%. The Average Years of Experience continued

to be one of the highest in the report at over 23 years of industry experience.

While demand for geoscience technicians was not as robust as that for their engineering

technician counterparts, hiring was steady throughout the year, with the typical requests for Petra

experience for Geotechs and for SMT and Geographix experience for Geophysical Techs.

The most significant change in experience „wish lists‟ is the increasing requests for GIS

experience, particularly the ESRI line of ArcGIS / ArcInfo products. In larger E&P shops, we‟ve

see dedicated GIS Technicians who oftentimes have not worked in the E&P industry, but bring

an advanced knowledge of these ESRI products. In smaller E&P companies, Geotechs are being

asked to work with both the legacy products like Petra as well as become proficient with these

new tools.

While there‟s still no industry-standard training to become a Geoscience Technician, we are

seeing younger professionals with a BS in Geology take the route of becoming a Tech, either as a

career path of its own or as a lead-in to becoming a Geologist by being in the right place at the

right time, or in advance of returning to school to gain the Masters Degree.

We anticipate demand to stay consistent for Geological and Geophysical Technicians in the year

to come, with an increasing emphasis on GIS tools and their role in E&P mapping efforts.



GEOLOGICAL/GEOPHYSICAL TECHNICIAN

AVERAGE BASE SALARY

$0

$20,000

$40,000

$60,000

$80,000

$100,000

0-10 yrs 11-29 yrs 30+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


15% of base salary

EXPERIENCE DATA




REGIONAL DATA






STOCK


BONUS


VACATION

Average 4.7 weeks

Salary



Petrophysicist

Petrophysicists within the E&P industry typically are tasked with working alongside engineers

and other geoscientists to help fully understand the rock properties of the reservoir.

Petrophysicists evaluate the reservoir rock properties by employing well log measurements, in

which a string of measurement tools are inserted in the borehole, core measurements, in which

rock samples are retrieved from subsurface, and seismic measurements, and combining them

with geology and geophysics.

These petrophysicists compute the conventional (or reservoir) petrophysical properties,

including lithology, porosity, water saturation and permeability.

Reservoir models are built upon their measured and derived petrophysical properties to

estimate the amount of hydrocarbon present in the reservoir, the rate at which that hydrocarbon

can be produced to the Earth‟s surface through wellbores, and the fluid flow in rocks.

The petrophysicist will evaluate petrophysical problems of varying complexity and design

and/or apply the correct solution to them, in addition to conducting advanced technical studies

independently or integrated with exploration and development teams.


Bachelor‟s and Master‟s Degree in Geology, Geophysics or related Physics discipline is

strongly preferred, although occasionally a petrophysicist will have a Petroleum

Engineering degree.

Petrophysical skills should cover the entire range of issues encountered from exploration

to development, with experience in designing well logging programs, doing data quality

control of acquired log data, formation evaluations of wells, creating final log curve for

input in reservoir models, reservoir description, and rock properties for seismic models.

Ability to integrate petrophysical work with geophysics, geology and reservoir

engineering is critical.

Those with strong log analysis skills but without extensive technical education

credentials are starting to make progress in industry, however the technical degree still

differentiates a Log Analyst from a Petrophysicist.



2013 Update – Petrophysicists

Petrophysicists continue to occupy the #2 slot (behind Geophysicists) of highest base salary in

our annual Salary Report, this year with an average base salary of $172k. That figure actually

represents a small decrease from the 2012 average salary of $175k, and while the less than 2%

delta is not significant, the reason behind the minor decrease most certainly is.

Petrophysicists, much like their geophysical counterparts, are largely industry veterans. A

fraction of new college grads are hired into petrophysical roles as compared to engineering or

geology. Combine that with a veteran roster of 30+ year experienced professionals that are at or

beyond retirement age, and you‟ve got a potential problem brewing when all of these seasoned

petrophysicists decide it‟s time to „hang up the cleats‟.

That said, this year our data showed that the Average Years Experience for petrophysicists that

participated in the report was down two whole years, from an average of 20 years to an average

of 18 years of industry experience. While the decrease in average years of experience in our

participant pool explains the dip in average salary, it certainly begs the question of how this

came to pass.

We believe that E&P companies have responded to a clear supply and demand problem by

having younger petrophysicists in their organizations and it‟s our contention that they‟ve done

this not by taking a new college grad and making them a petrophysicist (undoubtedly that

happens, but we think it‟s limited in number). Instead, our anecdotal experience is that young

geologists (2-5 years experience) are being trained to be petrophysicists by their current

employer. They are transferring their geological education and experience, which has largely

been in developmental geology, and parlayed that background into overseeing the execution of

logging programs in the field, and then learning log and core analysis, as well as pore pressure

prediction and porosity and saturation modeling.

The net of all of this is great news for the industry, as we are making significant strides to replace

a highly technical skill set before that skill set leaves the workforce.



PETROPHYSICISTS

AVERAGE BASE SALARY

$0

$50,000

$100,000

$150,000

$200,000

0-10 yrs 11-25 yrs 26+ yrs

Years of Service

BASE

SALARY

ANNUAL

CASH BONUS


24% of base salary

EXPERIENCE DATA




REGIONAL DATA




Midland $164,000 30%


STOCK


BONUS


VACATION

Average 4.3 weeks

Salary



About CSI Recruiting

CSI Recruiting is a professional recruiting and personnel search firm focused exclusively on the

Domestic U.S. Exploration & Production industry since the founding of the company in 2001.

Headquartered in Denver, Colorado, CSI‟s staff of experienced oil & gas recruiters work with

candidates and client companies throughout the U.S., finding and placing E&P professionals

into Engineering, Geosciences and Land positions located from Alaska to Appalachia.

CSI Recruiting‟s division office in Dallas / Fort Worth, opened in 2011, is growing rapidly,

adding new clients throughout the DFW market, Houston, Midland and in Oklahoma.

CSI‟s recruiting professionals are consistently involved with the industry‟s annual conferences

and prospect expositions, and have been long-time members and supporters of AAPG, AAPL,

SEG, and SPE. CSI is often cited by national publications such as The Wall Street Journal and

Oil & Gas Investor in articles pertaining to oil & gas hiring trends and recruiting efforts.

CSI Recruiting is supporting the development and execution of this report in response to market

demands for a detailed and focused summary of current salaries within the U.S. E&P

marketplace.

The comments contained herein regarding compensation trends and marketplace demands are

the opinion of staffers within CSI Recruiting, based on their years of in-depth work within the

domestic E&P industry.

Offices in Denver, Dallas / Fort Worth and Houston

1-888-264-7600

www.csirecruiting.com

2013 e&p salary report - csi recruiting.pdf

Documents

domestic ep salary report

annual salary report

domestic ep marketplace

domestic ep industry

ep technical professionals

ep business

csi recruitings

domestic exploration