Fifty-five percent of executives at 137 oil and gas companies expect their headcount to remain unchanged from December 2022 to December 2023, the Fed’s Energy Survey of Dallas of the first quarter of 2023.
According to the survey, thirty-three percent of these managers expect their workforce to increase slightly, seven percent expect it to decrease slightly, four percent expect it to increase significantly and one percent expect it to decrease significantly.
Of the 137 oil and gas company executives, 87 were from exploration and production (E&P) companies, while 50 were from oil and gas support services companies, the survey noted. Looking at responses from only E&P company oil and gas executives, the survey revealed that 66 percent of those respondents expect their workforce to stay the same, 25 percent anticipate it will increase slightly, six percent expect it to decrease slightly, by two percent. expect it to increase significantly, and one percent expect it to decrease significantly.
Looking only at responses from oil and gas support services companies, the survey noted that 46 percent of oil and gas executives at these companies expect their workforce to increase slightly, 36 percent expect it to stay the same, 10 percent expect it to decrease slightly, six. percent expect it to increase significantly and two percent expect it to decrease significantly.
The Dallas Fed Energy Survey for the first quarter of 2022, which was released in March of last year, revealed that 51 percent of executives at 134 oil and gas companies expected their workforce to would remain the same from December 2021 to December 2022.
Thirty-seven percent of those managers expected their count to increase slightly, seven percent expected it to increase significantly, three percent expected it to decrease slightly and one percent expected it to decrease significantly, the poll.
Of those 134 oil and gas company executives, 84 were from operating and production companies, while 50 were from oil and gas support services companies, the survey revealed. In the first quarter of 2022, the Dallas Fed Energy Survey, 63 percent of executives at operating and production companies expected their headcount to remain the same, 31 percent expected would increase slightly, five percent expected it to decrease slightly, one percent expected it to decrease significantly. and zero percent expected it to increase significantly.
The Dallas Fed Energy Survey for the first quarter of 2022 also showed that 48 percent of 50 executives at oil and gas support services companies expected their workforce to increase slightly. Thirty-two percent expected it to stay the same, 18 percent expected it to increase significantly, two percent expected it to decrease significantly and zero percent expected it to decrease slightly, the survey showed.
Labor Affairs
Labor issues were highlighted several times in a “comments” section of the Dallas Fed’s latest energy survey, which the survey described showed comments from respondents’ completed surveys that had been edited for the its publication.
“We expect oil and gas production to decline in 2023 due to higher drilling and completion costs. The significant factor is the lack of skilled employees,” noted an E&P company comment, according to the survey .
“Labor shortages, rising costs of materials and supplies, domestic and foreign political risk, demand volatility and domestic economic uncertainty have contributed to a difficult environment in which to work and plans for the future,” commented another, the survey showed. .
One support services company is said to have commented, “The persistent labor shortage in the Permian Basin shows no signs of abating. It is very difficult to fill mechanical and electrical positions with local residents. Our company relies on shift workers from out of state to fill these positions due to the shortage of local skilled workers”.
Another is said to have commented: “Work remains the biggest challenge. Activity and revenue would be higher with additional employees. The lack of labor is also affecting vendors and delivery times.”
“Finding workers is getting harder and harder,” commented another support services company, according to the survey.
The Dallas Fed conducts the Dallas Fed Energy Survey quarterly to obtain a timely assessment of energy activity among oil and gas companies located or headquartered in the Eleventh District, the survey notes.
To contact the author, please send an email andreas.exarcheas@rigzone.com
