Is the crisis over?
01Is the crisis over?
PREDICTIONS FOR OFFSHORE SECTOR – AND THE LABOR MARKET.
The growing price of crude oil on the world market sounds promising to improve employment in the Offshore sector. Since October last year, the price of oil has risen from $ 55.5 USD a barrel to over $ 68, reached in January this year.
However, can this increase be a guarantee of the crisis end and resumption of employment in the offshore sector?
During the Great Crisis, the big oil concerns and companies operating in the mining industry at sea estimated that return to the game can take place only when the price per barrel will be at least $ 50. And the first tangible attempts to restart the possessed forces and resources will start when the price per barrel reaches $ 65.
Although the price of oil has exceeded the magic, long-awaited value, no spectacular breakthrough has yet been noticed. According to experts, the process will be rather long-term and spread over the time.
Companies after very difficult experiences from previous years will be very careful to take action. Losses that were recorded in previous years also significantly affect the rapid rise from the ashes.
Recent reports from Aberdeen have not been optimistic yet. It is estimated that another 5.500 jobs in the oil and gas industry may be lost over the next decade.
According to experts in the oil and gas market, future jobs will depend on the level of activity in the North Sea. The priority is to attract new investments to North Sea areal in order to conduct new activities and protect jobs.
Seafarers should not expect quick and immediate changes. Shipowners in the Offshore sector have struggled to maintain their staff over the past few years. Many auxiliary and corrective programs were created to keep the key employees in the company during the crisis. And they will be the first to be mobilized for new projects. Only after that, supplementary recruitments will be carried out. Unfortunately, employment conditions in this sector will not be as lucrative as they were a few years ago.
Employees can expect rates lower by half than those during the offshore paradise.
Looking back at what was happening in the Offshore sector a few years ago, it can be easily said: if everyone around says that it is so good, it can only mean that the “party” is over or it will be over soon.
According to experts, the crisis in the Offshore sector significantly shuffled the labor market among Seafarers. Let us remind that a few years ago, even very young employees with short experience were strongly negotiating the rates of their contracts. Certainly, this state will not return. In this sector, the employer’s state is maintained and he will dictate the terms of employment.
Many Offshore workers have had to return to conventional ships with pain. A large group decided to wait out the crisis using ancillary programs or living on savings. The so-called “Aberdeen syndrome ” developed among sailors, which symptoms were seafarers, previously engaged in offshore activities, denying working in the Offshore sector. Many of them, especially from deck department, had serious difficulties to return to conventional units.
If the price of oil will maintain a constant growth trend, it will certainly improve the mood among companies from the Offshore industry. And only then will you we able to expect new job offers. When will it happen? It is difficult to say at present.