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Started By
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re: Salary Question for OT O&G Engineers
Posted on 3/18/15 at 8:36 pm to 8thyearsenior
Posted on 3/18/15 at 8:36 pm to 8thyearsenior
Lol at you thinking engineers will suffer anything from low oil prices
2
Posted on 3/18/15 at 8:38 pm to TH03
Consultants have been, at least upstream.
Posted on 3/18/15 at 8:40 pm to GREENHEAD22
Yea, upstream is likely to feel the brunt of this, but mainly exploration like landmen and such. You're still drilling so you still need engineers
Posted on 3/18/15 at 8:47 pm to TH03
rig count is down over 50% from last year, less rigs = less engineers
Posted on 3/18/15 at 8:47 pm to yellowfin
Still drilling though. Still need engineers.
Posted on 3/18/15 at 8:48 pm to TH03
That doesnt help the ones being laid off right now
Posted on 3/18/15 at 8:50 pm to yellowfin
Oh the shitty ones. Oh well
When shite went down at my landmen firm, the good workers were fine. It was the shitty lazy ones that got fired. Sucks to suck I guess.
When shite went down at my landmen firm, the good workers were fine. It was the shitty lazy ones that got fired. Sucks to suck I guess.
This post was edited on 3/18/15 at 8:51 pm
Posted on 3/18/15 at 8:51 pm to kew48
quote:
What is an O&G Engineer ? There are PE Petroleum Engineering graduates-but never hard of an O&G Engineer ?
You need more than petroleum engineers to get the O&G out of the ground.
You need civil engineers to design the structures.
You need mechanical engineers to design pumps and vessels.
You need electrical egineers to design turbines and power distribution systems.
You need computer engineers to design control systems.
You need chemical engineers to design process flow conditions.
Oil and gas is bigger than just a subsect of one type of engineering.
This post was edited on 3/18/15 at 8:52 pm
Posted on 3/18/15 at 8:51 pm to yellowfin
Yep. And that means they're producing from fewer wells. The first time production from major shale plays will start declining is in April (Bakken, Eagle Ford, Niobrara). Permian is still going fairly strong, but the rig count is shrinking FAST.
Nobody, not even engineers, is immune to lower oil prices. Common sense should dictate that based on how much they've fallen over the past 8 months or so.
Nobody, not even engineers, is immune to lower oil prices. Common sense should dictate that based on how much they've fallen over the past 8 months or so.
This post was edited on 3/18/15 at 8:55 pm
Posted on 3/18/15 at 8:51 pm to TH03
If you don't think good drilling engineers are laid off in down times like now then you don't know much about the industry.
Posted on 3/18/15 at 8:55 pm to yellowfin
Let's consider who you're talking to Fin.
Posted on 3/18/15 at 8:56 pm to tgrbaitn08
He's an obvious redditor, so I don't know man. I don't mess with alphas.
Posted on 3/18/15 at 8:58 pm to mattz1122
Posted on 3/18/15 at 9:00 pm to TH03
lol at you for talking out of your arse and getting corrected by people who actually know what the frick they are talking about
Posted on 3/18/15 at 9:14 pm to mattz1122
How exactly is the Permian doing? When I was in it, it was a lot of expensive dry holes, but the ones that came online did very well. I just can't imagine the amount of money we spent on leases over there going to complete shite
Posted on 3/18/15 at 9:26 pm to MadeInMexico
I'm guessing due to the billable rate inquires you work for a O&G service company. No way you get a raise right now. Just cross your fingers that you're not on the next layoff list.
Posted on 3/19/15 at 8:16 am to PrettyLights
quote:
The base pay rate for an Engineer is typically 25% of their billable rate.
If this is true for you then you need to look for another job. Realistically it should be 40-50% of billable rate.
Glassdoor.com is a good place to get a general idea of what other engineers make.
Posted on 3/19/15 at 8:40 am to MadeInMexico
you need to figure out your company's overhead factor for employee salaries. For example, where I work it's roughly 20%. So if they pay me $100, it "cost" them $120.
Afterwards, you can determine the gross margin they make on your billable hour. To use the example above, if they charge $250/hr for me, and my pay rate is $100/hr, the gross margin % is ($250-(100*1.2))/250 = 52%.
More than likely they will have you somewhere around 50-60% if you don't bring in your own work. If you're "bringing meat to the table" it's easier to justify a lower margin, so they might take lower 50% to 40% (meaning they pay your more). If you really bring in the work and keep several people billable in addition to yourself, they could creep down below 40%...but you'd have to be supporting multiple people long term.
It's a numbers game, and if you know the inputs, you can have a greater influence on the output.
Since you have to ask, I'm guessing you don't bring in your own work, and that being the case I would highly recommend not asking for a raise.
Afterwards, you can determine the gross margin they make on your billable hour. To use the example above, if they charge $250/hr for me, and my pay rate is $100/hr, the gross margin % is ($250-(100*1.2))/250 = 52%.
More than likely they will have you somewhere around 50-60% if you don't bring in your own work. If you're "bringing meat to the table" it's easier to justify a lower margin, so they might take lower 50% to 40% (meaning they pay your more). If you really bring in the work and keep several people billable in addition to yourself, they could creep down below 40%...but you'd have to be supporting multiple people long term.
It's a numbers game, and if you know the inputs, you can have a greater influence on the output.
Since you have to ask, I'm guessing you don't bring in your own work, and that being the case I would highly recommend not asking for a raise.
This post was edited on 3/19/15 at 8:43 am
Posted on 3/19/15 at 9:06 am to CptRusty
What the OP needs to do, if he is upstream, is keep his head down and mouth shut. He is a consultant, of the five I know three have been let go and if he is in the service side like someone mentioned diff wouldn't be asking for a raise right now.
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