2019 SPE Membership Salary Survey - Society of Petroleum Engineers

2019 SPE Membership Salary Survey

Highlight Report -- November 2019

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2019 SPE Membership Salary Survey Highlight Report

On 10 July 2019, the Society of Petroleum Engineers (SPE) sent invitations to 84,541 professional members to participate online in the annual SPE Membership Salary Survey. The survey asks about members' compensation for the period of 30 June 2018 to 30 June 2019. By the close of the survey on 9 August 2019, 4,037 members responded for a 4.8% response rate, of which 2,796 provided valid compensation data, resulting in a reported final 3.3% response rate. This sample of responses produces a margin of error of ? 1.82% at a 95% confidence level. Salary information and other data in the report are entirely self-reported.

Participants in the 2019 SPE Membership Salary Survey represented 87 countries and 38 states in the United States. More than four-fifths (81.9%) are citizens of the countries in which they work. Their employers' headquarters are based in 78 countries. As in previous years, about half (48.8%) of the reported respondents are based in countries outside of the United States. The percentage of female participants included in the report is similar to previous years at 13.4% (13.4% in 2018; 13.7% in 2017; 13.7% in 2016).

Respondents were asked to provide their employment status, using the status that described them for the majority of 30 June 2018 to 30 June 2019. The majority (91.8%) of respondents indicated they are full-time, regular payroll employees. A small percentage of respondents (5.3%) are contract, freelance, or part-time employees. The contract, freelance, or part-time segment has more than doubled in the last five years (5.0% in 2018; 4.2% in 2017; 3.2% in 2016; 2.4% in 2015; 2.2% in 2014). This year, 2.3% identified as self-employed or business.

The composition of respondents by job function remains consistent year over year. One-fifth (20.9%) of participants in this year's survey are primarily engaged in Reservoir Engineering (21.9% in 2018; 21.4% in 2017; 19.5% in 2016). 15.1% reported a focus on Engineering ? Other or Combination (14.2% in 2018; 14.7% in 2017; 14.2% in 2016), and 11.2% are involved in Production Engineering (12.1% in 2018; 10.7% in 2017; 11.4% in 2016). Two new job function categories related to Digital Technology were added in 2019: Digital Technology (Hardware) - Automation, Robotics, IIoT, Edge, AR/VR; Digital Technology (Software) - Data Science, Data Analytics, Digital Engineering. Only a few (0.1%) respondents are involved in Digital Technology (Hardware), two percent of respondents (2.2%) are involved in Digital Technology (Software).

More than one-third (34.1%) of respondents work for an Independent Oil and Gas Company. Nearly one quarter (24.1%) are employed by a Service or Manufacturing Company. One-fifth (20.1%) are employed by an Integrated Oil and Gas Company (up from 18.4% in 2018), and less than onetenth (6.4%) work for a National Oil and Gas Company. This year, 7.2% of members reported working for a consulting company.

Copyright ? 2019 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 |

2019 SPE Membership Salary Survey 1

General Findings

All compensation data presented in this Highlight Report is in US dollars (USD). Data was collected in local currencies and was converted to US Dollars (USD) using the exchange rate as of 8 August 2019, which is the effective date of this year's data.

For Figures 1-5, any table figures in bold text have 30 or more respondents and the data is more likely to be statistically significant.

Petroleum industry professionals reported an average total compensation of USD 197,619 in 2019. The past three years have seen gradual increases in total compensation (USD 196,874 in 2018; USD 194,649 in 2017; USD 185,001 in 2016), but have yet to attain compensation levels seen prior to 2016 (USD 206,020 in 2015; USD 214,328 in 2014).

The mean base pay reported in 2019 (USD 147,027) is lower than 2018 (USD 151,003) but similar to previously reported base pays (USD 151,122 in 2017; USD 143,006 in 2016; USD 153,492 in 2015). Other compensation (including bonuses) increased (USD 50,011) again in 2019, showing a fouryear trend of increases in other compensation (USD 45,872 in 2018; USD 43,712 in 2017; USD 41,995 in 2016), although not yet not meeting other compensation seen prior to 2016 (USD 52,931 in 2015 and USD 57,889 in 2014).

In 2019, professionals receiving a car allowance stayed consistent with previous years at nearly one quarter, 23.5% (22.9% in 2018; 23.2% in 2017; 24.6% in 2016; 26.3% in 2015).

The average age of professionals in the survey was 43 years old, which remained the same as the prior eight years. However, this demographic varied by gender. Males' age was above the average at 44, and females' age was below the average at 38.

The amount of experience professionals have in the oil and gas industry has remained consistent with recent years, with the average at 19 years. Experience varied by gender with male professionals having more experience than females. The average years of experience in 2019 is 19.3 years for males and 13.4 years for females.

The number of professionals who reported an education level higher than a bachelor's degree was 46.9%, continuing a steady upward trend seen since 2016 (45.5% in 2018; 44.2% in 2017; 43.8% in 2016).

Copyright ? 2019 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 |

2019 SPE Membership Salary Survey 2

Figure 1

Summary of Results by Work Region (All compensation data is expressed in US Dollars)

Base Pay Mean Median

Other Compensation Mean Median

Total Compensation Mean Median

Average Base Pay % Increase % With Car Allowance Average Age Average Years of Experience in Oil and Gas % With Education Beyond Bachelor's Degree % Citizens of Work Region

Total (n=2,796)

United States (n=1,342)

Africa (n=120)

Oceania, Australia, and New Zealand (n=108)

Canada (n=200)

Middle East

(n=146)

North Sea and North Atlantic

(n=335)

Northern and

Central Asia (n=84)

South America, Caribbean,

and Mexico (n=158)

South, Central,

and Eastern Europe (n=117)

Southeast Asia

(n=186)

$147,027 $130,000

$182,455 $165,000

$117,603 $62,746

$155,263 $146,349

$114,545 $98,228

$131,784 $113,327

$136,127 $115,023

$70,845 $38,162

$84,094 $59,688

$100,197 $65,625

$89,459 $55,609

$50,811 $20,000

$75,789 $35,000

$43,037 $8,270

$29,230 $13,614

$26,676 $13,261

$35,085 $15,302

$25,540 $13,958

$13,663 $2,152

$18,055 $2,604

$32,606 $10,000

$27,205 $6,514

$197,619 $156,822

19.8% 23.7%

43 18.5

46.9% 81.8%

$258,074 $205,750

29.1% 18.1%

44 20

36.2% 91.0%

$160,281 $80,842 11.6% 48.7%

42 15.3

58.6% 73.3%

$184,493 $163,768

6.5% 14.8%

45 20.2

42.5% 80.6%

$140,954 $122,596

5.1% 10.1%

41 16.9

25.3% 95.5%

$166,869 $144,500

18.0% 51.0%

42 17.2

53.8% 24.7%

$161,667 $133,361

5.7% 33.1%

44 18.9

75.7% 70.4%

$84,182 $41,654 10.5% 17.3%

40 15.3

76.5% 78.6%

$102,034 $69,967 32.3% 21.9%

41 16.3

63.2% 86.7%

$132,246 $71,080

8.3% 23.5%

43 16.8

78.3% 72.6%

$116,518 $66,520

6.4% 34.2%

39 15.3

38.6% 75.8%

Copyright ? 2019 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 |

2019 SPE Membership Salary Survey 3

Figure 2 Base Pay and Other Compensation by Work Region

$300,000

Base Pay and Other Compensation by Work Region (USD)

$250,000 $200,000 $150,000 $100,000

$50,000

$75,789

$50,811

$43,037

$29,230

$26,676

$35,085

$25,540

$13,663

$18,055

$32,606

$27,205

$147,027 $182,455

$117,603 $155,263

$114,545 $131,784 $136,127 $70,845 $84,094 $100,197 $89,459

$0

Total United Africa Oceania, Canada Middle North Sea Northern South South, Southeast

States

Australia,

East and North and America, Central, Asia

and New

Atlantic Central Caribbean, and

Zealand

Asia

and Eastern

Mexico Europe

Average Base (USD)

Average Other Compensation (USD)

Copyright ? 2019 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 |

2019 SPE Membership Salary Survey 4

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