2016 Salary Survey Highlight Report

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2016 SPE Membership

Salary Survey
Highlight Report – November 2016

SPE Research
[email protected]
2016 SPE Membership Salary Survey Highlight Report
On 14 July 2016, Society of Petroleum Engineers (SPE) sent invitations to 84,599 professional members to participate in the annual SPE
Membership Salary Survey by completing an online survey. By the close of the survey on 13 August 2016, 4,763 members responded, of which
3,015 provided valid compensation data, resulting in a 5.6% response rate. This sample of completed responses produces a margin of error
of ± 1.38% at a 95% confidence level. Salary information and other data in the report are entirely self-reported.

Participants in the 2016 SPE Membership Salary Survey are based in 83 countries and 38 US states. More than three-fourths (79.1%) are citizens of
the countries in which they work. Their employers’ headquarters are based in 80 countries. Nearly half (49.4%) of the respondents are based in
countries outside of the United States. The percentage of female participants was 13.7% in 2016, which was similar to previous years (13.3% in
2015, 13.3% in 2014, 12.2% in 2013, and 11.3% in 2012).

Respondents were asked to provide their work status in 2016. The majority (95.9%) of respondents indicated that they are full-time, regular payroll
employees (consistent with 95.6% respondents reporting they were full-time employees in 2015). A small percentage (3.2%) of respondents are
contract, freelance, or part-time employees, which is an increase from 2.4% in 2015. Another 2.6% are self-employed or business owners, which is
also up from 1.7% reported self-employed or business owners in 2015.

Nearly one-fifth (19.5%) of participants in this year’s survey are primarily engaged in Reservoir Engineering (similar to the 2015 population with
20.2% Reservoir Engineering), while 14.2% reported a focus on Engineering – Other or Combination, and 11.4% are involved in Production
Engineering.

Nearly one-third (30.3%) of respondents work for an independent oil and gas company. More than one-fourth (27.6%) are employed by a service or
manufacturing company. Almost one-fifth (18.9%) are employed by an integrated oil and gas company, and close to one-tenth (7.9%) work for a
national oil and gas company. This is similar to the 2015 results (31.3% worked for an independent oil and gas company; 26.7% worked for a service
or manufacturing company; 20.6% worked for an integrated oil and gas company; 8.3% worked for a national oil and gas company).

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 1
General Findings
All compensation data presented in this Highlight Report is expressed in US dollars (USD). Data collected in local currencies has been converted to
US dollars using the exchange rate as of 15 August 2016, which is the effective date of this year’s data.

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

Petroleum industry professionals reported an average calculated total compensation of USD 185,001 in 2016, less than reported in previous years
(USD 206,020 in 2015; USD 214,328 in 2014; USD 203,557 in 2013).

Although 2016 reported compensation is less than in 2015, 35.9% of this year’s respondents indicated their base pay increased from 2015 to 2016.
However, this is a smaller figure than the previous two years’ percentage increases in base pay (58.5% saw an increase in 2015 and 82.2% saw an
increase in 2014 up from the previous year). Those who experienced a gain in base pay saw their pay increase by an average of 8.0% over the past
year (the same as in 2015). For respondents whose base pay decreased, the decline was by an average of 22.0% (18.4% in 2015).

Calculated mean base pay reported in 2016 declined (USD 143,006) from previous years (USD 153,492 in 2015; USD 156,439 in 2014; USD 153,620
in 2013). Other compensation (including bonuses) has been declining since 2013 (USD 64,000). In 2016, members reported an average of USD
41,995 in other compensation. Again, this was a decrease from previous years (USD 52,931 in 2015; USD 57,889 in 2014).

The number of professionals receiving a car allowance has also continued to decline. In 2016, the number of respondents who reported receiving a
car allowance was 24.6%. In previous years, this number has ranged from about one-fourth to one-third of respondents (26.3% in 2015; 28.4% in
2014; 31.0% in 2013).

The average age of energy and petroleum professionals reported in the survey is 43 years old, which is consistent with the previous five years.
However, this varied by gender; males’ average age of 44 is slightly higher than the overall average and higher than females’ average age of 38.

The level of experience professionals have in the industry remained consistent with previous years, with the average at 18 years. Likely as a result
of varied average age, experience also varied by gender with male professionals having more experience than females. The average years of
experience in 2016 is 18.9 years for males and 13.0 years for females. This is consistent for male professionals (18.9 years in 2015; 18.8 years in
2014), but up from previous years for female professionals (11.8 years in 2015; 11.1 years in 2014).

The number of professionals who reported an education level higher than a bachelor’s degree was 43.8% in 2016 and is comparable with the
previous two years (44.2% in 2015; 43.2% in 2014).

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 2
Figure 1

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


Oceania, South South,
North Sea Northern
United States Australia, Middle America, Central, and Southeast
Total Africa Canada and North and
of America and New East Caribbean, Eastern Asia
(n=3,015) (n=82) (n=198) Atlantic Central
(n=1,525) Zealand (n=159) and Mexico Europe (n=179)
(n=380) Asia (n=53)
(n=139) (n=222) (n=72)
Base Pay
Mean $143,006 $170,507 $107,829 $147,681 $120,290 $128,637 $130,093 $104,070 $87,993 $94,640 $86,807
Median $127,000 $152,256 $77,761 $123,598 $100,725 $108,903 $111,947 $60,000 $68,531 $61,556 $49,360
Other Compensation
Mean $41,995 $54,561 $42,691 $22,982 $41,999 $34,408 $29,046 $28,985 $20,341 $18,336 $24,489
Median $16,000 $25,000 $9,253 $11,515 $14,129 $13,421 $14,022 $2,911 $4,553 $4,194 $3,832
Total Compensation
Mean $185,001 $225,068 $150,520 $170,663 $162,289 $163,045 $159,138 $133,054 $108,333 $112,976 $111,296
Median $150,000 $186,000 $100,311 $142,022 $116,171 $136,945 $128,880 $64,791 $80,000 $67,943 $58,213
Average Base Pay % Increase 8.1% 5.4% 8.2% 5.1% 5.0% 5.4% 5.4% 6.1% 27.5% 6.7% 6.8%
% With Car Allowance 24.6% 19.3% 58.0% 12.2% 16.8% 43.0% 34.4% 26.4% 19.2% 23.6% 41.2%
Average Age 43 45 41 42 41 42 44 39 40 42 39
Average Years of Experience 18.1 19.6 15.2 16.8 16.7 16.9 18.4 15.5 14.9 15.3 14.8
% With Education Beyond
43.8% 33.8% 53.8% 48.9% 29.1% 56.7% 69.6% 71.2% 53.5% 84.7% 34.1%
Bachelor's Degree
% Citizens of Work Region 79.1% 88.1% 72.0% 73.4% 88.4% 24.5% 70.8% 73.6% 84.2% 66.7% 67.0%

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 3
Figure 2

Base Pay and Other Compensation by Work Region (USD)


$250,000

$200,000 $54,561

$42,034 $22,982
$150,000 $34,408 $29,046
$41,999
$42,691
$28,985
$170,507

$100,000 $20,341 $18,336 $24,489

$147,681
$143,071

$130,093
$128,637
$120,290
$107,829

$104,070

$94,640
$87,993

$86,807
$50,000

$0
Total United Africa Oceania, Canada Middle North Sea Northern South South, Southeast
States of Australia, East and North and America, Central, Asia
America and New Atlantic Central Caribbean, and
Zealand Asia and Eastern
Mexico Europe
Average Base (USD) Average Other Compensation (USD)

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 4
Figure 3

Job Categories and Total Compensation


The global mean for total compensation declined for every job category from 2015 to 2016. The most marked declines are from the top tier
professionals from the Africa; Oceania, Australia, and New Zealand; and South, Central, and Eastern Europe regions.

The professional and technician categories maintained the highest stability overall. For these two categories, nearly half of the regions were able to
maintain or increase their level of compensation from 2015. Those who saw a decrease in salary experienced less of a decline in their
compensation overall than the top tier of professionals.

Oceania, South
United North Sea Northern South,
Australia, Middle America, Southeast
Total Compensation by Job States of Africa Canada and North and Central, and Global
and New East Caribbean, Asia
Category and Work Region America (n=82) (n=198) Atlantic Central Eastern Mean
Zealand (n=159) and Mexico (n=179)
(n=1,525) (n=381) Asia (n=53) Europe (n=72)
(n=198) (n=222)
Executive/Top Management $395,952 $133,335 $259,219 $364,121 $240,838 $202,941 $451,877 $188,527 $183,241 $108,080 $334,072

Manager/Director $274,083 $249,516 $234,274 $180,396 $190,798 $202,065 $265,270 $190,075 $189,454 $185,174 $240,695

Supervisor/Superintendent/Lead $227,012 $167,563 $156,925 $137,514 $162,106 $163,867 $62,151 $120,477 $147,807 $128,689 $177,904

Professional/Individual Contributor $181,915 $94,258 $140,227 $132,763 $157,045 $142,957 $68,197 $77,927 $64,538 $69,705 $151,602

Technician/Specialist/Support Staff $130,050 $43,178 $107,908 $95,316 $108,493 $92,095 $69,431 $102,301 $32,747 $83,569 $103,513

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 5
Figure 4

Job Function and Work Region


Oceania, South South,
United North Sea Northern
Australia, Middle America, Central, and Southeast
States of Africa Canada and North and Global
Base Pay by Job Function and Work Region and New East Caribbean, Eastern Asia
America (n=82) (n=198) Atlantic Central Mean
Zealand (n=159) and Mexico Europe (n=179)
(n=1,525) (n=380) Asia (n=53)
(n=139) (n=222) (n=72)
College/University/Academic $114,962 $12,896 $83,294 $82,583 $132,890 $128,144 $80,000 $37,946 $38,712 $91,383
Computer or Information Technology $159,029 $65,253 $96,777 $78,410 $111,558 $18,770 $79,633 $50,328 $36,056 $118,248
Earth Science/Geology $189,671 $38,032 $141,946 $114,467 $112,614 $110,053 $116,107 $68,311 $67,972 $112,899 $125,109
Engineering – Chemical/Chemistry $162,046 $21,941 $121,260 $76,338 $108,731 $96,490 $108,408 $55,547 $44,400 $59,738 $116,078
Engineering – Civil/Construction/Facilities $155,437 $101,103 $97,041 $94,125 $96,159 $175,893 $19,588 $113,895 $35,212 $32,580 $127,373
Engineering – Completions $165,950 $142,132 $143,771 $106,530 $151,956 $126,848 $253,155 $92,294 $130,031 $85,813 $148,917
Engineering – Drilling $187,652 $113,812 $188,465 $108,357 $124,695 $199,678 $136,823 $82,540 $135,191 $99,799 $159,472
Engineering – Health/Safety/Environment $156,804 $87,092 $180,407 $122,326 $90,295 $119,843 $29,114 $72,254 $99,237 $57,210 $119,887
Engineering – Production $160,425 $90,667 $155,298 $163,076 $118,309 $124,902 $44,089 $83,957 $104,396 $95,821 $138,662
Engineering – Reservoir $181,559 $113,519 $129,989 $121,014 $160,736 $141,341 $83,647 $81,146 $67,326 $69,899 $147,701
Engineering – Other or Combination of Above $178,341 $127,013 $153,099 $126,064 $108,318 $138,815 $140,840 $116,509 $113,230 $112,451 $157,691
Finance or Administration $173,518 $93,658 $152,629 $189,606 $86,110 $128,160 $202,536 $131,725 $148,335
Geophysics/Petrophysics/Physics $160,952 $208,624 $144,315 $127,552 $129,343 $95,517 $91,728 $86,995 $104,294 $121,407 $134,835
Non-Engineering Technical $106,884 $112,690 $237,983 $93,874 $54,451 $92,424 $232,800 $81,643 $22,022 $103,152
Professional Training $132,778 $94,373 $142,474 $103,360 $121,421
Research $146,804 $80,607 $88,859 $66,672 $98,085 $76,976 $34,116 $40,062 $114,205
Sales or Marketing $143,380 $148,886 $119,432 $89,860 $117,915 $113,938 $87,729 $55,905 $150,613 $108,444 $127,707
Other or Combination of Above $195,717 $138,193 $206,655 $138,336 $146,052 $117,558 $165,000 $113,641 $104,055 $68,420 $167,238

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 6
Figure 5

The Impact of Gender – Experience Level and Compensation


Base pay and total compensation varies by gender, with male professionals earning more than their female counterparts.

Compensation by Gender and Experience


Female Male

Executive/ Supervisor/ Professional/ Technician/ Executive/ Supervisor/ Professional/ Technician/


Manager/ Manager/
Top Superintendent/ Individual Specialist/ Top Superintendent/ Individual Specialist/
Director Director
Management Lead Contributor Support Staff Management Lead Contributor Support Staff

Average Years
23 21 14 11 16 30 25 19 14 15
of Experience

Number of
13 47 75 248 30 201 557 490 1,171 137
Records

Average Base
$143,275 $147,289 $111,385 $107,158 $84,657 $226,358 $181,399 $143,119 $128,386 $88,294
Pay (USD)

Average Other
Compensation $43,831 $46,820 $25,916 $21,776 $18,644 $116,255 $62,817 $40,815 $28,873 $15,421
(USD)
Average Total
Compensation $187,106 $194,109 $137,302 $128,935 $103,301 $342,613 $244,216 $183,933 $157,259 $103,715
(USD)

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 7
Figure 6

The Impact of Gender – Base Pay Increase and Decrease


About half of professionals of both genders did not experience any change in their salary since 2015, which is a noticeable difference from the
34.6% of males and 34.3% of females who reported no change to their salary in the 2015 results.

The number of respondents reporting an increase in salary growth decreased for both males (35.0%) and females (41.4%), as compared to 58.4% of
males and 61.1% of females reporting salary increases in 2015.

However, the percentage of respondents reporting a decrease in salary more than doubled in 2016 for both males (14.4%) and females (9.7%) from
the 2015 figures of 7.0% for males and 4.6% for females reporting salary decreases.

Respondents' Change in Salary Since July 2015 by Gender


60%
50.7%
48.9%
50% Male
41.4% Female
40%
35.0%

30%

20%
14.4%
9.7%
10%

0%
Increase No change Decrease

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 8
Figure 7

Change in Base Pay by Region


Overall, 13.8% of respondents reported a decline in their base pay in 2016, and 35.9% of respondents reported an increase, a clear change from
2015 survey results (6.6% of respondents saw a decline; 58.5% of respondents saw an increase).

Although the percentages stayed consistent for decrease in base pay across the regions from 2015 to 2016, there were a few considerable
differences from 2015 for some of the regions for increase in base pay. The United States of America, Canada, and Middle East regions had fewer
respondents who saw an increase in their base pay in 2016, with the US down 28.4%, Canada down 27.6%, and the Middle East region down 25.8%
from last year.

Base Region Increase in Base Pay No Change in Base Pay Decrease in Base Pay
United States of America 32.2% 54.6% 13.2%
Africa 57.3% 31.7% 11.0%
Oceania, Australia, and New Zealand 37.4% 50.4% 12.2%
Canada 24.2% 52.0% 23.7%
Middle East 36.5% 45.9% 17.6%
North Sea and North Atlantic 37.4% 47.9% 14.7%
Northern and Central Asia 30.2% 50.9% 18.9%
South America, Caribbean, and Mexico 54.1% 36.5% 9.5%
South, Central, and Eastern Europe 27.8% 63.9% 8.3%
Southeast Asia 48.6% 42.5% 8.9%

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 9
Figure 8
Increase in average base pay by region remained consistent from 2015 to 2016. While all the other regions’ salary increases hovered around 5-8%
(4-9% in 2015), the South America, Caribbean, and Mexico region had a 27.5% average base pay increase (25.2% in 2015).

For the most part, decrease in average base pay by region remained consistent from 2015 to 2016 as well, with a few exceptions. Oceania,
Australia, and New Zealand dropped from -21.3% in 2015 to -31.9% in 2016. The North Sea and North Atlantic region (-18.7% in 2015) saw the
largest percentage decline in average base pay in 2016 to -30.3%.

The Northern and Central Asia region experienced an increase in their average base pay; their average decrease in base pay went from -21.9% in
2015 to -8.5% in 2016.

Average Base Pay Change by Base Region


40%
30%
20%
27.5%
10%
5.4% 8.2% 5.1% 5.0% 5.4% 5.4% 6.1% 6.7% 6.8%
0%
-8.5% -8.5%
-14.9% -14.0%
-10% -22.0% -19.8% -23.6% -23.8%
-31.9% -30.3%
-20%
-30%
-40%
United Africa Oceania, Canada Middle North Sea Northern South South, Southeast
States of Australia, East and North and America, Central, Asia
America and New Atlantic Central Caribbean, and
Zealand Asia and Eastern
Mexico Europe
Decrease Increase

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 10
How to Learn More

This report represents a sample of current compensation in the industry. A detailed summary report containing charts and descriptive statistics of
trends and more information on the jobs, geographies, and employer types will be available through the SPE Bookstore at www.spe.org/store in
early November 2016.

SPE will make the detailed PDF summary report available to download through the SPE Bookstore at a USD 50 member price and USD 125
nonmember price.

A file containing the raw data from the survey responses will be made available to download through the bookstore to provide the opportunity for
individual analysis and localization of data. Pricing for access to data for analysis will be USD 225 for SPE members and USD 425 for nonmembers,
also available in early November 2016. The data file comes bundled with the detailed summary report.

In addition to our annual reports, SPE publishes a historical summary of SPE Membership Salary Survey Highlights, updated each year, dating back
to the first survey in 1967. The SPE Membership Salary Survey became an annual study beginning in 1984, with previous editions having been
conducted in alternate years. The archive document includes the highlights through 2016. The archive PDF document will be available through the
SPE Bookstore at a price of USD 125 for SPE members and USD 325 for nonmembers.

Inquiries regarding purchase may be addressed through the SPE Bookstore website. Other questions regarding the survey can be addressed to
[email protected].

Thank you for your interest in this important project and your continued support of SPE.

The SPE Research Team

Copyright © 2016 | Society of Petroleum Engineers | 222 Palisades Creek Drive, Richardson, Texas 75080 USA | 1.800.456.6863 | www.spe.org 2016 SPE Membership Salary Survey 11

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