What is the average offshore oil rig worker salary? – Let’s find out!
One of the most frequent questions asked within the oil and gas industry is the earning potential of those working within it. During the boom times of the oil and gas industry in the North Sea Continental Shelf and within the Gulf of Mexico, salaries within the industry were extremely high for oil rig workers as it was literally a license to print money for operators. These high offshore salaries were representative of the harsh environment they worked in, the conditions, and long shifts. The high salaries would have been in parallel to the global state of the oil and gas market, which is notorious for its peaks and troughs due to demand and production. It is said that oil demand is still to peak on a global scale before 2030, despite the emergence of the energy transition and the focus switching to renewable energy sources and less reliance on fossil fuels.
Production remains high, despite less manpower
Since 2014, employment in the oil and gas sector has been declining, even as production has increased. By 2023, employment in the US had dropped to about 380,000 workers, down from 600,000, despite producing 45% more gas and 47% more oil than in 2014 [1]. In the UK, this number is naturally smaller, with figures indicating around the 100,000 – 130,000 mark, which includes direct and indirect jobs. This decline in employment is largely due to the industry's push for productivity gains, automation, and increased efficiency (doing more with less).
Despite this, oil and gas work remains an attractive career opportunity for those will relatively little or no experience, especially in an industry that has an aging and retiring workforce. One of the attractions is the salary. So, what is the average oil rig worker salary? This is a difficult question to answer as it depends on so many different parameters. One key factor is that the workforce on an oil rig is made up of a variety of roles, from catering and cleaning, to working at the well head to managing the entire oil field. Certain oil rig workers can earn substantial salaries, with compensation varying based on experience, role, and location. So, without giving a definitive answer, this article shall provide guidelines of what can be expected within certain tiers of working on an offshore oil rig.
Salary Depends on Level
The average salary for oil rig workers in the U.S., as of September 2024, is approximately $26.57 per hour [2]. In the UK, it seems the average annual oil rig workers salary is between £30,000 and £35,000. While this doesn’t sound high for the oil and gas industry, renowned for its high wages, it is still taking the average across everyone. However, annual earnings can range significantly depending on the specific position and level of expertise.
Entry-Level Positions
Entry-level oil rig workers, such as roughnecks, derrickhands, or roustabouts, typically start as low as £20,000 when they first start. But this can quickly rise once they have gained experience and become mid-level. These roles involve manual labour tasks like cleaning and maintaining equipment, handling pipes, and assisting with drilling operations.
Mid-Level Positions
As workers gain experience, their earning potential increases dramatically. For instance, drillers or derrick operators can earn up to £60,000 annually; subsea engineers can earn £70,000 as an estimate; and a completion engineer can earn up to £100,000.
Senior Positions
As we move up the ladder in terms of experience and titles, the highly experienced professionals in senior roles command the highest salaries. Senior Engineering Managers can earn an average of £110,000; an Operations Manager can earn on average £135,000; a Technology Manager or a Senior Vice President has the potential for £150,000. Specialised roles like drilling supervisors and consultants, and geologists, all have the potential to earn substantial six figure salaries. Senior Executive roles can go much higher, with strong six figure salaries or more, not including share options and bonuses [4].
These roles require a combination of expertise in their respective fields, leadership skills, and often a significant amount of experience or specialised education. The salaries reflect the complexity and importance of these positions within the oil and gas industry.
Typical Roles on an Oil Rig
Oil rigs employ a variety of specialised workers, each with their own responsibilities. Below is a partial list of typical roles found on an oil rig from a production perspective:
Entry-level workers responsible for general maintenance and cleaning.
Roughnecks: Handle drilling equipment and assist with drilling operations.
Derrick Operators: Work on the rig floor, handling drill pipes.
Drillers: Operate drilling machinery and oversee rig operations.
Drilling Engineers: Plan and manage drilling operations.
Subsea Engineers: Handle technical aspects of underwater drilling equipment.
HSE Managers: Oversee health, safety, and environmental compliance.
Welding Engineers: Responsible for welding and metal work on the rig.
A/QC Inspectors: Ensure quality control and safety standards are met.
Salaries abroad
There are cases when working offshore abroad or further afield can lead to increased salaries due to the tighter work pool available in remote locations, accommodation, higher risks, standards of living, and much more. Some of the countries which are rich in oil production but still require outside talent are:
Qatar
Dubai
Canada
Malaysia
Australia
Factors Affecting Salary
As mentioned at the start, there are many mitigating circumstances that affect salaries, just as there are in any industry. Several key factors that can influence an oil rig worker's salary are:
Experience: More experienced workers generally earn higher salaries. The more experience you have in a particular field or niche, means the knowledge and wealth of experience you bring to the table will be much sought after.
Location: Offshore roles typically pay more than onshore positions due to the challenging work environment than onshore, tough shift patterns and conditions, and the logistics which prevent frequent time onshore.
Overtime: Many rig workers have the opportunity to earn significant overtime pay, substantially increasing their salary.
Hazard pay: Some positions may offer additional compensation for dangerous work conditions.
Summary
In conclusion, an offshore oil rig worker salary can be interpreted as a lucrative career choice for those willing to work in challenging conditions and adopt the contracting lifestyle. Once established in the industry, there are many possibilities to significantly increase your earnings further, depending on training, education, and experience.
Orion Group
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