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MERCER CHANGING ENERGY INDUSTRY DYNAMICS SURVEYAPRIL 2015
CONTENTS
1. Overview .............................................................................................................................. 3
2. Participant Profile ................................................................................................................. 4
3. Participant List ...................................................................................................................... 5
4. Survey Results ...................................................................................................................... 7
5. US Survey Results ................................................................................................................. 8
6. North Dakota Survey Results .............................................................................................. 11
7. Canada Survey Results ........................................................................................................ 14
8. Mexico Survey Results ........................................................................................................ 17
9. US Salary Increase Budget .................................................................................................. 20
10. North Dakota Salary Increase Budget ................................................................................. 24
11. Canada Salary Increase Budget ........................................................................................... 28
12. Mexico Salary Increase Budget ........................................................................................... 32
2015 Mercer LLC. All rights reserved. 3
1. OVERVIEW
About the surveyMercer is pleased to present the results of the Mercer Changing Energy Industry Dynamics Survey. The survey was conducted between March 10, 2015, and April 3, 2015.
The primary purpose of this survey is to collect and consolidate meaningful data related to the actions and reactions by energy companies in North America prompted by the recent changes in oil prices. A total of 128 organizations submitted data for the survey. The detailed participant list is included in Section 3.
ConfidentialityTo ensure the confidentiality of all data, a minimum number of five observations is required in order forstatistics to be displayed. Five organizations must report at least five observations for a variable in orderfor the mean and median to be displayed. Seven organizations reporting at least seven observations arerequired to display 25th and 75th Percentiles. Where there has been insufficient data for analysis, thishas been indicated with “--“.
If you have questionsMercer would like to thank each of the participating companies for their efforts and cooperation in completing this survey. We trust the survey results will be helpful in your company’s compensation planning. If you have any questions regarding the survey, please contact either member of the survey team:
In Canada:Carolyn KildareEmail: carolyn.kildare@mercer.comPhone: 403-476-3341
In the US:Tahra TaylorEmail: tahra.taylor@mercer.comPhone: 713-276-2312
2015 Mercer LLC. All rights reserved. 4
2. PARTICIPANT PROFILE 2. Participant Profile
Percentage oforganizations
Canada 68.0%
United States 63.3%
Mexico 17.2%
N 128
Percentage oforganizations
Yes 41.3%
No 58.8%
N 80
Percentage oforganizations
Exploration & Production 45.3%Services & Equipment 14.8%Drilling 10.2%Engineering, Procurement & Construction 7.0%Pipeline/Midstream 6.3%Downstream (Refining, Petrochemical Manufacturing) 3.9%Fully Integrated 3.1%Utilities 3.1%Upgrading 1.6%Public Sector (Regulatory Agencies, Government) 0.8%Other 3.9%N 128
Number of total employees Percentage oforganizations
Less than 100 16.5%
100 to 500 26.0%
501 to 1,000 16.5%
1,001 to 5,000 22.0%
Greater than 5,000 18.9%
N 127
Geography of operations
Multiple responses allowed.
Type of operations
Number of total employees in Canada, the US and Mexico
Does your company have operations in North Dakota?
MERCER 2
2015 Mercer LLC. All rights reserved. 5
3. PARTICIPANT LIST
ABSA
AECOM
Alberta Electric System Operator
Akastor
Anderson Energy, Inc.
Aramco Services Company
ARC Resources, Ltd.
ATCO Pipelines
Atlas Energy Group, LLC
Aux Sable Liquid Products, LP
Baker Hughes, Inc.
Bankers Petroleum, Ltd.
Bellatrix Exploration, Ltd.
BHP Billiton Petroleum
Bill Barrett Corporation
Black Swan Energy, Ltd.
Bonavista Energy
BP Canada
Breitburn Energy Partners, LP
Bristow Group
Calfrac Well Services
Cameron
Canadian Natural Resources Limited
CAPP
CB&I
Centrica Energy Canada
Ceona Services
C-FER Technologies
CH2M
Cimarex Energy Co.
Compass Well Services
ConocoPhillips
Continental Resources, Inc.
Crescent Point Energy
Discovery Natural Resources
Enbridge Employee Services, Inc.
Encana Services Company, Ltd.
Enerplus Corporation
Ensco
EP Energy
EPCOR
Explorer Pipeline
Expro
Exterran Holdings, Inc.
Fluor Canada, Ltd.
Freeport-McMoRan, Inc.
FT Services
Gibson Energy
Gran Tierra Energy, Inc.
Great River Energy
Grizzly Oil Sands
Halcon Resources
Harvard Energy
Helix ESG
Hess Corporation
Hunt Oil Company
Husky Energy Canadian Operations
Husky Energy US
INPEX Corporation
Inter Pipeline, Ltd.
Journey Energy, Inc.
Kemper Valve & Fittings Corporation
Keyera Corporation
Kiewit Energy Canada
K+S Potash Canada
Lightstream Resources, Ltd.
Long Run Exploration, Ltd.
LyondellBasell
Maersk Drilling
Marathon Oil Corporation
Matrix Solutions, Inc.
McDermott International, Inc.
Murphy Oil Company, Ltd.
NAL Resources
NCS Multistage, LLC
Newfi eld Exploration Company
Northern Blizzard Resources, Inc.
North West Redwater Partnership
National Oilwell Varco, Inc.
NOVA Chemicals
Nuverra Environmental Solutions
Occidental Petroleum Corporation
Oceaneering International, Inc.
OMERS Energy, Inc.
Orion Drilling Company, LLC
OTS
2015 Mercer LLC. All rights reserved. 6
3. PARTICIPANT LIST (CONTINUED)
Paramount Resources, Ltd.
Parex Resources, Inc.
Payzone Directional Services
PrairieSky Royalty, Ltd.
Precision Drilling Corporation
PTTEP Canada, Ltd.
QEP Resources, Inc.
Qmax Solutions, Inc.
Range Resources
Rife Resources, Ltd.
RKI Exploration & Production, LLC
Rosetta Resources, Inc.
Rowan Companies, Inc.
Samson Energy Company, LLC
SandRidge Energy, Inc.
Sanjel Corporation
Sasol (USA) Corporation
Savanna Energy Services Corporation
Schlumberger
Seadrill
Serinus Energy, Inc.
SM Energy Company
Spectra Energy
Spyglass Resources Corporation
Sunshine Oilsands, Ltd.
Sirius Well Manufacturing Services
Syncrude Canada, Ltd.
Talisman Energy USA, Inc.
TAQA North, Ltd.
Technip
Tecpetrol
TGS
TMK IPSCO
Todd Energy Canada Limited
Toyo Engineering Corporation
TransCanada Corporation
Transocean, Ltd.
TriOil Resources, Ltd.
Twin Butte Energy, Ltd.
Vermilion Energy, Inc.
Weatherford
WPX Energy
2015 Mercer LLC. All rights reserved. 7
4. SURVEY RESULTS
MERCER 5
4. Survey Results
% of organizations
Less than $50 14.5%$51- $60 35.5%$61- $70 11.3%$71- $80 4.8%$81- $90 0.8%$91- $100 0.8%Greater than $101 0.0%Don't know 31.5%Other 0.8%N 124
Low Confidence
Moderate Confidence
High Confidence
Very High Confidence N
Prospects for your organization are strong 14.6% 44.7% 32.5% 8.1% 123
Prospects for the energy sector are strong 35.5% 52.1% 12.4% 0.0% 121
Global economic growth will continue to strengthen 23.8% 58.2% 18.0% 0.0% 122
The regulatory environment will facilitate growth 40.5% 53.7% 5.0% 0.8% 121
Your firm's talent strategy will enhance long-term organizational performance 14.8% 36.9% 36.9% 11.5% 122
Your firm’s talent strategy will deliver on current business objectives 9.0% 32.0% 44.3% 14.8% 122
▪ Low Confidence includes responses 1-3▪ Moderate Confidence includes responses 4-6▪ High Confidence includes responses 7-8▪ Very High Confidence includes responses 9-10
The percentage of participants with low, high or very high confidence
Expected 2015 USD price range of a WTI barrel of oil
Note: This question was asked as a 10 point scale with 1 indicating very low confidence and 10 indicating very high confidence. Responses have been grouped as follows:
2015 Mercer LLC. All rights reserved. 8
5. US SURVEY RESULTS5. US Survey Results
Percentage oforganizations
Reduction in capital expenditures 63.4%
Reduction in Selling, General & Administrative (SG&A)operating expenses 60.6%
Reduction in core (non SG&A) operating expenses 46.5%
Explore expansion opportunities (e.g. merger, acquisition, jointventure) 19.7%
Explore potential divestures of assets, business units, productsor geographies 16.9%
No change to strategy or operating plans 9.9%
Too early to tell 8.5%
Increase in capital expenditures 0.0%
Don't know 2.8%
Other 4.2%
N 71
Given the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s business strategy for 2015?
Multiple responses allowed.
Other includes: "Reallocation of capital to economically feasible exploration", "Reduction in G&A expense."
MERCER 6
Other includes: “Reallocation of capital to economically feasible exploration”, “Reduction in G&A expense.”
2015 Mercer LLC. All rights reserved. 9
5. US SURVEY RESULTS (CONTINUED)
Percentage oforganizations
Reducing external recruitment 59.2%
Downsizing or layoffs of permanent employees 57.7%
Reduction in or layoffs of contract employees 45.1%
Reorganization / restructuring of our organization 45.1%
Broad (across the entire workforce) salary freezes 35.2%
Focusing on internal training and skill-building for currentemployees 29.6%
Targeted strategic recruitment for specific skills/roles 21.1%
Considering how to enhance cost effectiveness of HR delivery 21.1%
Reductions or changes in variable compensation programs 19.7%
Targeted (focused on certain segments of the workforce) salaryfreezes 14.1%
Reductions or changes in long-term incentive compensationprograms 12.7%
No changes to existing human capital strategy/programs havebeen implemented yet 8.5%
Freezing, changing or eliminating one or more retirementbenefit programs 7.0%
Review of or reduction in guaranteed cash payments (e.g.allowances, premiums) 7.0%
Broad (across the entire workforce) reductions in basecompensation 5.6%
Targeted (focused on certain segments of the workforce)reductions in base compensation 4.2%
Changing, reducing or eliminating one or more health & welfarebenefit programs 2.8%
Moving to a healthcare exchange for active US employees 0.0%
Don't know 4.2%
Other 9.9%
N 71
Other includes: "Considering broad and/or targeted salary freezes", "Considering delay in annual salary adjustments","Replace expats with local staff", "RFP for new insurance broker", "Reduction in overtime in some field positions","Delayed decision for 2015 annual increase until mid-year", "Cost cutting measures such as conferences, lunch, travel,printing, etc."
Multiple responses allowed.
5. US Survey Results ContinuedGiven the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s human capital strategy/programs for 2015?
MERCER 7
Other includes: “Considering broad and/or targeted salary freezes”, “Considering delay in annual salary adjustments”, “Replace expats with local staff”, “RFP for new insurance broker”, “Reduction in overtime in some field positions”, “Delayed decision for 2015 annual increase until mid-year”, “Cost cutting measures such as conferences, lunch, travel, printing, etc.”
2015 Mercer LLC. All rights reserved. 10
5. US SURVEY RESULTS (CONTINUED)
Median Average NTotal number of contract employees affected 43 115 22
Percentage of total workforce affected 10.0% 11.0% 34
Percentage oforganizations
Restructuring and optimizing the organization 49.3%
Building internal capability and career development 38.0%
Enhancing supervisory, management and leadershipcapabilities 38.0%
Understanding and optimizing employee engagement 31.0%
Reshaping HR service delivery 29.6%
Developing strategic workforce plans leveraging analytics 15.5%
Assessing and reshaping your employer value proposition 14.1%
Developing a renewed total rewards program 11.3%
Retaining seasoned employees nearing retirement 11.3%
Up-skilling existing talent with targeted talent acquisitions 5.6%
Seeking delegated retirement solutions to de-risk theretirement portfolio of programs 0.0%
Don't know 14.1%
N 71
5. US Survey Results ContinuedReduction in or layoffs of employees in United States
Given the changing business context, from an HR leadership and governance perspective,where do you intend to focus your strategy for 2016 and beyond?
Multiple responses allowed.
MERCER 8
2015 Mercer LLC. All rights reserved. 11
6. NORTH DAKOTA SURVEY RESULTS6. North Dakota Survey Results
Percentage oforganizations
Reduction in capital expenditures 62.1%
Reduction in Selling, General & Administrative (SG&A)operating expenses 58.6%
Reduction in core (non SG&A) operating expenses 48.3%
Explore expansion opportunities (e.g. merger, acquisition, jointventure) 17.2%
Too early to tell 13.8%
No change to strategy or operating plans 13.8%
Increase in capital expenditures 0.0%
Explore potential divestures of assets, business units, productsor geographies 0.0%
Don't know 0.0%
Other 0.0%
N 29
Multiple responses allowed.
Given the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s business strategy for 2015?
MERCER 9
2015 Mercer LLC. All rights reserved. 12
6. NORTH DAKOTA SURVEY RESULTS (CONTINUED)
Percentage oforganizations
Reducing external recruitment 62.1%
Reduction in or layoffs of contract employees 37.9%
Considering how to enhance cost effectiveness of HR delivery 31.0%
Focusing on internal training and skill-building for currentemployees 27.6%
Targeted strategic recruitment for specific skills/roles 27.6%
Reductions or changes in variable compensation programs 24.1%
Targeted (focused on certain segments of the workforce) salaryfreezes 24.1%
Downsizing or layoffs of permanent employees 24.1%
Reorganization / restructuring of our organization 24.1%
Broad (across the entire workforce) salary freezes 20.7%
Review of or reduction in guaranteed cash payments (e.g.allowances, premiums) 17.2%
No changes to existing human capital strategy/programs havebeen implemented yet 13.8%
Freezing, changing or eliminating one or more retirementbenefit programs 13.8%
Broad (across the entire workforce) reductions in basecompensation 6.9%
Targeted (focused on certain segments of the workforce)reductions in base compensation 6.9%
Reductions or changes in long-term incentive compensationprograms 3.4%
Changing, reducing or eliminating one or more health & welfarebenefit programs 0.0%
Moving to a healthcare exchange for active US employees 0.0%
Don't know 3.4%
Other 6.9%
N 29
Multiple responses allowed.
Given the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s human capital strategy/programs for 2015?
6. North Dakota Survey Results Continued
Other includes: "Review of insurance broker for cost savings", "Cost cutting measures such as travel, conferences,lunch, printing, etc."
MERCER 10
Other includes: “Review of insurance broker for cost savings”, “Cost cutting measures such as travel, conferences, lunch, printing, etc.”
2015 Mercer LLC. All rights reserved. 13
6. NORTH DAKOTA SURVEY RESULTS (CONTINUED)
Median Average NTotal number of contract employees affected 75 63 6
Percentage of total workforce affected -- -- 4
Percentage oforganizations
Building internal capability and career development 37.9%
Restructuring and optimizing the organization 34.5%
Enhancing supervisory, management and leadershipcapabilities 31.0%
Understanding and optimizing employee engagement 27.6%
Assessing and reshaping your employer value proposition 13.8%
Reshaping HR service delivery 13.8%
Developing strategic workforce plans leveraging analytics 10.3%
Retaining seasoned employees nearing retirement 6.9%
Developing a renewed total rewards program 3.4%
Seeking delegated retirement solutions to de-risk theretirement portfolio of programs 0.0%
Up-skilling existing talent with targeted talent acquisitions 0.0%
Don't know 34.5%
N 29
Multiple responses allowed.
6. North Dakota Survey Results ContinuedReduction in or layoffs of employees in North Dakota
Given the changing business context, from an HR leadership and governance perspective,where do you intend to focus your strategy for 2016 and beyond?
MERCER 11
2015 Mercer LLC. All rights reserved. 14
7. CANADA SURVEY RESULTS7. Canada Survey Results
Percentage oforganizations
Reduction in capital expenditures 58.2%
Reduction in Selling, General & Administrative (SG&A)operating expenses 51.9%
Reduction in core (non SG&A) operating expenses 34.2%
No change to strategy or operating plans 20.3%
Explore expansion opportunities (e.g. merger, acquisition, jointventure) 10.1%
Explore potential divestures of assets, business units, productsor geographies 10.1%
Too early to tell 8.9%
Increase in capital expenditures 0.0%
Don't know 3.8%
Other 5.1%
N 79
Given the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s business strategy for 2015?
Multiple responses allowed.
Other includes: "Create contingency ideas/plans to keep the company viable", "Dividend eliminated", "Delay someprojects."
MERCER 12
Other includes: “Create contingency ideas/plans to keep the company viable”, “Dividend eliminated”, “Delay some projects.”
2015 Mercer LLC. All rights reserved. 15
7. CANADA SURVEY RESULTS (CONTINUED)
Percentage oforganizations
Reducing external recruitment 43.0%
Broad (across the entire workforce) salary freezes 36.7%
Downsizing or layoffs of permanent employees 35.4%
Focusing on internal training and skill-building for currentemployees 29.1%
Reduction in or layoffs of contract employees 29.1%
Reductions or changes in variable compensation programs 21.5%
No changes to existing human capital strategy/programs havebeen implemented yet 19.0%
Considering how to enhance cost effectiveness of HR delivery 19.0%
Targeted strategic recruitment for specific skills/roles 17.7%
Reorganization / restructuring of our organization 16.5%
Reductions or changes in long-term incentive compensationprograms 13.9%
Targeted (focused on certain segments of the workforce) salaryfreezes 13.9%
Review of or reduction in guaranteed cash payments (e.g.allowances, premiums) 8.9%
Broad (across the entire workforce) reductions in basecompensation 6.3%
Targeted (focused on certain segments of the workforce)reductions in base compensation 5.1%
Freezing, changing or eliminating one or more retirementbenefit programs 3.8%
Changing, reducing or eliminating one or more health & welfarebenefit programs 1.3%
Don't know 6.3%
Other 8.9%
N 79
Multiple responses allowed.
7. Canada Survey Results ContinuedGiven the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s human capital strategy/programs for 2015?
Other includes: "Global Salary Freeze", "Executives took a reduction of base pay", "Contractors asked to revisit andpossibly lower their fees", "Contracts not renewed if not essential", "Reduction in non-guaranteed cash payment (forextended periods of international business travel)", "Contemplating other creative cost savings like furlough, etc.", "Costcutting measures such as travel, conferences, printing, lunches, etc."
MERCER 13
Other includes: “Global Salary Freeze”, “Executives took a reduction of base pay”, “Contractors asked to revisit and possibly lower their fees”, “Contracts not renewed if not essential”, “Reduction in non-guaranteed cash payment (for extended periods of international business travel)”, “Contemplating other creative cost savings like furlough, etc.”, “Cost cutting measures such as travel, conferences, printing, lunches, etc.”
2015 Mercer LLC. All rights reserved. 16
7. CANADA SURVEY RESULTS (CONTINUED)
Median Average NTotal number of contract employees affected 19 39 16
Percentage of total workforce affected 10.0% 13.6% 24
Percentage oforganizations
Building internal capability and career development 44.3%
Enhancing supervisory, management and leadershipcapabilities 39.2%
Understanding and optimizing employee engagement 38.0%
Restructuring and optimizing the organization 25.3%
Reshaping HR service delivery 24.1%
Developing strategic workforce plans leveraging analytics 20.3%
Assessing and reshaping your employer value proposition 16.5%
Developing a renewed total rewards program 11.4%
Retaining seasoned employees nearing retirement 10.1%
Up-skilling existing talent with targeted talent acquisitions 6.3%
Seeking delegated retirement solutions to de-risk theretirement portfolio of programs 0.0%
Don't know 17.7%
N 79
7. Canada Survey Results ContinuedReduction in or layoffs of employees in Canada
Given the changing business context, from an HR leadership and governance perspective,where do you intend to focus your strategy for 2016 and beyond?
Multiple responses allowed.
MERCER 14
2015 Mercer LLC. All rights reserved. 17
8. MEXICO SURVEY RESULTS8. Mexico Survey Results
Percentage oforganizations
Reduction in Selling, General & Administrative (SG&A)operating expenses 38.1%
No change to strategy or operating plans 33.3%
Reduction in capital expenditures 33.3%
Reduction in core (non SG&A) operating expenses 28.6%
Too early to tell 14.3%
Explore potential divestures of assets, business units, productsor geographies 9.5%
Increase in capital expenditures 0.0%
Explore expansion opportunities (e.g. merger, acquisition, jointventure) 0.0%
Don't know 9.5%
Other 0.0%
N 21
Given the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s business strategy for 2015?
Multiple responses allowed.
MERCER 15
2015 Mercer LLC. All rights reserved. 18
8. MEXICO SURVEY RESULTS (CONTINUED)
Percentage oforganizations
Downsizing or layoffs of permanent employees 28.6%
No changes to existing human capital strategy/programs havebeen implemented yet 23.8%
Reducing external recruitment 23.8%
Reorganization / restructuring of our organization 23.8%
Broad (across the entire workforce) salary freezes 14.3%
Reductions or changes in variable compensation programs 14.3%
Review of or reduction in guaranteed cash payments (e.g.allowances, premiums) 14.3%
Reduction in or layoffs of contract employees 14.3%
Focusing on internal training and skill-building for currentemployees 9.5%
Reductions or changes in long-term incentive compensationprograms 9.5%
Targeted (focused on certain segments of the workforce) salaryfreezes 9.5%
Considering how to enhance cost effectiveness of HR delivery 9.5%
Targeted strategic recruitment for specific skills/roles 4.8%
Targeted (focused on certain segments of the workforce)reductions in base compensation 4.8%
Freezing, changing or eliminating one or more retirementbenefit programs 0.0%
Changing, reducing or eliminating one or more health & welfarebenefit programs 0.0%
Broad (across the entire workforce) reductions in basecompensation 0.0%
Don't know 19.0%
Other 4.8%
N 21
8. Mexico Survey Results ContinuedGiven the expectations of the USD price range of a WTI barrel, what impact has this had onyour company’s human capital strategy/programs for 2015?
Multiple responses allowed.
Other includes: "Cost cutting measures such as travel, conferences, printing, lunches, etc."
MERCER 16
Other includes: “Cost cutting measures such as travel, conferences, printing, lunches, etc.”
2015 Mercer LLC. All rights reserved. 19
8. MEXICO SURVEY RESULTS (CONTINUED)
Median Average NTotal number of contract employees affected -- -- 0
Percentage of total workforce affected -- -- 2
Percentage oforganizations
Enhancing supervisory, management and leadershipcapabilities 23.8%
Understanding and optimizing employee engagement 19.0%
Building internal capability and career development 19.0%
Retaining seasoned employees nearing retirement 14.3%
Restructuring and optimizing the organization 14.3%
Reshaping HR service delivery 9.5%
Developing strategic workforce plans leveraging analytics 9.5%
Assessing and reshaping your employer value proposition 4.8%
Developing a renewed total rewards program 0.0%
Seeking delegated retirement solutions to de-risk theretirement portfolio of programs 0.0%
Up-skilling existing talent with targeted talent acquisitions 0.0%
Don't know 47.6%
N 21
8. Mexico Survey Results ContinuedReduction in or layoffs of employees in Mexico
Given the changing business context, from an HR leadership and governance perspective,where do you intend to focus your strategy for 2016 and beyond?
Multiple responses allowed.
MERCER 17
2015 Mercer LLC. All rights reserved. 20
9. US SALARY INCREASE BUDGET
Total Employees
9. US Salary Increase Budget
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 1.2 1.5 3.0 63
E&P and Fully Integrated 0.8 2.0 2.2 4.0 22
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling 0.0 0.0 0.4 0.6 10
Pipeline/Midstream -- 3.0 2.7 -- 6
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.0 3.0 2.8 3.5 35
E&P and Fully Integrated 2.0 3.0 2.9 4.0 17Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 3Pipeline/Midstream -- 3.0 3.2 -- 5Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 28 44.4%
E&P and Fully Integrated 5 22.7%
Services & Equipment 13 92.9%
Drilling 7 70.0%
Pipeline/Midstream 1 16.7%
Utilities 0 0.0%
Total Employees
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (excluding zeros)
Total salary increase budget freeze
MERCER 18
2015 Mercer LLC. All rights reserved. 21
9. US SALARY INCREASE BUDGET (CONTINUED)
Office Employees
9. US Salary Increase Budget Continued
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 1.2 1.5 3.0 61
E&P and Fully Integrated 0.8 2.0 2.2 4.0 22
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling 0.0 0.0 0.5 0.5 10
Pipeline/Midstream -- 3.0 2.7 -- 6
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.0 3.0 2.9 3.4 32
E&P and Fully Integrated 2.0 3.0 2.9 4.0 17Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 2Pipeline/Midstream -- 3.0 3.3 -- 5Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 29 47.5%
E&P and Fully Integrated 5 22.7%
Services & Equipment 13 92.9%
Drilling 8 80.0%
Pipeline/Midstream 1 16.7%
Utilities 0 0.0%
Office Employees
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (excluding zeros)
Total salary increase budget freeze
MERCER 19
2015 Mercer LLC. All rights reserved. 22
9. US SALARY INCREASE BUDGET (CONTINUED)
Field Employees
9. US Salary Increase Budget Continued
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 1.1 1.5 3.0 60
E&P and Fully Integrated 0.8 3.0 2.3 4.0 22
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling 0.0 0.0 0.3 0.0 10
Pipeline/Midstream -- 3.0 2.7 -- 6
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.0 3.0 2.9 3.5 31E&P and Fully Integrated 2.0 3.0 3.0 4.0 17Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 1Pipeline/Midstream -- 3.0 3.2 -- 5Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 29 48.3%
E&P and Fully Integrated 5 22.7%
Services & Equipment 13 92.9%
Drilling 9 90.0%
Pipeline/Midstream 1 16.7%
Utilities 0 0.0%
Total salary increase budget freeze
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (excluding zeros)
Field Employees
MERCER 20
2015 Mercer LLC. All rights reserved. 23
9. US SALARY INCREASE BUDGET (CONTINUED)9. US Salary Increase Budget
% oforganizations
Yes 68.1%No 31.9%N 69
% oforganizations
Higher than original projections 2.1%
Lower than original projections 97.9%
N 47
Have your projections regarding salary increase budgets for United States changedsince the price of oil began to decline?
How the projections changed
MERCER 21
2015 Mercer LLC. All rights reserved. 24
10. NORTH DAKOTA SALARY INCREASE BUDGET
Total Employees
10. North Dakota Salary Increase Budget
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.2 3.0 25
E&P and Fully Integrated 2.9 3.0 2.9 4.0 7
Services & Equipment 0.0 0.0 0.0 0.0 11
Drilling -- -- -- -- 1
Pipeline/Midstream -- -- -- -- 3
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.5 3.0 2.8 3.2 11
E&P and Fully Integrated 2.9 3.0 2.9 4.0 7Services & Equipment -- -- -- -- 0Drilling -- -- -- -- 0Pipeline/Midstream -- -- -- -- 2Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 14 56.0%
E&P and Fully Integrated 0 0.0%
Services & Equipment 11 100.0%
Drilling 1 100.0%
Pipeline/Midstream 1 33.3%
Utilities 0 0.0%
Total Employees
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (excluding zeros)
Total salary increase budget freeze
MERCER 22
2015 Mercer LLC. All rights reserved. 25
10. NORTH DAKOTA SALARY INCREASE BUDGET (CONTINUED)
Office Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.2 3.0 25
E&P and Fully Integrated 2.9 3.0 2.9 3.8 7
Services & Equipment 0.0 0.0 0.0 0.0 11
Drilling -- -- -- -- 1
Pipeline/Midstream -- -- -- -- 3
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.5 3.0 2.8 3.2 11
E&P and Fully Integrated 2.9 3.0 2.9 3.8 7Services & Equipment -- -- -- -- 0Drilling -- -- -- -- 0Pipeline/Midstream -- -- -- -- 2Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 14 56.0%
E&P and Fully Integrated 0 0.0%
Services & Equipment 11 100.0%
Drilling 1 100.0%
Pipeline/Midstream 1 33.3%
Utilities 0 0.0%
Office Employees
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (including zeros)
10. North Dakota Salary Increase BudgetContinued
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (excluding zeros)
Total salary increase budget freeze
MERCER 23
2015 Mercer LLC. All rights reserved. 26
10. NORTH DAKOTA SALARY INCREASE BUDGET (CONTINUED)
Field Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.3 3.0 26
E&P and Fully Integrated 2.9 3.0 2.9 3.3 8
Services & Equipment 0.0 0.0 0.0 0.0 11
Drilling -- -- -- -- 1
Pipeline/Midstream -- -- -- -- 3
Utilities -- -- -- -- 1
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.9 3.0 3.0 3.0 11E&P and Fully Integrated 3.0 3.0 3.3 3.4 7Services & Equipment -- -- -- -- 0Drilling -- -- -- -- 0Pipeline/Midstream -- -- -- -- 2Utilities -- -- -- -- 1
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 15 57.7%
E&P and Fully Integrated 1 12.5%
Services & Equipment 11 100.0%
Drilling 1 100.0%
Pipeline/Midstream 1 33.3%
Utilities 0 0.0%
Total salary increase budget freeze
10. North Dakota Salary Increase BudgetContinuedField Employees
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (excluding zeros)
MERCER 24
2015 Mercer LLC. All rights reserved. 27
10. NORTH DAKOTA SALARY INCREASE BUDGET (CONTINUED)10. North Dakota Salary Increase Budget
% oforganizations
Yes 82.8%No 17.2%N 29
% oforganizations
Higher than original projections 4.2%
Lower than original projections 95.8%
N 24
Have your projections regarding salary increase budgets for North Dakota changedsince the price of oil began to decline?
How the projections changed
MERCER 25
2015 Mercer LLC. All rights reserved. 28
11. CANADA SALARY INCREASE BUDGET
Total Employees
11. Canada Salary Increase Budget
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 1.0 1.6 3.1 73
E&P and Fully Integrated 0.0 1.0 1.6 3.3 29
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling -- -- -- -- 4
Pipeline/Midstream -- 3.0 3.0 -- 6
Utilities 2.1 3.4 2.9 3.5 8
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.6 3.0 3.2 4.0 37
E&P and Fully Integrated 2.0 3.0 3.1 4.5 15Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 1Pipeline/Midstream -- 3.0 3.5 -- 5Utilities 3.0 3.5 3.3 3.5 7
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 36 49.3%
E&P and Fully Integrated 14 48.3%
Services & Equipment 13 92.9%
Drilling 3 75.0%
Pipeline/Midstream 1 16.7%
Utilities 1 12.5%
Total Employees
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (excluding zeros)
Total salary increase budget freeze
MERCER 26
2015 Mercer LLC. All rights reserved. 29
11. CANADA SALARY INCREASE BUDGET (CONTINUED)
Office Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.5 3.0 71
E&P and Fully Integrated 0.0 0.5 1.6 3.1 30
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling -- -- -- -- 4
Pipeline/Midstream -- 3.0 2.9 -- 6
Utilities 1.8 3.2 2.6 3.5 7
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.3 3.0 3.2 3.6 34
E&P and Fully Integrated 2.0 3.0 3.2 4.5 15Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 1Pipeline/Midstream -- 3.0 3.5 -- 5Utilities -- 3.4 3.1 -- 6
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 37 52.1%
E&P and Fully Integrated 15 50.0%
Services & Equipment 13 92.9%
Drilling 3 75.0%
Pipeline/Midstream 1 16.7%
Utilities 1 14.3%
Office Employees
11. Canada Salary Increase BudgetContinued
Total salary increase budget freeze
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (excluding zeros)
MERCER 27
2015 Mercer LLC. All rights reserved. 30
11. CANADA SALARY INCREASE BUDGET (CONTINUED)
Field Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.4 3.0 65
E&P and Fully Integrated 0.0 1.2 1.6 3.0 27
Services & Equipment 0.0 0.0 0.2 0.0 14
Drilling -- -- -- -- 4
Pipeline/Midstream -- 3.0 3.0 -- 6
Utilities -- -- -- -- 4
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 2.4 3.0 3.1 3.8 30E&P and Fully Integrated 2.0 3.0 2.9 3.9 15Services & Equipment -- -- -- -- 1Drilling -- -- -- -- 1Pipeline/Midstream -- 3.0 3.6 -- 5Utilities -- -- -- -- 2
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 35 53.8%
E&P and Fully Integrated 12 44.4%
Services & Equipment 13 92.9%
Drilling 3 75.0%
Pipeline/Midstream 1 16.7%
Utilities 2 50.0%
Field Employees
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (excluding zeros)
Total salary increase budget freeze
11. Canada Salary Increase BudgetContinued
MERCER 28
2015 Mercer LLC. All rights reserved. 31
11. CANADA SALARY INCREASE BUDGET (CONTINUED)11. Canada Salary Increase Budget
% oforganizations
Yes 73.4%No 26.6%N 79
% oforganizations
Higher than original projections 0.0%
Lower than original projections 100.0%
N 58
Have your projections regarding salary increase budgets for Canada changed since theprice of oil began to decline?
How the projections changed
MERCER 29
2015 Mercer LLC. All rights reserved. 32
12. MEXICO SALARY INCREASE BUDGET
Total Employees
12. Mexico Salary Increase Budget
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 1.0 1.8 4.0 19
E&P and Fully Integrated -- -- -- -- 1
Services & Equipment 0.0 0.0 0.8 1.5 9
Drilling -- -- -- -- 3
Pipeline/Midstream -- -- -- -- 1
Utilities -- -- -- -- 0
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 3.0 3.5 3.4 4.2 10
E&P and Fully Integrated -- -- -- -- 0Services & Equipment -- -- -- -- 2Drilling -- -- -- -- 2Pipeline/Midstream -- -- -- -- 1Utilities -- -- -- -- 0
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 9 47.4%
E&P and Fully Integrated 1 100.0%
Services & Equipment 7 77.8%
Drilling 1 33.3%
Pipeline/Midstream 0 0.0%
Utilities 0 0.0%
Total Employees
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for totalemployees (excluding zeros)
Total salary increase budget freeze
MERCER 30
2015 Mercer LLC. All rights reserved. 33
12. MEXICO SALARY INCREASE BUDGET (CONTINUED)
Office Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.6 3.3 18
E&P and Fully Integrated -- -- -- -- 1
Services & Equipment 0.0 0.0 0.8 1.5 9
Drilling -- -- -- -- 3
Pipeline/Midstream -- -- -- -- 1
Utilities -- -- -- -- 0
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 3.0 3.5 3.6 4.0 8
E&P and Fully Integrated -- -- -- -- 0Services & Equipment -- -- -- -- 2Drilling -- -- -- -- 1Pipeline/Midstream -- -- -- -- 1Utilities -- -- -- -- 0
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 10 55.6%
E&P and Fully Integrated 1 100.0%
Services & Equipment 7 77.8%
Drilling 2 66.7%
Pipeline/Midstream 0 0.0%
Utilities 0 0.0%
Total salary increase budget freeze
Office Employees
12. Mexico Salary Increase BudgetContinued
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (including zeros)
2015 salary increase budget, as a percentage of total base salary payroll, for officeemployees (excluding zeros)
MERCER 31
2015 Mercer LLC. All rights reserved. 34
12. MEXICO SALARY INCREASE BUDGET (CONTINUED)
Field Employees
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 0.0 0.0 1.6 3.3 18
E&P and Fully Integrated -- -- -- -- 1
Services & Equipment 0.0 0.0 0.9 1.5 9
Drilling -- -- -- -- 3
Pipeline/Midstream -- -- -- -- 1
Utilities -- -- -- -- 0
Based on all responses.
2015 salary increases budget 25thPercentile Median Average 75th
Percentile N
All Energy Industry Segments 3.0 3.5 3.7 4.5 8E&P and Fully Integrated -- -- -- -- 0Services & Equipment -- -- -- -- 2Drilling -- -- -- -- 1Pipeline/Midstream -- -- -- -- 1Utilities -- -- -- -- 0
Based on positive responses (excluding zeros).
2015 salary increases budget N % of Orgs
All Energy Industry Segments 10 55.6%
E&P and Fully Integrated 1 100.0%
Services & Equipment 7 77.8%
Drilling 2 66.7%
Pipeline/Midstream 0 0.0%
Utilities 0 0.0%
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (excluding zeros)
Total salary increase budget freeze
12. Mexico Salary Increase BudgetContinuedField Employees
2015 salary increase budget, as a percentage of total base salary payroll, for fieldemployees (including zeros)
MERCER 32
2015 Mercer LLC. All rights reserved. 35
12. MEXICO SALARY INCREASE BUDGET (CONTINUED)
MERCER 33
12. Mexico Salary Increase Budget
% of organizations
Yes 42.9%No 57.1%N 21
% of organizations
Higher than original projections 0.0%Lower than original projections 100.0%
N 9
Have your projections regarding salary increase budgets for Mexico changed since the price of oil began to decline?
How the projections changed
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