Society of Petroleum Engineers Richardson, Texas

2012 SPE Membership Salary Survey Highlight Report - September 2012

SPE Research speresearch@spe.org

SPE presents its annual salary survey for 2012 Invitations to participate in the Annual SPE Salary Survey were successfully sent to 59,332 professional members via email on 13 July 2012. This year 7,117 members provided valid responses resulting in a 12% response rate. This sample of completed responses produces a margin of error of 1.05% at a 95% confidence level. Salary information and other data in the reports are entirely self-reported, as we rely on members to provide information to help us understand more about the condition of the industry. This years participants are based in 102 different countries and represent citizenship in 103 countries. Their employers are based in 95 countries, and 40 U.S states. In 2012, almost six out of ten respondents 58% were based in countries outside of the United States. The representation of international members reflects the increasing international growth and presence of SPE.

General Findings All compensation data presented in this Highlight Report is expressed in US dollars. Data collected in local currencies has been converted to US dollars (USD) using the exchange rate as of 15 August 2012, which is the effective date of this years data. Compensation in the petroleum industry continues to follow the growth trend of recent years in 2012, with an overall increase in total compensation of 9.3%, or an average self-reported income of USD 223,472 in 2012 compared USD 204,368 in 2011. Mean base pay increased from USD 148,301 in 2011 to USD 166,753 in 2012, an increase of 12.4%. Bonus and extra income remained steady at over USD 56,000 from 2011 to 2012. The percentage of workers in the industry reporting base pay increases drove the overall increase in compensation, with almost three quarters of participants (73.4%) reporting that their pay increased over last year. . A third of respondents (33%) indicated that they received a car allowance in 2012. The Middle East and Africa had the highest percentage of employees who reported receiving a car allowance at almost 60%. The average age of energy and petroleum professionals reported in the survey leveled at 43 years, which was the 2010 average, after a slight increase in 2011 to 44 years. Experience decreased slightly at an average of 18 years in 2012 from 19 years in 2011, possibly reflecting a younger workforce. The education level of participants was higher in this years sample, with 43% indicating they have beyond a Bachelors Degree. Three out of four professionals (75.0%) indicated that they are a citizen of the country in which they work in 2012 and North Americans were again most likely to work in their home countries.

Figure 1
SUMMARY OF RESULTS BY WORK REGION (All compensation data is expressed in US dollars.)
Regional data includes only valid cases where respondent entered their base region. (n=Total valid cases) Base Pay Mean Median Other Compensation Mean Median Total Compensation Mean Median $223,472 $159,000 $260,335 $180,000 $151,404 $83,000 $229,809 $184,997 $238,133 $188,647 $207,156 $120,000 $256,527 $190,757 $114,943 $36,819 $127,106 $66,750 $244,632 $137,725 $129,667 $52,648 $56,719 $20,000 $65,238 $29,000 $34,854 $3,949 $66,061 $31,260 $62,103 $30,337 $48,956 $12,000 $65,628 $18,907 $29,719 $3,600 $35,252 $6,977 $62,854 $18,218 $33,666 $3,868 $166,753 $126,000 $195,097 $145,000 $116,550 $70,000 $163,748 $145,880 $176,030 $146,630 $158,200 $96,000 $190,899 $150,000 $85,224 $30,632 $91,853 $54,250 $181,779 $113,330 $96,001 $44,352 Oceania, Australia, New Zealand (n=343) North Sea & North Atlantic (n=997) Northern & Central Asia (n=181) S. America, Caribbean, & Mexico (n=409) South Central & Eastern Europe (n=157)

Total (n=7117)

USA (n=2989)

Africa (n=307)

Canada (n=514)

Middle East (n=383)

Southeast Asia (n=493)

Average Base Pay Increase

6.4%

6.2%

6.7%

8.2%

6.0%

7.3%

5.7%

5.3%

7.0%

5.8%

7.2%

% With Car Allowance

33.2%

24.2%

59.9%

24.6% .

22.6%

59.3%

41.3%

33.1%

35.9%

43.3%

44.7%

Average Age

43

46

39

41

42

41

43

39

41

43

38

Average Years of Experience % With Education Beyond Bachelors Degree

18

21

13

16

17

16

18

15

15

17

14

43.8%

32.2%

50.8%

41.1%

27.0%

45.7%

72.1%

71.3%

56.2%

76.4%

38.9%

% Citizens of Work Region

74.9%

87.8%

61.9%

69.4%

84.8%

28.2%

64.7%

61.9%

70.7%

59.9%

59.6%

Figure 2 Base Pay and Other Compensation by Work Region

Job Categories and Total Compensation

Compensation in the top categories in most regions showed a leveling trend while lower-level compensation showed increased representation of younger professionals. Reflected in this are gains in compensation among the lower-category professionals among the regions. Distribution and dispersion of compensation among the higher levels is reflected in overall lower median income, while the average total compensation among all professionals continues to increase. Top-level compensation in South America, Caribbean and Mexico, as well as Southeast Asia showed the strongest growth among regions from 2011 to 2012.

Figure 3

TOTAL COMPENSATION BY JOB CATEGORY AND WORK REGION United States North Sea/ Atlantic $230,996 $220,934 $184,609 $159,976 $179,412 Northern/ Central Asia $300,706 $116,554 $58,412 $91,783 $61,925 S. Am./Carib./ Mexico $116,107 $133,665 $73,085 $78,365 $110,542 South Cent./ East. Europe $278,193 $164,358 $189,549 $211,795 $117,119 Southeast Asia $183,123 $129,764 $85,894 $103,850 $57,642

Africa $156,214 $196,161 $91,417 $124,908 $85,557

Australia/NZ $152,175 $163,361 $169,599 $157,371 $140,089

Canada $196,955 $170,675 $176,737 $171,191 $172,697

Middle East $166,487 $181,571 $123,937 $179,779 $170,822

Executive/Top Management Manager/Director Supervisor Professional/Individual Contributor Technician/Specialist

$290,897 $202,441 $189,272 $198,208 $120,576

Figure 4
BASE PAY BY REGION OF COMPANY HEADQUARTERS AND JOB FUNCTION* United States of America $136,872 $141,193 $201,012 $247,352 $193,468 $197,739 $212,123 $173,938 $207,146 $194,481 $187,780 $155,301 $200,039 $212,122 $176,410 $142,202 $166,202 $191,940 Oceania, Australia & New Zealand $312,600 $94,822 $190,020 $139,833 $236,667 $162,340 $155,182 $121,200 $153,654 $164,089 $163,020 $197,755 $146,356 $153,158 $147,931 North Sea & N. Atlantic $269,985 $225,954 $170,435 $148,769 $135,828 $247,251 $159,947 $113,239 $207,379 $178,445 $189,298 $197,098 $215,089 $174,486 $239,995 $197,974 $177,282 $211,903 North & Central Asia $28,943 $10,616 $99,319 $27,604 $253,000 $55,568 $108,971 South America/Carib bean/Mexico $97,938 $71,919 $101,055 $94,419 $58,221 $86,227 $92,853 $44,105 $105,167 $76,867 $77,027 $86,675 $85,772 $11,572 $112,546 South/Central/ Eastern Europe $43,420 $61,129 $289,346 $204,715 $115,113 $143,868 $139,755 $139,835 $178,947 $222,517 $161,377 $329,577 $130,883 $2,390 $194,314 Grand Total $145,402 $138,868 $168,430 $152,470 $173,001 $183,205 $164,930 $142,375 $180,579 $160,407 $157,626 $157,018 $160,460 $181,358 $178,655 $158,087 $149,474 $176,378

Job Category College/University/Academic Computer or Information Technology Earth Science/Geology Engineering Chemical/Chemistry Engineering Civil/Construction/Facilities Engineering - Completions Engineering - Drilling Engineering Health/Safety/Environment Engineering - Other or Combination of Above Engineering - Production Engineering - Reservoir Finance or Administration Geophysics/Petrophysics/ Physics Non-Engineering Technical Other or Combination of Above Professional Training Research Sales or Marketing

Africa $44,576 $69,194 $86,247 $117,561 $346,016 $82,073 $123,010 $38,566 $133,401 $104,553 $115,107 $1,270 $120,126 $102,757 $140,405 $161,578 $112,593 $88,810

Canada $132,297 $146,825 $225,197 $131,645 $161,798 $226,221 $165,463 $175,057 $203,951 $163,850 $159,510 $160,339 $227,545 $168,816 $160,714

Middle East $126,157 $50,665 $174,916 $128,404 $121,523 $194,093 $182,334 $318,314 $144,541 $149,319 $119,896 $74,444 $105,701 $189,531 $221,094 $38,145 $120,230 $143,251

SE Asia $31,537 $3,775 $102,170 $38,962 $63,252 $103,735 $108,140 $85,274 $100,818 $94,531 $93,818 $65,634 $81,948 $87,360 $140,752 $209,858 $72,660 $123,116

*
$77,254 $77,670 $45,022 $63,025 $61,674 $193,815 $228,834 $224,100 $49,133 $73,757

*
$276,547 $161,880

*
$124,072 $168,561

*
$70,735 $187,302

*
$24,040 $190,958

*Table includes only cell values containing adequate valid cases to be statistically representative

The Impact of Gender Women represented a higher proportion of respondents in the 2012 study, totaling 11.3% of participants. Females continue to be about 3% more likely to experience positive salary growth over the previous year than their male colleagues. Professionals of both genders were much more likely to have remained stable than experience negative salary changes than in 2011. Figure 5 Members Change in Salary since July 2011 by Gender

Experience Level and Compensation

Experience continues to be a strong indicator of compensation at all levels. In overall compensation, bonuses have decreased over the past year as a percentage of overall compensation, while base salaries have seen an increase over the past year. The overall trend remains consistent between both genders, although women in the industry were less likely to experience a decrease in compensation compared to their male colleagues.

Figure 6
Cash Compensation by Position and Experience Female Executive/Top Management Average Years of Experience Number of Records Base Pay Other Cash Total Cash 22.3 Manager/ Director 19.9 Technician/ Specialist 14.6 Executive/Top Management 28.8 Manager/ Director 24.5 Male Technician/ Specialist 14.5

Professional 8.9

Supervisor 15.4

Professional 14.8

Supervisor 19.4

17 $192,749 $45,467 $228,216

95 $177,443 $48,100 $215,543

503 $155,450 $52,204 $207,653

115 $127,540 $51,062 $178,602

69 $102,819 $42,476 $165,294

483 $221,607 $62,346 $283,954

1522 $186,651 $61,967 $248,618

2711 $160,804 $57,144 $217,948

1274 $161,710 $51,794 $213,504

327 $146,595 $46,482 $193,077

How to Learn More This report represents a sample of current compensation in the industry. Presentation of every possible combination of the many jobs, geographies, and employer types and an analysis of the data dispersion in all of the compensation elements included are not possible in this summary; however detailed reports are available through the SPE Bookstore at www.spe.org/store beginning in late November 2012. SPE will make detailed summary reports available for download, in .pdf file format containing charts and descriptive statistics of trends, through the SPE Bookstore at a USD 50 member price and USD 125 nonmember price. Data tables, containing the raw data from the survey responses for those who prefer to do additional analysis, will be made available for download through the bookstore as well, 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 non-members, also available in late November 2012. In addition to our annual reports, SPE is making available for download, beginning in late November 2012, a historical summary of SPE Salary Survey Highlights dating back to the first survey in 1967. The SPE Salary survey became an annual study beginning in 1984, with previous editions having been conducted in alternate years. The archive document will include the highlights through 2010. Highlights of the two most current years are available on SPE.org. The archive .pdf document will be available through the SPE Bookstore at a price of USD 125 for SPE members and USD 325 for non-members. Inquiries regarding purchase may be addressed through the SPE Bookstore Website. Other questions regarding the survey can be addressed to speresearch@spe.org. Thank you for your interest in this important project and your continued support of SPE! The SPE Research Team

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