OIL Up this year – Divers pay up also – ROV pay going down!

[James McLauchlan]

This year Oil (US Crude) has risen substantially.
(See chart below)
$33.97 in Jan 2009 —-> $71.63 (For Sep09 market)

The divers are receiving a pay rise this year.
They did last year too.

Yet in 2009 ROV day rates appear to be dropping.

Spot the not so clever offshore subsea workers group!
Clue: Begins with R and ends with V

us_crude_jan_aug_2009_404.jpg

[zincanode]

If you speak to the suits they’ll tell you it’s the "time lag". That’s why I was earning X per day in January when prices were near bottom but only 0.8 X now as prices have doubled.

S7 couldn’t even find an offshore bod to attend a HIRA two weeks ago because they were all offshore, so there is a demand there.

Most of the long contract guys will accept the low rates because they don’t want to be first out of the door during a downturn. But what downturn? Like the Recesion, we’ve believed everything we’ve been told and not looked at the major forces.

The reality is :-
1. Oil reserves are falling away
2. Demand will continue to grow – the rapidly developing 3rd world won’t give up its power, light and automobiles just because someone says were in for a tough time.
3. The easy reserves have already been plundered, so they’ll need ROV support for more and more operations in future.
4. Because the companies treat us like crap, most of the youngsters bail out in their thirties so that leaves an aging population of saga louts to carry on.

Just keep reminding them that this is why they should be paying good rates to the youngsters and oldies alike, and that they must continue improving the social conditions aboard vessels e.g. regular crew changes, time off between offshore jobs rather than sitting around the workshop polishing nuts) and good comms, internet and Sat tv on ALL ships.

Now how do we avoid the influx of cheap labour?

[DJansen]

Now how do we avoid the influx of cheap labour?

Do what I do… Refuse to train them unless they are on proper rates…

I don’t make a fuss but if I get a fella out on silly money that is well below the average trainee rate (doesn’t matter where he’s from) I show em how to make tea/coffee and sweep up / wash down… After all that’s all they should be expected to do if they are on a home helps dayrate.. There’s no way I’m gonna pass on any knowledge unless the company is paying the right money.. If the trainee is a sharp guy he will soon be asking for a raise or going to a company that pays the going rate… If he’s useless .. well no loss just another one weeded out..

[JL Schnabel]

I must say, honest and rather bold, all of the above statements – the truth is always out there; somewhere ! 😯

[Savante]

lots of bolds, lots of olds, not so many olds n bolds!!

[Anonymous]

Hi
Was working with air and sat divers from Hallin Singapore, they guys i worked with was down in pay, this is about 3 months ago

[Bristar]

A good Sat diver friend of mine works for a company in Qatar at the moment, he used to be paid a retainer in his 4 weeks back, that stopped this year but his rate hasn’t changed. Also he used to be paid a standby rate if the project moved by a week or two, that has also stopped.

[DJansen]

Yeah I heard today from an Air Supv mate of mine. Said that both Hallin Singas and Cal Dive had chopped the rate back 20 bucks a day and that Sat guys were getting air diver deck pay when not in the bin..

[James McLauchlan]

Maybe I should have written:

‘UK divers pay going up’

I meant it in context with the GBP 350-380 being discussed elsewhere as on offer for some ROV jobs in the North Sea.

So it’s my fault, as I should have been a little more obvious on the geographical area I was referring to.

My comparison was to the UK divers that have a pay agreement in place.

The rest of the world, i.e. no agreement in place, is market driven as we all know.

[DJansen]

Yes James deffo market driven in Asia. There was a huge shortage of divers last year so rates were on the up and up as the companies competed for guy.. But this year many jobs have been posponed or put on hold. So there is a surplus of divers.. and you know what that means… Less pay..

Of course having a pay agreement in UK waters prevents this.. But obviously if there is no work .. there is no pay anyhow..

Hopefully now that oil is back up in the 70’s a barrel work will start up again.. Read today that some W African countries were starting their tendering system up again so that should mean more exploration/contruction there.
I doubt anybody has forgotton that oil is a finite resorce so the competition to find what it left will continue Worldwide.. Hopefully increasing the need for ROV guys… Sooner or later experienced hand are going to be in demand.

Biggest problem I see is that the subs are becoming easier and easier to operate so guys figure they are Buck Rogers after a couple of trips just cos they can push the auto positioning button.. It’s the operational knowledge and fault finding that takes the time to learn but for some reason companies now seem to believe you can be a Supervisor after 3 yrs.. 3 year = 18 Months on the job… 🙄 and six of those Months were probably spent making tea….

[Anonymous]

Yes James deffo market driven in Asia. There was a huge shortage of divers last year so rates were on the up and up as the companies competed for guy.. But this year many jobs have been posponed or put on hold. So there is a surplus of divers.. and you know what that means… Less pay..

Of course having a pay agreement in UK waters prevents this.. But obviously if there is no work .. there is no pay anyhow..

Hopefully now that oil is back up in the 70’s a barrel work will start up again.. Read today that some W African countries were starting their tendering system up again so that should mean more exploration/contruction there.
I doubt anybody has forgotton that oil is a finite resorce so the competition to find what it left will continue Worldwide.. Hopefully increasing the need for ROV guys… Sooner or later experienced hand are going to be in demand.

Biggest problem I see is that the subs are becoming easier and easier to operate so guys figure they are Buck Rogers after a couple of trips just cos they can push the auto positioning button.. It’s the operational knowledge and fault finding that takes the time to learn but for some reason companies now seem to believe you can be a Supervisor after 3 yrs.. 3 year = 18 Months on the job… 🙄 and six of those Months were probably spent making tea….

Jansen
auto positioning button, he he come out here to Asia, not such thing in Far East, most systems is very very old, mind you there is a few new ROV’s here

[DJansen]

I’ve done lots of work with old systems .. scorpios, tritons, rigworkers and a bunch of others.. Never needed an auto pos button in the past .. Many times the auto heading and depth were tit’s up anyhow.. Just meant how are the ‘new breed’ of ROV guys ever gonna become decent pilots if they rely on all the latest gizmo’s.. Sure they might be easy when they work but in 5 years time when the sub is obsolete and no spares available how they gonna fly it..

Trouble seems to be all the newbies think it’s all too easy and that us older guys are dumb cos it took 6-7 yrs to become a Supervisor..

Of course it takes them five attempts to establish a hook on a master link
🙄

[Scott Beveridge]

DJan,

Which brings to mind that the companies should also hire experienced car body repairmen for when the vehicle’s crash and burn pilots destroy them!!!

Deep…,

Hmmph!!! I remember when we had to use divers compasses at the front of the camera, no gyro, no nav, no sonar on some older vehicles. How do ya think the new lads would fair???

[James McLauchlan]

Hmmph!!! I remember when we had to use divers compasses at the front of the camera, no gyro, no nav, no sonar on some older vehicles. How do ya think the new lads would fair???

No worries, I’m sure, when all else fails, every ‘new lad’ on the sticks (or at least the co-pilot) knows how to manually work out a reciprocal bearing to get back to the TMS 😉

I can just see the scenario coming into play when the client says:

"Why isn’t the ROV holding station?" and the ROV crew call up and say "The Auto pos system has failed, so we can’t stay on the job!"

Total disbelief.

[James McLauchlan]

Actually, we’re getting off topic a little……..

[Author]

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