Employment Trends and Job Satisfaction in the Oil and Gas Industry

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EMPLOYMENT TRENDS AND JOB SATISFACTION IN THE OIL AND GAS INDUSTRY: THE EFFECT OF CORPORATION SIZE Abstract The popular press has recently reported that the oil industry is entering an evolutionary phase withseveral potentially long-term trends beginning to emerge. The authors present a review oftheoretically relevant work relating to these trends and a study examining the expected effectsthese trends might have on the employment environment in the oil and gas industry. The study was conducted in two phases. The first phase was focus-qualitative using interview groups. The results of these focus groups indicated that the oil industry is experiencing a period of consolidation and downsizing. Reasons cited for these trends included…show more content…
HYPOTHESES The purpose of this study is to investigate how general industry trends are affecting employment trends, and how these employment trends are ultimately affecting job satisfaction and motivation levels. In particular, we would like to examine how workers perceptions of employment trends differ between large and small oil companies, and how this difference in perception affects levels of job security and motivation. Hence we hypothesize: H1: Large and small oil companies perceive general industry trends differently. In particular, we investigate two specific dimensions of these industry trends: the effect of overseas production, and the effect of domestic regulation. We expect that increased oil exploration overseas will adversely affect the domestic oil industry by lowering the domestic oil price and causing local producers to lower production costs by cutting overhead. We expect these cost cuts to result in an increased number of layoffs and cutbacks in large oil companies. These cutbacks will lower employee morale and decrease the level of job satisfaction and security. We also expect the legal environment to raise the costs of doing business, particularly for larger companies that face more intense legal requirements than small companies do. This increase will further add to cost pressures and may necessitate further cutbacks and layoffs. Once again, these cutbacks

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