Employment Trends and Job Satisfaction in the Oil and Gas Industry
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 depressed oil prices, minimized revenues, and decreased cash flows. The interviews emphasized that efficiency could be improved through the use of centralized budgeting, capital intensive labor, improved maintenance, and reward systems. The second phase involved a survey administered to employees of large and small oil companies in West Texas and New Mexico. Published scales for job satisfaction were used to study differences in perception of job security and motivation between large oil company and small oil company employees. Results show higher job security, job satisfaction, and general motivation levels among employees of small oil companies. The authors conclude with a discussion of relevant research and management implications. |
INTRODUCTION
Managers of large, independent, and small oil companies are increasingly realizing that the oil and gas industry is in a state of flux, with several long term trends expected to significantly affect the role of the American oil worker. (Chellgren 1995; Haines 1995)
Researchers have investigated several dimensions of these industry trends, including the move to more corporate mergers (Haines 1996); the focus on industry consolidation particularly in the gas-gathering and
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 depressed oil prices, minimized revenues, and decreased cash flows. The interviews emphasized that efficiency could be improved through the use of centralized budgeting, capital intensive labor, improved maintenance, and reward systems. The second phase involved a survey administered to employees of large and small oil companies in West Texas and New Mexico. Published scales for job satisfaction were used to study differences in perception of job security and motivation between large oil company and small oil company employees. Results show higher job security, job satisfaction, and general motivation levels among employees of small oil companies. The authors conclude with a discussion of relevant research and management implications. |
INTRODUCTION
Managers of large, independent, and small oil companies are increasingly realizing that the oil and gas industry is in a state of flux, with several long term trends expected to significantly affect the role of the American oil worker. (Chellgren 1995; Haines 1995)
Researchers have investigated several dimensions of these industry trends, including the move to more corporate mergers (Haines 1996); the focus on industry consolidation particularly in the gas-gathering and
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