More than 60,000 jobs have been lost in the Gulf of Mexico (GOM) region since 2008 due to the deepwater oil and natural gas moratorium and sluggish pace of new drilling permits in the area, but 190,000 jobs could be created by 2013 for a total of nearly 430,000 industry-supported jobs nationwide if permitting returns to historic levels and backlogged projects are processed, said a new study by two producer groups.

Employment — direct, indirect and induced — associated with the Gulf region’s oil and natural gas industry reached its lowest level in 2010 — 242,317 jobs, according to the study released by the National Ocean Industries Association (NOIA) and the American Petroleum Institute. The two groups commissioned Sugar Land, TX-based Quest Offshore Inc., a consultant in the deepwater oil and gas market, to do the study.

Direct employment is defined as jobs within the oil and gas industry, while indirect jobs are the equipment and service providers for oil and gas producers. Induced employment includes jobs (i.e., restaurants, grocery stores ) supported by household spending of income earned either directly or indirectly from oil and gas industry activity.

Of the 242,317 jobs related to the oil and gas industry in the Gulf region in 2010, the study estimated that more than 60,000 were within the oil and gas industry, and 180,000 were either indirect or induced jobs. It said the industry contributed more than $26 billion to the nation’s gross domestic product (GDP) in that year.

The 2010 industry-related employment level was 15% below the 285,042 level in 2009 and 7% below the 306,970 level in 2008, the study said. It projects that the Gulf employment level will climb to 311,023 this year, to 356,174 in 2012 and to 429,208 in 2013.

The projected 28% increase in the Gulf-related employment rate this year is “due to increased investments associated with long-delayed projects,” the study said. However, it cautioned, “this estimate may be optimistic given the current rate of permitting.”

Along with the rise in employment the study projects that spending by the oil and gas industry would increase by 70%, reaching $25.7 billion in 2013, while capital expenditures would increase by a projected 140% to $15.7 billion in 2013. It estimates that the industry’s total contributions to the nation’s GDP will be around $45 billion in 2013.

While the study offers potential good news, NOIA President Randall Luthi acknowledged that there was bad news as well. “The bad news is that the current pace of permit reviews and approvals will just not get us there.”

Meanwhile, a separate study released last week found that global natural gas and oil companies remain cautious as they consider making new investments and hiring more employees, but a surge in worldwide energy demand should increase hiring to the end of this year. “The Global Oil & Gas Workforce Survey” was compiled by OilCareers.com, an international jobs board for the industry, and global energy staffer Air Energi. Close to 13,000 energy professionals from 45 countries were asked to participate in the surveys for the biannual report, including more than 5,500 direct recruiters or senior decision makers.

“Unequivocally, the major concern across the board is workforce, with rising activity creating demand for staff despite the challenges caused by political unrest, regulatory uncertainty and natural disasters across the first half of the year,” said OilCareers.com Managing Director Mark Guest. “What is clear from this report is that the oil and gas industry needs to focus now on the future challenges it faces to ensure it is best placed to take advantage of the opportunities available.”

Many experienced energy professionals are nearing retirement age and the “great crew change” remains high on the agenda, said the authors. However, “the familiar focus on recruitment and retention will be joined by a third component, training.

“Emerging technologies and increasingly technical offshore and deepwater plays in relatively remote corners of the world will demand the very best of project teams and workforces. Companies are being encouraged to cooperate in the sharing of knowledge, resources and best practices as the industry enters a new era of energy production.”

Increased hiring is expected across Africa, the Americas, Asia Pacific, Australasia, Caspian Sea, Europe and the Middle East, with “specific demand” for liquefied natural gas (LNG) and engineering expertise. The energy economy in the United States is rebounding with the GOM deepwater drilling moratorium being lifted and from continued momentum in shale gas plays, the authors noted.

In the United States “the market is becoming more candidate-driven though rates remain largely balanced for the moment. Employers are taking a more guarded approach to manpower costs, rather than enforcing caps on contractor rates. Many companies are increasing their number of direct hires to manage these costs near- and long-term.”

In addition, “design work” from the United States has picked up, “both in support of offshore newbuilds as well as LNG projects here and abroad. LNG terminals that have sat largely idle for several years are now being converted to export terminals,” the authors said.

©Copyright 2011Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.