How Much Do Oil Rig Workers Make?

Oil rig workers are crucial in extracting oil and gas from beneath the earth’s surface. Their job is demanding, often conducted in harsh environments, and involves risks. As such, compensation for oil rig workers varies widely, reflecting the dangers they face and the specialized skills they possess. 

If you’re an oilfield worker and have been hurt on the job, an Armstrong Lee & Baker LLP attorney can help you get full compensation for your suffering.

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High-Paying Oil Rig Jobs: Salary Breakdown

Oil rig worker salaries can vary depending on experience, location, and role, but they can be very lucrative. Below, we’ll examine how pay ranges for different experience levels and job roles in Houston, TX.

Entry-Level

Entry-level oil rig workers in Houston typically earn between $40,000 and $60,000 per year. These positions include roles such as roughnecks or roustabouts, where workers handle manual labor tasks like cleaning and maintaining equipment. As a roughneck, workers engage in physically demanding tasks such as handling pipes, maintaining rig tools, and assisting with drilling operations. Roustabouts, on the other hand, are responsible for general maintenance tasks that keep the rig functioning properly, from cleaning decks to repairing rig machinery.

Houston’s proximity to major drilling operations, both onshore and offshore, makes it an attractive area for those starting out in the oil and gas industry. Given the demand for labor in this field, entry-level workers can often find themselves with ample overtime opportunities, which can increase their overall yearly earnings. The combination of steady work and competitive base pay makes Houston a favorable location for those just beginning their careers in the oil industry.

For entry-level positions, it’s common for workers to undergo a brief period of training on-site before being assigned to more technical tasks. Additionally, many companies in Houston provide safety training and certifications, as well as mentorship from more experienced workers, to ensure that new employees acclimate to the challenging environment of rig work.

Mid-Level

For those who have gained a few years of experience, mid-level positions such as drillers or derrickhands earn between $70,000 and $100,000 annually. These roles involve increased technical knowledge and responsibility. As a driller, you’ll be responsible for the rig’s primary drilling operations, which include overseeing drilling equipment, maintaining rig pressure, and ensuring the correct drilling techniques are used for the environment and conditions. Drillers also coordinate closely with engineers and supervisors to ensure that drilling operations are proceeding safely and efficiently.

Derrickhands are responsible for the more physically demanding tasks on the rig’s upper derrick, where they manage the equipment that lifts and moves heavy drill pipes. Derrickhands play a crucial role in maintaining the rig’s stability and making sure that equipment is in good working order. Their salaries reflect the critical role they play in the smooth operation of drilling tasks, as well as the risk associated with working at heights and handling complex machinery.

Houston, being home to a large number of oil companies, offers plenty of opportunities for mid-level workers to advance their careers. Many companies in the region invest in ongoing training and professional development for their mid-level staff, ensuring they are up to date on the latest technologies and safety regulations. This continuous development helps workers increase their skill sets and move up to higher-paying roles within a few years. 

Senior Roles

At the senior level, workers in roles like toolpushers or rig managers can earn between $150,000 and over $250,000 per year. Senior workers are responsible for the overall management and supervision of drilling operations. Toolpushers oversee the rig’s entire drilling operation, ensuring that equipment is used correctly, procedures are followed, and the safety of the crew is maintained. They coordinate closely with engineers, safety officers, and company representatives to ensure the smooth operation of the rig.

Rig managers, on the other hand, are responsible for the business side of drilling operations. They manage the entire crew, monitor the budget, and ensure that the project stays on schedule. Rig managers have the authority to make key operational decisions, and their earnings reflect the level of responsibility they carry. Houston’s oil companies often pay top dollar for experienced managers who can ensure projects are completed efficiently and safely, especially for offshore operations where risks are higher and the stakes are even greater.

The path to senior-level roles typically involves years of experience in mid-level positions, along with leadership training and certifications. In Houston, companies also value workers who can manage complex logistical operations, especially for offshore rigs, where the supply chain, crew rotations, and environmental conditions require expert oversight.

Specialized Skills

Certain oil rig workers possess specialized skills that can command salaries as high as $200,000 annually. For instance, positions such as drilling engineers or safety coordinators require advanced technical expertise and a deep understanding of the drilling process, machinery, and geological conditions. Drilling engineers design and implement drilling plans, ensuring that the equipment and techniques used are suited to the geological formations being drilled. This role requires a strong background in engineering, as well as the ability to analyze geological data and predict potential drilling complications.

Safety coordinators are tasked with ensuring that all safety protocols are followed, mitigating the risks of accidents, and handling emergency situations should they arise. These workers must be well-versed in OSHA (Occupational Safety and Health Administration) standards and oil and gas safety regulations. Houston’s oil industry heavily depends on workers who can manage specific challenges, such as high-pressure drilling or complex safety protocols, making these workers invaluable to both onshore and offshore projects. (KPMG)

These specialized roles often require advanced certifications or degrees, and many workers start their careers in more general positions before moving into specialized areas. Houston offers plenty of opportunities for training and development in specialized oil and gas skills, with many companies encouraging their employees to pursue further education and certifications.

College Degree

Oil rig workers with a college degree in fields like engineering, geology, or chemistry can start in the six-figure range, often beginning at around $100,000 annually. Positions such as petroleum engineers, geophysicists, and drilling consultants require advanced knowledge and often involve managing large-scale drilling projects, analyzing geological data, or optimizing drilling operations to minimize costs and maximize output. Geologists, for example, play a key role in identifying and analyzing the rock formations and reservoirs that contain oil and gas, using their knowledge to guide drilling operations.

In Houston, where many energy companies are headquartered, workers with relevant degrees are in high demand, particularly for offshore drilling projects that require expert management of the complex and unpredictable conditions found beneath the ocean floor. Graduates from institutions such as the University of Houston and Texas A&M often find themselves recruited straight out of school by some of the largest oil and gas companies in the world. (Source: University of Houston Oil and Gas Job Salary Report)

Additionally, workers with advanced degrees or specializations in fields like chemical engineering or environmental sciences can move into high-level roles, such as project management or consulting, where their expertise is critical in making strategic decisions for large-scale projects. Houston’s oil companies value the contributions of these highly educated professionals, and they often provide incentives like signing bonuses, stock options, and relocation packages to attract top talent.

Hourly Pay

For oil rig workers paid hourly, the average hourly wage in the U.S. as of September 2024 is $26.57, but this figure can vary based on experience and job role. In Houston, hourly workers—especially those involved in offshore drilling—can expect rates on the higher end of the spectrum, often due to the complexity and hazards associated with offshore drilling operations. To illustrate, positions like roustabout or floorhand can offer hourly wages ranging from $20 to $35 per hour, depending on the level of experience and the specific job site.

Hourly wages can increase significantly for workers who take on overtime shifts or more hazardous assignments. Offshore workers, in particular, often work extended shifts of 12 to 14 hours per day, followed by several weeks off, which allows them to accumulate considerable overtime pay. Workers who are stationed on rigs for long periods also receive additional compensation for the isolation and difficult living conditions they face. 

In Houston, where the demand for oil rig workers remains consistently high, hourly wages are competitive across the board, and many workers have the option to take on multiple shifts or work during high-demand periods like drilling surges or emergency maintenance operations.

A Lucrative Field

In oilfields, salaries vary significantly depending on experience, job position, location, and specific tasks. Entry-level positions, like roustabouts or roughnecks, typically earn between $50,000 to $80,000 per year. These workers are responsible for the manual labor on the rig, including equipment maintenance and handling materials.

Moving up the ladder, positions such as drillers or derrick operators can earn salaries ranging from $80,000 to $120,000 annually. These roles require more experience and expertise in operating drilling machinery and overseeing rig operations.

At the top end of the spectrum are positions like petroleum engineers or drilling supervisors, commanding salaries of $150,000 to $200,000 or more. These professionals are responsible for planning and managing drilling operations, ensuring efficiency, safety, and compliance with regulations.

Oil Rig Worker Roles and Their Earnings Potential

The specific job role a worker holds on an oil rig can significantly impact their salary. Below is a breakdown of common oil rig roles and their expected earnings in Houston:

• Roustabout: Entry-level labor-intensive role, earning between $40,000 and $50,000.
• Driller: Mid-level job responsible for managing drilling operations, earning between $75,000 and $110,000.
• Derrickhand: Handles equipment and maintenance on the upper portions of the rig, earning between $70,000 and $95,000.
• Rig Manager: The top position on an oil rig, earning over $250,000, depending on the size and location of the project.

Houston, being one of the busiest oil hubs in the world, offers competitive salaries in all of these job categories. The proximity to offshore drilling sites in the Gulf of Mexico and major onshore operations means that rig workers are compensated well for their expertise.

Experience Matters: How Seniority Impacts Oil Rig Pay

Seniority on oil rigs significantly influences how much a worker can earn. As oil rig professionals gain experience, they can move up into higher-paying roles. For instance:

• Entry-level roles start with salaries between $40,000 and $60,000.
• Mid-level positions offer salaries between $70,000 and $100,000.
• Senior roles such as toolpushers and rig managers often see earnings ranging from $150,000 to over $250,000 annually.

In Houston, seniority can also result in additional perks such as bonuses, profit-sharing, and increased vacation time. Workers who demonstrate leadership skills and a strong understanding of the technical and managerial aspects of rig operations are often promoted quickly, given the high demand for experienced leaders in the industry.

Offshore vs. Onshore: Salary Differences by Location

The location of an oil rig—whether it’s offshore or onshore—can also have a profound effect on worker pay. Offshore oil rig workers tend to earn significantly more than their onshore counterparts due to the increased hazards and isolation associated with the job. Offshore rigs in the Gulf of Mexico, which are accessible from Houston, frequently offer bonuses, higher base salaries, and additional incentives for workers willing to work in these challenging conditions.

For instance, offshore oil rig workers in Houston can earn between $100,000 and $200,000 annually, depending on their role and level of expertise. Onshore workers, while still earning competitive wages, generally earn between $40,000 and $100,000. Offshore roles also often include rotational schedules, with workers spending weeks at a time on the rig, followed by extended time off, which can be a significant factor for individuals weighing their job options.

While onshore work offers more stability and proximity to home, offshore roles offer higher pay, albeit with a greater commitment in terms of time and risk. Houston remains a critical hub for both types of drilling, giving workers ample opportunities to choose the best fit for their career goals.

The Significant Risks of Oilfield Work

However, alongside the lucrative pay, oil rig workers face significant risks on the job. Over a recent five-year period, 470 workers died on the job – 219 of those tragedies occurred in Texas. 

Working on an oil rig involves exposure to hazardous materials, heavy machinery, and unpredictable weather conditions. The most common injuries experienced by oil rig workers include slips, trips, and falls, often resulting from slippery surfaces on the rig or uneven terrain. Workers also risk being struck by equipment or caught in machinery accidents, which can cause severe injuries or fatalities.

The work also exposes workers to health hazards, such as exposure to toxic chemicals and gases, leading to respiratory problems, skin irritation, or long-term health issues. Other potential dangers include accidents involving explosions, fires, or blowouts, which often have catastrophic consequences.

Issues Getting the Money You Deserve After an Accident? Our Attorneys Can Help

In the event of an injury, oil rig workers are entitled to workers’ compensation benefits to cover medical expenses, lost wages, and rehabilitation costs. Nonetheless, navigating the workers’ compensation system can be complex, and injured workers may encounter obstacles in obtaining the compensation they deserve.

This is where legal assistance becomes invaluable. An experienced oil field injury attorney can guide injured oil rig workers through the claims process, protecting their rights and helping them secure fair compensation. A lawyer with Armstrong Lee & Baker LLP can negotiate with insurance companies or represent them in legal proceedings if disputes arise.

Our attorneys can help injured workers explore other avenues for compensation as well. For example, we can pursue a third-party liability claim if negligence or faulty equipment contributed to the accident. 

Schedule a Free Consultation with Our Houston Oil Field Injury Lawyers

The attorneys with Armstrong Lee & Baker LLP attorneys have extensive experience representing injured oil rig workers and a long track record of success. If you have problems obtaining the compensation you deserve after an oilfield accident, schedule a free case evaluation with our team by contacting us online today.

Joshua Lee

Joshua Lee believes in aggressive, tough advocacy and a client-centered approach to every case. Joshua draws from a wide body of experiences and a robust understanding of the law. Joshua graduated from the New York University School of Law in New York City, which is considered among the best law schools in the world. Our lawyers have 25+ years of combined experience.

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