july 26 webinar
TRANSCRIPT
Risks and Opportunities in the Oil and Gas SectorLabour Market Information 2016 to 2020 and Career Resources
July 26, 2016
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ACKNOWLEDGEMENTS AND DISCLAIMERS
This slide deck presents data and insight into Alberta’s rotational workforce for the oil and gas industry, which is taken from the Rotating, Not Relocating: Alberta’s Oil and Gas Rotational Workforce report.
The report is funded by Government of Canada’s Sectoral Initiatives Program.
This report describes the nature and experience of Alberta’s oil and gas rotational workforce that reside in camps. And it attempts to demystify what has become an
established industry practice where little information exists.
Disclaimer:
• The viewer of this slide deck has permission to use limited labour market information (or LMI) content for general reference or educational purposes in the
viewer’s analysis or research reports. “Limited LMI Content” is defined as a maximum of three slides or data tables/graphs from this slide deck. Where Limited
LMI Content is used, the viewer must cite the source of the Limited LMI Content as follows: Source (or “adapted from”): The Petroleum Labour Market Information
(PetroLMI) Division of Enform Canada, name or product, catalogue, volume and issue numbers, reference period and page(s).
The viewer of this slide deck cannot however:
• Market, distribute, export, translate, transmit, merge, modify, transfer, adapt, loan, rent, lease, assign, share, sub-license or make available to another person or
entity, this slide deck in any way, in whole or in part
• Use this slide deck and its contents to develop or derive any other information product or information service for commercial distribution or sale
• Use this slide deck and its contents in any manner deemed competitive with any other product or service sold by PetroLMI
• The information and projections contained herein have been prepared with data sources PetroLMI has deemed to be reliable. PetroLMI makes no
representations or warranties that this report is error free and therefore shall not be liable for any financial or other losses or damages of any nature whatsoever
arising from or otherwise relating to any use of this slide deck.
• The opinions and interpretations in this publication are those of the PetroLMI and do not necessarily reflect those of the Government of Alberta or the
Government of Canada.
FACILITATOR
Dzifa Agbemabiese Analyst, LMI and Occupational [email protected]
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PRESENTERS
Claudine Vidallo Team [email protected]
Emma MonaghanProject Advisor, Labour Market [email protected]
WHO WE ARE
Petroleum Labour Market Information or PetroLMI (a division of Enform Canada) is the leading resource for labour market information and trends in Canada’s upstream and midstream petroleum industry, specializing in data and insights, occupation profiles and other resources for workforce and career planning.
Visit www.careersinoilandgas.com to find out more.
Agenda
• Overview of PetroLMI
• Labour Market Outlook for Canada’s Oil and Gas Industry 2016 to 2020
• Exploring LNG in Canada
• Career Resources
• Questions and Answers
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Petroleum Labour Market Information (PetroLMI) Division of Enform
• We are a leading resource for labour market information and insights in the Canadian petroleum industry.
• We generate:– Current and short-term HR
trends and insights– Labour market outlooks– Career profiling and tools– And other resources!
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POLL #1
Please indicate if you represent:
a. Governmentb. The oil and gas industry (please specify area of expertise
or sub-sector in the chat box)c. Education institutionsd. Career planner/job seekere. Other (please specify in the chat box)
Labour Market Information for Canada’s Oil and Gas Industry
“Retaining a skilled and innovativeworkforce will play a key role in the ability of Canada’s oil and gas sectors to emerge from the current downturn as a more productive and efficient industry.”
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Labour Market Outlook 2016 to 2020 for Canada’s Oil and Gas Industry
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State of the Industry
• In 2015, exploration and production (E&P) companies significantly reduced capital and operational spending, resulting in workforce reductions across the primary sectors within Canada’s oil and gas industry.
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Spending to 2020
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In response to continued low prices, the conventional E&P sector is expected to continue to reduce capital spending in 2016. In the Lower scenario, investment falls an additional 44%, and the Higher scenario sees a 29% reduction.
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2016 Outlook Remains Uncertain
• An additional 16,500 to 24,500 jobs may be lost in 2016 as industry continues to respond to fluctuations in commodity prices and further revises its capital and operating expenditures downwards.
• Mergers, acquisitions, and bankruptcies are expected to continue.
• Majority of Canada’s oil and natural gas exports still go to the United States.
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“We’re fundamentally changing the way we work. We’re continuing to focus on where and how we improve our cost structure. We’re leaving no stone unturned.”
Brian Ferguson,Cenovus Chief Executive Officer“Energy sector layoffs pile up as companies say efforts to cut costs paying off”, CBC News,October 29, 2015
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Oil and Gas Employment Outlook to 2020
The industry is projected to start recovering in 2017 with potentially 28,000 to 36,200 new jobs created to 2020.
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Oil and Gas Hiring Outlook to 2020
• Age-related attrition may result in 18,400 to 19,000 job openings, bringing industry’s net hiring requirements to 46,400 to 55,300 new workers between 2017 and 2020.
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Risks by Sector
• Oil and gas services: raises concerns over attracting and training qualified and experienced employees
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Risks by Sector
• E&P : Loss of industry experience and expertise may be a risk
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Risks by Sector
• Oil sands: Containing labour costs could present challenges for the oil sands sector
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Risks by Sector
• Pipelines: Age-related attrition remains a potential workforce challenge for the pipeline sector
Oil and Gas Occupational Outlook to 2020
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TOP 10 OCCUPATIONS WITH THE GREATEST HIRING NEEDS IN CANADA’S OIL AND GAS INDUSTRY
OCCUPATION (NOC)NET HIRING REQUIREMENTS 2017–2020
(LOWER–HIGHER SCENARIOS)
Total industry 46,435 – 55,305
Oil and gas well drillers, servicers, testers and related workers (8232) 2,775–3,495
Supervisors and contractors, oil and gas drilling and service (8222) 2,640–3,220
Managers in natural resources production (0811) 2,195–2,615
Heavy equipment operators – except crane (7521) 2,190–2,415
Power engineers and power systems operators (steam-ticket required) (9241) 1,800 –1,915
Purchasing agents and officers (1225) 1,705–2,140
Oil and gas drilling, servicing and related labourers (8615) 1,295–1,645
Geologists and geophysicists (2113) 1,285–1,570
Petroleum, gas, chemical process operators (no steam-ticket required) (9232) 1,045–1,270
Oil and gas well drilling workers and service operators (8412) 1,035–1,340
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“Canada is the world’s fifth largest natural gas producer and has enough natural gas reserves to meet the country’s current energy demand for 300 years.”
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Exploring LNG in Canada
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Proposed LNG Projects in Canada
In Canada, 23 LNG export projects have been proposed to date:• 19 in B.C. • one in Quebec and • three in Nova Scotia.
The conversion of New Brunswick-based Canaport LNG from an import to an export facility is also under consideration.
In addition, six LNG-associated pipeline projects have been announced in B.C.
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Construction Peak Workforce Requirements
On-site peak construction workforce requirements:
• Large two-train LNG plant: 5,240 workers
• Medium two-train LNG plant: 3,300 workers
• Associated pipeline with 5-segments: 4,260 workers
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LNG and Pipeline Construction Workforce Requirements
• Construction trades helpers and labourers and skilled trades will be highly in demand during the construction phase of the LNG facility as well as associated pipeline.
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B.C.’s Oil and Gas Employment Outlook to 2020
• With the assumption that construction of a large two-train LNG facility will be underway before 2020, B.C.’s oil and gas employment is projected to fare better than Canada’s other energy-producing regions between 2017 and 2018 and recover to near-2014 levels by the end of 2020.
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Occupational Transferability across LNG subsectors
Career Resources
Today’s Oil and Gas Worker Needs to…
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• Be comfortable with technology• Have business acumen• Be innovative• Be able to negotiate successfully• Strive for continuous improvement• Be highly skilled at reading, numeracy,
communication and problem solving• Plan and execute projects of all sizes• Be aware of the regulatory and compliance
implications of projects
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Poll #2
How will use the information in this webinar?
a. Workforce planningb. Career guidancec. Program and/or policy developmentd. Career planner/job seekere. Other (please specify in the chat box)
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