tackling the lng skills shortage: how canadian lng developers can secure the skilled labour needed

Funded in part by the Government of Canada

June 19, 2014

Carla Campbell-Ott, Executive Director, Petroleum HR Council (a division of Enform)

Tackling the LNG Skills Shortage:How Canadian LNG Developers can Secure the Skilled Labour Needed

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Table of Contents (Agenda)

• Introduction

– Overview of the Petroleum HR Council and its Labour Market Information (LMI) Products and Services

• Canada’s Oil and Gas Industry Labour Market Outlook to 2022: Key Findings and Analysis

– Employment Outlook

– Hiring Outlook

– Provincial Analysis

– Full Employment Impacts of Industry Investments and Activities Over the Next Decade

• Labour Supply for B.C.’s Natural Gas Sector

– Labour Supply Pools

• B.C. Natural Gas Workforce Strategy & Action Plan

– Construction and Operations Workforce Requirements

– Workforce Strategies

22 www.careersinoilandgas.com

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Petroleum HR Council — a division of Enform Canada

Effective April 1, 2013, the Petroleum HR Council became part of Enform:

• Shared core relationships with industry associations, leaders and enterprises, as well as with government organizations.

• Long-standing close relationship with Enform that supports and promotes the highest safety standards in Canada’s upstream oil and gas industry through innovative training, certifications, services and resources.

• The main programs and services of the Council will continue, primarily focusing on two key areas of priority: Labour Market Information and Careers in Oil and Gas.


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LMI Value to Oil and Gas Stakeholders

• Timely, relevant and credible LMI provides facts and insights into current and future labour and skill shortages within Canada’s oil and gas industry.

• With petroleum LMI, stakeholders can develop and implement effective workforce strategies to build a sustainable oil and gas workforce.

• Specifically, LMI helps:


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Our LMI Expertise

Labour Market Outlooks: Generate long-term employment and hiring projections using an industry-validated modelling system for:

– Canada’s oil and gas industry as a whole

– Key operating regions: BC, AB, SK and rest of Canada

– Petroleum industry sectors: exploration and production (E&P), oil sands, oil and gas services and pipeline transmission

– Core and “other” occupations

• Customized scenario outlooks can also be developed.

• Supply projections and labour demand-supply gap analysis available for total industry and by core occupation to help understand risks and opportunities.

HR Trends and Insights: Provide intelligence on current and short-term labour market conditions and HR trends within Canada’s oil and gas industry.

We produce the following LMI products.


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Canada’s Oil and Gas Labour Market Outlook to 2022: Key Findings and Analysis


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Business Trends Impacting Canada’s Oil and Gas Industry

• Attraction of investment

– Oil sands, especially in situ

– Liquefied natural gas (LNG)

– Shale/conventional oil

– Hebron offshore project

• Joint ventures with Asian companies

– Longer-term view of development and learning opportunity

• Downside risks

– Single customer market (US)

– Lack of infrastructure to support market diversification

– Skill shortages


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Oil and Gas Industry Activity – Two Scenarios

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The Decade Ahead analyzes the labour market outlook for two potential industry activity scenarios based on a range of oil and gas prices, capital and operating expenditure, and oil sands production forecasts.

Low Growth Scenario Expansion Scenario

Market diversification does not occur and growth is driven by North American demand.

• Moderate increases to conventional oil, oil sands and liquids-rich natural gas activity

Market diversification occurs and Canadian producers supply international markets.

• Debottleneck and expansion of oil pipelines• Development of LNG export facilities and

pipelines


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Long-Term Hiring Outlook (2013 – 2022)Total recruitment activity over the next decade ranges between 125,000 and 150,000 to meet industry activity, age-related attrition and a 3 per cent non-retirement turnover.


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Occupations with Greatest Net Hiring Requirements to 2022

TOP TEN OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS* TO 2022 (# of job openings Low Growth – Expansion)

Industry Total (62,440 – 84,030 )

1 Power engineers (steam-ticketed operators) 2,945 – 4,105

2 Heavy equipment operators (except crane) 2,425 – 3,990

3 Oil and gas well drillers, servicers, testers, and related workers 2,945 – 3,985

4 Drilling coordinators/production managers 3,050 – 3,945

5 Supervisors, oil and gas drilling and service 2,930 – 3,640

6 Oil and gas drilling, servicing, and related labourers 2,415 – 3,480

7 Petroleum engineers 2,150 – 2,910

8 Truck drivers 2,200 – 2,825

9 Oil and gas well drilling workers and service operators 1,860 – 2,590

10 Geologists and geophysicists 1,715 – 2,305

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*Net hiring requirements = hiring due to industry activity + age-related attrition (excludes non-retirement turnover)


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Occupations with Above-Average Age-Related Attrition Rates

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OCCUPATIONAVE. AGE OF THE LABOUR

FORCE

TEN-YEAR AVE. AGE-RELATED

ATTRITION RATE

Industry Total 40 23%Supervisors, petroleum, gas and chemical processing and utilities 44 32%

Drilling coordinators/production managers 44 31%

Geologists and geophysicists 44 29%

Industrial engineering and manufacturing technologists and technicians 42 29%

Inspectors in public and environmental health and safety 42 29%

Purchasing agents and officers 42 28%

Supervisors, oil and gas drilling and service 43 27%

Non-destructive testers and inspection technicians 40 26%

Petroleum engineers and crane operators 42 25%

Project engineers and industrial electricians 41 25%

Drafting technologists and technicians 40 25%

Petroleum/mining/geological engineering technologists 38 25%

Civil engineers 42 24%

Electrical/instrumentation engineers 40 24%

Instrumentation engineering technologists 39 24%

Power engineers (or steam-ticketed operators) 38 24%


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TOP TEN BC-BASED OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS TO 2022 (# of job openings Low Growth – Expansion)

Total BC-Based Oil and Gas Industry (3,100 – 4,100)

1 Oil and gas well drillers, servicers, testers, and related workers 285 – 410

2 Oil and gas drilling, servicing, and related labourers 225 – 355

3 Supervisors, oil and gas drilling and service 245 – 315

4 Truck drivers 225 – 300

5 Oil and gas well drilling workers and service operators 180 – 265

6 Drilling coordinators/production managers 180 – 230

7 Petroleum, gas, chemical process operators (no steam-ticket required) 145 – 185

8 Heavy equipment operators (except crane) 135 – 180

9 Millwrights and machinists 130 – 175

10 Welders 95 – 130

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Net Hiring Requirements in B.C. Oil and Gas Industry(Low Growth and Expansion)

Hiring due to industry activity

640 to 1,600

Hiring due to age-related attrition

2,460 to 2,500

10-year net hiring requirements

3,100 to 4,100


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TOP TEN ALBERTA-BASED OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS TO 2022 (# of job openings Low Growth – Expansion)

Total Alberta-Based Oil and Gas Industry (53,800 – 72,700)

1 Power engineers (steam-ticketed operators) 2,925 – 4,075

2 Heavy equipment operators 2,110 – 3,575

3 Drilling coordinators/production managers 2,585 – 3,350

4 Oil and gas well drillers, servicers, testers, and related workers 2,305 – 3,065

5 Supervisors, oil and gas drilling and service 2,320 – 2,865

6 Oil and gas drilling, servicing, and related labourers 1,920 – 2,700

7 Petroleum engineers 1,920 – 2,605

8 Truck drivers 1,690 – 2,140

9 Geologists and geophysicists 1,510 – 2,040

10 Oil and gas well drilling workers and service operators 1,465 – 2,000

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Net Hiring Requirements in AB Oil and Gas Industry(Low Growth and Expansion)


17,100 to 35,000


36,700 to 37,700


53,800 to 72,700


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TOP TEN SASKATCHEWAN-BASED OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS TO 2022 (# of job openings Low Growth – Expansion)

Total Saskatchewan – based Oil and Gas Industry (2,600 – 3,450)








8 Heavy equipment operators (except crane) 115 – 150


10 Welders 80 – 105

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Net Hiring Requirements in SK Oil and Gas Industry(Low Growth and Expansion)


300 to 1,100


2,300 to 2,350


2,600 to 3,450


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TOP TEN REST OF CANADA OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS TO 2022 (# of job openings Low Growth – Expansion)

Total Rest of Canada-based Oil and Gas Industry (2,900 – 3,750)







7 Petroleum engineers 95 – 125


9 Geologists and geophysicists 75 – 105


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Net Hiring Requirements in RoC Oil and Gas Industry(Low Growth and Expansion)


250 to 1,050


2,650 to 2,700


2,900 to 3,750


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Employment Impacts of Oil and Gas Investment and Activities to 2022

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Investments and activities by the oil and gas industry benefit all Canadians.



Labour Supply for B.C.’s Natural Gas Sector


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Labour Supply for B.C.’s Natural Gas Sector

• Local Workers

– Competition for skilled trades and technical occupations

• Inter-Provincial Migration

– Industry-led recruitment missions

• Aboriginal Peoples

– Under-represented in the labour market

• Immigrants

– Attraction and retention



B.C. Natural Gas Workforce Strategy & Action Plan


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Construction Workforce at Peak (2016/17)

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The demand for qualified trades workers to build LNG infrastructure requires planning and collaboration


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Top Ten Construction-related Jobs (Future Demand)

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Construction Occupations with Greatest Demand

1. Steamfitters and pipefitters

2.Construction trades helpers and labourers (including riggers)

3. Welders

4. Concrete finishers

5. Heavy equipment operators

6. Carpenters (including scaffolders)

7. Truck drivers

8. Purchasing agents and officers

9. Gas fitter

10. Crane operators


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Workforce Requirements for LNG Plant Operations

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2,400 permanent operations workers will be required for the Northwest region by 2018 - 2020


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Top Ten Operations-related Jobs (Current)

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Top 10 Occupations Employed in B.C.’s Natural Gas Operations (2012)

1. Oil and gas field workers, labourers and operators

2. Supervisors, oil and gas drilling and services

3. Operators including plant, process and pipeline

4. Truck drivers

5. Millwrights and machinists

6. Heavy equipment operators

7. Primary production managers/drilling coordinators

8. Welders

9. Steamfitters and pipefitters

10. Petroleum engineers

• B.C. currently has a mature upstream gas industry with more than 13,000 workers

• Numbers will expand as LNG projects come on-stream


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B.C. Natural Gas Workforce Strategy Framework


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Strategy 1: Communicate up-to-date labour market and career information


Action

• Produce regular, realistic labour market and career information for natural gas construction and operations

• Develop labour market information on indirect jobs

• Produce labour market information for industrial construction

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Strategy 2: Address the barriers to local labour force participation – focus on under-represented groups


Action

• Expand school-to-work mechanisms to improve graduation rates and prepare youth for natural gas employment

• Develop an entry-level “Working in the Natural Gas Industry” program

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Strategy 3: Develop the skills and qualifications required for construction and operations


Action

• Develop an enhanced apprenticeship training model for construction projects and ongoing operations

• Develop an expanded Skill & Qualification Matrix to transfer workers into the natural gas sector from other sectors

• Develop occupational standards and provincial qualification for labourer/helper position

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Strategy 4: Develop the capacity of local businesses


Action

• Provide training to help businesses participate in procurement processes

Strategy 5: Source and relocate workers from other parts of B.C., Canada and the world

Action

• Conduct information sessions on employment opportunities and requirements for in-demand occupations

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Strategy 6: Offer work arrangements that support workers to rotate into the region for temporary and permanent work


Action

• Apply best practices and lessons learned for worker relocation, fly-in & fly-out, rotational work and use of temporary workers

www.petrohrsc.ca30 Funded in part by the Government of Canada

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tackling the lng skills shortage: how canadian lng developers can secure the skilled labour needed

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