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January 20-22, 2014
Cannexus 2014
Rowena Sampang

Senior Advisor, Communications

Petroleum Human Resources Council of Canada (a division of Enform)
Agenda
•
•

•

•

Introduction
– About the Petroleum HR Council
Overview of Canada’s Oil and Gas Industry
– How the Petroleum Industry Works
– Career Options
Labour Market Outlooks: Key Findings and Analysis
– Current Oil and Gas Workforce
– Employment and Hiring Outlook
– Projected Labour and Skill Shortages
Resources
About the Petroleum HR Council
The primary resource to address human resource issues in the petroleum industry.
• Proactively seek solutions through collaborative partnerships
• Anticipate the evolving needs of the industry
• A catalyst for change
Key priorities of the Council:
• Labour Market Information (LMI)
• Careers in Oil and Gas
Other workforce development projects:
• Federation of Saskatchewan Indian Nations (FSIN) Training & Employment in Oil and
Gas
• General Safety Orientation (eGSO) Marketing and Dissemination
• Oil Sands Learning Network
Petroleum HR Council – a division of Enform
Effective April 1, 2013, the Petroleum HR Council became a division of Enform:
Petroleum HR Council’s human resources services
+
Enform’s safety and training services
=
One integrated national entity serving Canada’s oil and gas industry

About Enform:
• The safety association for Canada’s upstream oil and gas industry
• Represents all six sectors of the industry
• The primary resource and advocate for improving the industry’s safety performance
Today we are going to look at careers in…
Oil and Gas

…and we we‘re not just talking about
this

…or this
What is Petroleum?
When we’re talking about petroleum, we’re talking about natural gas and oil.
Natural Gas

Oil
Canada’s Oil & Gas Industry

•

3rd largest natural gas producer

•

6th largest crude oil producer (rank increasing with oil sands)

•

Employs about 550,000 people in Canada (directly and indirectly)

•

Energy is now Canada’s largest export sector (took over from
automobile industry in 2003)

•

Industry payments to governments: $18 Billion

•

Over 6,000 products we use everyday are made from petroleum

•

Long history: first well in Canada was in 1858
Oil & Gas in Canada

Western Canadian
Sedimentary Basin

Map: Canadian Centre for Energy Information
How does the Oil & Gas Industry Work?

Upstream

Midstream

Downstream
Upstream

•
•

Find it
Extract it
Midstream

•
•

Move it
Store it

Photo: Canaport LNG
Downstream

Making it useful for
consumers
• Refineries
• Petrochemical companies
• Natural gas distribution
utilities
• Then sell it!

Photos: Suncor
Career Options
What kind of careers are there?
•
•
•
•
•

1,000+ companies
Identify drilling prospects
Acquire land & mineral rights
Conduct public involvement
Contract service companies

Exploration &
Production
What kind of careers are there?
Seismic Careers
• Surveyors
• Line Clearers
• Seismic Drilling Crews
• Data Acquisition & Recording
Resource:
• Canadian Association of Geophysical
Contractors (CAGC) – www.cagc.ca

Photos: Technicoil & Halliburton

Services
What kind of careers are there?
Drilling & Completions Careers
•

Drilling Rig Crews
–
–
–
–

•

Leasehands (Roustabout), Floorhands (Roughnecks)
Rig Technicians, Motorhands, Derrickhand, Driller
Rig Managers
www.rigtech.ca

Service Rig Crews
- Floorhands (Roughnecks), Derrickhand
- Operators (Driller)
- Rig Managers
- www.servicerigdrive.ca

•

Resources:
- Canadian Association of Oilwell Drilling
Contractors (CAODC) - www.caodc.ca
Photos: Technicoil & Halliburton

Services
What kind of careers are there?
Petroleum Services Careers
•
•
•
•
•
•
•
•
•
•

Cementing Helper
Truck Driver
Fracturing Operator
Rigger
Snubber
Well Testing Assistant
Wireline Operator
Safety trainer
Environmental management
Waste treatment, recycling and disposal

• Resources:
- Petroleum Services Association of Canada
www.psac.ca

Photos: Technicoil & Halliburton

Services
A Closer Look at the Oil Sands Sector
Oil sands operations sector:
Extraction, production and upgrading
of bitumen
Bitumen:
Heavy, viscous form of crude oil,
often found in oil sand deposits
Operations Type
A Closer Look at Pipelines

Source: Canadian Energy Pipeline Association
What kind of careers are there?
•
•
•
•

Construction
Testing
Management
Public involvement

Pipelines

Photos: Spectra Energy & CEPA
What is the future of Employment in Oil
and Gas?
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
HR Trends and Insights: Provide intelligence on current and shortterm labour market conditions and HR trends within Canada’s oil and
gas industry.
To download any of these products, visit
http://www.careersinoilandgas.com/labour-marketinformation/reports/
Labour Market Outlooks: Overview of Scope and Methodology
Labour Demand Projections
• Employment and hiring outlooks
• Available for total industry and by:
– Sector
– Province
– Core and “other” occupations
• Occupational requirements are correlated to employment drivers, which
vary by sector:
– Oil and gas services and conventional E&P
– Oil sands operations
– Pipelines
Labour Supply Projections
• Available for industry total and by core occupation
• Take into account two sources of labour supply:
– New entrants
– In-mobility labour supply
Oil and Gas Industry Activity – Two Scenarios
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.

Market diversification occurs and Canadian producers
supply international markets.

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

• Debottleneck and expansion of oil pipelines
• Development of LNG export facilities and pipelines
Current Oil + Gas Workforce
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.
Hiring Outlook for Each Sector
Employment Impacts of Oil and Gas Investment and Activities
to 2022
Investments and activities by the oil and gas industry benefit all
Canadians.
Hot Careers and Lots of Them!
Provincial Analysis
Top 10 Jobs in Canada’s Oil and Gas Industry

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

*Net hiring requirements = hiring due to industry activity + age-related attrition
(excludes non-retirement turnover)
Top 10 Jobs in the Oil Sands
TOP TEN OIL SANDS OCCUPATIONS WITH
GREATEST NET HIRING REQUIREMENTS
TO 2022 (# of job openings)
Total Oil Sands (22,500)
1

Power engineers (steam-ticketed operators)

3,985

2

Heavy equipment operators

2,295

3

Petroleum engineers

1,090

4

Engineering managers

1,025

5

Facility operation and maintenance managers

975

6

Heavy-duty equipment mechanics

785

7

Primary production managers

710

8

Instrumentation technicians

575

9

Mechanical engineers

550

10 Industrial electricians

500
Occupational Labour Shortages
•

Chemical engineering technologists

•

Mechanical engineering technologists

•

Chemical engineers

•

Mechanical engineers

•

Civil engineers

•

Millwrights and machinists

•

Crane operators

•

Mining engineers

•

Drafting technologists and technicians

•

•

Drilling coordinators/production managers

Non-destructive testers and inspection
technicians

•

Electrical/instrumentation engineers

•

•

Environmental technicians

Oil and gas drilling, servicing, and related
labourers

•

Geologists and geophysicists

•

Oil and gas well drillers, servicers, testers, and
related workers

•

Heavy equipment operators

•

•

Heavy-duty equipment mechanics

Oil and gas well drilling workers and service
operators

•

Industrial electricians

•

Petroleum engineers

•

Industrial engineering and manufacturing
technologists and technicians

•

Petroleum/mining/geological engineering
technologists

•

Inspectors in public and environmental health
and safety

•

Power engineers (steam-ticket required)

•

Project engineers

•

Purchasing agents and officers

•

Steamfitters and pipefitters

•

Supervisors, oil and gas drilling and service

•

Truck drivers

•

Welders

•

Instrumentation engineering technologists

•

Instrumentation technicians

•

Insulators
Demand-driven Workforce Solutions
Tips for Counselling Job Seekers
Tips for job seekers interested in the oil and gas industry:
• Understand the industry and the different sectors
• Research oil and gas careers
• Get your resume and cover letter ready
• Practice your interviewing skills
• Understand your transferrable skills
• Research companies in advance
• Find companies through oil and gas industry associations (member listing) or
directories
• Be willing to re-locate (do your research first!)
• Network and talk to people that work in oil and gas
• Check local oil and gas industry associations
• Follow industry and business news for significant energy projects
Resources
Careers in Oil + Gas – www.careersinoilandgas.com
Job Board
Choose Your Future – Career Quiz
Day in the Life
Occupational Information
Rich With Potential – Career Practitioner Guide
Social Media Initiatives – Facebook.com/careersinoilandgas
Social Media Initiatives – Twitter @careersinoandg
COG E-Newsletter
Council E-Newsletter
Labour Market Reports
Enform – www.enform.ca
For more information
Visit us at booth #13!
Check out www.careersinoilandgas.com to
sign up for our e-Newsletter

Follow us @careersinoandg

Like us www.facebook.com/careersinoilandgas

www.slideshare.net/PetroHRCouncil

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Cannexus14 Presentation

  • 1. January 20-22, 2014 Cannexus 2014 Rowena Sampang Senior Advisor, Communications Petroleum Human Resources Council of Canada (a division of Enform)
  • 2. Agenda • • • • Introduction – About the Petroleum HR Council Overview of Canada’s Oil and Gas Industry – How the Petroleum Industry Works – Career Options Labour Market Outlooks: Key Findings and Analysis – Current Oil and Gas Workforce – Employment and Hiring Outlook – Projected Labour and Skill Shortages Resources
  • 3. About the Petroleum HR Council The primary resource to address human resource issues in the petroleum industry. • Proactively seek solutions through collaborative partnerships • Anticipate the evolving needs of the industry • A catalyst for change Key priorities of the Council: • Labour Market Information (LMI) • Careers in Oil and Gas Other workforce development projects: • Federation of Saskatchewan Indian Nations (FSIN) Training & Employment in Oil and Gas • General Safety Orientation (eGSO) Marketing and Dissemination • Oil Sands Learning Network
  • 4. Petroleum HR Council – a division of Enform Effective April 1, 2013, the Petroleum HR Council became a division of Enform: Petroleum HR Council’s human resources services + Enform’s safety and training services = One integrated national entity serving Canada’s oil and gas industry About Enform: • The safety association for Canada’s upstream oil and gas industry • Represents all six sectors of the industry • The primary resource and advocate for improving the industry’s safety performance
  • 5. Today we are going to look at careers in… Oil and Gas …and we we‘re not just talking about this …or this
  • 6. What is Petroleum? When we’re talking about petroleum, we’re talking about natural gas and oil. Natural Gas Oil
  • 7. Canada’s Oil & Gas Industry • 3rd largest natural gas producer • 6th largest crude oil producer (rank increasing with oil sands) • Employs about 550,000 people in Canada (directly and indirectly) • Energy is now Canada’s largest export sector (took over from automobile industry in 2003) • Industry payments to governments: $18 Billion • Over 6,000 products we use everyday are made from petroleum • Long history: first well in Canada was in 1858
  • 8. Oil & Gas in Canada Western Canadian Sedimentary Basin Map: Canadian Centre for Energy Information
  • 9. How does the Oil & Gas Industry Work? Upstream Midstream Downstream
  • 12. Downstream Making it useful for consumers • Refineries • Petrochemical companies • Natural gas distribution utilities • Then sell it! Photos: Suncor
  • 14. What kind of careers are there? • • • • • 1,000+ companies Identify drilling prospects Acquire land & mineral rights Conduct public involvement Contract service companies Exploration & Production
  • 15. What kind of careers are there? Seismic Careers • Surveyors • Line Clearers • Seismic Drilling Crews • Data Acquisition & Recording Resource: • Canadian Association of Geophysical Contractors (CAGC) – www.cagc.ca Photos: Technicoil & Halliburton Services
  • 16. What kind of careers are there? Drilling & Completions Careers • Drilling Rig Crews – – – – • Leasehands (Roustabout), Floorhands (Roughnecks) Rig Technicians, Motorhands, Derrickhand, Driller Rig Managers www.rigtech.ca Service Rig Crews - Floorhands (Roughnecks), Derrickhand - Operators (Driller) - Rig Managers - www.servicerigdrive.ca • Resources: - Canadian Association of Oilwell Drilling Contractors (CAODC) - www.caodc.ca Photos: Technicoil & Halliburton Services
  • 17. What kind of careers are there? Petroleum Services Careers • • • • • • • • • • Cementing Helper Truck Driver Fracturing Operator Rigger Snubber Well Testing Assistant Wireline Operator Safety trainer Environmental management Waste treatment, recycling and disposal • Resources: - Petroleum Services Association of Canada www.psac.ca Photos: Technicoil & Halliburton Services
  • 18. A Closer Look at the Oil Sands Sector Oil sands operations sector: Extraction, production and upgrading of bitumen Bitumen: Heavy, viscous form of crude oil, often found in oil sand deposits
  • 20. A Closer Look at Pipelines Source: Canadian Energy Pipeline Association
  • 21. What kind of careers are there? • • • • Construction Testing Management Public involvement Pipelines Photos: Spectra Energy & CEPA
  • 22. What is the future of Employment in Oil and Gas?
  • 23. 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 HR Trends and Insights: Provide intelligence on current and shortterm labour market conditions and HR trends within Canada’s oil and gas industry. To download any of these products, visit http://www.careersinoilandgas.com/labour-marketinformation/reports/
  • 24. Labour Market Outlooks: Overview of Scope and Methodology Labour Demand Projections • Employment and hiring outlooks • Available for total industry and by: – Sector – Province – Core and “other” occupations • Occupational requirements are correlated to employment drivers, which vary by sector: – Oil and gas services and conventional E&P – Oil sands operations – Pipelines Labour Supply Projections • Available for industry total and by core occupation • Take into account two sources of labour supply: – New entrants – In-mobility labour supply
  • 25. Oil and Gas Industry Activity – Two Scenarios 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. Market diversification occurs and Canadian producers supply international markets. • Moderate increases to conventional oil, oil sands and liquids-rich natural gas activity • Debottleneck and expansion of oil pipelines • Development of LNG export facilities and pipelines
  • 26. Current Oil + Gas Workforce
  • 27. 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.
  • 28. Hiring Outlook for Each Sector
  • 29. Employment Impacts of Oil and Gas Investment and Activities to 2022 Investments and activities by the oil and gas industry benefit all Canadians.
  • 30. Hot Careers and Lots of Them!
  • 32. Top 10 Jobs in Canada’s Oil and Gas Industry 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 *Net hiring requirements = hiring due to industry activity + age-related attrition (excludes non-retirement turnover)
  • 33. Top 10 Jobs in the Oil Sands TOP TEN OIL SANDS OCCUPATIONS WITH GREATEST NET HIRING REQUIREMENTS TO 2022 (# of job openings) Total Oil Sands (22,500) 1 Power engineers (steam-ticketed operators) 3,985 2 Heavy equipment operators 2,295 3 Petroleum engineers 1,090 4 Engineering managers 1,025 5 Facility operation and maintenance managers 975 6 Heavy-duty equipment mechanics 785 7 Primary production managers 710 8 Instrumentation technicians 575 9 Mechanical engineers 550 10 Industrial electricians 500
  • 34. Occupational Labour Shortages • Chemical engineering technologists • Mechanical engineering technologists • Chemical engineers • Mechanical engineers • Civil engineers • Millwrights and machinists • Crane operators • Mining engineers • Drafting technologists and technicians • • Drilling coordinators/production managers Non-destructive testers and inspection technicians • Electrical/instrumentation engineers • • Environmental technicians Oil and gas drilling, servicing, and related labourers • Geologists and geophysicists • Oil and gas well drillers, servicers, testers, and related workers • Heavy equipment operators • • Heavy-duty equipment mechanics Oil and gas well drilling workers and service operators • Industrial electricians • Petroleum engineers • Industrial engineering and manufacturing technologists and technicians • Petroleum/mining/geological engineering technologists • Inspectors in public and environmental health and safety • Power engineers (steam-ticket required) • Project engineers • Purchasing agents and officers • Steamfitters and pipefitters • Supervisors, oil and gas drilling and service • Truck drivers • Welders • Instrumentation engineering technologists • Instrumentation technicians • Insulators
  • 36. Tips for Counselling Job Seekers Tips for job seekers interested in the oil and gas industry: • Understand the industry and the different sectors • Research oil and gas careers • Get your resume and cover letter ready • Practice your interviewing skills • Understand your transferrable skills • Research companies in advance • Find companies through oil and gas industry associations (member listing) or directories • Be willing to re-locate (do your research first!) • Network and talk to people that work in oil and gas • Check local oil and gas industry associations • Follow industry and business news for significant energy projects
  • 38. Careers in Oil + Gas – www.careersinoilandgas.com
  • 40. Choose Your Future – Career Quiz
  • 41. Day in the Life
  • 43. Rich With Potential – Career Practitioner Guide
  • 44. Social Media Initiatives – Facebook.com/careersinoilandgas
  • 45. Social Media Initiatives – Twitter @careersinoandg
  • 50. For more information Visit us at booth #13! Check out www.careersinoilandgas.com to sign up for our e-Newsletter Follow us @careersinoandg Like us www.facebook.com/careersinoilandgas www.slideshare.net/PetroHRCouncil

Editor's Notes

  1. Nine “key job families”A job for everyone!Key job family = A series of related jobs distinguished by levels of knowledge, skills, abilities and other factors. e.g., field workers, operators, trades, technologists and technicians.Employment over the next decade may increase between nine and 20 per cent respectively, with employment levels reaching 213,500 to as much as 233,900 by 2022.
  2. 80% office vs 20% on-site (plant, facility – can be remote, but not the same as service field work)These are the “owners” – ie. Producing companies that put capital investment towards projects
  3. There are two different methods of producing oil from the oil sands: open-pit mining and in situ. Bitumen that is close to the surface is mined. Bitumen that occurs deep within the ground is produced in situ using specialized extraction techniques. Oil sands activity can be broken down into three operation types:Mining – activities to explore and recover oil sands reserves through mining from open pits – use heavy hauler trucks - Initially, bitumen was extracted using huge shovels and trucks and open-pit mining techniques. However, only 20 per cent of Canada’s known oil sands resource is close enough to the surface to be mined.In situ – activities to explore and recover oil sands reserves in place, or “in situ”, by drilling wells – SAGD process - Other 80 per cent of Canada’s oil sands resource is deeper or in situand requires different extraction technologies, such as steam-assisted gravity drainage (SAGD), to bring the bitumen to the surface. Steam is used in SAGD to soften the bitumen so it can be pumped to the surface. SAGD is similar to conventional oil production - uses horizontal drilling and wells.Upgrading – process manufacturing operation that converts bitumen into a product similar to light conventional oil. It also produces a number of other useful by-products, such as sulphur which is used in the manufacturing of fertilizers, pharmaceuticals and other products.
  4. Employment and hiring outlooks:Hiring due to industry activity, age-related attrition and non-retirement turnoverSector: oil and gas services, exploration and production (conventional E&P and oil sands) and pipelinesProvince: British Columbia, Alberta, Saskatchewan and rest of CanadaOil and gas services sector includes the following: Drilling and completion services, including drilling and service rig activities; Geophysical services (also known as seismic), including surveying, permitting and reclamation, line construction, drilling and data acquisition and Petroleum services, including well services, oilfield construction and maintenance, production and transportation services.Exploration and production (E&P) sector:Conventional E&P activity encompasses the exploration and production of oil and gas for all onshore and offshore conventional and unconventional reserves (except oil sands) including: liquids-rich natural gas, tight oil and gas, shale oil and gas, heavy oil, etc. Natural gas processing is also included as part of this sub-sector.Oil sands sector involves the extraction, production and upgrading of bitumen. There are three types of oil sands activity: Mining: activities to explore and recover oil sands reserves through open pit mines; In situ: activities to explore and recover oil sands reserves in place or in situ, by drilling wells; and Upgrading: converting bitumen into a product with a lower density and viscosityPipeline sector involves the storage and mainline transmission of oil and gas. Oil and gas services and conventional E&P: oil and gas capital and operating expendituresOil sands operations: oil sands productionPipelines: oil and gas operating expendituresThe model starts with the industry’s historical share of Canada’s labour supply and then calculates the industry’s potential future labour supply based on its ability to attract workers (by its offer of employment or labour demand) and competition from other industries for Canada’s shrinking labour force. Age-related attrition of potential labour supply is also taken into account. Two sources of labour supply are considered: New entrants: workers entering the labour force for the first timeIn-mobility: workers who are changing careers partway through their work life, including changing industries, occupations and immigration into Canada (not international recruitment or temporary foreign workers)Consider industry’s historical share of Canada’s labour supply and ability to attract workers in the futureProjected Labour and Skill ShortagesAvailable for industry total and by core occupation Labour shortages exist when projected unemployment rates fall below the “balanced” unemployment rateBalanced rate is set at 6 per cent for industry total but differs for each occupationLabour supply-demand gaps are calculated by comparing the petroleum industry’s projected unemployment rates to the balanced unemployment rate (which is pegged at 6 per cent). Labour shortages are also assessed for each core occupation. Balanced unemployment rates for industry occupations are estimated using historical information and account for frictional unemployment (i.e. people changing jobs) as well as structural unemployment (i.e. workers’ skills, geographic location, etc. not aligning with industry requirements). These rates vary by occupation:Industry-unique occupations tend to have lower balanced unemployment rates at 3% to 4%.Occupations that are employed across a number of industries have higher rates at 4% to 5%Seasonal occupations have the highest rates at 7% to 8%.Developing occupational employment projections for each sector:Oil and gas services and conventional E&P: workforce needs are driven by oil and gas capital and operating expendituresActual expenditure information from Canadian Association of Petroleum Producers (CAPP)Capital and operations expenditure forecasts were developed by FirstEnergy Capital CorporationOil sands operations: oil sands productionActual and forecasted production are sourced from CAPP’s latest Canadian Crude Oil Forecast and Market OutlookPipelines: conventional E&P and oil sands operating expenditures The model also assumes an annual one per cent workforce productivity growth which decreases employment requirements to meet the “employment drivers.”
  5. In Newfoundland and Labrador, the Hebron offshore oil project moved into the development and construction phase, and is expected to be in production in 2017.Rising energy production in the United States has brought Canada’s oil and gas industry to a critical turning point. Industry and governments are looking to solutions for market diversification and an increased global presence for its oil and natural gas, but there is a relatively short window of opportunity. A few natural gas focused companies announced employee layoffs in 2013.Market diversification and a greater global presence is critical to sustainable growth within Canada’s oil and gas industry. These two scenarios are based on a range of potential oil and gas prices, capital and operating expenditure forecasts, and oils sands production forecasts.Oil and gas price and CAPEX and OPEX forecasts provided by FirstEnergy Capital CorporationOil sands production forecast, as outlined in CAPP’s Crude Oil Market Outlook (2012)Pricing Forecast (developed by FirstEnergy Capital Corporation to generate expenditure forecasts): Oil and gas price forecasts are the same for both the Low Growth and Expansion scenarios. Activity levels and pace of expansion distinguishes the two scenarios based on realization of market diversification.West Texas Intermediate (WTI) oil price is forecasted to be between US$93.50 and $110 for 2013 - 2016 and then increase to US$115 to 2022. To generate expenditure forecasts, FirstEnergy Capital Corporation took into account pricing discount/differential for Canadian oil. Henry Hub (Nymex) gas price forecasted to remain below US$5 until 2015 when it increases and stays as US$5.50 for the duration of the forecast period. LNG exports are not expected to have an impact on North American natural gas price as long-term export contracts will be negotiated independently and based on a number of factors beyond the price of natural gas including processing and transportation costs.
  6. Hiring Due to Age-Related AttritionOver the next decade, 23 per cent of the industry’s workforce will become eligible to retire. The impact will be considerable, both from loss of experience and skill sets, and has repercussions for workforce development and productivity. Between 44,200 and 45,300 workers are eligible to retire in the Low Growth and Expansion scenarios respectively, and will drive the need for industry to hire and replace these workers due to age-related attrition.Hiring Due to Workforce Competition/Non-Retirement TurnoverThe oil and gas industry is already dealing with labour supply/demand gaps. There is no relief in sight with projected industry unemployment rates for both scenarios falling below a balanced labour market for the duration of the projection period.The intense competition for talent within and outside of the industry creates additional job openings. A 3 per cent non-retirement turnover significantly increases the number of job vacancies industry will need to fill, adding 62,600 and 65,800 job openings in the Low Growth and Expansion scenarios respectively.Non-retirement turnover rate was assumed to be 3% overall (industry-validated figure)Non-retirement turnover varies by sector and by occupationCompanies are reporting turnover rates exceeding 50 percent for entry-level drilling and service occupations As a result, total hiring outlook ranges between 125,000 and 150,000 to meet industry activity, age-related attrition and non-retirement turnover over the next decade. This is equivalent to 64 to 77 per cent of current industry employment levels. Some occupations, such as entry-level oil and gas services positions, experience considerably higher unemployment rates. Innovative recruitment strategies are needed for companies to remain competitive and sustain production levels.
  7. This report considers two potential scenarios:Low Growth: market diversification does not occur and industry growth is driven by North American demand for oil and natural gas from industrial uses, power generation and transportation. Expansion: market diversification occurs and Canadian oil and gas producers supply international markets. ie. LNG export facilities and associated pipelines. All sectors net hiring (expansion scenario) = 84,050Oil sands net hiring (expansion scenario) = 22,200Oil and Gas Services - Employment within the services sector (i.e., drilling and completions, geophysical, and petroleum services) is projected to increase in either scenario. Growing demands for production from oil sands, shale oil and gas and the development of the LNG export sector.Exploration and Production (E&P) - Great opportunities exist around LNG export development, oil sands developments and expanded offshore activities. Project are very expensive and require long lead times, lots of capital investment.Pipelines - Several thousand kilometers of new pipelines are required to reach new markets. Workforce for construction phase of the pipeline expansion might be significant, but not be as intensive as other sectors. Age-related attrition will be a key concern for the sector.Note: The operating expenditures are estimated by FirstEnergy using CAPP’s forecast for oil and gas production.  CAPP’s forecasts do not include any specific assumptions about pipelines except for assuming that there will be enough pipeline capacity to carry all of the oil and gas produced to consumers. That means that they don’t include (or exclude) any pipeline developments specifically. The short answer would be that we don’t consider specific pipeline projects when we produce our forecasts.  We just assume that whatever pipeline capacity is needed will be there when needed.
  8. RoC - Industry employment within the rest of Canada is estimated at 12,200 workers in 2012.The majority of oil and gas activity in the rest of Canada takes place in:Manitoba oil production from the Bakken shale oil formationNova Scotia offshore natural gasNewfoundland and Labrador offshore oil2012 employment = 12,200 workersLow growth scenario net hiring = 2,900 openings (24 percent of 2012 employment) Expansion scenario net hiring = 3,800 openings (31 percent of 2012 employment)SK - In 2012, Saskatchewan employed approximately 11,600 of Canada’s oil and gas workforce. Similar to BC, investments and activities by the oil and gas industry in SK also generates jobs in head office positions, which are primarily based in Alberta. Approximately 40% of jobs generated by activities in the province are actually for head office roles and were therefore allocated/added to Alberta employment numbers. 2012 employment = 11,600 workersLow growth scenario net hiring = 2,600 openings (22 percent of 2012 employment) Expansion scenario net hiring = 3,500 openings (30 percent of 2012 employment)AB - Alberta’s oil and gas industry directly employed close to 160,000 workers in 2012. In addition to the oil and gas field and operations workforce employed across the province, Alberta is home to the majority of the industry’s head office jobs. Approximately 90% of the oil and gas jobs in the province will be generated due to investments and activities in Alberta. The remaining 10% will be generated due to activities in BC and SK, and are for head office roles. 2012 employment = 160,000 workersLow growth scenario net hiring = 53,800 openings (34 percent of 2012 employment) Expansion scenario net hiring = 72,700 openings (45 percent of 2012 employment)BC - Foreign investment and the province’s liquids-rich natural gas plays have kept BC’s industry busier than expected, especially considering the lingering low natural gas price environment. However, the province is at a turning point as BC and the rest of Canada wait to see if the development of a LNG export sector proceeds. In 2012, the province employed a little over 12,000 of Canada’s oil and gas workforce. 2012 employment = 12,000 workersLow growth scenario net hiring = 3,100 openings (26 percent of 2012 employment) Expansion scenario net hiring = 4,100 openings (34 percent of 2012 employment)
  9. We are providing net hiring requirements by occupation simply because non-retirement turnover was standardized at 3% overall and therefore, best to be excluded from the occupational hiring outlook and analysis. Non-retirement turnover usually varies by sector and by occupation. For example, companies are reporting turnover rates exceeding 50 per cent for entry-level drilling and service occupations, which would increase hiring activity for these occupations by as much as 55,000 (refer to page 21 of full report for the detailed analysis). Notes: Net hiring requirements should be regarded as minimum hiring requirements as it does not account for non-retirement employee turnover. Numbers have been rounded for readability.
  10. 22,500 (net hiring) = 15,950 (industry activity) + 6,550 (age-related attrition) When you add in 3% turn-over: 9,350 + 22,500 = 31,850Power engineers – needed for the oil sands - operators who require power engineering certification or what is also known as a steam ticket. Responsible for the safe and efficient operation and maintenance of industrial equipment such as boilers, steam and gas turbines, generators, gas and diesel internal combustion engines, pumps, condensers, compressors, pressure vessels and related controls. In large industrial or building complexes, they also may be responsible for heating, air-conditioning, ventilation, refrigeration, fire systems and building control systems. (ALIS) Greatest need is for 3rd class power engineers.
  11. Occupations with ten-year average projected unemployment rates below the balanced rate (both scenarios):“labour shortages” - lack of workers from an occupational perspective. Some occupations will have enough workers (quantitative balance), but there may be gaps in the skills and experience the oil and gas industry is looking for. This is typically referred to as “skill shortages.” The occupations listed have ten-year average projected unemployment rates that fall below the occupation’s balanced unemployment rate in both scenarios.
  12. Given the global competitiveness for skilled workers, industry must continue working with government, education and training institutions and other labour supply stakeholders to increase the talent pool for the oil and gas industry.Temporary Foreign WorkersThe oil and gas industry, considering direct employment, is not a significant user of the TFW program because of the permanent nature of the jobs and the unique skill sets required (i.e. oil and gas specific). While there are some occupations (such as trades) where TFW's would be appropriate, the planning and application timelines along with the more pressing needs for long term workers make permanent immigration programs more in line with the needs of the sector. Exceptions: Petroleum Services sector (petroleum field services, drilling services and seismic services) cannot easily take advantage of permanent immigration programs because most of the occupations are seasonal and very cyclically sensitive and made up of SME's and less sophisticated companies, therefore, they do not have the planning horizons or resources to access the TFW program in a significant way. Our LMI – identifies labour demand and key occupations where shortages are expected - is regularly used to support requests for changes to the TFW and permanent immigration programs to meet the needs our sector. For example, input into the Occupations Under Pressure lists. The sense in the sector, is that many of the recent changes have addressed the highest priority needs and that we need to focus on connecting with Canadians. I think the biggest change the oil and sector would look for is broader usage of "group of employers" LMO's - this would benefit companies that are smaller (and less sophisticated) and have difficulty planning ahead and would enable LMO applications to be done on a sub-sector basis.Having said that, the sectors that are critical to supporting oil and gas industry operations and development, would rely more heavily on the TFW program. These are: construction, turnaround maintenance and manufacturing. These sectors are primarily involved in long term, high cost capital projects so the planning horizon is much longer and the requirement for trades people and professionals is significant. The ratio of employees in these sectors to direct employment in Oil and Gas is easily 4:1, therefore the TFW usage stats should reflect this and more.
  13. Industry associations:CAGC – Canadian Association of Geophysical Contractors;CAODC – Canadian Association of Oilwell Drilling Contractors; CAPP – Canadian Association of Petroleum Producers; CEPA – Canadian Energy Pipeline Associations; EPAC – Explorers and Producers Association of Canada; and PSAC – Petroleum Services Association of Canada.
  14. Careers in Oil + Gas.com has plenty of information and resources about working in the Canadian oil and gas industry. If you are looking for employment, you can: •             Search for job postings in Canada’s oil and gas industry•             Sign up for a job seeker account to receive career alerts•             Click on the Employer ads featured on the left side of this website•             Check out our Featured Employers page where you'll find a listing of companies•             Like us on Facebook and follow us on Twitter for the latest info •             Sign-up for our Careers in Oil + Gas e-Newsletter for news about the industry, job search tips, etc. •             Take our Career Quiz to learn about careers that fit your preferences•             Check out our Job Seeker Tools page and FAQ page for job search tips and resources•             Find out what the hiring trends are and in-demand jobs in the oil and gas industry
  15. Have you ever wondered what it would be like to have a career in oil and gas? Day in the Life profiles are exactly that, profiles of real people that have a career in oil and gas. Get the whole story from the people in the field, as they tell you about their typical days on the job, what they love about their career and how they got started.
  16. Don’t know where you fit in a career in oil and gas? Our occupational summaries are everything you need to know about work, education and career paths for specific occupations in oil and gas.
  17. Enform is the health and safety association for Canada’s upstream oil and gas industry. The oil and gas industry created Enform as a not-for-profit organization dedicated to meeting industry’s safety needs.  Industry associations:CAGC – Canadian Association of Geophysical Contractors;CAODC – Canadian Association of Oilwell Drilling Contractors; CAPP – Canadian Association of Petroleum Producers; CEPA – Canadian Energy Pipeline Associations; EPAC – Explorers and Producers Association of Canada; and PSAC – Petroleum Services Association of Canada. Top 5 Courses (by Enrolment):  H2S Alive® is Enform’s premier one-day course aimed at workers in the petroleum industry who could be exposed to hydrogen sulphide (H2S), also known as ‘sour gas.’ The primary focus is to create constant awareness with industry approved safety procedures and techniques. The combination of theory briefings coupled with in-class equipment training produces a highly effective and results-orientated approach. Annually over 100,000 workers take H2S Alive® training.Petroleum Safety Training (PST) is specifically designed and tested to meet the demanding requirements of the oil and gas industry. The course is a multimedia program featuring video, audio and interactive lessons, designed to introduce workers to safety in the oil and gas industry. PST is the most popular computer-based course offered at Enform.General Oilfield Driver Improvement (GODI) is Enform’s suite of driving training courses designed to provide oilfield truck drivers with the knowledge to improve their on-road and off-road safe driving behaviors. Driving related incidents are the leading cause of injury and loss in the oil and gas industry. Wildlife Awareness is an online course that promotes safe co-existence with wildlife by providing field workers with basic knowledge for working in remote and wilderness habitats. Well Service Blowout Prevention is intended for service rig operators, service rig managers, wellsite supervisors, field foremen, production foremen and production engineers involved in well killing operations on the service rig.