Global petroleum show june 8 2016
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Labour Market Outlook for Canada's Oil & Gas Industry and Career Planning Resources
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Global petroleum show june 8 2016
- 1. Labour Market Outlook 2016 to 2020 for Canada’s Oil and Gas Industry June 8, 2016
- 2. Introductions 2 2 PRESENTERS Heather DeBoer Project Manager, Occupational Information and Tools Claudine Vidallo Team Lead, PetroLMI
- 3. Agenda • Overview of PetroLMI • Labour Market Outlook for Canada’s Oil and Gas Industry • Career Planning Resources • Questions and Answers 3
- 4. 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 labour market resources! 4
- 5. PetroLMI Key Stakeholders • Our key stakeholder is industry, however, we have many stakeholders using and/or financially supporting PetroLMI’s products and services: 5
- 7. Labour Market Outlook for Canada’s Oil and Gas Industry
- 8. “Retaining a skilled and innovative workforce 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.” 8 Labour Market Outlook 2016 to 2020 for Canada’s Oil and Gas Industry
- 9. Petroleum 101 The oil and gas industry is broadly grouped into three categories: • Upstream • Midstream • Downstream 9
- 10. 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. 10
- 11. 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 US. 11 “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
- 12. 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. • However, oil and gas companies may be challenged to attract new and previous workers as they may be less attracted to the industry following two years of contraction. 12
- 13. 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. 13
- 14. Oil and Gas Occupational Outlook to 2020 14 Occupational (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 TOP 10 OCCUPATIONS WITH THE GREATEST HIRING NEEDS IN CANADA’S OIL AND GAS INDUSTRY
- 15. Alberta’s Oil and Gas Hiring Outlook to 2020 • Alberta’s oil and gas industry is hit hard by the current downturn and is not expected to fully recover to 2014 levels during the forecast period. • Industry may still need to fill 35,200 to 41,600 job openings between 2017 and 2020 due to industry activity and age-related attrition. 15 Lower Scenario Higher Scenario Direct employment in 2016 141,860 147,490 Projected employment increase 2017 – 2020 +20,095 +26,070 Age-related attrition 2017 – 2020 15,120 15,560 Net hiring requirements 2017 – 2020 35,215 41,630
- 16. “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.” 16 Exploring LNG in Canada
- 17. 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. 17
- 18. 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 18
- 19. 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. 19
- 20. LNG Operations, Turnaround and Ongoing Maintenance Workforce Requirements • Although smaller in number compared to construction workforce needs, various roles are also required to operate as well as maintain the LNG facilities. 20
- 21. LNG Operations, Turnaround and Ongoing Maintenance Workforce Requirements • Although smaller in number compared to construction workforce needs, various roles are also required to operate and maintain an LNG facililty. 21
- 22. 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. 22
- 24. Raise Your Hand Do you find yourself faced with any of the following challenges when career or workforce planning? • Non-consolidated data or inconsistent and missing information • Time consuming search • Not knowing where to go to get information • Out-of-date information 24
- 25. Current Online Tools • The two most frequently used online tools are a basic Google Search and ALIS (Alberta Learning Information Service). • There is no consistent process or approach for conducting career profile research. • Stakeholder participants do not rely on offline tools, such as manuals, to aid them in their careers research. 25
- 26. Today’s Oil and Gas Worker Needs to… 26 • 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
- 27. Occupational Information and Tools Project • Updating and developing 90+ web-based occupational profiles and spotlights that range from upstream to midstream to LNG • Creating a first-of-its kind interactive career map, skills matrix and self-assessment tool using the occupational profiles • Developing a career practioners package 27
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- 34. QUESTIONS?
- 35. For more information Contact us at info@careersinoilandgas.com Visit careersinoilandgas.com Find us on social media @PetroLMI @CareersInOandG facebook.com/careersinoilandgas slideshare.net/PetroLMI
Editor's Notes
- PetroLMI, formerly the Petroleum Human Resources Council, merged with Enform in 2013. Our labour market data, knowledge and expertise also assists Enform in further aligning its training and safety services with industry needs. Our mandate is to collaborate with industry, government, educators and training agencies to support the development of a sustainable and productive oil and gas in Canada. Current and short-term HR trends and insights: Using data collected from industry and other sources, these reports provide current or short-term labour market conditions and human resources trends within industry. These could include workforce demographics and potential supply pools, in-demand jobs, hiring locations, or best practices for attracting and retaining workers. Labour market outlooks: Generated using a proprietary modelling system, these outlooks provide analysis and insight regarding longer-term employment requirements, hiring projections and labour supply for Canada’s petroleum industry. Career profiling: With the objective of reducing barriers to employment, PetroLMI develops profiles of current and future occupations within the petroleum industry that include working environments, education, skills and training requirements, as well as specialized tools to map career paths and measure skills and qualifications transferability.
- Careers in Oil + Gas website provides our resources and key industry information to those in workforce planning or who are planning and pursuing careers in the oil and gas industry.
- Our industry focus is on upstream and midstream operations – and the workforce directly employed within this two categories. In recent times however, we have responded to stakeholder requests to show a broader industry picture. An example would be showing workforce requirements in both operations, construction and turnaround and maintenance for oil sands. For sectors outside of our industry scope, we usually partner with other institutions that generate labour market information for the ‘oil and gas-related’ industries. Where the information does not readily exist from other sources, we have ventured into special research to serve our stakeholder’s needs. Such is the case for understanding Canada’s possible entry into the Liquefied Natural Gas (or LNG) sector (which falls under Downstream) and could have workforce implications in the entire Petroleum Industry value chain – from upstream, midstream to downstream – and beyond! We will be sharing key findings from our LNG workforce study during this presentation. But first… let’s shift our attention back to Canada’s upstream and midstream oil and gas sectors and review industry’s state today and what it may look like in the next 5 years…
- Chart on the left shows a $34 billion decrease in E&P spending between 2014 and 2015. Chart on the right shows direct job losses estimated during the same timeframe. The oil and gas industry responded with an unprecedented focus on reducing operating costs. In 2015, companies from across all sectors implemented a range of cost-cutting tactics to survive the lower price environment. Cutting capital and operating expenditures resulted in widespread layoffs of full-time staff and the termination of contractors and contingent workers. The majority of companies in the oil and gas sector implemented wage freezes or cuts across all levels of their organizations. They reduced benefits, bonuses and other perks, such as vehicle allowances. Discretionary spending on travel decreased while companies rolled back spending associated with worker camp accommodations and travel arrangements. In 2015, an estimated 28,000 or 12% of jobs were lost, leaving direct employment within the industry at 198,315 workers in 2015. Direct = workers directly employed by upstream and midstream industry specifically E&P (conventional and unconventional including oil sands), oil and gas services and pipeline companies. Does NOT include workers in indirect sectors (e.g., truck transportation, oil and gas construction, manufacturing, etc.) which were also impacted during this downturn.
- Neither industry activity nor employment will recover to 2014 levels during the forecast period. The oil and gas industry may be challenged to attract labour supply when a recovery does occur as they may be less attracted to the sector following two years of contraction. This is particularly true for trades workers, who have the flexibility to work in different industries and locations. New entrants, career changers or workers downsized from the oil and gas industry will also likely have found employment in other industries.
- Top 10 occs make up 40% of industry’s hiring needs.
- Alberta is the hub of Canada’s oil and gas industry and employs over three quarters of the direct workforce. Not surprisingly, the oil and gas industry within the province has been severely impacted by the current downturn. Over 20,000 job losses estimated in 2015. An additional 11,200 to 16,900 jobs projected to be lost this year.
- As a cleaner burning fuel source, natural gas is expected to replace an increasing amount of coal and diesel in power generation and reduce greenhouse gas emissions both nationally and internationally. In 2014, 100% of Canada’s natural gas exports went to the US (who in turn is decreasing its reliance on our oil and natural gas resources). To sustain or grow the industry, Canada will need to diversify markets by exporting to Asia and Europe. LNG (liquefied natural gas) facilities convert natural gas into liquid form by cooling it to about -162° Celsius. In a liquefied state, LNG takes up about 1/600th the volume of natural gas in its vapour state, making it more efficient to transport in specially designed cryogenic carriers to overseas markets.
- Six LNG-associated pipeline projects (some new, some expanded) have been announced in B.C. to connect natural gas produced in northeast B.C. with the LNG production facilities proposed on the province’s west coast. No new pipelines are proposed on the east coast.
- The scale of an LNG project will drive on-site construction labour demand. For an LNG facility, the size of the project is measured by the number and size of trains. For a pipeline, the number of pipeline segments that will be constructed will drive the number of workers that will be required. As the chart on the slide illustrates, the peak on-site construction workforce for a large two-train plant is projected to be approximately 5,240 workers. The peak on-site construction workforce for a medium two-train plant is projected to be approximately 3,300 workers. Labour demand peaks for both plants towards the end of the second year of their construction timelines. Assuming one pipeline project moves forward, on-site workforce requirements are projected to peak at about 4,260 workers in the third year of its construction timeline.
- Although the scale and number of trains impacts the number of on-site construction workers required to build an LNG plant, the composition of the workforce is relatively similar. Likewise, for pipeline construction, the length, or number of segments of pipeline, will determine how many workers are required, but the composition of the workforce remains the same. Both types of labour demand are dominated by construction trades helpers and labourers, as well as skilled trades.
- Operations: depending on plant size and technology used, between 200 and 350 direct positions (relatively smaller than construction needs). Key leadership and management team members may already be in place. Hiring for other operations jobs would ramp up 12 to 18 months in advance of operations to ensure that workers are adequately trained and available to assist with plant commissioning and start-up activities. Although LNG is an emerging industry sector in Canada, many of the occupations that are required for the day-to-day operations of the plant facilities are similar to other industry processing operations, including in situ oil sands, natural gas processing, upgrading and refining. Indirect jobs created in waste management, truck transportation, security, other services, etc. The development of an LNG sector would also increase the number of skilled trades workers required to maintain plants and to ensure that upstream natural gas production levels are sustained to support these facilities. In Canada’s high-cost operating environment, the reliability and safety of processing plants is imperative in order to minimize any unplanned facility outages and production downtime. Operating companies typically contract this maintenance work to third party providers. The same workers are required for the ongoing and turnaround maintenance of other industrial operations, including oil sands, mining, pulp and paper, petrochemical and power-generation plants.
- Operations: depending on plant size and technology used, between 200 and 350 direct positions (relatively smaller than construction needs). Key leadership and management team members may already be in place. Hiring for other operations jobs would ramp up 12 to 18 months in advance of operations to ensure that workers are adequately trained and available to assist with plant commissioning and start-up activities. Although LNG is an emerging industry sector in Canada, many of the occupations that are required for the day-to-day operations of the plant facilities are similar to other industry processing operations, including in situ oil sands, natural gas processing, upgrading and refining. Indirect jobs created in waste management, truck transportation, security, other services, etc. The development of an LNG sector would also increase the number of skilled trades workers required to maintain plants and to ensure that upstream natural gas production levels are sustained to support these facilities. In Canada’s high-cost operating environment, the reliability and safety of processing plants is imperative in order to minimize any unplanned facility outages and production downtime. Operating companies typically contract this maintenance work to third party providers. The same workers are required for the ongoing and turnaround maintenance of other industrial operations, including oil sands, mining, pulp and paper, petrochemical and power-generation plants.
- LNG development in B.C. (versus Eastern Canada( is expected to have the greater impact on Canada’s upstream and midstream sectors – this is because export facilities proposed for Eastern Canada and Quebec plan to use natural gas supply from the eastern United States – at least initially. A significant decline in capital and operating expenditures in B.C.’s natural gas industry occurred between 2014 and 2015 due to the combination of the economic downturn and ongoing delays of any financial investment decisions (FID) for LNG. Both factors have created uncertainty that limits investment through 2017. In 2015, B.C.’s upstream and midstream employment was estimated to be 10,580 – a drop of about 2,300 (-18%) jobs from 2014. While more job losses are expected through 2016, the province’s 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. This optimism is based on the assumption that construction of one large two-train LNG facility will be underway before the end of the forecast period.
- Excited to present to you the career planning resources we’ve been working on for the past year.
- A quick scan within the group… and I’d appreciate a quick show of hands for each challenge or issue you may have experienced when planning your career or perhaps simply assessing your options… You encounter non-consolidated or inconsistent data – or perhaps missing critical information to help guide decision-making? You conducted time-consuming research You weren’t sure or did not know where to get the information you need You come across outdated information
- In a needs assessment / market research conducted a year and a half ago, we found the following points when it comes to career research on the web.
- Many of today’s oil and gas workers need to be comfortable with technology (there’s some advantage these days if your youngster is a bit of a gamer), they may need to have more business acumen, be innovative, be able to negotiate, be good at problem solving, be skilled at reading, numeracy and communication. Many will need to be able to work with projects where there’s planning and execution and they need to be much more aware of regulations and compliance. This certainly isn’t true of all occupations but I think it gives you a sense of the kinds of competencies that the industry is moving towards.
- Enter the occ info and tools project… This project is multi-phased, multi-funded… delivering three key web-based outputs that feed interact with each other: 90+ occupational information including Competency Requirements based on 77 competencies for each occupation (feeds into a Skills Transferability Matrix) Online tool that allows for self-assessment or discovery of career options. Filters include education level, industry experience, work style preference and competencies (knowledge and skills). Career practitioners package that maps the XXX Completely available at www.careersinoilandgas.com by January 2017. Industry consultations helped provide direction to the project: Focus on transferable skills Interact with information in multiple ways Standardized approach
- Enter the Careers in Oil + Gas web tool – where info from each project deliverable interface and provide value to end-users. Allow me to demo the tool quickly but note that project research is still underway. This means that content or info you’re about to see is in draft stage and is meant to demo the tool only. The project deliverables and web tool will be completed by January 2017. (Click on image to be redirected to latest prototype however if there’s no Wifi, then click to the next page)
- The web tool gives you the ability to assess which occupations within the 90+ ones we are profiling may be a best for you. Filters are available on: Education Experience level Work styles Competencies including technical skills, leadership skills and behavior While you are selecting your responses to each filter, you will start to see the order of occupations listed change. This is the magic of the tool as it finds the occupations that best suit your selections by putting them at the top of the list. Think Expedia or any other travel search engine that allows you to filter results based on certain criteria! Once you have run your filters, you can then select up to 4 occupations to compare side-by-side in greater detail…. As shown on the next slide…
- This is where at a quick glance, you can assess the degree of your transferability based on qualifications and experience. Alternately, you can use the information to identify training and certification gaps.
- If you want to find out more about a certain occupation, you can direct yourself to the occupational profile. For those who are career transitioners, you may in fact opt to do a basic search for the occupation you are recently or currently into.
- And if you expand on the related careers, you will be presented a list of other occupations which have similar competencies that are deemed as critical or important as the occupation you are currently viewing.
- Spotlights are for XXX As mentioned, research is still underway for the project but we have started uploading occupational information as each is finalized. By January 2017, we expect to have all 90+ profiles and the tool available for use. So watch out for it!!!