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Overcoming the Challenges of Labour Shortages Arising from the 
Rise in Oil and Gas Development 
May 15, 2014 
Carla Campbell-Ott, Executive Director, Petroleum HR Council (a division of Enform) 
Funded in part by the Government of Canada and the Canadian Association of Petroleum Producers
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 
– Current Oil and Gas Workforce 
– Employment Outlook 
– Hiring Outlook 
– Projected Labour and Skill Shortages 
• Value-Added Analysis 
– Provincial Analysis 
– Full Employment Impacts of Industry Investments and Activities Over the Next Decade 
• Recommended Workforce Solutions 
www.petrohrsc.ca 
2 www.careersinoilandgas.com
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. 
www.petrohrsc.ca 
3 www.careersinoilandgas.com
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: 
www.petrohrsc.ca 
4 www.careersinoilandgas.com
Our LMI Expertise 
We produce the following LMI products. 
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. 
www.petrohrsc.ca 
5 www.careersinoilandgas.com
Canada’s Oil and Gas Labour Market Outlook to 2022: 
Key Findings and Analysis 
www.petrohrsc.ca 
6 www.careersinoilandgas.com
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 
www.petrohrsc.ca 
7 www.careersinoilandgas.com
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. 
www.petrohrsc.ca 
8 
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 
www.careersinoilandgas.com
Current Oil and Gas Industry 
Workforce TOP TEN OIL AND GAS OCCUPATIONS 
Sector 
www.petrohrsc.ca 
BASED ON 2012 EMPLOYMENT (# of jobs) 
Industry Total (195,200) 
1 
Oil and gas drilling, servicing, and related 
labourers 
12,940 
2 
Oil and gas well drillers, servicers, testers, 
and related workers 
12,305 
3 Supervisors, oil and gas drilling and service 9,570 
4 
Oil and gas well drilling workers and service 
operators 
9,030 
5 
Petroleum, gas, chemical process operators 
(no steam-ticket required) 
7,140 
6 Heavy equipment operators (except crane) 7,080 
7 Petroleum engineers 6,860 
8 Drilling coordinators/production managers 6,765 
9 Truck drivers 6,440 
10 Millwrights and machinists 5,160 
9 
2012 Employment 
(Estimated) 
Oil and gas services 94,100 
Conventional E&P 72,000 
Oil sands 22,300 
Pipelines 6,800 
Total Industry 195,200 
www.careersinoilandgas.com
Oil and Gas Industry Employment Outlook to 2022 
In the Low Growth scenario, the industry adds just under 18,300 jobs, while in the Expansion scenario, the 
industry adds 38,700 jobs. 
240,000 
230,000 
220,000 
210,000 
200,000 
190,000 
180,000 
www.petrohrsc.ca 
10 
195,200 
199,700 
233,900 
(+20%) 
213,500 
(+9%) 
170,000 
2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 
Number of Jobs 
Low Growth Scenario Expansion Scenario 
www.careersinoilandgas.com
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. 
www.petrohrsc.ca 
11 www.careersinoilandgas.com
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 
www.petrohrsc.ca 
12 
*Net hiring requirements = hiring due to industry activity + age-related attrition 
(excludes non-retirement turnover) 
www.careersinoilandgas.com
Projected Labour Shortages 
For both scenarios, there is no relief in sight as industry unemployment rates fall below a balanced labour 
market for the duration of the projection period. 
www.petrohrsc.ca 
Severe shortages experienced in 2007 are expected to return by 2014 when the 
industry unemployment rate falls to around five percent in either scenario. 
6.0 
5.4 
10.0 
9.0 
8.0 
7.0 
6.0 
5.0 
4.0 
3.0 
2.0 
1.0 
0.0 
2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F 
Unemployment Rate (%) 
Balanced Labour Market Low Growth Scenario Expansion Scenario 
13 
5.1 
5.6 
4.9 
www.careersinoilandgas.com
Occupational Labour Shortages 
Occupations with ten-year average projected unemployment rates below the balanced rate (both scenarios): 
• Chemical engineering technologists 
• Chemical engineers 
• Civil engineers 
• Crane operators 
• Drafting technologists and technicians 
• Drilling coordinators/production managers 
• Electrical/instrumentation engineers 
• Environmental technicians 
• Geologists and geophysicists 
• Heavy equipment operators 
• Heavy-duty equipment mechanics 
• Industrial electricians 
• Industrial engineering and manufacturing technologists 
www.petrohrsc.ca 
14 
and technicians 
• Inspectors in public and environmental health and safety 
• Instrumentation engineering technologists 
• Instrumentation technicians 
• Insulators 
• Mechanical engineering technologists 
• Mechanical engineers 
• Millwrights and machinists 
• Mining engineers 
• Non-destructive testers and inspection technicians 
• Oil and gas drilling, servicing, and related labourers 
• Oil and gas well drillers, servicers, testers, and related 
workers 
• Oil and gas well drilling workers and service operators 
• Petroleum engineers 
• Petroleum/mining/geological engineering technologists 
• Power engineers (steam-ticket required) 
• Project engineers 
• Purchasing agents and officers 
• Steamfitters and pipefitters 
• Supervisors, oil and gas drilling and service 
• Truck drivers 
• Welders 
www.careersinoilandgas.com
Occupations with Above-Average Age-Related Attrition Rates 
OCCUPATION 
www.petrohrsc.ca 
15 
AVE. 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% 
www.careersinoilandgas.com
Value-Added Analysis: 
Provincial Analysis 
www.petrohrsc.ca 
16 www.careersinoilandgas.com
Provincial Analysis 
www.petrohrsc.ca 
17 
British Columbia (BC) Alberta (AB) 
Foreign investment and the province’s liquids-rich 
natural gas plays have kept BC’s oil and gas industry 
busier than expected, especially considering the 
lingering low natural gas price environment. However, 
the province is at a turning point as stakeholders wait 
to see if the development of an LNG export sector 
proceeds. 
Technology has a significant impact on the province’s 
oil and gas production potential as it allows companies 
to undertake new exploration and rework old wells. 
Alberta’s oil sands are expected to expand at a 
sustainable rate although growth may be impeded by 
market and transportation constraints. 
Saskatchewan (SK) Rest of Canada (RoC) 
Growth is driven by increased activity in the prolific 
Bakken shale oil formation where technology is 
reversing the decline in light oil production. 
Technology is also boosting activity around 
Lloydminster as thermal technology is being applied 
to enhance heavy oil production in the area. With 
the increased use of rail to address pipeline capacity 
issues, activity is expected to increase over the next 
couple of years, regardless of scenario. 
The majority of current industry activity is 
for Manitoba’s production from the Bakken shale oil 
formation, Nova Scotia’s offshore natural gas and 
Newfoundland and Labrador offshore oil. Technology 
has increased the potential of industry expansion 
across Canada, including the development of shale oil 
and gas deposits and the potential for LNG exports 
from Canada’s east coast. 
www.careersinoilandgas.com
Net Hiring Requirements in 
BC 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 
www.petrohrsc.ca 
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 
18 
www.careersinoilandgas.com
Net Hiring Requirements in 
AB Oil and Gas Industry 
(Low Growth and Expansion) 
Hiring due to industry activity 
17,100 to 35,000 
Hiring due to age-related attrition 
36,700 to 37,700 
10-year net hiring requirements 
53,800 to 72,700 
www.petrohrsc.ca 
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 
19 
www.careersinoilandgas.com
Net Hiring Requirements in 
SK Oil and Gas Industry 
(Low Growth and Expansion) 
Hiring due to industry activity 
300 to 1,100 
Hiring due to age-related attrition 
2,300 to 2,350 
10-year net hiring requirements 
2,600 to 3,450 
www.petrohrsc.ca 
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) 
1 
Oil and gas well drillers, servicers, testers, 
and related workers 
230 – 330 
2 
Oil and gas drilling, servicing, and related 
labourers 
170 – 275 
3 Supervisors, oil and gas drilling and service 220 – 275 
4 Truck drivers 190 – 250 
5 
Oil and gas well drilling workers and service 
operators 
140 – 210 
6 Drilling coordinators/production managers 155 – 190 
7 
Petroleum, gas, chemical process operators 
(no steam-ticket required) 
135 – 170 
8 Heavy equipment operators (except crane) 115 – 150 
9 Millwrights and machinists 110 – 150 
10 Welders 80 – 105 
20 
www.careersinoilandgas.com
Net Hiring Requirements in 
RoC Oil and Gas Industry 
(Low Growth and Expansion) 
Hiring due to industry activity 
250 to 1,050 
Hiring due to age-related attrition 
2,650 to 2,700 
10-year net hiring requirements 
2,900 to 3,750 
www.petrohrsc.ca 
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) 
1 Supervisors, oil and gas drilling and service 145 – 185 
2 
Oil and gas well drillers, servicers, testers, 
and related workers 
125 – 175 
3 Drilling coordinators/production managers 135 – 175 
4 
Petroleum, gas, chemical process operators 
(no steam-ticket required) 
130 – 155 
5 Oil and gas drilling, servicing, and related labourers 95 – 150 
6 Truck drivers 105 – 140 
7 Petroleum engineers 95 – 125 
8 
Oil and gas well drilling workers and 
service operators 
75 – 115 
9 Geologists and geophysicists 75 – 105 
10 Millwrights and machinists 75 – 95 
21 
www.careersinoilandgas.com
Employment Impacts of Oil and Gas Investment and Activities to 2022 
Investments and activities by the oil and gas industry benefit all Canadians. 
www.petrohrsc.ca 
22 
www.careersinoilandgas.com
Building Canada’s Workforce 
www.petrohrsc.ca 
23 www.careersinoilandgas.com
Ideal Canadian Labour Supply Pools 
Labour Force Participation Rate 
www.petrohrsc.ca 
Landed Immigrants 
New Entrants 
Unemployed/ 
Underemployed 
Aboriginal Peoples 
Temporary Foreign 
Workers (TFWs)
Demand-driven Workforce Solutions 
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. 
www.petrohrsc.ca 
25
To be added to our eNewsletter, 
email info@petrohrsc.ca 
Find us on social media: 
@PetroHRCouncil 
@CareersInOandG 
facebook.com/careersinoilandgas slideshare.net/PetroHRCouncil 
26 www.petrohrsc.ca Funded in part by the Government of Canada and the Canadian Association of Petroleum Producers

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Western Oil & Gas Transportation Summit Presentation

  • 1. Overcoming the Challenges of Labour Shortages Arising from the Rise in Oil and Gas Development May 15, 2014 Carla Campbell-Ott, Executive Director, Petroleum HR Council (a division of Enform) Funded in part by the Government of Canada and the Canadian Association of Petroleum Producers
  • 2. 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 – Current Oil and Gas Workforce – Employment Outlook – Hiring Outlook – Projected Labour and Skill Shortages • Value-Added Analysis – Provincial Analysis – Full Employment Impacts of Industry Investments and Activities Over the Next Decade • Recommended Workforce Solutions www.petrohrsc.ca 2 www.careersinoilandgas.com
  • 3. 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. www.petrohrsc.ca 3 www.careersinoilandgas.com
  • 4. 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: www.petrohrsc.ca 4 www.careersinoilandgas.com
  • 5. Our LMI Expertise We produce the following LMI products. 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. www.petrohrsc.ca 5 www.careersinoilandgas.com
  • 6. Canada’s Oil and Gas Labour Market Outlook to 2022: Key Findings and Analysis www.petrohrsc.ca 6 www.careersinoilandgas.com
  • 7. 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 www.petrohrsc.ca 7 www.careersinoilandgas.com
  • 8. 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. www.petrohrsc.ca 8 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 www.careersinoilandgas.com
  • 9. Current Oil and Gas Industry Workforce TOP TEN OIL AND GAS OCCUPATIONS Sector www.petrohrsc.ca BASED ON 2012 EMPLOYMENT (# of jobs) Industry Total (195,200) 1 Oil and gas drilling, servicing, and related labourers 12,940 2 Oil and gas well drillers, servicers, testers, and related workers 12,305 3 Supervisors, oil and gas drilling and service 9,570 4 Oil and gas well drilling workers and service operators 9,030 5 Petroleum, gas, chemical process operators (no steam-ticket required) 7,140 6 Heavy equipment operators (except crane) 7,080 7 Petroleum engineers 6,860 8 Drilling coordinators/production managers 6,765 9 Truck drivers 6,440 10 Millwrights and machinists 5,160 9 2012 Employment (Estimated) Oil and gas services 94,100 Conventional E&P 72,000 Oil sands 22,300 Pipelines 6,800 Total Industry 195,200 www.careersinoilandgas.com
  • 10. Oil and Gas Industry Employment Outlook to 2022 In the Low Growth scenario, the industry adds just under 18,300 jobs, while in the Expansion scenario, the industry adds 38,700 jobs. 240,000 230,000 220,000 210,000 200,000 190,000 180,000 www.petrohrsc.ca 10 195,200 199,700 233,900 (+20%) 213,500 (+9%) 170,000 2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F Number of Jobs Low Growth Scenario Expansion Scenario www.careersinoilandgas.com
  • 11. 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. www.petrohrsc.ca 11 www.careersinoilandgas.com
  • 12. 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 www.petrohrsc.ca 12 *Net hiring requirements = hiring due to industry activity + age-related attrition (excludes non-retirement turnover) www.careersinoilandgas.com
  • 13. Projected Labour Shortages For both scenarios, there is no relief in sight as industry unemployment rates fall below a balanced labour market for the duration of the projection period. www.petrohrsc.ca Severe shortages experienced in 2007 are expected to return by 2014 when the industry unemployment rate falls to around five percent in either scenario. 6.0 5.4 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 2006A 2007A 2008A 2009A 2010A 2011A 2012E 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F 2021F 2022F Unemployment Rate (%) Balanced Labour Market Low Growth Scenario Expansion Scenario 13 5.1 5.6 4.9 www.careersinoilandgas.com
  • 14. Occupational Labour Shortages Occupations with ten-year average projected unemployment rates below the balanced rate (both scenarios): • Chemical engineering technologists • Chemical engineers • Civil engineers • Crane operators • Drafting technologists and technicians • Drilling coordinators/production managers • Electrical/instrumentation engineers • Environmental technicians • Geologists and geophysicists • Heavy equipment operators • Heavy-duty equipment mechanics • Industrial electricians • Industrial engineering and manufacturing technologists www.petrohrsc.ca 14 and technicians • Inspectors in public and environmental health and safety • Instrumentation engineering technologists • Instrumentation technicians • Insulators • Mechanical engineering technologists • Mechanical engineers • Millwrights and machinists • Mining engineers • Non-destructive testers and inspection technicians • Oil and gas drilling, servicing, and related labourers • Oil and gas well drillers, servicers, testers, and related workers • Oil and gas well drilling workers and service operators • Petroleum engineers • Petroleum/mining/geological engineering technologists • Power engineers (steam-ticket required) • Project engineers • Purchasing agents and officers • Steamfitters and pipefitters • Supervisors, oil and gas drilling and service • Truck drivers • Welders www.careersinoilandgas.com
  • 15. Occupations with Above-Average Age-Related Attrition Rates OCCUPATION www.petrohrsc.ca 15 AVE. 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% www.careersinoilandgas.com
  • 16. Value-Added Analysis: Provincial Analysis www.petrohrsc.ca 16 www.careersinoilandgas.com
  • 17. Provincial Analysis www.petrohrsc.ca 17 British Columbia (BC) Alberta (AB) Foreign investment and the province’s liquids-rich natural gas plays have kept BC’s oil and gas industry busier than expected, especially considering the lingering low natural gas price environment. However, the province is at a turning point as stakeholders wait to see if the development of an LNG export sector proceeds. Technology has a significant impact on the province’s oil and gas production potential as it allows companies to undertake new exploration and rework old wells. Alberta’s oil sands are expected to expand at a sustainable rate although growth may be impeded by market and transportation constraints. Saskatchewan (SK) Rest of Canada (RoC) Growth is driven by increased activity in the prolific Bakken shale oil formation where technology is reversing the decline in light oil production. Technology is also boosting activity around Lloydminster as thermal technology is being applied to enhance heavy oil production in the area. With the increased use of rail to address pipeline capacity issues, activity is expected to increase over the next couple of years, regardless of scenario. The majority of current industry activity is for Manitoba’s production from the Bakken shale oil formation, Nova Scotia’s offshore natural gas and Newfoundland and Labrador offshore oil. Technology has increased the potential of industry expansion across Canada, including the development of shale oil and gas deposits and the potential for LNG exports from Canada’s east coast. www.careersinoilandgas.com
  • 18. Net Hiring Requirements in BC 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 www.petrohrsc.ca 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 18 www.careersinoilandgas.com
  • 19. Net Hiring Requirements in AB Oil and Gas Industry (Low Growth and Expansion) Hiring due to industry activity 17,100 to 35,000 Hiring due to age-related attrition 36,700 to 37,700 10-year net hiring requirements 53,800 to 72,700 www.petrohrsc.ca 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 19 www.careersinoilandgas.com
  • 20. Net Hiring Requirements in SK Oil and Gas Industry (Low Growth and Expansion) Hiring due to industry activity 300 to 1,100 Hiring due to age-related attrition 2,300 to 2,350 10-year net hiring requirements 2,600 to 3,450 www.petrohrsc.ca 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) 1 Oil and gas well drillers, servicers, testers, and related workers 230 – 330 2 Oil and gas drilling, servicing, and related labourers 170 – 275 3 Supervisors, oil and gas drilling and service 220 – 275 4 Truck drivers 190 – 250 5 Oil and gas well drilling workers and service operators 140 – 210 6 Drilling coordinators/production managers 155 – 190 7 Petroleum, gas, chemical process operators (no steam-ticket required) 135 – 170 8 Heavy equipment operators (except crane) 115 – 150 9 Millwrights and machinists 110 – 150 10 Welders 80 – 105 20 www.careersinoilandgas.com
  • 21. Net Hiring Requirements in RoC Oil and Gas Industry (Low Growth and Expansion) Hiring due to industry activity 250 to 1,050 Hiring due to age-related attrition 2,650 to 2,700 10-year net hiring requirements 2,900 to 3,750 www.petrohrsc.ca 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) 1 Supervisors, oil and gas drilling and service 145 – 185 2 Oil and gas well drillers, servicers, testers, and related workers 125 – 175 3 Drilling coordinators/production managers 135 – 175 4 Petroleum, gas, chemical process operators (no steam-ticket required) 130 – 155 5 Oil and gas drilling, servicing, and related labourers 95 – 150 6 Truck drivers 105 – 140 7 Petroleum engineers 95 – 125 8 Oil and gas well drilling workers and service operators 75 – 115 9 Geologists and geophysicists 75 – 105 10 Millwrights and machinists 75 – 95 21 www.careersinoilandgas.com
  • 22. Employment Impacts of Oil and Gas Investment and Activities to 2022 Investments and activities by the oil and gas industry benefit all Canadians. www.petrohrsc.ca 22 www.careersinoilandgas.com
  • 23. Building Canada’s Workforce www.petrohrsc.ca 23 www.careersinoilandgas.com
  • 24. Ideal Canadian Labour Supply Pools Labour Force Participation Rate www.petrohrsc.ca Landed Immigrants New Entrants Unemployed/ Underemployed Aboriginal Peoples Temporary Foreign Workers (TFWs)
  • 25. Demand-driven Workforce Solutions 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. www.petrohrsc.ca 25
  • 26. To be added to our eNewsletter, email info@petrohrsc.ca Find us on social media: @PetroHRCouncil @CareersInOandG facebook.com/careersinoilandgas slideshare.net/PetroHRCouncil 26 www.petrohrsc.ca Funded in part by the Government of Canada and the Canadian Association of Petroleum Producers

Editor's Notes

  1. This is an update from the Petroleum HR Council’s Canada’s Oil and Gas Labour Market Outlook to 2015, released in May 2012. An overview of scope and methodology is provided in the full report which is available for download on www.careersinoilandgas.com.
  2. Canada’s oil and gas industry continued to attract investment throughout 2012, resulting in an acceleration of oil sands development, especially in situ operations. The past year also realized considerable interest and investment in the development of a liquefied natural gas (LNG) export sector in northwestern BC. 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. A more stable business environment has been created with an increase in joint ventures with Asian companies. These companies are looking to learn from leading Canadian industry and oil and gas companies. The longer-term view of development also contributed to business stability as Asian companies look to secure future oil and gas supply. Looking ahead, downside risks are evident and it is increasingly clear that market diversification and a greater global presence is critical to sustainable growth within Canada’s oil and gas industry. Pipeline Projects TransCanada – Keystone XL pipeline (Awaiting Regulatory Approval) 1,897 km crude oil pipeline From Hardisty AB to Steele City Nebraska (830,000 b/d) Route approved by Nebraska (January 2013) Waiting for U.S. federal government approval (April 2014 U.S. government further delayed final decision, likely until after US mid-term elections in November 2014) Enbridge – Northern Gateway (Awaiting Regulatory Approval) Twin pipeline carrying oil to the west and condensates to the east (525,000 b/d of petroleum) 1,177 km oil pipeline from Edmonton to Kitimat 1,177 km condensate pipeline from Kitimat to Edmonton Enbridge expects a decision from the federal government by mid-2014 (reported Oct 2, 2013) The widespread use of horizontal drilling and hydraulic fracturing has unlocked natural gas and conventional oil reserves. Energy producing countries are reversing once-declining production of oil and gas, including Canada’s primary customer, the US. These developments are bringing 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. The dynamic tension between opportunity and uncertainty was reflected as 2012 came to a close and a few natural gas focused companies announced employee layoffs in early 2013. Skill shortages are also a risk to the industry’s sustainability. Canada’s oil and gas industry is projected to face more job openings due to age-related attrition than due to industry activity growth (or expansion). Competition for experienced workers is expected to be fierce. Just as industry and government are looking for market diversification solutions, demand-driven solutions for workforce concerns are also required to develop a larger pool of qualified workers.
  3. The Decade Ahead: Labour Market Outlook to 2022 for Canada’s Oil and Gas Industry analyzes the labour market outlook for two potential industry activity scenarios. 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 Corporation Oil sands production forecast, as outlined in CAPP’s Crude Oil Market Outlook (2012) The first scenario is the Low Growth scenario where market diversification does not occur and industry growth is driven by North American demand for oil and natural gas. With this outlook, there will be moderate increases to conventional oil and oil sands production, as well as a continued focus on liquids-rich natural gas. To drive growth, the industry will depend on increased North American demand for natural gas from various sources: Oil sands and other industrial uses Power generation – phasing out of coal-generated electricity Transportation – use of natural gas as fuel by medium and heavy trucks In the Expansion scenario, market diversification will occur and Canadian oil and gas producers have the capability to supply to international markets. A debottleneck and expansion of oil pipeline capacity will contribute to industry growth, as will the development of LNG export facilities and pipelines. The BC natural gas industry will see the biggest impact and benefits from this potential scenario. 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.
  4. Direct employment in 2012 is estimated to be over 195,200 people, adding at least 2,200 jobs from the previous year -- and about 18,200 jobs (or 10 per cent growth) from 2009 employment levels. Numbers have been rounded for readability
  5. 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. Growth of Saskatchewan’s oil and gas industry is driven by increased activity in the prolific Bakken shale oil formation where technology is reversing the decline in the production of light oil. Technology is also impacting industry activity around Lloydminster as the industry is applying thermal technology to enhance production from heavy oil deposits in the area. Increased oil production in Saskatchewan is adding to the pipeline capacity concerns. With the increased use of rail to address pipeline capacity issues, the province’s activity is expected to increase over the next couple of years, regardless of scenario. In total, Saskatchewan’s oil and gas industry will need to fill between 2,600 and 3,450 job openings due to industry activity and age-related attrition over the next decade.
  6. 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 formation Nova Scotia offshore natural gas Newfoundland and Labrador offshore oil Installation of Nova Scotia’s second offshore natural gas production field centre, Deep Panuke, is currently underway with production expected to start in latter part of 2013. Newfoundland and Labrador’s fourth offshore oil project, Hebron, is currently being developed and is targeting first oil in 2017 – and will add both direct and indirect jobs. Technology has increased the potential of industry expansion across Canada, including the development of shale oil and gas deposits and the potential for LNG exports from Canada’s east coast. There is a need to hire between 2,930 and 3,770 workers (Low and Expected Growth scenarios respectively) for the rest of Canada by 2022 due to industry activity and age-related attrition.
  7. The sizable cumulative investment in development and operations within Canada’s oil and gas industry to 2022 is estimated to sustain an annual average of 894,100 to 1,036,100 direct, indirect and induced jobs across Canada. Although majority of the jobs are expected to be found in Western Canada (approximately 80 per cent employment share with Alberta employing close to 65 per cent of the total workforce), other provinces will also benefit from an employment perspective including Ontario, Quebec, Newfoundland and Labrador and Manitoba. Between 2013 and 2022, the industry will sustain an average of 213,000 to 224,400 direct jobs each year in exploration and production, oil and gas services and pipeline operations. In addition, between 413,400 and 505,300 indirect jobs will be sustained each year in: construction, manufacturing, transportation and warehousing, professional, scientific and technical services, waste management and remediation services, financial, insurance, real estate and rental and leasing. Finally, an average of 267,700 to 306,400 jobs each year will also be supported or ‘induced’ in the broader economy, largely through a general increase in consumer spending by direct and indirect workers. Simply put: for every direct job created within oil and gas industry operations, three jobs are created outside of the industry. Investments and activities by the oil and gas industry, including LNG development on the west coast, offshore oil development on the east coast, and oil sands development in Alberta will continue to benefit all Canadians.   
  8. Growth rate of working age population From 2005-2006, working age population grew at a rate of 1.22% per year. From 2011-2012, working age population grew at a rate of 0.69% per year.   Labour force participation rate The labour force participation rate trend has remained steady at 65% between 2006 and 2014. Historically, industry has not attracted its share of workers from all potential labour supply pools. Canada’s total labour force grew 4.92 percent between 2006, while the oil and gas labour force grew 14.30% over the same period.   New Entrants Canada’s population aged 15-24 years shrank from 5,576,805 in 2006 to 4,324,070 in 2011 (a decrease of 22.46 percent). Canada’s labour force aged 15-24 years in the oil and gas industry shrank from 24,901 in 2006 to 19,065 in 2011 (a decrease of 23.44 percent).   TFWs The number of non-residents in Canada on work visas rose from 255,330 in 2006 to 445,580 in 2011 (all industries, an increase of 74.5%).   Aboriginal population The Aboriginal population in Canada grew from 1,172,785 in 2006 to 1,400,685 in 2011 (an increase of 19.4 percent). Between 2001 and 2026, more than 600,000 Aboriginal youth will come of age to enter the labour market. In 2011, Aboriginal youth represented 18.2 percent of the Aboriginal population and 5.9 percent of all youth in Canada.   Landed Immigrants Economic category (sponsored by an employer): 138,250 in 2006 and 186,880 in 2011 (an increase of 35 percent) Family category (no work sponsorship required): 70,517 in 2006 and 60,207 in 2011 (a decrease of 14.6 percent) Refugees: 32,499 in 2006 and 24,693 in 2011 (a decrease of 24 percent)
  9. Provinces with higher unemployment rates may offer labour supply opportunities through a variety of labour pools such as unemployed and under-employed workers, New Canadians, youth and new grads who may not be able to find employment in their home provinces, and workers from other industries with transferable skills.   To have full access to workers throughout the country, there is a need for the enhancement of mobility of transferable skills and qualifications across industries and Canada. Companies also need to do their part by offering rotation schedules, and accommodation and transportation support that are attractive to workers from across Canada.   Critical to ensuring a sustainable industry workforce is the development of a more effective and efficient education and training system. Workforce numbers will increase if the education system, industry and government can work together to achieve the following: increase high school completion rates so that youth have the pre-requisites required to train and obtain long-term careers; increase youth enrolment in relevant post-secondary training; and undertake effective program planning and alignment of post-secondary training with industry needs.   A commitment to increase energy literacy and career awareness across Canada is required. The oil and gas industry still has to overcome a number of misconceptions and negative perceptions. There is a need to educate Canadians, not only about the direct and indirect employment opportunities and how to access them, but also about how the industry works and what it is doing to improve its environmental performance. Another practical solution is to increase use of apprenticeship programs, with employers taking on more apprentices. For many, these apprentices become fulltime employees who over time gain considerable knowledge and experience. While “Canadians first” should be top priority, temporary foreign workers are a solution for filling temporary or shorter-term assignments. In addition, economic immigration programs can be utilized to address labour and skill shortages within industry-specific occupations. Collaboration, on-going dialogue and a commitment to innovation and outside-the-box thinking are essential to ensure that future workforce needs can be met.