Labour shortage feared in energy sector
By Dan Healing, Calgary Herald June 3, 2010
A Canadian energy industry labour shortage is looming, says a study released Wednesday.
The Petroleum Human Resources Council of Canada predicts a dramatic turnaround with last year's layoffs of thousands of energy workers turning into a
labour shortage in 2011. It warns that more than
100,000 new workers may be needed in the next decade.
The report is already hitting home at Devon Canada. The Calgary-based subsidiary of a U.S. energy giant needs to add 130 people this year.
The extra people are needed for its office and the field as it brings on stream a $1-billion doubling of its 35,000-barrel-a-day Jackfish in situ oilsands project.
But that's just the tip of the iceberg, says human resources manager Colleen Warrellow, noting Devon is forecasting the need to add 800 more oilsands workers by 2020 as it continues to grow production.
"Absolutely, there will be a shortage," Warrellow said.
It's bad news for companies that face higher costs and delays in projects, but good news for students such as Mark Armstrong, 31, who is in the second year of a four-year instrument technician apprenticeship at SAIT Polytechnic.
"I'm getting the education and it's nice to have the paperwork to go with it," he said.
He's been working in oil and gas instrumentation for about three years.
"I think there's a lot of opportunity in the future for very skilled tradespeople and Alberta tradespeople are some of the most skilled in the world."
Cheryl Knight, executive director of the human resources council, said at a news conference Wednesday that energy companies are going to have to change their traditional recruiting practices to hire more women, aboriginals and immigrants.
The study looks at two possibilities: a growth scenario that considers the Canadian Association of Petroleum Producers' expected outlook and a base case that includes only existing or under-construction production.
In the former case, 105,000 additional workers will be needed -- about 30,000 in new positions and the rest to replace retiring workers.
In the base scenario, lower labour supply and retirements create a tight labour market starting in 2014. By 2020, the industry will need to hire about 15,000 workers.
"For some occupations, the demand will be extremely high in the growth scenario over the next decade," said Knight.
"
The industry will be looking for 3,500 oil and gas drilling, servicing and related labourers, more than 3,000 operators, both steam and non-steam, very important for the oilsands, more than 2,500 heavy equipment operators, more than 2,000 drilling co-ordinators and production managers, over 1,500 petroleum engineers and almost 1,500 geologists and geophysicists."
Oilsands employment is expected to double to 24,000 by 2020 under the council's growth scenario and rise by 5,000 workers to 17,000 under the base scenario, the study says.
Mary MacDonald, dean of the MacPhail School of Energy at SAIT Polytechnic, said most of the classes at her school are full and the new, $445-million trades and technology complex will add 30 per cent to capacity by 2012.
"There has been a decrease in the number of apprentices next year because apprenticeship does go on what the sector asks for. But we have the capacity to increase at any time," she said.
dhealing@theherald.canwest.com
© Copyright (c) The Calgary Herald
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http://www.calgaryherald.com/business/Labour+shortage+feared+energy+sector/3105403/story.html#ixzz0prnsV4Jt
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