Labour Market Outlook 2016 to 2020 for Canada’s Oil and Gas IndustryJune 8, 2016

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Introductions

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PRESENTERSHeather DeBoerProject Manager, Occupational Information and Tools

Claudine VidalloTeam Lead, PetroLMI

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Agenda

• Overview of PetroLMI

• Labour Market Outlook for Canada’s Oil and Gas Industry

• Career Planning Resources

• Questions and Answers

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!

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PetroLMI Key Stakeholders• Our key stakeholder is industry, however, we have many stakeholders using and/or

financially supporting PetroLMI’s products and services:

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www.careersinoilandgas.com

Labour Market Outlook for Canada’s Oil and Gas Industry

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“Retaining a skilled and innovativeworkforce 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.”

Labour Market Outlook 2016 to 2020 for Canada’s Oil and Gas Industry

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Petroleum 101

The oil and gas industry is broadly grouped into three categories:

• Upstream

• Midstream

• Downstream

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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.

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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.

“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

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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.

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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.

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Oil and Gas Occupational Outlook to 2020

Occupational (NOC)Net Hiring Requirements

2017 – 2020 (Lower – Higher Scenarios)

Total industry 46,435 – 55,305Oil 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

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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.

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

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“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.”

Exploring LNG in Canada

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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.

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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

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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.

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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.

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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.

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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.

Career Planning Resources

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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

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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.

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Today’s Oil and Gas Worker Needs to…

• 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

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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

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QUESTIONS?

For more informationContact us at info@careersinoilandgas.comVisit careersinoilandgas.comFind us on social media

@PetroLMI@CareersInOandG facebook.com/careersinoilandgas slideshare.net/PetroLMI