New Skills, New Knowledge, New WorkersNorth BC Natural Gas SummitCarol Howes, Vice President Communications & PetroLMI, Enform

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Agenda

• Introduction• Overview of PetroLMI• Shifting Priorities and a Shifting Workforce report

– Skills and knowledge required to work in today’s oil and gas industry• Tapping into a diverse workforce • Saskatchewan: a case study on attracting and retaining aboriginal peoples• Building a culture of worker safety

Petroleum Labour Market Information (PetroLMI) Division of Enform

• PetroLMI merged with Enform in 2013; was former Petroleum Human Resources Council

• We are a leading resource for labour market information and insights in the Canadian petroleum industry

• Our labour market data, knowledge and expertise also assists Enform in further aligning its training and safety services with industry needs

• Enform’s Fort St. John office open since 2006; we work with industry, WorkSafeBC, BC Oil and Gas Commission, Northern Lights College

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PetroLMI Key Stakeholders

While PetroLMI’s key stakeholder is industry, the following illustrates the many stakeholders and audiences using and/or financially supporting PetroLMI’s products and services:

Our LMI Expertise

Labour Market Outlooks: Longer-term employment and hiring projections using a proprietary, industry-validated modelling system for:

• Labour demand and supply projections for upstream and mid-stream sectors

• Key operating regions - BC, AB, SK, Rest of Canada (RoC)

• Petroleum industry sub-sectors: exploration and production (E&P), oil sands, oil and gas services, and pipeline transmission

HR Trends and Insights: Provide intelligence on current and short-term labour market conditions and HR trends within Canada’s oil and gas industry.

Occupational Profiling: Provide detailed information on occupations and career planning and mapping, including tools and resources

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Careers in Oil and Gas Website

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Shifting Priorities and a Shifting Workforce

“Canada’s petroleum industry is increasingly in need of a more skilled and knowledgeable workforce. The growing complexity of the oil and gas business, along with the pressures to remain profitable and competitive determines skills and knowledge required by its workers.”

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Upstream Technology is Driving Changes to Midstream and Downstream Activities ….

10 years ago ….SeismicExploration & ProductionWellsite constructionDrilling & CompletionsWell servicingGathering linesAbandonment and remediation

Natural gas processingUpgradingStorageMainline pipelines

RefineriesPetrochemical plantsNatural gas utilitiesGas stations

Today ….SeismicExploration & ProductionWellsite constructionDrilling & CompletionsWell servicingGathering linesAbandonment and remediation

Natural gas processingUpgradingStorageMainline pipelinesNatural Gas Liquids FacilitiesRail and Truck TerminalsWater and waste treatment

RefineriesPetrochemical plantsNatural gas utilitiesGas stationsLNG processing facilitiesLNG fueling stations

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Oil and Gas Industry Priorities

The following three industry priorities are driving change in workforce requirements:

• Accessing technically complex unconventional reserves

• Balancing performance and cost management to achieve profitability

• Achieving market diversification to grow the business

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Accessing Complex Unconventional Reserves

• Application of new technologies have made more remote resources commercially viable

• Types of equipment, materials and services required for this work is changing

• Increased demand for workers with more advanced technical skills

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Balancing Performance and Cost Management

• Industry is applying innovative technologies to streamline processes and to ensure the right skills are in the right place at the right time

• Workers play a key role in balancing performance and cost management to achieve profitability

• Workers are expected to have a firm understanding of cost implications of their actions/decisions

• Workers must be better attuned to the increasingly complex regulatory and socio-economic environment

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Pursuing Market Diversification to Grow the Business

• Market diversification can only achieved through ongoing investment in large, capital-intensive projects such as LNG facilities

• Availability of a skilled construction and operations workforce is an important consideration in corporate investment decisions

• Greater need for workers with the knowledge and skills required for complex, technical commercial and regulatory planning

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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

Shifts In Occupations And Skillsby Oil and Gas Industry Sector

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Conventional/Unconventional E&P Sector

• A more complex, technical environment is resulting in even heavier reliance on engineers

• Field technologists are replacing workers that had a mechanical aptitude supplemented with on-the-job training

• More emphasis on occupations in supply chain management to drive economies of scale through the chain of E&P activities

• A redeployment of workers is required and increased use of contractors to address skills shortages

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Natural Gas Processing

Head office support: Operations accountants Production accountants Customer service representatives

At the plant: Engineers

– Mechanical– Electrical/Instrumentation– Chemical/Processing

Trades– Millwrights– Instrumentation Techs– Industrial Electricians

Power Engineers– Plant/Process Operators– Control Room Operators

Gas Plant Operators

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Oil and Gas Services Sector

• With the development of horizontal drilling and hydraulic fracturing activities, employment per well has increased substantially – 45+ suppliers and 240-300 workers per well

• Workers must be both technically and mechanically inclined

• There is an increased need for:- Class 1 and Class 3 drivers- Heavy duty technicians- Frack operators- Health and safety personnel

• The level of technical, sales/marketing and HR sophistication required in the industry makes it more difficult for smaller service companies to compete

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Drilling & Completions

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Drilling CompletionsPetroleum Services Operators required for:CementingCasingMudTubingFracturingProduction testingMeasurement-while-drilling

All operators require Class 1 driver’s license

Truck drivers Water and equipment hauling Water and waste disposal

Trades Heavy duty mechanics Millwrights and instrumentation trades tie in

wellhead and install instrumentation

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• More process operators required due to increase in processing product from unconventional reserves

• Deployment of a contractor/contingent workforce helps to manage activity ramp-up and gear down

• Significant growth in major project groups: project and construction managers, design and project engineers, supply chain professionals, business development and commercial roles

• Increased regulatory and compliance roles; stakeholder, community relations

• Growing demand for pipeline integrity specialists due to aging infrastructure

Mid-Stream and Pipeline Sector

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Pipeline Sector Jobs

Head office support:• Engineers

– Civil– Mechanical– Electrical/Instrumentation

• Control Sector Operator• Pipeline Scheduler• Production Accountants

In the field:• Pipeline operator• Pipeline protection technician• Pipeline maintenance technician• Trades

– Millwright– Instrumentation– Electrician

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Potential Labour Supply for B.C’s LNG projects

• Local Workers– Competition for skilled trades and technical occupations

• Inter-Provincial Migration– Industry-led recruitment missions

• Aboriginal Peoples– Under-represented in the labour market

• Immigrants– Attraction and retention

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Diversity in Canada’s Oil and Gas Workforce

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Share of Labour Supply

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Hiring Barriers

• Sourcing– Difficulty understanding occupational/job profiles – Use of jargons (e.g. acronyms, highly technical terms)– Different job titles or roles

• Resume Screening – Recruitment processes designed to “screen out” – Presentation of resume information – Identification of transferable skills

• Assumptions and perceived risks– Understanding of equivalency of foreign education– Transferability of foreign education and experience

• Disconnects for Internationally Trained Workers– Maneuvering websites– Understanding job titles, jargon

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Aboriginal Employment in Saskatchewan’s Oil and Gas Industry

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Saskatchewan’s Oil and Gas Industry Employment

• In 2012, Saskatchewan’s oil and gas industry directly employed approximately 11,600 workers

• Between 2012 and 2022, the industry was expecting to fill as many as 3,450 direct job openings

• Spending by oil and gas companies would generate as many as 20,500 indirect jobs in related sectors such as construction, manufacturing etc.

• Despite labour market shortages, few companies from the survey reported they employed workers from historically under-represented demographics or targeted such workers for recruitment

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Aboriginal Reserve Status• Off-reserve households were the majority of oil and gas industry’s employment (750 out

of 900 workers)

• 35% of Saskatchewan’s Aboriginal population were living on-reserve, many near oil and gas developments

• Aboriginal people living on-reserve were only 16% of Aboriginal employment in the oil and gas industry

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Aboriginal Employment In Saskatchewan’s Oil and Gas Industry

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Recruitment and Retention Strategies

• Most HR managers interviewed – especially at smaller oil and gas companies – reported no specific strategy to recruit Aboriginal people

− Many managers were unaware of different approaches

• Employers who did hire had retention practices specific to Aboriginal people− Many used strategies such as structured mentoring and in-depth cultural training − Other strategies involved creating inclusive and supportive work environment

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Successful Hiring Strategies Used by Oil and Gas Companies

• Companies established personal relationships through face-to-face interaction with leaders in Aboriginal communities before beginning recruiting activities

• Companies viewed Aboriginal recruitment as a partnership that benefited both the company and the community

• Companies planned for retention before hiring

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Successful Retention Strategies Used by Oil and Gas Companies• Some examples of the successful strategies that were used to retain Aboriginal workers

included:

− Mentoring

− Multiple hires

− New worker onboarding programs

− Benefits tailored to workers

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Developing a Safety Culture

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Developing A Safety Culture

The attitudes, values, norms and beliefs, which a particular group of people shares with respect to risk and safety

• NEB draft framework on safety culture

• Six industry trade associations and regulators have engaged to form an Executive Task Force committee on safety culture; other initiatives include creating tools, resources and metrics to improve safety performance

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Why Focus on Safety Culture?

• Safety management systems more effective when accompanied by a “good” safety culture

• To stay alert to potential risk factors that increase the risk of a major disaster

• Pro-active approach involving self-assessment and feedback of less visible elements of a safety management system

• Ensuring both safety of oil and gas workers and safety of the public is crucial to public confidence in Canada as a global leader

“ Safety culture goes beyond removing hazards and institutionalizing safety procedures – it’s about everyday shared values and practices…”

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