According to a study conducted by PetroLMI, a Division of Enform, in this lower commodity price environment, the oil and gas Industry is all set to change to survive, as there is some significant shifts in labour force requirements, a skills mismatch along with decreasing labour force.
The Vice President of Communications and PetroLMI, Enform’s Carol Howes stated, “The downturn in the oil and Gas Industry that began in late 2014 has created a structural shift and a refocus – from one of growth to operational performance improvements and it is having significant implications for labour productivity improvements, hiring practices, the types of occupations and skills that are required, and the availability of the right talent.”
Due to the contracting oil and gas industry, there is immense impact on its labour force. The study comprises of survey of 864 respondents. It is one of the largest PetroLMI survey. According to the survey, the Canada’s pool of oil and gas workers is reducing which leads to the displacement of workers who are searching for opportunities in various other industries. Moreover, there is huge growth in the negative perception related to the viability of the industry. This will discourage new entrants while looking for employment opportunities in the industry. In the meantime, there is huge increment in the numbers of unemployment of highly specialized, educated and skilled workers.
According to Howes, “There is a growing mismatch of worker skills and what is required by industry. Industry is just beginning to assess and discuss the implications that productivity enhancements, including the use of new technologies, undertaken over the last couple of years is having on occupational and skills requirements.” He further added, “As industry cautiously adds back investment and as activity levels begin to pick up, the need to be proactive and to work together to address any looming skills and labour shortages is re-emerging.”
According to the report, from 2010 -2014, there is huge decline in labour productivity by about 6 per cent. Howes further added, “The oil and gas industry averaged six times higher between 2010 and 2016 than the overall Canadian labour productivity. Even sustaining the productivity gains achieved in 2015-2016 would be viewed as a significant achievement for the industry.” He also stated “Labour productivity in any industry, and economy, is vital for competition and for growth.”
Analysis of both reports suggest that there should be an ongoing emphasis on labour productivity improvements, and innovation and technology for the oil and gas industry to maintain profitability and be competitive.For More Information Oil and Gas Recruitment Agencies Click Now
