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
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