ROTATING, NOT RELOCATING ALBERTA S OIL AND GAS ROTATIONAL WORKFORCE

Transcription

1 ROTATING, NOT RELOCATING ALBERTA S OIL AND GAS ROTATIONAL WORKFORCE

2 Acknowledgements and Disclaimers This slide deck presents data and insight into Alberta s rotational workforce for the oil and gas industry, which is taken from the Rotating, Not Relocating: Alberta s Oil and Gas Rotational Workforce report. The report is funded by the Government of Alberta s Ministry of Jobs, Skills, Training and Labour and the Government of Canada s Sectoral Initiatives Program. This report describes the nature and experience of Alberta s oil and gas rotational workforce that reside in camps. And it attempts to demystify what has become an established industry practice where little information exists. Disclaimer: The viewer of this slide deck has permission to use limited labour market information (or LMI) content for general reference or educational purposes in the viewer s analysis or research reports. Limited LMI Content is defined as a maximum of three slides or data tables/graphs from this slide deck. Where Limited LMI Content is used, the viewer must cite the source of the Limited LMI Content as follows: Source (or adapted from ): The Petroleum Labour Market Information (PetroLMI) Division of Enform Canada, name or product, catalogue, volume and issue numbers, reference period and page(s). The viewer of this slide deck cannot however: Market, distribute, export, translate, transmit, merge, modify, transfer, adapt, loan, rent, lease, assign, share, sub-license or make available to another person or entity, this slide deck in any way, in whole or in part Use this slide deck and its contents to develop or derive any other information product or information service for commercial distribution or sale Use this slide deck and its contents in any manner deemed competitive with any other product or service sold by PetroLMI The information and projections contained herein have been prepared with data sources PetroLMI has deemed to be reliable. PetroLMI makes no representations or warranties that this report is error free and therefore shall not be liable for any financial or other losses or damages of any nature whatsoever arising from or otherwise relating to any use of this slide deck. The opinions and interpretations in this publication are those of the PetroLMI and do not necessarily reflect those of the Government of Alberta or the Government of Canada. 2

3 Petroleum Labour Market Information (PetroLMI) Division of Enform PetroLMI is a leading resource for labour market information and trends in the Canadian petroleum industry. Our mandate is to collaborate with industry, government, educators and training agencies to support and advance the development of a sustainable, skilled and productive workforce in the upstream and midstream sectors. We specialize in providing petroleum labour market data and insights, as well as occupation profiles and other resources for workforce and career planning. 3

4 Our LMI Expertise We produce the following LMI products: Labour Market Outlooks provide employment and hiring projections for: Canada s oil and gas industry as a whole. Key operating regions (i.e., B.C., AB, SK and rest of Canada). Petroleum industry sectors (i.e., 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. 4

5 ROTATING, NOT RELOCATING ALBERTA S OIL AND GAS ROTATIONAL WORKFORCE

6 Report Overview Funded by the Government of Alberta and the Government of Canada s Sectoral Initiatives Program Challenged by the little reliable, statistical data available on Alberta s oil and gas rotational workforce. Includes existing research, as well as new primary research and qualitative data, to provide: Increased understanding of rotational camp life and the social and economic community impact. Insight for decision makers into why the rotational workforce is necessary. 6 6

7 Methodology Primary sources include: Survey of camp providers in conjunction with the Manufacturers Association for Relocatable Structures (MARS). On-site visits and consultations at work camp locations. Interviews with industry and camp providers. PetroLMI Oil Sands Headcount Survey. Secondary sources include: 7 Considerable review of literature sources. Research on Australia s rotational workforce for mining operations (mostly) offers some insights but not completely relevant to the oil and gas industry in Alberta and Canada. 7 7

8 Rotational Work Definition A work arrangement that allows workers to have a set number of days on a given work site, allowing them to return home at the end of their work schedule for a set number of days or time off. The majority of rotational workers are fly-in, fly-out or drive-in, drive out (depending on the nature of their commute) as their place of residence is often far from their place of work. Research Scope The rotational workforce in Alberta s oil and gas industry operations sector (excluding the construction sector). Focuses on workers who fly-in, fly-out, drive-in, drive out or bus-in, bus-out and are living in work camps (open or closed) during their work rotation. 8 8

9 Importance of Rotational Workforce The rotational workforce is critical to success in Alberta s oil and gas industry. Why? Accessibility: Allows companies to respond to changing labour and skill needs through project life cycles. Flexibility: Provides the industry with a flexible workforce that adapts to varying workloads and locations. Nature of work: Ensures a full crew on site at all times for continuous 24/7 operations. 9 9

10 Facts and Figures Tax filer data interprovincial workers vs. in-migrants Workers are rotating, not relocating. Number of interprovincial workers in Alberta increased by almost 100% from 2004 to

11 Facts and Figures Tax filer data interprovincial workers vs. in-migrants The percentage of Alberta s oil and gas extraction and support service workforce that comes from outside the province is consistently higher than the industry average. But, in 2008, the construction industry had the highest percentage of the rotational workforce at 14.1%. In 2004 and 2009, the number of interprovincial workers was higher in the agriculture, forestry and fishing sectors than the oil and gas sector. 11

12 Facts and Figures Tax filer data demographics Between 2004 and 2009, some shifts in Alberta s interprovincial workers are evident. More of Alberta s rotational workers were older and married or in common-law relationships. The largest percentage of respondents were between years of age. 12

13 Facts and Figures Need for project accommodations in RMWB: Rapid development of the oil sands sector Number of workers increased significantly between 2007 and 2008 Workforce numbers exceeded housing capacity available 2012 Census identified 88 project accommodations 74 occupied and 14 vacant Majority of camps located in northern region (30,323) compared to southern region (8,948) 2014 shadow population count identified 122 project accommodations 39% increase in two years Almost 61% of respondents indicated improved/ affordable housing is a key factor for relocation. 13

14 Facts and Figures In 2012, the shadow population count was estimated at approx. 39,000. In 2014, this number rose to approx. 47,000 an increase of nearly 41,000 workers since shadow population research began in

15 MARS Survey In March 2015, PetroLMI conducted a survey with 16 MARS members asking both qualitative and quantitative questions on camp facilities, challenges and community impacts. 14 members completed most of the survey 11 surveys were fully completed 15

16 Survey Results Camp Staff 8 out of 14 companies (57%) indicated that they source most of their camp staff from areas outside of the surrounding communities, while the remaining 43% sourced locally. Top challenges faced in attracting and retaining camp staff: Attraction Retention Skills Requirements Wages Competition for same employees Wages Competition from other camps/ turnover Transient workforce Isolation Isolation 16 16

17 Survey Results Camp Facilities The accommodation facilities or services most important to camp residents are: - Private room and bathroom - Quality food options - Wi-Fi - Gym facilities - Entertainment opportunities 17 17

18 Survey Results Cost 18 18

19 Survey Results Community Relationships 14/14 (100%) of respondents said they maintain a relationship with the nearby community in the form of: Open houses Job fairs Regular conversation Special events 19 19

20 Survey Results Community Impacts 14/14 (100%) of respondents believed there were benefits to the surrounding communities in the form of: Boosted economy Increased employment opportunities Infrastructure development Development back into Aboriginal communities 20 20

21 Survey Results Community Impacts 10/14 (71%) of respondents believed communities had concerns in the form of: Increased traffic Increased crime Increased noise Pressure on local services Lack of purposeful engagement (not fully utilizing local labour force) 21 21

22 ROTATIONAL WORKER HEALTH AND SAFETY Maintaining worker safety is a key driver for camps. Focus around safety is stricter compared to sites where workers went home at the end of day. After-work activities enhance the emotional health of workers. Equal work or time off rotations ensure appropriate worker downtime. Irregular rotations negatively affect worker performance, alertness and sleep patterns. 22

23 Analyzing Performance Camp costs vary depending on the business model: Open lodges Costs are passed on to clients Standards of food and facilities driven by client specification Accommodation costs between $150 and $265 per day Assess business case for camp location/size to optimize occupancy rate Company owned camps Return on investment distributed over the long term Direct cost of room lower than open camp Decrease use of open camps and increase efficiency of closed camps Need for quality construction and energy efficient buildings drive costs 23 23

24 Looking to the Future Data on work camps and rotational workforce is limited. Regular reporting that compares place of work to place of residence will be valuable. Measuring the impacts of camps on the community will also be important. Improving information gathering enhances proper workforce planning. Minimizing community and environmental impacts and maximizing worker quality of life are integral to the workplace culture

25 Summary The practices associated with rotational workers in all sectors of Alberta s oil and gas industry are driven by industry need and worker choice. The oil and gas industry operates in regions where local labour supply pools aren t able to meet the need for skilled workers; a rotational workforce is necessary for projects to be viable and for companies to respond to changing labour requirements through project lifecycles. Providing choice to workers is critical for the industry to attract and retain a mobile, skilled workforce drawn from national supply pools. Workforce mobility and rotational work will continue to be a significant factor in Canada s economic wellbeing

26 Rotating, Not Relocating Released on June 29, the full report, Rotating Not Relocating: Alberta s Oil and Gas Rotational Workforce, is available at The report describes in more detail the nature and experience of Alberta s oil and gas rotational workforce that reside in camps, including: Drivers for the rotational workforce Demographics Community impacts Analyzing performance The accompanying fact sheet attempts to demystify some commonly held misconceptions

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