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Page added on January 23, 2012
Canada Doesn’t Have Enough Workers To Tap The Oil Sands, And The Shortage Is Getting Worse
This is almost hard to believe from an American perspective, but the biggest obstacle to growth in the Candian oil sands is a labor shortage.
A labor shortage and resultant cost inflation are already causing oil producers to cancel new projects, according to investment bank Raymond James.
Going forward this problem will get worse, says Raymond James’ Justin Bouchard:
Of the factors leading to a rise in cost inflation, we believe labour shortages are the most significant. This statement is by no means a revelation as labour shortages have been a challenge in the past. However, where our view may differ from the common mantra of oil sands industry participants is in the magnitude of the problem. For one, it is worth pointing out that we are already above peak employment levels experienced during the 2005-2008 oil sands boom. This time around, there is a lack of slack labour availability from the traditional labour pools for the oil sands industry (i.e. east coast Canada) and looking to the higher unemployment levels in the United States as a means to solve the problem is a false hope in our view. Furthermore, the next decade will see a transition in the makeup of the labour force in the oil sands as the older (and more experienced) baby-boomers begin to retire at an accelerating rate, leading to an increase in the overall rate of attrition within the labour force, while also leading to a loss of industry expertise as older and more experienced employees are replaced by younger and less experienced individuals. This will likely compound one of the key issues that has plagued the oil sands industry – labour productivity.
8 Comments on "Canada Doesn’t Have Enough Workers To Tap The Oil Sands, And The Shortage Is Getting Worse"
MrEnergyCzar on Mon, 23rd Jan 2012 9:40 pm
Maybe the workers don’t want to be involved with stripping the Boral Forest away before having to mine the sand below it…
MrEnergyCzar
DC on Tue, 24th Jan 2012 12:13 am
As usual, conflicting messages being sent out. Yahoo prob got this wrong(suprise)In Fort Mac they are really saying-dont come here, no jobs. We got nuff tar-sanders as it is. There is no labor shortage.
DC on Tue, 24th Jan 2012 12:13 am
As usual, conflicting messages being sent out. Yahoo prob got this wrong(suprise)In Fort Mac they are really saying-dont come here, no jobs. We got nuff tar-sanders as it is. There is no labor shortage.
BillT on Tue, 24th Jan 2012 2:26 am
Over-all, it doesn’t matter. The developed world has not considered what the loss of millions of educated (real mid 20th education) experienced (as in ‘use common sense’) and dedicated workers will mean to businesses. All the younger generation wants is to sit back, buy a few stocks and retire. Instead, these same corporations are pushing out the older, higher paid workers for young cheap labor. By the time they realize that they are not able to stay in business, it will be too late.
PrestonSturges on Tue, 24th Jan 2012 3:22 am
Well there’s no reason canadian companies can’t bring in American workers on a NAFTA visa. With a letter from the company, getting a NAFTA visa issued is roughly as hard as getting a COSTCO membership.
Ham on Tue, 24th Jan 2012 7:02 am
Job description should be; You too can help
destroy the Planet!
BillT on Tue, 24th Jan 2012 7:42 am
Is it that there are no workers who want to freeze for most of the year, breath toxic fumes, and be part of those contaminating the rest of the world? Obviously it must be a combination of working conditions and living conditions that prevents a long line of applicants in today’s 20+ percent unemployment.
BillT on Tue, 24th Jan 2012 7:55 am
Could it be that the requirements may be hard to meet? Some of those required for a warehouse tech.
1. 5 years related experience in the oil and gas industry.
2. Excellant trouble shooting skills, organizational skills, communication skills.
3. Proficient with Microsoft products.
4. JD/Maximo experience.
5. Class 5 Canadian drivers license.
http://oilsands.infomine.com/careers/jobs/listings/1.455772/warehouse.technician.aspx
Just how many do you think have these and another 5 mentioned skills that want to work in northern Canada?