In 2014, the oil and gas industry spent more than $125 billion on exploration, development and production activities in Canada, supporting more than 720,000 direct and indirect jobs. With an anticipated $31 billion reduction in capital and operational expenditures in 2015, the Canadian economy could lose as many as 185,000 direct and indirect jobs related to the oil and gas industry, a 25 per cent decline from 2014, if spending patterns were to remain the same when compared with previous years.
This is according to a new employment impact assessment released today by the Petroleum Labour Market Information (PetroLMI) Division of Enform (formerly the Petroleum Human Resources Council). Based on industry expenditure estimates provided by ARC Financial with inputs from the Canadian Association of Petroleum Producers (CAPP) and using Statistics Canada’s interprovincial input-output (I/O) model, this assessment examines the impacts to both direct jobs, such as geological engineers and plant operators, and indirect jobs, such as drilling contractors and helicopter pilots.
The oil and gas industry has already experienced significant impacts to its labour force since the price of oil started its decline last November. If oil prices continue to remain low, we anticipate additional reductions to spending and jobs before things start to turn around.
History has shown, however, just how resilient this industry, and its people, can be. Despite the challenges it has faced over the last several decades, the Canadian oil and gas industry and the people who drive it to succeed have still managed to increase output, boost profitability and process efficiency, and deliver products out to new international markets year over year.
Read the news release.