JOHANNESBURG (miningweekly.com) – As Australia’s resources sector shifts from construction into operations and as major oil and gas projects come become operational, a new industry response on skills development is needed to avoid an undersupply of critical skills. 

This is one of the key findings of the ‘Resources sector skills needs 2013’ report, which the Australian workforce and Productivity Agency (AWPA) published on Monday, examining the changing skills and employment outlook for the resources sector to 2018.

Based on economic modelling of growth scenarios, the report finds a transitioning jobs profile between 2013 and 2018 with professional and specialist jobs on the rise and trade and labouring positions shrinking.

Employment in Australia’s burgeoning oil and gas operations is likely to increase by 57%, while mining operations employment is likely to steadily increase by 7.4%. The big decline will be in resources project construction, where low growth scenario modelling finds employment is likely to peak at 83 324 workers in 2014, and then fall to 7 708 in 2018.

The report predicts that more than 22 000 new jobs will be created by 2018 when most of the $200-billion worth of major gas projects currently under construction move into production.

“As our resources sector transitions to an operations phase and we embark on major liquefied natural gas and coal seam gas projects, resources companies will face challenges in recruiting and retaining workers with the required specialist operational skills and experience,” said AWPA chairperson Philip Bullock.

“Global competition for skilled workers is increasing and with a long lead time required to develop critical skills, industry, government and education and training providers have an opportunity now to work together to develop responses to meet these skills challenges. Workforce planning needs to proceed quickly to ensure domestic workers are available to fill time-critical shortages in the second half of this decade.”

Australian Petroleum Production and Exploration Association (Appea) CE David Beyers commented that there was a potential for another $180-billion in investment in the oil and gas industry over the next two decades, which would create 150 000 jobs across the Australian economy.

“If Australia is serious about capturing this next wave of natural gas projects we need to get serious about enhancing our international competitiveness in the face of growing global competition. The reality is the pipeline of opportunity will be turned off if we don’t make a greater effort to be more competitive.

“Skills development is critical, but so too is productivity and this is an area where much more needs to be done. We need more flexibility in our labour market and less duplication and inefficiency in the regulatory processes that currently apply to major projects. For example, high labour costs and low productivity in the construction sector means construction work in Australia can cost up to five times more than on the US Gulf Coast. Our construction costs per installed tonne of capacity in the oil and gas industry are among the world’s highest.

“Australia has many natural advantages as a gas producer and exporter, but if we fail to address the high cost of doing business in this country, the big LNG projects currently under construction around the country could be the last for some time,” Beyers said.

The report’s reference group included representatives from the Minerals Council of Australia, Australian Petroleum Production and Exploration Association, Australian Constructors Association, SkillsDMC, Australian Council of Trade Unions and Construction, Forestry, Mining and Energy Union.

DOMESTIC SUPPLY

Reference group chairperson and AWPA board member Keith Spence said ‘Resources sector skills needs 2013’ looks at “maximising the opportunities for Australians to participate in the rewards of the mining boom in the sense of the job opportunities which will be offered”.

He commented that, in the short term, Australia might have to bring in overseas experience to fill positions, but that there needed to be a commitment to training Australians to occupy these positions in the longer term.

Spence added the report identified opportunities for industry to retain and retrain trade workers to take up operations roles as the sector’s construction phase shifts into operations.

“Having people who are multi-skilled is highly valuable, so those trade workers that are Transitioning out of construction into operations that can have these supplementary skills can become extremely valuable and attractive employees in the future,” he said.

To ensure the resources sector increases the domestic supply of skills to meet future demand the Resources sector skills needs 2013 report recommends:

• Industry works with the education sector to develop a strategy to support skills development of the domestic workforce for jobs in the oil and gas operations sector.
• Industry input to encourage the development of science, technology, engineering and maths skills.
• Industry support for career advice strategies to promote careers in the resources sector.
• Scoping of a postgraduate qualification in automation for mechanical, electrical, mining and oil and gas engineering graduates.
• The introduction of pilot transitional training and apprenticeship programmes to develop operational skills for the oil and gas sector.