A new report by PetroLMI forecasts that Canada's oil and gas industry is at risk of losing 12,500 jobs this year.
About 12,500 Canadian oil and gas jobs are at risk this year, according to the 2019 Labor Market Update report from the PetroLMI division of Energy Safety Canada.
Citing low commodity prices, capital spending declines and market access uncertainty, the report provided an employment outlook for 2019 and forecasts 173,000 jobs this year – a 23 percent drop since 2014.
The report looks at current spending projections for the oil and gas industry subsectors including E&P, oil sands, oil and gas services and pipelines.
“Until such time as additional export capacity becomes available, the employment outlook for Canada’s oil and gas sector will continue to be impacted,” said Carol Howes, vice president of communications and PetroLMI, Energy Safety Canada.
The services sector continues to be the most impacted, challenged with the highest employment risk in 2019 due to lower activity, the report finds.
On the bright side, employment in pipelines is set to grow this year, albeit slightly.
Regionally, British Columbia is expected to fare the best, while Alberta is expected to experience the most job losses. Alberta has had a tough go at it recently, as the province has been grappling with low oil prices and mandated cuts to oil production.
A separate report released by PetroLMI surveyed more than 2,000 Canadians – including industry workers, students, new graduates, job-seekers and those who transitioned to other industries – found that more than half believe the oil and gas industry remains a viable career option.
But 40 percent of those still employed in the industry believe their jobs remain at risk, according to the report.
The industry will need to continue to attract a variety of workers, particularly young workers, for succession planning and to fuel future development. The challenge for the oil and gas industry will be remaining an attractive career option if employment continues to contract further.