NEW ZEALAND ENERGY 2008

Just the usual crisis for NZ oil patch

THE New Zealand petroleum sector’s skills and employment difficulties are no worse than those afflicting the industry in other countries or affecting other sectors of the New Zealand economy, according to an independent report released today.

Just the usual crisis for NZ oil patch

But better pay and training is needed to widen the available pool of skilled workers if the industry’s long-term health is to be assured, the study found.

The report – “Exploring the Challenge – New Zealand Oil & Gas Skills Survey” – written by New Plymouth-based Arete Consulting for the Petroleum Exploration and Production Association of New Zealand (Pepanz) said all participants in the industry were currently experiencing difficulties filling roles.

However, the current skills shortages – most apparent at trades, operations and maintenance, refining and processing, and maritime levels – were on a par with other sectors of the New Zealand economy.

New Zealand’s petroleum sector was experiencing similar trends and problems to the rest of the global oil and gas industry – an ageing workforce, reduction in graduates in relevant disciplines, and skill shortages in critical areas such as subsurface roles and engineers, according to the report.

The shortages could be largely attributed to the recent acceleration of petroleum exploration, production and project development, the report added.

Future staffing requirements would need to be met by increased productivity of the existing workforce, encouraging deferment of retirement, or seeking individuals with transferable or lower skills and training these people.

The report also said that remuneration packages needed to be reviewed, but that solutions should focus mainly on training and building skills for the future.

Pepanz executive officer John Pfahlert welcomed the report.

“It’s good to know there is no real current crisis, though it's hard to attract top professionals, particularly when New Zealand is competing with Australia for similar personnel,” he said.

“Australia has a more buoyant economy, particularly in the petroleum and mining sectors, and is often able to offer better salary packages.

“However, we hope that working in the temperate climate of New Zealand, rather than in the middle of an Australian desert, will still appeal to some people.”

The report also said more skilled and experienced trainers were necessary to train staff and so alleviate future skill shortages.

Highly qualified professionals, especially those with subsurface roles, would need to be sourced internationally in the short-term, and more effort made to retain staff, especially in various engineering disciplines.

The New Zealand Government could also assist through increased industry promotion of opportunities and potential benefits, along with further training initiatives, the report added.

Operations and maintenance would be the sector requiring the greatest additional skills and resources over the next 5 to 10 years. An estimated additional 167 people would be needed, across all disciplines, as current known projects came onstream.

Any additional major projects or developments could so stretch manning requirements that some might go unfilled and some services not met, the report said.

The 2006 Census recorded 1607 people as working in the New Zealand oil and gas industry.

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