Helping the NZ oil industry grow

02 October 2008

An estimated 2,500 more workers will be needed in the Taranaki oil exploration industry over the next 20 years if the sector continues to grow at the current rate, according to a new Department of Labour report.

‘Producing the Talent – New Zealand Oil and Gas Industry Skills Action Plan’ was launched today at an industry seminar in Wellington. It follows several years of work by the department, in partnership with the oil and gas sector, analysing the workforce planning needed in what is an internationally competitive industry.

The report notes that a time of critical shortages, based on retirement age of current employees and predicted industry growth, will be around 2011. It recommends a range of industry-led measures, including a dedicated training facility in Taranaki that could be developed by the industry and government sector together.

It also says that attracting the necessary skilled labour will be the key constraint on growth in the sector. The labour market in Taranaki, the hub of oil exploration and production in New Zealand, is particularly tight and workers will need to be attracted from other parts of New Zealand or other countries.

Speaking at the launch, Taranaki-based Department of Labour labour market knowledge manager Sheree Long said recruiting overseas professionals would be one part of the solution to the industry’s workforce shortages, but training and recruitment of New Zealanders was equally important. This issue was identified as a key theme of the national unified skills strategy. Increases in productivity in New Zealand are going to depend on using the skills of existing workers and ensuring our workplaces provide opportunities for people to work to their full potential.

She said work by the department and the Petroleum Exploration and Production Associate of New Zealand (PEPANZ), in consultation with other interested stakeholders, had determined that a key constraint to industry growth was the supply of labour, particularly technical specialist roles such as geoscientists and seismologists.

A skills survey completed early this year by a Taranaki based working group, had confirmed there were skill shortages in the industry both in New Zealand and globally, caused largely by an aging workforce and a reduction in graduates in relevant disciplines.

The ‘Producing the Talent’ action plan proposes a series of initiatives to increase the number relevant graduates and trades people qualifying, along with ways to attract them to the oil and gas sector in New Zealand. It also proposes initiatives to assist current employees enhance their training, and ways to help employers recruit skilled staff from overseas. 

The oil and gas sector contributes substantially to New Zealand’s economy, including 220 million in royalties in 2007. The sector is the biggest single contributor to the Taranaki region’s GDP, making up 17 percent of the total for the region – and projected to grow to 38 percent by 2026.