LABOUR MARKET OPPORTUNITIES IN B.C.’S LNG SECTOR WITH CHRISTIAN SAINT CYR BC LABOUR MARKET REPORT OPPORTUNITIES IN B.C.’S LNG SECTOR First Impressions… Do you think the time frame of having the bulk of the LNG jobs in place by 2018 is reasonable? Do you think developing five LNG plants is reasonable? How do you feel LNG stacks up against traditional industries such as technology, forestry and mining? OPPORTUNITIES IN B.C.’S LNG SECTOR Session Objectives… 1. Discuss the urgency of the sector and international demand for LNG 2. Examine the proposed timeline 3. Discuss the proposed job creation 4. Share high growth job opportunities 5. Detail proposed strategy OPPORTUNITIES IN B.C.’S LNG SECTOR The Big Picture… 13,000: the number of people BC employs today in drilling and processing natural gas. 82,500: the total direct and indirect jobs expected from the LNG sector between now and 2024. This represents about 1 in 25 BC workers. OPPORTUNITIES IN B.C.’S LNG SECTOR Asian Demand for LNG… OPPORTUNITIES IN B.C.’S LNG SECTOR What jobs do you think will be cultivated by the LNG Sector? OPPORTUNITIES IN B.C.’S LNG SECTOR Top Ten LNG occupations in 2018 1. 11,000 construction trades helpers and labourers 2. 3,800 steamfitters and pipefitters 3. 2,200 welders 4. 1,500 concrete finishers 5. 1,500 transport truck drivers 6. 1,400 carpenters 7. 1,100 heavy equipment operators 8. 1,100 gas fitters 9. 875 purchasing agents and officers 10. 800 crane operators OPPORTUNITIES IN B.C.’S LNG SECTOR Jobs in Construction vs. Operations As these charts show, most of the new jobs will be created in the construction phase, which is expected to peak in 2018 a mere four years from now. | "Upstream" jobs refer to those involving extraction and processing of natural gas; "midstream" jobs refer to those involving the moving of gas to the coast; and "downstream" jobs refer to those involving liquefying and transporting the LNG off the BC mainland. OPPORTUNITIES IN B.C.’S LNG SECTOR The Premier’s LNG Working Group Final Report’s recommended strategies for LNG skills training in B.C. are: 1. Develop an ongoing structure with equal representation from industry (including contractor associations), organized labour, First Nations, and governments to participate and enable the skills training and workforce planning issues leading to employment in the LNG opportunity. The structure should be established in co-ordination with other LNG workforce activities already underway. 2. Begin planning and training British Columbians immediately for the LNG opportunity. 3. Training should be co-ordinated throughout B.C. and Canada to maximize the effectiveness of the existing labour pool and lead to employment. 4. Identify and remove barriers to entry into training while supporting literacy and essential skills development to support local and B.C. work-based training and employment. 5. Increase the efficiency and effectiveness of the investment in training by leveraging successful government, union, and private training programs. OPPORTUNITIES IN B.C.’S LNG SECTOR The Premier’s LNG Working Group Final Report (Continued) 6. In conjunction with recommendation #7, industry, governments, organized labour, and First Nations should partner to conduct cam- paigns and career fairs in high schools, colleges and cultural centres on the LNG opportunity. 7. Promote awareness of job opportunities in B.C., including work- based training with a focus in rural, northern, and First Nations communities 8. Establish an inventory of individuals currently in apprenticeship pro- grams and other nonapprenticeship skilled workers seeking employment. Include in the inventory journeypersons who are available to provide mentoring and on-the-job training to apprentices. 9. Aspire to a goal of having 25 per cent overall of the apprenticeable trades workforce on LNG-related construction projects and whether funding for apprentices can come from industry and/or government. In addition, government should consider having a minimum number of apprentices on public infrastructure projects. 10. Review the approach used by private-sector unions with respect to apprentices and by First Nations with respect to training to deter- mine if their approach can be improved or applied more broadly. OPPORTUNITIES IN B.C.’S LNG SECTOR The Premier’s LNG Working Group Final Report (Conclusion) 11. Explore and analyze projects that have used a mobile workforce. In addition, it is important to identify and resolve the barriers to worker mobility in relation to trades qualification and certification. 12. Target areas of opportunity by focusing on workers finishing construction or other projects in all areas of the province. 13. Explore best practices within the LNG sector and other competing industries with respect to the conditions necessary to attract a mobile workforce. 14. Develop a plan to support workers from other jurisdictions to stay in B.C. 15. Further refine and develop a process for the use of Temporary Foreign Workers in the context of an overall strategy that identifies the work- force needs of the LNG opportunity and immediately begins a skills training plan to develop as many British Columbian and Canadian workers as possible to meet those needs. The structure contemplated in recommendation #1 will be seized with the responsibility to refine and develop a process for the use of Temporary Foreign Workers. OPPORTUNITIES IN B.C.’S LNG SECTOR Risky Business… New projects in Western Canada, the US Gulf Coast and East Africa pose particular technical challenges, but more important are the non-technical challenges: remote locations, political and environmental sensitivities, new stakeholders, regulatory landscapes and organizational models. "Out of the last 12 LNG projects, 10 went over time and/or budget – many by 40 to 50%." - Deutsche Bank