What next for energy workers?

As Canada rolls out its plans for a green transition, there are fears among some energy workers that they may be left behind.

Though there is a rising interest in renewables, the country is still – for now – heavily investing in traditional energy streams such as oil & gas.

The Canadian Association of Petroleum Producers (CAPP) forecast estimates there will a 22 per cent increase in natural gas and oil investments in 2022.

In addition, CAPP says that capital spending in the sector will increase to $32.8 billion – and Alberta is set to lead all provinces with over 80 per cent of the new spending.

Upstream investments will also increase by 24 per cent, says the Association.

Nevertheless, the oil & gas industry has been beset with issues over the last few years, between oil prices and the current pandemic (and the impact of the pandemic on demand for oil).

Now, Canada’s efforts to effect a green transition and diversification of its energy streams are set to impact jobs in the sector.

Just transition

Solar, wind, hydro – even nuclear – Canadian governments on both a federal and provincial level are looking to future solutions.

But, in parallel, there are increasing concerns over workers in energy and oil & gas being left out in the cold during this transition.

A CBC story from November 2021 brought to light stories of energy workers worried about what Natural Resources Canada calls a “just transition” to green energies. Wages and access to training are huge concerns for workers.

Unifor, one of Canada’s largest unions in the private sector, says as part of its #BuildBackBetter plan that for the government to meet its climate change commitments, it needs to put in place measures which benefit both the environment and workers.

This includes reorienting employment systems and accreditations towards so-called “green jobs”.

“No worker should experience economic collapse in the face of climate change either from climate events or the progression towards an environmentally sustainable world,” says Unifor.

Despite the aforementioned major investments, it seems that the sector is plagued with labour issues.

Layoffs

A recent story in the Financial Post highlights that, due to the sector being impact by layoffs, energy workers are switching to other professions in areas such as construction and manufacturing.

According to PetroLMI, unemployment among oil and gas workers peaked at 16.1 per cent in 2020, though things have recently improved.

A forecast by TD economists published on April 6, 2021, suggests that 50 to 75 per cent of workers directly or indirectly employed in Canada’s oil & gas sector could be displaced by 2050.

The TD report cautions against repeating mistakes of the past (such as the decline in manufacturing jobs which started in the 1980s), and not buy into the assumption that the clean energy transition with absorb all displaced oil & gas workers.

TD says that a robust retraining or upskilling framework could help offset displacement or job loss, this includes specific supports for older workers (such as pension-bridging grants).

Skilled workers

Toronto-based recruiter Steven Cardwell told COS that he used to do a lot of recruitment in oil and gas in Calgary

“I used to a lot of [recruitment] in oil and gas about four or five years ago in Calgary, where things are booming.”

He says now that there aren’t many recruitment jobs out there in the sector – this could be for a variety of reasons, he says, including constraints linked to the pandemic.

“COVID has changed the world, and it’s changed our business tremendously as well,” says Cardwell, though health and safety remains a huge point of interest for candidates (not only in energy but other sectors as well). “There’s always been [a demand] for safety.”

He is currently recruiting for a position in B.C. in the energy sector, which he describes as a highly skilled position.

In fact, as higher demand for very skilled roles could be the way the sector is heading, certainly with the move toward green energies.

“That’s a lot of what we work on right now,” says Cardwell. “Our technical roles, the needles in the haystack.”

Worker safety

So, what does this all mean for worker safety?

Firstly, it is important to consider the mental health of those caught in the middle of this transition. Sectors such as oil & gas are already sensitive to issues such as isolation due to the large number of lone workers and the transient nature of the workforce.

Psychological safety is key to worker wellbeing, and the pandemic has certainly brought its importance to the fore.

Secondly, with new technologies come new risks. What are the hazards of these new sources of energy? It is essential that comprehensive health and safety education and training be integral to upskilling programs for those wishing (or needing) to transition to green jobs.

Traditional sectors such as oil & gas or mining have often been at fore of OHS improvements in Canada. Due the inherent hazards of the industry, oil & gas has frequently been a leader when it comes to safety – and it is imperative that this commitment to safety also transition over to green energies.