More than 212,000 people were working in the sector in October, up by 14,500 and its highest point since February 2015
It’s been a tumultuous decade for thousands of workers in Canada’s oil and gas industry, but a new report notes employment across the sector has reached its highest level since February 2015.
More than 212,000 people were working in the oilpatch in October, an increase of 14,500 jobs in the past 12 months.
Industry experts and leaders believe the need for skilled workers will climb as energy demand rises around the world, and the industry grows in a disciplined manner.
“Oil production in Alberta is hitting new highs, the same with gas production. We’ve got the TMX (Trans Mountain expansion) that needs to be filled. We’ve got LNG facilities,” analyst Jeremy McCrea of BMO Capital Markets said Monday.
“There is a lot of optimism . . . and as a result, a lot of these oil and gas companies are hiring people.”
A BMO report issued Monday notes employment within the Canadian exploration and production subsector, which includes jobs in roles such as geologists and engineers, reached 112,000 in October, representing a 10-year high.
In the oil and gas services industry, which includes companies that drill and complete wells, employment increased by 16.6 per cent — or 10,700 jobs — from a year earlier, according to data from Careers in Energy.
Meanwhile, jobs in refining fell by 14 per cent from a year ago, while pipeline employment was down almost 28 per cent, although the overall industry saw a seven per cent increase.
The Canadian oil and gas industry was battered by thousands of layoffs following the collapse of global crude prices in 2014. An ensuing wave of consolidation during the pandemic has squeezed parts of the sector in recent years.
BMO reports the number of public oil and gas companies in Canada has dropped by 62 per cent over the past decade.
Industry capital spending fell by nearly 40 per cent during the first year of the COVID-19 pandemic to $21 billion, but has steadily increased to just above $40 billion this year, according to ARC Energy Research Institute.
Coming out of the pandemic, most companies have remained disciplined in their growth plans, focusing on paying down debt and returning money to shareholders, said McCrea.
Yet, modest spending increases have led to more drilling activity — and more jobs — along with record oil production in Alberta.
Globally, jobs in the energy sector increased by almost four per cent last year to more than 67 million positions, with the biggest hikes seen in clean energy. The oil and gas sector added more than 600,000 positions in 2023 to hit 12.4 million employees, the International Energy Agency reported this month.
In Canada, a state of the industry report by Enserva recently forecast almost 5,900 wells are expected to be drilled next year, up slightly from 5,720 this year, with investment flowing into top plays such as in the Montney, Clearwater and Duvernay.
It projects employment in the oil and gas services sector will increase by 26 per cent throughout this year from 2023 levels, although that growth rate will slow to about 3.5 per cent — or 2,600 jobs — in 2025.
“We have people coming back into this industry. We will need more,” Enserva CEO Gurpreet Lail said in a recent interview.
“We’re predicting 40,000 new jobs coming online by 2030 . . . When we’re looking at where we are headed right now with production and the demand for Canadian oil, we need to hire in the service sector.”
More people are also interested in training to help find work within the sector. For example, the University of Calgary is relaunching its oil and gas engineering program, which was paused three years ago due to low enrolment.
“We determined this was the right move to support evolving energy sector needs,” Anders Nygren, interim dean at the university’s Schulich School of Engineering, said in a statement.
However, the growth in jobs isn’t a full-fledged boom like in previous decades — more than 225,000 worked in the industry in October 2024 — when companies rapidly ramped up drilling as prices were high, noted industry veteran Dale Dusterhoft, CEO of Prostar Energy.
Today, producers are more measured and the industry is more efficient. As well, energy companies are able to attract new staff and retain workers, he added.
“Overall, as an industry, we do more with less, and that includes less people as well,” Dusterhoft said Monday.
“Just talking to my colleagues, retention is much better than it used to be because we don’t have these booms (and) busts, it’s a little more predictable. And people know they can make a good living without having to worry about being laid off in the next bust.”
With next year’s capital plans rolling out, McCrea expects most companies will remain cautious and spending will be largely flat in 2025, although some producers have reported modest increases. Enserva forecasts a one per cent bump in capital spending in 2025.
On Monday, MEG Energy unveiled a $635-million capital budget for next year, which includes $130 million for a facility expansion that will boost its output by 25,000 barrels per day. The oilsands producer is expected to spend about $550 million this year.
At natural gas producer Peyto Exploration & Development, CEO Jean-Paul Lachance said the company’s preliminary plan is to spend between $450 million and $500 million next year, similar to this year’s guidance.
“It’s a great opportunity for a young person because the industry, I think, is going to be thriving in the next few years,” Lachance said.
“I feel like our oil and gas industry has a lot to offer.”
Chris Varcoe is a Calgary Herald columnist.