AWPA reports need for greater training efforts in oil and gas sector

Image credit: flickr User: CParthe

The Australian Workforce and Productivity Agency (AWPA) reports that a great number of workers need to be trained in order to service the $200 billion worth of major gas projects which are being constructed in Australia.

Image credit: flickr User: CParthe
Image credit: flickr User: CParthe

According to the media release by APPEA (The Australian Petroleum Production & Exploration Association) the Resources sector skills needs 2013 report by AWPA calls for a greater national training effort as the oil and gas sector transitions from construction to operations.

“There is already a high level of investment in training and skills development and the report released today shows an even greater effort is required. The report predicts that more than 22,000 new jobs will be created in the industry by 2018 when most of the $200 billion worth projects under construction move into production. Ensuring we train enough Australians to fill these permanent, well-paid roles will be a challenge requiring a strong collaborative effort by industry, government and the education and training sectors,” said APPEA Chief Executive David Byers.

“But Australia must aim much higher. There is the potential for another $180 billion in investment in the oil and gas industry over the next two decades, which would create 150,000 jobs across the Australian economy. If Australia is serious about capturing this next wave of natural gas projects we need to get serious about enhancing our international competitiveness in the face of growing global competition. The reality is the pipeline of opportunity will be turned off if we don’t make a greater effort to be more competitive.”

Mr Byers further added that productivity is another area that needs special attention. According to him, flexibility in the labour market is crucial and steps need to be taken to ensure less duplication and inefficiency in the regulatory processes that currently apply to major projects.

“For example, high labour costs and low productivity in the construction sector means construction work in Australia can cost up to five times more than on the US Gulf Coast. Our construction costs per installed tonne of capacity in the oil and gas industry are among the world’s highest,” said Mr Byers.

“Australia has many natural advantages as a gas producer and exporter, but if we fail to address the high cost of doing business in this country, the big LNG projects currently under construction around the country could be the last for some time.”