Monthly employment data suggests the number of people working in Canada’s oil and gas sector has fallen by more than 14,000 so far this spring, as the sector deals with low oil prices and the economic impact of COVID-19.
Figures published this month by Petroleum Labour Market Information (PetroLMI) say oil and gas employment fell to 162,748 in May from 177,332 in March — a drop of roughly eight per cent. Compared with May 2019, oil and gas employment is down 14 per cent, or 25,600 jobs.
PetroLMI’s data and figures are sourced from Statistics Canada’s Labour Force Survey.
“It’s not just the COVID-19 impact, but also the low oil and gas prices, which are continuing,” said PetroLMI vice-president Carol Howes of the jobs figures.
“We do expect to see some additional layoffs in the next coming months and into next year.”
Howes said she’s not expecting the kinds of layoff numbers witnessed a few years ago after the decline in oil prices in 2014, when direct employment in the oil and gas exploration, services and pipeline sectors stood at about 226,000.
“The sector is already quite, quite thin in terms of the number of people working in the industry,” Howes said. “As a result of that, we only have so much we can cut, so many places we can cut in terms of employment.”
‘The sector is already quite, quite thin in terms of the number of people working in the industry,’ says Carol Howes, vice-president at PetroLMI. (CBC)
North America’s oil industry has been hammered by the economic impact of the COVID-19 pandemic, with demand for fuel plunging as an international price war flooded the market with cheap crude.
The situation spurred oil and gas companies to slash production and cut their capital spending plans by billions of dollars this year. It has also led to job losses.
On Thursday, oil and gas producer Ovintiv — formerly known as Encana — said it has slashed its workforce by 25 per cent as it prepares for more modest growth in the energy sector. The decision affected roughly 650 jobs.
Earlier this week, pipeline giant Enbridge announced that 800 people working for the company would be taking voluntary buyouts, including early retirement, as it aimed to avoid layoffs.
PetroLMI reports that while the bulk of oil and gas employment is in Alberta (128,180 people), thousands of jobs are located in British Columbia (8,304), Saskatchewan (8,940), Central Canada (4,924) and Atlantic Canada (7,680).
Howes said the sector most affected so far appears to be the oil and gas services sector.
“They’re the first sector to be impacted and mostly because if you’re not drilling for oil and gas, those are the jobs that are most directly impacted by layoffs,” she said.
A pumpjack works at a well head on an oil and gas installation in Alberta. The Canadian oilpatch has been hit hard by a drop in oil prices and the economic fallout of the COVID-19 pandemic. (Jeff McIntosh/The Canadian Press)
Elizabeth Aquin, interim president of the Petroleum Services Association of Canada, said a survey of their members in recent weeks found many had seen layoffs in the order of 35 to 50 per cent this year.
She said a tough few months has come on top of several tough years, adding service companies do not want to lay off any more people.
“These workers have years of experience and we are renowned around the world for that technological expertise and our innovation,” she said. “We need to keep the skills and expertise.“
She said while companies in her sector have shed thousands of jobs, it would be worse without the federal wage subsidy. But, she added, not every company that needs the program was able to qualify.
Ottawa also announced that it would spend $1.7 billion to help clean up orphaned and inactive oil and gas wells in Alberta, Saskatchewan and B.C., a move it’s hoped will put some people back to work.
Tristan Goodman, president of the Explorers and Producers Association of Canada, said much of how the coming months play out for the energy sector and its workers depends on pricing and government policy.
He said if benchmark oil prices stabilize above $40 US a barrel — or better still, $45 US — it would help. On Friday, the price of West Texas Intermediate close just shy of $40 US.
Goodman said it will also be important to see how the policies of various governments take hold, including federal loans and loan guarantees aimed at helping small and mid-sized companies stay afloat during the downturn.
“It all comes back in the end to workers,” he said. “It is people, families, jobs.”
There are still many opinions on how quickly economies and oil prices will stabilize given the unpredictability of the COVID-19 pandemic and its impact on industries and consumers.
Matthew Fitzsimmons, vice-president of energy service research at Rystad Energy, believes the employment picture in Canada’s oil and gas sector will be difficult until capital investment returns to a more normal state.
“It’s a tough situation,” Fitzsimmons said.
“But we would expect those jobs, as investment picks up, to come back. It won’t be like flipping a light switch necessarily, because we do see a long road to recovery from a spending standpoint versus where we were in 2019.“
He said Rystad’s expectation is that investment will bottom out in late 2020 and start to increase in 2021, but believes it could take a couple more years to recapture the spending levels seen in 2019.
Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.
In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.
Your level of interest in the company and the role.
Contributing to your employer’s success is essential.
You desire a cultural fit.
Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:
“What are the key responsibilities of this position?”
Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”
“What does a typical day look like?”
Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.
“How would you describe the company culture?”
Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”
Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.
“What opportunities are there for professional development?”
When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.
Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.
Here are my four go-to questions—I have many more—to accomplish this:
“Describe your management style. How will you manage me?”
This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.
“What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”
This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”
“When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”
Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.
“If I wanted to sell you on an idea or suggestion, what do you need to know?”
Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.
Other questions I’ve asked:
“What keeps you up at night?”
“If you were to leave this company, who would follow?”
“How do you handle an employee making a mistake?”
“If you were to give a Ted Talk, what topic would you talk about?”
“What are three highly valued skills at [company] that I should master to advance?”
“What are the informal expectations of the role?”
“What is one misconception people have about you [or the company]?”
Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.
The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.
Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.
Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.
On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.
The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Oct. 31, 2024.
CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.
The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.
Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.
Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.
Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.
On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.
This report by The Canadian Press was first published Oct. 31, 2024.
