Archived News for Industry Professionals
Australia’s skills shortage is a major constraint on the growth of the liquefied natural gas industry, according to Macquarie Private Wealth.
Macquarie said operators and contractors were having to fight harder to attract and retain staff, with engineers, geologists and other qualified professionals being increasingly difficult to find.
“UK recruiting firm Hays recently found that Australian energy companies are paying engineers, geologists and other contractors 35 per cent more this year than last,” the firm said.
“Hays also found that professionals in the Australian oil and gas industry look set to earn 90 per cent more than the global average this year.
“These labour shortages and the ensuing wage inflation are a growing concern for the industry.”
The Australian Petroleum Exploration and Production Association recently said $88 billion worth of LNG projects were already under construction around the country while an additional $100 billion worth of projects are on the drawing board.
In Queensland alone, around $50 billion is expected to be invested in the state’s coal seam gas to LNG industry.
Two CSG-LNG projects in the state are currently in the construction phase, representing $31 billion in committed capital expenditure.
Around 5600 people are currently working on the two projects – Santos’ Gladstone LNG and BG Group’s Queensland Curtis LNG, while the sector has the capacity to create 18,000 direct and indirect jobs.
The latest report from Hudson, which surveyed 4852 employers Australia-wide, found the resources sector continued to experience the highest level of employer sentiment with 59% of employers intending to increase headcount during the July-September quarter.
Macquarie said that while the government was moving in the right direction with a range of initiatives to address the skills shortage, the firm believed that importing labour as required was the only viable solution.
Hudson regional Australian executive general manager Neville Andrews said that while it remained to be seen if the government’s initiatives would be sufficient to address the skills shortage, the issue intensified the need for talent management programs to be well thought through and selection procedures robust in order for employers to find and retain employees.
Meanwhile, Macquarie said Oil Search, a partner on ExxonMobil’s PNG LNG project, continued to be the best placed to manage the skills issue, while Woodside Petroleum, Santos and Origin Energy, which are developing projects in Australian LNG hotspots, are likely to be exposed to the skills shortage.
“While operating in the PNG highlands brings its own set of challenges, PNG LNG does not face the labour shortages and powerful unions looks set to hamper progress in Australia.
“Furthermore, PNG LNG’s superior economies should place it in a better position to absorb cost overruns and schedule slippage.”
Beach to increase Parsons reserves
Beach Energy has successfully encountered a six metre oil column at the Parsons-5 development well in the Cooper Basin Western Flank.
FMC Technologies to supply subsea systems for Shell's Prelude Project
FMC technologies has been awarded a contract to supply subsea production and associated topside systems to Shell’s Floating Liquefied Natural Gas (FLNG) facility at the Prelude Gas Field off Australia’s north west coast.
Bureau of Resources and Energy Economics begins operation
The new Bureau of Resources and Energy Economics (BREE) has begun operations as an independent research unit within the Federal resources, energy and tourism portfolio.
Downer EDI wins $50 million Rio Iron Ore contract
Downer EDI has won a $50 million contract for work at Rio Tinto's Warramboo project in the Pilbara.
Greens and industry gulf widens
The dispute between the Federal Greens and the mining industry has intensified after the party urged a debate on measures to slow down the $65.3 billion iron ore sector according to an article published the Australian Financial Review.
Native title agreement signed off for Woodside's Browse Basin LNG project
The Western Australian Government has finallised agreements with the Goolarabooloo Jabirr Jabirr native title claimant group and Woodside Energy Ltd to secure access to land at James Price Point, north of Broome, for the establishment of a Liquefied Natural Gas (LNG) precinct to process gas from the Browse Basin Gas reserves.
Icthys Browse Basin gas project given green light
The Federal Environment Minister Tony Burke has approved Inpex's Ichthys Browse Basin project, including a gas field facility, pipeline and processing facility, under the Environment Protection and Biodiversity Conservation (EPBC) Act 1999, subject to environmental conditions
Innovative coal to diesel plan announced
Petroleum and minerals explorer, Central Petroleum Ltd, and Allied Resource Partners (ARP) have announced agreement to undertake a feasibility study on a $7.5 billion plan to convert coal deposits in the Pedirka Basin in Central Australia to diesel by gasification.
Jupiter begins feasibility study on $1.6B Mount Ida Magnetite Project
Jupiter Mines has commenced a feasibility study on its A$1.6 billion Mount Ida Magnetite Project in the Central Yilgarn region of Western Australia.
Rio Tinto buys Riversdale, appoints new chief
Australian mining Giant Rio Tinto has completed its $4 billion acquisition of Riversdale Mining after the compulsory acquisition of the remaining Riversdale shares was announced. The purchase of Riversdale Mining will significantly expand Rio's operations in Mozambique.
Shenhua continues NSW coal land grab
The Australian has revealed that Chinese mining giant Shenhua has been buying coal rich land throughout New South Wales in an attempt to shore up its coal base in Australia.
Mining giants enjoy cash rich balance sheets
Mining giants BHP Billiton and Rio Tinto are looking to generate up to $20 billion each in free cash flow according to Merril Lynch analysts.
BHP alumina project experiences $1.2 billion blowout
Mining giant BHP Billiton has suffered another cost blowout after it was announced its Worsley alumina project has experienced a $1.2 billion blowout and nine month delay.
300,000 workers needed in resource states
Queensland and Western Australia are set to experience a massive demand in skilled labour over the coming years, with 300,000 workers required to continue economic growth.
Oakajee port in strife
Western Australia’s Oakajee iron ore port and rail project has taken another serious blow after one of the two main developers announced it was struggling to raise the required funding for the site’s construction.
Report into future energy security released
Geoscience Australia has released its Toward Future Energy Discovery, detailing the outcomes and achievements of the Australian Government’s five-year, $134 million Energy Security Initiative.
Carbon tax plebiscite dispute
The Federal Government and Opposition are embroiled in a bitter dispute over the proposed carbon tax, with the Opposition proposing a non-binding $80 million plebiscite over the issue.
Rio speeds up Pilbara development with $637.8 million
Rio Tinto has announced a $637.8 million investment in its Pilbara expansion plans, aimed at fast tracking the development of the company's iron ore production capacity.
Industry responds positively to Critical Skills Investment Fund
Training proposals for construction workers, drillers, electrical technicians and mining workers will be among those considered for funding under the first round of the $200 million Critical Skills Investment Fund.