Oil field faces labor shortage that could slow recovery, industry says

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Canadian energy contractors face a shortage of drilling workers that could slow the recovery of oil fields.

Oil and gas companies are increasing production to meet global energy demand as COVID-19 restrictions ease. Oil prices have hit seven-year highs, with West Texas Intermediate this week trading above US $ 80 a barrel.

The Canadian Association of Energy Contractors says there were 175 active drilling rigs in Canada last week, compared to just 75 during the same period last year. It indicates that employment in the sector has increased 130 percent year over year.

But the industry group says labor shortages are a problem. He says some companies that can’t find workers are struggling to keep up with customer demand for the platforms.

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Companies are struggling to re-attract workers to the oil and gas industry after a six-year economic downturn. Some drilling workers left Western Canada while others moved to other industries.

The Canadian Association of Energy Contractors says wages for drilling workers have already risen by around 10 percent from last year due to market demand.

© 2021 The Canadian Press


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