6. Flagship Initiative Development:

ENERGY

To review the Energy Industry Final Report in its entirety please visit our website at www.actionsouthwest.com.

1. Address Labour Shortage

Challenge

The recruitment of all levels of personnel from skilled to semi-skilled to trades persons continues to be an issue for energy sector companies in the Southwest.

Contributing to the labour shortage situation are the skilled trade persons who leave their trade to accept positions in the energy sector as operators, attracted by the steady work and high wages.Further, is the proximity to Alberta and to the lure of energy related jobs in larger cities with the attractions young people seem to find compelling.

The recruitment of young people with a high school diploma for employment in the energy
industry continues to be an obstacle for most energy sector companies.

Advertisements in local and regional newspapers along with word of mouth are the basic methods utilized to entice new employees. Major energy companies have identified these methods as somewhat successful, yet, to fill existing manpower shortages, employees are being recruited from the Atlantic Provinces.

The recruitment and retention of local high school students who do not attend college or
university after graduation is considered a prime source for future energy sector employees.

Solution

The energy industry, in consultation with the educational institutions, must decide to work together as a team to improve economic conditions in Southwest Saskatchewan.

Both industry and education industries are interested in the welfare of young people and, by providing both education and employment in concert, can significantly affect economic growth and population rise through youth retention in Southwest Saskatchewan.

General Approach

Current businesses and educators need to understand or be reminded of the positive qualities of the region and why businesses and residents chose to live and invest here.

These sectors need to acknowledge that providing local area jobs to graduating high school students and indeed, all young people, is the life blood of continued growth in the Southwest, meaningful dialogue and concrete plans to ensure this happens can occur.

Representatives from these two sectors are required to meet and determine if there is sufficient common ground and value to both sectors to develop a program to assist graduating high school students find employment in the local energy sector.

The general concept of utilizing in-class presentations to every graduating high school student in Southwest Saskatchewan must be agreed upon in principle.

Action Plan

1. A committee should be formed that provides representation from the energy sector and from each of the high school division administrations in the Southwest.
2. The committee must develop the roles and responsibilities for each sector.
3. The energy representatives should develop an outline of the types of information to bepresented in a class environment for review by the committee. Ideas identified to date include safety awareness issues such as H2S Alive (sour gas education), the energy industry and the environment, oil and natural gas exploration, drilling, production, service and end uses. Contributions to the economy, types of employment, nature of individual jobs and skills/educational requirements.
4. The education sector must identify the business process to be utilized in order to allow inclass presentations.
5. The target audience of grade XII students in each school division in the Southwest must be agreed upon.
6. The energy sector must be prepared to offer its’ employees as willing participants in course presentation.
7. The educational sector must be prepared to participate in course review and presentation.
8. After the formulation of plans, detailed discussions must occur on the funding participation by both sectors. Programs of this nature have a cost, both in preparation and in presentation along with classroom costs.

Possible Sources of Leadership: Energy companies and educators located in the southwest communities of Shaunavon, Gull Lake, Maple Creek and Swift Current. Facilitator services provided by Saskatchewan Rural Development. Course development expertise from the Educational institutions and/or the Community College.

2. Develop Pre-Employment Training Programs to Provide Job Skill Development

Challenge

Pre-employment training for the types of work available in the energy sector, of sufficient
content and duration, is not available in the Southwest.

The Atlantic Provinces and Alberta educational institutions offer courses of pre-employment training to those wishing to pursue a career in energy. Development of this type of course requires a sufficient client base to achieve success.

Solution

Develop a General Skills training program for those graduating from high school and interested others to provide an advantage to those seeking employment in the energy sector.

The energy sector must be convinced that a pre-employment course tailored to the industry would be of value and would contribute to a reduction in recruitment and training costs for new employees. Similarly, the college level local institution must be convinced there would be a cost recovery should this type of pre-employment course be developed.

General Approach

Both the energy industry and the educational institutions must recognize that solutions effecting reductions in new employee costs can only come with joint collaboration. A well thought out and implemented pre-employment training program must be viewed as a regional priority with participation from all communities. Buy in and support from the business sector will determine the success of this type of program.

Action Plan

1. Arrange a meeting with major energy and school administrators to discuss the approach required.
2. Contact SAIT, NAIT and the Atlantic Provinces colleges to determine the curriculum utilized.
3. Define the level of support from the energy industry for pre-employment classes.
4. Determine the budgetary and financial cost sharing mechanisms.
5. Research federal and provincial grants available.
6. Develop the curriculum and length of study.
7. Arrange instruction required.
8. Advertise, advertise, and advertise.

Possible Sources of Leadership: Energy companies and educators located in the southwest communities of Shaunavon, Gull Lake, Maple Creek and Swift Current. Facilitator services provided by Saskatchewan Rural Development. Course development expertise from the educational institutions and/or the Community College.

3. Add Energy Sector to the Work Experience Program in High Schools

Challenge

Students in high school have a myriad of opportunity upon graduation including determining their future course of education or work that will influence them throughout their lives.

The energy industry must determine a method to assist graduating students who choose not to commit to further continuing education such as university or college to choose the energy industry as a potential source for life long employment.

Solution

Provide graduating high school students with sufficient information and education on the energy industry that they may make an informed choice as to their future employment endeavors.

General Approach

An Alberta program known as RATS (Registered Apprentice Training Program) is offered and managed by the energy and educational sectors in Alberta. This program consists of a student actually being on a rig site for one morning a week for 2-3 months to gain knowledge of the type of jobs available and to gain experience in the oil patch. The objective is to provide students with as much knowledge as possible on the energy sector to assist in choosing future employment, and to take advantage of knowledge and experience gained to find a job.

Students in most high schools in the Southwest have access to this type of program through a school/industry managed Work Experience program. This program is managed by the school system through the utilization of Work Experience coordinators.

The approach is to integrate the energy industry into the Work Experience program.

Action Plan

1. Arrange a meeting with the individual Work Experience coordinators of the high schools with energy sector personnel.
2. Energy personnel must be prepared to commit resources and time to develop curriculum and on-site access.
3. School personnel must be willing to accommodate curriculum development and promote the energy sector.
4. Arrange for the required liability insurance.
5. Identify program size and participation levels.
6. Implement.

4. Improve Utilization of Underdeveloped Gas Wells as Possible Economic Stimulators

Challenge

Abandoning poor performing oil and gas wells creates a significant cost for energy companies. Regulations require extensive sealing and clean up operations before a well can be successfully considered closed. Both environmental and safety aspects must be carefully considered and acted upon.

An opportunity must be determined in order to create a win-win situation to deal with under
performing wells.

Solution

Create an economic solution for under performing oil and gas wells that are no longer viable for commercial production.

General Approach

Determine if a viable economic utilization of isolated or poor performing oil and gas wells can be applied by the possible use of these as economic stimulators. Determine if the oil or gas remaining can be economically utilized for small-scale commercial operations, ie greenhouses etc.

Action Plan

1. Research the number and location of isolated and/or poor performing oil and gas wells.
2. Determine those that are in close proximity to a potential existing commercial operation such as a greenhouse business.
3. Calculate the amount of oil/gas that is anticipated remaining in these wells.
4. Identify the ownership and status of the mineral rights.
5. Determine the cost of reopening one of these wells for small commercial operation.
6. Determine the regulations required to operate and maintain.
7. Identify the abandonment responsibilities.
8. Identify potential partners from both the business and energy sector that may find this program of interest.
9. Identify further processes required.

Possible Sources of Leadership: Energy companies and agricultural producers located in the southwest. Information on processes involved from the provincial department of Industry and Resources.

5. Improve Access to Materials

Challenge

The energy industry is constantly challenged to have the right materials at the right place at the right time.

To review the potential for a multi-discipline warehouse potentially cost shared by various energy sector companies and housing miscellaneous inventories from new and used to salvaged and repairable.

Improving material availability is always a challenge, and to do so while maintaining economic viability is even more so.

Solution

Review various alternatives with the intent of improving joint collaboration by energy sector companies to decrease each companies risk.

General Approach

Identify several alternatives to complement the existing material supply in the Southwest. There are a large number of supply businesses in the Southwest specifically tailored to the energy industry.

Action Plan

1. Bring several prominent energy companies together to discuss materials.
2. Determine the types of materials that would provide an economic advantage should the delivery time be reduced significantly.
3. Determine if the joint operation of a local managed inventory warehouse would be of benefit economically.
4. Review the potential for enticing out of province suppliers to house inventory in closer proximity to the oil patch.
5. Determine the viability of existing local suppliers adding long lead-time materials to their existing inventories.
6. Determine a further course of action.

Possible Sources of Leadership: Energy industry material handlers and procurement personnel.

6. Refurbish Used Inventory to Industry Standards

Challenge

To create a better economic solution to a situation that normally provides for high repair costs.

Solution

Allow for the refurbishment of specialized used materials locally thereby reducing significant transportation costs and long lead times.

General Approach

Investigate if there is sufficient interest in determining if the local refurbishment of material items to standards such as ANSI is warranted. Further determine if this interest can be economically justified.

Action Plan

1. Identify the types of materials and costs that are associated with refurbishing at out of province locations.
2. Inventory the businesses in southwest Saskatchewan for applicable expertise.
3. Determine the refurbishment volume available with local business.
4. Develop a pilot project to ensure required costs and expertise comply with requirements.
5. Determine future course of direction.

Possible Sources of Leadership: Utilize existing expertise in machine shops, material suppliers and energy personnel.

Southwest
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