The region’s oil and gas industry is looking to form a pipeline
to new workers as part of a proposed study of the industry’s
growing workforce needs.
Conducted through the North Central Pennsylvania Regional
Planning and Development Commission’s Workforce Investment Board,
the report – which grew out of recent discussions with officials
from American Refining Group – would help dovetail and revitalize
the aging industry’s workforce through educational offerings at
secondary and post-secondary schools.
“It will basically let the education sector know what is needed
in this field and let the companies know what the job market is
like,” Pam Streich, workforce development planner for North
Central, said Monday.
The first of its kind study would encompass McKean, Potter, Elk,
Cameron, Clearfield and Jefferson counties and also coordinate the
effects of the region’s industry, education, workforce and economic
development interests and possibly help form an Energy Industry
Partnership, which would be charged with meeting the study’s
objectives.
“We are a very old industry and it is the same with our
workforce,” Robert Esch, vice president of blending and packaging
at ARG, said. “Our workforce is growing and we are in need of
younger skilled workers right now.”
According to figures released earlier this year by the state
Department of Environmental Protection, the state realized a record
increase in the number of oil and gas drilling permits issued by
the agency – a hike of 32.4 percent between 2004-05. The number of
wells drilled in McKean County – the highest in the state – rose by
235 wells, from 699 in 2004 to 934 last year.
Nearby Warren and Forest counties also saw increases in the
number of wells drilled.
Officials said the strain on the workforce is a direct result of
wellhead (wholesale) prices reaching historic highs as well as
increased levels of drilling, with the trained laborer pool
remaining stagnant.
“When you look at our history as a business and industry, we’ve
had our share of downfalls and recently enjoyed a change in the
market,” Esch said. “But, one thing that has become visible to us
is there needs to be something done about the workforce. From the
exploration side of things, they (drillers) are thrilled with this
idea. These are still good jobs.”
According to Streich and the Pennsylvania Department of Labor
and Industry Center on Workforce Information and Analysis, the
average wage of employees in the Energy Industry Cluster – oil and
gas extraction; utilities and petroleum and coal products
manufacturing – increased by 20 percent between 1995 and 2004.
The figures were arrived at by using the National American
Industry Classification System. The figures also indicate the
energy industry is experiencing an aging workforce that will
require significant replacement over the next 10 years. However,
with changes in the oil industry regulations, hiring people with
the appropriate skills will not be easy, with entry-level jobs such
as roustabouts, rig hands, pumpers and service personnel being the
hardest to find.
Officials said the economics of the industry don’t appeal to
young workers, who are choosing career paths that are more stable
and lucrative.
Streich said in 2004, the NAICS determined that statewide
employment in the three areas stood at 46,969, while in the North
Central region, there were 1,317 workers in the field.
“My personal opinion is we need to look at what is going to
happen in the next 15 years,” Esch said. “While alternative fuels
will have their place, I see the traditional oil and gas technology
as still being predominant.”
Since his State of the Union address in January, President Bush
has been pushing for increased federal research into alternative
fuels, especially ethanol, noting that America was “addicted to
oil.”
Across this region, officials said the crude oil and natural gas
exploration industry is centered around small to medium-sized
independent businesses, many of which are family-owned operations
handed down through the generations. The independents produce oil
and gas in 31 of the state’s 67 counties – most of the crude is
produced in McKean, Warren, Forest and Venango counties.
Esch said he recently read an article indicating that petroleum
engineering was a growing course of study, noting the proposal
would also target technical and vocational schools.
There is precedence for such a program. In the past, Bradford
Area High School offered an oil and gas program.
“Hopefully we’ll see the benefit of this in a couple of years,”
Esch said.
The Workforce Investment Board is currently soliciting
statements of intent for the study, which are due by Monday.
Proposals are due by April 10, with a final report due by June
30.
