oil and gas industry workforce characteristics …needs for housing, delivery of public and private...
TRANSCRIPT
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OIL AND GAS INDUSTRY WORKFORCE CHARACTERISTICS AND IMPLICATIONS
Nancy HodurDean Bangsund
Presented to:Oil and Gas Research CouncilFebruary 19, 2016Bismarck, North Dakota
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Oil and Gas Industry Workforce: Objectives• Gain insights on the characteristic, perceptions and
intentions of the oil and gas workforce.
• Different characteristics than historic workforce.
• Important to understand workforce intentions and motivations regardless of current market conditions.
• Findings valuable for understanding current and future needs for housing, delivery of public and private goods and services
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Workforce Survey Methodology
Stake holder interviews
Online workforce survey
Focus groups
Slowdown presented challenges
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Stakeholder Interviews• Conducted 46 personal interview in 2014 • Instrumental in developing the survey instrument and
identifying key issues• Second round of interviews (additional 22) done in 2015• Many issues identified in 2014 remained in 2015, • Industry focus changed dramatically
• Housing costs• Labor Issues, turnover and poaching• Concerns regarding QoL• Prevalence of rotational schedules and non-resident workforce• Employer provided housing and housing subsidies• Industry focused on costs and improving efficiencies• Voluntary attrition as a result of cut backs• Many workers just returned home
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Focus Groups• Dickinson, Ray, Watford City and Killdeer
• Findings not generalizable to the larger population
• Sampling of themes• Schools viewed positively• Like small town feel• Some staying long term others not• Communities generally viewed positively• Lack QoL amenities and public services, but progress has been made• Addition of police presence was viewed very positively• Some new residents were made to feel welcome others said they were
treated like outsiders…two worlds
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Workforce Survey• Online questionnaire• Enlisted the participation of oil and gas industry firms• Cross section of firms that provided various oil and gas
industry activities• Employers sent an email to their employees with link to
the survey• Considered various methods for reaching workforce
before settling on the online questionnaire• Mail survey• Phone using cell phone billing towers• Intercept surveys• Safety meetings
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Workforce Survey• 15 firms representing ~8,100 employees• ~1,668 Observations
40%
60%
Actual Distribution
Elsewhere
NorthDakota
30%
70%
Sample Distribution
Elsewhere
NorthDakota
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What best describes your job?
Description of Job Observations PercentField operations, less than 2 years experience 136 8%
Field operations, 2 or more years of experience 481 29%Infrastructure construction such as roads, pipelines, municipal services, rail 13 1%
Trucking, transportation 181 11%Professional such as engineering, accounting, management, geology 394 24%
Office, clerical, administrative or support staff 260 16%Field operations support such as mechanic or equipment maintenance 195 12%
Other 8 0.5%
Total 1,668 100%
Able to generalize
findings to the larger population
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What best describes the activities or services related to your job?
Industry Activity Response PercentProduction and operations, including well maintenance and transportation 663 40.0%
Fracing and well completion services 582 35.0%
Drilling, well site preparations, geophysical services 311 19.0%
Other 244 15.0%
Rail and pipeline operations, gas and oil shipments 164 10.0%Infrastructure construction, such as roads, pipelines, municipal services, rail 148 9.0%
Natural gas processing 83 5.0%
Total (2,195) 100.0%
Able to make comparisons by industry
activity.
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Job Description by Residency
05
101520253035404550
Perc
ent
Job Description
North DakotaElsewhere
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Activities and Service Related to Job Description
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
Development Activities Production Activities
Perc
ent
Activites and Services
North DakotaElsewhere
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Key take away points• Non-residents workers:
• more frequently have job descriptions related to field operations and trucking and transportation
• more frequently have job descriptions related to development activities
• Residents workers• more frequently hold professional, managerial and administrative
support positions (slightly over represented in the sample)• equal percentage of workers have job descriptions related to
development activities as production activities
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Housing
020406080
Ownedhousing Rented
housing Employerprovidedhousing
61.2
29.4
6.3
3.931.3
54.8
Perc
ent
Type of Housing
Type of Housing Used While Working in North Dakota, by Residency
North Dakota
Elsewhere
North Dakota : n=1,158Elsewhere: n=489
Does not sum to 100 percent because ‘other’ not included.
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Type of Housing Provided by Employer, by Residency
0
50
100
Alltemporaryhousing:hotels,crew
camps,RVs
mobile
Apartment,condo or
townhouse
Singlefamily
housing
Jobsite/on-site
housing
Other1
Perc
enta
ge
North Dakota
ElsewhereNorth Dakota: n = 73Elsewhere: n = 267
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0
20
40
60
80
Live alone Live withfamily
member,significant
other,boyfriend or
girlfriend
Co-workers,roommates,
or crewcamps,
dormitories
Other
15.7
71.4
11.21.6
32.5
10.8
50.5
6.1
Perc
ent
Living Arrangements While Working in North Dakota, by Residency
North Dakota
Elsewhere(n = 1,158)
(n = 489)
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Key take away points• Resident workers overwhelming live in single family homes that
they own.
• Residents that live in employer provided housing most frequently live in an apartment.
• Non-resident workers more frequently live in employer provided housing which is most frequently some sort of temporary housing.
• The non-resident workforce predominately lives alone.
• Generally satisfied with the type and condition of housing, but less so with the price (data not shown)
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Non-residents: Would you like to move to North Dakota?
19%81% Yes
No
n= 486
NO
YES
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1.86
1.73
1.86
2.49
1.62
2.03
2.32
2.97
1.91
3.59
1.58
1.64
1.87
1.9
2.02
2.2
2.36
2.57
2.72
3.07
Public schools and essential child care servicessuch as day care are inadequate or unavailable…
North Dakota is not a good place to raise a family.
My employer could transfer me to another location.
The type of housing I want is not available.
Climate is too extreme, too cold.
Lack of social opportunities, no social life
Lack of lifestyle amenities
I don't want to purchase a home because I amafraid the value will drop in the future.
My spouse and family do not want to move awayfrom friends and family.
Housing is too expensive.
Average Score 1
Factors That Influence Respondents That Live Elsewhere Decision to Move to North Dakota
Do NotWant toMove toND
Want toMove toND
1Average score where 1 is no influence, 2 is some influence, 3 is considerable influence, 4 is totally influences.(n = 378)
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Key take away points• Housing cost and price risk were most frequently cited as
a significant influence for those that want to move to North Dakota.
• Housing cost also influences those that that do not want to move to North Dakota, but moving away from friends and family was more frequently cited as the factor that has considerable influence.
• The weather or perceptions that ND lacks good schools, or quality of life amenities are much less of a consideration both groups. This is especially relevant for those that would like to move.
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0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
1 - 5dayson
6 - 10dayson
11-14
dayson
14 -21
dayson
morethan21
days
1 - 5dayson
6 - 10dayson
11-14
dayson
14 -21
dayson
morethan21
days
North Dakota Elsewhere
Number of Days "On" by Residency
(n = 1,132) (n = 466)
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0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
1 - 2daysoff
3 - 5daysoff
6 -10daysoff
11 - 21daysoff
1 - 2daysoff
3 - 5daysoff
6 -10daysoff
11 - 21daysoff
North Dakota Elsewhere
Number of Days "Off" by Residency
(n = 1,107) (n = 466)
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0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
8hours
orless
9 - 10hours
11-12hours
13-16hours
17-24hours
8hours
orless
9 - 10hours 11-12
hours 13-16hours 17-24
hoursNorth Dakota
Elsewhere
26.1%
32.2%
25.8%
12.3%
3.6%7.6%
12.3%
31.7%36.4%
12.1%
Hours and Residency
Hours per Shift, by Residency
(n = 1,090)
(n = 473)
58.3%
19.9%
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Key take away points• Non-resident workers have longer work periods ‘on’ and
‘off’ and work longer shifts than workers that live in North Dakota
• Longer work periods ‘on’ and ‘off’ enable non-resident workers to return home
• That pattern is consistent across all job descriptions (data not shown)
• That pattern is also consistent across industry activities, both development activities and production and operations activities (data not shown)
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0%
10%
20%
30%
40%
50%
60%
Would like to move to ND Do not want to move to ND
Do not live in North Dakota
35.1%
51.8%
31.9%
14.0%13.8% 15.8%12.8% 12.5%
5.3% 4.8%0.0% 1.0%1.1% 0.0%
Job Description of Respondents That Do Not Live in North Dakota and Their Intensions to
Move to North Dakota
field operations trucking, transportationfield operations support professional servicesoffice, clerical infrastructure construction
(n = 392)(n = 94)
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0%
10%
20%
30%
40%
50%
60%
70%
Would like to move toND
Do not want to moveto ND
Respondents that do not live in North Dakota
43.2%
67.6%
37.0%
21.2%19.8%
11.2%
Industry Activity, of Respondent That Do Not Live in North Dakota, by Intentions to Move to North Dakota
Development activitesonly
Production/operationsactivities only
Both development andproduction/operationsactivities
(n = 349)(n = 81)
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0%
10%
20%
30%
40%
50%
60%
Would like to moveto ND
Do not want tomove to ND
Respondent that do not live in NorthDakota
5.3% 3.3%
40.4%
29.1%
43.6%
57.7%
10.6% 9.9%
Type of Housing Respondents That Do Not Live in North Dakota Use While Working in North Dakota and
Intentions to Move to North Dakota
OwnRentEmployer providedOther
(n = 349)(n = 81)
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0%
10%
20%
30%
40%
50%
60%
Want to move to ND Do not want to move to ND
Respondent That Do Not Live in North Dakota
29.3%
57.5%
34.1%
15.5%
24.4%
7.1%
0.0%
7.5%4.9%
7.5%
2.4% 1.8%2.4%0.4%
2.4% 2.7%
Type of Employer Provided Housing, Respondents That Do Not Live in North Dakota and Their Intension
to Move to North Dakota
Crew Camp Apartment RV, Camper, MobilJob site housing Condo, Townhome Hotel
(n = 226)(n = 41)
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Effects of Industry Slowdown—Results Interpreted with Caution
0%10%20%30%40%50%60%70%80%90%
Before 02-01-2015 After 02-01-2015
Respondents That Do Not Want to Live in North Dakota
31.1%
13.2%
68.9%
86.8%
Respondents' Residency and Time Period Questionnaire Was Completed
Respondents That Do Not Live in North Dakota Intentions to Move to North Dakota, by Time Period When
Questionnaire Was Completed
Want to moveto ND
Do not want tomove to ND
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Effects of Industry Slowdown—Results Interpreted with Caution• Small sample size for non-resident workers that want to
move to North Dakota
• Could be other factors that influence decision• Improving economy elsewhere• Personal considerations• No controls for motivations
• Appears that change in intentions coincided with downturn in economic conditions
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Conclusions• There are two distinct workforces present in the oil and
gas industry.• They utilize different types of housing and have different
characteristics.• They have different work patterns, work longer periods on
and off and work longer shifts. Live alone or in camps or with roommates
• The non-resident workforce is more concentrated in development activities than production and operations activities
• A majority of the non-resident workforce has no intentions of moving to ND
• Study struck a cord with respondents…30 pages of ‘other comments’
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We have a much larger workforce
200,000
250,000
300,000
350,000
400,000
450,000
500,000
All EmploymentPrivate and Public Sector
Source: Quarterly Census of Employment and Workforce, 2014
Know these job are not all held by ND residents
Average annual change from 1990-2008 = 4,900 jobsAverage annual change from 2008-2014 = 15,000 jobs
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An example for illustrative purposes.
Hypothetical reduction in workforce
10 % 20 % 30 %Oil & gas workers added since 2008 (2014 QCEW data) 57,890 52,101 46,312 36,470Non-resident workforce x 40% x 40% x 40% x 40%Do not want to move to ND x 80% x 80% x 80% x 80%Potential non-resident workforce present in ND 18,524 16,672 14,819 11,670
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Implications for Workforce Issues• We have two distinct workforces in the oil and gas industry with different
characteristics that demand a different mix of housing and goods and services. Spending patterns will be different.
• Long term presence of a commuting workforce is likely.
• We could see surges of non-resident workers that correlate with development activities due to concentration of non-resident workforce with jobs related to development activities.
• There may be continued demand for some temporary housing.
• May see greater prevalence of apartments compared to historic housing mix.
• Issues that prevent workers from moving to North Dakota can be addressed, such as price and price risk. Weather and inaccurate perceptions not significant considerations.
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What’s next• Findings are being used to update and create a new model to
project employment and population based on various price scenarios.
• Need for further study• Do not have a good understanding of the commuting
workforce.• A substantial portion of the workforce does not live where they
work• Implications of a very different workforce not well understood• Findings will be used as input to other efforts
• Other responses• Employment, housing and population projection scenarios• Other analysis
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Questions? Contact Information:
• Nancy Hodur: [email protected] or 701-231-7357
• Dean Bangsund:[email protected] or 701-231-7471