Alaska will soon be 44,000 workers short

Amy Spittler

Petroleum News

Bill Popp says Alaskans who worry “out-of-state people are gonna take all our jobs” must shift their focus to the real threat — the shortage of trained workers among Alaska citizens.

The oil, gas and mining liaison for the Kenai Peninsula Borough recently told members of the Kenai chapter of the Alliance that Alaskans “should be more concerned about whether or not we are going to be able to find enough workers to make future energy projects a reality.”

Popp was referring to proposed oil and mining developments and a natural gas pipeline from the North Slope.

To bring projects to fruition Alaska needs a dramatic increase in trained, competent and available job applicants.

Popp said a number of factors have contributed to what is considered a continent-wide shortage of trained workers, including the fact that hydrocarbon industry workers are nearing retirement age and qualified replacements are few and far between.

Another factor is a poor image of the oil and gas industry among young workers; and a poor image in terms of job security.

Canada is already in the midst of this problem in the Alberta oil sands. With projects planned that exceed $75 billion, companies are trying to cope with a shortage of more than 100,000 workers over the next decade.

This graph is one Popp has used in multiple venues in recent months, with changes made to reflect current developments. The timelines represent what he refers to as a “simplistic look forward into the next decade for workforce needs.” The graph aligns project timelines and labor requirements to quantify visually what Alaska is facing.

If the projects Popp has listed were to go ahead, 44,000 full-time positions would need to be filled in the coming decade.

“It can be assumed that for many reasons some of these projects will never be sanctioned, or will be delayed, but even if 25 percent go forward as planned, Alaska faces a serious challenge in finding enough workers to keep these projects on time and within budget,” Popp said.

With so much on the horizon, he said workforce development will likely remain a “hot topic” on the borough’s Web site and around the state until solutions are found and significant progress has been made.

More information on Southcentral Alaska’s energy issues can be found on the borough’s oil and gas Web site at www.cookinletoilandgas.org.