• 1 min Conflicting News Spurs Doubt On Aramco IPO
  • 1 hour Exxon Starts Production At New Refinery In Texas
  • 3 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 20 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 21 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 22 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 22 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 23 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 24 hours VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
Kobe Steel Scandal Could Rattle Nuclear Industry

Kobe Steel Scandal Could Rattle Nuclear Industry

The scandal at Japan’s Kobe…

Is OPEC Considering Deeper Output Cuts?

Is OPEC Considering Deeper Output Cuts?

You could argue OPEC and…

Oil and Gas Projects Face Labor Shortage

The surge in oil and gas production in recent years is fueling a revival of U.S. manufacturing. But, according to Ryan Holeywell over at Fuel Fix, the big industrial projects on the planning board for the Gulf Coast are suffering from a shortage of skilled labor.

With so many projects set to break ground in the near future – liquefied natural gas terminals, processing plants, and various petrochemical facilities – many companies are competing for workers. The competition may drive up wages and increase the cost of doing business, undermining the profitability of some facilities.

Chevron Phillips Chemical Company is planning $5 billion in upgrades at the Cedar Bayou plant in Baytown, TX; ExxonMobil is also planning multi-billion dollar upgrades at its ethane cracker in Baytown; and Dow Chemical is putting $4 billion at its Freeport plant. Also, the Department of Energy has approved six permits to allow the export of LNG to non-free trade countries, which will mean a flurry of construction on the Gulf Coast. Sempra Energy, Cheniere Energy, and Freeport LNG are all hoping to attract workers for their multi-billion dollar LNG terminals.

Related Article: Iran Takes on the US: Is this Provocation, Defiance or Tomfoolery?

The shortage of workers has everyone playing catchup.  Unions have developed apprenticeship programs to train workers. Oil and gas companies have donated money to community colleges to develop training programs as well. For example, Chevron Phillips Chemical donated $75,000 to Baytown-based Lee College in 2012 for equipment and scholarships for students. And ExxonMobil announced in 2013 it would spend $500,000 to coordinate training programs at nine community colleges in and around Baytown.

But that may not be enough, and the competition for labor means that oil and gas companies have to raise wages, offer signing bonuses, or other inducements to poach workers. Higher wages mean higher costs, and if costs rise too much, some big projects could be delayed or cancelled all together.

By Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News