Employment boost due to exploration not a certainty
A resumption of oil and gas exploration during the next 12 months would not necessarily lead to more jobs in Taranaki, an industry insider says.
Up to 20 offshore wells are planned during the next 12 to 18 months, dependent on marine consent approval, as exploration companies work through existing permits.
The developments are estimated to add $210 million to the Taranaki regional GDP during the next five to seven years.
But New Plymouth businessman Brian Crockett said any benefits of the initial exploratory work programme would be confined to companies directly involved.
Crockett, the manager of MRC Global New Plymouth, said there would not be a big upsurge in labour demand until the wells were successful in finding oil or gas.
MRC Global supplied the oil industry with piping, instrumentation fittings, and valves. ‘‘I don’t think next year will be any busier than this year,’’ he said. ‘‘It will be steady rather than busy. It’s a $64,000 question if we will be hiring more staff at this stage. ‘
‘‘Our company wouldn’t expect to be involved until the latter stages of exploration if the wells are successful.’’
With new legislation passed to stop offshore exploration, long term employment prospects in the industry were weak, Crockett said.
‘‘In the short term there won’t be a drastic fall off of contracting,’’ he said ‘‘Investment will eventually fall off so long term the exploration ban will affect us a lot.’’
Crockett said the company was tendering for contracts outside the oil industry where similar skills could be transferred.
Fitzroy Engineering managing director Richard Ellis also said opportunities for the company would only be apparent if any exploration programme was successful. Oil industry services companies will be involved from the start of the exploration programmes, he said.
Fitzroy and MRC Global are fully involved in a variety of maintenance shutdowns on industrial sites in the region during the next 12 months. Ellis said work was expected to pick up in late 2019.
Offshore marine logistics employer ETL Group managing director Deepak Ahluwalia said there would be work for companies servicing the oil industry.
‘‘But my thoughts are there won’t be a lot of companies reopening offices because of the new exploration programmes,’’ he said.
He could not foresee a return to the exploration boom period of seven to eight years ago.
‘‘It will depend on oil prices and availability of skilled staff,’’ he said.
ETL Group may double staff if conditions are favourable, he said.‘‘I’m optimistic for 2019, the work is trickling in and we are starting to see bits and pieces of opportunities.
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