Labor Shortage in the Booming Oil Sands

| Tuesday, 23 November 2010
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An economic boom is occurring in Alberta, Canada in the oil sands region. It’s now economically viable to extract oil from the oil sands. The oil sands hold the second largest oil reserves in the world, behind only Saudi Arabia. The oil sands region is attracting some of the largest construction projects in the world. There is a shortage of the skilled labor required to build these projects and to field experienced drill crews.

There are needs in all stages of oil production: exploration, mining and processing. The demand for skilled workers is so high that some companies are importing them away from South Africa. It is estimated that another 100,000 people are needed in the Fort McMurray area of Alberta.

The oil sands area is in a very remote cold, part of Alberta and companies are paying a premium to attract people. The oil companies pay some of the highest salaries in North America.


Oil sands development has already created over 33,000 jobs. It is predicted that the oil sands will create a total of 102,000 new jobs across Canada by 2012. Approximately 40% of these jobs will be in Alberta. The 60% of jobs outside Alberta will be mainly in the manufacturing sector. The position with the highest prediction of new jobs ( jobs employment )in the oil sands is heavy equipment operator. Other workers in demand are likely to be process operators, heavy duty mechanics and power engineers.

Heavy equipment is used extensively in the oil sands. Consequently, heavy equipment operators are in demand for: mining extraction for mining operations, in-situ extraction, co-generation, processing, transportation and storage for in-situ operations.
Heavy equipment operators use a variety of machines, including bulldozers, back-hoes, front-end loaders, graders, pavers, power shovels, scrapers and specialized surface-mining equipment. These machines are used to excavate, grade and landscape earth or move materials and equipment. The main mining method is by truck and shovel.

First the overburden (top soil, muskeg, waste rock) is cleared off by machines to access the oil sand. Shovels then dig up the oil sand and place it into heavy hauler trucks. The oil sand is then dumped into sizers or crushers to be broken up into smaller pieces.

It is estimated that the oil sands will also need to almost double its current number of engineering positions over the next five years. Geologists and geophysicists will also be in high demand.


The oil sands region is attracting some of the largest construction projects in the world. There is a shortage of the skilled labor required to build these projects and to field experienced drill crews.

Bob Jent is the CEO of Western Pipeline Corporation. Western Pipeline Corp specializes in identifying, acquiring and developing existing, producing reserves on behalf of its individual clients.
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