Mining and Oil and Gas Extraction Industry

October 2010

· The industry employed about 145,500 people in 2008

· Average annual employment growth rate in the industry between 2009 and 2013 is expected to be 0.4%

Profile

The industry includes companies that explore for and produce crude petroleum and natural gas, drill and equip wells, mine for coal or metal ore and perform other preparation activities associated with mining operations.

Occupations include mining engineers, blasters, drilling and service rig managers, petroleum engineers and drilling floorhands.

Performance and outlook

The industry’s share of economic activity in Alberta in 1999 was about 26 per cent. By 2008 that share had dropped to less than 19 per cent, but the industry’s share of employment rose by more than half.

This industry has been the most directly and severely affected by the collapse of world oil prices from their peak in the summer of 2008. Many oilsands and associated industry construction projects valued in the billions of dollars were delayed or cancelled as a result. Risks to growth, even beyond the industry’s continued susceptibility to price shocks, still lie head. The most significant risk relates to the environment. Oilsands developers will need to continue to develop solutions that lessen the effects of their operations on the land, water and air.

Still, the industry’s future is a promising one: the oilsands are one of the largest known petroleum reserves on earth, and oil is expected to be a key energy source for years to come.

Alberta’s crude oil production is expected to increase by about a third by 2013, with all of the gain coming from the oilsands. In the short term, relatively low natural gas prices are expected to continue as new supply sources are developed and inventories in the United States build up while demand remains sluggish.

Through 2013, lower than average demand can be expected for supervisors, underground miners, oil and gas drillers, mine service workers and operators in oil and gas drilling.

About 3,000 jobs will be created in the industry by 2013.

For more information see Alberta Career and Industry Outlook or Alberta Industry Profiles.

Occupations in the industry

For a list of occupations and related occupations in this industry, see OCCinfo Search by Industry: Mining and Oil and Gas Extraction page.