News Releases for July 2007
July 02, 2007
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Hoeven: Oil And Gas Industry Projects Employment Growth
BISMARCK, N.D. – Gov. John Hoeven today was joined by industry leaders and employees to announce the results of a recent study showing that North Dakota’s oil and gas sector will need 1,700 to 1,800 new employees by 2010. The workforce expansion is necessary to keep pace with the industry’s growth in the state and to replace workers scheduled to retire over the next few years.
The study was conducted and supported by the North Dakota Petroleum Council, the North Dakota Workforce Development Council, the North Dakota Department of Commerce, Job Service ND, Career and Technical Education and Williston State College. The focus was to identify specific industry workforce challenges, including current and projected occupational demands and skill requirements.
Industry leaders say this is good news for people looking for a job or a higher paying job in North Dakota. According to Job Service, the average yearly wage in the oil and gas industry in 2005 was $60,330. Jobs in demand include everything from equipment operators and truck drivers, to engineers and geologists.
“Good paying jobs in North Dakota’s oil and gas industry are available,” Hoeven said. “The study confirms what we’ve known on a practical level for some time – we’re creating more career opportunities in North Dakota’s energy sector, and we’re working to get people to fill those positions.”
The study found that the industry’s employment in North Dakota is expected to increase 13 percent in 2007, 3 percent in 2008, 7 percent in 2009 and 3 percent in 2010. This growth is in addition to a 40 percent annual replacement need owing to retirements and job mobility within the field necessary to sustain employment levels.
The industry’s top needs are for drilling rig hands, truck drivers, work-over rig crews, production hands, directional driller/fluids/fishing professionals, stimulation/cementing, supervisors and roustabouts. Professionals such as engineers and landmen are also in high demand. Most entry-level positions require a valid driver’s license and a clean driving record; some require a commercial driver’s license. Age restrictions may also apply; most companies require a minimum age of 18 or 21. Drug testing is required in the hiring process and randomly in a work situation.
Employment offers posted by companies for these positions ranged from $15 to $26 an hour for laborers and roughnecks, $16 to $22 an hour for truck drivers, and more than $31 an hour for equipment operators. A listing of available jobs and information about the application process is available at www.jobsnd.com.
There are currently 41 rigs drilling new oil wells in the state. This compares to 16 rigs drilling new wells in 2005. Ron Ness of the North Dakota Petroleum Council said the industry’s barometer for growth is rigs drilling new wells because new rigs require a big investment and generate the largest number of jobs. The drilling of a new well provides about 120 direct and secondary jobs, which are primarily provided by 75 service-related contractors. North Dakota currently has a total of 4,163 wells capable of producing oil and gas. In 2006, the state produced 40 million barrels of oil compared to 35 million in 2005.
“That’s a significant increase in one year,” Al Anderson, chair of the North Dakota Petroleum Council, said. “North Dakota is contributing significantly to domestic oil production nationally and the potential of the Bakken formation is driving more interest.”
Hoeven was joined at the news conference by several new employees to the oil and gas industry. Tressy Heinle was formerly employed as an Economic Development Director in Tioga, and is now working as a landman in Minot. Jeff Iverson received his certificate in power/process plant technology from Bismarck State College. He moved back to North Dakota from Minnesota to work at the Tesoro's Mandan Refinery as a process operator. Twenty-one-year-old Devon Harrison just finished the 16-hour, new-hire training program at Williston State College. He is working for Nabors Well Service in Williston.
“These are just a few examples of the opportunities for people being created by our good business climate,” Hoeven said. “Economic growth in the oil and gas industry is having a positive impact on people’s lives by providing high-paying jobs that are attracting new people to our state and retaining others who already live here.”
In an effort to address the workforce needs, Williston State College has developed the Petroleum Safety and Technology Center under the Governor’s Centers of Excellence program. The Center is co-developing and applying new oilfield technologies to meet the critical workforce and technological needs of the oil and gas industry. The Center’s new training site is offering hands-on experience with an actual rig to advance production methods and educate individuals on the latest technology needed in the oilfield industry. One of the center’s hallmark offerings, a Service Rig Training Program, will provide two-week intensive training for oilfield employees. It is scheduled to begin Aug. 13.
In 2004, as chairman of the Interstate Oil and Gas Compact Commission, Hoeven spearheaded an effort to address workforce needs in the nation’s oil and gas industry. That work grew out of a collaborative state effort by Job Service North Dakota and the North Dakota Petroleum Council to recruit workers for North Dakota’s oil industry, which resulted in a job placement rate of 89 percent.
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