Petroleum Projects Updates

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Newfoundland and Labrador Department of Natural
Resources
Oil and Gas Industry Career Opportunities October
18, 2007
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Oil and Gas Sector

• Very important sector
• Employment 4,000
• 15 of GDP
• 2 of total provincial employment
• Significant contributor to Provincial Revenue
• But not a new industry
• Hibernia discovered in 1979
• First well drilled in 1966

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Current Development Projects
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Hibernia Project

• Gravity Base Structure (GBS).
• GBS built entirely at Bull Arm site.
• 550,000 tonne concrete base.
• 37,000 tonne topsides.
• 1.3 million bbls of internal oil storage.
• First oil November 1997.
• Cumulative production to June 2007 545 million
  barrels.
• Reserves
• Oil 1.244 Billion bbls.
• Gas 1.8 Tcf.
• NGLs 202 Million bbls.

In June 2006, the C-NLOPB announced an
increase in recoverable reserves of 379 million
barrels.
UPSIDE POTENTIAL 1.9 Billion Barrels
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Terra Nova Project

• First Floating Production Storage and Offloading
  vessel (FPSO) in North America.
• 292.2 m long and 45.5 m wide.
• Storage capacity 960,000 bbls.
• First oil January 2002.
• Cumulative production to June 2007 199 million
  barrels.
• Reserves
• Oil 360 million bbls.

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White Rose Project

• Floating Production Storage and Offloading vessel
  FPSO.
• 300m in length, and 45m in width.
• Storage Capacity 940,000 bbls.
• First Oil in November 2005.
• Cumulative production to June 2007 54 million
  barrels.
• Reserves
• Oil 283 Million barrels.
• Gas 2.7 Tcf.
• NGLs 96 Million bbls.

Huskys 2006 Jeanne DArc drilling program
resulted in an announcement of an increase in
recoverable resources of 190 million barrels.
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An Emerging Energy Warehouse

• Energy Plan - Vision
• To ensure our energy resources contribute to a
  vibrant and sustainable Newfoundland and Labrador
  where people are proud to live and work, the
  standard of living is high, and the environment
  is protected now and into the future and to
  ensure that the people of Newfoundland and
  Labrador take pride and ownership in our energy
  resources and strategically develop them in such
  a way that returns maximum benefits to the
  province for generations to come.

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Labour Market Development Study

• Petroleum Industry Human Resources Committee
• Over 340 Occupations in the Oil and Gas Industry
• Study lists over 80 difficult to recruit
  occupations
• Go to www.oilandgascareerinfo.ca for detailed
  info.

Hitching a ride to work
Drilling
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The jobs are here
Contractors
Sub-Contractors
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Jobs Exist in All Areas

• Play Video

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Why Jobs Exist
Aging Workforce

• relatively few oil and gas extraction workers
  are in their teens or early 20s. Over 65 of the
  workers in this industry are between 35 to 54
  years of age. On average 40 of the industrys
  workforce is expected to reach retirement during
  this decade.

Human Resources The Missing Piece of the Energy
Puzzle Dr. William L. Fisher and Sarah J. Seals
Interstate Oil and Gas Compact Commission p. 5
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As well as new opportunities with existing
developments.
Hibernia
Terra Nova
White Rose
Ben Nevis/Avalon (Oil) Catalina Reservoir
(Oil/Gas) Hibernia Reservoir A Pool
(Oil/Gas) Jeanne dArc Reservoir (Oil) Cape
Island (Oil)
Far East Extension (Oil) North Graben (Oil)
West White Rose (Oil) North White Rose
(Oil) Hibernia Reservoir (Oil) Eastern Shoals
(Oil) Gas development
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Next Development Hebron Project

• Discovered in 1981.
• Operator Chevron Canada Limited.
• GBS Structure to be used.
• Construction could start as early as 2010.
• Water depth of 92 m.
• Production life of 20-25 years.
• Reserves
• Oil 730 million bbls.

GBS Proposed System
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Potential - Natural Gas Development
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New Opportunities New Projects

• Delineation drilling on existing fields in Jeanne
  dArc Basin.
• New potential on outlying areas of the basin.
• New drilling in under explored basins including
  Laurentian, Orphan, Labrador, and Anticosti.

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Lets Not Forget - Onshore Potential
Main Brook
Port Au Choix
Parsons Pond
York Harbour
Deer Lake
Port Au Port
Flat Bay
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So why is it hard to find a job?

• Small Industry
• Currently only 3 projects Hibernia, Terra Nova
  White Rose
• Other Jurisdictions
• 140 projects in the North Sea
• 340 projects in the Gulf of Mexico

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Message - Local Opportunities Do Exist

• Opportunities do exist for youth interested in
  pursuing specific and challenging careers
• To increase your opportunities to work in
  Newfoundland and Labrador you need to
• Obtain post-secondary training/education
• Employers prefer technical degree/diploma
  programs
• Engineering, Science, Marine, Technician and
  Technology programs
• May have to get experience elsewhere
• Return home to work

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How companies recruit people

• 1st - Recruit at the entry level
• 2nd - Train internally develop skills required
  to move through a career path
• 3rd - Promote through internal Career
  Progression programs

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Career Progression Directional Driller
Directional Driller
An example of a Career Path
Driller
LWD Specialist
MWD Specialist
Assistant Driller
Mud Logging
Derrickman
Data Technician
Asst.Derrickman
Mud Logger
Sample Catcher
Roughneck
Roughneck
Sample Catcher Entry Level
Roughneck Entry Level
Geology Undergraduate
Post Secondary courses
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Remember 340 Occupations
Contractors
Sub-Contractors
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Summary

• Great jobs exist in many categories
• Learn more about the jobs available in the
  industry
• Visit the Virtual Career Fair at
• www.careersinoilandgas.com
• Complete post-secondary training or education
  required for entry level jobs