Oil and gas job growth continues overseas

Wednesday 12 February 2014

Oil and gas workers forming a limited company should probably be prepared to venture overseas at some point, as opportunities continue to abound in foreign markets.

Indeed, legislation going before the Senate this week could see thousands more jobs created in Mississippi if passed, adding further gilding to the US' golden oil and gas industry.

Drafted by chairman of the Senate Energy Committee, Terry Burton, bill 25-68 will give access to carbon dioxide pipelines originally constructed by Denbury On-shore, WDAM reported.

This will help to unlock resources in the state, and increase mineral right royalties. What's more, state tax revenue will rocket by millions of dollars.

Official legal documents revealed Denbury initially used eminent domain to procure property that would be for the benefit of the state, the news provider revealed.

However, now over half of the Co2 from Mississippi is being shipped via a pipeline to Texas, which could be put to use in the state.

Under the new bill, fair access to the Mississippi Co2 lines will be introduced, revitalising oil fields on the region. Proposed changes will also end the misuse of eminent domain and promote fair market prices for mineral right holders, WDAM explained. 

For Mississippi, passing the bill is of great importance for creating jobs, boosting the economy and ensure hundreds of millions more barrels of oil are produced. 

Bruce Monroe, a Mississippi mineral right holder, told the news provider: "This is a very unique state with a very unique resource. It is the only Co2 source east of the Mississippi River. It's one of the largest in the world and even a few years ago 100 per cent was staying in the state, now more than 50 per cent is leaving the state creating jobs and a tax base in other states."

Mississippi isn't the only state likely to see an oil and gas jobs boost either. The American Petroleum Institute (API) has recently predicted that more than 44,000 direct jobs will be created in the Midwest by 2025.

A report revealed that as the industry expands, local workforces are likely to swell. This is thanks in part to the presence of Ohio's Utica Shale play.

Across the US, it is expected over the next 11 years 258,719 direct jobs will be created - 17 per cent of which will be located in the Midwest.

As the oil and gas industry grows, thousands of indirect jobs are also likely to be made.

The API anticipates that an average of $80 billion (£48.7 billion approximately) will be invested per annum in midstream and downstream petroleum infrastructure until 2020.

Southern states will receive the greatest investment, with around $41.5 billion being directed here.

Unsurprising then that Aberdeen and Grampian Chamber of Commerce's (AGCC) 19th Oil and Gas Survey showed half of oil and gas firms in Scotland lost core staff during 2013, with 50 per cent of this down to workers moving overseas.

Robert Collier, chief executive of AGCC, said: "This time, we are reporting our highest ever reported level of companies recruiting in the contracting sector.

"This brings challenges around how vacancies will be filled but we fully expect the sector to meet these challenges and continue to deliver for the north-east, Scottish and UK economies."

By Victoria McDonnell

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