Australian Oil and Gas Projects Overview 2011

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction.

Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years.

In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations.

Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.
• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.
• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes.

Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time

Australian Mining Projects Overview 2011

With 61,500 new operational jobs expected in the mining sector alone by 2015, as well as tens of thousands more in the construction stages (according to estimates released in the National Resources Sector Employment Taskforce report in July 2010), the industry is facing a skills shortage that far exceeds that experienced in the five years preceding 2008.

There are currently 75 advanced projects listed by the Australian Bureau of Agriculture and Resources Economics (ABARE).  Of the 75, 67 are already under construction (with 30 of these still underway in 2011 and 2012) and eight are still to start, but will do so within the next three years.  41 projects are in the energy sector (predominantly coal seam gas/liquefied natural gas), 28 are in mining (predominantly coal and iron ore) and six in mineral processing.

The 286 less advanced projects identified by ABARE cite an operational commencement date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

National Resource Skills Taskforce analysis of 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.
• Employment growth in mining operations is expected to be 4.9 per cent per annum over the next five years, creating around 61,500 new jobs by 2015 due to increased production, driven by demand from Asia.  There will be strong demand for professionals in addition to the skills in point one.
• In addition, further vacancies will occur in mining and gas operations as around 10 per cent of employees leave the sector each year through retirement or transition to other sectors.  Replacement demand in mining operations could be around 16,000 persons per annum, including approximately 3,000 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is nowhere near exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes.

What is interesting to note since our update in 2010, is the number of projects that have not met their original cited construction commencement timeframes.  In some cases, projects have been delayed by 12 to 24 months.  Recently Woodside attracted criticism for the delay on its Pluto Project in the north west of Western Australia, but the number of projects identified as part of our review that have fallen well short of their original specified dates, seem to indicate this is a consistent theme.

Disappointingly, six projects The Resource Channel identified as ‘major’ in our last review are not included in this review simply because of the lack of recent information available to the public and in particular the job market.  If we can level criticism at the industry, it is entirely in this space – how can we lament the looming skills shortage when we make it so difficult of those working in the industry or those looking to enter to source the information they need?

Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time

Gorgon LNG Project - Facts and Figures

GORGON LNG PROJECT

Industry  Oil & Gas (LNG)

Project value  $43 Bn

Project owner  Chevron

Project management  Chevron 47% Exxon Mobil 25% Shell 25% Osaka Gas 1.25% Tokyo Gas 1% Chubu Power Company 0.417%

Construction Period  Final Investment Decision Granted Sept 2009 Expected First Gas 2014

Predicted employment numbers  10,000 Jobs at peak construction

Project Status  Construction Phase Upstream & Down Stream. Ongoing continued work on the construction phase both Upstream & Down Stream to ensure first gas 2014

Project Information

The Gorgon project is Australia's largest single natural gas project. This project plans to develop the Greater Gorgon gas fields, located approximately 130km off North West WA. The Greater Gorgon gas fields contain resources of about 40 trillion cubic feet of gas, Australia's largest known gas resource with an estimated development life of 60 years.

Gorgon will create a vast number of direct and indirect jobs approximately 10,000 throughout Western Australia from Freemantle to Barrow Island. The project has already committed more than $10 billion to Australian industry and is expected to spend a further $20 billion on Australian good and services over the next 4 to 5 years all this helping to boost the local economy.

Gas will be processed at a state of the art onshore facility located on Barrow Island 56km off the north west coast of WA. The gas plant on the island will include 3 LNG Trains capable of producing 15 million tonnes Per annum. A purpose built LNG loading jetty will also be constructed and see approximately three LNG shipments leave the island each week.

The project will also have a domestic gas phase which will produce up to 300 terajoules per day this being a major component of the foundation project. This gas will be transported via a domestic gas pipeline which will run from Barrow Island to a tie in with the Dampier to Bunbury natural gas pipeline.

This project had to go through a rigorous environmental assessment before receiving final development approval, with unique fauna on Barrow Island and nearby coral to be protected under certain provisions.

The joint venture partners on the project will also spend in excess of $2 billion on reducing carbon emissions from the gas operations, which will see carbon dioxide injected into a reservoir 2000 metres below Barrow Island. Supply deals worth billions have already been signed with companies in China, India, Japan and South Korea.

JobContax Jobs on the Gorgon Project

Gorgon Project Senior Civils Project Engineers Jobs

Gorgon Project Site Supervisor Jobs

Gorgon Project Construction Foreman Jobs

Gorgon Project Site Manager Jobs

Gorgon Project Project Engineer Jobs

Gorgon Project Project Engineer Precast Jobs

[googlemaps http://maps.google.ie/maps/ms?msa=0&msid=208422676198052454594.0004ab3dc0f8213f33466&ie=UTF8&ll=-24.926295,122.255859&spn=15.083313,32.319031&t=h&vpsrc=6&output=embed&w=550&h=350]

Gorgon Project Site Safety Advisor Jobs

Browse LNG - Woodside signs land deal for Browse LNG Project

Woodside announced that a Native Title Agreement has been executed to enable the establishment of the Browse LNG Precinct near James Price Point, 60 km north of Broome in Western Australia. The Agreement, between Woodside, the State of Western Australia and the Goolarabooloo Jabirr Jabirr native title claim group, secures the land required for the State Government’s LNG Precinct and provides a significant package of benefits and initiatives for Indigenous people in the Kimberley.

The initiatives in the Agreement are worth in excess of A$1 billion over the life of the precinct and have the potential to enact meaningful and positive change to the economic and social circumstances of Indigenous people in the Kimberley. Woodside’s commitments include the implementation of ongoing education, training and employment initiatives, Indigenous job targets, support for Indigenous businesses, cultural initiatives and payments upon project milestones being met, including a final investment decision.

The Agreement also recognises the importance of the area to the Goolarabooloo Jabirr Jabirr native title claimants and underscores Woodside’s commitment to an environmentally, socially and culturally responsible LNG development. The execution of the Agreement is the culmination of more than two years of negotiations following a Heads of Agreement signed in April 2009 and is a significant milestone for the proposed Browse LNG Precinct.

Woodside acknowledges the commitment of the Goolarabooloo and Jabirr Jabirr people, the Kimberley Land Council, and the Government of Western Australia in securing this agreement. Woodside was appointed as a foundation proponent for the precinct under a Preliminary Development Agreement signed with the State in October 2009. Woodside is the major equity holder in the proposed Browse LNG Development which aims to commercialise the Brecknock, Calliance and Torosa gas and condensate fields in the Browse Basin, 425km off the Kimberley coast. The proposed development includes offshore extraction and production facilities, pipelines to shore, onshore LNG and condensate production facilities, and associated export infrastructure at the Browse LNG Precinct.

Oil & Gas - LNG Projects in Australia

Of the 75 projects listed as advanced by the Australian Bureau of Agriculture and Resources Economics (ABARE), 41 are in the energy sector.  An advanced project is one which has already commenced construction or has been approved to commence construction. Of the 75 projects across the total Australian Resource Sector, 67 are already under construction (with 30 of these still underway this year and in 2012) and eight are still to start, but will do so within the next three years. In addition, there are 286 less advanced projects identified by ABARE which cite an operational date, but not a construction start date – but most are slated to commence production in the period 2012 to 2020.

Together the total number of new jobs anticipated for the combined sectors for the period 2011 to 2015 includes 45,000 in construction, 61,500 in mining operations and 3,200 in oil and gas operations. Currently there are only a few projects underway in states like New South Wales, Northern Territory and South Australia, but this looks to dramatically change going forward.  The locations where some projects are currently drawing labour from – or anticipate drawing labour from – may change once increased opportunities present in home locations for employees and candidates.

The National Resource Skills Taskforce analysis released in 2010 shows: 

• Construction jobs on new projects could peak at 45,000 in 2012 and 2013, with strong jobs growth for technicians and tradespeople, and machinery operators and drivers.


• In LNG operations, pending the number of LNG trains constructed by 2015, employment could increase by around 3,200 (eg if four new trains are sanctioned and operating in Queensland and six in Western Australia).  There will be strong jobs growth for drillers (Queensland only), operators, electrical trades and mechanical technicians.


• Replacement demand in gas operations could be around 2,000 persons per annum, including approximately 500 retirements.

The report cites emerging shortages at present—mainly engineers and other professional staff with more than five years experience.

At the time of release, the report claimed there was a significant number of unemployed tradespeople.  However, the Taskforce expects labour market tightening will result in skills shortages by late 2011 to early 2012, particularly in Western Australia and some regions of Queensland. As a result, the resources sector could be 36,000 tradespeople short by 2015.

Each year, we provide an update on major mining, oil and gas projects which are already under construction, or are considered to have a strong likelihood of being approved.  The list is not exhaustive, but does provide those working in the industry, or considering working in the industry, with an insight into career opportunities - where they are located and timeframes. Unless otherwise stated, all dollar figures in the blogs are in Australian dollars.  All information has been attained and extensively researched from current public sources and is true and correct to our best knowledge at this time.   Projects are listed in alphabetical order by project name within each blog.

 

Problems with working Fly-in, Fly-Out

The number of mine workers on fly-in fly-out (FIFO) work agreements is increasing, but experts warn their sex lives may be doing the opposite. Recent studies show while the money earned is great, the tens of thousands of workers who fly between work and home are facing long term disruption to both the employee and their partner. Managers are now being forced to provide more than high wages and accommodation and also consider the sex lives of workers, to ensure workers are happier in relationships to perform better at work.

A study conducted at Edith Cowan University in Western Australia revealed it can be more difficult for female partners to become pregnant or to have sexual relations if their menstrual cycle did not fit in with the roster. "It's a massive issue," one respondent said. Dating coaches and bloggers have also sprung up throughout the industry, providing advice and counselling for people affected by FIFO. The issue of FIFO work has been a hot topic in recent years, with much talk from both sides of the argument. Some say it is well known FIFO workers are more likely to be depressed, have drug and alcohol issues and suffer relationship breakdowns, while others argue that the work arrangement can provide more flexibility, particularly for families where both families fly into work and fly home for weeks at a time.

Despite the debate surrounding the topic, and the creation of organisations such as Mining Family Matters, which deals with the issues of FIFO and its impacts on workers and families, there have been little study conducted into the long-term effects of the work type. "It isn't an easy existence to be a fly-in, fly-out miner, but nor is it easy to conceive of the opposite which would be building great big mining towns that people are going to stay in forever," Michael Rafferty, a senior research analyst at the University of Sydney told the Herald Sun. "Australia is a very urbanised country and it's quite difficult to attract people permanently to rural and remote areas." The high cost of living in mining towns has only increased the number of workers living outside the area they work in, with the median weekly rent in the Pilbara more that $1500, and new three bedroom apartments leased for about $2000 a week.

A study by the University of Western Sydney’s Workplace Research Centre will examine the effects of FIFO, looking at people still in the industry as well as those no longer employed in the sector. Dr Rafferty, who is leading the research, told the Herald Sun there is already evidence showing the impacts different rosters have on workers. Neville Bruce, from the Centre for Integrated Human Studies at the University of Western Australia, who supervised a study examining the personal issues of FIFO workers said he believes companies are making improvements in how they address the situation. "There will be occasional problems in individual groups, but on the whole (companies have) established a reasonable working relationship for people going into fly-in, fly-out," he said. "If they're in a relationship, they have to make sure that their partners and family are in full agreement and continue to be so."

South Australia is trying to poach WA miners

The South Australian Government has unveiled a new campaign to draw miners to the state, away from Western Australia. The advertising campaign has taken out a full page in a Perth newspaper and will buy billboard space at the city’s airport, the ABC reports. It highlights its "highly competitive, stable mineral royalty regime" as a key point in encouraging exploration in the state.

Western Australia premier Colin Barnett was recently accused by Federal treasurer Wayne Swan of misleading the State over mining royalty rises in its latest budget. The budget included a rise in the rate for iron ore fines from the current 5.6% to 6.5% from July 2012, and then to 7.5% in 2013.
Barnett claimed that he had not increased royalties in the state budget announced last week, but rather removed the concession on iron ore “fines” that have been an issue for decades.

South Australian mineral resources minister Tom Koutsantonis said his state will not take miners for granted.“Mining in Western Australia is beginning to be taken for granted and what I'm saying here is in South Australia we are just prospective, we are where Western Australia was maybe 25, 30 years ago.“We in SA understand the inherent risk mining companies face in the initial stages of exploration which is why we have a concessional royalty rate of two per cent for new mines for the first five years,” Koutsantonis said.“That means that we are nearly five and half-percent cheaper than Western Australian laws and this is for all new mines, whether for copper, gold, uranium or iron ore. If it is less profitable for companies to mine in Western Australia then we will make sure investors and companies know South Australia is an easier, more lucrative option.”

The Olympic Dam mine and OZ Minerals carried out a similar advertising campaign in April to entice miners to move to South Australia.They posted billboards at Western Australian and Queensland airports that service remote mine sites, suggesting they move to Adelaide and work in the State.“As people are travelling through airports in coming weeks, they're going to see adverts for OZ Minerals offering the good lifestyle people can have if they live in Adelaide,” OZ managing director Terry Burgess said. South Australia is developing a new image as one of the nation’s mining areas, with Premier Mike Rann recently tweeting that it is “increasing our awareness as a mining state”.

Queensland: skilled worker shortage

The head of Queensland’s leading industry body says choosy workers are making will make it difficult to fill the skills gaps in the state. In the next year, 30000 workers will be needed in the Bowen Basin, and Queensland Resources Council chief executive said he was shocked to discover 2500 unfilled places exist in the minerals and resources sector alone.
“At the moment the workforce is being very choosy, you really have to move heaven and earth to make it attractive for them because they do have alternatives, particularly the younger generation,” he told The Daily Mercury.
"They are very mobile, they can get on a plane and fly to Mackay or Moranbah or they can maybe stay on the plane an extra couple of hours and fly to Western Australia, and I'm hearing for some of those jobs there is a premium to be paid.”

He said the mining boom will be held back by the skills shortage, despite initiatives to expand the industry.
“The fundamentals are excellent and it has to be good news for Bowen Basin communities and places like Mackay.
"The number one constraint of being able to realise that potential is the skills issue.”
The QRC boss has welcomed the moves by the Gillard Government to find a balance between training locals and allowing skilled migrants into Australia to fill the vacancies.
“We were pleased with the Federal Budget initiatives,” he said.
"A sensible balance between training up the local workforce, accelerating apprenticeships, more money for training and some easing up on facilitation of being able to bring in migrant labour, particularly for those really big projects.
“Hopefully the people of the Mackay region will understand that with projects there is a construction phase with a very high peak workforce and then there are the ongoing jobs.
“My vision is that we make sensible use of, for the short term construction phases, let's use migrant labour sensibly to fill gaps there and let's maximise then the permanent on-going jobs for locals, that is the happy mix and that is what we are aiming for,” Mr Roche said.

In the recent federal budget, treasurer Wayne Swan announced funding to speed up the completing apprenticeships and gaining qualifications. Education Queensland Trade Training Centre project officer Bob Baker told The Mercury offers of big money and ease of entering the resources sectors in other regions were taking young people away from the Bowen Basin and towards south-east and Western Australia.
“At the moment a lot of young people are actually going elsewhere for training as well and then are finding other opportunities in other places.,” he said.
“If they train elsewhere then the transition becomes very easy then for them to move to wherever the biggest money is.
“If we can have the opportunities here for them in Mackay, then they will stay here.
“As a region we are competing with the south-east corner and other major areas of interest like Western Australia, where there is more action, more services, and more resources for families.”
Baker said there needs to be more focus on developing Mackay’s tourism and infrastructure.
http://www.miningaustralia.com.au/news/choosy-workers-damaging-resouce-sector--qrc-boss

QLD and WA collaborate to solve mining skills shortage

As the skills shortage in the resource industry continues to worsen, peak industry groups in Western Australia and Queensland have joined with a national industry skills council to address the issue. The Chamber of Minerals and Energy Western Australia (CME), Queensland Resources Council (QRC) and SkillsDMC have joined forces to create strategies to sources the huge number of workers needed over the next five to 10 years.

In Western Australia alone, 33 000 workers will be needed in the next year, and 30 000 will be required in the next six years at the Bowen Basin.As part of the Memorandum of Understanding (MoU) agreed to by the industry groups, an objective of the three year agreement will be the development of skills initiatives to be implemented.

Projects under the MoU will include:

• Defining and implementing a national skills policy for the mining sector


• Providing timely workforce planning data to support skills advocacy functions with state and federal governments


• Knowledge transfer for local and state operational outcomes


• Brokering funds to support commonly agreed objectives


• Enhanced consultation and consistency on skills-related submissions


• Establishing lead agencies for projects and issues to maximise the strengths and opportunities provided by the MoU partners

QME chief executive Reg Howard-Smith said Queensland and Western Australia are up against very similar problems in their skills shortage.
‘Our ability to source skilled labour will prove vital in the delivery of projects on time and on budget,’ he said.
‘Our ability to source skilled labour will prove vital in the delivery of projects on time and on budget,’ Mr Howard-Smith said.
‘Where there is mutual benefit, this new, non-binding collaboration, allows the partners to work towards securing policy and initiatives that will underpin national prosperity for decades to come.’

QRC chief executive Michael Roche has echoed Howard-Smith’s comments and says the partnership will make it possible to tackle the problems in the mining sectors in both states.
“The MoU comes at a crucial moment in time to work towards ensuring the development and long-term sustainability of the resources sector in Queensland and Australia,” Roche said
“In the wake of a record $31 billion of new investment recently committed in Queensland alone by LNG developers, it is imperative we band together in order to meet the sector’s increasing workforce needs to support this unprecedented growth.

“No single state can resolve the skills issues we face on its own.’
The chief executive of SkillsDMC, Steve McDonald said planning for the future is the key to solving the issues.
“The enterprises with which we work understand the importance of continual upskilling and training and understand the need to plan for the prosperity of the industry, to ensure that even more critical skills gaps are avoided in the future.
“Industry must position itself to minimise the impact of a retiring workforce, and one that is not currently upskilled to levels that are crucial to industry productivity.
“It is the goal of this collaborative partnership to find solutions to these issues.’

Following the announcement of the federal budget by Treasurer Wayne Swan last week, employers in the resource in industry are urging the Federal Government to ignore demands from political groups and unions opposed to increasing the level of skilled migration. The Government’s announcement on Enterprise Migration Agreements (EMA’s) was welcomed by resource industry employer AMMA. The budget will see an increase in workers as it lifts the level of skilled labour imports and gives companies incentives through a $558 million employment fund.

The National Workforce Development Fund, launched today, is designed to create 130,000 new training places over the next four years.A new enterprise migration agreement for large mining projects in return for a financial contribution to train Australians will be implemented, with the aim of allowing 16,000 skilled immigrants to enter the country to work in some key regions where there is a labour shortage.

http://www.miningaustralia.com.au/news/qld-and-wa-collaborate-to-solve-mining-skills-shor

Gorgon Project Jobs

Gorgon investment in Australia is generating more and more jobs and supplier opportunities as local companies get involved with Australia’s single largest ever resource project.

The project is expected to spend about $20 billion on Australian goods and services over the next 4 to 5 years.

And early indications are confirming the independent modeling conducted by ACIL Tasman which showed that Gorgon will spend $33 billion on local goods and services in the first 30 years.

JobContax are currently hiring for a number of construction and engineering positions on the Gorgon Project. For all the latest Gorgon Project Jobs  visit www.jobcontax.com for more details.

John Holland wins Gorgon contract

John Holland has secured a significant contract with Chevron to carry out the design and construction of permanent buildings on the Chevron-operated Gorgon Project, one of the world’s largest natural gas projects and the largest single resource natural gas project ever undertaken in Australia.

With a contract value of over $180 million, John Holland’s Design and Construct package will deliver essential infrastructure in the buildings-operations and administration areas, including the construction of the Gorgon Project’s operations centre and laboratory buildings on Barrow Island.

John Holland Group Managing Director, Glenn Palin, said: “This is a significant project for John Holland, aligned to the long term strategy of our business and our continued expansion into the oil and gas sector. John Holland has a strong commitment to safety, the environment and its people, and I look forward to this being the start of a mutually beneficial partnership.”

General Manager of John Holland’s Western Region, Adam Harry, said: “This is an exciting opportunity for John Holland to be involved in Australia’s largest single resource project. For many of our people this will be a once in a lifetime job and I am confident our expertise and focus on delivering safe and quality works will see the successful delivery of this project.”

Chevron has appointed John Holland for the design and construction of several permanent buildings including:
- Workshop;
- Warehouse;
- Fire Station;
- Dangerous Goods Store;
- Installation of LV Switch Room and transformers;
- Laboratory (construction only);
- Operations Centre Building, containing the Central Control Room and Clinic (construction only);
- Utilities & Services, Civil Works including roads and lay down areas.

Works on the project are due to commence on Barrow Island in late 2011, with completion expected in 2013. The Gorgon Project, which will develop the Greater Gorgon Area gas fields located about 130 kilometres off the north-west coast of Western Australia, includes the construction of a Liquefied Natural Gas plant on Barrow Island and a domestic gas plant to supply gas to Western Australia. Barrow Island is located 56 kilometres off the north-west coast of Western Australia. The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian subsidiaries of Chevron (approximately 47 percent), ExxonMobil (25 percent) and Shell (25 percent), Osaka Gas (1.25 percent), Tokyo Gas (one percent) and Chubu Electric Power (0.417 percent).

40,000 workers needed in WA over the next two years

Western Australia will need 40,000 more workers over the next two years to cope with demand from major resource industry projects, including the Gorgon,Browse and Wheatstone Projects.

With mega operations such as Chevron's $43 billion dollar Gorgon LNG project and Woodside's Pluto in the pipeline - the demand for workers on the ground has never been so strong. But demand in the boardroom is rising just as fast. In recent years, mining giants Fortescue, Rio Tinto, BHP and Chevron have all expanded their offices in Perth substantially and companies in other industries are travelling to where the money is.

Consulting firms such as Bane and McKinsey have also opened up shop out West, as well as several global law firms who are establishing teams to cope with demand from major clients. Alastair Haldane from recruitment services firm Interpeople says the available pool of talent is quickly drying up. 'The war for talented, white collar professionals is out there on the streets. We see it every day'. Mr. Haldane says while many workers would put a better salary at the top of their list of reasons for changing companies, businesses make the mistake of assuming a high wage is all they need to offer to retain staff. According to Interpeople, workers are more likely to blame poor management or culture for their decision to leave a job, than low wages.

Meantime, The 2011 March quarter Clarius Skills Index, yesterday, rose to 100.3 index points, just above the 100 mark that indicate a balanced labour market.

The index was 99.9 in the December quarter, showing a marginal oversupply. The index showed demand for skilled labour rose by 64,000 in the March quarter, while supply increased by 51,400. The report said skills shortages were most noticeable in the construction, building and engineering categories. Clarius chief operating officer Kym Quick said post-disaster reconstruction, combined with the resources boom and major information technology (IT) projects were putting a strain on the availability of skills. 'This is shaping as a major national issue,' Ms Quick said in a statement.

'Western Australia's boom economy continues draw a range of skills. The impact of the floods, and cyclone in Queensland, has not fully translated into major shifts in labour demand or supply but they are now starting to emerge.

http://www.skynews.com.au/businessnews/article.aspx?id=603094&vId=2341226&cId=Business