Discover the future of Canada’s energy sector
Change is coming for Canada’s energy sector. However, is this change for the better? We’ve put together some facts to help those who are currently working in Toronto to better understand what the upcoming year holds, and whether or not it’s possible to prepare for this new outlook.
Originally reported by our sister brand Business Review Canada, those who are currently employed by Canada’s energy sector should start preparing for another year of belt tightening in 2016—companies are forecasting a slower wage growth from reduced 2015 levels.
According to Mercer, energy firms anticipate wage gains of 2.9 per cent next year, which happens to be down from actual wage growth of 3.1 per cent in 2015. Unfortunately, wage gains this year have been down from predictions that were given via surveys conducted in June of last year. Then, wages were expected to grow by 3.7 per cent in 2015.
A principal player from Mercer, Allison Griffiths admitted that she doesn’t remember a time in which energy didn’t have the largest wage gains of any major industry sector in Canada, even in 2015. However, that trend is obviously going to change come 2016; high-tech companies are forecasting wage gains of 3 per cent, which are outstripping the energy industry’s 2.9 per cent wage growth.
In a statement, she said, “Energy is now part of the pack—they’re in the middle there. But it’s not all wage freezes. They’re not having an increase of zero. They are still projecting some growth.
One reason behind this less than desirable news is the fact that the number of oil and gas companies is freezing wages entirely. In fact, 37 per cent of energy firms reported salary freezes for at least some of their workers this past year.
“We’re trying to do more with less,” Griffiths added. “I hear from almost every client that they’re struggling with how to possibly administer a budget that’s growing by 2.2 per cent or even by 3.2 per cent. And it’s not getting any easier this year, unfortunately.”
By comparison, in the private sector, more and more companies have decided to get rid of traditional pensions plans and various other types of expensive benefits. More so, they’ve reduced job security assurances with new work arrangements, which could ultimately alter a worker’s perception of his or her company.
What are your thoughts on the future of Canada’s energy sector? Let us know by sharing your views in the comment’s section below.
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[SOURCE: The Globe and Mail]
Trafigura and Yara International explore clean ammonia usage
Reducing shipping emissions is a vital component of the fight against global climate change, yet Greenhouse Gas emissions from the global maritime sector are increasing - and at odds with the IMO's strategy to cut absolute emissions by at least 50% by 2050.
How more than 70,000 ships can decrease their reliance on carbon-based sources is one of transport's most pressing decarbonisation challenges.
Yara and Trafigura intend to collaborate on initiatives that will establish themselves in the clean ammonia value chain. Under the MoU announced today, Trafigura and Yara intend to work together in the following areas:
- The supply of clean ammonia by Yara to Trafigura Group companies
- Exploration of joint R&D initiatives for clean ammonia application as a marine fuel
- Development of new clean ammonia assets including marine fuel infrastructure and market opportunities
Magnus Krogh Ankarstrand, President of Yara Clean Ammonia, said the agreement is a good example of cross-industry collaboration to develop and promote zero-emission fuel in the form of clean ammonia for the shipping industry. "Building clean ammonia value chains is critical to facilitate the transition to zero emission fuels by enabling the hydrogen economy – not least within trade and distribution where both Yara and Trafigura have leading capabilities. Demand and supply of clean ammonia need to be developed in tandem," he said.
There is a growing consensus that hydrogen-based fuels will ultimately be the shipping fuels of the future, but clear and comprehensive regulation is essential, according to Jose Maria Larocca, Executive Director and Co-Head of Oil Trading for Trafigura.
Ammonia has a number of properties that require "further investigation," according to Wartsila. "It ignites and burns poorly compared to other fuels and is toxic and corrosive, making safe handling and storage important. Burning ammonia could also lead to higher NOx emissions unless controlled either by aftertreatment or by optimising the combustion process," it notes.
Trafigura has co-sponsored the R&D of MAN Energy Solutions’ ammonia-fuelled engine for maritime vessels, has performed in-depth studies of transport fuels with reduced greenhouse gas emissions, and has published a white paper on the need for a global carbon levy for shipping fuels to be introduced by International Maritime Organization.
Oslo-based Yara produces roughly 8.5 million tonnes of ammonia annually and employs a fleet of 11 ammonia carriers, including 5 fully owned ships, and owns 18 marine ammonia terminals with 580 kt of storage capacity – enabling it to produce and deliver ammonia across the globe.
It recently established a new clean ammonia unit to capture growth opportunities in emission-free fuel for shipping and power, carbon-free fertilizer and ammonia for industrial applications.