It forecasts a 57% increase in oil and gas operational jobs in Australia during the next five years as major projects enter production.

The Resources sector skills needs 2013 report found the strongest jobs growth across the resource sector was projected in oil and gas operations, with the subsector likely to experience an acute undersupply of appropriately skilled workers.

This skills shortage is across all occupational groups, with professionals and technical and trades worst affected.

This skills undersupply comes at a time when Australia is embarking on major LNG and CSG projects.

It also comes at a time when the mining sector is moving from a construction phase to an operations phase. Surely this should free up some workers to meet the needs of the oil and gas sector?

Not so, says the report. It finds there is competition from other industries and overseas, which will limit the sector's ability to source appropriately skilled workers.

The report also finds the number of students graduating from resource sector-related courses will not be enough to alleviate the shortfall.

While the report finds some companies are already playing an active role in skills development - it points to Chevron as an example - a new approach is needed to ensure appropriately skilled workers are available.

It recommends:

• Resource companies and peak organisations engage with the proposed industry working groups for schools-industry, science, engineering and mathematics skills initiatives and contribute to the development of a national plan for these initiatives
• Industry works with tertiary education providers to fund, develop and implement a strategy to deliver training and support to career development practitioners
• The Minerals Tertiary Education Council member universities and specialist oil and gas university faculties work with industry to scope the development of a postgraduate qualification in automation for mechanical, electrical, mining and oil and gas engineering graduates
• The Australian government, industry and the tertiary education sector pilot a program based on the UK's Transition Training Program with the aim to improve the supply of long-term technical operational skills to the oil and gas sector
• The Australian government, in collaboration with industry stakeholders, develop and pilot a national program for apprentices and trainees modelled on the UK Oil and Gas Upstream Technician Training Scheme and the Western Australian Energy Apprenticeship Group joint venture to provide clear pathways to the LNG sector and ensure supply of long-term technical skills
• Industry stakeholders and the tertiary education sector collaborate to develop an industry-driven workforce development strategy to support the development of a domestic workforce to meet future demand for long-running oil and gas operations occupations.

APPEA chief executive David Byers said there was already a high level of investment in training and skills development, but the report showed a greater effort was needed.

"The report predicts more than 22,000 new jobs will be created in the industry by 2018 when most of the $200 billion worth of projects under construction move into production," he said.

"Ensuring we train enough Australians to fill these permanent, well-paid roles will be a challenge requiring a strong collaborative effort by industry, government and the education and training sectors.

"But Australia must aim higher. There is the potential for another $180 billion in investment in the oil and gas industry over the next two decades, which could create 150,000 jobs across the Australian economy.

"If Australia is serious about capturing this next wave of natural gas projects, we need to get serious about enhancing our international competitiveness in the face of growing global competition."