ConocoPhillips to Announce Job Cuts in Canada for Second Consecutive Year
U.S. oil firm ConocoPhillips plans to announce layoffs affecting employees and contractors in Canada on Tuesday, as part of a global strategy to reduce its 13,000-strong workforce by 20% to 25%. The cuts come despite expectations of significant growth in the Canadian oil industry driven by new export pipeline expansions.
ConocoPhillips is set to announce job cuts in Canada's oil patch on Tuesday, marking the second straight year the U.S. oil firm has laid off workers in the country. The planned reductions will affect both employees and contractors.
The move follows an announcement late last year that ConocoPhillips would reduce its 13,000-strong global workforce by 20 per cent to 25 per cent. Spokesman Dennis Nuss stated the cuts are part of routine reviews to align with long-term strategy and ensure safe, efficient operations.
In Canada, ConocoPhillips operates the Surmont oil sands site, which produced about 157,000 barrels a day last month. According to Alberta Energy Regulator data, the Surmont site is the fourth-largest in-situ oil sands well site. The company is also an active driller in the Montney tight oil and gas formation in western Canada and eastern British Columbia.
The workforce reductions occur as the broader Canadian oil industry prepares for expected growth potentially rivaling the 2005-2015 expansion period. Current expected growth is driven by multiple planned export pipeline expansions, including a new million-barrel-a-day conduit from Alberta to the B.C. coast.