ConocoPhillips is set to announce job cuts in Canada’s oil patch on Tuesday, the company said in an email, the second year in a row it is laying off employees.
The U.S. oil firm has informed staff of the planned reduction to its Canadian workforce, spokesman Dennis Nuss said. The cuts will affect employees and contractors. ConocoPhillips laid off workers late last year in Canada after announcing it would reduce its roughly 13,000-strong global workforce by 20 per cent to 25 per cent.
“We routinely review our organization to align with our long-term strategy, operate safely and efficiently, and remain well-positioned for future opportunities,” Nuss said.
The Canadian oil industry is preparing for an expected growth period that may rival the production expansions of the decade between 2005-2015, when oil was also trading above $100 a barrel. The current growth is expected to be driven by multiple planned export pipeline expansions, including a new million-barrel-a-day conduit running from Alberta to the B.C. coast.
ConocoPhillips operates the Surmont oil sands site, which produced about 157,000 barrels a day last month, the fourth-largest in-situ oil sands well site, according to Alberta Energy Regulator data. The company is also an active driller in the Montney tight oil and gas formation in western Canada and eastern British Columbia.