• 2 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 5 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 7 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 8 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
Can India Overtake China In The EV Revolution?

Can India Overtake China In The EV Revolution?

India wants to drastically increase…

Did These Mining Giants Just Confirm The Next Gold Frontier?

Did These Mining Giants Just Confirm The Next Gold Frontier?

After Ecuador’s President removed a…

TransCanada Blames Low Energy Prices For Latest Job Cuts

TransCanada Blames Low Energy Prices For Latest Job Cuts

Oil prices may have been leveling off recently, but don’t tell that to TransCanada Corp, a pipeline company which this week laid off 185 people from its Major Projects department.

In an e-mail on June 23, TransCanada spokesman Mark Cooper said, “This morning 185 workers within the major projects department were advised that their positions have been eliminated. This includes approximately 100 full-time employees who have been advised that their positions have been eliminated.” The rest, he said, were contractors with the pipeline company.

Cooper said they layoffs were “designed to ensure we move forward with our $46 billion [US$37 billion] capital growth plan in a way that meets the needs of our customers, while allowing TransCanada to remain competitive and deliver incremental value for our shareholders” – in other words, to save money because of the deep decline in the price of oil for the past year.

Related: Midweek Sector Update: Oil Markets May Not Need To Worry About Greece

The spokesman said TransCanada, the second-largest Canadian energy pipeline company, has more than 6,000 full-time staff working around North America, but couldn’t say how many of them were working in the Calgary offices of the Major Projects department. Some of the dismissals affected department employees outside the city.

The Major Projects department is in charge of developing TransCanada’s largest ventures, including the proposed Keystone XL pipeline, which would move Canadian oil sands to the U.S. coast along the Gulf of Mexico, and the C$12 billion Energy East Line, to move crude from Alberta to refineries in eastern Canada and an export facility on the country’s Atlantic coast.

But Cooper's e-mail stressed that the layoffs weren’t related to any specific project.
“We need to provide the lowest cost services to our customers, many of whom have been deeply affected by the current environment, and we are taking a thoughtful and deliberate approach to determining how we can make our company even stronger and ensure we are positioned for success as we move forward,” Cooper wrote.

Related: Could $12 Trillion Trigger A Renewables Revolution?

Because of the drop in energy prices, the Canadian Association of Petroleum Producers says it expects industry spending to decline by more than US$20 billion this year.

As a result, more than 20,000 people have been laid off. And the Canadian Association of Oilwell Drilling Contractors says it lowered its forecast for drilling production in Alberta, indicating that even more dismissals are in store.

Canada’s oil industry has been hurt further because its status as the leading exporter of oil to the United States is being eroded by the shale boom south of the border, which is reducing U.S. reliance on Canadian oil.

Related: Growing India Becomes Major LNG Player

TransCanada wasn’t the only Canadian energy company to announce layoffs this week. The oil and gas producer Encana Corp. of Calgary said June 23 that it anticipated some reductions in its workforce, but it said the layoffs would not be the result of lower energy prices but to conform with the company’s restructuring.

Jay Averill, a spokesman for Encana, said he couldn’t put a specific number on the impending layoffs, but said it would be “nothing near” the scope of dismissals required by a previous restructuring in late 2013, when the company shifted its focus from gas to oil and reduced staff by about one-quarter. He said the company was making the current changes “regardless of the commodity price.”

By Andy Tully Of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News