En Español



Very usefull links



PW
Bookstore





News links

AP

AFP

Aljazeera

Dow Jones

Oil price

Reuters

Bloomberg

Views and News
from
Norway

 

 

 

 

Canada's Alberta oil firms to further cut costs -survey

 

 

CALGARY, Alberta
Petroleumworld.com 02 27 2017

Most oil and gas firms in Canada's oil-rich Alberta, which cut costs following the crude crash in 2014, are looking to run even leaner, according to the author of a report from professional services firm EY released on Thursday.

The report was based on a survey of a representative sample of 72 oil and gas companies, which found that 70 percent of respondents intend to make changes to be more efficient, measures which may include reorganization or cutting staff, said its author Lance Mortlock.

"I think every organization in this sector in Canada is thinking, 'How do we run leaner?'" he said in an interview.

The western province of Alberta is home to Canada's vast oil sands deposits and is the top exporter of crude to the United States. It was hard hit by the collapse in global crude prices since mid-2014, as producers laid off tens of thousands of oil and gas workers and cut billions in capital spending.

Mortlock, EY's Canadian strategy services leader for oil and gas, declined to name the companies surveyed, but said they come from all areas of the industry and most are publicly listed.

The report, compiled in partnership with the Alberta's University of Calgary, found that 80 percent of companies surveyed have reduced their staff over the last two years.

"We're seeing, in the case of oilfield service companies, sometimes more than a 50 percent reduction in headcount," Mortlock said.

Many respondents that cut staff reacted to low commodity prices with a focus on short-term survival, which is not surprising given the intense pressures to manage costs, the report said.

But a majority of those surveyed reported "high levels of success" with their "reorganizations," according to the report.

Mortlock said high-performing companies are ones that also have a long-term strategy for remaining viable, rather than just cutting staff as a short-term tactic.



Reporting by Ethan Lou, editing by G Crosse from Reuters.

We invite all our readers to share with us
their views and comments about this article
.


Write to editor@petroleumworld.com


By using this link, you agree to allow PW
to publish your comments on our letters page.

Any question or suggestions,
please write to: editor@petroleumworld.com

Best Viewed with IE 5.01+ Windows NT 4.0, '95,
'98,ME,XP, Vista, Windows 7,8,10 +/ 800x600 pixels

 

 

 

 

 

 

 

TOP

Contact: editor@petroleumworld.com,

Editor & Publisher:P.Ohep F. /Producer - Publisher:P.Ohep F./
Contact Email: editor@petroleumworld.com

CopyRight © 1999-2016, Paul Ohep F. - All Rights Reserved. Legal Information

PW in Top 100 Energy Sites

CopyRight©1999-2016, Petroleumworld   / Elio Ohep Fitzgerald- All rights reservedThis site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission fromPetroleumworld or the copyright owner of the material.