More cost cutting likely as oil and gas companies seek efficiencies: industry experts

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More cost cutting likely as oil and gas companies seek efficiencies: industry experts yyc yycbiz

“As our business evolves, our integrated talent strategy identifies new opportunities for our people, enables recruitment for the skill sets we need and, unfortunately, in some circumstances reduces positions,” the statement said. “These decisions are difficult but necessary to optimize the value for our business.”

He estimated there were 60,000 fewer people working in the industry today from that high point. Oil prices had recovered from the COVID crash when production bottomed out, but he said much of that revenue was flowing to shareholders outside of Alberta.Article content Part of the issue is training the next generation and a lack of young people viewing oil and gas as a viable industry in the future. Masson said there are critical roles for those workers, from tech to data collection and other facets of the sector to improve efficiency.

Masson pointed to the difficulty to build pipelines despite a high demand for Canadian oil, with the Trans Mountain Pipeline being the last project in the works. The project is also four times over budget and overdue, but will bring shipping capacity to about four-million barrels a day across the network. The lack of further pipeline capacity is holding back any future investment in oilsands projects.

There is a misalignment between federal and provincial policies while Alberta and Canada are falling behind on carbon capture utilization and storage, as industry pushes towards net zero by 2050 without a clear plan to get there. At this point, the plan largely relies on future technology to find those carbon efficiencies, including the use of small modular reactor technology.Article content

 

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