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

TC Energy would not say in an emailed statement to Postmedia how many jobs are being cut or where, only that it was undergoing a realignment of labour needs.

Charles St-Arnaud, chief economist for Alberta Central, noted the big windfall from 2022 did not result in a major hiring blitz or investment in new projects. In fact, employment in the oil sector remained well off the levels of 2014, before the major crash that largely contributed to downtown Calgary emptying out.Article content

He said the restructuring of the past week is in the same vein, agreeing there will likely be more cutting, but it will not be as severe as in 2015.Masson added that most energy companies are experiencing a labour shortage, meaning most of those who lose their jobs should be reabsorbed into the sector or find transferable work in other sectors.Article content

A major factor for the lack of investment is an uncertain oil and gas environment in Canada, and increasingly in Alberta, which is reflected globally. Masson noted that in the five years before 2014, investment ramped up in oil and gas every year, topping out at $80 billion, split between conventional oil and gas and the oilsands. During COVID, investment was about $20 billion a year, which has increased slightly this year, but he doubts whether it will ever reach 2014 levels again.

 

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