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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)
Summary
Conoco prepares to shed staff in Canada, joining Imperial Oil and other titans as trade and market pressures mount. Canada threatens to halve its trade with the U.S.
By November, ConocoPhillips Company (Houston, Texas) will have joined the growing list of major oil companies shedding staff, with the company announcing major layoffs in its Canadian operations. The company said it had about 1,000 people working in Canada and was churning out roughly 164,000 barrels of oil equivalent per day (BOE/d) by the end of 2024.
In early October, Conoco spent US$2.7 billion in cash to take over oil-sands developer Surmont from TotalEnergies (Paris, France).
A corporate memo viewed by the Reuters news service said Conoco will cut staff from its Canadian operations by early November, with work in Alberta highly targeted.
"We will not be sharing area-specific workforce numbers for current or impacted employees and contractors," Conoco spokesperson Dennis Nuss said in an email to Reuters on Thursday.
Canadian--and Global--Oil Industry Under Pressure
Slumping oil prices and supply-chain issues stemming from U.S. tariff policies are creating pressure for the industry. Canadian energy company Imperial Oil (Calgary, Alberta) already announced it would shed about 20% of its workforce by 2027 as part of a broad-based restructuring process. The company behind the Colonial Pipeline, a major east-of-the-Mississippi fuel artery, is planning layoffs, while Exxon Mobil Corporation (Houston) said it was cutting 4% of its workforce. And after moving its headquarters from California to Texas, Chevron Corporation (Houston) cut 20% of its staff and relocated thousands of others to India, where labor costs are lower.
Meanwhile, Canadian leaders are divided over how to address tariffs from U.S. President Donald Trump, who suspended trade talks after a Canadian ad stating import taxes are detrimental to everyday U.S. citizens.
Canadian Prime Minister Mark Carney, for his part, is advancing a handful of nation-building projects, including the second phase of the LNG Canada facility in British Columbia. That plant is the only one currently delivering liquified natural gas (LNG) from the western shores of North America.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database learn more about LNG Canada in a detailed plant profile.
By the Numbers
On Thursday, Carney said Canada would invest US$1.4 billion to support the construction of four small-modular nuclear reactors (SMR) at a facility in Ontario, part of a broader economic diversification strategy.
If completed, the four reactors will supply about 1.2 gigawatts (GW) of power, enough to meet the demands of the entire population of the greater Toronto area. These will be the first SMRs in service among the G7 economies.
Subscribers can learn more about the Ontario power facility in a detailed plant profile.
"We're protecting Ontario by supporting good-paying, long-term jobs for Ontario workers and building the energy infrastructure--including both SMRs and new, large-scale nuclear--needed to make Ontario an energy superpower," Ontario Premier Doug Ford said.
A Relationship Gone Sour
Ford and Carney have stood up to Trump, with Carney advocating for less trade with the U.S. The prime minister, a former central bank official in Canada and the U.K., said Thursday he wanted to double non-U.S. trade by the end of the decade, because the Canadian economy, he said, was under threat.
"Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us," he said, adding ties with the U.S. "will never be the same."
About 75% of Canada's foreign trade is with the U.S., but the latter depends on Canada for soft lumber, electricity and crude oil. Much of the U.S. refining sector is tailored to run the heavier types of crude oil found in Canada.
Key Takeaways
Summary
Conoco prepares to shed staff in Canada, joining Imperial Oil and other titans as trade and market pressures mount. Canada threatens to halve its trade with the U.S.
By November, ConocoPhillips Company (Houston, Texas) will have joined the growing list of major oil companies shedding staff, with the company announcing major layoffs in its Canadian operations. The company said it had about 1,000 people working in Canada and was churning out roughly 164,000 barrels of oil equivalent per day (BOE/d) by the end of 2024.
In early October, Conoco spent US$2.7 billion in cash to take over oil-sands developer Surmont from TotalEnergies (Paris, France).
A corporate memo viewed by the Reuters news service said Conoco will cut staff from its Canadian operations by early November, with work in Alberta highly targeted.
"We will not be sharing area-specific workforce numbers for current or impacted employees and contractors," Conoco spokesperson Dennis Nuss said in an email to Reuters on Thursday.
Canadian--and Global--Oil Industry Under Pressure
Slumping oil prices and supply-chain issues stemming from U.S. tariff policies are creating pressure for the industry. Canadian energy company Imperial Oil (Calgary, Alberta) already announced it would shed about 20% of its workforce by 2027 as part of a broad-based restructuring process. The company behind the Colonial Pipeline, a major east-of-the-Mississippi fuel artery, is planning layoffs, while Exxon Mobil Corporation (Houston) said it was cutting 4% of its workforce. And after moving its headquarters from California to Texas, Chevron Corporation (Houston) cut 20% of its staff and relocated thousands of others to India, where labor costs are lower.
Meanwhile, Canadian leaders are divided over how to address tariffs from U.S. President Donald Trump, who suspended trade talks after a Canadian ad stating import taxes are detrimental to everyday U.S. citizens.
Canadian Prime Minister Mark Carney, for his part, is advancing a handful of nation-building projects, including the second phase of the LNG Canada facility in British Columbia. That plant is the only one currently delivering liquified natural gas (LNG) from the western shores of North America.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database learn more about LNG Canada in a detailed plant profile.
By the Numbers
- Conoco is cutting about 1,000 people from its Canadian workforce
- ExxonMobil is cutting 4% of its global workforce, while Chevron is cutting 20%
- Carney says Canada will spend US$1.4 billion to back four SMRs
On Thursday, Carney said Canada would invest US$1.4 billion to support the construction of four small-modular nuclear reactors (SMR) at a facility in Ontario, part of a broader economic diversification strategy.
If completed, the four reactors will supply about 1.2 gigawatts (GW) of power, enough to meet the demands of the entire population of the greater Toronto area. These will be the first SMRs in service among the G7 economies.
Subscribers can learn more about the Ontario power facility in a detailed plant profile.
"We're protecting Ontario by supporting good-paying, long-term jobs for Ontario workers and building the energy infrastructure--including both SMRs and new, large-scale nuclear--needed to make Ontario an energy superpower," Ontario Premier Doug Ford said.
A Relationship Gone Sour
Ford and Carney have stood up to Trump, with Carney advocating for less trade with the U.S. The prime minister, a former central bank official in Canada and the U.K., said Thursday he wanted to double non-U.S. trade by the end of the decade, because the Canadian economy, he said, was under threat.
"Our businesses are holding back investments, restrained by the pall of uncertainty that is hanging over all of us," he said, adding ties with the U.S. "will never be the same."
About 75% of Canada's foreign trade is with the U.S., but the latter depends on Canada for soft lumber, electricity and crude oil. Much of the U.S. refining sector is tailored to run the heavier types of crude oil found in Canada.
Key Takeaways
- The oil industry is pulling back dramatically in Canada, and much of the world
- Canadian leaders see hope in SMR technology
- Canada and the U.S. have a long, fruitful trade relationship that is weakening rapidly
