OIL SANDS: Suncor to cut 1,000 jobs as it reins in spending

CALGARY – Suncor Energy, following the lead of other oil and gas producers, has announced plans to cut spending as oil prices plummet. The cuts to the 2015 budget include $1 billion in capital spending, $600 million to $800 million in...

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CALGARY – Suncor Energy, following the lead of other oil and gas producers, has announced plans to cut spending as oil prices plummet. The cuts to the 2015 budget include $1 billion in capital spending, $600 million to $800 million in sustaining capital, and 1,000 jobs company-wide.

The company says the workforce reductions will be made primarily to the contract workforce. There will also be an overall hiring freeze for jobs that are not critical to operations and safety.

Capital commitments to major projects – such as the Fort Hills oil sands in northern Alberta and the Hebron offshore oil in Newfoundland – will move forward as planned. Suncor considers these long term growth projects and expects strong returns when they begin production in late 2017.

The projects most affected by cost cutting are capital projects that have not yet been sanctioned, such as MacKay River 2 in situ oil sands, the White Rose Extension oil project off the East Coast of Canada, and discretionary spending. The company said no cuts would be made to the budgets of programs affecting the company's safety, reliability and environmental performance.

The Suncor website is at Suncor.com

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