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Suncor slashes 1,000 jobs, takes $1 billion out of 2015 budget

Suncor slashes 1,000 jobs, takes $1 billion out of 2015 budget – Suncor Energy Inc., the largest Canadian oil company by market value, is reducing its workforce by 1,000 and cutting $1 billion from its capital budget in response to plummeting crude oil prices.

The Calgary-based oilsands giant says the job cuts will mainly affect contractors, but include some employee positions as well.

In November, Suncor predicted capital spending for 2015 would range between $7.2 billion and $7.8 billion.

What cheap oil means to 2015

Falling oil prices may eat into federal surplus: TD Economics

Projects that haven’t yet been given a final go-ahead by Suncor’s board are being deferred, such as expansions to the MacKay River project in northeastern Alberta and the White Rose development off the east coast.

But major projects under construction such as the $13.5-billion Fort Hills mine north of Fort McMurray, Alta., and the Hebron field in offshore Newfoundland are moving ahead as planned.

U.S. benchmark crude oil prices settled at $45.89 (U.S.) a barrel on Tuesday, less than half of where they were just six months ago.

The plan also includes reducing operating expense by $600 million to $800 million in two years, offsetting inflation and growth, according to a company statement Tuesday.

“Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices,” Steve Williams, Suncor’s president and chief executive officer, said in the statement.

“In today’s low crude price environment, it’s essential we accelerate this work.”

SWS


 

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