Alberta Premier Imperial Oil blames Ottawa for cuts, but experts say this is a global tendency

Alberta Premier Daniel Smith says that Imperial Oil’s plan About 20 percent of it is Number of staff By 2027 “very disappointing,” to laying defects on Ottawa and strengthening the need for pipelines.

Smith said on Tuesday, “The industry has been disrupted and hobby from the decisions of the federal government for the last 10 years.”

“If we can realize the aspiration to build our pipelines in the north, south, east and west, then we can double our production, then there is a lot of opportunity for people to be unemployed in this field.”

The Calgary-based Imperial said the deduction on Monday is part of a comprehensive restructuring plan and the company will save about $ 150 million annually.

Around 900 jobs, most of which are in Calgary, will be lost.

“This is when you have uncertainty,” Smith said. “And this is part of the reason that we have to work very quickly to get a resolution with Ottawa so that we can start building (pipelines) again.”

Imperial Oil Chairman John Vehlan said in a statement that restructuring and trimming will ensure that the company will continue to provide returns and prices for shareholders.

“We recognize the restructuring that this restructuring will be on our employees and their families,” the vehelan said. “We are deeply committed to support our employees through this transition.”

In a news release, Imperial stated that he is taking advantage of his relationship with technology and his leading shareholder Axon Mobil to continue to meet or overcome production goals.

The company also stated that the part of the restructuring would transfer Immoreal to most of the remaining Calgary posts to the Stratchona Refinery in Edmonton at the end of 2028.

While Smith raises a finger in Ottawa, Alberta NDP leader Nahdshi blamed the UCP government.

CBC News said, “We have got a government that is wandering separatists who are removing domestic and foreign investment.”

“Now we have the highest unemployment rate after Newfoundland in the country, where the energy sector is not really in danger with tariffs,” Nenshi said.

“What we are really seeing here is a change and change in work and Alberta is being left outwards, and it is directly due to Daniel Smith and UCP policies, I believe.”

Canadian Energy Minister, Tim Hodgson, also said that he is “deeply disappointed” with an employed job cut of Imperial Oil.

He said that he is working to understand what happened in the company’s decision and the government will find out ways to support the workers who lost their jobs.

On social media on Tuesday, he said, “These are skilled, dedicated people who have contributed a lot to Alberta’s energy sector and Canada’s economy, and I have thoughts with him and his families because they get this difficult news.”

In August, Imperial reported $ 11.23 billion in total revenue and other income during the second quarter, below $ 13.38 billion in the same quarter a year ago.

Hodgson said that it is their mission to ensure that energy companies like Imperial should be rich as the government works to make Canada “energy superpower”.

Oil company trimmed a global tendency: expert

Top American oil chief Exone Mobil on Tuesday announced a widespread cut, placing a plan to shut down 2,000 workers globally – about half of which is attributed to sorting of Imperial Oil.

Energy, Natural Resources and Environment Director Heather-Perot at the McDonald-Laurier Institute in Ottawa says that the latest declaration is part of a global trend.

“It is clearly extremely painful for Calgary and is extremely painful for Canada, but it is very widespread … part of the series of trimmed,” he said.

Several major energy companies, including Chevron and Konocophilips, have announced thousands of job cuts to curb costs in the last one year, while they struggle with low profits in the worldwide fall in crude oil prices and low profits in OPEC+ group oil producers.

Another Calgary-based company, Sanovas Energy Inc., confirmed the retrenchment in May, while Suncore Energy Inc. Cut about 1,500 employees In a streamlined push in 2023.

Exicor-Perot called the pruning from the corporation’s point of view “normal restructuring”, “Exon and Imperial who are doing the lowest cost barrel in oysands and are also competitive globally, and so they are not getting shut down. They have no intention to produce less oil.”

“This means that royalty keeps coming in. This means that the sector is healthy. This means that the Imperial remains healthy.”

Charles St.-Aranoud, the chief economist of Alberta Central, says the oil and gas industry is no longer that was in 2014, pre-boom, and hence the number of people employed in the region has also been affected.

He said, “Canadian oil and gas sector (A) does not live in vacuum … what is happening all over the world. It is not just in Canada that investment in industry is weak. We are seeing that we are looking around the world.”

“The name of the game for the last decade is how to run efficiency with existing works, and this is what we have seen. (Companies) are cutting the cost and those job losses go to that vein.

“This is actually a drive for the efficiency that is reducing the head count. How can you remove the same barrel at a low cost?”

St.-Aranod says that there is a need to start looking at the oil and gas area with “a separate mentality”, understanding that it is now a mature industry.

He said, “It is no longer that I was thinking in the late 2000s, in the early 2010s, where the companies were building large -scale operations, thinking huge amounts and they are not necessarily how much it is going to be spent,” he said.

“But now in () mature phase, you need to start thinking about the cost. When you are in such a mature phase of your development, how do you improve your profitability? And this is really where I see the Canadian oil industry at this time.”