Alberta Premier Danielle Smith expressed disappointment over Imperial Oil’s decision to reduce its workforce by around 20% by 2027, attributing the situation to federal government actions and emphasizing the necessity of constructing pipelines. Smith highlighted that pipeline expansion could create new job opportunities in the industry. Imperial Oil, based in Calgary, announced the layoffs as part of a larger restructuring initiative to save approximately $150 million annually, affecting about 900 positions mainly in Calgary.
Imperial Oil’s Chairman, John Whelan, stated that the restructuring aims to maintain shareholder value. The company plans to relocate most remaining Calgary roles to the Strathcona Refinery in Edmonton by late 2028. Meanwhile, NDP Leader Naheed Nenshi criticized the UCP government for the situation, pointing to policies impacting Alberta’s labor market.
Canada’s Energy Minister, Tim Hodgson, expressed disappointment over the job cuts, mentioning efforts to assist affected workers. Global trends in the oil industry show a pattern of layoffs, with Exxon Mobil also announcing extensive job reductions. Analysts observe a shift towards cost-efficiency and global competitiveness in the sector.
In response to the industry changes, experts like Heather Exner-Pirot and Charles St-Arnaud emphasize the need for efficiency and cost-effectiveness in oil and gas operations. They stress the industry’s evolution towards a mature phase, requiring a different approach to sustain profitability. The Canadian oil and gas sector is adapting to a changing landscape, influenced by global economic conditions and evolving market dynamics.