Any word about how we will be affected with cuts here in Alberta? I’ve heard ramblings that office jobs are all moving stateside in order to appease Trump. Has anyone heard of this? Friends at other oil and gas companies here in Alberta are bracing for job cuts. What’s going on here?
3 replies (most recent on top)
We don’t want the Canadians in Denver or the woodlands. They whine too much and aren’t near as talented as our US based employees. They would struggle to stay afloat trying to work the Permian Basin.
Technically, we've already had one cut in 2025 due to the Uinta sale.
Since I'm bored and have nothing better to do with my life, I'll take a stab at this. I'm just speculating, but I doubt mass relocation for a few reasons.
- Forced relocation would be an expensive proposition. Relocation costs for those who might agree to move from Calgary to Woodlands. Or expensive severance packages for those who refuse to transfer. Plus there could be issues with obtaining work visas for Canadian staff.
- Residency requirements (c.f. AER Dir 67). Ovintiv operates wells in Alberta , so they would still require some Alberta-based staff who are able to make decision regarding the licensing and operating of wells, facilities and pipelines (e.g. operations geologists, drilling superintendent, APEGA-licensed types, etc). Could it be done with a skeleton staff or a team of local consultants? Maybe, but that could have a deleterious effect on safety, or efficiency, which would ultimately effect Ovintiv's legal ability to operate in AB.
- Couple years back I recall there being some discussions around compensation in Canada vs. USA. Generally speaking, Canadian staff are cheaper than US staff. This is not a comment on competence, or ability. Even if in nominal terms a job in either Canada or the US pays $75000, the Canadian is paid less due to the abysmal exchange rate. Why move staff when it would likely increase G&A cost?
- If some staff refused to transfer, it might prove difficult to find replacement staff in the US. How many US geologists/engineers/landmen/regulatory have direct experience in the Montney? Probably less than you might find in Canada. Not impossible to find people, but more difficult, and probably more costly too.
- Finally, and most importantly, my experience tells me that most, maybe all, scuttlebutt and rumours around the Bow are 100% bullsh-t.
If you're concerned about further cuts in staffing, the October cuts should serve as proof and a reminder that cuts can come rapidly and unexpectedly. I bet most of those let go didn't see it coming. And recall that twice before Encana/Ovintiv had layoffs in back-to-back years (2015/16 and 2019/20), so don't think that 2025 will be safe because all the badness happened last year. Keep your nose to the grindstone, keep your resume updated, keep your jobs skills sharp, keep and maintain relationships with people in industry, and keep your fingers crossed.
Done.