CALGARY-Royal Dutch Shell PLC said Friday it plans to cut jobs
at its Canadian oil-sands operations, becoming the first major
energy company to shed workers in Canada's oil patch amid a recent
swoon in global crude oil prices.
Shell, which produces 250,000 barrels of oil a day from its
oil-sands mines, will trim about 2% of its 3,000 workers, or about
60 positions, some of whom will be reassigned to other jobs, said
company spokesman Cameron Yost.
"We're continuing to review our business to make sure that we
remain competitive," Mr. Yost said. "When prices are low the
importance of that is underlined," he said.
The president of Shell Canada, Lorraine Mitchelmore, said in
August that the company's oil-sands business met internal
yardsticks for profitability when Brent crude trades above $70 per
barrel. Prices for Brent, the global oil benchmark, have spiraled
lower in recent weeks, falling below $50 a barrel this week.
Shell owns a 60% stake in its core oil sands operations with
Chevron Corp., and Marathon Oil corp. splitting the remainder.
These consist of two surface mines, known as Jackpine and Muskeg
River, in Alberta.
Last February, Shell pushed back the development timeline for an
oil-sands mine at a site called Pierre River, but has been pursuing
other projects such as an expansion of its Jackpine mine and
horizontally drilled wells elsewhere in northern Alberta at Carmon
Creek and Peace River.
Write to Chester Dawson at chester.dawson@wsj.com
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