8.6 C
New York
Sunday, August 1, 2021
Home Business Calfrac Well Services lays off up to 70% in Canada, U.S. as...

Calfrac Well Services lays off up to 70% in Canada, U.S. as oilpatch activity dries up

One of Canada’s largest oil and gas well completion companies is laying off more than two-thirds of its North American field employees as oilpatch activity slows dramatically. 

Calfrac Well Services announced Tuesday it is reducing the number of field staff by 70 per cent, pointing to a “rapid and unforeseen deterioration in business conditions” due to COVID-19 and an international oil price war.

The Calgary-based company did not release a precise number of staff affected, but the company had about 1,600 field personnel working in North America last year, with about a third of those employed in Canada.

The double-blow of the pandemic and the price war has seen “essentially all” of Calfrac’s clients make reductions in their planned spending, the company said in a release.

“The production cut announced by OPEC+ members on April 12 … has to date been insufficient to counterbalance the combined impact of the demand destruction,” the company said.

The oil industry worldwide has been under increasing strain due to the collapse in demand and worries about a lack of storage for all of the excess crude, particularly in the United States.

Last week, the U.S. benchmark price for oil went negative for the first time.

Oil companies have made steep cuts to this year’s spending plans and production, meaning there is less work for business such as drillers and oilfield services firms.

Calfrac had already announced last month it was cutting this year’s capital program to $55 million from $100 million. It also said it was taking several other steps to reduce fixed costs, including salary cuts. 

“It is difficult to predict how the COVID-19 pandemic will continue to affect the demand for Calfrac’s services,” it said.  

However, Calfrac said its management will monitor and assess the evolving circumstances to determine what further measures will need to be taken to mitigate the impacts “of this unprecedented market challenge.”

Earlier this month, Calgary rival Trican Well Service said it had cut its employee costs by half through salary reductions, layoffs and job sharing in reaction to a severe slowdown in drilling activity.

Source link

Today news
Today News 1 runs four of the western GTA’s most influential media websites, offering news, food, lifestyle and entertainment coverage for millions to the Golden Horseshoe and GTA regions. The independently-run, online news source was founded in 2019 and specializes in everything from breaking news to food and restaurant, arts and entertainment and lifestyle coverage.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Oilpatch revival underway with robust profits so far this year

After racking up debt in 2020, the Canadian oilpatch is enjoying a rebound so far this year as major oil producers are gushing...

Business travel isn’t expected to return to pre-pandemic levels anytime soon

Kacey Siskind recently took her first business trip to the U.S. since the pandemic began.  The vice-president of business development at Honk Mobile, a...

Pop star Kris Wu detained by Beijing police on suspicion of sexual assault

Chinese-Canadian pop star Kris Wu has been detained by Beijing police on suspicion of rape, police announced Saturday, following an accusation the former...

Barenaked Ladies ready to return to stage after a Detour de Force

Among the four current members of Barenaked Ladies, there are differing feelings about returning to the stage. There is the predictable excitement, but...

Recent Comments