Royal Dutch Shell to cut 5 to 10 percent of 3,000 oil sands jobs

Dutch multinational oil and gas giant Royal Dutch Shell plc says it will reduce its 3,000 workforce at its Albian Sands mining project in northern Alberta by between 5% and 10%, i.e. up to 300 jobs, making it the first major energy firm to lay off workers in Canada’s oil patch.

The company hasn’t announced a timeline for the jobs cuts or provided an exact number of positions that will be eliminated.

The move comes at a time when oil prices continue to plummet. West Texas Intermediate, the U.S. benchmark oil price, fell 43 cents Friday to $48.36 barrel, less than half its June peak. Brent, the international standard, was down 85 cents to $50.11 per barrel — its lowest close since April 2009.

Meanwhile, production from the oil sands is seen as having some of the highest break even price points in North America.

But a Shell official characterized the move as unrelated to the drop in commodity prices and intended to keep the company efficient and competitive.

Shell produces about 255,000 barrels of oil equivalent per day from the two mines that are included in the project.

Agencies/Canadajournal