Massive job cuts possible in oil and gas sector this year

An article published in The Province speculates up to 185,000 Canadian jobs could be lost this year as lower oil prices has cut operational spending by $31 billion. A study put out by the Petroleum Labour Market Information Division of Enform indicates that over two-thirds of the potential losses would be in Alberta, approximately 20,000 jobs in B.C. could be lost, and an additional 14,000 in Ontario.

The projected cuts are based off of the anticipated $31 billion not spent on exploration, development, and production activities. Last year the industry spent $125 billion.

PetroLMI director Carol Howes said the extent to which jobs are actually lost will be determined by how employers manage their labour costs. Cuts began with temporary employees and contractors, and made their way to core workers.

Oil and gas engineering construction firms are said to be most susceptible with 75,000 job losses possible. Support services could have 26,000 jobs slashed.

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