Suncor Energy Inc. (SU)

[Enterprising Investor]

Canadian oil firm to cut 1,000 jobs, curb spending (1/13/15)

HOUSTON – Canadian oil sands firm Suncor Energy said Tuesday it plans to cut 1,000 jobs, primarily contract positions, as it trims $1 billion out of its investment plans this year.

It’s also gutting its operational expenses by $600 million to $800 million over the next two years. Suncor is the latest to burn off budget fat as petroleum prices crash, joining peers like Canadian Natural Resources, which said this week it anticipates a $2 billion spending cut of its own.

“Cost management has been an ongoing focus, with successful efforts to reduce both capital and operating costs well underway before the decline in oil prices,” Suncor CEO Steve Williams said in a written statement. “However, in today’s low crude price environment, it’s essential we accelerate this work.”

That involves deferring some oil projects and implementing a hiring freeze for non-critical jobs. The Calgary-based firm said it expects to produce from its oil sands operations 540,000 to 585,000 barrels of oil a day this year. Despite the budget cut, Suncor’s projections for its oil production remains unchanged from prior estimates, it said.

http://fuelfix.com/blog/2015/01/13/canadian-oil-firm-to-cut-1000-jobs-curb-spending/