Shale Giants Slash Thousands of Jobs as Lower Prices Bite

Core Viewpoint - U.S. oil and gas producers are focusing on efficiencies and cost reductions due to lower oil prices compared to 2024 levels, leading to workforce reductions and restructuring efforts across the industry [1]. Group 1: Company Actions - ConocoPhillips is implementing workforce reductions in its Canadian operations, with notifications scheduled for November 5 for Calgary employees and November 6 for those in Surmont and Montney [2][3]. - The company currently employs approximately 950 people in Canada, and this number is expected to decrease as part of a broader strategy to streamline operations and cut costs [4]. - ConocoPhillips plans to reduce its workforce by up to 25% across various functions and geographies to simplify its organizational structure [5]. Group 2: Industry Context - The oil and gas sector is experiencing a trend of mergers and acquisitions, with ConocoPhillips having completed the acquisition of Marathon Oil Corporation for an enterprise value of $22.5 billion, which is seen as a move to achieve greater scale and diversification in U.S. shale basins [5]. - Industry consolidation is viewed as necessary by executives, with ConocoPhillips CEO Ryan Lance emphasizing the need for fewer players in the market to enhance scale and diversity [6].