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Sunrise Energy oilsands tells 1,000 workers to leave job site

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    Sunrise Energy oilsands tells 1,000 workers to leave job site

    Oh Boy its starting! Trucks Quads and Boats will be cheap. Its not funny at all but reality of low oil.
    About 1,000 tradespeople working on the Husky Sunrise Energy oilsands project woke up to find themselves out of work Wednesday morning.

    “I got notice from some of my contacts on site they received notice under their door that Saipem and Husky’s contract had come to an end or had been terminated by Husky and that they were going to be demobilized as of today,” said Izzy Huygen, with the Christian Labour Association of Canada.

    CLAC supplies tradespeople to Saipem Canada which was contracted to work on the Husky Sunrise Energy project 60 kilometres northeast of Fort McMurray. The project uses steam injection to recover below-surface bitumen.

    The work began about 2½ years ago and was not expected to end until this summer, he said.

    Huygen has no idea why the job ended so suddenly.

    “I may find out or I might never know.”

    In a news release, Husky Energy said construction at the site is largely complete, with the plant starting production Wednesday. It said Saipem’s work was done.

    Recently, Calgary-based Husky said it was seeking $400 million to $600 million in cost savings from its suppliers and contractors in the face of low oil prices.
    Scaffolder Darcy Longman, who had been working on the site since June, found a letter slipped under his door early Wednesday.

    “We were given notices under our door at 3:30 a.m. that Saipem has been kicked off the Husky Sunrise site effective immediately as far as I know,” he said. “Everybody knew everything was going good. We were good until April.”

    He's not only angry about losing his job, but said he wasn't allowed back on the job site to retrieve his personal tools and boots before having to board a bus.

    Workers were shuttled off the work site to an airstrip before being flown to either Calgary or Edmonton, he said.

    Once home, the workers will be looking for work in a much quieter industry, Huygen said.

    “We can hopefully hook them up with other jobs that are out there,” he said. “Of course with the oil price where it's at, that’s a challenge anyway."

    How many more stories like this will be around western Canada this summer.
    Sad sad sad.

    #2
    Perfect time for a federal election.

    Conservatives bailed out the auto sector. Maybe the oil industry will be looking for same concessions?

    Although I find this all pretty tough considering oil might be down but gas and diesel are moving up.

    Husky's margins are probably better now than in the past.

    Comment


      #3
      Have just been looking at crude oil futures prices.
      West Texas shows increase of about 20 per cent, Brent crude a little over 10 per cent this April-May to next.
      In grains, Chicago wheat has about 20 per cent increase, less for other grains. Soybeans and canola flat to lower.
      Anyone want to predict how well head prices for western Canada crude will follow futures prices?

      Comment


        #4
        Hopalong

        You have to admit the oil to gas/diesel is just out to lunch.

        Margins for the integrateds have to be great. There is no reason to slow down an economy unless they are blackmailing for a better tax break.

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          #5
          The problem is storage is just about maxed in North America and the world when that hits oil will really go down then you will see forced production cuts

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            #6
            I am probably wrong but when storage hits the full mark and oil prices drop, if gas and diesel stay the same the margins get better?

            Just an experience I have had in grain and thought all commodities follow the same path?

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              #7
              The margins get better for the middleman.

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                #8
                Western canada may end up with a no bid on its oil for several quarters. I bet the oil sands will come to a complete halt.

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                  #9
                  If oil totally collapses, grain prices better pick up and livestock prices stay up, because they will have to support this country again. Like what it was built on we have given everything else away. MFG, Auto, Ag mfg even out sourced call centers etc.

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                    #10
                    My son lives in Grande Prairie. He has worked for Weatherford for years in pipe recovery, directional, etc. One weak ago today his position was terminated. Since he was fairly senior in his division with a higher base salary and day rate, he was low hanging fruit for the bean counters in Texas. What annoys me is that they hired a TFW last year and he gets to stay on.
                    About one third of the oil field work force around GP has been laid off with many more to come.

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                      #11
                      What opportunities will come up for the ag sector with a downturn in oil employment numbers?
                      More labour available for our farms?
                      Less expensive pickup trucks, quads, etc?

                      Comment


                        #12
                        Buggers are still pegged at 90 bucks a barrel so cutting the chaff now makes them more money and get them ready for the 50 dollar oil.

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