Syncrude Canada contractors are being asked to engage in cost cutting measures and to work with the company in lowering costs and keeping them down. Oil prices continue to drop, creating concern for those in the oil industry, and Syncrude is looking at ways to lower operating expenses as a result of falling profits. Mark Ward, Syncrude CEO, sent out a letter to contractors on January 15 of this year that read in part “It is clear that we are not in ‘business as usual. As part of this effort, we are actively reviewing all contractual arrangements and looking at where we should expect to see some cost savings to help manage this urgent situation. Our intent on a go-forward basis is to continue to release work to suppliers that we feel represent the best total value – meaning, the best mix of price, work execution, safety, quality, etc.”

The letter to Syncrude contractors about implementing cost cutting measures did not mention canceling contracts or any layoffs. Will Gibson, the Syncrude spokesperson, responded to requests for information by stating “I can tell you Syncrude isn’t unique in the oil sands in facing the current economic environment and our employees are working hard to reduce costs in the short and long term,. This includes working with our contractors to help reduce costs and ensure our shared long-term success.” Two days before the letter was sent out to contractors of the company Suncor Energy announced that the company was eliminating 1,000 jobs, instituting a hiring freeze, and cutting out $1 billion from the budget for 2015.