Tag: CNRL

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Alberta Canada Economic Ft Mac

CNRL Announces Across the Board Salary Cuts to Offset Low Oil Prices

salary cuts, CNRL

Canadian Natural Resources Ltd., better known as CNRL, has announced salary cuts that will be applied across the board in a move to recover from low oil prices on the market right now. According to a company spokesperson every salaried employe at the energy company will be expected to take a pay cut that could be a maximum of 10%, and no employee will be exempt from this reduction. CNRL is struggling right now, trying to stay profitable and competitive without laying off employees or cutting positions. According to an email from company spokesperson Julie Woo “The salary reductions of up to 10% apply to all salaried employees across our operations, including at our Horizon Oil Sands operation.” The company currently employs around 7,500 employees.

CNRL spokesperson Woo did not give a complete break down of the CNRL salary cuts or offer an estimate on the amount of savings that this move could mean for the company. The idea is that even senior management officials like Steve Laut, the president and CEO of CNRL, will take the same percentage of salary cuts as lower placed salaried workers. Higher pay means that higher ranked management will see steeper reductions even though the same percentage of their pay will be deducted because these executives make more. According to Julie Woo “The challenges facing our industry are significant. These measures were taken in order to help the company address the current challenges without reducing our workforce.” Just last month the company was blaming the provincial government for corporate tax increases that also ate into the company profits.

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Alberta Economic Ft Mac

Did Alberta Tax Increases Cost CNRL $405 Million in Second Quarter Losses?

CNRL, Alberta tax increases

CNRL is the second big oil company to blame an Alberta tax increase for hundreds of millions of dollars in losses during their second quarter of operations. The entire oil industry saw losses last year because of the drop in global oil prices, but some energy companies are seeing current losses that they link with Alberta tax increases as well. The corporate tax rate for Alberta jumped from 10% to 12%, and this caused CNRL to record a $405 million net loss during the second quarter. This is in comparison to a profit of $1.07 billion that was recorded just a year ago. CNRL has taken the position that the sudden increase in the tax rate for corporations played a huge part in the losses the company is experiencing.

When discussing the Alberta tax increases and the posted loss that CNRL has the chief financial officer for the company, Corey Bieber, stated “This charge effectively translates into lower future cash flows and therefore, lowers reinvestment in the business. Based upon third-party research, this lower future capital reinvestment likely equates to about 4,100 fewer person years of direct, indirect and induced employment, with follow-on impact of higher income taxes on future income streams. We expect to deliver annual oil production at the midpoint of guidance despite the forest fire impact on second quarter oil production,. We have been able to achieve significant cost savings through better effectiveness, efficiency and innovation. Both operating and capital costs were down significantly from the second quarter in 2014 to the second quarter of this year.”

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Economic Ft Mac

Some CNRL Contractors Affected by Lay Offs Were Stranded For a Time

CNRL, contractors, lay offs

Roughly 25 CNRL contractors affected by the recent lay offs from the company were stranded when they received the notice that they were being laid off, leaving the workers stuck at the oilsands site when transportation that had been arranged did not materialize. The workers were finally flown out last Thursday after CNRL arranged for the contractors to be flown home. According to Julie Woo, the company spokesperson, “We confirm that 25 workers flew from the Horizon site this morning. Our agreement conditions state that the employee’s travel must be arranged, therefore, Canadian Natural worked together with the involved parties to ensure that the appropriate travel arrangements were made for PPEC’s workers.” The company also provided accommodations at the camp for the workers affected by the lay offs until transportation could be arranged by the company.

The Horizon site, one of the company projects and the location of the worker camp, was a location affected by the CRNL lay offs of contractors. On Thursday Woo continued on the topic by responding “This morning they were transported to our Aerodrome for their departure from site on Canadian Natural’s regular charter flight to Edmonton and Calgary. Workers were provided support in making travel arrangements to their final destination.” It is not known why the original transportation arranged for the stranded contractors did not arrive as scheduled, but CNRL made sure that everyone who ended up stranded was provided transportation to leave the area. The company also offered support and resources for those who needed to make additional arrangements to get back home.

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Economic Ft Mac

MacMurray Metis Promise CNRL Will Have Difficult Development Without Further Discussion

MacMurray Metis, CNRL

The MacMurray Metis have promised that CNRL energy company will have a difficult time developing local areas unless the energy company is willing to discuss the development with the group. According to Kyle Harrietha, the McMurray Métis general manager, “To both industry and government, I’ll say the following: it is crystal clear that there is a duty to consult and accommodate with Métis communities. I can only speak for McMurray Métis when I say that those in industry and government who refuse to acknowledge and honour those facts that the relationship with us will always be difficult,. I can assure you that you will eventually be forced to do so through litigation.” Harrietha spoke at the Métis Rights & Economic Development Symposium, a two day event held at the Sawridge Inn & Conference Centre in Fort MacMurray.

CNRL has received approval to start test drilling and energy exploration in a number of spots close to Gregoire Lake Provincial Park. The MacMurray Metis were never given an opportunity to discuss the new test drilling and exploration or to challenge the project. According to Kyle Harrietha stated “In all recent interactions, they’ve been addressing the Métis and First Nations through lawyers. That’s always a bad sign. Our organization has almost always been able to work out settlements from industry. This is what it looks like and sounds like when a relationship goes the other way.”Harrietha also discussed the freshwater aquifer benzine leak that CNRL was responsible for in 2014, slamming the company on safety and environmental protection.

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Alberta Ft Mac Health

MacMurray Metis Say Reputation of CNRL With Aboriginal Population is in Death Spiral

CNRL, MacMurray Metis

An application from CNRL to begin exploring the region near Gregoire Lake has been approved, in spite of the fact that the MacMurray Metis have appealed and requested a hearing on the matter. In September of 2014 CNRL requested permission to engage in exploration close to Gregoire Lake Provincial Park and Anzac in an attempt to locate bitumen deposits. The area in question is culturally significant according to the MacMurray Metis, which lead to the appeal and hearing request. On February 26 a letter was sent from the AER to local stating that a hearing is not required and that the company has already met the prererquisite notifications required. AER acting director for land use authorizations Tara Hosick wrote in the letter “The application area is within the boundary of the Lower Athabasca Regional Plan (LARP), which addresses acceptable land disturbance standards in relation to wildlife and management of cumulative impacts on a regional basis. The subject exploration activities are permitted under LARP. CNRL has met all applicable notification requirements for the application.”

According to the MacMurray Metis claim an argument was made that ample evidence supported both the Metis traditional land use and the fact that the area was still a location for harvesting. The Metis also question whether CNRL can be responsible in their operations in the area. Kyle Harrietha, general manager for the MacMurray Metis, said “We provided a lot more info than what was indicated in their letter of response.‘ The only thing in a death spiral right now is CNRL’s reputation among aboriginal organizations in northeastern Alberta. We have very little confidence in CNRL’s ability to operate responsibly. They’ve demonstrated time and time again that they play fast and loose with the environment and that was demonstrated with their problems at Primrose and contamination of the groundwater aquifer at Wolf Lake.”