Cenovus Energy has joined several other major oil companies who are cutting back. The Calgary-based oil company is reducing its 2015 spending by more than $2.5 billion dollars. This is about 15% lower than 2014 levels. Brett Harris is the company spokesman for Cenovus.
“When you’re in challenging times, you have to tighten your belt a little bit, so that’s exactly what we’re doing.”
Speaking to the Calgary Chamber of Commerce on Thursday, Calgary Mayor Naheed Nenshi said falling oil prices are a challenge, but assured Calgarians that the city’s finances can weather the economic storm.
“One of the challenges that we will face in the short term is if in fact these declines in oil prices mean that fewer people are moving here, but the good news is the city’s capital budget is stepped, so if fewer people are moving here then we stretch projects out and we build them less quickly so the city will be fine.”
Bruce Graham is with the Calgary Economic Development Authority. He says it is preparing a contingency plan to help out, if the oil patch is hit with more job losses.
“Our role is going to be to help identify and match up those people that are currently unemployed with the opportunities that are happening in the market place cause they will happen across other parts of the economy.”
Many analysts expect oil will continue its downward push as 2014 comes to a close. They are hoping 2015 will bring a price rebound.
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