- Crescent Point Energy announced Wednesday they would be reducing their workforce by 17 percent and making other changes as part of their new strategic plan.
Environment Minister Dustin Duncan said his thoughts are with the families affected by the layoffs. Although he is not aware of anyone in the southeast directly affected by the layoffs at this time, he said he believes the announcement may bring business to the area down the road.
"Crescent Point has indicated that they're going to be selling production around Saskatchewan to other companies and so, you know, those companies are going to need people to operate those wells and to operate those facilities," said Duncan. "So, I think in the short term it's obviously difficult news, but I think in the long term fundamentals are still pretty strong. Prices are better than they have been in the last couple of years and the oil is going to get produced. So, I think that the short-term effects are obviously devastating for those families but longer term, hopefully, something good can come out of this and we'll have maybe some new companies in Saskatchewan operating some of these wells."
In the release from the company on Wednesday, Crescent Point indicated they were focusing their attention on the Viewfield, Flat Lake and Shaunavon resource plays. They are also looking to further develop the Uinta Basin and East Shale Duvernay. They also announced new President and CEO Craig Bryksa and new Chairman of the Board Robert Heinemann.
Duncan said the restructuring is likely to get shareholders interested again, as Crescent Point's stock prices have plummeted 50 percent in the past two years.
"They've indicated that they need to pay down some debt...but I don't think it necessarily means that they're backing out of Saskatchewan. They've certainly been strong to commit to the government to say that they want to be in Saskatchewan long term but in the short term they've had to make some difficult decisions to kind of refocus the company, you know, would be my take of things."
About 230 employees and contractors are being laid off as part of Crescent Point's new strategic plan. There's still no word on how the layoffs will affect the southeast.