The Fallout Continues

CNRL layoffs announced today. No official word on the number. This was sent to CNRL employees this morning:

From: Allan Markin
Sent: Wednesday, November 28, 2007 11:11 AM
To: Exchange Users
Subject: From the Desk of Allan Markin

Good morning, We regret to inform you that this morning Canadian Natural released a small number of employees and contractors.

We are sure you can appreciate that we are operating in a quickly changing economic environment. Natural gas prices, which represent a significant portion of our business, have declined over the past year and are not expected to improve much over the coming year. The rising Canadian dollar has meant we have received less for our products since they are priced in US dollars. Pressure on the cost of goods and services, on general and administrative (G&A) expenses, and on the cost of capital projects has further challenged our industry. Adding to this, the royalty structure within Alberta will be changed, further reducing the profitability of many of our investments.

These are the realities which we face, much of which we have little to no control over. But we will not sit back and let events over take us.

Today’s decisions were difficult, but necessary to adjust our business to these economic challenges, and are intended to ensure we are staffed appropriately to move into the future. Our Management Committee takes no pleasure, at any time, in making these kinds of decisions. But when it is necessary, I can assure you that we do it right, and with integrity.

We remain very confident in our success, and in the opportunities ahead of us. We are better positioned than any of our peers to develop and grow our business for many years to come. We have the right people, the right projects, and the right plans to continue building Canada’s most successful exploration and production company, despite the previously mentioned challenges facing the entire oil and natural gas industry.