Canada's Talisman Energy is looking at staff reduction as a means of cutting its operating costs and boosting its bottom line, according to Phoebe Buckland, a spokesperson for the company.
The move comes just a few months after Hal Kvisle, a former executive at TransCanada, became Talisman's new president and CEO. Since Kvisle assumed leadership of the company, it has consistently emphasized its intention to aggressively cut costs and extricate itself from less-profitable operations.
"We will live within our means, reducing investment to live within cash flow," Kvisle explained in a press release.
To meet that goal, Talisman has sold off numerous assets, and the firm is looking to reduce general and administrative costs by "at least 20 percent overall," according to Helen Wesley, the company's executive vice president of corporate services.
Nathan Vanderklippe of The Globe and Mail, a Canadian publication, linked Talisman's efforts to cut costs to a larger set of challenges that are facing many companies in the country's energy industry.
High production costs and tight margins have left many oil and gas producers scrambling to make ends meet. Talisman's ambitious cost-cutting plans communicate its strong concern about future profitability.
While all companies have a need to keep costs low, energy producers should consider all of their options before committing to a scale-down that could limit their options in the future. Some firms may be able to bolster their bottom line by increasing the output of established oil and gas wells.
Installing a hydraulic jet pump or other artificial lift equipment can be particularly beneficial. Companies that are interested in learning more about hydraulic lift solutions should contact an experienced provider of oil production equipment.