ConocoPhillips plans large layoffs, potentially slowing or reversing Alaska’s oilfield jobs growth
- Alaska Beacon
- 7 hours ago
- 2 min read
By James Brooks
Alaska Beacon
The top oil-producing company in Alaska is planning significant layoffs, it announced last week.
In a series of statements, the oil giant ConocoPhillips said it will be firing between 20% and 25% of its global workforce of about 13,000 people. That would mean between 2,600 and 3,250 layoffs worldwide.
“We are always looking at how we can be more efficient with the resources we have. As part of this process, we have informed employees that a 20% to 25% reduction in our global workforce, which includes employees and contractors, is anticipated. The majority of these reductions will take place in 2025,” said Rebecca Boys, director of external affairs for ConocoPhillips Alaska, on Thursday.
Boys declined to say how many people the company employs in Alaska, but prior documents published by the company say that it has “about 1,000 people in Alaska,” and of those, about 80% live in the state.
Altogether, the oil and gas industry employed 8,800 people in Alaska as of July, according to state statistics. If ConocoPhillips were to lay off a quarter of its Alaska workforce, it likely would reverse an upward trend for the oil and gas industry here.
Since bottoming out at 6,100 people in November 2020, during the COVID-19 pandemic emergency, the number of people employed by the oil and gas industry rose throughout President Joe Biden’s administration.
ConocoPhillips produces the most oil of any company operating on the North Slope and holds the second-most oil and gas lease area in the state.
According to state data, ConocoPhillips leases about 490,000 acres of Alaska land and water for oil and gas drilling. That’s behind only privately owned Hilcorp, whose holdings exceed 500,000 acres.
ConocoPhillips is developing the large Willow project in the National Petroleum Reserve-Alaska, which is expected to begin producing oil in 2029.
According to the Alaska Division of Oil and Gas, ConocoPhillips is also planning to drill four exploration wells in other parts of the reserve this winter.
On its production side, ConocoPhillips was planning to drill 12 new production wells this year and next from the Kuparuk oilfield west of Prudhoe Bay.
• James Brooks is a longtime Alaska reporter, having previously worked at the Anchorage Daily News, Juneau Empire, Kodiak Mirror and Fairbanks Daily News-Miner. Alaska Beacon is part of States Newsroom, the nation’s largest state-focused nonprofit news organization.
