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article imageCanada's Enbridge cutting 1,000 employees after Spectra merger

By Karen Graham     Mar 22, 2017 in Business
Houston - Enbridge Inc has announced it is cutting 1,000 jobs or six percent of its workforce in Houston, Texas, and Canada following the takeover of Houston-based Spectra Energy earlier this year.
Calgary-based Enbridge completed its $28 billion acquisition of Houston’s Spectra Energy in February this year, creating what has become North America's largest network of oil and gas pipelines suggested Fuel Fix at the time.
Now that things are beginning to settle down, with Enbridge vacating its downtown Houston offices and moving into the old Spectra headquarters building located in the Galleria area of the city, duplications in the workforce needed to be addressed, according to Enbridge officials.
Earlier this month, Spectra CEO Al Monaco warned there would be job cuts because of overlapping corporate and administrative staffs belonging to each company before the merger, so the action by Enbridge is entirely normal following the takeover.
Enbridge crude oil tank farm in Cushing  Oklahoma  has a maximum storage capacity of 20 060 000 barr...
Enbridge crude oil tank farm in Cushing, Oklahoma, has a maximum storage capacity of 20,060,000 barrels.
Roy Luck
Enbridge spokesman Todd Nogier said that reductions in the workforce were part of the "synergies" to be expected over the coming months as the companies become fully integrated. In a statement, Enbridge said, "After a careful evaluation, Enbridge has taken the difficult but necessary step to address the overlap," reports Reuters.
Michael Barnes, also speaking for Enbridge, declined to say how many jobs would be cut in Houston or Canada, but much of the overlap is in Houston, and Fuel Fix is saying that perhaps a few hundred jobs could be lost. Barnes also noted that a few additional cost-cutting measures will be implemented in the coming months, but he did not elaborate.
Enbridge made the Spectra deal to put the company in a better position in the United States. Before the deal, Enbridge's assets consisted of about 80 percent crude oil and other liquids. After the merger, they now have a roughly 50-50 balance in oil and natural gas. Enbridge also gained about 90,000 miles of gas and natural gas pipelines from Spectra in the deal.
Enbridge now has three tax-advantaged companies in the Houston area, and at this time, there are no plans for mergers or name changes. They include Enbridge Energy Partners, Midcoast Energy Partners, and Spectra Energy Partners. The former CEO of Spectra, Greg Ebel, will remain as the chairman of the merged Enbridge.
More about Enbridge, Spectra Energy, 1000 employees, Merger, duplication of jobs
 
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