Nabors drops pressure pumping business

Nabors Canada is getting out of the pressure pumping business, a move that affects more than 90 employees at the Nabors Industries Ltd. facilities in Sylvan Lake.

Nabors Canada is getting out of the pressure pumping business, a move that affects more than 90 employees at the Nabors Industries Ltd. facilities in Sylvan Lake.

Company president and CEO Joe Bruce said 49 employees were released on Wednesday, with the remainder expected to be integrated into other operations.

“Some will go to the U.S., some will go to (Sylvan Lake-based Nabors Production Services) and the remainder, come late November, December sometime if we haven’t found a position for them, will also be released.”

Bruce stressed that only Nabors Well Services Canada, which provides pressure pumping services, is affected.

“Nabors Production Services, which is our service rig division, and our Nabors drilling division are both extremely viable and will continue to operate. There are no plans whatsoever to change anything in those two divisions.”

Bruce said Nabors’ parent company, Nabors Industries Ltd., brought pressure pumping to Canada after it acquired Superior Well Services in 2010.

Used in hydraulic fracturing operations, pressure pumping accounts for only a small part of Nabors’ Canadian business.

“When you look at the overall pressure pumping business in Canada, the Nabors Well Services piece is only about one per cent,” he said, adding that the big players include Calfrac Well Services Ltd., Trican Well Service Ltd., Canyon Technical Services Ltd. and Sanjel Corp.

That’s made it difficult for Nabors Canada to gain a strong foothold in the pressure pumping market, he said, despite making a “considerable investment in the assets here.”

“Given the fact that it hasn’t necessarily played out the way we had initially projected, the decision has been made to move the equipment — specifically the pressure pumping equipment — to our sister company in the U.S., which is Nabors Completion and Production Services.”

Bruce said the prospects are better in the United States, especially since the industry there isn’t subject to seasonal cycles due to weather.

Earlier this year, Nabors Well Services moved from Blackfalds to the Nabors Production Services facilities in Sylvan Lake. Approximately 440 employees, including field staff, will continue to work out of that location.

Given the current shortage of workers in the oil and gas sector, Bruce is optimistic that Nabors’ displaced employees will find new jobs.

“We are aware that our competitors — Trican, Calfrac, Baker (Hughes Inc.) and so forth — are in the process of hiring.”

In addition to Nabors Production Services in Sylvan Lake, Nabors Canada operates a drilling division in Nisku and field offices in Leduc, Lloydminster, Brooks, Grande Prairie and Slave Lake.

Just Posted

Alberta to face mild recession in 2019, bounce back in 2020

The Canadian economy is showing improvement, but Alberta economy is doing the… Continue reading

Vandal(s) smash front doors of Red Deer museum

Facility was closed briefly until repairs were done

Memorial plaques stolen from benches in downtown Red Deer parks

City staff found at least 25 metal plaques disappeared last weekend

No representation from supervised consumption service on new panel concerning: Turning Point in Red Deer

The executive director of Turning Point says she’s “a bit disappointed” in… Continue reading

Red Deer seeking further public input on transit network improvements

Proposed new routes, improved frequency, connectivity and accessibility are all part of… Continue reading

Your community calendar

Thursday The Red Deer and District Garden Club hosts its annual Flower… Continue reading

Vancouver Canucks general manager Jim Benning signs three-year extension

VANCOUER, B.C. — Despite five seasons of mediocre on-ice results, Vancouver Canucks… Continue reading

Henderson back to defend CP Women’s Open title, 12-year-old Liu also in field

AURORA, Ont. — Brooke Henderson remembers being rather star-struck when she made… Continue reading

Alberta to limit oil production to end of 2020 as pipeline delays persist

CALGARY — The Alberta government says some oil companies may have to… Continue reading

Canadian banks to report ‘solid’ quarter amid trade tensions, strong employment

TORONTO — Trade uncertainty may weigh on the Canadian banks’ upcoming financial… Continue reading

Manufacturing sales beat forecasts in June despite falling 1.2%, says StatCan

Canadian factory activity beat expectations in June as manufacturing sales fell 1.2… Continue reading

Michael B. Jordan, Jamie Foxx among stars set for intimate onstage TIFF chats

TORONTO — Michael B. Jordan, Jamie Foxx, and Kerry Washington are among… Continue reading

Could we be any more excited? ‘Friends’ fans nuts for merch

NEW YORK — See your “Friends” on the big screen. Deck out… Continue reading

Most Read