Big changes are afoot today for Noble Energy.
The oil and gas company, one of the top two drillers in Weld County, has planned 220 layoffs in its U.S. operations, only 20 of which will come out of the Greeley headquarters, according to Steve Silvers, company spokesman.
About 80 of the layoffs will be from the company’s Denver office. The remainder of the layoffs in the “organizational realignment of its U.S. operations” will be in its offices in Houston and Canonsburg, Pa. Some employees will be transferred as well, according to Silvers. That brings Noble’s Colorado employment base down to 950, Silvers reported. The Greeley headquarters started with about 300 employees, but it is unclear how many are there today.
“We remain committed to our Colorado communities as we are in all our core operating areas,” Silvers reported in a statement. “Moving forward, we will continue to create a competitive advantage for Noble Energy through innovation and focus on the essential drivers of our success: safety and environmental stewardship, operational excellence, financial strength and by enhancing our portfolio for long term growth.”
Silvers stated that the Denver-Julesburg Basin, which encompasses all of Weld, “continues to be Noble Energy’s largest onshore operation, and now serves as the base for all of the company’s onshore operations.”
In February, Noble announced a 40 percent cut to its capital program, and plans to reduce its drilling program to four rigs in the DJ Basin, amid continued slumping commodity prices. They are among several drillers who have cut their spending in the area by double digits to wait out the pricing environment, in which crude prices fell by more than 60 percent since last summer.
Overall this year, Noble plans to invest 60 percent of its $2.9 billion global spending program. The company plans to split $1.8 billion evenly between its DJ Basin program and its Marcellus gas program in Pennsylvania, according to reports detailing its 2015 spending plans.
Noble recently completed an expansion of its Greeley headquarters at Colo. 257 and U.S. 34 Bypass. The company opened its Greeley headquarters in 2012, with a 65,500-square-foot, $15 million building on 23 acres at the HighPointe Business Park. It was originally scheduled to house 300 employees. It announced an expansion in 2013, which was completed last year.
The move bolstered the company’s footprint in Weld, which in 2005, had only 120 employees and a couple of vertical rigs in the Wattenberg Field. By its opening in 2012, the company was operating with seven horizontal and four vertical rigs.
This article was written by Sharon Dunn from Greeley Tribune, Colo. and was legally licensed through the NewsCred publisher network.