The heart of Dakota Oil is feeling the shock after the merger of Chevron and Hess Corp

North Dakota’s oil heartland is feeling the aftershocks of Chevron’s $53 billion merger with Hess, with the major cutting more than 100 jobs in Minot and Tioga. Chevron told Job Service North Dakota that 111 jobs — 63 in Minot and 48 in Tioga — will be eliminated starting Sept. 26, a larger number than initially expected.

Layoffs, part of Chevron Post-merger consolidationcomes just months after the company completed the deal in July. “We understand the impact this news may have on employees, their families and the communities in which we operate,” Chevron said, adding that severance and employment support will be provided.

Ron Ness, president of the North Dakota Petroleum Council, described the move as part of a broader industry trend. “The merger is part of efforts to reduce barrel costs,” he said, noting that US oil producers are tightening operations as crude oil prices hover around $65 a barrel — 16% below last year’s average.

North Dakota’s oil sector remains resilient. The state still boasts more than 1,000 job opportunities in the oil and gas field, and its unemployment rate is close to 2.5%. However, drilling activity has declined: 32 rigs are currently active, down from 39 a year ago, according to the Department of Mineral Resources.

Chevron emphasizes that the Bakken region remains an integral part of its long-term growth strategy. “The Bakken fits well into our portfolio,” Chevron Vice President Kim McHugh said during a North Dakota Petroleum Council meeting last month. The company’s combined shale footprint now spans more than 2.5 million net acres across the Bakken, Permian, and DJ Basins, strengthening its position as one of the largest shale operators in the United States.

Despite the short-term layoffs, Chevron’s consolidation of Hess’ North Dakota assets is expected to result in greater efficiency and scale. The Bakken region will continue to play a key role in Chevron’s North American strategy, anchoring its efforts to meet global energy demand through streamlined, high-return shale oil operations.

Written by Charles Kennedy for Oilprice.com

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