North Dakota Oil Heartland Feels Aftershock of Chevron, Hess Corp. Merger

North Dakota’s oil heartland is feeling the aftershocks of Chevron’s $53-billion merger with Hess Corp., as the supermajor trims more than 100 jobs across Minot and Tioga. Chevron told Job Service North Dakota that 111 positions—63 in Minot and 48 in Tioga—will be cut beginning September 26, a larger number than initially expected.

The layoffs, part of Chevron’s post-merger consolidation, come 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 where we operate,” Chevron said, adding that severance and outplacement support will be provided.

Ron Ness, president of the North Dakota Petroleum Council, called the move part of a broader industry trend. “Consolidation is part of the effort to lower per-barrel costs,” he said, noting that U.S. oil producers are tightening operations as crude prices hover around $65 a barrel—16% below last year’s average.

North Dakota’s oil sector remains resilient. The state still boasts over 1,000 oil and gas job openings, and its unemployment rate sits near 2.5%. Yet drilling activity has softened: 32 rigs are currently active, down from 39 a year ago, according to the Department of Mineral Resources.

Chevron maintains that the Bakken remains integral to its long-term growth strategy. “The Bakken fits nicely into our portfolio,” said Chevron Vice President Kim McHugh during last month’s North Dakota Petroleum Council meeting. The company’s combined shale footprint now spans over 2.5 million net acres across the Bakken, Permian, and DJ basins—cementing its position as one of the largest U.S. shale operators.

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

By Charles Kennedy for Oilprice.com

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