Why Worry About Tomorrow? Steering Canada's Oil Industry Toward Greater Overseas Involvement

Abstract

Abstract The coming decline in drilling and development activity in the Western Canadian petroleum industry will be a turning point for both old and new firms. As with the most recent series of downturns, it will also take its toll on individuals. However, unlike before, both firms and individuals have appropriate recent history, especially regarding effects on individual careers to reflect upon. However, to add to the concern, a changing world order will give rise to additional ssues and uncertainties to be dealt with. This article seeks to provide some early advice regarding ways that prudent executives can position their firms internationally for reduced detrimental effect and improved beneficial effect. The issue is of fundamental importance to the country, its provinces, cities. towns, citizens, employers, employees, suppliers and manufacturers, both inside and outside of the petroleum industry. It is important to the less well-off as well as the affluent. to the socially responsible as well as to the more self-interested. Just as the current Alberta government may be blazing a new trail for governments that, if successful, may be followed in turn by many other governments, the petroleum industry can also establish a strong beginning for internationalism on a scale not seen before in Canada. If successful, other Canadian industries may follow. The result may well help to reshape the traditional inward view of Canadians toward a more global outlook. The possibility of developing a much more prosperous trading nation with a broad industrial and technological base of world standard is there. Leading Canadian firms must be able to compete with international leaders both to maintain and improve market share at home, but also to establish market share abroad. The potential for success by Canadian firms in the international milieu has been recognized and turned into success by a number of Canadian firms in recent years. At the same time, other Canadian firms who might have enjoyed similar success have remained non-participants and nonbeneficiaries in the international trade scene. The time is ripe for all potential international players to face the challenge. Introduction The Canadian oil and gas sector is no longer a juvenile, but is well into middle age. The maturation of the industry is bringing changes that can be at least partially predicted based on history in other regions. The story of oil industry growth and eventual decline in particular places such as Pennsylvania, Ontario. Oklahoma, California, Ohio, Indiana, Illinois, Kansas, Wyoming, pans of Texas and other areas is well known. Many firms which began with initial investments in one or more of those areas eventually expanded their horizons, to places like Mexico, Western Canada and Venezuela. The firms today are successfully and heavily involved globally. The communities which fostered these firms continue to benefit from far flung activities, even though field activity in the immediate home area has long since diminished. At the same time as the Canadian petroleum industry is reaching or has passed peak development prior to inevitable decline, most of the major world trading patterns are changing dramatically.