​Canada’s oil and gas should carry the same premium as its diamonds: This week’s best quotes

Here are some of the most meaningful quotes from news coverage in the Daily Oil Bulletin for the week ending October 20, 2017.

“Blood-free diamonds sounded weird when they first came out, but the polar bear is becoming a highly-valued symbol around the world…Differentiate our product. Put a maple leaf on every molecule, so to speak.

“Conflict-free oil. Green gas. Create a new product and run like the diamond industry until every Beyonce wants a polar bear on her engagement ring — same thing: you want green gas in your house and you want conflict-free oil in your car.”

— Josh Carter, past-president of the Petroleum Joint Venture Association, speaking at a luncheon co-hosted by PJVA.

“[Cenovus] took on a significant amount of debt and they indicated that they would be selling assets into what arguably is a weak market. Investors saw a company that went from being underleveraged with one of the best balance sheets in the business to overleveraged with one of the worst balance sheets in the business, subject to the vagaries of the market to sell assets.

“That uncertainty just doesn’t sell with investors, and they responded by selling down the stock.”

— TD Securities senior energy advisor Roger Serin, commenting on the market’s initial negative reaction to Cenovus Energy’s recent $17.7 billion buy-out of Cenovus Energy from their in situ oilsands joint venture.

“In 2017, and particularly in 2018, your average company is going to grow production by nine per cent per share in Canada, whereas the U.S. will be closer to 18 per cent. This is partially due to the assets, but it is also partially due to the capital that is chasing some of those plays, and the flexibility for that capital to go and find a home where there are the best returns and least risky returns.

“I’m certainly not advocating more capital to be spent or more leverage to be spent [in Canada], but I think we have the assets to do it. Maybe, perhaps, the market size just isn’t where it needs to be.”

— Juan Jarrah, equity researcher with TD Securities, commenting on investment activity levels in Canadian oil and gas versus operations in the United States.

“We definitely are disappointed, [but] the work of CRIN will continue. It’s extremely important, we believe, to the future of Canada to have solutions for lower-cost, lower-carbon production, because fossil fuels are going to be around for a while. To have those technologies developed in Canada ensures that we play a part in the future [of the industry] — and that Canada has a preferred lower-carbon hydrocarbon production capability.”

— Joy Romero, vice-president of technology development at Canadian Natural Resources, discussing the federal government passing over the recently-established Clean Resource Innovation Network (CRIN) in its bid for Innovation Superclusters Initiative funding.