Canada’s oil and gas industry has a wealth of expertise that could be used by exploration and production companies to enter or diversify into international markets, according to a new report commissioned by the Canadian Global Exploration Forum (CGEF).
The CGEF report, entitled Global Opportunities: Taking Canadian Exploration and Production Expertise to International Markets, outlines the Canadian industry’s competitive advantages in finding and developing oil and gas resources in petroleum producing basins around the world, and then highlights potential opportunities for investment.
Canadian producers already have a major presence internationally, with nearly 50 public companies producing an average 950,000 boe/d, according to data from Evaluate Energy. The Global Opportunities report encourages other companies to take a closer look at international markets, with the goal leveraging the wealth of talent concentrated in Calgary to build an even greater international presence.
With 60,000 engineers, 4,000 geologists and 1,300 geophysicists, Calgary’s downtown core has one of the highest populations of exploration and development professionals in the world. Thousands of other professionals ensure the industry has world-class health, safety and environmental (HSE) standards. Still more professionals work bringing benefits to local communities where field development happens.
“The depth and breadth of expertise available in Calgary and across Canada is one of major revelations in the report,” says Darrell Stonehouse, JWN Energy Intelligence editor. JWN collaborated with CGEF in producing the report. “All this expertise is readily transferrable to explore for and develop resources globally. This is a tremendous talent pool to tap.”
The report identifies four areas where Canadians have a competitive advantage to leverage this expertise: conventional oil and gas, unconventional resources, heavy oil, and enhanced oil recovery.
“Undrilled prospects and smaller conventional oil and gas fields that had non-commercial volumes during early rounds of exploration and development carry major potential,” says CGEF director Duncan Mackay. “These opportunities are off the radar for large-cap independents and IOCs because of the mismatch in scale. These prospects and fields are perfectly suited to smaller and more nimble junior and mid-cap companies that have experience exploring with 3D seismic and can quickly execute short life-cycle projects.”
The Global Opportunities report features three case studies of companies that have had success internationally, with a focus on unconventional resources, conventional and heavy oil, and natural gas. The case studies demonstrate how these companies have used Canadian exploration and development expertise to develop international assets, while having a positive social, environmental, and economic impact in their areas of operation.
Parex Resources outlines its Colombian conventional and heavy oil growth story, with a focus on the importance of understanding the social context of operating in Colombia to its success.
Valeura Energy tells how it is leveraging Canadian experience in the Deep Basin to develop and emerging unconventional gas play in Turkey, with a special focus on understanding risk.
Canacol Energy’s story is about how it is building a major gas play in Colombia in response to growing domestic demand, leveraging geoscience expertise developed in Western Canada.
Additional reports in the coming year will provide deeper dives into where in the world you might find each particular type of opportunity.
CGEF, in collaboration with JWN, will be holding a report launch event on January 16th where attendees can gain insights and network with successful international Canadian operators.