PwC’s 6th Annual Energy Visions report looks at Canada’s oil and gas industry and the current reality of energy abundance
PwC Releases 6th Annual Energy Visions Report
CALGARY, May 28, 2015 — Today at its 6th annual Energy Visions Business Forum in Calgary, Alberta, PwC released Compete, Survive or Prosper? The report combines insights from interviews with numerous Canadian oil and gas industry experts to examine Canada’s prospects to endure the current industry realities. Experts reflected on the global situation, market access, economics, costs and productivity, as well as technology and innovation.
“What we found was that the industry is learning how to navigate through a new reality,” said Reynold Tetzlaff, National Energy Leader at PwC Canada. “Given the duration of this downturn, the Canadian industry as a whole needs to manage costs, address global access and find ways to attract global investment.”
In this new environment, industry experts expect that prices will remain volatile for the next couple of years. Fortunately, the long lead times of Alberta heavy oil projects will contribute to overall production for the next few years, despite low prices. However, a number of issues continue to constrain the industry, including restricted market access, higher production costs, availability of labour and global competition.
Tetzlaff noted, “Our industry leaders recognize the new realities and are determined to move towards viable solutions. Ultimately, these challenges may lead to changes that make our industry stronger. Key executives understand the need to be more efficient and effective – reduce costs and introduce technology – these are the keys to compete, survive and prosper.”
Other reflections that emerged from the interviews included:
- Cost structure is a primary area for ensuring continued survival
- Government plays a role by providing a cohesive energy strategy, building public awareness about the importance of resource development, providing the right fiscal, tax and regulatory regimes
- One of Canada’s main advantages is its excellence in the use of technology
- The Canadian energy industry has the fundamentals to emerge strongly from the current downturn, but changes are needed
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