New head of CAPP sees U.S. markets as a key priority

Tuesday, 21 October 2008 18:14

GAIL JANSEN The Pipeline David Collyer is hoping to improve the oil and gas industry’s image and reputation. Speaking just one week and one day after taking office as the head of CAPP, the organization that represents 130 oil and gas producing companies and 150 associate members who service that production, Collyer says, “We need to work on improving the industry’s reputation, and to educate the public on the significant contributions we make as an industry to this country’s economy.” While Collyer admits that the environmental issues that plague the industry are but one of the reasons a negative image surrounds oil and gas producers, he’s confident that the companies his organization represents, who are responsible for more that 95% of Canada’s natural gas and crude oil production, are working as environmental stewards and that they are doing it in a “socially and environmentally responsible way.” Not only an advocate for the companies he represents in a public relations forum as President of CAPP, Collyer will be using the experience he has gained working in the industry for the past 30 years, most recently as the President and Country Chair of Shell Canada, to continue the work began by Pierre Alvarez, CAPP’s former President, who was with the organization for 9 years. Work that includes addressing such industry issues as the critical need for skilled labour, the need to reduce the production of green house gas emissions and the need to develop the oilsands in Alberta in a responsible way. “We need to improve how we satisfy government regulations,” says Collyer, “and we are more than capable of making those improvements.” To aid in those improvements, Collyer says CAPP needs to employ all of the tools at its disposal, which now includes a new website that invites members of the general public, environmental agencies, and producers and developers to begin the important and necessary conversations that need to take place in order to ensure the proper development of this resource. Found on www.canadasoilsands.ca the site, says Collyer, is just one tool they are using to get a dialogue started and to engage Canadians on the future of oilsands development. For Collyer himself, the key priority he sees facing producers in the near future is the need we have to keep open our U.S. Markets.   “U.S. Markets are important to Canadian producers,” says Collyer.  “We need to ensure that U.S. Markets remain open and accessible, through both the policy perspective and through pipeline infrastructure.” Working with the NEB, a working relationship Collyer established years ago as part of an Executive Exchange program, Collyer says he’s optimistic that access to the U.S. Market will continue to have both policy and pipeline growth in the future. As for the challenges CAPP faces in Alberta with the implementation of the new Royalty Regime set for January 2009, Collyer feels the worst of its effects are behind us. “I would be surprised if any impact from the Royalty Regime hasn’t already been seen,” says Collyer.  “The new Royalty rules are reasonably well understood, and anyone looking forward will have already integrated that cost structure into their growth decisions.” “We’ve enjoyed a very good run in the industry over the last few years,” continues Collyer. “And I think the industry as a whole is relatively healthy. Any slow down or dampening of activity levels as a result of the new Royalty Regime should not be considered negative.” “There are some pressures to be sure, but on the whole I'm assured that the industry is still quite healthy.” While still a newcomer to the position, Collyer is confident that the majority of the issues facing CAPP members are issues he is already familiar with and says that so far the transition between Alvarez and himself has been a relatively easy one. “On the whole, I’ve found it to be a smooth transition thus far,” says Collyer, but jokingly adds, “Ask me again in six months.”