Where in the World are Canadian Oil and Gas Companies? 2015

Abstract

Studying the year-over-year global presence of Canadian oil and gas companies in 218 countries provides a comprehensive picture of industry trends and patterns of exploration, production and service abroad. The Where in the World (WIW) project began tracking these trends in 2011. This paper examines the 2015 data, which reveal a variety of fluctuations in the level of Canadian companies’ activities overseas between 2013 and 2015. While 161 Canadian oil and gas companies were active in 96 countries in 2015, the number of exploration and production companies operating worldwide dropped that year. However, also in 2015, Canadian production of oil, natural gas liquids (NGL) and natural gas actually grew in six out of seven global regions analyzed in this report. As well, the number of Canadian oil and gas service companies operating abroad remained stable from 2013 to 2015, even though the number of active service companies dropped in four out of seven global regions. A total of 108 Canadian companies specializing in exploration and production (E&P) were busy in 77 countries in 2015, a decrease of more than seven in two years. They produced a cumulative 1,126,648 barrels of oil equivalent per day (boe/d), which accounted for 0.79 per cent of the world’s production of oil, NGL and natural gas – a substantial figure despite a 37 per cent drop in the number of such companies since 2013. The majority of both Canadian exploration and service took place in North America, reinforcing the fact that the United States remains Canada’s largest trading partner, despite a 33 per cent decrease in Canadian exploration and production activity there. However, Europe moved up from being fifth for Canadian E&P in 2013 to third just two years later. 2015 also marked another milestone in the WIW project – it recorded the fewest number of active Canadian companies abroad since the project began in 2011. Between 2013 and 2015, 64 Canadian E&P companies ceased operating overseas. The dramatic drop globally in oil and gas prices in 2014 doubtless played a major role in this decline. Acquisitions, such as Repsol S.A.’s purchase of Talisman Energy, which removed it from the analysis after the first quarter of 2015, accounted for some of the decline. So did cessation of operations in the oil and gas industry for some companies, including those that switched to new areas of operation altogether, and relocation out of Canada for others. Shutdowns due, for example, to bankruptcy also factored into the reasons for the decline abroad. Also in 2015, 53 Canadian oil and gas service companies spread their expertise and technology among 54 foreign countries. And while their activity increased in the Americas, particularly with 22 per cent growth in the United States, it declined in the Asia and Oceania region. Overall, 2015 was notable for a marked decrease in the international presence of Canadian companies compared with 2011, the first year of the WIW project, when 255 companies were active in 106 countries.