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CAOEC President & CEO speaks at the State of the Industry November 29, 2024 – Telus Convention Centre
“Hope is Making a Comeback in the Oil Patch” – CAOEC President & CEO Mark Scholz
by Maureen McCall
Every fall, the Canadian Association of Energy Contractors (CAOEC) brings together Association members, industry leaders, and subject matter experts to discuss the current state of the industry, where it’s headed, and what can be done to ensure continued progress. This year, CAOEC President & CEO Mark Scholz did not disappoint, opening the 2024 State of the Industry luncheon event on Friday to a packed room of industry attendees at the Telus Convention Centre. The number of attendees to the event has steadily grown from approximately 300 or so in 2022 to 500 in 2023 and this year an estimated 650 according to one of the organizers. Scholz spoke about optimism, unfulfilled potential and a path forward for Canada.
“Hope is making a comeback in the oil patch, ” Scholz said. “Having said this, we must face the reality that serious headwinds prevail. We are simply not reaching our full potential as an industry or country, and when our economy does not reach its full potential, families and workers cannot reach theirs. We can do better, and we must do better.”
Scholz acknowledged pressing issues of affordability, a stalling economy in some areas, and concerns that the current government in Ottawa refuses to accept that the industry is part of the solution to invigorating the economy and restoring affordability.
However, since the 2024 report forecasts modest growth with a total number of wells expected to be drilled at 6,604, up from 6,156 in 2024 and 5,389 in 2023, Scholz sees good reason for “cautious optimism”.
“We anticipate modest growth fueled by key developments that will revitalize our industry and invigorate the communities where we operate,” Scholz said. “We are excited about the completion of projects like the Trans Mountain Expansion and long anticipated LNG Canada facility, which will increase oil field service activity. Now this just isn’t about adding takeaway capacity. It’s about creating stronger prices for Oil and Natural Gas Producers and ensuring that working Canadians see bigger paychecks. These projects are not just good for the industry, they are essential for the health of our economy.”
The report forecasts totally direct and indirect jobs to be at their highest level in a decade, expecting over 40,000 Canadians will be employed in the drilling and completion sector.
Scholz further called on measures to unleash the power of energy entrepreneurs and innovators, saying that when they succeed, communities flourish, including rural, remote and indigenous regions of the country – areas he says are often forgotten by policymakers and forecasters. He also spoke about the related jobs created by the industry across Canada.
“We don’t talk about nearly enough is the thousands of jobs producing steel, pipes and trucks in Ontario and Quebec, or providing high tech solutions to industry challenges, solutions coming out of universities from UBC to Dalhousie and transportation opportunities everywhere in between that have created many 1000s more.”
Looking beyond the border, Scholz acknowledged that President-elect Trump’s focus on energy affordability and security will no doubt profoundly impact the Canadian economy. He sees that it will take federal and provincial governments, working in collaboration with the industry and allies in the U.S. Congress as well as the new administration to communicate the strategic importance of Canadian energy and affordability. He acknowledged that the CAOEC along with the rest of the energy industry applauds Alberta Premier Danielle Smith’s leadership to protect the industry from Federal overreach.
“As a nation, we cannot be complacent or assume that opportunities will come to us without effort,” Scholz said. “We must hit the reset button on all federal energy policies, refocusing them to prioritize competitiveness and bringing back investment into Canada. We simply cannot afford debilitating policies which are having a chilling effect on our investment potential.”
Scholz called for a new national vision, prioritizing Canadian energy entrepreneurs and Canadian energy workers saying:
“We know the world is changing and we must adapt. Canada has what the world needs. We have the resources, the people, the technology and the equipment. All we need now is for the federal government to recognize that and let us get to work.”
Maureen McCall is an energy professional who writes on issues affecting the energy industry.
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