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Written by Citizen staff
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Sunday, 02 November 2008 |
Northern Development Initiative Trust has granted $206,250 to Energy Services BC to fund a business development initiative.
Many energy explorers and producers rely heavily on Alberta based companies to provide services and supplies to their B.C. operations and the goal is to change this situatio, said project manager Gordon Scott.
“The size of the industry is much larger in Alberta,” Gordon said. “Traditionally, the oil and gas industry, the producers and explorers, are based out of corporate offices in Calgary. There has been a natural progression to use people they know.”
The oil and gas industry has become a multi-billion-dollar industry in Northeast BC; however British Columbians have not seen the full benefits of that.
“Fifty-five to sixty per cent of every dollar spent on exploration and production in BC goes to out of province service providers,” Gordon said. “It’s been studied extensively and everyone is aware of the problem.”
However, he added, most energy companies do have corporate policies stating a preference for using local services whenever possible.
The objective is to identify B.C. service providers and the goods and services they provide; identify service gaps and potential opportunities in Northeast B.C., compile a database of energy explorers and producers currently working in BC, develop marketing and networking opportunities, and facilitate relationship building between energy companies and the BC service sector.
“It’s all to do with building relationships with the oil and gas companies. They need to understand the businesses in BC and what they can do,” Gordon said. “There will be a service provider database and there’ll be a producer and explorer database.”
In addition to making sure both sides are aware of who is working in the field, he said, they plan to help service providers understand the oil and gas companies’ procurement processes.
“It’s not about building walls, it’s about a fair bid process,” Gordon said.
If successful, the project stands to benefit B.C. based service companies and the oil and gas sector.
“There was one explorer and producer we spoke to who said it’s more expensive in B.C.,” Gordon said. “It’s actually more expensive for Alberta companies to bring services to B.C. Some charge a 15-per-cent surcharge for working in BC.”
It’s also important for oil and gas companies to understand there isn’t the same critical mass of services and competition in the B.C.’s Northeast as in many major Northern Alberta hubs. Oilfield operations in Northeast B.C. are often compared to operations throughout Alberta when we should be compared to a similar geographical area such as Northwest Alberta or Rainbow Lake.
Energy Services BC is currently focused on representing companies within the Northeast in this project, however, there is potential to expand to communities west of the Rockies, Gordon said. “The long term goal of Energy Services BC is to represent the energy industry in B.C. for the whole province,” he said.
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Last Updated ( Sunday, 02 November 2008 )
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The big decisions are made in Alberta, and the money is spent there as well and the small amount paid locally in comparison is how the industry works. That is why I laugh when people say the oil exploration in the PG region will be this huge improvement for the area. Just means more trucks purchased in Alberta, registered in Alberta, with Albertians driving them, in town. The hotels will like it.