Hon. Jim Prentice, Vice Chairman of CIBC, tells London energy conference that Canada needs to send the message that it is open for business
Oct. 1, 2013
(TSX: CM) (NYSE: CM) -
energy sector urgently needs to reorient its focus from being a continental energy supplier to become a global player, says the Honorable Jim Prentice, Senior Executive Vice-President and Vice Chairman of CIBC.
Mr. Prentice told an audience at the Oil and Money 2013 Conference in
faces the imperative to change its thinking, adjust its focus and begin to match up its energy resources with the needs of the growth markets of the
. The industry must do the hard, urgent work of reorienting itself to serve the demand of tomorrow - and it must do so in a climate in which other countries are equally determined to supply these markets with oil and gas."
To succeed in this task, he said
- become more international in its ambitions, by securing trading relationships with new partners, especially in the Asia-Pacific;
- invest in and develop the infrastructure required to efficiently export oil and gas both on the continent and around the world; and
- ensure an attractive regime for foreign investment in the energy industry, including from State-Owned Enterprises.
"When it comes to energy,
is not being sufficiently attentive to its future interests," says Mr. Prentice. "Despite what some may think, it's not as simple as getting oil to the Pacific coast and onto a tanker. It's a fiercely competitive world out there. Relationships need to be developed. Negotiations need to be pursued and concluded. An energy trade agenda needs to be advanced."
To deliver on these new markets he says we need to move quickly on building the pipelines, ports and terminals required to get our energy to these growing markets. "Simply put,
lacks the pipeline infrastructure required to handle the overall projected growth in production beyond 2020. Pipelines are required in virtually every direction and, at present, the only alternative available is to transport more oil using rail cars," says Mr. Prentice.
He notes that few in
saw this infrastructure challenge coming even five years ago. We were secure in knowing we had a steady, stable client to the south that would buy all that we could produce. But with U.S. energy independence nearing reality,
needs to make tangible progress toward addressing its infrastructure problem.
To continue to grow the industry and build these facilities will require continued foreign investment adds Mr. Prentice. "Because, simply stated, our ambitions and resources exceed our supply of domestic capital."