Resource World Magazine

D E C E M B E R / J A N U A R Y 2 0 1 8 www.resourceworld.com 81 around the world – Asia, Europe, Mexico and even Canada, said IPAA's Lawrence. "The US would benefit in myriad areas from this develop- ment," Lawrence said of the repeal, "trade balance, industry renaissance in other industries relying on oil and gas feedstock, reduced vulnerability to imports, and diplomatic potential in the ability to help our friends and trading partners diversify their own energy supply." Lawrence said the industry has evolved to a point where US shale can compete globally, where demand is still growing for almost all petroleum and natural gas products. "Prices may be volatile and political rhetoric may be more hos- tile to fossil fuels, but nonetheless, demand for these products continues to grow and the US will be in a very good position to fuel growth both at home and around the world as a competi- tive producer with sizable reserves and unprecedented market access." But governments and regulators have a role to play and there is concern with it on both sides of the Canada-US border. The IPAA's Fuller says that for years federal regulators have devised con- straints that inhibit oil and natural gas development and, while President Donald Trump's administration initiated policy actions to loosen such restrictions, these are repeatedly challenged in fed- eral courts. CAPP acknowledges the need to continue working collab- oratively with all levels of government but says in addition to the challenges facing the oil and gas sector, it's also faced with an "uncertain regulatory environment that results in decreased investor confidence," said Zelinsky, citing such moves as the tanker moratorium, restrictions on northern development and changes to the way the NEB operates. "These issues need to be addressed so Canada can benefit from its abundant resources and prosper for generations to come," she said. PSAC has similar concerns. Salkeld said Canada's regulatory system is coming across as "negative." "Government is adding uncertainty, costs and disruptive impres- sions that are causing projects to be shut down or delayed. In the future, starting now, governments need to back away from med- dling in industry." Instead, all levels of government should be seen as industry "champions." "The world knows Canada is extremely good at producing oil and gas responsibly, and this industry will succeed and continue well beyond any one particular government," he said. Next year will offer continued challenges but there's more upside in store compared to 2017 as inventories decline further and demand continues at an estimated rate above 1.5 mmbpd, said Lawrence, especially as OPEC maintains reductions and volatility continues in the Middle East, making venues such as Alberta a better bet. Lawrence said the US industry will increasingly have a larger role to play in fueling world growth, whether it's in regard to transportation, industrialization or electrification. "Over the past year America has realized and actualized some of the newfound strengths and relative competitiveness of this industry and we are just in the early innings. The continued growth in jobs, reliant [dependence] industry, royalties and revenues will add power to our country in many ways, from local economies to trade balance and reduced reliance on imports from abroad." The oil and gas sector can't be written off, said Salkeld. But service companies should expect continued pressure to keep costs down, to innovate, and to be active and be seen as part of the energy future solution. "We are just coming into our own, still maturing as a signifi- cant industry…The world will need oil and gas for generations to come." n ERRATA In Resource World October November 2017 on page 5, middle column, the phrase "the DOW is down 10% this year" is incorrect. It should have read: "the DOW is up 17% this year and may be getting toppy."

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