Global Energy Centre?

[Spring2008]

With oil prices in free fall again, will the oil and gas head offices here,
many with massive balance sheets, finally start buying up more alternative energy assets? The workforce, specialization, infrastructure are all here, will Cgy step up and become a true global energy centre while diversifying, or continue to rest on the ups and downs of oil and gas, and in turn restrict its future growth potential?

[O-tacular]

Originally Posted by Spring2008

With oil prices in free fall again, will the oil and gas head offices here,
many with massive balance sheets, finally start buying up more alternative energy assets? The workforce, specialization, infrastructure are all here, will Cgy step up and become a true global energy centre while diversifying, or continue to rest on the ups and downs of oil and gas, and in turn restrict its future growth potential?

One can only hope but I doubt it. I know many of the O&G companies already own a lot of wind power farms. I think solar power should be more greatly exploited in our sunny province though.

[Spring2008]

Originally Posted by O-tacular

One can only hope but I doubt it. I know many of the O&G companies already own a lot of wind power farms. I think solar power should be more greatly exploited in our sunny province though.

That's a good start, but small on a global scale. I mean buy up alternative energy firms and assets globally while expanding head office operations here. I know the companies here already own a bunch of oil & gas assets throughout the Americas, but focusing mostly on o&g isn't a very good diversification strategy. Looks like this sector may likely stall while alternative energy production skyrockets over the next few decades.

[VIce]

Originally Posted by O-tacular

One can only hope but I doubt it. I know many of the O&G companies already own a lot of wind power farms. I think solar power should be more greatly exploited in our sunny province though.

That depends what you mean by 'a lot'. Suncor, Nexen, Enbridge, and a few others own a few token wind projects. However, standard utility/electricity generation companies like TransAlta and Enmax own the lions share of wind generation in Alberta.

[Wooster]

If you listen to Prentice - he talks along these lines. Diversification, but specifically diversification within the energy sector. This seems a must for our economy long term. We have a tremendous opportunity to leverage the assets we have in fossil fuels into becoming a centre for energy - whatever sources become predominant. We'll see - I think there's a place for our provincial and federal governments to provide some economic incentives for our companies to do so.

[geotag277]

Alternative energy investment will not sky-rocket as long as oil prices remain low, in fact the opposite will occur.

Calgary is already doing a decent job at diversifying. The atmosphere in the sector regarding this recent oil drop is not doomsday. It is let's re forecast our growth and it's business as usual.

I don't know why Calgary's lack of diversification is such a focal point in conversation when other major cities, such as Toronto with finance and Montreal with manufacturing seem to not need to diversify away from their major sectors ?

Almost every major city in the world has one sector that makes up the majority of it's economy and if that sector gets into trouble the city suffers. Calgary isn't unique in that regard. Could we diversify more? Of course, and we have been, extremely well, since the 80s. We just need to keep on that track , and I see no reason why we wouldn't.

I don't buy into this narrative that Calgary is some stupid idiotic region that places all it's eggs into a single basket economically and has been pursuing some grandly dumb short sighted strategy.

[O-tacular]

Originally Posted by geotag277

Alternative energy investment will not sky-rocket as long as oil prices remain low, in fact the opposite will occur.

Calgary is already doing a decent job at diversifying. The atmosphere in the sector regarding this recent oil drop is not doomsday. It is let's re forecast our growth and it's business as usual.

I don't know why Calgary's lack of diversification is such a focal point in conversation when other major cities, such as Toronto with finance and Montreal with manufacturing seem to not need to diversify away from their major sectors ?

Almost every major city in the world has one sector that makes up the majority of it's economy and if that sector gets into trouble the city suffers. Calgary isn't unique in that regard. Could we diversify more? Of course, and we have been, extremely well, since the 80s. We just need to keep on that track , and I see no reason why we wouldn't.

I don't buy into this narrative that Calgary is some stupid idiotic region that places all it's eggs into a single basket economically and has been pursuing some grandly dumb short sighted strategy.

I always hear that we've diversified so much, yet I have yet to see that to any significant degree. If you need a reason look no further than the NEP from the 80's. At a time where prices are sagging and the world is scrutinizing the environmental impacts of the oilsands, while looking to alternative energy sources, pursuing business as usual is short sighted.

[milomilo]

Originally Posted by geotag277

I don't know why Calgary's lack of diversification is such a focal point in conversation when other major cities, such as Toronto with finance and Montreal with manufacturing seem to not need to diversify away from their major sectors ?

I say let them talk all they want, hopefully it'll encourage us to make good decisions even if they do not.

[DarthMalgus]

Originally Posted by geotag277

Alternative energy investment will not sky-rocket as long as oil prices remain low, in fact the opposite will occur.

Calgary is already doing a decent job at diversifying. The atmosphere in the sector regarding this recent oil drop is not doomsday. It is let's re forecast our growth and it's business as usual.

I don't know why Calgary's lack of diversification is such a focal point in conversation when other major cities, such as Toronto with finance and Montreal with manufacturing seem to not need to diversify away from their major sectors ?

Almost every major city in the world has one sector that makes up the majority of it's economy and if that sector gets into trouble the city suffers. Calgary isn't unique in that regard. Could we diversify more? Of course, and we have been, extremely well, since the 80s. We just need to keep on that track , and I see no reason why we wouldn't.

I don't buy into this narrative that Calgary is some stupid idiotic region that places all it's eggs into a single basket economically and has been pursuing some grandly dumb short sighted strategy.

Good points. I think a lot of people talk about diversification without really acknowledging that it's not easy to make diversification happen. There are certain industries that would never set up in Calgary due to our relative isolation from other large cities. We have played to certain strengths that have allowed sectors such as transportation/distribution, finance and tourism to thrive. Other areas, such as film development, are slower to grow in part because other provinces have engaged in a sort of "race to the bottom" with generous tax incentives to entice those industries. I highly doubt that, for example, auto manufacturing could ever thrive here because we are simply too far away from the major components producers. And growth of new economic drivers such as manufacturing is challenging in Alberta's high-wage environment. In spite of these challenges, our city is arguably the primary business hub of Western Canada - which is still a small market of perhaps 11 million people, equivalent to Illinois, Pennsylvania or Ohio. People keep saying we need to diversify - my question to them is "how do you propose we do that?"

[J-D]

Originally Posted by VIce

That depends what you mean by 'a lot'. Suncor, Nexen, Enbridge, and a few others own a few token wind projects. However, standard utility/electricity generation companies like TransAlta and Enmax own the lions share of wind generation in Alberta.

TransCanada has some Nuclear and Hydro/Wind/Solar exposure as well.