Internationalizing Canadian energy companies & organizations
CEIC is a direct representation centre and in-market industry support service platform for Canadian energy-related companies
Vision / Mission / Principal Objectives
Become Canada’s lead direct representation and in-market support base for Canadian-registered energy-related companies that supply technology or innovative processes and services and innovation to international markets.
Advance Canadian oil energy-related technology, processes and services in strategic international energy markets.
Identify international energy-related opportunities for member companies and Canadian energy-related organizations, and provide dedicated services and support to pursue and capitalize on global opportunities. Leverage domestic ‘connectively’ to assist with domestic and international messaging, as well as lead investment attraction project vetting, development and execution.
Trade & Investment Considerations
“CEIC’s direct representation centre and in-market industry support service ‘platform’ uniquely takes into consideration the highly specialized nature of innovative niche technologies, processes and services of Canadian energy-related companies and organizations.”
Dedicated office accommodations with trusted in-office expert business advisory services, plus research and event development/delivery support will soft land (office; support; local knowledge, onsite expert; …) companies, and assist in making them look more international, qualified, capable, and committed to a specific strategic market, at an affordable economies-of-scale price point. This will be complemented with boardroom facilities, and a regional hot desk facility in major oil/gas field locations. CEIC will also be offering a virtual option, which is timely given current circumstances.
Increased technical matchmaking, marketing, networking, connectivity, and exposure with clients, stakeholders, and government will facilitate timely, accurate and relevant competitive and market intelligence. When combined with on-the-ground market knowledge, this will allow companies to truly enter in-market deal-flow.
CEIC allows for the potential building or packaging of integrated service offerings, premised on companies’ ability to bid more with more and therefore win more, and/or ‘grow’ the contract with other ‘add-on’ service offerings to increase Canadian international market share.
While CEIC is an export model loosely premised on a highly successful proven international trade organization, CEIC also exemplifies, “Expanding services and expertise for attracting and expanding international and domestic investment into Alberta companies and major projects.” 2.2. Economic Development, Trade, and Tourism Business Plan 2019-23
Showcasing Canadian energy-related competitive advantage and providing pathfinding services to energy excellence and best practices is central to CEIC.
The magnitude of this endeavor requires working with keystone Canadian business and technical associations, organizations, and academic institutions, and CEIC is positioned to lead and deliver.
Due to this, CEIC is strategically positioned to assist energy-related industry associations and organizations to move forward with a more collective voice on key industry challenges, including but limited to Canadian energy sector domestic and international messaging, as well as lead investment project vetting, development & execution.
“The Canadian Energy Industries Council (CEIC) represents the winning industry led solution for Canadian Energy-related companies to increase/secure international market share. CEIC is loosely yet strategically based on a proven and highly successful model that the UK has used for decades, and a Canadian version is long overdue here in Canada, and is especially needed now in light of Canada’s current energy industry climate.”
Wes Scott, President & CEO, EventWork Corporation
“Canadian energy services and related companies should seriously consider securing international opportunities to survive, maintain, and/or grow – it really is a viable option at this point in time especially! It is a requirement and priority for the CEIC as a private sector led solution to soft land Canadian energy related companies in strategic international markets and provide them the expert in-market support required to truly enter local deal flow.”
Mark Salkeld, Past President & CEO, Petroleum Services Association of Canada (PSAC)
“CEIC is important because it creates a strong platform for industry to enter new markets. The CEIC is based on years of research conducted through public-private projects, and mirrors the efforts of other energy producing nations that have used this approach to great success. The CEIC comes at critical juncture for Canada’s energy supply chain. This is a Public-Private-Partnership (PPP) that can be replicated in multiple strategic markets for the benefit of Canada’s energy-related Supply Chain. Canada’s energy expertise belongs on the world stage, and the CEIC partnership would develop a clear path to support companies seeking new growth opportunities.”
Tom McCaffery, President & CEO, Supply Chain Canada
Energy-related Subsector Focus
- Exploration & Production
- Midstream/pipeline & Power Generation
- Oil & Gas Service, Supply, Technology, & Manufacturing
- Environment, Clean Tech & Digital Oilfield
- Academic-related Organizations
- Technical & Business Industry Associations
Concept and Research
- CEIC is the result of comprehensive industry sector scenario planning and analysis pertaining to what it would take for Canada’s energy-related subsectors to offer a higher / expanded level of industry-driven export service.
- CEIC considered multiple industry support models and scenarios and is modeled off a highly successful proven model.
- CEIC is a private sector models that is complementary to public sector trade and export facilitation organizations such as Government of Alberta, Global Affairs Canada, Export Development Canada, and regional economic development entities, among others.
CEIC focuses on the needed aftercare and/or the execution of strategic business development planning and project management.
Market Opportunites & Considerations
Canada's Oil Industry
Based on the 5-year pre-downturn average of 10,300 wells drilled per year, from April 2020 onwards, we’re talking about an astounding 90% drilling rate decline in Canada.
Canada’s Latest Drilling Estimates, and What the Numbers Mean
- Following a 24% decrease in the number of wells drilled in Canada in 2019, PSAC’s earlier Canadian Drilling Activity Forecast Update estimated that 4,900 wells would be drilled in Canada in 2020.
- Regarding present circumstances, almost overnight the number of wells that will be drilled in Canada in 2020 is now 2400.
- Considering the majority of these wells will be completed in Q1 (as capital spending has already taken place on these wells), there will be hundreds, not thousands, of wells drilled in Canada during Q2, Q3, and Q4 of 2020.
- Market diversification is no longer an option – based on significantly low activity rates in Canada, going international is now a requirement for Canadian energy-related companies to sustain or grow.
Other Factors / Considerations
In addition to an astounding decrease in drilling rates, other factors to consider include: record reductions in capital spending, jobs/headcount, sheer number of oil & gas service & technology and exploration and production companies, not to mention customer requests for price discounts. These represent additional reasons Canadian energy-related need to diversify into international markets.
Observations of Canada’s Energy Industry
- Entrepreneurial & innovative;
- One of the most competitive in the world;
- Unique atmosphere/ecosystem of oil & gas technology development and commercialization;
- Clear competitive/comparative advantages;
- Unmatched experience gained in the Western Canadian Sedimentary Basin (WCSB);
- With the right strategic approach, Canadian companies can become significantly more sought after ;
- A lot could be leveraged to maximize international market share.
Canadian International Market Share
Despite Canada’s unique energy industry and clear competitive advantages, Canadian companies are not securing international market share commensurate with their experience, capabilities & capacities.
There are many reasons why Canadian Energy-related Companies are not securing international market share commensurate with their experience, capabilities & capacities, a few include:
- Canadian energy-related companies are highly specialized and generally smaller in size. Despite participating in a plethora of export-focused trade missions, and hiring local agents/representatives in the process, they are still not securing contracts commensurate with their product offerings. This can come as a result of several factors, including the fact agents/representatives do not fully understand the specialized product offering and/or how to apply it to their local market.
Furthermore, Canadian companies appear to often incorrectly view agents/representatives as salespersons, which they are not. Canadian companies are often criticized for being too dependent on their agents/representatives, who are not authorities on their specialized/niche products and services.
- This in turn strains the relationship, and in some cases has not only led to the Canadian company not making sales but also exiting a select country and moving to a different international jurisdiction, only to repeat the process.
- These factors, and several others, often result in Canadian energy-related companies not truly entering in-market deal flow.
- Canadian Energy Companies Require:
In order to further increase Canada’s international oil and gas market share, Canadian energy-related companies, especially the smaller ones, require timely, accurate and relevant competitive and market intelligence, need to build the internal management capacity required to enable them to ‘capitalize’ on international business development opportunities, need to get ‘targeted’ in terms of what international markets they pursue, and need the skills to develop effective, international business development strategies/plans. Furthermore, low cost international ‘direct representation’ of their specialized/niche technologies and processes needs to be considered.
Staged Process for Startup
CEIC is the result of multiple projects, industry consultations, ongoing interest from companies and organizations, data and information collected, international energy-related opportunities. Furthermore, comprehensive industry sector scenario planning and analysis was conducted. Furthermore, a highly successful trade/export model exists – CEIC is loosely based on ….
CEIC has moved from a concept to an organization, putting its research into practice. Making good use of the current downturn, CEIC’s:
- Business Plan is complete;
- International Framework Prototype for Market #1 is in place; and
Onboarding; Market #1 launch
LAUNCH EXAMPLE: USA & Mexico
Based on significant market research to date, on an affordable ‘shared cost’ basis, and with potential partners, CEIC is considering starting to build-out its direct representation centres and in-market industry support service platforms to soft land Canadian energy-related companies and organizations in Houston and Mexico City, with potential future hot desk facilities in Villahermosa and/or Denver. Note: As per current situation, Mexico City could also start with a smaller hot desk facility.
CEIC would then aggressively increase ‘connectivity’ to facilitate competitive and market intelligence, which, when combined with experienced boots-on-the-ground, would allow entities to truly enter in-market deal-flow, bid contracts, and expand Canada’s international market-share.
“Canadian Global Exploration Forum (CGEF) is pleased to be affiliated with CEIC. Together we are able to showcase Canadian energy and energy-related organizations by working with leaders, academics and innovators around the world. We look forward to future collaborations to speak with a collective voice on key industry challenges and to further promote the benefits and technological advantages of our Canadian energy expertise, products and services.”
Kevin Broder, President, Canadian Global Exploration Forum (CGEF)
“In the coming year as the world gets back to the “new normal” Canadian Oil and Gas Service sector companies may find opportunities in diversifying globally. Accessing international energy-related opportunities through a dedicated service and support structure would alleviate the initial risk a company would experience in trying to do business in another country. In-country experience and location would provide a local Trade Embassy for Canadian companies. There is great merit to such a proposal.”
Pam Steckler, Managing Director of International Engagement, Central Alberta: Access Prosperity
“Canada is a leader in the global energy sector with Alberta operating as a cornerstone for the industry. Access Prosperity is pleased to be associated with the Canadian Energy Industries Council as it addresses a need for specialized programming that will allow Canadian companies to grow and diversify into the future.”
Tom McCaffery, President & CEO, Supply Chain Canada
Call to Action
Business & Technical Industry Associations Supporters/Affiliates:
Showcasing Canadian energy-related competitive advantage and providing pathfinding services to such excellence and best practices is keystone to CCEI. The magnitude of this endeavor requires ‘connectivity’ with strategic keystone Canadian business and technical associations.
- CEIC looks forward to discussing how its strategic tenacity and ability to increase Canadian international market share will benefit your industry association and member companies. As CIEC will showcasing your logo in support/endorsement/affiliation -related capacities, CEIC will also be proudly advertising your association. Furthermore, once established, CEIC could be an ally regarding project support and your associations’ Directors are invited to use CCEI’s international offices on occasion. CEIC welcomes any/all partnering opportunities with your association.
Government & Economic Development Organizational Partners
CEIC is an industry led solution that complements what government trade and investment organizations do for Canadian industry.
- CEIC looks forward to discussing partner opportunities with you and your organization that will increase Canada’s international market share, investment and competitiveness.
Keystone Industry Sponsors:CEIC is here to shine the international spotlight on Canadian energy excellence and best practices to assist in increasing Canadian international market share, attracting investment, and making Canada’s energy industry more competitive and resilient.
- CEIC looks forward to discussing sponsorship opportunities that will benefit your organization in both domestic and international markets.
Potential Canadian Energy-related Client Companies:International business development is no longer an option, it’s a requirement. CEIC’s direct representation centre and in-market industry support service ‘platform’ uniquely takes into consideration the highly specialized nature of innovative niche technologies, processes and services of Canadian energy-related companies and organizations. Dedicated office accommodations with trusted in-office expert business advisory services, plus research and event development/delivery support will soft land your company, and assist in making you look more international, qualified, capable, and committed to a specific strategic market, at an affordable economies-of-scale price point. Increased technical matchmaking, marketing, networking, connectivity, and exposure with clients, stakeholders, and government will facilitate timely, accurate and relevant competitive and market intelligence. CEIC will assist your company to truly enter in-market deal-flow in targeted international markets.
- CEIC looks forward to discussing how to strategically increase your company’s international market share.