Alberta Oil: What are the industry’s priorities?
David Collyer: There are themes. Access to resources is a major one. Environmental policy is part of this. It sets the terms of access and defines land, air and water issues. Competitiveness is important. This sector creates tremendous benefits. To continue to do so, it needs to be competitive internationally and in Canada. Access to markets is critical. In light of the election in the United States, it’s important that we emphasize the security of supplies from Canada. The last major theme – and it bears on all the others – is the issue of reputation. That’s increasingly important. We’ve got a good story to tell. We need to be proactive about telling it. The industry has been a bit too silent for too long, not only with respect to economic benefits but also in presenting a positive story on the environment. After the elections in Canada and the U.S., we’ll be out there with the message. I don’t think we need to be apologetic about what we’ve done at all.

AO: Where are oil and gas prices going?
DC: I learned a long time ago not to make predictions. You obviously have to have a view. People have moved away from trying to predict oil and gas prices and instead perform robustness tests on operations and projects over a range of price assumptions.

AO: Can industry handle sudden economic changes better nowadays?
DC: We would like to think experience taught us some things. Many people have lived through various cycles and learned. This is a very competitive industry at all times. There is always tremendous pressure to grow and deliver returns. I’m an optimist. I think we learned from experience. That’s not to say there won’t be some periods of adjustment.

AO: What are the effects of evolving change in the resource base?
DC: There’s clearly a shift to long-term opportunities in the oil sands and unconventional natural gas. That, in itself, will help with long-term value. One has to take a long view and expect some price volatility. People have to be better prepared for economic fluctuations. The conventional drilling and production industry is still important. The opportunities of the future are different. They are long term and capital intensive. It is a different type of business that does have a long-term perspective.

AO: Is there a signal of some sort in you being the first CAPP president in memory to be recruited from industry, instead of a back­ground in federal or provincial government?
DC: There’s no particular message. The board of directors was looking for somebody with a breadth of experience and knowledge of the industry and its stakeholders. I also worked in Ottawa for two years (1989-91) on an executive exchange program as director of the energy supply branch at the National Energy Board. I learned some things about how government works. I saw industry from an outside perspective.