I would like to thank the CGEF Executive for electing me President for the 2016-2017 business year. It is an honour to serve the CGEF members in this capacity. I would also like to thank the many people who volunteer for CGEF for the benefit of the membership. The Directors and Advisors put in many hours of their personal time to make CGEF successful.
CGEF started as an informal group of like-minded individuals from Canadian international E&P companies who were interested in networking and sharing their international experiences. CGEF has grown considerably since that time and has become a formal organization providing networking opportunities for our members, as well as acting as a liaison between our membership and foreign governments, national oil companies, international companies and both the Provincial and Federal governments of Canada.
Canadian expertise runs deep within the Oil and Gas Industry, from the technical expertise in the geosciences and engineering to the innovation provided by the service industry. This expertise and innovation has been central to making the Western Canadian Sedimentary Basin economic in a varying commodity price world. This knowledge and technology has been effectively transferred to International ventures by Canadian companies to the point that Canadian E&P and service companies are active in over 100 countries.
The past two years have been a challenge to the Oil and Gas Industry and has affected all companies whether domestic or international. Our CGEF membership has been impacted during this time with a number of companies being involved in mergers and acquisitions. Nonetheless, CGEF has been able to maintain a strong membership that remains optimistic about the future.
Downcycles within the industry invariably are followed by upcycles and it appears we are on the cusp of an upcycle. All leading indicators suggest that 2017 will see a balance return to the supply/demand equation and a recovery of the oil price to a much more economic level.
Opportunities around the world abound for companies that have persevered through the last two years. With a return to higher oil prices the industry will see renewed investment by the capital markets. I urge Canadian E&P companies to be patient and to plan for the future and be ready to capitalize on these opportunities including those with CGEF members.
The future is bright.