Oil Sands Provide a Niche Market for Innovative Companies
Published on April 12, 2010
At the National Buyers Sellers Forum on March 23rd and 24th in Edmonton, Alberta, industry was encouraged to adopt a new approach to the oil and gas sector; keynote speakers encouraged companies to adapt to the current realities of industry and the economic situation, and look towards the smart investment potential in the oil sands and shale gas.
“The traditional gas sector is expected to decline, as new technology has unlocked the vast resources of shale gas,” said Tracy Heebner, Business Development Officer for the Economic Development Alliance (EDA) of Southeast Alberta. “While we do not have the large shale gas pools like they do in BC and many places in the United States, we do have the oil sands close by. Demand for this product is expected to increase, which presents opportunities for our local companies,” says Heebner.
Changing demographics and advancements in technology have lead to other opportunities for our savvy local businesses. A growing number of organizations are increasing efficiency and utilizing innovative strategies to create sustainability. Companies are interacting through video-conferencing and telecommuting, reducing their carbon footprint. Others are investing in alternative energy options; wind, solar and biofuels, with a focus being placed on reducing our energy appetite. All of these factors have an effect on the oil and gas sector and in order to be competitive companies in this area must match supply chain strategies to the current economic climate.
Supply chains are changing as buyers no longer just want specific parts; they want solutions to their problems. This has led to companies amalgamating in order to provide answers at every step of product usage. “There’s an importance in forming clusters, it’s a must in today’s day and age; we need to pool our energy and resources together to go after the big contracts and be a key part of the supply chain,” said Pete Loignon, Innovations Facilitator for the EDA.
Buyers are also mandating suppliers match their corporate culture. Heebner says, “if safety is important to a buyer, than a supplier must have all the necessary safety tickets...if sustainability is important to a buyer, than a supplier must show that they are efficient. Larger companies are increasingly under public scrutiny to be responsible and ethical in their operations. In order to stand out suppliers will need to show they are the best at what they do and that they understand the needs and image of their buyer’s organization.”
The Economic Development Alliance of Southeast Alberta recognizes the economic shift relating to oil and gas and encourages businesses to diversify and find a niche-market that provides solutions to the current challenges; equipped with a knowledgeable staff that can assist companies in bringing new technology to market, the EDA encourages individuals to utilize these free services to diversify their company.