Canadian opportunities remain despite slump

The year 1991 was not a great year for Canada's upstream oil and gas industry. The financial results have not yet been compiled, but the expectations are that the industry will be showing a loss of well over $1 billion and will be surpassed only by the $1.9 billion loss in 1986. This paper reports that this performance resulted in the restructuring activities within the industry being intensified. Companies have been streamlining their operations to enhance operating efficiencies and control costs. They have been disposing of properties and focusing on their core production. About $4 billion worth of producing properties are still on the market today. As part of this process a great deal of experience has left the industry, with layoffs from the operating companies approaching 10,000 in the past 2 years. The drilling and service sector suffered even greater losses, and many companies went out of business. Since the oil price collapse in 1986, some 35,000 have lost their jobs in these two sectors