Economics Discovering The Business World PETRO-CANADA On July 30, 1975, the Petro-Canada act was passed in parliament to create a Crown corporation. This company was established in order to bring Canada into the oil producing market, and make use of Canada's abundance of natural resources. In 1984, the Conservative government told Petro-Canada to focus on going about business in a "solely commercial manner, focusing on profitability."(see: Petro-Canada, Our History). In 1991, the federal government privatized the company. That is the company's management structure as it is today, with Ron Brennman as CEO and president (appointed in 2000).
Petro-Canada's objectives include the exploration, development, production and marketing of crude oil, natural gas, and the sort, as well as the refining, marketing and distribution of petroleum products and related goods and services. More specifically, oil is explored, developed and produced in offshore Newfoundland; oil sands production and development is taking place in northern Alberta; natural gas exploration and production is located in Western Canada; and the refining and marketing of petroleum products, including lubricants are exported around the world.
Petro-Canada also shares trade on the Toronto and New York Stock Exchanges.
Throughout the past 25 years, Petro-Canada has been a successful company, and has been doing exceptionally well in recent years. In 2000, Petro-Canada boasted record earnings of $893 million, and a cash flow of $1.8 billion. There was also an 87% growth in shareholder value. Despite a work stoppage in Ontario which commenced in April 2001, internal conflict was resolved and collective agreements were reached.
Likely future developments include White Rose oil from east coast offshore Newfoundland, and Hebron/Ben Navis. Offshore Nova Scotia, and the MacKenzie Delta are areas of future development for natural gas. There may also be the possibility of development of natural gas in Africa, but negotiations were...