VANCOUVER – Even though Canada is a resource-rich country for the global economy, the political leadership in Ottawa is currently strangling its oil and gas industry, stated Lord Conrad Black on Sunday, January 19 at the Vancouver Resource Investment Conference.
Black is a financier, author and columnist for publications in Canada, the United States, and the United Kingdom, including the National Post and the National Review Online in New York. Black is also a member of the British House of Lords as Lord Black of Crossharbour since 2001.
As the oldest transcontinental, bicultural country in the world, Canada has prospered throughout history because of its geographical location and diplomatic ties to the United States, Black said. However, Canada is currently failing because of its inability to maximize and promote its prosperity.
“Canada is now running a negative capital flow – that is not sustainable,” he added. “Canada is not competitive.”
According to the Brookings Institution, China and India comprise about 40% of global gross domestic product. Canada should have been the greatest beneficiary of China and India’s impressive economic growth, but it has not to date, Black added.
“Canada is perceived as a country where it’s difficult for resource companies to conduct business,” said Peter Brown, founder and former chairman of Canaccord Financial. Now known as Canaccord Genuity Group, Brown built the venture capital firm into Canada’s largest independent investment dealer.
Canada is ranked 23 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings.
The departure of international companies from Canada – such as Barrick Gold and EnCana – and the decline in foreign investment in Canada are already evident, Brown added.
Niels Veldhuis, president of the Fraser Institute, said Canada is one of the fiscally prudent countries in the world. This quality should make Canada more attractive to international investment, he added.
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Barrick Gold Corporation (TSX:ABX)
- barrick.com
- Headquartered in Toronto, Canada, Barrick Gold Corporation explores for and develops mineral properties, focusing on gold, copper, and silver deposits. It holds interests in mines in Argentina, Australia, Papua New Guinea, Chile, Saudi Arabia, in Africa and various exploration projects located in the Americas and Africa.
- Barrick Gold Corporation is currently trading at $23.46 with a market cap of $41.7 billion.
Encana Corporation (TSX:ECA)
- encana.com
- Headquartered in Calgary, Canada, Encana Corporation engages in the exploration, development, production, and marketing of natural gas, natural gas liquids and crude oil. The company has interests in various assets, including the Montney (B.C /Alberta), Duvernay (Alberta), Horn River (B.C.), offshore Nova Scotia, Eagle Ford (Texas) and Permian (Texas) as well as upstream operations comprising in southern Alberta.
- Encana Corporation is currently trading at $5.33 with a market cap of $6.9 billion.
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