differing size and scope produce oil and gas throughout
southwestern Ontario. These producers are supported by drilling
contractors, companies providing well and oilfield services,
and a range of professional consulting services including
geologists and engineers. In addition to oil and gas production,
southwestern Ontario is home to significant natural gas storage
and salt solution mining.
What does the future hold and what is the upside potential?
After 150 years of production in southwestern Ontario, it is
estimated that only 50% of the regions oil and gas reserves have
been tapped. And there is more to the story.
One of the advantages unique to Ontario oil producers, and
important for investors, is that once an oilfield’s reserves have
been depleted, the field remains highly valued for its natural
gas storage capacity. This can be very good for business. Take
the example of Union Gas Limited which started out as a small
exploration and production company, and has become one of
Canada’s largest natural gas storage and distribution companies.
Exploration in the energy sector is much like horse racing,
it’s a risky business. Placing a bet on a company in the oil and
gas business is similar to assessing the horse racing field and
evaluating the odds in order to place a bet. The Ontario oil and
gas business has a big field of competitors, and to win, to beat
the odds, it takes the same kind of team as in a horse race. An
owner with commitment, a trainer with experience, a jockey with
great hands, and a horse with heart. Changes the roles and it
takes the same team to win in oil and gas.
Just like this year’s Kentucky Derby which featured a Canadian
owned thoroughbred ridden by a jockey who did a masterful job
of riding a long-shot to the winners circle, the Ontario oil and gas
industry has all the skill and experience necessary to compete.
It’s worth the bet.
The Ontario Petroleum Institute is a non-profit industry association that
represents explorationists, producers, contractors, geologists, petroleum
engineers and other professionals, individuals or companies directly
related to the oil and gas, hydrocarbon storage and solution mining
industries of Ontario.
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