Alberta and Saskatchewan are fighting over the shrinking number of energy head offices, but Crescent Point Energy Corp. CEO Scott Saxberg thinks they should be more concerned about Canadian spending — and even head offices — migrating to the United States.
There is no border for companies such as Crescent Point with operations in both countries, and the next big trend is likely to involve strong domestic players growing their U.S. business to take advantage of better terms, Saxberg said in an interview in his Calgary head office.
With Canada’s best plays all tied up, “Where do you go next? You build the expertise in the U.S. and find plays in the U.S.,” said the 48-year-old engineer, who in the past 16 years has built Crescent Point into a senior producer with operations across Western Canada — it’s Saskatchewan’s largest oil producer — as well as North Dakota, Montana, Colorado and Utah. “There are lots of players there and the ability for companies like ourselves to be successful. That is where the natural growth is.”
Crescent Point is one of the companies being courted by Saskatchewan Premier Brad Wall to move its head office to his province. Offers of relocation incentives to Calgary energy players set off a war of words last week with Alberta premier Rachel Notley, who warned Wall he might be breaching a provincial trade partnership.
Saxberg said his company already has two major offices in Saskatchewan and has no plans to move its corporate office from Canada’s energy capital, though he warned: “It’s not a right of Alberta to have our head office.”
If Canada continues to damage the competitiveness of its oil and gas industry — higher corporate taxes, carbon taxes, the elimination of exploration incentives are among the recent hits, plus there is the potential of a U.S. border tax — Crescent Point would look at moving south, he said.