Canadian Natural Resources makes case for mandated oil output cut
Canadian Natural Resources’ executive vice-chairman is hinting his company is gearing up to deploy its financial heft beyond Canada's borders as record-low oil prices and competitiveness concerns plague the country's energy sector.
“We're basically in Canada, the U.K. and offshore west Africa. I will say that we're doing our budget right now and clearly the U.K. and offshore Africa look much better than Canada for investments,” Steve Laut told BNN Bloomberg in an interview Tuesday. “We’re still working it out, but they look much better.”
Laut added that Canada’s corporate tax rates are too high compared with rates in the United States, which he said is disincentivizing companies to do business in this country.
“You’re seeing massive outflows of capital from Canada to the U.S. – and you’re actually seeing capital from the world, globally, leave Canada and go elsewhere,” Laut said.
“We’re just not competitive.”
Laut is the latest Canadian energy executive to sound the alarm on the country’s competitivness ahead of Finance Minister Bill Morneau’s fall economic update.
Cenovus Energy Inc. CEO Alex Pourbaix last week urged the Alberta government to intervene by capping production to help narrow the price differential between Western Canada Select and the North American benchmark West Texas Intermediate as the country struggles to get its oil to market.
Leaders across the country have said they hope to see competitiveness addressed in Wedneday’s economic update.
“I think what we need to hear, and I think you’re hearing this from all businesses across Canada, is that Canada needs to be more competitive,” Laut said.