Today, 72-year-old Canadian oilpatch bastion, the Canadian Association of Oilwell Drilling Contractors, announced it is changing its name to better reflect its commitment to the energy transition. Accordingly, the organization, now called the Canadian Association of Energy Contractors (CAOEC), expects its name to reflect the time it is currently living and its efforts in reducing its use of fossil fuels in favor of cleaner forms of energy.
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From CAODC to CAOEC
In fact, CAOEC, which stands for the new name of the association, said Thursday this change came after extensive member and industry consultations. Moreover, the organization said it is adopting an expanded mandate to reflect its members’ roles in developing hydrogen, helium, geothermal, and carbon capture, utilization, and storage (CCUS) resources.
Nevertheless, CAOEC will continue developing its traditional role in oil and gas exploration and development.
In an online news conference, CAOEC CEO Mark Scholz commented that association members are looking forward to participating in the “natural evolution” toward more sustainable energy development.
“By producing cleaner oil and gas, developing alternative energy sources such as hydrogen, geothermal and perfecting CCUS techniques, Canada’s valuable oil and gas resources and Canada’s energy services sector will help take us to where we need to go,” he said.
Moreover, “we’re not only prepared and well-positioned to support energy transformation,” added Scholz. But we can “help lead it as Canada, and the world moves to produce energy with a lower carbon footprint.”
Reception and Importance of the Name Change
In a webcast, Natural Resources Minister Seamus O’Regan said the name change shows that the association; is embracing the “economic opportunity” that comes with fighting climate change.
Indeed, “some may say a name change is small potatoes,” he said. However, “this one is fundamental. Because it is so important to our future since the new Canadian Association of Energy Contractors (CAOEC); represents a rethinking of your future, a rethinking of our future.”
Similarly, Alberta Energy Minister Sonya Savage said the changes represent new areas of growth for the industry. Moreover, through moves like the one CAOEC did; the sector will gain importance as the economy recovers from the pandemic slump.
Worth noting, the Canadian drilling rig fleet has fallen to less than 500 rigs; from about 625 rigs three years ago. Moreover, thousands of workers have left the industry.