2023 Global Energy Show abuzz despite soft energy market, downsizing

Looking forward to energy growth in Alberta Oil prices are lower than forecast and job cuts are coming, but the premier says she is still betting on growth in Alberta.

The Global Energy Show is back at the BMO Centre for its biggest event since 2019, and despite some struggles in the resource sector, political and industry leaders are betting on growth in Alberta.

The energy show, which runs from June 13 to 15, is hosting industry leaders representing more than 100 countries.

"The event itself is about supercharging the industry, that's our role over the next three days, and handing that baton to industry to continue the amazing work that Canada's energy sector does," said Nick Samain, senior vice president, DMG Events.

Alberta's oil and gas resources serve as the star attraction at the show, but there are signs of weakness in the energy sector at large.

Benchmark oil (West Texas Intermediate) is trading below $70 a barrel and hasn't been higher than $80 since April, and some of Calgary's major players announced job cuts after the UCP government was re-elected.

Suncor, for example, will be laying off 1,500 positions by the end of the year and TC energy will also shrink its workforce, although it hasn't said by how much.

Both companies say the cuts will improve value for shareholders.

Premier Danielle Smith gave an address to a packed audience on Tuesday, expressing optimism.

"I feel like we are finally on a track of major diversification, that includes all aspects of our industry. I'm not going to get too concerned about a little bit of softness in the first couple of months, but we're committed as a government to make sure that we run a balanced budget and we continue to keep an environment that's going to attract investment and jobs here," said Smith.

She also said to expect her government to cooperate with Ottawa.

"I think people are relieved to see that we're able to start the conversation with the federal government about how we can bring our approaches in sync. I think that's what they want to see," Smith said.

Analysts say the current market is volatile, but less so since 2022, and throughout the energy crisis brought on by the COVID-19 pandemic.

"I don't think anyone expects the lows we've seen in the past or to even come close to them, but I also don't think the industry is really expecting $100 (a barrel) oil either. I think both of those are unsustainable and that's what we saw," said Kevin Birn with S&P Global.

Organizers of the Global Energy Show say the event will inject over $20 million into the local economy.