The Demographic Dilemma
Why Canada's Petroleum Service Firms Are Moving Into The U.S.
By Mike Byfield
Like many of its service peers, Stealth Acoustical & Emission Control Inc. is shifting assets and marketing toward the United States. "Shop and field personnel are readily available in Colorado. Wages, office and shop facilities, and most other operating expenses are 25% to 50% less expensive than Calgary," says Colin Davison (shown here), founder of the two-year-old firm. "The Americans are expanding their natural gas production and building infrastructure. Alberta producers are moving their capital to the U.S. Take it all together and there are obvious advantages for us in heading south."
Frank Tirpak, president and CEO of Lonkar Services Ltd., says the Red Deer-based slickline/wireline firm presently does five percent of its business in the U.S. Over the next five years, Lonkar plans to expand aggressively into that market. Tirpak, who also chairs the Petroleum Services Association of Canada (PSAC), adds that many service companies will deploy their best equipment south of the border. "Whenever you're out to win new customers, it's an advantage to put your best foot forward," he comments. "I'm concerned that the Canadian industry will find itself left with mostly older, less efficient technology."
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