Economics Discovering The Business World PETRO-CANADA On July 30, 1975, the Petro-Canada act was passed in parliament to create a Crown corporation. This company was established in order to bring Canada into the oil producing market, and make use of Canada's abundance of natural resources. In 1984, the Conservative government told Petro-Canada to focus on going about business in a "solely commercial manner, focusing on profitability."(see: Petro-Canada, Our History). In 1991, the federal government privatized the company. That is the company's management structure as it is today, with Ron Brennman as CEO and president (appointed in 2000).Petro-Canada's objectives include the exploration, development, production and marketing of crude oil, natural gas, and the sort, as well as the refining, marketing and distribution of petrol ...view middle of the document...
In 2000, Petro-Canada boasted record earnings of $893 million, and a cash flow of $1.8 billion. There was also an 87% growth in shareholder value. Despite a work stoppage in Ontario which commenced in April 2001, internal conflict was resolved and collective agreements were reached.Likely future developments include White Rose oil from east coast offshore Newfoundland, and Hebron/Ben Navis. Offshore Nova Scotia, and the MacKenzie Delta are areas of future development for natural gas. There may also be the possibility of development of natural gas in Africa, but negotiations were suspended. Petro-Canada representatives believe that the Alberta oil sands (MacKay river, Meadow Creek and Lewis properties) will provide great growth opportunity over the next decade and beyond.Over the years Petro-Canada's mandate has evolved. As stated in the first paragraph, in 1984, the Conservative government told Petro-Canada to focus on going about business in a "solely commercial manner, focusing on profitability." Today, Petro-Canada is involved in many major social events and gives generous donations. Due to the September 11 attack, a fund-raising campaign was launched which encouraged employees to donate to the Red Cross. Petro-Canada generously matched those donations, thus demonstrating that the company is no longer solely focused on profit but rather on the public. Petro-Canada also donated a gift of 26 aboriginal masks to the Royal British Columbia Museum. Petro-Canada, in collaboration with the Canadian Olympic Association founded the Petro-Canada Olympic Torch Scholarship Fund which aids young athletes. These marketing tactics, as well as the famous "Petro-points" add to consumer interest in their various products. "Petro-Canada...is committed to giving back o the community through its support of education, arts and culture, environment, health and community services, and as a sponsor of Canada's Olympic Team." (Article 6)
