Focused Energy, Gwyn Morgan has led Producer of the Year EnCana towards the pinnacle; now Randy Eresman takes the reins by Deborah Jaremko, November 2005, Oilweek
With an enterprise value of about US$44 billion and an undeveloped North American land position the size of Massechusetts, EnCana is one of the largest companies in Canada, if not the largest. … In January 2002, PanCanadian Energy Corportation and Alberta Energy Company (AEC) officially joined in a “merger of equals” to become one, and they called it EnCana.
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All “EnCanans,” as they are called, likely know very well where the company stands right now. All it takes is one look at the title of its 2004 annual report: “Unconventional.” ….the first commercial-scale natural gas from coal (NGC) project in Canada with joint venture partner MGV Energy, and the country’s first commercial-scale carbon dioxide enhanced oil recovery at Weyburn, Saskatchewan. Investment in new technology is all because of a belief in potential, says Randy Eresman…. The idea, Eresman says, is to delineate the resource while working on technologies to unlock its value and find a way to capture additional land on the play before anyone else knows how much it’s worth. … First Energy’s Molyneaux says EnCana’s industry firsts stretch beyond Canada into the United States, pointing to an example of a record number of perforations in one completions pass in the Piceance Basin in Colorado. “It really boils down to engineering experience and not being afraid to push the envelope,” the analyst says.
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“Resource plays require a great deal of trial and error to crack the technical nut.” … This attitude towards field operations is reflected in the company’s corporate constitution, which Morgan unveiled in September 2003. He says taht some questioned the idea of a constitution for a company, saying only countries have constitutions, but he says this highly personal document acts like an internal compass for EnCana employees and its contractors. “The fundamental cornerstone of a company that will sustain itself, build and grow in the long term is the fundamental value system, the strategy and how we think about ourselves. [It’s] the ethics, values, relationships and also the basic business….” The philosophy that is meant to bind EnCana together extends into the community relations aspect of the business, something the company has been commended and awarded for.
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Chief executive officer Morgan explains the approach EnCana takes to community relations. “Where you go to operate, the objective is that the people and the community would be better off than if you weren’t there.” Morgan has had his share of experience with unsatisfied landowners. In the late 1990’s, a rash of sabotage hit northwest Alberta oilfields, and some of the attacks were targeted directly at AEC. What did he learn from the experience? “There are some people that you cannot ever satisfy,” he says, but adds that he took away an important message from the experience. “Always, always, when you are in a situation that has a public profile, communicate clearly, communicate honestly and to the best of your ability. There’s no finish line in this one. You’re never good enough. You’re going to have some problems and you’re not going to be perfect. It’s a questions of raising the bar.” … “If the size of the prize is big enough, we’ll consider it.” … “Everyone looks like a rock star with $70 oil and $ 10 natural gas.” [Emphasis added]
Source: Oilweek, November 2005