CALGARY (660 NEWS) – It’s another nail in the coffin for the Canadian energy industry according to an investment analyst.
On Thursday morning, Encana Corp. announced it intends to move to the United States and rebrand under the name Ofintiv.
READ MORE: Encana announces intentions to move to U.S.
“Company after company, whether they’re directly in the energy business or the investment business having to look at the larger U.S. market that is a lot more healthy than Canada.”
Another blow to the Canadians energy industry, Alberta, Calgary, and CANADA as a whole. Our leadership is failing to find solutions that keep investor capital interested in Canadian energy as Encana to establish corporate domicile in U.S., change name https://t.co/vaZR62ATkr
— Tim Pickering (@AuspiceTim) October 31, 2019
He argues many companies have looked at moving for greener pastures and greener currency.
“It’s becoming increasingly hard to not look at the U.S. from a business and a work perspective but also from a capitalization and investment perspective.”
Pickering argues there are a few people to blame for this happening.
“Losing Encana from Calgary and Canada is such a massive blow. It really illustrates that our environment is not up to par. It also illustrates that the political leadership federally and possibly even provincially are not finding the right solutions.”
Mayor Naheed Nenshi tweeted his response to the news calling it a loss for Calgary and Alberta.
Sad to hear the news about Encana.
This is a loss for Calgary and for Alberta. The silver lining is that, for now at least, this isn’t a loss of jobs for our city, and that’s my biggest focus.
— Naheed Nenshi (@nenshi) October 31, 2019
Energy Minister Sonya Savage also responded to the news.
In a statement posted to Twitter Savage said she’s deeply troubled by the news.
“Sadly, I cannot say I am surprised, as Encana has been shifting its efforts to the U.S. for years, in large part due to harmful policies in Canada.”
— Sonya Savage (@sonyasavage) October 31, 2019