Canada

In the wake of the 1974 world oil crisis, the Canadian government took measures deemed to strengthen the security of Canada' s energy needs. Petro-Canada was started in 1975 as an instrument of Canada's National Energy Policy, which was designed to encourage domestic ownership of Canadian petroleum resources. According to the plan, Petro-Canada was to provide Canadian policy makers with a better control and understanding of energy developments, or in the parlance of the time to act as a "window" on the world's energy industry. For several years, Petro-Canada enjoyed a privileged position in Canadian energy, being heavily subsidized by the federal government and having exclusive exploration rights to certain Canadian properties. Shortly after its creation, Petro-Canada embarked on an aggressive expansion, acquiring many of the Canadian assets of foreign companies.

After a change in government in 1984, Canada started privatizing Petro-Canada, which had by that time become widely regarded as inefficient, oversized, and laden with debt. After privatization, Petro-Canada began a significant restructuring involving large reductions in operating costs and employment. Since 1990, Petro-Canada has reduced its assets by roughly 10 percent, while employment has fallen from 9,806 workers in 1990 to 5,646 in 1995 {see Endnote 25}. In 1995, the government's share in Petro-Canada was reduced to 20 percent, which may be sold off in the future. Also, in 1995 Petro-Canada shares were listed on the New York Stock Exchange {see Endnote 26} .

Petro-Canada is the world's 41st largest producer of crude oil. Petro-Canada is Canada's second largest refiner and has a 17-percent share of Canada's refined product market. Petro-Canada is almost exclusively a domestic company, with its natural gas production coming primarily from western regions and its liquids production being largely produced in the east. Petro-Canada has 25-percent interest in the $12-billion Hibernia field project, along with with Mobil (33 percent), Chevron (27 percent), Murphy Oil (6 percent), and the Canadian government.

While operating primarily in Canada, in 1996, Petro-Canada also started producing oil in Algeria. Petro-Canada holds a 70-percent interest in a 1994 discovery of 40-45 million barrels of oil in a field located north of Algiers {see Endnote 27}