Two Canadian industry associations have merged to form a united voice, the Canadian Association of Petroleum Producers.
Marriage of the Canadian Petroleum Association and Independent Petroleum Association of Canada is the result of cost cutting efforts.
CAPP will have 34 employees and a budget of $7.5 million/year. CPA and IPAC had a combined payroll of 58 and combined budgets of $12 million/ year. The merger will mean closure of CPA offices in Ottawa and Halifax and loss of 24 jobs at the two associations.
Irv Koop, president of Westcoast Petroleum Ltd., is chairman of CAPP. Gerry Protti, former executive-director of IPAC, is president of the new group which will represent about 200 companies. Ian Smyth, former CPA president, is retiring.
CPA was formed in 1952 to represent senior and integrated companies. IPAC was formed in 1960 to represent independents. The two associations were sometimes at odds on policy when the interests of their memberships differed.
The new association began its life with a renewed call for royalty reductions.
Koop and Amoco Canada Ltd. Pres. Don Stacy, a former CPA chairman, said more industry spending cuts are likely unless royalties are cut.
Stacy said his company shelved $60 million in spending plans last week alone because the oil projects would be uneconomic under the current royalty regime. The Amoco executive said without an improved royalty situation companies will reach a low level of activity and will spend money elsewhere.
The Alberta government is reviewing royalty structures and has said decisions on changes will be made this fall.
The timetable for changes has been complicated by the planned resignation of Premier Don Getty. A leadership race is under way to replace him as Alberta premier and leader of the governing Conservative party.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
