ST. JOHN’S, NEWFOUNDLAND – Community and business leaders, as well as supporters throughout Canada, are united to send a clear message to the Government of Canada that action is needed to attract investment in the offshore oil and gas industry and help thousands of Canadians get back to work. Over 80 leaders have spoken out about what the offshore means to them and their organizations.
Over the next 10 years, the estimated loss to the province due to deferment and loss of oil and gas exploration and development projects could be substantial:
- $11 billion in provincial revenues impacting programs, infrastructure, education and health care throughout communities in Newfoundland and Labrador;
- $59 billion of total provincial GDP;
- 90,000 person-years of employment, resulting in significantly lower consumer spending in retail, restaurants, real estate, and other services; and
- The province’s best opportunity to be an international clean growth leader and oceans technology hub.
The world is moving towards a low carbon economy. Newfoundland and Labrador’s offshore oil and gas industry represents one of the lowest carbon per barrel footprints in the world. Greenhouse gas emissions can be further reduced by making immediate investments in the development of lower carbon fossil fuels. Reducing global emissions by providing the world with Newfoundland and Labrador oil to help supply increasing global energy demand is a valuable contribution to the fight against climate change.
Newfoundland and Labrador’s offshore oil and gas industry fully supports protecting the environment, reducing carbon emissions and working with governments to meet provincial, national, and international emissions reduction targets. Through its commitment to lower carbon and clean technology, the offshore oil and gas industry will be a catalyst for clean growth innovation. The technologies developed will also accelerate the diversification of the province’s economy. The Newfoundland and Labrador approach mirrors that of Norway, a global environmental leader, which has steadily increased oil and gas production since 2012 due to its government’s policy of stimulating exploration and development while simultaneously taking significant actions to move to a low carbon economy and developing new clean technologies that are being exported worldwide. Newfoundland and Labrador can lead Canada’s energy future and make Canada a global clean growth leader like Norway.
The importance of the oil industry to the economy of Newfoundland and Labrador cannot be overstated with an estimated 30 per cent of GDP, 13 per cent of labour compensation and 10 per cent of employment (over the 2010 to 2017 period). As of March 31, 2020 there were 6,390 people directly employed on NL offshore oil and gas development projects while thousands more were employed in supporting industries.
All Canadians are encouraged to join with the over 80 leaders who are today calling for support for the offshore. Learn more at www.weareNLoffshore.ca/supportNL.
Community & Business Leader Quotes
“The importance of the offshore industry to Newfoundland and Labrador cannot be overstated. It represents one of the lowest carbon per barrel footprints in the world, contributes an estimated 30 per cent of GDP, and directly employs 6,390 people with thousands more in supporting industries.”
Honourable Siobhan Coady
Minister of Natural Resources, Government of Newfoundland and Labrador
“$4 Billion of exploration investment activity, in addition to billions of associated development activity, is at risk of indefinite delay or outright cancellation,” said Jim Keating, Executive Vice President, Offshore Development, Nalcor Energy. “This current situation presents serious consequences for a provincial economy that is already being battered by a public health crisis. Our offshore industry can contribute to Canada’s economic recovery and environmental commitments and ensure stability for our communities now and into the future.”
Oil and Gas Corporation
“The offshore oil and gas industry is facing a crisis and for months we have been asking the Government of Canada to help us through this period by ensuring we are globally competitive and putting thousands of people back to work. Without assistance from the federal government we will fall behind other leading jurisdictions who are providing incentives for exploration and development, we will lose our pre-pandemic momentum, and likely miss our opportunity to lead the transition to renewable energies.”
Chief Executive Officer, Noia
“Investing in our offshore industry is an investment in Canada’s economic recovery, helping to unlock significant growth potential while encouraging job creation and sustained revenues for Newfoundland and Labrador.”
Director, Atlantic Canada and Arctic – Canadian Association of Petroleum Producers
“With its commitment to achieving net zero by 2050, Canada’s offshore industry provides the basis from which enormous clean growth and economic diversification is possible for Newfoundland and Labrador.”
Executive Director, Newfoundland and Labrador Environmental Industry Association
“Over the past 30 years, Canada’s offshore oil and gas industry has developed a world-class construction workforce. Our skilled trade workers continue to be leaders in productivity, quality, safety and diversity, as our province quadrupled the national average in workplace diversity with 14% female skilled trade workers. Without immediate support from the Federal Government for the offshore oil and gas industry to stimulate local construction, all of our advances over the past 30 years will quickly disappear.”
Executive Director, Trades NL
“Noia’s over 500 members of the supply and service sector are seriously hurting because of the current crisis. They need leadership and immediate action to help weather this storm and continue the significant contribution they make to the Canadian economy.”
Chief Operating Officer, Atlantic XL and Noia Board Chair
“The oil and gas industry has an immense impact on all Newfoundland and Labrador families and businesses. Our province and country would look very different without the contribution of this industry.”
Executive Director, NL Employers’ Council
“Our province, region and country depend on the oil and gas industry. Newfoundland and Labrador has proven we are a place rich in resource, expertise and ability to deliver. It only makes sense for our federal government to support our industry and ensure we are positioned to provide safe and reliable products now and into the future.”
Chair, St. John’s Board of Trade
“I see significant opportunities for Kraken Robotics to not only support the NL oil and gas industry but to also help it grow and build upon its long-storied history.”
President & CEO, Kraken Robotic Systems Inc.
“With origins in the Newfoundland & Labrador offshore, today Rutter exports to many industry sectors in over 40 countries. This industry is vital to the incubation and development of local technology companies.”
President, Rutter Inc.
“The Newfoundland Offshore oil industry directly impact consumer confidence and buying decisions for residential construction and renovations. An investment in the offshore oil industry is key to stabilizing residential construction.”
Interim CEO, Canadian Home Builders Association Newfoundland Labrador
“For years, it was a fact of life that if you wanted a good job you had to leave Newfoundland and Labrador to find it. But the offshore industry really turned that around and people came home with their families, young folks were able to stay and have good jobs right here. Entire families are very stressed right now with all this uncertainty. We’re doing everything we can to get government and operators to act now so offshore workers and everyone in the province can have a more stable future.”
President, Unifor Local 2121
“Newfoundland and Labrador’s low carbon oil is a green baseline to our shoreline to secure a sustainable, just transition for Canada’s energy future.”
President, Longshoreman Protective Union Local 1953
“The offshore oil and gas industry is vital to Newfoundland. It affects not only me, but my family, co-workers and our business that supplies rigging to the offshore platforms.”
Operations Manager, North Atlantic Offshore Inc.
“Ocean Supercluster, local digital transformation, Newfoundland and Labrador technology and innovation all require a robust offshore oil and gas industry. To not provide immediate support will put the success of these efforts at risk.”
Regional Director – Energy, Hatch Ltd.
“Spending on new sewers, roads, bridges and other civil infrastructure is vital for sustainable economic growth, along with producing jobs and considerable positive spinoff activity. Provincial oil and gas revenue is a major (required) funding component, which enables Newfoundland and Labrador to invest in Infrastructure for future sustainability.”
Executive Director, Heavy Civil Association of Newfoundland and Labrador (HCANL)
“A strong oil and gas Industry in Newfoundland and Labrador will allow me to continue to raise my family in here, and contribute to the province’s and Canada’s prosperity.”
Ballast Operations Lead, Kvaerner Canada Limited
“Despite criticism, early investments made to our oil and gas industry provided monumental benefits to this province and our country. With oil and gas still providing over 80 per cent of the world’s energy – now is the time for our federal government to invest in our low carbon product and promote this industry with pride.”
Owner/Manager, Compass Limited, Machine and Fabrication
“The offshore industry benefits many small companies and sole-proprietors. Given the current economic crisis, it is critical that the offshore receives adequate supports to ensure these local businesses survive.”
Vice Chair, AvaLantic Alliance
“Newfoundland and Labrador’s oil and gas industry is at a critical cross-road. Joint management can propel this province into leading the energy transition generating economic and social well-being for all Canadians. We have to act now.”
President & Country Manager, Kvaerner Canada Limited
“Thirty years ago, Crosbie Group forged a future in the offshore oil and gas industry. Today, with so much untapped opportunity here at home, we are disheartened that we have to turn our attention to investment outside Canada to pursue growth.”
Chairman, Crosbie Group Limited
“The support we have received from the oil and gas industry in Newfoundland and Labrador over the last 28 years has been paramount in helping us in our fight against hunger.”
General Manager, Community Food Sharing Association
“Newfoundland and Labrador technology companies leverage opportunities in the oil and gas sector that support digital transformation and carbon-reducing projects, helping the tech sector to grow and expand to other sectors of the ocean economy and beyond.”
CEO, Newfoundland and Labrador Association of Technology and Innovation
“The oil and gas industry has been a key driver of economic prosperity in Newfoundland and Labrador, making federal government support for the industry so important to the province’s future.”
Director of Provincial Affairs (NL), Canadian Federation of Independent Business
“As an airport, we’ve seen and experienced the social and economic growth that the oil and gas sector has brought to our province. The St. John’s International Airport will continue to support the offshore oil and gas industry in Newfoundland and Labrador.”
Chief Executive Officer, St. John’s International Airport Authority
“Since the start of Hibernia, I’ve seen how important the revenue and jobs created by the oil sector are for our economy. I urge the Federal Government to increase our competitive advantage in this global industry.”
Publisher, Natural Resources Magazine
“The Port of Argentia applauds the advocacy efforts of NOIA and its member companies in highlighting the importance and impacts the offshore oil and gas industry has on our economy and our valued lifestyle. The future viability of the Port is greatly aligned with this sector and we encourage all levels of government to deliver its support to the industry in a timely and comprehensive process.”
CEO (Acting), Port of Argentia
“Oil and gas is critical to C-CORE’s success. Technologies developed over 45 years for the Newfoundland and Labrador offshore have been adapted, enabling us to export internationally to other sectors and markets.”
President and CEO, C-CORE
“Canada’s offshore industry produces some of the least carbon-intensive petroleum in the world. Our economic recovery hinges on Canada remaining a leader in the global energy transition.”
Dr. Aaron Henry
Senior Director, Natural Resources and Sustainable Growth, Canadian Chamber of Commerce
“Newfoundland and Labrador’s offshore oil and gas industry is leading advancement of skills, competencies and critical infrastructure that underpin rapid growth in our ocean technology sector toward long-term economic diversification and resilience.”
Executive Director, OceansAdvance Inc.
“Investing in our province’s offshore is investing in communities, organizations and the very people they serve. YACC has the backs of young adults dealing with cancer because oil and gas industry companies and their employees have our back.”
Executive Director, Young Adult Cancer Canada (YACC)
“The offshore oil and gas sector is a vital contributor to the Newfoundland and Labrador construction industry. The future of the construction industry in our province is intricately tied to its sustainability.”
Chair, Newfoundland and Labrador Construction Association (NLCA)
“Atlantic Towing, Canada’s leading Offshore Supply Vessel company, employs hundreds of people from Atlantic Canada in the Offshore Oil and Gas industry and supports numerous suppliers, education institutions and other partners as part of our ongoing activity. We know that oil will be required globally for decades to come and our Atlantic Canadian sweet crude is one of the lowest emitting products anywhere in the world. We also know that becoming carbon neutral and supporting oil and gas production are not alternative choices. Let’s leverage the incredible resources, companies, practices and stability we offer the world to grow our economy, create jobs and help transition to carbon neutral.”
Group Vice President, Transportation and Logistics, J.D. Irving Limited
“The oil and gas industry is essential to the viability of the Killick Inn and Suites in Arnold’s Cove, constructed 5 years ago, this facility was built to cater to the industry. Please support.”
Owner/Operator, The Killick Inn & Suites
“The financial position of Newfoundland and Labrador is at a critical point. Without a vibrant offshore oil and gas industry which is competitive globally, this financial position will continue to deteriorate further. The Town of Lewisporte strongly encourages federal support to this industry, as was so rightfully provided for others, to create an environment promoting continued exploration and development, thereby providing a future for the offshore oil and gas industry that is environmentally sustainable and economically competitive.”
Mayor, Town of Lewisporte
“In 2015 my company employed over 800 skilled trades in the construction and commissioning of the Hebron platform. We employed the highest percentage of women trades than on any comparable project in Canada. This workforce is now idled. New discoveries are needed not only to put these talented people back to work but to attract our youth to choose skilled trades as a career.”
Chief Operating Officer, The Cahill Group
“For decades, the oil and gas industry has provided well-paying jobs that have allowed many Canadians to start and complete an apprenticeship in the skilled trades. Canada’s Building Trades Unions understand we need to continue to invest in this sector, to provide much-needed energy sources and create job opportunities that allow more Canadians, including women and Indigenous Peoples, to build a lifelong career in the skilled trades.”
Chairperson, Canada’s Building Trades Unions
“Our province has boundless potential in offshore oil and gas Conception Bay South believes in this tremendous industry and fully supports continuing the growth of this important sector.”
Mayor, Conception Bay South
“We are proudly a Canadian company that does business in all of Atlantic Canada, and has serviced the Newfoundland and Labrador offshore oil and gas industry since its inception. The positive economic impacts of this industry crosses provincial boarders – Terrapure Environmental is a testament to this. The industry is critical for the future of our employees, and our company in Newfoundland and Labrador. Now, more than ever, Federal support is key for the industry to survive and flourish”
Vice President Environmental Solutions-Atlantic, Terrapure Environmental
“The oil and gas industry in Newfoundland and Labrador enabled Glamox Inc. to be established here 30 years ago. Glamox are now the leading lighting manufacturer and supplier to the Canadian offshore industry, Canadian Navy, Coast Guard and commercial marine markets.”
Sales Manager, Glamox Inc (Canada)
“Newfoundland and Labrador has a credible energy transition strategy that leverages the oil and gas industry to modernize Canada’s ocean economy and accelerate clean growth innovation to meet net zero. This supports the provinces transition to a low carbon and digital economy and provides exciting and diverse career opportunities for our youth.”
Safety & Sustainability Manager – Bay du Nord Project, Equinor Canada Ltd.
“For nearly 50 years, Pennecon’s name has been synonymous with large scale developments within the construction sector of Newfoundland & Labrador, and Canada as a whole. Our evolution and growth in the construction, maintenance and marine sectors has principally been enabled by the economic activity created by the Province’s offshore oil and gas industry. With a workforce of skilled Newfoundlanders and Labradorians engaged in activities derived from this sector, we implore the Government of Canada to step-up and support the offshore industry in its time of need.”
Chief Executive Officer, Pennecon Limited
“I have a female-owned business and have worked in oil and gas for over 20 years. I successfully diversified my business based on my petroleum experience. 2020 was going to be my best year ever. I can’t understand why the federal government has abandoned us. Distressing.”
Caron Hawco Group Inc.
“The benefits go far beyond the actual oil and gas projects and are interspersed to local businesses and other areas of the economy. I fear that without a recovery package, in the form of incentives from the Government of Canada, the Newfoundland and Labrador offshore industry and the provincial economy will be crippled beyond repair.”
CEO, Oceans Ltd.
“Since opening its local office in 1997, TechnipFMC have hired and trained over 100 graduates from Memorial University, contributing significantly to technical research & development around the harsh North Atlantic environment.”
Business Analyst – Subsea Canada, TechnipFMC
“The offshore oil and gas sector has made substantial financial contributions to Stella’s Circle to benefit marginalized members of our community, particularly in the areas of skills training and career access programs.”
CEO, Lisa Browne
“DF Barnes has a long history of complex and technical work in oil and gas in Newfoundland and Labrador and abroad. We are proud of our company and the work we do. But we are at a crossroads. Without federal support we risk losing not only an industry but an entire economy.”
VP, Business Development, DF Barnes
“Martin’s Fire Safety Ltd. relies heavily on the offshore oil and gas sector, providing inspection, testing and maintenance services for fire and life safety systems on vessels and installations servicing the offshore. A reduction in exploration and production activity will have a significant negative impact on revenues and level of employment.”
President and General Manager, Martin’s Fire Safety Ltd.
“The offshore oil and gas industry has been a stimulus for innovation in Newfoundland and Labrador. PanGeo’s 3D sub-seabed imaging technology is one NL technology cultivated from the oil and gas sector. Future growth of our company and advancements of our people and our technology needs support from the oil and gas sector; we need oil and gas technology applications and solutions to position this province and Canada as a world class ocean industry leader.”
CEO, PanGeo Subsea
“Cox & Palmer is deeply committed to our clients, our community, and to building a bright future for this province. Investment in our offshore industry is critical and would have a substantial impact on the growth and success of our vibrant province and the businesses that operate within it.”
Cox & Palmer
“The Luxus Boutique Hotel, Lounge & Café has reaped huge economic benefits from a thriving offshore oil and gas industry. When capital construction was happening offshore, our hotel, lounge & café were at a maximum capacity seven days of the week. Unfortunately, the economic crisis crippled our business, and I fear without necessary support and incentives from the federal government, the lasting economic impacts will be felt for many years to come.”
General Manager, The Luxus
“The experience PAL Aerospace gained in offshore ice surveillance has been critical in catapulting our company onto the world stage for maritime surveillance. The offshore industry gave us an opportunity to develop new technologies, refine innovative practices and become global leaders in the fields of ice management and intelligence surveillance and reconnaissance.”
Vice President of Business Development, PAL Aerospace
“The Newfoundland and Labrador offshore oil and gas industry had momentum, but now the future of the industry is bleak, and businesses in the province are facing great uncertainty. Without some form of assistance from the federal government, companies will simply hold back on investment, creating further problems for our already damaged provincial economy.”
Director of Strategic Development, AltoMaxx
“The offshore has been a major contributor to the province’s emergence as a global leader in harsh marine environment research and technology. That capability will be central to realizing the full potential of Canada’s blue economy.”
Interim Chief Executive Officer, Petroleum Research NL
“The success of our oil and gas industry means prosperity for thousands of hard-working families across dozens of different industries. We need it now more than ever.”
Vice-President and General Manager, NSB-Omega
“I have published the oil and gas magazine for three decades always believing that we could be as profitable and even more lucrative than Norway and the North Sea. This is not the time to give in, it’s the time to get stronger and implement oil and gas drilling initiatives so that we can bridge to new energy with certainty. We are not getting to renewables without oil and gas so doing the right thing and producing as much light crude is the absolute right thing to do.”
Publisher and CEO, The OGM
“The St John’s hotel market has steadily expanded to meet the growing needs of the offshore sector. The offshore is vitally important to the hotel sector and without it, I fear you’ll see many hotels close and as a result, many people out of work. This sector has been a staple within our economy for many years, abandoning it now will be devastating. It was suggested last week that if every other industry in this province doubled, it would still not equal the offshore. As a family owned business operating here since 1968, and employing hundreds of people with many families relying on us, a strong energy sector is the single most important piece for recovery.”
Owner, Comfort Hotel St. John’s
“It means we can continue to have great careers at home that lets us raise our three children in the same small community we grew up in, surrounded by our family.”
Oil and Gas Industry Employee
“Investing in our oil and gas industry is an investment in Canada’s supply chains. Reliable energy infrastructure is critical to safe and secure supply chains, from manufacturing, to power generation to transportation.”
President and CEO, Supply Chain Canada
“The offshore oil and gas industry has helped me grow my business and provide stable employment for my team. Please support an industry critical to the future of thousands.”
“Atlantic Offshore Medical Services is a Newfoundland and Labrador company formed here, in large part to service the oil and gas industry. This industry has facilitated our growth and has fostered our company into being a best in class provider of primary and emergency healthcare and occupational health care to industry. Today we are one of the longest standing private entities in the world in our line of service deliverables and without support from the local oil and gas industry our future will be uncertain. The time is now to support the oil and gas industry which has supported so many local businesses and helped them expand to providing services, nationally and internationally. Without this support, the oil and gas sector will diminish and so will local businesses here in our province.”
Chief Executive Officer, Atlantic Offshore Medical Services
“The Local benefits that accrue to the marine sector in St. John’s Harbour as a result of the oil and gas industry is significant. A.Harvey and the vessel operators provide substantial wages and purchases that are felt throughout the economy”
Vice President, Operations, A. Harvey Group
“The Newfoundland and Labrador offshore industry played a pivotal role in growing Telelink into the organization it is today. The offshore industry was a driving force for change in terms of supplier diversity, and companies like Telelink, that are 100 per cent women owed, have benefited from that and have been supported by those efforts here locally.”
VP of Sales, Telelink
“The Newfoundland and Labrador oil and gas industry has created sustainable employment for many businesses of a high-quality nature. It has allowed us to expand our growth and employee case through the knowledge we have gained for this industry. If the industry cannot survive neither will the jobs – this would completely close our business operations in Atlantic Canada.”
President, Eastcoast Offshore Supply Ltd.
“We are a Newfoundland and Labrador based global tech company. Although we are not directly in the oil and gas business, we rely heavily on it. To be competitive globally, we need to be based in a place where we can attract the best talent and that has vibrant communities. If the oil and gas sector does not rebound quickly, our province will not be a viable place for many businesses to operate. It really pains me to say that but it’s the cold hard reality.”
Craig A. Rowe
CEO, ClearRisk Inc.; Board Chair, Newfoundland and Labrador Association of Technology and Innovation
“Since 1983 with the purchase of our first ship, Secunda has owned over 70 vessels, developing thousands of local seafarers and marine professionals, many who work offshore Newfoundland and Labrador and around the world today. We ask the federal government to at least match the recent measures taken by Norway to ensure Canada remains globally competitive, and so we can continue to employ and develop talented Canadians for generations to come.”
VP Sales and Business Development, Secunda Canada
“Scanmudring is a global leader in advanced subsea heave machinery. Our projects have had significant impact to local industry and workforce. The Newfoundland and Labrador offshore is critical to our future.”
Managing Director, Scanmudring Canada Inc.
“The offshore oil and gas industry has provided McInnes Cooper with the opportunity for growth and contributing to our communities, not only in Newfoundland and Labrador but across all of Atlantic Canada. We are able to give generously of our volunteer time and donate to charitable organizations in need across our region. Law school graduates want to come home to Newfoundland and Labrador so they can live and develop their legal careers here at home, in our energy sector.”
Partner, McInnes Cooper
“The growth of our company was possible because of the growth and success of our clients, many of which are either directly or indirectly employed by the industry. The offshore oil and gas industry significantly helped the people of our province by creating jobs and opportunities that otherwise would not have been possible. The Newfoundland and Labrador oil and gas industry matters, and we need the federal government to recognize this and provide incentives to keep the industry going for generations to come.”
President, Alec G. Henley & Associates Ltd.
“Canadians need to use their common sense now more than ever in order to see the wisdom of properly using our natural resources to sustain the positive society that we have inherited. All natural resources – oil, gas, fisheries, forests, mines – should be responsibly harvested using environmentally sensitive methods which allow our social and community inheritances to prosper. We believe in and support a Newfoundland and Labrador oil and gas industry that will become a world leader across all relevant social and environmental indices.”
President, Fermeuse Enterprises Limited
“I have been blessed to have had a career of more than forty years in the oil and gas industry in Newfoundland and Labrador. As a business person and human resource professional I have worked for, partnered and owned a number of businesses servicing the Newfoundland and Labrador oil and gas industry. I am proud that I have been in a position to hire hundreds of young people from our province in good paying long term careers, many of whom had gone on to senior management within their organizations.
I can’t imagine the situation Newfoundland and Labrador would be in over the past forty years without the oil and gas Industry.”
Business Development, Horizon Maritime
“Cahill’s involvement in oil and gas was a catalyst for growth that provided years of gainful employment, and exposed post-secondary students to meaningful careers at home and across Canada. A strong, local, oil and gas industry will drive additional investment allowing our best and brightest to build a future here in Newfoundland and Labrador.”
President, Cahill Group
“Over the last number of years we have partnered with many organizations in the offshore oil and gas industry to recruit for positions here in Newfoundland and Labrador. This grows the community and the economy. As a result of the current crisis, our service requests are reflecting a shift to now helping companies and their employees work through outplacement in the offshore oil and gas industry.”
“Our ask is small in comparison to the billions that the Canadian Government has received over the years from Newfoundland and Labrador’s offshore industry. We are not asking for a hand out. We are asking for a hand up. Investing in our offshore significantly contributes to the economy of Canada, ensures that thousands of Canadian’s are employed and our industry remains globally competitive. It is time to show strong leadership by Prime Minister Trudeau for all Canadians and the future of Canada’s economy by supporting our offshore industry.”
President and Owner, K&D Pratt Group Inc.
“The Newfoundland and Labrador offshore oil and gas industry are important to PF Collins, as it has allowed us to grow and employ highly skilled Newfoundlanders and Labradorians, recognized worldwide as leaders in logistics.”
Vice President, Business Development, PF Collins
“Esteem Women Inc. is just one of the many examples of the offshore industry investing in people and communities in Newfoundland and Labrador. Founded from funding from the Hibernia project, our non-profit organization has introduced more than six thousand girls and women from communities in rural Newfoundland and Labrador to careers in science, technology, engineering and math.”
Executive Director, Esteem Women Inc.
“The partners we had lined up to work with us on our projects are all taking ‘wait and see’ approach to research and development contributions. The oil and gas industry is so interconnected to the technology industry here. Everyone loves technology but, at least here in Newfoundland and Labrador, it’s been built by oil and gas.”
President, Engage Creative Technologies
“When Newfoundland and Labrador’s offshore does well, the whole province prospers. The oil and gas sector has supported the business community and has provided employment for many Atlantic Canadians. Investment from the Government of Canada will clear the way for Newfoundland and Labrador to unleash the full potential of its oil and gas sector, grow the economy, and keep Canada’s offshore internationally competitive.”
CEO Atlantic Chamber of Commerce
“As a local technology company our growth over the last 29 years is directly related to the success of the surrounding industries in Newfoundland and Labrador. This is especially true with the offshore industry. A strong, supported offshore industry helps to strengthen us all.”
Director, Business Development, Triware Technologies Inc.
“Cougar Helicopters headquartered in Newfoundland and Labrador employs 250 professionals and is an essential link to the offshore. We have invested heavily in a dedicated Search and Rescue service and a new $50 million facility. Without oil and gas our organization and the careers associated with it are in real jeopardy.”
Chief Operating Officer, Cougar Helicopters
“It is critical the federal and provincial governments work together to ensure the success and long-term prosperity of the offshore oil and gas industry in Newfoundland and Labrador. As part of its supply chain, it enables the manufacturing sector to generate business and jobs for manufacturers throughout the province. Offshore oil and gas is the number one driver of GDP after government.”
Divisional Vice-President, Newfoundland and Labrador, Canadian Manufacturers and Exporters
“East Coast Catering (ECC), provides delicious hot meals and clean living conditions on-board many offshore oil & gas operating units off of Newfoundland & Labrador’s coast. Before the COVID-19 pandemic, ECC proudly employed 215 diverse associates. Of those, 99% are residents of NL and more than 40% of our team represents women, First Nations, new Canadians, and persons with disabilities. The COVID-19 pandemic continues to impact our company and its workforce with both offshore production vessels and drilling rigs ceasing their operations. While ECC’s financial losses are great, the economic impact for many of our dedicated employees and the impact on their families is even greater and more far-reaching. We request that the Federal Government, a long-term partner in NL’s offshore, support our local offshore oil and gas industry to ensure it remains viable. Our future and the future of our employees and their families depends on it.”
Michael H. Deley
East Coast Catering
“The offshore oil & gas industry fostered a renewed sense of pride and hope in our province – pride in the contribution we were making to the whole of Canada, and hope by so many of us that we could stay here and plan a future. Our company has prospered over the last 20 years, building communities that are lived in by many who work in our offshore. With so much uncertainty today, people are losing hope. We have seen a massive drop in demand for our products and services.”
Chris Hawco, Manager, Rockwood Homes
ADT stock soars 65% after $450 million investment from Google – CNN
Alibaba Boosts Investment in EV Maker Xpeng Before New York IPO – BNN
Chinese electric-car startup Xpeng Motors is raising more funds from Alibaba Group Holding Ltd. and other investors ahead of its planned initial public offering in New York, according to people familiar with the matter.
Qatar Investment Authority also is one of the backers putting in another $300 million total in Xpeng, said the people, asking not to be identified because the matter is private. That expands Xpeng’s pre-IPO funding round announced last month to $800 million. The increased funding reflects investor demand, one of the people said.
The Guangzhou-based carmaker still may add to its haul before the IPO, the people said, as investor interest in electric vehicles increases following gains in shares of Tesla Inc. and the U.S.-listed NIO Inc. this year. Xpeng competes against those two companies and a raft of other startups in China, the world’s largest EV market.
The company has filed confidentially to the U.S. Securities and Exchange Commission to go public as soon as this quarter, the people said.
An Xpeng representative declined to comment. A spokesperson for Alibaba, an early backer of Xpeng, confirmed the technology giant’s participation in the latest round, without providing details. Qatar Investment, a new investor, didn’t respond to requests for comment. The South China Morning Post earlier reported the increase in the funding round.
After years of developing cars and trying to boost their profiles globally, Chinese EV makers are taking steps to go public as the virus pandemic and economic slowdown squeeze the market, boosting competition. Li Auto raised $1.1 billion via a listing on the Nasdaq last week, and Hozon New Energy Automobile Co. said it would list in Shanghai as soon as next year. WM Motor Technology Co. is also weighing an initial stock sale in China as soon as this year, people familiar with the matter have said.
Read more: Tesla Gaining Ground Pushes China EV Bubble Toward Bursting
Xpeng delivered 5,185 units of its first vehicle, the G3 SUV, in the first half. It started deliveries of its second model, the P7 sedan, in July, shipping 1,641 units that month.
Meanwhile, the field is getting tougher, with the number of new Tesla registrations rising to a record in June, and BMW AG and Mercedes-Benz bringing out EV models.
©2020 Bloomberg L.P.
Father and Son Investment Bankers Describe Wall Street Regrets – BNN
(Bloomberg Markets) —
This Bloomberg Markets article is part of “The Only One in the Room,” an oral history of the Black experience on Wall Street.
When W. Don Cornwell joined Goldman Sachs & Co.’s investment banking department in 1971, he was a pioneer for Black men on Wall Street. When he left in 1988 to found Granite Broadcasting Corp., he saw a growing pipeline of people of color. Today, at 72, he serves on the boards of American International Group, Natura & Co., and is preparing to step off the board of Pfizer. He says he’s “incredibly disappointed” with Wall Street’s lack of diversity.
His son, K. Don Cornwell, 49, worked as a consultant at McKinsey & Co. and in corporate development for the National Football League before following his parents to Wall Street. After an 18-year career at Morgan Stanley, where he became head of global sports investment banking, he joined PJT Partners Inc. as a partner in 2015. Like his father, he says he’s been disappointed that Black men and women remain so rare on Wall Street.
They spoke with Bloomberg Markets about their experiences and proposed some solutions. The interviews were conducted separately. Their comments have been combined and edited for length and clarity.
W. Don Cornwell: Going to Wall Street was really an outgrowth of wanting to start a business, and I knew that Wall Street would teach me how to raise capital, which was essential. Having ended up at Harvard Business School, I decided to take the investment banking course. I was approached by a professor, Sam Hayes, who suggested that I think about investment banking as a field. That’s how I actually came to be introduced to Goldman Sachs.
I’m pretty sure I was the first African American that they hired into the investment banking area. I learned about a year after I joined the firm that Goldman had been sued for hiring discrimination by an African-American student at Stanford, an MBA student. About a year after I joined he reached out to me. He wanted to make sure I knew what had happened. And, in the same period, the hiring partner at Goldman also reached out to me. He wanted to tell me what had happened. Interestingly enough, both individuals pretty much had the same story. The facts weren’t really in dispute. It was not a good or lawful interview, I think is the best way to put it, that this young man had with the hiring partner.
I’m very grateful to that student for having the courage to call out an act of discrimination. It frankly probably cost him any opportunity to work on Wall Street, which he presumably wanted, and it likely got me my opportunity, even though I didn’t know it when I got hired. I don’t think it was an accident I got hired. I think that they were aggressively looking to recruit persons or a person of color and I happened to be by pure happenstance in a class with a respected professor of investment banking who thought I had the capacity to do the job.
K. Don Cornwell: Both of my parents were in finance so it was something that was around my household growing up, with my dad being an investment banker and mom being in fixed income. I got to college and started spending my summers working as an intern at Goldman Sachs. I was a big math person so I thought finance was a real career possibility.
When my mom and dad were on Wall Street they were pioneers, but by the time I got to Morgan Stanley in 1998 there were actually quite a few Black people I could look to as role models. There were a decent number of Black professionals who were in the prime of their careers that seemed to be thriving. I just assumed that things would continue to get better, but that didn’t happen. I think back to my associate class coming in—not just at Morgan Stanley, but across Wall Street—and there were a number of people of color. However, we are not experiencing the same numbers these days. The Black bankers that started on Wall Street around my time period and thereafter have not stayed around. Thus, you don’t have as robust a group of senior Black people on the Street compared to when I started in 1998.
W. Don: I was 23 when I joined Goldman Sachs and was too young and inexperienced to realize that when you join a firm you need to have someone who really wants to help you succeed—to be invested in your success. I’ll be blunt, I didn’t have that. So I kept my head down. I worked hard within the firm.
Almost by accident I finally got what I would describe as a sponsor, a mentor, you know, call it whatever you want. I got a boss who was personally invested in my professional development and in my career, his name was Peter Sacerdote. He became the head of the corporate finance department when I was by coincidence about to leave the firm because I had become a co-single parent of my son. His mother and I believed in sharing parenting as we were going our separate ways and I knew that was going to change my ability to be a typical investment banker. Peter asked me to consider taking a managerial role, which he thought would help him a lot but would also provide me with much greater scheduling flexibility. So I took the job.
And what really struck me was that Peter immediately began to treat me like someone he wanted to succeed. He gave me a lot of great advice, he talked with me candidly about the fact that I was essentially taking myself off the path likely to lead to a partnership. In those days you really needed to be in a client-facing role. He explained to me that I should keep the ability to stay in the client-facing part of the world so he structured something which allowed me to do both.
When I left in 1988, I wasn’t a partner but I had a lot of responsibility, including the authority to do consequential things such as in hiring. And when I walked out the door there were a decent number of young African Americans who had been recruited into the firm on my watch in different parts of investment banking who I thought should have a shot at having constructive and rewarding careers at the firm. As I looked back later, I realized that virtually all of them were gone and it really brought home to me that unless you do something that is either structural or intentional, you’re just going to keep getting the same results. I had good relationships with many of my peers at Goldman as I left the firm but I fault them for not having done more to build a diverse talent pipeline. I also fault myself, let’s be candid—maybe I could have been even more active and impactful during my years when I was a part of managing the corporate finance department.
Success in a firm like Goldman Sachs is a function of talent as well as having the best opportunities for client and internal exposure. I did OK with clients. It is the internal assumptions which can really be devastating. The only partner in my area of the firm who nurtured my development was, ironically, the hiring partner mentioned earlier. I was almost never assigned to a company based in Texas, Georgia—the South—and Goldman had many clients in those states. I think that there was an implied assumption that clients might not be accepting of an African American, and so therefore I didn’t go to any of those places. Which basically meant I was not in a position to get as much exposure to key clients or frankly to key decision makers in the firm.
K. Don: The staffing process is a place where all sorts of bias can creep in. Whether somebody is deemed to be highly sought after generally has to do with their talent in terms of their investment banker skills, but a lot of it is “fit.” What we have seen over the years is that people of color have really lost out during the staffing process. They are not getting premium projects, which can negatively impact how people perceive their talent level.
When you look at African-American managing directors on Wall Street the vast majority have come from product groups—capital markets, sales and trading, and M&A. You very rarely see any who have made it up through the system in a coverage area. Why? My theory is that there can be bias in how clients pick their banker and generally clients make decisions based on their relationship with their coverage banker.
Clients constantly have coverage bankers coming through pitching their services and sometimes they are hard to differentiate. Let’s say one grew up in the client’s home town, has kids at the same school or is a member of the same golf club, while another may be equally talented, but doesn’t share the social ties. In a jump ball, the guy who has those ties has a significant edge. Given the make-up of the C-suites of corporate America, a Black banker is less likely to share those social ties.
One thing I always joke about is that working in the sports world I have the advantage that when I walk into a room with a team owner, I’m generally not the first person of color they have done real business with. They deal with Black players and agents all of the time so they are very comfortable doing business with somebody of color. That’s not necessarily the case in most industries.
When a talented person of color shows up at an investment bank, we need to make sure they are put in a position where they can succeed. This means being thoughtful about their staffing, group placement and industry focus. If we don’t focus on this, it will be really difficult to see any meaningful change.
People tend to assume that I do sports and gaming work just because I love sports and gaming, and part of that is true. There’s no question that I’m a huge sports fan and I really do enjoy my industries. Given my NFL background, I’ve got relevant experience and a good network. But the fact of the matter is, I ended up in sports due to a lack of other great focus area opportunities.
I sat in the M&A group of Morgan Stanley and for my associate years I got to work on great things with great people. In my early vice president years I stopped getting premier staffings so I had to get entrepreneurial. The business of sports was something that was becoming more relevant to Wall Street and I knew that I had a unique network and set of experiences. I made the decision to make that a bigger part of my portfolio. It wasn’t as if there was a sports groups at Morgan Stanley that I joined, I just created it. I did it because I wasn’t getting put on the best accounts and projects and there were people who had the same skillset that were getting better projects to work on. While it was unfair, it was the best thing that ever happened because I put myself in a position where I get to work on things that I really love and enjoy.
W. Don: I’m incredibly disappointed with where Wall Street is today. As a proud father I can say that I think my son is a star banker, but he’s relatively lonely as an African American in his field, which I think is sad.
Creating successful African-American professionals is only going to happen if it’s intentional and it’s from the top. Firms and corporations set performance measures for top management and should meaningfully incorporate diversity in those measures as advancement, pay, and rewards are determined. Boards and CEO’s have to measure management’s success in developing people and insist on investment in talent to achieve excellent outcomes. People respect what you inspect. If [Goldman Sachs Chairman and Chief Executive Officer] David Solomon can tell the world Goldman Sachs won’t take a company public without gender diversity on the board, he can say the same thing about ethnic diversity and make it happen.
And quite frankly, if the Goldmans, and Morgans and JPMorgans are serious, they would expect their vendors to respect those values as well. If a firm values diversity, then I see no reason why its law firms and accountants and consultants can’t annually provide a report on their diversity pipeline and outcomes. There are major companies that do that and vendors do pay attention and make progress—especially when it is important to clients.
K. Don: If you hire somebody of color that you think is going to be a star, you need to invest the time and effort to make sure that they are getting a fair shake. Because over the last 50 years there has not been a fair shake.
Beyond the staffing issue I mentioned, here is another way this impacted me: Often in my early days as a banker, I would get a comment in my reviews that would say, “We’d like to see Don be more aggressive in meetings with clients and, you know, raise his voice more and show a higher level of excitement.” Year after year I would get that comment. One of my mentors told me to forget about it because the last thing your colleagues want is for a 6-foot, 5-inch Black guy to go into a conference room meeting and start screaming and yelling—they might end up calling security! He was kidding but there was some truth to it.
What I don’t think the people who wrote those comments were thinking about is that every day I walk into a room, I’ve got to think about how my physical appearance makes people feel. People talk about the “Black tax”—for me the Black tax at the office is the time I have to spend thinking about how people are going to react to my appearance. It’s the time that I have to spend dealing with all of the various issues around the potential for bias—looking for it, trying to avoid it or addressing it when I see it, especially as I’ve gotten more senior.
I talk to junior Black investment bankers at a lot of different firms. They can hopefully learn from what I’ve gone through and frankly what people before me went through. I think about my parents, and what they had to deal with in the ‘70s and ‘80s. Compared to them, I’ve got it easy. I can’t imagine my mother being on a bond desk in the late ‘70s on Wall Street as a Black woman. She was tough as nails and she dealt with all sorts of crazy stuff.
I’ve come across very few people in my career who I actually think are blatant racists. There’s just so many people who are naïve. One of the questions I like to ask people—especially over the past couple of months when people come to talk to me about the topic of racial equality—is: “How many Black people do you have in your cell phone other than just because your corporate directory has Black people in it? Who do you speak to on a day-to-day basis who’s Black? Most likely you went to school and worked with Black people—how is it possible you didn’t make friends with any of them?” Reflecting on that is a good start to making some progress.
The leaders of Wall Street firms have to hold people accountable, and the way they can be held accountable is financially. If you want a banker to act a different way, you impact their compensation. What we can’t have is a world where a high-producing banker who contributes to racial bias gets paid the same as a high-producing banker who doesn’t. Organizations have to look around to find where they think there might be issues of bias and get rid of it. Review and re-evaluate every single process they have even though there may be some that are “tradition.” If the retention issue is solved, then you’ll see more senior Black bankers—and hopefully we create a wonderful virtuous circle where new entrants have an easier time rising through the ranks.
Tan covers finance for Bloomberg News in New York.
©2020 Bloomberg L.P.
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