How $80 oil could be bad for Calgary diversification

When Adam Legge was named Calgary Chamber of Commerce boss in 2010, oil was over $75 US a tub and anticipating downtown bureau space was a chore. Much has changed. But Legge remains a steadfast follower in a city and innovation.

Before Legge made his exit from the chamber this month, he spoke to CBC News about Calgary’s prospects, how another oil bang could mistreat diversification and possibly a “cowboy” stereotype is bad for business.

Legge joins the University of Calgary in Jan as a executive of a Global Business Futures Initiative.

Q: Calgary has seen a lot of change over a final 10 years. Looking out over a subsequent 10 years, what do we consider we’ll see in terms of what Calgary looks like economically?

A: In 10 years we’re going to demeanour behind and say, ‘OK, we consider we’re starting to feel like we’ve got a slit back.’ we indeed consider it’s going to take that long. And when we contend that, it’s above and over arrange of vouchsafing oil prices arise and vouchsafing that be a determinant of a future.

Energy is a outrageous partial of Calgary’s past and future, though a city needs to continue to variegate a economy, Legge says. (Leslie Kramer/CBC)

I am articulate about genuine estimable new association origination and new mercantile growth, new pursuit growth. It’s going to take a while simply since what was mislaid from a oil and gas was so significant.

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Long term, we am confident about Calgary. we consider it has implausible resources that any business or any chairman would kill to have: high peculiarity of life, implausible location, protected environment, fast government, order of law, rarely prepared people.

Q: What is a pivotal for us to stay on track, or even get on that track?

A: we consider we’re on a right track, to be honest. we see a work that people are doing in technology; we see a work they’re doing in agriculture. I’ll be honest, a approach to stay on this track, and it sounds substantially terrible to many people in a industry, is to not let oil prices get behind to $80-$100 a barrel.

As shortly as that happens, everybody’s eye goes off a esteem and we’re behind to a same old, same old.

Legge believes Alberta can be a universe personality in appetite record and agriculture. (Terry Reith/CBC)

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If Alberta and Calgary unequivocally wish to diversify, reduce appetite prices are substantially a best approach to get there since it will force a palm to commend that … we can’t rest on it to expostulate us out of an mercantile downturn and that we have other people and other resources we can use to grow. And I’m not observant that we don’t wish a appetite zone to succeed.

I positively do. It’s been a outrageous partial of a story and it will continue to be a outrageous partial of a future.

I consider what we got carried divided with was, notwithstanding a good work of a companies and notwithstanding a innovation, we were roving mercantile expansion that unequivocally wasn’t being driven by us. It was being driven by a price.

Q: What can we do to continue this impetus toward diversification?

A: we have always been a large fan of putting down some flattering confidant bets … and we don’t meant that a supervision should be investing in companies per se though investing in a things that we indeed have a possibility to be universe leaders in.

We’re not going to be a universe personality in nanotechnology. We’re not going to be a universe personality in batteries and electric cars.

But we can be a universe personality in appetite technologies, we can be universe personality in agriculture.

We can be universe leaders in opposite elements of a record sector, so let’s figure out what those are going to be and let’s unequivocally double down on those.

And that comes from possibly some of a investigate funding, a extend funding, a origination that happens both in companies and within universities.

Everybody loves a parade, though Legge says Calgary still suffers from a classify of Stampede, cowboys, trucks and oil, “which is not a really innovative stereotype.” (@CSParade)

Q: Do we consider Calgary is removing a repute as a place for origination or do we still have some stretch to go before we get there?

A: we consider there are pockets of it though we consider as a city, overall, we don’t consider it’s noticed (that way). we consider we still humour from a classify of Stampede and cowboys and pickup trucks and oil, that is not a really innovative stereotype.

I consider places like Waterloo and Vancouver are deemed to be some-more innovative within Canada, so we’ve got some work to do to change that perception.

Q: Is that a classify or is that loyal that we’re not that innovative?

A: we really consider there are some zones where we’re not innovative. We got restored in $100 oil and we don’t consider we were all that innovative during that time in a large picture.

Our city council, their best efforts notwithstanding, have hold behind some innovative process and opportunities for Calgary to be a place that shows that it can consider progressively. So, yes, we can do a lot better.

This talk has been edited and precipitated for clarity.

Article source: http://www.cbc.ca/news/business/legge-oil-diversification-1.4465820?cmp=rss