The New Reality: Part Two

I am not in the business of making predictions about whether we are in an economic recovery or not. But it is very much my business to strongly encourage current and future clients, to act with a sense of urgency during times of extreme uncertainty. That is the purpose of blogging on this topic. 

The Perfect Storm

Once again, there are sweeping changes taking place in the world of which the affects are still to be determined. Paying attention to reality and not the spin from politicians and economists is mandatory for working our way back into recovery, my guess is 2011- 2012. (I listed the reasons why in my previous blog)

However, if during this 'grinding' period of slow growth-no growth, you are willing to think, change, plan, prepare and begin to execute with a new strategy, the result can be incredible innovation. And that is why I’m an optimist.

I was living in Calgary during the recession in the ninety’s. The oil industry and therfor the city were hit extremely hard. Oil prices had collapsed, government deficits were out of control and layoffs were happening by the thousands. Yet amongst it all, a perfect storm was brewing.

The large producers were facing incredible pricing pressure. Companies like Petro Canada and Shell Canada could not afford to risk exploring for smaller fields in Alberta and Saskatchewan so the assests were sold. Nor could they afford to keep much of the high priced talent on their payroll.

The economy in the east was arguably in worse shape and the now popular mutual funds, needed to find investments beyond their normal geography of Ontario. Along came a man named Rob Peters, whom believed the smaller companies in the oil patch needed their own specialised service for raising capital. With a vision and a dream he started a brokerage firm called Peters and Company.

So with loads of unemployed, talented geologists and engineers, availability of cheap land with producing assets, and a sweet spot opening up in the financial markets, the Jr. oil and gas market was born.

It was enough of a market to almost call it an industry. Either way, it was definitely a phenomena which produced world class energy companies, hundreds of multi millionaires and even some billionaires.

Is your perfect storm brewing? You know it’s out there somewhere but you must face the reality that we are probably in for a longer haul than what is being forcasted. For you take advantage of these times and leverage the power, you will need to have some vision and then position yourself and your company accordingly. So get moving.

Have a good week,

Kevin