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To: ms.smartest.person who wrote (902)	3/31/2006 9:27:14 PM
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Canadian Oilpatch at 'Centre Stage' of Global Energy Industry By James Stevenson 30 Mar 2006 at 05:26 PM CALGARY (CP) -- The Canadian oilpatch has ''grown to centre stage'' of the global energy industry, New York Stock Exchange [NYSE:NYX] president Catherine Kinney isaid Thursday. ''I think energy is one of the most important industries in the world right now and I think Canada has really grown into a global presence in this industry,'' Kinney said in an interview. ''And so I think it's very natural for these companies to want to be on the largest equities market in the world and to enjoy that visibility.'' Kinney was visiting Calgary, the hub of Canada's energy industry, to drum up business and encourage more oil and gas companies to list on the NYSE. Of the 85 Canadian companies listed on the NYSE, 17 are energy producers. With oil prices near historic highs, the market's interest remains keen. The NYSE has had eight new energy company listings so far this year. Three of those were Canadian, including Baytex Energy Trust [TSX:BTE.UN] which began trading in New York this week. Along with greater visibility, the NYSE offers Canadian companies higher valuations and larger trading volumes, Kinney said. All of Canada's largest energy companies are listed on both the Toronto and New York stock exchanges and as a result, have an increasingly diverse shareholders group. Calgary-based Petro-Canada [TSX:PCA; NYSE:PCZ] says 52% of its shares are held in Canada, 40% in the U.S. and 8% elsewhere around the world. EnCana Corp. [TSX:ECA; NYSE:ECA] says Canadian investors likely hold less than 50% of its stock. Energy income trusts are increasingly seeking the dual listing to tap into substantially larger capital pools south of the border. ''The Canadian capital markets have been very friendly and treated us very well,'' said George Kesteven, president of the Canadian Association of Income Funds. ''But from a size perspective, the pockets just aren't deep enough. And to go and access capital - particularly the way the oil and gas industry needs it - a New York Stock Exchange listing is one way to accomplish that kind of access and liquidity.'' Since Enerplus Resources Fund [TSX:ERF.UN] became the first trust to list on the NYSE in 2002, eight others have followed, including new listings this year for Canetic Resources Trust [TSX:CNE.UN] - which was formed from last fall's C$5-billion merger of Acclaim and StarPoint - and Enterra Energy Trust [TSX:ENT.UN]. But rather than trying to poach business from the Toronto Stock Exchange, Kinney said a dual listing with the NYSE is the most effective strategy for non-American companies and tends to boost trading volumes on both exchanges. For its part, the Toronto Stock Exchange says it remains the world's largest public listings venue for energy companies and has a strong competitive position in the sector. ''We don't have any objection to inter-listing per se,'' said Rik Parkhill, president of TSX Markets. ''We actually find that we don't lose trading volumes, we gain.'' But the TSX said ''significant impediments'' remain to prevent U.S. retail investors from trading Canadian stocks in Canada, with virtually nothing to stop Canadian retail investors from trading U.S.-based securities. ''We would like to be able to compete on an even basis with U.S. stock exchanges,'' said Parkhill. ''The U.S. market, in many ways, is the most protected securities market in the world,'' he said. ''We've got free trade in oil and gas - Americans are happy to buy our oil and gas and view us as a secure supplier - but it would be nice if U.S. investors were as free to buy the shares of the Canadian companies that provide that oil and gas.'' © The Canadian Press 2006 © Copyright 2006, Resource Investor. resourceinvestor.com