Blogs & Comment

Bye Bye Petro-Canada

Back in the 70s, and 80s, Petro-Canadawas a primary government stategy in Canadianizing the energy industry. Those of us with a few years under our belts will remember Gulf, BP and Fina gas stations, all of which were swallowed by Petro-Canada’s aggressive acquistion programs. Between 1976 and 1996, in addition to the previous companies, Petro-Canada acquired Atlantic Richfield Canada, Pacific Petroleums, the propane assets of Inter City Gas and the Canadian assets of Amerada Hess. The total value in today’s dollars for all these acquistions was $13.2 billion. The average inflation adjusted price of oil during those 20 years was about $US46 per barrel. Now Suncor Energy Inc.is offering to acquire Petro-Canada in a share swap deal that values Petro-Canada at a little over $19 billion. To consumers, Petro-Canada, with over 1,300 gas stations is the more visible entity. Suncor brands its 490 stations under the Sunoco, Pioneer and UPI banners. If this deal goes through, will the maple leaf gas station signs go the way of Fina, Gulf, BP, Supertest, BA, White Rose and Texaco?