What sprouted at an Alberta university in the early 1980s as a small side program designed to teach Canadian energy expertise to developing countries has grown into a mighty tree of knowledge spreading worldwide, proponents say.

Sixty students from 12 countries last week completed the executive program, a four-week course and the cornerstone of the Canadian Petroleum Institute (CPI), a not-for-profit organization whose aim is to create value for its international clients as well as the Canadian petroleum industry by sharing Canadian management and technology know-how.

These students, most representing the brightest upcoming executives from their respective countries, joined the 2,000-plus graduates who have come through the program since it began operating 23 years ago.

"Essentially the entire (Canadian) petroleum industry, from A to Z, has elements that the Canadian Petroleum Institute is able to touch on," says Craig McDonald, CPI's interim president. "And through our network of contacts in the Canadian industry, we are able to pair up opportunities for the demands of these foreign nationals.

Dave Olecko, Business Edge
The classes that the Canadian Petroleum Institute offers as part of its executive program are considered in many countries a must for senior oil and gas posts.

"An important element of this process is marking future opportunities for Canadian businesses, but also collaborative, co-operative relationships that allow these foreign students, over a period of weeks, to form incredible networks and affinity with other people from different countries."

In 1982, a group of Canadian professionals, academics, and executives developed an international initiative at the University of Alberta. The resulting summer program, which drew ex-patriots from around the world to Edmonton (and later to the University of Calgary), led to the inception of the Canadian Institute for Petroleum Industry Development (CIPID) in 1993, which eventually became known as the CPI.

Program participants first spend two weeks at the University of Alberta in Edmonton where they, after being exposed to a global petroleum overview followed by a course in strategic planning, have a choice of three tracks: The management track; a natural gas track where they'll be exposed to natural gas processing and refining, petrochemical industries and natural gas markets; or a third track related to upstream exploration and drilling.

Once the program moves to the U of C in the third week, the curriculum changes. Those enrolled in the management track learn about capital-financial markets and discuss issues around privatization of national oil companies. The natural gas track, meanwhile, delves into more detail, exposing students to gas operations in Calgary and the surrounding area.

Stuart McDowall says he knows firsthand - though his experience during 37 years representing Canada abroad in the Foreign Service - just how well regarded CPI is in the global petroleum industry.

"This summer program is considered in many countries as a stepping stone, a course you have to take if you want to progress into senior management," says McDowall, a former diplomat and now a senior associate with CPI. "Many people have gone on to be (company) presidents, deputy ministers and ministers in their respective countries."

In recent years, Asia has been better represented than other world regions, which McDonald says reflects the sophistication of Asia's petroleum sector, better matching that of North America than do the African or South American industries.

"Canada is the third-largest natural gas producer (worldwide), so we have a lot to offer China with respect to natural gas technology, as well as expertise in that field," says Philip Shum, president of CPI Asia. "In China right now, natural gas makes up only about three per cent of the energy mix, leaving a lot of potential for them to grow that component."

Shum adds that the executive program allows Chinese students to become more accustomed to dealing with other cultures, an important feature given that Chinese energy companies are now beginning to operate around the globe.

McDonald, meanwhile, acknowledges that CPI has likely had some role in cultivating the good relations Canadians currently enjoy with the Chinese energy industry. But "at the same time, it might be a little presumptuous to say that we are a big part of that," he adds.

Dave Olecko, Business Edge
Craig McDonald, president of the Canadian Petroleum Institute, says the Middle East is under-represented among the students.

"There's no doubt in my mind that (the Chinese) need a lot of energy and we have a lot of energy to provide them, and we could have a mutually beneficial relationship with them. China's demographics dictate that ultimately it's a very important market for energy in the future."

McDonald adds that Canadian energy companies have benefited from CPI's efforts, as the institute also functions as a point of contact between international oil and gas clients and Canadian business.

"Many of the students that do come to our program actually rise to influential positions within their respective companies and can be very useful contacts in developing business relationships in the future."

Looking ahead, McDonald says CPI will focus on delivering training to more countries in the Middle East, which he believes is a growth area.

"Our consultants have already been engaged over there and we foresee creating a training program which we will implement over the period starting this October and into 2006."

(John Ludwick can be reached at ludwick@businessedge.ca)