The finishing kick in a marathon can be gut-wrenching, something that accomplished marathon runner Clive Mather knows only too well.

But Mather's career marathon with the Shell group is another story. In his 35th year with Shell, the 57-year-old Mather feels a sense of rejuvenation in his latest role under the Royal/Dutch Shell banner as chief executive of Shell Canada, which he assumed on Aug. 1. It was always a job that the well-travelled Mather, previously chairman of Shell UK, had coveted.

And, judging by Mather's youthful exuberance over his latest challenge and Shell Canada's ramping up of expenditures for 2005, it's apparent that Shell's marathon man is not in any great haste to hit the tape at the finish line of his career.

1. So what's it been like moving from London to Calgary?

Mike Sturk, Business Edge
Clive Mather says he was shocked and distressed by the recent accounting scandal at Royal/Dutch Shell: “The simple truth is, we screwed up.”

"Uniformly great. It's a wonderful city. I really like the traffic systems. It's the most user-friendly traffic flow I've ever been in. I found it easier to get around Calgary after a week or two than I ever did around London in years and years of trying. You have a logical system of numbering streets and roads which the rest of the world should follow.”

2. What were your ambitions as a youngster?

"When you're young, you have many ambitions that in real life change somewhat. I went through all the usual things of wanting to fly airplanes, join the air force and so on. But my abiding ambition as a young man was to travel. I was in college in the Sixties, which was this extraordinary decade of change. The world was becoming to open up. It wasn't just the music, although that was very special. But for the first time you could start to go places to meet people and experience quite different ways of living. So when I left university and started thinking about a career, I targeted those companies that would offer me an international experience. And I chose Shell. My passion for travel has never abated. Shell has given me the most wonderful experience. When I reflect on my 35 years with Shell, wow, have I ever had an opportunity to see the world - I've lived in six countries.”

3. What did your parents do?

"My father was an engineer and an artist, an interesting combination. His real passion was art and later on his life he concentrated on that. He was a remarkable sculptor, particularly wood sculpturing. My mother was that wonderful thing called the glue of the family. She was the matriarch who kept all of the children and Mather family in order.”

4. How do you think your upbringing may have contributed to your success in business?

"That's a profound question, if I may say so, and I'm not sure I would really take it on. The thing I would observe is that parents can only really give children two things. One is roots and the other is wings. And that's what my parents gave me, my three brothers and my sister. All of us had a great sense of what a family is and the support that that contains. We were also given every encouragement to do our own thing and we've all gone off in different directions to do just that.”

5. Can you remember your first day on the job at Shell in the U.K. 35 years ago?

"I started on the night shift at a refinery. So I actually started operating a distillation column, which sounds rather grand. But dressed in your unfitting overalls late at night, it was a pretty interesting experience and a lot of guys knew more about it than I did. Starting at the bottom of the business is a good place. You really learn about how things work, how people get on and, frankly, what the commercial proposition is. I look back on that with great affection.”

6. So on your first day with Shell, you were thinking, 'Gee, in 35 years I'll be the CEO of Shell Canada?'

"Would I have ever dreamed that? I don't think so. People look back on a career and say, 'How could I have been here 35 years?' But it wasn't like that at Shell, because you could move around and do different jobs. You constantly were changing and adapting. No, I never imagined that I would stay at one company for all of that time. But then I never also imagined what fascinating opportunities would emerge and each day that I was thinking that it was probably time to move on, Shell came up with something else.”

7. So what was your response when the opportunity arose at Shell Canada?

"I was of course amazed. I had to pitch for it. It was not intended that I should be here, because Linda Cook (Mather's predecessor) was and is a great CEO and under normal circumstances she would still be here. But there were significant problems in terms of the group (Royal/Dutch Shell). And in the process of resolving problems around reserves reporting, we lost our chairman, Phil Watts (who resigned over the scandal), and also a couple of other senior people. That prompted the need to bring in one or two extra people and Linda was somebody with such ability and potential that she was an obvious and a great candidate to go sit in the senior level (as managing director). That created a gap in Canada and, when the board started the selection process, I was asked if I would be interested to apply. I said, 'You'd better believe it.' If there was one job at Shell that I had always wanted to do, it was this job. I never, ever thought it would come up. But it did and I put my hat in the ring. And, well, here I am.”

8. Why is this the job you'd always wanted?

"Well, two reasons. One is that Canada is a spectacular country which I had come to know a little bit from my earlier travels. It's hard to describe to outsiders how beautiful this place is. Even Canadians get almost blasé about their country. But it's breathtaking. The other thing is that we've got a great business here. There's no two ways about it. It's not only a good business in the sense of a profitable organization run by good people, but it also has some of the most fascinating prospects that you'll find in the oil and gas sector. And the combination of those two things makes it, to me, the best job to have.”

9. How did the scandal over reserves accounting at Royal Dutch/Shell affect you personally when you'd spent your entire working life with the Shell group?

"It was distressing and it still is to a certain extent. There are legal matters still outstanding, so it's hard for any of us to talk through the whole episode yet. But the simple truth is, we screwed up. The accounting process did not go as it should have and we became out of touch with the strict (U.S. Securities and Exchange Commission) guidelines. When I'd heard that, I was shocked. I've spent my career working with good people, all of whom I regarded as being quite conservative around these sorts of things. And if you'd have asked me, 'Could it happen at Shell?' I would have said no. Our culture was one of compliance and our culture was one of professionalism. The first thing to do about it was to take on board the lesson in terms of the specific requirements from the SEC throughout the organization, making sure we were 100-per-cent compliant with every letter of every regulation that is required. Secondly, it was important to reinforce our culture as one where not only is compliance important but that everybody has a responsibility to ensure that each other person follows the rules and, if they have any concerns, to raise them as quickly as possible to the top of the organization. It grieves me to say that that was necessary, because I still believe that Shell is comprised of the best people of any organization. However, the fact is that somewhere there was a problem and, as in any large organization, you're as strong as your weakest link. So our job is to deal with it and make sure it never happens again."

10. What are your most important priorities with Shell Canada?

"The first thing to acknowledge is that most people around here know a great deal more than I do. What I'm trying to make sure is that all the experience in energy that we have continues to be channelled into really good business. I must be amongst the most fortunate of all CEOs, because not only do we have businesses that are running well but we're also benefiting from some pretty favourable economic fundamentals in terms of growth, oil prices, gas prices and sulphur. So my first job is to keep all of that going. My second job is clearly now to look at the growth agenda. We have these good businesses and we have these good growth prospects - so we have to ask, how do we marry the two together and turn Shell Canada into a major force in the energy sector in Canada?"

11. You recently announced a $1.8-billion capital and exploration expenditure program for 2005, a 60-per-cent increase from spending in 2004. Are you looking to change the direction of the company?

"Certainly, I think we have earned the right to grow. We have built a balance sheet which is formidable. We have built a lot of people capacity which is raring to go. And, on the technology and exploration side, we now have some really exciting opportunities. So we want to continue, but perhaps with a renewed focus and perhaps with some extra momentum. We have some core businesses in which we would like to organically grow but we're also active around the frontiers, both technical and geographical frontiers. In Canada, I think of the Beaufort Sea (prospects) and some of the fascinating plays that exist still around the foothills in unconventional gas. All of those are areas where we are looking to expand. While profitability of our existing businesses remains a priority, we will be putting more emphasis on our strong and diversified portfolio of growth opportunities over the next several years.”

12. Where's the most exciting potential for your company?

"The biggest single capital opportunity is in the oilsands. Alberta has a world-class resource in oilsands and we are literally at the moment scratching the surface, which is a bit of a play on words because of course the technology that we're using in the industry at the moment is essentially a mining technology. But there are a lot more reserves deeper down which we can get out. Overall, the oilsands opportunity is really a massive, massive play. However, we must not get carried away. First of all, we are enjoying very high prices today and that will not sustain. I can't sit here and predict what prices will be into the future, but I think all of us who have been around will say that there will be some correction. We also have to recognize that the scale of these projects is very, very demanding. In the early round of these projects, there was a struggle not just by Shell Canada but others in the industry to keep within cost and time. So now we have to take the learning from that first round and, as we develop these opportunities and grow our business, do it in a much more disciplined and orderly way. That's a big challenge for us.”

13. You've had some maintenance issues at the Athabasca Oil Sands Project that have hampered production. Do you expect to have those behind you soon?

"The immediate problems I hope we will resolve fairly quickly. We should be back up to speed very shortly.”

14. Shell Canada isn't currently hedging on commodity prices (a method of locking in a fixed commodity price for a specified period of time). Are you comfortable to move forward without a hedging program?

"That shouldn't change unless there is some significant development. To be honest with you, hedging does have its place in certain situations and at certain companies it's probably a pretty good strategy. But for us, I think we'd rather take the risk. I mean, that's what business is about, turning risk into reward. As a general rule, we just don't believe in hedging. We'd rather play the market - which is what our role is, frankly. Others see it differently and that's fine.”

15. There's been some talk in the oilpatch that Royal/Dutch may acquire the remainder of the shares in Shell Canada (Royal/Dutch is already a majority owner)?

"Well, I guess I'd be last one to hear (laughing). People can speculate about these things but I know of no substance to that. If Royal/Dutch Shell decided that it wanted to make an offer, I'm sure it would do it in the proper way. But there's no indication of that at the moment and frankly, it's just speculation.”

16. What makes a successful leader in business?

"When you distill everything down, it's about three things - the three P's. It's about purpose, it's about working through people and it's about a bit of passion. You've got to let individuals know what your purpose is, what you're trying to achieve. The second thing centres around people. Leadership is not exclusive to a single individual. Leadership is about enabling the organization to be more than it thinks it can be. It's about getting others to do things they didn't think they could do. The third thing is passion. There are thousands of obstacles that come along day by day and week by week. It seems the leader should be the one to keep the organization motivated to overcome obstacles.”

17. What's your greatest challenge as CEO of Shell Canada?

"This is a time of great opportunity for Shell Canada. We have an organization with lots and lots of potential. The challenge for me is to make sure that we take on only that which we can do well. There's always a danger when you try to take on too many things at one time. Although my instinct is always to be impatient and to get out there, I've just got to do things in a way that really, really ensures that we get the quality back from our efforts. That doesn't mean trying to do everything at once. It means trying to do the right number of things in the right way.”

18. Ideally, how long do you hope to stay in this job?

"As I sit here, with the sun shining and with a view of the mountains, I've got no intention of running away. I also have no intention of retiring. I don't believe in this talk about people going off and retiring. I've got a long way to look forward to. So I'm hoping to be here for some time.”

19. You're 57?

"I'm 57 but would I admit to 57? I don't look 57. Do I look 57? I was hoping to run the Calgary marathon next year. I've done it in London. I've run three marathons. I might try and raise some money in the process. The one thing I would say about marathon running, apart from it being great exercise, is that it does give you time to think. I always come back from a run with some great ideas. I also have dogs, so that's a great encouragement because the dogs need running too. I like all sports. I love hockey and, although I may be lean, I'm also a great fan of food and wine. I also try to create some time in the community and with my church.”

20. It's 2010. Are you sitting in a lounge chair or a CEO's chair?

"I would hope to be doing a big job for many more years but they don't necessarily have to be CEO jobs. One of the interesting things I've found in moving between chairman and CEO is that they are different roles but the experience of one greatly helps the other. I'm not hung up on being CEO, but I certainly hope to be doing a big job for some time.”

THE COMPANY: SHELL CANADA <

* Brass: Clive Mather, president/CEO; Cathy Williams, chief financial officer.

* Profile: Shell is one of Canada's largest petroleum companies, producing natural gas, natural gas liquids and bitumen as well as being the country's largest producer of sulphur. The company also manufactures, distributes and markets refined products through its Shell service stations.

* Stats: Shell recently announced a $1.8-billion capital and exploration expenditure plan for 2005, a 60-per- cent increase from spending in 2004; Shell reported record earnings of $451 million ($1.64 per share) for its third quarter of '04.

* Recent Stock Price (TSX:SHC): $75.40 (52-week range, $54.21-$79).

* Website: www.shell.ca

* HQ: 400 4 Ave. S.W., Calgary, T2P OJ4.

* Phone: 403-691-3111.

IN PROFILE: CLIVE MATHER <

* Title: President/CEO, Shell Canada.

* Born/raised/age: Stratford-upon-Avon, England/57.

* Education: Oxford University (history, business majors).

* Family: Wife Ann, three children.

* Career: In 35 years in the Shell group of companies, Mather's career has spanned all of its major businesses, including assignments in the U.K., South Africa, the Netherlands, Brunei and Gabon. Prior to being appointed president and CEO of Shell Canada on Aug. 1, Mather was chairman of London-based Shell UK and head of global learning in Shell International.

* Moonlighting: Mather has held many public appointments in the U.K., including commissioner for the Equal Opportunities Commission, chairman of the Petroleum Employers' Council and chairman of the Lambeth Education Action Zone.

He is currently chairman of the U.K. Government/Industry CSR Academy and chairman of the IMD Business Advisory Council in Switzerland.

* Passions: Running marathons, dogs, NHL hockey, food, wine.

(Gyle Konotopetz can be reached at gyle@businessedge.ca)