ECL provides transportation, product handling, and oilfield specialty chemicals and fluids.

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Founded in rural Alberta in 1947, the company began with one client, United Farmers of Alberta (UFA) Cooperative Ltd., and did business “on a handshake,” with no contracts until 2002, Davis says. It continues to work with its longest-standing client, but now under a more formal arrangement following a change of management at UFA.

The company has grown its customer base to include a wide range of clients. In the 1980s, the company began to diversify, and by the late ’90s, its holdings included nine separate companies and 16 business units. In the last five years, it has focused its operations, selling some businesses and concentrating on two core business units. ECL Transportation is a specialty carrier of petroleum and propane in Western Canada, and also offers coast-to-coast dedicated freight service.

The other business is Innovative Chemical Technologies Canada (ICTC) Ltd., which serves the oil and gas market, handling fracturing fluids, drilling fluids and formulated chemistry for the oil and gas production market. Both companies serve customers primarily in western Canada, but do business coast to coast and into select markets in the United States.
 
Focus on Relationships
With a complement of 500 employees, ECL operates from three offices in Calgary, three in Edmonton, Alberta; one in Hay River, Northwest Territories; one in Barrie, Ontario; and one in Winnipeg. It also maintains driver groups in various parts of Canada, including the Maritimes and British Columbia, Davis says.

He says the company’s people set it apart from competitors. “We very much focus on the relationships we build with customers, suppliers and the people within ECL,” he says. “What differentiates us in the market, on the oilfield chemical side, is our products and research capabilities. We have a state-of-the-art laboratory in Edmonton, our own manufacturing facility and highly skilled technical people to provide the value-added service to the market. It has also made strides in its chemical research.

“Our business success is based on products. We’re extremely proud of our research group and the skill and technology they’re bringing to the market. On the transportation side, it’s people and service, and throughout all aspects of our business, it’s our attention to safety. Virtually all our products require unique knowledge and skills for handling.”

This means the company has many regulatory requirements for training, he adds. ECL spends a lot of time keeping all employees up to date on permits and certifications and providing additional training that goes beyond what is required. “There’s regulatory training and our standard, which is higher than a regulated minimum,” he says.
 
Uncertain Market
In the Alberta market, where ECL has a significant amount of its business, there is currently a lot of volatility around the oil and gas business, Davis explains. “The provincial government has recently conducted a royalty review and [its] decision was released in late October,” he says. “The royalty structure will increase significantly for oil and gas companies doing business in Alberta. Now is when the detailed analysis is being conducted to determine the impact on the 2007/2008 drilling season. We don’t know the full impact of that yet.

“With an additional $1.4 billion in royalties being paid to the province, drilling and exploration programs will be reduced or deferred,” he continues. “The price of oil and gas are fluctuating. Oil in the $90 a barrel range and gas under $8 is very low, so there is uncertainty in the market. A lot of the drilling activity is for shallow gas, a market where they look to sustained prices $9 and $10 range to make drilling economical.”

The biggest challenge in the Alberta market is finding and keeping good people, he says. “There is a war for talent,” Davis says. “Part of our business is developing strong personal relationships, [which are needed] to grow.”

To attract and keep good people, it’s important to be an employer of choice, he says. That way, employees become advocates for the company. “For our oilfield business, our research information says networking is our best source of attracting new people,” Davis explains.

“We can advertise in print and online, as well as use recruiting firms, but it’s still networking that is most successful in attracting employees, and we’re giving people the tools and techniques to do that. Your reputation, the way you do business – that gets around. It’s the whole combination of training courses, compensation, facilities, equipment – all of it – that adds up to the total package. You want to make your package is as attractive as possible to get people to join you and stay.”

Davis says ECL has seen significant growth in the last three years and plans to continue growing. “We’ve had some significant developments in the last couple of years with substantial investment in capital assets,” he says. “We added a manufacturing facility for production chemicals in Edmonton. Overall, in all facets of ECL, we have great people, and that’s what’s made us successful.”