'We're not open for business': Calgary financier not surprised at Koch's exit from Alberta oilsands

An investment analyst in Calgary says the only thing that surprises him about the billionaire Koch brothers pulling out of the oilsands business is that they didn't do it sooner.

On Aug. 1, the Alberta Energy Regulator approved the transfer of most of Koch Oil Sands Holdings' licencesto Cavalier Energy, a subsidiary of Calgary-based Paramount.

And all of Koch's remaining licences for well sites have been abandoned,which means they have been taken out of service.

Martin Pelletier, a portfolio manager with Trivest Wealth Council in Calgary, says international companies are frustrated with Canada's federal regulations.

"This is more confirmation that the international perception is that Canada doesn't want to do business in oil and gas," he said.

"We're not open for business, we're not open for capital, we're not open for development and there's better jurisdictions to do business in. And I think we need to really listen and we haven't listened to these foreigners exiting for the last four years. We should start listening now. It's never too late."

Other foreign companies that have reduced their exposure to the Alberta oilsands in recent years includeNorway's Equinor ASA(formerlyStatoil), Arkansas-based Murphy Oil,France's Total SAand Oklahoma-based Devon Energy Corp.

A spokesperson for the Wichta, Kan., company told The Financial Post that the decision to give up the Alberta oilsands properties is part of an effort to prioritize other initiatives.

Pelletier says he believes it would take a change in federal government from Justin Trudeau's Liberals to change the negative perception.

"I'm not stating my own political views. It's just, talking with the many institutional managers that I know globally, their perception is that Canada is not a place to do business," he said.

"Bill C-48 and C-69 were viewed to be very punitive to the oil and gas development and infrastructure build-out on pipelines. And so, if you get a change-out ofgovernment, maybe those bills get revoked or get pulled. And that would be a very positive catalyst for the energy sector."

Koch Industries Inc. is owned by American billionaires and Republican donors Charles and David Koch.