Edmonton — The oilpatch can expect a tough year in Alberta, but there remains hope for growth abroad in new markets, according to a group of panelists speaking on the impact of low oil prices on the service and supply sector.

“I think we probably all agree 2016 isn’t going to be a real great ride for the province,” said Jeremy Fearnley, oil and gas leader, northern Alberta, Grant Thornton LLP. “I think it’s important to realize we’re not an island. There are other countries and other jurisdictions that are heavily reliant on resources.”

Talk of international opportunities dominated a panel discussion at the Edmonton launch of Service And Supply Outlook Report: Adapting to a lower-for-longer commodity market on Thursday evening. Produced by Grant Thornton and Daily Oil Bulletin publisher JWN, the report surveyed 545 service and supply sector leaders to gauge how companies were managing the downturn in oil prices. (Click here to request a free digital copy of the report.)

Manuel Caceres, a partner at Grant Thornton, noted the report found that just 29.9 per cent of companies are looking for growth opportunities in the U.S. Interest in other parts of the world, including potentially valuable markets like Mexico or the Middle East, generated marginal interest among survey respondents, however.

While many companies hesitated to look beyond Alberta’s borders, those that did were generally positive about the experience.

“One of [the companies active internationally] even mentioned to me that he wasn’t even sure if his company would have survived if it had only been located or selling to the Alberta/Canadian marketplace,” Caceres said. “So it’s essential to really look at other opportunities.”

Clark Grue, president and chief executive officer of Rainmaker Global Business Development, echoed Caceres on the potential opportunities lurking abroad. Much of the talk on innovation has focused on new products and services, but innovating new markets is equally important, he said.

He reminded the audience that many other oil and gas markets are not struggling as much as Alberta. Still, international trade will not work for every company, he acknowledged.

“We do have some of the brightest people and the smartest engineers, and there are lots of opportunities to look at depending on the company, but it’s got to be strategic. It’s not about hopping on a plane and flying somewhere and seeing what happens,” he said.

While some Alberta companies may be neglecting the international market, the international market hasn’t entirely forgotten the province, Grue said.

“There is a lot of Asian money sitting on the sidelines in Calgary,” he said. “We have talked to four or five companies already that are actively seeking acquisition opportunities here in the market.”

Brad Ferguson, president and chief executive officer of Edmonton Economic Development Corporation, agreed that global investment is likely to start circulating through the market soon, based on his own organization’s experiences on the venture capital side of the business.

“That capital sitting on the sidelines will start to get anxious at the end of the year. That’s where some interesting opportunities are going to be. We’re 30 per cent or 40 per cent discounted right now for U.S. buyers,” he said.

When asked about the greatest barriers to innovation, Fearnley said the lack of access to capital and cash flow continues to be a restriction. Many companies are focused on making payroll and keeping on top of bills, which can make it difficult to tackle new challenges.

However, companies also need to have the confidence to develop new products and markets. Fearnley said that he had encountered some organizations where exports were now accounting for up to 85 per cent of revenues.

“As businesses, when we get out of our own way and take those leaps, I think fantastic things happens,” he said.