Interview with Lorraine Mitchelmore
Former Canada Country Chair at Shell
CHOA Editorial Committe
First, CHOA wants to offer congratulations on your CIWB award and your recognition for professional excellence and commitment to advancing diversity. To kick off the interview and to help our readership get to know you a bit better, can you tell us about how you ended up as Canada Country Chair at Shell and, more recently, Suncor, BMO and Cheniere Energy boards? Can you share one or two things that were pivotal along the way?
There wasn’t any single pivotal moment that determined my trajectory; rather, it was the culmination of various roles and experiences. From my early years as a geophysicist in Calgary, I was determined to gain exposure to the international oil and gas industry. Over the span of 30 years, I have worked in over 15 countries, residing in three of them. This broadened my perspective and deepened my understanding of global dynamics within the industry. I was fortunate to join Shell when I returned to Canada in 2002, where I was given significant leadership roles spanning conventionals, unconventional shale, and oil sands. These roles provided invaluable experience, and together with my international background, I believe prepared me well for the responsibility of leading Shell Canada as the country chair. When I retired from executive roles in 2015, my background across multiple international corporations naturally led me to board positions in large, complex global organizations. The breadth of my experiences, from technical roles to leadership positions in various parts of the global energy industry, I believe, equipped me with the skills to contribute to these boards. In essence, those global opportunities for learning and growth paved the way for my journey to leadership positions and board memberships.
You are known to be passionate about diversity and women leadership. Why is this so important to you? Can you please tell us about the organization Advancing Women Executives? What’s it all about and what impact is it having within corporations at the C-Suite level?
I am deeply passionate about diversity and women is leadership because I firmly believe in the power of great leadership and the importance of realizing the full potential of every individual. When half of the world’s population is possibly hindered from reaching their full potential, it represents a loss of invaluable leadership talent. Talented women shouldnt have to struggle excessively to access opportunities that should be readily available to them. In today’s increasingly complex world, exceptional leadership is essential to navigate through the challenges we face. Women bring a unique perspective to leadership, and diverse viewpoints are crucial for addressing these complex issues effectively. This is why I have put my energy behind Advancing Women Executives (AWE). AWE is an organization that holds significant importance to me. It was initiated by a group of industry women in the US and supported by McKinsey & Company, who recognized that, despite multiple decades and a strong pipeline, there was little progress in advancing women into leadership roles in the industry. AWE focuses on developing senior women executives to prepare them for C- suite and CEO roles. It goes beyond traditional training programs by creating a supportive network of highly talented women who no longer feel isolated in their journey. I often reflect on how impactful it would have been to have such a network when I was advancing in my career. Now, it’s incredibly fulfilling to give back to these remarkable women and provide them with the support they need for success. The success of AWE is evident in the remarkable achievements of its members. In a relatively short period, several women have been promoted to the C-suite, and some have even become CEOs.
We celebrate each other’s accomplishments and provide encouragement along the way. AWE is instrumental in preventing talented women from opting out due to the numerous barriers they often face. Overall, AWE is making a profound impact by empowering women to break through the glass ceiling and assume leadership positions they rightfully deserve.
With your work chairing the Future Economic Strategy Table for the federal government in mind, how do you see the future for Canada’s energy sector and, more specifically, the Canadian heavy oil and oil sands sector?
I’ve always maintained an optimistic outlook for Canadas energy sector. Canada boasts world-class innovation and a commitment to environmental stewardship, factors that position us as leaders in the global energy landscape, especially as we embark on building a low carbon economy. Over the years, the industry has harnessed innovation and determination to develop tough resources like North American shale and the oil sands, showcasing our industry’s potential. As we continue to develop and operate these resources with the expectations of reaching net zero, the same innovation and determination will become ever more important. Canada’s resources have to be considered in the context of global competitiveness both economically and environmentally. The good news is in recent years, the oil sands breakeven price has become comparable to other global resources. Moreover, significant progress has been made in reducing emissions intensity, indicating a commitment to environmental responsibility.
However, to achieve the goal of net zero, we need a supportive policy framework from the government. With the right policies in place, the industry can achieve its targets for net-zero emissions. It’s essential for the Canadian government to advocate for our industry’s interests on the global stage.
The Resources of the Future Economic Strategy Table that I chaired for the federal government in 2017-18 was instrumental in developing policy recommendations to enhance our resource industries competitiveness while also addressing environmental concerns. Two of the single most important recommendations were to streamline regulations and build a supportive innovation ecosystem, both of which would have significantly helped closed the productivity gap with the US and bolstered economic growth. Unfortunately, the slow implementation of all of these recommendations has hindered our progress, exacerbating Canada’s productivity challenges.
Moving forward, the government must adopt a balanced approach, avoiding picking winners and losers, instead fostering a transition to a low-carbon economy while supporting economic growth and getting out of the way of innovation. Canada has the potential to not only make our foundational carbon- intensive industries environmentally and economically competitive but can also unleash the innovation in clean industrial technology sector where these companies can then export their technologies globally. I have to give the government credit for creating the Canada Growth fund which can provide capital to scale up and commercialise clean technologies for the industrial sector. Our industrial sectors are a part of the solution towards a low carbon economy, and I would argue cannot be achieved without them. Industry and government need to come together to collaborate and support the development of these new technologies. The entire ecosystem needs to work together if we are to realise our potential. Canadians should take pride that we can become world leaders in this low carbon economy with all of our comparative advantages in natural resources and technology innovation.
In the last 10 years, versus the 10 prior to that, it has been a challenge to advance large capital projects in energy and we are now also seeing investment outflows from Canada. What are your thoughts around our competitiveness? What will bring investment back? Will we be able to attract the capital we need to succeed in our decarbonization efforts?
First and foremost, it’s imperative for governments to recognize the critical role of our energy industry in both serving global customers and driving Canadian prosperity. This industry contributes a substantial portion of our exports, underscoring its significance to our economy. Canada possesses abundant natural resources, a strong rule of law, and a skilled workforce, all of which are foundational elements for competitiveness. However, to truly capitalize on these comparative advantages, governments must implement policies to eliminate unnecessary roadblocks and support our industries to become global leaders.
It’s nonsensical to contemplate shutting down our own industry, only to have other less responsible countries fill the void in global supply. As long as demand persists, Canada should aspire to be the supplier of choice, leveraging our global position to responsibly and sustainably bring our resource industry into the future. Creating a conducive environment for investment requires providing certainty to investors regarding attractive risk-adjusted returns for both resource and technology solution companies.
By fostering regulatory stability, and demonstrating a commitment to supporting responsible, resource development, Canada can instill confidence in investors and encourage capital inflows. Ultimately, by adopting a proactive stance that prioritizes competitiveness and sustainability, Canada can position itself as a preferred destination for investment in energy and advance our decarbonization efforts more effectively than we are today.
How can we shift the perception of Canada’s heavy oil and oil sands and become recognized as the global barrel of choice?
Shifting the perception of Canada’s heavy oil and oil sands to become the global barrel of choice requires a multifaceted approach, with strong government collaboration being a critical factor. Take Norway, for example, which is renowned as an environmental leader. Despite similarities with Canada’s industry, Norway’s success stems from a government that recognizes the importance of balancing traditional resource development with sustainability.
In Canada, our industry has long been committed to environmental stewardship, evidenced by reduction in emissions intensity, initiatives such as embracing net-zero emissions and the establishment of advanced industry groups like Pathways. However, to truly excel on the global stage, we need government collaboration.
A supportive government can help take advantage of the opportunity for the energy sector to decarbonize. By adopting policies that encourage innovation and responsible resource development, while also fostering the growth of low-carbon technologies, Canada can position itself as a leader in both spheres.
It’s crucial to recognize that demand for oil continues to grow, even in countries like Norway with a strong focus on electric vehicles. Therefore, our focus should be on developing our existing industry to meet the low-carbon standards of the future, while also embracing the opportunities presented by a transitioning economy.
In essence, by aligning government collaboration with industry initiatives and promoting Canada’s commitment to environmental stewardship and innovation, we can enhance the performance and perception of our heavy oil and oil sands sectors and establish ourselves as the global barrel of choice. It is time for Canada to feel that pride as a nation.
With your whole career in mind, what are you most proud of, and what are you most excited about looking forward?
Reflecting on my entire career, I am most proud of the strides we have made in the energy industry around innovation and the potential for even greater achievements in the future. What excites me most is the prospect of realizing this potential with a government that champions our industry’s capabilities and understands the pivotal role we play in both our existing operations and driving innovation to make carbon-intensive industries worldwide more environmentally competitive.
I envision Canada as a global leader as the energy industry continues to grow and evolve, known for our commitment to sustainability and innovation. This represents a significant opportunity not only for our industry but also for Canada’s economic prosperity and global influence.
Furthermore, I am thrilled by the ongoing efforts to unleash the incredible talent of women in our industry. Seeing more women ascend to CEO positions will not only be a testament to their abilities but also a catalyst for changing the perception and brand of our industry. It’s an exciting prospect that holds immense promise for driving positive change and fostering diversity and inclusion within our sector.
Is there anything else you would like to share with our readership?
I am blessed to have had a fantastic career in the energy industry. It is a foundation for economic prosperity. There is an incredible future for our industry to embrace the low carbon economy and solve the challenges of this next frontier. I encourage the government, industry and our innovation ecosystem to collaborate and focus to build an industry that is branded globally as one of the most diverse and sustainable; one that generations of Canadians can be proud of for years to come.
Lorraine Mitchelmore has more than 30 years of oil and gas experience with a third of her career working internationally. Her most recent roles include CEO of Enlighten Innovations, various senior positions in Royal Dutch Shell, including Executive Vice-President Heavy Oil Americas and President and Country Chair of Shell Canada from 2009-2016. Prior to Royal Dutch Shell, she held various positions in BHP Petroleum, Chevron and Petro Canada. Ms. Mitchelmore’s business experience includes leadership in operations, strategic planning, business development, exploration and appraisal, technology start-ups, and public policy.
She serves on the Bank of Montreal, Suncor Energy, Cheniere Energy Board, AIMCo of Directors and Advisory Council for Advancing Women Executives. Ms. Mitchelmore has served as a board member and advisor to numerous private and non-profit organizations, including Enlighten Innovations, TransMountain Corporation, Shell Canada, the Canadian Council of Chief Executives, Conference Board of Canada, Asia Pacific Foundation, the Federal Government’s NAFTA Environmental Advisory Council, Catalyst board of Advisors and was Chair of the Federal Resources of the Future Economic Strategy Table. She has previously been an Associate of the Rockies Creative Destruction Lab, co-founder and co- chair of Smart Prosperity, chaired the 2015 Governor Generals Leadership Conference and co-Chaired the 2015 Calgary United Way campaign. Lorraine holds a BSc honours in Geophysics from Memorial University of Newfoundland, a MSc in Geophysics from the University of Melbourne, Australia and a MBA with Distinction from Kingston Business School in London, England.