downturn of 2015

[errolanderson]

Fairly glum mood in downtown Calgary these days . . . .

Oil prices appear down for-the-count which will slow Canada's economy well into 2015. Apparently, not only is the U.S. becoming a self-sufficient oil producer, there is talk that the U.S. may eventually become an exporter.

What does this mean for OPEC cartel?
What does this mean for Keystone?

Whatever the outcome, this is the new reality for the Cdn bitumen business (IMO).

[ado089]

I have a buddy who does a lot of m&a legal work in Calgary. He says the US considers Canadian oil in their self sufficiency numbers.

[Horse]

It is real tough to feel sorry for a bunch of under worked and over paidworkers. The govmt looks like a well run machine compared to the oil business. Realy do any of you have any idea now spoiled this industry is? How would you like to recover cost of a combine or field tractor in 1 yr, get paid 11hr when only run 9-10 subsistance allowance because you are away from your home overnight, traveling time all kinds of benefits and $35/ hr for equipment operators $1500 consulting pluss, now that would be fine if the rest of the working men got paid in the same fassion , but they dont. Much like the pro athletes whining because thier contract in only 3-4-8 mill/yr, yea real tough.

[fjlip]

X 2 Horse, WASTE WASTE WASTE, and lots of $$$ to cover it all up. Great to see a shake up, to reality.

[errolanderson]

Horse . . . good point.

Noticed the fat is starting to burn a little.

[wmoebis]

"He says the US considers Canadian oil in their self sufficiency numbers."

No doubt they own most the Co's that find the oil, drill for it, tell us how much they pump, refine it, ship it and retail it. Pay us what they want for it.

[bucket]

This might be stupid, but isn't it our saudi friends dropping the price of oil and our coop friends ensuring that the price of gas and diesel continue to stay high?

[cottonpicken]

Have heard the house of saud is dumping to punish russia and slow na shale oil,but stronger dollar and weak global economy also helping,canada might have a ruff few years coming.

[errolanderson]

bucket . . . this slide in oil prices appears coming from Saudi Arabia. Protecting their turf in global markets?

Oil prices now low enough that frackers are apparently idling operations stateside.

Personally feel that parts of the Middle East could turn back to sand, especially if OPEC starts bickering between themselves.

[furrowtickler]

It's called real greed Errol - not the kind that a farmer is hopeing to get an extra $.25/bus ...
The whole oil industry has been awash in money and was the apitamy of greed .

[wmoebis]

If it was grain it would be called a correction and price just getting back to normal.

[fjlip]

X 2 Horse, WASTE WASTE WASTE, and lots of $$$ to cover it all up. Great to see a shake up, to reality.

[Braveheart]

Our son works in the SK oil patch in the winter. He drives a winch truck mostly. It's not as gravy train as most of you imagine.

Fixing and maintaining trucks and equipment is expensive. There are labour shortages. Bad weather has as much impact on oilfield development as farming.

There is a lot of money generated in rural communities in western Canada. A big economic slowdown may not be good for those who have come to depend on the oil patch.

[foragefarmer]

Labour shortages in many rural areas are being caused by oil. Local business can not compete with oil, with the high wages and living allowances. They can not find employees. I have family who live in SE SK and they talk about all the time. Everything gets distorted because of the oil.

[MBgrower]

On the positive side, lower fuel prices could stimulate consumer spending and the economy. But big oil will cut output at their refineries, to keep fuel prices high. Harper is a big supporter of big oil, lets see if big oil is a supporter of harper, and try help keep harper's economy afloat..