What would you do?

[grassfarmer]

You beat me to it Braveheart - I was going to suggest it was the Rebel media slant on an old saying lol.

[tweety]

Actually you are all wrong, its like canola dropping from 100$ a bushel to 30$. Profits in oil companies used to be obscene, now they are just kinda low to normal based on management skills.

A well run company is still doing just fine.

[vvalk]

Don't forget $10 canola is in Canadian dollars and $37 oil is in US dollars

[LEP]

Tweety that is BS that companies are doing fine. Once you have a high sunk cost there is no getting away from it.

Buy all the land you farm for $2200 an acre and try and make it on $10 canola. Won't happen.

I didn't agree with the spending orgy in the oil patch but I have too many friends affected by this not to be a little sympathetic.

The patch made it very difficult for me to operate on the farm, but it did pay a lot of bills provincially and federally.

Low oil prices would have caused a big hole federally without pretty boy whipping out his cheque book to show off. I expect we will be looking at $15B deficits for a few years.

Without the oil patch cash cow they will start knocking on everybody's door for a few more scheckles.

[checking]

No one should worry about the oil companies. That is misdirection. They have effectively beaten their suppliers down with cuts, not once, but in at least three visits to Calgary. All regretted by the suppliers, but accepted. Those firms kept their good workers, and pink slipped the ones that didn't belong here in the first place. The normal work is still getting done. The boom surplus wasn't normal, nor was the in migration for the Cons tax driving machine

[Ache4Acres]

The collateral damage is the big problem. Most Oil companies can do some serious belt tightening and survive at $35US oil = $50CA oil, but thecarnage in the world around them is unprecedented in generations. The welders, the engineers, the geologists, the local hotels and restaurants and going to suffer greatly. The entire economic ecosystem is built on excesses from high oil prices.

Massive deflationary impact as this evolves. There will very likely be a government bailout happening soon. They need to get more cash into the system.

[sumdumguy]

How much would it cost to drill an oil well today?