A barrel of oil at 32.00 /bbl (Can)...Connecting the dots

[bucket]

So chuckchuck what you are saying is. ....Brad wall meet Neil smith....Neil smith meet brad wall.


Funny if these guys are making money at 20 bucks why is gas at the pumps 86 cents and why is brad wall begging for money on their behalf.

Askbradwall.

[chuckChuck]

This is cold comfort for anyone who has been laid off and needs work.

However it appears that for some oil companies that are not heavily in debt and who hedged the sales price they are still doing quite well!

Where are the guys who made the 10s and 100s of millions and billions of dollars from the oil industry during the good times? Are they doing everything possible to keep as many people working and families fed?

Or did they take their money and run?

[bucket]

Partners

To an extent.... uh.....yes.

But here is why.

Here is a guy that says he stands up for the province but his team can't think.

There are so many opportunities. ....he us not looking for them.

Create a program to put oil workers to work this spring. He can't figure it out.

Create a farm operator course but he is not creating farmers .... he is creating eventually a farm workers union. Think on that a while ... you will know what I mean.

There are many more but he is not thinking of making this province better but his backers wealthier.

He isn't the caliber of a john diefenbaker or grant Devine.

[Partners]

You should have sent these ideas to Cam?

[bucket]

Partners

The saskparty started the farm worker course 2 years ago. It will create the farm worker union quicker than anything else.

They are too stupid to figure that out.

What they should have created is a farm mentor course. Cheaper and a better way to reduce the age of farmers.

I think you are missing what I am saying. We may be on the same page but I leap thru my thoughts and it gets confusing and that's my fault in my communication.

I have been told I miss the details of my dribble and the leaps of my thoughts are too far apart.

Squirrel ..... I may have addhd.

[Partners]

You should have sent these ideas to Cam?

[Partners]

Double post..POS computer..Brad's fault..

[bucket]

Partners

Smart ass. You are too. I know you are but what am I?

Pretty much sums up the debate the other night.

Too funny and yes I am being sarcastic.

[oneoff]

There's money in oil for everybody at $100 US or CAN.

There's money (overall)if Crescent Point hedged over the past several years; which they have consistently.. In fact they "lost" several hundred millions when oil was at its peak and more than made it up by hundreds of millions in the last months and will continue to do so for at least a few more months.

THEN WHAT HAPPENS if you wish to now want to forward hedge RIGHT NOW to add on a time period into the more distant future.

Thats pretty hard when the margins you may hope to get might very well exceed the world price for you oil (discounnted no doubt ) in a world with storage capacity filled to the brim.

Don't ever forget the carnage that Crescent Pointhas heaped on the service industry. And corporate headquaters continues to ask for further rounds of price cuts from service companyies they need; and the cruel ratcheting downn of drilling costs to the point that there isn't enoough of the tab left to pay those suppliers expenses.

And as for that hedging that is spoken of so fondly by thhe stock market; please ask how much of that windfall is returned to partners; or service providers or even leaseholders.


I know thats good business smarts on their part; but it should be a fair question to ask if they are hedged at say $50..; just


How does accounting handle a spot price that may be $100.00. I've asked that question and the answer is todays hedging is beneficial to stockholder and financiers...not those who get royalties and overrides for their contributions.

And in the future you might imagine that those share s will get paid the lower hegded value and any profits in unhedged will be taken by you know who.

Whole lot like a tenant forward contractsgrain at a price and sells and settles for landlord share at lesser of hedged or current priice.

[oneoff]

To chuckies valid point of the handful of oil companies that are vertically integrated and have refining capacity of their own which could be seen as a part of their crude oil production business.

Have to acknowledge that point (with no reservation).

And in return I expect (with no argument except maybe some points of clarification); that this production-refining relationship doesn't apply to but a handlful of major players in the Sask market. And with the wholesale export of oil through pipelines and railways it obviously and international picture.

Certainly not for EXXON in Sask; soon not to be Husky with their proposed dispositions;; maybe Federated Coop; but with their regulatory problems on the production side they might even be nearly out of the picture at least in the short run.

What is overlooked is that even EXXON and Husky and Federated Coop may be refiners of some sort; but their associated flare gas isn't handled by their facilities (that I know of) and so outside of the obvious collusion at the gas pump price; I think we should be looking out for the hundreds of minor and junior crude oil producers who also pay typically 83% or 95% of some RM taxes throoughout SE Sask and not be so intimately concerned about Crescent Point's half interest in the oil patch throughout Sask.

They can and will look out after their corporate interest without much help needed and will rise or fall along with the hundreds of other players who aren't as powerful in the industry.