Oil 'n Gas Capital Drying Up

[errolanderson]

Talk in Calgary suggests investment in
Canada's oil and gas industry may now be
at an all-time low. The investment
values haven't been turned off this
tightly since the 2002 Enron fiasco.
Investors are now showing serious
caution which is choking off field
activity and revenues. And this is
likely just-the-beginning to Alberta
gov't budget woes.

Latest Cdn GDP for 4th quarter showed a
0.6% growth rate, but in reality is
Canada's economy truly still expanding?

Real estate in this city is still doing
well with some properties still changing
hands above list.

Canada appears no longer the economic
sweetheart of the G7 which has been
partial cause for the weaker loonie
(IMO).

Will be an interesting summer for
Canada's major economic engine to see
how markets adjust to these new
financial realities and ongoing
government overspending.

[bucket]

Anyone with money already knows that oil in western canada is trading at a 30buck plus per barrel discount to the world price.

No sense in investing. Its short term thinking because when things turn (maybe the announcement of keystone or the pipeline to the west coast) they will pay more to develop because of a mini boom created.

Never understood why people insist on creating boom and bust cycles. Why not continue to develop at a moderate rate instead of chasing the dream?

[liberty]

"Never understood why people insist on creating boom and bust cycles. Why not continue to develop at a moderate rate instead of chasing the dream?"

When central banks create a boom through the use of ultra-low interest rates, few people ever consider that this will result in a bust as sure as night follows day. Most people are not interested in developing at a moderate rate because this would entail long term thinking, hard work and the discipline to do without short term luxuries. Instead, most people want everything, and they want it right now. Booms give people the illusion that they can have their cake and eat it too.

[bucket]

I sort of understand low interest rates to create a recovery of the economy, but to get people buying land or houses for three times the actual value that becomes a problem.

If interest rates go up, alot of people working won't be able to put gas in their cars to get to work.

And yet these are educated people.

But I am educated and a couple bad seasons will do me in as well.

[ColevilleH2S]

Will it all just crash already! I've got
cash to deploy, need blood on the
streets.

[hobbyfrmr]

I agree with coleville

[bucket]

hobby

I thought you were going to pursue that "special" deal over my way.

I can find a home for that cash!

Maybe if I say the price is now 1500 an acre you will be more interested?

Seems to be the way they get more investors interested.

[sumdumguy]

Short the bugger and watch her skyrocket. LOL

[hobbyfrmr]

Bucket I did not take it too seriously. I am content
with my operation but occasionally entertain
thoughts of relocating.
I would like to narrow down where the farm is
mostly out of curiosity.
You can email me at hobbyfrmr@yahoo.com for a
bigger bullship session.

[phoenix64]

not surprised with investment waning in the oil sector, we new 3 years ago if we couldn't export this oil especially from the bakken we would have a bottle neck, guess what....we got it. We need pipelines and refining capacity or western canada and north dakota will suffer.