Trump poses competitive threat to Canadian drilling industry, which is set to rehire

[chuckChuck]

Trump poses competitive threat to Canadian drilling industry, which is set to rehire 3,000 people next year

Geoffrey Morgan | November 22, 2016 | Last Updated: Nov 23 12:46 AM ET
More from Geoffrey Morgan | @geoffreymorgan
Canadian Press

CALGARY – Donald Trump’s presidency in the United States presents a competitive threat to Canadian drilling companies and domestic energy producers, the head of Canada’s drilling association said Tuesday.

Canadian Association of Oilwell Drilling Contractors president Mark Scholz said that a boost in drilling activity in the U.S., aided by the rollback of U.S. President Barack Obama’s environmental regulations under president-elect Trump, could cause American oil and gas production to increase sharply. As a result, Scholz said, “It would temper growth prospects in Canada.”

“It is absolutely a serious threat and we have to take it seriously,” CAODC president Mark Scholz said Monday. He added that Canadian governments should reconsider how environmental policies like carbon taxes here will affect the domestic energy industry’s competitive position relative to the U.S. under Trump.

“If I was a U.S. driller, I would be very optimistic about the prospects of greater activity in the United States,” Scholz said.

[riders2010]

Chuck you do realize this is saying the carbon tax makes us less competitive right?
Send this to Ottawa.

But I do wonder if those supporting Trump realize the possible implications for us. Texas has
just discovered shale oil 3 times the Bakken oil reservoir, do you think that is not going to
be persued? What will that do to us? There may be a keystone but is there anything stopping
trump from taxing that oil going through that pipeline?

[rockpile]

Just for shits and giggles this morning I decided to check out the Leader Post this morning on the web. Sounds like there is a whole pile of bull on the streets of Regina these days, lol!

[farmaholic]

Many times more bullshit all year round on 2405 Legislative Drive than the Agribition grounds in Regina.

Imagine having a Federal Leader that puts the interest of the Country he leads ahead of others.

[Guest]

that's what we have been trying to tell you chuckles. Carbon tax is stupid,looks like it finally starting to sink in though. why not call it another tax instead . could call it gst second edition , or something like that ?

[Guest]

Chuck you do realize this is saying the carbon tax makes us less competitive right?
Send this to Ottawa.

But I do wonder if those supporting Trump realize the possible implications for us. Texas has
just discovered shale oil 3 times the Bakken oil reservoir, do you think that is not going to
be persued? What will that do to us? There may be a keystone but is there anything stopping
trump from taxing that oil going through that pipeline?

doesn't matter anyways riders , the greens have the upper hand now in this country. no one wants anymore oil production here , remember? . usa is going full steam ahead and we are going to live in a sunny ways dream world full of rainbows and lollipops ,until it's too f&$king late to wake up . I was reading some of that stuff on bc salmon farming , how does this shit happen in a democratic country ? why do all his supporters think it's ok for him to have four homes ? and ruin people's livelihood in the meantime? ex bc salmon farmers should make him pay . everyone needs to read this shit

[chuckChuck]

Riders2010, I saw that too. I am not sure if a carbon tax in Canada will have much impact on drilling costs. Rigs do use a lot of fuel.

It would be interesting to compare drilling costs north and south of the border at this point.

Fuel has always been somewhat cheaper in the US because of lower taxes, so they have always had that advantage.

But there would be lower costs in labour and services because of our lower dollar.

Health insurance costs on US rigs would be much higher for the US employer.

Drilling rigs have cut their costs to get work here.

A lot depends on the area costs and whether the oil is shallow or deep and fracked or not.

I do know that freehold mineral lease costs were a lot higher in the Williston basin in ND at one time. US mineral owners were very aggressive and extracted very high lease options and royalties

There are alot of factors to consider.

In any case the Trump impact might be a negative on Canadian drilling activity.

[Guest]

Riders2010, I saw that too. I am not sure if a carbon tax in Canada will have much impact on drilling costs. Rigs do use a lot of fuel.

It would be interesting to compare drilling costs north and south of the border at this point.

Fuel has always been somewhat cheaper in the US because of lower taxes, so they have always had that advantage.

But there would be lower costs in labour and services because of our lower dollar.

Health insurance costs on US rigs would be much higher for the US employer.

Drilling rigs have cut their costs to get work here.

A lot depends on the area costs and whether the oil is shallow or deep and fracked or not.

I do know that freehold mineral lease costs were a lot higher in the Williston basin in ND at one time. US mineral owners were very aggressive and extracted very high lease options and royalties

There are alot of factors to consider.

In any case the Trump impact might be a negative on Canadian drilling activity.

not really , they probably will all head south like the last time there was a Trudeau ruling us . they will do fine there in their new pro business climate

[stonepicker]

Looks like trump is gonna get blamed for everything here on in, trump is creating jobs meanwhile we have a federal and prov. gov's that would rather see oil shut down ( but it's trumps fault ) it's our own fault, where is a pipeline going east? Where's the one to the west coast? Chuck, if you continue to fill your mind with garbage, that's all you'll ever spew out.

[chuckChuck]

I think many of you have missed a key point in that the carbon tax will remain in the province and it will be up to the provincial government to decide what to do with it.

Brad Wall may exempt agriculture and resource extraction. He may choose to rebate it to the industry to offset the increased costs. He may choose to cut corporate or income taxes. We don't know what he will do it with it?

All this speculation and gnashing of teeth and not one of us knows what Brad Wall will do?

We do know he likes carbon capture and storage. That cost 1.3 billion. And will be passed on to consumers and taxpayers which is essentially another "tax" on electricity.

We do know he is planning on 50% renewables by 2030. What will the costs be relative to coal?

Is coal really the cheapest option in the long term? Is carbon capture and storage a good investment?

One of his best options would have been purchasing cheap surplus hydro from Manitoba.

It is difficult to have this debate unless you have the numbers.

I keep asking why is Brad Wall investing in renewables? No one has a good answer that shows the cost comparisons in Saskatchewan.

All I get in response is coal is cheap and renewables suck and are expensive, plus Trudeau is an idiot.

[chuckChuck]

Stonepicker the price of oil went down because of oversupply and lower demand. Not because of the NDP in Alberta or Trudeau in Ottawa.

Agriville is kind of useless when you get so many ill tempered responses that add nothing to the debate. Pretty much a waste of time!

[stonepicker]

Stonepicker the price of oil went down because of oversupply and lower demand. Not because of the NDP in Alberta or Trudeau in Ottawa.

Agriville is kind of useless when you get so many ill tempered responses that add nothing to the debate. Pretty much a waste of time!

Think about it chuck, eastern canada is burning saudi oil, why? Why not a pipeline from the west to burn pure canadian oil? How come we don't export oil from the west coast? No pipeline! No wonder there's an over supply. Do you see my point?

[Guest]

Make no mistake about very little of the carbon tax will stay in province. It will go to admin for eastern jobs

[tweety]

Leaving oil in the ground in Canada may be the best thing that ever happened to Canada for the future.

[chuckChuck]

Pipelines are critical to the export of oil. The discount on Alberta oil has varied over the last few years. Trains have taken up the slack. But world supply and demand is out of balance and all exporters are having problems.

Keystone XL may well be approved. The Kinder Morgan already transports oil to the west coast. Enbridge already exports to the US. TransCanada may get approval to move east. Who knows with politics.

Pipelines have become a proxy for the politics around climate change. Same thing in the Dakota Access.

There are also lots of legitimate environmental concerns when they break and pollute drinking water supplies and coastlines. Pipeline companies make big errors in choosing routes and are not particular good at public relations.

Trump wants a share of the Keystone XL profits. How will that work?

Why did the oil industry wait so long with Harper to get approvals? Trudeau will likely be more successful at getting approval.

But there is a good chance with demand decreasing and supply increasing in the next decades the oil sands will become too expensive to produce and they will become a stranded asset even with sufficient pipelines.