Quote:
Originally Posted by Slava
The oil companies don't have a reason to lay off employees....oil prices are at historical highs, and most companies make piles of money with oil at $50/barrel. How they can justify lay-offs is disgraceful.
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Well considering outside the oilsands the majority of production is natural gas, which its not exactly trading at an all time high.. Plus the cost pressures already seen in the industry province wide will only be increased based on the new structure... That coupled with the cosmic rise in the canadian dollar, we have already seen a large errosion of the margins these companies were seeing last year.. Hence the drop in profits, which might I add are typically re-invested into the resource base.. The piles of money that you speak of don't really exist.. 1.7 billion divided by 2 million people works out to $85 each.. I hope this is really worth it in the end...
Edit: I just wanted to add that I think these new royalties are workable.. It just depends how high the canadian dollar rises and how much the price of oil fluctuates.. I don't see the massive layoffs happening with the sliding royalty system.. Just slower investment over the long term..