Quote:
Originally Posted by Cowboy89
If you're in the oil patch, there is but one certainty of a NDP minority or NDP/Liberal coalition majority and that is utter extinction of our good fortune of the past decade.
Cap and trade plus the end of 'subsidies' (which is really just accelerated depreciation that every other industry gets to enjoy in a different form), plus a ban on tanker traffic on the west costs pretty much means that the value of all of our upstream oil companies would pretty much get ripped in half (Since a lot of the value in our companies is based on future expectations). So cash out your options on Monday, sell your shares in Oil and gas stocks, and bank stocks. Put those proceeds into US stocks, real return bonds, bank preferred stock and the typical oligopoly utility companies like Bell, Rogers, and Telus (The NDP support stricter Canadian ownership regulations for telecom companies from the CRTC).
Those who over leveraged on Calgary Real Estate and bought above their means, or bought multiple properties on high leverage will be bankrupted. Prices will crash by a lot. We're going to be reduced to Winnipeg status. A lot of the economic buzz around here at the moment centers around the massive amount of money that is getting spent on capital expenditures investing in future growth in the oil sands over the next few decades. Simply maintaining what we have (Productionwise) takes an awful lot less employees and at much lower salaries. This is an economic disaster for Alberta.
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So on the topic of cap and trade, who has the best plan? I'm clearly not in favour of any...but all of the parties are proposing it! It's one of my main arguments regarding the fact that there isn't much difference between the fiscal policy of the Liberals and CPC. The tankers on the coast though, is another issue and to me the Liberals miss the boat there.
The cutting of the subsidies is something common to all three parties as well....might be better marketing from the CPC here, I don't know.
I guess if those are two major reasons why the CPC is going to be better to the oilpatch though then the doomsday clock is closer to midnight then I thought!
In reality the oilpatch can probably make a go of things without a subsidy for the time being? I feel like my paying about $1.20/litre this morning is giving a good, healthy margin and hopefully they can make do. As a fiscal conservative I would just say there are other areas where the government can be effective and subsidizing corporations likely isn't one of them.