Quote:
Originally Posted by Enoch Root
Oil prices are (pretty much) irrelevant.
1) I highly doubt any of the owners are in a situation whereby this proposal would leave them 'strained'
2) Any crunch from the oil price is offset by lower costs
3) this is (at least) a 5 year project. The price of oil, Calgary real estate, and the state of the economy, are going to change multiple times over the life of the project.
A deal this size transcends today's oil price.
|
I'm not sure of your accuracy on point 2... seems to me that oil going for $100/barrel to $40/barrel (though not all $60 is gravy for these oilmen) would be offset or your $1 billion project would become a $400 million project (ish).
I think I agree with #1 and #3, but even if they aren't "strained", it probably isn't as easy a decision to make.