Quote:
Originally Posted by puckedoff
Canadian oil companies are barely competitive now. I'd wager that its more likely that the province goes broke once oil production stops increasing, as capital goes to other provinces and US plays instead.
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Or instead of going to the doomsday, worst case scenario, they reduce labor costs and the ridiculous overhead that most of these companies have and drive innovation to reduce their total operating costs. I think that's far more likely then leaving untapped oil in the ground.
If you think that there's no "fat" to trim from Canadian oil and gas companies budgets, I highly recommend you try working outside of the patch and you'll see that even the most frugal O&G companies have plenty of room to reduce spend.