Quote:
Originally Posted by PsYcNeT
So basically they aren't doing well, they're just scraping by due to horrible mismanagement/coffer lining, and a minor royalty increase will send their poor budgeting and forecasts into a tailspin, resulting in no cutbacks for executives and a mass layoff of field workers?
Sounds about right
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It's pretty basic math, doesn't take much managerial skill. For any given well or field, there will be work and even managerial work if it is profitable. If it isn't, the company will look at other wells and deploy to those. Royalty rates and even royalty uncertainty play into where the work goes.
And the original comment seems to imply that the NEP was not the cause of mass Alberta oil layoffs, but in fact it was, the industry shut down almost overnight when that policy was implemented.