Quote:
Originally Posted by heep223
This is purely anecdotal and ambiguous. What time horizon are you talking about? First half of this year will be heavy but look to the back half for a recovery. It's a cyclical business and it's always darkest before the dawn. Not sure what you mean by 'Canadian companies asking for help'.
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I can say the same thing. I am speaking in the short term. For Canadian owned or heavily weighted companies such as Cenovus or Encana what recovery do you see helping these companies? A recovery to $40/bbl or $50/bbl late this year? That isn't going to help these companies in a meaningful way immediately. Especially when you look at the government stance of slowing market access and introducing new regulations/taxes.
I hope you are right, but I think there is more than a moderate recovery needed for Canadian companies. There is a fundamental regulatory and market access problem unique to our local producers that isn't going away anytime soon. Baring a hockey stick recovery to prices I don't see it getting better for many of these companies still trying to get back to early 2000's costs to align with similar prices from that period. More jobs and losses will happen in near term and that is what I was getting at.