Quote:
Originally Posted by DiracSpike
People who look at the oil industry as grossly profitable and take it for granted need to have a long hard look at what's been happening in the last few years. BP, Conoco, Apache, Marathon, Total, StatOil, Devon, and now Shell have all basically ceased operations in Western Canada. Soon it will only be CNR, Suncor, and the greatly weakened Cenovus and EnCana left to operate here, that's bad for the Province and city as a whole. Although as someone who owns a #### tonne of CNR stock I'm not complaining.
|
I think the implications for service companies, and other suppliers in the Alberta oil patch are quite severe. It consolidates the power of the companies to continue to keep prices depressed. There is already no profit in the supply of components and fabricated products, the next shoe to drop is labour costs will have to fall even further. That's not good news.