Quote:
Originally Posted by Mr.Coffee
So Calgary is not a ####hole, I never said that.
Moving on, you couldn’t be more wrong. What’s happened on differentials has actually occurred more to the point over the last two weeks in particular. Basically diffs and investment analysis has become a disaster over like the last one month to two weeks. That’s why what were planned for 2019 capital programs in August and Sept are absolutely not the same capital programs people are talking about in Oct and November. Things are changing fast to the downside. Do you follow the stock market?
You people need to understand something. Calgary is in trouble. Like you think things are rebounding when the country can’t get product out and supply is increasing with no way to move it! Do you think Keystone getting shut down in Montana yesterday helps?
Get a grip. The red alert button has been on in industry for the entire year and over the last month panic has actually started to settle in and you can sense it.just because some macroeconomic rube cruises in and says well 2017 Alberta still was the best provincial economy does not make it true looking forward. You think jobs are stable at $20/bbl???
It’s devils advocates like you that do not help the narrative and we all need to be pulling in the same directly at this point.
Industry needs support not questions. Industry needs help not uncertainty. The quality of life for Calgarians is at significant risk. It has never been as bad as it is today in Calgary including the early 1980’s when we were contemplating 1988 Olympics. There wasn’t the environmentalist nonsense. There wasn’t the inability to build a company and there certainly wasn’t the massive capital flight from the investment community.
The alarm bells should be loud and clear and yet we have people like you walking along not understanding how serious it is and others hoping we focus on and host the ####ing Olympics.
It’s absolutely the most ridiculous thing I have ever seen in my life in Calgary.
And no, the 0.000001% of Olympians who use these facilities to train in the future do not make an economy for the thousands of Calgarians who depend on these jobs, hundreds of thousands of Albertans who depend on these jobs and this sector or millions of Canadians who economically benefit from the oil patch today.
Calgary is one of the highest quality of life cities in the entire world now let me ask you. Was that because of oil and gas and business or was that because of the 1988 Olympics?
I’ll tell you what we should do with $500MM since we seem to have it to throw around. We should invite business leaders and politicians to Calgary constantly to drum up a transitional industry(ies) to Calgary to set up shop. We should provide subsidies tax advantages and breaks on utilities to new industry to create businesses in Calgary that will have jobs. Like our Amazon bid. We should not be ####ing around with corruption via the IOC and bolstering Nenshi and city hall and BidCos personally motivated profiles by hosting an expensive PARTY that is not a lasting economic impression on the city of Calgary.
We are in trouble short term. Watch.
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Meg energy Opex is about $3 or so per barrel. There maintenance and sustaining capital is $7-$8 a barrel. So at $25 CAD they still have a $15 netback. It the worst economic environment. Now as a company they are loaded with debt but as a sustaining asset it is profitable to sustain production.
There is a baseline industry that exists because of the previous billions spent on these projects. The employment levels in 201/16 hit those levels.
And if things are really as bad as you say than who cares about the Olympics, we are ####ed anyway might as well throw a party. I’m not even for the Olympics but your chicken little argument against them is false.
Looking a futures by April we are back to $30 diff (still
Down significantly from $15 diff) which at 60 WTI many projects are viable. Just this week in the middle of this WVS crisis Imperial sanctioned Aspen. Is 2019 going to suck for juniors and service companies? Absolutly. Can the city or Province do anything about it? NO. Does it have anything to do with the Olympics? NO. Are the Olympics a good idea? NO. But not because of the state of the Calgary economy. If we were booming it still isn’t a good bid.