Quote:
Originally Posted by Frequitude
Cenovus and MEG can buzz off with this call for Provincial mandaded production curtailments. Sorry guys, you went all in on a bitumen only strategy which relied on pipelines getting built to the USGC as if the high oil price party was never going to end. You can’t privatise the gains and socialize the losses throughout the industry. Shut in, lean out, rework your strategy, and emerge stronger or die. THAT is in Alberta’s best interest. Don’t try to pick the pocket of those who have what has turned out to be a better strategy (Husky, Imperial, Suncor, and kind of CNRL.
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I normally agree with your posts, as they are well-thought and well-presented. This one I disagree with. The argument would have been stronger
only if the producers owned the basic asset - oil. In that case, their investments decisions on paying the price for that asset would be theirs to bear. It isn't though. Oil belong to the people of Alberta. Producers are simply licensed to extract and sell it. Market intervention is justifiable in this case, if the current prices make royalty returns unfeasible or unattractive for the people. Steve Laut of CNRL spoke very well about it this morning on BNN Bloomberg.