Quote:
Originally Posted by burn_this_city
Splitting the company maimed both when commodity prices tanked. They lost the natural hedge and the reason you go integrated. Talked with a guy who works there recently and the move to the US was basically no change. They all seem to understand that the spinoff of CVE was a disaster.
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Gwynn Morgan liked to (correctly) lament about the split as well. It was short sighted, and even when it looked like a bad idea, and they'd already pulled the plug on it once, they rammed it through anyway.
IMO, the bigger crime, that Gwynn was complicit in himself, was following the herd on the "North American Pure Play" trend of the early 2000s. EnCana was very geographically diversified. Instead of leaning on all of their Brent resources during times when the North American market got flooded, and transport constraints started to tank prices, they were stuck with no geographical diversity and all of their eggs in the suffering North American basket.
Many Calgary based companies had strong international presence, and they all gave it up willingly, believing the North American gravy train would never end. Then they all withered together as a result, and many were lost to foreign capital buying up cheap assets.