Quote:
Originally Posted by bizaro86
EnCana under his leadership sold two big international positions iirc, Ecuador (which was bought by a Chinese SOE) and the UK's North Sea (bought by Nexen). Both countries subsequently had tax/royalty changes much worse than anything we've seen in Alberta (Ecuador windfall prodits tax...) In many ways going all in on political stability in Canada compared to other places seems like a reasonable choice to me.
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Except when Canadian oil was selling for an absolute pittance vs. Brent.
The removal of diversification across the board for short term "pure play" shareholder value looks pretty universally bad in hindsight.
See:
- Current oil production of Devon, a former "pure play" North American gas company
- Current oil production of the former EnCana, who went through massive expense to carve off oil assets to Cenovus and midstream elsewhere
- Current gas production of Cenovus