Quote:
Originally Posted by Regorium
Can't say I like the solution at all.
Nobody came to their aid when oil was $100 and they couldn't fully capitalize on the upside. Having the government bail companies out for poor strategic decisions (like not investing to vertically integrate) just does not sit well with me.
This is coming from someone that's lost probably $50,000 from investing in Albertan producers in the last 5 years.
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When oil was $100 refineries still made money as no one had a cheaper source of oil. The issue here is that Pipeline rates are regulated. In an unregulated market it’s the pipelines companies not integrated companies would be making killing.
So if we accept that pipelines need regulation to ensure their viability then a knock on affect is what we see now.
I don’t like it much either but I think the current situation is a result of a lack of market forces working properly so regulation needs to be the solution or let pipeline tolls float.