Quote:
Originally Posted by Cali Panthers Fan
Are you sure that lack of foresight was about that or about the fact that the economy should be diversified to absorb a blow to one commodity-based sector? You know, those commodities that have significant price swings on a nearly constant basis? Nobody should have expected oil to stay around $100 a barrel.
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Bad take and ignorant of the economics of oil.
Is the owner of the world's third largest deposits of oil supposed to get out of that business at a time when demand for the product continues to grow? Alberta crude is competitive at North American & world prices, just not at a 40-50% discount from those prices. Perfect facts to back this up is Alberta oil companies cash flows before and after curtailment. WTI and brent prices are lower in 2019 than 2018, but Alberta companies have generated more cash in 2019. The problem with curtailment is that volumes are constrained and new production and the investment and jobs that it entails are not being created. Bad government policies = huge discount to world/north american prices.