Quote:
Originally Posted by Corral
Its been said many times. You want to know what ails the oil industry here look no further than the Klein regime mid 1990s to 2005ish. Policy that encouraged a boom in the oil sands which temporarily made it look economic long term. Its simply not. Thats why there are piles of approved but unbuilt projects. We are now living thru the aftermath watching companies scale down and or leave the house party. It worked magic for Klein’s cronies. Its been an albatross since redford onwards. Not going to change with more federal money.
Alberta is left with a bloated population an infrastructure deficit insufficient public money to support health education and municipal costs etc....
The next political hero in Alberta will be the person who can solve this mess.
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We're the 4th largest oil producer in the world. Companies may sell and leave or change names but we've gone from 10th in the early 90s to the 4th largest today. People laughed at Harper when he talked about us as energy superpower, but it's pretty clear we're a global player after climbing the ranks in the last 30 years.
Not sure how much better Alberta would be if the last 30 years of substantial economic growth didn't happen.
Like GGG said, if you aren't cashflow positive at $30USD WCS you probably shouldn't be in business. Only a minor fraction of production in this province isn't at least covering their costs at this level. With this narrow differential due to excess takeaway capacity at the moment, we're selling bitumen at prices only seen before at $45 WTI.