Alberta bailout for junior and mid-sized energy companies?

[mykalberta]

Serious, private buisnesses getting bailed out?

Wow, what are we, the US.

What happened to poorly run buisnesses shutting down. Get rid of the dead weight, the strong and innovative will survive.

[mykalberta]

Exactly

That is capitalism. Its not hard to understand people.

And if you were a junior and didnt save your bucks for a rainy day then you deserve to go bankrupt IMO if your buisness model isnt good enough to operate at $40 US / Barrel.

[Azure]

Originally Posted by mykalberta

Exactly

That is capitalism. Its not hard to understand people.

And if you were a junior and didnt save your bucks for a rainy day then you deserve to go bankrupt IMO if your buisness model isnt good enough to operate at $40 US / Barrel.

If they would actually BOTHER to follow those market rules, this 'recession' would blow over rather quickly.

Oil is going to jump again in the summer. Wait for it.

[Smell My Finger]

Companies that recieve bail out, umm i mean a greased handshake will still layoff people and keep the cash. The $$$ that would be used on these slimeballs would be better used on the thousands of employees that will be wondering how to pay their mortgages and keep their marriages/families intact.

[Nancy]

Originally Posted by fotze

Pretty sure if its a junior company then they are not rolling in the dough before this price correction. Every person I know who has started their own show took a LOT of money and gambled the whole thing and then some into the company, with a junior company there are no glory days of tonnes of dollars. As much as I bleiev in democracy, message boards and cbc comments re-iterate that it is essential that morons not familiar with any part of business of any sort should be removed from any decision making processes.

Its akin to a person with a computer denying funding to phton becasue google didn;t give him the right link right away "becasue photon is involved in computers".

Actually, we understand quite a bit. We understand that it's our taxes that are being flushed down the toilet.

[Nancy]

Originally Posted by fotze

WTF are you talking about? I was talking about the characterization that its a bunch of fat cats rolling in the dough, I don't agree with the bailout either but not for the sweeping false generalizations hat you are just giving money to already rich people. Junior oil ain't exxonmobil

Ok, I'm sorry. I admit that I was having some difficulty trying to figure out what you were getting at. Are you sure someone hasn't stolen your account? Your posts are usually so well composed, but your last paragraph in that previous post looks like someone was just mashing on the keyboard.

Lastly, yes I have heard a few stories of people who have started juniors who have lost their shirts. They aren't fat cats. But will bailouts and subsidies really help in a world of < $40 oil.

[SebC]

What about the big guys? It's not the Juniors who are driving the economy... it's the Suncor's and Petro-Canadas who have the multi-billion dollar projects. Doesn't take much to make a viable project a not viable project, much less than the economic impact of said project. This is dumb... the province screwed up with royalties, big time. Admit it, reverse it, and move on.

[Mr.Coffee]

Simply put, correcting the royalties isn't the total picture. There was room for royalties to be increased... about 4 years ago. If the province had nailed the timing they could have had their "fair share" (stupid buzz phrase). Then they'd look like heroes today by reducing the royalty structure to the way it was 4 years ago instead of implementing the "cool thing to do" bailout and looking like sheep, like morons.

Costs in Alberta, and Canada, are delusional, at best. It's laughable that the O&G servicing sector hasn't caught on, and in fact in most cases where I work these guys are FINALLY starting to get the drift. Again, poor timing. On the verge of spring break up we see the servicing sector prepare for some disastrous balance sheets. Quick example, we had a drilling engineer hop on the phone with a 3rd party driller that was still charging a fuel surcharge at the same rate as when a bbl of oil was $140. Pardon? Have you driven by a gas station recently? How many wells do you think are getting planned to drill this summer, fall and next winter? Like none! The wells being drilled right now are a result of committed capital and programs from last fall and to try and keep whatever landbase you can this year while you have a rig in the field.

The royalties aren't the whole picture. It's the combination of royalties, high costs, a bitch of a world to do business in (the ERCB and regulations in this province are ridiculous), and frankly- the most important thing- LOW QUALITY WELLS.

Yeah, it's wonderful that the price of oil may go up, unfortunately if your not in the oilsands that doesn't matter much. Most production outside the sands, conventional and unconventional (CBM, shale in BC) is gas. The price of gas is expected to stay low for quite awhile because we have, well, a crapload of it. If the price of oil goes up, it SHOULD help gas (we use a lot of gas to get oil and sand separated)... but how much?

The industry is in trouble, but it isn't all Stelmach's fault, only partially. Honestly? The disconnect right now between government and industry is downright embarassing, and scaring business to Sask & BC.

The Jrs and mids shouldn't have been bailed out... you have to let the market run its course.

[Ozy_Flame]

Boy, am I glad I got out of the oilfield services industry two years ago. My goodness, I knew the bubble would burst but not to the point of getting handouts from the provincial government.

If my tax dollars are going to be bailing out energy companies, I want to see some ethical, responsible and green assurances first before I even agree to it. Also, not a single penny of these dollars should be going towards anything that resembles monetary rewards for employees or "retention bonuses" or things like that. The money should be used simply for companies to meet their bottom line, and no more.