Official (Alberta) Oil Discussion Thread

[Krovikan]

There is a difference between the auto industry and the oil companies, easier to move and GM / Chrysler were insolvent and heading towards receivership. Also if say Husky went belly up Oil is still here someone will want to mine it, if factories move their is no need to come back.

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[CaptainCrunch]

Originally Posted by Krovikan

There is a difference between the auto industry and the oil companies, easier to move and GM / Chrysler were insolvent and heading towards receivership. Also if say Husky went belly up Oil is still here someone will want to mine it, if factories move their is no need to come back.

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And if the factories can't survive without government coin then the industry isn't right for this country.

The government can't allow itself to be held hostage by every CEO or CFO that says give us money or we'll move.

Manufacturing of consumer products in North America is a dying industry anyways. We care too much about our environment, we have too high of a cost of living to support it, and we don't literally have a slave state of workers making pennies on the dollar to work.

Even the vaunted quality control that our manufacturers have stood behind when they've bleated against the cheaper manufacturing in the developing world is narrowing.

[heep223]

Originally Posted by Slava

Well I'm against government bailouts for private business. I didn't like it when it took place for GM, hate the Bombardier has no real business aside from securing government money from time to time and am against the arena in Calgary for the same reason. I know that the oil industry is hurting, but even so, private business should have to deal with these issues on their own.

So you're a big CalgaryNEXT supporter?

[Locke]

Originally Posted by Slava

Well I'm against government bailouts for private business. I didn't like it when it took place for GM, hate the Bombardier has no real business aside from securing government money from time to time and am against the arena in Calgary for the same reason. I know that the oil industry is hurting, but even so, private business should have to deal with these issues on their own.

You know what, normally I'd agree with you, but lately I'm beginning to wonder, if we've elected all of these people who believe in bailouts and Government taking care of people then why should I be working my butt off while everyone else stands in line for free money?

Doesnt that make me the crazy person?

[Slava]

Originally Posted by Locke

You know what, normally I'd agree with you, but lately I'm beginning to wonder, if we've elected all of these people who believe in bailouts and Government taking care of people then why should I be working my butt off while everyone else stands in line for free money?

Doesnt that make me the crazy person?

Yeah that's the contagion. Like I would enjoy a new office building, so maybe the city can give me some land, and the province and feds can kick in some money and build that for me? Don't make me go looking for office space in Seattle or Portland or other markets that would love to have an NHL franchi...errr I mean investment advisor!

[chemgear]

Originally Posted by Locke

You know what, normally I'd agree with you, but lately I'm beginning to wonder, if we've elected all of these people who believe in bailouts and Government taking care of people then why should I be working my butt off while everyone else stands in line for free money?

Doesnt that make me the crazy person?

But taxing the hell out of the rich will bring equality! Join a union and do jack all and be set for life!

Hell, they won't even be able to get rid of you if you are totally useless or have dozens of sexual harassment complaints. You're pretty much fine as long as you don't sleep with a student. And even then . . .

[Leeman4Gilmour]

http://www.cnbc.com/2016/01/19/oil-p...-below-28.html

[CampbellsTransgressions]

Originally Posted by CaptainCrunch

Its not though, its the infrastructure spending from their election guidbook.

This isn't about bailing out the Oil Companies.

And if its a billion dollars, that will make very little difference here.

Isn't the provincial government borrowing $34 billion for their infrastructure plans?

Yep, it's a drop in the bucket.

I view it as purchasing political points from Alberta and Saskatchewan. Where will the points be spent? Probably on Bombardier, who just so happen to be looking for the same amount. I guess the federal government is afraid of giving a bailout to Quebec before AB/SK.

[polak]

Why would he bail out oil companies?

Bail out the people in AB and Sask by creating work through infrastructure programs. 1 billion isn't going to do much but hey, it's something.

[rubecube]

Yeah, bailing out the oil companies is a terrible idea as there's really no guarantee they're going to resume operations or continue operations the next time the price of oil plummets.

[afc wimbledon]

Responding to disasters is a terrible way to run an economy, diversifying the economy so that the province isn't as dependant on oil makes more sense.

[polak]

Originally Posted by afc wimbledon

Responding to disasters is a terrible way to run an economy, diversifying the economy so that the province isn't as dependant on oil makes more sense.

Gear the infrastructure towards different industries?

Canal. Lets build a mega canal from Calgary to the pacific. Then we don't need to worry about BC and their anti-pipeline BS as well.

Polak 2018

[Johnny199r]

Originally Posted by afc wimbledon

Responding to disasters is a terrible way to run an economy, diversifying the economy so that the province isn't as dependant on oil makes more sense.

Every place in the world talks about diversification of their economy as the answer to their problem. But when asked for conrete realistic examples of what that actually means, the answers are general as hell.

[polak]

Originally Posted by Johnny199r

Every place in the world talks about diversification of their economy as the answer to their problem. But when asked for conrete realistic examples of what that actually means, the answers are general as hell.

So what industry will withstand all recessions, booms and busts? An industry with never ending supply and demand?

Death.

Lets make Calgary the Mecca of the after-death industry. Pretty easy to accomplish, just abolish all health and safety regulations both in the workplace and personal to grow it locally and boost economies of scale which in turn cheapens our manufacturing which lowers our prices compared to the other localized global competition and allows us to export our product. On top of that, lets invest in extreme sports to feed that industry even more as well as boosting tourism.

Polak 2018

(I'm sorry, I've been doing bs data entry all day and my brain has melted)

[Cowboy89]

Originally Posted by Johnny199r

Every place in the world talks about diversification of their economy as the answer to their problem. But when asked for conrete realistic examples of what that actually means, the answers are general as hell.

The NDP is doing a wonderful job of 'diversifying' the Alberta economy. The oil and gas sector comprised too much as a percentage of the broader economy for the economy to be 'diversified.' So now that oil prices are low they're giving the industry the double tap to make sure it never grows back to unbalance the economy again!

[calumniate]

Originally Posted by afc wimbledon

Responding to disasters is a terrible way to run an economy, diversifying the economy so that the province isn't as dependant on oil makes more sense.

Actually, it's the extreme highs and lows that lead to inefficiencies. So government spending when things take a turn for the worse is good governance on paper. Problem is, we didn't save anything during the boom times or try to scale anything back.

Edit.. I don't disagree with you though given the context. I was referring to stimulus in general, not o&g bailout

[DoubleK]

Originally Posted by Resolute 14

Speaking of stocks and Husky cancelling dividends for the year, their stock is in a nosedive. Down 11% this morning and below $12 a share at the moment. I'm sort of wondering if now might be a good time to consider buying and holding for a few years until recovery. Difficulty: I know literally nothing about buying stocks and investing.

I'm going to go drop some knives off of my balcony. Do you want to try to catch them??

[Frequitude]

Originally Posted by Resolute 14

Speaking of stocks and Husky cancelling dividends for the year, their stock is in a nosedive. Down 11% this morning and below $12 a share at the moment. I'm sort of wondering if now might be a good time to consider buying and holding for a few years until recovery. Difficulty: I know literally nothing about buying stocks and investing.

I'd pick a higher quality name for a value play. There's a lot of money on the sidelines right now. Large portfolio's are probably a little underweight oil and waiting to get back in. The first place they'll go is high quality names. I'd stick with the CNRL's or Suncor's of the world.

It also can't hurt to let the market find a bottom. No sense trying to guess the bottom and catch a falling knife. No loss giving up the first handful of percents in a recovery.

[afc wimbledon]

Originally Posted by Johnny199r

Every place in the world talks about diversification of their economy as the answer to their problem. But when asked for conrete realistic examples of what that actually means, the answers are general as hell.

The reality is you can't force an industry to thrive, when governments try they end up screwing things up royally, what governments can and should do is create a lot of training opportunities and tax breaks for start ups.

B.C. kind of fell arse backwards into the film industry and tech start ups which in the last twenty odd years have reduced dependence on forestry to a degree.
When I got here in '85 a drop in the price of lumber was a disaster and made front page headlines here, these days it's barely noticed outside of the interior.

I think the important thing for a government to do is not try and invent a sector, but see what develops organically and encourage it with education programs etc.

[troutman]

Originally Posted by Johnny199r

Every place in the world talks about diversification of their economy as the answer to their problem. But when asked for conrete realistic examples of what that actually means, the answers are general as hell.

Dude. Weed.