Oil price drop means lost billions for Canada

[Goober]

High cost production/ fields not in the build stage will be scuttled for a time. As usage increases and as those fields were not developed, well there is not enough oil, as usual oil will increase dramatically.
As oil stays low, green power gets really expensive, more people use oil as it is cheaper, raising demands for more oil.
Check back in a year or so and we will see what the price is then.

 

[Nuggler]

That is what business is all about. People and pension plans make investments expecting a return on that money, no other reason. More to the point they do not care who gets hurt in the process. Ontario Teachers pension owns, or owned a major chunk of TimberWest. First thing they did was close all the mills and lay off all their union loggers. All logging is now by lowest bidder and almost all timber is exported. That is how unions look after their brothers, just like any other business.

All the union loggers were laid off. How do you figure the unions didn't look after their brothers. They didn't have a choice if they were laid off

Whose fault is it that almost all timber is exported? Unions don't do the exporting.

****, you righties twist the facts till they suit you. ****ing simpleton.

 

[Ludlow]

Stop driving and use bobsleds put em all outa bidness.

 

[taxslave]

All the union loggers were laid off. How do you figure the unions didn't look after their brothers. They didn't have a choice if they were laid off

Whose fault is it that almost all timber is exported? Unions don't do the exporting.

****, you righties twist the facts till they suit you. ****ing simpleton.

Timberwaste majority owner is the Ontario Teachers Pension Plan. You know the greedy government employees that always want more money for less work.

Again the pension plan is looking to maximize their profit at the expense of unionized Canadian sawmills, which they owned and sold off for scrap. And since they own the land there is no restrictions on log export.
So in case you still haven't figured it out there is one foreign(Ontario) union deliberately killing off the jobs of local(BC) union employees to maximize their retirement earnings. That is how union brothers look after each other.

 

[darkbeaver]

"It's different this time

Cratering oil prices aren't new, but this decline is unlike previous ones because others were caused by a recession-related drop in demand. Of late, the price of oil has been dropping just because we have too much of it — much of the global economy is actually poised for growth, especially the suddenly strong U.S. economy that a lot of Canada stands to benefit from."

It's different this time, yeah it is, this time it's related to depression and global war. The growth in the economy will be in launch vehicles, munitions, tank parts, oil gas batteries,F35s, potatoes and bully beef, gmo goodness. Suddenly strong us economy, what economy?

 

[taxslave]

So far the only ones whining about lower oil prices are those that are overexposed to that market. With the gas money saved this year if prices continue to remain low we will buy a new fridge, Canadian made if possible and more upscale that the current one.

 

[EagleSmack]

So far the only ones whining about lower oil prices are those that are overexposed to that market. With the gas money saved this year if prices continue to remain low we will buy a new fridge, Canadian made if possible and more upscale that the current one.

Absolutely.


Geez... the lady on NPR seemed almost mad at the commoners for being happy about gas prices being low with no end in sight.

 

[darkbeaver]

So far the only ones whining about lower oil prices are those that are overexposed to that market. With the gas money saved this year if prices continue to remain low we will buy a new fridge, Canadian made if possible and more upscale that the current one.

Did we make fridges?

 

[EagleSmack]

No wonder why the oil company filled my oil tank in July. I called them up POed when I saw the bill in my mailbox.


They saw this coming.

 

[taxslave]

No wonder why the oil company filled my oil tank in July. I called them up POed when I saw the bill in my mailbox.


They saw this coming.

It has been predicted for well over a year, but like most bubbles those with the most to loose are the least prepared and biggest deniers.

Did we make fridges?

Once upon a time. Don't know anymore. Will go NA next, China isn't an option.

 

[wulfie68]

As some one who works in the energy sector, I see a lot of gnashing of teeth and moaning about the price of oil but I put it into perspective this way. When I graduated from NAIT in May of '91, oil floated around $20 a bbl. Oil companies made money. The oil sands made money. Experimental steam injection projects for producing heavy oil were marginally profitable in their R&D phases. A lot of speculation went on about the ability to produce coal bed methane and shale plays profitably, and the numbers tossed around for them to be profitable ranged from $30-$50 per bbl.

Now its almost 25 years later. Prices that had been stagnant through the 70s and 80s have been through the roof for the past 2 decades. Experimental and enhanced recovery projects that were once thought impractical because of the economics are now in mainstream production. And the idea that prices will remain depressed for long seems a bit of a stretch considering the way global demand keeps increasing, specifically in Asian markets. China and India's demands for petroleum are not going to subside any time soon and that will provide buoyancy to the energy markets even in downturns.

 

[MHz]

Now add in all the government incentives and tax breaks and see how much the actual cost was. In those years all construction was still no bid cost plus. You bid to be hired by a company and did whatever field they were opening up. Siesmic in the Arctic was done by throwing a dart at the map.

 

[captain morgan]

If I understand this correctly, insane amounts of money flowing out of my pockets is the desired status quo, and when it is not happening, then they are losing money.

If you still want the same social programs to be available, the insane amounts of money will still come outta your pockets in the form of taxes.... The difference being that this time, the corp taxes, royalties and payroll taxes stemming from the oil companies won't be making up the difference.

 

[darkbeaver]

Notone of you mentioned the obvious victim in this oil subject, the US dollar, and along with it life as we have known it. Without the petro-dollar things will be different.

By Alastair Crooke

December 29, 2014 "ICH" - "HP" - - BEIRUT -- A profound transformation of the global monetary system is underway. It is being driven by a perfect storm: the need for Russia and Iran to escape Western sanctions, the low interest rate policy of the U.S. Federal Reserve to keep the American economy afloat and the increasing demand for Middle East oil by China. The implications of this transformation are immense for U.S. policy in the Middle East which, for 50 years, has been founded on a partnership with Saudi Arabia.

 

[Walter]

If you still want the same social programs to be available, the insane amounts of money will still come outta your pockets in the form of taxes.... The difference being that this time, the corp taxes, royalties and payroll taxes stemming from the oil companies won't be making up the difference.

It will more than be made up by the other things people and businesses will be able to do since their energy costs have drastically come down.

 

[darkbeaver]

It will more than be made up by the other things people and businesses will be able to do since their energy costs have drastically come down.

When something goes down something else has to go up.

 

[Walter]

When something goes down something else has to go up.

Price goes down, spending goes up.

 

[darkbeaver]

Price goes down, spending goes up.

So when the price of a dollar gos up what happens?

 

[captain morgan]

It will more than be made up by the other things people and businesses will be able to do since their energy costs have drastically come down.

The majority of Canada's oil is designated for export. This means that the majority of the cash generated from operations is 'new money' that comes in from outside Canada.

The cash saved at the pumps (and related) will not come close to replacing the funds. To give you an idea, O&G companies contribute approx $18 billion in income tax, royalties and misc to the general revenues to Fed and Prov gvt combined.... Income taxes from supporting service industries to O&G bump that number.

To put it in context, $18 billion was about 7% of the Feds total budget in 2012.... Do you think that this will be made back by reinvestment of monies saved at the pump?

 

[darkbeaver]

The majority of Canada's oil is designated for export. This means that the majority of the cash generated from operations is 'new money' that comes in from outside Canada.

The cash saved at the pumps (and related) will not come close to replacing the funds. To give you an idea, O&G companies contribute approx $18 billion in income tax, royalties and misc to the general revenues to Fed and Prov gvt combined.... Income taxes from supporting service industries to O&G bump that number.

To put it in context, $18 billion was about 7% of the Feds total budget in 2012.... Do you think that this will be made back by reinvestment of monies saved at the pump?

And I think you've described the weapon unleashed by the USA and the Saudis against the Russians. But this is accellarating to stampede away from the dollar at a greater pace than the drop in the Russian economy. So it a very desperate move that will end in disaster. The pace and timing of that disaster in now out of western hands i think. The disaster was planned anyway, escape being the designers goal.