Recession just around the corner?

[stomper]

I've been in the patch for almost 30 yrs. Seen it go up and down a few times. We all sit and whine about it but no one has a solution. Heres mine:

Set a floor price on oil of $75 bbl. If a company wants to import the cheap saudi stuff they pay a tax to the government like a tarriff. If the price goes up on the world market we use the $75 oil first at home then export if there is excess. That way we keep the jobs going, we keep drilling and mining and consumers get reasonable priced gasoline and the world keeps spinning. Think it wont work? Look at our milk, marketing board sets the price , farmer is happy $$$$ and we pay the price as usual. Its either this or cheap oil and raise taxes cause we all want our roads plowed when there is 1/2 cm of snow and we want a fire hall within 2 blocks of our house next to the hospital with an advanced life support ambulance and helicopter.

Sorry thats my rant for the day

 

[fredw]

Thats not correct, and what the oil company's want you to believe.. Oil patch is less than 30 years old in alberta and before that we still survived, made a good living and always had food on the table..

Back in 1974 we received our first gas well and have had many over the future of the farm... Many said you could only make it because of the wells... Well now those same wells are cementing off by the year and we are still above water the same as we were before they came... Yes they help make the bottom line, but don't dictate the farm much

yes it was nice income and raised crazy land prices but now we also seen its ulgy side as well... leave that alone for now

i was in the patch in1986 and our break even was 9 dollars, prices were at 12... Pump jacks still turned and we kept cost down.. Services were in line... And a good wage was 10 to 15 dollars/hr... In line with all other bussiness

if you now look at other industries... They are not paying anything close to what the patch is paying, and good workers are lost to the pach that should be in other industries.. Then look at how the fuel price dictates all other bussiness..This makes it harder for all society to carry on, and why corrections must happen

prices of wheat back in 86 were 2 to 3 dollars... They are now 5 to 6 dollars... Again follow a modest growth line

All Pigs get slaughterd, just a matter of time

This entire province does revolve around the oil industry. And it would be best if everyone pulled there head out of the sand and realized that. The trickle down affects everyone from ceo's to grocery baggers. Will life go on? Yes of course it will. Would everyone benefit if oil hovered around 80-90 bucks... You bet.

Fred how do you feel about 2 dollar wheat and 20 bushel yields ? Cause that's 40 dollar oil for the the rest of the province....

 

[somethingnuw]

Seen a new truck at the dealer last week, a fancy tonka truck, sticker over 90 grand... Dealer said today sold to young family with a small kid living out of a condo/apartment .... He has a oil patch job

have we seen this stuff before with our younger generation with the fancy patch job and big truck, and toys... When things go south... And financed to the nuts

let me know next year with 10k on his rig ill offer him 40k

 

[800HMX]

We (the West) have had a great run since 2008 - every opportunity to capture a top wage, save a few bucks and pay down debt. With this run coming to an end, there certainly won't be too many tears shed in the East as they have been watching this extravagance from the sidelines for years (trucks, sleds, quads).

But what goes up must come down. 2015 Budgets were based on $90 oil, then $70 oil and now $50 oil. Nothing goes around at $50. Q1 2015 will be moderately busy (good for some, not so much for others) as 2015 committments/contracts are fulfilled and budgets are re-established. The way it looks, very little activity in Q2 and Q3, with maybe some ramp up in Q4 in preparation for 2016 (if the price recovers above $75). Many Service Companies are flush with cash and can wait out 2015. The bigger impact will be to those in the workforce that didn't have much of a long term plan.

 

[pfi572]

Long term is 30 days right ??

 

[fidorama]

let me know next year with 10k on his rig ill offer him 40k

guy will likely owe more than that, the truck will get repossessed, and go up for auction

 

[gates559]

guy will likely owe more than that, the truck will get repossessed, and go up for auction

more like, he will refinance his house and roll whats left owing into his new mortgage and trade it in on a 103k 2016 model. Dealership will write a check for his old rig, giving him a few bucks in his pocket.

 

[arff]

more like, he will refinance his house and roll whats left owing into his new mortgage and trade it in on a 103k 2016 model. Dealership will write a check for his old rig, giving him a few bucks in his pocket.

So true,,,


I have land for sale in the Arctic....

 

[Keith Brown]

The best solution for low oil prices is low oil prices. This to will pass Alberta will rise again.

 

[rzrgade]

So true,,,


I have land for sale in the Arctic....

i know a guy.....I was sledding in Cabo with him.....he's lookin for a time share up there ...

 

[imdoo'n]

i know a guy.....I was sledding in Cabo with him.....he's lookin for a time share up there ...

send me his number, i have a great deal for him, can move in and renovate right away. sooner the better, before snow disappears.

 

[freeflorider]

Yesterday I placed an add in a local paper for a Logging truck driver. I received 10 resumes by email, 8 of them from guys in northern Alberta. Have never had that before when placing a help wanted add.

No way but it's coming, the only problem is they need $50 hours starting wage to keep up the payments on there toys.

 

[skinnybitch]

How many people do you know that have already lost their jobs or maybe have had their wage/hours cut?

 

[recguy]

No way but it's coming, the only problem is they need $50 hours starting wage to keep up the payments on there toys.

That wage would be worth it if they are not camel jockeys and are true Canadians that grew up driving in Alberta their whole life.

 

[sumx54]

Slum cut 9000 jobs. Holy mackerel. Buckle up, here it comes.

 

[LennyR]

Slum cut 9000 jobs. Holy mackerel. Buckle up, here it comes.

I think that is approx 6 or 7 percent of their manpower. Gotta love the media and gloom and doomers. If the announcement was " slum cuts 6 % of workers " , we'd all say pfft . Most companies have been looking for a way to get rid of a few liability and useless workers, timing is great for that.

 

[arff]

send me his number, i have a great deal for him, can move in and renovate right away. sooner the better, before snow disappears.

1 900 ### 1224


Smooth talker. Cabo sled rider.

 

[Stompin Tom]

No way but it's coming, the only problem is they need $50 hours starting wage to keep up the payments on there toys.

$44.00 per hour is pretty much the norm around here for a logging truck driver

 

[catlove7]

Difference between $40 oil and $2 wheat @ 20bu ac is that us farmers will still forge on, seed a crop and hope for the best, oil companies just pull the plug until prices rise.


Sent from my iPhone using Tapatalk

It is interesting that you think the farmers with continue on farming they are farmed by the fertilizer company's and the markets dictating what they will get for the raw product. Only the big guys I.E Hutterites will be farming sad to say or think this way but the goverment wants it this way so they can control it a little more. I think we r going to see a huge inflation cycle which is going to suck

 

[LennyR]

May be a bit of a derail but somewhat related I believe, Does anyone know or is aware of a recent change in Canadian banking laws that now allow chartered banks to use their depositors funds to cover any losses incurred by that institution in its entirety ? I was told that that change to the banking act has been made or is in the massaging process.
Scarey but unfortunately wouldn't be surprising . Hopefully rumor .