...U decide !!??

[BIGFOOT]

...Open to everyone's thoughts ....
CTV Calgary- Drilling company blames gov't not economy for slump in gas industry - CTV News, Shows and Sports -- Canadian Television

 

[Summiteer]

Has the new royalty regime even taken effect yet? Is the slow down actually slow? Or just not booming. This province is so used to a boom-time economy that when it slows to normal everyone panics and thinks it's the end of the world. I think that the industry has been raping us for long enough, no reason they shouldn't pay for what they take out of the ground, especially if they are sending it out of country to be processed. If they can afford to pay a consultant $1500.00 a day to run a phone, they can afford to pay for their product.

 

[blastoff]

The media is so full of crap, sure in hell is not govt. fault, the world gas market is down THIS is the reason and the only reason if the price was back in the 10 13 dollar mark the place would be nuts

 

[Snowdin]

Sumiteer summed it up pretty well. The oil companies started a slow down 3 years ago. They were trying to curb the high cost of doing business. Then came along the economic recession, which was world wide not just locally related. The governments timing for a royalty increase sucked, that's all. There is no reason why the oil companies should be raping Albertans and taking the money to other countries the way they have been.

Here is my solution to the whinny oil companies. If you don't like the royalty regime then Alberta will buy you out and you can go home. Let's see now Imperial Oil made 40 Billion profit last year. 4T BILLION. Now that would go a long way to build new infrastructure, hire doctors, nurses, build schools....bla, bla, bla. and that is just one oil company. I know the government never have done well being in business in the past but it's OUR resources that are being exploited and taken away from us.

 

[sumx54]

Has the new royalty regime even taken effect yet? Is the slow down actually slow? Or just not booming. This province is so used to a boom-time economy that when it slows to normal everyone panics and thinks it's the end of the world. I think that the industry has been raping us for long enough, no reason they shouldn't pay for what they take out of the ground, especially if they are sending it out of country to be processed. If they can afford to pay a consultant $1500.00 a day to run a phone, they can afford to pay for their product.

Good points summiteer but you make it sound so easy " hello, hello operator...umm ya I'd like to complete this well, ah could you please give me the number for oh say a well completer of sorts " LMAO!!




kidding of course :d

 

[Murminator]

1 guy from one of the drilling co. I work with came right out and said no one is happy unless everyone is paying a buck fifty a litre....then we're happy. When oil was $50 a barrel everyone was happy and working big multi billion dollar projects on the go then it got stupid projectson the go all over the place price of oil shoots up everyone include Joe Paycheck is rich. Oil a $150ish a barrel price of labour is ridiculous drilling rigs and workers at the max...then the bottom falls out. The calculaters come out and see how much money was made at $150/bar compared to $50. Oil co. decide to park stuff get some maintence done get the price of labour down because we running at full steam at 140-150 a barrel they will quickly they will recover the money they lost sitting and less wear and tear.
So I guess the question should be why drill at $70 a barrel? when they can hold off till $150....it is too easy to blame the gov then to tell the real story of GREED to Joe Paycheck

 

[Garryese]

All good points however this is a problem with socity in general and the media and civil law in particular. It is always someone elses fault (Search and Rescue law suit in BC as an example). It seems no one (business, Gov., media or individuals) are willing to accept an undesirable situation as their fault. As pointed out in other posts, oil companies methodically slowed operations and it was a long term profit/growth decision. The decisions may have been good ones from a business management point of view, but the timing was poor.... but no the less those decisions were made in the conference rooms of the oil companies not the government. The oil companies chose to exploit the economy and it back fired, plain and simple.

Has anyone noticed as the oil price went up the global economy weakend, and just after the price of oil hit $150US/bar the global economy started it's melt down? Rememering that energy supply and price is a major driver of the economy world wide, IMO the energy companies are as much at fault for the recession as the US banking system.

My two bits.

 

[steveo10]

royalties
gas is low (needs to double)
new hugh gas deposits found in east-central U.S

 

[plio7]

1 guy from one of the drilling co. I work with came right out and said no one is happy unless everyone is paying a buck fifty a litre....then we're happy. When oil was $50 a barrel everyone was happy and working big multi billion dollar projects on the go then it got stupid projectson the go all over the place price of oil shoots up everyone include Joe Paycheck is rich. Oil a $150ish a barrel price of labour is ridiculous drilling rigs and workers at the max...then the bottom falls out. The calculaters come out and see how much money was made at $150/bar compared to $50. Oil co. decide to park stuff get some maintence done get the price of labour down because we running at full steam at 140-150 a barrel they will quickly they will recover the money they lost sitting and less wear and tear.
So I guess the question should be why drill at $70 a barrel? when they can hold off till $150....it is too easy to blame the gov then to tell the real story of GREED to Joe Paycheck

thats just about right on the money.

 

[FyreRyder]

It drives me nuts....

The oil companies have been sitting on the gravey train for the last 4-5 years with comodity prices well above their targets. Everything above target was pure profit for them. They knew it was a gravey train. They knew it was going to end as it's always been cyclic. Now the comodity prices fall and the John Q public is suppose to feel bad when they scream the "sky is falling". AND yet look at pump prices at nearly a dollar a liter... there is no sky falling on downstream profits.

It's crazy that they have cut their budgets so drastically. Almost everyone has moved away from preventative maintenance to crash maintenance. Eventually it will cost them a lot more money in the long run with this philosophy. But in the interm, I have apprentices working 15 days in the last 90. At this rate we won't have anyone left when things pick back up again and the ones left will have to double shift to keep up.

Regarding the provincial politics they do have a bearing but the onnus can not be put on them entirely. Northern BC is in the same situation as Alberta. It's all about the allmighty dollar at the stock exchange for natural gas. And there are some companies quietly laughing in the back corner because they hedged gas at seven bucks.

It's a vicious cycle....