JoeUrban
Active Member
I would hate to see Enmax sold just to shore up the budget, that would be our waste of oil and gas money all over again. If anything I would want money from an Enmax sale earmarked to jump start a new direction for the city.
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- Thread starter Oddball
- Start date
Stephen Ave
Active Member
I tend to agree. You hate to see a revenue generator sold as a one time fix. I don't know how long long this downturn will last but if the city can weather the storm we'll be that much better in the long run.
I think as high as $200.00 a year per dwelling is decent. That would add, what about $120 million to the coffers?
JonnyCanuck
Senior Member
Some traders in the stock market who follow energy closely, are forecasting a 'bull market' over the next few years in light crude and natural gas. Insiders are saying that inventories of both are very low heading into winter, and this will trigger more drilling and production in 2019 and beyond. Stock prices of most energy producers (other than the big guys) are at extremely low valuations and therefore very attractive to buyers ... if you believe the run up is coming. Traders are saying the recent slide in WTI price is temporary.
That said, they are bearish on heavy crude (bitumen) and expect the discount to exist into 2020 and until the transportation issues are overcome.
The other 'mind blowing' piece of information I heard is that some of the gulf coast refineries had converted to heavy crude in anticipation of Keystone XL and other transportation methods. The demand for heavy crude for these refineries is quite high and it would be priced at a premium ... if only Canada could get the oil to the Gulf Coast!!! Instead we are forced to sell it to other U.S. refineries (i.e West Coast) at a big discount.
That said, they are bearish on heavy crude (bitumen) and expect the discount to exist into 2020 and until the transportation issues are overcome.
The other 'mind blowing' piece of information I heard is that some of the gulf coast refineries had converted to heavy crude in anticipation of Keystone XL and other transportation methods. The demand for heavy crude for these refineries is quite high and it would be priced at a premium ... if only Canada could get the oil to the Gulf Coast!!! Instead we are forced to sell it to other U.S. refineries (i.e West Coast) at a big discount.
darwink
Senior Member
As soon as there is enough take-away the prices will converge with Maya minus the transportation costs to the Gulf. Enbridge's quiet exapnsions will hopefully help a little bit earlier than 2020, but right now it is brutal. Mid and small producers are going to get gobbled up by the big integrated companies as it is likely they will start to not be able to service their debt.
JonnyCanuck
Senior Member
A column by Don Braid in the Herald today suggests that the Trudeau Liberals may be orchestrating the 'transition' from oil sands energy to other forms. As much as Trudeau is known to say stupid and thoughtless things, I sure hope he is sincere when he says 'TMX will get built'. When exactly...we are not sure.
His lack of leadership or a clear energy policy (other than LNG), and the beating our economy is taking because of it, is telling. The rest of the world is looking at Canada and saying 'what are you guys doing?.You have an abundance of energy resources but you can't get out of your own way.'
His lack of leadership or a clear energy policy (other than LNG), and the beating our economy is taking because of it, is telling. The rest of the world is looking at Canada and saying 'what are you guys doing?.You have an abundance of energy resources but you can't get out of your own way.'
darwink
Senior Member
That is entirely a conspiracy theory. They could have let TMX die in the spring, but didn't.
The USA is having similar problems with pipelines as Canada, but have one benefit: Texas and Pennsylvania touch the coast and other areas have reasonable rail capacity (besides North Dakota being constrained by Chicago's rail congestion problems). Pipelines that go between states are having as great or greater problems as Canada, caused by their stronger states in some respect, and their proliferation of different levels of courts which do not have a logical flow between them.
The USA is having similar problems with pipelines as Canada, but have one benefit: Texas and Pennsylvania touch the coast and other areas have reasonable rail capacity (besides North Dakota being constrained by Chicago's rail congestion problems). Pipelines that go between states are having as great or greater problems as Canada, caused by their stronger states in some respect, and their proliferation of different levels of courts which do not have a logical flow between them.
JonnyCanuck
Senior Member
Well... yesterday's fiscal update further supports that theory in my mind. Nothing but total neglect of an extremely important contributor to Canada's economy ... not just Alberta's. Trudeau is in Calgary today so we will see how he responds to the criticism.
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darwink
Senior Member
The question is, what could be done that will actually do something before the pipeline bottleneck is gone? They bought TMX, and are working on the re-consultation. The government has cleared KXL, Line 3 and incremental Enbridge expansions.
It isn't like there are rail oil cars that are just sitting out there in a yard sitting idle that the government could buy.
It isn't like there are rail oil cars that are just sitting out there in a yard sitting idle that the government could buy.
JonnyCanuck
Senior Member
For those of us invested in energy, drilling and energy services stocks, this is getting scary. Just when you think stock prices can't go any lower ... they go lower!. Many junior companies are valued at levels far lower than in 2016 when WTI was down to $29 per barrel. Not understanding why the discount on WCS is so much greater now than two years ago when oil bottomed out in this current cycle.
. Many junior companies are valued at levels far lower than in 2016 when WTI was down to $29 per barrel. Not understanding why the discount on WCS is so much greater now than two years ago when oil bottomed out in this current cycle.
darwink
Senior Member
More production in Alberta and Sask, simple as that.
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Drumdriver
New Member
Why are we paying $1.00 a litre for gas when the refineries are getting the oil for $15 a barrell?
seems like another ripoff from the oil companies. No pitty coming from me I hope they all go bankrupt..
seems like another ripoff from the oil companies. No pitty coming from me I hope they all go bankrupt..
Drumdriver
New Member
remember when oil was at $100 a barrel we paid $1.20 a litre. now oil is at $15 a barrel and we still pay over a dollar. rip off
hope the oil companies all go broke.
hope the oil companies all go broke.
Habanero
Active Member
I wish the price at the pump reflected the price of a barrel, but there is usually a delay in the price change. Someone here more knowledgeable would know better, but I recall that the price for a barrel usually took a 2 or 3 months to reflect at the pump, and in August it was still around $40.00/bl and $25.00/bl three weeks ago. Plus there are fixed costs that don't change.
Drumdriver
New Member
Thats a joke because when oil goes up the price at the pump goes up the next day. Its all a scam to the people of Alberta. Rip off. Hope they all go broke.
No pitty from me for the thieves.
Habanero
Active Member
I believe that oil used for gas at the pumps is purchased as a commodity 3 months ahead of time, but yeah, the price never goes down much. Does anyone know what the fixed costs for gasoline would be? There's the refining process, the station itself, and the transportation of it. I wonder how much per liter that works out to be?