O&G is doomed, sky is falling, blame stelmach, etc

[finboy]

Originally posted by USED1


I specifically said SAGD you fucktard.

personal attacks, great way to get your point across

[dezinr]

I'm heading there for the month of March to check things out on both coasts but mainly Perth as it has been booming since I was last there in 06.

[Toms-SC]

Originally posted by Super_Geo
When the royalty review was passed 47 of 98 employees at my company was fired. By noon. I had to sell my condo for 70% of what I bought it at. None of my friends have jobs either... they all got fired too the day of the announcement.

Obvious troll is obvious

[Antonito]

Originally posted by Super_Geo
When the royalty review was passed 47 of 98 employees at my company was fired. By noon. I had to sell my condo for 70% of what I bought it at. None of my friends have jobs either... they all got fired too the day of the announcement.

I call BS because nothing bad has ever happened and never will. Ever

[old&slow]

See todays paper...Record profits for O&G...
Obscene amounts of money...and just as much greed!

[Schwa]

Originally posted by old&slow
See todays paper...Record profits for O&G...
Obscene amounts of money...and just as much greed!

As said in the first page, profits in 2007 do not reflect what is happening today. They are a result of projects from the PAST and high commodity prices today.

The royalty rate is going to affect the amount of NEW projects being done. In any case, just because a company is making profit doesn't mean Alberta is benefiting from it. They are simply making their profits elsewhere.

[googe]

Originally posted by Toms-SC


Obvious troll is obvious

You should take him seriously, if it really happened then he might become an hero

[old&slow]

Originally posted by Schwa


As said in the first page, profits in 2007 do not reflect what is happening today. They are a result of projects from the PAST and high commodity prices today.

The royalty rate is going to affect the amount of NEW projects being done. In any case, just because a company is making profit doesn't mean Alberta is benefiting from it. They are simply making their profits elsewhere.

The oilsands have yet to get into high gear...with prices remaining high they will reap many $.
I read that 50 to 60 $ was profitable for them.
I think they will be doing fine in the future.

Another year will prolly bring Natural Gas back up!

[Supa Dexta]

pretty sure it's 30$, but can't remember off hand..

[old&slow]

Actually, I think u r right, the 50 to 60 was gravy money!

[broken_legs]

Heres some facts:

All existing and approved oil sands projects will
withdraw less than three per cent of the average
annual flow of the Athabasca River.

Operating costs to produce a barrel of oil from
bitumen averaged about $18 in 2004.

It takes approximately 2 to 3 barrels of water to
produce one barrel of bitumen. However, this is
total water use, including recycled produced
water. Total make-up water required per barrel
of bitumen is much less; usually 0.5 or less
once full recycling facilities are in place.

It takes about two tonnes of oil sand to produce
a barrel of oil.

It’s estimated that 82% of the total bitumen
ultimately recoverable will be via in-situ
techniques.

^^ Current techniques (SagD, Css etc..) are only producing 5-15% of in-situ bitumen.
I think THAI is supposed to get it up to 60-70%?

http://www.energy.gov.ab.ca/OilSands/954.asp

http://www.energy.gov.ab.ca/OilSands...t_OilSands.pdf



EDIT:
Oooooooooooohh

And another interesting Tid Bit I read in this magazine: 'Oil & Gas Network' - www.oilgas.net

I think it was in the second to last issue that came out. Something about all of the conventional (conventional heavy oil ie css, sagD etc..) extraction techniques for heavy oil are only getting 5-15% of the bitumen in place and in 10 years unless some other new technology is created that can produce a higher percentage of the bitumen that PRODUCTION WILL ACTUALLY START TO DECLINE SHARPLY.

Anyone else read that? I looked and cant find it online...

[barmanjay]

Originally posted by benyl


I know that EnCana said that they would cancel $1 billion in projects in Alberta if Stelmach implemented the Royalty regime.

They have oil in Sask too...

i did a job for a guy that does research and etc for encana.

He said when the stelmach gov mentioned raising rates,... the very next day the head of encana cancelled 1billion of proposed future projects.

crazy!

[The Cosworth]

Well we are building at least three transmission lines for four companies who are building plants (don't ask me what I am electrical) up near Conklin, Brazeau (near Drayton Valley), Scotford is upgrading and a couple others.

StatOil Hydro has some big pockets, I am pretty sure they wouldn't have bought NAOSC if they didn't think there was money here, or I doubt suncor would have negotiated royalty's with the government if it wasn't useful.




SuperGeo, I am sorry to hear about your layoffs but I am a little confused as to why they closed shop like that? If you saw encana's stock it barely even moved the day the royalties were confirmed. So to me there was no IMMEDIATE effects from the announcements, just some uncertainty.

To me it almost sounds like your upper management just wanted out and saw this as a good excuse.

A little subcontractor for Colt I used to work for (we did the electrical, PLC, and SCADA design) has pushed from 13 people when I started in November two years ago, to 30 when I left in April, and are now over 45 with plans to hire two more electrical technologists this graduating year. So I am not sure what end of it you guys were in but I know there are little guys surviving let alone growing.

[rmk]

Originally posted by barmanjay



i did a job for a guy that does research and etc for encana.

He said when the stelmach gov mentioned raising rates,... the very next day the head of encana cancelled 1billion of proposed future projects.

crazy!

Encana has projects in SK and BC. Also work in the US.

[Supa Dexta]

Pretty sure encana is on the east coast too, and god knows where else..

[barmanjay]

I'm sure we'll be fine for a few more years

[davidI]

Originally posted by brendankharris

A little subcontractor for Colt I used to work for (we did the electrical, PLC, and SCADA design) has pushed from 13 people when I started in November two years ago, to 30 when I left in April, and are now over 45 with plans to hire two more electrical technologists this graduating year. So I am not sure what end of it you guys were in but I know there are little guys surviving let alone growing.

For every success story there are 4 failures. I know several people who were riding the options wave last year and are screwed now. The majority of juniors are hurting. If they haven't shut up shop they're having a hard time retaining people because no one is willing to take on share based compensation right now.

As a few people have mentioned, investment in Alberta has been cut back dramatically. I think NE B.C. and Sask will have a mini-boom this year. I don't think a slow down for Alberta is all bad...we just have to wait and see if all of the drastic tax / royalty changes drag investment to a halt.

[broken_legs]

Some More Facts for ya'll:

1.) Stelmach is already reviewing 4 types of wells:
Deep Foothills and 3 other types. The royalty rate will be adjusted on these wells to make them more economically feasible.

2.) The slowdown we are experiencing right now has nothing to do with Royalties but Im sure everyone will blame the Royalties. It has to do with collusion of O&G companies to lower service company prices, it has to do with the drop in NG prices from their 14$ high, it has to do with the Income Trust Rules changing.


3.) NG Production in Alberta is at a 6 year LOW expect prices to rise soon as well as drilling activity.


4.) All of the companies that are going to be drilling up Sask and BC (which had the biggest BC land sale in 40 years around Dawson Creek in 2007) are based in Alberta.

I think we'll be just fine!

[Canmorite]

With Nat. Gas prices on the rise, that will only help the smaller drillers.

[4wheeldrift]

Originally posted by brendankharris

SuperGeo, I am sorry to hear about your layoffs but I am a little confused as to why they closed shop like that? If you saw encana's stock it barely even moved the day the royalties were confirmed. So to me there was no IMMEDIATE effects from the announcements, just some uncertainty.

To me it almost sounds like your upper management just wanted out and saw this as a good excuse.

A little subcontractor for Colt I used to work for (we did the electrical, PLC, and SCADA design) has pushed from 13 people when I started in November two years ago, to 30 when I left in April, and are now over 45 with plans to hire two more electrical technologists this graduating year. So I am not sure what end of it you guys were in but I know there are little guys surviving let alone growing.

Consulting engineering really didn't take much of a hit from the royalty review. Some projects got throttled back and some shelved, but most companies were already so busy they had more work in house than they had people to do it. That was true of the company I work for before the review, and it's still true now. Some companies did take a bit of a hit, but the market for engineers and technologists is still so hot that it only helped out the companies that were and are still so desperate.

The guys who got smacked were the drilling outfits and the service companies, and some of the smaller outfits doing exploration and development. And in most of those cases the royalty review isn't the only factor to blame in that happening, it's just one of them. Cost of construction, uncertainty relating to federal clean air regulations, new and tighter environmental regulations and a host of other factors are all weighing heavily at the moment. But even with natural gas and conventional oil taking a hit, there's still so much tarsands work going on that the bottom isn't likely to fall out any time soon with the price of oil where it is.