$50 oil, now what?

[suntan]

Originally posted by Sugarphreak
Things are definitely improving in O&G... in fact I've been run off my feet with little projects lately, and there are even a few major projects I am aware of that are very close to getting started.

Meanwhile over at Reddit and CP people are still wondering if people in Calgary make over $100K.

[g-m]

Originally posted by HiTempguy1
I simply don't see how anyone can believe/forecast things ever getting back to where they were with the way the general worldwide economy is.

Anybody that was specifically devoted to new construction style work in O&G should continue their transitions to other fields of employment/training. Even if we see $70-$80 in the next two years, I think the major oil producers bit off more than they can chew and have realized a $16bil facility like KEARL is no longer necessary/worthwhile.

I'm placing bets on Suncor FAM being the last mining oilsands site built. Anything else will be SAGD, which strikes me (from my limited exposure to it) as being much less manpower intensive, both in design, construction, and running requirements.

As for $50, my understanding is that lots of sites can break even/earn a small profit at $50/barrel.

you seem very well informed. You do o&g BD, right?

[Mitsu3000gt]

Originally posted by Neil4Speed


I'm convinced that America prefers low oil prices, they are a net consumer after all. Also, low prices at the pumps are good for an election for the democrats. Little (comparatively) of US GDP comes from O&G.

The refineries seem to have the most control over the prices at the pump, regardless of what oil is doing. I was still filling up at $0.90 or so with $30-40 oil. Just a few days ago regular gas was over $1.00 with oil in the $40's. I'm sure there's more to it than you or I will ever know though haha. As I've said may times though, give me $100 oil and I will pay $2.00 at the pump with a smile on my face.

[ExtraSlow]

Originally posted by Dave P
I went out and bought a Wake Setter and lifted dodge. ALBERTAS BACK BABY!

Fuck yeah.

[bjstare]

Originally posted by g-m
you seem very well informed. You do o&g BD, right?

[ickyflex]

Global Demand still rising 1.2-1.5 Million bbl/day annually and supply slowly taking shocks. I don't know why anyone says it won't ever go back in either direction. Anything is possibly when it comes to oil. It's not going anywhere anytime soon and it doesn't take a hell of a lot these days to go from over supply to under.

There will be no steady climb or steady fall of oil, the market doesn't know how to balance itself and how does the market even adjust for one off situations like civil unrest in Iraq and Nigeria and fort mac fires. If that happened in early 2014 oil would have been like $120.

At the end of the the day at $50 supply is shrinking and demand is growing. This time last year everyone thought oil had bottomed and we were in for another run. Opposite happened, now everyone is painting doom and gloom for the industry.

Cyclical industry, simple as that.

[suntan]

Solar and wind power will replace it all. Yup.

[HiTempguy1]

Originally posted by cjblair

That was my response

Naw, I'm just an asshole on an internet forum. Don't mind me.

[freshprince1]

Nothing yet. Don't get excited about this, its just an arbitrary threshold. I don't think demand variables have changed/improved enough to sustain the $50 mark for long. This $50 spike is likely due to short term supply restrictions (i.e. Nigeria, Oilsands...etc).

[zieg]

But expect gas(oline) prices to keep climbing, lol.

[suntan]

Well boys, prepare to light up those cigars with hundreds again.

[Darkane]

Originally posted by suntan
Well boys, prepare to light up those cigars with hundreds again.

Lol. Money money money money ..... MONEEHHH!

[kaput]

.

[vengie]

Originally posted by kaput
I don't see Canada attracting much investment at any oil price until the political and regulatory situation reverses. It's become a high cost high risk country for the industry. We can't even get pipelines built across our own provincial borders. The stupidity surrounding Energy East is humiliating. Our track record of paralysis by analysis and arbitrary rules that tend to change during the review process prevents any sort of decision (for or against) from being made. Why would anyone commit hundreds of millions of dollars over an unknown number of years to something so ambiguous? And in the rare case that a project does get approved, it doesn't seem to mean much anyway - look at Northern Gateway. It's no wonder Canadian companies are starting to look elsewhere for investment opportunities.

Meanwhile, the US has gone ahead with substantial pipeline infrastructure, deep water ports, crude export terminals, and a number of LNG terminals. We watched them eat our lunch and then gave them our bus fare before they could ask for it. What's going to happen next if Donald Trump wins? I'm sure him and Trudeau/Notley will get along real well. I wonder what nickname he will adopt. Cute Justin?

This.

Part of me is looking forward to the inevitable relocation down south due to activity.

[Feruk]

Originally posted by kaput
Meanwhile, the US has gone ahead with substantial pipeline infrastructure, deep water ports, crude export terminals, and a number of LNG terminals. We watched them eat our lunch and then gave them our bus fare before they could ask for it. What's going to happen next if Donald Trump wins? I'm sure him and Trudeau/Notley will get along real well. I wonder what nickname he will adopt. Cute Justin?

Agreed on our government's incompetence. However, to suggest the incompetence is somehow the fault of Notley/Trudeau is nonsense. Both the PCs and Conservatives couldn't get shit all done either.

[Darkane]

We need Brad Wall as PM.

He's speaking here at a conference right away if I recall.

[BerserkerCatSplat]

Originally posted by HiTempguy1

Anybody that was specifically devoted to new construction style work in O&G should continue their transitions to other fields of employment/training.

Ugh, don't remind me. Got stuck in construction by a company that paid lip service to transitioning me to where I wanted to be, then laid me off. Four years out of school, nothing but construction experience, no prospects. Fun times.

[Masked Bandit]

Originally posted by Darkane
We need Brad Wall as PM.

He's speaking here at a conference right away if I recall.

Brad's been asked several times about going national and unless it's changed very recently, his response has always been a firm 'no thanks'. I don't know that the left leaners out East would swoon for him like we do here either. Can we make him Vice President of Western Canada or something like that?

[Zhariak]

Originally posted by Masked Bandit


Brad's been asked several times about going national and unless it's changed very recently, his response has always been a firm 'no thanks'. I don't know that the left leaners out East would swoon for him like we do here either. Can we make him Vice President of Western Canada or something like that?

Orrrrrrr Alberta/Sask could separate... And Mr. Brad Wall could lead us all!

[kaput]

.