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is now the time to invest in oil stocks?

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  • Jan 20th, 2019 12:27 am
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Deal Addict
Aug 17, 2008
1766 posts
920 upvotes
ukrainiandude wrote:
Dec 2nd, 2018 8:46 pm
Don’t know if it worth it.
Western Canada Select (WCS), the benchmark for heavy oil in Alberta, continues to trade below $15 per barrel, or roughly $40-per-barrel lower than WTI.
FYI;
WTI (CLF9) settle Nov 30/18 $50.93
WCS (Hardisty) implied Nov 30/18 ~$22.43
Deal Guru
Jun 26, 2011
11602 posts
1868 upvotes
Markham
jerryhung wrote:
Dec 3rd, 2018 10:43 am
LOL

TSX energy, still flat to red for most
MEG was up, now -3%

CVE/CNQ still holding to +9% gains
Just goes to show we have bigger issues and how impactful it would be if our federal government stepped up to the plate
Sr. Member
User avatar
Oct 14, 2015
525 posts
179 upvotes
BNN poll: Do you agree with Notley’s decision to mandate oil production cuts?

Image

I'm in the what are the unintended consequences cohort.

As Paul Harvey used to say, "If you don't regulate yourself, government will do it for you".

Apparently, oilcos had voluntarily reduced production by 200k b/d.
The United Cons (UCP) in Alberta were calling for a cut of 400k b/d.
Hopefully, the NDP measures will prevent the layoffs which were inevitable.
One more positive to this, as I see it, is that these production cuts will only be in effect for one year.

_______________________________
"If life were logical, it's men who would ride side saddle." ~Cowboy Perk Carlson
Newbie
Feb 9, 2016
28 posts
9 upvotes
Who is familiar with Gibson Energy (GEI.to)? How much will Alberta's decision to cut production and crude reserves hurt this stock? I was thinking about buying in December. Now I want to wait and see what happens.
Deal Addict
Aug 12, 2004
3996 posts
1295 upvotes
Calgary
IrwinW wrote:
Dec 3rd, 2018 11:11 am
BNN poll: Do you agree with Notley’s decision to mandate oil production cuts?

Image

I'm in the what are the unintended consequences cohort.

As Paul Harvey used to say, "If you don't regulate yourself, government will do it for you".

Apparently, oilcos had voluntarily reduced production by 200k b/d.
The United Cons (UCP) in Alberta were calling for a cut of 400k b/d.
Hopefully, the NDP measures will prevent the layoffs which were inevitable.
One more positive to this, as I see it, is that these production cuts will only be in effect for one year.

_______________________________
"If life were logical, it's men who would ride side saddle." ~Cowboy Perk Carlson
I will say this, although I am certainly not a NDP supporter, Notley has being fighting tooth and nail for the province's best interests and doing the right actions. The Federal Liberals on the other hand...they could step in easily in the Kinder Morgan situation but did the symbolic move of buying the pipelines instead of making a stance against BC's actions. The BC NDP are determined to burn this country's economy to the ground with ideologies versus working collaboratively with other parts of Canada. If Trudeau made as much effort to ensure the pipelines proceed as he did legalizing pot, there wouldn't be a crisis right now. He's been in power for 3 years now,

The country's biggest industry is natural resources, yet there has not been any industry as ostracized by multiple levels of government as the energy industry Meanwhile everyone still drives cars. This is perhaps the worst state that Alberta has been since early 2016, and the reality is that the current political climate in Canada has made it hostile for companies to invest in Canada. I would be prudent in terms of investing, there will be some companies that do not make this current politically created crisis, and the current drop could be a prolonged one. I would invest in ones that are not heavily dependent on WCS, there is no quick fix for it.

Canada is its own worst enemy at times. This wound is self-inflicted
Deal Fanatic
Feb 15, 2006
7609 posts
2016 upvotes
Toronto
Firebot wrote:
Dec 3rd, 2018 4:05 pm
I will say this, although I am certainly not a NDP supporter, Notley has being fighting tooth and nail for the province's best interests and doing the right actions. The Federal Liberals on the other hand...they could step in easily in the Kinder Morgan situation but did the symbolic move of buying the pipelines instead of making a stance against BC's actions. The BC NDP are determined to burn this country's economy to the ground with ideologies versus working collaboratively with other parts of Canada. If Trudeau made as much effort to ensure the pipelines proceed as he did legalizing pot, there wouldn't be a crisis right now. He's been in power for 3 years now,

The country's biggest industry is natural resources, yet there has not been any industry as ostracized by multiple levels of government as the energy industry Meanwhile everyone still drives cars. This is perhaps the worst state that Alberta has been since early 2016, and the reality is that the current political climate in Canada has made it hostile for companies to invest in Canada. I would be prudent in terms of investing, there will be some companies that do not make this current politically created crisis, and the current drop could be a prolonged one. I would invest in ones that are not heavily dependent on WCS, there is no quick fix for it.

Canada is its own worst enemy at times. This wound is self-inflicted
Yes this wound is self-inflicted by Albertans. It's not what the Trudeau Liberals haven't done. They have tried. But if the BC government, also NDP who got elected promising not to allow the pipelines to be built, what can the Federals Liberals or not, or Albertan do? There's also the Keystone XL pipelines that can carry crude down to be processed. But that's facing more environmental reviews and slowdowns. The Federal Liberals did there part, the issues are in the US.

Maybe Alberta needs to invade BC and take it over, and build the pipelines. Or maybe Alberta needs to invade the US and take it over, and build the pipelines. If not, the self-inflicted wound is still there. The rest of Canada is doing quite well, with strong enough economy and low unemployment rate.

Oil is not the only game in town.
Deal Addict
Aug 12, 2004
3996 posts
1295 upvotes
Calgary
Arrgh wrote:
Dec 3rd, 2018 5:44 pm
Yes this wound is self-inflicted by Albertans. It's not what the Trudeau Liberals haven't done. They have tried. But if the BC government, also NDP who got elected promising not to allow the pipelines to be built, what can the Federals Liberals or not, or Albertan do? There's also the Keystone XL pipelines that can carry crude down to be processed. But that's facing more environmental reviews and slowdowns. The Federal Liberals did there part, the issues are in the US.

Maybe Alberta needs to invade BC and take it over, and build the pipelines. Or maybe Alberta needs to invade the US and take it over, and build the pipelines. If not, the self-inflicted wound is still there. The rest of Canada is doing quite well, with strong enough economy and low unemployment rate.

Oil is not the only game in town.
Keystone is one thing and international matters, the Trans Mountain pipeline is a national one.

BC's actions are unconstitutional, as it's blocking a federal project. Trudeau's government could force the issue on BC, but is not doing so to avoid a political battle.

And what is the other game in town? Manufacturing? That battle was long lost and on life support until GM pulled the plug this month. Natural gas? That is in even worse shape than oil. Lumber? Steel? All resources have dilemmas with the clown running the show down south. I sincerely hope you do not say that Canada is run by real estate...

Canada's economy largely runs on natural resources. One of the major ones is oil.

The Kinder Morgan pipeline is the one pipeline that would give some liberty in who Canada's resource customers are.

https://nationalpost.com/news/politics/ ... t-is-built

https://vancouversun.com/news/local-new ... n-pipeline

It's funny that BC wants to turf plans for pipelines, but cried foul as soon as Alberta threatened to cut the tap to gasoline into BC.

And I could also bring up equalization plans...Alberta could just keep the money they divert to other provinces.
Deal Fanatic
Feb 15, 2006
7609 posts
2016 upvotes
Toronto
Firebot wrote:
Dec 3rd, 2018 6:01 pm
Keystone is one thing and international matters, the Trans Mountain pipeline is a national one.

BC's actions are unconstitutional, as it's blocking a federal project. Trudeau's government could force the issue on BC, but is not doing so to avoid a political battle.

And what is the other game in town? Manufacturing? That battle was long lost and on life support until GM pulled the plug this month. Natural gas? That is in even worse shape than oil. Lumber? Steel? All resources have dilemmas with the clown running the show down south. I sincerely hope you do not say that Canada is run by real estate...

Canada's economy largely runs on natural resources. One of the major ones is oil.

The Kinder Morgan pipeline is the one pipeline that would give some liberty in who Canada's resource customers are.

https://nationalpost.com/news/politics/ ... t-is-built

https://vancouversun.com/news/local-new ... n-pipeline

It's funny that BC wants to turf plans for pipelines, but cried foul as soon as Alberta threatened to cut the tap to gasoline into BC.

And I could also bring up equalization plans...Alberta could just keep the money they divert to other provinces.
Yes, the Federal government can fight with the BC government, sanctions, law suits, invasions, etc. Even after many years it still won't be resolved because BC people will still support a government against the pipelines in the next election. You can bark all you like, but don't expect a pipeline to be build across BC in days.

Canada's economy largely runs on natural resources, especially oil ?!? Be reminded this is 2018.
Sr. Member
User avatar
Oct 14, 2015
525 posts
179 upvotes
"As of last Friday, we were trying to figure out how we could minimize, absolutely minimize, our capital expenditure," Evans tells Bloomberg, but the cuts announced over the weekend have "taken away the belief that we’re going to have to lay off people before Christmas." ~ CEO Derek Evans, MEG Energy
https://seekingalpha.com/news/3414410-a ... y-ceo-says
Deal Addict
Jan 3, 2013
1864 posts
153 upvotes
Sidney
Firebot wrote:
Dec 3rd, 2018 6:01 pm


It's funny that BC wants to turf plans for pipelines, but cried foul as soon as Alberta threatened to cut the tap to gasoline into BC.

And I could also bring up equalization plans...Alberta could just keep the money they divert to other provinces.
Its also funny that Notley, under the guise of "interprovincial business is a necessity and its unconstitutional/illegal to block it, promptly goes and blocks BC Wine. So what is it? I understand her gripe, but hypocritical moves like that just make her look like a kid who says "its my ball and I'm going home".
Newbie
Dec 8, 2013
73 posts
23 upvotes
Yeah that's helpful. Extremes never do any good. Shutting down Alberta does nothing to change world oil demand. Ethical oil is a realty. You can't simply ignore all the social benefits of Canadian oil vs Saudi/Russian/Nigerian/Venezuelan etc, and say shut it down because it is has more C02 emissions. Take a look at the big picture before spewing rhetoric, it does nothing but polarize the country, and that's working so well in the US right now.

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