Comments on: Stuck between a rock and a hard place http://blog.rogersradiointernet.com/cormacmacsweeney/2007/09/28/stuck-between-a-rock-and-a-hard-place/ Fri, 29 Aug 2008 23:55:10 +0000 http://wordpress.org/?v=wordpress-mu-1.2.3-2.2.1 By: Cormac Mac Sweeney http://blog.rogersradiointernet.com/cormacmacsweeney/2007/09/28/stuck-between-a-rock-and-a-hard-place/#comment-14 Cormac Mac Sweeney Thu, 04 Oct 2007 23:35:55 +0000 http://blog.rogersradiointernet.com/cormacmacsweeney/2007/09/28/stuck-between-a-rock-and-a-hard-place/#comment-14 But Encana have now become only one of the first in a series of companies that claim they will drop investment if the report is adopted in full. There are now many others who want to pull out of our province if the measures are taken. Will that not affect the industry at all? Or do you believe this is where the oil is and no matter what there will be investment and profit? (Ihave to play both sides of this argument ... it's my job) But Encana have now become only one of the first in a series of companies that claim they will drop investment if the report is adopted in full.

There are now many others who want to pull out of our province if the measures are taken.

Will that not affect the industry at all?

Or do you believe this is where the oil is and no matter what there will be investment and profit?

(Ihave to play both sides of this argument … it’s my job)

]]> By: Dave http://blog.rogersradiointernet.com/cormacmacsweeney/2007/09/28/stuck-between-a-rock-and-a-hard-place/#comment-12 Dave Mon, 01 Oct 2007 19:06:13 +0000 http://blog.rogersradiointernet.com/cormacmacsweeney/2007/09/28/stuck-between-a-rock-and-a-hard-place/#comment-12 Of course Encana is going to try everything it can to try and stop the royalty increase even though they are getting an almost free ride with the 1% royalty for the heavy oil. The CEO wouldn't be doing his job if he didn't try! I have worked in the oil & gas industry most of my life. And yes incentives were needed when there was plenty of oil to go around for everybody, because they would drill wherever the best profits could be made. But things have changed now big time. The $80 a barrel will probably be the base price now, and could easily go to $120 a barrel. Although the oil companies costs have gone up, they have not doubled as the price of oil has. And this is reflected in their profits, the highest profits they have ever had. If Encana wants to cut back, then that's great because that will allow someone else to step in, and they will because they can still make money, and they don't have to deal with kidnappers, al-Qaeda and regimes like Hugo Chavez. Maybe Stemach should take a page out of Chavez's book and nationalize the oilsands! Then Encana wouldn't have to worry about cutting back their investment! Of course Encana is going to try everything it can to try and stop the royalty increase even though they are getting an almost free ride with the 1% royalty for the heavy oil. The CEO wouldn’t be doing his job if he didn’t try!

I have worked in the oil & gas industry most of my life. And yes incentives were needed when there was plenty of oil to go around for everybody, because they would drill wherever the best profits could be made.

But things have changed now big time. The $80 a barrel will probably be the base price now, and could easily go to $120 a barrel. Although the oil companies costs have gone up, they have not doubled as the price of oil has. And this is reflected in their profits, the highest profits they have ever had.

If Encana wants to cut back, then that’s great because that will allow someone else to step in, and they will because they can still make money, and they don’t have to deal with kidnappers, al-Qaeda and regimes like Hugo Chavez.

Maybe Stemach should take a page out of Chavez’s book and nationalize the oilsands! Then Encana wouldn’t have to worry about cutting back their investment!

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