oil industry strains to go forward while government holds it back
canada goose coats on sale OTTAWA The Lord may not yet have answered the prayers of a thousand Alberta bumper stickers but uk canada goose a rising oil price suggests he is listening at least. canada goose coats on sale
canada goose The plea for a divinely inspired oil boom, in exchange for the assurance that this time Canada Goose Parka it wouldn be away, is canadian goose jacket bearing fruit. There has been a nine month run up in the oil price, from around cheap canada goose uk US$50 a barrel of West Texas Intermediate to around US$68 a surge that, if sustained, will create stronger revenues and $20 billion of cash looking for a home this year. canada goose
In times past, that might spark an investment boom, as the money was recycled into new projects. But such is the disillusionment with canada goose Canada competitive position, many companies have been finding other uses for the spare cash.
Canada Goose Outlet Rich Kruger is chief executive officer of Imperial Oil, Canada oldest and second largest integrated oil company. He said Imperial resolved buy canada goose jacket the conundrum of what to do with its relative bonanza by giving $400 million back to shareholders, in the form of share buy backs and enhanced dividends, lifting the share price from a five year low. Canada Goose Outlet
canada goose clearance But in a lengthy interview about canada goose coats on sale the parlous state of the oil and gas business in Canada, the Minnesotan explained why the appetite to plow profits back into the oil patch is so weak. canada goose clearance
Canada’s oilpatch is about to make the biggest decisions for our economy since the 2014 crashWhat Canada Goose online will canada goose uk shop surging oil prices mean for Canada? not what they used toWhy Canada economy is at risk Canada Goose Coats On Sale of falling behindTo be clear, there is no sense that happy days are here again. While WTI has risen substantially, the price heavy oil producers buy canada goose jacket cheap receive for West Canadian Select has remained stable at around US$35 40. Kruger said the industry in Canada has not received the same benefits as other parts of the world from the rise in light oil prices because of a range of Canada Goose Outlet bad public policy choices.
buy canada goose jacket cheap In no particular order of iniquity, they include limited pipeline capacity to get product to market; a regulatory regime riddled with risk and uncertainty, and a fiscal package canada goose store that cumulatively is not competitive with other countries buy canada goose jacket cheap
Kruger is a 37 year ExxonMobil veteran and is fluent in the polite, indirect and diplomatic language of the well travelled business executive. But were his frustrations to be translated into everyday discourse, his message to federal and provincial politicians might read: time to move forward and you uk canada goose outlet are holding us back. is more circumspect. is not a place where Canada has been historically. We all shy away from risk, beyond the technical and operational risk we accept. And Canada Goose Jackets today there is more risk and uncertainty, he said.
canada goose coats Imperial is investing in fact, it will spend $1.5 to $1.7 billion this year. But that is care for and feed the existing asset base, Kruger said, rather than spark major growth. canada goose coats
Canada Goose online Yet, the company has a major development proposal in the regulatory process the 150,000 barrel a day Aspen in situ project in Alberta that would require a $4 billion investment over two phases. Canada Goose online
Canada Goose sale This infamous bumper sticker of the 80’s recession has become timely again in Alberta. Canada Goose sale
The problem is that Aspen was first submitted for regulatory approval in December 2013 four and a half years ago.
canadian goose jacket The advanced steam assisted gravity drainage technology was in development for a decade before that, yielding 25 per cent reductions in greenhouse gas canada goose uk outlet emissions intensity and similar reductions in water Canada Goose Online use intensity, cheap Canada Goose according to Kruger. canadian goose jacket
canada goose black friday sale But the company is still waiting to get a green light from the provincial government and if it does, market conditions have changed so much from a time when oil was over US$100 a barrel that it cannot be https://www.canadagoosetomall.com taken for granted that it will proceed. canada goose black friday sale
think it a winner I would have expected a project like this would have been welcomed with open arms. Will we go forward? When we get the final approval, we look at the conditions attached to it and the market conditions and make a judgment at that time, Kruger said.
canada goose store Rather than those pressures easing, the federal government major environmental regulation bill, currently before the Commons, goes in the opposite direction to what Kruger would like to see. canada goose store
buy canada goose jacket our assessment that the current bill is canada goose uk black friday likely to increase costs and timelines, he said. have significant concerns about it. he is encouraged by Ottawa acquisition of the Trans Mountain pipeline. shows a clear recognition and resolve at the federal level, and from the industry standpoint, that a good thing, he said. buy canada goose jacket
cheap Canada Goose Yet at canada goose coats the end of the day, confidence will be restored only when pipe is placed in the ground and operations are commenced. when discounts evaporate. The Liberals have been stubbornly resistant to tax cuts they claim industry doesn Canada Goose sale need. cheap Canada Goose
Yet canada goose outlet Kruger said competitiveness is relative and the fiscal position is judged in the aggregate federal, provincial, municipal and carbon taxes. He pointed out the American accelerated expensing of investments enhanced the relative economic attractiveness of a competing jurisdiction.
canada goose clearance sale we are seeing is that capital is flowing, it just not flowing here, he said. canada goose clearance sale
canada goose deals None of this is a surprise. The World Economic Forum tells us we are the 14th most competitive canada goose factory sale economy; the OECD canada goose black friday sale says our tangled regulatory requirements and growing tax burden hinder private sector productivity; the World Bank Doing Business survey ranks Canada 34th out of 35 developed economies for the time it takes to get regulatory approval through the system; Royal Dutch Shell, Total and Conoco Phillips have all sold out of the oil sands, as pipelines failed to get built. canada goose deals
Canada Goose Jackets Direct investment dropped 26 per cent in 2017 and will likely fall canada goose clearance again this year. If things don change, more investment will go to operations south of the border. Canada Goose Jackets
Canada Goose Parka Ottawa might take comfort in the fact that Imperial only operates in Canada. But that does not make it captive the jump in its share price suggests it will simply give its surplus cash back to its shareholders, rather than piss it away on projects that don make sense financially. What the Lord gives, he can also take away canada goose clearance sale Canada Goose Parka.