Alberta's economy is too dependant on oil so they'll take the biggest hit over the dropping price of oil, but at the same time thier enviroment has taken the biggest hit as well thanks to tailing ponds and stuff like that, so I'm wondering if Alberta is worse or better off now?
While thier maybe be blips upwards in the price of oil, I don't think its ever going to trend up again, certainly not to the level Alberta's oil sector needs it too.
Doesn't make me happy to say it, but wait a year.
If you are really a skeptic, wait five. You think demand is going anywhere but up?
And as crazy as this might get, remember that it was an orchestrated glut.
orchestrated glut?
The engine of the world economy, China and to a lesser extent Germany....are both in financial trouble.....
The world's economy, or better its financial and asset growth is based on accelerating debt, hundreds and hyndreds of percentages annually...but the time comes when the real economy can no longer pay for the accumulated debt...especially due to governments, corporations and central banks....
The world economy is in recession, and with failing finances, the recession will only spiral out of control....
The Central Banks have committed an unpardonable sin in their stimulus of the money and credit system to prevent bankruptcies on a major scale, guaranteeing future greater and greater consequences!...something I hope our younger generations will take up with a vengeance...
No the capitalist system, or rather we ought to call it and private capital/ government market system is now in collapse, which will take generations to recover...hopefully now people with a conscience and some enrgy to practice what they believe.....will put their energy into buil;ding a system based on human and ecological values...
Yeah, orchestrated glut, or a game of chicken, if you will:
http://www.bloomberg.com/news/2014-12-09/iraq-follows-saudi-arabia-with-...
http://business.financialpost.com/2014/11/26/fears-of-opec-price-war-evo...
From what I have heard and read the slow world economy you mention is a wild card that will probably make it worse and more out of control, but it is certainly not what started the price freefall. OPEC could have chosen to cut back production; they did not.
As for the apocalyptic crash of capitalism I think you may have to wait a decade or so before breaking out the champagne, or whatever it is you think is appropriate to drink to it. Expect that when the only way to buy oil is with bullets.
Here's some good and relevant news from the real world though, that might help to slow the speed of resource extraction a bit:
http://calgaryherald.com/business/energy/alberta-will-not-appeal-court-r...
some relevant info from the real world.....550 billion in junk bonds feeding the energy sector of North America since 2010...at near zero interest rates thanks to the Central Banks!
And now that the interest rates on bonds are climbing, not to mention derivative swaps?
Recently reported in another thread that the rate on derivative swaps in venezuela is over 2000 points? Derivatives being the ponzi scheme to satisfy investor confidence, through a tenuous insurance system, which does not work for general collapse on so major a scale we are now looking at!
So the Feds of Canada subsidize the tar sands over a billion, plus multiple billions in junk bonds?
if the energy sector in the tar sands cannot find their loans at an affordable rate, nor find their derivative swaps to guarantee their loans?
@ iyraste. I'm somewhat familiar with capital markets and I can't find any references to your facts. Can you help with a few sources?
We already know that new tar sands production is threatened if the price of oil stays below $65 or so. That is pretty much what Brachina said in the OP.
"Interest rates on bonds rising"? This is what you are talking about, right?
http://www.bloomberg.com/news/2014-12-11/fed-bubble-bursts-in-550-billio...
It';s called a correction, and it has been pretty clear for some thing that Canada's overreliance on oil revenue makes us seriously vulnerable to one.
But the end of capitalism? Good luck there. A serious hit to a lot of people's pension funds, more likely.
If we are talking benefits, one I can think of here is that it might wake the electorate up to the fact that the boom here in SK had nothing to do with Sask Party policies, as much as they are trying to contrast themselves against the bad old days of the NDP.
I think that the current manufactured drop in the "price" is probably due to geopolitics: Saudi Arabia, Russia, wars, the take over of Iraq's oil by foreign entities. Before GWB's invasion, I heard that gas at the pump was 6 cents per liter in Iraq. I don't think that the prices usually reflect the overall total cost.
I've speculated that the price of gas and oil would drop as we've seen the cost of solar power generation drop to levels that make it more affordable than so-called "conventional" power generation.
I think that it would be better to treat oil as the practically non-renewable resource that it is. Rather than shipping raw tarsands commodities at wholesale prices to China to be burned and put in the atmosphere, instead use small amounts of it to create valuable lasting recyclable, reusable products.
they want expansion in AB to downsize they've been doing it for a while. those men are needed to build the pipelines through BC or they won't have a big enough work force to do it and make the new LNG plant.
I think that the current manufactured drop in the "price" is probably due to geopolitics: Saudi Arabia, Russia, wars, the take over of Iraq's oil by foreign entities. Before GWB's invasion, I heard that gas at the pump was 6 cents per liter in Iraq. I don't think that the prices usually reflect the overall total cost.
I also suspect there's a motive to destabilize Venezuela's economy as well.
How exactly would we be saved by having our economy collapse? This corrupt petrostate needs that oil money.
Anyways we are back into a hiring freeze. Luckily at my job we currently only have 2 vacancies. Supposedly we can still hire people if we present a convincing case to the Deputy Minister.
AUPE - doing what we can, with what we have.
"...it's called a correction"
What it is is the bursting of the energy bubble...550 billion dollar junk bonds in just 4 years, that permitted the accelerated developments, which like so many Chinese investments creating cities and massive industrial complexes, all in mothballs...
And yes it's the end of the capitalist system...and what will come next depends on us to get it together......
Not only does this mean that there will be no more junk bond investments in expensive crude projects, but the loans received by the energy companies to fatten their share prices will disappear...meaning their share prices will collapse them into bankruptcy...
i'd say good riddance....but because Canadians by and large have hooked their survival to the industrial capitalist, corporate fascist system (by definition), it will mean huge sufferings for ordinary people, blindsighted by our fascist press...
And yes we must look at who are the countervailing parties in all this junk bond investment? The banks? The pension funds? Central Bank?
