Calgary-based Crescent Point Energy is cutting their workforce by 17%.
Now, Suncor Energy has announced that any expansion of crude production has been put on hold.
Related.
I remember when the NDP supposedly fought for working people. The steel toed set. Truckers, pipefitters, welders, crane operators, rock & tunnel and miners. Oh & the other unions that rely on a strong economy like teachers & nurses. Blue collars take heed: you’ve been abandoned. https://t.co/zTPdEW8DAh
— Kris Sims (@kris_sims) September 4, 2018
h/t RALD
I have read a bit about the powerful anti-pipeline lobby (read Vivian Krause on this), and their media-cartel allies. And awhile ago I decided that no pipeline will ever get built. The anti-pipeline lobby (and this includes Justin Trudeau’s PMO) is far too strong.
I have a modest small retail RRSP portfolio, and a year ago I sold my last Canadian pipeline stocks, and bought up more Canadian multi-apartment REIT stock. Nearly all of my holdings are in this area, and industrial REITs (the latter specialize in e-commerce warehousing). I have smelled the coffee. Under Trudeau Canada is turning away from heavy energy production, to welcoming massive inflows of immigrants. This new economy is one of high immigration, soaring housing and rental prices, and families which consume a lot but produce little. Get used to it. — David Murrell, Economics, UNB at Fredericton
David – I have done the same thing. I got out of oil into real estate while the crash was happening a decade ago. A few years ago I saw the writing on the wall for commercial real estate and got into residential instead. It has worked out well. I have also started to invest more in the American market. American dollar dividend payments will be welcome when we have a 40 cent dollar.
Technically there is no advantage in being paid US over CAD dividends if you bought US stocks at a discounted CAD. This is because your CAD bought US stock at a 35% discount so you ended up with less US shares. The only thing that matters is the dividend rate in %.
Plus there is still a 15% holdback I believe on US dividends. If you are waiting for the dollar to go to 40 cents then you are playing on currency risk. If the dollar goes up then you lose.
The CAD is around $0.76 USD. It is more likely to go to $0.80 than $0.40 despite SparkleSocks.
David,
I am actually overweighting Canadian oil stocks right now. While I was hoping for $58 WTI as my buy signal I am already edging in. Initially PXT and SDX which are outside of Canada but now ATH and SGY. High BETA oil stocks to WTI. High Beta oil stocks should yield a 100% return over the next 2 years.
Why? At some point Canada has to realize where the $’s are to run the country. No matter what happens with NAFTA the energy industry can bring huge revenue from foreign sources. Diversifying energy sales abroad is finally gaining traction. World oil consumption is now hitting 100 million boe/day. The industry has been starved of capital for at least 5 years. The taps cannot be simply turned up. It will take a few years for significant production increases to occur. I do expect WTI and Brent pricing to be over $80 by early 2019.
Why would you buy Canadian oil stocks based on the WTI price? You should look at Western Canada Select – why these companies are actually being paid. It’s not pretty. That is why companies like CJ (Cardinal Energy) dropped 10% last week even though they pay an 8% dividend.
It’s going to be a tough ride in the Canadian oil patch.
Steve,
WTI is a pretty generic description for what oil companies get paid. Yes, Western Canada Select is one price.
In your example CJ has really reduced the heavy oil side of their production. Less than 40% now. As a ball park their div is safe down to almost $40 WTI.
I like the southern Sask companies as their oil is light and can actually get a premium to WTI. Also remember that Canadian producers get paid in US$ but operate in CDN$. Bought VET today because of their Spartan acquisition which is light oil.
News is so negative on Canadian producers that their discount to USA producers is almost half. If world prices go over $80 it should raise all ships. 🙂
advises Shiny:
https://www.theglobeandmail.com/business/article-trudeau-warns-albertans-not-to-expect-short-term-fixes-to-get-trans/
there is no cure for that which ails Canada. the country is going to have to suffer a good deal more before reality will kick the morons in the teeth and out of public office.
The only thing that can possibly save Canada now is an ARMED republican revolution. Sadly even the so-called conservatives are really genetic socialist Red Tories. Therefore Canada is doomed and will self-immolate. China and the USA will fight over what is left.
As a blue collar worker I can certainly say that the NDP have never appealed to me even when I was a dumb teenager. They always seemed phony. They pretend they are advocates for you because they care but what they really want is power. In that they are no different than any other political party.
Politicians without term limits are far too powerful and inherently evil when the general population is far too stupid and inherently lazy.
I always saw the NDP as never really wanting power. When Bob Rae was accidentally elected the NDP had their “holy shit” moment, as in “holy shit, we’re the government!”. Rae switched so quickly from social to conservative that he had to join the Liberal party just to get back into politics.
The NDP has been the party of the Toronto/Vancouver elites for a long time. The silver spoon socialists, enviro-fascists, public service union thugs – sorry, bosses, LEAP manifesto maniacs, anti-semites, and alphabet soup snowflakes who make up the NDP’s core constituency are the very antithesis of the working class. Look at who dreamed up that dumb LEAP manifesto, for example. Not one of them every worked with his or her hands in all of their lives. If you’re a working Canadian, supporting the NDP is just, dumb, dumb, dumb. The gilded lefty elites don’t care about your lives.
Great post.
Welcome to BC…..there was a time, well over a generation ago, that the ENDP in BC did represent blue collar workers, but that has faded to obscurity. Oh sure, they still say that they care, but its only lip service.
On the totem of social justice warfare, the blue collar worker is at the very bottom, with your victimization groups identified above, taking a much higher priority. Still, the unions print out their candidate lists for each election, and the members religiously check those boxes off, no research required, “my union is always right”.
The ENDP today is the enemy of working people, they want to kill their jobs, all in the name of the perpetually aggrieved!
One of the authors of the LEAP manifesto, Naomi Klein, called Venezuela ” a great example of successful socialism”.
I am looking forward to BC becoming Venezuela north.
Let’s stop putting oil into the existing pipeline and help them get there even faster. Of course Horgan will want to buy American gasoline and diesel, for all the consumers in Vancouver, but that would mean more tankers (very bad). And of course the US refineries would be prepared to give them a really good price! ha ha ha
Remember, oil tankers are VERY VERY bad for whales.
Freighters and large ships of every other type and kind have no effect on the precious orcas (not an endangered species, by the way). The way the envirotards talk, the orcas are on the verge of extinction. Not that their friends in the press would ever challenge them, ever!
Kill the Communists.
Every one of them.
And their enablers.
The NDP siding with First Nations (on anything) is not a good election strategy. Be very, very quiet….
This country is dying of chickenshititis.
It is being strangled in broad daylight by sociopaths, who are duly elected by urban fools, while decent people with real jobs in small town and rural Canada type away anonymously as a substitute for real action..
As proof, I offer up Alberta – which certain posters here would (laughably) have us believe is our northern version “rough/tough don’t mess with Texas ” . Yet ALL of working Alberta – oil-workers, ranchers, farmers, loggers, small business folks – has been pissed on, puked on, stomped on, farted on, and laughed at, not only by turdo la doo, but by its own (may I remind you) duly elected majority crew of ruinous socialists. But the Trans-Canada highway has yet to be blocked in protest and downtown Edmonton and the Legislature have been free of angry disruption.
THIS is what empowers THEM, and leaves us with the likes of Scheer, Hudak, Kenney, and Tory.
I believe you to be correct, Jamie.
The way Notley and Trudeau view it is, they(the deplorables) can’t be that pissed at us, they’re not even protesting !!!
If they really hated our policies, they be showing up to riot !
re Notley protesting pipeline construction some years back, well Trudeau less so.
Conservatives always say, we can’t protest, we’re working,,,,,soon, that won’t be a problem !
Carl
It is just not our style to protest… on the street we’re liable to get run over or trampled… or frozen. The government take the electorate for granted. Sycophants, the lot. There are too few that know what is going on…both sides.
“It is just not our style to protest… on the street we’re liable to get run over or trampled… or frozen. ”
It has nothing to do with style, Nancy. It’s a matter of substance.
And the latter part of your sentence proves that….and disproves the “not our style” claim.
Jamie MacMaster 11:31 am
Rather, replace the word you find offensive with the word “way”…it is not our ‘way’ to protest …
And that is why our country is dying of “chickenshititis”, as you say. We take what we get good and hard without protesting enough. The farmers who went to jail and had their equipment seized, not long ago, are to be credited.
Poor choice of word, mea culpa, with all due respect.
“We take what we get good and hard without protesting enough. ”
Exactly, Nancy.
“””….the likes of Scheer, Hudak, Kenney, and Tory.”””
The Axis Of Incompetency ?
Jag and the NDP should just admit they are no different than the current liberal party and merge with them.
Of course that might force the blu-libs to admit what the lpc has become.
Trudeau had a few important jobs. Among them was ensuring that China had ample access to Canadian oil as a backup for when the Saudis run out in 15 years and could continue to dump cheap steel in the US.
So far all he’s succeeded in doing is demonstrating how easily Chief Big Screen TV can outwit him, never mind Donald Trump.
There’s a limit to how long Beijing will tolerate failure.
old white guy is right when he says, “there is no cure for that which ails Canada. the country is going to have to suffer a good deal more before reality will kick the morons in the teeth and out of public office”.
Just like their Bolshevik/communist brothers, the NDP has never been for the worker, only for power.
When my former employer went bankrupt, the NDP was right there to help us get our government benefits as unemployed people. I asked what did they do to try to keep the business operating, high electricity pricing and unfair foreign subsidies to our competitors that our governments wouldn’t match. They replied that they do absolutely nothing to help businesses, they are for the worker, not businesses, they are anti business. If they had helped the business stay in business, we wouldn’t be unemployed. Trying to explain to them that a worker needs the business, just as the business needs the workers, they either couldn’t, or refused to understand.
Yes,I know a fellow who has been a staunch NDP’er his entire life, member of a big private sector Union. He bragged on one occasion about all the work they had under the NDP, dismantling pulp mills. He was making a fortune in overtime.
I couldn’t explain to him that the pulp mills he was dismantling ,which he freely admitted were being shipped to China, Japan, and Brazil, meant the loss of huge numbers of Union jobs, and it was all happening under an NDP government.
He just didn’t see it, all he knew was under an NDP government HE was making BIG money.
It’s been a long time since the NDP even much pretended to be a worker’s party. I spent a long time in the Public Service Alliance of Canada and it’s been a long time since Canada’s largest public union actually represented working people and those paying dues. I was removed from a local presidency and suspended from the union for saying so and standing up to former Agriculture Union president Bob (King Bob) Kingston. Of course, they still took my money. All social justice warrioring, all the time.
The NDP long ago abandoned the working Joe (and Joanne).
A party subsidized by unions representing the concerns of unionized workers makes sense.
A party subsidized by unions but working against their interests doesn’t.
In (vain) glorious and (big) labour friendly NDP BC, only unions need apply for government construction.
If not, they can apply, but must unionize if their bid wins. It’s a complete coincidence this benefits their political allies.
You see payoffs to political cronies are fine as long as they’re not “corporations.” Actually even if they are, the friendly ones.
Yes they did. Yes it did and Yes that’s what happens these days. Now they are mostly determined to celebrate and promote “the fact” that Joe can BE Joanne and vice versa. Progress!
Jagmeat is bongo with a colorful sock on his head. Their policies are indistinguishable.
The ndp are the party of government workers.
Here is Alberta Red Rachael is married to Lou Arab – a union boss. His cell phone was being answered at the premiers office in the early days of her administration – check it out.
Jamie Mac – I agree with you re: your points on AB. Years before the PC’s imploded I pointed out on this blog that AB was as socialist as any place in this country. I was taken out to the woodshed and told I didn’t know what I was talking about especially by those who had moved to AB from some other province and thought they had found the new Jerusalem. Alberta isn’t Texas but then again Texas ain’t Texas either.
Canada is a very progressive country. The hoards and the universities have critical mass.
“AB was as socialist as any place in this country. ”
Bingo, abtrapper.
No different than the rest of the country. A good chunk of those who aren’t on the government tit, wouldn’t give a s**t if they were.
And you’re right: Texas ain’t Texas either.
Um, yeah. Kris Sims remembers wrong.
Socialists, from the beginning, have only ever been about pretending to care to sucker halfwits into voting for them, so that they can have free mansions and execute people who annoy them.
Idiots like that are why the plague of socialism is on course to wipe out the human race.
https://nationalpost.com/opinion/john-ivison-ndp-mps-in-mutinous-mood-over-jagmeet-singhs-uninspired-leadership
Jag and the Dippers are in deep trouble,looks like under his leadership the NDP may go back to a dozen or so seats, be wiped out in Quebec.
On the bright side, the NDP votes will go to the CPC, just kidding, we know damned well where the majority of their votes will go, with a few going to the Greens.
Bernier could scoop them up though. He’s an idiot, but he can also be useful.
All of these pipeline workers can be retrained to make cold calls from a boiler room operation selling solar panels. They will receive a new “green economy” job. Or, better yet … they will be retrained as a First Nations docent … making presentations to school children about how the white man STOLE the lands of native peoples, and that “Canadians” have NO RIGHT to build pipelines on Native “property” … even though the native peoples don’t “believe” in “property”
But hey, look on the sunny side. Our pogey checks should be based on the NDP minimum wage $15.00. We are all gonna be rolling in dough.
We probably will not be able to afford MickeyDs. All those restaurant workers are going to need to get on the same Pogey Train.
PM Trudeau has been very successful at creating new energy jobs.
The only problem is, they are all in Texas.
“PM Trudeau has been very successful at creating new energy jobs.
The only problem is, they are all in Texas.”
Heh. Beauty.
Filed under: Things Scheer Should be Saying
Sham: You are right that Max could hurt the libranos in quebekkie.
Max’s politics have a following there (not a large one but invigorated) and if he can organize and find the right candidates in ridings that are sympathetic he could count coup on bongo.
Outside of quebek he’s toast but could be helpful to the CPC under the right circumstance.
If labour abandons the NDP they are screwed, labour brings volunteers, donation and it’s own organization to the fight. The Greenies bring granola.