Peak demand, an anniversary and a merger

One Reply to “Peak demand, an anniversary and a merger”

1. Strathcona keeps gobbling up oil companies and SAGD assets. The Waterous family has deep pockets, and presumably also a better financial model.

   These days that seems to matter most, as every level of government has done everything possible to cripple oil and gas companies. Even high commodity prices are no longer enough to determine whether or not a company will be profitable. With loans being dependent on ESG scorecards provided by rating agencies, and the ever-increasing carbon taxes, as well as expensive and time-consuming emissions reporting and accounting and reduction programs, and other government-created problems, there are more and higher piles of BS to plow through rather being able to focus on your core business. Any industry forced to shoulder the weight these parasites continuously add will eventually buckle.

   I wonder what the exit strategy is for Strathcona? Or if going public is part of that strategy? There are a ton of liabilities associated with these properties, including massive royalties for the various SAGD properties that have surely exhausted their lower initial royalty rates. Perhaps they’ll eventually spin off the assets to yet another Chinese company that will plan to fail from Day 1, leaving taxpayers holding the bag.

   Again.