Quote:
Originally Posted by The Elkster
I've be very careful what you wish for as far as a strong CAD dollar. Many oil companies and other exporters selling in US dollars and converting back to CAD are having their azzes saved because of the exchange rate. A higher CAD dollar will have far more affect on oilfield activity than anything Notley has done to date...not to pump Notely but just to put in context the importance of the exchange rate right now to a depressed AB. A return to par would be a huge hit to the bottom line of all oil companies at a time we can least afford it.
As a big net exporter AB has far more to lose than gain with a strong dollar. Sure you may save some money on parts and guns...but may lose your job or end up paying more taxes cause industry is in the tank and the gov't ain't getting those taxes. Its gotta come from somewhere...
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The loonie tracks oil,,, strong oil prices mean a strong loonie,,, the possibility of the market allowing the dollar to go higher without support from oil is not likely at all.
Best thing for the patch is stronger oil prices which in turn supports a stronger loonie.
If you don't believe this, then look at the health of the patch and price of oil over last ten years when the CAD was trading at or close to par.
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