Oil Patch - Texas vs Alberta

[DiabeticKripple]

Originally Posted by Mike_W

I heard that Cenovus is planning to drill near 50 new gas wells with the takeover of Conoco Philips happening today.

I hope that's true!

[wildalberta]

lots of fat trimming going on. i can tell you that cnrl has lift costs down to 6-12$/bbl in some of their major areas. i contract to them and there are many projects forecasted in the near future. will it ever be like it was, likely not. there are lots of jobs out there but they are nowhere near as attractive with rates being cut so badly across the board.

[sjd]

Originally Posted by densa44

If this is the wrong place for this question, Cat just delete it.
I have read just about everything published on this site about the carbon tax, but the price I'm paying for gasoline at the pumps is the lowest in years.

Is there a short answer how this is possible?

The short answer is 99% of everything posted on this site about the carbon tax was misinformed garbage harvested from made up Facebook memes that had on basis in reality. Great example of how you can scare and manipulate people with partisan rhetoric with no basis in reality.

Oil prices are low, carbon tax on gasoline is relatively tiny. Oil companies largely exempted from paying carbon tax on emissions.

The fearmongering on other stuff about food prices increasing etc with carbon tax also never came to pass (food prices increased faster in SK where there is no carbon tax).

No oil companies fled AB because of carbon tax. Coal companies are switching to gas faster than the government proposed as they see its cheaper.

Alberta's economy now growing faster than anywhere else in Canada as we recover from the price of oil.

60% of households get rebate checks and huge interest in Energy Efficiency rebates and freebies funded by the c-tax.

I'm not sure how Jason Kenney is going to be popular announcing he is going to cancel a tax that will automatically be replaced by the federal one that applies to all provinces that don't have one (SK is the only hold out).

[Flyfishchrism46]

I think the issue in Alberta for a depressed oil and gas economy is about technology and politics. There are limitations in pipelines in Western Canada bringing the product to market (Asia and the US). The unconventional oil and gas technology gives places in the states enhanced opportunities for shale oil and gas which come on to production quickly and are closer to the key markets. Lastly, there is the cost burden in Alberta with regulations and taxes. This is what is driving investment elsewhere.

[wildalberta]

Originally Posted by Flyfishchrism46

I think the issue in Alberta for a depressed oil and gas economy is about technology and politics. There are limitations in pipelines in Western Canada bringing the product to market (Asia and the US). The unconventional oil and gas technology gives places in the states enhanced opportunities for shale oil and gas which come on to production quickly and are closer to the key markets. Lastly, there is the cost burden in Alberta with regulations and taxes. This is what is driving investment elsewhere.

this is exacly our problem. not so much to do with the price of the product. our governing bodies are hurting us badly.