David Raymond Amos @DavidRayAmos
Replying to @DavidRayAmos @Kathryn98967631 and 47 others
"Politicians cannot control the prices of a global commodity."
Methinks many folks worldwide would question that statement N'esy Pas?
https://davidraymondamos3.blogspot.com/2019/05/another-oil-and-gas-company-fails-in.html
https://www.cbc.ca/news/business/trident-exploration-aer-owa-oilpatch-1.5120486
Another oil and gas company fails in Alberta — and more than a dozen others are teetering
3089 Comments
Commenting is now closed for this story.
David R. Amos
After over a hundred years of playing the wicked game the well established oil companies have have grown accustomed to the cycles of boom and bust Methinks there will always be many little companies that will fall by the wayside when prices stay low too long. Thats just the nature business in a free world N'esy Pas?
Joe Speed
Reply to @David R. Amos:
Big companies buy little companies to keep control
Big companies buy little companies to keep control
Alex
Matheson
Reply to @David R. Amos:
You have used/misused the term N'esy Pas far to often. N'esy Pas?
You have used/misused the term N'esy Pas far to often. N'esy Pas?
David R. Amos
Reply to @Alex
Matheson: Methtinks you have no idea whether or not I have copyrighted
that expression and that you could be misusing it N'esy Pas?
David R. Amos
Reply to @Joe Speed: Methinks there are no rules in the wicked game might always makes right N'esy Pas?
Mo Bennett
guess what all you taxpayers out there, you get tp pay for the clean up! isn't that fun!!
David R. Amos
Reply to @mo bennett: Yo Mo Say It Ain't So
Gerard Rosen
And why folks thought Jasement Kenney could do anything to fix this is asinine.
Global markets don't care what Jasement says or does.
David R. Amos
Reply to @Gerard Rosen: True
Zbiginew Zalewski
Big oil sucks all the oil out, sucks all the money out of Canada, leaves the mess for the suckers.
David R. Amos
Reply to @Zbiginew Zalewski: That sucks
Jimmy Harding
This model is going to play out a lot over the next few years in Alberta:
1. Invest money in risky oil assets in a market soon to decline.
2. Pay yourself fat bonuses.
3. Go bankrupt, dump all employees.
4. Walk away and let someone else clean up the mess.
Denny O'Brien
Reply to @Jimmy Harding: so basiclly how its already happened
Ted Nesbitt
Reply to @Denny O'Brien: ...yep, and happened a few times before....many "oil men" have been in the business for 40+ years and have ridden out this roller coaster more than 4 times now....
David R. Amos
Reply to @Ted Nesbitt: YUP
Phil Barnes
That’s okay. Jason Kenny controls the price of oil and natural gas. He also controls the moon and the tides. Soon he will bring it all back to prosperity. Praise Jebus
John Dunn
Reply to @Phil Barnes: Jebus isn't listening btw.
David R. Amos
Reply to @John Dunn: Jebus don't care
Michael L'greb
The conservative Right Mantra..... when we are not in power everything is the fault of the Left, when we are in power, everything is the fault of the left......
Dan Cooper
Reply to @Jim Clark:
"it’s not hard to do better than trudeau."
Yet you guys failed and all you could come up with was Scheer.
LOLOL
"it’s not hard to do better than trudeau."
Yet you guys failed and all you could come up with was Scheer.
LOLOL
David R. Amos
Reply to @Dan Cooper: Well put
Mike Poska
This headline from another story is spot on
"Oilfields are economy of the past, expanding them would be like building a Blockbuster video"
Joe Renaud
Reply to @Stanley Baird: I don't have the stats to support this but I believe that although worldwide consumption is growing, it is not growing at the same rate as the world economy. There will still be a market for oil - basically forever - but it is no longer the only game in town. Wait until things stabilize in the world and Venezuela, Iraq and Iran all start pumping at the same time. If you think the price of oil is low now just hang on to your hat.
David R. Amos
Reply to @Joe Renaud: YUP
Jimmy Harding
And before you blame this on Notley or Kenney or Trudeau, the reason given was LOW COMMODITY PRICES. Politicians cannot control the prices of a global commodity. Alberta oil is the most expensive to produce in the world. In a world where oil demand declines, Alberta is going to be the first oil producing region hit. Is Alberta prepared?
Mike Sutton
Reply to @Jimmy Harding: You just said a lot of misinformation.
Norm Dixon
Reply to @Jimmy Harding: Not sure which world you are referring to but in mine, World oil demand is still on the rise!!!
David R. Amos
Reply to @Norm Dixon: Methinks he capitalized the three words he deemed most important. LOW COMMODITY PRICES World oil demand may be on the rise but more importantly Obama's politicking within the capitalist system has caused the price of oil to fall N'esy Pas?
David R. Amos
Reply to @Mike Sutton: Methinks many folks worldwide would question only one statement N'esy Pas?
"Politicians cannot control the prices of a global commodity."
"Politicians cannot control the prices of a global commodity."
Another oil and gas company fails in Alberta — and more than a dozen others are teetering
'It's going to get a lot worse,' landowner advocate says about the number of companies on the brink
Alberta's persistently low oil and gas
prices have claimed another victim as Calgary-based Trident Exploration
ceased operations this week.
Several other companies could suffer the same fate.
Trident's board of directors resigned, 94 people are without work and a large number of oil and gas assets now have no owner. The company, predominantly focused on natural gas, had approximately 4400 wells, 240 facilities and 500 pipelines, according to the Alberta Energy Regulator.
While there is no official list of how many firms have declared bankruptcy since the oil price crash in late 2014, many companies declared bankruptcy or entered creditor protection. In the last year alone, at least a dozen companies have become insolvent, according to Insolvency Insider, an industry newsletter.
Plenty of companies are in rough shape, said Daryl Bennett who works with small energy companies through his positions with the Action Surface Rights Association and Alberta Surface Rights Federation.
"It's going to get a lot worse," he said during a phone interview from his home in Taber, in southern Alberta. "There are close to 31 companies right now that are close to going insolvent."
A Trident Exploration natural gas facility near Didsbury, Alta. (Kyle Bakx/CBC)
Since
the beginning of January, heavy oil in the province has sold for more
than $40 US per barrel and even climbed above $50 US this month. Still,
this week, the Petroleum Services Association of Canada lowered its 2019 drilling forecast for the second time.
It now anticipates 5,300 oil and gas wells will be drilled in Canada, down from a revised estimate of 5,600 wells in January and a 20 per cent drop from its original 6,600 forecast in November 2018.
Meanwhile, natural gas prices have remained low for several years and Bennett said those companies are the ones hurting the most.
"[For] a lot of them, it's a cashflow problem. They don't have the money," he said.
Trident blamed low commodity prices and a lack of export pipeline capacity, among other reasons for shutting down.
The
Alberta Energy Regulator said it will now examine whether any of the
company's operations are a risk to the public and the environment. It
will also ensure "Trident's infrastructure is transferred to responsible
operators, safely decommissioned, or, as a last resort, transferred to
the Orphan Well Association."
As more companies go bankrupt, the Orphan Well Association has seen its inventory of wells, pipelines and other facilities rise sharply in recent years. The association is funded by industry, and fees charged to the sector have increased to help deal with the large backlog of work.
A recent study from consulting firm XI Technologies of Calgary found the number of companies producing oil and gas in Western Canada has dropped by almost 300 or 17.5 per cent since 2014.
Last month, one landowner group suggested cleaning up all of the old and unproductive oil and gas wells in Alberta will cost between $40 billion and $70 billion.
Several other companies could suffer the same fate.
Trident's board of directors resigned, 94 people are without work and a large number of oil and gas assets now have no owner. The company, predominantly focused on natural gas, had approximately 4400 wells, 240 facilities and 500 pipelines, according to the Alberta Energy Regulator.
While there is no official list of how many firms have declared bankruptcy since the oil price crash in late 2014, many companies declared bankruptcy or entered creditor protection. In the last year alone, at least a dozen companies have become insolvent, according to Insolvency Insider, an industry newsletter.
Plenty of companies are in rough shape, said Daryl Bennett who works with small energy companies through his positions with the Action Surface Rights Association and Alberta Surface Rights Federation.
"It's going to get a lot worse," he said during a phone interview from his home in Taber, in southern Alberta. "There are close to 31 companies right now that are close to going insolvent."
It now anticipates 5,300 oil and gas wells will be drilled in Canada, down from a revised estimate of 5,600 wells in January and a 20 per cent drop from its original 6,600 forecast in November 2018.
'They don't have the money'
Meanwhile, natural gas prices have remained low for several years and Bennett said those companies are the ones hurting the most.
"[For] a lot of them, it's a cashflow problem. They don't have the money," he said.
Trident blamed low commodity prices and a lack of export pipeline capacity, among other reasons for shutting down.
As more companies go bankrupt, the Orphan Well Association has seen its inventory of wells, pipelines and other facilities rise sharply in recent years. The association is funded by industry, and fees charged to the sector have increased to help deal with the large backlog of work.
A recent study from consulting firm XI Technologies of Calgary found the number of companies producing oil and gas in Western Canada has dropped by almost 300 or 17.5 per cent since 2014.
Last month, one landowner group suggested cleaning up all of the old and unproductive oil and gas wells in Alberta will cost between $40 billion and $70 billion.
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