What would you do?

[Hamloc]

I had a thought this morning on what Alberta oil companies are facing, I want to put it in farming terms. Last year my canola was 10 dollars a bushel now it has dropped to 3.60 yikes! One of the first things my government does as the price was dropping was increase my income tax by 20% but on the plus side won't affect me this year I am not making any money. The next thing they announce, you have to update all your machinery, it all must be tier 4 final compliant. This will be better for the environment you must do your part! But canola only 3.60 a bushel and the price of new equipment has went up 30% due to appreciation of the American dollar. What's next? Well all my landlords have got together and decided I wasn't paying my fair share I have made too much money in the past they are raising my rent.

This is what Alberta oil producers are facing with the NDP government IMO. I realize oil will come back up but does this look like a recipe for increased jobs and a more prosperous new year. If you were the farmer in the scenario above what would you do? I would move to Saskatchewan or the U.S. if the opportunity presented itself, just my opinion.

[farmaholic]

I can't pack my land up and move it to a more business friendly environment. I think they've done what they needed to do, slow down spending, lay off dispensible labour and "dead weight", liquidate redundant equipment and machinery, just do the minimum if everything you do loses you money.

I wonder what the result of this crash will be after things turn around. I think it was one of the most wasteful industries. Is anyone worth some of the salaries paid during it's peak(sour g****s!)? Remember $1.24 gasoline (Regina area)? What will the industry look like when it turns around?

[riders2010]

Beyond ridiculous to compare farming to oil.
First of all At 10 bushel canola in the shit zone this year people aren t at break even. Oil is at break even guaranteed at what was it 40? I don't think anyone is at break even in canola at 3.00 a bushel. Now rhat it's 35 why is anyone producing oil? Because they still are screwing the rest of us all the way can't wait in 3 or 4 years for work price to go up what will a litre be then 5.00?


There is such a. Price gauge going on with the oil industry within and to all us outside that industry. We re paying all the infrastructure for it's growth. And that axtually is going to be quite a problem with projects started and going forward.
Maybe don't pay truckers 1,000 bucks a day etc
The easiest money on earth especially when you have elected puppets under your wing

[grassfarmer]

One key difference Hamloc - the profitability levels the oil industry enjoys during the good times, something that farmers could only dream about. As a result they are used to a culture of waste and excess spending which they can tap into to cover some of their misfortune. I'm not shedding any tears for big oil. Not much point in them moving as the primary problem they face is low oil prices not the NDP.

[sumdumguy]

And don't forget oil companies are using other people's money as in the stock market.

[jake550]

I realize it's for the most part good for the overall western Canadian economy with high oil prices.
I don't think using $10 canola and it dropping to $3 as a fair example.
I'd say more like $35 canola has now dropped to $11 or $13 per bushel.
Yeah once you get used to spending that much money its hard to go back to common sense.
It was completely beyond sense the waste the oil industry had developed over the last number of years.
I do feel for the young families that got caught up in that way of thinking though. But it's high time there was a reality check for a lot of people.
I'd compare to a housing bubble or something like that bursting. Price of oil never should have gotten as high as it did in the first place.

[farmaholic]

Geez I hate to bring this up. Would have the Govs been better off with a decent royalty for the public purse or hope the tax base created by alot of oil activity would compensate for the royalty holidays/giveaways and low royalties after the fact. If there was that much waste in the Industry, couldn't have the industry afforded to pay more in royalties? For the good of all the taxpayers not just those working in the Industry earning intoxicating wages? I'm not saying governments handle public funds very well but....

[bucket]

Maybe they should go buy another political party.

They have had the conservatives as lap dogs for quite a while now.

[perfecho]

Do you really spend that much time thinking how to run down the ND's....
Wow...
Royalties needed a review, we will know the rules if/when oil goes up...we will know the rules for taxation when money is being made. Perfect timing.
Suncor's chasing COS to buy shows how profitable these companies have been...on the backs of Alberta. Yes, they have created jobs, made some people a lot of money, but the imbalances are certainly a concern...

[Hamloc]

In the news today Premier Notley made a big announcement today on her plan for controlling GHG emissions on Alberta farms. The presidents of Big Acre Farms,Sea to Sea Land Corp.,Wheatlands Frams, and Peace Land and Cattle Company were there in support. The premier announced that Alberta grain farmers would be receiving incentives to invest in new technologies to reduce GHG emission through more efficient use of inputs and more environmentally friendly equipment. The Premier also announced that the production of beef on Alberta farms would be phased out by 2030 resulting in a large reduction of methane production an important greenhouse gas. There will be government compensation and retraining for affected farmers.

It has been discovered by this reporter that the 4 farm corporations that supported Premier Notley's new plan for lowering farm production of GHGs were in secret negotiations with environmental groups about the construction of a new rail line to the coast. In return for supporting the end of beef production in Alberta the environmentalists agreed not to stand in the way of a new rail line.

This is all BS of course but it could happen.

[perfecho]

Well Hammy, if I had the time, I could list the things the Cons did do, and they were scary but it isn't going to change things...or minds.....so think I will just go feed those methane producers....

[TOM4CWB]

Hamloc

You are RIGHT... even if it isn't April 1... !!!

I wonder if May 5th.... will be...

[checking]

Don't encourage him, Tom.

Con ideas of taxing jobs instead of requiring a royalty share was a terrible strategy.

[TOM4CWB]

Checking,

And ND/Liberano plans to kill jobs... hire friends to do the new paper work... to watch hard working AB families be destroyed... while High Tech union jobs are promised to save [is this supposed to be a JOKE] the world from... CLIMATE CHANGE... that: one volcano Big earthquake...; Coronal Mass Ejection... or meteorite... can wipe all Carbon based life off the face of this planet!!!

And we are worried about increasing the c02 levels...

what... so tell me... plant life is plotting the takeover and destruction of the humans?!!!

You are kidding... right?

[hobbyfrmr]

I would say Jake has the best comparison. Going from $35.00 canola to 11.00. Buying/leasing the right equipment, paying good salaries, striving for the best production because you can afford it from $35.00/ bushel canola.
On the flip side Farmers being what they are, would have astronomically run up the price of buying and renting. Inputs and machinery would also be astronomical because the industry cannot allow farmers to have that much profit.