How Alberta’s biggest oil companies are still raking in billions

[Integrity_Farmer]

According to Parkland’s analysis, the Big Five, taken together, brought in almost the same amount in aggregate profits in 2017 — $46.6 billion.

Imperial oil Gross revenues: According to the company’s 2018 financial and operating results, released at the end of February, the company’s gross revenue increased last year, up 20 per cent to nearly $35 billion from $29 billion the year before.

Suncor According to the company’s 2018 annual report, released at the end of February, its revenue increased last year, up to nearly $40 billion from just shy of $33 billion the year before.

https://thenarwhal.ca/how-albertas-biggest-oil-companies-are-still-raking-in-billions/

Seems the oil companies don't want to share with Albertan's.

As Economist John Kenneth Galbraith once stated “If you feed enough oats to the horse, some will pass through to feed the sparrows (referring to "trickle down" economics).”

Seems Kenney's only solution is to 'feed the horse'. Well good luck to Alberta YOU WILL NEED IT.

[Taiga]

I didn’t know anyone actually read that agenda driven left wing rag, but I guess there are a few readers with the same agenda bent.

Reality:
Suncor 2018 operating earnings were $580 million ($0.36 per common share) and the company had a net loss of $280 million ($0.18 per common share) in the fourth quarter of 2018, compared to operating earnings of $1.310 billion ($0.79 per common share) and net earnings of $1.382 billion ($0.84 per common share) in 2017.

I didn’t waste my time looking up the other companies, will be the same story.

Who looks at gross earnings?? Meaningless.

[Herc]

Looking at my gross revenue right now. Man I’m a rock star......

[jazz]

Integrity farmer will be filling his pants when Ab is producing 8mm bbls a day and become the highest per capital income in the solar system.

[Integrity_Farmer]

Alberta oilsands producers 'incredibly profitable' during recent economic downturn

https://www.cbc.ca/news/canada/edmonton/oilsands-husky-cnrl-cenovus-imperial-parkland-institute-report-edmonton-1.4896996

Don’t worry about Canada’s big oil companies, they’re doing just fine: report

https://globalnews.ca/news/4643295/canada-big-oil-company-profits-report/

[ajl]

The weakest player in that bunch, Cenovus, is the only one that does not have a refinery division. Any one capable of though knows that cheap oil means refinery profits. Cnrl is the major player in the new north west refinery at Redwater. Imperial and Suncor have refineries in Sherwood Park but also in Ontario as well so they are obviously spreading out those profits. (not just AB) Husky has a refinery in SK. Anyone that gets a coop equity check knows that 90% of that comes from the Regina refinery. (the other 10% from seed canola sales) So like all drivel coming from leftist loons, this story was written to mislead.

[Integrity_Farmer]

Cleaning up Alberta’s oilpatch could cost $260 billion, internal documents warn

The staggering financial liabilities for the energy industry’s mining waste and graveyard of spent facilities were spelled out by a high-ranking official of the Alberta Energy Regulator (AER) in a presentation to a private audience in Calgary in February

The liabilities include costs that companies must assume to shut down aging and inactive oil and gas exploration wells, facilities and pipelines once they are no longer needed. Another significant part of the liability is the clean-up of toxic tailings ponds from oilsands extraction mines near Fort McMurrray. The ponds have sprawled to cover an area the size of Kelowna.

https://globalnews.ca/news/4617664/cleaning-up-albertas-oilpatch-could-cost-260-billion-regulatory-documents-warn/

Norway’s Oil Fund Hits $1 Trillion; Meanwhile, In Alberta..
"Reaching one trillion dollars is a milestone, and the growth in the fund's market value has been stunning."

That stands in stark contrast to Alberta's oil fund, which is valued at C$17.2 billion, according to a statement released last month.

Norway's fund amounts to US$192,000 (C$235,000) for every person in the country. Alberta's fund works out to C$4,150 per person in the province.

https://www.huffingtonpost.ca/entry/norway-s-oil-fund-hits-1-trillion-meanwhile-in-alberta_ca_5cd504bee4b07bc72973fdd2?

[chuckChuck]

https://www.cbc.ca/news/canada/edmonton/oilsands-husky-cnrl-cenovus-imperial-parkland-institute-report-edmonton-1.4896996 https://www.cbc.ca/news/canada/edmonton/oilsands-husky-cnrl-cenovus-imperial-parkland-institute-report-edmonton-1.4896996

"The five companies that dominate the oilsands industry have remained "incredibly profitable" despite low oil prices and delays in building new pipelines, according to a report from the Parkland Institute.

"Despite the 2014 oil price crash and the ongoing hand-wringing over pipelines and the price differential, the reality is that the big five oilsands producers have remained incredibly profitable corporations," said Ian Hussey, lead author of a report released Thursday by Parkland Institute and the Canadian Centre for Policy Alternatives.

Last year alone, the companies banked or paid out to shareholders a total of $13.5 billion, he said.

"These companies have been able to continue to transfer sizeable amounts of money to their shareholders or to their bank accounts, while at the same time in 2015 cutting almost 20,000 jobs from the Alberta economy," Hussey said."

Boom, Bust, and Consolidation
Corporate Restructuring in the Alberta Oil Sands

https://www.parklandinstitute.ca/boom_bust_and_consolidation https://www.parklandinstitute.ca/boom_bust_and_consolidation

[chuckChuck]

Alberta likes to portray itself as a victim but its hard to feel sorry for the oil companies and shareholders who are still doing well. Its good politics to stir up the Alberta, Saskatchewan versus Trudeau resentment.

They are doing well in part because they have trimmed their workforce. The oil industry is trying to cut costs and new technology is allowing them to lower labour costs which means job losses.

Families that are in trouble need support to transition to other jobs in more sustainable and stable industries.

[sk_wheatking]

How can you two continue to carry on about the oil industry the way you do, but yet gladly use the hated product to survive in your every day life. It just makes no sense. I've said it before, give it up then, all of it, but you wont. You just need something in your life to hate on.

[chuckChuck]

I don't hate fossil fuels I use them every day. There are few choices to fossil fuels except to reduce consumption and wait for affordable options which will replace oil in the next decades.

I have paid the oil industry hundreds of thousands of dollars in my farming career. They often gouge consumers. They continue to make substantial profits on the backs of consumers and the environment.

They are opposed to protecting the environment if it affects profits. They need to be more accountable and responsible for the hidden costs of oil that we all pay for.

Norway and Alaska have understood better that you can't rip and ship a one time finite resource for ever, damage the environment for generations and then let the oil industry take excess profits and not even clean up their mess.

Peter Lougheed understood this, but many of the new generation of Albertans have lost this long term perspective.

[chuckChuck]

https://www.parklandinstitute.ca/boom_bust_and_consolidation https://www.parklandinstitute.ca/boom_bust_and_consolidation

As of 2017, the Big Five control 79.3% of Canada’s productive capacity of bitumen (2.86 million barrels per day (bb/d) out of a total of 3.6 million bb/d of bitumen production). The Big Five also collectively control 90% of existing bitumen upgrading capacity, a total of 1.2 million bb/d. The Big Five are positioned to dominate Canada’s future oil sands development. In a sense they are the oil sands.

The Big Five directly employed 35,788 workers in 2017. Their aggregate revenue was $115.23 billion, their aggregate net income was $13.74 billion, and the assets they own and control are worth a total of $278.82 billion. For perspective, Alberta’s annual gross domestic product is about $300 billion. The aggregate gross profits of the Big Five in 2017 were $46.6 billion, which was close to the government of Alberta’s 2017 income of $47.3 billion.

In 2016, the average profit margin for all industries in Canada was 7.8%. Three of the Big Five—Suncor, Cenovus, and CNRL—had net profit rates above 13.5% in 2017, and Cenovus’s profit margin was an impressive 19.4%. Simply put, these three firms are extraordinarily profitable compared to the vast majority of businesses in Canada. By contrast, the 2017 net profit rates for Imperial (1.7%) and Husky (4%) were well below the 2016 economy-wide profit margin average of 7.8%.

In 2017, the Big Five returned $4.16 billion to their shareholders in the form of dividends, or 30.3% of their net profits, which is considerable. The Big Five spent another $2.04 billion of their income buying back shares from the market, meaning that the total transfer of value to shareholders in 2017 was $6.2 billion. In comparison, the Big Five paid $1.6 billion in income taxes and $3.12 billion in royalties to various levels of government (chiefly Alberta), meaning the total transfer of value to various governments in 2017 was $4.72 billion. The residual once all these payments and transfers are made are retained as savings—uncommitted capital that can be eventually invested. The Big Five’s 2017 residual savings were $7.3 billion.

[Hamloc]

I don't hate fossil fuels I use them every day. There are few choices to fossil fuels except to reduce consumption and wait for affordable options which will replace oil in the next decades.

I have paid the oil industry hundreds of thousands of dollars in my farming career. They often gouge consumers. They continue to make substantial profits on the backs of consumers and the environment.

They are opposed to protecting the environment if it affects profits. They need to be more accountable and responsible for the hidden costs of oil that we all pay for.

Norway and Alaska have understood better that you can't rip and ship a one time finite resource for ever, damage the environment for generations and then let the oil industry take excess profits and not even clean up their mess.

Peter Lougheed understood this, but many of the new generation of Albertans have lost this long term perspective.

So you continue to attack oil companies, what about government. Just ran across an interesting article written on Dec. 11 on the CBC website. Up until now NewBrunswick consumers were subject to the federal carbon tax of $20 a tonne on gasoline, 4.42 cents a litre. Well NewBrunswick just negotiated a new deal with Trudeau. They will implement their own carbon tax, the same $20 a tonne but they are going to lower their existing excise tax on gasoline so that the consumer ends up paying a net increase of 1 cent a litre, this should certainly create a large incentive for change of habits. So Trudeau continues to make deals that really eliminate the carbon tax for certain areas of Canada. It really makes a mockery of the whole program!!!!

[Guest]

and how in hell can carbon tax be 4% on gasoline in western canada and 40% on natural gas ???????????????????????

[Oliver88]

and how in hell can carbon tax be 4% on gasoline in western canada and 40% on natural gas ???????????????????????

Saskatchewan carbon tax will be increased by 50% tomorrow.....thanks to Trudeau, McKenna and traitor Goodale. 🖕🏻