Canada Oil And Gas Industry: Shrinking Profits May Be A Sign Of Things To Come

Canada Oil And Gas Industry: Shrinking Profits May Be A Sign Of Things To Come

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Oil producer Cenovus on Wednesday reported a 40-per-cent decline in profit in the latest quarter, falling to $396 million from $655 million a year earlier.

Things were even worse for Calgary-based natural gas producer Encana, which recorded a whopping quarterly $1.48 billion loss. It had recorded a profit of $383 million in the same period a year earlier.

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Oil producers making losses?? WTF is going on here?

Is this a sign the cabal of oil giants is driving the smaller (but still massive to you and me!) 2nd level players to the wall to take them over and gain an even tighter monopoly on the bubblin' crude??

But beneath the surface is a rapidly-changing global energy industry. With the U.S. rapidly developing its shale oil and gas deposits, Asia increasingly looking to renewable energy, and the controversy over the environmental impact of the oil sands showing no signs abating, Canada’s energy exporters could find themselves in a seemingly unthinkable situation: Lots of oil, and few markets to sell it.

Or did Canuckistan do something to persist off TPTB and so they have to be bought back into line -

All this is happening just as Canada’s dependence on energy exports has been reaching new heights. As the Globe and Mail reported, oil and gas sales, as well investment in oil sands infrastructure, accounted for one-third of Canada’s economic growth in 2010 and 2011.

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"This part of the propaganda run up to the ,critical for the oil patch pigs, BC provincial elections . It is part and parcel of Enbridges plan to move sludge to China for billion in profits. . Post fake losses and threaten to tank the economy a Wall street move. "
- A commenter

reply to post by Aloysius the Gaul


There seems to be a big push in BC for more economic alternatives, hybrids electric cars, geothermal heating, as well as other renewable energy sources. These may be a reflection of a new canadian stance on energy.

Well, they drilled too many Fracking wells and the price of natural gas tumbled. That's what happens when people get greedy. They created a glutton of natural gas and destroyed the environment in areas from doing too much fracking at one time. The earth can't heal if we overtax it too much but can supply us with what we need if we are reasonable. Who in the hell did the big gas companies hire to watch their practices? High expenditures to develop these wells and then cause an overabundance so you can't make a reasonable profit. What happened to the knowledge of business that was supposed to be passed on from generation to generation, was it replaced by knowledge taught in schools? Schools don't teach common sense. they teach knowledge and fill the brain with facts and figures. This is the real world where risk assessment and business intuition are critical for a companies prosperity. My advise is to fire those big execs who caused this to happen. They need sensible people in charge.

People will say that this is good but they don't understand what's going to happen. a few big companies will buy out the bankrupt companies at pennies on the dollar and the banks and eventually the consumer will foot the bill. Banks should have been saying no to these investments, they are supposed to know about these things. Get rid of some of those execs without common sense too and hire some sensible people to fill the jobs. What a mess the business capitalists have made of our economy. Got the fox guarding the henhouse again. Greedy looking after greedy doesn't work.

It means that there will be mergers and Acquisitions like How recently Cnooc acquired Nexen for 15 billion$.

The reason that they are struggling is the manipulation of nat gas prices by the government. The price of nat gas per thousand cubic feet should be exactly ten percent of a barrel of oil. This is the worst criminal act of a bankrupted government in the history of the US but I promise that this will never, ever be discussed on CNN, Fox, or Bloomberg. Search out knowledge and you will discover the truth.

Maybe the government is going to supply free energy technology in the future and will give the middle finger to gas and oil industry, that would be great. Canada would be a new world leader.

Two words - Pipe dreams.

OH BTW, just saying. >u