December 02, 2015

Forget "world oil prices": Encana's Texas plan proves Alberta's real problem is Notley's NDP

Ezra LevantRebel Commander

When the subject is Alberta's failing economy, we're told that the 100,000 people who lost their jobs, and the cancellation or postponements of massive projects, is just due to world oil and gas prices, not NDP policies.

Here’s reality:

"Encana posts loss, accelerates activity in U.S. Permian basin."

Encana is one of Canada’s biggest oil and gas companies, headquartered in Calgary. The Permian basin is in Texas.

Here's more:

"Encana plans to spend an extra $150 million in the Permian shale field in the current quarter that was originally earmarked for 2016. The company expects total capital spending of $2.2 billion this year, the upper end of its earlier forecast.”

Encana is hiring people. And drilling for oil. They’re just doing it in Texas, not Alberta.

Here's their boss, Doug Suttles:

"Suttles also said Encana's next well in the Duvernay oil and gas formation in Alberta would be deferred until the Alberta government completes reviews into royalty rates and climate change policies.”

They’re going to wait until Rachel Notley and her NDP are done with all of their taxing and regulating. And then they’ll make a decision.

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commented 2015-12-04 09:21:46 -0500
The cost of drilling for shale gas is a fraction of the cost to produce oil from bitumen. Encana didn’t go to Texas because of the NDP; they went to Texas because the net revenue from $48/barrel oil is waaaay higher.

The Rebel is literally the worst news source in Canada.
commented 2015-12-03 23:21:10 -0500

I don’t see Sask. cutting back. They briefly froze public sector hiring in the first few months of 2015, but that was the only austerity we’ve seen. Capital spending, things like the bypass and the stadium, are full steam ahead.

Most recent available data: 2014Q2 to 2015Q2 (CanSim 051-0017)
Saskatchewan 3
In-migrants 6,229 4,676 3,369 4,780 6,711
Out-migrants 7,324 5,225 3,443 5,913 8,155
Alberta 3
In-migrants 31,613 23,192 15,269 23,944 31,293
Out-migrants 20,720 15,055 11,031 15,662 23,029

Sask. lost people in every quarter (4300 lost in total, -0.4% of population in 15 months). Alberta gained people in every quarter (39,800 total, +0.9% of population), More interestingly, the outflow hadn’t increased that dramatically, from 20k to 23k despite the fact that oil prices fell throughout the sample period. The worst job losses were noted in 15Q1, yet the province still gained people.
commented 2015-12-03 12:15:45 -0500
Andrew is off base. The regular media are compliant to their corruption via government sponsorship via tax payer funds. Their journalism is next to none other than to read the Liberal/communist talking points. Sask is not in deep glue. While world prices are low it is the lack of pipe lines to bring products to tide water that reduces their ability to reach the full market potential. Yes Saskatchewan did post a deficit however, this translates from spending along with the inability to reach market value for ones product. In short the Sask government will reduce their spending to live within their means. Unlike Notely she has driven a fork in her industry in an attempt to virtually shut down all operations raised taxes as in every NDP government does as they attempt to grow government for their survival in the next election. Will the province reduce C02 via taxation? Not a chance in hell. What will reduce the C02 is the policy to remove coal fire power plants. Which bring to question why is Canada building a large port in Vancouver to ship Obama’s filthy coal? Considering coal is by far the greatest producer of C02 would it not make more sense to provide an alternative to China and India that reduces their foot print as compared to filling the pockets of rich American’s who have been feverishly campaigning against Canada’s oil? Does coal not produce 300 times the emissions? It would make more sense to ween these countries off coal with a replacement that produces a far better output of emissions at least until there is adequate replacement for fossil fuels. Solar is by far ineffective with huge land footprints producing relatively far less than the population needs. Again wind is only good as long as your source is not blowing too hard or too minimal. Look at Ontario where their production of green energy has doubled the average house hold bill and is expected to double or triple all while only producing 4% of their needs. Yes it would be wrong to blame this all on the green energy as much of the costs are attributed to a corrupt Liberal government and their incoherent policeis of which the AG has found being incompetent bordering criminal. Plain and simple taxes feeds government corruption of which is big business in Ontario and Quebec contracts. C02 taxes will not remove one gram of C02 but it will grow the Liberal parties Mafia foot hold on the tax payer. By the way Andrew Alberta has lost thousands of migrants it is this narrative that your main stream media mafia fails to report as it doesn’t fit the Liberal narrative.
commented 2015-12-03 11:55:34 -0500
Nathan w .when prices dropped 6 months ago my area was still drilling convential wells and pipelines were being planned.thanks to nutley and pe2 saying pipelines are no longer allowed it has all stopped. Regardless of the price of your product if a corrupted evil government stops you from acccessing your market you have no choice but leave for texas
commented 2015-12-03 07:51:10 -0500
Shale is a completely different story. World oil prices are to blame for Alberta’s woes. Get your facts straight.
commented 2015-12-03 00:27:27 -0500
The only country in the world that is bashing its oil industry is Canada. Only in Canada, Eh? I wonder if Venezuela made it to the climate talks? Surely, Notly and Trudeau should have put in their order to get oil from them. Environmentalists dont mind the oil going up the St Lawrence River; its the oil going down that makes them dismayed.

Speaking of going down, I think its time Notly went down on a hand grenade; minus the pin. Instead of reassuring the oil industry and re establishing confidence to investors; lets push a controversial farm safety act through parliament without any consultation with farmers. We need workmans comp for the 5 year old collecting eggs from the henhouse. Does that require a hazzard assessment sheet filled out?

Just imagine; we got four more years of this. Remember; the more carbon tax you pay, the colder the planet gets.
commented 2015-12-03 00:10:08 -0500
In this particular case, I think Andrew Stephenson is largely correct. NDP policies are certainly not helping, but with current technologies shale oil is much cheaper to extract and process than bitumen from the oil sands.
commented 2015-12-02 20:01:06 -0500
“Why is Brad Wall’s province doing so well”

It isn’t.

You don’t here about it on the Rebel because it doesn’t suit their agenda, and most Rebel readers avoid the mainstream media that would tell you what’s going on if you bothered to look. Sask. is hurting right now – to illustrate that, look at their interprovincial migration numbers, it’s been losing more people than it’s gaining since 2013. Not even Alberta is losing people yet.
commented 2015-12-02 19:58:58 -0500
SHale oil is cheaper to develop than bitumen, far closer to the refineries on the gulf coast, and far lighter and more valuable.

No, this proves that bitumen can’t compete with tight oil -but we already knew that, the whole basis of the current price war is that shale oil undercut the Saudis who were previously competing with expensive unconventional resources.
commented 2015-12-02 19:15:32 -0500
Wasn’t it Notley I heard give lip service regarding Keystone that she wanted not to be exporting jobs to the US? My cat could do a better job of governing.
commented 2015-12-02 17:27:44 -0500
Kudos the farmers of AB as we witness them putting the NDP unionists in their place. The oil Barons folded like cheap tent but the farmers have a far more personal stake in their enterprises and they are not going down without a fight. We must support them!
commented 2015-12-02 17:24:10 -0500
Somewhat related to this happenstance a comment Nutley made in the legislature some time back comes to mind.
She expressed opposition to Keystone pipeline because it would only be “exporting tens of thousands of jobs to the US”.
Ah yes, the laws of unintended consequences resulting from the actions of the stupid.
commented 2015-12-02 16:54:56 -0500
Charleton G – Brad Wall actually has a working brain and intelligence. We here in AB now have the “no brainers” in charge, and they lack any form of human intelligence!
commented 2015-12-02 16:34:02 -0500
the weather is a lot better in texas if you can apply your skills there. one door closes and another opens. in other words run like hell because the socialists have given the slash and burn order to this country.
commented 2015-12-02 15:44:19 -0500
Yes even a corrupt PC is 10 times better than a socialist gov’t.
Harper was the best PM we have ever had. Trudeau is already making an ass of himself.
commented 2015-12-02 15:37:35 -0500
Why is Brad Wall’s province doing so well?
commented 2015-12-02 15:32:37 -0500
@ Deborah – I tend to agree with you about the UN, though I would at some time like exposed the link between the UN and direct involvement (bribery, payofffs, etc) in the governments at various levels. I have little doubt it is happening, but I would love to see that exposed to the public.

@ Charles who said, "I never, ever thought that I would be nostalgic for the Alison Redford government. "

Yea, I know what you mean! I have had the feeling that it would have been better to let them govern even as corrupt and “red” Tory as they were than to have the Notley economic wrecking crew in power.
commented 2015-12-02 15:22:46 -0500
I never, ever thought that I would be nostalgic for the Alison Redford government. As the second worst government Alberta had, it was still heads, shoulders, hips, knees higher than the current and worst Alberta government ever.
AHHHHHHHHH! for the good old days od Aunty Allie.
commented 2015-12-02 15:15:54 -0500
Peter Netterville – the unions are receiving funding from the UN now, so they won’t be telling the truth anytime soon. And you know the UN still has to drive those evil lies home, so they will continue to pump money, illegally, into unions, thereby killing democracy. The UN is like the mafia on steroids, once you sign on, the only signing off will be when they put you out of your misery.
commented 2015-12-02 14:37:05 -0500
The NDP are directly responsible for the loss of jobs in Alberta. End of story! Anyone who claims differently, is merely spinning for the NDP.
commented 2015-12-02 14:26:20 -0500
Voting Left will get you left. All that Alberta can do now, is just wait it out and hope that their grubby little Socialist, Notley, has not reduced Alberta to rubble, before the next election. The UN has spoke and Notley jumped.
commented 2015-12-02 14:21:02 -0500
I feel for Alberta but the same thing is happening in Ont. Elect rates the highest in NA and yet they blame Harper for losing jobs.Three 1 Billion dollar scandals and Green Energy scams. Possible Carbon Tax and Trudeau is going to make it worse for all of Canada. I fear more companies will leave and surely none will come in. Losing faith in Gov of all stripes. Unreal
commented 2015-12-02 14:15:27 -0500
Yet one of the bigger problems in the main stream media who is seems think their positions in the media are secure even though the economy is collapsing around them. Now, I am specifically referring to the media in Alberta. Do they feel their jobs are untouchable even though there is ever increasingly less population in Alberta and less money circulating around? Or are the Alberta main stream media just so drunk of the NDP socialism koolaid that they cannot see the real news?
commented 2015-12-02 14:11:41 -0500
What more proof do the NDP apologists need? Well, I doubt there is anything that would convince the NDP and their apologists that the sole problem is the oil prices since they proverbially stick their fingers in their ears when hearing reports like this and bellow “I’m not listening!”
commented 2015-12-02 13:51:22 -0500
That’s quite the Rebelation Ezra. No wonder all the Lefty’s want to shut you up LOL!
What she should’ve done, is given them a royalty holiday, to be made up for with higher royalties when prices resumed.
(Actually – come to think of it, a holiday from Lefty Royalty would hit the spot! LOL!!)
Someone out west should lay a private charge against her from Breach of Trust. It’s her responsibility to to do her due diligence before writing policy, and clearly, she hasn’t done that, and it’s ruined ppl’s lives. That’s a Breach of Trust.
Does anyone else notice it’s ONLY Canada that is shutting down it’s oil industry? That’s because others did their due diligence.
commented 2015-12-02 13:48:43 -0500
Protest from Alberta voters is still far too muted! One gains the impression that for the most part, Albertans are satisfied with the government they are getting. If that is the case, there is really nothing that can be done. Albertans got themselves into this mess, so I think they should be the ones to get themselves out of it. And, as of today, it is just not happening!
commented 2015-12-02 13:44:55 -0500
unfortunately once a corporation leaves an area they rarely return as they did in the Niagara area where I live. The auto supply parts industry started leaving in 2000 and by 2015 there was 30,000 fewer jobs and dozens of $25.00 an hour factories were closed and moved to Mexico the U.S. and India. the same thing could happen there