Another update on oil patch stock market fear mongering from the Hunter Royalty Review Report is in order. The Royalty Review Report came out on Tuesday and the next day business press was rife with quotes and claims of a draconian disaster and a “tumbling” market for the energy sector
Yes there was a dip in some stock prices reported for companies like CNRL and Suncor. Well by Friday, in the face of a $.51 cent drop in oil prices the G&M reports that CNRL and Suncor were ranked #3 and #4 in the Market Lifter Index. The TSX was up 101.64 points on Friday and these two companies were jointly responsible for about 16 of those points.
As for CNRL –it shed 5.9% of stock value on Wednesday and on Friday the stock was up $1.64. Meaning it had recovered all but 1.5% of that pre-Royalty Review Report value decline in only two trading days and it is trading at $76.84 - only $3.14 off its 52 week high.
Some melt down.
I suspect that the markets have recovered because no one expects the government to implement all the recommendations of the Panel report.
ReplyDeleteTime will tell but my guess is the public will demand that the RRR recommendations be implemented in total - especially once they are understood by the public
ReplyDeleteThe good thing about immediate public release of the report and the GOA not jumping to conclusions means we all get time to read, understand and digest the report.
The politics will ultimately decide things and since there are more voters than there are oil execs - just do the math.
Oberg is hedging but his approach will not likely carry the day..nor should it. This is the Premier's play and it needs to be done his way.
I hope that Albertans will be asking some tough questions after they read the report. While I commend the Panel on their work, there are some information gaps in the report that need to be addressed. While politics will play a large part in what gets adopted, I hope our leaders make the decisions based on sound public policy considerations and not what they think is most popular, It takes courage to make the right decision, not the popular decision.
ReplyDeleteKen:
ReplyDeleteRead Sheila Pratt's column in the Edmonton Journal today. What do you think of the comments by Evan Chrapko?
I don't know Evan but based on his comments in Sheila Pratt's column I should put him on my Christmas Card list as least.
ReplyDeleteI suggest you read Gunter today and 2 days ago...he is short sighted and has a very narrow focus that is more aligned with the old values associated with the 50' and 60's. He not seem to know the difference between a royalty and a tax or a tenant from a property owner.
I also suggest you read Thomson in yesterdays Journal and Bell in the Calgary Sun yesterday and Waugh in the Edmonton Sun today.
The Calgary Herald is strangely quiet on all of this stuff. I wonder why?
For the first time in my life I find myself in total agreement with Neil Waugh's column today. I clipped it and read my horoscope to see if there was some stange alignment between my Venus and Neil's Mars. Nothing was forwarned in the stars. This is a very strange feeling indeed. I think I need a drink!
Anon at 5:02 am - I agree that Albertans need to be asking some tough questions and we better not have to use FOIP to get some straight answers.
ReplyDeleteWhat info gaps do you see in the report? There was some Panel frustration based on the terms of reference and scope not allowing them to get into growth and infrastrucute issues as well as environment very much.
Are you talking about that or something else?
Lorne Gunter's comment in the Edm Journal reveals the man's petty bitterness. His guy lost the PC leadership race, and unlike many others who set aside their disappointment and are working with the current leader in a spirit of honest co-operation, he sits in his corner and mopes... occasionally to emerge with unsubstantiated, vitriolic hate-pieces on the current Premier.
ReplyDeleteHe overstepped himself with the last column, however, and reveals his own hypocrisy. He actually thinks the review should have been held in secret. For a guy that bemoans big government and boosts groups like the Canadian Tax Federation, am I the only one who thinks his position that a closed, secretive oil & gas royalty review, which would occur outside the purview of the public and be subject to manipulation and intimidation by the parties with the most at risk, is a good thing?
Certainly this column earned him a few lunches at the Petroleum Club.
Not only have Albertans been denied fair royalty rates but courtesy of Stockwell Day's flat provincial take,the decreased amounts of revenue for 2006 was estimated at 1.9 billion dollars and for this year it stands at 2.4 billion.
ReplyDeleteAdd to that the claim that there is no money for schools and hospitals from Lyle Oberg and others, it becomes clear that this government is NOT fit continue to govern this province!