Economy 52,835 Posted July 5, 2017 Share Posted July 5, 2017 https://www.fool.ca/2016/07/08/suncor-energy-inc-has-additional-acquisitions-planned/ https://www.google.ca/amp/mobile.reuters.com/article/amp/idUSSeekingAlpha391273620160219 https://www.google.ca/amp/business.financialpost.com/commodities/energy/suncor-energy-to-raises-2017-production-despite-1-billion-cut-in-spending/wcm/d879f0f9-3a64-4003-bcf2-1042bea7b301/amp Canada the worlds 5th largest oil producer with 3rd largest reserves could have most of its industry monopolized if things dont change and oil Prices dont rise Canadas by far largest oil Company "Suncor Energy" (up to 4 times larger than the second largest at this time) has been making multiple multi-billion dollar acquisitions one after the other Oil Sands are one of the most expensive forms of oil to produce and after 3 years of low oil prices, many Canadian Oil Companies have very high debt, running steep annual losses and unable to reinvest barely staying afloat Suncor in its size had a lot of savings, low debt, and invested in new expensive technologies that bring operating costs down to $24/barrel on average (depending on the field) and is running fat profits, new technologies other companies cannot invest in at this time. If Suncor continues to run profits while most other Canadian energy companies fail, and they continue to make fat acquisitions one after the other, Most of Canadas oil sector could be monopolized by a single private company! Link to post Share on other sites More sharing options...
bumblebee 2,528 Posted July 5, 2017 Share Posted July 5, 2017 Can you educate us and explain whether monopoly in this particular industry is going to hurt Canada in terms of economy ? Link to post Share on other sites More sharing options...
Economy 52,835 Posted July 5, 2017 Author Share Posted July 5, 2017 3 minutes ago, bumblebee said: Can you educate us and explain whether monopoly in this particular industry is going to hurt Canada in terms of economy ? Hard to say... it may mean less jobs because they are more efficient the larger they grow and need less labor... But lower costs and more profits on the other hand means more tax revenue for Government while companies running losses means almost no tax benefits for citizens Oil is also sold at more or less world Oil Prices (with slight variances by grade) so a monopoly wont mean product sold at higher prices in this particular case So it wont be as bad as monopolies in most other industries which is why maybe few economists have been sounding bells about it Link to post Share on other sites More sharing options...
Economy 52,835 Posted July 5, 2017 Author Share Posted July 5, 2017 @Luc what u think? Does it really matter in this case since oil has benchmark prices and domination wont mean it sold at higher prices? Link to post Share on other sites More sharing options...
Luc 4,776 Posted July 6, 2017 Share Posted July 6, 2017 I don't think a monopoly would matter much, because oil is a global market.. Link to post Share on other sites More sharing options...
Economy 52,835 Posted July 6, 2017 Author Share Posted July 6, 2017 2 hours ago, Luc said: I don't think a monopoly would matter much, because oil is a global market.. Thats my take on it too plus if they are more efficient and can bring costs down with their new technologies, that would mean more profit and tax revenue 👀 Link to post Share on other sites More sharing options...
Luc 4,776 Posted July 7, 2017 Share Posted July 7, 2017 11 hours ago, Economy said: Thats my take on it too plus if they are more efficient and can bring costs down with their new technologies, that would mean more profit and tax revenue 👀 If they pay taxes 👀 Link to post Share on other sites More sharing options...
Economy 52,835 Posted July 7, 2017 Author Share Posted July 7, 2017 10 hours ago, Luc said: If they pay taxes 👀 They do. Low oil prices since 2014 was a major factor for reduced income in Canada plus cancelled balanced budgets 👀 Link to post Share on other sites More sharing options...
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