Clearly Canada is next. Will it include Hibernia and He Ron or be limited to the oil sands?
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Oil sands svck. Low profit environmental nightmare under a cr-ppy government
I know folks in Billings that were overjoyed when the refinery was sold. Nothing wrong with being divested. It’s actually a blessing.
Think a lot of people have old context on Canada IOL upstream assets. They have been extremely profitable over the last several years and even outside of significant cash flow returns and over delivering on increased production levels it’s doing amazing from a stock perspective. This isn’t the 2013-2020 era of IOL anymore.
Note: speaking strictly on upstream business components in AB
Exxonmobil is returning to Trinidad and Tobago. Could invest $21.6 billion if exploration proves successful. Another Guyana on the horizon? Canada has limited potential for new pipeline infrastructure with enhanced environmental regulations. Canadians love to sh00t themselves in the foot and then whine about it.
The former President of EMPC, and then CEO of Imperial is now at Suncor- my money is on him taking that job to buy Kearl from Exxon
I wish.
Probably the best thing that could happen to IOL. They are sending a lot of capital back to XOM that could be re-invested in country.
@b3 the other difference is the stuff in the East is mostly ExxonMobil Canada vs the West (and the downstream) that is Imperial Oil.
A sale of IOL is more complicated than say France because it is upstream, downstream and midstream and you have fewer buyers that could take all that on.
Eastern Canada has very different margins than oil sands. We’re not leaving there. And Qatar isn’t going anywhere. We’re just not getting return on having higher performers try to influence the state to give us more equity than the other IOCs. We’re not showing value to the state. So be it. The margins there are awesome so we’ll take what we can get.
@OP hope you’re right. So many Canadians down here
Get in the queue behind UK and Oz
Kearl is a sh-t show of kingdom silos, entitlement and whiners.
If cut that appendix off in a heartbeat if I was Darren.
@a4 same reason we are exiting Qatar and not chasing growth there. There are much more profitable options to invest in
@a4 Spend some time thinking about what high grade the portfolio means and you will find the answer to your question.
If I was a Canadian I would be dusting off my resume and start looking. When the sale happens there will be a lot more competition for those looking for a new job. Best to beat the rush.
@a5 correct.
You think new GM management cares how much oil we sell or how big our reserves are? Unprofitable and low margin volumes with high break even price are no good. They will sell oil sands and use the money to find something that can make money at low oil prices which oil sands cannot. Oil sands was good when oil was $100 a barrel but is a dog now. Have you seen your break even price! It also doesn’t work with the net zero requirements from society and shareholders as it is too energy intensive to extract.
Because capital spent there can be applied to low cost production like Permian or Guyana.
Why would Canada be divested? High cost, but making money and keeps the production numbers up.
Company has figured out it is an easy way to cut headcount. Look at all the Australian expats going back to Oz. I suspect same will happen with Canadian expats. A bright future awaits them in Canada with their new company! Or more likely redundancies.