Hocus Pocus

Stupefying inanity.  My daily net surfing session this morning stumbled upon a marvelous little news report regarding a vote by the City of Vancouver to ban all natural gas uses by 2050.  You can see the article at: http://boereport.com/2016/09/23/vancouver-votes-to-ban-natural-gas-by-2050/  I wondered how many people actually took the time to think this one through.  Banning natural […]

The ersatz science

It’s economy, stupid.  The field of economics has, over the decades, its moniker as the dismal science, from its inability to reliably predict and quantify the ups and downs of markets and economies.  Nobel prize notwithstanding, its variegated economic models struggle to jive with quotidian commiserations.  Imagine how physics would be regarded if it promoted […]

Of projects and men

From the monde to the mundane.  Wealth, in the broadest sense, is in large part generated by the successful operation of profitable assets.  Assets are so ubiquitous as to be invisible.  If you are sitting in a coffee shop right now, just take a look around you, starting with the space itself: everything that you […]

The long shadow of a black swan

Buyers of hope, beware.  Last week saw two news items in the National Post associated with the continuing blight of the energy industry.  On 16 September, the Post reported the approval of three oilsands projects by the Alberta government (“Alberta approves three oilsands projects worth potential $4 billion in investments”, by Ian Bickis, The Canadian Press).  […]

The Mirror Has Two Faces

Elvis has entered the building.  September in Canada signifies two things: 1) kids go back to school and 2) oil and gas producers begin their capex budget process for 2017.  There are subtle signs that the need to search for reserve replacement, bewailed in my previous blog the great dislocation, is appearing in the conscientiousness of planners.  […]

Great Expectations

  An ironic consequence of the great dislocation in the oil and gas industry has been the recovery of control over a hitherto spiraling cost structure, by those who hold the purse strings.  The worldwide onslaught of lay offs, both the necessary and the opportunistic, have transformed owners and producers into de facto monopsony hegemons […]