• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Canadian dollar could fall to 75 cents on weak oil prices, experts say

Status
Not open for further replies.
S

Syriel

Member
jwhit28 said:
I know oil companies are suffering in the US but why aren't we getting hit as hard economically yet? Do we just keep all of our oil in country instead of exporting?
Click to expand...

America is a net importer of oil.

Production in the US is also not at the max.
 
L

LakeEarth

Member
whitehawk said:
Buying a ps4 at launch is the first time being an early adopter was a smart decision. Price went up by $60 later and could go higher now.
Click to expand...
I bought a PS4 about a week before the price increase happened because I saw it coming. And because I wanted it of course, but beating the price hike did put me over the edge.
 
S

SMattera

Member
It's pretty simple: Canada's economy is, was and probably always will be (at least for the forseeable future) dependent on the exportation of natural resources.

With natural resource prices near all-time highs the last few years, Canada had it great. Now that they're coming down, Canada is in trouble.
 
M

Maninthemirror

Banned
SheepyGuy said:
Massive overdevelopment of the tarsands for one. Now that oils falling all of that is going to fall apart, and so many jobs will be lost in Alberta.

The housing market's another big problem. It never crashed like the US did. Big Canadian cities have massively overpriced homes waiting to fall in value. This and the low interest rates have contributed to huge consumer debt levels -- totally unsustainable. The central bank is trying to prop it up but IMO hopefully it will fail so some of us can actually afford to buy homes, but that's going to cause a lot of problems for anyone that currently owns a home.

I'm also worried about another tech bubble popping. There's been a lot of investment in really flimsy startups, and it's really starting to remind me of 2000. If that happens my industry is going to be in a lot of trouble.
Click to expand...

the silver lining might be harper would be gone
 
B

B-Dex

Member
Mikey Jr. said:
Is a low dollar necessarily a bad thing for the economy?
Click to expand...

Technically a low loonie is fantastic for our economy. But shitty for our citizens cause prices go way up.

We already pay more for most things compared to our neighbours down south so this will just compound on that. Ie. 79.99 games etc.
 
D

Dazzler

Member
My company takes in all of its cash in USD and pays staff in CAD, owner is probably mopping up tears of laughter with 50 dollar bills with this news
 
V

Ventara

Member
Shit, this really sucks. To think that my entire bank account will only be worth 75% of what it was, or that I'm only earning 75% of what I did really puts things in perspective. Fuck! I should've invested! It's probably too late now. I can only hope it makes a comeback.
 
O

ohlawd

Member
yo 30% off 79.99 is like 56 bucks

pubs will probably just do 20 bucks off so 59

we're back where we started
 
J

jwhit28

Member
Ventara said:
Shit, this really sucks. To think that my entire bank account will only be worth 75% of what it was, or that I'm only earning 75% of what I did really puts things in perspective. Fuck! I should've invested! It's probably too late now. I can only hope it makes a comeback.
Click to expand...

It hasn't dropped 25% yet
 
D

Delta Assault

Member
SMattera said:
It's pretty simple: Canada's economy is, was and probably always will be (at least for the forseeable future) dependent on the exportation of natural resources.

With natural resource prices near all-time highs the last few years, Canada had it great. Now that they're coming down, Canada is in trouble.
Click to expand...

Not to mention people are starting to get tired of Assassin's Creed...
 
P

PumpkinSpice

Banned
Maninthemirror said:
the silver lining might be harper would be gone
Click to expand...

Maybe. He was going to campaign hard on "balanced budget" and that's definitely out the window now. But our massive suburbs seem to love him for some reason. Maybe they spend too much time in their fatmobiles listening to conservative biased talk radio.
 
T

TheOMan

Tagged as I see fit
DreamMachine said:
Very much so, he was constantly warned about propping up the oil industry. It's dangerous betting everything on an oil economy.
Click to expand...

People have short memories unfortunately, and the other parties are terrible at reminding people. Let's hope they capitalize on this.
 
P

perfectchaos007

Member
Back in the late 90's or early 2000's the CDN was about 60 cents on the dollar. Glad we're back to the good old days. Time to take a trip to Canada!
 
L

LakeEarth

Member
I had $60 American in a drawer from my Vegas trip, score!

Coming back from Vegas with money, yes I realize I did it wrong.
 
C

C00kie M0nster

Member
TheBahaBlast said:
Getting paid in CAD :'3
Click to expand...

I've been working here for four years now. Pricing up here is an absolute joke. Don't even think about eating out on a regular basis like we were all accustomed to. Taxes are also really high. I, for one, can't wait to find a job back home.

That being said, it's a beautiful country. If you're into sports it's a little upsetting that most people only care about hockey. For example, I'm the one who always sets up the Super Bowl parties with my Canadian friends among other events because of the lack of interest. The people are usually great. No one ever jaywalks either which I found odd. Speed limits are slower than USA too I've noticed.

Good luck! Where are you moving to in Canada?
 
E

EvilMario

Will QA for food.
C00kie M0nster said:
I've been working here for four years now. Pricing up here is an absolute joke. Don't even think about eating out on a regular basis like we were all accustomed to. Taxes are also really high. I, for one, can't wait to find a job back home.

That being said, it's a beautiful country. If you're into sports it's a little upsetting that most people only care about hockey. For example, I'm the one who always sets up the Super Bowl parties with my Canadian friends among other events because of the lack of interest. The people are usually great. No one ever jaywalks either which I found odd. Speed limits are slower than USA too I've noticed.

Good luck! Where are you moving to in Canada?
Click to expand...

So, you're telling me you're definitely not in Toronto.
 
B

BorkBork

The Legend of BorkBork: BorkBorkity Borking
Alberta focused, but relevant to Canada:

Alberta's Crazy Oil Bender Is Over - Now stuck with a crude hangover, it could've been like wise and sober Norway.

Norway, like Canada, was scaling up its petroleum industry in the early 1970s. It endured the same cyclical rides in resource pricing, and negotiated terms with many of the same foreign companies.

Yet Norway now has over $1 trillion socked away in its sovereign wealth fund, a dedicated repository of all petroleum revenues. Even if oil was worth nothing tomorrow, the country would still have no public debt, fully funded social programs that we can only dream of, and a very large nest egg to transition to a new economy.
Click to expand...

Alberta and Norway obviously have very different ideological bents, and 40 years ago you could have a spirited argument on which worldview would come out on top. But such esoteric speculation is no longer necessary given the hard facts in full view on their respective balance sheets.

The laissez-faire approach to resource management in Alberta has been a fiscal disaster compared to what might have been. In 2012, the province collected a mere $4.04 in royalties per barrel of oil equivalent. That same year, the Norwegian taxpayer raked in $46.29 on their petroleum production -- more than 10 times as much. How did they achieve such vastly better results? By embracing a profitable public involvement and oversight in their resource economy that would be abhorrent to the Fraser Institute worldview that has taken root in Alberta.

While it is true that Norway's Brent crude is worth much more than the low-grade bitumen currently wrung out of the oilsands, Alberta has also produced enormous amounts of conventional crude since oil was discovered in the Turner Valley southwest of Calgary 100 years ago.

Ignoring the oilsands altogether, Alberta has produced 18 per cent more conventional crude and natural gas than has Norway, and the province didn't have to venture hundreds of kilometres into the North Sea to get it.
Click to expand...
 
G

gutter_trash

Banned
BorkBork said:
Alberta focused, but relevant to Canada:

Alberta's Crazy Oil Bender Is Over - Now stuck with a crude hangover, it could've been like wise and sober Norway.
Click to expand...

this has a big impact on equalization payments.

People not familiar with it: basically Have provinces pay into the Federal in Equalization while Have-Not Provinces receive Equalization Payments from the Government.

Alberta (being the biggest earner) now having trouble means that there will be less Equalization money for the Have-Not provinces
 
Y

You Are Viewtiful

Member
gutter_trash said:
notice Harper shifting attention towards anti-terrorism, aerial missions in Iraq to change the subject away from domestic issues like the economy
Click to expand...

Looks like it's working >_<

Projection%2BFront.png
Click to expand...
 
T

thefro

Member
jwhit28 said:
I know oil companies are suffering in the US but why aren't we getting hit as hard economically yet? Do we just keep all of our oil in country instead of exporting?
Click to expand...

Our economy is much more diverse, so cheap gas is more of a benefit than the oil companies losing money.
 
Status
Not open for further replies.

Similar threads

Ken Kutaragi is the Greatest 'emperor' Of All Time and remains SIE's only true visionary
Opinion 2 3 4
155
13K
Moses85 replied
Intel's stock takes a big, runny dump
Drama Analysis Sales-Age 2 3
131
8K
winjer replied
WWE and Endeavor (UFC) announce 21 billion dollar deal.
40
3K
thefool replied
Phil Spencer interview - Says that their intent is for all Xbox games, including Call of Duty, to be available on Xbox Game Pass Day One
2 3
102
9K
Kenneth Haight replied
Oilmageddon - WTI Crashes To $7 Handle, Canadian Oil Prices Negative
28
2K
oagboghi2 replied
Top Bottom