$30 Billion exodus...from Canada + manuf. news

[kadee79]

But I'm pretty sure it will affect the US in some form or other, sooner or later....
Renewable is becoming cheaper than fossil.

Capital keeps marching out of Canada’s oil industry, with Kinder Morgan’s sale of its remaining holdings in the country on Wednesday adding to more than $30 billion of foreign company divestitures in the past three years.

Pembina Pipeline, based in Calgary, is snapping up Kinder’s Canadian assets and a cross-border pipeline in a $3.3 billion deal. For Houston-based Kinder, the deal completes an exit from a country that has frustrated more than a few companies -- from ConocoPhillips and Royal Dutch Shell to Marathon Oil.

The drumbeat of exits, rare for such a stable oil-producing country, adds an extra layer of gloom for an industry that accounts for about a fifth of Canada’s exports. The energy sector -- centered around Alberta’s oil sands -- has struggled to rebound since the 2014 crash in global oil prices, with capital spending declining for five straight years and job cuts pushing the province’s unemployment rate above 6%. Alberta is forecast to post the slowest growth of any region in Canada this year.

The situation isn’t likely to improve any time soon, with key pipelines like TC Energy Corp.’s Keystone XL and Enbridge Inc.’s expansion of its Line 3 conduit bogged down by legal challenges. The lack of pipelines has weighed on Canadian heavy crude prices for years, sending them to a record low late in 2018.

“If they thought things were getting better in Canada, they might hold on, but they don’t see things getting better,” Laura Lau, who helps manage more than C$2 billion ($1.5 billion) at Brompton Corp. in Toronto, said in an interview. “The pipeline situation is getting worse; everything is getting worse.”

www.msn.com/en-us/money/markets/in-dollar30-billion-exodus-foreign-oil-companies-bail-on-canada/ar-AAG8gCa?li=BBnbfcN

[kadee79]

U.S. manufacturing contracted in August for the first time in nearly a decade, the most recent indicator of the effect President Trump’s protracted trade war with China is having on the economy.



In August, the U.S. manufacturing purchasing managers’ index, which tracks the manufacturing sector, registered 49.9, a drop from 50.4 last month, according to IHS Markit. The latest figure is below the 50.0 threshold between expansion and contraction for the first time since September 2009.



New business to American manufacturers in August also fell for the second time in the past four months, according to the research and analytics firm. The diminished demand for new orders was the sharpest downturn in 10 years.



“The most concerning aspect of the latest data is a slowdown in new business growth to its weakest in a decade, driven by a sharp loss of momentum across the service sector,” Tim Moore, economics associate director at IHS Markit, said. “Manufacturing companies continued to feel the impact of slowing global economic conditions.”



The data from the August survey, he said, “provides a clear signal that economic growth has continued to soften in the third quarter.”

www.washingtonexaminer.com/news/u-s-manufacturing-sector-contracts-for-first-time-in-nearly-10-years

[Value Buy]

Aug 22, 2019 11:33:54 GMT -5 kadee79 said:

But I'm pretty sure it will affect the US in some form or other, sooner or later....
Renewable is becoming cheaper than fossil.

Capital keeps marching out of Canada’s oil industry, with Kinder Morgan’s sale of its remaining holdings in the country on Wednesday adding to more than $30 billion of foreign company divestitures in the past three years.

Pembina Pipeline, based in Calgary, is snapping up Kinder’s Canadian assets and a cross-border pipeline in a $3.3 billion deal. For Houston-based Kinder, the deal completes an exit from a country that has frustrated more than a few companies -- from ConocoPhillips and Royal Dutch Shell to Marathon Oil.

The drumbeat of exits, rare for such a stable oil-producing country, adds an extra layer of gloom for an industry that accounts for about a fifth of Canada’s exports. The energy sector -- centered around Alberta’s oil sands -- has struggled to rebound since the 2014 crash in global oil prices, with capital spending declining for five straight years and job cuts pushing the province’s unemployment rate above 6%. Alberta is forecast to post the slowest growth of any region in Canada this year.

The situation isn’t likely to improve any time soon, with key pipelines like TC Energy Corp.’s Keystone XL and Enbridge Inc.’s expansion of its Line 3 conduit bogged down by legal challenges. The lack of pipelines has weighed on Canadian heavy crude prices for years, sending them to a record low late in 2018.

“If they thought things were getting better in Canada, they might hold on, but they don’t see things getting better,” Laura Lau, who helps manage more than C$2 billion ($1.5 billion) at Brompton Corp. in Toronto, said in an interview. “The pipeline situation is getting worse; everything is getting worse.”

www.msn.com/en-us/money/markets/in-dollar30-billion-exodus-foreign-oil-companies-bail-on-canada/ar-AAG8gCa?li=BBnbfcN

This has to do more with the cost of production of oil from the tar sands. Extra expense to process the goo, means lower profits as wholesale prices of oil are down. On the plus side the buyers are all Canadian businesses, so Canada is going to enjoy more profit dollars staying in Canada rather than flowing to Europe or the states. I recently read BP sold out of their Alaska oil holdings also, as the field production is dropping off.

[tyfighter3]

VB, How do you put up with this Bull?

[Value Buy]

Sept 2, 2019 18:33:04 GMT -5 tyfighter3 said:

VB, How do you put up with this Bull?

Not sure what you mean........Can you pm me?

[kadee79]

Just some more "Bull" for any who care to read it!


www.msn.com/en-us/money/markets/the-entire-american-steel-industry-just-got-downgraded/ar-AAIh0Ng?li=BBnbfcN

[Value Buy]

Oct 4, 2019 15:14:18 GMT -5 kadee79 said:

Just some more "Bull" for any who care to read it!


www.msn.com/en-us/money/markets/the-entire-american-steel-industry-just-got-downgraded/ar-AAIh0Ng?li=BBnbfcN

And yet all the major steel companies closed positive on the week on this news......I agree on the diagnosis for the most part.....son works for Arcellar, two nephews work for USS and all say orders are slow, although overtime is still available just not literally guarenteed as it was even last spring.  With GM on strike it also has to hurt on orders going to Detroit right now. The union lucked out getting a great contract last year when the companies were literally printing money, and now the companies are bleeding money. US. auto production is still at a 17 million a year output, which is really good.

I have USS on my radar, and looking to buy if it drops another $2.25 a share.

[Gardening Grandma]

Spin, spin, spin.  Anything to avoid acknowledging the obvious.

[kadee79]

There was an article today...rail freight is way off too...has been for awhile.

Wonder if any of that oil written about in the OP has anything to do with the rail traffic being down?