Export development Canada are throwing good money after bad by subsidizing the poor decisions of small to medium oil firms by providing them with capital.
They’ve approved $553 million worth of funding to help keep otherwise bankrupt companies alive, in spite of massive losses and a commodity that doesn’t look to be making a comeback any time soon.
“There are many smaller companies across Canada with solid fundamentals that are financially stressed, and those are the companies that we can really help to make it through this period of lower oil prices,” Mark Senn, vice president for western Canada, said in a statement.
It’s these sort of actions that keeps pressure on the price of crude. Companies must be allowed to fail, in order to balance the supply/demand situation.
I guess it’s up to the United States to lose jobs and bankrupt firms, for the benefit of oil companies worldwide.
America to the rescue, again.
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Well, to be fair, we were going to lose jobs and bankrupt firms anyhow. And given the size of Canada’s mess, $500M won’t make any real difference. It’s really just a symbolic total waste of money; a field where governments excel.
What makes me nuts is these energy firms
are the biggest blowhards all the time
saying private iindustries allways
know best.Let them fail , then
some one smarter will pick them up
for fuckall and make a fortune
and then pay the Gov’t 500 million in
tax revenues on their profits.
Stealth bank bailout? Deflationary, in any case.
LAME.
You would not believe how much tax Canadians pay – to see it wasted like this…I say
BRING ON THE LONGSHANKS.
Sitting in Toronto here I see it as an experiment, to see how angry it makes the public. Since we never get angry at our government and are seemingly happy to give them 60% of our earnings, the real bailouts will likely start soon, along the lines of our bank bailouts during the financial crises (yes we did bailouts just no one really knew about it)