Canadian Oil Sector Facing Possible Credit Rating Downgrades As Crisis Continues

Meanwhile, the Trudeau government continues to sit back and do nothing except make things worse.

The Canadian energy industry is now facing possible credit rating downgrades, as the damage from the oil price discount for Canadian oil continues to spread.

According to Victor Vallance, the energy senior VP for the DBRS credit rating agency, “Currently the differential is very high on heavy, it’s very high on light, it’s very high on synthetic, so that’s putting a lot of pressure on cash flows and, obviously, credit metrics as a result. It’s very unusual. I’ve never seen … this disconnect between Canada and the rest of the world, unfortunately, because of the increase in supply and not sufficient enough expansion of takeaway capacity.”

A credit downgrade would only add to the woes being faced by the Canadian energy sector.

And those woes are being worsened by the Trudeau government, who have sent a clear message that the energy sector will be left to fend for itself, while also being shackled by regulations and legislation that makes pipeline approvals almost impossible.

The contrast between how the Trudeau government is handling the crisis in the energy sector, and how they handle problems in other industries couldn’t be clearer. When other sectors struggle, the government talks about offering immediate help and bailouts. Yet with oil, the Trudeau government merely says they’re “watching carefully.”

It’s despicable.

Spencer Fernando

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Don Taylor
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Don Taylor

Canada wont get better until the traitor Turdeau and his corrupt Govt. is gone

Jen
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Jen

There isn’t a single bone in jihadi Justin’s body that echoes his concern for Canada’s economy far less for the oil and gas industries particularly Alberta’s, but you will see this jihadi Trudeau fight tooth and nail with every emotion he possesses for the radicalism, ISIS, terrorists, sharia law, HAMAS, UN and any corrupt country that controls him with an iron fist.
Jihadi Justin gov is heavily protected by every bribed reporter and national media.
Businesses jobs will just continue to leave. It is as simple as that.

Eric Blair
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Eric Blair

And yet the Trudeau government still expects to have transfer payments coming from the oil producing regions of Canada to the non oil producing regions of Canada to continue, with Quebec being, by far, the biggest recipient of these transfer payments. Eventually Quebec will see less transfer payments as the oil producing regions will go broke. Am I seeing this right?

shawn harris
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shawn harris

Trudeau being the far left socialist elite globalist that he is, will stop at nothing to see his vision of the oil industry being managed into steep decline right up to and including being phased out entirely. Remember that it was his father Pierre Trudeau, who first used deceitful tactics, by saying and then demanding that Canada should have it’s own secure supply of oil ; as if we didn’t already have a secure supply of our own, to justify his desire to nationalize the oil industry. Thus giving rise to the National Energy Plan,which was code for nationalization of… Read more »