Since 50 % of sales are exposed to the oil and gas industry, let's take a look at how the company performed when
the price of oil collapsed between 2014 - 2016.
Alberta has a revenue problem and if we should have learned anything since the international
price of oil collapsed in 2014, it is that we should not depend on royalty revenues from oil and gas to fund the day to day operations of our public services.
Then
the price of oil collapsed — from $ 115 in June 2014 to less than $ 30 just over a year later.
But the junk bond market actually began slowly rolling over a full year before
the price of oil collapsed:
The price of oil collapsed from near $ 120 a barrel in June 2014 due to weak demand, a strong dollar and booming U.S. shale production.
Not exact matches
The
collapse of oil prices is one culprit — but the larger problem is that Canada's aging population is radically reshaping the country's fiscal destiny
When the carrier's 2015 volumes fell because
of external forces, such as
collapsing oil prices, Reckmeyer saw an opportunity.
A rebound in
oil prices following the 2014
collapse of the crude market has somewhat curbed the need for such a large IPO, sources told the Wall Street Journal.
What Oliver should have done was backtrack on Harper's pledge to balance the budget, recognizing that the
collapse of oil prices would cause private investment to disintegrate.
The
collapse of oil prices interrupted the growth
of this part
of Berg's business, but «it's coming back,» Berggren says.
The Bank
of Canada said nothing in public about the possible merits
of deficit spending as it twice cut its benchmark interest rate last year to offset the
collapse of oil prices.
The
oil price collapse has made a number
of companies more attractive.
Like other major European airlines, the Franco - Dutch carrier benefited from low
oil prices and strong travel demand last year, while the
collapse of Monarch and Air Berlin has removed some competition from the market.
The
collapse of oil prices wiped out profits and killed the incentive to expand in the
oil patch, and economic growth
of less than 2 % offers little incentive for non-energy companies to expand.
As crude
prices began to plunge last year, many energy experts predicted a repeat
of 1986 when U.S.
oil companies lost their funding and the industry
collapsed into a yearslong bust.
By contrast, economic growth in Canada contracted in the first half
of the year and business investment — the most important factor in demand for imports —
collapsed along with
oil prices.
When the Bank
of Canada cut interest rates in 2015 to offset the
collapse of oil prices, it was worried about more than a blow to gross domestic product; it was also thinking about what mass firings in the
oil patch could mean for the financial system.
That conclusion is based in part by the recent experience
of Alberta, where home
prices sunk after
oil prices collapsed.
The Governing Council called the economy's adjustment to the
collapse of oil prices «uneven» and that business investment and intentions to invest remain «disappointing.»
«Hence, the fear
of deflation driven by an acute
oil price collapse receded, allowing bond yields to move higher,» he added.
In recent years, investors have had to cope with plenty
of uncertainty: three summers worth
of the Greek default crises (2010, 2011, 2012); the US «fiscal cliff» in early 2013 and the government shutdown that October; the Ukraine - Russia conflicts; the
collapse in
oil prices; China's slowdown and currency devaluation; and now, Brexit.
With the
collapse of global
oil prices, the largest recyclers like Waste Management have reported sharp drops in recycling revenue and stagnated recycling rates across the country.
Terex's crane sales declined 7.5 % in 2014, falling most steeply in the latter half
of the year — when
oil prices were
collapsing — and coming in below the company's own forecasts.
Just ask the investors who thought energy stocks were a screaming bargain in the fall
of 2014 — just months before the
oil price collapsed.
They saw the damage that would come from the
collapse of oil prices long before Bay Street did.
Russian markets, in recovery mode following a deep recession after the global
oil price collapse in 2015, have been ravaged since Friday over fears
of U.S. sanctions.
Before branching out on his own, he was one
of legendary investor Julian Robertson's first so - called tiger cubs, responsible for some big market calls during the 1990s such as the
collapse of oil prices after start
of the Persian Gulf War and the plunge in the British pound.
Canada still is coping with «material excess capacity» because
of the
collapse of oil prices.
Oklahoma has been a huge
oil - producing state, and while drilling - heavy states have tended to do well in previous editions
of our rankings, the
collapse in
oil prices and in active drilling rigs is starting to hurt.
The shipments are significantly higher than the current record
of 179,000 barrels a day reached in September 2014 before
oil prices collapsed.
To set the stage, Cramer took a look at two
of the biggest beneficiaries to the
collapse in
oil prices — retail and restaurants.
Jason Kirby at Maclean's wrote about a fellow who foresaw the
collapse of oil prices and now predicts future assessments
of current data will show the U.S. was in a recession at the start
of 2016.
The
collapse of oil prices and Western sanctions have plunged the Russian economy into a death spiral.
Oil prices collapsed on Thursday to their lowest since late November as investor worries about the world's stubbornly persistent glut
of crude erased most
of the gains that followed last year's OPEC's output cut.
With the
collapse of manufacturing many unemployed young workers migrated to Alberta, Saskatchewan, and Newfoundland for resource - extraction jobs, but employment growth in that sector has now largely evaporated with the falling
price of oil.
But when policy - makers studied the data, their models foretold a dark future from the
collapse of oil prices.
And now, the world is assuming that the tertiary effects — the
collapse of oil prices and crises in secondary exporters like South Korea — can be managed.
Carolyn Wilkins, the No. 2 at the Bank
of Canada, told me in an interview that Canada's housing market is trifurcated, or like a triple - layer cake: Toronto and Vancouver; Calgary and other places affected by the
collapse of oil prices; and everywhere else, where housing
prices are flattening out.
«It is likely the economy was in recession in the first half
of the year,» thanks to the damage from a
collapse in
oil and commodity
prices that has persisted since 2014, senior economist Randall Bartlett said in a note to investors Monday.
This scenario was part
of our thinking at the beginning
of last year, when Canada's economy was hit by the
collapse in
oil prices and we cut our policy interest rate.
With the
oil and natural gas markets stabilized, at least for now, investors should begin considering which companies could emerge from the rubble
of the
oil price collapse to see their stock
prices double or triple in the next few years.
The 2014 - 2015
oil price collapse may be understood then as a supply surplus that occurred at a time
of a strengthening U.S. economy (low economic uncertainty) and relatively low geopolitical risk (Figure 15).
A while back, O'Leary wrote an open letter to the Premier
of Alberta — a letter that included this sick burn: «Since you took over Alberta recently, the
price of oil has
collapsed.»
The 2008 - 2009
oil price collapse was part
of an overall crash
of the entire global economy.
The main cause
of the
price collapse of 2014 - 2015 was over-production
of oil.
The
oil price collapse of 2014 - 2015 began one year ago this month (Figure 1).
The
oil price collapse of the 1980s was similar to the present
price collapse because the primary cause was a new source
of supply.
It included the Asian crisis, the Russian debt default and the
collapse of LTCM, large falls and large rises in
oil prices.
Total active rig counts bottomed at 404 during the height
of the
oil -
price collapse in 2016.
To begin with, the economic devastation to Texas from the
collapsing price of oil is just beginning.