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Gold/Mining/Energy : Copper Fox
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To: Theotokos who wrote (10380)11/15/2016 5:30:26 PM
From: louel1 Recommendation

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May be a couple of reasons why Buffett got out of Suncor. One he picked up around 25 to 30% gain. Two with Trump announcing he would remove the ban on fracking that re-opens up the Bakken oil shale production plus in other parts of US.

Trump says he is seeking lower oil prices within the country to support other oil dependent industries. Airlines are tied to fuel. When fuel cost goes up their share prices go down and vise versa.
Tax cuts for the middle class generally go toward consumer non staples first. That includes holidays, Travel and relaxation. So airlines benefit.

How ever I don't think Suncor will be affected to badly. Their production costs are already low, The Keystone pipeline will take at least 2 years before it is in service. So it may simply trade sideways for the time. That is a long time to leave money idle in waiting.
However, when Canadian crude finally begins flowing thru the pipe to the Gulf ports & refineries at lower transportation cost. SU and other Canadian producers will benefit by then gaining access to the offshore market. Just that it is still a couple of years out.

Being our oil is land locked the Americans pay less than World price for Canadian oil. About $50M per day less based production. They then refine it and sell it back to central Canada at full price. Trudeau's Liberals, Alberta's Rachel Nuttly and the rest of the pot smoking tree huggers and other freeloaders are against pipelines. Go figure.

The Governments if they were serious about benefiting Canada would insure Canadians from Coast to Coast are fully supplied with our Canadian product Oil & Gas refined right here at home. With safe pipelines delivering it to all provinces. It's really a no brainer.

Link below relates to it.

chamber.ca
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