Without our resource sector we would be in a severe recession. Ontario - normally the powerhouse province for the economy, now risks becoming a 'have-not province' according to our finance minister. Last statement I heard was resource was 1/3 of our market. I will not be surprised if it becomes over half. I think that's by market cap. ....??? our biggest problem is our drug culture?? Every HS kid??? Wow, that's some statement. I might be out of touch, but I didn't think that much. Do you have anything to back that up?
From Buffet CNBC interview. Fairly long transcript, lots of good info. http://www.cnbc.com/id/26337300/site/14081545/page/3/ ...... BUFFETT: No, no. I go to the movies, but I don't buy movie companies. I mean, I--I'm always interested in understanding the math of things and understanding as much as I can about all aspects of business. And what I learn today may be useful to me two years from now. I mean, if I understand the tar stands today and oil prices change or whatever may happen, I'm--I've got that filed away and I can--I can use it at some later date. And that's really the wonderful thing about investments is your knowledge is cumulative. So if you learn about coal or you learn about retailing or something, 40 years you--it's useful at some point. QUICK: Wait, does that make you think that an investment in a tar sands company, somebody who's making--taking advantage of that would not be worth it at $120 a barrel for oil? BUFFETT: Well, the biggest variable in whether it's a good investment is the price of oil. Now, it's important to know how much they can get out and what their costs are going to be and what the capital costs--all of that is important and that fits into it. But you still have to figure out what your own feeling is about what oil's going to be selling for three years from now or five years from now. Because you could be the world's greatest mining engineer, but if you were wrong about the price of oil in a big way it would negate all that knowledge. So it--I can tell you that if 100--if you had $120 oil from now till, you know, 50 years from now, that the tar sands would be--would work out very well. But I don't know the answer to that. And I may form an opinion at some point, and I've got it--I'm prepared to form that opinion now. QUICK: But you are not actively looking right now to invest in any of these companies? BUFFETT: Do I have a buy order this morning? The answer's no.
Wait, I missed that one... Siwash, are you saying ppl in Vancouver are not aware - that one surprises me a whole lot. I thought everyone out west was in the loop on the resource story (I'm in Ontario).
People don't realize the scale. In a general way, they are aware,but when you mention the investment in the tar sands is something around $100 Billion a year, they are surprised. Certainly I don't think the average person is aware of the enviromental impact, the long term impact is kind of scary. I forgot to mention how much NG is being burned to separate the oil from the sands... It's probably the largest industrial development in the world right now, I think Western Canada should be able to miss most of the economic downturn the rest of the western world is in at the moment, real estate prices have softened a bit, but this is coming off the last few years of 20-30% growth..
I am a US ex-pat living in Calgary right now, and the oil sands is what is driving the economy of the entire province of Alberta. If a guy can get his foot in the door of the industry here, he could be set. If there is anyone else on this board from Calgary, look me up.