Thanks Forecast123 for a reasonable discussion/debateForemost, thank you for a reasonable discussion regarding the pros and cons of all of this.
Rest assured, in this environment I consider COS shares worth at least $12 dollars (based primarily on proven reserves and recent upgrades).
I truly wish not only COS and SU would stand back and take a look at the big picture, but some folks on this blogsite as well. OPEC, and in particular Saudi Arabia, has a knife at our throat. Frankly, and I know this will upset some folks, I firmly believe most folks in the Middle East consider the West nothing more than an entity to be defeated...whether it be financially or otherwise. The West is playing right into their gambit by fighting amongst ourselves when what we should be doing is banding together.
I appreciate both SU and COS need to look after their own best interests. But there is a scenario where 2 plus 2 could equal 5. These two BoD's need to get their sh!t together and come up with a win/win proposal that ultimately brings down Syncrude's operating costs (yep, that means a few less people in the executive suites) so that Alberta's oil industry can remain competitive on the world stage. There's enough sh!t hitting the fan out there...we don't need to be slinging sh!t at each other.
Smart and professional negotiators (not the Donald Trump school of aggression graduates) would sit down and figure out how to make things work so all Syncrude players wind up winners. Geez, what is so difficult about that concept? The bottom line is Canada needs to come up with an oil strategy that allows us to keep North America free of imported oil. This is what ultimately will make our economy stronger.
I doubt anyone from SU or COS BoD is reading this blog...but if they were my advice would be for them to put on their best suit and tie, arrange for a meeting at the top of some nice hotel (they need the business), talk it out, come up with a plan that keeps everyone happy in what is a very challenging environment, and then submit a "joint" proposal to both SU and COS shareholders that makes a solid case.
If COS can't do that with SU, then find another company willing to do this...IMO seems logical.
If they can't do that, then yes, we'll continue to grin and bear it and hope in a year or two we get back to the twenties because oil has got back to the sixties.
This is not rocket science. If our Directors want to continue to be making the big bucks than act like professionals and bury the rhetoric and get on with doing business. If they can't do that I will be showing up to the next AGM in my best suit and tie and bringing forward a motion to get rid of them and hire some professionals able to navigate these shark infested waters.
I am p!ssed off that both COS and SU want to have a gunfight on the deck of the Titanic. They should all be getting down into guts of the ship and repair the hole.