Published 2023-12-01
“…The MFSP’s asset-to-liability approach, which allows oil sands companies to avoid posting security where their assets are deemed to be worth at least three times more than their liabilities (3:1), is also counter-intuitive and counter-productive: instead of
collecting security when operators can afford it, operators would be required to post security when profitability is declining — precisely when operators are least able to afford it and resulting in further financial distress. …”
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