| Random Nbr |
Released Comment |
| RRE0001 |
Concerned Citizen Myself and family are very concerned about the decision of raising the royalty as much as 20%. We believe this will impact the province badly. The oil company do show big earnings but we believe most of the earnings do get spent back within the province of Alberta. Which inturn boosts the economy and helps everyone out, Goverment and citizens of Alberta. Sure hope the right decision is made and the industry does not colapse causing everyone to loose out. Alberta has been progressing very well. If this slows the oil and gas industry down there will be a lot of jobs lost and business' closed down. Just our thoughts. |
| RRE0002 |
I agree with the report's recommendations re inceasing of Royalties.We had better get our fair share now because I have a horrible feeling that some years down the road we will be standing looking at a large hole in the ground asking ourselves what happend! |
| RRE0003 |
Honourable Roanld Liepert (PC): I have been a resident of Alberta for my entire 57years. For the past four of those years, I have been fortunate enough to be employed with an oil and gas company that provides me with a decent salary, health and wellness benefits and a responsibility to the betterment of my community. The company promotes volunteerism within the community and financially donates to organizations (which in my case is a hospital) annually, as long as I volunteer my time at the institution. My physical health has improved since this employment because my company promotes a healthy lifestyle and pays for my gym membership. My mental health has improved because I am under less stress about my present and future situation. I see my doctor once a year for a medical. My question to you is this, "If a decision is made in the next couple of weeks (as it is reported to be made,in the media), to implement the recommendations made in the royalty review report, and I become unemployed within the next year, will the additional monies the Alberta Government takes from the oil companies be available to me to maintain my mental and physical health?? My nephew owns his own welding business and works for many oil and gas companies. My niece is a production technician with an oil and gas company. The three other members of our family are not directly employed by an oil and gas company, but benefit from the financial activity generated by oil and gas exploration and drilling. Every member of my family is affected either directly or indirectly by the oil and gas industry. I express grave concern that with all the media hype around the royalty review situation, that a decision will be made to appease the hype and not the province on a whole. I have great difficulty in seeing how taking more monies from oil and gas companies can happen without affecting the day to day lives of the one out of six Albertans who are employed in the industry. I am now concerned about my present and future situation and that of my extended family. I would ask that more time be taken by the government prior to implementing any recommendations. This is major and deserves an extremely careful decision. |
| RRE0004 |
The report from the Royalty Review Panel should be accepted in full. I am appalled at the way big oil companies are trying to intimidate the government of the province of Alberta - and it appears as if it is working. As long as there is a profit to be made, the oil companies won't go anywhere. It this premier does not accept the recommendations and implement an increase in royalties, they will have lost my vote. |
| RRE0005 |
As a born and bred Albertan I fully support implementing the royalty review in it's entirety. I won't get into my dismay at the appaling condition of our schools; the shanty town communities that pass for new development and the ever increasing cost of living. I will say, given what we are now seeing happening in the United States after the fed submitted to the pressure of Wall street; the devaluation of the dollar and related inflation it would be a huge mistake for this government to cave to the interests of big oil. We've been doing that for long enough and it sounds like the Klein government knew it but, baffllingly, chose not to act in the interests of the average tax payer. These are the same people recording record Canadian profits, building towering buildings and $10 million dollar homes as monuments to their success. How has big oil helped me? I have perpetual rush hour; we're desperately short of new arenas and pools. It's not like I can take my kids to the Encana Sportsplex or the Petro-Canada twin arenas. If I'm honest with myself the truth is even with a royalty increase I will probably benefit very little. Most likely that money will go to building the infrastructure around Fort McMurray the oil companies are moaning for. It makes a person wonder why they're moaning at all. [Information Removed] |
| RRE0006 |
I think the review was very short cited, Mr. Stelmach if you are so pro rural, be prepared for the catastrophic effects your proposed changes will do to the towns that are so dependent on activity in the oil and gas sector. Invest in infrastructure to promote even more investment into this province before you start raising royalties. You would be wise to allow the private sector to invest in these infrastructure projects. I am a 25 year old life long Albertan and this is the biggest shame I have ever felt for my government, I would expect this from a national liberal party. I look forward to a younger generation that is more forward thinking getting involved in Alberta politics, this review is clearly a process that will take us backwards. I look forward to a short political term for you Mr. Stelmach, your record to date is poor and being a Calgarian now living in Northern Alberta you should be also ashamed of your handling of municpality injections. Edmonton's receipt not being equal to Calgary on a per capita basis is ridiculous. Will your review implementations also be as backwards as this move? I guess time will tell, but if you want a real review panel why didn't you invite the heads of industry not some second rate panel. I encourage you to look at Tristone Capital's report. |
| RRE0007 |
REVISED SUBMISSION: A news article appearing in The Indianapolis Star (www.indystar.com) of Thursday, September 27, 2007 & page A6, under the heading of "Report: Millions in royalties go unpaid." details what is happening relative to the failure to collect millions of dollars in royalties. Apparently a $150 million computer system that is supposed to help keep track of oil and gas royalties has been a "profound failure." The report indicates the collection process is riddled with mismanagement, ethical lapses and conflicting relationships with the energy industry. No doubt many of the same energy companies involved in the U.S. are the same companies doing business in Alberta. Since my copy of the review report has not been received or studied as yet, could this be a major similar problem in Alberta? It would be worth investigating. I have the news article on hand if copy is required. Your response will be appreciated. Respectfully submitted, [Information Removed] |
| RRE0008 |
All of the panels recommendations should be implemented as a minimum. The royalty rates structure needs to be transparent to the public and ultimately should be in the same range as other countries which have less political stability, less infrastructure and more cost intensive exploration. |
| RRE0009 |
We presently receive billions of dollars in royalties. Under the new royalty recommendation, it is said we could get a lot more. The oil companies feel that we will actually get less due to the economics involved with producing oil and gas. I agree that the economics would result in less production and thus less royalties paid to the government. I think before Premier Stelmach implements the recommendations, he should ask himself "what if the oil companies were right?" Alberta could go through another rough time like when Mr Trudeau implemented the National Energy Program. I would rather not go through that again and I don't believe that Mr Stelmach would want to have that as his legacy. |
| RRE0010 |
I can't believe that the goverment is even considering to go through with this royalty useing the panels numbers, their numbers need to be relooked at. The ripple effect that is going to occur from the oil companies cutting back on the drilling and capital spending will be catastofic. How is anybody going to be able to spend money in this province when their own personal job will be decreased by the decrease of the person before them occurs. Example if 3000 people lose their jobs or take pay cuts they wont buy new cars or furniture then the people selling that won't be making money to spend on the next item and so on. It's not that I don't think we should'nt increase but do it small and gradually. submitted by a very concerned Albertian. |
| RRE0011 |
To The Powers that be This is your wake up call. This Royalty review has given you an opportunity to demonstrate your lack of comprehension of the development of a province both economically and socially and the ill effects of drastic royalty rate increase. Millions of dollars are being spent all across the country, even in the maritimes, due to the number of out of province employees making money in the Alberta oil patch and spending it back home. Alberta Oil sands projects account for 60% of the value of all major projects in Alberta according to Alberta Economic Development. What will happen to Alberta's economy or Canada's economy when the royalty increases sacks most of those projects. Are you willing to sacrifice our economy for a $500 cheque? Most Albertans are not and we would appreciate it if you would focus your castigation on a more suitable topic. |
| RRE0012 |
I'm skeptical of industry complaints for the following reason: oil is over $80/barrel and most of their projects were started on $40/barrel assumptions. If the surplus $40 is going into their pocket, they won't walk away if its only $30 or $20. |
| RRE0013 |
Mr Premier: Apparently the seven deadly sins have been reduced by one, via our new gods (aka the "Oil Companies"!) And bullying threats are now acceptable behaviour. Pardon my cynicisim, but I trust you will not only ignore their greed, but will institute the recommendations of the Royalty Review Report. I could bore you with more opinions , but I think you get my point. If you want more views from an "average" Alberta voter--just ask! Cynically, but sincerely, [Information Removed] |
| RRE0014 |
I believe that if the royalty changes are implemented as recommended by the Royalty Revbiew Panel, significant negative consequences will be experienced by the Alberta economy. I suggest changes are likely necessary, but should be based on facts and be implemented using a very careful, measured approach. |
| RRE0015 |
The next Royalty Review – the Retail market We are letting the Retail companies operating in Alberta get a free ride. We should have a study to see if we are getting our fair share. A cursory review tells me we take in the least amount from the Retail market in Alberta, given that we have no PST after all. I propose we bring in a PST, one that we can all be proud of so we get our fair share! We should however avoid the highest rates among the provinces, so we should aim for the top quartile. I think mirroring Quebec’s 7.5% would be just right. It is not as high as PEI or Ontario, but just a touch higher than Manitoba and BC. We are all missing out on that gravy train! |
| RRE0016 |
i work in the alberta oil patch of the governemnt, if the government goes ahead with this nonsense this well be devastaing to the oil boom in alberta . it will put thousands of people out of work probaly including myself . would you sooner have everybody employed or on welfare or unemployment. if the government thinks thats this is a good thing you are wrong . keep alberta working. why does a couple of milliion dollars mean so much to the government or would you sooner have alberta working. you would be better of in the long run to get a a little at a time instead of one big sum and shut everything down and get nothing.dont shut alberta down you are so wrong if you do this. |
| RRE0017 |
I believe the royalties paid to the Government of Alberta could be amended. HOWEVER, I also believe that the proposed increases in crown royalties could potentially result in job losses and current O & G properties being devalued. Everything that I have read, I have not seen the Alberta Government address how the current O & G industry will fund new energy sources. It is my understanding that coal bed methane, shale gas, electicity alternatives are being funded by the profits of conventional schemes. New technology comes at a cost (low productivity and high costs) and Government will adversely affect the economics of new growth in the Province with the introduction of proposed royalty takes. In addition, it is my understanding that syncrude properties cost a huge amount of money just to get facilities and new technology upgraders built. The commercialilty of these properties is already borderline and payout is long term, I agree that perhaps something could be negotiated but it appears that colaborative negotiation with industry is not occurring. I believe that smaller companies will be hit so hard by the Alberta Government royalty proposals that they will be forced to abandon new drilling projects resulting in fallout like, lay offs. Large companies will likely shut in operations and look abroad at plays that are more profitable. The Alberta Government is thrusting us into a depression if they go forward with this proposal. I understand that many people believe that Oil and Gas Companies have been fat too long. Sad thing is that I see companies having to look for new technical ways of extracting what is in the ground from already dying depleted fields in Alberta. Unless the Government is will to negotiate I see companies seriously having to tow status quo or abandon new projects. With no growth comes depleting of existing fields, with an industry that will not progress forward unless there is enough incentive to do so. The Governement of Alberta needs to find a way to work with the O&G community and turn this fiasco into a win/win scenario for both Government and industry. Thank you, |
| RRE0018 |
The government of Alberta has a duty to manage and dispose of natural resources, includling oil and gas, in manner that recognizes that the government owns these resources for the public interest and the public benefit. The current economic boom benefits a small segment of the population and creates hardship for a significant portion of the population, such as senior citizens on fixed incomes; single income families (i.e., single parent or stay at home parent); and recent college and university graduates who cannot afford to buy a home. The government should ensure that resources are sold and developed in a manner that does not create such serious social problems. Further, the government should receive a significant portion of revenue from the sale of such resources--at a minimum market value. Adopt the Royalty Review Report recommendations and use the extra revenue to alleviate the social and environmental problems created by the current rapid development of oil and gas projects. [Information Removed] |
| RRE0019 |
I agree on the royalty review report |
| RRE0020 |
I believe the response by oil companies was to be expected but I am concerned at the lack af professionalism that was used by Encana and others in using scare tactics of job losses. They should be embarrassed at their statements and should apologise to Albertans for their greed. As a drilling rig manager for over 30 years I saw the slowdown coming long before the royalty review and have also been alarmed at how ineffiecient may large companies have become in their operations over the boom years. Many pockets have been filled with a total disreguard for ordinary people. I hope the government can negotiate a successful agreement with energy producers but DO NOT BE INFLUENCED BY THE THREATS THAT HAVE COME FROM THESE CORPORATIONS AS IT IS A FORM OF BLACKMAIL AND NOTHING ELSE. ALBERTANS HAVE NOT BENIFITED AS THEY SHOULD FROM THE ENERGY BOOM. |
| RRE0021 |
STOP giving our money away to the multinational oil companies. Set royalties at world levels and review every year. STOP with the huge tax breaks. The oil companies already have the advantage of playing in their own back yard, in a stable political system, with no one trying to shoot them. They enjoy a good transportation system and a ready, able and knowledgeable workforce. For the same royalties, do you really buy the argument that they will go elsewhere? Use some of the extra revenue to fix schools, tuition, medical care and care for the elderly. Help the small towns be sustainable as a place where parents can grow families in an alternative to cities. Diversity makes stronger ! Look at the Scandinavian countries, and try to see a better way to handle social programs and "heritage Fund" use. We should be ashamed of how the weakest members of our society get the least help from the govt at all levels. KEEP your PROMISES ! |
| RRE0022 |
Mr. Stelmach, I feel compelled to provide my feedback to the Royalty Panel Report as released last week. As I am in the industry of energy production I am biased from what I see but also very aware of the current industry situation. While it is understood that there must be a reasonable sharing of the upside for resources to ensure the betterment of our Province, there is also less to share if investment is significantly reduced by the implementation of onerous royalty rates and elimination of programs designed to spur activity in less profitable segments of our industry. The proposed changes claim to give a break to low rate gas wells (which our company produces almost exclusively). The reality is the only break comes below the industry break even economics where NO drilling will occur! In 2006 the average industry finding and development cost per barrel was $28, production costs were $9. On a BOE basis gas is trading today at $30 per barrel. This is uneconomic BEFORE royalties, let alone after. The new royalty regime begins to increase gas royalty rates beyond today's levels once cross about $6.50 per mcf of gas, the futures on gas do cross back into the regime of $7-8 gas over the next year and these low rate wells will be hit with a royalty INCREASE! GCA is to be set by the Province and will not reflect the current increases in capital cost of facilities. We will be processing the Provincial share at subsidized rates, obviously unreasonable. Based on the current conventional models in the basin there will be little new investment into the sector as little or no upside is left on the gas side of the ledger. No consideration has been given in this report to alternate royalty structures for unconventional gas which could make up as much as 25% of our future basins' resource but will struggle in the current economic environment and worsen under the new royalty proposal. Notwithstanding the above facts of our current industry position there is the matter of past investments made by firms in landsales based on the previous royalty scheme. This is an unfair and potentially litigious issue in itself. Alberta has long been a bastion of free enterprise that has allowed the entrepreneurial spirit of the people here thrive and blossom. Due to this spirit we have eliminated our debt, reduced our taxes (not far enough) and allowed for a very bright future for the province. This has also provided much cash flow for the rest of Canada, although unappreciated. If enacted as policy this will be one more step towards hurtling the province back in to the NEP eighties and crippling our advantages. Please look to be more reasonable on the step changes that occur with price as this is double dipping and limits the upside of those who challenge to beat the odds and explore or improve on recovery. An obvious weakness occurs in the case of multi-lateral wells [Information Removed]. These wells are drill with three horizontal laterals drilled from one wellbore and produced concurrently. An ingenious method to improve recovery and well economics will now be subjected to higher royalty rates than three individual wells! This is discouraging the innovative people that we have in this province from improving recovery and internal economics. Why? [Information Removed] Regards, [Information Removed] |
| RRE0023 |
The government of Alberta needs to maintain vision on the most fundamentally important issue in this debate. That is, that title and ownership of the resources in this province rests solely with the perople of Alberta not the petroleum industry conglomerates that profit from the economic spin-off. The rhetoric offered by industry executives and more recently by their employees, does little more than conjure up old and toothless arguments, that are sounded more in self-interest rather than in a desire to reach an equitable result, that provides, firstly, for the improvement of the quality of life for all Albertans, present and furture, and only then, secondly, to ensure continued investment and growth in the industry. Do not allow the self interests of the petroleum industry cloud this government's fiduciary obligation to the people of Alberta in the same way the Insurance industry lobby did to the previous government with the bogus insurance reforms package that Premier Klein force fed to the people. Do what is right. That is the mandate that you were given. |
| RRE0024 |
There seems to be an imbalance between the oil sector and all other industries in terms of wages in Alberta. The oil companies are able to pay wages that at times are double the wages every other business can afford for a comparable position. As a result, these other businesses either have difficulty attacting employees or they have to import foreign workers to fill vacancies. This tells me that the oil companies are generating profits beyond what is reasonable. Therefore, I believe the government should take the advice of the Royalty Review Panel. This will take away the advantage the oil companies presently enjoy in terms of unreasonable profitability and place other businesses on an equal footing with the oil sector Thank you, [Information Removed] |
| RRE0025 |
I think that there is a middle ground in the royalty debate that should be looked at. I do believe that Albertans should be receiving more in the way of royalties, and I do not think that oil companies will just pack up and leave. With oil at or near record highs, that would not happen. I also think that a bit of a slower pace in the oil patch would be beneficial as the economy has gotten too hot too quickly which has brought about many negative factors. That being said, the oil in Alberta does create a lot of jobs and other fringe benefits that most Albertans have come to expect and don't realize. I would like to see a real middle ground, possibly spltting the royalty report numbers right down the middle and not allowing one side or another to argue that they were given the preferential treatment (...It is probably not that easy!). I do also think that this new money needs to be put into our education and health care systems as these seem to always be lacking (especially education) the proper funding a rich province should have. I do see both sides equally and understand that these two systems are often looking for money but I cannot understand how my children have to fundraise within their schools to help pay for things that the province should be funding. My son had to share a text book for the first month, as his class did not have enough textbooks, and in his social studies class he was told that they do not have a textbook yet with the introduction of a new curriculum!? This is in the affluent community of [Information Removed] where money is not as much of a concern as other areas of the province, yet this sounds like something out of a third world school!! I do expect the premier and his cabinet to do what most Albertans seem to want, which is a larger piece of the royalties. I will also say that as much of a conservative I may be, I will look at this as something to consider in the upcoming provincial election (including the comments about my childrens lacking education). Thanks for the opportunity to be heard- |
| RRE0026 |
The Royalty Review Report should be implemented in w/o fear of exodus of oil companies. They will not take the oil with them and the oil will not disappear. One positive effect will be a slow down of tar sand development which has brought many problems to Alberta: High labour shortage, High housing shortage, High inflation which mainly affect Albertans on fixed income, High demand for services with low contractors available who can easely inflate prices. [Information Removed] |
| RRE0027 |
While I recognize that the governemnt felt the need to review royalties. I also have a need to feed my family. I feel that it is absolutly important that the government does not scare off big buisness. My Significant other's job feeds our family of three children BARELY! Your government does nothing for our family though its policies but tax us more. If his job is lost due to more greediness, it will be devisating for our home. We just past a period of overtime bans and lay offs. Thanks for bring more stress into my home. I now know that if there are any changes prehaps a liberal isn't so bad. They may tax us, but at least our social system will be intact. If your government immplements this my family will need a strong soical system. [Information Removed] |
| RRE0028 |
Sock it to the oil companies and see what they do. I bet they will do nothing. In today's newspaper, an article points out that US authorities have a hard time tracking oil company royalties. In a case of non- transparency, you have to treat the companies as a black box. |
| RRE0029 |
In general I support the royalty review committee’s recommendations. I particularly support: 1. Royalty simplification - get rid of old and new 2. Increasing the overall "take" 3. Increasing royalties on oil sands from 25% to 33% after payout. I see the following issues: 1. The time it will take to change administrative systems to handle the proposed changes has not been factored in. Changes should be implemented for the start of 2009. 2. Economic analysis of profitability of gas "take" increases for high production targets have not been fully modelled by the committee. They used the new average rate. I suggest the rate should be more carefully modelled and likely modified to reflect a sliding scale based on gas prices - where the new rates do not kick in until after gas hits $12/mcf. 3. Ring fencing oils sands projects - no recommendation made - this requires a recommendation - more work required to stop constant creep of the fence. 4. Oil Sands lease must be made to expire with no activity - as is the case with conventional o&g - and as was the original intent. Thanks. |
| RRE0030 |
We need to ensure that the citizens of Alberta receive their fair share of the money from the oil and gas industry. We have people on the streets, seniors looking for food on a regular basis and students that can't afford to go to school. This has got to stop. We the citizens have put alot of money as well as blood sweat and tears into the oil industry in Alberta and it's time they faced the real facts - pay your fair share. Get out? I don't think so - where else are they going to go? Everyday a new upgrader is announced - that's alot of money invested in the province for them to pack up and move out. Yes, the oil industry and it's spin offs have supported our family well over the years but so many others haven't been as lucky. I worked in a field not supported, nor influenced by oil and did very well. Thank you - stick to your guns and let them know we're not out to take anything more than the citizens of Alberta are entitled to. |
| RRE0031 |
The increases in the report are very modest (especially in light of the substantial "gift" that government has given the oil and gas industry, and will not put Alberta on parity with Newfoundland or other oil producing areas around the world. But it is a start - at the very least, the report should be implemented unchanged. But it is shouldn't stop there - there should be a further investigation into why the oil and gas industry has been subsidized and why they are not paying the "cost of doing business" in Alberta. They must be treated the same as any other industry - the cost of doing business is theirs, not the taxpayers of Alberta. We have something they want and need and they should pay a fair price for that. Why are they getting special treatment? There is no need to subsidize them any longer especially in light of their high profits over the recent past. Their profits went up and part of that is due to our price on the raw material not rising accordingly. Time to rectify that and look at further increases so we are receiving a fair price for our resources. |
| RRE0032 |
I don't mind getting more royalties from the oil industry as long as it is fairly implemented. Fairly from the point of view that companies need to get a decent ROR for their investment and shareholders. Most Albertans benefit as investors through their RRSP's or the Canada Pension Plan. An increasing royalty rate as commodity prices increase (much like the Stumpage rate in the Forest Industry) may be a way to implement this. Many Albertans do rely on the oil & gas industry and all benefit from the royalties being paid currently through the lowest provincial tax rates in the country. So let's find a mix of what other jurisdictions charge for royalties (we don't need to be on the high end)) and keep in mind the cost of doing business currently in Alberta. [Information Removed] |
| RRE0033 |
Living in Calgary, in Alberta working in the Oil Patch I enjoy a good life, as do many, many people in this Province. I think with the uncertainty there is now re Trust Companies, not in a position to buy the smaller producer because of their uncertainty caused by the change of regulations by the Federal Government, there is already a slow down in activity. I think the Government of Alberta needs to be extrememly careful about changing the Royalty structure. Perhaps the Royalty structure does need to change, but I think the new structure goes into place in the future, with adequate notice to the Companies and they buy into it or not. Like a mortgage, you don't sign one and then have it change before certain terms are up. Remembering the 1980's and the foreclosures, how many young adults have bought into the "Boom" and are one month away from disaster if they loose jobs. I caution the government to be very, very careful in their decision, and to invite the industry to meet and have their voice and concerns heard. |
| RRE0034 |
I am a production engineer that works for a large E&P company. Everyday I scrap potential revenue generating projects because the economics just don't work. If the royalties increase, more projects will be canceled and existing wells will be shut-in because of negative cash flow. In attempting to generate more revenue for Albertans, increasing royalties may actually have the opposite effect. No revenue is generated from cancelled projects and many Albertans that rely on activity in the industry will lose their jobs. I feel that the current level of industry activity is acceptable and increasing royalties will drastically reduce revenues. We're already walking a very fine line and changing the regime could be disastrous. |
| RRE0035 |
Please seriously take into consideration the feedback and data from the oil and gas companies. They are not opposed to paying more......just make it fair for everyone. It is not Albertans against the oil and gas business!! They are the ones who have taken the risk, and have contributed to our thriving enonomy. My pay cheque along with thousands of Albertans are directly connected to their business. And when the pay cheques of Albertans are involved all I can say is "I WANT MY FAIR SHARE". The decision of our government on this issue will have a direct impact on the paycheques of Albertans. I wonder if those people who lose their jobs will still be wanting this model of "their fair share" of royalties. Hind sight is 20/20 but what will be the cost to Albertans and this government?? |
| RRE0036 |
Hello, the addition of a few percentage points to the overall cost to oil companies will be insignificant compared to market fluctuations in price. The current fiscal opportunity should be taken advantage of by the government to stockpile money for the time when this limited resource is no longer available as a revenue source for our province. I am an owner of a manufacturing firm and have more orders than I can fill due to the limited labour pool. I am currently looking to sell or outsource my business outside of Alberta because there are not enough people to do the work. If the economy slowed down it would be a benefit to the province. 1: by reducing the overall stress level that people are under due to the the pressure in the workplace. 2: by allowing the inadequate infrastructure a chance to catch up. Hope you are listening and will do the right thing rather than listening to the squeaky wheel of industry. |
| RRE0037 |
Please take a good hard look at the numbers and be sure that those numbers are up to date and not taken from a few years back. The energy trust companies have already been kicked hard by the Conservative Government lying to them. Please don't let this Alberta government add to that blow. |
| RRE0038 |
I think if the royaltes are increased as reccommended by the review panel, there will be a significant slowdown in activity. This will affect a large number of Albertans who live in small towns and who depend on drilling and other field activities. Therefore, I feel the current royalty regime should be left in place. [Information Removed] |
| RRE0039 |
I think that an increase in royalties id long long overdue. This might result in a small cutback in exploration and developement but the infrastructure of the province has been unable to meet the demands that present growth place on it. A slight cooling off of activity could be a blessing in disguise and result in long term benefits to the people of this province, instill some semblance of stability to the industry and protect our resourses in the long term. |
| RRE0040 |
I think the Provincial Government should raise the royalties. Albertan's have not been getting their fair share. |
| RRE0041 |
Good evening. I posted a suggestion for incremental profit-based royalties a little earlier but have since read so many strong responses from ‘both sides’ I thought it would be well to first express support and commendation for the recent press comments made by Alberta Premier Ed Stelmach as reported “By James Stevenson, The Canadian Press” The article states in part: Last week, Stelmach reiterated earlier promises that he will strike a balance. "I promise you we will make a decision that is fair, realistic and one that recognizes the need for long-term competitiveness of our energy sector," Stelmach said during a speech in the northwestern Alberta city of Grande Prairie. "So I would encourage everyone to calm down, take a deep breath and let's find the right balance." Well said. As stated earlier, I am a US investor with much exposure in Canadian resources, but I also favor companies that work to benefit the people and communities where they operate. I also believe a balanced royalty adjustment can be fair for everyone. There is enough resource wealth for everyone involved to have a fair share. Royalties can be increased in a way that does not discourage oil sand developers or reduce potential employment (and resulting tax income) or shock the market and investors that fund these costly projects. A profit-based gradual incremental annual royalty increase would not choke O/S development plus it would provide earlier and steadily increasing profit-based revenues to Alberta. This will allow developers and investors including many Albertans to realize an early return for the monies they have risked. As each company reaches profitability the royalty levies would begin and could then be increased annually until a fair maximum level is reached. Everyone can win. I hope my abbreviated comments may prove helpful and I wish Mr. Stelmach the best in finding the balance that will indeed prove to be fair for all! [Information Removed] |
| RRE0042 |
Go for it. Stop listening to the very rich oil executives and do something that will help ALL Albertans! Increase the royalties to a higher level. |
| RRE0043 |
As a small business owner in the upstream oil industry, I am gravely concerned of the potential negative impact if the recommendations made in the report are accepted in their entirety. My major concern is over the impact on our primary market , which is the small oil and gas producer . These companies are, as usual this time of year, looking at their budgets to determine allocation of funds and many are reassessing in light of the situation. As a result the work we would normally have backlogged for the this season is almost non existent. I would hope that our Premier considers the negative impact this could have on our "Alberta Advantage". I am sure I speak for many who "work in the trenches" when I say "If it ain't broke - Don't try to fix it" Status quo - we as Albertans have a very good quality of life. Please do not, for the sake of "money grabbing" screw it up. |
| RRE0044 |
I think the oil companies NEED to pay higher royalties. The existing royalty structure was built on $20/bbl Oil. They should pay existing royalties on the first $20/bbl ... new royalties on everything above that price! Secondly, the plan to move Alberta's bitumen out of the province for processing inthe USA should be legislatively prohibited!!!!!!! That is OUR oil - the jobs that come with it whould be OUR jobs, the taxes from it should be OUR taxes, and the close proximity to gasoline should provide US with lower pump prices. The Americans aren't treating us too nicely with either Beef or Slaughterhouses, why are we allowing them to steal our OIl??? |
| RRE0045 |
I was born and raised in Alberta and have worked in the oil and gas industry since 1978. Like most Albertan's of my generation I have seen the industry, and Alberta's economy go up and down with the various price cycles and government intervention cycles over the years. To date the single biggest negative impact on the economy of Alberta in my career was the NEP that was introduced in the early 1980's. Back then it was the Federal Government trying to extract what they considered to be their fair share what was perceived to be a limitless revenue pie. In response companies quickly suspended their capital programs, workers were laid off in the thousands and the booming Alberta economy suffered a terrible blow. I understand the Alberta governments desire to ensure Albertans get their fair and equitable share of the resources being developed and produced by the oil and gas industry. However, it is extremely worrying to see the current Alberta provincial government considering action that will likely have the same impact on investment and the economy of the province that the NEP did in the early 80's. The prosperity that the people living in Alberta currently enjoy is being driven by a healthy private sector economy that is heavily tied to the oil and gas industry. The oil and gas industry is an international business, and most of the companies that are currently investing billions of dollars have a choice of where they invest. Alberta has been the target of significant investment because until now it has been seen as a fair and honest jurisdiction to do business. To change the provincial royalty structure without consideration of the terms and conditions which the investment took place would put Alberta in the company of pariah states like Venezuela. I would presume that when the Alberta government enters into a contract with a business they expect the business to honour that contract. By not honouring the terms and conditions that companies have purchased leases under and spent billions to develop, the Alberta government is not demonstrating that it is a fair place to do business. What is a fair share? As an Albertan I don’t want to see the province give away its’ resources, but care must be taken to ensure investors remain confident that a reasonable return is attainable when considering all factors that influence profitability of oil and gas development. On the conventional side of the business, Alberta does not enjoy the luxury of easy to develop and produce reserves that are common in other places in world. Well rates are lower and operating costs are higher than other petroleum basins because of the nature of the reservoirs. Most of the current investment in Alberta is to develop non-conventional resources that are both costly and have an inherent technical risk. When companies make investment decisions they look at the total cost and risk associated with development not just the royalty or tax paid to the local government. Given that the cost and risk in developing and producing Alberta’s reserves is higher, royalty rates must remain competitive to ensure continued investment. In conclusion I would recommend that the Alberta provincial government not implement royalty structure changes currently being proposed that are likely to have a dire consequence to the Alberta economy. |
| RRE0046 |
I am very disturbed about how the Royalty review has been conducted and do not have any faith in the recommendatins provided from this panel. They are comparing apples to oranges, using outdated information and skewing the numbers to fit their profile. What is even more disturbing however is to hear that Albertans are not getting their fair share. We are so lucky to be living in this province and the lifestyle we enjoy is due to the oil and gas industry and the jobs they provide. Another thing that no one has mentioned is how much these companies actually do provide to the community. Who built the new Children's Hospital -- this was not possible with government funding alone. Who took over and runs the Talisman Center,how about the Saddledome. How many charities and sporting, theatre and music events are only possible because of dollars provided through oil and gas companies in this city. Last night on the news they said they polled Calgarians and they gave our lifestyle a failing grade. I don't know what these people expect, it doesn't get much better than this -- go live in an other city - Windsor, Ontario perhaps, and then see the differences in the life that we are provided here. I can't believe in this time of prosperity, when you can get a job in a day that pays at least $10.00 an hour that people do nothng but complain and the government hides behind peoples ignorance to try to convince all that Albertans have not been given a fair shake. Unbelievable!! |
| RRE0047 |
I think that the government should represent the interest of the people of Alberta, not the forgein investment. Yes the two are closely linked but very distinct. Based on the information that I have read, I believe that the government of Alberta should implement the recommendations of the report. The resource belongs to Albertains / Canadians. There will always be a need for oil and gas in our economy. What's the rush in getting it out of the ground so fast and giving it away? Speeking from a concerned Albertan Thank you for the opportunity to provide a comment |
| RRE0048 |
I and my family believe the Royalty Review report recommendations are very fair and honest. The commission did a lot of research and went to the bottom on all issues to make an impartial recommendation. I can appreciate Oil Industry concerns because they will get a bit less. It is unfortunate their companies' value will go down a little. At the same time, the oil & gas industry must appreciate the fact that the resources belong to Albertans and to them. The low royalties they are currently paying are from the 1980s & 1990s when they lobbied for credits from the govt of Alberta at the time when prices were low. Now the prices are 5 to 6 times higher and they still do not pay their fare share. The Oilsand palyers themselves shot themselves in the foot by jumping all at the same time. If some project owners will claw back due to increased royalties, it will be a good thing for everyone as labour costs will get moderate and the projects will become economical. Finally, Mr. Premier you have to have steel backbone and strong nerves. Be honest to your conscience. The industry has received billions and billions of free money at these high prices of oil and same as gas when prices were high. The industry will never agree to pay a peny more than they are now paying. You must look to the future generations when there will be no more oil. Please implement all the recommendations of the report as recommended by the commission. It was your commission and members selected by you and your ministers. So, please do not budge by the pressure and implement report recommendations for the sake of all Albertans. Thanks [Information Removed] |
| RRE0049 |
The oil companies are already facing a relatively high cost of developing Alberta's resources. Add to these costs by increasing royalties will have a drastic negative impact on the oil and natural gas activity in Alberta. A lot of the ongoing operations are no longer economical and will result in cancellation of existing projects and future development. This will definitely result in loss of thousands of jobs and a significant downturn of the economy. The government should not implement something that will crash the robust economy that Albertans are enjoying. |
| RRE0050 |
It is with great despair that this new is sweeping over Alberta. I have been here for 17 years, and today is the first time I have ever heard Albertans fearful for their jobs. If the government follows the recomonations of this board, money will move out of this province to a more friendly climate. It is shameful that the industry that means so much to the Canadian economy, is being threatened. I hope there are people listening to industry. If Encana moves $1B out of this province, where did we gain? If the other big players follow Encana's lead, the repurcussions will be felt throughout the province. I will absolutly vote for anybody, or any party that is against these reccomondations. |
| RRE0051 |
So let's assume that all these oil companies follow through on their threats to decrease activity here. This would not be all bad. It would open up opportunities for a host of other companies. They need the oil. The demand is not going away. It will still be cheaper than most of their other choices. In the short term reduced activity will take pressure off the labour market making things easier for all companies in Alberta to find workers. Clearly this is currently a problem. The government hired competent people to look at this issue. I believe that their recommendations represent a reasonable and fair approach to the royalty issue. Albertans own the resources, we need to get our fair share. There are so many needs unmet in this province and we need to build the Heritage Trust Fund so that future generations can benefit from our current boom. Please don't succumb to the threats and intimidations. Peter Lougheed is seen as a great premier because he stood up to the oil companies. It is your chance if you do the right thing Mr. Stelmach. |
| RRE0052 |
Get all the accurate and appropriate facts before making a significant change that will affect Alberta's economy and well being. Basically dont bite the hand that feeds you. |
| RRE0053 |
I totaly disagree with the high percentage of royalty. This will hurt all albertans in one way or anther. I work in the service industery we have went form 190 staff in april to 105 in september and still looking at cuting 20 more people so I really hope you you have money for these people and myself when you push me out of a job! And maybee when the unemployment level is up to 45% you guy's will realize you [Expletive] up a good thing! I think maybee the goverment should come to a much lower rate and work with these company's that support alberta's people. Idon't think big city paople understand what this will do to every one.I will lose everything so please don't let this happen! |
| RRE0054 |
I am in full support of the report regarding royalty reviews and I think it sould be implemented fully. Sincerely, [Information Removed] |
| RRE0055 |
To Whom it may concern As to the discussion on the royalty issue. As we all know the conventional drilling is very slow and also the service work while the money is spent in the oil sands. Maybe increase the royalties on the sands production and leave the conventional oil as is or increase slightly. If some of these oil companies want to send raw bitume down to the USA then apply a furture royalty on that production. At todays prices I don't see any of these projects slowing down as they have already spentso much money already. Since gas prices are so low an increase in that sector would definately have a negative effect as protrayed by Encana. At todays prices the oil industry shoud be busier than it is. Hopefully things can be workrd out for every one. Thakyou In dvance |
| RRE0056 |
The report on royalties should be implemented in total. Every part should be implemented. The oil industry is saying that to charge more will result in them losing money and having to cut back. No oil company has looked at the cost to our industry and families of high gas prices at the pumps, in our homes and said we won't charge the fair market value because we can see how it will hurt you. Instead they say that this is a business and they have to charge fair market value or they will be uncompetitive and that will hurt everyone in the long term. Its interesting that message seems to be forgotten when it is them that will have to pay more. You are the government and you have a moral and legal responsibility to manage the assets that Alberta has. Giving away our oil and gas so that some people can have a better job is not managing the resource properly. If you give it away now what will you do when there in no more left and the resource and jobs are gone. No matter how far into the future that may be it will happen one day. Keeping royalties as they are is like a farmer giving away his land so he can get a job driving the combine for the new owner when he could sell the land for what it is worth and get a job somewhere else. You are a government that brags that you operate like a business. IF that is so then you have no excuse to not charge fair market value or more than fair market value for our resources. That is the minimum expectation of a business in a free market. Alberta says that it has a winning advantage. If so then it should be able to charge more for it's products. In my talk about town I do not here anyone say that the oil companies should not pay more. The only place I here comments that support lower rates is from the Oil industry representatives and pundits that are obviously in support of the industry. Even my friends that work for oil companies say they should pay more. Most Albertans believe that this government is in the oil industries pocket. You just have to look at the actions of the EUB over the years. You just have to look at the changes the Government has made over the years to support the industry. Giving the industry support, ignoring the basic rights of individual s in preference to the oil industry may be acceptable to a lot of Albertans. Selling out our Province so that foreign owned oil companies can make fortunes is not acceptable. I believe that if you do not implement the report completely you will have proven to most Albertans how far in the pocket of the oil companies this government is and you will no longer be in government come the next election. Every time I here a member of this government comment how you have to be fair to the industry, how you have received comments in support of keeping royalties as they are, how this report is just the start and needs further consideration, I get mad. You are just trying to set us up so you can get away with not implementing the report. That is why I have made this comment. I can see your government is already trying to put a spin on the report so you don't have to implement it. If this report is not implemented I will be mad as hell and will do my utmost to ensure that no conservative sees the legislature again. If this report is not implemented, in my opinion, you will have stolen money from the pocket of every Albertan and deserve to go to jail. |
| RRE0057 |
Oll companies have gauged us for years . They need to share the royalties with Albertans !!!!!! |
| RRE0058 |
Its about time that Oil and Gas companies return a proper royalty to the "owners" of the resource they are given access to. Witnessing the profits and the bonuses that these companies are rewarded with makes you realize how much they have to dispose of before publishing their "official" profit figures. The companies should be required to pay a more realistic rate considering the price of a barrel of oil is substantially higher than when this was put into place. While some costs have increased, effeciencies have also been realized. The rate should be increased to a point where its "fair" to all concerned, not just the Oil companies. |
| RRE0059 |
As a tradesman working in Ft Macmurray and living here,I see this review from two sides.I believe we as Albertans should ricieve a bigger pay out from our resorses,regardless of what, or where they originate.I also could be out of a job and would be unable to provide for my family.I would be bankrupt and homeless.Is this something you as my government would want to happen?I hope this is not the case.Because if it is ,I will do everything in my power to stop this Royalty Review recommendation and will do everything in my power to change this government that represents me and my fellow Albertans.There has to be some kind of middle ground that all parties involved with this can come to without threats of pulling planned projects off the table or threats of lost jobs.As my rep in this issue YOU the gouvernment must see all the issues relating to this and come to a fair and equtable agreement.We cannot let BIG OIL run this province but we do need to see the peoples issues that we will face.Now as a working tradesman ( UNIONIZED ),You as my gov rep could try to change Alberta labor laws so that i can Nagotiat a fair contract to meet the rising costs of living and working in Ft Macmurray.In closing please try to see all sides before making a rash decision regarding me and my families future. Thank You. |
| RRE0060 |
I originally thought that the Alberta government should enact the royalty review report in its entirety. However, after learning more detail, I think that the recommendations in the report do not go far enough. The report reflects only the bare minimum that should be done. We're still way under market, even if we enact all of the recommendations. Man up and stand up to "big oil". We're the laughing stock of the world. |
| RRE0061 |
Royalty Review: Well done; failure to recognize what was identified in the report and act in total support will be a huge disappointment in this household. We need to ensure our grandchildren will benefit from oil sands development to the same extent as us. If oil corporations currently active at Fort McMurray aren't happy with what they hear, let them leave. The oil will remain in the ground. "If you leave it, they will come". We're looking for a push back and a slower pace of development |
| RRE0062 |
I CURRENTLY WORK AS A PRIVATE CONTRACTOR IN THE OILFIELD. I ALSO HAVE A [Information Removed] AND I AM TOLD THAT I MAKE TOO MUCH MONEY TO RECEIVE ANY MONEY FROM OUR GOVERNMENT TO HELP US OUT WITH THINGS SHE IS REQUIRING. IF THE ROYALTY REVIEW CHANGES WE WILL NOT ONLY QUALIFY WE WILL BE ON WELLFARE DUE TO CUT BACKS AND BELIEVE ME THEY ARE ALREADY HAPPENING DUE TO YOUR IGNORANCE. OIL COMPANIES ARE HOLDING ANY PROJECTS UNTIL THEY HEAR THE OUTCOME FROM YOU. SO PLEASE TAKE THIS INTO CONSIDERATION AND USE YOUR ANNUAL SURPLUS ON US THE TAX PAYERS FOR DISABLED CHILDERN FUNDING, ROADS AND TAX CUTS SO THAT OUR PROVINCE DOES NOT CRASH. |
| RRE0063 |
I believe the Government of Alberta should accept the royalty review report in its entirety. [Information Removed] |
| RRE0064 |
The fundamental reason that Alberta is prospering and experiencing a “boom” time in its economic condition is that it is currently a good place to invest. By substantially changing the existing royalty structure as was suggested by the Review Panel, our province will no longer be the first choice for oil and gas producers to spend their money. Oil companies make investments based on returns, and by cutting into these returns substantially they will invest their money elsewhere. Many companies have holdings in neighbouring provinces or internationally. If the economics of investment shift in favor of British Columbia, Saskatchewan or overseas, these investment dollars will leave the province. The province potentially stands to lose billions of dollars in lost investment. I personally do not understand what the average Albertan hopes to gain by increasing the royalty percentages. I seriously doubt that I will personally see any benefit such as reduced taxes, better infrastructure, or even a cheque. However I can expect to see my house lose value, my stocks to drop, and have a poorer paying job if the royalty scheme is implemented. Let Alberta continue to be the envy of Canada and the rest of the world and enjoy these prosperous times. If anything we should be looking for ways to further stimulate investment, not destroy it. |
| RRE0065 |
It is fine to think that there may be more money that can be derived from the oil patach for Albertans but please remember that the goose that lays the golden egg has only so much gold. Please for all Albertans sake do not go to far in your desire to increase royalties. Even the oil companies expect an increase but find ways to make it fair and even handed such that we can continue to enjoy the "Alberta Advantage". It may be best to set up on ongoing joint committee composed of senior members of the oil industry and senior members of government to sit together and more effectively evaluate the ongoing changes within the industry and set royalties that reflect the ongoing changes in the value of the dollar and the commodity. Those who work in isolation will become isolated and their work will have little long term effect, but those who work in concert can effect well thought out plans that will have long term advantages for all stake holders. The next important thing is to change our policy such that more of the royalty monies are put into the Alberta Heritage Trust Fund and administered more effectively to provide true long term advantage to the future of the province and its people. |
| RRE0066 |
I read this morning in the Globe that Encana has said it will “reallocate” $1.0 Billion from their 2008 capital budget and move this money to other, more economical areas (outside of Alberta) within their Operations – if these Royalty changes are endorsed as presented. I believe this is just a start. I would like to ensure that Alberta’s royalty policies continue to support a healthy investment climate. The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. Whether we work for upstream O&G companies, or service companies or even work outside the Oil and Gas Industry – the impact of this up and coming decision could have an extremely dramatic result to future development in Alberta (and the obvious economy of this province as a whole). I strongly urge that the proposed changes to the royalty changes proposed be reviewed and revised to insure that Albertans remain employed, moving ahead and leading the way as Canada's No. 1 province. We are already the richest and only debt free province in the country...why do we need to get greedier? |
| RRE0067 |
It appears to me that "Our Fair Share" report is balanced and would put Alberta in the middle of the pack worldwide. We should not worry too much about a slow down in investments as that may provide Alberta with an opportunity to catch it's breath. I think the report should be implemented in full. |
| RRE0068 |
As we get down to the wire, it appears the government is starting to cave in, for political reasons. It is starting to look more and more like every other government requested study, "If we don't like the results, we just ignore them." I work for "Big Oil", not by design but by takeover. Big Oil has done nothing for me, in fact they are constantly taking away. Staff received an email from the president late this week, which stated they are "very encouraged by what the MLA's are telling them behind closed doors", and advising us to contact your MLA, soon, if we haven't already. What is this "behind closed doors" stuff? What happened to the transparent process Mr. Stelmach promised? What has "big oil" offered the MLA's now? Our company says this is down to politics now. Does that mean who lies the most wins? "Big Oil" has been trying to force the prices down for the past 12 months. Jobs have been lost for the past 9 months because of that. Our company cut our budget from $2.5 B to $1.5 B last year and are doing the same this year. Royalty review had nothing to do with that. Give your head a shake and do the right thing. Big Oil is only interested in their shareholders and their executive making the big money, they don't care about Albertans or the future of Albertans. All staff received an invite this week to celebrate our "very successful 3rd quarter". Isn't that special? Lack of paying royalties to Albertans obviously contributed to the successful quarter!! Don't be swayed by "Big OIl". They couldn't care less for Alberta, trust me. If you can't do the right thing, take it to a vote and let the people decide. |
| RRE0069 |
I strongly disagree with the recommendations in the Royalty Review Final Report. If these recommendations are implemented, I will not vote Progressive Conservative ever again. |
| RRE0070 |
I believe that the increase or maintenance of the current royalty structure must be handled with a great amount of care. A large percentage of Albertan's work in the energy sector and the current economy of Alberta is based on the bounty of this industry. When addressing this issue I think that true cost accounting needs to be utilized to encompass the extensive externalities that this report has not covered in accounting in the revenues associated with production. Oil and gas are the only industries that are regulated cradle to grave and have the mandate to reclaim and remediate any impacts to the environment in which they operate. In a province that has record surpluses and is out of debt I think taking additional funds from an industry that is a key funder to several community initiatives would be futile. The more money the government keeps in the hands of the industries and in the hands of the people a more viable economy the will remain. |
| RRE0071 |
I feel at this time it is very important that we understand that the royalties may have to be increased BUT to do it in one fatal swoop would be a disaster for Alberta. I've read what EnCana said and what the oil companies in Calgary are saying - I don't think we can afford to lose these investments. Increase the royalties if you must BUT do it progressively over a period of 5 years perhaps but not all at once. |
| RRE0072 |
I support the broad directions in the royalty review proposals, they do seem to consider the cost-structure of the oil and gas industry and are sensitive to commodity prices. Implement them, or most of them fully, but do it in a collaberative way with industry. Thanks |
| RRE0073 |
Tax the hell out of Big Oil. Alberta has the product they need/are addicted to, and on top of that it's in a safe part of the world. Be North America's Norway Alberta. Free education, etc... Alberta has the opportunity to push Canadians and Albertans a giant step forward, into a new era. Do it. |
| RRE0074 |
Dont kill the goose that layed the golden egg guys, modest reforms implimented over time may be acceptible to the industry, but a rabid cash grab as per the review will have dire consequences to the Alberta economy. Try and practise moderation for the good of us all. |
| RRE0075 |
I'm very afraid that if this Royalty thing goes through it's going to devastate oil and gas in Alberta. If enacted, the recommended royalty increases will cause a great impact on our industry, which is currently near 5 year low rig utilization. It will have an impact on all sizes of companies, and I think will have a huge and immediate effect on service companies if it is enacted. I work for a service company and fear that my job will be one of the ones sacraficed if this happens. Please reconsider putting this into reality. |
| RRE0076 |
I believe that the Royalt Review Report is going to cause me, and my family to lose our jobs and possible our homes.. I work in the Oil and Gas Industry and I know that my company is already taking steps to stop drilling "just in case it goes thru" and that they have plans to go out of Province. I love living in Alberta. Please do not the suggested actions take place. Thank you. |
| RRE0077 |
I wish to comment on the Royalty Review Panel recommendations. I strongly oppose the recommendations to increase royalties. The royalty increase will harm Albertans and oil and gas industry in the province and all related industries and services in Canada. [Information Removed] |
| RRE0078 |
The resources of this province belong to the people of the province, not American or Chinese oil companies. My children go to a school that hasn't seen a coat of paint in 20 years. Additional royalities could be used to pay for health programs to fight obesity in schools or even paint. Stand up and quit giving our resources away. |
| RRE0079 |
I think that the royalty review is allready outdated when you see that there is a royalty increase to producers effective September 1st 2007. The increase in royalties is due to the following amended regulations. AR 207/2006 - up to $500k increase in royalties by well AR 206/2006 - over $1m increase in royalties by well AR 205/2006 - unknown inpact These regulation changes should be taken into account before any other increases are made. I also believe operating cost increases and the value of the Canadian dollar versus the US dollar should also be a factor in any calculations of royalty rates. Operating costs are high, and oil and gas pricing is in US dollars. [Information Removed] |
| RRE0080 |
I would be extremely disappointed (maybe devastated is a better word) if our government foolishly accepts the royalty reviews proposals as originally expressed. I feel the public has been misled (due to complete ignorance by our government) about the implications this proposal will have not only on the oil & gas sector, but the entire Albertan economy and every Albertan. The wide-ranging effects of such a short-sighted royalty increase are many. Why hasn't the government addressed any of these obvious issues to the public!?! It is virtually common sense that if you increase taxes on oil & gas companies, you are going to decrease the amount of projects they plan to carry out. Countless drilling, oil sands projects & the like will be delayed, cancelled or scaled back to meet certain return-requirements by these companies. Guess what happens if drilling is curtailed indefinitely? Government revenues will never be realized! Jobs will be lost both in the oil & gas industry & every sector of the economy that it drives. Please don't disrespect the people of Alberta with a flawed proposal such as this that could ultimately change the face of Alberta's economy in a negative way. Put more time into it & come up with an acceptable solution. Please! |
| RRE0081 |
I am an employee of a major Canadian oil and gas company. As such, it may be surprising to you that I generally support the royalty review report's findings - in direct conflict with the stated position of my employer. I believe that, in the current high price environment, Alberta's royalty system does not recover an adequate share for the resource owners (Albertans), and that this has contributed to excessive development, especially in oil sands, which has led to inflation, infrastructure strain, and smothering of other industries in Alberta and Canada. A change in royalties isn't necessary to change this - the market for labour and materials will do it just as well - but the current system was not designed with the current price environment in mind. A change is needed. I do agree with industry assertions that these changes will bring about a recession if prices remain as they currently are, but I also believe that this recession is inevitable with or without the royalty changes. Eventually either falling prices or rising costs will dampen capital spending. In any case, the recession will be short lived - either costs will fall or prices will rise again in response to the recession, and activity levels will resume. This will mean short term layoffs and economic hardship, but as I say, I think these are coming one way or another - better to fix a flawed system now. The only concern I have is that, in my opinion, the proposed scheme may dissuade the industry from pursuing deeper, riskier gas targets in favour of continued development of shallow gas and oil sands, which in my opinion put more strain on the environment. I am also concerned that the proceeds from increased royalties be handled responsibly - no more "prosperity cheques" or wrong-headed government projects - we need to start investing in our infrastructure again, repairing institutions like the the public health and education systems, the EUB, Alberta Environment, and Alberta Energy which were crippled by early 90's cutbacks. Most of all, we need to put more of our non-renewable wealth away for the future, because eventually the goose will stop laying the golden eggs to which we are now addicted. |
| RRE0082 |
I don't believe that the Royalty Review Panel was an unbiased neutral panel. They refused to use the actual cost increases to energy producers over the past 3 years by claiming they were artificially inflated. They also stated that these companies should use a bidding process to reduce these costs. I was taken aback by the inference that we're not smart enough to do this on our own. I have 42 years experience in the energy industry in Alberta. I work mostly in the winter months as a contractor coordinating winter drilling projects in northeastern Alberta and we put all the contracts out for bid. The costs have gone up because many of the service providers especially the drilling and trucking contractors have had to replace old equipment that was becoming obsolete and in some cases unsafe to work with anymore. These companies have also had other cost increases like 2 to 3 hundred percent increases in insurance costs. There were also statements made by panel members such as "they should just leave it in the damn ground" when someone reminds them that Alberta has no undeveloped conventional oil reserves and very little conventional gas reserves left. Someone in government needs to stand up and tell it like it is. The slant put on this controversy by the media is just plain bulls**t. The present royalty system was put on place because the province has a huge resource in the oilsands but oil companies were reluctant to develop it because of the amount of investment required and the length of time it takes to get any returns on investment. To make the changes recommended in the review is just not a good way to do business and the province might never regain the investor confidence that would be lost. The report claims Alberta would gain 2 billion dollars a year in royalties if the changes are put in place. That may be so but would only last a couple of years and then would drop sharply as production drops. Along with this we will have the loss of probably more than 25,000 jobs. At an average of $80,000 income per year there goes 2 billion from the provincial economy. The profits of the natural gas side of the industry have always been varied but anytime there are good profits the companies reinvest in Alberta. This 2 billion dollars is better off in the hands of the people who spend it and keep the whole economy going. We constantly hear from the media how most of the population doesn't benefit from our energy sector. Do they really think that places like Superstore, McDonald's and Tim Horton's would be paying starting wages of 10 to 12 dollars per hour plus better than ever before benefits in Edmonton if not for the robust economy in the energy sector. At the company where my wife is employed which is not directly related to oil and gas most of the employees have recieved increases close to 40% over the last 4 years. Every employed person in this province has income gains far exceeding the cost of living over the last few years. I know of servers in restaurants who are being paid 10 dollars an hour and are taking home 500 dollars a week in tips. The main setback for many in the province is the lack of affordable accomodation especially for those who rent. This needs to be addressed but not by killing investment in the energy industry. Letters to the media by someone like me are simply treated as another rant by an energy industry representative. Someone in government needs to wake up and remind the people just how well off we all are and that everyone really is getting a share of the economy. |
| RRE0083 |
Are you Nuts!!!! I'm from a small Alberta Community and since Ed annouced this ridiculous idea it has effected our town already! Most of the workers of the oilfeild are not working !! They're getting served with lay off notices.If Ed wants to see what he's already done to our province tell him to leave his cushy office and drive down to central Alberta so he can see the empty shops, and the rigs racked in trucking companys yards,all the equipment just sitting there.Talk to the oilfeild workers who are barely being able to make a go of it and holding onto their houses by a thread. But I guess that would help with the rising cost of housing because lots would lose theirs.Talk to the people who run clothing stores,parts stores,etc.. they all are feeling it already!Talk to the people this is going to affect instead of some suit who's never spent a day getting his hands dirty in his/her life. He'll lose the oil companys and the unemployment rate will sky rocket! If he pushes this threw he will single handedly ruin Alberta economy over night.Good job!! I wonder if he'll get re-elected I think not!!! |
| RRE0084 |
I believe that there are fundamental problems with the data used and assumptions made to prepare the royalty review report. If the proposed royalty changes are adopted, Oil and Gas companies will stop investing in Alberta and start investing in other areas in Canada and the U.S. that will be more economically attractive. This in turn, will slow down Alberta's economy and eventually severely damage our province’s future. Sincerely, [Information Removed] |
| RRE0085 |
I very strongly support the recommendation to adjust (increase) the royalty rate. Business partners share struggles in difficult times and profits in good times. Alberta made substantial concessions to its industry partners when energy prices were low. Now that prices have escalated, it is apprpriate that the concession of low royalty rates no longer is fair to one of the partners. Royalty rate should be raised! Increasing the rouyalty rate should have dual advantages of increasing provincial revenues and moderating the growth rate of an over-heated economy. The increased revenues can be used to address some of the infrastructure problems that, in part, have been created by rapid expansion of the energy sector. Moderating growth will help reduce enviromental degradation, water consumption, the Alberta CPI and the substantial labor shortages faced by large and small businesses across the province. Finally, I do not accept the arguement that changing the Royalty structure will drive business away from Alberta. Business still has a fundamental profit motive. At current, or much even lower prices, the energy sector knows it will remain profitable. Danny Williams succesful negotiations in Newfoundland are testament to this profit motive. Sincerely, [Information Removed]Sherwood Park AB |
| RRE0086 |
I believe that now is the time to increase royalties that belong to all Albertans. The oil companies are making money (possibly too much) and are causing the problems with services in many cities, Gradne Prairie and Fort McMurray. They have siphoned off trades people by offering high wages, depleting workers in other industries such as construction which in turn escalates the cost of housing. It is now their turn to contribute to a vibrant economy via increased royalties. That will do two things it will possibly make housing afforable again for young Albertans and it will stop the stupid spending that has taken place in the Oilfield sector. You have my full support, thank you for increasing the "wages" for Albertans through the royalty increase. |
| RRE0087 |
A discussion between the goverment and the oil companies must take place. A meeting agenda to discuss what economical royalty figure benefits all parties is what is needed. You simply cannot throw a figure at someone and expect the company to accept it without any discussions. Negotiate, negotiate, negotiate what figure works for all parties involved. This I mean by us the Albertans, the Government and the oil companies. We are all affected. Let's not lose sight of this. Thanks, [Information Removed] |
| RRE0088 |
I believe that Albertain went through some real rough times with all the cut backs, we were being told, by Ralph Klien and the Members of Parliment it had to be done.And now we find out , we weren't getting enough in Roylties. So who is running this Province, The Oil and gas companies, I don't remeber voting for them. I believe the Roylties, should be up to 4 Billion a year to get back what we lost. If these oil and gas companies want to leave, let them, any company that pulls out now, can not come back till they pay for the Royalties, they for got to pay. Alberta will at least have the water these Companies are wasting to get the oil out, plus I heard in the oil Sands for every barrel of oil it takes a barrel of water. I hope future generation can drink oil! If we get higher Royalties does that mean the Tory Government is going to start taking care of the poor Albertains that need decent food and shelter, or is that up to the United Nations. Tories are building 909 million dollar clinic, there's not enough staff at nursing homes, were are the people going to come from to work it. We've got 909million for a clinic but can't solve the problem of homeless people, and were thier next meal is coming from. I feel ashamed to say any more I'm born and raised, Albertian. We can take care of the Rich but not are own . We need an Election in this Province, I'm not voting TORY enough is enough! |
| RRE0089 |
It is important to me as a Canadian and Albertan to voice my opinion on this matter. It is also important to me that Alberta ensures that the royalty policies continue to support a healthy investment climate. The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. I am sure the Alberta government is focused on or will allign its focus on "doing it right" and with “integrity”. By openingly listening to the concerns of the "People" of Alberta, the Alberta Government that we trust in will, with the right facts, make the right decisions for the future benefit of all, not just the egos of some. |
| RRE0090 |
Dear Sir, I am writing this e-mail in hopes that a sober voice can be found to react to the recent recommendations of the September 18, 2007 Royalty Review Report. Firstly, I am a young professional who works in joint venture negotiations at a junior exploration company in Alberta. As such it’s important to note that while I do have a vested interest aligning with the oil and gas industry, but I also have a better understanding of the oil and gas industry as a whole than many of the people who fully support this report’s recommendations. My reaction is not one against any form government intervention in business, or one that a government’s primary role is facilitate business. I agree with the goals of this report; specifically that Albertans deserve their fair share of oil and gas revenue. My concerns lie in what I believe are some serious misconceptions (and I believe blatantly misleading statements) on the part of the panel that conducted this report. I will summarize these below and try to be as concise as possible. 1. The panel used a cost structure from 2005 (source: [Information Removed] ) It’s no secret that costs have risen drastically over the past two years. Why then would this panel use lower 2005 costs to base a future royalty regime upon? Alberta is the highest cost basin in the world to operate in, and royalties must reflect this reality. 2. Impact on investment I fail to see how the government can retroactively look at last year and state that they could have collected $ 2 Billion more in royalties. It is simply incorrect to assume that increasing royalties will have no effect on investment. I’m not saying that investment would have dropped and completely negated that $2 Billion increase, but surely it would have some effect. On a go forward basis the panel claims this increase will not decrease investment, yet we have already seen a decrease in investment this year in Alberta (30% decrease in drilling) based solely upon decreasing gas pricing and cost increases. Seeing this cost sensitivity I can’t understand how the panel contends that an increase in royalty (an off the top cost that does not take into account other costs) will not impact drilling. [Information Removed] has stated that it will decrease its Alberta budget by $1 Billion and [Information Removed] has stated its entire 150 million dollar budget has now been directed to Saskatchewan. Simply put the panel has drastically underestimated the impact this will have on investment, and thus total production (and royalty base) in the province of Alberta. 3. Impact on type of drilling Alberta is a mature basin with smaller pools and lower production that many other basins in the world (18 boe/d average compared to 3300 boe/d in Norway). This royalty regime is most punitive to oilsands and high production gas wells. Stating that the decrease in these area’s will be picked up in “conventional development” is impossible as conventional reserves are decreasing in both size and availability. Yes 82% of gas wells may pay lower royalties, but those wells only account for 25% of production. It seems more likely to me that companies will switch to lower productivity wells which would lead to a decrease in royalties paid (according to the panel) and a decrease in overall production. 4. The panel did not include Landsale bonuses in “government take” These amounts totaled $3.5 billion in 2006 and $2.4 Billion in 2007. These amounts have risen drastically over the past few years and need to be taken into account as part of the “government take”. It is no surprise that our royalties seem low when the panel used costs that are 20-30% too low ( [Information Removed] ) and ignores $2.5 to $3.6 billion in revenue. Further, we have seen in the past year that investment in Alberta is cost sensitive. Drilling has decreased 30% based on higher costs and lower gas prices. In light of this the panels assertion that increasing royalties will not decrease activity seems extremely illogical to me. I would like to thank you for taking the time to read this e-mail. I hope that I have adequately explained my concerns and that you feel these deserve consideration in whatever royalty decision the government makes. Yours Truly, [Information Removed] |
| RRE0091 |
Both my wife and are employed in the oil and gas sector and reside in Calgary. My wife works for [Information Removed]and I work for [Information Removed]. We are deeply concerned with the proposed royalty changes the provincial government is contemplating as laid out by the Royalty Review Panel. The Panel has failed to consider the negative economic impact the proposed changes would have since inevitably at the margin projects (under the current royalty regime) will not take place if the proposed royalty changes are made. It will not do the Alberta government any good if they are collecting higher royalties from a lower production base and have lost out on personal/corporate taxes due to reduced economic activity. We can tell you this: if our economic interests are negatively impacted as citizens of Alberta we will remember this at the ballot box! |
| RRE0092 |
Dear Sir/Madam: I am writing to ask the Alberta government to reflect very carefully before blindly undertaking to implement the Royalty Review Report as submitted. I have reviewed the report and other material that has been generated in response. It is clear that the report has major technical flaws. The failure to consider billions in [Information Removed] lease sales bonuses received annually and the disingenuous exclusion (some might suggest) of British Columbia and Saskatchewan as comparative models come to mind as examples. The Government of Alberta and not the review panel is ultimately accountable to voters. This fact will be abundantly highlighted should Alberta's most critical industry undergo an economic implosion should ideology replace common sense. Yours truly, [Information Removed] Calgary, Alberta |
| RRE0093 |
The oil companies should pay us a fair market value for the non-renuable resources they are extracting. Their profits have never been higher, there profits should be embarassing to them. I think you should increase the royalties and invest the extra income in schools and medicine. |
| RRE0094 |
alberta's natural resourecs are forthe benefit of ALL Albertans - including FUTURE ALBERTANS. non-renewable resources MUST be managed with this in mind. This includes the government of Alberta collecting royalties and securely investing saving for future generations. While Alberta must remain competitive, our MLA's must not be pressured by corporate scare tactics that they will move elsewhere - this is simply not feasible for them given the profit in the industry - and some of the highest corporate salaries in the world. Oil and gas companies in alberta have benetifed from a royaly regime that they knew would not last forever. As a citizen of alberta, I urge the Government of Alberta to do what is best for citizens and the children and grandchildren of our citizens, not what is best for corporations. The Report clearly demonstrates that Alberta can and will remain competitve with higher royalties. |
| RRE0095 |
Many seniors have already lost millions by changing the rules to the income trusts. dont do it again. Revisit this in a year or so. |
| RRE0096 |
Leave conventional oil and gas alone |
| RRE0097 |
Find a middle ground - say between a 4-8% increase to keep everyone happy. |
| RRE0098 |
DON'T MESS WITH THE ROYALTIES!!! |
| RRE0099 |
Proceed with all recommendations! |
| RRE0100 |
Please leave it alone. There will be a lot of people going bankrupt. All your going to do is cause a lot of tax payers to be hurt financially. Cow/calf operators are depending on the oil patch to pull through. |
| RRE0101 |
I have seen so many reports of errors and erroneous assumptions. We need to take more time on this. The panel may be intelligent people...but I doubt they had the combined capacity of the various groups who have sinced analysed their methods and conclusions. Lets ensure this decision is RIGHT...it is FAR more important than being FAST! Politicians are voted in to make the RIGHT decisions. FAST decisions should be reserved for simple issues. Thank you. From Deutch Bank....and MANY others.... http://www.capp.ca/raw.asp?x=1&e=PDF&dt=NTV&dn=126940 Excerpt. Cutting PTs for Suncor and PetroCanada -10% Our first reaction to the Alberta government's recent royalty review panel report was that it was authored by a visiting delegation of Venezuelans. Entitled "Our Fair Share" it squarely recommends higher tax to compensate the Albertan in the street more for self-perceived under-taxation. This is justified with multiple illustrations of the lower tax take in Alberta relative to other oil regimes. However, it almost totally fails to address one of its primary objectives, and crucial marginal issue: RETURNS. Adding instability, proposals take IRRs from relatively bad to worse. Compan Global Markets Research y Following Venezuela’s lead? The panel’s task was to assess the position of the royalty regime relative to other global regimes “taking into account project returns”. This was the first point outlined in the list of issues to be addressed. Yet we read this report as positioning a new regime almost entirely based on “government take” of cash flow, regardless of returns or value. Inherent risks such as CO2//global warming/Kyoto are not factored into the required return; nor are discount rates, Canadian dollar costs vs US$ revenues, nor barely the issue of the huge discount of Canadian crudes to WTI. Indeed, the proposal is to base an additional escalating “severance tax” on WTI prices, which have disconnected from local heavy oil prices to record highs even as the report is released. Above all, the oil sands have some of the lowest returns of any geographic regime, with a Pre-Take NPV10/boe of only $11/bbl at $75 WTI, or 91st out of 105 regimes examined in value under its current terms. When examined in terms of govt take relative to value of reserves, we see the current regime as fairly positioned: relatively “low-take” for “low value” reserves, with currency, oil price, local cost and environment risk. Power to the people – the Stelmachistas? The oil and gas industry in Alberta, already struggling to cope with escalating costs and labor issues that have dramatically pressured oil sands project economics and reduced natural gas drilling, are now faced with a proposal that will knock over 10% off of upstream valuation and 1% off of project returns. Suncor (depending on Crown Agreement) and Petro-Canada, will see 2008/09 earnings reduced 9% and 2%, respectively – and long term value reduced by up to -10% at least depending on oil prices. Those hardest hit are companies with upcoming, major developments, with Husky and Petro-Canada losing 10% of upstream value, while Suncor, sheltered by its Crown Agreement, would only lose 6%. Risk, risk and risk; and there’s risk. Above all, be warned about risk. This is a negative for Canadian oil sands plays, and a key risk. It remains |
| RRE0102 |
I believe an increase in royalties is good for new oil and gas. Should probably be on a sliding scale, based on selling price of oil and gas. Increasing royalities on existing oil and gas is not a fair plan. |
| RRE0103 |
My message is plain and simple: I would just like to encourage the Government to truly listen to and take into consideration all of the facts that are being presented on the Royalty issue. This is not a popularity contest and I am concerned the Government will respond to the majority of an uninformed public who are crying out that they're being ripped off, that the Government needs to take immediate action to remedy the "outrageous" selfish action of the oil industry. It is incredibly dangerous to make decisions based on emotions rather than facts. |
| RRE0104 |
What I would like to know is why doesn’t anyone address the Government’s obvious gross ineptness at managing money. If our government did spend money on the wrong things, like sending MLA’s to Vegas, perhaps we could build hospitals and roads with the money that we have instead of asking the Oil Companies to fund what the government should be responsible for. And, by increasing the taxes of the oil companies is the gov’t planning on lowering taxes for the average Albertan, I doubt it. So, who exactly benefits from the “fair share” program? The government that is who. So [expletive] MLA’s and other gov’t officials can continue to spend money frivolously on things like private jets to take them on trips that have no benefit to the people of this province. Nobody is actually thinking of the average Albertan, the gov’t is fuelled by greed. Argh, the government [expletive] me off!!!!! |
| RRE0105 |
In my opinion, the government needs to increase the royalty rates so that ALL Albertans get their fair share of the revenue that is generated from our natural resources. I realize that it costs money to get these resources out of the ground, but the oil/gas companies have been recording huge profits for many years; on the backs of Albertans. If increasing royalty rates slows the rate at which companies extract the oil and gas, so be it. I don't think we want to "gouge" these companies but they have had it VERY GOOD for a long time. It is time we reclaimed the resource revenue for the betterment of our province and not just corporations. I wholely support increasing the royalties. |
| RRE0106 |
Hello, I am writing to express my concern over the recently announced recommendations regarding the royalty program in the province. I do work for an oil and gas company. But the company I work for will continue to thrive. It is my concern for the alberta economy that has me worried. The result of the recommended royalty review will be an overall cut in capital dollars spent in Alberta as resources will no longer be economical to explore for. The result of that will be less money spent on community programs, corportate sponsorships, and overall less money spent in smaller communities in hotels, restaurants and the like. It won't be the big companies that hurt as a result of this. It will be the individual albertan who is hurt as a result of the overall slowdown in the alberta economy. There will be less jobs, less opportunity, and less quality of life. I agree that changes need to be made, but I'm hoping that they can be more moderate and mutually beneficial. Albertans rely on oil and gas and I would hate to see a serious fallout. Thankyou for your time and consideration. Sincerely, [Information Removed] |
| RRE0107 |
To Whom it May Concern: I am proposing a progressive royalty regime that will result in bigger royalty when an oil sands project is more profitable as a result of higher oil prices, operational excellence or technology step change. The concept is to set a progressive net royalty rate as a function of profitability. I define profitability as the ratio of cumulative revenue to cumulative costs, called RCR. When RCR is < 1, gross royalty rate (GRR) of 1% on gross revenue applies. When RCR is greater than 1, the royalty is the greater of GRR on gross revenue or net royalty rate (NRR) on net revenue. NRR equals 25% at RCR < 1.25, or 30% at RCR < 1.5, or 35% at RCR < 1.75, or 40% at RCR < 2, or 45% at RCR >2. My rough estimate is that Alberta will take in 24% more royalty discounted at long term bond rate. And the increases occur shortly after payout. The advantages of this progress scheme are many: one, it is open ended at the high end. As a result we do have to carry out royalty review every 5 years. Two, it improves the existing regime which does not allow higher NRR when the project is more profitable. Third, it does not have the deficiencies as Alberta Royalty Review Panel's recommended OSST or fixed NRR. If you are interested, I could send you my spread sheet for an in situ case and I will be more than pleased to discuss it with you. [Information Removed] |
| RRE0108 |
if you go through with your plains to bleed the oil companys dry I really hope you enjoy your time in the postion you hold now because I really think that it will be only one term cause no one will want to leave the unemloyment line to vote for you |
| RRE0109 |
Mr. Stelmach should go ahead and approve the commisions recomendations fully. Alberta is booming and raising royalties should put the brakes on in a major way. Too many people have jobs, too many people have way too much disposible income, too many people are benefiting from the Alberta advantage. It only makes sense to squash this boom before the oil and gas companies destroy the world. Won't someone think of the children. |
| RRE0110 |
30,000 jobs could be lost, this alone would be a Provincial disaster!! Keep our oilfield!! Don't raise the Royalties !!!!!!!!!!!!!!!!!!!!!!!!!! Or you will raise the unemployment rate and what have we gained in the long run???????????????????????? |
| RRE0111 |
As an geologist working in the Alberta Basin for almost 30 years, I cannot see the logic in upsetting the current investment environment in our oil industry. Public opinion is always against the industry, but we all know how unsophisticated the general public is about the industry. The general public has always seen the industry as a cash cow, but fail to understand the risks in oil and gas exploration. Investment in oil and gas exploration can be very risky and I belive the general public has little appreciation for this fact. I do think the oil sands royalties offered were a bit generous as demonstrated by the 'gold rush' of campanies from around the world that came and bought the land. However, the conventional industry is like an old worn out car that we keep trying to get more miles out of. If you put undue expenses into this asset, the car, or the industry will head to the scrap heap. The most important message to offer is to recount a conversation last week with a US investor. I run a private oil company that is invested only in Saskatchewan with efforts in oil and gas exploration We travelled to [Information Removed] to visit an investor to seek support for equity capital that we are raisning to support futurtre exploitation. The invstor holds about 140 oil companies as assets with the majority in Canada, including oil sands. In total his fund is approximatley $7 billion . At the beginning of the meeting , he stopped us to confirm that we are only Saskatchewan producers. If we had been an ALberta producer, he warned us that he would have likely declined participating as a shareholder. All went well and he commited funds. I hopew this is a warning to those that think they can mess with the conventional industry with no severe consequences. [Information Removed] [Information Removed] |
| RRE0112 |
This will negatively impact our revenues from working interests on [Information Removed]properties. Additionally, if implemented, increased royalties will negatively affect my company's growth prospects. Ultimately, the royalty increases you propose will affect my earnings and the lifestyle of my family. Alberta is extremely expensive to live and do business in. I do NOT support any increases to Alberta [Information Removed]royalties at this time. |
| RRE0113 |
I would support an increase in government royalties, provided that the increase in revenue is passed on in tax cuts. |
| RRE0114 |
I think this is a horrible idea and it will chase away a lot of business for the province . Why after all these years would you do this ? Canada = tax , tax ,tax |
| RRE0115 |
we should leave the royalty rates as is. If you change them, I will vote Liberal for the first time in my life |
| RRE0116 |
Hello I fully support the findings and recommendations of the Royalty Review panel. I look forward to their adoption in full by the government. Soon. I am worried that the government may cave in to the predictable pressure tactics of foreign companies, who are opposed to Albertans receive a fair return on provincially owned resources. These are the companies that have been reaping windfall profts at our exepnse for years now. Thank you [Information Removed] |
| RRE0117 |
Dear Alberta Government, I will admit that the royalty review for many Albertans is a grey topic, even for myself. I believe in many regards it has recieved unfair opposition. Upon hearing the panel's suggestions I immediately reflected on the outcome of the NEP imposed on Alberta by the liberal government of the 80s. Perhaps the two are not similar at all but in that they will draw substantial money from the producers and employers of Alberta. I believe NEP cost Alberta 100 billion dollars while with this royalty I heard numbers of 2 billion, the key point with my correlation is more money is being asked from the industry to do business in Alberta. On the flip side I myself am a frustrated Albertan, I am frustrated with the cost of living and believe I will look to outside the province to be able to provide for my family. Why is this ? Honesty those in charge of the industry have gotten richer and the average Albertan has stagnated. How can it be housing is 200% from three years ago and my wage increased maybe 5% in that same time span. This is an indication the wealth is not getting trickled down or distrubuted to Albertans. Perhaps the panels recommendations are necessary and timely to help cool down the Alberta economy before it overheats and takes the workforce with it. We are burned out because our money cannot go as far in this province. The panels recommendations may bring everybody back into prespective by letting Alberta take a much needed breath. This is because the industry would slow down as it absorbs a 2 billion loss to it's bottom line, with oil prices relatively high this is not too much for the government to ask. However when oil prices fall below a certain benchmark we should consider to reduce or make an adjustment of our take upon the industry to keep things going. Sincerely, [Information Removed] |
| RRE0118 |
We have twice the reserves of Abu Dhabi ,yet their 433,000 citizens are worth 17 million each .whats wrong with this picture. It is not your mandate to hold private meetings with multinational oil companies. you and your cabinet represent Alberta Taxpayers,Students,the frail and elderly as well as the generation of children growing up in Alberta now. concerned Father of five |
| RRE0119 |
Coming from [Information Removed], only one year and a half ago, I have taken a lot of risk and sacrificed a lot, in terms of finances and family life, to come to Alberta - a province within which I feel I have made a positive impact in terms of providing taxable income, spending power, and community well-being since my arrival. I also recently purchased a house in Calgary which, while I am grateful to have been given the opportunity to get into the Calgary housing market, I also feel I paid a high price due to the "booming economy". As a person who has put a lot on the line for Alberta, and who has a lot at stake, being a sole breadwinner of my family, the recent findings and recommendations of the Royalty Review Panel concern me. Though I work for a large energy company, I have read as much as I can on both sides of the debate to try and gain an objective opinion on this matter. It is in my opionon that investors will push to have their money in those markets that are most lucrative and less risky. With a royalty plan such as the one that the Panel is proposing, the market in Alberta will become that much less competitive. Labour is expensive here, as well as materials. We need the EnCanas and CNRLs and SUNCOR's to inject their investment dollars within our economy. It will not take much for these invenstment dollars to be dispersed elsewhere outside the province, causing a domino effect that may threaten to pull Alberta into the next recession. As a taxpaying and law-abiding member of Alberta, I cannot afford to lose my job. I also cannot afford to move where the grass is greener anytime soon. Alberta has been good to me, and I feel I have been good to Alberta. This report, I fear will put my employment and, therefore, my family's well-being here into jeopardy. Please temper your decision. A lot rides on your reaction to this report. Thank you |
| RRE0120 |
The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, Ø The Report bases its recommendations on outdated or erroneous costs, and Ø The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today Ø Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and Ø The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta Ø The recommendations will have a substantial negative impact on Alberta and Canada’s economy, Ø The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, Ø The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and Ø Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. |
| RRE0121 |
I'm a lifelong Albertian and PC supporter but watching this royalty debacle unfold is disturbing to say the least. In an effort to get a little extra support you opened a can of worms at the wrong time. In an industry that's success is totally determined by commodity pricing that we have no control over it doesn't make sense to pick the best 3 or 4 years the industry has had in recent memory and relay this into a reason for total tax restructuring. Of course to people outside the industry directly it looks like the oil companies are fat cats because memory is short..............most people only care about the record run the oil companies have had recently but it hasn't always been this way and as history has proven it will get tough again.Do you forget the hard times this industry has had and how it tends to boom than bust. Don't base your royalty decision on data from highs in a market but rather try and keep a long term outlook in mind. With how quick oil & gas prices can change it's best for all Albertians to keep a tax structure which makes more when industry is making more but also takes less when industry is making less. Today's gas industry is already in trouble with current gas prices and your review panals recommendations will completely run a good thing Alberta has going for it. If oil companies don't do well Alberta doesn't do well and if anyone thinks they aren't affected by the oil and gas industry in this province they are on drugs. Explain to them how come Albertians have no PST,no provincial debt, a heritage fund, low taxes & oh yeah maybe show them how much your governments budget has grown in 5 years and where that money has come from.To say Alberta isn't getting it's fair share is joke, evey good payed oil worker has spin offs that ripple through out the economy, you cut these jobs out and forget your increased royalties. Besides decreased royalties from decreased activities you'll have decreased revenue from taxes from corporate to individual........then when the spiral is in full affect you better have a good unemploymed plan in place......Klein made tough decisions at tough times for this province ( privitization, debt repayment etc ) these were not popular decisions at the time and he wasn't making them for quick voter support but rather he had a vision that at the end of day benefited all Albertians. That's why he'll always be admired by most Albertians. Now lets look at Getty, his legacy is a runaway government, no accountability and making alot of decisions that got voter support for the short term ( officially you call them decisions I'll call pay-offs for support ) and the result is not alot of Albertians respected his government and Alberta's economy payed the price. You've only been in office a short time and you have the potential to be a Klein type government, visionary and of long term benefit to Alberta, or a Getty government. If this royalty issue is any reflection of your government I think your legacy will that of Don Getty's and unfortunately all Albertians will suffer. In case you haven't already guessed I'm employed in oil & gas industry but what do you expect I live in Alberta. If you are bent on short term support and least do us all favour for safety sake. Widen highway #1 and repave it so when the exodus back east starts at least the highway will be safe........... |
| RRE0122 |
Please do not destroy the Alberta economy with such a ridiculous increase. This will have a dramatic ripple effect; Thousands will be layed off. Does the Stelmach government really want to be responsible? There are better ways to make your mark. |
| RRE0123 |
I'm really upset about this report and the impact it will have. With a low long term gas price forecast and the huge swing in the exchange rate the upstream gas industry in the Western Canadian Basin is already tenuous. I can't believe all the projects that are going to get cut because this is going to have a dramatic impact on the economics of the gas business. I'm seriously thinking about selling my home in Calgary and keep my resume updated for the inevitable blood letting the industry will see. I feel sorry for all the people who came to Alberta for the boom and the many many people in secondary industries who will suffer very real personal and financial losses/bankruptcies. Is Alberta forgetting what made us successful? The name of the report is ridiculous and presupposes that we aren't receiving "our fair share" and shows the bias inherent in the process. Really shoddy work. |
| RRE0124 |
I have worked in the Oil Patch since 1975. While working for [Information Removed]I experienced the effect the NEP (another tax grab by government) had on Albertans. In this case the Federal Government thought they were doing the right thing for Canada with little regard for Albertans and the effect was devastating on the Oil Patch. I was laid off along with tens of thousands of oil workers. I became a contractor like tens of thousands of ex-oil company employees, as the oil companies adopted a leaner staffing policy. If the oil companies perceive that they will have less oil revenue to work with, guess who goes first the contractors like myself. Please consider the mix of employees you are about to have a negative effect on and also consider that many of us are 60 years old and already finding it challenging to find the next contract. I have “always voted conservative” but having second thoughts. Respectfully, [Information Removed] |
| RRE0125 |
The Government of Alberta needs to accept and implement all of the recommendations of the Royalty Review panel. It is time once again to remember that the resources of this province belong to Albertans, not to the oil companies. Yes, we need these oil companies to help us realize the wealth that these resources bring, but the motives of the oil companies are not necessarily in the best interest of Albertans. Under the present oilsands royalty regime, Alberta gets almost nothing until the capital costs and operating costs are recovered. This would appear to mean that oilsands developers can keep paying the higher and higher wages and salaries to workers constructing and operating their plants that a tight labor market demands, since it does not really affect their bottom line. It is easy to build things with other people?s money. Under the present oilsands royalty conditions, where is the incentive for oil companies to be cost efficient? Many other businesses would surely like such a deal. No wonder oil companies are predicting such doom and gloom scenarios. Increased royalties could hurt their bottom line. But why should Albertans care about this? A large profit for the oil companies does not necessarily translate into a fair share for Albertans. Many in the oil industry have said that Albertans will suffer if the royalty structure is changed. They say that there will be an economic slowdown. Will this mean that housing prices will drop, that the rate of inflation will go down, that soaring construction costs will start to ease, that the uncountable number of help wanted signs will disappear? The Government of Alberta should remember that not all Albertans are participating in the present ?boom?. We have a ?Made in Alberta? inflation rate and many people?s salaries are not keeping pace with inflation, so in reality the present boom with its rising costs is actually detrimental to many Albertans. We already have a labor shortage forcing Alberta to import workers from other provinces. There are even discussions about changing immigration rules to bring in foreign workers to satisfy the demand for skilled labor. Adding to the current demand for workers by allowing even more oilsands development and upgrader projects would not really seem to benefit Albertans. Increasing the rate of oilsands development will only serve to add to inflationary pressures. Many municipalities are struggling now with infrastructure deficits and the costs to overcome these keep rising. Fort McMurray is a good place to observe firsthand the effect of uncontrolled oilsands development. It would seem logical that a city so close to the hub of activity should derive great benefit from increased development. However, when the mayor of that city says that it is time to put a hold on such development, it is clear that something is wrong. Obviously there is a downside to the current pace of development. Why not slow things down a bit? What is the hurry? The oilsands have been there for millions of years and are going nowhere. Slow the pace so that Albertans can enjoy a sustained period of strong, controllable growth. This could move the Alberta economy away from its historic boom and bust cycles. A slower rate would allow time to train people in the many trades and disciplines that the industry requires. This means that we would be training Albertans to work and live and make their homes in Alberta. We could avoid having a transient workforce that would leave once the inevitable bust occurs. A slower rate of development would allow municipalities the time to put in place the infrastructure necessary for an increased population, as well as work on the infrastructure deficit incurred through the years of neglect caused by debt reduction. A slower rate of development would allow time to investigate other methods for oil extraction, to study the effect of increased oilsands activity on our water supply, time to study what to do with the toxic lakes produced from oilsands extraction. A slower rate of development would allow time to discover ways to diversify our economy so that we can continue to prosper once the oil is gone. A slower rate of development would therefore allow more Albertans to realize greater benefit from all our non- renewable resources. The oil companies say that if the royalty structure is changed they will reduce their investment in Alberta and go elsewhere. I would ask those same companies where they would go. To Venezuela? the Middle East? Russia? the United States? Norway? Alberta is a safe and stable place to do business. The oil companies should be thankful to be in Alberta. There is really no risk in ?discovery? with the oilsands. We know where they are. Yes development costs are high, and rising. However, a large part of the reason for rising costs is the uncontrolled pace of development. Oil companies say that the price of oil is too unpredictable, so we must leave the royalties as they are now. Do they mean that there is too great a risk that oil prices will fall? Does anyone in the Government really expect to see $25/bbl oil again? When so many companies are so interested in getting a piece of the action in the oilsands, one wonders about the reason for this. Is it because these companies all want to help generate more income for Albertans? Hardly likely. These companies want to invest in the oilsands because it is such a good deal for them. They likely expect that the present royalty and tax format will not last forever and they want to get in now. It is no surprise that we have heard such an outcry from the oil industry. However, such dire predictions of an economic downturn coming from the very ones whose bottom lines may be affected seems rather suspect. Remember always that their motivations for profit are oriented to their shareholders, not to the people of Alberta. We, as Albertans, need to take the long view regarding oilsands development as well as conventional oil and gas development. This view needs to be longer than the political lifetime of current MLAs. Albertans will still be here after the oil industry leaves. Our goal is not to fill the coffers of oil companies. We need to realize a long term, sustainable income from these non-renewable resources, both in terms of royalty and tax income as well as jobs. The Government of Alberta of the past established a Heritage Trust Fund. We need to keep contributing to this fund so that there will be something to sustain Albertans when the oil is gone. We can contribute more if we increase our take from our own resources. I do not expect that Albertans will receive much help from oil companies once they leave. We need to be able to look after ourselves. We can do this if we plan for it now. It is not possible to discuss the royalty review without mentioning some of the findings of the recent Auditor General?s report. Two things immediately come to mind. One is the fact that departments in your own government have quietly investigated the possibility of increasing royalty rates and found that this was possible without hobbling the oil industry. However these findings have been actively ignored by senior people. So the new royalty review in effect confirms what you already know. Why, then, is there any need to discuss whether or not to accept the findings of the Panel? Secondly, the other major finding was that your government does not have an accurate way to calculate if Albertans, the owners of this non-renewable resource, are even receiving the proper amount of royalties they should receive under the present royalty formula. This means Albertans have been receiving even less than their fair share for years. Albertans have paid and are still paying a high price for the debt reductions of recent years. We do not want to hear that there is ?no more money? when schools remain underfunded, municipalities still have large infrastructure deficits, social programs are underfunded and healthcare is struggling. If the Government of Alberta does not start to slow the pace of oilsands development and does not accept the recommendations of its own Royalty Review Panel, more and more Albertans will be left behind. You have been given a way to ensure the long term success of this province. It is time to accept the recommendations of the Royalty Review Panel and stand firm. It is time to ensure that Albertans receive their fair share. Mr Premier it is time to touch the break! |
| RRE0126 |
Why would you start with such a high number? Wouldn't it make more sense to start low and work you way up over a number of years? Or just keep you're fingers out all together! Ralph got this province out of debt without having to raise royalties rediculously. What are you going to do when all of these Albertans are on welfare or EI? Or maybe you didn't think about that. I am a small buiseness owner in the oil and gas industry and have already felt the affects of you're plan without it even taking place yet. I really think that there is a better option than hurting all of these hard working people, and having them take our well deserved money elsewhere. These big companies will take thier buiseness elsewhere and that is pretty scary to me! |
| RRE0127 |
For the sake of all Albertans, do not follow the Royalty Review Panel's flawed recommendations. Assign the ministry to work with CAPP to evolve a suitable royalty increase which will not stifle industry investment and cause the loss of thousands of jobs. Also, other industries are watching what the new Premier will do and will adjust their investment plans accordingly, probably resulting in lack of new job creation that we'll never know about. |
| RRE0128 |
Either way the decision goes I see less money in the hands of Albertans and more money in the hands of 'Alberta'. What is Alberta going to do with it that Albertans couldn't do better? |
| RRE0129 |
The few who own companies or can afford signifigant holdings in oil stocks are getting too much when the resources supposidly belong to the people as a whole. A higher royalty rate is indeed in order. The profits of oil companies clearly show they can afford to profit a wee bit less and still function quite well. I applaud the premier Stelmach for doing what the previous two refused to do for Albertans. [Information Removed] |
| RRE0130 |
I am not in favor at all of increassing royalties the full 20% as recommended by the panel. I think the consequences of that would as bad as the N.E.P. in the late 1970s. We are already the richest Province in Canada, so why do we think we need so much more in our provincial account. If we manage our royalties better now, we can insure the future generations of Albertans a secure lifestyle. How would we feel if the Govt. would suddenly raise our taxes by 20%,because others felt that we were making too much money. I think that if our royalties are that much lower, then we should slowly increase them over a number of years. This would give the oil companies time to adjust, and it would not be such a hit all at once. |
| RRE0131 |
If implemented, the Royalty Report will cost jobs. Make no mistake, there will be layoffs in head office and every corner of the Province. How does it make sense to put people out of work? |
| RRE0132 |
Government and indusrty are both right and both wrong on this issue which leads me to suggest the issue can only be resolved through an appropriate compromise. After reading all available material I could get my hands on, including government and industry produced reports, it is obvious there is too much media generated polarity which is artificially skewing perceived public opinion. The government sponsored royalty review report seems to utilize other jurisdictional comparisons for justifying its recommendations, without a comprehensive anaylsis of comparible planning, capital and operational costs over the long term to the producers. Industry will always find ways through the balance sheet to avoid being perceived as being profitable on the oil sands, and thus create the hype they have unreasonable costs. Industry has also orchestrated a well thought out media campaign of having the various companies announce their intentions to reduce investment etc. on a progressively spaced out basis , which keeps the issue top of mind in the media every week. The Alberta Government conversely, has a very poorly orchestrated public media campaign, and appears to be on the defensive. As Albertans, we are asking our government to provide "Good Governance" which enhances the long term sustainability of the province and our residents quality of life. Royalty changes need to be phased in, and recognize their impact on the multitude of smaller producers who contribute significanlty to the economies of "small town" Alberta. On the other side, the multinationals and large Canadian producers cannot operate soley with an economic mandate to extract profit and move on. They must accept responsibility for their role in moulding Alberta's social, economic and envrionmental climate, and make a proactive contribution to its enhancement through the royalites they pay. Some slow down of investment in this overheated economy would give everyone some breathing room, but we cannot afford to put in a royalty regime that in effect "puts the brakes on and creates a bubble burst effect on the provincal economy. |
| RRE0133 |
DO NOT RAISE RATES THEY SHOULD BE LOWERED |
| RRE0134 |
Don't kill our self. Oil companies will have to cut their projects and people, all the related service companies will be facing the same pressure, and therefore, the indirectly related business, retails, real estates, people will move away from Alberta, …the economy in this province will be facing a recession. No body would could benefit from this proposal |
| RRE0135 |
As far as I'm concerned, the new royalties proposed by the review let the energy sector off light. I live in Calgary, and I hae a hard time feeling sorry for businesses when their employees drive around in Ferraris and Porsches, buy $500K houses just to knock them down and build $2mill ones, and have so much money they don't know what to do with it (a not-verbatim quote from one of 2 engineers I overheard at a ski resort last season, who went on to explain he had just bought a $385K condo in Canmore to "use some of it up"). This industry might be responsible for Alberta's riches, but they're also responsible for pollution, water waste, and the divisiveness between the haves and have-nots in Calgary (where I live). They'll have a hard time convincing me they can't afford it. |
| RRE0136 |
Mr Stelmach, we need to increase the royalties now. I believe that the oil companies will not pull out of Alberta. Where are they going to go? We have the oil that they & the rest of the world want. With oil at such a high price, & I doubt we'll ever really see it very low again, they will continue to invest here, guaranteed! However, even if they do pull back, highly doubtful but perhaps just for show, then that wouldn't be a bad thing either. There is too much going on here anyways, so a bit of a break would be a relief. I don't work in the oilpatch, so I don't have the benefit of high wages to combat the incredible inflation brought on by the oil companies. All Albertans who want to work have a job, so who exactly are we helping. |
| RRE0137 |
Re: Proposed Alberta Royalty Regime Changes Dear Sir or Madam: As an Albertan, I am opposed to the changes to Alberta’s Oil and Gas Royalty structure proposed by the review panel. It is my opinion that the proposed changes will lead to job losses, reduced investment in Alberta and development of oil and gas resources. These changes will not only impact the oil and gas sector, but the entire economy of Alberta. While this is all being done to ensure Albertan’s receive their fair share and increase royalty revenues, I believe it will result in a much smaller oil and gas industry with significantly reduced activity, resulting in an overall reduction in the total amount of royalties collected. Therefore, the taxpayer and the government stand to lose, not gain, if the panel’s proposals are implemented. I urge you to consider the evidence provided by the oil and gas industry in response to the panel’s proposals in making your final decision on this matter. The industry and the investment community has pointed out that the costs used in the panel’s calculations are outdated and not representative of today’s cost of doing business. Also, Alberta is being compared to other regions of the world where pool sizes, resource types, risks and operating costs are different so the comparison is invalid. The impact of these proposed changes on the entire economy of Alberta must be considered. It is important to the future of Alberta to maintain investment in the province and continue to develop our resources, not increase royalties to the point where returns on investment become unattractive and companies and investors take their money elsewhere. Increased royalties will affect every Albertan, not just the big oil and gas companies. It will cause a ripple effect leading to reduced spending and investment throughout the province, job losses, property devaluation, and an overall economic downturn, reducing or eliminating the “Alberta Advantage” that we all benefit from. Alberta’s economy is driven by energy related industries and we should not underestimate the affect that a downturn in this sector will have on Alberta’s future. Sincerely, [Information Removed] |
| RRE0138 |
This report is inaccurate and completely out of touch with reality. It is based on the wrong currency exchange, has the wrong costs and completely ignores that the majority of people and money made are from small and medium gas producers not major companies in the oil sands. This is a formula for disaster....What a joke..It would be funny except now I lived through the NEP and barely survived and now you guys are going to finish me off.........I would never have believed a Conservative government could be so socialist to destroy an industry and business.....You guys make me sick..[Information Removed] |
| RRE0139 |
Please do not make the same mistakes that were made in the early 80's. This is destined to fail and the Giant Oil Companies will ensure it happens. |
| RRE0140 |
Dear Sir/Madam, my grandfather used to say "if it ain't broke - don't fix it". I fail to understand what is wrong in our great Province. The economy is booming, unemployment is at an all time low and people are prospering. We have no sales tax and the province is debt free! We are the envy of every province in Canada (and beyond). I fear that if the Royalty Review Panel Report is implemented without change it will lead to the erosion of the Alberta Advantage. I encourage you to delay your decision and consult futher with the business leaders to make sure any changes will not be to the detriment of all Albertans. Thank you, [Information Removed] |
| RRE0141 |
I am concerned that the government in the province I have always called home is set to begin another money grab. Why is this happening? Do we in Alberta need to add even more money to the budget surplus announced every year? Do we trust this government to invest a burgeoning surplus carefully? I am afraid that I have very little confidence or faith in politicians. I say, if our elected representatives want to get their hands on more money they ought to invest in oil companies - buy stock the way some of us do, for crying out loud! Instead, they're looking for a way to bite off the hand that feeds them. |
| RRE0142 |
I am employed with a major Oil and Gas Company in Alberta. I have been employed with this company for seven years and have seen the prosperity and economic growth that this company and others like it bring to the province, more specifically the area of Grande Prairie. I beleive that oil and gas companies should pay a royalty, but not in the amount of 20% to 90% as I have heard in recent reports. The company that I am employed with has already publicly announced that they will not spend the "Capital Dollars" in Alberta if there is a 20% royalty hike. I fully beleive that this money will go to our neighbouring province of BC. If this is so we will see less of our local resources and trades needed. I beleive that the royalty hike will have a severly negative affect on our local economy. Hotels, Gas Stations, Restaurants, Local Retailers, Fabrication, and all Oil and Gas Servicing companies will feel the burden. I beleive that the so called benefits of a Royalty Hike will quickly lose there appeal. |
| RRE0143 |
I have been sitting on the fence of response for a while, on this issue, however I now feel that I need to say my piece. Alberta is a great province to live and work in and has been one that has created an environment that is attractive to invest and grow in. I feel that all Albertans should and do benifit from the oil and gas activity. This is a great time for my children to be coming out of high school or post secondary school, the opportunities abound complete with the problem of deciding what they would like to pursue for a career. I graduated in 1981 and came into the workforce just trying to find ANYTHING in the midst of layoffs and business failures. I feel that a royalty increase at this time, as the industry is lagging is at best, poor timing. I don't know of anyone person or business how can survive a 20% tax hike at this time. I am asking for reason to prevail and decisions be made that would continue to foster and environment of healthy business that benifits all Albertans in the long and short term. Please do not at this time raise the royalties. |
| RRE0144 |
The royalty review which has been undertaken has much at stake for the future of the province. My advice is to not bank your decision on the mass majority of the population who do not have the facts and experience to have an educated opinion on our oil and gas developments. You have little to gain and much to loose by introducing changes that may be "popular" at the time to the general population but will be detrimental to the province for years to come. This province will be a much different place if the oil and gas industry does not continue to have confidence or ability to operate agressively in this province. None of these differences will make Alberta a better place. I for one have no interest in tourism being our biggest revenue generator. A very concerned conservative supporter. [Information Removed] |
| RRE0145 |
I strongly advise the Alberta Government to accept the recommendations outlined in the royalty review report. Albertans own the resources, which once gone, are gone forever. To sustain the standard of living we have become accustomed to I believe preventative action must be taken. Oil companies with their billion dollar surpluses will not stop investing. If [Information Removed] decides to pull back in some of their investments that is their decision. Some other company would be happy to take their portion of Albertas resources. Please, think of the people of Alberta when you make your final decision. |
| RRE0146 |
Thank you to the review participants. They have done an outstanding job. They have pointed out deficiencies in our system like having self reporting by the industry with no auditing going on and no information being collected to verify or refute the assertions of industry. This is similar to the self checkouts we see at stores but the difference is that there is someone there watching to ensure that people are paying for what they're takijng out of the store. It seems wrong that Alberta would not be doing that. The other part is that the review panel did a really good job of pointing out that we are the owners of the resource and it is us who are in control or should be in control. We should not be the puppets of industry - nor should we be selling away the future of our children by underpricing their resources and squandering their inheritance. the other part of the report I found interesting was the international comparisons. I wish they had looked at some of the tactics that the oil companies have used in other jurisdictions when talk has turned to getting a fair share. In New Foundland, the premier went toe to toe with the oil companies and won an equity stake, in venezuala as well. In other countries, the companies have had the same predictable scare tactics they've used - I would expect nothing else from them, in the capitalist system, it is incumbent upon the CEOs to maximize profits, if the cost of the inputs goes up profit drops. They're doing their job. As the CEO of alberta, it is incumbent upon the Premier to do the same for Albertans, maximize our returns. This negotiation has to keep that in mind. Mr. Premier, please look after our interst as Albertans and get our fair share - and not what the industry determines to be our fair share. Thanks. |
| RRE0147 |
PLEASE DON"T REPEAT THE 1981 ALL OVER AGAIN !!! THAT IS WHAT IS GOING TO HAPPEN FOR SURE. IT WILL EFFECT EVERYONE !! FROM THE EMPLOYEE AT WALMAT TO CAR DEALERS AND EVENTUALLY THE GOVERNMENT. THIS WILL DEVESTATE ALBERTA AND WE LOVE OUR COUNTRY. |
| RRE0148 |
To the Conservative Party of Alberta- If you again give in to the oil industry I will not fote for you again. They are trying to scare both the government and the citizens of Alberta. They can leave but where will they go that royalties are less? You should institute ALL the increases in the report. Albertans have been ripped off for too long, just look at the state of our crumbling schools which Klein seemed to think we didn't have enough money to fix. Well, we did have enough money if you Conservatives had been good for the province and had received the royalties that are owed to us. You folks have clearly been incompetent and lazy as well. Now is the time to change that image that so many of us have of your government. [Information Removed] |
| RRE0149 |
There should be a floating scale to determine additional revenues. This is especially true considering that even when oil prices are high, gas prices can be low. This way when gas prices are low, say below $7.00 a gigajoule, no additional revenue would be collected. When gas prices are high, the amount collected could be increased. This type of floating scale could also be applied using the price of oil. This way costs could be covered and investment would not decrease as much when the world economy drives prices down. |
| RRE0150 |
The growth has been too rapid and not adequately regulated, I'd rather see the resource left in the ground for the time being rather than give it away and disturb the environment before proper controls in place. I strongly urge the government to impliment the report! The cost to our environment, the enormous amount of natural resources needed to develop the oil sands demand more royalties. If the big oil finds the costs prohibitive then so be it! Extra royalties should go toward developing other alternative energy strategies and ensuring oilsands development proceeds in a sustainable fashion. |
| RRE0151 |
alberta has the 2nd highest per capita economic performance in the world.. why is this not getting enough? |
| RRE0152 |
My personal opinion concerning the Alberta Royalty Review is that they want to make drastic changes to Alberta’s pillar industry that will create negative effects that could and most likely will have a domino affect through everything from the trades in Alberta to International investment firms. I’m a single, geologist working in Calgary who was raised in Saskatchewan. I’m worried I’ll lose my job and then receive a cheque from the Government of Alberta for $500 instead of $400. What does a Government with no debt, plan to do with it’s extra cash; that is really going to be able to benefit Alberta as a whole if everyone who is expected to support and run this industry after the Baby-Boomers have retired lose their jobs and move away. If Alberta takes my job, security, and future I will be forced to leave, and I will not return. All I’m asking is that Alberta reviews this decision careful, and make sure that you are not “shooting yourself in the foot”. |
| RRE0153 |
The Governments report is badly flawed. |
| RRE0154 |
I would hope that Mr Stelmach has surrounded himself with enough bright minds that his announcement will be to leave well enough alone. We live in a great province, of which our economics are driven by big Oil. I do not feel that the recent reports from industry reflect threats, but an overall warning of what is to come if the review panels suggestions are implemented. Be smart, not tough... Waving money in front of the average Albertan will of course draw positive feedback (and votes) but what will your government do when housing and jobs are so negatively affected? I do not work in oil, but I know enough that my business is running because of the wonderful situation this province is in. Lets not blow it. I vote, my family votes and we will take our votes elsewhere if you go down the wrong path and make the panels changes. |
| RRE0155 |
I am against the proposed tax increase as I believe it will have a negative effect on Alberta's "booming" economy. What a lot of people do not realize is that if the oil and gas companies start pulling back on exploration and drilling, it will have a huge ripple effect. If there is no money being made, there will be no money being spent! We (our family)have already put several large purchases on hold until this issue is resolved because of the uncertainty. I urge the Alberta Government to tread carefully. Remember the days of NEP in the 1980's and what happen when that tax grab was put in place. |
| RRE0156 |
It appears that the data used to determine the royalty review panels analysis and outcome are flawed and incorrect. I hope that Premier Stelmach and Cabinet is listening to the industry as well as the panel and will make a decision based on all the facts. It is very clear that should the government go ahead with a panel only decision, the outcome will be detrimental to all Albertans and severly damage a healthy, prosperous industry with wide reaching ramifications to the entire province. |
| RRE0157 |
My husband and other relatives, as well as the communities we live in, are almost 75% or more dependant on oil companies for employment. To see a 20% hike in royalties payable by oil companies is not reasonable, at least not in the short term. If this can be phased in, it would be manageable. But if imposed upon these companies in the fashion suggested in the royalty review will see the economies and lives of the people who live in northeastern Alberta decimated. If I had a business and the government decided to increase my taxes by 20% next year, I would probably close shop and relocated as well. I agree that oil companies make a lot of money off Alberta's natural resources and I agree that they should also compensate Alberta for the right to exploit those resources. But I do not agree that it has to be done in the manner suggested. I also think that this will be a convenient way for lots of oil companies who can't make an honest go of things to shut down and blame someone else rather than laying off employees or facing bankruptcy because of their own foolish investments or lack of industry knowledge. Please consider all of this when you implement the royalty hike. It is not fair to the people in northeastern alberta for the government to destroy its economy and cause massive unemployment subsequent bankruptcies. |
| RRE0158 |
October 1, 2007 Premier Ed Stelmach - premier@gov.ab.ca Fax: 780-427-1349 Dear Premier Stelmach: I am sending this letter as a concerned Albertan who can not help but think the implementation of the recommendations of the royalty review panel will have a negative impact on my financial well being. I can understand that the government may want to control the rate at which the oil sands are being developed and I support that initiative wholeheartedly. I’m sure I share all Albertans’ concerns over the possible impact these developments are having on the environment, not to mention what it has done to the availability and costs of services such as plumbers or electricians throughout the province. However, I am also aware that it has been the conventional oil and gas industry that has fuelled the Alberta economy over the years and that the proposed changes will have a significant impact on that industry. I do not purport myself to be an economist or financial wizard, but common sense tells me that any changes to fiscal policy that will negatively impact an industry will certainly result in a decline in the investments that same industry would consider making in this province. I implore the government to assess the impact of this during its review process and give serious consideration to the consequences of a turndown in the conventional oil and gas industry. As this industry is the engine of the Alberta economy, repercussions will spill into small business, the construction industry, manufacturing and real estate, to name a few. As a home owner, I stand to lose considerable equity in my investment. It is my opinion that this government should not create an environment of fiscal change and uncertainty that will drive away future investment. Alberta’s economy has thrived because it has offered people, industry and business an attractive province in which to establish roots. Please consider carefully and fully all consequences of what is being proposed. Respectfully, ______________________ cc: Alberta Deputy Premier Ron Stevens - ron.stevens@gov.ab.ca Fax: 780-422-6621 |
| RRE0159 |
It surprises me that CEO's like [Information Removed]are making such a big fuss about increased royalties. It sounds like he has taken a once profitable company and turned it into a marginal operation that cannot afford to pay for the resources that it requires to survive. [Information Removed] should therefore resign [Information Removed] position before [Information Removed]can do more damage to the company and its credibility. The oil is owned by the people of Alberta and we are entitled to a reasonable rate of return on our non-renewable resources. Without it, there is little point in developing them. I therefore think that royalty rates should be raised, regardless of the comments of the oil industry, which I feel are both misguided and inane. We have oil and they need it to exist. Thank you for considering my views. Sincerely [Information Removed] |
| RRE0160 |
So much for honesty in government !! Every member who was in caucus under Klein is responsible for this fiasco. All members who were involved should be removed from any ministerial position immediately. You are condoning their actions if you do not, and will confirm that you were aware of what was occuring. |
| RRE0161 |
I very strongly believe the goverment should implent the report recommendations in their entirity. In fact, I believe the report should have recommend larger increases to royalties. I realize that doing this will negatively impact my oil and gas stock portfolio. So be it. This is the right thing to do. I experienced the devastation to our economy in the 80"s on a first hand basis. The fearmongering that it will happen again as a result of a royalty change is unfounded, and that fear as held back Albertans from doing better in the past. It's not warranted now. The most effective argument I have heard against implementing the recommendations is that the goverment is likely to just waste the new revenue anyway. Therefore, i believe it important to couple the implementation with a vision to use new funds to make Alberta a better place for ALL Albertans, to perserve its beauty,and to conserve its future for our children. |
| RRE0162 |
I am concerned that a fixed increase in the royalty rate will have a negative impact on future exploration in Alberta. Considering this seems to be an issue pushed on Alberta by the federal government I would suggest you consider a variable royalty structure based on the price of WCS crude oil. I am totally against the royalty increase but a variable structure would cause significatly less damage to the Alberta economy. The Alberta government is already earning a significant amount of tax from oil companies (40% of revenue), their employees and spin off industries. As large oil companies with head offices in Calgary become more internationally focused (less and less Canadian production) why would they stay located in Calgary (example Haliburton). I am an Alberta boy working for a large internationally focused oil company and I want to continue to be based out of Calgary. Don't think these options aren't already being discussed. Please don't make legislative decisions that will have a negative impact on our economy. [Information Removed] |
| RRE0163 |
Dear Ed ' We support you 100% |
| RRE0164 |
I am definitely in favour of the recommendations of the royalty review and hope they are implemented in whole or part SOON!! I understand that historically the oil industry has threatened to pull out of Alberta in the past when increases were made to royalities. They are like spoiled children stomping their feet because their free candy is being taken away. That is my impression anyway. Why should our royalties not be on par with the rest of the world? I am deeply concerned that we are destroying our province and slowing down a little wouldn't hurt at all. |
| RRE0165 |
Folks, please do a diligent evaluation in real time data and use the necessary consultantcy service available to do this right. Governement's responsibility is to the people /provincial /federal as a total. If foreign ownership is pulling resources from Canada deal with it, Government is debt free as a result of industry and a balance approach needed - Good luck, just get it right |
| RRE0166 |
The Oil companies are getting way too much. We should ask for an equity stake for all the subsidies and freebies these corporations get. Anything less than 10% is a joke. Also, we require fully accountable audited figures freely available to the public. Charging for information and providing dubious information is a violation of our charter rights. |
| RRE0167 |
As an employee of a major oil sands company, I get extremely concerned whenever I see the government imposing additional tax loads and restrictions on oil companies. We have been told that the actual cost to our company will be much greater than the 2 B$ published in the news. We all have bad memories of the infamous NEP program of the 1980's. Don't kill the Golden Goose for political returns by trying to look tough with oil companies. Short term gain will become long term pain. Think carefully, consult with the companies and work an agreeable solution. Thanks. |
| RRE0168 |
I am concerned with the proposed changes to the royalties in Alberta. I have been a long time supporter of the pcs and the party has done an excellent job financially over the last 12 years . However, the oil and gas industry is already currently depressed with the low gas prices. At these current prices it is uneconomic to drill for gas. Increasing the royalties will only increase the slow down in the oil and gas sector. Which in turn will trickle down through the rest of the economy. Although oil prices have risen sharply, they have been more than offset by the increase in the Canadian dollar. I can understand before payout royalties increasing slightly on the oil sands, however not on conventional oil and gas. When you meet in caucus on this matter, I hope the long term economic viability of the oil & gas industry, along with the province, is carefully considered. If the oil and gas companies are doing so well, why are all juniors and trust companies at 52 week lows and struggling to survive? Sincerely, [Information Removed] |
| RRE0169 |
Hello I work in the [Information Removed]part of Alberta oilsands. The oil company web site and other company sites all have the same outlook if the review is brought forward. This province was mainly built from the oil industry with Royalties and taxes. The oil companys also provide thousands of jobs along with economical benifits for the local areas like in donation to the towns new complex for youth programs and sporting events. I have went to both the royalty and oil company web site to get both sides of the story the provincial gov. recieves revenue were other provinces don't recieve as much resource revenue. As there might be some room for an increase a marginal one of 3-5% would ease the oil companys measures to pull out of investments and growth in the province. Which would maintain the current economic benifit for all Alberans and communities. The statistic of 1 in 3 Albertans are directly linked to the oil industry said it Best which is most likely low as there is not one mother/father in this province and other parts of Canada that don't have some relative working in Alberta. Please take this into consideration when making your judgement. |
| RRE0170 |
I would like to see the Royalty review recommendations implemented verbatim. In any news report regarding Alaska and Norway there is mention of a fund set up with significantly more money than Alberta has. I have not come across any news suggesting that Alberta has done better than any other countries/jurisdictions in terms of saving money from oil royalties. In my mind, that places us last. As far as the oil companies suggesting their will be dramatic cutbacks if the royalties are changed, I would expect nothing less. They are planning projects as fast as they can in order to take advantage of the ridiculously low royalty rates. In addition, where else are they going to go? If Alberta presently has the lowest royalty rates where can they get more production with less cost? It also appears that this province is paying dearly for this boom. If it slows down somewhat, it may be good for the province. [Information Removed] |
| RRE0171 |
With the proposed increase in the royalty and tax rates, has the province completed in depth analysis of the impact to the economy? How will the royalty impact capital investment in the province? Has the panel completed a review of the options oil companies have in their portfolio? How much capital investment will move into BC, Sask, NWT, the US and overseas? Will corporations move their head offices out of the province? Once the new rates are implemented, what will happen to the unemployment rate in the province? How will the service (hotels, restaurants etc) industry be impacted as a result of a downturn? How much revenue will be lost due to a lower tax base resulting from a higher unemployment rate? Will we still have the Alberta Advantage? If you believe the answer to be yes, please clarify. The objective seems to focus on reducing activity levels in the province and slowing the economy, please clarify the objective. How will pensioners be impacted by a reduction in oil and gas company enterprise values and in turn their portfolios? They already took a 20% hit in the income trust sector? What will be the impact to property values? Will banks be foreclosing like they did in 1980? This looks to me like the NEP all over again (government influencing the outcome of a market). What assurance can you give me I will not be out of work for a year [Information Removed]was in the early 80's. It took us two decades to get our head above water after the NEP? It seems to me, the study is focused on current revenues by the industry where the rewards are proportional to historical investments they have made and not the direction they are taking in the future. Thank you in advance for addressing my questions. Regards, [Information Removed] |
| RRE0172 |
You are making the BIGGEST mistake of your life and poltical career. The negative effects of this needless meddling will be felt for a long time. |
| RRE0173 |
Go for it. Tax them to the fullest!!!! |
| RRE0174 |
My partner and I have read the royalty review report. I lived in Ft. Mac for eight years [Information Removed] through boom and bust and have many friends who work and worked for Suncor and Syncrude, [Information Removed]. My partner and I FULLY SUPPORT the review. We strongly agree that royalties should increase significantly in the oil industry. We also know that gas royalties are a more complex issue, but feel that a change in royalties is very long overdue. |
| RRE0175 |
NEP ( National Energy Program) Alberta style. Here we go again, 1981 revisited except that his time our fellow Albertans are doing it to us!!! Or was this report prepared by some bureuacrat car people in Ontario? I think that a small royality increase may be in order however the reason that the rig count is down in Westen canada is because the sagging price of natural gas. Maybe you should introduce a staggered royality. Such as: Do an incrememtal increase should the price of Nat gas reach a benchmark of $8.00 and then $10. 00 and so on. Or go ahead and impliment the changes and I will retire early and cruise America in my motorhome which is not such a bad idea. Thanks for your time and ear and good luck with your quandry. I would certainly not want to be responsible for putting thousands of Albertans out of work [Information Removed] |
| RRE0176 |
I honestly feel that the oil and gas companies are showing their greed loud and clear by trying to conserve an unfair share of the pie. This royalty recommendation is conservative and needs to be followed through on. Remember, oil is a limited resource, there are plenty of other companies that would step up if others backed down. [Information Removed] |
| RRE0177 |
It is essential that the Alberta government adopt the recommendations of the panel. The government is not even meeting its current goals for its share of royalties. The resources belong to Albertans and should benefit Albertans, not just the oil and gas companies. The fact that Alberta Energy doesn't keep accurate records of royalties is astounding and demonstrates the lack of accountability and credibility of the conservative government. |
| RRE0178 |
Please review the COADC letter |
| RRE0179 |
I am a bit confused as to why the government would even consider changing royalty structure when we have one of the most robust economies in Canada and N. America. With the bonus payments, royalties, taxes personal income taxes why risk changing this. At the very least have a referrundum and let the people decide. Better yet, do not change a thing. |
| RRE0180 |
I do not think the government should implement the new royalties as recommended by the Royalty Review Panel. The current weak natural gas price makes it is difficult to justify drilling for natural gas in western Canada at this time. I was dismayed to see that the new royalty scheme would not only discontinue the previous credits for deep gas drilling but would also increase the royalty take on what is already a marginal venture. The Government of Alberta should think twice before introducing the new royalty scheme as it could very well backfire and result in severe job losses within the oil and gas industry. The last thing that the natural gas industry needs right now is a royalty rate hike. From what I have read it appears that the Royalty Review Panel has little knowledge of the Western Canadian oil and gas industry. The committee has not only low-balled the costs required to drill and produce natural gas but has also failed to consider the amount of risk capital required to bring commercial quantities of gas to market. The report has lead the general public into thinking that gas producers are making windfall profits from gas production within Alberta when in fact the industry is only marginally profitable at this time. If royalties need to be changed there should be further consultation between producers and the government to decide on what a fair royalty increase should be. Such an important decision should not be left to the likes of the Royalty Review Panel. |
| RRE0181 |
I believe that as an Albertan it is about time we received more money in the form of royalties from oil companies. Their profits have been increasing and for years we have had the same percentage for royalties. We should not worry about a cut in production because our oil will not disappear it will remain the property of Albertans. I believe that we should go for the full 20%. An increase in royalties will increase the amount of money we have to spend on the province's infrastructure. When we were a much poorer province the roads were always well maintained, university students were given grants for education and schools were in good condition. Today our roads all over the province are in poor condition. Our cities do not have enough money to maintain the roads, bridges, etc. Edmonton is not getting it's share of support from the government. Teachers are entitled to a raise based on the cost of living. Living in Alberta is expensive why are teachers not given a fair raise in this province? Money from the increase in royalties could pay for more money for education. Albertans should not be paying for their own health care. Health care needs to be covered by the government. An increase in royalties could help pay for health care. Poorer provinces manage to cover health care. Why not Alberta? [Information Removed] I want them to have a real Alberta advantage not a slogan that means nothing! This is a chance for the Conservative government to make a real difference to all Albertans. If you do not sieze this opportunity I will not be voting for the conservative party in the next election nor will any member of my family! It is the way that we can express our displeasure over the government refusing to bow down to the oil companies. The oil belongs to Albertans not oil companies! |
| RRE0182 |
Accept and act on all of [Information Removed]recommendations. Alberta is well below world standards on this issue. Double royalties/ taxes immediately by 75%, and phase in the other 25% over the next five years. Immediately GIVE THIS MONEY BACK to all Albertans who have lived here longer than five years- residency requirement . Sincerely, [Information Removed] |
| RRE0183 |
We do understand the increase in Royalty tax is overdue, however does it have to happen the same year the federal taxes changed on the income trust companies. This is going to be a double whammy on helping bring growth in the natural gas industry to a halt. If we are that concerned about the money we are not collecting, then why do Farmers and Ranchers that lease crown land get all the royalties for oil and gas services on this land. The hundreds of millions of dollars passed up by the government in this situation could go a long ways in our education and medical systems. Any arguments can be compared to the strong agriculture industry in Saskatchewan where all royalties on government land go to the government to help tax payers, not the individual farmer or rancher patching fences. And yes, I am an Albertan rancher! |
| RRE0184 |
Dear Premier Stelmach I am writing to express my serious concerns regarding the outcomes, should your government decide to implement the proposed royalty changes. I am now retired, having spent over 30 years in the supply and services side of the petroleum industry. I scanned, but did not read in detail, the report of the Royalty Review Committee. I did not read it in detail because, even though I probably have an above average understanding of how the industry works (I am also a P.Eng), I feel poorly equipped to assess the impact of this report's proposals on the petroleum industry, in order to provide a reasoned opinion. I am therefore dependent on the comments that I have been able to glean from the media and from organizations such as CAPP in order to form my views. Obviously the petroleum industry has a vested interest in protecting the status quo on royalties because their plans and projects have been built around that scenario. I am convinced that because the industry has the expertise to evaluate the proposals which the average person "on the street" does not, that the industry's views on the Committee's report's shortcomimgs have to be taken seriously by your government. Your Government's Department of Energy should also weigh in with its view of the proposal because I believe they have the expertise to make a reasonable assessment of the industry's concerns. You have said publically that your government will "do the right thing" for all Albertan's in regard to how or if these recommendations are implemented. My observation is that the right thing would be a course of action that does not impair the industry's ability to continue investing in Alberta, and thus provide the jobs needed by the "average guy on the street". The "average guy" may be in favor of increasing royalty income, but like me, probably has limited ability to properly assess all of the outcomes of the Committee's report. Accordingly, I would urge you to consider a compromise position where existing arrangements are "grandfathered" so that your Government is not seen to be changing the rules in mid-stream (as Jim Flaherty did in the case of Royalty Trusts for which I believe his Government will pay a price in the next federal election), and to base any incremental royalties deemed appropriate, on increased commodity prices net of increased finding, development and production costs. This type of compromise would allow the industry to assess whether it wants to invest in new projects and still protect the existing level of activity for the benefit of all Albertans. Yours truly [Information Removed] |
| RRE0185 |
Here we go again.I have been a geologist for almost thirty years and have lived through the NEP and $10.00 oil. I remember the secruity guard ushering out a terminated employee carrying their cardboard box. Looks like those times are coming back Call this an Alberta NEP program. The panel's royalty program is seriously flawed. They took so long to come up with their bogus numbers that they missed the boat as to the real events going on under their noses. Do any of this esteemed panal members have any idea of how the oil industry really works? Just ask the service companies what two years of week gas prices have done to their employees. I know that the reserves I find in the wells I propose has gone down year after year. What I could get drilled back in the 1980s when gas was at 98 cents/mcf only made the economic cut-off because reserves were larger and costs lower. Of the nineteen wells I had hoped to drill this year, only five made the hurdle. Thats roughly 220 days of less rig time that I will use. Not to mention the surveyors, construction crews and service rigs that I would use if gas prices were higher. Now add on these ill fated royalty increases and my five wells goes down to two or less.I was so enjoying some relative stability in this business after enduring the boom and bust [Expletive] for most of my carreer.This time I'm I will not stick around and watch the profession that I loved get hammered again. If the PC government impliments these new ratest the oil industry will stumble and falter, and I believe that they will loose the next election. There needs to some understanding of the costs to hunt for ever diminishing gas and oil resources. Ask the panel members to check on the average initial gas rate of a new Alberta well. Give them pencils so that they can add the well and completion cosrs, oh yeah, we need a pipeline to get the gas to market. Add on processing fees, tax and now new royalty rates. I have been doing this for all my carreer, not just for the last few months like the members of the royalty panel. If all you look at is the outcome and not the factors that creates the outcome the you are only seeing one side of the equation. Good luck Alberta. You will need it if the new measures are brought in. |
| RRE0186 |
i am a owner operater for [Information Removed], i work out of hinton, i have a family to suport, if alberta charges more royalty and the oilfield slows down it will afect me and thousands more , because the payments still com in the mail every month,and if the paychecks are smaler and smaler every month the payments dont get made , im shure you can understand that. please dont be greedy,think about the small guy. thank you. |
| RRE0187 |
before you act on this please take an overall look at the entire industry. What this action will mean to the average employee in the oil industry. It looks like to me that thousands of jobs will be lost and that the oil industry will be forced into a further slow down especially in the drilling end. Take a look at all of the effort and expense it takes to turn a profit and the extreme chances that are taken when doing any kind of exploration and eventually completion. I think further reviews have to be taken with greater industry input, do not make it worse. |
| RRE0188 |
I believe the royalty review will be economic suicide to the province. I'm not sure which people had said they would like an investigation into royalties and ensuring that people get their fair share. Personally, on behalf of my family - I would rather my husband have a job that we can live in our house and keep our children in school than to be laid off and on welfare in return giving our house and everything we own back to the bank because their will be no place to get a job! That is more important that the economy stay where it is than to be going after oil royalties that could prospectively kill our economy if pushed to far. thank you. [Information Removed] |
| RRE0189 |
A call for Albertans to get their "fair share" sounds very reasonable. What seems to have been forgotten is that billions of dollars have been invested based on promises made by the very same government/party that is now proposing to change the rules. If a party doesn't stand by it's word it doesn't have the moral character to be trusted in leadership, and should be voted out. Any changes made should only be on a go-forward basis, and only include lands which are still currently crown lands; that is, have not yet been leased to a company for exploration/production. The economic impact of any changes will then be immediately obvious, as bids for leasing new lands will very likely be significantly lower than has been the case to date. |
| RRE0190 |
If big company do cut backs and albertans lose jobs have you really gained anything? except that more people are out of work ,dont change somthing that is not broken lets keep alberta ecomony going. [Information Removed] |
| RRE0191 |
THIS IS GOING TO CRIPPLE US IF IMPLEMENTED TO THE FULLEST EXTENT!!!!! |
| RRE0192 |
I strongly support the call for increased royalties to the levels recommended in the Royalty Review. It will benefit the economy of Alberta. Even if there is a slight slow down in activities, the inflation rate may be slowed a little. It might also let the job shortage catch up. Petroleum is still going to be required over many more years. The price of oil and gase does not seem to be affect by the possibility of the cost of royalities increasing. Albertans will be able to share more of the increased wealth. Some petroluem companies may be making postures about redirecting their investments somewhere else, but someone will invest in the petroleum field. The Government of Alberta should meet the call for higher royalties to the levels called for in the Royality Review Final Report. |
| RRE0193 |
The royalty review report looks very comprehensive, and balanced. I would encourage the government to accept the recommendations. In the last few years Newfoundlands premier stood firm on this type of issue - and Newfoundland is now better off because of his stand. |
| RRE0194 |
Dear Alberta Government, For one moment can you stop and think to yourself why would I attempt to stop the momentum of the Alberta economy? Why would I create a sense of fear in the minds of informed Albertans who know the O&G industry is the reason their homes have doubled in price and has allowed the economy to grow such that their business's have grown and will continue to grow? Why would you play a dangerous game of chicken with the O&G giants where the only people directly impacted are the people of Alberta. Stop shooting the golden goose - we need some good news before our home prices continue to slip, we have a massive overage in office space and the Alberta economy goes up in smoke. If people really knew the impact of your proposal we would see mass riots and picketing. However, the uninformed Albertan simply hears that these big oil giants are getting filthy rich - which they are and taking a little extra is not out of the question, just dont take so much that they up and leave. Be smart Alberta Govenment, the Alberta ecomomy has been strong because of this industry, therefore, lets not ruin a good thing. |
| RRE0195 |
Sirs:The non-grandfathering aspect of the royalty review report is very troubling to me.It is reminiscent of what [Information Removed]did to the oil industry in the late 70's. Now you might expect that from a socialist government,but last time I looked we do not have a socialist gov't.You may[or should ]recall the number of oil companies and service companies that left Saskatchewan as a result of [Information Removed] action. It took Sask. a long time to recover. As a retired geologist who has done quite well from his employment in the oil industry, I don't like all the Reviews recommendations. As a citizen and owner of the resource ,I feel some royalty increase is warranted. BUT-- grandfathering existing contracts seems the right thing to do. This government needs to give its head a shake. If you had had a plan for the future instead of living from surplus to surplus, you wouldn't be in this bind [Information Removed] |
| RRE0196 |
I support Alberta oilfield workers. If the outcome of this Royality review is implemented in the wrong way who is going to pay the bills for us. Where will we go for jobs, I've seen down time in the patch and it is a very desperate time. [Information Removed] |
| RRE0197 |
I sincerely hope that the PC gov't adopt this review's recommendations COMPLETELY. The record profits of the oil companies are a windfall and we are not getting our fair share. The threats by these companies to reduce investments or they will leave should be countered by a "take it or leave it" message. The oil will not go away and the "boom" should be replaced with a more reasonably pace of development. [Information Removed] |
| RRE0198 |
Please do not make the same mistake Liberals made with the National Energy Program Keeping the oil industry going will create more revenue in the long run with all the industry & jobs created than increasing royalties now. [Information Removed] |
| RRE0199 |
I'm very concerned that full implementation of this report will severely affect the Alberta economy. In general, I don't feel that "I'm not getting my share". I'm getting my share by living in a province that has a strong economy which means I have good job opportunities with high salaries, high property values and a good return on my financial investments because I invest in the Oil and Gas industry. While I do believe there is room for some change, I think that it has to be implemented carefully and possibly in stages. There is room for royalty increases in the Oil Sands sector but I believe that existing projects should be granfathered. I urge caution when looking at changes to royalties for conventional oil and gas (especially gas). |
| RRE0200 |
The Royalty Review is one thing but sufficient funds set aside by Government authorities for reclamation is another. My initial investigation on this subject leads me to believe the government is not doing enough. Are we headed for another "Sydney Tar Ponds" disaster? Nothing to date convinces me otherwise. Look at the mess! Development with little concerns for infastructure needs is creating a province that no thinking Alberta wants! |
| RRE0201 |
Obviously there is much to learn still from the Royalty Review; should we be making any decisions until we have all the facts? Can't we all agree on a solution? After all, we have Alberta's best interest in mind... |
| RRE0202 |
Re: Royalty Review I was one of those employees who went to the Legislature and was not bussed by my company nor asked to go on behalf as was stated that most of us did on the news by some members of your pane. I want to say that I felt like he made fun of us that attended., His attitude describing those of us that went was with a smirk and of absolutely no concern to the employees that may very well go down with this upcoming ruling. I felt stabbed and realize now what a mistake we made in our previous voting experience. |
| RRE0203 |
If Albertan's think they are going to receive an additional 2 billion iin royalties every year they really need to give their head a shake. What about the billions of dollars we will lose in investment, jobs and infrastructure that the oil & gas industry supply us with now? These oil companies are not bluffing!! Our economy is booming, eveyone that wants a job, has one!! Why risk it? Think about it, this is not the right thing to do!! |
| RRE0204 |
I am blown away to read comments in the newspaper this morning. Ed Stelmach stated that everyone should just relax and take a deep breath. I have lived in Alberta and have always been a Tory supporter but I will lose all confidence in a Tory government if these kinds of royalty recommendations are implemented. Life as we know it in Alberta will signifcantly change. If these kinds of drastic changes are made, the oil and gas industry will have no choice but to pull investment out of Alberta. I work, as an economist for an oil and gas company and most projects are marginally economic with the current royalty regime. The royalty report is flawed. The recommendations are based on misleading comparisons, it ignores current economic realities in Alberta and it fails to consider the significant impact that these recommendations will have on future investment in Alberta. A better study should be done and the people of the province and people in the industry should be heard before anything is implemented. Change should occur but not based on this report. |
| RRE0205 |
I am concerned about the recent royalty report and upcoming government decision on how the Alberta royalty regime may change. I owe my livelhood and achieved personal success to the oil and gas industry (more specifically oil sands) of this province. The current state of provincial policy has allowed for economic growth in the province with many Albertans benefiting from this. I highly recommend that the Alberta government does not accept the proposed royalty regime contained in the recently submitted report. I believe that as an Albertan, we elect a government that is capable of making smart, educated decisions that are in the best interest of the citizens of this province. Despite the recent reports that 80% of Albertans would like the royalty changes as they are presented in the report, I don't believe the general public fully understands the content of the report, nor would I suspect that 80% of Albertans have even read it. There are many complicated ideas in the report and in the current royalty regime that I believe are not fully understood by the general public. To this I get back to my earlier point that we, as Albertans, elect a government that is capable of making decisions on behalf of Alberta that are truely for the best of Albertans. I believe that the continued investment from the many oil and gas companies into this provinces reserves is in the best interests of Albertans and I feel a substantial change to the royalty regime will adversly affect this investment. I also feel that I will personally be negatively affected by the potential outcome, and as a voting Albertan, this is not in my best interest. Thank you for your time. |
| RRE0206 |
I encourage the Stelmach Government to put the interests of the owners of the resources ahead of the interests of the developers of the resources in question. A substantial increase in royalties paid by industry to the Alberta Government will permit the government to invest in energy conservation technology, plan for the days ahead when resource revenue will decline, and diversify our econonmy. There is a need to look beyond short term fluctuations in the commodity prices and short term political considerations and plan for the next 10-15 years. The Alberta Government has been poor at preparing for predictable issues and events. Increasing revenue from the resource industry can be set aside while long term plans are developed. Vision from government leaders is needed and and not government that is on "Cruise Control", which is how Ralph Klien described the ideal he strived to achieve. Pro-active, intelligent, well researched, and deliberate planning must occur. These plans require funding and adding to the Heritage Fund at this time will allow those plans to be executed in the future. [Information Removed]Calgary Alberta |
| RRE0207 |
Dear Provincial Government, I'm sure you have been inundated with the entire realm of insults and abuse from some Albertans, and heaps of praise from even more of them regarding a possible royalty hike. I choose to deal only in facts when writing this note. I am a [Information Removed]for one of the majors, and in the past week I have seen my companies fall/winter drilling schedule reduced by 30%, solely on premise that these new rates will be instituted. 30% is huge, I have no idea how many jobs that represents, but I will be reducing my own staff and releasing several of my contractors immediatley if this thing comes to pass. These people are well payed, and their contribution to the economy is substantial. Has anyone considered the possibility that you actually CAN derail an oil boom? Please, trash the report, and lets find the BALANCE that will keep this ball rolling. Regards, [Information Removed]. |
| RRE0208 |
The average Alberta resident has no idea of the extent of the negative consequences of implementing the Royalty Review. Instead of receivng "our fair share", what will happen is that thousands in and out of the oilpatch will lose their jobs because the economy will be devastated. Without a healthy oil and gas industry, Calgary and Alberta has a very poor economy. Massive unemployment is what the average person can thank the government for if this proposal is approved. Well done! |
| RRE0209 |
I have read the report and many other documents of a variety of views and strongly feel that this report is leading Alberta down the wrong path. I do believe that with the current economic hurdles Oil and Gas Producers are facing and with a very weak natural gas market, raising Royalties will reduce capital investment in this Province even further. I’m also very concerned with the arrogance of some of the panel members and their non constructive comments (“morons” “Suck it up”) especially since we are dealing with billions of dollars and future of over at least 3 million people. That a side, I believe that our Tory Government had a real opportunity to build outstanding education and health care facilities and programs after all the cut backs but it seams to continue throwing money at issues without a real plan. In my mind what you, the Government, should be focusing on is fixing those social programs with the $10 to $12 billion that the oil and gas industry currently contributes. Our “Fair Share” is that the second pick of the Tory Election does create a Disadvantaged Alberta with less revenue, bigger social issues and less capital investment. |
| RRE0210 |
I believe the Panel Report's recommendations are too little and that royalties charged should be much higher (in line with Norway, for example). Anything less is corrupt. |
| RRE0211 |
Dear Alberta Government, I am concerned that my Alberta Government is considering implementing a new Royalty scheme that has such great potential to cripple the Alberta and Canadian economy. A decision like this does not only effect the oil patch, but has far reaching consequences to every Albertan and every industry in our province. As an employee of an oil and gas company, I am now concerned about job security. If the new Royalty Scheme were to be implemented, most of our projects will become uneconomic and activity will become slow. Very, very slow in fact. This is not an isolated situation, as many of my peers and friends across the industry share the same concerns and are facing greatly reduced activity should this go through. I fail to see how reducing the number of projects is good for either increasing royalties (not even getting into the reduction in taxes collected by the gov't that would follow...), bettering our economy, or maintaining key employment opportunties. As a home owner I am concerned about the potential impact the Royalty review will have on my house value - it will not be good. As an investor in equities, the potential changes to the Royalty Scheme are devastating. Experts in the financial field are alarmed at the potential consequences and the financial sector reacted quickly - dumping and devaluing Canadian O&G equities. In order to capture $2b/year in royalties (which will not be achieved due to reduced industry activity), the Alberta Gov't managed to devalue public O&G by multiples of that - just check the day after the announcement to see the plummeting stock values. The phrase "stepping over a dollar to save a penny" comes to mind... What will happen to the service industry (restaurants, clothing stores, etc) when there is less disposable income to support them - it will not be good. And these ripple effects will permeate our entire province... As an Albertan, I believe we should ensure that we are getting our fair share of our resources. I also believe that royalties cannot be so oppressive that it prevents the ability of companies to extract these resources. And I believe that our current royalty scheme, while not perfect, strikes a very close balance at what our province needs it to be. In closing, should the Alberta Government proceed with the Royalty Review Recommendations, it will demonstrate a lack of foresight and aptitude required to run a province. I would not vote in a gov't that proved itself to be that ignorant. And I am not alone. Please do not consider implementing these recommendations. The future of our province depends on it. Thank you. |
| RRE0212 |
Albertans are the owner of the Oil. We have only contracted out the harvesting and selling of the Oil. [Information Removed] has the largest profit last year in the history of Canadian companies. Even if there were 10-20% change in royalities, they would still make billions. Three items to remember: THE OIL WILL NOT BE IN THE GROUND FOREVER AND WE NEED TO PLAN FOR THE FUTURE, secondly, WE WILL NOT BE HELD HOSTAGE OR ACCEPT THREATS FROM OIL COMPANIES, WHICH I FINE INSULTING AND DISTASETFUL and lastly and most important IT IS OUR OIL AND WE SHOULD NOT GIVE IT AWAY SO THAT LARGE CORPORATIONS AND THEIR FATCAT EXECUTIVES EARN MILLION DOLLAR PAYCHECKS AND MULTIMILLION DOLLAR STOCK OPTIONS. ORDINARY ALBERTANS SHOULD ALSO BENEFIT FROM THE WEALTH OF HIGH OIL PRICES. My suggestion would be to implement a calculation that is based on a profit spread. The Oil companies definetely deserve a reasonable return on their investments, however, greed should not be part of the calculation. |
| RRE0213 |
I like to think of myself as an informed resident of Alberta. It appears to me that radically changing the current royalty structure will necessarily drive capital investment out of the province. In a very tough gas price environment the timing of the changes is terrible. A phased approach linked to commodity prices and industry cost structure would make a lot more sense. In addition another large change in government policy will once again harm foreign investor sentiment towards Canada as a whole. |
| RRE0214 |
Dear Premier Stelmach: This is to let you know that I support the recommendations in the Alberta Government's recently released Royalty Review, in particular: a. An increase of 20% in the taxes and royalties paid by oil and gas companies; b. Lower royalties for lower-producing wells and higher royalties for higher-producing wells; c. A 33% increase in oil sands royalty rates (after project costs have been recovered); d. No grandfathering of existing rates; e. Regular review of royalty rates, done publicly; f. Creation of a sister organization to the Auditor General to oversee spending decisions by Alberta Energy. I hope implementation of the recommendations also reflects what is truly fair to ALL stakeholders, as well as what is appropriate LONG TERM. Thank you for the opportunity to comment. My support is with you and your staff during this difficult decision. Blessings, [Information Removed] |
| RRE0215 |
Dear Premier, It is with great urgency that I write you on the issue of the Royalty Review. I must tell you that I am against any unfair increase in the royalty program. I believe that any increase should be negotiated with the energy industry, not forced upon them. I personally own rental properties in Alberta and when your government deceided they should meddle in afairs that they shouldn't, eg. when and how much I am able to increase rents. I no longer have an interest in buying further properties, as the market is no longer a free market. These things work themselves out. So you see what I am saying is if you jack the royalty payments Oil and gas companys must pay, they reduce spending in this province and where do you think that spending goes?? It goes into ordinary albertans pockets who turn around and get taxed by an already over bearing tax system, also they take their hard earned dollars and spend them in the province generating a hot economy. If the oil companys stop their spending the province doesn't have the tax base to take the money from. All this talk about Alberta losing 2 billion a year is ridiculos, what are you trying to fix? We have the best economy in north america with the lowest unemployment rate. Why mess with a good thing. I live in Grande Prairie and the last year has been a year of change for us here, things have already slowed considerably here due to low natural gas prices, house prices have slumped new house's aren't moving at the rapid pace they once were. Expensive toys and vehicles are for sale and not selling, people are being laid off and don't have the money they did even a year ago. Just so we are clear I am against any and all tax increase and believe the government should not meddle in business let it go it's natural way. If people think that they or albertan's are not getting their fair share, why don't they go buy stock in the oil company's that are doing so supposedly well and they will get their "share". I hope this government takes this very seriously and doesn't [Expletive] up a good thing. I could never support a government in a election that takes away my living. In fact I would publicly campaign against such a government, even though I despise the Liberals and the communist neighbours the NDP. Yours truly; conserned citizen [Information Removed] |
| RRE0216 |
I am a born and raised ALBERTAN. Who has worked in the patch for the last 25 yrs.I am deeply concerned about this review . Oil companies are no saints and niether is our goverment in my eyes . But I do hope that they would take the time to try and find a solution by talking to each other instead of this bunch of scare tactics going around . It seems that they should have been consulted more by this panel . Thank you |
| RRE0217 |
Just adding to my previous message, if you really think that the government doesn't have enough money, then why not cut back on spending instead of seeking to raise revenue! Don't get greedy! |
| RRE0218 |
Dear Premier Stelmach: First, let me commend you for making the Royalty Review report so promptly and fully accessible to the public. Since we own the resource, pay your salaries as representatives of the people and paid for the report to be produced, this transparent and full disclosure is an important democratic step. It is a welcome and courageous change in provincial politics which I hope will become the first of many. It is mindboggling to imagine what our province could and can have implemented with $1.9 Billion x 5 years or more. Here's some basic things I hope you will consider: - Pretty much every school built in the 20th century has asbestos which means that all of the mechanical systems are left using expensive, low energy technologies. Let's renovate or re-build schools to meet the demands of the 21st century. - We are only as strong as our weakest links and education makes us all stronger. Start a provincial education station which educates parents on good parenting strategies including nutrition, exercise, literacy and numeracy. Demonstrate how to shop, prepare and eat nutritious meals as a form of intervention and prevention to address obesity and it's related illnesses. Show people the basic skills of how to manage and budget their money (a huge element in the skyrocketing divorce rates). Educate people on how to exercise and make healthy lifestyle choices -- many people really don't know a clue how to exercise safely. Housing and infrastructure is another huge issue, but I would ask that as you address these issues, do not allow our tax dollars to be ravaged by the piracy of contractors. As with the oil industry you must show them that there is more than enough work to last them a lifetime but that the price gouging will no longer be tolerated. When prices double in one year (as in the 23 Avenue project in Edmonton) it shows the flagrant disregard for public interest. The cost of materials did not double, nor did the wages of the workers, it was simply a contractor doubling their profits. When the government is paying this kind of tab, you begin to wonder if the people's interest wouldn't be better served by having a new government department actually created to hire staff and do the work themselves on behalf of its citizens. Good luck and thank you. Sincerely, [Information Removed] |
| RRE0219 |
The Alberta governments first priority is to it's people not it's back pocket. Alberta is in excellent shape financially and does not need to milk the energy sector to the point it will cost people their livelyhood. Anyone have Ralph's phone number? Sure would like to see some common sense back in the Alberta drivers seat again! |
| RRE0220 |
It astounds me that a report can be issued discussing the Province's "fair share" when they can't even figure out what "fair" means. The Government wants 2 B$ more revenue when all it can figure out to do with the huge surplusses it already has is to send $300 cheques to people. If the Citizens of Alberta got together and sponsored a panel to determine if their provincial income tax was "fair", they would say it is too high. Would you cut taxes based on that? I think not. Why increase royalties? Because 10 B$ isn't enough? Laughable. Building a competitive fiscal regieme doesn't mean deciding to make things worse unilaterally just because they're far worse elsewhere. You make them better, and keep making them better. That has been the Alberta Advantage for decades. Changing fiscal terms in mid project is a great way to chase away future investment. Investment is driving this economy, and if you believe destabilizing the royalty regieme and comparing yourself to Venezuela is a path to increasing investment, you're dead wrong. Failure to grandfather the basis of those investments is nonsense. The Panel was doomed from the start with the appointment of no people experienced in the energy industry. The fact that the Government is even considering this tells me the wrong people are in charge, and it's time for a change, starting with the Premier, all the way down to my local MLA. Please call an election soon so we can get this over with. |
| RRE0221 |
I am worried that your government is more interested in playing politics and improving Ed Stelmachs ratings than honestly doing what is in Alberta's long term best interests. Its a great political move to take on those 'fat cat oil companies" as the average Albertan unfortunately has little understanding of how the oil industry works but is happy to express their resentment or jealosy of the incomes earned by management. Do they even know that most oil profits are reinvested in the ground??? Notwithstanding my scepticism of the process I submit some comments and ideas: If not for the Alberta advantage, which attracted the oil investment in the first place, this province would be part of Canada's have nots If not for the courage and initiatives and entrepreneural skills of investors, employees in the oil business and management , our resources would be merly assets still in the ground. Government is not prepared to expose themselves to the investment risk so it is left to the oil companies to do the "dirty work". I believe that the average Albertan and many in government have no concept of what this means. When your predecessor had the opportunity years back to support the building of upgraders which would have been risky and cost many billions then, but would have been paid off by now and generated billions of extra dollars to our province, he did not have the vision or courage to proceed here. Imagine the billions that have been lost because of this. Fortunately it is still not too late although costs have risen exponentially since then, it still makes sense to go this way. The panels recommendation of a 5% credit does not go far enough. We need government to step up to the plate and either make this a meaning ful credit and also build or guarantee the funds , so upgraders WILL be built. Our future is in the oilsands and for us to "be hewers of wood" and sell our bitumen at discount prices to others who have little risk and just process our oil, borders on the criminally negligent Oil companies are financed in large part by investors many of whom are Albertans and so many of the benefits the company earns is passed on to these Albertans in the form of dividends and capital appreciation, which are passed back in part in taxes. So whilst your panel may see a tax/royalty leakage directly from the oil companies, the government and hence the rest of Alberta is still ireceiveing their"fair share " in taxes. I would assume, many Albertans have RSP accounts and the majority would have mutual funds in which the energy sector would be a constituent including well known names such as [Information Removed]etc., . So Albertans again have a direct stake in the oil industry and benefit here when the comapnies are successful. Preparing for retirement with sufficient funds which in part is achieved through the investment in our our oil comapnies takes away a huge burden from you , our government who would have to subsidize or support these citizens... I see no recognition here of the benefit to Albertans. In many cases some of the "oil companies" as well l the services related thereto are small Alberta operations owned and run by Albertans, who have risked their money in this business. The proposals for these companies will be so punitive as to put some out of business or have some shut in marginal wells. Already the drrilling and service industry has purportedly laid off 10,000 workers and with rig utilization rates at less than 50%, more taxes is just another nail in the coffin. the blow to our junior industy from the low gas prices and income trust debacle cannot be understated. No differentiation or investigation was made by the panel between foreign and local ownership. I believe this was a paramount mistake. there is a large difference between profits that leave the province and those that stay. An idea would be to retain the royalty rate at 20% after payout provided the net profits are reinvested in Alberta. If the funds are sent out to foreign investors or foreign head offices, then there should be an progressive tax charged moving up to the proposed 33%. again what the panel and the average Albertan seems to ignore is that the majority of profits generated by the oil companies are further reinvested here, unless you make it not worth their while. It is a fallacy to just assume investment will continue to flow here just because we have " a stable government" Stable government means reliable as well and this should be borne in mind. The stable government theory and huge oilsands reserves have to be compared with other environments that provide cheaper labour, more hospitable terrain , better weather conditions etc so its no automatic that investment will just flow here. Even a small loss in new investment, will over time negate any additional funds from new royalties/taxes. I suggest there should be a correlation between the Candian Dollar/ USA dollar and a formula for calculating an average netback and when this netback reaches a threshold equating to a super profit ( or certain return on equity) , then an additional royalty should be charged. However, this Royalty tax should not be used for general purposes but be specifically designated for the Heritage Fund. The proposed removal of existing agreements is both illegal and stupid and will provide the legal fraternity with field days at huge costs to the tax payers. This would include timelines on leases . Their prosal to move it from 20 years to 6 years in the oilsands really gave me another jolt as to the credibility of the panel. Not only was the government paid billions of dollars for their leases based on stiipulated timelines and with the shortage of labour and resources and huge construction costs already adding more strain , can you imagine the nightmare (even if it was legal to change the terms) to change the timeline. Another point missed by the panel was in not including the revenue brought in by the government for the oil leases. if these numbers are included with the royalties, Albertans are getting a pretty fair deal.The costs to investors or funds generated by the government from our oil leases compared to other jurisdictions is incredibly lucrative and I believe that it is naive to assume that this free money windfall will continue unabated when more taken by government on the other end. So In conclusion, my scepticism allows me the latitude to still be hopeful as I believe that I understand the process> Pick a panel with no real industry experts or heavyweights who will come out with the worst possible outcome for the oil industry. Score points with voting public In rides Ed Stelmach, who will not be bullied, to pick some and choose from the list of suggestions> Thus he show Albertans that he is the boss and the oil industry does not control him. score more points with Voting public And the oil industry sees the choices Ed Stelmach makes as reasonable and although they have a very slight bloody nose, they have not been laid unconscious with broken bones. score points with voting oil industry and continue to receive financing for conseravtive party. And all are happy for a while!!!!!!!!!!!!!!! |
| RRE0222 |
The Royalty Review seems to be a one-sided report based on gross misinformation. If the government proceeds with the recommendations suggested by this biased review, the economy of Alberta will hurt as bad as the National Energy Program (NEP) in the early 1980's. Why would any government wish to "bite the hand that feeds it"?? Where is the government going to replace the lost royalites from lost drilling and the lost tax dollars it receives on drilling activity? How are they going to cover a 10% unemployment rate, once all the lay-offs start coming? How is it going to carry or cover all the home foreclosures that will result in a devastated economy? Is agriculture going to make up short ends, or as Stelmach states, manufacturing industry will lead this province. What do you think the manufacturers manufacture, Oilfield related equipment? We do not have an export base outside of energy resources to carry us through the next 5 years or beyond. I am making my point, before this government "knee-jerk" reacts to accepting this report in its' entirety, they will drive this province, and a large portion of the national economic state, into recession. Give it the investigation the time and proper facts it truly deserves!!! |
| RRE0223 |
Dear Ed: I don't think that you need to come with a high Royality. I don't think you are aware of what you are doing to Alberta and the families that work in the oil patch. Unless you are willing to give all the employees of the Oil Industry a job then I would suggest that you are careful in your decision. You should take Ralph's comment into consideration as he was a Premier for a much longer time then you are, |
| RRE0224 |
I think the proposal put forward is ludicrous. To think for a moment this would not have far reaching negative impacts on the economy is short sighted in the extreme. Assuming that it will be business as usual is "pie in the sky" and to rewrite the rules for projects long since completed and capitalized, while seemingly legitimate for governments, would land a private sector company in court. Perhaps the 2 billion dollar benefit will come to fruition, for British Columbia. All the major players will shift their capital programs to a more reasonable climate where a reasonable return on capital can be expected. This will devastate the Alberta economy and is akin to the NEP. The NEP! Made in Alberta, I swore never to vote Liberal after the NEP, and never have, and will do the same for the Conservatives?, if the Alberta NEP is foisted upon us. |
| RRE0225 |
My name is [Information Removed], and I like many others in Alberta work in the Oil and Gas Industry. The company I work for employs 10 people and 90+% of our revenue is generated in Alberta. We are primarily exploring for shallow gas in the NE part of Alberta. Our internal analysis of the panel's report has determined that our firm no longer will be profitable in the near term (until natural gas prices increase substantially on a sustained basis), and therefore drastic changes including lay offs may need to be done. I have advised my wife, who is a stay at home Mom, that she should start a job search, as I cannot guarantee her that I will be employed past Christmas. This is doubly perplexing as I am approaching 50 years of age and am not quite ready or financially able to retire. I am sure there are many others in small oil and gas companies who will be in the same boat, but I also think there are those in many other companies, large and small that could face the same circumstances. What I am wondering though is how many other Albertans who do not work in the oil business will also find themselves unemployed or no longer able to sustain a business on account of their customers no longer showing up. Unfortunately not all Albertans realize just how much collateral damage may occur as a result of the implementation of the panels report. Perhaps many of these people do not remember or were not around for the NEP. For my parent this was a devastating time. My personal opinion is that the oil sands side of the business has gotten somewhat out of hand and certainly needs something to slow down the newcomers. We on the other hand must recognize those pioneered that side of the oil patch. With oil expected to stay at lofty prices I am sure there is something that can be implemented that will allow Albertans to take a little bit more of the production pie, but more importantly I think that those hoping to exploit this resources can assist in the building of infrastructure as opposed to expecting the government t o pick up the tab. In closing I believe that the implementation of the panel report as written will have a devastating effect on a great many people in Alberta - many who are not even aware that their livelihood depends on the oil and gas industry. Secondly I believe that royalties on conventional oil and gas have been fair and appropriate and in fact has allowed our province to be the envy of the rest of this country. All Albertans have benefited, whether rural or urban, and most have reaped what they have sown - which is to say they have received there fair share. Lastly I believe that oil sands will be enabler of prosperity for the future generations of Albertans and that the oil sands can sustain additional revenue sharing, particularly as the province will be expected to insure that the adequate infrastructure is in place in the new growth area like Fort McMurray. I sure hope that what eventually is implemented for new or additional royalties will have a positive effect on the people of our province. Don’t let us lose our position as the pre-eminent province of Canada (I can already hear Bay Street laughing at us as we shoot ourselves in the foot). [Information Removed] |
| RRE0226 |
I believe that the Government of Alberta is required to justify to the citizens why the Royalty Review Panel recommendations not be followed in their entirety. I am disappointed that the Government has invited the industry to lobby their interests, as their interests are clearly not the citizens of Alberta's interests. I also understand that the delay in implementing the recomendations is costing approximately 150 million a month in lost revenues. |
| RRE0227 |
Do not bend to the oil companies. We haven't had a Premier stick-up for Albertans in a generation or 2. |
| RRE0228 |
I moved to Alberta from [Information Removed]. I found it hard to believe that energy companies are able to make money in this environment considering that the basin is mature. I worked on a platform in [Information Removed]we had only 9 wells and produced 30,000 barrels of oil per day and about 200 mmscfd of gas. The average employee was paid approximately [Information Removed]the wells cost about the same as well in AB that produces 300 mcfd of gas. The tax regime is less than AB. How can AB compete with such a place interms of investment dollars? The main thing that has kept investment dollars in Alberta is stability in fiscal policies and proximity to the would be investors. If this is taken away by a recommendation that is not carefully studied and analyzed, we might scare away investors and they may be willing to take their chances in the more volatile regions of the world for guaranteed better returns. I will give a small example with myself. I was planning on buying some energy stocks (very little) but due to this uncertainty, I have stayed away. If there are 10,000 people scared like me, that is a lot of investment leaving the province. I have come to love this province as an immigrant and it will break my heart to see its economy shredded for no due reason. We are not in dire need in this province to warrant the so-called extra 2b dollars. I am a fan of the Tori party and what we stand for but we just need to get this one right. THERE MIGHT BE NO SECOND CHANCE !!! A WORD IS GOOD FOR THE WISE. |
| RRE0229 |
Dear Premier and Ministers, [Information Removed], one of the largest and best run oilfield service organizations in Canada has had to lay-off 200+ workers this year. We have to compete with the world for investment dollars and we've been doing a pretty good job but implementing the Panel's recommendations can and will only have one effect - reduced activity. That's lost jobs and lost opportunities, but the good news will be slower or little growth and therefore a lessening of infrastructure requirements and the inevitable environmental greening effect stagnation will bring. What part of "Alberta's economic engine of growth and prosperity" did the Panel fail to get? Their comparisons were not adjusted to any reality save their obvious mantra going into their task; i.e., "We must show that Albertans are not getting their fair share". The Panel's attempt to show generosity to the producers of low productivity wells is nothing short of dishonest since the formula will result in zero cash flow or reinvestment potential. In a give and take scenario this "give" is absolutely nothing and the Panel knows that. Can there be improvements to the Royalty regime? Of course but the reality of the costs of exploration and production (and revenue where natural gas is concerned) in this aging basin and of production in the Oilsands must be ACCURATELY factored. The Panel of late insists that "We're not morons"... Me thinks they doth protest too much. The profits of [Information Removed]have nothing in common with the average Alberta producer. Mr. Premier, please don't jump on the Danny Williams bandwagon just to try to capture liberal votes Sincerely, [Information Removed] |
| RRE0230 |
Implement the report in it entirety !! |
| RRE0231 |
I believe the royalty review report is B.S. Albertans already receive a large piece of the pie from the oil companies by jobs, revenue and a service industry to be provided to. The royalty progran will hurt Albertans not benefit them. Oil companies will take there capitial dollars from Alberta and place them somewhere's else that does not cost so much to do business. |
| RRE0232 |
[Information Removed] October 16, 2007 The Honourable Mr. Ed Stelmach Premier The Honourable Mr. Mel Knight Minister of Energy, and The Honourable Dr. Lyle Oberg Minister of Finance Province of Alberta Re: Alberta Royalty Review Dear Sirs: Please be very cautious with this potentially disastrous issue – for the Province, the petroleum industry, ALL Albertans, Canadians all across Canada - particularly those who are vulnerable and will be first and most severely hurt. The current royalty system has served Alberta extremely well. We have full employment, a vibrant and active industry and substantial Alberta budget surpluses. Please consider: • Alberta Advantage Alberta (and Canada) has greatly benefited from the perception that it is a safe and stable regime. This tremendous advantage for the Province has already been seriously eroded by the uncertainty caused by the royalty review and will be squandered by retroactive changes to what was considered a stable investment environment. • Abrogation of Contracts Decisions made before the report have been made based on the current fiscal regime. Very few if any recent decisions will have anticipated risk of major changes in the Alberta or Canadian fiscal regime. Many Crown sale purchases, production purchases and exploration agreements and service company investment decisions made under the current regime may no longer be economic. • Land Sale Bonus Any increase in royalties will be immediately reflected in reduced land sale bonuses paid. Land bonus payments are received up front at no risk to the Province. • Activity Drilling activity is currently down largely as a result of low gas prices and will collapse if royalties are increased in this environment. Any increase in costs or royalties results in cancellation of projects at the margin. • Depletion Without new drilling, declining production will reduce royalties whatever the nominal rate may be. No royalties are paid on un-drilled wells. • Damage The first hurt by reduced activity will be the most vulnerable such as people who have recently purchased homes with high leverage if prices decline and/or they lose their jobs. • Fairness The Province’s assumed take relative to other jurisdictions is not a measure of fairness in any respect. It is a false comparison of “apples and oranges”. • The Key Issue – Economics of New Projects The economics of the next land sale purchase, drilling decision or equipment purchase are the critical issue. We spend more and more to find ever smaller reserves in the Western Canadian basin. • Royalty Review Positives Simplification. The possible silver lining to this black cloud is the opportunity to eliminate the complications to the royalty system – most of which resulted from government intervention and provincial federal confrontations. The many serious flaws in the Report of the Alberta Royalty Review Panel are being addressed by individuals, oil and gas companies, service companies, industry consultants and the investment community and their analysis must be fully and carefully reviewed. CONSIDER THE EFFECTS OF THE NEP. [Information Removed] Copies to: Alberta MLAs |
| RRE0233 |
Please proceed with the increase in royalties. If we compare Norway's royalties to Alberta's, it is about time that these corporations pay their fair share of the tax load. This extra monies will certainly help with infrastructure such as roads, hospitals, schools, and afordable housing for all Albertans. |
| RRE0234 |
You guys are way off base here. Define fair share. That's about as subjective a concept I have heard of. Instead of talking about how much you aren't getting why don't you start reporting how much you DO get from oil and gas. I don't work at an oil and gas company by the way. I see this as a general problem of "entitlement" that society displays on a regular basis and your government is now displaying. You should be ashamed of yourselves for saying Albertans have not received their fair share. Drop the flat tax to 5% if that's your concern. Oil and Gas revenues to the government this last year (or year before) were over 10 billion dollars. That's unreal!!!! Don't do it Mr. Stelmach. You know better. Sincerely, [Information Removed] |
| RRE0235 |
The royaltie's review board needs to be realistic, and consider the overall devastating effect that this would have on all of Alberta. There needs to be a compromise made by both sides so we can all continue working and taking care of our families and each other. I feel that 20% is way too extreme of an increase to place on the oil companies. |
| RRE0236 |
Oil sand investment is the single most important factor contributing to the boom we've seen in Alberta for the last 5 years or so. Please do not kill the Golden Goose. Sure Big Oil made record money for the last couple of years but there're only three working oil sand operations thus far, [Information Removed] . That means Big Oil made record profit elsewhere, not from oil sand. I would suggest rasing royalty when more oil sand operations are in production, after Long Lake, Horizon, Forthill and maybe the [Information Removed] project are complete. Don't let jealousy blind you and don't use it as a political plateform to proof that Eddie is Steady. Why curb investment when there's so much more of it waiting to come to Alberta? If you raise royalty, you're not better than the Liberals, of which I'm seriously considering to defect to even though I'm a long time Tories supporter. |
| RRE0237 |
Please do not take into consideration the Panels recomendations, I feelthis will be disastrous for this province. 20% is a high amount, and I feel your calculations are somewhat misleading. Please come to a middle ground before we see the 1980's all over again |
| RRE0238 |
The people of Alberta feel they have been scammed for many years regarding the revenue that could have been accrued from oil royalties. In addition, we all recognize that this is a finite commodity that will increase in value as it decreases in availability. Ensuring that Albertans receive fair compensation in the form of royalties is absolutely crucial to the well-being of your government. |
| RRE0239 |
The levels of investment in oilsands means that the return on investment will take years if not decades to review. I strongly disagree with the royalty proposals. If they go through they will desimate the Albertan economy similar to the changes in the North Sea fiscal regime in the late 1980's. |
| RRE0240 |
I work in the oil patch and fear for my job if you do not back off with this royalty increase so please do not increase royaltys I always say if its working leave it alone thanks [Information Removed] |
| RRE0241 |
am a senior citizen and still involved without oil field construction company. I am asking that the Alberta Government be very careful with this review and any increase in Royalties I believe that many people who are in favor of the big increase on royalties are people who are not directly effected by the oil industry- teachers, hospital workers, union workers,etc. Everyone benefited from the gas rebates. Everyone indirectly benefits from our oil industry. I will agree that the big oil companies are making big profits, but what about the little ones that keep many rural people employed. Also the biggies are the ones that have developed many areas and this has cost millions of $. We all should remember the bumper sticker " Please Lord let there be another oil boom and I promise I won;t etc." There has been enough lean years through this industry and we don't want another, so please be very careful with any increases. We don't need oil prices do go any higher. If we have a slow down in the oil industry Alberta it will impact our price of gas. It will also mean many job losses and housing foreclosures. I don't think the majority of Albertans want there cousins, sons, daughters to loose there homes etc. I hope that the answer will be a graduated increase. Thank you |
| RRE0242 |
Due largely to the errors in the data that has been used to support the findings of the panel, I feel it would not be prudent to implement the changes to the oil and gas royalty structure as presented. I would look for Premier Stelmach to consult with the knowledgable people in the industry and in his energy department before making his final decision on the revised royalty. The impact to all Albertans will be significant. The opinion polls do not consider the effects on Albertans who will lose their jobs if this new structure is implemented per the panel's review. The polls are crafted so that the question is simple but the impact is disguised. I do not believe that there will be any benefit to Alberta or its people under this new royalty regime. |
| RRE0243 |
I have read the report and I am impressed by the scope of its content. I strongly endorse the recommendations from the report and I urge the government to see that its suggestions for royalty rates and formulae, administration and accountability are fully implemented. Regards, [Information Removed] |
| RRE0244 |
I am very concerned on the impact of the recommendations of the Royalty review panel on the rural areas of Alberta. The increase in upfront costs through the proposed royalty changes will significantly affect the upfront costs for E&P companies leading to greatly reduced oilpatch activity. [Information Removed] |
| RRE0245 |
Mr. Stelmach, I am writing to express my concern and dismay over the oil and gas 'royalty review report'. The driving force behind commisioning such a report may be benevolent and intended with the utmost integrity, however the impact and subsequent outcome, should the recommendations of this 'review' be adopted will (in my humble opionion) be very adverse economically, ultimately causeing more harm to the average Albertan than any percieved benefit. The money taken from the oil and gas sector, which is re-invested many times over via the various jobs, goods and services will never generate as much secondary and tertiary economic benefits in government hands. No society has ever taxed themselves into prosperity. This doesn't include the economic loss Alberta will experience as new capital is shifted to balance this new political risk with other opportunities out side of Alberta. Alberta (Canada as a whole) is an expensive place to operate for oil and gas, one of the most expensive in the world. This expense is balanced by (up to this point) low political risk. Alberta will lose much of its competitive advantage if the recommendations of this 'review' are adopted. The gas sector of the industry is currently in a recession due to a finding-cost/gas pricing imbalance. Increasing the royalty take will certainly hurt oil activity, but it perhaps will devistate gas activity. I sincerely ask you Mr. Stelmach to not listen to the vocal minority who claim to speak for 'the people of Alberta'. They do not speak for me. Thank you, [Information Removed] |
| RRE0246 |
I feel we should charge the oil and gas companies more energy royalty taxes. My reasons are: Our highways and roads are in a deplorable state. Let's use some of that money to improve our roads. As it is a well known fact that the oil and gas companies are the ones that are ruining our roads due to the heavy traffic. You only have to drive around Bonnyville and area to see this! But it's the same everywhere. Do something about our highways and roads, as they are the first thing tourists and visiting people experience, and I believe in "first impressions". After all, we are an oil rich province! Pay the landowners more for allowing the oil & gas companies access to their land. I hear of so many landowners who are intimidated by CNRL and lots of them have been told that if they don't willingly allow them entry onto their land, then they will apply to a higher body and the landowner will have no choice but to allow them entry and this can void any compensation they are entitled to. So, please don't back down on this issue. Don't be intimidated by the oil and gas companies. |
| RRE0247 |
judjing from all the weeping and gnashing of teeth from the oil interests and their friends, the Royalty Report must be on the RIGHT TRACK. DON'T GIVE IN take a lesson from Nfld. |
| RRE0248 |
I feel I must respond to the recent Royalty Review Panel's "Final Report". The report clearly misses a number of extremely important facts and fails to calculate the government's future net revenues correctly. Obviously, the government and all Albertans benefit greatly from ongoing oilfield activity and development. Corporate income taxes on service companies, personal income tax from their employees, and a large number of good jobs are all a direct result of the high level of oil and gas development activity that we currently enjoy. An increase in royalties will undoubtedly result in reduced investment in further drilling in the province. This is a fact based on increased economic hurdles and decreased revenues for the exploration and production companies. This reduced investment will not only lower income tax (corporate and personal) revenues, but will also reduce future royalty revenue from wells that were not drilled as a result of the reduced investment. Stated differently, increasing royalties may increase the government’s net revenues in the short term, but in the longer term the revenues have to decrease with such a scenario. The Royalty Review Panel’s table on page 17 is completely wrong. It is not correct to assume that future production volumes will remain the same in a fiscal regime that includes higher royalties. Investment must and will decrease with an increase in royalty payments, which will reduce future production volumes and royalty revenues, as well as future corporate and personal income taxes. It is important to remember that the oil and gas business is atypical of most businesses. Most active exploration and production companies invest dollar amounts that are significantly more than cash flow from their producing properties. More often than not, revenues generated from oil and gas production in the province are reinvested in the province, which results in obvious ongoing benefits. As their cash flow decreases, less investment will occur, which will result in reduced government revenues (taxes and royalties), corporate revenues (both production and service company), and individual (employee) revenues. Furthermore, drastic changes such as those proposed by the Royalty Review Panel cause uncertainty, which is never viewed positively by the investment community. I believe the recent news articles and investment papers labeling our province “Albertastan” and recommending a complete pullout of Canadian investments [Information Removed] speak volumes. Keep in mind that the province of Alberta is a highly developed basin with diminishing returns. As noted in the Royalty Review Panel’s report, pool sizes are shrinking, and average production per well is shrinking. The basin is becoming less attractive from an investment perspective, and it does not need further motivation in the form of higher royalties to chase investment dollars away from the province. Given the recent hurdles faced by the oil and gas industry (namely the royalty trust legislation announced last year, the declining average pool size and average production per well in the basin, significantly lower gas commodity pricing, and an increasing US$ exchange rate), I believe it would actually suit Albertans best to DECREASE royalties in order to stimulate further investment. Finally, the Royalty Review Panel has recommended against grandfathering. Not grandfathering any royalty changes goes against past precedent, and is a significant blow to companies that have made trillions of dollars of investment in this province based on an expected stable fiscal regime. Changing the rules on royalties related to past investments is effectively expropriating assets. This is not something that should be expected in our province, which is supposed to be led by a conservative government. Such measures could be considered socialist, fascist, or worse. The Royalty Review Panel chose to ignore the bigger picture and basic economic principles. I only hope that these very simple economic principles are not ignored by Mr. Stelmach, Mr. Oberg, Mr. Stevens, Mr. Knight, and their associates when the government presents its position in a few weeks. Sincerely, [Information Removed] |
| RRE0249 |
Dear Sir It is too bad that the debate surrounding the discussion is being carried out in the media and in the most base of ways. The message that the industry is 'stealing' money from the people of this province is misleading and incorrect. The assets that we have in the ground are not worth anything if they are not being produced and marketed. We need a strong industry to continue to develop our resources and to get a fair return on their investment. The people of this province benefit in so many ways from the energy industry it is difficult for most people to understand. When you make your decision please consider the impact of reduced industry activity will have on royalties and taxes going to the government. I lived and worked through the NEP and it was not a happy time for this province. While I agree that changes can be made to the royalty system drastic changes can have long term negative effects that could alter the Alberta Advantage that our government has spent so much time and effort in creating and promoting. |
| RRE0250 |
how will the gov deal with the loss of jobs for most of the workers in the oil patch?people will lose their whole lively hood!alot of people moved here to work in the oil field is the gov going to help those who will lose everything?it has already slowed down, for companies are waiting for an answer, it is already to expensive for alot of people to live here,think of how it will be when 80% of the people lose their jobs |
| RRE0251 |
Am very much in favour of ensuring Albertans continue to benefit as owners of provincial resources and am in agreement with the recommendations of the report to raise royalties appropriately. Keep up the good work Premier Stelmach! |
| RRE0252 |
The Royalty Review Report should be implemented in w/o fear of exodus of oil companies. They will not take the oil with them and the oil will not disappear. One positive effect will be a slow down of tar sand development which has brought many problems to Alberta: High labour shortage, High housing shortage, High inflation which mainly affect Albertans on fixed income, High demand for services with low contractors available who can easely inflate prices. [Information Removed] |
| RRE0253 |
I am very much in favor of the government adopting the new royalty regime in its entirety. The money could do well to improve infrastructure and fund badly needed housing intiatives. Problems that are a direct result of the oil boom such as the housing and infrastructure saturation problems in our cities should be funded by royalties from the companies using our natural resources. Much of the money these companies generate is not staying in Alberta, nor Canada, and it is time more of it did. It is imperative that the government does not back down in the face of negative media funded by a consortium of oil companies. The precedent it sets would have dramatic consequences on Alberta's reputation world wide. We're better than how we have been treating our people, our cities, and our province. It's time to take back what is ours and do the right thing. |
| RRE0254 |
In the Executive Summary of the Alberta Royalty Review report it states that currently "Albertan's share" of Natural Gas is 58% and the government wants to take that to 63%? More than 50% is already too much. I do not believe the government should take so much away from those who are working hard to earn a living. I believe this change will hurt Albertan's. I wish the governemnt would spend the 58% it already takes wisely. If we can't get by with 58% whose to say we can get by with 63%? Are we a social state? |
| RRE0255 |
The ignorance of the Provincial Government in bringing this forward at this time is operating with the blinders on and totally ignoring the hammer the feds dropped last October 2006. This industry has already started to shift and has slowed considerably since that event and the threat of further decreased margins on a mature industry is ludicrous. The authors of the RRP are not industry people and do not recognize just HOW difficult it is to make money from oil and gas. They all, along with too many Albertans think it is a slam dunk, when in fact it is very difficult. The government with its current surplus and largesse does not need to stir the pot further at this time and my recommendation is a total backoff and allow for some adjustment to the feds intervention and then perhaps tweaking the royalty issue wherever it is appropriate late, BUT, I do know right now is not the time. tks [Information Removed] |
| RRE0256 |
The petroleum inductry is not just large companies which the public wants to believe but rather comprised of smaller companis that are founded and run by Albertans. The regulatory requirments and public consultation process has made it very hard a ndcorrespondingly costly to do business with an increased royalty on the gas sector which is where most of these small compnies are working be it higher impact wells or lowere delivery wells will drive these Albertan out of business or out of Alberta. With the Canadian dollar as srtong as it is it is easy to go tothe stated this of course means it will be hard for these small Alberta owned and based companies to attrack capital possibly distroying te ability of the average Albertan to be invloved inthe oil and gas business in Alberta. Alberta was and is build by risk takers and entrepneurs I would be a sad day to see the royalty structure run these people out of Alberta. I do not support any chanc e to the gas royalty and would see any slow down in the economic development and the oil and gas industry activity a direct result of this governments actions. With low gas prices this is a time to support the gas business and in turn support the Albertans and their communties that make their living from the gas business through their capital commitment and job creation. |
| RRE0257 |
Dear Sir, I am writing you to express my concern about the possible adoption of all the recommendations of royalty review panel. From what I have read in the media and write-ups from investment bankers, to listening to oil industry executives, all have indicated that adopting the panels recommendations infull would be a disater economically for Alberta. All of the parties mentioned above said that there is room to move. I think from what I have read of the review, that the panel got a lot of things wrong in their analysis. I also think that, they looked at the royalties issue in isolation and not from the bigger picture. I would ask that you look at this a second time and have the industry particapate to a larger degree than what was originally done. We need to get this right so that the province gets its fair share but leaves the industry vibrant and continuing contributing to Alberta's prosperity. Respectively, [Information Removed] |
| RRE0258 |
"The question is will Premier Ed Stelmach have the vision to create a sustainable future for Alberta oilsands and accept a substantive bitumen tax?" Van Meurs Adding the Van Meurs's comment: "Will the Premier act in the interest of Albertans or vocal oil companies?? We will see. |
| RRE0259 |
It should be 50%. |
| RRE0260 |
I am in full support of collecting our fair share of the royalties, as the royalty review and more recently the auditor general suggests. For too long oil companies have been making gigantic profits as infrastructure needs and salaries of public employees take a back seat. It is with amazement that I read that EnCana with a profit of $6 billion last year, makes threats to curb back investment. Maybe investment should be curbed back as they are exploiting and exporting a non-renewable resource. I only hope this government has the courage to make a desicion which is in the best interests of all Albertans, not just the oil company CEO's. |
| RRE0261 |
I believe that if oil and gas royalties are implemented as recommended in the Royalty Review Report, it will be harmful to the Alberta economy. The energy industry drives the Alberta economy and the negative impact of implementing the report will be far reaching; harming our province economically, rather than giving the province and its citizens their "fair share" as the report has indicated. Please carefully listen to the concerns expressed by the energy industry in considering a forward plan. We must be cognizant of the delicate balance between encouraging ongoing investment in our province and "biting the hand that feeds us." Thank you. |
| RRE0262 |
I am strongly im favour of the royalties being raised to a more realistic level. I represent a Seniors organization and we have spoken out over the last few years about the rising costs and fixed income of seniors. The government cut many seniors over the years and we still want the reinstituation of the Municipal seniors educations grant. Having more income from the oil and gas wealth available for many social programs would be making good on the promises made to seniors in the mid 90s. Remember a promise is a promise. [Information Removed] Calgary. |
| RRE0263 |
This decision could have a very drastic effect on the whole country. not only the people that work in the oil and gas industry but everyone benifits from the large income from the extremly hard work we do. to make a decision that would pretty much ensure drastic job loss would be very unsuitable. i didnt work this hard and spend this much time away from my family to now be spending my investments(or what will be left of them) on just trying to get by. please look at the people involved and act accordingly!!!!! |
| RRE0264 |
My 2 cents. It is my understanding that this proposed royalty regime would put us in the middle of the pack globally. Even if it puts us at the top end oil is still the most precious commodity in the world. If one company moans about how hard it is there is a dozen others that will gladly take their place. What else is the oil industry going to say other than how dire the consequences would be. They hope they can hoodwink us with words into saving them a couple of billion when its proven in other juristictions they can still make money under a tighter framework. And again even if there is a dip in investment it would be a good thing as every group in the province but the oil industry wants a slow down in this overheated economy. Lastly we must remember that oil is disappearing, which means it gets even more valuable which means that there will ALWAYS be somebody willing to extract it at almost any cost from anywhere. Yours Truthfully, [Information Removed] |
| RRE0265 |
The current boom in construction we are experiencing now in the province is directly due to the fact that we are an attractive investment opportiunity for foriegn and domestic companies. I hope that before the provincal government passes any hikes in the current royality program that they consider the domino effect this could have to all sectors of buisness in Alberta and throughout Canada, we do not want to see a return to the blight of the 1980's. Some money coming in is better than none, don't get greedy. The government has stepped in to stave off labours requests for higher compensations, why should they be any differant don't be stupid, we need our jobs. |
| RRE0266 |
The imoact of a Royalty increase would be catastrophic. Do you know how many buisneses, people, jobs will be affected...millions. You want more royalties to better Alberta...well thats a joke. The oil and gas companies are Alberta, they provide jobs that pay enough to keep the average household afloat. They provide better benefits to all their employees. What do you think will happen to the economy? It will NOT prosper, but fall into a debt. More people will be on welfare, EI, mortgages will forclose, no funding will be provided, and lets not forget all the donations that are made to construct our economy. You want all these royalties, I think you should give your head a shake and for once think of the big picture for there is more at stake than you wnat to realize. |
| RRE0267 |
20% is way to much to ask considering the cost asscoiated in drilling a gas well and the taxes paid to the goverment for doing so,not to mention the natural gas prices being so low.the goverment is being to greedy,I dont think you realize the commitment hard work & personal sacrfice the oil industry demands out of it's workers. Who is the goverment to reap the rewards .What has the goverment done for oil campanies and its workers nothing but take. who is going to suport the familes of oil workers who lose there jobs because of this greed ? this province wil see the devasting effects when the oil patch comes to a hault seeing how it is albertas back bone with out oil gas alberta is nothing! you can dazzle the puplic with your B.S but your not going to dazzle the hard working men& women of the oil industry. |
| RRE0268 |
As a native Albertan for 51 years, and a second generation oil field services business owner I have benifited from the Alberta ADvantage The advantage has come through opportunities to work hard for oil and gas companies, our customers. Through this I have received my fair share, and my fair share has allowed me to pay millions of dollars in taxes and employ hundreds of Albertans who have also paid significant tax because they make a very good living. My fair share has allowed me to buy and sell oilfield related companies, start new ones, and close bad ones. My fair share and hard work allowed me to win [Information Removed] for impact on local economies. These economies are small town Alberta, Blackfalds, Coronation, Provost, Brooks, Innisfail. I have encouraged other women (some say inspired) to work in the "oil patch" where the work is hard, but rewarding. I was planning to leave the family business to the third generation, my son. Our customers have said this will not be possible if the Alberta Government acts on the recommendations of the royalty review report, as we will have no work. Why would the Alberta Government want to take responsibility for taking away the next generations opportunity to work hard and receive their fair share? |
| RRE0269 |
As a taxpayer I wonder when enough will be enough for our greedy government. The whole concept of more royalties being for the benefit of taxpayers is ludicris. We have had record surpluses for years now and now that's not enough?!? How about being a good steward with what you have while lowering taxes. This money grab from oil companies will only hurt our economy as opposed to help sustain our grow which is where your attention should be focused. No I don't work in the oil industry, I work in forestry so there is now conflict of interest. If you want Oil companies to share the wealth give additional tax credits for social contributions and we will all benefit. Regards [Information Removed] |
| RRE0270 |
It seems to me that the information that is supplied by the review panel may not be understood by average everyday people. Most people do not realize the final out come will be less money in every Albertains pocket. So before any recomendations are inplemented and irreversable problems arise we need to assure all issues are delt with. Thks. [Information Removed] |
| RRE0271 |
i would just like to say that as a voting Albertan this review makes little sense. if the oil companies are taxed more and stop doing business in Alberta there will be less money for everyone concerned. i understand that as a government you must come to a agreement with big oil, as a young family in Alberta do not put my job at stake. |
| RRE0272 |
Dear Mr. Stelmac Why on earth are you asking for feedback from Albertans? Is it because if a majority of Albertans say "more money for us" you will realize that it might cost you an election. Most Albertans do not have a clue what is involved with the cost of doing business in the oilpatch, or the fair amount to charge. Please base your decision on what is fair, remembering that not all of Alberta oil companies are in Ft. McMurray, many of them are companies in our local towns and communities ( I am from [Information Removed]) that do not have a tight budget. For goodness sake, Mr. Stelmac, stop worrying about the noisy people and listen to what is fair. [Information Removed] |
| RRE0273 |
Unless someone can make a cogent argument as to why Alberta's royalty structure should NOT be in line with the worldwide marketplace, the answer seems obvious. Lower oil company profits, or a slowdown of the overheated Alberta economy ,don't seem to me to be reasons to reject the conclusions of a panel of independant experts. |
| RRE0274 |
I am worried that your government is more interested in playing politics and improving Ed Stelmachs ratings than honestly doing what is in Alberta's long term best interests. Its a great political move to take on those 'fat cat oil companies" as the average Albertan unfortunately has little understanding of how the oil industry works but is happy to express their resentment or jealosy of the incomes earned by management. Do they even know that most oil profits are reinvested in the ground??? Notwithstanding my scepticism of the process I submit some comments and ideas: If not for the Alberta advantage, which attracted the oil investment in the first place, this province would be part of Canada's have nots If not for the courage and initiatives and entrepreneural skills of investors, employees in the oil business and management , our resources would be merly assets still in the ground. Government is not prepared to expose themselves to the investment risk so it is left to the oil companies to do the "dirty work". I believe that the average Albertan and many in government have no concept of what this means. When your predecessor had the opportunity years back to support the building of upgraders which would have been risky and cost many billions then, but would have been paid off by now and generated billions of extra dollars to our province, he did not have the vision or courage to proceed here. Imagine the billions that have been lost because of this. Fortunately it is still not too late although costs have risen exponentially since then, it still makes sense to go this way. The panels recommendation of a 5% credit does not go far enough. We need government to step up to the plate and either make this a meaning ful credit and also build or guarantee the funds , so upgraders WILL be built. Our future is in the oilsands and for us to "be hewers of wood" and sell our bitumen at discount prices to others who have little risk and just process our oil, borders on the criminally negligent Oil companies are financed in large part by investors many of whom are Albertans and so many of the benefits the company earns is passed on to these Albertans in the form of dividends and capital appreciation, which are passed back in part in taxes. So whilst your panel may see a tax/royalty leakage directly from the oil companies, the government and hence the rest of Alberta is still ireceiveing their"fair share " in taxes. I would assume, many Albertans have RSP accounts and the majority would have mutual funds in which the energy sector would be a constituent including well known names such as [Information Removed] etc., . So Albertans again have a direct stake in the oil industry and benefit here when the comapnies are successful. Preparing for retirement with sufficient funds which in part is achieved through the investment in our our oil comapnies takes away a huge burden from you , our government who would have to subsidize or support these citizens... I see no recognition here of the benefit to Albertans. In many cases some of the "oil companies" as well l the services related thereto are small Alberta operations owned and run by Albertans, who have risked their money in this business. The proposals for these companies will be so punitive as to put some out of business or have some shut in marginal wells. Already the drrilling and service industry has purportedly laid off 10,000 workers and with rig utilization rates at less than 50%, more taxes is just another nail in the coffin. the blow to our junior industy from the low gas prices and income trust debacle cannot be understated. No differentiation or investigation was made by the panel between foreign and local ownership. I believe this was a paramount mistake. there is a large difference between profits that leave the province and those that stay. An idea would be to retain the royalty rate at 20% after payout provided the net profits are reinvested in Alberta. If the funds are sent out to foreign investors or foreign head offices, then there should be an progressive tax charged moving up to the proposed 33%. again what the panel and the average Albertan seems to ignore is that the majority of profits generated by the oil companies are further reinvested here, unless you make it not worth their while. It is a fallacy to just assume investment will continue to flow here just because we have " a stable government" Stable government means reliable as well and this should be borne in mind. The stable government theory and huge oilsands reserves have to be compared with other environments that provide cheaper labour, more hospitable terrain , better weather conditions etc so its no automatic that investment will just flow here. Even a small loss in new investment, will over time negate any additional funds from new royalties/taxes. I suggest there should be a correlation between the Candian Dollar/ USA dollar and a formula for calculating an average netback and when this netback reaches a threshold equating to a super profit ( or certain return on equity) , then an additional royalty should be charged. However, this Royalty tax should not be used for general purposes but be specifically designated for the Heritage Fund. The proposed removal of existing agreements is both illegal and stupid and will provide the legal fraternity with field days at huge costs to the tax payers. This would include timelines on leases . Their prosal to move it from 20 years to 6 years in the oilsands really gave me another jolt as to the credibility of the panel. Not only was the government paid billions of dollars for their leases based on stiipulated timelines and with the shortage of labour and resources and huge construction costs already adding more strain , can you imagine the nightmare (even if it was legal to change the terms) to change the timeline. Another point missed by the panel was in not including the revenue brought in by the government for the oil leases. if these numbers are included with the royalties, Albertans are getting a pretty fair deal.The costs to investors or funds generated by the government from our oil leases compared to other jurisdictions is incredibly lucrative and I believe that it is naive to assume that this free money windfall will continue unabated when more taken by government on the other end. So In conclusion, my scepticism allows me the latitude to still be hopeful as I believe that I understand the process> Pick a panel with no real industry experts or heavyweights who will come out with the worst possible outcome for the oil industry. Score points with voting public In rides Ed Stelmach, who will not be bullied, to pick some and choose from the list of suggestions> Thus he show Albertans that he is the boss and the oil industry does not control him. score more points with Voting public And the oil industry sees the choices Ed Stelmach makes as reasonable and although they have a very slight bloody nose, they have not been laid unconscious with broken bones. score points with voting oil industry and continue to receive financing for conseravtive party. And all are happy for a while!!!!!!!!!!!!!!! |
| RRE0275 |
There is no reason to rise royalty, as a albertian opinon. this will force people leave alberta, damage our job market, destroy out real estate, a lot of people will be homeless, jobless and hopeless. Do not need to rise royalty. |
| RRE0276 |
Be more thorough in your research before changing the rules. Billions of dollars in royalty income and investment money isn't something that depends on one report. Ask around, take your time and watch how the industry reacts to pricing pressures with current royalty structures. Are we willing to lose it all, just because it seemed like a popular idea? |
| RRE0277 |
We need to put "our money" into infrastucture, schools, hospitals, health care, child care, heritage fund etc., not give away "our money" to the oil companies. |
| RRE0278 |
I have reviewed the Royalty Review Report and have the following comments. I think that the panel should be commended for the work they have done, and they have certainly brought a lot of good recommendations forward. But, in reflecting on the material - I have 4 points to make: (1) The total take for Albertan's compared to other jurisdictions still appears to be much lower than for other places. (2) Continue to manage better, through a new organization as was indicated in the file (an organization to manage and address the policies related to Oil&Gas revenue, collection, and audit); this organization should be arms-length, non-political, and have leading experts as indicated in the file. (3) Separate from the report, but related - given the importance and scale of Oil&Gas in Alberta, we need to have a means and program to take some of the revenues from Oil&Gas and specifically target investments to higher value developments, economic diversification, and investments that reduce overall dependencies on Oil&Gas on our economy. (4) We need to have a means of clarifying and addressing the underlying environmental impacts on our province and manage this better as well. |
| RRE0279 |
I would like to voice my grave concern about the dire consequences should the royalty review report be made a reality. I believe the report is fundamentally flawed. The first issue for me is in the comparisons to other regions. The point that this fails to consider is the typical return seen in the Western Canadian Sedimentary Basin. There has been independent research done that shows that Canadian projects have the lowest rate of return of any region in the world. Other places can afford to have higher royalties, but in Canada, raising royalties makes many projects uneconomic. Merely comparing the government's take from region to region is completely foolish, as it does not consider the multitude of factors that go into a company's decision to invest. As I have mentioned, there are a multitude of independent studies to demonstrate the lower returns, it is not merely 'whining' as one panel member put it so maturely. My second concern is that the industry is already witnessing a severe slowdown in activity. There was a published report recently that over 10,000 oilfield jobs have been lost so far this year, with an equal number expected to follow through the remainder of 2007. Along with that loss of jobs comes a loss of spending and direct taxation seen by the government. The slowdown is expected to continue with sliding prices, further impacting the economy as a whole, not just the 'rich' oil and gas companies. My third concern is that the estimated 2 billion to be gained in increased take will be more than off set with reduced capital investment, drilling activity, and employment. It is all part of the cycle. An independent investment firm estimates that $26 B of oilsands projects will be cancelled. That is just the $26 B of capital investment, let alone the jobs, royalties, taxes, maintenance costs and so forth that the initial investment provides every year! It is also estimated that over $6 billion in deep well drilling will be lost, with the same outward spiraling effect shown above. The assumption that the level of activity and investment will remain constant, and that the people of Alberta will see an incremental $2B is falsely conceived. In effect, you will be getting a bigger piece of a much smaller pie. Finally, I feel that many people underestimate the impact of the oil and gas industry on the whole economy of Canada. I feel that the government is willing to act on the report based on popular opinion. Unfortunately, in this case, popular opinion is grossly misinformed. I feel this misinformation has come from the review panel, and ultimately from the government. In summary, I feel that the implementation of the report will be simply devastating to the people of Alberta. Sincerely, [Information Removed] |
| RRE0280 |
Though I’m hopeful and confident the Tories will do the right thing, I wanted to go on record and state that I will certainly NOT vote to keep a government that puts the panel’s royalty recommendations into effect as-is. The report is fundamentally flawed and the economic impact would clearly be devastating. |
| RRE0281 |
As an oilfield worker I have noticed the decline in drilling activity over the last 12 months. This looks like another down cycle in the oilpatch. Why would the government encourage further decline in activity conseqently employment? It is certainly not to create jobs. If you were going to get greedy as most governments do why didn't it happen 2 years ago at the peek of the boom. A busier oilpatch is better econmics than bigger royalties. [Information Removed] |
| RRE0282 |
Surely the Premier will not implement the report recommendations as presented. By focusing strictly on the royalty "take" for government, the panel missed the bigger picture by ignoring the contribution that the oil & gas industry makes to Albertans overall. This contribution dwarfs the royalty issue. |
| RRE0283 |
As someone who is working in the upstream oil and gas industry, I fully support the recommendations of the Royalty Review. In my job, I review and propose various oil and gas developments for an oil and gas producer in Alberta. The people of Alberta could get their fare share of this non-renewable resource that belongs to the people and not to the companies that have leased the mineral rights. Under the current royalty regiment, private oil and gas developers are getting far more than their fare share. The evidence is all around us in a overheated economy with a rampant shortage of labour and increasing inflation. No one should be surprised that oil and gas companies are operating in a mode where they execute only economic projects. If royalties are raised, some projects will be cancelled. In the current economic environment that's a good thing! By raising royalties, Albertans can get their fare share and ensure that our resources development is done in a responsible fashion. Out of control development will lead to mistakes that will cost Albertans dearly. Out of control development also increase the possibility of over-investment leading to an economic recession. Please follow through with the Royalty Review Panel’s recommendations. |
| RRE0284 |
Absolutely the royalty stucture needs to be simplified and Alberta needs to charge subtantially more royalties on oil/mineral developments. And they better be tied to the price of oil! 5 years from now we will look like idiots if we don't, because by then every oil company will be marching to Alberta to claim a stake in the oil sands. There just aren't any good oil discoveries left in the world, especially in a politically stable region with a good labour force. In the near to medium future there is going to be tremendous pressure on Alberta to increase the pace of oil sands development. This will come at the expense of our environment (to what degree will depends on our controls). The oil companies may be screaming, because that is what shareholders expect them to do in a situation like this, but believe me, they will come regardless of how high our royalities are. It is extremely important that we tie our royalities to the price of oil!!! Also we should consider that part of the royalty structure dictates that a certain % of the oil extracted must be sold to Canada. We better start thinking about looking after ourselves in Canada, and Alberta better start thinking about take care of the rest of Canada also. Call the bluff of the oil companies (how many billion $ worth of new development announced this year?) Don't loose sight of how very precious this oil really is to the world market. |
| RRE0285 |
I have landed a good job in an oil and gas company. This review makes me nervous - in fact, I feel quite afraid that this action will take away my job. I went back to school during the last downturn in Alberta. When I finished I could not get a job in my field. As a single parent I worked 3 part time jobs for a few years until I finally got a position in my field. Since then I have worked hard to get where I am. I don't want to have to halt my career prematurely before I retire. I understand that implementing this review will cause a lot of changes and the reality is the funds that this report claims it should get won't be realized. I doesn't take much to figure this out. I appreciate you listening to my view. |
| RRE0286 |
When you look at the total salary in 2005 of people like [Information Removed] it isn't hard to determine that there is way too much money in the lucrative oil industry . It is about time the Province of Alberta (and all citizens of Alberta) got some benefits from the Industry rather than just the pollution. Increase the Royalties and be "fair and in the Public Interest" instead of the current situation which is so lucrative for the few in top positions. |
| RRE0287 |
Your statement last night was in true political style, BLAH BLAH BLAH BLAH BLAH!!!. You drag your feet and avoid taking a stand on anything. It is both sad and pathetic the state that our governing bodies are in. Both provincial and federal are so far gone I am embarrassed to say I am apart of this once great country. |
| RRE0288 |
Alberta's fair share: If these recomendation's are adopted alberta's fair share will be alot of bankrupt people who will lose home's,car's and possiblt their family as tension's will rise in our home's.Alberta has done well the way thing's are and we would not have what we have if it were not for the busy oil industry.Auto dealer's will not sell as many vehicle's,Carpenter's will lose their job's as no one will build home's,Business will close their door's as there is no money to be spent on the little perk's we have come to live with as a result of the busy oil patch. We all seem to forget the 80's when the federal liberal government wanted more of the pie.It took Alberta a very long time to recover from that slowdown and many people lost everything they had then and will again this time.Alberta's NDP &Liberal parties will talk the talk but if elected they will not walk the walk as they say because they also know what would happen if the new royalties are brought in.The oil industry has made Alberta the envey of Canada let's not lose that just to get a couple billion out of the oil companies. These are the people who feed many of us Albertan's in some way or another. You do not need to be in the patch to benifet from them.The oil companies are not bluffing and please don't think that smaller companies will step up and take over from the big boy's as they don't have the money to spend like the big boy's' Please do not make changes big as the econemy will go down with the people...Thank-You |
| RRE0289 |
The [Information Removed]respones to the royalty report was appalling From a company who where practicly given the [Information Removed] rights, a company who gave their CEO a 5 million dollar Christmas bonus a couple of years ago!! What a unproffesstional respones. As a Alberta tax payer I want [Information Removed] charged with 30% Royalty instead of the proposed 20% for such a childish respones. |
| RRE0290 |
CBC reported today that [Information Removed] threatens to pull $1 billion of investment from the province if increases royalty rates - I would say LET THEM. Do they think noone else is willing to buy those resources from us? [Information Removed]and many others will continue to line up for opportunities when the price of oil is over $80 a barrel. |
| RRE0291 |
I don't know all the details about this royalty review but what I do know that if Encana says no to this proposed plan that will shut down the oil patch here in Alberta and with that end thousands of jobs for us that work in the various oil companies. I don't see how we as a province will gain anything by losing our jobs. But like I said I haven't heard much but rumours from around the patch. I know that cities like Medicine Hat, Ft. McMurray, Red Deer and so forth will not gain anything. I live in and work out of Medicine Hat and if this goes through I will lose my job along with all the other people at my company and all the other companies will do the same thing. Explain to me why we never had a scare like this with Ralp Klein and now all of a sudden I am at a risk of losing my way of life. What do you guys plan on doing for someone in my position? Am I to go on unemployment because my provincial government got greedy? Everything was fine before, we were the backbone of this countries financial situation and now with one swoop we will become the laughing stock of the free world. Maybe this is a pretty drastic comment but that is how this will affect me and my family. Is it our provincial view that we should fix something that isn't broke. I think this is a very stupid idea and hope that our government does not allow this to happen. You guys are there to help us and stand up for us not take the food from my families table. |
| RRE0292 |
I support the present administrations decision to review and raise royalties for energy resources. The economic growth the oil companies have seen, needs to match the level of compensation to the Province. This type of growth obviously ways heavy on present infrastructure. I also don't mind a slight slow down in the investment and subsequent production of oil and gas in Alberta. This type of approach might actually leave something for future generations. [Information Removed] |
| RRE0293 |
I am so upset with this government! I am not sure what the motive was behind this royalty review decision - but it sure was not about what is in the best interest for the people of this province either short or long term. The trickle down effect will be a disaster. Do you realize how many people will lose their job? How many businesses that will no longer exist because the cash flow will come to an uprupt halt? This could very well be the end of the conservative party in Alberta. I for one would never vote for you again if I lose my job because of this unintelligent decision based on flawed information for who knows what motive! Many years ago, Saskatchewan lost out on being the oil province because the socialist party did not want to give concessions to big companies. Well - this Conservative party is looking alot like a socialist party right now. |
| RRE0294 |
Is the trade off between higher royalties and taxes worth the change? Does the Royalty review take into consideration that if the increase in royalties has a negative impact on the oil and gas industry there will be job losses greater than we are presently seeing in this downturn and the Province will loose a greater amount of income from people not working than its gaining from the increase in royalties. Over the past year the industry has seen the Trust ruling, the abolishment of ARTC and now a possible increase in royalties, the industry isn't in that great of shape. You would be better off instituting shallow rights reversion on Crown lands forcing companies to either develop the asset or let someone else do it. This would increase production which would increase the royalty take and also increase employment which would increase the tax take. Also why weren't there industry people on the panel so that someone with hands on experience could have input into what the possible ramifications of this action would be? |
| RRE0295 |
The proposed royalty changes will be a crippling blow to Alberta's Oilsands projects. |
| RRE0296 |
To McKay MLA Gary Mar: From: [Information Removed] After a reading the Royalty Review Final report and thinking of the consequenses the implementation of its recommendations will have on the Alberta/Canada economy I decided to express my viewpoint on the report. I believe that the impact of such dramatic changes to the royalty regime will have a devastating impact on the Alberta Oil and Gas industry. We already are at very low activity levels compared to previous years. Many oil companies are cutting back on drilling programs especially on the gas side. Most unconventional gas like CBM and tight gas drilling has been suspended. Some of the largest oilsand projects in progress hae been planned based on the current royalty regime where, in my opinion, our province and country banefit largely. I believe that the capital assumptions used in the report are inaccurate and therefore should not be used. I am convinced that if the goverment of Alberta decides to implement these recommendations, in the short term the province will benefit from the increased revenue, but in the long run it will drive away possible investors and many projects will be scratched due to poor economic returns on investment. Thank you for your time and consideration! |
| RRE0297 |
I don't know about you Ed, but I need my job, give your head a shake and quit biting the hand that has made this province the envy of the country. [Information Removed] |
| RRE0298 |
I am writing to express my concerns as a native Albertan, about the Alberta Royalty review and the recommendations. As a shareholder in several of Calgary's oil & gas companies, and as a consultant that works within the oil & gas industry, I am concerned that the Premier has not taken the appropriate steps to ensure due diligence in researching the issues and in reviewing data. I am very concerned that the Premier will make decisions that are based on incorrect information that will significantly impact the economy of our city and our province. The ripple effect, I fear, will be felt in all of Alberta's industries (tourism, retail, manufacturing) and will therefore negatively affect all Albertans. |
| RRE0299 |
This is by far the most ridiculous idea i have ever heard of, talk about biting the hand that feeds you! Albertas oil and gas industry is what payed off the deficit and now were going to make it financially unatractive to drill here? give your heads a shake! perhaps if we could tighten up the blatant wast and mismanagement at government run facilities the provence /country would not be in such bad shape! As an individual employed by a trust company i have lost most of my savings to the taxation change that the federal government brought in earlyer this year and now this? NOT HAPPY!!! |
| RRE0300 |
I fully support the recommendations of the royalty review report, and would like to see them implemented at the next budget. [Information Removed] |
| RRE0301 |
I sincerely hope that our premier is smart enough to realize the damage he will do to the Alberta economy if he raises the royalities. It will be a rerun of the early 80's and the NEP! |
| RRE0302 |
Implement the proposals. The resource belongs to Alberta not to Canadian Oil Sands shareholders ! |
| RRE0303 |
There seems to be plenty of talk about Albertans getting their 'fair share' and a perception, mostly perpetrated by the release of this review, that the average Albertan is not getting theirs. I don't work for an oil company, but I am very aware that much of what I have comes as a result of that industries activities. I get my 'fair share' through salaries generated from that industry, rising property values that are the result of the economic boom created by the oil industry, and my investments in the oil industry. That seems like a pretty fair share to me. I also believe that we need to have enough money for the province and municipalities to invest in infrastructure (schools, hospitals, roads, public transportation, etc.). So what is the fair share that Albertans think they should have? Ensuring a reasonable tax on oil sands makes sense; they are the future economic engine of the province. Trying to squeeze further revenue out of conventional gas producers is unreasonable; the costs to find and produce gas and oil in a mature basin are rising and will continue to rise. The economics on gas are marginal right now. So what's the answer? I'm not sure, but this government needs to make sure it listens well to the oil industry and really understands the economics. There have been some rather foolish comments regarding oil industry talk about less investment along the lines of 'if they don't want to do it, someone else will'. No one will develop if it's not economic, pure and simple. Bottom line; don't kill the goose that layed the golden egg, don't pander to those who simply want to stick it ti big oil, because all those out of work people will not forgive and forget. |
| RRE0304 |
Hello...we'd like to discuss in person over coffee sometime...the Whitecourt, AB office for [Information Removed]...pop by...! |
| RRE0305 |
Dear Premier Stelmach: Thank you for the comments and assertions you have publicly made thus far that you will strive to bring reality and a better balance to the royaly structure for resource revenues. Such determination has been lacking for some time and it is gratifying as an Albertan to know that you may be the one to begin protecting the heritage of our children and children's children in the Province. Please stay the course and do not be swayed by the positioning of the oil industry, Mr. Lougheed other other prominent oil men. with gratitude and respect, [Information Removed] |
| RRE0306 |
I do not agree with a royalty increase. Here is one great reason. [Information Removed] plans to cut about $1 billion from 2008 Alberta investments if royalty panel report adopted in full 2007-09-28 08:00 (New York) CALGARY, Sept. 28 /CNW/ - [Information Removed]Corporation (TSX, NYSE: ECA) has conducted an evaluation of recommendations contained in the Alberta Royalty Review Panel Report. If adopted in full, the royalty changes will negatively impact [Information Removed]future investments and operations in Alberta and will have a widespread impact on economic activity across the province. If the proposed recommendations are adopted, [Information Removed] plans to cut its 2008 capital investment in Alberta by about $1 billion, or 30 to 40 percent of the $2.5 billion to $3 billion the company has planned for Alberta-based activity. Most of the reductions would be to [Information Removed] natural gas activity in areas where the proposed royalty scheme makes those activities uneconomic or uncompetitive in its portfolio. The company plans to reallocate capital to investments outside Alberta. "If the Royalty Panel's recommendations are adopted in full, many of Alberta's new and emerging resource plays will simply not be economically viable. These new plays would have formed the foundation for the future of Alberta's natural gas production. Even without that future gas production growth, under the recommended changes [Information Removed] royalties on Crown lands would effectively double, assuming current gas prices. We will have no choice but to slow down our Alberta-based activity and move investments to other areas in Canada and the U.S. that are more economically attractive. As a further consequence, Alberta natural gas production will continue to fall," said [Information Removed] President and Chief Executive Officer. "We do not want this to happen. This does not need to happen. The consequences would be far reaching. We are open to changes to Alberta's royalties - changes that reflect the economic realities of volatile commodity prices, higher costs and the appropriate risks and rewards of long-term capital investments. A royalty system can be developed that achieves Alberta's objectives without so severely damaging the province's future," Eresman said. The proposed changes will have immediate and long-term impacts on working Albertans. The magnitude of the expected capital reductions is the tip of the iceberg. In the short term, these changes would mean extensive job losses across the industry. There will be fewer wells drilled, completed, pipelined, operated and serviced. There will be fewer hotel bookings, vehicle purchases, landowner lease payments, restaurant meals and lower property taxes in the areas where [Information Removed] operates, and that is just about every corner of Alberta, from the smallest towns to the biggest cities. More importantly and over the long term, well-paying, permanent jobs will not materialize across Alberta. "We would greatly regret seeing these job opportunities evaporate. We are Albertans. We care about the people of Alberta and we hope we won't have to make these choices,"[Information Removed] stressed. [Information Removed] will continue to thrive "As North America's largest natural gas producer, we have built an extensive and diverse portfolio of investment opportunities with the flexibility to strategically deploy capital. With a land base of approximately 27 million net acres onshore North America, our depth of inventory means that [Information Removed] will continue to thrive. We will allocate capital across our portfolio in a disciplined and efficient manner. Most importantly, we have developed the expertise and technology required to unlock maximum value from our resource base. Our current projects and emerging opportunities in British Columbia, Saskatchewan, Colorado, Wyoming and Texas offer continued growth potential and strong returns for our shareholders. "Our province faces a great future, but only if we solve the economic challenges together, in a spirit of co-operation and collaboration. We are confident that innovative, creative and pragmatic solutions can be found. That is our Alberta history. That is our Alberta tradition. We have found those solutions in the past and we believe we can do it again. We look forward to the opportunity," [Information Removed] said. |
| RRE0307 |
Dear Premier Stelmach I am very concerned with what your government is doing. The news reports get worse every day! Please accept the recommnendations from the Royalty Review Panel. Threats by oil companies should not be considered when looking after the resources of Albertans. [Information Removed] |
| RRE0308 |
I do not understand how we can have someone who is not an expert or knowledgeable with the risk and rewards of the petroleum industry economics make recommendations which have the potential to absolutely destroy the Alberta Advantage? The oil and gas industry requires huge amounts of capital to develop our natural resources which some of this capital has to come from investors inside and outside of Canada. Investors in Canada are inadequate to be able to fund the capital required. Our national government on Oct 31/07 really hurt the whole oil and gas industry with changing the rules which affected Canada and foreign investors. This negative impact affected the whole oil and gas indusrty with Capital Investment decreasing significantly. This combined with higher Cdn $, lower natural gas prices and elevated costs are already impacting many Albertans and companies with layoffs and companies that will not survive. This leads to less investment, activity, less jobs and is in danger of hurting the whole Alberta economy. If our own Alberta Government then betrays the industry with negative moves on royalties, then we will see a reversal in our economy and our Alberta Advantage. If you make negative changes at this time, I hope you realize that less investment will make our current surplus evaporate. Instead of getting extra surplus, we may have no surplus. Maybe everyone should look at it this way. Ten years from now, do you want Alberta to have a healthy economy and your house to be worth more than it is now, or LESS? If you negatively impact our economy, your house will be worth less!! Please do not betray the citizens of Alberta the way that our national government has!!!!!! |
| RRE0309 |
I think the government should think carefully before raising royalties, as alott of the major players have spent Billions of dollars on oil sands projects with economics based on the current royalities system & should be grandfathered in any royalty changes. I also beleive we have the best economy in North America because we have the royalties that we have today & to mess with that could change the economy drastically & in turn put many Albertans & many Canadians into hardship stituations. Don't rush into quick decisions that could costs us all for years to come. |
| RRE0310 |
I run a business in the Lloydminster area servicing oil and gas wells. We have 25 employees with annual sales of aprox. 5million dollars per year, we focus primarily on heavy oilwell servicing. My understanding is that the government may be planning to change the status of heavy oilwells which would triple the royalties paid to the government. I am not sure if the government has a firm understanding that there are alot more expenses on heavy oilwells in our area that can eat up any oil companies bottom line very quickly. Heavy oilwells in our area have alot of risk of watering out quickly, sanding up alot and needing work overs from service rigs, the oil can not be flow lined for more than 100 feet so the oil and water has to be hauled by truck as apossed to light oil that can be flow lined for miles if needed. I dont think I would be to far off if I said that the average run time on a heavy oil well would be 3 months before needing a $30 000.00 work over with a service rig, as aposed to a light oilwell with a run time of 2 years. The reason I am in business and have as many employees as I do is because heavy oil wells need to be worked on very frequently and costs alot of money. For example if you look at Husky energy you will find that they have aprox 55 service rigs working for them in western Canada and 34 of them work around Lloydminster, this shows how many rig work overs are needed in heavy oil. I will tell you that alot of oil companies already can not operate in this competitive envoronment because they do not have the talented and dedicated employees and the management expertise to make money here. If you raise the royalties to high I would be scared to think what would happen to my business and my valued employees. The province of Alberta has been a great place to live and operate a business, I hope it stays that way. |
| RRE0311 |
I'm writing in disgust at the released panel report that your government seems to be considering implementing. As a conservative MLA I'm very surprised that the entire caucus isn't revolting against Mr. Stelmach. Here are several points you should consider:: 1) What business do you know of that doesn't use up to date costs and overall rate of return in evaluating profitability in determining if money should be spent? Quite frankly if your government can't look at any major investment companies' evaluation of the industry ( both producer and service side) and releaze how tight things are maybe they should take some basic economic courses. 2) It is nice to know that a bunch of academic/advisors can do a simplistic analysis of a very dynamic industry. Perhaps a map and use of jurisdications such as British Columbia and Saskatchewan in their comparisons would havebeen much more approiate then Texas, California and Angola. Quite frankly BC and Sask. have spent years trying to restimulate an industry desicimated by socialist government policies which harper on the concept that "companies can always pay more". 3) If the concept of "drilling fleet utilization" is forgien to this government perhaps using the analog of a factory only using 43% of it's productivity capacity should make warning bells go off that perhaps the profitablity of the industry isn't as juicy as portrayed by the panel. Quite frankly if this is the same party which has made this province the envy of Canada over the last 20 years I'm rather bewildered. Come next election I'll be considering alternatives for where my vote goes and which party is pro-business. |
| RRE0312 |
Has Ed Stelmach forgot about what happened after the NEP? The Royalty Review Report is fundamentally flawed in that it assumes that the same amount of capital investment will occur with the new royalty regime. No doubt there will be lower capital investment and jobs will be lost. The Alberta government might get its dime on royalties from existing production, but jobs lost and lower capital investment in new exploration will more than offset. It will be the average Albertan who will pay with increased cost pressures on labour and services. I would rather the dime be in my pocket not Ed's. Have the conservatives thought about what the impact on voting will be if there are job's lost? Let's not repeat old mistakes. [Information Removed] Has Ed Stelmach forgot about what happened after the NEP? The Royalty Review Report is fundamentally flawed in that it assumes that the same amount of capital investment will occur with the new royalty regime. No doubt there will be lower capital investment and jobs will be lost. This is the first time I have seen the Alberta governement pushing jobs out of the province rather than attacting them. The Alberta government might get its dime on royalties from existing production, but jobs lost and lower capital investment in new exploration will more than offset. It will be the average Albertan who will pay with increased cost pressures on labour and services. I would rather the dime be in my pocket not Ed's. Have the conservatives thought about what the impact on voting will be if there are job's lost? Let's not repeat old mistakes. [Information Removed] |
| RRE0313 |
Increasing the royalty take from the oil industry at this time is the dumbest idea I have ever heard!! The western Canada basin is at maturity and cannnot be economically drained under a more harsh regime. In fact you should be thinking of lowering the royalities on the conventional oil and gas side of the industry. No one is going to invest any more money in drilling additional wells when the government wants more of the pie. Like [Information Removed] said, you get no royalities from wells that don't get drilled. Just look at the active rig count today to see where the industry is, 38% of the rigs operating. If you go ahead with this and decimate the thriving economy of Alberta and throw thousands out of work it will be a tradegy of monumental proportions. I voted for Eddie as premier to replace Ralph, and I am sorry I made that decision. The Consrevative Party candidate in my riding can forget about my vote in the next election, no matter what way you go with this debacle. [Information Removed] |
| RRE0314 |
Please present this to the Premer's advisors. I'm writting as a family man who has the benefit of living in Alberta and working in the oil and gas industry. I believe the Alberta oil and gas industry is fundamentaly driving the Canadian economy, yet is going through a period of significant cost increases (labour, equipment, regulator compliance, etc) and revenue decreases ( CDN $ vs US $). So the timing for discussion about Royalty increases could not be worse.... the process should be done on a known frequency basis ... say every 2 years. I question the aspect of singling out the oil and gas sector for review - as an Alberta tax payer - should we not review the royalties on all other natural resources too? forestry stumpage fees crown land lease fees Royalty fees on coal , bottled water and highway use? However, the point of my note is not to criticize but to offer input.... hence: 1. - all resource royalties should relate to in-province value- added offsets.... if the resource is treated in any manner within the province so it is not exported as raw resource, then the royalty should be proportionately lower based on how much it is treated..... treating provides jobs and job provide taxes. 2. resource royalty should be tied to CO2 emmission .. if the recovery and value-added of the resource is done in a way to reduce CO2 emissions. then royalty should be proportionately lower 3. resource royalty should be tied to new technology development - if the resource is recovered in a way that is proving a new technology then the royalty should be proportionately reduced. Our royalty regime should not be about raising money solely for government spending (We should have a report as to how to reduce this), but it should tie to the quality of life and job opportuinties in Alberta. Thank you for your time and consideration. [Information Removed] |
| RRE0315 |
The current message being sent to the general public is that the oil industry is basically stealing from the taxpayer. What they may not realize is how much the oil industry feeds back into the province not only in royalty cash, but also in taxes and employment which also feeds back to the government in the form of taxes. There is no doubt that the oil industry is making money. However the recent downturn in activity should be a message that the major boom has leveled out. There are many small gas companies for sale due to this and there will be more. I have no doubts as a taxpayer the royalty issue has to be dealt with, but as an oilpatch worker and a taxpayer please don't force a shutdown on this industry. Everyone will suffer from the municipal governments up to the federal level and all Canadians will have to pay increased taxes to offset what the oil industry contributes as a whole. This doesn't just involve the major oil companies, it involves the thousands of people who work for them as well. [Information Removed] |
| RRE0316 |
I very much hope Premier Stelmach has the courage to withstand the pressure the oil industry is exerting in their efforts to continue to rip off the real owners of the oil, the people of Alberta and Canada. There is only so much oil and gas in the world. None is being made. If one company refuses to invest more here, then another company will. The oil companies will continue to make money no matter the royalty tax. Theyll just boost prices.And Alberta provides a VERY safe environment in which to do business- certainly compared to the third world dictatorships with which so many of the oil giants are wont to do business. Alberta is a stable place, certainly compared to Venezuela, Iran, Irag, Burma, Russia, and a lot of other oil-producing regions. Follow the panel's suggestions, and RAISE THE TAX. |
| RRE0317 |
It's about time the alberta gov't started collecting a fair price for our : THE PEOPLE'S resources! The resources of this province is not God's gift to the CONSERVATIVES and their cronies!!! - |
| RRE0318 |
I am writing about the Royalty Review currently taking place in Alberta. As I understand, the Royalty Review Panel proposed a royalty increase of 20% in order to get a fair share of the profit from the oil and gas producers. I also undertand that the actual proposed increase would be about 50% not 20% because of the inaccurate data the review panel used for calculation. From what I hear, the costs of doing business in the energy sector has gone up significantly over the last a few years. It also takes a lot of capital investment up front at the companies own risk of not getting the forecasted revenue. Recently I heard a lot of oil and gas companies will cut back drilling in Canada and invest elsewhere if the proposed royalty increase goes through, simply because many wells would become uneconomic. If that happens, many direct and indirect jobs would be lost. Needless to say, the province will not get more royalty, if not less. We all know that oil and gas sector has contributed the majority portion of the revenue to our province, and everyone has benefited from it for so many years. If we want to continue to enjoy our prosperity, we need to ensure that the oil and gas producers can run their business with a profit. It's obvious that if we want to share a piece of pie, we need to make sure there is a pie. As an ordinary Calgarian, I am very concerned about the potential consequence of the royalty review on the welfare of our province as a whole. I urge you to consider my view and discuss the matter with the Royalty Review Panel and the provincial government. Thank you. Sincerely, [Information Removed] |
| RRE0319 |
I am responding to the recent recommendations to changes to the alberta royalty structure. Ther current structure has helped Alberta become a debit free province and has stimulated the economy to the point where it is the envy of other provinces. All current projects were approved base on the existing royalty structure. To change the rules in mid stream would jeopardize existing and futrue growth. Secondly the recommendations were based on incomplete data and did not include sufficient input from industry. If the reommendations do come into play unfortunately all Albertans will suffer as the current growth within the province and the oil patch will be slowed greatly. |
| RRE0320 |
I have been working in the oil & gas industry for 14 years now and I can't believe what is happening. Everything bad that could be happening is. The gas price, the US dollar and now our government is trying to bring it down. I think that it is sad how you are misleading the people of Alberta that this is the right thing to do. You must be aware of how many jobs will be lost due to this change. How many small oil & gas company will have to shut their doors. How many service companies will go out of business. Remind me again of why this is a good idea? I think that it is sad that our own government is doing this to our province. Us as Albertans already have it pretty damn good with no provincial sales tax BECAUSE OF THE OIL & GAS INDUSTRY. Our province use to be one to envy now our new government is destroying it all. How sad. |
| RRE0321 |
Dear Hon Premier Stelmach, I am writing in response to the findings of your royalty review and the AG report. Mr Stelmach, I am disgusted at the sham of a government Albertans have received in the past 10 years. If Mr Klein had any sort of clue about how to run this province, then these large oil conglomerates would not be acting like they have a gun to your head. I take exception to the hostile posturing these entities are relaying in the media, and if they were paying their fair share of taxes, the provincial debt would have been paid off even sooner. For 12 years I've been paying $44/mo to Alberta Healthcare and what does it cover? Nothing. Basic emergency services. Doesn't even cover the ambulance ride, if necessary. Last time I checked, "free and effective healthcare" was entrenched in the Canadian Charter of Rights and Freedoms. Mr Stelmach, my question is simple: Why do Albertans pay for healthcare when it is in clear violation of the Constitution? Why does this resource rich region not contribute to the state, that provides their secure workforce? How long are you going to continue to [Expletive] me? Sincerely, [Information Removed] |
| RRE0322 |
I would like to take this opportunity to express my concerns with the proposed royalty review. I can’t help but feel that the call for this review is simply a byproduct of high oil prices and high inflation. But what do people and the government hope to gain from raising the royalties. If you ask someone on the street what they hope to gain, they will say something to the extent of,” The oil companies are getting our oil for free! It is time they had to give Alberta its share!” But ask that same person how they will directly benefit from higher royalties and see if they have an answer. They will not have one, and if they do, I fear it may be the incorrect answer. What these people and perhaps some of the government fail to realize is that oil companies are businesses and they are operated with a specific model in mind. I have no doubt, that Alberta may see an increase into government coffers initially, but once the dust settles, we will see less investment and shorter life cycles for current investments. Companies are concerned with the bottom line. Marginal future projects will not go forward, and marginal current projects will shut down earlier in their life cycle. The oil companies have been giving Alberta its share. When the current royalty regime was put into place, the government saw the value of giving a break to companies who invested large amounts of money into projects in Alberta. These royalties were set at levels to encourage growth and investment in Alberta. Now that these companies are seeing the fruits of their labours, we are proposing to change the rules. Essentially, this is extortion. Some projects are too far along with too much invested for companies to walk away. If we change the rules now, Alberta will essentially be holding an oil company’s investment hostage. I can’t help but feel that the review is unfair and opportunistic. Many people see oil companies making record profit and feel like they are not getting their share. If an oil companies are making a record profit, I am willing to bet that Alberta is seeing record royalty payments, employees of oil companies are receiving record salaries (and paying record taxes), retail outlets and service industries are seeing record business and thereby hiring record numbers of employees. This all bodes well for Alberta and the economy. The current economic climate in Alberta is what makes us the Mecca for tradesmen and university graduates and the envy of other provinces. This climate is fostered by the current royalty regime. I hope the government takes into account the damage they will do to Alberta’s economy and reputation if they enact the recommended changes. I have had many conversations with my fellow workers regarding this topic. Many may be writing letters such as this, but I assure you that all of them are concerned for their jobs, families, and futures if these recommended changes come to pass. Respectfully, [Information Removed] |
| RRE0323 |
The primary recommendation of raising the royalty is frightening. Attempting to squeeze the industry for a couple of billion dollars will create an effect identical to the much-hated NEP of 2 decades ago. The flight of capital from the oil & gas industry will drastically impact the lives of Albertans, and also, that of all Canadians. The major industry slowdown that this will create, spells heavy direct and indirect job losses. The knock on effects in real estate, retail, and other sectors will also be extremely negative. Unfortunately, Canada at large, has come to depend on the Alberta tax-base via disproportionate transfer payments. The energy sector slowdown created will also affect this balance, and the Feds will end up demanding more, somehow, to balance their bloated budget, and to meet the insatiable and irresponsible demands of the east. Unfortunately, we will be expected to provide even more, by getting back less. Very importantly, the reccommended royalty grab gives Canada a taint of political instability. Inbound investment will dry up. And outbound capital flight will be difficult to re-claim once started. Finally, the government of Alberta has not demonstrated that it can handle any more funds in a responsible fashion, for the benefit of Albertans. Comparing Alberta's use of funds with that of Norway, and recognizing the inadequate performance of our fund in comparison makes this case obvious. The Alberta goverment has bloated its ranks in self-interest rather than create wealth with our wealth, i.e., the existing royalties earned. In summary, the recommendations are a big mistake. Please laugh them off! |
| RRE0324 |
The review and increase in oil and gas royalties is massively overdue. Albertans have not been getting their fair share from a non-renewable resource. If an increase in royalties cause a slow down in the economy, that is not a bad thing....and perhaps even a desirable thing. This would help bring down some of the construction costs and allow municipalities and the provincial government to catch up with some of the serious infrastructure demands. A moderation in economic activity would help restore some balance in the province (housing costs; wage costs). It is time to ignore the paid talking heads of the oil industry and develop a long term sustainable economy for many future generations....not just the greed of the current generation. It is fine if the [Information Removed]of the world take a break. There is real value in what we have and that value will grow further in the future as international oil supplies decline. A slow, measured growth is good for everyone in the long term. Let the quick buck artists take a hike......these are the kind of artists we really do not need to support with the gift of low royalties. It is interesting how the media/Conservatives went after the federal Liberal government on the sponsorship scandal - that apparently cost Canadians about $200 million. The scandal we have going on right under our noses (almost $2 billion in royalties that have not been paid in the last year alone) is monstrous compared to the sponsorship scandal. The opposition will grab hold of this in the province and run the Conservatives out of their rural strong hold if the government only takes half-baked measures....trying to please everyone. The Conservatives must stand up for Albertans the way the [Information Removed] stood up for New Foundlanders or they will be buried in the dust bin of history. |
| RRE0325 |
All I will say is remember that one in six people are directly or indirectly employed by the oil and gas industry. I recently left a company where the drilling program went from 80-90 wells/yr prior to 2007 down to 20 wells with no increase for 2008 expected. So if revamping the royalty regime is an absolute necessity then do it wisely. Spread it out over several years; span it so it would be a gradual adjustment and not an all at once hard hitter. With recent changes for the energy trust companies and dropping share and natural gas prices, many companies have not yet adjusted. Let’s keep Alberta vibrant! |
| RRE0326 |
I just want to know how anyone in their right mind could think that the royality increase is anything but devistating. Has anyone thought about the thousands of oil and gas rigs that will be shut down, HSE companys, gas companys,excavating businesses, chemical companys,batterys that will shut down, all those operators will be let go, vac truck companys,instrumentation. This is just a tip of the iceberg. For every company, there are hundreds of people-fired.For a town that is dependant on oil and gas, a year and 90% of our town will be devistated. No one affording mortages, no one paying town taxes if there are no jobs, schools shut down small businesses everywhere, hospitals- and the level of health care. It will be the beginning of the end for our province if this happens, and people will move elsewhere. WHO MAKES ALL THE MONEY NOW $$#%*&(&(* NOBODY |
| RRE0327 |
I read the report. Newfoundland, UK's North Sea, and Alaska, all have recently raised their royalty. It is time that Alberta collects the fair share of its royalty. I cannot understand why the industry feels so bad about it. The independent panel is made up of former oil and gas executive and current oil and gas executive. Also, the panel has hired independent consultants to work. Also, the Auditor General's report agreed with the panel finding. Therefore, I find the oil industy argument is not solid. It is time for the Governemnt to look after the interest of ordinary Albertans. Please do the right things so that we can pay for our educational, medical, infrastructure and social services. Please remember that there are no many oil and gas executives and investment and merchant bankers. There are more working people just made it day-by-day. |
| RRE0328 |
Premier Stelmach: As [Information Removed]of a medium sized oilfield service company, [Information Removed], I am concerned about the possible negative consequences of a significant increase in the royalty rates expected of the producing industry. My firm is primarily focused on providing equipment to the conventional natural gas side of the business. However, given how integrated the cash flows are for the producing companies any material change in available cash brought about by an increase in royalty payments will risk a negative effect throughout the industry. I note in the sensitivity analysis provided by the Royalty Review Panel that comparisons were made between Alberta and several US states. Concentrating only on natural gas, we are seeing the reality that Western Canadian natural gas activity is significantly down year over year while US activity remains at or near record levels. And this disconnect in activity is occuring in a common price environment. I would caution that you keep this fact in mind while you and your colleagues continue your deliberation on this issue. I believe I am like most Albertans, including those of us earning our living and employing fellow Alberta citizens in the oil and gas industry, in saying that it is incumbant our elected officials to provide the proper stewardship over all of our natural resources. I would caution you against making an imprudent decision that may have the unintended consequence of reducing the amount of revenue available for all Albertans. I trust you will discharge your responsibility carefully and wisely. Best regards [Information Removed] |
| RRE0329 |
If the royalty increase is approved by the Review Panel, as an Albertan I know for a fact that I will never in my lifetime see a single cent from the Alberta Government come my way. Just think, how long the Ralph Bucks lasted you? It wasn't like winning the lottery. We all had to go back to work the next. Remember the saying "give a man a fish, he'll eat for a day. Teach a man how to fish, he'll eat for a lifetime". It's nice to be handed a fish, but for how long? Eventually we all need to be fishing and most of Albertans have good jobs that is now in jeopardy because of this "stunt" the government has started. So, If this "stunt show" is approved, Stelmach better have an abundant supply of Fish and are big enough to support the Albertans and their family when they loose their job. |
| RRE0330 |
I would like to make a comment to address the final report from the Royalty Review Panel and its impact on Alberta. I do not feel that the Panel has accurately estimated the base capital costs used in their argument. There is a huge cost to oil and gas development that was not accurately reflected in their findings. Please refer to CNRL's presentations to the Panel for a much more accurate representation. My opinion and fear is that increasing royalties can only result in one thing: An immediate surplus of funds to the government initially; followed by a huge decline in oil and gas exploration and development, resulting in lower funds to the government as well as less jobs for Albertans and Canadians alike. Oil and gas producers are in this business for mainly one objective: profit. If this profit margin is significantly reduced, it would be foolish to think that these companies will sustain their exploration/development and production. Oil and gas is an attractive industry to be employed. Let's keep it that way. This decision can and will impact the lives of Albertans and Canadians alike. I ask you to please consider the greater good of our economy and our people. Please do not make a decision soley based on finances, as there are many, more severe repercussions. |
| RRE0331 |
We are a young family of five and love to say we are Albertans. We reviewed the royalty review report and have concerns. It seems as though this decision will be based more around politics and not on sound fundamentals and the sustainability of our province....this scares the [expletive] out of us!! It is very difficult to understand how the province will benefit a dollar, let alone $2 billion, with the proposed changes. The cumulative financial impact across the province will far out weigh the potential increase in government take. And once the oil and gas industry reallocates their capital budgets we question if we will even benefit when you look at net royalty revenues. The report seems to be developed on a foundation of historical figures. We all know that we have seen radical changes throughout our province, including the oil and gas industry, the past 24 months and it would only make sense to reflect our current environment and drivers that make Alberta what it is. Let's not shoot ourselves in the foot and structure ourselves out of the global marketplace. We were not living here in the 80s and we certainly don't want to get a taste of what it was like now. [Information Removed] |
| RRE0332 |
during the winter drilling season of 06-07, a rep from [Information Removed]came to all the rigs. he informed all workers that the 07 summer and 07-08 winter drilling season would be cut back by 60%. this was months before your report regarding royalties was published. i find the oil companies threat of cut backs, to be old news with little relevance to the royalty debate. it is time to pay a fair share |
| RRE0333 |
I believe in cases that involve jobs, there should be a second review to ensure that numbers reflected in the first panel are accurate. Is 20% accurate |
| RRE0334 |
I am writing to voice my concerns as an Alberta citizen, a voter and as an employee of an Oil and Gas Company. I am very concerned about the possible disastrous effects that will occur if the Royalty Review Panel’s recommendations are implemented in full. This would have a negative impact on my livelihood and the financial and social wellbeing of my familly. The Oil and Gas Industry has stated that there is some room for increase in royalty rates but not to the extent outlined by the panel. I urge the Premier take this into consideration and work to find a compromise and protect the industry that drives the economic wellbeing of this province. Regards, [Information Removed] |
| RRE0335 |
We are totally in agreement with the recommendations of the Royalty Review. It wouldn't hurt to have a bit of a slow down (like it would!). [Information Removed] |
| RRE0336 |
I am in total opposition of the current Royalty Review Format. I obtain 100% of my annual income from the Oil & gas sector and have been informed that if adopted in full, my job/services will most likely be not required and will be out of a position I have worked hard to achieve. The Klein Government used Oil & gas revenue to abolish the provincial debt & give money back to Albertans, that is a legacy I can deal with. If the Royalty Review is adopted in full, I fear the Stelmach legacy will be forcing thousands of people/businesses out of work and forcing billions of dollars out of Alberta to other provinces & foreign investment. I am born & raised Albertan, have voted PC all my life and have never doubted our government until now. If current review proposal is ratified and my life/livelihood/employment is seriously disrupted, I will most likely reassess my political views & position to another party. |
| RRE0337 |
While the royalty report is a step in the right direction, I believe that the suggested royalty increases remain too low. When compared to countries like Finland, who has substantial oil-generated savings and much higher royalty rates, even the new rates are uncompetative. Alberta has been called the #1 home for accessible (by companies; IE: not government controlled) oil reserves in the world. Raising royalty rates to match the recommendations AT MINIMUM will certainly not affect investment in the province. The oil companies have nowhere else to go where they can invest in oil projects of the magnitude that we have in this province. At worst it will slow investment to a more moderate pace, which would be better for the long-term economi good of the province anyways. |
| RRE0338 |
I'm very concerned about the state of the Alberta economy should all of the royalty review recommendations be adopted. We have a thriving, growing economy and if the royalty recommendations are put forward I believe the investment and growth that we have seen in this province will slow down significantly. I'm concerned about my job security, my children's and their respective boyfriend's who are all employed in the oilpatch. Less drilling will mean fewer employees are needed and layoffs will be iminent. Many oil and gas companies have stated their opposition to many of the recommendations because of the inaccuracies of the report. Do we want as a province to impose our very own "NEP"? Oh how soon we forget the turmoil that was caused by the Trudeau government. Now the Government of Alberta wants to create their own nightmare. Every person working in Alberta has gained financially because of the prosperity of the oilpatch. In every sector of business there has been prosperity created because poeple have money to spend. Everyone benefits when the economy is booming. I believe the general public sees oil company employees as greedy, over-paid "fat cats". This simply is not the case. The raises most of us receive are 3-5% cost of living increases and minimal stock options, if we're lucky enough to get them. The bottom line is if the oil patch is not in a healthy state, neither will this province. If Mr. Stelmach proceeds with the Royalty Review as it currently stands, he will see a huge fallout from this. Companies don't need to invest their capital in Alberta, there are other provinces that would love to do more business with us. We can also choose to invest more capital in the U.S. and internationally. If we invest less in this province, the royalties that you so desperately want and supposedly need will not transpire. Our threats are not empty threats. If anyone is greedy it's the Alberta Government. Where did the surplus that Albertans now enjoy come from? "Don't bite the hand that feeds you." Respectfully, [Information Removed] |
| RRE0339 |
I think that the Royalty's need to be increased but not at the expense and lively hood of my family. A paycheck in my account is better then more money in a fund that doesn't feed my family. That said, Ed needs to work with the oil company's and find a solution that works for everyone and my idea would be to increase it a small percentage per year over a # of years until we reach the % we need to be at but also ensure that this problem never reoccurs and is fixed once and for all. My family has been personally affected by this whole report because Ed hasn't made a decision and my brother's company is entering bankruptcy because he and employees haven't worked enough in the last 8 mths or more since the royalty's came under review. |
| RRE0340 |
Remember what the Liberals bright Idea cost ABertans. This propsal will cost the public the same way. |
| RRE0341 |
The royalty report quite frankly is very disturbing. As the President of a junior oil and gas producer the implication that we are not contributing our fair share to the Alberta economy is insulting. We employ 11 Albertans on a fulltime basis and numerous consultants and service sector employees throughout the year. With current natural gas prices the risked economics to develop conventional reserves is currently marginal at best. I know that for our company, one that is on solid financial footing, even prior to the Royalty review panels release we were likely to defer substantial activity over the next 12 months. If the proposal is adopted in its current state we will defer activity for a longer period of time. The review panels suggestion that the energy sector is not contributing its fair share to Albertans is extremely narrow minded, for example how many Albertans have seen the value of the homes escalate dramatically over the past 5 years, do you not think that the high activity levels in the oil patch have not been the driver for this? Is that not part of the overall 'take' Albertans have gained from a successful industry. You have something that's worked and create enormous wealth in Alberta for Albertans I hope you don't [Expletive] it up. Regards [Information Removed] |
| RRE0342 |
My husband was born and raised in this province, I have called it home for the past 30 years, my children were born here...who are these so called "Albertans" that have suffered so much? we have benefited at today's rates by the bounty in this province, which is a direct result of the oil & gas Company's..it was almost totally [Expletive] up in the 80's by the NEP, but, fortunately able to rebound..don't - don't do that again. The "Albertans" that work and contribute to the economy of this province don't want to see you ruin it. |
| RRE0343 |
Please Keep Government's Promise of a stable predictable regime that allows our robust economy to continue to flourish. Don't change the rules in mid-game, and please don't sterilze the golden goose. some recommendations... 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. The credibility and analysis of the report recommendations requires significant review. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal. |
| RRE0344 |
Is the government that short sited? Raising the royalty rates to a level that impacts investment in the oilands is ludicrous. The taxes generated from the construction of these facilities far out weighs the quick money grab the government plans to impliment. If the government feels the need to raise the rates please do so with caution! |
| RRE0345 |
Please don't bite the hand that feeds. The socio-economic impact that the review proposes will turn alberta into a wasteland. |
| RRE0346 |
I support an increase. I do not understand how an oil company will stop the development, exploration, etc due to an increase in the royalty rate. The incentive is still there, the more you take out of the gorund the more profit you make. And the royalty rate for exporting CRUDE oil to be processed elswhere should increase dramatically. Why would we add another raw matierial to be processed outside of Canada. We are a resouce based economy, resources don't last forever. |
| RRE0347 |
I fully support the Royalty Review Panel, and as an Albertan, demand that we get our fair share. The big oil and gas companies report record-breaking profits every fiscal year and Edmonton and Calgary can't even build infrastructure fast enough to keep up with the immigration. It is also important to look towards Alberta's future, when there is not enough gas and oil to maintain our cities, and looking into investing that money until that time comes will go a long way to making sure that Albertans can maintain their lifestyles and expect the same services that we have grown accustomed to. Big Oil has moved into our house, and hasn't been paying it's rent. It's time for Albertans to collect. |
| RRE0348 |
I heard the auditor general interviewed on radio and was very impressed with his information..I support the royalty review because the oil companies have made enough from this province and if our bitumen, oil & gas was anywhere else, they would have had to spend more to be able to access it. Premier Stelmach needs to support the royalty review. |
| RRE0349 |
Mr. Stelmach, I work for a mid size oil and gas exploration company. It seems to me like the focus is on all the big faceless companies and the rich executives that run them. I would like to put a face on the many people in this industry that are in the same sinking ship as me. I went to school to work in oil and gas. I worked my way up [Information Removed]. I have given 15 years of my life to this industry and I haven’t had to worry about losing my job in that time. I was in a stable position where if you worked hard, you would reap the rewards. I contribute to my own future with RRSPs so that I have something to retire on one day. I do not have a cushy pension plan, all I have are my contributions to other Alberta companies including oil and gas. Naturally I am terrified of what my future holds. So if the evil oil and gas companies are crushed where does that leave the little guy like me? Soon I will be making less and less money, which will mean less outgoing cash to other little guys. I just don’t understand why the majority of people don’t get this. If people in Alberta don’t already think they are reaping the rewards of living here they need to take a step back and realize that they are. We have no PST and low personal income tax rates and most of us have jobs directly or indirectly because of the oil patch. What does my future hold? I can guarantee I won’t be going out for dinner much anymore, or getting my $5 coffee in the morning, or buying my lunch, or parking downtown or buying new clothes or anything else that is frivolous. I certainly cant’ afford to travel anymore or take cabs everywhere or renovate my house or buy a new house. I will have less money to donate to charity and less money to save for my future. What do I do now when my job is lost and this city is suddenly overrun with people needing jobs? Currently this city needs more workers, but not for long. As soon as many of the oil and gas sector are out of work, we won’t need so many people to work in restaurants etc. because they won’t have customers. Thank you for your time. [Information Removed] |
| RRE0350 |
I am very concerned that the government is about to take action that will severely hurt Alberta, much like the actions of the Federal Government in the 1980s with its NEP. If the Alberta government implements the recommendations of this report a number of small businesses will be the first to feel the effects of reduced activity in the oil and gas industry. This industry has already slowed significantly and the support servcies for the industry are experiencing a significant decrease in activity. A further decrease in activity will stop the industry cold and your everyday Albertan will be the one to suffer. I sincerely hope that the Stelmach government does not proceed to implement the recommendations, but rather holds the course while the economic climate stabalizes. |
| RRE0351 |
I am opposed to this increase in royalty rates, it is not reasonable to tax anyone more than 50% for thier hard earned profits. Th Governements of Alberta & Canada are both doing very well; just last year our Heritage fund was at an alltime high, Alberta is debt free, how many other provinces or countures are debt free or at least as in good as shape as Alberta & Canada. To propose & implement these royalty ratye increases will in actuality cause a slowdown in the province of Alberta as well as in BC & Saskatchewan. After the rate increases oil companies will stop investing in the profit & employing the people. What will these people do at this time for incomes. The Alberta Government will then wind up supporting them. At the end of the day everyone will lose the oil & gas production will decrease as well as royalty profits. The decreases in production means less services required whcih is less people & no jobs for those people. This will in turn slow down contruction in the twos & cities resutling in more jobs being lost. |
| RRE0352 |
Accountability is the order of the day if you want this government to survive. If you resist you die. Recall the federal PC's. They went too far and almost became extinct. Do you want this for the conservatives in Alberta. I hope not because I'm worried that the NDP or those crybaby Liberals will get in , in the next election !!! That would be bad for Alberta or would it be?? You need to purge your party of Ralph leftovers. He had his day and [expletive] up with the royalties , but made inroads with the balanced budget. Ok , thank you Ralph! But now ,you have to be accountablre to the electorate or you will be decimated in the next election. Fess up or pay up!! Use your head and you will be rewarded. Get the [expletive] who wwere in charge and hang out to dry. If they havre so little concern for our province as to let it be pilfered by these muti-nationals then crucify them and make them accoutable for the stupidity and lack ot thought that they demonnstrated. They should not still be in government , let alone being paid by the government that they let down!! Be nproactive and stop waiting for the hammer to drop,react ,now or pay up later. Smarten up and be strong and put those changes through legislation for royalty increases , and to Hades with these corporate war mongers who only want more for less!! Too bad , you got your candy , now it's our turn. Good luck, Mr. Premier!!! It's all up to you,as the song goes. Actually it's "I'm leaving it all up to you" ,Mr. Premier |
| RRE0353 |
People are looking short term. They get the maximum and the oil companies pull WAYY back. Once they do that, jobs will be lost, for every sector that support oil/gas production. All of a sudden, no jobs, gas prices remain high, and prices of housing fall like a rock. Then people will be whining to the oil/gas companies to come back, bring back jobs and money and get the economy back on track. We are so well off here in Alberta. People should accept the fact. If you want it to be more like Venizuela, just look at their [Expletive] economy. Last thing we want is a situation like that. |
| RRE0354 |
I encourage the Province to take a cooperative and consultative approach to the next steps of the royalty review process. However, it appears that the government is determined to meet its mid-October deadline for making a decision. As such, I encourage the MLA’s to eliminate the most onerous elements of the Panel’s recommendations: Ø The fiscal terms for existing projects should be honored, Ø The current Royalty Adjustment Program for Deep Marginal Gas Wells should be maintained, Ø The thresholds for the sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs, and Ø The Oil Sands Severance Tax should not be implemented. |
| RRE0355 |
I feel that this will affect Alberta’s future significantly. I am apposed to the upcoming increase other than in the Fort Mac Murray area; this is ubmit Message |
| RRE0356 |
Although a Physician involved in health administration and education in Alberta for the past 25 years, I have had the opportunity to get to know many of the leaders in the oil and gas industry in Calgary. In addition, I serve on the board of a major energy company. Therefore my remarks may be considered to be conflicted. However, this exposure has also provided me the opportunity to learn about, and understand, the flaws in the Royalty Review. And I know that at least some important players in the industry are not bluffing when they point out that if this government accepts the Report recommendations in their entirety, a significant amount of current activity in Alberta will no longer be economic. Perhaps surprising to some, this will not hurt the corporate world nearly as much as the many people living in rural Alberta who depend on a vibrant drilling and service industry for their employment. But it will also have negative economic impact on many people involved in other sectors of our economy both in our cities and our rural communities, such as the service industry, retail, food and importantly, finance. Calgary has become a major Canadian financial centre but this will not continue if the energy sector is gutted and it is seen that our government has developed policy that has even the appearance that we (as Albertans) no longer believe in the 'Alberta Advantage.' Once capital no longer flows into Alberta through our financial institutions, it will take a long time to re-build what we will have lost. Moreover, as pointed out by many others, if there is a significant downturn in the energy industry, the royalty - and the subsequent income and corporate tax base - of our government will also be negatively impacted. So I urge you to not accept these flawed recommendations. There is obviously some opportunity to increase royalties on certain aspects of the operations - but do not kill this industry that has brought so much properity to our province. Important to remember is that the prosperity about which I speak is not just to those involved in the oil and gas sector but to many and perhaps even the majority of Albertans not involved in the industry as well. Please be careful. |
| RRE0357 |
Dear Mr Stelmach, please accept the recommendations of the Royalty Review panel. As a teacher, I am having my students reply as well because we believe that all Albertans, especially our future Albertans need to have the necessary resources for education and health to become healthy and productive citizens of Alberta. They deserve their fair share of the royalties now and for their families. Hi Mr Stelmach, my name is [Information Removed] and I want to add to [Information Removed]message. i think the royaltie review should be excepted bacause we need resourses for are future especially for are education and are familes. thank you for this chance to let you know what i think. |
| RRE0358 |
I feel the Government can move away from Royality increases, but INSIST that ALL Secondary industries like "Upgraders" are Built in Alberta for the benifit of the people of this province. This should include every major Oil sands producer who does not Upgrade the product witin Alberta. Regards, [Information Removed] |
| RRE0359 |
Hi. I would like to say that I am tired of hearing about project costs being substantly high if projects are delayed.This fear mongering.I would ask the government of alberta to split the difference and take a 10% increase in royalties. Thanks [Information Removed] |
| RRE0360 |
Not only should the royalties increase, but WORKING ALBERTIANS should get a royalty cheque. We are over taxed, and it all go to the poor. The unemployed poor in this damn province have a better life then us working trying to make a living. The Oil belongs to Working Albertians, not the Government. And let me DEFINE ALBERTIAN - someone living and contributing to the tax system for atleast 5 years, make it even 10 years. Not someone who just moved here to work. |
| RRE0361 |
I belive the proposed Royalty Rate increase is much to high. I understand the need to review the rate strucure but the recommendations from the panel seem to be at such a level that they would reduce the amout of activity in the oilpatch significantly. I believe this would have an overall negative impact on the Alberta economy. Oil and Gas companies are driving the econommy of this province and a reduction in oilpatch activity would have serious impacts to all sectors of the economy. Where is the net gain from increased royalties when production is decreased? I think at the end of the day the whole of Alberta would suffer from such large royalty increases. A much smaller increase in my mind would benefit all Albertans by getting them a larger share of the provinces resource while not risking any negative economic impact caused by a reduction in oilpatch activity. Regards [Information Removed] |
| RRE0362 |
Dear Premier Stalmach and all others involved in the decision regarding royalties from the oil and gas industry, I firmly believe that the Stalmach government should increase royalties. I think we owe it to ourselves and to our future generations. We have some of the lowest royalties throughout the world, and there is no real reason to believe that increasing the royalties will significantly decrease foreign investment in our oil and gas industry. Although it is possible that the increase recommended by the royalty review board may cause a slight negative reaction and disengagement from industry, I do not doubt that it will rebound again after a very short period of time. We need to think about what is best for Albertans. Our economy is booming at the moment, so now is the time to make these changes. Our economy can handle any slight hiccups due to changes such as the increased royalties. It should be our province, the citizens, and future citizens that the government is primarily concerned about and who should benefit from resource extraction. Please make the responsible decision and implement all recommendations by the royalty review board. Furthermore, please seriously consider that these changes be seen as a starting point, with additional increases to be made in the future as the industry develops further and oil prices continue to rise. Sincerely, [Information Removed] |
| RRE0363 |
I truly beleive that an increase as much as the panel suggested wolud not be in the best interests of the avergae Albertan. I do not think that a proper risk benefit would be left on the table for oil and gas companies as well as consideration for the increased cost of current exploration. The impact that less exploration and subsequent reduction in expenditures around the province might exceed any gains brought in by such an increase in royalties. I modest increase may be justified but do not cut of prosperity short by following the panels outline. Thank you. [Information Removed] |
| RRE0364 |
I believe that royalty rates need to be increased but the review panels recommendations may be too drastic at once. Perhaps they should be implemented on a gradual basis. It is difficult to determine what the impact may be because I believe we have been mislead with the "fear factor" from both sides of the issue. It is too bad we have given up control through so much foreign ownership over the years. We must remember though that they do employ Albertans which is driving our economy. Those of us like the retired and others who do not rely directly or indirectly on the oil industry, are impacted negatively by the rising cost of living. Thanks for listening to our comments. |
| RRE0365 |
Dear Premier Stelmach, I am a very supportive of your Government's efforts to increase the royalty rates collected from oil & gas companies extracting valuable natural resources from Alberta. Many people have been able to benefit from the recent energy boom and I believe the Government has long missed an opportunity to use this boom to build a long-term vision for Alberta to enable it to prosper once all the oil is gone. Please do not back down to the oil companies (and their rich employees) on this one - we already enjoy some of the highest take-home pays in Canada but also suffer some gross inequalities and a lack of appreciation for the environment and lifestyle enjoyed by many in other places in the world. Many thanks, [Information Removed] |
| RRE0366 |
I think the royalty review is going to cripple the prosperous, growing province of Alberta we live and work in if it is fully implemented with the Panel Recommendations. The Premier must step in and do what's right for the Province, in a step by step approach. This will maintain Alberta the way it is now for decades to come. To quote one fellow, " You can't get royalties out of wells you don't drill" Mr. Stelmach, now is the time to do the right thing for all Albertans. We have complete faith in you. |
| RRE0367 |
I think as a province we are exploiting our petroleum reserves, especially the tarsands, too fast. We should use these resources much more slowly so we have some later when they're more valuable. Also, how will we Albertans heat our homes once the natural gas is depleted or too costly to be used as a fuel for home use. We'll be SOL. The amount of money saved to our Heritage Trust Fund is a total embarassment. It should be hundreds of billions of dollars by now. Don't fear a pullout by rich oil companies. We've got the goods and somebody will always be happy to come and get them. Especially petroleum. I would like a response, but it only needs to be a sentence acknowledging receipt of this note. Thanks for the chance to express my opinion. I've lived in this province all my 54 years. |
| RRE0368 |
I agree that royalty rates should be reviewed with the idea of getting more. If they don't like the new rate, and slow down or pull out, our economy - and construction costs - will not be so supercharged. This is a finite resource, and we should do our best to ensure we are getting a competative royalty rate, not give it away, and then bust even lower than we did in the 1980's |
| RRE0369 |
The Royalty review is long over due. The oil resource is supposed to belong to the people of this province yet the most return we see personally is a good job. The oil industry and US have been getting this non-renewable resource to cheap for to long. Also, why isn't there an annual payment to the long term citizens of this province (similar to Alaska) from the oil revenues? Like mentioned early, we do have good jobs but, at the price of giving away our resouces and in the end we will or the next generation will be standing here with empty hands. The government could also use moneies collected to build up and prepare this province for the future. NO LOANS TO QUEBEC OR ANYONE ELSE. WE WOULD NEVER BE RE-PAID ANYWAYS. This is a one time opportunity, we need some good minds to come up with some good plans for ALBERTA. |
| RRE0370 |
That's the oil of Albertans. It doesn't belong to the oil companies. We've got the right to see reasonable returns from our resources. If they want to do business in Alberta, they should be prepared to pay for the priviledge to make ENORMOUS profits. These are not weak, suffering companies. They made record profits last year. Even Alaska has a tighter royalty regime than we do. We're giving away our money, our infrastructure is suffering, and the province isn't SAVING any money. We should be taking extra royalties and saving and investing them. Alberta has a lot, but we could have so much more. Don't pass up this opportunity to make life better for ALL Albertans, not just those connected to the oil industy. |
| RRE0371 |
Countries like Norway have "fair" royalty rates and no oil companies are leaving there. It is about time that Alberta gets on par with other oil producing countries and gets what is deserved for its citizens. Go ahead with the recommendations. |
| RRE0372 |
The recommended increases proposed by the adivsory comittee will have devasting affects on the Alberta economy and the provincial unemployment rate will increase drmatically. Please consider something less dramatic. Thanks, [Information Removed] |
| RRE0373 |
Now that Alberta has evolved into a Province that has a solid foundation which yeilds greater opportunties for it citizens and secure more favourable political and economic interests, consequently, then, the Alberta government should recieve a greater share off the royalities. Please Premier Stelmach ensure that you are governing a Province that enables greater growth and expansion for future Albertan families. Thank you for your time. [Information Removed] University of Lethbridge Student |
| RRE0374 |
Follow the recommendations of the Royalty Review Panel and increase the Royalties accordingly. It is high time the Oil and Gas sector pays it's fair share. Thank you. |
| RRE0375 |
If you want to put thousands of people out of work, and demolish Alberta's oil and gas industry continue on with your ridiculas money scam |
| RRE0376 |
Royalty rates should be increased! They are too low compared to other places in the world and the report considers all apects prior to arriving at the 20% rate hike. Royalty rates should increase immedialty. |
| RRE0377 |
Royalty reviews will leave my family starving. Will the government supplement our income like they do for the farmers? Not likely. The government already get a huge surplus from the oil and gas industry, where is the money now? Will health care and education benfit from a higher royalty? Probably not. I think the government should take a closer veiw of how it will affect majority of the oil industrys familys. |
| RRE0378 |
If the oil and gas industry reduces spending on projects, businesses that depend on income from the projects will suffer. Please revise the Royalty system so that Albertans will benefit in the long run. [Information Removed] Proud Albertan since 1983. |
| RRE0379 |
Don't forget that employed oil workers pay taxes. Unemployed oil workers (if the oil co's reduce spending) collect EI or welfare. |
| RRE0380 |
Mr. Prime Minister: As a freeholder mineral rights holder in central Alberta I am grossly disappointed in the Royalty Review Panel's proposal to increase the effective rate of freehold mineral tax by almost 100%. HOW CAN THIS BE FAIR to us as Alberta citizens who have been fortunate enough to have our forefathers pass the mineral rights down to us. Our forefathers were the pioneer settlers of the Province more than a hundred years ago, they homesteaded lands from the Canadian Pacific Railway, Hudson's Bay Company and the Dominion Government. The lands included subsurface oil and gas. They broke the land and earned the right to the oil and gas properties which they chose to pass down to us. You might make note that there are 50,000 individual owners of freehold oil and gas rights in Alberta, collectively owning approximately 6,000,000 acres through south central Alberta. The Freeholders Owners Association (FHOA) has tried several time to set up a meeting with Minister Stevens and was told the review process was complete. How can this be? There is nothing democratic about it. Premier Stelmach appointed Minister Stevens to review the concerns raised by the Review Panel's proposals. How come the concerns of FHOA were not even listened to. Closed door meetings were held with energy companies, but no where was FHOA invited or their concerns taken into consideration. If this proposal goes through there will be a lot more of us on WELFARE. Is that what the Alberta Government wants? Don't you think $317,000,000.00 collected in taxes on freeholder oil and gas rights is quite a chunk to pay the Alberta Government; while individual owners received absolutely nothing from the Government of Alberta in return for this tax. HOW CAN THIS BE FAIR? I trust that you the Government and your Review Panel will seriously consider the comments that have been made. Yours truly, [Information Removed] |
| RRE0381 |
Can you confirm the stance that Ed Stelmack is taking on Oil royalties? Is he siding with the corporations, because if so, he will not get my support? Will Albertans have any say in the decision that is made? If not, will we be expected to carry the burden of taxes forever for infrastructure and future development in our province? |
| RRE0382 |
The Alberta Government put together a diverse and knowledgeable panel that they believed would produce a fair and accurate report. The report is in and it says that Albertans are being short changed on royalties. Now it's time for the Government to do their job and implement the findings of the report. On a side note the report only confirmed what most people I know believed, oil companies are getting a free ride in Alberta. They should be required to pay their fair share. Please do the right thing for this dwindling resource. |
| RRE0383 |
I think that the government needs to seek more royalties from these companies. Canada and Alberta is one of the most stable environments for oil and gas exploration and production in the world. These companies are going to bluster and threaten, but they are too committed to this region to pull out. This money should be used to develop Alberta away from being dependent on the Oil and gas companies and to help provide a broader base for industry and Albertans to eliminate our dependence on this income. Alberta, through partnerships with these companies can develop technologies, solutions and people that can transport these skills to other areas. There will undoubtedly be short term pain in terms of layoffs, but the Province of Alberta and the Country of Canada need to prevent the exploitation that is currently going on with little regard to our future generations at the hands of these companies. If the province will not take these steps, then the federal government should. |
| RRE0384 |
I wanted you to know how concerned I am about the Alberta Conservative Government adopting the Royalty review report as is. I believe that by accepting the Royalty review report in its' entirety will not be in Albertan's long term interests. Accepting the report as is will allow Alberta to charge a higher royalty but the adverse affect it will have on investment in natural gas exploration and production and oil sands development will be profound. Natural gas as a resource is in decline in Alberta, it is becoming harder to find and more expensive to produce. A higher royalty rate in a very mature field will not accomplish the intent of providing Alberta with a fair share. It will discourage investing in high risk plays and investment in smaller pools thus lowering Alberta's total royalty revenue. As for Oil Sands development I would encourage the Alberta government to work closely with the oil industry to make sure that any change to the oil sands royalty be thought through very carefully. This is a world class resource that we want industry to help us develop and create a dynamic province with business opportunities that will be sustainable for the next 40 years. Oil sands developments require a huge financial investment over a very long period of time. To allow this investment the oil industry requires stability in the rules to support ongoing investment to develop this great resource. Implications of the Oil Sands Severance Tax and no grandfathering need to be assessed in conjunction with the new realities of $10 billion investments required to develop a fully integrated oil sands mining and upgrading operation. My greatest fear is that we stifle our great oil and gas industry in Alberta in pursuit of what appears to be a fair share. A fair share to me will keep the balance in tack which will provide Albertans with a fair royalty and ensure that the Oil and Gas industry has room to take risks, invest in new technology, take chances on exploration, build infrastructure, contribute to our communities and still have the ability to achieve a reasonable return on investment. I believe that be accepting the Royalty review report in its' entirety will not be in Alberta's long term interests. I would request that you make this point of view known to other members of the government including the the Premier and take your time to get this right and not accept the royalty review report as is. |
| RRE0385 |
I am pleased with the royalty review's findings and am in agreement. I feel that Alberta's resources should be sold for their value, not given away in exchange for a few jobs. When comparing Alberta to other areas of the world rich in oil resources, namely the middle east including Saudi Arabia, I am left wondering where are those with all the money generated from this industry in Alberta- the oil barons, and the sheik equivelants? Do we see these individuals in our middle class society? Are we selling ourselves short? In such a rich province, why are our high school students dropping out of school to work and support themselves, and why are there so many individuals who cannot find adequate housing and shelter? I feel that the oil and gas industry does affect many different sectors of society, however its presence also creates unique demands. Those demands include increased infrastructure as well as environmental remediation and these costs must be weighed against the benefit of uncontrolled growth. Jobs occur in many different industries, however to what extent does the government need to set up services and infrastructure to enable those jobs to exist? I feel that there has recently been dramatic changes in the cost of oil and gas in the marketplace and dramatic shifts in security and politics in oil producing regions, including Africa, South America and the middle east. These changes necessitate changes in our royalty structure. When the cost of oil goes up, the cost of our groceries goes up, so too does minimum wage and the price at the gas pump. If retailers can tie their prices to the price of oil, why can't the royalty system do the same? I applaud the review and hope that change for the better is implemented to ensure that our resources are sold for their value, and to enable infrastructure to catch up with the frenetic pace of development. Our resources are vast and rich and we should assure ourselves that we are in charge and in control of our resources, not those who have come to exploit and profit from them. |
| RRE0386 |
I am simply amazed at how unaccountable and undemocratic your Conservative government has been for many years. Many informed Albertans have understood this to be the case, but the royalty review now confirms it. The Parkland Institute suggests that instead of 25% revenue collected after costs, the percentage is closer to only 19%. No other jurisdiction in the world would be "giving away" (to quote Murray Smith while in the U.S.on a trade mission) our resources like this. What is your government going to do to turn this around and finally show some respect for Albertans, the owners of the resources? |
| RRE0387 |
I have been employed in the oil patch for 26 years. I have been through the up and down cylces based of of supply and demand. What I see here is a government shootonh itself in hte foot. |
| RRE0388 |
It's time that Albertans started to think like an owner and it's time that the Alberta government started to understand that they are the custodians of our resources. Albertans have been short changed for years. A royalty increase is long overdue to give Albertans the fair market value that they deserve. DO NOT LET BIG OIL THREATEN INTO SUBMISSION THE GOVERNMENT OF THIS PROVINCE. |
| RRE0389 |
I wish we had a Government that stepped up for Albertans and and not big Oil Companies. I don't for one minute believe the Oil Companies when they say they will pull out of Alberta, even with an increase in royalities they are still onto a very good thing here. Even if they did pull out it wouldn't be the "end of the World". I believe that things need to slow down so we can catch up to all the people who have arrived "en masse" in our Province and everything that encompasses. I think the Oil Companies should be ashamed of themselves especially Encana the first one to turn on us and one of our own. I believe in playing fair and the Oil Companies aren't playing fair at all they are just plain greedy. It's time we sent them a message and looked after Albertans and Alberta for future generations. Their greed should not be rewarded. Thank you. |
| RRE0390 |
Premier Stelmach, I agree with the findings of the report and I urge you to implement timely changes. Furthermore, I'm concerned about the energy ministry's lack of effectiveness with respect to this issue. Efforts directed at merely the appearance of change (rather than effecting real change) will be recognized as such by voters and the credibility of your government further eroded. The province requires real leadership here! Thank you for considering my comments. [Information Removed] |
| RRE0391 |
What the provincial government and the public need to realize is that everyone in Alberta will be affected by the new royalty regime either directly or indirectly (from geologists/engineers to taxi cab drivers and waiters at restaurants). My husband and I both work in the oil industry, and thinking about the ripple effects that this new regime will have on our livelihoods is devastating (i.e. job loss, house price drops, etc.). Some companies have even started to inform their employees that if this goes through as written, they should expect massive layoffs (i.e. Talisman and Conoco Phillips). Is this the result the government wants? I'm not saying that the government doesn't deserve a share from the record profits oil companies are making, what I am saying is that the measures listed in the document are extreme. Careful and detailed review which involves industry input is necessary in order to avoid complete disaster. We need to remain "attractive" to domestic and international investors so that we can continue to prosper for years to come. |
| RRE0392 |
I will try to put this as delicately as possible I think that Ed is a good provincial leader. He obviously cares to see that the province flurishes . I do however stress that his timing is terrible, the oil and gas industry is experiencing a slow down and to ask the oil producers to cough up more will sink this province. These are not team players they do not care if Alberta thrives or flounders, they are about the dollar. The time for this would have been when the industry saw record sales in gas not now when it is recessed. I remember well the 1980's and how many people lost everything they own. I am in the industry and have friends who lost their home their family and so on. This will happen again, they will move their focus from Alberta to overseaes operations, or to Saskatchewan that still has all of it's reserves in tact. Ed this would be a mistake to disregard the threat they are bluffing. This is not human it is a machine and as such it only functions to keep the machine alive. There is no shame in re evaluating this I respect a man that can take a second look. I think that the fact that you care is a great quality for a leader but please realize that Saskatchewan in on the verge of a government change that will see a drop in the royalties to oil revenue which is the one thing that has historically arrested the growth of the oil and gas industry in that province. I could see people leaving this province to relocate to other provinces in an attempt to be closer to work much as has been the case for outsiders coming to Alberta for the past 30 years. I own land in Saskatchewan my self yet I have lived in this province full time since 1969. It is my home yet I would go to where the work is too. There goes the tax dollar to another province. w If you are going to do this at least be patient wait until the industry picks up to a normal rate of drillinjg and production . The oil and gas producer will not meet in the middle they don't have to ,the oil does not end at our borders and they know that . There are provinces that are hungry to cash in on this. what would have been a gradual expansion into their province may become a sudden and complete shift. It will happen. I am not saying back down just re evaluate your thinking please look at the bigger picture. I love Alberta and want to live here forever but if I will do what I have to hang on to what I have, as would any one if they have lived through the 80's. Ed I voted you in and I do not regret that I know you want what you think is best but please don't push these guys we need them they don't need us they will dump us like a used facial tissue. Thanks [Information Removed] |
| RRE0393 |
Go ahead and increase the royalties. It won't stop development but it might slow the rate now. Could this possibably slow down other things too? Like house prices, and wage prices and land prices. And would this be a shock or would it be good news? As oil is so expensive and the oil companies have profitted so much from this resource which belonged to the Canadian citizens...it is time the oil companies returned some of that profit to us......so increase the royalties to the oil companies. As for the natural gas companies it may not be a good idea to increase the royalties the same % as the oil companies. I don't think the gas price is as profitable for these companies, so they don't need to give us back the same share as the oil companies. Now. But in the future they may have to pay higher royalties if gas price is very expensive compared to what it costs them. |
| RRE0394 |
After all of the work and study it appears that the panel has arrived at some very reasonable recommendations. It would have been better to have adjusted the royalties on an annual basis rather than at once but since that wasn't done it is important these recommendations are implemented as is. It is clear the industry will now try to bully the government, I hope the government will not give in as the only way to deal with bullies is to stand up to them. The industries message that they can't afford these proposed rates is laughable in that the afforded these same rates when the oil and gas were worth half of what they are now. Albertans deserve to be paid a fair price for the product they are selling. If some companies decide to invest elsewhere I would hope that our government will assign those the lands these companies have been awarded to drill on will be assigned to companies that want to be here. |
| RRE0395 |
I believe the plans for the Royalty Review Panel's report are flawed and incorrect. The department that is handling the checking on the report is responsible for not only setting the royalty and collecting it, but also setting policy for the energy sector to maximize investment, as taken from the report, and that would seem to me, and many people, as somewhat of a conflict of interest. I am also dismayed by the fact that while Albertans were consulted about this in an open and honest manner, with all available transparency, the oil executives get the leather-chair closed-door treatment, which brings to my mind a sense of impropriety and double-standards in a government that is supposed to be open and transparent; if it was truly so, there would be no hesitation to leave these discussions for the scrutiny of the public. Alberta's current royalty rate is quite low, and the corporations, not Alberta, nor Canada, is reaping the benefits of our resource wealth with fair and equitable royalty rates. The very same author whose report was quoted multiple times in the Royalty Review Panel's consultations by oil representatives has updated his work and shown Alberta to be far below of what we should be recieving in royalties from OUR resources as they are extracted from the ground and sold, and we aren't even competitive anymore, truly; we're just giving away our oil as if it wasn't a precious, non-renewable commodity. We need to slow development, because the rampant development and cost inflation is hurting Alberta and Albertans and casting a dim light on our future; the obscene use of our land currently, and the royalty regime put in place, is no longer viable or necessary. It's increasing costs across the province and destroying the ability of people to support themselves anymore. What we need is not only a fair and equitable royalty rate that will give Albertans what they deserve for what they own, we need transparency in all communications and consultations that the government does about this issue. |
| RRE0396 |
Be very careful in this decision to increase royalties. The average Albertan does not see the implications of increasing the royalties to the degree the Review boards has recommended. A balance needs to be agreed upon so the both sides will benefit. |
| RRE0397 |
Please do not change the existing Royalty structure. My wife and I are 55 and our retirment is invested in the energy sector, our home value is based on the energy prices, our work and our children are all in the Oil and Gas business in Calgary. I estimate if implemented, we stand to lose over $100,000 in equity, earnings, savings and that represents another 20 years of work. We may not live that long. Say goodbye to retirement. |
| RRE0398 |
Every oil company that has complained does not want to pay more, so there analysis is quite biased. When you have the panel and the auditor general providing an independent analysis it has much more credibility. The quality of life in Alberta is much worse now than 5 years ago. Implement the panel's recommendation in whole. Your vote from me depends on it. |
| RRE0399 |
Dear Mr. Stelmach: I would like to express my concern over the findings of the Royalty review panel. It seems that the panel did not have all the facts and that the impact of royalties at the level and timing suggested by the panel would have a disastrous effect on the economy of Alberta through a multiplier effect that would negatively impact Albertans in the service industries in particular. While there is probably some room for movement on the Royalty tax it should be evaluated in consultation with industry and while keeping the economy and well being of all Albertans in mind. I hope that a better process for assessing Royalties will be developed and implemented. Yours truly, [Information Removed] |
| RRE0400 |
I would like to offer my comments on and share my concerns about the recent Royalty Review Panel’s Report to the Alberta Government. Alberta is known as a ‘rich’ province…due to the natural resources stored in our ground. As a citizen, I want the province to receive some benefit from these resources, as is the case through the current royalty system. But I would not like to see the new program be so onerous that it stifles the industry. Nor would I like to see the spin-off effect that would have on the economy of the whole province. While government revenue may initially increase if the recommendations are adopted, it is likely that it would decrease in the long term due to the resulting decrease in activity. This would affect the employment of thousands of Albertans, which in turn, would affect the overall economy of our province. My specific concerns with the report are: • Some of the data included in the basic fundamental assumptions for capital costs are low. This will have a significant impact on the credibility of the number-crunching. The report recommendations require significant review to substantiate the validity of their assumptions (or reveal their flaws). • The statement in the report that 82% of natural gas wells will pay lower royalties is based on the assumption of continuing low natural gas prices. Looking ahead, the one year price of natural gas would result in higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the majority of new wells throughout Alberta) remain economic. • Elimination of primary production in the oil sands area from the oil sands royalty program creates a risk of drastic reduction of activity in this region. It will just not be economically viable. • Recently, the Alberta government modified the royalty adjustment program for deep marginal gas wells to ensure that the economics of such drilling were supported by special royalty programs. Elimination of the special royalty programs will remove the incentive for such activity. • The proposed increase in the oil sands post-payout royalty rate (from 25% up to approx 40%) seems like a tax grab. The existing oil sands projects have been developed based on the current royalty program and rates. By substantially increasing the royalties, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. In summary, I do not think the report has considered the long term consequences of the proposed changes. We do not want to repeat the National Energy Program of the early 80’s!! Please do what you can to stop the recommendations from being implemented without further study and consideration of future ramifications! Thank you! |
| RRE0401 |
Having read a part of the review to somewhat understand the general direction of the Panel's recommendations, I do have a few comments. I think the focus should be put on the oil sands more so than conventional oil and gas wells, primarily because of the nature of the operations; the risk oil and gas companies assume in their drilling programs; the drilling activities are not as intensive as they used to be and I do not expect these to change anytime too soon. Further increasing royalties should not deter companies from adapting agressive drilling programs. In other words, the Province of Alberta should consider maintaining the royalty rates on wells brought online from hit and miss drilling programs. I think the oil sands operations, due to lower risks and longer project life, should certainly assume the increase in royalties. I think there should be a stronger incentive for oil and gas companies to refine the bitumen from oil sands into final products right here in alberta, or at least in Canada; companies who export raw energy products to other countries should pay higher royalties despite the less refined products as these activities take away from the people of Alberta, not only for final value of the energy products, but in growth and employment capacity. At this rate, albertans would be better off in the longer term to hold on to these resources rather than giving them away for further refining in other countries. This is a very basic concept applicable to all natural resources in Canada, we most often do not refine our resources into final products; the secondary industry should definitely be further developed in Canada, and I can't see why Alberta could not be leaders in promoting this change, and perhaps enforcing it [transformation of raw natural resources, locally]. Thanks for your time. [Information Removed] |
| RRE0402 |
The Alberta Royalty need to increase for two reasons: 1. to benefit Albertians & Canadians long term (save for future gnerations, build infrastructure, build alternate industries, etc) 2. to slow down the crazy economic boom which is stretching everything thin (too low of unemployement is also not good) Please keep in mind that if oil prices do fall below $40 US/BBL, that would be OK because it will force the oil companies to run more efficienctly and if oil prices drop below $25US/BBL, we can then consider bringing back the old royalty regime. At the moment there is no end of sight to high oil prices considering China/India's growth plus the US is still consuming near 20 million BBL/day! Thanks, [Information Removed] |
| RRE0403 |
Edmonton, October 8, 2007 Dear Mr. Stelmach, With this letter I would like to express my deep concerns about the response of the oil industry to the recently released report “Our Fair Share” by the Royalty Review Panel. To most Albertans it is more than clear that the economic boom in our province resulting from the rapid development of extensive tar sands in northern Alberta is associated with several major negative consequences. With the location of these tar sands in the northern half of Alberta, the most immediate impact in the form of massive environmental destruction is safely out of sight for most of us (I can only imagine the difference it would make in public opinion if this development was situated in the more populous southern half). However, the social and economic impacts are felt by most of us: the housing crisis with associated increase in homelessness, failing infrastructure, inflation, etc. In other words, while the oil companies have been raking in billions of dollars in profits, the true owners of these resources – Albertans – have been paying an unacceptable price because the royalty regime has not been adjusted over time to reflect the reality of today’s market. Whereas the oil companies are proclaiming loudly that the costs of developing the tar sands are extremely high, making an increase in royalties and taxes unacceptable, they themselves are contributing to a large extent to the increased costs created by the unsustainable pace of development. If an increase in royalties would be prohibitive for companies who would otherwise invest in new tar sands projects, then I believe we are merely bringing back some degree of balance to the province, or indeed Canada, as a whole. The tar sands are not going anywhere, and the price of oil, a non-renewable resource, is likely only going to increase in the future. It would be unrealistic and irresponsible for the Alberta government to give in to the threats aired by various oil companies that they will not invest in Alberta’s resources if the royalty regime (which they have so far, not surprisingly, referred to as ‘highly favourable’ in reports to investors) is changed in such a way that it would confer a more appropriate proportion of the profits to Albertans. Premier Danny Williams has recently shown that not giving in to oil industries’ threats will not result in them taking their business elsewhere. Likewise, there is no reason whatsoever to believe that Alberta’s tar sands will be abandoned by the companies if royalties and taxes are increased to ensure that Albertans are getting their fair share. In my opinion, a full implementation of the Royalty Review Panel’s recommendations would only begin to correct the entirely unsustainable and dangerous situation in Alberta. A significant increase in royalties and taxes is an absolutely critical part of a much needed strategy to slow down the pace of development. In fact, a moratorium on any further development is absolutely essential. While that, unfortunately, does not seem to be the course this government intends to follow, continued development of the tar sands at the current (or even increased) pace is guaranteed to have devastating consequences for not only our province but on a global scale. Development of the tar sands involves massive amounts of GHG emissions, contributing to global warming and potentially irreversible climate change. Fast-paced development of the tar sands, encouraged by a ‘highly favourable’ royalty regime, does not in any way stimulate the exploration of alternative, renewable energy sources nor does it send the urgent message to both producers and consumers that energy conservation, and a timely transition of our economy away from oil, is in our best long-term interest. It is up to you and your government to do what is necessary, morally responsible and in the best interest of current and future generations. A significant increase in royalties and taxes would be an important step in the right direction. Sincerely, [Information Removed] Edmonton AB [Information Removed] |
| RRE0404 |
Dear Gov’t of Alberta, What a farce the display at the Legislature was yesterday. That was not a true demonstration --- it was nothing more than an orchestrated lobby group sponsored by oil companies and their cronies. I found it amazing (and humorous) that so many of these individuals all had the same shiny, brand new, white hard hats. I mean, if these people were truly “ordinary workers who came on their own to rally against the government”, would they not have all had used, scuffed, sticker-ridden hard hats of varying colors? Shameless. Also, one of the workers interviewed (a driller) suggested he had not worked in 46 days. Well, if he knew that the proposed royalty changes actually called for a LOWERING of rates on a lot of the oil and gas wells, he may realize that this could actually increase drilling activity, and help him get back to work. Another sign of ignorance from one individual --- comparing this situation to the NEP in the early 80s. That plan called for money to go to Ottawa. This Royalty Review calls for monies to stay in Alberta, and at a MUCH lower rate of "skimming" than the NEP, so as not to detrimentally affect the industry overall. These employees need to wake up. Forget that Conoco-Philips threatened to pull out of their oilsands commitment. First, they are an AMERICAN company, and the vast amount of their profits would go back to the U.S. Second, if they pull out, Who cares?! Let them go, and let another company (hopefully a Canadian one) replace them. I have lived all of my 32 years in Calgary, and have always voted Conservative. However, I don’t like that Alberta is increasingly becoming a province of haves and have-nots. I work hard. Always have. I have spoken to others in my social circles and a lot of us feel the same way --- the decision on this Royalty Review is going to influence --- no, DECIDE --- how we vote in the next provincial election. I would prefer to keep voting for the Conservatives. However, this will be decided by whether these royalties are raised or not. Sincerely, [Information Removed] |
| RRE0405 |
To Whom it May Concern, I previously submitted my views on the royalty review; however, I have given it a little more thought. In Alberta, oil companies frequently cite world prices based on supply and demand to justify gasoline price increases. As this appears to be a standard that is acceptable to them, I believe that Alberta's royalty rates should be based on rates charged by other jurisdictions. For example, the mean or median rate charged by other jurisdictions operating at northern latitudes could be charged. Thank you for the opportunity to submit my views. Sincrerely [Information Removed] |
| RRE0406 |
I urge the Alberta Government to listen very carefully and give far more attention to the downside of messing with increasing royalties than some "pie-in-the-sky" speculation of increasing revenues. The downside is being clearly articulated not only by the oil and gas industry but by investment institutions worldwide. Neither of these are just whistling Dixie when they describe the severe negative effects of proposed increased royalties that will be experienced by all Albertans. The very best that Alberta might achieve from this scheme is no net loss/gain in revenues, as investment/profits will most certainly be reduced proportionately. Please look past "politics" in this matter, as public opinion that is reportedly onside with the Hunter report is a poor indicator of future consequences. While it might be popular short-term to "stick it to the oil companies" and thereby solidify one's political standing for a fall election, I solemnly predict the Premier will then preside over a deep and long recession in Alberta that will make him wish he'd remembered the wise old farming admonition, "If it ain't broke, don't fix it". Rather than an adversarial approach, the government should engage with industry/investment representatives in a completely above-board discussion about these matters, rather than quietly listening to both sides and then unilaterally reaching a compromise that would have more to do with pursuing the path of least resistance than doing what is right. Doing right is often unpopular, and if it means opening oneself up to political sacrifice to do so, the honourable thing would be to do it anyway. That's not to say the Premier should "cave" to industry, but rather engage industry stakeholders in a way that they too understand political reality and work together to find a balance that ensures our prosperity continues. Don't cave to an uneducated public whose next bumper sticker is likely to read, "Please God, give us another boom and I promise to listen to the golden goose next time." [Information Removed] PS The Oct. 5 letter from the [Information Removed] should be read several times. Read and heed! [Information Removed](and I don't care who knows) |
| RRE0407 |
Will these royalty changes be administered to existing contracts? We should not be able to change the rules after a contract is signed. |
| RRE0408 |
I wish to voice my objection to the increase in the royalty tax |
| RRE0409 |
Our economy is booming right now due in large to oil & gas companies. Please don't ruin that for all of us by implementing higher royalties! We already benefit as citizens by this economy and if oil & gas companies invest less in our province, we all know that a lot of jobs will be lost. That will help no one, least of all the gov't since royalties will end up being less. We all know this will affect so many areas of our lives such as retail, housing& stock prices and many drilling & oilfield service sectors. Please consider hiring another panel - we are owed another review if flawed data was used. I do not work in any oil&gas related job, but I do know that we all benefit from the investments oil&gas companies make in Alberta. |
| RRE0410 |
To whom this should concern, This report is extremely disturbing in its weak content and oversight. This report was compiled by people with a complete lack of educated relevant Oil and Gas industry experience/knowledge. How would the Forestry Industry feel if the Oil and Gas industry wrote a stumpage and tariff recommendation? This report is so off the mark and flawed I would not have paid for it, although I guess we did through wasted tax dollars. The flaws include assumption that Oil Companies can control all costs, that 2005 gas prices are the norm, that no wells will decline and so on. The other point is why are these report writers ramming this through, they are there to write a report, nothing more. This is a complete farce and Ed Stelmach is leading a ship of fools (those that are for anyway). Do they not realize that if you bite the hand that feeds you, the hand simply leaves with its money and invests elsewhere? Every Albertan benefits from the current state, if $6 Billion leaves the Province due to the changes this report requires what affect this has will drive the economy in a tailspin, it may not drive it to the ground but our level of prosperity will certainly diminish. What has to be understood there is no Albertan's vs. the Oil industry, Albertan's are the Oil Industry. Here is what it will affect: 1. Job losses, the ripple effect will hit every Industry, less money in the economy = less spend =less jobs. 2. The province will lose royalties which equals less money coming in to pay everyone now on unemployment from No. 1 3. Housing - people in an uncertain climate will no longer build houses. 4. Recreational spend goes down - RV, Boats, ATV's... 5. Every community sponsored facility and recreational event is supported by the Oil industry, this goes away as the relationship becomes damaged. 6. The list just continues on..... What Stelmach has to realize is that he cannot apply Farming principles to Government in Alberta, Farming although critical to our economy and part of our proud heritage will not economically support Alberta. The fallout from this, although it grieves me, we may have a Liberal Government come this fall. [Information Removed] |
| RRE0411 |
I think that the proposed increase of royalties is a bad idea for Alberta. It will cut a large number of jobs due to the impact of such large corporations such as , Encana, cutting down expenditures in our province. My husband is in the oil industry in Southern Alberta and the impact on communities within this region will be hit the hardest making many towns ghost towns. I know as a family we are prepared to leave the province or the country if the royalty increase passes. |
| RRE0412 |
Oil companies have announced during their AGM's that they made record profits...one cannot dispute that fact. The oil companies are whining to protect their shareholders, and iour government must take a strong stand protect Albertans'. Are these 'majors' really going to leave? I highly doubt the yanks will, they need our oil. It is time Canada stood up for Canadians and not bow to the capitalistic yanks. We need this money for our infrastructure as Alberta suffers the burden of thousands of people coming here to work. Thanks for listening, please don't let Albertans down by cowing to the majors and their flunky lobbyists. |
| RRE0413 |
The Oil and Gas industry continues to support Albertans & and contribute to our provincial prosperity with the current royalty scale. Other resources abundant in Alberta receive subsidies. For example, a royalty could be imposed on a prosperous grain or cattle farmer that has sold their resource to the market. We are not a socialist country, yet we are now implementing socialist ideals. If the royalty proposal is implemented, there will be no motivation to pursue further business in this province. This will ultimately affect consumer spending, real estate etc. The Oil & Gas companies must disclose their profits from their endeavors, but what is not mentioned is what the Crown currently receives from these companies. If [Information Removed], for example, will produce 10 billion, then the Crown will receive 30 - 35% of their revenue... yet the Crown does not have to disclose their current income stream from this industry. It is this one-sided discloser that is causing unrest in Alberta. Perhaps the Crown should publish what they receive in royalties from the Oil & Gas companies. then the public could make an informed decision. |
| RRE0414 |
Royalty review---added value on a bbl of oil is at least double the price per bbl --eg $80 oil has about $100 added value --total take is $180/bbl-our share is $4.65? -transportation, refinery,, etc =jobs -must build our own \ ----also must have referendum on this one (as part of next election?)-there is a wide disconnect between oil patch and Albertans as to whose resources these are and what country they are operating in--we must not allow crude export -never ending--negotiate tradeoff? -the oil patch threats should not be allowed to stand--we owe them because of some idiot agreement by past pseudo politicos? -also we are not getting the full info we should be--publish a first rate study that also has the numbers not only percents -this is what the gov should excel in even if you must publish your own --media totally unreliable-- [Information Removed] |
| RRE0415 |
I totally agree with the Royalty Review Panel. We as Albertans' have been short changed long enough by the huge oil companies. They threaten us by saying they will shut down their projects and pull out, pull out to where, their investments are too large just to pack up and leave. The threats are being used so they may retain their huge profits while raping our resources. Once they have depleted them, they will pull out without hesitation and leave us with nothing but a huge hole in the ground. |
| RRE0416 |
The government should really think about how every dollar of investment in the oil and gas industry trickles down through service companies, suppliers and retailers. The economics that have made Alberta strong is about free enterprise and not government tax grabs. Working in the oil patch, I understand every well drilled is about getting a reasonable return on investment and, with gas prices on a downward trend, this is not the right thing to do (nor the right time). As an ardent supporter for the Conservative government (under Ralph Klien), I find myself, for the first time, thinking about alternatives to a non business friendly government. |
| RRE0417 |
To the Alberta Government (who has been put in their seat by us, the people, and should listen to us on this issue), I appreciate the effort and concern you have shown by having this review into the royalty taxes paid by the producers in Alberta. However, the way I see it, you are trying to rob Peter to pay Paul. You state that the oil industry hasn't propersly compensated us, the owners of the resources, and would like to hike the tax by the sum of $2B or so. May I point out that the oil companies have put up all the risk in exploring and developing the oil & gas industry in Alberta for the last 100 years or so. No tax payer has carryed the burden of this risk, but surely has reaped the benefits through the employment opportunities, economical feedback of money in Alberta by the oil industry and gains in the ownership of shares into any company associated with the oil and gas industry. My opinion is that the oil idustry pays the going rate (market value) of the open market (capitalist economy in Alberta) for the land acquisition and the possibility to dril and exploit such land. They do this by analyzing the costs and revenues they can make on each project. Because of the capitalistic nature of the business, they will always give the needed rate of returns to their investors. Land acquisition costs and taxes are on the same column of costs in their balance sheets. If you hike the royalty tax by $2B, there will be a direct and proportional decrease in land sales at the other; net to Albertans will be $0B (that is still with a B for Billion, but zero is zero). The only thing that raising royalties will do, is scare away people from marginal plays (whcih covers most of Alberta) and decrease the economical activity in this province. I bet that BC and Saskatchewan are just licking their chops to get all this Alberta money and people to go exploit their resources. We have already seen a big exodus to Saskatoon from Albertans tired of the high taxes and low services (health, schools, roads) in this province. I say, don't mess with what is not broken, and greed will only be the end of it all, if you want to send us back to the 1980's and that federal fiasco called the NEP. Sincerely, [Information Removed] |
| RRE0418 |
By industry standards, Alberta and Canada have priced the oil sands resource at 13 percent of global norms.*1* The US General Accounting Office recently noted that Canada’s oil royalties in the oil sands are lower than those in Alaska or Louisiana.*2* Last year [Information Removed], Alberta’s representative to the United States, told a high profile oil patch audience “the royalty structure for oil sands is we ‘give it away’ at a one percent royalty structure.”*3* [Information Removed], former chair of the National Energy Board, promoted this “give it away” approach to finite resources at a Texas energy gathering sponsored by the Canadian Consulate General last year: “Where else can you purchase in place oil (well, bitumen) for one cent a barrel?”*4* *1* [Information Removed], “Alberta Losing Out On Millions: Report,” August 15, 2007 *2* General Accounting Office, Oil and Gas Royalties, 2007 (GAO-07-676R) *3* Interstate Oil and Gas Compact Commission, [Information Removed], Transcription of Tapes from Austin Annual Meeting, General Session, October 16, 2006 http://iogcc.state.ok.us/news_presentations_2006_Annual_Meeting.html *4* [Information Removed], CCE Canada Think Day, University of Texas at Austin, March 9,2006 [Information Removed] |
| RRE0419 |
Can the increase for the oilsands companies be converted into amount per barrel equivalent of oil. For example, if the oilsands companies produce 3M bbl per day or roughly 1.1 B bbl per year, and the additional taxes amount to $150M per year, that would equate to about 14 cents per bbl. If the public knew the additional taxes were only 14 cents per bbl, how do you thing they would vote? |
| RRE0420 |
fight for our fair share. |
| RRE0421 |
To Government of Alberta, The royalty recomendations proposed by the Royalty review pannel is not fair for the people how are living in Fort McMurray. Fort McMurray whole economy depends on the Oil industry if this industry is disturbed the consiquenses of this could be unbearable for most of residence here. These are the some of effects we could see 1) loss of jobs as a result loss of income. 2) housing bubble will burst that will leave most of the residents poorer than they any other city in canada. 3) WHen we see the Fort McMurrays boom is over that means Alberta's boom is over too. We would appriciate if the government keep up to its conservative values rather than distroying the industry that brings bread and butter for most Albertans. From [Information Removed] |
| RRE0422 |
stop going after the oilfield for more money I bag you my hole family works in the oil field from my two brothers my father my wife and my self we can not servive any kind of job loss if you proceed with your current path I hope the unemployment account is fully stocked because you will need every cent to sopport Alberta |
| RRE0423 |
Business is not about being fair. Business is about efficiency. Fairness and generosity gets spread pretty thick when there is gravy to be had. If “Fair Share” (the most incredibly biased title to a report I’ve heard in years) means bigger royalties prepare for less provincial revenue, less corporate sponsorship, less shirts and equipment for our backwater ice rinks because some generous suppliers will be going broke or will be “rationalized”. Don’t work in the oilfield? Don’t care? You will when your house price drops. You will when your mutual fund loses a bunch. You will when your taxes go up? You will when your oil buddy at the bar stops showing up to buy the beer. You will when no one is stopping to buy stuff at your store. |
| RRE0424 |
If you want to kill the economy, the royalty report is the way to [Expletive] it. People will be unemployed, and Alberta will be crashing heavily. |
| RRE0425 |
Hi Alberta, My name is [Information Removed] as a Production Field Technologist. With the proposed royalty increase I am NOT impressed with my provincial government. What most people don't realize is the capital costs that are involved in producing oil. Working in the Bonnyville area, producing heavy oil, [Information Removed] netback is approximately $24.00/barrel, even with the price of oil at $80.00/barrel. The impact that these proposed royalty could be dangerous, is not just going to affect the guys in the Calgary Office it's going to affect everyone. Not just things in the oil and gas industry (drilling rigs, construction and servicing) but including things like small business owners, shopping centers, and even your local grocery stores. Everyone living and working in Alberta will be affected. Is the best thing to do nothing? NO! That is not the right answer as well. Between the province and industry there must be a compromise that will benefit both sides. We have a good thing going in Alberta, let’s not destroy it. PS. Where is that money going to go? I know this might sound a little sarcastic but is it going to the teachers and nurses. I know they play a major part in this province but that money is everybody’s and should be detribalized evenly. Tax cut, etc. Thanks [Information Removed] |
| RRE0426 |
I think, as many oil and gas producers have stated, that the royalty review is quite far out of whack with current market trends. The fact that all these companies are committing to cutting their Alberta budgets should be a sign that something is wrong. To me that says that instead of Alberta levelling the playing field with other gas and oil bearing states and nations, they have swayed the advantage unfairly to other areas. Clearly the grass is truly greener on the other side, not just a metaphor to be used in those "Move back to Saskatchewan" commercials. The trickle down effect will be seen far and wide by all sectors, and will be noticed in not only the loss of royalties, but also the loss of jobs, and the weakening of an entire economy. We are pushing our companies into international arenas, and soon, they may just give up on us. It's time to realize that the government does have a place in the oil and gas industry, and should reap the rewards, but an unfair royalty regime will not benefit either party, produced, or government agency. |
| RRE0427 |
I strongly disagree with any additional royalties, Canada is grotesquely over taxed as is. |
| RRE0428 |
"Our Fair Share" is wrong for Alberta. As a resident of Alberta for the past 17 years, a conservative party supporter in elections over this period and an employee in the oil and gas industry, I am writing you to express my dismay at the findings of the “Our Fair Share” royalty report, as well as at the statements from the current government indicating it may implement these recommendations. While I do believe royalties can be increased, this must be done in a small, measured increment so as to not shock markets and industry spending, and be appropriate for the current economic environment. The foundation of any market-based economy is economic investment, whether it be in the market or industry/consumer spending. In the competitive world economy, the jurisdictions with the most favourable investment terms tend to attract more investment, therefore greater wealth, employment and spin-off benefits for the local economy. This is absolutely fundamental to our future; yet it appears this Report has taken a page from the NDP playbook and may be leaning towards wealth redistribution through higher taxation, fundamental to socialist doctrine. My chief concerns with the economic fallout from the Report are: (1) Large-scale reductions in industry spending due to higher royalties and taxation (2) Significant decreases oil and gas production and revenues, (3) Market retreat from Alberta’s oil and gas industry, making Alberta companies prime takeover targets for foreign multinationals, (4) Lower stock valuations, negatively impacting retirment savings for many, (5) Industry layoffs and bankruptcies, reduced industry hiring of new graduates, (6) Reduced consumer spending causing hardship for small business owners across the province, but most significantly in rural areas; Much has been made of the royalty increases implemented by the Lougheed government in the 1970’s, which had little apparent effect on the industry. I am sure you know that the productivity and reserves of wells drilled in the 1970’s would easily dwarf that of a typical well of today, leading to a major bust in terms in the assumptions as to what today’s industry can bear based on this analogy. Also, in the 1970’s industry was dominated by foreign multinationals (ie. Imperial, Chevron, Texaco, Shell) which could shoulder royalty changes in one of their global operating areas with little difficulty. Today, there are over 700 oil and gas companies based in Alberta and controlled by Albertans, lead by home-grown companies such as Talisman, Canadian Natural, and EnCana. Alberta is the bread and butter of most of these companies, and a rise in royalties impacts them significantly. Simply put, for many companies there is nowhere else to go, and higher royalties will be their death knell. Companies with assets outside Alberta will shift their investment strategies taking money away from Albertans. I note that most international basins have no relationship to the reality of the situation in Alberta, with our low-rate wells and shrinking reserves, low gas prices and costs which remain stubbornly high have contributed to an industry slowdown which started in 2006 and continues to gain steam today. Reports coming from industry in press releases and financial reports show the service sector is currently at a five year low in activity, layoffs are picking up their pace, and a growing percentage of the small and mid-sized oil and gas companies have been reporting losses this year. Coupled with anticipated royalty increases, in 2008 Alberta might be expected to enter a recession. The release of this Report has had the effect of polarizing opinion in Alberta, setting a grim divide between industry and non-industry groups who vilify industry and believe this is going to mean wealth transference into their pockets. Indicative of this is the fact that a high percentage of Albertans, when polled, supported the Report’s conclusions. Not surprisingly, when you dangle money in front of people, they tend to support any position which is might be in their self-interest. Unfortunately, most have no idea what the ramifications to the economy and their own financial position will be. It is apparent that the authors of “Our Fair Share”, (the title of which indicates the ultimate intent of the Report, as explained following), intend to effect a classic socialist large-scale transfer of wealth in the form of higher taxation and royalty levies from the economic engine of Alberta, and for what purpose? Was not a major lesson of the 20th century that people and economies prosper when taxes and government levies are low? At what point does the concept that wealth can only be earned through work become subservient to messages of free money and services? In conclusion, I reiterate my opposition to the implementation of the recommendations of “Our Fair Share”, either as a whole or in substantial measure. Thank you for your time. [Information Removed] |
| RRE0429 |
I believe that the citizens own the oil resource and have the right to benefit from it. Other countries do more to protect the trust but in Alberta we have not been properly paid. The funds we should receive should be funds for civil services like health care, decent public education and investment in infrastructure. I want the government to take the lead from other countries that have more substantial royalties because that is the real heritage savings and trust that is owed to the public. |
| RRE0430 |
Not a smart idea! Please don't [expletive] with the economy! |
| RRE0431 |
In the long term, the new royalty system will negatively impact the Alberta economy much more than the government can ever anticipate. More tax = slower economy. And in any down-turn, it is the middle class that are effected the most. Realtors, waiters, travel agents, sales attendants, home construction labourers, car salesman, etc.. all must brace themselves for less. Be careful what you wish for. A slower economy could mean a Liberal governement in 2012. |
| RRE0432 |
The Royalty Review Panel has done an extensive job in examining the royalty process in Alberta. However, they have done a disservice to the public by stating that the royalty changes would result in $2 billion increase in royalties without factoring in the decrease in activity and production that the changes will cause. Their assumption of no net change in production through to 2016 even with higher royalty payments is completely baseless and skews their results such that the public now believes the increased $2 billion is truly there to be had with no economic hardship to be felt. It is the governments' responsibility to consider the larger picture - the result of implementing the report as recommended by the Royalty Review Panel will be a decrease in industry activity, less production, fewer jobs, lower personal income taxes paid to the Alberta government and possibly a small increase in royalties. The government of Alberta must make an informed decision considering all factors before implementing any changes. Not 'grandfathering' existing oilsands schemes is not acceptable. Companies have made multi-billion dollar investments only to find that the rules have changed. People and companies make investments based on certain expectations, and the greater the expenditure greater certainty and/or greater potential reward is required. By way of analogy - I wouldn't buy a car if I knew that the government was going to make me pay a toll every time I took it on the road. I bought one on the expectation that wasn't going to happen - the practice has been long established - toll roads are generally NEW roads built and I have an option of using the older, slower congested roads if I wish and therefore not pay the toll. Companies have spent billions on the expectation that royalties would be the same or they would be sheltered if changes occurred. I am opposed to the proposed royalty review recommendations. The 'public' awareness of how they will benefit has beeen skewed by the 'bottom -line' message of $2 billion more which overly simplifies the outcome. As a result the public opinion has been swayed and cannot be relied on to sway the final government decision on this matter. There is room to move on royalties, however the panel has gone too far. Take your time and get it done correctly! |
| RRE0433 |
I fully support the report of the Royalty Review Panel, and strongly encourage the government to implement all of its recommendations. Historically, the government of Alberta under present and previous political leadership has failed to protect the interests of the citizens of Alberta who are, in fact, the owners of the resources that are being extracted. At this point, the government of Alberta has a rare opportunity to demonstrate clear leadership in this area for Albertans by implementing all of the recommendations. When I compare the royalty regime in our province to the regime of other jurisdictions such as Alaska or Norway, I am embarrassed by the unwillingness of the present government to fulfill its responsibility in ensuring the fullest return on resource extraction that belongs to Albertans. At the very least, the complete set of recommendations of the Royalty Review Panel needs 1) to be fully enacted, 2) with clear and verifiable targets, 3) a monitoring of progress in achieving those targets, and 4) open accountability to the citizens of Alberta as to the progress accomplished. Anything less than full implementation of the recommendations would be short-sighted, reckless, and irresponsible to future generations of Albertans. This is a real opportunity for the government to demonstrate leadership. I encourage them not to let this opportunity to slip through their fingers. |
| RRE0434 |
I feel that some mid ground must be reached.The full recommendation may devastate our economy.I'm not an expert but I don't think you have to be an expert to understand that if big business is taxed to heavely money will leave Alberta,jobs directly and indirectly will be affected to what degree is the question.I ask that we don't challenge the system to a point of a major recession. |
| RRE0435 |
We strongly believe that the Alberta Royalty Review Panel’s reports should be carefully assessed by the Alberta Government as the Panel failed to take into consideration some of the very critical factors in making their recommendations. We are concerned about Alberta’s future economy that may be negatively affected by the Panel’s proposals based on misleading data and flawed assumptions. For the government, adopting this report may increase short term revenue but the sustainability of the industry and the vitality of Alberta’s economy may be soon questionable because: overall increase in royalty is indeed expected to be much higher and will have severe impact on the industry. Many of the projects will be no longer economic, resulting in a drastic reduction in capital investment and activity, further job losses for those who are directly or indirectly involved with the industry throughout the Province. We would like to point out that the Panel’s report understated high capital operating cost for Alberta’s mature basin and risks involved with long term capital projects such as Oil Sand and heavy oil. The negative change in royalties and oil sands will be detrimental to the industry eventually decreasing government royalty revenue in future. We suggest that the Alberta Government’s diligent review and careful consideration on future economic consequences to ensure our future and prosperity. [Information Removed] |
| RRE0436 |
I am a small business owner in medicine hat alberta, I think the royalty review could be re-evaluted but should not be drastically changed, alberta is a very good place to live and employes many people in the oil and gas sectors, these jobs would be in great jeporady and force people to relocate to other provinces or even countries if they are even capable, even if the royalties are raised because of the oil sands it will still affect thousands of people in the gas sector that have many years of experince in optimization and keep gas rates production up, this would force all major or minor gas producers to stop optimization programs and drop the [Information Removed] of gas produced a year and in turn drop royalties shares, in conclusion I think this should be handled in a very delicate way, Sincerly: [Information Removed]Medicine Hat AB |
| RRE0437 |
Perhaps we should commission an independent study on the effect the royalty recommendations will have on the oil & gas industry. |
| RRE0438 |
The proposed royalty increases negatively impacts the Oil & Gas recovery sector! We need a province where government’s future revenues are balanced by the need to support a continued robust industry investment by ensuring that Alberta’s royalty policies continue to support a healthy investment climate. If the recommendations of the “Panel” are implemented as is , you can be assured that the investments for the oil & gas sector coming to Alberta now will certainly decrease, thereby lowering the royalty payments, thereby lowering the income of “every Albertan” that they are so worried about. It does a lot of good for every Albertan to have the oil and gas under us if there is no one to take it out. Most industries have to make money to pay out monies. The Oil & Gas investors and shareholders pull out their investment funds and it doesn’t just affect the Oil and Gas industry it affect every contractor, business, community ,trades programs and families that benefit from the work force that they support now. There is more than a minor amount of those. One company that I know of employed over 93,000 Albertan’s directly or indirectly, and that is just one the companies that will be impacted by this recommendation. Please say no to this report! |
| RRE0439 |
I have read the royalty review and am extremely concerned with what the government of this province may enact as a result. Some aspects of the report seem to make sense - make it simpler, more to the province and the long term savings. But other parts are misleading and inaccurate. Its very cleverly worded and very crafty... The authors seem to think they can tell the government and the people what to think and do. I don't like that at all. How can the report assume removing $2 billion of cash flow not impact activity levels. Ignore the economic impact - the industry will have $2 billion less to invest. A little less than 10% of 2007 oil and gas capital. How can 82% of gas wells pay less royalty but the total government share go up 5%? The 18% would have to pay almost 100% royalty! The statement is based on $4 gas - if the price is the $6.25/mcf as they forecast every well pays more. Just a couple of examples and I recommend someone digs a little bit deeper. The industry has made record profits. But the government fails to account for what the companies do with that profit. A very small portion, less than 1%, is paid out as dividends - dividends that end up in RRSPs, RESPs, savings and pensions. The remainder, >99%, is reinvested in new wells, new seismic, new pipelines, new compressors, ....NEW OR ONGOING JOBS for all Albertans!!! If you assume an average well costs $1MM that will mean there will be 2000 less wells drilled in 2008 and every year beyond that. If it takes an average rig 10 days to drill a well, the rig only works on average 200 days so it can drill 20 wells. That will mean 100 rigs will sit idle all year - thats about 12% of all the rigs. Assume 50 people directly support the rig and that's at least 5000 jobs gone. Subtract off even more jobs when you account for completions, pipelining, compressor installations etc. 2000 wells is about a 10% decline versus the 5 year average and that will drop the production and the $2 bln increment the governement thinks they're going to get - that will start to drop pretty quick. Throw in the affect on the economics and that will mean even more job losses. More job losses less taxes. Fewer wells less royalties. Do you not think economics are poor right now? The report compares the government share of revenues to Texas. Texas is enjoying record drilling levels onshore - mostly gas just like Alberta. But more than half of our rigs are idle - why you ask? Economics! It costs us over $1/mcf to transport the gas to the same US market. Our capital costs are considerably higher. Less return means less activity. Activity goes where the economic return is more. More royalty to the government means even a smaller return - where do you think the activity level will go and the production and the royalties - the report is flawed? And this is just one very obvious example. Is the industry fearmongering. No we are truely fearful for the jobs of Albertans. We all have enjoyed a very properous period in the province - industry and all levels of government. $14.5 Bln last year in royalties compared to less than half that 5 years ago. Increasing income tax even with the drop to a flat 10%. Higher municipal taxes due to increased infrastructure and valuations. We have all prospered. More jobs than anyone could have imagined at the beginning of the millineum. Are activity levels too high. You could maybe argue that over the last 1-2 years ago. It was fueled by $12-14/mcf gas. But today ask the driller, pipeliner, service sector employee sitting at home today with out a job. Half the rigs are on the shelf. Gas is $4 and forecast to be about $6.25/mcf in the report. Economics are very frail and sensitive and today the industry reacts very quickly to the forces that drive them. Right now companies are in their budget cycle. The royalty announcement will affect where companies budget, especially the bigger companies with operations in the US and Canada - and that is who drills the vast majority of oil and gas wells in Alberta. To say it won't is extremely nieve. Will we leave entirely - no - but there will be considerably less activity - just look at this summer. And if the US enjoys another warm winter - gas storage is now close to 3.5 Trillion cubic - a record. Next year will look pretty bleak without a royalty increase - add in a royalty increase - I think you can forecast the impact! As a member of the ATA pension you must be cringing too. Canadian Energy index is off 4% while the US is unchanged. Its all about the royalty change! Is it long term? - the trusts have yet to return to even within 10% of their previous high and are now 20% below their previous high. Every single Albertan, every single Canadian that has a mutual fund, that has a pension, that has RRSPs or RESPs, has felt the impact this week and it will last just like the tax change on trusts has had a lasting impact. Thank you for your time, I do not need a response. [Information Removed] |
| RRE0440 |
I believe the government must be very careful about changing the royalties, this could destroy the Alberta economy and put a lot of people out of work. I do realize our Premier has been put into a very difficult position and my support goes out to him. |
| RRE0441 |
The immediate impact of the proposed royalty rates will be a boon to the Alberta government. Correspondingly it will reduce cash flows to the oil industry. The oil industry reinvests on a cashflow ratio basis in economic prospects. The immediate impact will be a significant reduction in spending. Unfortunately the government does not invest in oil and gas and therefore the ultimate impact will be a reduction in jobs and ultimately taxes. The long term benefit will be negative. You only have to review the impact of the NEP and the PGRT to see what will happen. Don't destroy a good thing with a decision based on greed. [Information Removed] |
| RRE0442 |
I've read through material on both sides of the issue and it is overwhelmingly obvious that the Report of the Alberta Royalty Review Panel is flawed and misleading. I would like the Alberta government to get down to some honest dialogue with the Petroleum Industry (now that you have recommendations, real discussions can be held). The most obvious evidence of this is that the report suggests that Alberta’s take is the lowest compared to other jurisdictions (based solely on percentage of take) yet the 2007 Global Upstream Performance Review by John S. Herold Inc. shows that Returns on Cumulative Capital Costs are the worst for Canada compared to other jurisdictions. “Our Fair Share” should be based on the economics of the jurisdiction. The many flaws are detailed as follows: • The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes. • The Report assumes there would be no impact on activity, production or lease sales. In fact the recommendations will have a substantial negative impact on Alberta and Canada's economy. Most Deep Gas wells will become uneconomic and the proposed Oil Sands Severance Tax will make most future Oil Sands projects uneconomic. Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. • The Report understates cost estimates and inflation and fails to consider the significant impact of the rising Canadian Dollar. • The Report does not consider the commitment to sustainable development and the reduction of emissions in Alberta compared to other jurisdictions. • Contrary to claims, all gas wells will pay higher royalties. The Report states that 82% of gas wells will pay reduced royalties but this would only happen when the price of gas is about $4/mcf. At the break-even price of $7/mcf all gas wells would pay higher royalties. • The Bitumen Valuation Methodology is not based on the laws of supply and demand which open it up to being significantly wrong, in either direction. My recommendation: Now that you’ve got everyone’s attention, you should go back to the Stakeholders (residents of Alberta and the Petroleum Industry) and discuss how to really make it fair. Don’t make a decision without more real dialogue. |
| RRE0443 |
The analysis in the report is flawed Ø The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, Ø The Report bases its recommendations on outdated or erroneous costs, and Ø The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today Ø Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and Ø The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta Ø The recommendations will have a substantial negative impact on Alberta and Canada’s economy, Ø The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, Ø The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and Ø Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. We are actively talking with members of government to ensure our concerns are carefully considered before any final decisions are made. We are encouraging the Province to take a cooperative and consultative approach to the next steps of the royalty review process. However, it appears that the government is determined to meet its mid-October deadline for making a decision. As such, we are encouraging the MLA’s to eliminate the most onerous elements of the Panel’s recommendations: Ø The fiscal terms for existing projects should be honored, Ø The current Royalty Adjustment Program for Deep Marginal Gas Wells should be maintained, Ø The thresholds for the sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs, and Ø The Oil Sands Severance Tax should not be implemented. |
| RRE0444 |
I'm sure you have heard many responses from industry about the royalty changes. I don't plan to repeat all the facts that many members of industry have likely posted as feed back to the panel's report. I will simply leave you with this. Working as a geologist in the Athabasca area of Alberta I am chasing small targets which still produce at high initial rates. After running our 2008 drilling locations with the new royalty regime factored into our economics my team has 4 out of 20 original drills which pass economic hurdles. Gas prices are down, targets are getting smaller, economics are getting slimmer. I think that the new royalty regime will discourage many new drilling activities, and as such will put pressures on oil workers within the service sector and in rural Alberta. It is entirely possible that a restructuring will lead to less drilling activity, lower land bonus payments for Alberta, and possible lay-offs. Why would my company keep me around if I only can produce 4 marginal prospects which pass all the economic hurdles. For a province which recently spent $400 on each person in Alberta and which repeatedly reports budgetary surpluses while showing no debt (a feat only accomplished in 3 areas of the world) I am led to believe that Albertans are getting their "fair share". As far as I'm concerned my continual employment matters more than any change to an already substantial royalty regime. |
| RRE0445 |
Please do not go ahead with the recommendations of the Royalty Review Report without further study and review. To do so will, in my opinion, stifle the industry, resulting in loss of jobs, a decreased economic outlook, fewer projects coming on-stream, reduced revenue for the government, and a general downturn in the economy of our province. Let's look for a WIN-WIN alternative, where the oil industry can remain competitively viable and the province can increase its revenues through increased royalties. Let's not repeat the NEP disaster of the early 1980's! Thank you! [Information Removed] |
| RRE0446 |
I believe that you should increase the royalties. Albertans are not receiving their fair share of the royalties and this should change. I think that this will benefit alberta in the wayb that we can use this money for undertaking new construction projects. This will make morning traffic less of a bother for a normal citizen. Thank you for your time persnickety |
| RRE0447 |
I appreciate the government's recent efforts to undertake a more independent review of royalties. For this the government should be commended. Upon reading the work of the Panel - and thanks to those who sent a copy on, I fully support the recommendations of the Royalty Review Panel. I am extremely disheartened to hear that the Auditor General had asked and expressed concerns over royalties in previous years. While these concerns were being voiced, the current Energy Minister had commented in the legislature that Albertans were getting a fair share when department officials and others were concluding the opposite. I must admit that I have now lost confidence in that Energy Minister. I expect my government to act accountably (thanks for the Review) and honorably (time to consider past decisions and commitments and come clean). Regards |
| RRE0448 |
I would like to express my strong support for the recommendations of the Royalty Review Panel. The royalties have been far too low for too long and it is time we were at comparable world levels. Our land is being bought up by huge multinationals. They are using our water, polluting our land, removing the product and they are not paying their fair share. In no other sector are businesses allowed to recoup set up and production costs before having to pay any taxes. As a small business owner, we were not allowed that luxury. We had to pay taxes immediately. CPAC has already started with their fear-mongering saying that they will have to pull out and there will be a major economic downturn. I suggest call their bluff. Canada is a very stable and safe country in which to do business. Furthermore, if there is an economic slowdown, would that be such a bad thing? The wealth of the oil industry is concentrated in the hands of a few Albertans. Many of us do not see any of the benefits, other than higher costs for everything. I think it is very important that we slow down and reassess our priorities. We are so far behind in social issues - eg. affordable housing and in sound environmental management. Thank you. |
| RRE0449 |
I am against the suggested royalty changes as presented in the final report. I believe that the impact of the oil and gas industry has on our economy should be carefully considered before making changes to the fiscal structure. Royalties could increase provided that it can be determined that changes to the rates would not impact Albertan's wealth overall (including the impact of oil and gas in the general economy). Several aspects of the royalty review compare to the National Energy Program of the early 1980s, which had a devasting impact on our economy and overall wealth of the province. I suggest that the government tread carefully so that we don't lose our "Alberta Advantage". |
| RRE0450 |
I am concerned that the proposed $2 billion increase in royalties will 1. damage the Alberta investment climate 2. Encourage other Canadian jurisdictions to demand "more" 3. Further reduce activity in the oil/gas patch - already drilling activity is significantly reduced due to high costs. What ever, is decided you don't want to kill the "golden goose". It is ridiculous to compare our royalty rates with other oil producing areas as we have our own significant costs of production which are much higher than most other areas. The issue is much more complex than the simplistic drivel headlined in the media. Areas where we could demand more from the oil patch are in significant charges for fresh water use in the oil sands. Higher charges for environmental contamination e.g. the tar ponds are the greatest risk for environmental catastrophe in Alberta...& other parts of Canada. Seepage from the ever growing tar ponds is also of huge health risk for Albertans. I hope the oil/gas companies are contributing to some kind of "catastrophe fund." Get them to ramp up their spending on reducing toxic emmissions ( I don't include C02 in the word toxic). This would have a direct benfit on Alberta. |
| RRE0451 |
Dear Sir: Sudden increase of the royalty rate may scare investors away. I am sure that you do not want see this. It can be increased gradually through years, and make it acceptable to the investors. [Information Removed] |
| RRE0452 |
We have to make sure Albertans get there fair share as this will not last forever. Taking more royalties now will help our kids and our kids kids |
| RRE0453 |
Do your homework people. what you are proposing could have drastic effectson/ the oil gas sector/small business and the tax payer. I see lost jobs, higher fuel prices,even economic recession. [Information Removed] tax payer |
| RRE0454 |
I believe we need to strike a balance between what industry wants and what is fair return for Albertans; what I see as a bigger issue here is the exporting of raw bitumen out of province for upgrading and refining. This process provides no value for Albertans and I believe that the oil companies should be required to pay a premium on any exports out of province. |
| RRE0455 |
I want the government to implement ALL the recommendations in this report. Alberta should also consider an increase in the take on windfall profits when the price reaches a designated threshold of 70 or 80 $ a barrel. |
| RRE0456 |
I'm all for getting our fair share of the royalities from industry for our energy resourses. We need to make this a win-win-win for all concerned. Those are: industry-Alberta residents-Alberta government. The monies generated from the added rotalites need to be spent wisley. I think we need to desperatley invest in our education system by improving our present schools (so many of them look so dilapidated), more teachers for smaller classrooms. Investment in post secondary education by subsidized tution for Alberta residents.. There were 2 excellent artciles written and published in the Calgary Herald Oct 21 by David Detomasi, and Colleen Killingsworth which gave me good perspective. Lets do it right |
| RRE0457 |
I would be very nervous of any changes to the Royalty program. I nor any of my family is in the Energy business, however I am very scared of the potential for an Alberta economic bust. There are too many similarities to our last bust (increasing home prices, increasing interest rates, increasing oil prices). I realize that a change in royalty rates is not the same as Ottawa's National Energy Program of the 80s. However, as we have learned from the recent sub prime mess in the US, hysteria and panic can occur if the average consumer thinks something is negative and could impact them. What should have been a small national problem for the US went global. A change in Royalty rates could be viewed as a slowdown in the oil sands developments or as some other negative message to our booming economy. We do not need any negative views or potential slow downs as this could be the end to an otherwise great Alberta economic run. Is that the legacy the Ed Stalmach government wants to leave? That they were the ones responsible for stopping Alberta's economic juggernaut? Let's learn from our past. Do not bite the hand that feeds us all. Do not mess with our primary economic growth industry. thank you |
| RRE0458 |
I have read the Royalty Review and I support the adoption of all the recommendations |
| RRE0459 |
Yes, the royalty review is good for the future of the whole canadian economy. My question is, what if oil was not over $70/barrel? Would this royalty review been started if companies were just getting by at $50/barrel? I work for a oil sands company and our company creates close to 100,000 indirect jobs across canada. We fly in workers from almost every province. I think the oil sands royalty should be reviewed very carefully, as it will have a negative impact on alberta's future and growth. |
| RRE0460 |
There was no justification when the Lougheed thugs initiated this and it should be cancelled not doubled. The province has no business in establishing an arbitrary tax on private property. |
| RRE0461 |
Looking at the state of our province it is obvious that a large part of the petrolium industry is beyond viable and extremely profitable. There are also many examples of economic booms around the world actually being detrimental to the quality of life of the real people that live in these places. Increasing royalties were this report recommends is the best way to cool our overheated economy and gain the most from our non-renewable resources in the long run. Also, why would we pay someone to spend 6 months to look at this if we are not going to take there recommendations... |
| RRE0462 |
We have a letter to submit with our comments. Is there anyway to do that? |
| RRE0463 |
Gentleman/Ladies: This is my 51st working year in the Oil and Gas industry. Many up's and down's regarding industry fortunes have occurred during this period of time for a variety of reasons. The majority, however, can be contributed to government interference, again for many reasons. If Albertans are not receiving thier fair share of the natural resources revenue, then by all means change the royalty structure. In doing so, government must proceed in a manner that is nondisruptive (probably in stages over a period of time) employing a fair and equitable process for both sides (Albertans and the Oil and Gas Industry players). Above all, forward rational thinking must prevail or we will potentially find ourselves involved in a situation with far greater negative impacts than is being experienced with the current and past EUB debacle or the NEP of years past. |
| RRE0464 |
I disagree with the government raising royalty rates-just because the economy is going well does not give the government justification in grabbing more money-how about controlling some spending. |
| RRE0465 |
It is my view that the Royalty Review Report is a poorly informed document which will negatively affect our province in ways too numerous to count here if implemented in its current form. [Information Removed] |
| RRE0466 |
The provincial government set up an independant task force to do a job. They did it. They sought input from the public and from the industries involved. It makes no sense to now be setting up more committees and review panels to seek more input. The fact that Albertans have been very generous with the petroleum industry is as self-evident as anything in our society can be. In fact, the power structure in this province appears to be the petroleum industry has the greatest amount of authority followed by the provincial government instead of the other way around. Please! just carry out the recommendations of the excellent report. [Information Removed] |
| RRE0467 |
I am concerned that in raising the Royalties the government is planning to raise it too much too soon, I do like many Albertans think it has to go up. Unfortunately the Klein government should have been doing it a percentage at a time over the years, I do not think that you can do so much and I do believe that the province will go into an immediate decline. I work in an oil service company and we are already seeing slowdowns as everyone is taking a wait and see attitude and this is on top of a general slowdown of the industry over the past year. PLEASE DO NOT do this without some really serious consideration as to what will happen to our prosperity. I am retiring in 2 weeks and can easily remember the Energy Program enacted in the 80's and it was not a fun time, I would hate to see our province go through that again, there will be unprecidented bankruptcies and layoffs - is that really how you want to be remembered??? Sincerely, [Information Removed] |
| RRE0468 |
Stand strong when facing the oil companies, Premier Stelmach! If three want to leave, there will be at least six to replace them! |
| RRE0469 |
I believe the bigger oil companies should pay higher royalties. For the smaller companies I would suggest that the amount of royalties should be decided by their last year's income tax. Thank you! |
| RRE0470 |
I heartily endorse the review reports findings that an autonomous audit body be created with the appropriate mandate and authority to collect, verify and report on any and all key indicators related to the collecting and recording of royalty revenue and its eventual disposition. In accordance with the directives of the report I also emphasize that to make the autonomy from other government authorities obvious, AND to streamline the collection of all such royalty data, that the new audit agency be headquartered in CALGARY. In fact, as an independent computer consultant in the oil patch since 1981, I would offer my services to such an authority and would be mighty pleased to participate in the establishment and rigorous implementation of data collection, verification and reporting on behalf of such an agency. |
| RRE0471 |
Obviously some kind of reasonable balance needs to be struck between ensuring Albertans get their fair share from the resources in the province and oil companies get a fair return on their investment. This ensures the continuation of the economic engine for the province. Perhaps the royalties can be based on the price of oil and gas. Using a sliding scale, if the prices for oil are high, then the royalty is also higher. If the price falls, so does the royalty. The timing of the review is quite poor. In that most oil companies are in budget planning cycle for next year. Planning is difficult when future returns are unknown. |
| RRE0472 |
I believe the report has not fully taken into consideration effects this will have on companies. Lots of deep gas drilling runs on tight margins already and this will not help. Certain rates of return need to be met by BU's in a company and if there aren't met funding doesn't happen. So I don't feel companies are making threats they are simply stating that if the policy is adopted money will be moved to more economical areas. In addition, I don't think the wide spread implications have been examined and what adopting this royalty review could do for the province. Sure you are putting extra money in your pocket, but it will take money out of other areas so are you really ahead. |
| RRE0473 |
Royalty rates should be raised immediately as we are losing millions of dollars a day. We are the lowest in the world and why should Albertans not get their fair share from the oil companies as other countries do. The proof is in the extreme profitability of the companies and the CEO's takehome pay and retirement benefits. |
| RRE0474 |
The oil companies cannot have it both ways.Since they need to charge us "world price" for their finished product they should expect to pay a fair price for the royalties. It is quite amazing how the world price for gasoline can vary from community to community within the province itself and can be even cheaper outside the province it originated in. I beleive Albertans are being charged more for many goods and services just because of the prosperity in our province. So much for the Alberta Advantage. I also have grave concerns regarding the oil sands. I have always questioned the sense of using up two resources to retrieve one but after reading a recent article in Macleans magazine I find myself opposed to more development. I beleive if more Albertans knew the amount of water and natural gas consumed they would be shocked. However, the storage of the contaminated waste water is something I was not aware of and I find it a totally unacceptable practice. So, if an increase in royalties will slow development of the industry as a whole , I would not consider that a bad thing |
| RRE0475 |
I read in the news today that the Priemier has already promised the oil industry that he will not follow the no grand fathering recommendation made by the panel. Yet he is telling the public that he has not made up his mind yet, smells like another back room deal. Call an election so we the true citizens of Alberta can show you what really think of how the Conservative Party has mishandled royalties. You have one chance to make this right for our kids sake do not blow it like Klien did. I did not leave my e-mail because the last time I commented I got a useless response that was written by some poor person and thanked me for my concern but did nothing to allay my fear that as a citizen of Alberta I am being sold out. [Information Removed] |
| RRE0476 |
Dear Premier Stelmach, Dear Mr Stevens and RRP members, Congratulations on representing the inerest of all Albertans honestly and lucidly in the matter of oil and gas royalty rent collection. Like many around me, i believe that the RRP recommendations are a strict minimum, and that the report should be accepted in toto. The report is a balanced , conservative, and grounded compromise. Although the oil and gas lobby has been strident in its opposition to the panel recommendations up to date, the reality is that the report may if anything be too generous to the industry. For example, the royalty rate of 1% until the project's construction expenses are paid off made sense 20 years ago when there was uncertainty about the oil prices. But the architects of the royalty rate back then failed to take into account the fact that the value of oil would go up because of demand and the fact these resources are not limitless. There should have been ceilings on the exemption, so that the 1% royalty break disappear when the profitability uncertainty disappears. Curently, there is no reason whatsoever for the 1% royalty break until construction costs are recovered, when the oil prices are near $80 and production costs are near $25 a barrel. The international oil companies are lining up to buy leases, and the price of oil is going nowhere but up. And in the area of overall Alberta's total share of revenues, including taxes and royalties, the panel recommendations are also quite generous to the oild and gas industry. Other jurisdictions collect far more if I understand correctly. Alberta collects around 25% of royalty, and the panel recommends 33%, but Norway collects 78% and Venezuela collects 90%. The industry is still very interested in investing in those jurisdictions, so the profits still can't be too bad under the higher royalty rate conditions. Finally, I can't understand why the Government wants to see its revenues drop by more than 4 billion dollars between 2006 and 2016, despite increase production and oil prices. These are our resources, and they are increasing in value. The oil and gas industry did not create the oil and gas, or add anything to it that explains the increased value. It is increased worldwide demand, and limited supplies, that increase the value of our resource. We need as Albertans to collect our due, and the Royalty Review Panel did us a favor with it's recommendations. These are strict minimum recommendations, and our government needs to start by accepting the panel's findings at once. Every month of delay in accepting the panel's recommendations is costing Albertans $40 million dollars in lost revenue. I trust that those who are defending the public interest will make their decision soon, and in our collective interest. [Information Removed] |
| RRE0477 |
Dont implement changes and I will vote for you again... change anything and I will NOT vote for you or your party ever again. Why are you playing around with our futures? |
| RRE0478 |
I have been working for the oil and gas industry for several years as an accountant. If this royalty recommendation is approved I will mostly likely lose my job since it directly affects my area. I have been very fortunate in the last couple of years that I have upgraded my home and I spend more money in Alberta. If I lose my job, well I will no longer be able to donate any money to [Information Removed], the [Information Removed]....I will also have to spend less money in the grocery store and even sell my house. God forgive that it goes into foreclosure. Let look at the big picture instead of helping Albertan's with higher royalties it will actuall hurt us more. Please, I urge you to please reconsider this proposal for higher royalties I don't want to relive what happened in the 1980's ( National Energy Program) when the was so many foreclosures, suicides and many, many people on EI and Welfare. This will affects us all in a very bad way. |
| RRE0479 |
Dear Mr. Premier, I urge you to listen to the economic facts being presented by the oil and gas industry. The ARRP panel has got it wrong and misled the media and the average Albertan by entitling their report "Our Fair Share". Read the letters being submitted by [Information Removed] and numerous other respected industry associations, investment banking firms and individuals. In particular pay attention to the proposed changes to conventional oil and gas. The panels recommendations on "high" rate wells is absolutely wrong and going to discourage, if not, kill exploration in our province. Historically Albertans have been risk takers and in order to take risk there has to be a reward. Increasing royalty's to 50% takes away a lot of that reward. It is increasingly difficult to find new pools in our mature basin and the costs have increased dramatically. In addition operating costs have increased dramatically as well. Finding & Development costs are in the $15 - 20 range per boe, operating costs in the $10 - 15 boe range while natural gas is selling at $5.00 gj. Where is the profit?? This doesn't even take into consideration the 20 -25% royalty take that goes to the Alberta government. Remember royalties are based on revenue not profit. Last October the federal government crippled investors and the income trusts with there new rules and taxes on income trusts. As a result of that announcement they devastated the share prices of junior oil and gas company's and impaired their ability to raise capital. The Alberta government also took away ARTC this year and that was something that helped many junior company's. Please don't be the government that put the final nail in the coffin of the junior oil and gas industry in Alberta by implementing this royalty review report that is based on mis-information. The oil and gas industry in this province will then be comprised of pre-dominantly large multi-national corporations that won't re-invest as much in Alberta or take the risks that the Junior oil and gas sector does. |
| RRE0480 |
I can not for the life of me understand how a government that has made millions and millions of dollars from the oil industry can allow a royalty panel that is so misinformed. Does it have any ideal how many people will be affected, how many jobs will be lost!!! What is our premier thinking - pardon me - he's not thinking and under any circumstances will this government get my vote again!!!!! |
| RRE0481 |
The Royalty issue seems to be one that can be easily [Expletive] up and have a major impact on the Alberta economy. I firmly believe that there is room to make this decision successful, but not by the middle of October. With all the flaws being reported and allegations of inaccurate data for the Report on Royalties, I believe that the Royalty should be negotiated with the industry. The Gouvernment of Alberta should reserve the right for the final decision, but at this time, making a decision without involvement of the industry could be devastating and foolhearted. |
| RRE0482 |
Hello I believe that there needs to be a change in the Royalty given to the Crown. I am not convinced that it needs to be as stated in the report. I agree that Albertans need to receive a "fair share" for our resources. I wonder however, if it needs to be left to the Oil Industry to supply ALL of that. Does this government have the same restrictions on its fiscal spending as business? I'm not so sure. How much of our tax dollars goes to inappropriate spending, bad business choices or individuals and staff supporting lifestyles beyond their means due to a belief of entitlement as representatives of the people of Alberta. Is the government thinking of increasing the fees for Grazing Leases or other documents it issues to private citizens for use of an Albertan resource?? I am sure an increase in fees, royalty percents, and rentals is due. I'm not convinced that this report has all the facts. Is it using current information or out dated data? Is it perceptions or statistics? If the industry starts to pull out billions of dollars of investment, do we know what the outcome of that will be? Less in every Albertan's pockets. There will be less money to the government from fees, royalties, and rentals, job loss, revenue loss for every aspect of life in Alberta. Yes the industry makes money, but that is the nature of private industry. It also assists with stewardship of the environment - for all Albertans; it supplies employment, it creates jobs. Not only does the industry pay fees, royalties, and rentals. It pays taxes; the employees pay taxes, the landowners, and suppliers pay taxes. All Alberta benefits in a variety of ways from the industry investment, some in subtle ways others in obvious ways as in more taxes and fees. A rig hand works all over Alberta and yet may come from one of the small communities. Their pay contributes to local business as well as municipal, provincial and national taxes. Doctors, dentists, restaurant employees, garbage collectors, lawyers, schools, hospitals, politicians, cities, villages, towns, parks, financial clerks, communities, retail clerks, farmers, small business, teachers, suppliers all benefit from a healthy oil and gas industry. Are Albertans so naive as to believe that the increase of population, jobs, and economy in our Province is due to the kindness of others? Get real. People from all over Canada have chosen to come here because there are jobs available; our economy is strong; we have a resource that is of importance on the world stage. If Alberta is not careful, we may lose it all. The relationship between Government and Industry is like a dance. Each must do their part, know the terms of engagement, and know how to work with each other, be willing to give and take, and know when and how to lead as well as when, and how to follow. As in a dance, each partner must be responsible for their part of the dance, but when brought together, can create a supportive, invigorating, and sustainable flow of energy. This review is like adding a new routine. At the end of the day, the most beautiful and flowing dance routine is a win win situation between the partners, due to expressing needs, wants and desires, hearing and listening to both partners, and finding the balance that allows for growth, change, flexibility and stability. I do NOT support full endorsement of the review as it stands! I do support increases in the fees, royalties, and rentals but not at the expense of the loss of the Albertan lifestyle. A balance between government and industry is required. Consider all factors. I am not convinced that has happened. I also would prefer to see current figures used. It is inappropriate to use the price of oil at today’s price and yet the cost of finding and development at a price that is 2 or 3 years old. Try to compare apples to apples not oranges. Use current pricing all through the equations. This report is a great starting point for creating a fair, equitable balance between industry and government; it however cannot be the final word. Thank you for the opportunity to express my views. Sincerely [Information Removed] |
| RRE0483 |
Bravo! As long as there is money being made I doubt an increase in royalties will scare anyone off. I am not comfortable with the idea of changing the rules after the game has begun; particularly with projects that are producing already. That said, creating a privileged tier of producers also raises issues. Thank you for following through :) |
| RRE0484 |
Raising the royalty rates would be a bad idea. It will hurt our economy in more ways then one. People will loose their jobs, oil companies will leave and that will slow our economy down a lot, then we will notice prices to decline people also not spending so much money cause they have no job. Alberta is doing great, why become to greedy and lose everything. Greed gets you know where fast! |
| RRE0485 |
I say, don't raise it. If you do, not anymore then the oil companies will put up with. What the rest of the albertans don't understand is how bad it will be if oil companies stop investing in alberta. Mr.Stelmach needs to share with alberta how hurtfull it will be to ALL OF US if oil companies stop investing, tell them how high our unemployment rate will jump. |
| RRE0486 |
Make the oil companies pay more. I only wish someone would pay my wages and costs so I could attend a rally on the Legislature grounds. |
| RRE0487 |
Why don't you oblige the oilsands companies to build and maintain the roads and other selected infrastructure, instead of a flat tax (royalty)? This rise can kill or inhibit a booming industry and hurt Alberta's economy instead of improving it! A booming industry has to be regulated but not killed. |
| RRE0488 |
I voted everytime to support Ralph Klein - since Stelmack has come into power it is very apparent that he does not support seniors in Alberta or does not consider that Edmonton is as important as Calgary and other communities in Alberta. If he every tried to get down Gateway or Calgary Trail at rush hour he would know why Edmonton needs to receive at least the same as other communities. He should try a live near this location. I will be keeping a close watch on his points of view prior to any election - and I can tell him that at present he will not or anyone running for the conservative party in my riding will not be receiving any votes from this household. I have never voted Liberal in provinical elections - but I am considering doing so in the next election Thank You [Information Removed] I was very proud to say that I was from Alberta and had no difficulty supporting Klein when he cut back to get Alberta out of debt - it was about time that government starting running the province more like a household where you only spend and purchase things that you can afford. |
| RRE0489 |
I do not agree to increase the Royalty on Natural Gas production, as its profit has not changed in the past and it is already on the edge, most of the projects have rate of return of 7 to 10% and this royalty increase can lower the RR by about 2% and they won't be ecconomic any more. Also more than half of oil and gas business is related to gas. This is not right for Albetain to loss lot of jobs and oppurtunities. increase in Royalties = un-ecconimic Natural Gas projects = Lossing jobs = more EI on government shoulder = less income tax > government income from increase of royalty on Natural Gas. People in Alberta are able to work and please do not damage upportunities to Albertians. It is not right for most of us. [Information Removed] |
| RRE0490 |
Can an independent review panel and the auditor general both be off base on this? I think not. The Government will need to act in a rational way. I will be looking for nothing less. |
| RRE0491 |
The Alberta government should implement the recommendations of the Royalty Review Panel. |
| RRE0492 |
We, the people of Alberta have lost billions of dollars in revenue since the announcement of the review. We are involved in the oil business and rely on it for our livlihood! We have sat and watched the drilling rigs being sent to the US or else racked. We have not worked since last spring. The big oil Companies do not have to drill here - the have other places in the world to go. In the meantime this causes a boomerang effect, and will effect even the smallest person in Alberta. The oil revenue is a large industry in Alberta which sustains many, many small businesses. Right now we are seeing a lot of people in financial trouble due to the absentee drilling. Give your heads a shake and get Alberta on track. The big conglomerates are willing to negotiate - get the people of Alberta back to work!! |
| RRE0493 |
I have worked directly in the oil and gas industry for over the past 20 years. i am a professional geologist and have significant regulatory and fiscal experience in Alberta, other Canadian jurisdictions, and internationally. Although I do not fault the premise behind conducting the royalty review, I have serious reservations over the quality and age of the data utilized during the review. Any review needs to utilize the most current data available - and it needs to be inclusive (full cycle). Disregarding the amount of money the province takes in from land sales in the calculation is erroneous at best, and borderline fraudulent at worst. By releasing a report based on selective data that ignores the current cost structure the industry faces has placed the government in a very uncomfortable position. The issue is now highly politicized and the evidentiary and factual basis that we should be debating is fading into the background. I am shocked that the government is considering endorsing the full recommendations from this report - a moderate position would result in royalties deployed over a period of time, and they would be on a sliding scale with commodity prices. I am concerned that the average Albertan thinks that they will be seeing a large influx of new revenue to the government if these changes are made. My personal experiece tells me that the average Alberta is not well informed on how the industry works - which is a fatal flaw of this industry - and sees it as nothing more than a cash cow waiting to be milked. People read the papers and listen to the news and hear about record high oil prices - which is true, but they never hear about the increased cost base in place which the industry faces. People need to be informed about the net backs the industry uses to measure their own returns on capital investments. Also, the government needs to inform the debate about the tax take at the provincial and federal level, and the issue of impact on transfer payments to the feds - what proportion of the "new" royalty revenue would actually stay in the province and how much would go to the federal government? I do believe that if the government introduces the full recommendations of the report that there will be a further reduction in new capital investment in the province. The Alberta government needs to take a lesson from the BC Government - a few years ago the BC government actualy lowered royalties for high cost/deep wells and for marginal producers - although this was contrary to the trend at the time - the government realized a large increase in production and accompanying royalty revenue. I think the government of Alberta owes it to itself and the electorate to conduct these reviews on a regular basis - and to encourage transparency on the debate. However, I cannot believe that the Government of Alberta is considering implementing these changes less than a year after the Federal Government attacked the industry's royalty trust sector. To do so is tantamount to economic suicide - and we dont have the feds to blame this time ( aka the NEP) - only ourselves. Regards [Information Removed] |
| RRE0494 |
To whom it may concern, Of course industry will not be supportive of paying more for their business but this is simply the cost of doing businsess. Their profit margins allow for this increase. If you truly care about the future of Alberta then you realize that we must invest now to diversify our economy and make this an appealing place to live. Even though Alberta is such a rich province many Albertans do not live a high quality life. In fact, quality of life has sufferred as of late because while industry is booming the average Albertan has to struggle with an increased cost of living. It is true that we offer job opportunities in Alberta but we must offer something more than this if we want to sustain a healthy and happy population. Our natural resources have provided us with the opportunity to drastically improve the Alberta we call home. Where is the investment in culture and the arts? Can we put Alberta on the map and stimulate people by investing in the Arts. Increasing royalties will make the economy more sustainable. Although this may mean a slow down in growth, sustainability is what we need. If we don't increase royalties and make wise investments to diversify Alberta, what will be left when the industry we rely on is no more? With royalty payments much higher than ours, Norway has the highest standard of living in the world. Let's come closer to Norway's numbers. My recommendation is to negotiate wisely, maintain strong relationships with industry as we need each other and invest wisely. The current royalties are far too low. Please do represent Albertans and increase the royalties to a fair amount. |
| RRE0495 |
Dear Premier Stelmach, I am a professional engineer and joined the PC party during the last leadership campaign specifically to vote for you and against Mr. Dinning. I felt he was too closely related to big oil and big industry and was the architect of your predecessor's ridiculous spending cuts in the mid 90's. [Information Removed]was laughable as a leader so no comment is necessary. Do not be intimidated by the oil companies. No one is leaving Alberta because of increased royalty payments. Of course the companies are blustering ,as I would be in their position if I wished to maximize corporate profits, which after all is the guiding principle of company management (I also attended the U of A to earn an MBA and we were repeatedly lectured that to maximize shareholder value is the single objective of a corporation). Stand by the report, prepared by an expert panel appointed by you and made up of many oil industry executives, and you win my vote. The panel pleasantly surprised me as I did expect a whitewash but they actually did their job. Now do yours and stand up to the pressure, which will be intense, personally on you and in the press. [Information Removed]is literally hysterical but remember she has a vested interest in oil company profits and does not speak for the everyday Alberta (Martha and Henry in the words of Mr. Klein). Trudge on Ed. You will do fine if you are true to your roots in rural Alberta. Leadership is a heavy burden but we know you have it in you to take a principled stand for the benefit of all Albertans, not the select few working in the petroleum field. Sincerely, [Information Removed] |
| RRE0496 |
One statement that I have heard repeatedly is that 'even if they stop drilling, we'll still have the oil and gas in the ground and it is going to go nothing buy up'. While the first part of the statement is true and the second might be true, there is one piece of logic that is not being considered. If oil and gas prices are 'bound to only go higher' then one must have to assume that inflation is going higher as well, as commodity price rises and inflation have traditionally gone hand in hand. So if the commodity call, and therefore the inflation call, proposed by many are correct then one would have to use a higher discount rate in any Present Value calcuation. This higher discount rate would negate much of the potential lift in the commodity price rise. This reduces the strength of the arguement that you should 'wait until prices are higher to produce the resource'. Additionally when you factor in any of the multipling affects of hydrocarbon investment dollars spent today and not in the future, in a high discount environment, then one must conclude that it is a less econmically efficient for the owners of the resource to postpone resource production any further into the future than necessary. |
| RRE0497 |
NO to more royalties. Other than the oilsands, most of what we do in Alberta is natural gas. So $80 oil does not mean a thing. Along with the devalued American dollar, this would put a stop to most work in an already depressed oilfied sector. |
| RRE0498 |
Tow hom it may conern: I am deeply concerned that not enough consultation and careful review went into the study. Our economy will be negatively impacted if this report is taken at face value without a 'big economic' picture of the energy industry and Alberta. There appears to be room for royalty increases; however the increase as mentioned in the report is too high and did not take into account the other positive ecomomic spinoffs of investment and employment in the oilpatch. Please re-consider your data and engage the relevant stakeholders to ensure everyone is on the same page. Thank-you. [Information Removed] |
| RRE0499 |
On behalf of myself and family I respectfully ask that the government accept all reccomendations of the royalty review. This government has not handled recent growth pressures and it is time to slow down and catch up. You are acting on behalf of ALbertans and have allowed us to loose Billions of dollars. No longer please. |
| RRE0500 |
By increasing the Royalty rates, and billions of dollars of drilling dollars heading outside the province, the economy will begin a recession and everyone will lose. What would the $2B go towards - Directly to bringing in more health professionals, Education and infrastructure??? Don't look a gift horse in the mouth |
| RRE0501 |
I trust Alberta will proceed in a manner that gives we Albertans a maximun share of our resource. I would expect that our Premier will have the same courage and determination of the Newfoundland Premier. Is there a development plan in place that provided for an orderly sale of leases? Why is there not more processing done in Province. I was upset that a gas pipeline is being converted to carry crude for refining in the U.S. I suggest the "runaway train" needs to be slowed down. |
| RRE0502 |
If this Royalty review, is established then the government will then see a dramatic decrease in the amount of oilfield activity in Alberta, less jobs in the oilpatch, or a decrease in the wage structure of the smaller companies, I desagree with the amount of royalties, but I agree with the idea that the oil companies should pay a little higher but not 30%. The oilfield has made Alberta and Albertans lots of money, so why is the government, trying to rape and pillage now? Especially on one of the slowest years since the 80's. |
| RRE0503 |
Please leave it alone!!! We have been enjoying a great economy and I remember the eighties when my dad almost lost his drilling company. People think that oil and gas companies are making too much money but they forget the money they do put into our communities, the jobs, real estate, shopping, entertainment, food etc., the list goes on. Many Albertans are also forgetting that the big wigs in the oil and gas industry with their fancy cars and large expense accounts also work their asses off for every dollar. My dad was gone weeks at a time and worked for every dollar that he had to pay in income tax. Anyway, leave the royalties as is!!!!, Thank you. |
| RRE0504 |
The annual production decline rate in this basin (on conventional O&G) is 25 percent or more . Therefore a huge capital influx is required each year just to keep our production volumes flat, let alone to grow. Already, our gas production from this basin is off year over year simply because of increased production costs. This will only get worse once the royalty scheme is implemented. In past years we would argue, "supply goes down then price will rise and everything will be OK". However, the difference this time around is that [Information Removed] has made its presence known in the lower 48. [Information Removed] (from very low cost production areas in the Middle East and Russia) will continue to grow in the US and will usurp Canada as swing supplier. The other angle is the foreign exchange component that the panel has overlooked. Historically, our high costs were more than offset by our weak Canadian dollar. No longer the case. Many Albertans (in newspaper editorials, etc) who speak out in favour of the panel's recommendations simply don't understand the business. They see huge profit from the recent past and conclude that they should get a piece of that. This industry has relied on infusions of new capital for many of the 20 years that I've been in this industry, or, in other words "organic" growth is a relatively new phenomenon here in the Canadian patch. If these people want a piece of the profit they should accept a piece of the risk and invest their own hard earned money and buy shares. I predict that if the government follows through with these recommendations, then the final result will be drastically different than what the panel predicted. |
| RRE0505 |
Mr Stelmack I’ve lived in this province for the past 21 years. They have been lean years and I can’t say this province has been very good to me. I struggled through Ralph Klein’s debt elimination plans without protest and in fact supported his efforts because I could see the big picture. I’m writing regarding the recent oil and gas royalty review we’ve all been reading about in the newspapers and my concerns about our well being as Albertans should these recommendations be passed into law. I’m extremely concerned that this government is making a very big mistake in even considering a royalty increase. I’m reading things like ‘the money belongs to Albertans’, “the people of Alberta have been ripped off for years now because these royalties are too low”. Ripped off? I think not! The people of Alberta don’t need the government to intervene on our behalf. The oil and gas industry is taking very good care of all of us. I’ve worked in payroll for the last 12 years, the last 2 of which I have been contracting mostly in the oil and gas industry. I see young men at 22 years of age earning base salaries of 55K and up working in the oil patch with little or no education to back them up! Tell me sir, where else in Canada or the rest of the world could one have such opportunities? I roughed it in this city for 18 of the 21 years I’ve been here, [Information Removed]. Thanks to the energy sector of our economy, my pay rate has increased by whopping 65% in the last 4 years and my property value has just about tripled what I paid for it 8 years ago. Again, I ask you, where else in Canada or anywhere else in the world can one have such opportunities? In my 2 years working in this industry, I’ve seen people with limited or no opportunities in the past get a chance to have a better life for themselves and their families. The labour demands of oil and gas is causing such a labour shortage, I’ve seen men and women with no office experience who have worked low paying jobs all their lives being given opportunities to come into these companies, get on the job training and end up with full time permanent jobs that pay them well. There is so much prosperity in this province that the last time I went to the Goodwill store to drop off a donation, their intake space was filled to the rafters and they were actually starting to get choosy about what they wanted to take as donations! We have so much that we can afford to give that much away? Where else is this so? Every ounce of prosperity we have in this province is thanks to the oil and gas industry, not the government. I for one, am happy to keep it that way. I know absolutely that the majority of people in this province will suffer as oil and gas cuts production. I see it happening around me already. As someone working in this industry I have developed friendships with numerous individuals in human resources departments at other companies through out in this industry. I’m already seeing the results of things to come if this government goes through with the royalty increase. Drilling companies and oil and gas service companies are already laying off people in anticipation of this increase. Larger companies are drastically cutting their training programs for drillers. In addition to that, our real estate market is suffering due to investor panic. We have 9000 properties for sale on our Calgary real estate market right now. On close examination, one will see that a disproportionate number of them are rented properties. In a typical market, after the peak (which as we all know was 2 years ago here in Calgary), investor sell off typically takes 5 to 7 years. Yet it seems that suddenly, investors in Alberta are nervous about the future of this province and are flooding the market with their revenue properties, presumably before the walls come down. Please have the good sense to stop this downward spiral and bury this royalty review like I presume Mr. Klein had the good sense to do. As I said earlier, it’s clear that every ounce of prosperity in this province is thanks to the oil and gas industry. Let them continue to take good care of us and let Albertans continue to prosper. Who would want history to remember them as being the man who turned the land of milk and honey into the land of sour milk and lemons? [Information Removed] |
| RRE0506 |
The Royalty Review report is threatening the one thing I have has an Albertan - the ability to make an excellent income to support my family. And we need it! Why else do we live in Alberta? The crumbling schools? The shabby over taxed hospitals? The waiting lists? The high cost of labour? No, it is our income that provides us with a quality of life in Alberta. And it is because the Conservative Party has made Alberta a good place for industry to invest and grow we have a quality of life worth keeping. This is why I have supported the Conservative party on Election Day. However, if the government persists in changing the royalty structure and the industry that is supporting Alberta and the Canadian economy begins to suffer I can no longer continue my support for the party. It is easy for the public to scream out that the industry should pay a greater share to the province but how many Albertans have considered that a threat to the industry is a threat to their income, their savings and the value of their home. A threat to the industry is a threat to me - an Albertan. [Information Removed] |
| RRE0507 |
Remember the NEP program. Consult the Saskatchewan people to see what the NDP government did to the Oil and Gas industry in Saskatchewan in the early 70's regarding royalties.I am 59 years old. Where am I going to find work. Does the Alberta government have enough money to support all the people that will be on welfare?. |
| RRE0508 |
I understand the Royalty Review Panel used data that is flawed and that their report's credibility and analysis of report recommendations requires significant review. The proposed royalty increases negatively impacts oil sands economics which are already marginal. The panel recommends eliminating primary production in the oils area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in northern Alberta will be uneconomic. The proposed change creates a risk of drastic reduction of activity in this region. The panel's recommendations have created a significant risk to future government revenue along with the employment of thousands of people and the viability of businesses that support the many Energy Industries. I request that the Alberta Government carefully consider the huge potential impact to the future activity and future production of oil and natural gas in Alberta before adopting any of the Panel's recommendations. |
| RRE0509 |
I do not want to talk about what I dislike about the new proposed royalty scheme, I'm sure there are thousands of other informed Albertans to make that point for me. The two issues that have arisen lately that I take offence to are: 1- Albertans view of the oil and gas industry & 2- The political direction being taken by the PC party of Alberta. 1. There seems to be an overwhelming majority of Albertans that believe they are not getting a fair share of royalties from the oil and gas sector. I believe people think this is the case because they do not recieve a large cheque in the mail every month for doing nothing. It can be tough to explain to an average Albertan why the oil and gas sector is important to Alberta and especially Canada, but the truth is, it is Alberta and makes Canada at this point in our history. Every industry and business in Alberta is affected by the oil and gas sector (mostly in a good way). Some of the industries that are affected by the oil and gas industry in a positive way are construction/housing and all of the trades and sub trades, car dealerships/car repair shops, restaurants, clothing stores, entertainment (sports/movies/plays), Manuufacturing (all the inputs), IT (for all the head offices), and banks/finance companies. The list can go on and on. In fact the oil and gas industry in Alberta is getting more and more important to hard hit Ontario where many parts are being fabricated for our industry. One of the biggest advantages of the oil and gas industry to Alberta is the appreciation of housing prices in that last few years. For many people the 100-$200 000 gain in their house is not attributed to the oil and gas industry (but it is). Also for some people that do not have enough savings for retirement, their house appreciation will aid them when the time comes. I know not everyone owns a house but the last few years have been lucritive for people that have taken the risk Whereas the new royalty plan wants to punish companies from taking risk by taxing them more for higher productivity wells (greater risk leads to higher productivity and new pools). Everyone in Alberta that has a job is benifitting from the oil and gas industry. Because the wages in the oil and gas industry are high, it puts upward pressure for other industries as well. Before people start complaining, they should really think about how the oil and gas industry has given them a helping hand up. I blame the government for the lack of support from Albertans. The government makes themselves look good by all the taxes they raise and the slighlty lower tax rates. This is the oil and gas industries doing. This leads me to point 2 - Alberta is squandering away large surplusses by giving in to small groups of highly vocal activists. Times can never be good enough, people always want more, people always blame big industry for all of the problems. I guaranty you that the PC party told the royalty reviw panel that they needed $2B more to make ends meet, and that happens to be what they are pushing for. I've seen a shift towards higher taxes in this govenments dealings for sometime now which is opposite of what Alberta is about. Over the last few years Alberta Energy has instituted new fraudulant fines/taxes that have been hitting the industry already. I'ts little things like theese that tell me Alberta is in for a crash when the oil and gas activity falters. If we can not make ends meet now, we will slip into a recesion when times are slower. I'm sure there will be a middle ground made between the recomedations and the industry, but this does not change my mind that the direction being taken by the Alberta govenment is not sustainable and will not lead to diversification away from the oil and gas sector. Intead of taxing the oil and gas industry more, try lowering taxes significantly for other industries, you may be surprised, I bet Northern Ireland was. [Information Removed] |
| RRE0510 |
Alberta is not getting its fair share of oil revenues, in my opinion, and its time to start. Increasing royalties, when the price of oil is setting all time records does not seem unreasonable. Of course the oil giants will screem doom and gloom, but I don't recall seeing the oil companies report yearly losses. Our resources will not last forever and it is now, that Alberta must reap the benefits. All areas of Alberta are under pressure during this boom and Alberta needs to benefit from the tapping of its resources. Let's not be greedy, but some type of 'phased in' increase is a must. |
| RRE0511 |
I think this review is only the beginning, it barley scratches the surface. I was hoping that it called for even higher rates! We are fools in the eyes of the world for giving this stuff away. I don't believe for a moment the oil companies will disappear, but if they do, good riddance. We have enough jobs right now for all Albertans, new jobs just go to "foreigners". |
| RRE0512 |
Alberta should not be knwon as a jurisdiction that induces investors to invest billions of dollars in the province and then changes the rules. This is simply wrong in principal. Put another way existing investments should be grandfathered as to change the rate now is confiscatory . If similar conduct occurs in the private sector the criminal courts would normally deal with the aftermath. I don't profess to know what the correct royalty rate should be however the to change the rules mid game is manifestly unfair. Any change should only apply to new investments therby permitting the investor toweigh the impact prior to drilling the well or building the plant. If the governemt elects to increase the royalty rate , it should at the same time announce and equivalent tax cut to return the increased revenue to its rightful owners, the taxpayers. Lastly, I urge you to proceed with caution because if you are wrong, you will have a significant impact on the livilihood of a multitiude of Albertans. |
| RRE0513 |
Mr. Stelmach, In some way's I feel sorry for you. Although you did sit as a Minister regarding transportation, I feel Ralph left you with one [expletive] of a mess. A lot of this should have been dealt with while he was in office! Ralph reminds me of a little kid who left behind a very messy bedroom. Now mommy and daddy have to clean it up. That will take a few years. |
| RRE0514 |
In my opinion the findings from the Royalty review report are balanced and appropriate - they shold be implemented. The oil & gas producers are not suffering and are guided by returns to their investors - which are often foreigners, so they shoudl not cary as much weight as the interest of ALbertans. I would also like to see more emphasis on either requiring hold-backs or some other kind of guarantees from the oil & gas industry to be retained until proper reclamation is completed. Finally in my opinion, even if higher royalties slow down the pace of the oilsands development, I do not believe it to be a bad thing. In fact, I think it is turning out to be more of a "grab all you can" than a planned extraction of our resources - from an Albertan point of view, slowing down the pace so later generations can share the benefits is better than allowing the current excessive pace of extraction - so if higher roylaties result in a slow down, I'll welcome it! Thank you for the opportunity to comment. [Information Removed] |
| RRE0515 |
I have been employed in the Alberta oilpatch for 30 years and have never felt so unsure about my job or my future. While I agree that an increase of some kind is in order; I strongly disagree with an immediate 20% increase or anything near that amount. An increase like that would destroy the economy of Alberta and the lives of many Albertans. Hopefully the Alberta government takes the recommendations of the major oil companies in this province seriously. |
| RRE0516 |
I am shocked that the proposed royalty changes currently being contemplated are being given consideration by this government. This reminds me of when the federal Liberals gave us the NEP, which stopped the oil and gas industry in its tracks back in 1982. At the time I thought "they don't understand this business, they are outsiders". Now with this royalty change I believe the same outcome will happen. I'm astounded that this initiative is being pushed by the same provincial party that so vehemently opposed the NEP. The oil companies are not bluffing or posturing when they say that their capital spending will go elsewhere. These are purely economic decisions. 2007 has been a slower year in oil and gas and the impact is now showing up in other parts of the economy such as the housing market (demand and prices starting to go down). Natural gas is a marginal commodity currently and we should be encouraging its exploration and development in Alberta rather than threatening it. [Information Removed] Calgary |
| RRE0517 |
It is high time that the oil companies were assessed royalty fees in keeping with other oil rich areas of the world. That money should be used to finally give teachers the promised payback of the rollback of years ago and a raise somewhere near the rate of inflation. |
| RRE0518 |
Don't like it. |
| RRE0519 |
I feel that if the royalty review is implemented in full that it would be extremely detrimental to those who work in the oil and gas field and nore importantly to the province and people of Alberta. Oil companies are in this to make money and have choices as to where they can spend money and Alberta isn't the only choice. Although only 30% of Albertans work in the oil patch, any negative impact towards these people would have a great trickle down effect. I attended the Strathmore Energy Chamber Expo over the weekend and the people of Strathmore very concerned of how this would affect them. There is already a downturn in the industry and it is affecting other industries such as housing already. We are seeing a softening in realestate, manufacturing is seeing challenges because of the rising loonie. I realize the importance of putting money into our province to sustain future infrastructure and development but putting it all on oil companies at this time would hurt every Albertan. Obviously this is now a pandoras box and any decision made will have negative backlash. The government needs to do what is best for Albertans and the province over the long term and if you push oil and gas producers away that obviously isn't the best outcome. I hate to say this but if implemented it will be the second generation of the National Energy Program and some of us can remember what that did to this province. Lets keep our economy healthy and anyone with business sense realizes that this can't and shouldn't be implemented or 100% of Albertans will be negatively impacted. [Information Removed] |
| RRE0520 |
Dont make any decisions until we understand the facts. I as an Albertan dont want to see another NEP effect. Are the costs for finding, developing and operating oil and gas that were assumed by the panel correct? I dont mind a fair share for all Albertans but dont risk the economic future to try to get short term gains. |
| RRE0521 |
I applaude the government for reviewing the royalty structure, however, if the data used for the recommendation is even only half as flawed as depicted by others in "the know" about oil and gas, then we should tread very, very carefully. As someone who survived through the effects of the NEP, I would hate to see anything that causes a whole-scale change to the industry. Since it could well cause a cascading effect to force changes to the federal taxation scheme, no decision should be made until an independent validation of the assumptions in the report are made. This needs to be then evaluated not only with the view of the direct industry effects but also the multiplier effects that would flow through to all other parts of the economy. Even then, in a province that has a mulit-billion dollar annual surplus, the vision of an extremely greedy provincial government is not pretty. Any changes to the royalty structure should be tied directly to funding for schools, health care and infrastructure so average Albertans like me can at least see that it is not only rampant and transparent greed that is driving a desire to change. Otherwise, once the changes have been made and the effects become apparent throughout Alberta, I would not recommend holding an election until the very last date legislatively allowable. By then, the few people left in the province may exercise some form of collective amnesia and forget who managed to devastate a once thriving economy that was the envy of all other Canadians. |
| RRE0522 |
I am not in the oil patch but worry what this will do to the Alberta ecomony. I am a single mom with a Son starting in the trades and I fear for his job prospects in the future. Does he have to move to Saskatchewan because they has as much oil there and if it is too expensive to drill here in Alberta this will be a prime time for Saskatchewan to welcome the boom in the ecomomy like we have. Maybe a little less Money should be spent on buying the Natives a new house every two years, and a little less spent on social programs where people are to darn lazy to work. I work hard to support myself and resent my tax dollars(which are high) who choose not to support themselves |
| RRE0523 |
Why are you looking at increasing taxation on a dwindling business. Revenues from conventional oil and gas are down year over year as an industry. Increasing taxation should cause them to fall farther and faster. Given the state of the industry incentives should be considered for conventional oil and gas. |
| RRE0524 |
The Government of Alberta should not be intimidated by propaganda and threats from big and little energy companies. You represent us and we own the resources of this Province. For years the energy companies have been cheating Albertans with the acquiescence of the Alberta Government for a fair share of the royalties. The government has also allowed export of unrefined oil to the US, depriving Albertans of a part of the jobs associated with resource extraction. These things must change or the government must go. |
| RRE0525 |
Although I |
