| Random Nbr |
Released Comment |
| RRE1000 |
If the Alberta Government increases the Royalties to what they are proposing the province will be in serious trouble. The economy will drop, thousands of jobs will be lost and we will have people competing against each other for minimum wage jobs. Every cent the Government thinks we will gain from the oil companies will be spent on Employment Insurance and Welfare for the thousands of people who will lose their jobs. The crime rate will increase substantially when desperate people turn to using drugs to cope and selling drugs to make their payments on their property. The suicide rate will also rise when banks start foreclosing mortgages. Please take the time to consider what effects will really result from the Royalty increase. The money that Alberta will loose out on as a result of the Oil & Gas Companies canceling proposed projects. Alberta’s economy will be destroyed and all Albertans will be negatively affected. Please make the right choice for Alberta, don't destroy what everyone in our Province has worked so hard to achieve together . Thank-you, [Information Removed] |
| RRE1001 |
Recommended Royalty implementation will kill Alberta economy and Albertans will pay heavily for it. |
| RRE1002 |
I hope that the province will take a balanced approach when reviewing and implementing any findings. The reaction to the report has already had a negative impact on land sales (decreasing prices in Alberta while BC is increaxing); thus any gains on the royalty side have already created losses in other areas before any findings are implemented. The industry is competitive and mobile - if one form of "cost" restricts their ultimate return on investment then other costs will be reduced (land sales) or activity will be directed into other jursidictions. The province cannot force companies to explore and develop resources here - other provinces or states will take advantage of this situation and increase their royalty take while ours drops. The province would do better to ensure existing royalties are collected promptly. There are several solid recommendations within the report concerning the streamlining of royalty rates - the many tiers of rates adds complexity and adminstrative cost for both the government and industry,; the majority of these programs no longer need to be in place. But the overall tone of the report is oddly aggressive towards an industry that employs so many people within the province and has directly created so much wealth for this province. One factor the report fails to analyze is whether or not the province can manage the additional funds they might receive. So far the track record is deplorable. Despite all the wealth the province has taken in over the past few years Albertan's have yet to see any significant improvements in the public goods and services their provincial government is obligated to provide. The funds would be better off in the hands of private individuals and industry who have demonstrated a much better track record of investment . [Information Removed] Calgary [Information Removed] |
| RRE1003 |
The Hunter Report was established by your government. They obviously had the confidence of your government. Had they come back with a Report that said that the status quo was fair, you would have said; "We trust the wisdom of this committee". They didn't. Now-predictably- the Oilpatch Cassandras, Chicken Little's and Bullie sof hte Beach are out in full roar. Now youare waffling and wobbling. If you do not accept the Hunter Report and act on its recommendations, you will have sold Albertans out to the multinationals. That would be shameful. |
| RRE1004 |
Don't kill the golden goose! |
| RRE1005 |
Premier Stelmach, do not let these oil companies dictate to you. We as Albertans have been ripped off for far to long, one cent on the dollar per barrel, give me a break. Just because Klein and his crooners had a golden hand shake with these oil companies doesn't mean we still have to follow suit. It's time we started getting our fair share as a born and raised Albertan of 45 years. Enough is enough already...to the oil companies, stop ripping us off, you don't like the increase then go some where else...like Iraq or Iran....how about South America and see where that gets you. We will not be intimidated any longer by you or any other company. As for the shipment of bitumen to the USA, that has to stop, now. You are flushing 18,000+ jobs to the Americans. We ship it south to have it sent back to us refined and costing us more. It's our product and it should stay here and be developed here, enough of this American bullying!!! |
| RRE1006 |
I work for a major oil and gas company in Calgary. All week I have been involved in running and re-running economic scenarios on the Alberta operations in my area. The results are astounding. These royalty changes will result in a complete stoppage of all future drilling activity in my area, and will ensure the movement of my expected capital for 2008 to another area of the company such as our properties in BC or international, as development in Alberta will be uneconomic. Also, the effect of the changes on the current production in my area would lead to the shut in/cut back of approximately 90% of production. Since I work for such a large company, it would survive by the redistribution of capital, but how would a small company survive? It wouldn't. Also, the trickle down effects on the economy, not only in the areas we operate (service companies, support companies, our contractors) but also in the major centres such as Calgary and Edmonton will be devastating. I agree that there is a way that the royalties can be increased to increase Albertan's share of the profit from oil and gas activities in the province, but such a drastic step-change will not only devestate the industry, but will also likely lead to an entire provincial recession. I'm sure this is not the sort of legacy that the Premier would like to have. I am a recent graduate from university and am just starting out in the world as an adult. I do not have a house that's paid for, millions of dollars in the bank, or any real assets that I own 100% yet. I do not run around spending money like it's going out of style, I am just trying to get established as a young professional. Now I have to worry that I might not have a job next year, I won't be able to afford my mortgage, and I may have to completely start my life over with a new career. If I am worried about this, then imagine the effects something like this will have on all Albertan's. Please promise to listen carefully to industry's comments, run scenarios yourselves, and think about the future of more than just the "fat cats" who've gotten rich in the past. An entire future generation of Albertan's lives are at stake. |
| RRE1007 |
1. At $11.00/GJ and a 650 mcf/d well you are taking a 64% marginal royalty. My investment funds will not be participating in the industry anymore. 2. My vote will be going elsewhere. I will let the "Conservative" party fund the billions required for new explration drilling. Goodbye [Information Removed] |
| RRE1008 |
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. |
| RRE1009 |
I am very impressed by the work completed by the panel. I believe that the government should stand firm and not be held hostage by the oil companies. That money is owing to the people of Alberta and the oil sector will just have to suck it up and pay their fair share. I have never been a big fan of the Alberta Conservatives, but they will gain my respect if they handle this in the best interests of ALL Albertans. Thank you for allowing me to express my opinion. |
| RRE1010 |
Dear Mr. Stelmach - I do not currently work in the oil industry, but as an Albertan am very disapointed with the data and recommendations in the royalty review report. Industry costs have been underestimated and existing land bonus payments not considered as part of the government's take. Excluding grandfathering effectively changes the rules of the game after investors have committed their money. This is soemthing we expect from banana republics, not Alberta. As with the NEP in 1981, this can scare away investors for a decade. We need to revisit this study and upgrade the data before any major changes are considered to the current royalty regime. Failure to do so will not only cost your party my vote and those of everyone I know, it will harm Alberta's economy severely. Sincerely, [Information Removed] |
| RRE1011 |
I am deeply concerned about the royalty review recommendations that were released in September. I have read the reviews, and heard many comments back. I am deeply concerned that if the Alberta Government does go through and implement all the recommendations from the panel then all Albertans will be affected and not in a good way. From many of the conversations with people in the industry, in the production and service sectors, it is obvious that cutbacks will happen and redirection of investment. If this happens all Albertans will be negatively affected. In the report there are many problems, for example the capital and operating costs were not correct, thereby not accurately reflecting the cost to companies. I believe that government, industry and other stakeholders need to come together to review the report and do sensitivites with the number. This includes the high Canadian dollar, the capital and operating costs, the land sales revenues. The numbers should be current, reflecting the current situation with the market, not numbers from that past. The oil and gas environment has changed recently and the royalty review should take this into account. For the government to act on this recommendation before making sure that ALL the data is accurate would be poor judgement. It is the responsibility of the government to make sure it has all the facts (and that they are correct) and then to act in the best interest of all Albertans, taking into account the long-term consequences. Thank you for your time. |
| RRE1012 |
I completely agree with the royalty review panels findings. I hope that the government does not give in to the oil companys lobby. They have been making record profits for a long time, its time the province gets a larger share in these profits. Please do not make a back room deal. The oil companies like everyone to believe they are here to help the people of Alberta, but they are only here to make big profits and then they will be gone. The people of Alberta will be left with mess to clean up. So please do the right thing and listen to the common people of this province. Thank you for your time. |
| RRE1013 |
I provided a few comments by email last week, but [Information Removed] annoucement and position to holdback expenditures in Alberta, coupled with the revealing report by the Auditor General that the Klein/Melchin administration opted to forgo substantial royalty revenues lends credence for Premier Stelmach to increase royalties to a competitive level and for oil companies to contribute a greater share to the future of Alberta. Thank you. [Information Removed] |
| RRE1014 |
The entire energy department should be fired for not sleeping at the switch, that is, not being diligent in keeping track of royalties. It's criminal that the citizens have lost billions. If the Alberrta Government were a company heads would roll and there would be all sorts of investigations for fraud, etc. [Information Removed] Beaumont |
| RRE1015 |
Firstly, I believe that undertaking the royalty review was a courageous and overdue undertaking on behalf of the Alberta government. Premier Stelmach is now under the spotlight. This is the opportunity to show whose interests the Alberta government is truly representing: is it the Alberta public or the oil and gas industry. Anything less than a complete adoption of all of the measures in the royalty review will be an indication that the premier has given in to the oil and gas lobby. Even a partial adoption of some measures will not be enough. The reaction of the oil and gas lobby to the review have been predicable. The industry has been getting an extremely easy ride in ALberta for a long time, and feels a degree of entitlement. Claims that it will have serious negative effects on the industry seem pretty groundless, and negative effects were obviously taken into account in the review. Evn if adopting the suggestions of the review lead to a minor slow-down in ALberta's economy, this would probably be a good thing: the provincial economy is obviously expanding at a rate that is unsustainable in term so of infrastructure, employment etc, so maybe a slight slow down is exactly what the province needs. In short, the measures in the royalty review should be adopted in theri entirety. Any failure to do so will indicate a clear capitulation to the oil and gas industry, and a complete lack of leadership from premier Stelmach. |
| RRE1016 |
It is time to reap the benefits from the resources that belong to all albertons. The scare tactics being used by the oil industry are deplorable. If they are unwilling to pay a reasonable price to to make a profit from a commodity that is the citizens then let them deal with other sources(OPEC,Mexico,Russia or Venezuela). It is also worth reminding [Information Removed] that their founding partners [Information Removed] got a start on mineral rights that were given to them. The bleeding of money must stop. The citizens of the province are entitled to a fair royalty on something that is by birth their's. The government must do what is proper and adjust the royalty rate paid on something that by definition is non-renewable and finite. The sky is falling senarios that the oil companies are using are just that, a scare tactic. The resources are not going anywhere, if they are not willing to pay now then they can wait and pay when they realize that their argument is untenable. Everyone has to renegotiate a mortgage rate once in five years. It is time to renegotiate the deal with the energy companies. [Information Removed] , enraged citizen. |
| RRE1017 |
After reviewing the royalty review report and independent analysis conducted by both CIBC and Tristone capital, I would have to conclude that implementing the review panel's recommendations WOULD BE A MISTAKE AND DETRIMENTAL TO ALBERTANS AS A WHOLE. It is not logical to conclude that increasing the cost to invest into Alberta would not change investments decisions into the province. Instead of being the envy of the country, the government would risk an economic reversal. The reality is industry conditions have rapidly deteriorated over the year making investments returns on FUTURE projects much more challenging. The increased royalties would add to the situation making decisions to investing future capital less attractive and Alberta would definitely lose capital investments into the province. It is completely naive to believe that increasing royalty take would not affect the total investment equation. The simple math equation analysis; CURRENTLY 1.0+1.0 = 2.0, THE REVIEW PANELS MATH 1.0+1.2 =2.0 (THIS IS EQUIVALENT TO COLD FUSION), REALTY 0.8+1.2=2.0 (The 0.8 here representing the decreased capital investment). A bit over simplified, but generally demonstrates reality that the review panel missed. There is more at stake here than politics and appeasing the people who incorrectly believe that increasing royalties will improve their lives so the government will be able to pay for more. If you really believe the government will net gain $2 billion, is the government ready to firmly commit to how that "additional" money will be spent and tell the public that? It'll be embarrassing to tell the public after you will actually have to raise other taxes revenue to achieve the full $2 billion haul to fully fund the additional commitments, however, I'm sure there will be something else to blame it on by then. Strong leadership is about doing what is right for the people, not doing what is popular. The heat the Auditor General has recently put on the government should be aggressively rebutted by the government with data showing how a decent business environment has created the economic fortunes that Alberta has enjoyed the last few years, not how we should be discouraging growth and investment (the numbers should speak for themselves). Alberta has gained in all regards and to state that it does not get it's fair share is out of this world. The gains have been made off of previous older investments getting better, not new investments getting great returns. I love being an Albertan because of our strong entrepreneurial culture and always having a government that reinforced that. If the new Alberta government wants to make investing here less attractive and change what I fundmentally believe makes us a stronger province, I will have to evaluate where I beileve I should live, invest and have my asset base paying income taxes to. The strong Canadian dollar sure is making other places in the world look attractive to where my family, I and our asset base should park ourselves out of, before the dark years come. [Information Removed] |
| RRE1018 |
Dear Mr Stelmach, The oil companies have been making very high profits based on our resources for at least ten years. The review panel's recommendations are the least that Alberta should accept. You must not allow oil companies to continue to mine the legacy of my children. [Information Removed] |
| RRE1019 |
My life in the gas business. I work for a junior gas company in Calgary. I have been with the company for 4 years and in that time our stock has gone from $1 to $3 and currently sits at $.70. This is due to current gas prices, debt levels stressed by reduced revenues and the difficulty in economically growing production. In the last year we have cut our budget 4 times and reduced work hours by 1/2 a day per week in order to keep moral up in light of the reduced activity. My salary is identical to what I made in 1994. To increase the royalties paid is not only going to reduce the cashflow we have to spend on drilling and growing the company, it will reduce the number of prospects we will drill because with the increase in royalty the economic threshold will be pushed up by the amount of the increase. We are working hard to survive in the current gas environment and a increase in the royalty rates will not help. [Information Removed] |
| RRE1020 |
Dear Premier Stelmach: Albertan's like me have been shortchanged by the oil companies for years as they line up record profits. In the meantime, Edmonton has crumbling infrastructure due to the shortchanged revenues coming to the province from oil companies. Please correct this shortchange or I can tell you that you can forget about my future support for the Conservative Party of Alberta. I will vote Liberal if you do not correct this terrible inequity. |
| RRE1021 |
I hope that you will be getting our fair share from the Oil Companys.In my mind they have been getting extremly rich off of our resouces long enough,Yes they invest billons but they sure have taken hundred of billons profit.The Oil Companys seem to think that they are the only ones that can make huge profits, I have a small trucking Company in the Oilfield this slow down has nothing to do with Royalty Review we have been told this is because the price of the high price of Services Drilling,Trucking,Consrtuction so on.I dont get tax brakes like Oil Companys ,I dont have Large Profits, I cant pay my employees large signing bonuses.They should be taxed the same as every other companys in Alberta.They want to do business in Alberta do it the way Albertans want.This is not a renewable resource keep looking ahead Thanks for letting me VENT |
| RRE1022 |
As a young Albertan trying to make it, after just buying a house in an area where oil and gas are the main way of income, this whole idea of royalties really scares me. Without my pay cheque and my boyfriend's pay cheque, we would never be able to make our payments, putting us in risk for high debt. We waited and found a place, that is a deal, in this high end market, and now the government is thinking of upping royalties, making the market very vulnerable, and making my life very stressful. I can guarantee that if this does go through, I will not be voting in the same manner as I had last year, and I am pretty sure that other members of my family and friends, and any other persons involved in the same situation as I am in will also be changing their votes. We know what will happen, and so do you, it happened in the 1980's and I remember the turmoil of that transition, I watched my parents struggle to feed my siblings and myself. I do not want to have to do that. You are supposed to be helping and supporting this province, not decreasing our chances of becoming successful and debt free, "you can't give a child toys and candy every day and then take it away from them in an instant." The oil and gas companies are smart and have many options, and they will find places that will allow them to do what they want, even if it is not in this province/country, and the workers will also follow!!! Leaving Alberta to recover once again from a shock and blow to our oil and gas companies. I urge you to think of the people and your standing, think of the outcome, the oil and gas industry have a lot of power and they will do what is necessary to fuel themselves along to profit, even if that means making a point and leaving Alberta completely. I have already heard of major companies haulting production over this royalty review, and they are not planning on starting back up until they hear the results, and if not in their favor, they are going to be shutting it down in Alberta and moving elsewhere. Please take the time to hear our cries, I could be your daughter, just trying to make it, never knowing if I'll be able to eat this month!!!! |
| RRE1023 |
Alberta Royalty Review The share that Alberta receives for its oil and gas is very important and should be fair. However the Province also benefits from a great many other sources of revenue derived from the oil and gas industry. The public wants to see the Province get its fair share but a majority do not understand all the ways the industry contributes to provincial revenues nor from what other activities the Province gains revenues. Therefore it is imperative that the entire spectrum of activity and revenues be explained to the public – otherwise the public will focus in on only the royalty issue and be unduly influenced by the Commission recommendations pertaining to royalties only. Royalties are applied to oil and gas production – but oil and gas must first be found and flowing. Long before production commences (if any) and royalties are paid, tremendous activity occurs in the industry resulting in significant revenues to the Province. Producers buy land, run seismic, and drill. How does the Province benefit?- through land rights purchased by producers, seismic and drilling companies pay taxes and salaries, workers pay personal taxes on their salaries, and all manner of businesses supporting these companies and workers pay taxes and salaries to their workers. The source of revenue to the Province is enormous and yet there is no guarantee of any production (many wells are dry holes) or royalties. If producers believe that royalties will be too high should they find oil and gas, they will significantly reduce this upfront activity. The Province loses in two ways – i) revenues drop from reduced upfront and spin off activity throughout the province, and ii) less oil and gas is found and produced yielding less royalties. If explained, the public will appreciate the delicate balance that must be maintained in ensuring an ongoing health industry. This is not just a royalty issue and they should be able to see that increasing royalty rates does not automatically result in increased revenues to the Province. So far this debate has largely sounded like a [Expletive] contest between the oil and gas industry and the Commission. The public at large is not likely to give much weight to the argument put forth by the industry unless they understand the entire picture and see how the province benefits overall. If oil and gas activity slowed considerably in the province due to higher royalty rates, how many homeowners in this province would be happy if they saw their house prices soften $50,000 to $100,000? A lot more education should precede any announcement by the government. |
| RRE1024 |
The only consideration of the provincial government is the people of Alberta. Oil companies should not, under any circumstances, be allowed to override the collective interest of the citizens of Alberta. I am not worried about slowing economic growth, I think it may be a good thing for my family and many other "average" Alberta families. My family has experienced a decrease in our standard of living in recent years as inflation far out paced any income increase. Any increase in oil revenue (whether from royalty reform or higher oil prices) should be managed for the future. Oil & gas are a limited resource not to be wasted or depended upon to meet today's operating expenses. I applaude the government for having the courage to review this very difficult issue. |
| RRE1025 |
The Royalty Review Panel used flawed data in its calculations of the impact on Oil and Gas Companies. The actual impact is very significant and will kill ongoing projects and future planned projects for the province. Listen to the industry - stop and think before enacting this terrible mistake or suffer the consequences in the form of a significantly reduced economy in Alberta with effects felt right across Canada. Thank you for the opportunity to pass on my views. |
| RRE1026 |
I made an extensive submission to the royalty review panel in Edmonton and judging by the outcome, nobody read it. I'm going to send another letter and hopefully somebody will read it and think about it and realize that the royalty system is not the mechanism to right all wrongs in Alberta. It is also only one component of effective resource management. |
| RRE1027 |
I am disappointed that the Provincial Government has allowed itself to be pulled into a debate on royalties without a clear mandate to do so. I am extremely concerned that the Government does not appear to be considering the comments that have been presented by the participants in the industry (large, small, producer, field worker, etc.,) that are indicating their concern about the negative impact that the recent proposal will cause the industry. In my opinion, the Panel report does not account for the affect that its new (proposed) regime will likely have on other revenues generated from the land sales, short term economic activity and long term potential that the resources present this province and this country. As an Albertan, I am deeply troubled that the Alberta Government would suggest that it could determine a prudent plan of action in a month and that it would be lead to do so by the process it initiated. When will the Alberta Government show the leadership to put a stop to the the confusion it has caused? |
| RRE1028 |
By now the effects of this bizarre report must be obvious even to "Ed". ....The Bolivarian Republic of Alberta, Albertastan, a 20 BILLION dollar hit in market value the day after the release (That is a10X muliplier of the alleged "savings" of $2Bliion wrongly postulated) Why on earth unleash all of this vitrol? Who beside the Pembina Institue demanded a royalty review? Are you going to succumb to all of their demands? They wrote a report a few years ago at the behest of their [Information Removed]pals demanding an end to the privatization of liquor stores. Can we next expect that? To the report and its false promises of $2Billion in free money: By now you must be aware of the erroneous calculations and assumptions used to come up with the $2Billion. Only a child or academic economists ([Information Removed]) would assume a $2billion reduction in available cash will have no effect on activity. Expect to lose that much per year in lost land sale revenue. Expect to lose several billions in deferred or delayed capital programs (Encana's gas reductions just the start). The panel is lying to the public and you about the effect of the increase of gas royalties. The much quoted 85% of all wells pay less eals with the legacy wells near the end of their life. No go forward price/productivity combo is economic to drill for. None. Imagine a total collapse of the Alberta drilling industry. Ed, that will be your legacy. I'm really looking forward to your election campaign: I promise fewer jobs, lower salaries, layoffs and no economic growth. That's fair??? |
| RRE1029 |
Please leave the royalties alone. We live in a prosperous province with no debt. We have a stronbg economy based on the engine we call the oil and gas industry. Gas prices are low and it is less and less viable to drill. Oil and gas trusts are still trying to recover from last October. Please leave the royalties alone. |
| RRE1030 |
I cannot imagine that this government would be insane enough to mess with the golden goose. Long term decisions can only be made based on stable royalty rates. Do not change the royalty scheme. |
| RRE1031 |
Just a thought for you. What is the upside of initiating any kind of royalty increases. If you do nothing, Alberta continues on its course of prosperity and when natural gas prices increase again, the prosperity will be even greater and you collect many more tax dollars, royalties and enjoy a continued majority government. If you initiate a royalty increase. You may or may not get your $2 billion a year. [Information Removed] and others will execute on their promise to move many billions of investment outside of Alberta. Oilsands projects will be cancelled or proceed at a snails pace (much less royalties then), oilfild service companies will go bankrupt for lack of drilling in Alberta, junior oil and gas exploration companies cannot raise the necessary capital to drill, foreign investment dries up, many people get laid off, housing prices crumble and Alberta goes into one of the worst recessions we have seen. Your risk reward analysis does not work here. There is no upside and only downside. If Alberta was a stock and you had to make your decision wether to buy or sell based on wether royalties went up or stayed the same, you would buy If you left the royalties the same because Alberta has great potential and the economic benefits to all are astounding. If you increase royalties it is an immediate sell because there will be no positive economic upside. You will lose money if you analyze the full impact of a royalty increase. |
| RRE1032 |
To the Government of Alberta, I would like to express some concerns I have with "Our Fair Share". Higher royalties for most gas wells, the termination of the Royalty Adjustment program and the imposition of an Oil Sands Severance Tax I fear will render many already marginal oil and gas projects uneconomic and will result in significantly reduced investment, province-wide job losses and ultimately royalty losses. In addition, the resulting suppression of oil and gas investment would surely translate to diminished Crown land sale revenues. I have difficulty understanding why a conservative government which is commendably running a surplus budget is considering a punitive royalty structure which will stifle the province's primary economic engine. Regards, [Information Removed] |
| RRE1033 |
Dear Mr. Premier, I realize this is very close to your announcement date of your decision on the royalty review but I felt compelled to voice my concerns. As an Albertan working for an oil and gas company this is going to impact me immediately. The pressure on you to make this decision must be immense. This is understandable because the consequences are mind-boggling. Should you go ahead and implement the changes that your "impartial" panel recommended, you will be destroying the oil and gas industry in Canada. This is not debatable... this is fact. Some people seem to believe that the oil and gas companies are making too much money and that Albertans should get more. Do these people realize that these oil and gas companies for the most part are publicly traded companies whose profits go back to the shareholders. These shareholders are you and me, people that actively invest in oil and gas, those that invest in mutual funds (big percentage of these funds were invested in oil and gas) and those in government who will be receiving a pension. That pension that people will be receiving is made up at least partially of profits from these oil and gas companies. I for one would rather receive my bit as an Albertan through profits from oil and gas in my RRSP which I administer myself and have control over. At least I used to have some control. Since your government irresponsibly released the panel's findings without any representation from the people that are actually in the business and know these numbers, my RRSP (my only pension other than CPP as I don't get a cushy pension like people in government) has been damaged beyond recall. As a single woman of age 41 I don't have any safety net of a second income or a government pension to take care of me or my bills. I own my own home (for the time being) and keep the economy going strong in my own way (restaurants, renovations, beauty items, wine, automobile and trips). I list these items as they are luxury items ... items that I have stopped purchasing as of two weeks ago when this started. I had a cleaning lady who I have let go since I will no longer be able to afford this with your changes to royalties. I realize that these things were all luxuries.... I bought them because I felt that I worked hard and deserved them. They in turn (hairdresser, spa, cleaning lady, restaurants) benefited from my prosperity based on my career in oil and gas. This is all gone. Had I not commenced my renovation 4 months ago I wouldn't be renovating my home. This would mean that the electrician, plumber, carpenter, etc... would not be gaining employment and benefiting from my job in oil and gas. My house value at the moment is quite good. I have been called by friends in Halifax trying to convince me to move out there. I have always said no as living in Alberta was lucrative for a single woman who works hard as myself. I have now told them that if this goes through I will most likely lose my job. In losing my job the chances of me getting employment in Alberta are slim to none as most companies will be in the same boat as mine. The big oil and gas companies have already announced layoffs. Where will I find a job in Alberta??? I won't so I will sell my house before it loses all its value (as it will because construction will be the second major industry behind oil and gas and its service companies to be hit). Quite frankly, Mr. Premier, at age 41 I can't afford to lose anymore of my savings on the irresponsible whim of a government that is playing politics with my life!! It is unbelievable to me that my own government in Alberta would do this. You obviously weren't here during the National Energy Program, I was. ON another topic, if we look at the actual royalty review itself, there are some fundamental flaws that make it absolutely useless. The data that was used is out of date. I work in Natural Gas which is not seeing high prices right now. We have been in a downturn for the past two years. I work on our quarterly results and see the numbers. There is no wiggle room for increased royalties. It will not be economical. If it is not economically feasible to drill we won't. If we don't drill we won't have production. If we don't have production you won't be collecting your precious royalties. You might have a bigger slice of the pie but if will be a far smaller pie. It is simple economics. Not difficult to understand yet the information has not been given out to Albertans and for that I hold you responsible, Mr. Premier. Albertans are on the precipice of a financial disaster that hasn't been seen in over 25 years. I have friends in New York and London that can't believe that this has gotten to this. One friend made the comment that it must have taken a genius to destroy the strongest economy in North America. No small achievement , Mr. Premier... and that will be your legacy... I will be living somewhere else by then. Sincerely, [Information Removed] |
| RRE1034 |
If its not broke don't fix it. Alberta's Oilfield has already taken one hit from Mr Harper it doesn't need another from Mr Stelmach. Don't overtax the oil companys into Saskatchewan! |
| RRE1035 |
As a professional petroleum engineering consultant and the former VP of a major consulting firm in Calgary, I am very concerned about the potentail impact of the prosed royalty revisions on both our industry and the economic health of our province. While there may be a case for some minor adjustments to the maximum royalties payable at high gas prices for the most proliffic wells, the current proposal goes far beyond the original brief to provide a fair share for all stakeholders, including both the residents of our province as well as those taking the risks to find & develop our resources. The supporting economics do not seem to adequately address the rising costs and risks for drilling & completing deep difficult wells for relatively small targets and generally modest production rates. Since I have recently accepted a posting overseas, this will have limited impact for me personally. However, it has the potentail to threaten the economic well being of the family and friends that I am leaving behind, in whatever sector of our economy that they may work. I urge you to carefully consider the potential consequences of your decisions and to be gentle with the rudder. [Information Removed] |
| RRE1036 |
I once visited Detroit. The city frightened me, with its abandoned skyscrapers and neglected roadways. When the automotive industry left that town, it left an economic vacuum that sucked away prosperity in the city. The cost of doing business became too high, the industry left, the town is a shell of what it was. I read the report, “Our Fair Share”, and I am concerned about the recommendations drafted by the Royalty Review Panel. Many have said that the data is flawed, ignoring different economic conditions when comparing to other jurisdictions. It also neglects several economic realities of the oil and gas industry in Alberta today: the amount of rigs in the field today is far less than two years ago, most companies have had severe budget cuts. I’ve seen several companies leave Alberta already; if the recommendations from the Royalty Review are enforced, how many more will leave? There are many other basins with much more economic potential than Alberta. International companies will leave, some small companies will disappear. But BC will be happy: if Alberta becomes more expensive, drilling and exploration in BC becomes much more appealing. Let’s keep our Alberta Advantage. I never want to see this province in the same light as Detroit. Sincerely, [Information Removed] |
| RRE1037 |
This seems like the wrong time to implement new royalties that will further slow the industry that is driving our economy. These new royalties may slow the only economy in Canada that is keeping the Loonie from dropping like the US dollar has. Please don't get this wrong. [Information Removed] |
| RRE1038 |
I will again reiterate the same suggestions I made two weeks ago. Adopt the Commission's recommendations in whole. A fifty percent increase in royalty rates across the board, with another fifty percent being phased in over the next five years. HOWEVER, this money go to Albertans with residency status of five years or over, IMMEDIATELY. Average Albertans have not seen any benefit what-so-ever in their standard of living in this so-called boom. Companies yes, individuals no. You have managed to flood the market with this propaganda of a "labour shortage", and keep wages depressed. There may be a shortage of cheap skilled labour in this province; there is definitely NOT a shortage of skiilled labour. [Information Removed] |
| RRE1039 |
I agree that Alberta should be getting a bigger cut from big oil. I wouldn't be so worried if the roads and highways weren't falling apart, I didn't have to wait 8 hours at a hospital and other obvious signs of underfunding by the provincial government. |
| RRE1040 |
I am writing deeply concerned about the action the Alberta government might take concerning the recently submitted Report of the Alberta Royalty Review Panel. Not an expert myself on economic modelling of oil and gas projects but aware that “expert” forecasting is invariably wrong as soon as it is published, I must ask you to oppose the recommendations set forth based on policy, the uncertainty of unintended consequences and what I consider an incomplete comparison with competing jurisdictions (national and foreign). One of the fundamental pillars of the Conservative approach to government (by which the current provincial government was elected) is to trust and empower the individuals and free private enterprises. Our deeply rooted conviction that individuals and private enterprises can manage wealth and generate value in better and more effective ways than government has led us down the path of lower taxes, balanced budgets and smaller governments. This conservative ideal seems to have been abandoned by the current provincial administration. Not satisfied with a multi-billion dollar surplus, adding a projected $1.9 billion to the government coffers uncovers a disguised conviction within the local Cabinet that government bureaucrats are best suited to manage our money, I may add, in a very liberal manner. Second, economic modelling does not and cannot incorporate human behaviour, Thus modeled outcomes must be taken with a grain of salt at best. The report itself declares that “A limitation of project analysis models is that they provide an incomplete representation of the consequences of various royalties and taxes on the incentives for private sector investment”. Considering that the anticipated new “government take” equals the cost of maintaining approximately 21,000 employees in the oil and gas sector, risking the economic well being of all these individuals and their families on “modeled” results seems extremely provoking. Finally, I must take exception with the report’s comparison with competing jurisdictions. Although the author claims that the comparative charts are corrected for distance from markets they do not correct for recently discovery pool sizes or regime intentions. Whereas our West Canadian Basin reservoirs are smaller, more elusive with steeper decline rates, recent gigantic discoveries in the Gulf of Mexico and the North Sea with rich infrastructure in place can accommodate a higher government take. In addition, the report insists in comparing Alberta’s take with those of dubious regimes whose obsession with state-owned agencies include nationalization programs and return to state owned oil and gas corporations (i.e. Venezuela, Libya, Algeria, Russia and Angola). Obviously, their royalty and tax levels are higher. This can’t be a fair comparison, unless the Alberta government has decided on a similar path. No mention of the royalty and tax system in, for instance Alaska, Colombia or offshore Brazil. [Information Removed] |
| RRE1041 |
Dear Sirs/Madames, This is such an excellent opportunity for our Province to provide for and plan for a more secure future for our children, grandchildren, and future generations. We borrow the province from them. How can we waste their precious resources by avoiding our responsibility to obtain our 'fair share' and to use it as wisely as possible? I would like to see us, through our government, invest in long term infrastructure desgned to meet the needs of many generations of Albertans. Porjects like high speed rail links, mass transit systems, schools, hospitals, care facilities, parks, and natural areas would benefit not just those who live here now but those who come after us. We need to lead the way to adopt a culture of sustainability which places the environment first so that the province isn't laid to waste before our generation is through with it. This can be done by developing sustainable energy resouces like solar, wind, geo-thermal, and alternative fuels to replace the existing carbon based culture. Using the 'fair share' of the resource revenue with these goals and others like it will say to our children and their children that we were good stewards of the province while we were in charge. What better epitaph could we hope for? Sincerely, [Information Removed] |
| RRE1042 |
As a long term resident of fort mc. I am deeply concerned with the proposals made by this review. I do not disagree that an amendment to the current Royalty strategy needs to be made, however I am concerned that the review does not take into consideration the actual impact that the current proposal will have on Albertans. Already we have seen an impact on the Grand Prairie regions and other areas that rely heavily on the natural gas industry. Under the current strategy it will become uneconomical. Many projects that are in the initial stages (many of which up here in the Fort McMurray area) will also be impacted. Before such a decision is made I feel the government should take a much deeper look into the current proposal and work with industry to come to a suitable agreement that will not affect the future well being of Albertans. The way the proposal is written really paints a negative picture of the Oil and Gas industry and to the average Albertan that does not work directly in this industry the proposal seems fair. People do not realize the impact that this would have on everyone in Alberta. Why is this not being communicated to the public? Both the Government and the media are painting a very narrow picture of what this would actually mean. For those of us in the Fort McMurray region it would be devastating. If current projects decide that it is no longer economical to continue with expansions and new projects it would crush the Fort McMurray economy. Many people up here are scrapping by…paying huge house prices..what would happen to these individuals if even one of these mega projects decides to pull out? I would start a downward spiral and have a devastating effect on our city and the Province. I am really confused as to why our Premier would fully support such an initiative when such realities exist! If the review is looking out for Albertans and our future would we not want to come to a solution that benefits everyone involved? I am strongly encouraging the Government to take a closer look at the proposal and I am confident we can come up with a solution to ensure a healthy future for all Albertans..now and in the future. |
| RRE1043 |
I am writing to you to express my concern over the Royalty Review that just occurred. I am not well versed in the facts and figures of the review, however, I wanted to let you know what is already occurring in the industry and that it is already directly affecting me and my family and has already affected many people whom I worked with. I work for an environmental service company that is publicly traded and our Canadian head office was located in Calgary. Since the Royalty Review report was released and resulting recent announcements of further reduced drilling activity, my company has decided to leave Alberta and abandon all our Environmental operations within Canada. Work was slow this summer, but now with the recent possibility of a further reduction in drilling, the company has decided not to wait and see what happens. They are reallocating their capital to more stable markets and into other countries where activity is higher and more predictable. In the last few weeks 24 of our Calgary office staff and all of our field staff were laid off (approx another 30 sub contractors). I was one of the four lucky ones and have been retained to shut down operations, but once this is complete I do not know how secure my job will be (the writing is on the wall). I am using this time to seek new employment, but industry feedback tells me the job market is not good right now for a specialized field in the drilling industry (other companies are in a holding pattern right now to see what will happen). In discussing the impacts of a further drilling slow down with friends and neighbours, it is obvious that many other industries will be affected by this. Not just the ones directly attached to rig counts and drilling activity. Things such as vehicle sales will be further affected (already significantly down for truck sales), restaurants, hotels, gas station, contractors building and renovating homes etc, to name a few will all be affected. My personal experience of seeing all my co-workers laid off in front of me over the last few weeks and hearing of how they are dealing with making their house payments, feeding their families and dipping into their savings and children's RESP's to make ends meet really have me concerned of where our economy is going. I live in Airdrie, shop in Airdrie and support the community financially as much as possible so I see how my wages get filtered into all the businesses around town and in the area. Please help me to express my concern that the proposed changes to the Royalty structure will affect many people in the same way that me and my co-workers have already been affected. What happened to us was a small scale layoff (only 24 Calgary people laid off) but I really see it as the tip of the iceberg of what may happen should the Royalty changes be adopted as is. If my company saw this region as unstable and non-profitable to stick it out to see, then others must also be thinking the same. Adopting the Royalty changes as recommended will be the nail in the coffin for many other companies that are on the fence right now. [Information Removed] |
| RRE1044 |
Hello my name is [Information Removed]. We're a junior company and all the talk about the Royalty change seems to have everyone running around here in a somewhat panic. I am very concerned that our company will not be around and then what? Things are expensive here in Calgary and both my husband and I are in the oil and gas industry. We could lose our home if we both lose our jobs. Even if we tried to sell the house before we lose it to the bank how can we actually recover when the housing market also crashes due to all these changes with royalties. I have a small child that has luckily been able to get all his needs met and that has all been thanks to the oil and gas industry. I ask that you please reconsider your strategy with the royalties. This could be devestating beyond your imagination. Please spare us the agony of another disaster and major industry crash. I need my job, my husband needs his job. Please please please stop and think before you act on this. Thank you for time and I hope you take serious consideration to my request. [Information Removed] |
| RRE1045 |
I am hoping that the Premier will fully adopt this report. Oil companies do NOT own this province and have had it really easy under Klein. I worked in a school for years and I am disgusted that the chairs and desks were falling apart, and still are, and oil companies keep getting richer and richer. I do NOT like threats and that's all the oil companies seem to be able to do. DO NOT be intimidated and stay your ground. It is time that the "regular" people of this province receive what is rightfully theirs. I do not understand how Klein didn't give a "tinkers .........! and I am disgusted the government went along with him so meekly. You have the chance Premier Stelmach, to make history and right the wrongs of the Klein era. Please do not let Big Oil scare you as regular Albertans stand behind you. Even if there is temporary pain, which I doubt, it will be for the best in the long run. The province belongs to US, not the OIL COMPANIES! |
| RRE1046 |
Dear Premier Stelmach, I am concerned! I have lived in Alberta for nearly 20 years and love everything about being an Albertan. This province has provided many opportunities for me and my family, but I fear it is about to end. I believe Albertan's are entitled to their share but at what cost - the loss of many Albertan's jobs. That isn't making anything better, right now we are the province that all others want to be we lead the way with the fewest unemployed, we are debt free, and provide endless opportunities for those willing to work hard. I believe if you choose to adopt the royalty review panel's recommendations this will all change. The oil companies will reduce their drilling and exploration - reducing the need for employees in all areas not only in their corporate offices but what about the person that works out in the field, the guy who builds the equipment, and the guy that works in the refinery. Before making your decision please consider all the good things we have in the province today - are you willing to risk losing them tomorrow? |
| RRE1047 |
I have worked in the oilpatch since 1981 and the only other time i have seen a report like "Our fair Share" made public by government, without any consultation with the oil industry, was when the NEP was implemented. I had hoped that this royalty review would be done in consultation with the oil industry and agreed to by all interested parties before being made public to all Albertan's. The way this was handled is a lose/lose situation for the government, the oil industry and Albertan's now no matter what happens. I can tell you this that if the royalty review is implemeted without significant alterations that i for one won't be voting for a government that handles important policy like this by making it public before consulting industry. Please see the article below which i think is a good summary of how the average person who works in the oilpatch and understands the risks and rewards feels about the royalty review and the effect it will have if implemented without significant changes. Thursday, October 11, 2007 Dear Ed Stelmach. I am writing to ask you this: Have you read your province's economic history? Your provincial government has unleashed a public relations nightmare that could precipitate an economic policy shift that would, in turn, destabilize or crush the Alberta economy. The Alberta Royalty Review Panel has attempted to stake out higher moral ground against the petroleum industry in its recent report to the government. The report is titled Our Fair Share. It asserts that because petroleum resources belong to Albertans, the royalty and tax system must justify every dollar that does not go to the owners. I beg to differ. Alberta has a history of restructuring royalties and taxes based on lengthy strategy documents that purport to advocate on behalf of the citizenry. They've had devastating consequences for Alberta's economy. This panel's recommendations would have a similar impact. Given the diversified impact of petroleum investment across the country, all Canadians should be worried. The fundamental error of the Review Panel's report arises from the manner in which it focusses on the proportion of revenue that goes to the province, and that which goes to the petroleum producers. Royalties are a revenue tax. Income taxes are levied net of costs. Comparing royalties in Alberta to income taxes in other countries, which the Panel did, represents a logical error. (Moreover, omitting comparisons with British Columbia and Saskatchewan was downright fraudulent.) Imagine a scenario whereby governments proposed to restructure personal and corporate income taxes so that they were fixed at a percentage of one's gross income -- with no deductions of any kind. And the tax rate wouldn't change if your expenses go up. This structure is clearly preposterous. Yet the Panel believes the establishment of such a system for the petroleum industry to be Alberta's right. Look back at Alberta's experiences with royalty changes. In 1974, with world oil and natural gas prices spiraling upward after the 1973 Arab oil embargo, Alberta increased royalty rates on crude oil and natural gas. The federal government, offended at these revenue taxes, declared royalties to be non-deductible in calculating income taxes. The economies of the western provinces were devastated. The index of energy stock prices fell by 60%. After cooler heads prevailed, misguided price controls on crude oil and natural gas kept the lid on royalties through the 1970s. In October, 1980, the federal government introduced the National Energy Program (NEP). Faced with another explosion in world oil prices, Ottawa introduced its own Petroleum and Gas Revenue Tax and a host of other equally insidious fiscal measures. Alberta was incensed and temporarily reduced oil production. Investment activity was crushed and the market for energy shares collapsed. Equally devastating was when Alberta agreed in September, 1981, to changes to the NEP, allowing Ottawa to impose its revenue tax. Alberta believed that ever-rising oil prices would create a win-win situation. Western provinces suffered a staggering impact on their economies, and, again, billions in stock market value was lost in the aftermath. By April, 1982, the Alberta government was forced to introduce royalty reductions and other incentives in order to stop the bloodbath within its economy. Yet public opinion in Alberta is wildly in favour of the government hitting the petroleum industry hard. More government revenues means more government spending on the things we care about: schools, hospitals and infrastructure. But explain to the rest of Canada, the G7 and the International Monetary Fund why the province needs to raise corporate taxation when the province is debt free. Finally, is this even about "Big Oil"? The Canadian Association of Petroleum Producers has 150 producer members, representing 95% of Alberta production and 92% of investment. The Small Explorers Association has 470 member companies. The Canadian drillers association has 186 members. The petroleum services association has 270 members. These associations represent thousands of citizens in every area of the province. The Panel's conclusions, and thus public opinion, are based on a report containing fundamental logic flaws, poor data and the assumption that the province's petroleum industry can be run like a state utility. We all lived through the NEP. Premier Stelmach, tell me that you have read Alberta's history with royalty and revenue taxes, and that you don't want the consequences repeated. -[Information Removed] has been an oil industry analyst since 1974, and is independently employed since 2006. © National Post 2007 |
| RRE1048 |
As I have already expressed detailed thoughts with my MLA and received no response, I'll be brief. Your government panel has shown concisely that they have no understanding of the full circle of economic activity generated by the energy industry. With the industry on the natural gas and conventional oil side currently in decline the recommendations are bizarre. The oilsands are currently keeping us going and they recommend cutting it down as well. Implementing the reports full recommendations will assure Alberta of a new government in power which may be a good thing given the leadership we are currently seeing. |
| RRE1049 |
The new Alberta Royalty structure, if implemented at all, must be done so with the bigger picture in mind. We are at a time in the energy sector where we have been hit with the negative impact of disallowing Energy Trusts to continue. This coupled with the increased finding and development costs have slowed our industry significantly. A change in the royalty structure that would reduce Corporations return on investment would, in all likelihood, see companies slash their budgets and send activity levels to a time that would be reflective of the NEP period. This could have huge repercussions on our industry as a whole with personnel and equipment moving from Alberta to our neighboring provinces and south of the border as well as a refocusing on the overseas markets. While it may be tempting to collect all of the golden eggs at once, lets resist the temptation to kill the goose to achieve this and instead focus on its welfare for the long term. [Information Removed] |
| RRE1050 |
I support the royalty review. An Oil /Gas Royalty review is long overdue . |
| RRE1051 |
Mr PREMIER, if it wasn't clear before, it is now after the Audotors Report that the Royalty Review Report must be fully implemented without change. I am a senior and find it unacceptable that the oil industry syncopnant Melchin who chose that industry over Albertans as Energy minister is representing seniors in your Cabinet. The idea that this man could now represent our interests having so recently sold us out is an insult to our intelligence! I also recommend you retain someone like [Information Removed], an outsider or a person of similar ilk and capability to implement the Royalty changes, the first job of which is to clean out the rats nest of incompetent and uncaring senior civil servants in Alberta Energy. Finally, Mr Knight who chose to defend these people instead of firing them has proved himself unsuitable to manage the major changes required and should be removed as Minister. [Information Removed] |
| RRE1052 |
It's time someone stood up to the almighty(oil companies). How is the oil boom helping the many citizens that are not employed in this field? Because of the shortage of labor wages in all service sectors have gone up. BUT look at living expenses. Royalties have to go up so that ALL Albertans can benifit. LET THEM GO. Maybe we can get control again and avoid a crash 100 times worse than the seventies. |
| RRE1053 |
I am currently employed as a field well-site geologist in the western canadian oil patch. Most of the work I do is in the conventional oil & gas sector although several situations occur where I cross the fence into the bitumen sector. I can clearly recollect the massive downturn the national energy policy of the federal & provincial governments in the 1980's caused to the oil patch. Family members went bankrupt & numerous friends went to overseas employers in the middle east & africa/indonesia. I personally worked in the oil industry drilling sector through the price downturn of 1998, when 8 dollar oil inflicted a massive downturn in the conventional patch & temporarily halted and panicked the bitumen industry. I believe that a short term panic has already began in the conventional drilling sector this year while the deliberations have been conducted by the royalty review panel. Any sudden massive change in government policy will have a radical impact on the balance sheet of the small companies in the oil patch. Large international players will temporarily suspend operations to "wait and see what the impact is". As a consequence small service sector operators and consultants are instantaneously laid off until a later time. My balance sheet has already seen a 40% reduction and my corporate & personal income tax will also reflect this 40% downturn this year alone. The short term wait & see will trickle down to tens of thousands of man hours of work across the province. Not all of us are under the employ of syncrude or shell and can wait out the period of indecision. Many of the wellsite operations in the modern oil patch are conducted by short term consultants and 1 or 2 man service companies. Many of these operations will temporarily halt resulting in a major impact to the small operators. We operate on a single job single invoice scheme and can be cancelled & sent home at a moments notice. We will see an instantaneous reduction in the number of projects per year and days per year. Please note: Small corporations are frequently unrepresented at meetings with the government in the review process as we do not have readily available staff to send to the meetings and to take part in the consultation process. Although not represented we make up the lions share of the labour and management workforce of the province. We will be hammered by a sudden radical change in the royalty structure especially if there is a pause to wait and see what happens implemented by many larger corporations. This royalty review while timely and necessary must also be implemented in a slow and exceedingly cautious fashion to avoid confusion and unfairness. We must realize that in the future the oil patch is also going to be called upon to reduce greenhouse emissions and to pay possible carbon related production & emission taxes by other levels of government. If all of these consequences are dished out at the same time the thinking period required to wait and see could be substantial and literally tens of thousands of small corporations do not have the capital in hand or the liquidity required to weather a long storm of government decision making. The government thinks very slowly and the broadsword of taxation is rarely if ever reduced once implemented. We will be forced to go & seek work in the international arena or to go out of business in the same manner we did during the mid 1980's under the confusion created by the national energy policy re-structuring of the oil sector. I can only hope that some of the people that are making and planning this process have already worked their way through one or two of the last major downturns and possibly been forced into bankruptcy by changes in government policy in the past. Shell and ESSO will drill in other countries to make up the shortfall or will aquire offshore assets or purchase smaller corporations. Where will I & many other small Alberta business corporations go to? Probably Saskatchewan or B.C. or overseas. If we have no work here even in the short term we are bound by the need to provide for our families so we must move to other places where work can be found. [Information Removed] |
| RRE1054 |
I believe that the AB Government should accept all the recommendations of the Royalty Report. This report is frank and candid and outlines the royalty situation accurately. Industry's reply, especially Encana, is what I would expect becuase they have it so good with record profits that they don't want to lose the goose that laid the golden egg for industry. Industry is bluffing and playing the chicken game, as they always do. Albertans own the resource and should have the power to say, this is what it will cost you to extract our resources. Don't know if the present government has the backbone to say that. If the government doesn't have the foresight and backbone to inplement all the recommendations in the report, Alberta may have a different party in power after the next election. Remember what happened 30+ years ago when Peter Lougheed displaced the then spineless Social Credit government. The same may happen to the Conservatives unless they stand up for Albertan's rights. |
| RRE1055 |
The report is seriously flawed with poor analysis. How could 5 people have the knowledge or background to come up with a report that affects the whole oil & gas industry without the expertise of WORKING in the oil & gas industry?! I do not support the recommendations - it would significantly impact activity levels in Alberta and have a domino effect on all other industries. Recommend the AB government consult the oil & gas industry experts, and perhaps come up with a better recommendation and feasible/reasonable royalty rate increase than the one presented. |
| RRE1056 |
Hello, I am concerned about the proposed changes in the Royalty Review report. It seems there is a large discrepancy between what the panel is saying they are proposing and what representatives from the Oil and Gas Industry are calculating the using these proposed guidelines. How will the gov't deal with these discrepancies? Will you involve more members of the Oil and Gas industry in discussions to help you work through and understand the numbers? I am all for the government and the people of Alberta getting their fair share. If the royalty regime needs to be modified to do this then that should be done, however, I am not for "killing the golden goose". I realize how much Alberta needs the Oil and Gas Industry to thrive. We have seen what the oil price and the new oil projects have done to our province in the last couple years. We have grown immensely and the economy is doing better than it ever has. But as quickly as our growth and wealth has come, it can disappear as quickly and the pain will be far greater. Would I like to have more money to be allocated to improving infrastructure, education and health care? Absolutely! But, not if it causes a major downturn in Alberta's largest industry and results in job loss. I think their could be a lot gained by meeting in the middle and creating a win-win situation for both sides. I am wondering if the government has any future plans to do this. Thanks for the opportunity to provide my feedback. [Information Removed] |
| RRE1057 |
After reading the letter in the Calgary Herald this morning that was written by [Information Removed], I am very nervous about the implications to Alberta if the recommendations in the royalty review report are implemented. I am in healthcare and I am also originally from Saskatchewan. Healthcare and education do need help with funding in order to be more effective. Our programs are still in better shape than those in Saskatchewan however. I would like to know how the Alberta government is spending the surplus funds already received from the oil and gas companies. A review needs to be done on how this money is being managed and why education and healthcare are suffering. You have plenty of money!!! Do you really need to pull in more? It is important to effectively manage the money you are currently dealing with. If the oil and gas industry is taxed more when costs are increasing and profits are already decreasing, the Alberta government will destroy this industry. Why would you cut off the hand that feeds you? Why are people like Bill Hunter in charge of something this important? Why aren't the experts such as Murray Edwards and Gwynn Morgan on the panel? I urge you, Premier Stelmach, to reassess the report and recommendations. I came from a province that is struggling, why do the same to Alberta? Talk with the Alberta oil and gas industry experts and review how your surplus is currently being managed and allocated. Do not destroy Alberta. Please listen to your people. Thank you. |
| RRE1058 |
I think things should be left about the same , Here's an idea, put a cap on fuel prices at home and the pump for a few years, this would definitely help alot of people!! |
| RRE1059 |
We want what is owed to us from the past PLUS an extra 2 billion per year. Tell the oil companies to go to Norway if they think they can get a better deal--see if they even budge. |
| RRE1060 |
Dear Premier Stelmach: Alberta has one of the most envied economies in the world, with jobs for all and levels of prosperity that are the envy of the rest of Canada. While it is true that oil companies are presently reaping large profits from oil sands, they are also taking the risk. These projects can span a decade from concept to first oil and cost billions of dollars - they deserve compensation for the risk. Also, many of the developers are Canadian companies - Suncor, Encana, CNRL - ordinary Canadians and Canadian instituitional investors such as Teacher's Pension Funds share in the profits from the oil sands. Many of us remember the early 1980s, when policy changes and royaly squabbles sent the Alberta economy into a terrible recession. People lost their jobs, homes and families. Why does the Alberta government want to risk this again by changing the playing rules? Leave the royalty system as it is or confine the changes to very modes adjustments. Let's continue, as Albertans, to enjoy many years of prosperity from our energy industry. Regards, [Information Removed] |
| RRE1061 |
More people I know than don't work in the oil & gas industry. I don't want to see Alberta go into a recession - especially not when the cost of living in Alberta has sky-rocketed. Production is already done last year and this year and those affects move down the line very quickly. My husband's a [Information Removed]and they are cutting back. What will the effects be if they royalty review is implemented as suggested. There needs to be a common sense approach to increasing taxes. Taxpayers would be outraged if you suggested uping the income tax 20% in one year. Our wages have not caught up to the cost of living increases so punching our provinces key industry in the gut won't help in any way. Please think about the effects on Albertans, not the oil & gas companies. We are the ones who will be most negatively affected. |
| RRE1062 |
I strongly support the Royalty Review recommendations to make adjustments to the current royalty schedule. I encourage the Government of Alberta to adopt the report in it's entirety. I respect the oil and natural gas industry's right to make new business decisions based on a new royalty schedule. While I do expect some Albertans will feel negative effects, the royalties must be updated and must be competitive with other jurisdictions. [Information Removed] |
| RRE1063 |
Please think before you crush our economy, gradual increases to an agreed upon amount would make much more sence than pushing oil companies to Sask or out of Canada. I highly doubt you taking more from them (oil companies) is gonna help make my mortgage payment easier or give me more job security. Don't we have 10 billion dollar surpluses you can give back to us, I would rather you not overtax us and let us keep some of our hard earned money. |
| RRE1064 |
Increasing royalty will force our oil companies to invest elsewhere, bringing with them billions of dollars that could have gone into the Alberta market into other provinces. This will lead to loss of jobs for Albertans and essentially destroy our economy. |
| RRE1065 |
I am a Canadian and a long time investor in Oil Sands project and similar Canadian projects. Recent Royalty tax proposal will result in me putting my investments in China, India, Russia, Brazil ETC. [Information Removed] |
| RRE1066 |
In the short term the government revenue may increase. However in the long run, implementing this policy can be detrimental to the economy. With the increased royalty rates the production and revenue of the oil and gas companies will decrease significantly. The lack of revenues and profits will in turn affect the employment of several workers working in the oil and gas industry. The increased rates of unemployment will slow down the growth of other businesses as well. The lack of spending on the consumer’s part (because of unemployment) will negatively impact the retail business. The lack of expansions of new projects will halt the progress of consulting companies. As well, in the long run due to decreased production (caused by the increase in expenses) the government will receive a lower royalty payment. If this is what the Albertan government is supporting then the liberal government can thank the PC government in advance for their landslide win in the next elections |
| RRE1067 |
It looks like to me that for an increase of revenue earned from royalties of 2 billion dollars the Government is willing to risk the fact that oil companies will pull out of Alberta and spend there money elsewhere. Oil companies like Encana have threatened to reduce drilling budget by 1 billion alone. The impact of just one energy company alone would be crucial. I'm sure there would be more to follow. The impact to the Province would be devastating. For years Alberta has been the province that led the way in Drilling activity for the reason that is the most feesible place to drill. By taking that away it opens other options for companies to spend money in more feesible areas, Like BC or Sask. In recent years BC and Sask have altered there Royalties and Incentives to make it more attractive to Drill in there province as they are smart enough to see what they were missing out on. Not only does it bring more money to the oil companies but it brings it to the communities and residents. I am one Albertan that has never voted for Political Leaders but i would definetly make a point of voting against the people who are responsible for bringing in this amateur and irresponsible decision. Thank you |
| RRE1068 |
I support the findings of the review panel and think that the Province should increase royalty rates in a manner that slows the current development pace in the oil patch. My support is based on the belief that the present pace is not sustainable and serves primarily to benefit short-sighted goals of multi-national oil companies. I am prepared to live with a reduction in oil generated revenue resulting from a change in the royalty structure if it produces more sustainable and well-planned exploitation of our natural resources. [Information Removed] |
| RRE1069 |
I believe and have so for many years that Albertans are not receiving a fair royalty from the oil and gas industry. It would be a big mistake to cave in to the Oil Company's which in my mind are trying to blackmail us into believing they would cut back and lay off people. The only reason is that is would cut into their record profits they have enjoyed year after year. They don't appear to be suffering in Alaska and Norway (why here?) The Government must realize that eventually this province will run out of these resources and could then find them in a "have not province". They must think ahead generations to come. Not only would they be sold down the road but also our generation. |
| RRE1070 |
I hope you are watching the media, numerous oil and gas producers have already cut their budgets for next year. Because of this, the pie has already got smaller and it hasn't even been decided yet. |
| RRE1071 |
You must enact all recommendations of the Royalty Review. The conclusions were well thought out and thorough. Big oil is laughing all the way to the bank. I was present at [Information Removed] the day after the review was released. Their arrogance showed in their comments. You must act FOR Alberta. |
| RRE1072 |
The royalty review report is a good first baby step in the handling of a resource that belongs to the citizens of Alberta. Much more must be done to illustrate the ownership of the resource. These comments should be made public to the general citizenry and not restricted to those who have a computer. |
| RRE1073 |
Dear Premier Stelmach I am writing to you as I am very concerned over the impact the implementation of the Royalty Reserve Report to the Alberta Government may have on all Albertans. As my Premier, I encourage you to strongly oppose these recommendations as set forth by the panel. I have read impact statements from both Oil Companies and Financial Institutions and the common theme is that the economics used by the Panel are fundamentally flawed. Please take a few moments of your time and review the material on the [Information Removed]. I am a 3rd generation Albertan and grew up in Northern Alberta in the Valleyview region. My parents operated a small grain farm and my father supplemented this income by working in the oilpatch as a [Information Removed]. When I was younger I witnessed my parents and people like them struggle to make ends meet. In more recent years I have seen the overall quality of life improve for both myself and these people from Alberta’s smaller communities. I see this quality of life improvement being solely due to improved oil and gas revenues. These revenues are not from royalties, but are rather from capital investment made by Oil & Gas Companies in the area. Alberta communities, small and large, experience a greatly improved economy from the additional expendable income people get from oilpatch jobs. This expendable income has spun off an enormous amount of opportunities and jobs in things like retail sales, construction, and entertainment. We have also seen the Alberta Government do an excellent job of eliminating our provincial debt. This was mainly possible due to funds from our current royalty regime, crown land sales, and increased income tax from directly and indirectly oilpatch created jobs. These improvements are attracting new opportunities such as banking and high tech developers to Alberta. With continued nurturing, they will eventually be able to weather any storm from volatile oilpatch revenues thus spurring our economy even further. Sadly, I believe that by increasing royalties to the level and extent that the Royalty Review panel has recommended we will see a substantial erosion of value and a lower provincial income. Oilpatch investment will decrease from a change in royalties. Land sale bonuses for the crown will decrease, off-setting any increase in royalty rates. Job losses will be incurred as oilfield construction will slow or stop. Expendable income from all oilfield employees will decrease devastating existing and potential spin-off opportunities. This will create further job losses. Housing and investments values will also drop forcing some individuals into bankruptcy. We, as Albertans, take our fair share in many ways other than royalties. Our fair share will be reduced if these negative effects should ever be allowed to occur. The royalty structure needs to remain the same to maximize the potential of our great province. The growth of Alberta needs to be set by what our people and infrastructure can do and not by artificial means. If our growth needs to be slowed, it will happen on its own. And if the growth rate needs to increase, the oilpatch will, as it has in the past, invest in the necessary infrastructure improvements. Again, I strongly oppose these recommendations. If you would like to discuss this matter further, please contact me at home, [Information Removed] Regards, [Information Removed] |
| RRE1074 |
We should be selling our resource to oil companies at fair market value, i.e. royalty rates comparable to other jurisdictions. If that means slower exploitation of the resource, so be it. [Information Removed] |
| RRE1075 |
None of this matters with the royalities. We have tons of homeless that are not being taken care of, single mothers [Information Removed]are sitting on welfare because [Information Removed]can't find childcare, and the child care [Information Removed], ended up being cancelled because of a lazy subsity worker who didn't want to look at [Information Removed]file for 6 weeks and a welfare worker who doesn't know how to read and paid a daycare [Information Removed]children weren't even attending. You want to know what to do with the royalites? Build more affordable housing, put more money in for child care workers, so people like [Information Removed]won't sit on the system. [Information Removed] am more than willing to work but can't. Fix what is going on in Alberta, because right now the rich keep getting richer and the poor are sleeping outside! |
| RRE1076 |
I am a professional engineer with 26 years of experience working in the oil and gas industry. I am an expert in economic evaluations, project design, exploitation engineering and reservoir engineering. The royalty review report is stunning with the ill-conceived, short-sighted and plain erroneous conclusions. It is a testament to poor data, poor analysis and a general lack of understanding of the oil and gas business. If the recommendations of this report are adopted, the Province will have a larger share of a much smaller and ever diminishing pie. It will cause the Province to see a decline in revenue from land sales, projects to be shelved or outright cancelled and the people of Alberta to suffer the trickle down effects of a severely reduced level of capital spending in the sector. And these are just the short term effects. Long term, royalty revenue will decline as investment is curtailed and the reputation of Alberta as a stable and ethical environment in which to invest and work will be seriously eroded. Please review carefully the responses from industry (Encana, CNRL, Talisman, etc.) and the various investment houses (ARC, First Energy, Tri-Stone, etc.). If those responses are not convincing enough, please feel free contact me. Yours truly, [Information Removed] |
| RRE1077 |
The ARR report already reflects a compromise position on the royalty question. Do not yield to the extortionist threats of the oil industry... Albertans own the resource and we deserve a better return on that resource... Back away from full implementation of the ARR and I will move my political support away from the Conservative party... [Information Removed] |
| RRE1078 |
As a professional engineer in the oil industry I am responsible for generating ideas and evaluating the economic feasibility of same. I must account for commodity price forecasts, high service sector (inflationary) costs and risks associated with the POTENTIAL reward - this business faces higher risk factors as smaller, less permeable play types become the "high hanging fruit". Our company just completed a budget process that will see a dramatic adjustment downward in project implementation due to these same factors - high costs, low natural gas projections and resource risk. The government must be VERY aware of how the panel's recommendation would severally damage the economic vitality of the province. I know, because I'll be forced to shelve many projects that would have otherwise added value for Albertans. |
| RRE1079 |
don't kill the goose that laid the golden egg - this will cause layoffs, less investment and dead economy |
| RRE1080 |
The review sends a clear message that Albertans own the resource and are not getting fair value for it. The recommendations are fair and put us in the lower half of oil and gas royalty measures. I am upset to hear that certain insiders are getting to the Premier and spouting doom and gloom. The Alberta Advantage should apply to all, not just a few. I urge you to act and do the right thing. All interested parties had time to contact the panel and provide input. The industry did so. The panel consisted of educated and experienced people. The Premier needs to do the right thing on behalf of all Albertans. |
| RRE1081 |
I don't like to be blackmailed by big bussiness-I don't want my government to knuckle under to that type of behavier either, after all the resources belong to all albertans and they just become more valuable as time passes. |
| RRE1082 |
I currently work for a large oil company and I am familiar with the cost and revenue side of the oil and gas business. I urge you pay attention to the comments from the oil & gas industry, in particular, the data presented by the Review Panel. It is seriously flawed. You cannot be expected to make a fair and informed decision on this sensitive issue unless you have the correct information base. The Panel did not present you with correct data. I am not against Albertans getting their "fair share" of the profits generated by the industry. But one must remember who is putting up the capital to persue the very risky business of finding and developing the resource. We enjoy a fabulous quality of life in Alberta. I know because I have experienced living in many parts of the world. We did not get to this status by growing wheat or cutting trees. The oil industry, and the tens of thousands of folks they employ at 'better-than-average' wages already contribute significantly to the government (and hence the people of Alberta) through income taxes and corporate taxes. Be assured that increasing the royalties on the oil & gas inductry will have a very significant negative impact on the industry, and by extention, the employees and the people of Alberta. I strongly suggest the following course of action: 1) Reassess the panel's findings using accurate and realistic data. 2) Channel efforts in ensuring all royalties are collected under the current guidelines. 3) If it is still deemed advisable to revise the royalty structure, implement the changes over a longer time frame, say 5 to 8 years. 4) Grandfathering is a must. There can be no option here. It is unthinkable that you would consider revising the royalties that the government and oil sands developers have contractually agreed to. Tens of billions of dollars have been committed to these projects on the basis of these contracts. Changing the royalty structure on these folks is something you would expect from a government in the third world countries. What better way to destroy the secure investor climate we have today in Alberta???? In summary, don't dismiss this note as some trivia sent by an industry fanatic. I am a professional person with lots of grey hair and have been in this industry for over 30 years. I know what I'm talking about. [Information Removed] |
| RRE1083 |
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. |
| RRE1084 |
Please carefully consider your decision with respect to the proposed royalty review. Our family is one of many in Alberta which will be directly affected by an increase in the royalties paid to the government. Perhaps a increase is warranted but not so big to discourage the oil companies from continuing to invest in Alberta. In the past few months our income has dropped sharply due to the slowed activity in the oil patch and the uncertainty over the proposed royalty review has not helped. Please be fair to all Albertans. |
| RRE1085 |
Alberta's oil royalties Here is a good analogy for the government to consider while mulling over their "fair share" conundrum. I think this explains the opinion polls (75% in favor of the Royalty increase) to a tee. Of course, the panel doesn't even consider the possibility that the "size of the pie" might get smaller rather than simply taking a bigger piece of a pie that stays the same size....... Since it is tax season let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20." Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33% savings). The seventh now pay $5 instead of $7 (28% savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $49 instead of $59 (16% savings). Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," declared the sixth man. He pointed to the tenth man," but he got $10!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas or south of the border where the atmosphere is somewhat friendlier. |
| RRE1086 |
Alberta's economy is currently built around the stable block of the oil and gas industry. What happens when Alberta implements this new Royalty Review? Here's a prediction: current projects will get cancelled all over the province and cause a negative economical ripple effect. If it's no longer economical for companies to do business here, they won't. It's a simple economical fact. The Royalty Review would not only effect our international business, but will also cause a ripple in the working stability throughout Alberta. Thousands of people make their livelihood not only being employed by an oild and gas company, but also by all extensions of the industry (for example, the service industry). Several of the smaller businesses will implode with several downsizings that are sure to reach all Albertans. Less economical work means less jobs. Less jobs for Albertans would be devastating to an already struggling society. People residing in places like Calgary who already suffer from a housing crisis will only be punished further by such a rash economical implementation. If people already cannot afford to live in such places, what happens when there are less jobs? It takes time for markets to balance out and this kind of change is just too much for any province to handle. Bottom line is that the Royalty Review will inevitably and unnecessarily make cuts to our booming economy. Alberta does not need the the extra royalties, but does indeed rely upon the cash flow of the oild and gas industry. Make no mistake, Alberta's economy relies on the oild and gas industry and NOT the other way around. And granted, more royatlies likely need to be paid, but a change like this is just too much at once. The change is too drastic and does not allow for any kind of needed adjustment time. If the change is due to be made, then make it over a progression of time with due notice. Overall, the Royalty Review is a rash and economically rediculous decision. If we want to keep our economy strong, then we have to keep our oil and gas industry. It's just that simple. With any luck, the government will make the right decsion. |
| RRE1087 |
I agree with the final report from the Royalty Review Panel. Alberta government should enhace oil and gas tax right away to fix the problem of shortage labor and make Alberta economic sustainable development. Current Alberta ecomony is abnormal and it looks very not economics but Alberta citizen life standard reduced. We have to cool down to many invest on Alberta natural resources. |
| RRE1088 |
i commend the premier on instigating the report. i agree with the recomendations in the report. |
| RRE1089 |
First of all I believe the Royalty Review report was well worth doing in that it has initiated very important discussion that is most interesting. However, I believe the panel has misled the public on how much is actually made by the industry on a return on capital basis. Most of the producing industry in Alberta, even at today's high prices, receives a very modest rate of return or actually loses money. It is also shortsighted to present that Alberta has been shortchanged by $2 billion annually. The assumption is that by increasing royalties collected the net benefit to the Alberta public will increase by $2 billion which is false given that many projects that drive the industry will become much less attractive to pursue. If the oil industry gets a smaller take for their efforts there will be less capital available to plow back into development activity in Alberta. This seems obvious and I believe the industry has made a good point presenting this and one worth listening to. |
| RRE1090 |
Very bad idea. Who wrote the report that forgot to look at the total negative impact that the royalties would have on our population? Royalties would have a rippling affect that would cause our booming Alberta economy to shrivel on so many levels. I didn't have to research for long to understand the devastating implications that this wwould have on everyone. The profits made by large and small companies are put back into our province in many ways, through further development...charities, more growth, more taxes. That money grows exponentially into millions more... for everyones benifit. Where does the royalty $ amount go? It doesn't grow. It is another chunck of money that can, and probably would get lost in government projects, which end up to be waste. In the end the money stops flowing in because the oil companies won't be spending much. My husband is a service provider for the oil industry and has already seen a huge decline in work. The compamies they work for have stopped or slowed right down. Our new government SUCKS. THIS IS AN EMBARRASSMENT TO OUR ONCE THRIVING PROVINCE. IF THIS GOES THROUGH I WILL NEVER VOTE CONSERVATIVE AGAIN. |
| RRE1091 |
I do not support the report from the Royalty Review Panel. I would hope that you consider the long term affects this will have on the Province of Alberta and not the immediate support you receive from the uninformed. I moved here from back east 11 years ago and until now had no intentions of leaving. The company I work for provides surveying services for the oil and gas industry and we are already experiencing a "slowdown" as a result of the release of the report. I know business has been slower this pass year due to the price of gas and the income trust issue but recently (2-3 months prior) our work had started to increase and we were actively recruiting new employees. The companys we work for were starting preliminary work for 2008 projects. If the panel's report is accepted we will undoubtedly be facing layoffs before Christmas. Please do the right thing and not take the easy way out. |
| RRE1092 |
Hi, I just want to make sure that you are considering all new graduates in all engineering disciplines as well as geoscientists, business, management, accounting, land (shall I go on?) in making a decision regarding this royalty review. The large companies have advertised for new graduate positions, but they are conducting very few 'new grad' students for full time work. I am already looking for jobs in Houston...I guess we can join the nurses that are already lured to the States. I am glad you are chosing to invest in educating people (through providing student loans, scholarships and bursaries) but are making a decision right now that means we have to work elsewhere. I will be awaiting the decision with bated breath. |
| RRE1093 |
I believe the Government of Alberta should accept the royalty review report in its entirety. [Information Removed] Lethbridge |
| RRE1094 |
I think their should be a cap on Gov"t. and Mineral Right Owners for ALL royalties. We, as a family, own our mineral rights. I, [Information Removed], as the family spokesperson had to fight, practically literally, with the oil co. as to the percentage of the royalties we would like and eventually. We finally decided on 18% out of 65%. This was their call or NO DEAL. I think it's a dirty shame that our prior descendants broke this land for these mineral rights as homesteaders and we as future descendants have to fight for our grandparents hard work/reward. Thank you Sincerely, [Information Removed]Phone: [Information Removed] |
| RRE1095 |
I think the Royalty Review Report didn't go far enough. Albertans need accountability. We need a greater share of the revenue from non-renewable resources, and we need much more funding to develop renewable resources. The oil and gas companies' threats to pull out are bluff and bluster. Where are they going to go? And if they do slow down their construction, that would be blessing to the rest of us in this overheated economy, lowering inflation and relieving labour shortages. |
| RRE1096 |
Why would we bite the hand that feeds us. Do you wont us to end up like Saskatchewan or any of the provences in the maritimes. There is already grumblings that the last part of the year the oil companys will stop drilling. The farmers in this provice could not carry the load of this econemy. Lots pof people will loose there jobs and homes. you you like to be rememberd for that. you will loose the next election if you go throu with this. I hope you know what you are doing. We should all be afraid of the oil companys they hold this province together and keep food on our tables. |
| RRE1097 |
I am a teacher and am not related directly to the oil industry. I hope that the government reconsiders the findings of the royalty review. We must not make rash decisions which though on the surface appear to provide "justice" will in fact ensure a lower standard of living for all albertans. I am opposed to any substantial adjustments of existing policies. sincerely, [Information Removed] |
| RRE1098 |
Premier Stelmach, don't strangle the golden goose. Yes, the people of Alberta own the resource and must get their fair share via royalties - but let's remain mindful of all the jobs and economic spin-off benefits (and the various other tax revenues so generated) that also accrue to Albertans from oil company activities. Let's also remain mindful of the fact that the mathematics of wringing every last penny out of the oil companies may seem fine on paper, but in reality may very well reduce profit margins so as to make business risk untenable. High government taxes (such as overly high royalties) slow down and turn away new business investment. Is that what the Stelmach government wants for Alberta? |
| RRE1099 |
I am absolutely in favor of this royalty review we are giving away our oil and gas for nothing. Its high time these oil companies started paying their share out of their record profit every year. The threats they are a tempting are absolutely unacceptable. This is like ransom. Let them leave they will all come crawling back and they know it. Good job Conservative government you may get back my vote if this goes through. |
| RRE1100 |
The booming economy in Alberta is due in large part to the stable, preduicable and reliable royalty and regulatory structure. The proposed royalty increase will jeopardize Alberta's reputation as a stable place to invest. The royalty increase recommedend by the review committees is, in my opinion, a short term opportunistic money grab. Given the large government surpluses and the significant share of revenues coming simply from the vibrant economy, the added revenues are not needed by government. [Information Removed] |
| RRE1101 |
My thoughts on Royalty Review is that is long overdue, the oil companies have been given a free ride for too damn long. These companies have no allegiance to anyone but themselves and they will go where to oil is no matter what. They will never offer to increase royalties on their own. I find highly insulting to have these companies like Imperial (EXXON) Oil Shell, and today Encana complain and issue threats when they have been making record profits in the history of mankind and have been getting free ride. These same companies are paying 2 and 4 times the royalty rates we have here and they did not leave these countries. The Royalty rates need to be reviewed and should reflect the current value of oil. If companies can accept that then they should damn well get the hell out. We don't need them and our Alberta economy is overheated anyway. The royalty rates should be based |
| RRE1102 |
I think it it about time we wake up as albetan. We should open our export and not just let the American dictate to us what we canget for our oil. Look at our lumber industry where is free trade , name sake just for the yanks . See they put a heavy tax on our lumber , what is free trade ""Just for them" . It is time we concentrate on the global Market and open our doors to the international Market. As for the Royalty tax we can introduce it in stages . First stage up 10 % Then next year tag another 5% follow by another 5% after pending the price of oil at that time . We cannot give our heritage away remember these are not renewable resources . Look at PEI they give away their Hydro for next to nothing for themself . May be I should be in politics, we need to think more for ourseves .,run the goverment like we run our own business . The govt must be accountable for its day to day decission from the top . Likewise if you set a very bad example by giving yourself a 20% pay raise , the unions and average worker will demand like wise . |
| RRE1103 |
Any other business that was expected to give up 60+% of their profits after already infusing our economy in significant ways (jobs, current royalties, land purchase and mineral rights purchase, etc.) would pack their bags and leave. Are you crazy? The oil industry, along with agriculture have kept this province thriving. As a near 50 year old, I have been waiting for another NEP like grab from the feds. I never expected the province to lead the industry and all the people it supports to slaughther. I suspect you can guess that I think you are way off base on this issue. [Information Removed] Social Worker in Calgary |
| RRE1104 |
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] |
| RRE1105 |
Increase the Royalty. |
| RRE1106 |
Ed, the big banks make money by lending money and charging interest. The banks don't create money, the Bank of Canada does. Because money is a resource created by government, Canadians should get their fair share of the money that banks earn by lending it. Yeah, a "royalty" should be charged. Canadians should get their "fair share", notwithstanding that they didn't invest in the infrastructure that allows the banks to operate, and notwithstanding that they aren't taking the risk that the loans won't be repaid. Yeah, I want my fair share. Well guess what Ed, a royalty is charged. Its called corporate income tax. Its a tax on profits. The oil & gas industry have 2 taxes - a royalty that has to be paid whether or not there are profits, and income tax. So by increasing the royalty, you are reducing the chance of profit. What do companies do when they face reduced profit? They do something else. They go elsewhere. They downsize. They only invest in their best possible projects, abandoning the ones less likely to generate a profit. Ed, the Alberta royalty debate is really no different from the bank analogy. Oil & gas in the ground is absolutely useless and worthless without millions and millions of dollars of investment, invested at risk that it will be a dry hole, or that prices will collapse and all manner of operational risks. So Ed, "the people" crying that they want a bigger slice of the pie, because "that's fair", rings hollow. And the people saying that the oilpatch is just "posturing" have never taken an economics course, which pretty much makes their views meaningless. No amount of popular support for the Royalty Report will change the laws of economics. Ed, this will be your downfall. You will strangle the Alberta economy, generate less royalties, less corporate tax and less income tax. No amount of current popular support for the Royalty Report will keep the party from bringing out the knives and coming for you once the economic havoc has been wreaked. Your historical legacy will be as fondly remembered in Alberta as Pierre Elliot Trudeau's. |
| RRE1107 |
Please follow the auditor general's recommendations, and at the end of the day we Albertans will still have our resources. |
| RRE1108 |
Do not implement the royalty review panel report. It will be detrimental to activity levels and the people of Alberta will be the losers. Key Points and 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. |
| RRE1109 |
I, being a former Saskatchewan resident, am not pleased about the announcement to increase royalties. The idea that a debt free provincial government needs to "take" more from an industry that is actually creating employment is concerning. The only upside I forsee is the oil/gas companies moving into Saskatchewan. However, I am sure the Saskatchewan government is paying close attention to all of this. In all, the royalty increase may slow the industry which may slow the economic growth. Hopefully this does not create an inflationary burden for the province. I know little about the report but being an investor in Alberta Oil and gas industry and fairly up to date on economic situations I believe they should re-evaluate what they propose to do. |
| RRE1110 |
I fully support the increase in Royalty charges to Oil and Gas companies. I think the Royalty "discount holiday" they've been on for around 20 years has been harmful to our cities, towns, municipalities and other companies that do business here. I have also noticed increased stress for most people in their work in this province over the last 6 years. Of course there have been many opportunities that have arisen with the big push from the major oil companies, however, the increase in housing costs has take away much of the Alberta Advantage for most working people or people coming to work here. I know several people whose rent has doubled in the last 2 years. One place that I can quote prices charged $670 in 2005 and are now demanding $1200 per month without any improvements to the suite. These kinds of increases is requiring youung families to move and disrupts the children's schooling because they have to move to an area far away from their schools. The service at many restaurants has become poor due to them unable to keep cooks and waiters. This is effecting our tourism and we are getting a bad name as a place to come to vacation. Many of the campgrounds have been jammed with people during the summer months making it difficult to have a relaxing vacation camping. As far as I'm concerned the province has been booming too much and we are the worse for it. It greatly alarms me to see Oil Companies threaten the Government of Alberta who have been elected as representatives of the people. They are trying to use their corporate power to clout the people of this province, the environment and try to take shortcuts. These companies are competitive and the officers of these companies are expected to get as much profit as possible. They are not going to slow down unless they are forced to. And it is up to our government to put boundaries on things. If we have resources in the ground it may be one of the best investments to keep it there as prices increase for the resources. Our earth is getting overwhelmed with emissions and we will be better off in the long run to ween ourselves off ot the addiction to cheap oil. This province has the financial power to incent alternative clean energy development such as geothermal to heat buildings. This takes considerable front end capital to complete these projects. Wouldn't it be great if we had the best Geothermal development companies in the world right here in Alberta? I believe this is where the opportunities lie. Thank you, [Information Removed] |
| RRE1111 |
I applaud your plan to raise royalty rates - this revenue should be used to implement zero GHG emissions from production and use of fuels in Alberta. That might mean that the same companies who are paying royalties will receive some or all of that money back for developing and implementing zero GHG emissions programs - not just for their company (that would be a good start) but for all users of the end-products from oil and gas. What could be more fair and beneficial to Albertans (and the rest of the world)? |
| RRE1112 |
Anything short of implementing the complete set of recommendations is unacceptable - in fact, it should be retroactive. Do not choose the oil companies over your responsibilites to the people of Alberta. |
| RRE1113 |
With the current downturn in drilling in the WCSB, will changing the royalties add to the tough situation the service companies in central Alberta are already experiencing? |
| RRE1114 |
Re: Royalty Review Report October 7,2007 It has been mentioned on the radio that input into the royalty review would be heard from both the public and the oil companies. The unprecedented growth in Alberta can be equated to malignant cancer cells. We are rushing, without any long term planning, for the use of all our resources. This growth is causing serious problems to the infrastructure, water supply, air quality and last but not least the habitats of animals and birds. Farm land is disappearing at an alarming rate to accommodate this unhealthy growth. Having lived in Alberta for many years, I have not noticed such a lack of available contractors for the average person. Managing growth should be an all around benefit for Albertans,habitat for animals and reasonable profits for companies. On a recent trip, [Information Removed], was told that enormous open pits store poisonous effluent and shots ring out to scare animals away as contact would produce death. Is this true? Do we know how such materials are handled? If growth was reduced to a reasonable level , limits set that could be monitored, then maybe all would benefit. I strongly urge this government to stick to the review panel's report and evaluate EnCana and other major oil companies fear mongering words with caution. They need the resources more than we need their over-zealous profit range. Albertan Resident [Information Removed] |
| RRE1115 |
To the Politician it may Concern, If Albertans own the oil and natural gas which lays below the surface of our province this must mean we also own all the trees, water, soil, and mining minerals. What percentage of royalties do we get from the pulp, paper and lumber industries? What percentage of royalties do we get from the power companies for the use of our water to generate power? What percentage of royalties do we get from the companies that treat the water then re-sell it to us for drinking? What percentage of royalties do we get from the farmers for using our soil to grow their crops? What percentage of royalties do we get from the mining companies that are changing the face for our province? In what other business do companies have to pay 50% or greater, of their earnings to the government? If the government wants to be a partner in this business why don’t they have to pay their fair share of the expenses as well? In the review, the panel talks about the royalties being for fledgling companies in a struggling industry. The government didn’t put any money into the Research and Development that has made the industry what it is today. They sit there on there high horse and wait for the companies to do all the work and when everything look good and safe they fly down and try and take half the profits. If you ask me the Government is about the bite the hand that feed it. They are about to put the oil and gas industry into a tail spin. Why doesn’t the Government take an honest look at trying to save money instead of killing a vibrant industry? They should take a serious look at making all Canadian equal instead of treating some nationalities different from others. Billions of dollars are wasted every year on keeping the native community different from the rest of us. Million’s of dollars are spent on the politician’s pensions. Millions of dollars is spent on gun control. All this while the average Canadian works there whole life to make ends met while others sit back and spend or collect our tax dollars. Why can’t we keep the status quo (seems to how we are dept free) and use existing royalty monies to improve education and health care. Instead of putting people out of work, which in the worst case scenario increases the already strained social programs due to increased alcohol and drug abuse. If I am just wasting my breath (so to speak) did the review panel at least look at removing all the grandfather clauses from all oil companies, in order to create an equal playing field???? Like most Canadian’s I work hard and to make an average wage. I spend where I have to and save what I can. I have raised and provided for 5 children and brought them up to be proud Canadians. Now the question is, what exactly, have I made them proud of? Is it that they can work their whole life, just to have their Government come along and take everything away and give it to someone else? I am hoping to retire someday with something other than a card board box for shelter. Their will be no CPP when it’s my time to take it easy, so I’m trying to put a little extra away. Now the Government in ALL THEIR WISDOM is going to bite the hand. The sad part is it won’t hurt them, they don’t care. If this doesn’t get them more money they will just move on to something else and try all over again. We the hard working Canadians are the one that will suffer through the hard times. Now I understand why some stay on social services. If you stay at the bottom there is no where to fall. Sadly Sincere, [Information Removed] |
| RRE1116 |
I have lived in the province of Alberta for 24 of my 28 years. My income is based on the drilling and exploration industry. Recently with the slow down of oil and gas rig activity and the cost of living explosion, I have been forced out of my home province. I am one of many who can't keep up with the growing pains. I still work in province but have had to move out. This is not the time to threaten the stability of the country's hardest earned success. The people of Alberta are the ones being taken advantage of not the government, still I belive the timing for this decision is wrong. This is one of the most difficult regions in the world to drill and produce, it must be given an economic advantage to stay ahead. Leduc 1 the "last chance well" almost didn't happen because it didn't make good business sense to spend as much money as it took to make the discovery. If the last 6 months are a sign of what Alberta will see if the review board is successful in their recommendations our economic state will crash. Reduced oil and gas, will bring reduced revenues which means nothing is gained. The cost of living is not at a point where the average person can ride out the change. Could a gradual equalization of royalties's over a longer period of time with more careful evaluation of the outcome not be worked into the solution? Can the people be given the choice with more info from both sides? The industry being here is in it's self a reward to the province during this un seemingly volatile time. Even if it doesn't disappear, our average income will stay trapped in the ground. Please let the people, since we will all be affected be heard and take a careful approach at getting what's best for Albertans. |
| RRE1117 |
I am hugely disappointed with the quality of the work, the research and the recommendations that came from the royality review panel. I feel the review panel is completely out of touch with the reality of the maturing WCSB. [Information Removed] |
| RRE1118 |
[Information Removed] announcement today to cut 1 billion dollars in spending if the royalty reform is carried forward amounts to [Information Removed] trying to blackmail the people of alberta |
| RRE1119 |
As a small business owner and lifetime resident of Alberta, I urge to adopt the recommendations of the Royalty review panel IN THEIR ENTIRETY. This is simply being fair and considering the LONG TERM well being of the province. [Information Removed] |
| RRE1120 |
I think an increase in royalties will cripple Alberta`s economy.We are allready experiencing a slowdown with the high loonie. This would be a double wammy! I don`t want to experience the early 80`s again. |
| RRE1121 |
I am deeply concerned about the increase in Royalties that the Ab Gov plans to adapt. Thousands of people would loose their jobs - it would be catastrophic for Albertans and all of Canada...(There's enough anger inside of people as it is - the loss of their job is just going to make it worse) I ask you to please not increase the Royalties....This is a scary situation! |
| RRE1122 |
The data and assumptions used by the Royalty Review Panel were seriously flawed. If the Panel’s recommendations were implemented, the potential immediate impact on the industry's activity levels in Alberta would be very significant. Please ensure that my province is a province where the government’s future revenues are balanced by the need to support continued, robust industry investment and to protect the jobs of may Albertans. Yours truly, [Information Removed] |
| RRE1123 |
I work for an oilfield company I do believe that something needs to be done but I do believe that what your wanting to do is a bit harsh. I don't think we need people killing themselves again not knowing what else to do I don't think you would want that to happen in your family!!!!!!!!! Also we don't need Alberta becoming deserted because we have moved our rigs elsewhere I don't think you would want that either so make sure you look at those cons as well maybe figure out another way less harsh. |
| RRE1124 |
Things are so overheated economically in our Province! It has to slow down - the exagerated escalation of costs will in itself have a deflationary and slow down effect. Encana would love to have someone else to blame for their $1b cut back - but they are going to have to do it anyway. The oil, the gas, will be in the ground no matter when we pull it out - it is not going to go away. Any increases in Royalties is bound to bring out resounding howels from all secrtors of the industry - but the industry is already slowing down in response to the price gouging of the supliers to the industry. Stelmach must raise the royalties. For his political survival, he must be smarter amd cagier than the smart guys in the head offices. BUT HE MUST RAISE ROYALTIES FOR THE GOOD OF ALL FUTURE GENERATIONS. What about this - grandfather the contract that are in place - but now take 50% of all oil revenues that are above the price of oil when the contracts were signed and the price on which the oil industry decided to start up their various projects. WHAT COULD BE MORE FAIR! [Information Removed] |
| RRE1125 |
How much would the major oil companies have to give up under a Liberal Governement? Probably alot more. At least then we'd have money for healthcare and education. |
| RRE1126 |
Please - do not let the oil companies maintain the status quo.They are acting like school yard bullies with their threats. Stand up to them and make them pay their fair share. Not all Albertans are sharing their wealth as shareholders. [Information Removed] Lethbridge |
| RRE1127 |
While it is true that there should be an increase in the Royalty Rate currently paid, it is imperative that the Alberta Government does not increase the rate so as to "KILL THE GOLDEN CALF". It is also imperative that the funds received by an increase in the rate be used properly to fund the needs of Albertans. |
| RRE1128 |
You call this the peoples resource and our future. Then listen to the people by not increasing the royalties. All that will happen is a loss of jobs with in the province. Try and find a city or town in Alberta that this will not affect if you make changes to the oil & gas industry. |
| RRE1129 |
20% is just to high. What makes Alberta so attractive for buisness is it's pro-buisness atmosphere and the 20% hike will most definetly prove to destroy it. Think big picture here and leave as is |
| RRE1130 |
I am totally in support of increasing royalties. The report is long overdue. We lag far behind just about every other oil producer, including Texas and Alaska! |
| RRE1131 |
Go on, Increase the royalty rates. What are we waiting for? Do what is right for the people and our future, you really dont have to ask the people. No one asked us when it was revised from within the government? Thanks for asking anyway, at least I have a chance to voice myself. We have been looted of this royalty, Alberta's wealth and savings from non-renewable resources for the future generation. What a shame, thanks to Ralph. |
| RRE1132 |
I am a strong supporter of the the conservative government, and supported Stelmach throughout his camplagn (even before he officially started campaigning), but am extremely worried about the current state of the Royalty Review. Alberta has become the most prosperous privince in the country due to our favorable tax structure and positive business climate. If we are to start deminishing the Alberta Advantage that we have developed over the last deckade by increasing taxation and discouraging business development which we have worked so hard to aqcuire, I would have to seriously reconsider the competency of our current leadership. I would like to see Alberta continue to create incentives for business in all sectors, and find ways to create more tax revenue proactively through new industry development rather than detrimentally by way of increased taxation. I strongly believe that adopting the Royalty Review recommendations would be a detriment to our province. |
| RRE1133 |
The proposed increase to the Royalty Review will - and is already killing our economy. Take a look at the amount of oilworkers out of work already who are waiting to see if they will have a job in the upcoming months. My company - oil and gas services - has already suffered a 75% reduction in work this quarter all due to the possible forced tax. The governments greed is going to cost all Albertan's. The job losses will be huge - and will impact Goverment by costing it more to support unemployed workers. Do NOT push forward with this tax. |
| RRE1134 |
As a concerned Alberta citizen working for a Northern Alberta Oilfield Construction company, I feel that it was be completely and utterly wrong to increase the royalties. What is the government going to do when that happens and it puts ALL of us out of work and on welfare???? |
| RRE1135 |
Costless complaining? I put a feedback earlier saying I was suspicious of oil interests complaining since oil is up to 80/bbl unexpectedly. Q. How much does it cost them to complain about the Royalty adjustment proposal? Almost zero. Recently the engineer's society APEGGA complained (I'm in that society and they didn't get my opinion.) Current Cost of Complaining: stock price may fluctuate (either investors glad a mega project is being delayed, or investors worried about idle capital) If the Oil Interests could be made to declare in contractual terms which projects they will definitely scrap, then they would have some incentive to be realistic. Right now it's nearly free to complain, and so it's hard to separate ligitimate go/not-go declarations from recreational complaining. |
| RRE1136 |
Where are the facts. Aside from the industry responses, all you have is a bunch of uninformed biased opinions by statisticians and accountants, and responses from the public that are not aware of the facts in the energy sector today. Think about it You will look back in years to come to realize you achieved higher royalties on half the opportunity. Plain and simple. Your recommedations will result not only in a net loss of $, but a loss of trades, technical, and expert workers (the real stakeholders), and a return to the early 80's and the early 90's. Don't repeat history. Think one would learn. Brilliant if you want to use this issue to get reelected. But I dont think this is the election to worry about. It will be the next one after the fallout has cleared. Nuff said. |
| RRE1137 |
The honourable Ed Stelmach: I have farmed and worked in the oil patch since 1967,starting as a laborour then , [Information Removed] an owner / operator in an earth moving company. We have carefully made it through the boom and bust cycles and gradually expanded to a company ,seasonally employing over 100 people .I remember the NEP of the early 1980's and the disaster it brought to the oil industry / economy of Alberta. Being a Cat contractor for [Information Removed], I know that they will not hesitate to slow or stop work in Alberta if it is not proffitable .This will put me and my emplolees out of work ,resulting in less taxes and less money to spend on goods and services.The oil companies are public companies . They share thier profits with me because I own shares in many of them . By raising royalties, profits /share prices will drop and share holders will loose. I would personally rather keep this money and spend it as I seem fit as opposed to the government collecting it and spending it on whatever.If you see it necessary to raise royalties,please do so with extreme caution because no one needs a Conservative caused RECESSION. Thank you. [Information Removed] |
| RRE1138 |
Adopted the report in full. Now is not the time to blink. Royalties need to be fairly shared with all Albertans, not just those that can fill the PC Party's Election Fund. Do the RIGHT THING FOR ALBERTA. |
| RRE1139 |
Just Joe Citizen here, I make my living off the oil patch and am concerned that the proposed royalty changes will impact my financial well-being. I have heard that Alberta stands to gain and extra $2B in royalties, but consider the downside as so fervently articulated by the oil companies. I'm not sure this relatively small amount in additional royalties is worth the risk. |
| RRE1140 |
The Alberta govt. is currently collecting oil and gas royalties from the producers, corporate taxes from operators and the service companies associated with the industry as well as the personal income taxes from the hudreds of thousands of people employed by same. When companies are allowed to prosper, everyone prospers. Mr. Stelmach, your record to date is less than stellar. Please don't [Expletive] up a good thing. |
| RRE1141 |
Hello, I am an oil and gas worker. I work for an [Information Removed] firm that provides services to large companies such as Encana, CNRL, Suncor, Husky and others. I learned today that the project for which I was to be the project manager was drastically cut back by our client, [Information Removed]. The reason for their cut was the result of a capital budget review process that considered the impact of a new royalty regime proposed by the review panel chaired by William Hunter. The result of this review was a drastic cut in [Information Removed] capital budget across all business areas for 2008. The most contentious issue in their minds is the Oil Sands Severance Tax (OSST) which greatly reduces the economic viability of oilsands projects in Northern Alberta. Another contentious issue was the panel's use of cost figures that are clearly out of date. I have worked on a two recent major engineering studies recently and can attest that cost escalation has been very severe over the last two years. [Information Removed] estimates the the cost figures used by the panel are approximately 50% of the costs the industry are experiencing at present. We are hearing from [Information Removed], as well as other clients that if the proposed royalty regime were adopted without any changes, the economics of large oilsands developments would not be viable. The upshot of this reduced [Information Removed] project budget is that my team of 20 will be reduced to a team of 4. I do not know where our company will place the surplus 16 employees but I fear that they will be layed off. I believe that the current recommendations go too far and that their implementation, wholesale, will result in drastic cutbacks in firms' capital spending, resulting in very substantial layoffs across many sectors in our industry. I would strongly urge the provincial government to study the issue further before rendering a decision on a new royalty regime. Kind Regards, [Information Removed] |
| RRE1142 |
An increase in royalties may hurt the ab. economy in the short haul. The oil and gas will still be there and will benefit future generations by an increase now. These oil companies will have to find other ways , new technology, to decrease costs as syncrude has done. |
| RRE1143 |
Mr. Stelmach, I've been listening and reading with great interest on the royalty review process. I'm proud to be an Albertan and Canadian. I've voted every year since I was of age and find myself for the first time questioning why this province has allowed a report to be written as poorly as this royalty review report. I would have thought that this report would have been an unbiased review written with suggestions that need consideration instead of an in your face biased recommendation to break the hand that fuels this province. The title of the report says it all. "Our Fair Share". No one knows what our fair share is or should be. Why in the world would "Our Fair Share" be allowed as a title. Before one even starts to read the report you know that the contents will direct the reader to assume that the province has not been receiving it's fair share. I'm disgusted at the way this review committee has outright claimed that ths province has been ripped off for years. If this province has been ripped off for years then why are we the envy of the country and the world for that fact? This report has placed you and your government in a precarious position. I've watched and listened to your handling of governmental affairs since your rise to power and I've been very disappointed with your approach to how you share information with the voting public. I'm in agreement with industry on the royalty issue in that if you choose to implement this report in it's entirety it will be devastating to the province's economy and political suicide for the Conservative party of Alberta. I urge you and your party to take a step back and consider your own report title. "Our Fair Share" is not about our fair share as it is written. It should have been titled "A Royalty Review". The committee that wrote this report is not in touch with this province and it's economic drivers. I certainly hope you use some common sense here and keep this province as prosperous as it has been. From a taxpayer, voter and fellow Albertan. [Information Removed] Please send this email back to me so I can have a copy of it. |
| RRE1144 |
As a voting Conservative, I am extremely concerned and disappointed that this Government has the short- sightedness to consider this very significant royalty change without fully understanding future ramifications. The prosperity of this Province is directly related to opportunity generation, risk management, investment and value creation directly associated with the oil and gas industry. To a certain degree I can appreciate re-assessing oil royalties while prices hover around $80/Bbl but to even consider gas while currently at $5.00/mcf is attrocious. More importantly, the study should never had been released to the public without prior consultation with significant stakeholders, specifically the companies investing the billions of dollars in this Province. The media has feasted on this without also fully representing all stakeholders views. I am very disappointed with Mr. Stemlach's political handling of this, and given his previous track record such as Capital Deployment issues with Municipalities, it does not appear that Mr. Stemlach is truely qualified for this position. Prime Minister Harper made a difficult decision associated with the taxability of Royalty Trusts, and although I do not agree with the outcome, I do admire the process that he carried out. He commissioned a study, assessed recommendations, weighed the effects on stakeholders, and made a difficult call without involving the media or effect the market during the process. In contrary, we have a Premier who is unsure what to do. I can only ask that Mr. Stemlach will please take the time necessary to fully assess the longterm effects of all stakeholders. |
| RRE1145 |
It sends a terrible message to the global business community when one goes back on its commitments. That being said the tarsands should see and increase but gas and sagd shoiuld not. |
| RRE1146 |
Royalty review - about time. As a born-in-Alberta Albertan, I am furious that my resources have been taken from my province and shippped away -- to the States -- AND FOR FAR LESS RENT (ir none at all) THAN SHOULD BE KEPT HERE IN THE PROVINCE. Up the rent -- if the American-owned oil companies won't pay --fine. They can LEAVE! And maybe finally, after 3 years, I'll be able to find a plumber who will work here to fix my toilet for less than $300 an hour. And I won't have a shortage of water, natural gas, or electricity, along with billions of dollars worth of infrastructure inadequacies, pollution problems. and environmental destruction to deal with. |
| RRE1147 |
I have been reading the articles concering the Royalty Review and have read some of the review itself. I beleive that there is substance to the recommendations and to a minor degree, the Industry's counter point of view. Being an Albertan means we are open to reasonable arguments. I believe Royalties should be raised, gradually and with flexibility to sustain our economic engine - the resource sector. Albertans deserve a higher share of their own wealth and we should begin implementing these new royalty rates immediately. Again, if the increases are gradual and have flexibility for our industry, all should benefit. Increased royalties should be used to save for the future and to pay for our infrastructure deficits which the previous administration ignored for too long. A 66% for infrastructure and 34% for the Heritage Savings Plan would be fine. Also, when are we middle class people who earn over $60,000 per year going to get some needed income tax relief? Yours truly, [Information Removed]Calgary |
| RRE1148 |
As a healthcare professional in our province, I am 100% in support of raising royalties. I have seen more than enough of how much money is wasted by the oil and gas companies. They can tighten their belts just like the healthcare system has had to do. After all, I don't mind leaving that oil in the ground for my children, if that's what big oil wants to do.. |
| RRE1149 |
If this is even partially true (Alberta losing billions on energy royalties: auditor general - See: http://www.cbc.ca/canada/calgary/story/2007/10/01/energy-royalties.html ) then any agreement that allows petroleum reserves to be used for the primary use of large, rich oil and gas companies without a substantial increase in royalties as outlined in the royalty review report would indicate that the current government does not represent the vast majority of Albertans. If the royalty report is modified or "watered down" then it would suggest that the government represents the wishes of the rich and powerful. This of course will likely have grave consequences for the government in the next election. [Information Removed] Medicine Hat, AB |
| RRE1150 |
STOP raising taxes. Increasing taxation with NO PLAN as to WHY or WHAT the increased suppression of our economy will be used for is foolhardy and irresponsible. We've been having RECORD fiscal surpluses for years now. WHY RAISE TAXES? Stelmach is giving birth to a new SEPERATION PARTY in Alberta. Stelmach's political career is over either way this goes. FACT. |
| RRE1151 |
With the sudden soar in housing prices, caused by our supposed increase in all our standards of living by the great flow of cash into the economy. The average Albertan is not able to live in the comfort or style that they enjoyed five years ago when housing was attainable for middle class and minimum wage workers. If the economic growth was to slow down, who would suffer, I am sure it would not be the common worker if prices were to return to a more manageable level in the housing market. Make Alberta a place where our children can once again afford to purchase a starter home at a starter home price. |
| RRE1152 |
I had got a phone call from someone taking a poll... but the first question they asked was if I worked in oil and gas. When I said yes... they had no further questions for me. Thats a bunch of [Expletive] dont you think!!!??? |
| RRE1153 |
It's a good idea for Albertans to get their fair share. I think that royalties should be used to eliminate Alberta Healthcare Premiums. Royalties should also be used to lower taxes on gasoline, natural gas, and put more money into education, healthcare, and green power. [Information Removed] |
| RRE1154 |
I have said from the beginning....take it easy on the oil companies. Hit them a little at a time. Please do not cause a recession here. You will only be impeached. I will have no choice but to give up my house and go on welfare (which I will do-as many Albertans will do) What you will(might ) make now on royalties will only be lost on massive layoffs , uic -welfare claims...as well as a higher crime rates. We all know that the "oil" makes alot of money but they control the economy for now. I have worked only 1 week in the past 2 1/2 months and now I fear I may lose everything because of your "cowboy" attitude. As much I hate to say ...you will lose this fight before it starts. The people have the final say! Please think about the welfare of ALL Albertans before your political agenda. |
| RRE1155 |
I have sent a messagew before but with more information then I morse strongly believe that the big oil companies are crying foul. They DO NOT own the oil it is the citizens of Alberta's oil. If you have the guts tell then if they don't like to pay then leave. They didn't cry when they were making big profits so let them go. It is there stockholders that are crying and if the companies don't make a good profit the the CEO don't get their big bonuses. |
| RRE1156 |
The proposed gas royalty is too high for deep ( expensive)wells and maybe too low for shallow ( low cost ) wells. Primary heavy oil wells should pay royalty at the same rate as other oil wells. Oil sands mines should continue to pay one percent OR 25 percent of " net profits " If you change the rate for existing projects they should be grandfathered for at least 10 years. |
| RRE1157 |
This review has unfortunately demonstrated the Alberta Government has not provided a feasible growth plan for the province of Alberta. Economic growth has proceeded far too aggressively, producing major infrastructure and housing pressures on the province, directly affecting the well- being of Albertans. As the economy enters a "cooling" phase over the following decades, which will become a minor recession, the province will find itself unprepared due to overspending on major infrastructure projects and housing in previous years. Using financial overspill from the Heritage Fund is a short-sighted spending philosophy, and does little to prepare the province for a future (and inevitable) economic downturn. In the midst of these issues, it is beyond doubt that a large increase in royalty payments is necessary in order to discourage overspending on capital projects that have only been benefiting oil & gas projects for decades - and not Albertans. A simple economic model demonstrates that reduced profitability in the oil and gas sector will reduce the pace of spending, and stabilize the oil and gas economy. Furthermore, it should be clear that the finances accrued, after royalty payments have been rebalanced, must be spent to ensure a stable future economy for a province currently suffering from cancerous growth in the oil and gas sector that has metastasized in other sectors. To summarize, financial responsibility and growth management MUST become the vision for this currently meandering government - and royalty reassessment must only be done with this kind of vision in mind. Respectfully, A Concerned Citizen and Albertan |
| RRE1158 |
NO to subsidising big oil -- the MARKET should pay the REAL COST of oil, including denegration of water and public health costs of air polluition in the production!!! Further, what is the rush to develop expensive sources.... after PEAK oil has well passed the price will go much higher, THEN Albertans can decide IF it is worth developing it!! For years Alberta has (apparently) been charging LESS for OIL Royalties than anywhere in the 'safe' world!!! Someone in the government was probably 'looking after' this for the offshore interests who benefitted so mightily. Shame on the Klein government -- and good luck to the NEW government if it charts new courses!! |
| RRE1159 |
Today we were provided with a very alarming presentation within our company. The Royalty Review Report needs to be re-accessed in a major way. I am a young, single mom, already struggling to make ends meet in this costly province where I have been born and raised, and if I was to lose my job due to major industry project cutbacks I do not even want to imagine where I would end up. And I am only one person. There are thousands out there just like me, in entry level jobs in the industry just squeaking by, and we are the ones that will be hit the hardest. |
| RRE1160 |
I feel that the increased royalties and taxes will greatly restrict oil & gas development in Alberta and be very harmful to our economy. Let's not not get greedy and ruin a good thing! |
| RRE1161 |
I am strongly in favor of accepting the report of the Royalty Review Panel as prepared with no alterations or compromise. The Panel took into account the issues now being presented by the big oil companies and, even though I have stock in some of them, I believe that the people of Alberta deserve more return on their finite resource. I am sickened by the threats being made by the big oil companies and hope that the Premier sticks up for average Albertans, not big oil. |
| RRE1162 |
This royalty increase in a bad idea. I have been working in the oil and gas industry for 8 years now. I have already seen the affects of this report slowing down alot of the small companies that I work for. Drilling went from 33 % to 29 % since that review has been sent out. Do the math, that has already caused a huge loss in tax revenue. If I am not making any money then the Goverment is not making any money. |
| RRE1163 |
After doing nothing since being elected, our premier has managed to bring the energy sector to a complete stop. I don't think he has any idea how much money is taken out of the Peace River area each year, and how little is put back in by the provincial government. Edmonton has treated the Peace River area the same as Ottawa has treated Alberta. After an extremely slow summer, we are now on hold again while the oil companies wait for an announcement. This was supposed to have been on the 15th, but we are still waiting. The federal and provincial governments already take the lions share of revenues, and now the provincial government wants even more. When Trudeau implemented the NEP it was a disaster for the west, now we have a Trudeau in our own provincial government. |
| RRE1164 |
The proposed increase in royaltys is to high. The provincial government does not need more money, it needs to control spending. Any increase in royaltys should go directly to the people of Alberta not to the government to spend. Taking more money from the private sector that operates very efficiently and reinvests and spends it profits in the economy and giving money to government that by its nature operatres very inefficiently is not in the intrest of Albertians. |
| RRE1165 |
The royalty report as presented to the legislature is absurdly stupid. I have no more appropriate words to describe it. If implemented as proposed it will castrate the Alberta oil industry and have a devastating impact on the Alberta economy. The last statistics I heard still has approximately 51% of this province's economy directly or indirectly tied to the oil industry. I work directly for an oil company so admittedly I am somewhat more knowledgeable about the industry and the costs associated with producing heavy oil in this province. Yet how your panel of supposed experts could have gotten it so wrong is simply beyond me! This will be more devastating than the old national energy program in direct effect and indirectly it will be much worse because this time there will be no local government fighting to keep the province's head above water. I fully expect the oil companies operating in Alberta to significantly curtail their activities in the province and move their money where they can get a bigger, safer return on investment. The beginnings of that economic re-evaluation have already begun at my employer with major projects not yet started facing a review with many cancellations likely. When (note I did not say if) the provincial government realized what a monumental mistake it has made and reverses itself, I expect those companies to take many years to return that investment to Alberta since the government of Alberta would have proven itself hostile to the industry. Now how about a few facts: The province's take is a percentage which means it fluctuates with the price of oil. This means the province gets a bigger cut automatically as the price goes up. Pandering to uninformed, unbridled greed should not be allowed to kill the goose that lays the golden egg. The report has massively underestimated the lifting cost of a barrel of heavy oil in this province. The economy in this province is booming and the costs of getting a barrel of oil have shot up significantly in recent years. Most Albertans seem completely oblivious to these costs and assume the $80 a barren for WTI seen on TV is Alberta heavy oil and some might even think that's oil company net profit. This is definitely NOT the case on either count. These rising lifting costs I speak of are real and significant. In evidence, I draw your attention to the some of the healthiest oil companies in the province, my own employer among them, cutting back development and drilling activities in a record high commodity market due to rising costs. This even before the royalty scheme was announced. Add on the proposed royalty scheme and layoffs in the oil patch are almost inevitable. The initial investment in heavy oil is just the beginning with substantial processing costs before the product even enters the pipeline to the refinery. Depending on the recovery scheme it can also be very difficult to react to market pressures. The knee-jerk reaction of shutting it in is a sure fire recipe for disaster with a steam injection thermal project as many companies found out the hard way during the last oil price instability. A company has to have deep enough pockets to continue producing even at a loss if they have a reasonable expectation of oil price recovery in the near term. Heavy oil is VERY expensive to develop and economically risky. There MUST be a significant reward to compensate or no company would assume those up front costs and ongoing operating risks. In my opinion if the Alberta government wants a bigger cut it should develop the resource itself. Foot the bill and take the risks for a bigger stake. If you can't or won't do that then take what you get in royalties and corporate taxes. Both of these should be more than sufficient or had you forgotten that you get to tax the supposed exorbitant incomes of those same oil companies? Since taxes are also a percentage the province would also automatically get a bigger cut on the other end again with none of the risks. My question to you is: How many ways can you bleed the same cow before it gets sick? Regards, [Information Removed] |
| RRE1166 |
Basing Royalty changes on a report that used extensively erronious data is a utterly destructive. Alberta can implement royalty changes however they need to be balanced unlike the ones proposed. If you really want to get peoples try view on royalties ask them this would you want increased royalties at the expence of your neighbours job because thats what this comes down to if changes that are represented in the report are brought into reality. A government also shoould not rush such a monumental and far reaching decision to meet public demands. The government is responsible to all Albertains not just the ones who believe the propaganda around this subject. So please be cautious because it is going to be hard working albertains that are hurt not the big oil companies. |
| RRE1167 |
the proposed changes are poorly researched and based on erronneous data. The government must re-think the additional royalty burden proposed for the conventional oil and gas sector. The gas business is already struggling and higher royalties will make it worse.the panel's flawed recommendations actually penalize better wells where capital is being more efficiently deployed.I never thought rewarding mediocrity was what the Alberta advantage was all about... |
| RRE1168 |
Given the limited mandate of the review panel, and how this mandate kept them from considering larger questions of not only what is fair to Albertans, but what is in the best interests of our society now and for future generations, the recommendations of the report are satisfactory and should be implemented as soon as possible. Those with vested interests (ie, that profit from Alberta selling off its assets at firesale prices) will of course protest, but they are not the owners of those assets, and they are not the ones whose grandchildren will look on them in future years and ask "Why did you sell our most precious resource so cheaply?" |
| RRE1169 |
Hello, I think the raising of royalties is a very bad idea because it will slow down development and investment in Canada. Investment is already relatively slow, the fact being Canada for having a very large resource of oil is not producing what it should be. If you raise royalties higher that will hinder growth and end up costing Alberta more revenues. For example is it better to get 15% of a billion dollars or 20% of half a billion dollars. If you want the less amount then raise the royalties and see why. Already companies have said they will postpone investing billions, and that is before it is implemented. So I hope you reconsider this drastic move in Alberta and decide to leave the royalties as they are now. That is the fair thing to do. Sincerely, [Information Removed] |
| RRE1170 |
In an attempt to benefit Albertans this report will cut Alberta off at the knees not only impacting our primary economy but utimately hitting our rural workers the most . Reeks strongly of Trudeau's National Energy Program. |
| RRE1171 |
i think that we as citizen's should get a percent back and well we have to live on is not enough and if we have oil to be used we should have some put back into our community |
| RRE1172 |
I understand the methodology behind obtaining higher royalties from resouce developing companies. However there are a number of considerations that need to be put into context when the methodology is reviewed. One...resource producing companies operate on a global stage where projects are not only evaluated on payback and Net present value criteria, but also on as [Information Removed] put it the competition for scarce resources. The two resources I am refering to are inputs and capital. If a producing company is comparing two projects, one in Canada and one in Russia the project that promises the most return on capital investment based on inputs required will most likely win the competition. That said if royalties inhibit the producing companies from investing in Canada's resources today we will see a further move toward globalization by producing companies which in the end takes investment dollars and spin-off economic benefit and pushes monies out of our economy hence slowing our economic engine down. If this is the result of the proposed change a more serious problem can occur. If producing companies' existing reserves are depleting and it becomes less econiomically viable to take on more risk and develop their assets to maintain and grow production, then royalty implimentation will be a mute point, as depleting reserves and a lack of exploitation will result in a larger royalty cut of a smaller pie. If this happens the implimentation will have succeeded in slowing the economy, forcing producers to expand on the international stage to increase return on investment, and the increased royalties may actually produce less "ecomomic rent" in the long run. Another major consideration is in the past several years Alberta has realized massive immigration from other areas of our nation. These workers are support to the oil and gas companies and their exploitation efforts. Slowing our economic engine down will create a devaluation in our labour as more competition will exist for fewer jobs putting downward pressure on wages. This trend will be created as less work is being done and more people are competing for the same jobs as supply of labour will out-pace demand for labour. Let's not forget these Albertan buy real-estate and for the most part are heavily leveraged living from one paycheck to the next. And let's face another fact that the 0% down first time home buyer will not be able to afford his or her mortgage if jobs are in short supply and downward pressure is placed on wages. We have experienced a small scale example of this credit crunch in places like Grande Prairie where people are walking away from their motgages much like that which happened in the 1980's. Implimenting the Royalty plan may accelerate a credit crunch and an asset devaluation across Alberta much like that which is happening in the United States presently. Lastly I believe if resources in production are depleting and reserves need to be developed in order to supply canadians with cost effective resources, implemting the royalty structure proposed may put supply in a state of dis-equilibrium with domestic energy demand. If this happens Albertans will be making less money due to downward pressure on wages, coupled with scarce supply of available resources i.e. natural gas, if more is not developed to replace depleting reserves. In closing I work in the oil and gas sector from the support side of the business, and although I agree that oil and gas companies make respectable profits, these producing companies fuel our economy, our livelihoods and our homes. A wise man once said "the market will take of itself," so let the market take care of itself. We as Albertans have had to make some concessions through Ralph Klien's tenure but Ralph Klien through fiscal responsibility put our province back on track. I ask the same of you Mr. Stelmach. Exercise the same fiscal responsibility and the very engine that is feeding the economy will continue to contribute to our societal infrastructure. All things aside... take the proposed royalty report off the table and you have my vote and the majority of Albertan's votes come the next election. Regards, [Information Removed] |
| RRE1173 |
By all means raise the royalty fees - [Information Removed]write up in today's Edmonton Journal "Big Oil - Big Threat" says it all! We definitely need to slow down a tad, do some catch-up and future planning to handle this rapid growth. |
| RRE1174 |
The Alberta Royalty Review Report is flawed in its analysis for many reasons, all of which I'm sure will be highlighted and argued by the many Oil and Gas companies that operate in Alberta. In light of this, the Report reaches a faulty conclusion as Albertans will in fact NOT realize the reported incremental royalties due to reduced investment, and the Alberta economy will be crippled if the recommendations in the report are accepted as-is. As a lifetime Albertan and Tory supporter, I frankly would be embarrassed and extremely disappointed if the Government made the decision to accept the Report's proposals without further review and revision. It would basically be the proverbial "shooting ourselves in the foot". |
| RRE1175 |
I cannot believe the government wants to increase the Albertan's share by 17% and decrease the companies by the equivalent.....are you trying to put Alberta out of the oil business once and for all.....Greedy, that's all I can say. |
| RRE1176 |
I advise the Stelmach Government to consider the full impact the increase to Royalties will have on our economy and "to get this right" We do not want to proceed in a manner that will put our economy further in jeopardy nor do we want to lose investors confidence. Please revisit and revise the propostions from the royalty review. Use the feedback the government is receiving as advice, not criticism and do right by Albertans and the companies that choose to do business in our province. As a member of the service sector I witnessed last year the service industry feeling that they were not receiving their "fair share" and in turn taking advantage of the oil & gas providers. Well this year we are suffering due to the greed of the service industry, the market correction set forth by the suppliers has already had a large impact on companies, rippling to all industries. A large increase to royalties would just further this effect and negatively impact our economy that once was so strong. Please do not allow greed to get in the way of our future. Reconsider your recommendations so they are fair to all, fair to Albertans. Thank you. |
| RRE1177 |
I disagree with the Royalty Review report and recommendations. If implemented, investment in Alberta will decline and long term the amount of royalities collected under the proposal will be less than under the current royalty structure. Albertans will end up with a larger piece of a shrinking pie. Investment should be encourage to enable the pie to grow so that everyone gets more. I do agree that the Oil Sands Royalty structure needs to be changed to slightly increase the government's take before payout. |
| RRE1178 |
How is it possible that this is a good idea for our province. Do you not think that the oilpatch affects everything in our city. If this royalty review goes through and the oil workers leave Alberta for Sask. or other provinces do you not think that everyday companies will not be affected? Clothing stores, restaraunts, bars, gas stations, this will affect everyone. So look at the big picture and drop his nonsense. How can you even consider such a thing and not see how it will affect whole communities? It is embarrassing that our government is even considering this. |
| RRE1179 |
Royalty should not be increased. We should eat a part of the pie and not to eat it in one go. |
| RRE1180 |
Today [Information Removed] announced a potential decrease in the amount of activity they would do in Western Canada if a royalty increase occurred. However, they are already decreasing the planned activity due to high labour costs. They are probably just using the royalties issue as an excuse for something they are going to do regardless of what the government does. I urge the government to follow through on the review panel's recommendations. |
| RRE1181 |
I believe that implementing all of the new royalty recommendations would be very good for Alberta, especially in the long-term. The oil & gas companies complaints are extremely exaggerated and expected. However, we must keep in mind that they do NOT own the resources. Everything I have read and researched so far leads me to believe that even with all the new royalties implemented, the oil & gas companies will still be paying our govenment less than in most other countries. Even in the United States, the royalties and taxes are higher than these proposed levels. So, it should still be a great place for the oil & gas companies to operate. I consider myself to be fortunate to be a long-time resident of Calgary, Alberta. However, I have seen what the latest boom has caused. The Alberta economy needs to slow down and catch its breath. Actually, it's not out of breath, it's having an Asthma Attack! We are way over due for a slow down in the cyclical oil & gas industry. We need to catch up on our infrastructure, roads, health care, education and other instututions, both at the provincial and municipal levels. Housing and inflation is WAY out of control and is unsustainable! All these issues will require government involvement and lots of money that the Alberta government may not have with the existing royalty and tax rates. I hope our new premier (Ed Stelmach) can stand up for Alberta this time, not for the Oil & Gas companies, and implement the Royalty Review recommendations for the greater good of all Albertans. Thank you for considering my opinion. [Information Removed] |
| RRE1182 |
I'm a resident of Fort McMurray, as you know our infrastructure is buckling under the growth pressures this community is experiencing due to unprecedented industrial activity, and it needs serious capital investment to upgrade and bring it inline with other Alberta cities. Yet oil & gas companies continue to point the finger at the Alberta government to fund infrastructure improvements and abdicate the responsibility they have to improve the infrastructure to accomodate the large population increases that have been a direct result of their activity. If they won't contribute the solving the problem on their own I feel it necessary for the government to increase the economic rent taken so that infrastructure upgrades can be funded. I do however have serious concerns with introducing someting so penalizing that it drives investment out of Alberta. Please strike the right balance. |
| RRE1183 |
I would fully support an increase in oil but not gas royalties to Alberta. The price of oil has increased substantially while corporate taxes have declined. Oil companies can handle this increase in their costs especially considering that demand for oil is not forecast to diminsh. The price of gas however, is low and gas companies are hurting. |
| RRE1184 |
thats just what we need to give the alberta gov-more money.they will profit again and the people that work in the oil patch will be the ones that suffer from the lack of work that will come because of this new tax(i hope the oil companys all get together and slow right down and then we'll see how all the banks and finance institutes feel when no one can pay there bills. |
| RRE1185 |
Let me tell you what teachers had stressed in highschool and also what the companies in Alberta have had problems with and will continue to have problems with. In the ending 3 years of my highschool education i was told that the government was forecasting that the lack of TRADESMAN in the oncoming years will get worse and worse as the years go on, because of the baby boomers retiring. As that was continuously told and hearing the CEO's of companies in Alberta even saying that the inflation of job wages is going up to attract more skilled labour to the province since there is such a demand for it and that the province still doesn't have the skilled labour man power to suffice the booming economy. If the Albertan government were to increase the royalties of energy produced by this province; it would be a devestating domino effect to not only the province of Alberta, but to the rest of canada. Let me list what would happen 1 people would lose their jobs 2 record number of EI claims 3 the number trades people of the future be severely decreased 4 alberta would be the most unpopular place to invest into 5 Canada's growth would be slowed tremendously 6 jobless people would end up sitting at home drinking or drugging themselves because there would be nothing else to do since there is no work ( think of [Information Removed]comment why he invests into sin stocks when there is no work for people) 7 the young families would struggle 8 and i'm sure suicide rate would spike in alberta 9 people would also default on mortgages and loans THERE IS MUCH MORE TO LIST BUT I'M SURE THIS WOULD CATCH YOUR ATTENTION the reason i moved to alberta was for my trade I am 25 years old and would turn me right off to voting (so many young people don't vote much as of now) because of the governments negative reputation for instance the amount of lying and decieving considering the example of the Federal's Mr. Flariety's annoucement of the Taxing of Income trusts which they said they would not do. so i must say Think of all the Bad that would come of the royalities increase. How would you feel if your relatives struggled to get by or your grand kids didn't have money to eat or by medicine they needed. I know you think that there would be positive infrastructure happening from all this, but what would you need infrastructure for if it was nothing but empty streets and hospital beds. i know the future second hospital in grande prairie would not be needed since this would be a total ghost town. I think that you should learn from the past and prevent any sort of recession. Recession is never good thing when you are depending on the a workforce of tomorrow to be able to create a self sustaining society. I mean when youre old and can't do it yourself whos gonna be there to do it for you I know I wouldn't be since I don't have the training or what if what you need isn't there. Here's a great idea how bout you give incentives to companies to invest in the infrastructure by giving them a more than fair tax break when providing money or donating services to communities of the province. Then both the govt. and companies win. I think I should also be recognized in some way for providing you with such insight on the problems that may come of this. Thank you for providing me the chance to advise the Alberta government, [Information Removed] |
| RRE1186 |
First, let me say that I am a member of the Alberta oil and gas industry and own a very small private oil and gas company. I think the panels recommendations should be considered very seriously. The Alberta economy is and has been overheated, to the extent that the cost of housing has gone through the roof and infrastrucuture has fallen far behind population growth. Many municipalities are struggling with these challenges, etc. I think that for the Alberta government to increase royalty rates to retain more value in the province's oil and gas reserves for the people of Alberta and thus also slow down the pace of oil sands development and general industry activity can only be good for Albertans in the long run. Do we really need to develop the oil sands completely asap and export all of that oil to the US, all within the next couple of decades??? Of course the industry is crying the blues over any reduction in their profit margins, but what else would you expect. I am actually a bit embarrassed to be part of the industry at the moment. They should step back a bit and try to look at the big picture! Sincerely, [Information Removed] |
| RRE1187 |
Mr. Premiere, Please consider a round table discussion/negotiation with the main stakeholders.....Industry, Government, & Albertans. I would also suggest that you identify a large portion any increase in royaltiy payments go directly to healthcare and education. Who can argue that more money, generated via the Provinces assets, go back into the Province to make sure our people are healthy and educated? |
| RRE1188 |
In such a booming and prosperious economy for the people of alberta to be worried with the threat of a ressesion directly createdb by our own goverment is crazy I work in the natural gas side and if my premire doesn;t scale this back 2 thirds Myself and thousands will loose there jobs in the west central alberta alone. these gas wells will not be economical to produce. The members of the panel have no idea of costs or what itvtakes to get this gas out of the ground. Keep our prosparity in alberta. |
| RRE1189 |
Hi, I just feel that making this kind of a decision shows our inability to learn from our past. I have noticed how excited our government has been to promote the oilfield in eastern provinces. Would our country as a whole not do better to nurish both? I fell like there are so many lives affeceted by this decision that we should have been part of this decision. I feel betrayed by my government and that is sad. Thank you |
| RRE1190 |
I urge you to look at the Royalty Review Panel Report with a fine tooth comb - you will find that it it does not paint a true picture of the current state of the oil and gas industry in Canada. Given the fact that our oil and gas basins are maturing, and expensive to produce, if the recommendations as stated in the report are accepted, it will have a devastating effect on the economy of Alberta. Not only will employees of oil and gas companies be affected, but all service companies and service providers will also be very negatively affected. Currently, there is a very marked slow down on the gas side of the business, and already service companies are feeling the negative impacts because of low gas prices. If the royalty is changed as the panel recommends, the entire industry will be severly impacted. I am old enough to remember the drastic impact of the slow economy in Alberta in the ealry 1980's, and would hate to go through that again. Please be realistic when reviewing the report and making changes to the existing royatly scheme. Best regards, [Information Removed] |
| RRE1191 |
I want to see a full implementation of the recommendations in the Royalty Review Panel. With regards to royalties collected on our behalf, this government has not been transparent with the people of Alberta whose interests they are supposed to represent. Time to step up to the plate and implement these recommendations. It is rather obvious in reading the comments and articles submitted by credible people, ie. anyone not connected with industry that we have missed out on literally 10's of billions of dollars. How else would you explain that Norway has a Heritage Trust Fund equivalent of over $300,000,000 while ours sits at a paltry $12 billion and has not grown while you have been in government. I also agree with the auditor general that the Government of Alberta has to be far more transparent about royalties in the future. |
| RRE1192 |
Adjusting royalties to the proposed regime will have the same impact that the NEP had in the 80's DO NOT DO IT! |
| RRE1193 |
It's about time that Albertans got back to getting their fair share of the resource business revenues generated by this province. Raising the ridiculously low royalties on oil and gas are only the first step in restoring the Alberta citizens's trust in the resources that they own. To think that even since 2000 it has been recommended by industry experts to raise our royalties and yet here we are in 2007 just starting to talk about it grieves me seriously. Our Heritage is at a measly 19 billion when it could be easily 200 billion plus. If the citizens of this province are expected to pay world prices for resources then the citizens had better be getting world level profits from their resources too. The next step is to reclaim the ownership of rest of the resources of the citizens of Alberta back into their hands to give Alberta the "advantage" that has been lost yet is still touted. Use the heritage fund to buy back our utility resource industries in telecommunications, oil, gas and electrical generation and let's get back to square one before our land was raided by King Ralph and the corporate knights. I am sick of of my province expecting the citizens to subsidize corporate profits. There is not a single reason why the citizens of this province should be paying one nickel in taxes, health care, user fees or any other burden inflicted upon us by own very own government. If the King of Saudi can pay everybody's salary in that country then what is wrong with our government and province? |
| RRE1194 |
[Information Removed]Calagary, Alberta Dear Mr. Premier, I am a geophysicist and have been exploring for oil and gas in Western Canada, the Canadian Arctic and East Coast, as well as international areas for over 30 years. I have have voted for the P. C. party in every election. I am currently working for a junior exploration company active in Northern Alberta. After reading the report prepared by the Royalty Review Panel, I have become very concerned about the impact the proposed royalty regime would have on conventional exploration in this province. Overall, the combative tone and sanctimonious rhetoric included in the report (reminiscent of the introduction of the National Energy Program) make me question the impartiality of the panel. The fact that they digressed so far from their mandate that they actually include instructions to you on how to organize your government, makes me question their judgment. The provincial government should be very cautious in implementing many of the recommendations included in this report however, from the point of view of the junior explorer, I have some specific concerns: • Although oil prices have spiked at the present time, gas prices have not. In fact the conventional exploration industry in this province is already under pressure due to low prices for natural gas. Statistics from the Daily Oil Bulletin, September 28, 2007, indicate that exploration drilling rig utilization is only at 42% for the first nine months of this year, compared to 65% for this time last year. Exploration drilling is actually at its lowest level since 1999. If exploration companies were truly making windfall profits due to over generous royalties, exploration should be increasing, not decreasing. • The statement that 87% of gas wells would pay less royalty and that this would be some kind of a boon to the industry is deliberately misleading. These low productivity wells account for only 6% of the volume of gas produced in the province [Information Removed], Calgary Herald Sept 27, 2007), and include a large number of older gas wells where production has tapered off at the end of their economic life. Lowering royalties on these wells, while raising them on new more productive wells would significantly discourage exploration for new higher productivity wells. • The chart comparing the current vs. proposed royalty regime published by the Dept of Energy indicates that in a nominal gas price environment of around $6.00 / mcf, gas wells would only be paying lower royalties if they were producing less then 150 mcf/day. Exploration companies are not looking for wells that produce less then150mcf/day, so again there is less incentive to explore. • The panel has based their recommended royalties strictly on well productivity, and has made no allowance for the higher risks and costs involved in finding and producing higher productivity wells. Clearly the conventional exploration business in this province is not experiencing the dramatic growth of the oil sands industry. In fact the reverse is true, and conventional exploration is declining, yet the Royalty Review Panel would add an additional burden on an already struggling industry. I urge you to carefully assess the recommendations made by this report and question the data and assumptions that led to those recommendations, before making decisions that would affect the livelihoods of so many people in this province. Regards, [Information Removed] P. Geoph |
| RRE1195 |
The royalties are fine now. Don't change them. |
| RRE1196 |
Hi all If you don't believe this will impact check stats now as drilling activity and oilfield construction are all but at a standstill awaiting the royalty decision. Look back at the early 80's ow things died from proposed tax sharing. [Information Removed]( oilfield consultant ) |
| RRE1197 |
The media's portrayal of the oil companies pulling their capital out of Alberta if the Royalty Panel's recommendations are adapted in their entirety is not a threat as the media takes great joy in pointing out. It is a reality that these companies will invest their capital in other places where they can do what's best for their share holders. Who wouldn't? Larger companies have a vast portfolio of projects from which executives choose where they will spend their capital. I have worked for a US company in Calgary, and competing for capital against projects in the US versus Canada with the strong Canadian dollar and our higher costs, is a non-starter. Projects here have to be wildly economic to complete, and the truth of the matter is that the Western Canadian Sedimentary Basin is a very mature, risky basin to do business in. I currently work for a large Canadian oil and gas company. They are expecting the worst, not wanting to commit dollars to an unstable, uneconomic regime and are currently laying down half of their rigs, as I write this. The budget for next year is being reworked, that is, prolific, exploratory gas wells in NW Alberta are getting shelved while shallow gas wells will still be drilled. Does no one realize that 5% of those prolific gas wells generate 43% of the gas produced in Alberta, which provide 63% of gas royalties and ,in turn, 40% of all royalties collected by the government??? By implementing the panels's recommendations on the gas side alone, the government's greater take will be on incredibly less production. Forget about an extra $2 billion, the panel thinks Albertans are entitled to, the $9 billion dollars that the province of Alberta seems to take for granted is going to be in jeopardy. As well, the company that I work for is shelving future oil sands projects, and will continue with conventional oil projects only if oil remains high. As far as the public's opinion goes, who wouldn't vote for more money, if given the choice?? How many of these people outside the industry actually have drilled a well or know how much it costs/the risk involved to drill a well? How many of them know what influence the strong Canadian dollar has on investment, the environmental concerns that will be addressed in the form of extra costs over the upcoming years? The question is not simply about raising royalties and getting more money, it's about taking the industry as a whole into consideration and what it really means to the Alberta economy if severe changes are adapted as suggested by the Review Panel. |
| RRE1198 |
I worked in the upstream oilpatch in Alberta [Information Removed] in a small oil and gas producer. From a financial perspective, the business is quite simple, like many others. The health of the oil and gas business is pretty much determined by only a few drivers - netbacks (price minus royalties minus operating costs, all per boe), so-called F&D costs (capital spent per boe to find and bring O&G into production), and access to investment capital (which requires acceptable returns and expectations of profit to attract). Assuming capital is available for investment, investment decisions are usually made on the basis of expected netbacks compared to expected F&D costs - if netbacks are not more than roughly 50% higher than risked F&D costs, investment will be curtailed because of inadequate returns. Netbacks are directly tied to royalties - the higher the royalties at a given price and operating cost, the lower the netback (and cash flow) from each produced boe. The Royalty Panel, from what I can glean, has considered primarily how Alberta's royalties compare to other juridisctions around the world when coming up with their recommendations. In my view, this approach is flawed because comparing royalty levels is only representative IF one also compares relative F&D costs in those same jurisdictions. There is irrefutable evidence that Western Canada (including Alberta) is the HIGHEST COST (F&D cost) petroleum basin in the world. This means that, to be fair in any comparison, Western Canada must have a proportionately higher netback than other jurisdictions in order to remain competitive when it comes to attracting investment capital. I've heard a lot of comments from uninformed people saying that "Big Oil is just bluffing and would never reduce capital spending if the royalty changes go ahead". This sort of comment is nuts. All O&G companies will be putting themselves out of business very quickly if investment returns are not attractive enough and, with higher royalties, this is sure to make netbacks (and investment returns) less attractive. If "Big Oil" doesn't spend in Alberta, it may/may not find other places to invest - but even if it can't find anywhere else to invest, it will not spend capital in projects that don't create acceptable returns. These companies will find other ways to use their cash flow and capital if investment returns are poor, such as buying back their own shares or increasing dividends to their shareholders - this makes more sense by far than spending their capital on inferior (economically) projects in Alberta or elsewhere. My advice to the Alberta government is to tread VERY CAREFULLY when you decide what should be done with royalties. On the natural gas side of the business, low prices (and netbacks) and high costs (both capital and operaing) in Alberta have already made this business very economically "challenging" over the past year. To jack-up royalties will make the natural gas business suffer even more, reducing spending, hurting the drilling and service industry, land sale prices and other payments to landowners and other rural Albertans in the natural gas producing areas of the province. What I see and hear in the papers when reading that the majority of Albertans want the government to implement the royalty changes as proposed by the Panel is two things - (1) uninformed reaction and (2) revenge (getting even) with those wealthy oil guys in Calgary. It's the same attitude that I saw for the past several years in dealing with rural landowners impacted by O&G development who were, in many case, so adament about getting "their pound of flesh" out of the "wealthy" oil companies - I saw this repeatedly over many years on many projects. These same landowners presently get over $0.75 billion per year in payments from the "wealthy" oil companies - that's a pretty good take. So few people in this province who work outside of the oil patch seemingly understand that their own jobs and financial well being are almost certainly tied in some way (perhaps very closely) to the health of the O&G sector - merchants, service providers, hoteliers, construction workers, etc. If you impair the O&G sector, the potential for huge periferral damage is significant. Wouldn't it be indeed ironic if Albertans were the ones to inflict the equivalent of the NEP on its own people!! Think about it - and be very, very careful in what you choose to do. I don't envy you because the average voter is saying "sock it to them", but you have the responsibility to see beyond the voter and do what's best for the province. You might get re-elected easily, but you'll be governing a province that is quite a different place (no where near as prosperous) than it is today. Good luck. |
| RRE1199 |
To whom it may concern: As a long time Albertan and voter, I have never seen such unprecedented growth in the province. I am impressed at such a good job that our provincial government has done to turn the our province around from the low during the 1980s to now, the only province without debts. As such, I believe that our present economic condition is due to the friendly atmosphere for oil and gas company to conduct business. With the new recommendation by the Alberta Royalty Review Panel, I believe that it will cause a MASSIVE ripple effect to the industry and put a strain on what we Albertan have enjoyed over the years. The oil prices may have climbed but so has the labour cost. What really matters is the bottomline net number at the end. This will make future oil sand projects already on the book be cancelled or postponed indefinitely which will cause dramatic impact on our prosperous economy. As the only province without debts, I failed to see why the goverment would want more money... |
| RRE1200 |
If Alberta implements the proposed changes, I believe it will have a drastic effect to our already prosperous economy. I work for an Oil and Gas company and over the past year we have already felt the effects of low gas prices and high costs to drill. By increasing royalties it only makes it that much harder for us to meet the economics. Alberta is already cash rich and the envy of the other Provinces. I could not believe when I heard that now the Province wants even more!! I think an increase in royalties will cause many companies to cut back their capital programs in Alberta. This would be a huge ripple effect to the economy, drillers and service companies won't be able to maintain staff at their current level, employees of oil and gas companies will be layed off, all these people spend money in Alberta and that type of spending will cease to happen. Not only that, there will be fewer dollars spent at Land Sales thus further reducing Alberta's revenue take. I urge the Alberta Government to do the right thing and not ruin an already awesome Province to live and work in. |
| RRE1201 |
I think the review commitee's report should be followed with action by raising royalties 20% or more |
| RRE1202 |
Royalties are a thing of the past, ok 30 years ago not now. I would suggest that we increase royalties a nominal 5% right now and start a new committee to re-do in total a complete review and solution to the whole structure to make it fair and suitable for all. Oil companies are the cause of a lot of their own problems and the taxpayer should not have to subsidize them. |
| RRE1203 |
"You can't collect royalties on wells that are not drilled" This was well put by Jim Buckee. If Alberta Royalties are put in place it will greatly damage our economy. |
| RRE1204 |
Alberta's natural resources are the property of Albertans, not of the companies that exploit those resources. While the companies are threatening to pull investment out of the province now, there are few real options for these companies to go. Please follow the report's recommendations. Government is for the people, not the corporations. |
| RRE1205 |
20% is much too high and I believe there will be more harm done by this than good. I can see perhaps an incremental structure - taxation based on revenue levels much like personal tax, and yearly increases of 3-5% max. per year depending upon economic conditions in any given year. Further the Federal trust tax fiasco of last Oct. has already shocked many US investors; a 20% royalty change at this point for AB oil/gas companies will further damage the ability of Canada to attract foreign investment from the USA. |
| RRE1206 |
I am writing this letter to share with you my concerns with the proposed changes to the Alberta Royalty Structure. I’m not in the habit of complaining about proposed policy changes, this is the first time I’ve written a letter to a government representative. I admit up front that I don’t know all of the ins and outs of the proposed changes but have already read what the oil companies are proposing to do if the changes take place and that scares me tremendously. Note the article in the paper about Encana potentially slashing $1B out of their 2008 budget. I’m a young guy in my early 30’s born and raised in Northern Alberta and from a family that has always supported the PC party (I also voted for Ed in the last election). I’m married to a wonderful hard working woman who is in an RN in one of the Northern Alberta hospitals; we also have two young boys, one who just turned two and the other is 3 months old. I attended some post secondary education at the [Information Removed] and ever since the age of 21 I have been employed in the oil patch. The oil patch is all that I really know and it has done me very well over the years. I am somewhat of a high wage earner and between my wife and I, we pay close to $[Information Removed]/ year in income tax with a portion of that going to Alberta. Keep that number firmly in mind because that is one family’s contribution and about 75% of that comes from my job in the oil patch. I would not make that kind of money working a 9 to 5 job at home and as a result would not be paying the type of tax I do or buying the goods we buy. With the oil patch boom over the last couple of years I’ve been afforded the luxury to recruit new talent to work in this industry. I alone have hired 5 mechanics from the [Information Removed]area, 3 Railway workers from [Information Removed] and re-trained all 8 guys in a new career. I know this may seem small in the scheme of things but it created openings in those towns for 8 new people to get good jobs and it gave these 8 guys a new career with higher earning potential. All of that income comes directly back to the community and all of these families are paying tax and voting in elections. My point is to encourage you to please give this a lot of thought before making any decisions. Seek the input of industry, companies like the one I work for are well run businesses with some of the smartest analysts in the game – they also appear to be willing to adopt some changes. Work with them to strike a balance so that both parties (the government and the oil companies) continue to strive. Last but not least, please take a drive and look around your communities and imagine an Alberta without the oil companies, if your looking for the tax money to come out of forestry or agriculture we’ll be a 3rd world province before you know it. Finally, ask yourself how well a lot of other government decisions that did not seek the input from industry have worked. Examples that come to my mind are the de-regulation of electricity and the firearms registry. Once again, please give this your full attention and do the right thing for me and my family and the thousands of other families that rely on this industry. I hope you can clearly see the importance of this issue to many families just like mine and I Thank-You for your time and consideration. |
| RRE1207 |
With regards to conventional oil and gas,Alberta is already one of the most highest cost drilling and completion cost environments in the world. The propose royalties will only result in exploration capital being channelled to other countries. Pertaining to the oilsands, a lot of capital has been spent and is in the planning stages. It is unfair to change the rules in the middle of the game. However that being said, there could be a better mechanism, whereby the royalies are index to oil prices. As the oil price increase the royalies increase. Just be prepared to share the down in a $25 oil environment. If the propose changes are implemented, you will have put the final nail in the Alberta Advantage. I will tear up my Conservative Membership, and never vote again for the Conservatives. |
| RRE1208 |
its time they pay there fair share,they should have been paying long ago. |
| RRE1209 |
My name is [Information Removed]and I have been a proud, hard-working Albertan for just over 10 years. I live in southeast Calgary. Rather than focus on the technical justification of the proposed royalty regime changes – which are significantly flawed, though I’m sure you have received much correspondence on – I would like to give you one example of their impact. Where “the rubber hits the road” for me, as it were. I moved to this province 10 years ago from British Columbia with a pregnant wife and no savings to speak of. One of the things that attracted me to Alberta from then NDP-controlled B.C. was the opportunities afforded by a business-friendly government. I am a chartered accountant and have worked very hard over the past number of years, making many personal sacrifices, saving as much money as I could along the way. Last December, myself and four other individuals I met while working as an accountant in the oil and gas industry, invested the majority of our life savings to start our own natural gas exploration company. We also raised money from family and friends and some outside investors. We did this in the face of low natural gas prices, very high costs and reduced exit opportunities in light of the federal government’s income trust tax changes of last October. The economics were challenging, but we were confident in our technical team’s abilities to prospect for natural gas. Make no mistake, we are explorers. We drill deep, expensive wells, hoping for high productivity results. With all of the money we have raised, and providing some budget to buy land at crown land sales, we can drill four or five wells. Our first well was dry. Our second well, at a cost of $1.65 million (our half of a $3.3 million well), looks like it will produce. It is guys like us, drilling deeper, higher productivity wells that are the hardest hit by these proposed royalty changes. Our economics are already extremely challenging in light of low natural gas prices, high costs and significant drilling risk in this mature basin. We have taken a huge personal risk, as have our stakeholders, and these proposed royalty changes, to my mind, shift the risk/reward balance such that it’s just not worth it. If these royalty changes were proposed last December, when we were putting our little company together, I would not have “taken the plunge”. I am frustrated by the populist politics of these proposals. Albertans already enjoy great benefits from the oil and gas industry; no provincial sales tax, low provincial income tax, no provincial debt, surplus provincial budgets. The majority of Albertans who support the proposed changes are, I suspect, not directly involved in the oil and gas business. My impression is that they assume people in this business are multi-millionaire, Mercedes-driving executives; and that’s just not the case. We are hard working Albertans like them. I don’t believe they appreciate that we put significant capital at risk, our own money, to try and build value and wealth that all Albertans benefit from. Yours truly, [Information Removed] |
| RRE1210 |
Leave the royalty structure alone. |
| RRE1211 |
I have a deep concern that the attempt to grab more royalties from the petroleum industries will put us into a tail spin like the Trudeau errors of the late 70' and early 80's. It may satisfy the shot term wants to put more into the Alberta coffers but it would put not only the province but the country future well being at risk. |
| RRE1212 |
Please increase royalities and ensure there is proper collection for oil royalities. To be fair natural gas royalities should not be increased as much. This is our opprotunity to have funds and labour to manage growth. I firmly disagree that there will be an economic downturn if we significantly increase roaylities. |
| RRE1213 |
Our lives will be definitely affected negatively if the Crown implemens the recommendations of the Royalty Review Panel as they are. I really wish the Panel has taken right basis and costs when they came up with the recomnmedtations. I strogly believe that Crown will evaluate the recommentations carefully to make decisions suitable to both industries and Albertans. Hope our honorabble premier will make a sound decision based on, cost, risk and long term impact on the economy. [Information Removed] |
| RRE1214 |
As a citizen of this great province of Alberta I am against the proposed changes to the Alberta Royalties. The effect would be catastrophic. [Information Removed] |
| RRE1215 |
Has the province ever heard of "baby steps" This is way too drastic !! They will destroy the economy.......Don't you dare !!! I will be coming to Ed's house when i'm homeless........ |
| RRE1216 |
Can you imagine?? Encana wrote a half page letter in our local journal, The Smoky River Express!! You know that times are tough when...I qualify the article as outright bullying of the big guy against the little guy. Albertans are not blind nor are they stupid. They see who has been getting the fat bonuses. Certainly, not the little guy. So what if some oil companies have to pull out and the economy slows somewhat? They are the ones who have ensured that prices have become inflated, ie, a hospital pegged to be built in Calgary was 500 million now will cost over a billion. If prices were not so overinflated, we would'nt have this problem. Oil companies, bottom line, are not philantropists; their interest is PROFIT. Profit they have for a long time from all kinds of breaks. They are Albertans, they say. Well, it is high time that they act like it and pay the fair share they have been evading all these years so that the money they owe can go to eliminating school fees in public schools, so that we can end child poverty, so that my mother has an affordable place to live in as a senior, so that we can invest in educating enough nurses and the list goes on. This royalties issue will no doubt determine the next election but first and foremost, it is a social justice issue. Why should we little Albertans have to pay for the big guys?? Share the pie equally. I think we all learned that early on in kindergarten!! I hope Mr. Stelmach and his cabinet remember this simple rule when it comes down to the crunch... |
| RRE1217 |
Dear Mr. Stelmach This is to let you know that my wife, [Information Removed], and I have read and discussed the report "Our Fair Share" on the matter of royalties and concur that the report should be adopted with all of its recommendations. We feel that the committee led by Mr. Bill Hunter had done an admirable job and have presented what we could say is already a compromise. Perhaps the royalties could be higher, but we think that the committee has struck a fair balance. Just like in the early 70"s, "Big Oil" is screaming blue murder. Let them scream. They have the best conditions in the world to make billions of dollars over the next 50-100 years. On another matter but related to royalties, how is it that Mr Greg Melchin and Mel Knight can get away with being derelict in their duties as far as collecting royalties over the last three years and get away so scott freee? That is not our understanding of what accountability means. How can you allow that to happen under your watch, Mr. Stelmach? [Information Removed] |
| RRE1218 |
Higher royalty rates are required to slow down the economy and control the inflation in alberta! We become poorer because everything goes up! |
| RRE1219 |
The Oil Sands Severance Tax does not take into account oil price rising due to weakening American dollar, inflation or external conflicts in the middle east. This tax is defacto expropriation of any oil sands company as time goes on. In the end it means government (Alberta) will take over the oil sands. Taking taxes and not allowing cost of production to be deducted first is inane; much like defying gravity. Expecting to take taxes from an ever increasing cost per barrel of oil without condidering other factors will destroy oil sands projects that are now being considered. Again you are defying financial gravity. |
| RRE1220 |
I can not believe this!!!! This is going to have a negative spinoff touching many different industries beside the oil and gas industry, like travel and tourism, the many business inside the oil centres in calgary. People would rather have their jobs than allowing the government to decide who gets "x" amount of money for funding. Wake up and smell how much Alberta needs things the way they are!!!!!!!!!!!!!!!!!!!!!! |
| RRE1221 |
Think the report is a step in the right direction, despite increase in production, increase in price of product the revenues generated are expected to go down, this does not make sense. The oil/gas below our surface belongs to all Albertans, not the companies that are extracting the product. So yes the oil and gas companies should make a profit but it is time that the province recognizes this is a non-renewable resource and plan for the future of all Albertans when this resource is depleted. The increase in royalty payments is the first step in this direction, use the royalties to help offset the higher costs of home ownership, homeless persons, provide more funding to the post secondary institutions so that students can afford to go to school, and not be saddled with huge student loan payments when they graduate. |
| RRE1222 |
To Whom It May Concern: In my opinion, the results of the ARRP report did not fully consider all of the added costs that the oil and gas industry incurs in developing and operating oil and gas facilities. I absolutely believe that the tax and royalty recommendations of the panel, if implemented, will negativiely impact both financial investment in the Canadian Oil and Gas industry, and the current economic climate of Alberta. I do not believe the global investment community will accept the implementation of the ARRP without further discounting the expected returns, which will put the Canadian Oil and Gas Sector in one of the lowest returns available. The result I expect is that the global investment will go elsewhere, into other commodities and regions that provide a better return. As minor investors, each of us are looking for a minimum return in our stock, mutual fund or savings portfolios which make up our pension funding. Putting the money in the government of Alberta's hands does not provide any value to nationally or internationally managed pension portfolios. To me, this report came across as a "greedy grab", because of the current situation Alberta enjoys economically. Why can't a good thing just be a good thing? |
| RRE1223 |
We agree with the "Royalty Review Final Report". We think this impartial review of the royalty system is long overdue. We also note that the report indicates that the implementation of its recommendations will slow down the boom. We consider this an advantage as we think this extreme boom has caused hardship to many Albertans. We hope the new Stelmach government has the courage to adopt these recommendations |
| RRE1224 |
I understand from the media and some independent reports by banks that the negative impact of implementing the recommendations of the royalty review panel may be greater than anticipated in the panel's report. My livelihood and that of my partner are dependent on my ability to find work. My contract with an oil and gas company was recently extended three months, rather than being taken on permanently. I believe that if the royalty review panel's recommendations are fully implemented, I may not have a job in February, which will put me and my family in a tenuous position. I ask that you consider the independent reviews from banks and other institutions that followed the review panel's report and the impact that implementation will have on my family and me. Thank you. |
| RRE1225 |
I have just reviewed the ciriculum vitae for the members of the panel. they all appear to be well versed and capable of making a well rounded decision. I support their decision as released. One has to wonder why the current nay sayers did not present their doom and gloom predictions to the panel when they were travelling the province. The current "boom" is not really helping most middle class Albertans. in fact, it is making life more difficult for folks on fixed incomes. I support increasing royalties and ensuring the incremental revenues be used to help real Albertans. Here is yet another opportunity to eliminate health care premiums and diversify the economy. I do urge the government to show due diligence in this matter. There is no need to rush into an early decision. Make sure you take all the time you need to get it right. I am sure we can reach some kind of common ground here. Remember, the CEOs of big oil have no choice but to come out blazing against this measure. Their only obligation is to their shareholders. For them to indicate they are willing to decrease the bottom line would likely be a career ending move. They are also hugely influenced by their personal performance bonuses. Dont kill the golden goose, but do ensure the real owners of the resourse are fairly compensated in REAL terms. Please do not assume a "trickle down" factor will make life better for all Albertans. [Information Removed] |
| RRE1226 |
As a financial analyst in the oil and gas sector, I firmly believe that the recommendations put forth from the report are seriously detrimental to the oil and gas industry, and in effect, all Albertans. It is short-sighted and baseless to assume that a higher royalty to the Government of Alberta is directly beneficial to Albertans. The consequencial decreased economic metrics faced by the oil and gas producers will result in some wells becoming uneconomic to drill: this will negatively impact the amount of oil and gas activity, overall production, drilling, and a general slowdown in all oil and gas activities (and, as a result, the provincial economy as a whole). This is NOT in the best interest of Albertans. Alberta is and has been a very good place to do business in oil and gas because of the stable fiscal regime we have had historically, which attracts investments in oil and gas projects. This goes against that, with dire consequences. Royalties should not be raised. I am an Albertan. But I can see past the political agenda and see the big picture, and how the seemingly better deal for the Province and its people, is NOT. This will hurt all of us dearly. We have become very prosperous and successful as a Province under the old royalty regime. This drastic increase is uncalled for, detrimental and should not be enacted. Sincerely, [Information Removed] |
| RRE1227 |
I am the president of a small oil and gas company and do not support the recommendations of the panel. I believe that if implemented, the recommendations would decrease the potential return on the investments I have made in the Alberta oil and gas industry to the point where I will not invest further and will try to maximize the returns on what I currently own and get out. There may be ways to increase the royalty take, but the recommendations will have too great of an impact on the profitable wells and take away the incentive I have to invest in a business as risky as this. Various reports have come out analyzing the potential impact on O&G companies- some will be minimally impacted, some will be greatly impacted. The greatest impact is on the small cap producer who depends on high rate wells to generate substantial returns to subsidize marginal economics of the "median" well results. Substantially increasing the royalty on the high rate wells will mean that for many companies, including mine, the risk will be too high for the potential reward, and exploration drilling will be decreased. This will lead to further deterioration of an already reduced activity level which will have a tremendous impact on the provincial economy as well as government revenues for land sales, taxes and royalties. Encana today announced that if the proposals are brought into effect, it may take as much as $1billion out of their proposed spending in Alberta. Announcements like these indicate the potential damage that could occur. Furthermore, enacting the changes retroactively, as proposed, will not only be a potential breech of contract, but will also be a very bad sign to the investment community and make Alberta a less desirable place to invest for years to come. Finally, if not already obvious, as appears to be the case in many people's eyes, this is not just a Calgary / Big Oil problem. Even though I live in Calgary, most of the money my company spends is in places like Edson, Nisku, Red Deer, etc. If activity levels drop further, it will be people in those places that will lose their jobs as well as people in Calgary. The government needs to review the recommendations carefully and decide if they want to sacrifice the economy of the province as well as land revenues and ultimately royalty revenues for the sake of potential short term gain and the appearance of standing up to the big, rich oil industry. [Information Removed] |
| RRE1228 |
I am 1 of the 6+ Albertans that work in the oilpatch. For any company to get hit with a 20+% increase in expenses would be hard pressed to absorb it overnight. Any company, and not only mine that pays my paycheck, needs time to plan and budget for expenditures and growth. It would also only be logical that the Alberta Government, who receives part of my taxes, needs time to plan their actions realistically. We do not need another Energy Crisis created this time by the provincial government, sending our jobs and investments to another province or country. Secondly, I as an Albertan, will I receive my share of this proposed increased Royalty in the form of better infrastructure, medical or educational facitlities or even another rebate cheque (thankyou Ralph)? Maybe Ottawa has their hands out too? Don't be too hasty in enforcing this new legislation. There may be more to loose than to gain. Consider ALL the options first. I like living in Alberta and would like to work here for a few more years. |
| RRE1229 |
I am a dairy farmer in the Gibbons area and strong supporter of the Tory party in this provence. I recognize the importance of being able to do business at a profit, but the importance of the issue is resonable profit. |
| RRE1230 |
I object to the proposed 100% increase in royalty taxes for freehold gas and oil properties owned by individuals. I receive a share of royalty income from a gas well as a surface rights owner . The royalty income is calculated using the net revenue after deducting processing costs and the royalty taxes. In addition I must pay personal taxes on the royalty income with out any of the exemptions oil and gas companies claim. I consider the 100% tax incease and the taxation of freehold royalty income twice as unfair. |
| RRE1231 |
I disagree with the recommendations in the Sept 18 Alberta Royalty Review Panel Report. Rather than accept the recommendations in mid October, I feel the Alberta government should take more time to review the data and consider the short and long term impacts to overall economy and citizens of both this province and the country as a whole. We do not need to repeat the devastation that occurred following implementation of the National Energy Program. Any legislation that discourages investment in our bread and butter industry cannot be good. [Information Removed] |
| RRE1232 |
I think the report was incorrect in its assumptions, did not take into account the risk that the industry incurs, the full amount of taxes and spin-off benefits enjoyed by the Province and its people, nor the reality of the Industry's rising expenses and the mixed commodity price picture. Implementation in part was opposed by the Panel, and inplemention in total will irreparably damage the industry that Alberta relies on AND ruin Alberta's reputation of being a good place to do business. Regrettably, the title of the Panel Report and the mandate have already foolishly tarnished Alberta's international reputation. Before, Alberta was considered the preferred place to do business. Now, the Panel themselves took the opportunity to point out the fact that the proposals won't make Alberta as bad as Venezuela. Now isn't that just peachy? Not only upset industry people and investors, but the Panel themselves see the similarity between Alberta and Venezuela. Talk about shooting yourself in the foot. Investors are already studying companies to find out which are least exposed to Albertan rapaciousness. Please start over and "study the Royalty Regime", don't start off with the premise of seeing how much more in tax you can collect. |
| RRE1233 |
We are getting ripped off, make it fair. |
| RRE1234 |
I am against the proposed new royalty rates. I work for an oil and gas company and have seen first hand the spin off effects that this type of work has. When I go to the field, I pay for an airline ticket to get there, rent a car at the airport, buy gas, spend money in restaurants and stay in hotels. If the royalty rates increase, oil and gas investment in the province will go down and all these other industries will see a decrease in profits. The Alberta government should not change the royalty structure without realizing it will mean a significant downturn in our economy. It will end up penalizing average Albertans - not oil and gas companies. They will just go elsewhere to make money. |
| RRE1235 |
I certainly hope that the Alberta Tory Government finally realizes that they can't "hide" the outcome of the reviews. It is my hope that the government will finally step up and do the right thing. The big oil and gas companies need to realize that the resources DO NOT BELONG TO THEM, and they need to ensure that the people of Alberta get their fair share. I am an Albertan, and I am embarrassed by the lack of funding for the necessities to enhance and ensure the quality of life that Albertans deserve. An example is that the treatment of dependent individuals--across the lifespan (and those who devote their lives to caring for them) is second rate, under-funded and often inaccessible in a provice with the resources to provide excellent care. There is a need to realize that the resources afforded to the province through our fair share of the royalties would go a very long way to support our "world class" health care and education systems (not to mention infrastructure needs). There needs to be the recognition that Alberta deserves enhanced quality of life for everyone, not just the oil executives. When I hear that individuals working in the oil and gas sector (administrative positions) receive bonuses in the +100,000 range annually I am outraged!! Yet hospitals can't meet staffing needs, and family physicians can't affort to work in our large cities... I also saddened by the lack of support for 'working poor". It is my hope that the Premier and the current government step up to the plate and do what is right, and stop with this lining the pockets of the oil and gas industry to the detriment of the "regular Albertans." Let's work to keep the money in our province, rather than sending it to shareholders and others in the US and elsewhere!!! Stand up and be a proud Albertan!!! Don't be a puppet for big business, and DO WHAT IS RIGHT!!! |
| RRE1236 |
As an Albertan I am deeply concerned about the impacts to the Alberta Economy and the people of Alberta if the recommendations of the Royalty Review Panel are adopted. The report is flawed in that it does not use up to date costs and it analyzes government take with a very narrow interpretation rather than looking at rate of return for industry which is what drives our investment decisions. I run a small private company based in Calgary and our estimates are that we will have to reduce spending by 46% or $38 million in 2008 in order to stay within our bank lines. This will result in $7 million less being paid to the crown at land sales and $30 million less being spent on field operations which will result in significant job losses within the rural areas of Alberta. We tend to have deeper, more expensive and higher productivity wells than average so our results may be more dramatic than some but there are a huge number of small producers in the Province that will have a similar impact. This is very hard to take on top of the loss of ARTC last year and makes running a small company even more difficult. Please do not adopt these recommendations. The government does need to study ways of optimizing royalties and some changes are justified but this needs to be balanced with a strong Alberta economy. |
| RRE1237 |
RAISE ROYALTIES 20%!!! |
| RRE1238 |
Impement the findings /recommendationsof the report in full. We are the owners of the resource and we want a fair deal. Any set back from the report take our share from middle/low back to low.That not what Albertans want or need.I have worked all my career in the oilpatch and know the excesses that are happening on the resource owners dollar.And the argument that it will slow down development --hurray!!! |
| RRE1239 |
I feel the report is misleading as doesn't take into effect all the cons towards making business in oil and gas in Alberta more expensive. Alberta will weaken its competitve advantage over other oil and gas markets if it decides to increase royalty rates. Increased rates will make other provinces, territories, and countries look more attractive for investment. When you weigh political risk and return on investment, you will see a negative effect on the Alberta industry. Activity levels will decrease, so will output, and all that means a drive up in gas prices for Albertans due to low storage volumes. So why would I want to pay more up front in natural gas pricing so that we can save some more pennies for a rainy day from the Heritage Fund? Why would I want to drive out the same business that built this province almost single-handedly? The Stelmach government will be making the biggest mistake of its existence if it implements this rate increase. If you thought the Liberals committed political suicide with the National Energy Program...Premier Stelmach has no clue about the negative cyclical effect implementing any of these recommendations will have. And he shouldn't want to find out. |
| RRE1240 |
Throw this fuzzyheaded piece of socialistic garbage in the trash. you want to wake up with no jobs, real estate and stocks -no bid -you are headed there |
| RRE1241 |
Please consider the economics of doing business in the oil industry (and I mean current costs as they have risen dramatically in the last 2 years). I can assure you that many of the projects being developed, particularly in gas, are of marginal econimics. As a geologist working in the industry, I can assure you that many projects currently being explored for or developed will stop in thier tracks with the changes being put forward by the panel. Foothills and Deep Gas projects would greatly decrease without the deep gas drilling incentives. Layoffs started in the service industry in the last few months due to decreased activity due to lower gas prices as well as the change in royalty trust status of many companies involved with gas exploration. I can tell you that many of those in the service industry as well as those of us working in Calgary are very concerned about their jobs if all of these recommendations are implemented. This is real. In our jobs, we deal with economic evaluations every day. Quite simply, there will not be an investment in new projects if a profit better than a bank account can't be made. I urge you to consider carefully a compromise between the panel's recommendations and the realities of the economics of doing business. in the oilpatch. Otherwise, not only will the $2 billion dollars in additional royalties not materialize, but the current royalties, not to mention land bonuses, will actually greatly decrease. A higher percentage of nothing is still nothing. Sincerely, [Information Removed], Oilpatch employee and Citizen of Alberta |
| RRE1242 |
As someone who has worked many years in the oilpatch I have had a bird's eye view of the big machine at work. Do not be intimidated by the spin doctors who would have Albertans believe that the province will fall apart if oil companies can only make billions instead of squillions by paying their dues to the people of Alberta. Do not also be goaded into believing that they have any concern for the people of Alberta. If they are so concerned for the people of Alberta the top 10 oil companies would not continually gobble up the mid-sized companies they deemed to be a threat to their huge bottom line. If they were truly concerned for the people of Alberta we would not be gouged and manipulated at the retail level. If they were truly concerned for the people of Alberta they would not establish unachievable financial goals each year in which employees are guaranteed to never acquire a bonus while top executives somehow manage to qualify. Why are oil companies the only companies in Canada who continually think they can get away with threatening and bullying the government and people of this province. I know for a fact that oil companies routinely violate regulations and laugh at the regulators saying "do you honestly think they will shut us down?" And they are right, no matter how flagrant the violation oil comanies are never shut down. The infractions should be made public as most are public companies. If there is any downturn in the oilpatch it is because it is part of the business. Every industry has cycles and the oilpatch is no different. Last year major oil companies cut back on software purchasing expenses due to oilsands expenses.Software purchasing is on a five-year cycle. When 9-11 hit, we were led to believe that the decline in software sales were due to 9-11 which was emphatically not true, it was instead the beginning of the 5-year cycle. Companies being bought and sold related to the oilpatch is a regular occurrence. One thing that is true in this province is that the major players whether they be oilpatch related software or oilpatch companies do not want any mid-size players that could impact their bottom lines. The oilpatch has ruled the roost to our detriment. They are leaders in promoting greed, environmental devastation and monopoly. The most important thing we have lost in the wake of this greed is our ability to care for our families, our community and our environment. Making enough is no longer enough, it must be millions or billions. It is time to recapture our values. By standing up to the oil companies we will reclaim our province from the few greedy individuals who do represent the bulk of Alberta's population. Let's starting spreading the wealth around instead of filling the wallets of the few who head these companies many of which are not Canadian citizens. At the very least the royalties will pay to clean up the environmental they have so damaged for many years whose impact will be seen for many more. |
| RRE1243 |
I do not agree with a royalty hike. Why mess with a good thing. Afterall we are talking about heavy oil and that takes a lot of investing to get were we are now. All Albertans are already sharing the profits of these investements. I would like us to make sure we keep the bussiness environment in this province the way it is to attract investing companies to our province and keep the standard of living we have now and most of all 'no dept'. |
| RRE1244 |
If the government raises the royality tax it better be prepared to increase social programs suck as shelters etc because the job losses will be huge. Maybe they can take the money for that from the RETENTION BONUSES that are being planned for gov't managers. |
| RRE1245 |
Please don't [Expletive] up the Alberta economy with sudden changes the oil and gas royalties which will reduce exploration activity in the province of Alberta. The Government needs to fully understand the short, medium and long-term ramifications of a sudden change in the profitability related to oil and gas exploration in Alberta for the companies involved. Much of the economic base of Alberta is indirectly supported by the small and medium sized companies directed by entrepreneurs who are taking extreme risk in their daily operations. These people can instantaneously decide that it's not worthwhile to be involved in the Alberta energy industry. Major companies will not take up the slack left by these entrepreneurs who decide that they might as well just retire, because major companies are too beurocratic and expensive to operate in the marginal areas where the small and medium sized companies are operating. Comparison of the royalties being extracted by a state like California is not valid toward the situation in Alberta. California has an economy the size of all of Canada and is not dependent on the oil/gas industry... it is a net importer. The data in your report are not tempered by relevant analogues to Alberta's economy.... the data are misleading and there is no proper analysis or summary. It seems that the review panel is ram-roding their opinion through in the report by using the slogan "Fair-share" repeatedly, as though to appeal to the un-informed masses. What is fair is completely dependent on the environment in which it is applied. Will it be fair to drag the Alberta economy down to the level where people lose their life-savings?... that is what will happen if there is a sudden increase in oil and gas royalties. If the oil/gas industry has a long adjustment period to operating under a new royalty regime, the economic fall-out will be severe, hitting the housing industry, people's life-savings in real estate markets and energy stocks, not to mention the job-market... people will evacuate this province.(like 1982!!) Any plan for increasing royalties should be amortized over a long period with small changes per year. I'm not convinced that the extra revenue would go toward any reasonable program of advantage to the people of Alberta anyway.... if the $400 cheque to each person in Alberta is any indication of the type of political manipulating that the Alberta Government is engaged in for re-election purposes. These monies should have been applied to the Education system in Alberta which is sorely lacking and under-funded. Please don't [Expletive] up the Alberta economy with sudden changes the oil and gas royalties which will reduce exploration activity in the province of Alberta. Thanks and Regards [Information Removed] |
| RRE1246 |
Albertans are asking for a fair share of our own natural resources. Have we been getting our fair share, the royalty report clearly says no. I am confident Premier Stelmach will take a balanced approach to achieving a better deal for Albertans while leaving an incentive for the oil industry to continue to develop our resources. The industry would have us believe a dark cloud will decend on us if there are changes to the royalty scheme. What position would we expect them to take? A slow down was already in place and will likely continue irregardless if royalties are increased. The economy has been growing at an incredible pace for several years. It is time for things to slow down and if an increase in royalties is part of the slow down, so be it. We have a lot of catch up to do. We owe it to our children and our grandchildren.. |
| RRE1247 |
Good Morning, I am concern with the changes in the royal scheme. I hope that government makes changes on royalties taking in consideration the needs of our communities (Fort Mc Murray), and the development of the oil sands industry. Excessive royalties could affect the execution of oil sands projects and many families and communities will be affected if those projects are not economically viable. I suggest a flexible roylaty scheme based on types of crude oil and market oil prices. If conditions change, the roylaty increase or decrease according to the case. Thanks, |
| RRE1248 |
I feel that is this review panel have not considered the impacts nor have the correct information for providing Albertans a accurate report. If implemented by the Alberta gov't we we will lose even more revenue when there will be fewer people in the work force! I also feel that the review panel consists of unqualified Albertans to make such recomenations for our people. Listen to the people in the industry and work together on a real solution. |
| RRE1249 |
Alberta Royalty Review Panel Report Given the rapid rise in commodity prices, I appreciate the interest in reviewing the government's fiscal terms with the energy industry. However, any change should only be implemented carefully and after a collaborative, in-depth consultations process, similar to how the fiscal terms were created for the oilsands a decade ago. I believe the panel's report was narrow in vision and has over-looked many of the impacts of their proposed changes. My fear is that we stall investment which is the key driver of our prosperity and the Alberta Advantage. Projects are already being shelved and gas drilling is already in recession. The proposed changes in their present form are very dangerous. Please do not let this issue be decided through the media and public opinion polls. Sincerely. |
| RRE1250 |
Increase the royalties! The stakeholders/owners of this resource demand it; not the Oil Companies. Additionally, even if it did result in oil co's reducing their investments, so what? - no one can afford to build an interchange highway in S. Edmonton, a Hospital in Edson. I see electronic petitions whining about loss of real estate value, but that really only applies to the last speculator- what'd they think would happen, eventually. Hang in there and be strong Thank you. [Information Removed] |
| RRE1251 |
Comments on Royalty review: The capital cost estimates are double what the panel suggests and need to be reviewed. The heavy well oil wells drilled in the Bonnyville, Elk Point, Cold Lake and Lloydminster areas are already borderline economic and with the new Greenhouse gas regulations and the EUB Directive 60 which is not even considered in the Royalty panel review new drilling will not happen in these areas. I believe that projects already in progress and developed on existing rolaylty programs should not be included as they may be cancelled. This is a very serious matter and should be reviewed in detail by the Alberta Government. (This should be put to a vote and voted on by the people of Alberta.) Thanks [Information Removed] |
| RRE1252 |
I feel that increased royalities would result in reduced employment across a broad sector of Alberta. Yes you woud get more money from a single point , but there would also be a loss on marginal production no longer economic to produce , weak wells take a lot more dollars and general emplyment to keep going. Also with the enviromental and regulatory specs always increasing that too also loads cost to a barrel of oil to porduce. In the big picture my opion is that increasing the royaltie rate is not helpful. [Information Removed] Lloydminster , Alta. |
| RRE1253 |
I think we deserve more. I also think we deserve tax cuts, income and at the pumps. If this government is not willing to stand up to the bullies and their greedy shareholders, then that means you a) Don't need the revenue or b) think you're not entitled and would rather tax payers make up the the difference for our inadequate and crumbling roads, poorly paid teachers (I am a Parkland County Parent) , overcrowded schools, and working poor living in tents. To name a few of our problems. |
| RRE1254 |
I believe the recommendations are a bad idea. |
| RRE1255 |
Two recent articles, published in the Edmonton Journal, "Energy Royalties: responding to the critics" by Gary Lamphier, Oct. 20, and "Review panel actually plans sharp drop in royalties" by Gordon Laxer, Oc. 22, have strengthened my opinion that Alberta, the owner of a magnificent resource, is being seriously shortchanged. Surely we have the intelligence and the courage to stand up for ourselves!! I have noted that the oil companies have been complaining that the Royalty Panel have used incorrect data but I have yet to read point by point rebuttals, complete with facts and figures, to support these claims. Who is stretching the truth? [Information Removed] |
| RRE1256 |
Albertans should receive the same royalty rebate regime as countries in northern Europe who have also been the beneficiaries of large oil and natural gas deposits. We should adjust the royalty rates accordingly and receive at least to billion more per year. The current regime is antiquated and certainly does not reflect current $87.00 per barrel oil prices. Big businesses are making billions and the time is long overdue for Albertans to receive our fair share. I trust that Mr. Stelmach will support all Albertans and adjust the royalty regime for a minimum two billion per annum. |
| RRE1257 |
I think that maybe you misunderstood my question. When I asked, 'Were your calculations based on applying these changes retroactively to existing contracts?', I was not asking you to speculate about what may or may not happen. I am asking about the origin of the data that is the basis of the report. Is it based on applying changes retroactively to existing contracts or are your calculations based on contracts that will be signed after new legislation? Finance responds as follows: As you know, the report was produced by an independent panel. The government is still reviewing the report and has not come to any decisions. At this point, we cannot speculate about what may or may not happen. |
| RRE1258 |
"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 profit 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 more importantly, our people. Please do not make a decision soley based on financial gain, as there are many, more severe repercussions. " |
| RRE1259 |
Sirs: First, I wish to advise that I have voted Conservative since I came to the Province in 1970. But I need to express very major concerns regarding Conservative policies and actions regarding royalties, cutbacks and the rate of oil sands development. I do not believe that Albertans have been receiving their fair share of oil roylaties for a long number of years, and that the oil industry has been favoured by this government. I believe the Government should follow the majority of the oil royalty review report so that achieved royalties are at least to the level of 75 - 80% of what the Review Committee recommended. Perhaps this could be phased in over no more than three years. Compared to Norway and other places, Alberta's heritage fund is exceedingly low because government has favoured 'the patch'. I do not believe big (and small) oil should dictate the royalty regime. If they do not like it they can search elsewhere (and thus reduce the heat on Alberta's overheated economy). There are not many places in the world where there are secure oil supplies in a safe, democratic area, so even if they cut back or disappear they will be back or other companies will line up to take their place. The will and need of Albertans need to come far above that of oil companies. Also, slow down the oil sands development - the resource will not go away and it will be needed for countless generations. The speed of development in the oil sands area, as supported by the Governement, is driving up costs of living, materials, construction, etc. Thus, the policies of the Conservative Government are greatly contributing to the rising costs of schols, hospiatal, roadways and other infrastrructure and services. Much of the ncreased royalty income should be saved in the Heritage Trust Fund, but also a not so small amount should be dedicated to the mangement of the environment, the creation of new parks and the upgrading of existing parks and recreation areas, and the staff to manage and operate them, including the protection of the environment, wildlife, sensitive areas, etc. For too long the Conservative government has been paying only slightly more than lip service to these important areas of the Alberta Advantage. [Information Removed] |
| RRE1260 |
In this reply I feel that it is important to know the demographic of who is sending it. I consider myself to be a very average Albertan. I am a 30 year old married male who has lived in the province for my entire life. I own an average 1100 square foot home and work for a medium sized municipality. The royalty review report is a political hot potato and one issue whereby there is not a single right answer but many very wrong answers. Being an average Albertan I know many folks in the oil industry and affiliated fields; including siblings and friends so there is a vested interest for myself. I know that the 20% recommended increase could dramatically change the lives of a significant portion of the population; as oil industries will strong arm an economic slowdown. I also know that the economy has exceeded the capacity of government to mange growth effectively. We try to establish policy but are already 10 steps behind the next action of industry. We are spending 90% of our time and energy fighting fires resulting from growth and we are not able to focus pro-actively on the future of this great province. I believe that the management of royalty rates is an opportunity to control the Alberta economy similarly to how the Bank of Canada controls the national economy through interest rates. My personal feeling is that a royalty review panel be created and manage royalty rates on a quarterly or monthly basis. This gives direct economic control to the provincial government. Business and industry view the provincial oil outputs as a simple cost benefit economics lesson. The supply is high…demand is high…sale price is high and development costs are reasonably low…I say reasonably low because costs of production are increasing and margins are getting smaller. If royalties did not exist production would likely continue for a few more years and the economy in general would get hotter and hotter until the costs of staff contractors materials and property settled the market on it’s own. My suggestion is simply a mildly aggressive compromise be established whereby royalties are immediately raised by 12% and then reviewed quarterly by a government appointed panel that then manages the pace of the economy with the royalties. This will allow for threshold levels of royalty rates to be maintained. If the oil economy booms then royalties increase correspondingly to cover the costs of growth, if they slump then royalties are reduces to provide incentives to the oil industry to remain in the province. This is a great opportunity for our government to demonstrate strong leadership for the province. Thank you for the opportunity to comment. [Information Removed] |
| RRE1261 |
With what I have been reading (on both sides of the matter) of the Royalty Review, I am against raising it. Not completely mind you, but if there is a decision to raise it, then raise it gradually. This would be a better way of doing it, because you are talking about "massive" companies and the Alberta economy counts on these companies. Many places are known for there apples or potatos, or other resources. Alberta is known and thrives off of the oil and gas industry. To take away that from alberta and risk having these companies move to where they have more "favorable" royalties would dimisish the ecomony that has been so thriving. Calgary, Edmonton and area housing prices, amoung other things would significantly drop. Thus meaning hundreds of thousands of people will now have housing that they owe double or even triple what they can sell for. I think this should be thought through and a neutral decision should be made. The oil companies are not objecting to the raise, they are objecting to it if it comes all at one time. Be fair to the companies that provide as much for alberta as they do. Ralph should have been on top of this from the beginning, but dont hold the oil companies accountable for something that Ralph didn't do. Thank you for your time. I hope a wise decision is made. So do all albertians, because all else fail..... there is always elections if we dont like the decision. |
| RRE1262 |
Premier Stelmach, This is not the time to adopt or accept any of the recommendations stated in the Alberta Royalty Review. With ever increasing costs, a lack of available skilled trades, and a precarious world energy situation, now is not the time to make any changes to Alberta’s current royalty structure. To adopt the recommendations of the Alberta Royalty Review, will seriously jeopardize the viability and future investment in our undeveloped oil and gas resources. Domestic and international investment dollars must continue to see Alberta as a desirable and rewarding place to invest with no risk of continued government interference in development. Please take this position on the Alberta Royalty Review to your fellow caucus members and argue passionately against its implementation. Alberta has a history of making the right decisions. Now is not the time to turn even one degree to the left! [Information Removed] |
| RRE1263 |
That the Royalty Review Panel even exists in Alberta gives Albertans new hope that some kind of democracy still exists in this province. The raise in royalty rates of 20% proposed, however, just recovers what we have lost since about 2000. With conventional oil and gas supplies dwindling rapidly and demand for any (including expensive) Tarsands oil skyrocketing, it's clear that THE OIL COMPANIES IN ALBERTA AREN'T GOING ANYWHERE. THEY HAVE IT TOO GOOD HERE! **PREMIER STELMACH AND ALL OTHERS CONCERNED, YOU MUST STAND UP TO THE WHINING OF THE BIG CORPORATIONS. ALBERTANS (AND MOST CANADIANS) ARE BEHIND YOU. IF YOU LET US DOWN THIS TIME, WE GUARANTEE A LARGE TOLL ON YOUR PARTY NEXT ELECTION. |
| RRE1264 |
I have read through the Royalty review report and I agree with what the report states. I may not fully understand all of the details involved but I get the general reason that the rates need to be changed. I do not work in the oil and gas industry so my view of this may be biased against the industry how ever I do have shares in some of the companies and I know they will get affected. I totally agree with the no grandfather clauses in the report as this would just set up a host of new problems. I do believe this may effect some projects that companies have planned and that will affect some poeple working in the industry. Unfortunately, I have not noticed the oil industry putting off price increases to consumers because it may hurt their business or way of life. I believe we should go through with the increases all at once and if the companies cancel their projects because of the increase then maybe they should not have happened in the first place. |
| RRE1265 |
In regards to the Royalty Review underway, I am deeply concerned about the negative impact implementing these recommendations will have to our economy. While we can continue to strive to diversify our economy, the significant negative impact to the oil and gas sector will have a ripple effect to all Albertans. I cannot and will not support in the future a government that will look to stifle the economy we have all worked very hard to achieve. |
| RRE1266 |
Yes, It;s time to raise royalties The future of Alberta is at stake. |
| RRE1267 |
The royalties should be increased to be get in step with other international regimes. This is long over due. If this means an economic slow down in the short run, that can only help us catch-up and to get our lagging infrastructure in order. [Information Removed] |
| RRE1268 |
Albertans DO need their fair share. How? Please consider the following suggestions: - provide returns to Albertans (cheque form) - provide home owners with an extra bonus - provide a bigger "baby bonus" to Albertans - support our child care system, increase amounts to the Alberta Association for Early Learning and Care Services, provide financial support to the licensed out-of-school care programs in Alberta (invest more money in Alberta's Children) - support our education system - improve our medical system - improve Alberta's "connectivity" - invest in plans to have high-speed rails connect Grande Prairie, Edmonton, Red Deer and Calgary. Make Alberta THE place to live in Canada - allow Albertans the opportunity to travel safer and enjoy their province more. - it's time to stop charging Albertan's access to the Rocky mountains - perhaps there can be a rebate program in place where if you buy a yearly pass and you're reimbursed the cost if you're an Alberta resident. |
| RRE1269 |
To the Stelmach government. I am very unhappy with the Fair Share proposals. The royalty carve outs proposed are too harsh. I am VP Exploration of a small Alberta based oil and gas company. We cannot sustain the proposed royalty increases because the risks involved in finding the reserves need to be offset by a royalty regime that doesn't 'take it all'. |
| RRE1270 |
I believe the Royalty Review Report to be terribly short sighted and possibly tragic for the Alberta and overall Canadian govenments. As I speak too much monies are already being GIVEN to the province. The question ... do you want investment, jobs, prosperity in your province and for the betterment of Canada? It appears not. Greed is a terrible thing. Easy to justify. But not the best answer. Please consider not taking the report's advise. Thank you |
| RRE1271 |
In the early 1980s, the National Energy Program drove activity in the Alberta oilpatch to record low levels. Government intervention at it's best. What you propose with the royalty review will have the same effect. Your understanding of the economics of the current Western Canada Sedimentary Basin cannot be correct. The profitability of the basin is razor thin. The changes as proposed will make most development programs uneconomical. Capital investment will plumet. Spin off economics will end. Jobs will be lost and Albertans will get a larger piece of smaller royalty pie ultimately gaining less over time. Please reconsider your actions. |
| RRE1272 |
To Whom It May Concern: For a panel of learned professionals and experienced businessmen, one recommendation stands out as totally absurd. That is the Oil Sands Severance Tax, OSST. Firstly, the recommended OSST is levied on bitumen revenue (net of rental and 1% gross royalty). Every one knows business income tax should only be levied on earnings or profits. None pays income tax on revenues. Where did they learn this from, the Marxist School of Economics? Secondly, the recommended rates on oil sands were set based on WTI. WTI is a light sweet oil while bitumen is extra heavy and very sour. It is as if the personal income tax rates were set by the earnings of billionaires, and people on poverty must pay the same rates. I would urge our government not to adopt the oppressive and nonsensical OSST. [Information Removed] |
| RRE1273 |
To whom it may concern (every Albertan), If this royalty increase goes through hard times will be with us for years to come and the oil patch may never recover to levels that we have seen in the past. Junior oil companies are unable to show a profit as it is and the major oil companies will most likely shift there focus to international markets. There is more at stake here then pay cuts or jobs that could be forced on us by industry. We have seen our investment dollars (look at income trust values) shrink to a fraction of their original value as a result of federal goverment decisions; investments with money that we worked hard for and endured working in dangerous and harsh environments. We spent long separations from our families to ensure a secure financial future. If the provincial government does pass the new royalty scheme, our investments will devalue even more. I foresee loss of steady and secure income while having to cash in investments to pay daily living expenses as well as loss of property values. This stupidy and greed by the our provincial govermemt will not only affect the oil patch, it will affect all Canadians. There is already a slow down in the industry, particularly in the gas sector. Approving this royalty review would really be kicking us when we are down. I don't understand why this is such a difficult concept to grasp. If the royalty increase gfets approved, countless jobs will be lost, and industries outside of the oil and gas sector will be hit extremely hard. There will be a trickle down affect - housing market, auto, hotels, restaurants, rv companies, and even grocery stores will all see a large slowdown. The Premier has certainly got himself going down a slippery slope. Isolating one industry though, to increase revenues is simply not logical. He says he won't be pushed around by large oil companies. But if you raise the royalties, even in part, they do have a choice on where to spend their money. It won't be Alberta, as already suggested by [Information Removed]. Does that sound like a winning strategy to keep our economy strong? Obviously not. This requires some business sense by our government. Do what is right for Albertans - all of them. |
| RRE1274 |
I work for a large oil and gas company in Calgary and right now there are two 2008 budgets being drawn up, business as usual and a second one if the premier foolishly adopts the report as is. The latter would have many of the people in our department shifted to doing work for departments responsible for activities in BC, Saskatchewan and out of country. If this many jobs in Calgary are being "shifted" I can only imagine the impact on the rural communities where the "ground work" is done. All the service companies, hotels and other support businesses that can't shift or move will be hugely impacted. The opportunity to develop resources that would otherwise lay locked underground forever (along with any royalty they might generate) will be lost. I urge the premier to move cautiously as I understand that there likely are changes that make sense to make. I do have serious concerns over the assumptions made in formulating the report (particularly the under estimating of costs) to the point that from the outside it feels like this report was written before all sides had input. |
| RRE1275 |
I am extremely concerned with the proposed increase in Royaties. I am 100% dependant upon the Oil & Gas Industry as is the small Northern Alberta Community that I live. We have already seen a slow down over the last 12 months, and with Royalty Review it seems that a lot of us will be looking for work or starving this winter. The Oil Companies are holding back to see the outcome before 2008 Budgets are announced and the winter program commences. Wouldn't it just be better to leave as is, with a more stringent collections program. The Oil Companies are Businesses, they pay taxes too. Yes I agree that Oil & Gas are Alberta's Resources, but so are our trees, fish, lakes, water, farmland, and everything else that won't be here in the future if we don't look after it. I don't see major tax hikes in any other 'industry'. These major players give back to each and every community, already through their taxes, sponsorhips, employment, etc. When making your decision, please think like an Albertan who depends on the Oil & Gas Industry to feed and house their families. |
| RRE1276 |
I work for an oil and gas company and the information that the panel has is very incorrect and needs to be reviewed using TODAY's numbers - not stats from almost 10 years ago. Also i'd like to note how many industries other than oil and gas you are hurting (first one that comes to mind is the heavy duty machinery industries that we practically keep running) by increasing royalties which will decrease our production in many areas. I feel that the royalty increase is not a bad thing, and change is good - but it must be reviewed correctly and this panel is WRONG and out to lunch completely. I feel BETRAYED that the government would appoint and even listen to the panel that they did. |
| RRE1277 |
How do you expect grazing leaseholders to pay $10.00 per acre on occupied Crown Land, when in the last few years the cattle industry hasn't managed to cover costs or break even. If you want to remove ranchers off crown land, you've come up with a perfect way to do it. When leaseholders vacate these said lands, you will be minus any revenue you are presently collecting. |
| RRE1278 |
I would strongly encourage the Government of Alberta to take seriously the recommendations of the Royalty Review Panel. It would appear that the considerations that the panel made took into account fluctuations in the market and as such would be fair to oil and gas producers. The resources belong to Albertans and as such should stay here. The greater consideration that our political leaders have to face is how to use this money. Planning for the future is the key to the long term viability of this province. I am appalled by the remarks that the government already receives a great deal of revenue from the oil and gas industry. When you bring home a pay cheque, is that figure based on need? Thanks for the opportunity for the input. |
| RRE1279 |
A number of voices ranging from the oil companies themselves to public and private think-tanks, various investors, editorialists, economists, and financial and business analysts have all expressed serious reservations about both the accuracy of the royalty report's math and the reasonableness of its conclusions and recommendations. I think it's very unlikely that the owners of these voices are all just greedy and stupid bumblers. They are level headed and business-savvy, or they wouldn't occupy the positions they're in now - and these level-headed and business-savvy people are all saying 'slow down and check your numbers'. Do your homework. Read the fine print. Never has that been bad advice. As an Albertan who can remember what happened the last time we took our boom for granted, I am becoming deeply concerned that we are fixing to mess up all over again. When somebody urges us to do something that sounds really tempting - like a scheme for getting rich quick - it's hard to slow down and entertain sober second thoughts. But if anything ever warranted a cautious, delicate approach, it's this issue. |
| RRE1280 |
Increase royalty. It is for the good of Albertans. It is but normal for CEOs of oil company to make a threats - that is nothing but a salesman's style. But the government should not be a victim of their strategy |
| RRE1281 |
The [Information Removed]would like the following comments and concerns noted: 1. Revisions to royalties should encourage the refining of our raw resources here in Alberta. For example, the capital incentives that are currently offered could perhaps focus on refining projects. 2. Revisions to royalties should reflect the raw commodity that it pertains to. Natural Gas, Conventional Oil, and Oil Sands should all be treated independently and uniquely. On behalf of the [Information Removed], thank you for your consideration of our feedback. |
| RRE1282 |
I support the report from the Royalty Review Panel |
| RRE1283 |
Ed, time to go back to the farm. This premier gig is way over your head buddy. A Native Edmontonian |
| RRE1284 |
The Alberta Government collects in total for royalties and taxes about 50% from Oil and Gas companies. That is about 50% of every barrel of oil or equivalent produced in this province. The Oil companies with their 50% support multi layered industries dependant upon Oil and gas activities from the Service industry to the Hospitality industries, from large cities to small towns. In addition they support many community charities and activities, such as the United Way, food banks, shelters, arts, recreation and many others. After all this, they also produce a reasonable return for investors. They know how to manage money. The government on the other hand, fails miserably at money management - take a walk in downtown Calgary or Edmonton where every block has many homeless, alcoholics who need medical care, and pensioners that can't afford rent and are forced to beg on the streets. Both our Education and Health systems are among the worst in the country. What we need first and foremast is a panel to review what the government is doing with our money they have been collecting for decades and collecting today. Where are all these billions going? Who is tracking it and who is accountable when it goes missing? Increasing the royalties adds more money to go missing while more Albertans suffer through a major recession when it becomes uneconomic for companies to invest in Alberta. I think this government is on the path to create a major economic crash, worse than that in 1980's. I worked hard and lived through that one - now 25 years later, and on verge of retiring, you folks are scaring the [expletive] out of me. [Information Removed] |
| RRE1285 |
I work at an oil Company and it is a company that runs very lean. The company line seems to be that they are willing to pay more but what the panel came up with would cause billions more in payments than the 2 billion the panel is shooting for. Since the two parties are at odds is the government paying attention to the numbers that other sources have provided also? I am concerned that any royalties gained will be offset with job losses and possibly less royalties in the long run. I am curious on the process that the panel used. How is so much time spent using numbers that no one seems to feel are even close. If the government uses lower numbers and there was room for more maybe in 6 months or a year more money will have to be coughed up by the oil companies. If the panel numbers are used and the economy suffers it will be hard to correct it. |
| RRE1286 |
I work as an administrative assistant at an Oil & Gas company in Calgary. While that means I have a good job that allows me to be independent, I am single and have to support myself in a city where the cost of living continues to increase dramatically almost every month. I rent, and due to changes regarding rental increases made by the provincial government in the spring my rent recently went up more than 50%. Even without the threats poised by changes to the royalty process, it is a cost I am struggling to cope with. What would an “As Is” acceptance of the review panel’s recommendations mean to me? It means the potential loss of my job and a strong likelihood that I would become homeless. The panel has made some good recommendations. There needs to be more transparency in the royalty process and yes, change is needed. But at this time the review is being marketed as a way for the Government to collect $2 Billion more a year with no real impact on the economy or the lives of Albertans. I believe it is naïve to think that we can get something for nothing. That is not the way the world works. There would be an impact and it would do more than just slow down the boom in the oil sands. I also believe it is naïve to think that just because the Government is collecting more revenue, it will translate into a better quality of life for all or even most Albertans. I understand the figures used by the review panel are at least two years old. Using current figures paints a very different picture of the outcomes of implementing all of the recommendations. What is the point of having SOX compliance if the data is going to be ignored? I don’t work in the oil & gas side of the business (I’m in the office facilities group), so my understanding of the full impact of the royalty review recommendations is limited. I have talked with employees in my company who have a better understanding of things than I do, and they have me concerned. I also know that if the oil & gas sector takes a financial hit, it will have repercussions with charitable organizations and post-secondary institutions which rely on corporate donations to cover their operating costs. The president of the company I work for has offered to speak with MLAs who have questions about what the royalty review recommendations mean to our company. If you would like to speak with him, please contact [Information Removed]. Please think carefully about the impact changes to the royalty process will have on all Albertans, including those of us who make our living because of the industry. Thank you, [Information Removed] |
| RRE1287 |
I don't believe Albertans feel that they are being short-changed on the current Royalty programme. To increase to the rates proposed would, in my mind, result in economic suicide for this Province. We are the envy of the country, and most of the world for the resources we not only have, but for what companies have been able to extract -- yes, at a profit -- not just for themselves -- but for all of us. With increased demand and our ability to extract oil from the tarsands, the projected economic growth to this Province is astounding -- even at current royalty rates -- why do we have to gouge the oil companies? I don't think the Oil & Gas Sector is refusing any increase, but the percentages recommended by the Panel, will, as I have said, spell economic suicide for this Province. Regards, [Information Removed] |
| RRE1288 |
I want to register my disappointment in the Review Panel Report. It was flawed and ignores the high cost to develop and produce resources in Alberta and our distance to market. The analysis was flawed and therefore the recommendations are flawed. Further, Alberta has a stellar reputation for its integrity. The recommendations to overturn established agreements with Suncor and Syncrude is to breach a contract after billions have been invested in good faith. Further the panel advised not to grandfather plants that are under construction. THis is also effectively a breach of contract. Companies responded to the generic oil sands royalty in good faith and the royalty did what the province wanted which was to spur development of the oil sands. It is disingenuous to now raise royalties after billions have been invested. We should not lose sight of the total investment in the oil and gas industry and the benefits this province has derived. We are the most successful economy in North America and an economic engine for Canada. So in the word of the medical profession you should seek to DO NO HARM and be cautious about changing what has served us so well, Thank you [Information Removed] |
| RRE1289 |
Dear Mr Stelmach, I would like to let you know how sick I am of being taken advantage of by your government and how you have allowed large oil companies to have their way in our province. From missuse of water by the oil companies, lack of environmental concerns and now that they have knowingly been ripping us off for royalties under the knowing eyes of our government is more than enough to make us very mad. And I have not even started on all the other things that are upsetting me such as underfunded schools, school fees, infrastructure, environment and so on. Over all your government has not represented us well. I would like to know what you are prepared to do about all of this. The point of this email though is to let you know that I do not want to be ripped off by large oil companies any more. You say you want to let the market rule itself well let me tell you they are the only ones getting rich. I work 12 hours a day sometimes with no days off and I can barely make ends meet. This Alberta Advantage is only being realized by a few while the rest of us can't afford to live. Thank you, [Information Removed] |
| RRE1290 |
Implement all the recommendations. We are like a landlord; the companies, our tenants. Their rent has been frozen for decades. Other rental units are going for 2 to 3 times as much now. So adding a 20% increase is fair, even if the tenant threatens to leave. |
| RRE1291 |
Thye oil companies have known for years that they were getting away with theft. Now they want to threaten us with cutting production or leaving. Cut production they royalty stil remains....leave someone will come in after you. I've had enough with these big oil companies getting richer and richer. Make them pay! |
| RRE1292 |
I am an incorporated company, in Alberta. I have been writing software for Oil companies for 8 years (in Calgary). This increase in royalty is not going to help this city or prov. The Oil companies spend huge amounts of money in the software business. Everything from seismic application to accounting systems. The economics here are based on large EMP companies make and spending money. If this doesn't happen, the whole province will suffer. Help me keep my business. Be reasonable. Don't increase the royalties. |
| RRE1293 |
I don't agree with the recommendation to increase royalty takes. I believe the royalty review needs to be a collaborative effort between the government and the energy industry. Changing the one of the major cost parameters will impact ongoing projects in place and may hinder many new investments from happening. |
| RRE1294 |
The Panel recommendations related to the review on the Royalty structure is really concerning me and my family. We recently had moved to Alberta attracted by all the positive things that this province has to offer. And one of the major factors is of course the strong economy and possibility to work and live in a better place; however, based on the recommendations of the panel and feedback from the Oil & Gas companies, if the recommendations are accepted, life in Alberta could become extremely difficult and this is honestly concerning me and my family. We all very hard to get our jobs and develop a career here in this province. I really would like to have our government to have a more critical analysis of the situation and take in consideration not only the extra revenue to the province but also the impact that this could cause to all Albertans. Nobody wants to live the 80's again. Please give us the chance to stay and growth in this province. Best Regards, [Information Removed] |
| RRE1295 |
I do not supports ANY royalty additions. Our economy is pretty close to what it was in the 80's. Adding Royalty's onto the oil & gas sector will only do the same thing that happened then when the Tories changed the royalty tax relief then; cause a market crash. I would prefer to live in an economy that is flourishing instead of not having any employment. It only takes one stupid move on behalf of the government to turn the whole economy upside-down. Once bitumen can be extracted from the oil sands at a cost effective level, then and only then would it make any sense to raise the Royalties. [Information Removed] knows what they are doing by letting you know now that they will back out of any more investments. If the production costs are too high, then they will be unable to make any profit. Unfortunately it's only governments that don't understand this concept as they continue to fall deeper and deeper into debt every year, not having any fiscal responsibility laid on anyone in power. Boost the sin taxes instead, especially on smoking and gambling. Revenue can be generated that way for the time being. |
| RRE1296 |
There is no point to collect $ 2 Billion from oil companies and let them lay off hundreds of people in the name of rising cost. This will create panic among Albertans which will be reflected to some how in all other sectors specially in real state. Can we afford this.................I think NO. |
| RRE1297 |
I've read the Royalty Review Panel Report, and what it recommends is the minimum increase for sound stewardship of a resource that belongs to future as well as present generations of Albertans. Please accept the Hunter Report in its entirety, as far as its principles go. But please do not feel completely bound by the recommendations as to the royalty rate. As a quid pro quo for maintaining the one per cent of gross until capital is recovered, you should seek a market rent more analogous with U.S. jurisdictions like Alaska, and with Norway and Britain. My recommendation is one per cent of gross and 50 per cent of net on all oil sands projects after capital recovery. Moreover, all environmental mitigation expenses should be counted as part of the capital costs. So if firms want to extend the one per cent of gross payout period, they can make their own investments in reducing the carbon footprint, building their share of the carbon capture and storage pipeline and infrastructure, and apply all of this against the one per cent royalty capital cost. Further, firms that wish to share in public infrastructure costs -- cotnributing to roads, hospitals, schools, housing -- should be eligible to include these in the one per cent as well. If all this range of capital expenditures is covered in the one per cent, then it is more than fair to collect at least a 50 per cent of net royalty, after capital cost recovery, and to continue to collect one per cent of gross. This would continue to put Alberta in a very competitive position globally. And we ought to be charging a premium economic rent on our public report because we are a politically stable jurisdiction, adjacent to the world's biggest energy consumer, with the second largest oil reserves in the world. Just a political note -- if the current Alberta government in any way dilutes, undermines or cherry-picks from the Hunter report, me and tens of thousands of other Albertans like me will do our level best to elect a modern, confident, forward looking government that will not be intimidated by the oil lobby and will have the backbone and the moral clarity to ensure our patrimony isn't squandered at fire sale prices. |
| RRE1298 |
I am [Information Removed]working for an independent oil and gas company in Calgary. I have been working in this industry for [Information Removed] years and have enjoyed working internationally as well as in Canada. [Information Removed] main focus is in oil and gas exploration, where [Information Removed] recommend land to purchase (mineral rights), seismic data to evaluate the subsurface, and well locations to test the interpretation. From this perspective I would like to offer my comments on the proposed royalty review: 1) The O&G industry in Canada is currently suffering a big downturn due to perceived continuation of low gas prices for the long term, 2) The amount of exploration activity, which can be measured in terms of seismic crew activity, has been down for many years, and is getting worse. 3) The number of significant oil and gas discoveries in this province has been on steep decline for many years. In light of the above three truths, the timing for increased royalties and taxes could not be worse. Moreover, it is a myth that the government of Alberta is not getting its fair share. The key is understanding the big picture, which is something the current premier is failing to see (which is why he put himself in a lose-lose situation in the first place). It goes like this: When the O&G industry is booming, the Alberta economy booms. This is because jobs are created in this and related industries (everything is connected). This means that more taxes are paid and the GDP rises provincially and federally. If the premier decides to kill this industry by wholesale implementation of the report's recommendations, he might create short term gain at the sake of long term pain. Profits must be seen as an indicator of health in our industry, not just a source of additional government revenue to be squandered. Industry is a much more efficient allocator of resources than any government could hope to be (witness the Klein government survey as what to do with our wealth). If the premier were serious about safeguarding the future for all Albertans, he would realize that he needs a healthy resource sector. This means he should be looking at decreasing taxes, leaving the royalties alone, and stimulating the exploration side by providing tax credits or holidays for exploratory wells. With the proposals in the report, we will witness the end of all exploration in this province. Companies need to have big rewards if they are willing to assume big risks and large financial gambles. The premier should keep in mind that our resources are becoming ever more scarce, and as such, harder and harder to make significant discoveries of new reserves. And as for the tar sands, operating costs have risen so much in the past few years that most companies are barely breaking even. Yet, these long-term, highly capital intensive projects are the only ones keeping our industry from collapsing here in Alberta at the present moment. I left Canada after the NEP was announced, and returned after about 20 years away. I may have to leave again to look for work if the recommendations of this flawed report are implemented. The difference will be that I will have no Alberta to come back to in 20 years hence. |
| RRE1299 |
what the [Information Removed] are you people thinking trying to [Information Removed]this province you shut down the oil path get your heads out of your asses and just think about the40000 men and women out of work with there familys we have all worked hard to make this province maybe you guys dont deserve to be where you are |
| RRE1300 |
Stick to the course and implement FULLY the findings of the Royalty Review panel. Albertans need to share in the exploitation of our valuable natural gas and oil reserves. Most Albertans (who are not involved in the energy industry) have been paying the price for the increased costs brought about by the increased activity in the oil patch - roads, hospitals schools etc. Do not be scared by the threats of the industry. There is nothing wrong with leaving our inheritance in the ground if we are not properly compensated. [Information Removed] |
| RRE1301 |
Dear Mr. Premier: As a resident of Alberta since 1980, I have seen Alberta prosper and grow, driven primarily through investment in the oil and gas sector. My message regarding the royalty review is very simple. Please exercise caution in radically modifying the royalty structure. The investment climate in Alberta is already tenuous. Increasing royalties significantly without will clearly result in reduced industry investment with associated negative "knock-on effects" that must be considered. The compounding affect of industry investment must be considered vs anticipated short term increased royalty revenues to the government of Alberta. Which one is the better investment for Albertans? [Information Removed] |
| RRE1302 |
I am deeply concerned that the government may act on the findings within the Royalty Review Report before verifying the accuracy of the input data. The cost assumptions included in the report have been called into question with good reason. These should be reviewed before action is taken. I can tell you from first hand experience that maintaining economically viable operations in the oil and gas sector is extremely difficult. You don’t simply punch a hole in the ground and watch the money flow out. Sadly too many Albertan’s think this way. If a change is deemed to be necessary to ensure fairness, I can certainly accept that. However, a twenty percent step change does not seem fair, it seems punitive. Beyond fairness, I worry that if the changes recommended in the report are implemented it will cause a cascade effect which will seriously damage Alberta’s economy. The cost inflation that occurred in 2006 has led to a dramatic slow down in operations due to the economics being strained. You need only to look around at the idle rigs across Alberta to know that things have slowed down. This slow down is a direct result of the capital cost increase. Just imagine what happens when the profitability of the production is further eroded by increased royalty payments. Logic would dictate that business will follow the best opportunity. When Alberta ceases to be a good opportunity, businesses will take their investment elsewhere. Along with lost investment, goes lost jobs, lost taxes, lost mineral land payments and lost economic opportunity for all Albertans. I really would like to keep the Alberta advantage strong and vibrant. Let’s ensure that whatever the change, it is the right change for the right reasons not for political optics. |
| RRE1303 |
I have seen what happened with the NEP. When companies start shutting in production, or stop drilling because it is not economical. I remember the job losses, the house forclosures, the despair. People are already losing jobs because the gas price is down. Please don't make things worse for the people who live and work in Alberta. Those who think this is a good thing, are sadly misinformed and don't realize what the implications are. Please do not support this flawed royalty review. |
| RRE1304 |
I support the increase in oilsands royalty but it should be increased more gradually over a period of time ex. 3 years to lower the initial inpact. Another option I support would be to increase the rolalty to non-canadian producers higher than canadian companies. My 2 cents [Information Removed] |
| RRE1305 |
Please support all findings of the royalties commission. Stand up to big oil for all albertans future. |
| RRE1306 |
This is the wrong way to do this!! why bite the hand that feeds us! Think about what has put Alberta on the map Oil and Gas and the Government has made so much money from it already! This is such a bad idea it will take the wind out for our sails for sure! |
| RRE1307 |
I am very much concerned with this royalty review since it will impact all Albertans. I work in one of the largest oil companies, and I think the increase in royalties is not right. The oil companies in Alberta are the ones that are making Alberta a rich province. If this royalty regime is implemented, these companies will cut their projects and cut costs, and which will mean cut jobs. This royalty regime is improper. Based on the information given to us, the calculations of the panel is incorrect, not looking at the right costs and expenses incurred by the oil companies. I am not in favor of this royalty regime because it will cause Albertans their jobs and prosperity. Not only the oil companies that will be affected, but also the other companies that are relying on these oil companies. These oil companies are making Alberta a rich province, so I don't think taking so much from these companies will do good for the Albertans. |
| RRE1308 |
I can not believe how poorly this Royalty Review has been handled. You commission a report and then openly release it to the public without reviewing the results in advance!!! Government transparency is one thing, but this was plain stupid and shows the new governments inexperience. Oil & Gas is the life blood of this province. My entire family is employed in this industry from exploration, service, right through to production. I personally have been employed as a Geologist in this province for over 23 years always with Junior oil & gas companies. It is becoming much more difficult to find conventional oil & gas reserves in this province. I have survived many downcycles in this market. Finally we have a positive upswing in our OIL industry, (not so in the gas industry), only to get back handed by our own government. I always thought it was the Federal government we needed to be concerned about. This proposal is going to seriously affect small, medium and large producers and ripple uncontrollably through our economy. Most people do not understand how exploration companies work. We do not put our profits into our pockets (dividends, bonus etc...) as conventional companies do. Our junior company alone spends all of our available cash flow on exploration activities as do most exploration companies. We take the profit we make and invest it directly back into Alberta. We only directly benefit when we sell our company, and hopefully then the assets have grown. Before this government makes a major decision on royalty review, please make sure you have completely thought out the effect |
| RRE1309 |
I feel oil royalties received from the industry should remain as is. Increasing the rate would only hurt prosperity in our province by forcing oil business to cut back on jobs and development. Government should not get greedy , suggest they concern themselves with good management of monies already being received. |
| RRE1310 |
I hope that your govt will enact the Royalty rates advocated by the Royalty Review Panel. We call tell that the rates were too low because so many oil compnaies from around the world were falling over each other, to get at the cheap Alberta oil. Now they have inflated prices and wages. Please stop the export of the butumin to the U.S. |
| RRE1311 |
Be very carefull , remeber the law of unintended concequences, apparently ignored by our federal government. |
| RRE1312 |
When Alberta was estalbished as a province in 1905 - we had to fight for our mineral rights. Today we are fighting for our rights from the oil companies. ED, Keep up the great work for Alberta and our rights to our resources. [Information Removed] |
| RRE1313 |
Mr Stelmach: It appears to me that, if adopted in full, the recommendations made by the Royalty Review Panel will be detrimental to the Alberta economy as it exists today. Erroneous assumptions and inaccurate data were used in the compilation of the report and thus, its findings cannot be accepted as realistic. I encourage the government and people of Alberta to read and review other industry publications on the topic (eg. Tristone, First Energy and CAPP) to gain a real appreciation for the potential damage that could be done should the Panel's recommendations be adopted in full. Analysis of the royalty system requires a number of assumptions to be made in order to assess if an increase in royalties is warranted. Inaccuracies in these assumptions made by the panel (assuming 2006 activity levels would continue regardless of changes to the royalty is one example) renders their report useless and provides Albertans with the false idea that royalty rates can be increased without any impact on the Alberta economy. EnCana's statement that it will cut 1 billion from its spending in Alberta in 2007 should the report be adopted in full is the tip of the iceberg as far as economic impact is concerned. EnCana operates on a substantial amount of freehold land that is impacted less by these royalty changes. This means that similar or larger spending cuts can be expected from other companies that operate solely on crown land where royalties are higher. These spending cuts will affect all communities in Alberta through lower employment, less municipal taxes and less consumer spending (fewer restaurant meals, taxi fares, renovations etc.) I encourage the Government of Alberta to reject the Royalty Review Panel's recommendations in favor of a review that uses accurate data to optimize an increase in royalty rates that will benefit all Albertans and still make the province an attractive place for the oil and gas industry to do business. [Information Removed] Calgary |
| RRE1314 |
If implemented, the recommendations of the Alberta Royalty Review Panel will have a lasting impact on communities and employers in this province. The true economic consequences to Albertans need to be determined before we commit to sweeping changes. Albertans depend on an economy that provides reliable employment and a stable environment for investment. As a representative of Albertans you must take the time to get it right. I urge the Alberta government to assess the full implications of the Alberta Royalty Review Panel's recommendations before endorsing wholesale changes. I ask the government to be accountable. Slow down, investigate the consequences and make sure you get it right. |
| RRE1315 |
Increasing the royalties is an excellent way to share the natural resources with all Albertans, however, to tax the large oil companies to the point where their R & D is uneconomical is devestating for the long range economic plan for the Province. |
| RRE1316 |
This review is flawed and there are a lot of factors at play which are not being considered. The PC Federal Government has killed the energy trusts which were a natural conduit for small oil companies to sell production to the trusts. Therefore killing the small companies and the dollar differential being paid in US dollars for oil and gas is also lost. Now the Alberta Government review panel is trying to put in place a tax grab that equals an National Energy Program for Alberta set up by Trudeau in the 80's which killed the energy industry then and will kill it now!! Our company has had wells cancelled by the oil companies when the well was already to go because there is a possibility that the well will be uneconomical because of what the review may cause. The oil companies would rather spend their money in other countries that are more accommodating to the oil and gas industry than do work in their own country. Do not kill the golden goose! [Information Removed] |
| RRE1317 |
Implement all the Royalty Review recommendations. Don't weasel out from your duty to protect my resource base for future Albertans. |
| RRE1318 |
I have been employed in the oil and gas industry for 7 years. Prior to that, in my professional capacity as a consultant I was one of the "1 in 6" Albertans that was indirectly employed by the industry through various contracts and projects. I am distressed by the pervasive villification of the oil and gas industry. There are rigerous regulatory and financial guidelines in place, developed by municipal, provincial and federal governments to which this industry adheres. There has been no mass conspiercy by industry to either cheat Albertans or thwart the Panel's work - I believe efforts to clarify information and validate data have been done with the best intentions of Albertans and the economic well being of the province in mind. Please keep in mind that people employed by the oil and gas industry are "the people of Alberta," the same as anyone else. Unlike individuals not directly employed by the industry, we have the advantage of recognizing the work being done to with respect to environmental stewardship; advancements in technology; and contributions to education, healthcare, arts and culture and community development through community investment programs; and benefits associated with direct and indirect employment. There is a substantial amount of information that is available to the public, if people would take the time to read or listen. While I believe there is merit in conducting a review, it is imperative that decision makers (government), use the best available data, and consider the implications of making decisions that have the potential to adversely impact the economic well being of this province. Selfishly, perhaps, I am concerned about my job, as well as friends, colleagues and contractors that provide support to this industry. I have watched millions in capital being shifted to other operating regions outside of Canada over the past two years due to foreign exchange rates, increasing operating costs, and other challenges that are layered on to this industry. It is not hypotehtical - it is happening. There is a multitude of third-party data and information that is available for consideration in the development of sound of recommendations. Please work to find the right balance. Best regards, [Information Removed] |
| RRE1319 |
I disagree with two basic concepts in the Royalty Review and recommendations: 1. First that Albertans do/should receive their fair share of the resources that the people of Alberta own. First, define fair share. Fair for whom? Relative to what scale? Is it really accurate to compare ourselves to all the other countries and their assessed royalties? I know that I as an Albertan do not see any share of the royalties. They go to the majority elected government who then decides how to spend my share. And the only say I have in how that money is spent is by electing a party that I believe will spend responsibly and best represent what I want. But other than the election, I have no say in how they spend. None. 2. Second, what is the purpose of this Royalty Review and how will the money received from the recommendations benefit me as an owner of the resources? The review uses the term Fair Share repeatedly as the reason for the review, but in reality the recommendations are meant to take money from the developers (who are the risk-takers in developing the resource) and put it in the hands of the Alberta Government (who represent the Owners of the resources...Albertans) who will not discuss how this increase in revenue from royalties will be spent to benefit Alberta or the industry that provides the Royalties?!! It's a bit like your kid saying..."Trust me" as they ask you for their "fair share" an extra million dollars but won't tell you what they want it for or intend to do with it, and insist that all their friends get even more in their fair shares!!! Do the developers make a lot of money? Absolutely. But they also take the risk. And they bring untold value to the province and the communities by creating jobs. Should they pay more to Albertans? Probably, but how will that impact Albertans? If it means less development and fewer jobs then what will be done by the Government to compensate? It sure won't be an incentive to invest in oil development, so there really is only one thing it can mean. And what will that increase in Royalties bring to Albertans? More money in the Government's hands to do with as they see fit...not a very good idea if you ask me. |
| RRE1320 |
! I am very concerned about your decision to go ahead and raise the royality rates , I have worked and lived in alberta oil industry for 31 years, I wonder if you really understand all the complexities and repercussions if the rate's are raised to high, discouraging investment in alberta. This will affect all people immensly, I hope you will invesigate this before making any knee jerk reactions, which could be very dentrimental to Alberta's strong economy. I HAVE many relations and friends who are also not in the oil industry and are very worried about the proposal, which in the end could be very detrimental to Alberta's economy, Reply requested. Thank You [Information Removed] |
| RRE1321 |
As a direct employee with the oil and gas sector, I hope the governemnt takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations will be far reaching and rather than a province that has, we will be a province that doesn't. |
| RRE1322 |
We should absolutely charge oil companies many times more than we do now for extraction of our non-renewable resource. We should also be charging them waaaay more than we do for water. |
| RRE1323 |
I have read the report from the Royalty Review Planel, and I have heard the threatening messages and read the letters from the oil investment industry. I think it is disgusting that Alberta based businesses like [Information Removed] threaten to redirect their inverstment away from the Province that birthed them and their success. I support the Alberta govenment raising energy royalty revenues in a ballanced and staged manner. We deserve better and we should be saving for oil sands remediation too. Sincerely, [Information Removed] Edmonton, Alberta |
| RRE1324 |
The gov of Ab. hires people to review such matters as the royalties paid to the people of Ab and when the panel says that the oil companies need to pay a larger share naturaly the oil companies are going to cry and threaten to cut back. The large profits made by these same companies over the last several year was partly paid for by the average tax payer in this great province by not receiving a larger share through royalties. You asked a panel of I'm sure, qualified people to review the royalties. They did, and they advise the gov. of Ab that the royalties are not even close to what they should be and have made recommendations. The gov of Ab has spent alot of time and money on this review . Do not let the big oil companies bully the averag tax payer of Ab . They are business men who know very well why there companies have made record profits in our province. Make sure you get our fair share. That why we elected you. To represent the people of Ab not the big oil companies. Thank You for the chance to give you my opinion. [Information Removed]. |
| RRE1325 |
This review and subsequent recommendations have been flawed by an apples to oranges comparison of royalty regimes. Global royalty regimes are complex and no two are exactly the same. I am a retired oil exploration VP with 27 years of global experience. I know from my work that these comparisons are flawed. I also know of [Information Removed]and I have always considered his analyses as bogus. The report is misleading to the public since it compares royalty and taxes with other jurisdictions. What is doesn't show is the huge revenue that Alberta collects from landsales. In the years 2000 to 2006 (inclusive), Alberta collected more than $10 Billion. Thus the government share is actually higher than any U.S. or U.K. regime. The public has now been misled by false data. A related problem is that companies bid substantial bonuses (landsales) to win the right to explore and produce with the explicit understanding that the fiscal terms will be the same as when the bids were made. To alter these terms after the fact may be illegal and it is totally disingenuous. I am a proud Albertan and I do not want to see my government change our reputation as honest and fair people. [Information Removed] |
| RRE1326 |
I tuned in tonight looking for a plan. All I heard were platitudes. Where's the beef? What this province needs is leadership. Look to Ernest Manning and Peter Lougheed as intelligent, tough leaders with vision. Mr. Stelmack is a nice guy, but spineless. |
| RRE1327 |
Regardless of the level of royalty rate the Gov't of AB must have the rigerous and professional oversite to get every penny owed. As the report points out GOA has a laughably loose and unprofessional approach to collecting royalties. This is a multi-billion dollar exercise and transparent and accurate quarterly reports of methodology and results, signed off by the highest authority followed up with a public annual audits conducted by a world class auditor must be the minimum standard. Just stop for one second and think about state our social infrastucture is in now and the mess that the NE corner of the province will be in 20 years ... who is going to clean this up and where is the $$$ going to come from? It's shamefull that GOA has allowed it to get to this, but there has to be a lot of catch-up before we can even begin to discuss what is 'fair' to Albertan's |
| RRE1328 |
It is about time that the government reviewed the royalties from our natural resources, more specifically, oil and natural gas. The oil corporate sector no longer needs a free lunch. Other Albertans employed in other sectors, namely agriculture must play in the open market and it is time for the oil companies and the related industries to do the same. All royalties should be tied to the global price of oil and adjusted as the market shifts. The whining and crying oil companies have demonstrated over the last few weeks is embarrassing. Please.......how stupid to you think Albertans are. If the grass is greener in other areas of our globe, by all means enjoy the journey. |
| RRE1329 |
I'm an oil and gas engineer for [Information Removed]. I have finally been put in a role that reflects my education due to the busy industry. I have spent 4 years in school and another 4 in the field to get to where I am today. I can not believe that all this will be lost if the proposed royalty rates are introduced. I am not going to get into the numbers I just want to say how concerned, and disappointed i will be if everything I have work so hard for will be taken away. [Information Removed] |
| RRE1330 |
The recommended oil sands royalty is fair and does strike the right balance. The right balance was considered by the review committee in coming to their recommendation. Albertans will be disappointed if the Government caves in to the oil company lobby. Gas royalties are a different matter. The long term benchmark price will be set by LNG imports and there is limited upside. For Alberta to sustain gas developement, this has to be recognised in setting the gas royaly rate. |
| RRE1331 |
Please do not destroy our drilling industry, it is already slow this year, please do not shut it down. Do NOT increase royalties. |
| RRE1332 |
Do what is right, implement the recommendations !! Anything less is unacceptable. |
| RRE1333 |
This delay for consultation lets the oil companies spread fear tactics to Albertans. IF they stopped investing, there is still enough work out there to keep most Albertans employed. The oil will still be there when the companies come back (and they will, if they ever leave). Perhaps an incentive to process the oil in Alberta rather than export it would be a better option than an across the board increase. Make the increase a tax on unprocessed material leaving the province. This would give the companies a chance to save money if they aren't shipping the raw material out of Alberta, while giving Alberta a value added product. I hope the present government has the will to stand up not only to the oil companies, but to the former premier, who seems to think he should still be in charge. |
| RRE1334 |
I am happy to see the Alberta Government showing a concern about the province's long-term economic vitality. Fossil fuels will be exhausted, and it is important that the province set aside what it can now to prepare for the unavoidable economic changes that will creep up all too soon. I urge the Government not to waiver in the face of energy companies' threats--they want our resources and they have the money to pay for them. The lives of average Albertans, both now and fifty years from now, should take greater priority over greedy CEOs. Development will not stop because of increasing royalties. If it slows, great; that just gives Alberta a chance to stabilize its economy and reevaluate its policies on industrial development. Thank you. |
| RRE1335 |
Please consider out-sourcing your information because I think that your data is incorrect and will have a dire effect on the oil & gas industry. Please do not proceed. |
| RRE1336 |
ask average albertan what their fair share is--a large amount think its a big cheque to them personally. Oil companies say they will take business else where and they will but what happens to alberta? I believe the domino effect will severly hurt us. Such as layoff oilfield workers they in turn can't pay bills, bankrupty goes up, layoffs in store and restaurants start happening ect ect. No one argues oil companies need to pay fair share but they don't need to be slammed at once just as average person doesn't want mass layoffs in this province. |
| RRE1337 |
I think this is the craziest thing I have ever heard. The money that will be collected through the royalties will be far and beyond eaten up by the unemployment and devestation this will cause on the province. It is already felt in the entire sector....with very little activity. A disaster in the making if this passes. Its not broke so why fix it? Maybe put energys into somthing that needs fixing. I would never vote for this clown. So I do not see no upside into this passing. |
| RRE1338 |
RE: Royalty Review Panel's Report: I must confess I was a bit annoyed at the panel's tone and inaccuracies with regard to the economic realities of oil and gas development in Alberta. Alberta is a very high cost basin to operate in. I know because I earn my living in the oil and gas industry. I think Alberta has one of the best market based systems in place to get its fair share of economic rent from its resources. In my mind there is a decent balance between the entrepreneurial spirit required to develop the resources and government take. If you follow the panel's recommendations to take more, than there is not much left for the entrepreneurial companies that develop our resources. If there is no prospect for a decent return on a risky investment then the financial capital required to bring on additional production will flow elsewhere. The reality is we have produced the easy low cost barrels and now we are chasing the high cost barrels. The panel is suggesting with the “high” oil price that there are supernormal profits to be had and that Albertans are being ripped off. That is complete rubbish. If oil prices were not at $60-70/bbl there would no development work going on because the returns would be sub-economic (a direct result of the high cost to develop & produce the marginal barrel in Alberta). Albertans get market price on their share of production. As commodity prices increase, so does Alberta's revenue stream. Last time I checked, the land bonuses were at record highs - another indication that Albertans are getting a strong market based valuation on our resource before any development capital is spent. I am disheartened by the unnecessary posturing by both the oil and gas industry, the panel and government officials. It is not constructive because it distracts the general populace from the real issues. There needs to be constructive dialogue on correct factual information to have a chance at arriving on a recommendation that is beneficial for Alberta. In my opinion, Alberta is at a fork in the road; it can remain a “have” province or revert to the “have not” status very quickly, if thoughtful consideration is not exercised. I should also remind you that it is not only Albertans watching this royalty review process. Existing & potential future Investors are already skittish with the ill-conceived moves made by the federal Finance Ministry. I can only hope that the Alberta government exercises its utmost wisdom before making a critical and far reaching decision. Respectfully, [Information Removed] |
| RRE1339 |
will ed,your following trudeau,wasted tax payers money,talk 20 min.and said nothing.all the things your going to do ,but not how.what a bunch of useless garbage,sorry i wasted my time and watched it |
| RRE1340 |
To: The Honorable Mel Knight, Alberta Minister of Energy From: [Information Removed] RE: Alberta Energy Stewardship, 10/9/2007 Dear Minister Knight: I would like to express my concerns over the recommendations made by the Alberta Royalty Review Panel. While I agree that Albertans deserve a ‘fair share’ of resource royalties, I am concerned that a full implementation of the Panel’s recommendations will, in combination with other impending regulations, put at risk continued the health of Alberta’s economy. For several years now Alberta has enjoyed an economic windfall from the exploitation of its natural resources. It is clear however, from Panel and Auditor General conclusions, that the Province has not done enough to provide adequate transparency and oversight of Alberta's resource management. I laud and support the implementation of Panel recommendations to this effect. And while I agree in principle that Albertans should be receiving a fair, competitive share of resource revenues, I am disturbed by the suggestion that Panel recommendations were disadvantaged by data that does not reflect current costs. Perhaps more troubling is that calculations were made without taking into account the cumulative affects of regulations that have yet to come into affect. The impending expiry of federal Accelerated Capital Cost Allowances in combination looming environmental legislation and rising costs has created a climate of crippling uncertainty. Whatever actions are taken, they should be made with all of these considerations in mind. The strength of public support behind the Panel’s recommendations has created a volatile situation. Moving forward the Province has an opportunity to show leadership by presenting a vision for provincial prosperity that incorporates fair resource royalties and improved governance into an overall resource stewardship strategy. Thank you for your commitment to the public good. Kind regards, [Information Removed] |
| RRE1341 |
As cliched as the following may sound, it is a cliche for a reason. All too often during the extremes in the business cycle, the current situation appears to be the best or worst with little consideration or thought for the future. Decisions made based on the present rarely reflect those of the future, and as history has proven to us time and time again, everything changes; what goes up, must come down. The recent Panel Report has only taken into consideration the current 'boom' experienced in the industry which has impacted Alberta in both positive and negative way. This consideration is on the assumption that the 'riches' will continue in the same way for many years to come. Given the Panel's recommendations, and if implemented in its entirety, the decisions made by companies directly affected will be adjusted accordingly to reflect the additional costs. This will also indirectly affect those companies and Albertans not involved in the industry. Additional costs lead to less production, layoffs, saving vs spending, etc. The extreme recommendations will have repercussions felt not only in the industry but the Alberta economy in general. Careful consideration is required to ensure that decisions made today will not have detrimental consequences in both the short and long term. All too often the short-sighted nature of people, and desire for instant gratification takes over the common sense of one's decisions and impact it may have not only for him/herself but others as well. [Information Removed] |
| RRE1342 |
It is my opinion as a native born Albertan that the Alberta Government should implement the recommendations of the royalty review report in full and without delay. The people of Alberta own the natural resources and deserve a fair share of their worth and value. In my opinion this has not happened over the past ten or so years and the energy industry has exploited this situation to the detriment of the province and its long-time citizens. With the lowest royalty payout in the free and developed world, the petroleum industry is building production infrastructure and exploiting the resource at a rate that is beyond the economic capacity of the province and even the nation itself, resulting in rising costs and shortages of materials and labour and untold social problems throughout the province. This boom-time over-development is in my opinion a direct result of the unfair imbalance of royalty rates in Alberta and the oil industry has attempted quite successfully to exploit the situation to the maximum and beyond. This needs to end. I heard a media quote by a player in the oil industry say that "the province can't have its cake and eat it too", well I say neither can the oil industry, at least not any longer. It is the responsibility of the government to put an end to that and ensure that the oil patch takes its direction from the people and not the other way round. Regards, [Information Removed] Calgary |
| RRE1343 |
Yes, I agree with the Review, you must raise it. Thanks |
| RRE1344 |
Oil company's are not paying their share of Royalties,in Alberta,compared to other countries. Please implement the suggested increase of 20%. or more. |
| RRE1345 |
Since the oil companies insist we pay the "World Price" for oil, it is only fair they pay the "World Price" for royalties. A high-average royalty would be fair. If one or more of the larger companies wants to leave because they would rather rape Alberta than date Alberta, let them go. There are other fish in the sea and lots of moneyed Albertans ready to take their place. |
| RRE1346 |
I am not in favour of the royatly review report. The average Albertan will feel the immediate results of an industry slow-down much more than an increase in an intangible royalty. |
| RRE1347 |
I think Stelmach should impliment the full recommendations of the royalty review commitee. He should raise royalties significantly, at least 20%. I want the development of tar sands to decrease in alberta. |
| RRE1348 |
Hello there, I came to Alberta 9 years ago and I do not work in the oil and gas industry. I arrived as an environmentalist uneducated about the oil and gas industry and with an unfavorable view of the industry overall. I have since learned a great many things, and still an environmentalist I am now for oil and gas exploration and exploitation carried out with responsible environmental practices. Canada's oil and gas resources are some of the most responsibly exploited in the world and the cost that goes along with that is substatial. Everyone from oil and gas executives to Wall Street are saying that production in Alberta will drop significantly if the cost to extract is that much higher. Everyone in our province from the news paper delivery guy to big business and government officials currently benefit from the additional wealth that the oil and gas industry generates in this province. Alberta has the lowest unemployment rate in the country. Please think long and hard before increasing royalties in this province, the long term effects could be devastating. Read the attached article printed Oct. 5 in the Globe and Mail: http://www.reportonbusiness.com/servlet/story/RTGAM.20071005.r-royalty05/BNStory/robNews/?cid=al_gam_nletter_newsUp Regards - [Information Removed] |
| RRE1349 |
The increase is required. There are many positives and few negatives when you do the bottom line. Accept the report or suffer at the polls. |
| RRE1350 |
The government should increase the % of royalty collected from the oil & gas industry. The extra revenue can be used to reduce income tax, more fundings to education, remove health care premium and other social programs, plus to cool off the red hot economy. |
| RRE1351 |
I have been reading the Royalty Review paper and I wish to remind the government that your duties go beyond simply collecting royalties as the paper seems to indicate. Rather, the government's job is to govern, creating (and administering) policies and laws for the public good. The public good transcends the simple collection of fees, royalties, and taxes - it is important to foster an environment where the citizens are free to pursue their livelihood while minimizing detrimental effects of that pursuit. I fear for my job (as do many other Albertans) if the cost structure of producing oil and gas in Alberta slants any further towards "uneconomic". As partial explanation to the above comment, I have worked virtually worldwide, having participated in projects on every continent except Antarctica. I am presently in a planning role with a mid-sized oil and gas company headquartered in Calgary. We have holdings in BC, the NWT, and the US. Over the past 3 years, my company has invested about $100 million in my project area (east central Alberta) with varying success. According to my calculations under the existing royalty system, further capital investment in this area is uneconomic at prices below $5 per mcf (current prices). One point that has gotten lost in the present rhetoric is that the producing companies are currently setting their budgets for 2008. Much of the perceived “whining” is actually guidance given by the companies to shareholders regarding the level of activity anticipated in the next year. Just as farmers can rotate crops or leave fields fallow, these companies can chose how much work to do and where to do it, but current laws force publicly trading companies to keep the public informed about any material changes to the value of their shares. To support the corporate guidance efforts, I presented my budget requests last week and I expect our group's spending in eastern Alberta to be down 85% from our 2006 amount. This level is unlikely to change upward but it could go down (i.e., we might do less work than expected, but not more). This is not a threat, it’s information that needs to be disclosed to our shareholders. Similarly, many of the statements made by various financial advisors that are currently making headlines are not threats, they are the results of analysis being made to warn investors of the financial implications of this potential policy change by the government. Note that our spending on these oil and gas projects is very labor intensive. This drop in activity level will result in lost jobs in the service industry. Also, since we are not planning many new wells, there will be reduced payments to surface landowners (for leases and right-of-ways) and to the county (for road use permits). Finally, the drop in the value of my savings due to lower share prices of the companies that I own means that I will not be renovating my house - in fact I will not be doing much discretionary spending until these share prices stop dropping. All of these factors result in lost jobs, less tax revenue for the government, and a general contraction of the economy. Perhaps the government feels that a contraction in the economy would benefit the citizens of Alberta. However, I caution you that the full effects of major policy changes take years to become apparent. I also caution about the “law of unintended consequences” and how an apparently simple change in policies can cause some unexpected (and unpleasant) results. For both of these reasons, I urge the government to be moderate in making any royalty changes and as a minimum to consider a “phased in” approach. As a citizen of Alberta for 46 years and a Tory supporter for 31 years, I am alarmed that the Government of Alberta is considering adding to the attacks on my livelihood. Please consider the overall effect of public policy and resist the simplistic analysis that reduces the government to a simple “tax collector” role. Please show some vision and help make this a province where my children will have the opportunity and the desire to live and work. |
| RRE1352 |
I am concerned that there seems to be panic over the potential fallout from the royalty report. More comprehensive consultation should be conducted before anything is implemented. Over the last few years, there seems to be great difficulty in budgeting large projects due to skyrocketing costs, labour and material shortages, etc. - everything goes millions over budget for these large projects, so I'm wary about the projections made in this report, when the industry itself has problems projecting. I think extreme caution should be used, and anything put forward should be implemented in a reasonable timeline so that industry and Alberta in general has time to adjust. |
| RRE1353 |
Dear Mr. Premier, At the going prices that hydrocarbons fetch in the world market, If the development projects are still not viable, and can not provide for the needed, fair and equitable development of the region, then perhaps “Alberta oil sands resources project” in its holistic context, has a negative NPV. Alberta needs to invest in the infrastructure as well as secondary and tertiary industry to support the level of economic activity that is in its near future. The ripple effects of that growth is going to put heavy stress on the existing state of infrastructure that is old and was never meant to support the coming level of industrial needs. The province is no where close to the fulfill demands that the same industry is going to impose when it will be operating at full capacity or building and constructing to reach that capacity. These times need heroic decisions that will determine the future of Alberta for many generations to come. Regards, [Information Removed] |
| RRE1354 |
Hello It was about time!!! The parameters for the exploration and comercialization of oil are very different than 15 years ago. So, it is very apropriate to apply the world standards to the royalties. I applaud the government for the initative, and support fully the application of the new percentages, The industry will cry, but that's expected! Thanks, [Information Removed] |
| RRE1355 |
Oh waaaaa! Encana will pull 1 billion in projects next year if royalties increase? Grow up...what are you three years old. NO ONE CARES. oil companies pocket BILLIONS in profit and whine if they have to spend more. What a joke. Steady Eddie should increase the royalties now, not next year. |
| RRE1356 |
If the government continues with this review, I could lose my excellent paying job, my house and be out on the street with my daughter. I'm a single mom and I finally can affort to pay my mortgage and put her in some activitities. If this review goes throught, That will all come to a stop. Think about what your are doing to Alberta middle class people. |
| RRE1357 |
Even the threat of increased royaltys are already having a major effect on the amount of jobs in our area. (lloydminster). I guess if they are brought in the goverment had better be prepared to pay out a ton of money in unemployment. |
| RRE1358 |
all oi lcompanies should be held responsible. they have been showing record profits for years and all of us albertians should benifit for this not them. i work in the oil patch and ya i think they should pay more cauase thay sure dont pay us well. |
| RRE1359 |
I recall a news article about Shell's annual report a year or so back. It highlighted the big profits Shell was gettting from oilsands compared to it's average per barrel profit. I also see reports about the record profits of Exxon and Chevron. In the meantime, we are told by our government that royalty income is due to take a big hit in the years ahead. Then along comes this report detailing the poor performance in the past and recommending a royalty restructuring. It was truly a breath of fresh air to see this, particularly after the Klein years, and I really hope that Mr. Stelmach and the Government stand up to the oil companies and institute the report recommendations. We are on our way to peak oil, whether in the next couple of years or 20 years out.. Alberta has a resource that the world wants and will pay for, and there are no more Saudi Arabian taps to turn on instead. Please don't leave any more money on the table. That resource belongs to the people of Alberta and we need to get our fair share of it's value. |
| RRE1360 |
Royalty Review--Do Not Change! The current structure is fair in my opinion. The economy of Alberta would be and will be tanked. The opposition parties are all mouth!!!! |
| RRE1361 |
As an Albertan and person who has personally been fortunate enough to work in the oil industry for half my career, I would like my Government to ensure that they know all the facts before they put this Province into a very fragile position. I believe an increase is warranted, but not a 20% increase at the get-go. Governments do not have a proven record for establishing a viable economy , historically they have done more damage than good. I, for one, see no reason why they would not transition higher royalties over a period of years to ensure our economy stays strong. I have no confidence that the average Albertan will benefit from the royalty hike in the long term. |
| RRE1362 |
From your report on the royalty structure, I can only find that it is grade benefit to the oil company's Like to remind you that the Albertans share of the royalty from 1975 to 2010 would be $70 billion and that be just for Oil Sands Royalty. Also due to lack of infrastructure Albertans will also be indebt for a futher $130 Billion by 2010. Conceder that the town of Fort Mc Murray alone needs $5 Billion over the next 5 years just to keep up with their infastructure. Keeping in mined that Royalty of our conventional oil and gas is being used for the infrastructure due to expansion , of the Oil Sands. I there for classify the Royalty incentive program as the biggest scam and legal robbery in history of man kind. And when Albertans realize in the near future how they have been robbed, the politician of today would have to seek Asylum in the USA Their is nothing wrong with some incentive for the Oil Sands projects So when A Company wanting to build a plant for 100.000 barrels a day, no problem, do not pay Royalty untill the plant is paid for, but when it seeks a expansion up to 200.000 barrels a day, I want to see my Royalty for the first 100.000 barrels a day to continue. Since I as a Albertan am not getting the Royalty and in fact am paying for the plant, I would insist that only Canadian labor and material is being used. Further more Oil Company's should not be allowed to write of this Royalty Expense on their Federal tax taking the Federal government for a other 2 Billion a year Thank You [Information Removed] |
| RRE1363 |
How much in royalties do you owe in back pay ,what you got away without paying,and when are you going to pay that ? If your company isn't interested in our oil / gas, other companies will replace you. People in Saskatchewan want royalties too,or are you planning to [Expletive] them too ? |
| RRE1364 |
I think the government should not be creating a new "independent" committee that will be expensive (as stated in the report itself. Spending more to compare our province to a completely different country (with different values and morals) is unnecessary and frankly ridiculous. Our oil industry is poised for a terrible downturn if the government works (and spends) towards a higher take - and telling me that it is for "me" not the govt is a way of making it sound pretty - but I don't buy it. We already are very fortunate in our budget, and the government needs to spend its time and energy on other sectors right now (government accountability for example). Focusing so much time and money on one industry is crazy - and will only be to our detriment if that industry comes to a grinding halt, as I truly believe it will if govt continues to focus on getting more out of it instead of focusing on other ways to make Alberta sustainable. |
| RRE1365 |
If the oil companies can't still make great piles of money in spite of larger royalties going to Albertans then it is because of two possible things; (a) they are bad at their own business or (b) the Oil sands are truly not viable. Of course the grab and snatch crowd will scream. Mr. Stelmach should stay the course with a serious royalty review. Otherwise citizens will have to conclude that the Provincial Government is in the pockets of the oil industry. |
| RRE1366 |
1. royalty on conventional production should be left as is. 2. royalty on tar sands production should be placed on a sliding scale, using oil price as a guide with a cutoff at production cost to produce the syn crude. 3. royalty for tertiary projects,in conventional oil, captial costs out first then tax as convention curde as volumes will be increased. |
| RRE1367 |
Just wanted to say that I, and numerous others that I have spoke with, support the results contained in the report. It is time to slow down the economy. The wages that are paid out by the oil and gas industry do not reflect that of the majority. Unfortunately causing a market where the common person can not afford the inflated items within the various markets such as housing. When the majority do not have the disposable income available to them and see the minority with the purchasing power, the effects are negative and this negativity creates discontent within the society as a whole. Good luck with the venture as the battle will be against some very powerful and influential beings. [Information Removed] |
| RRE1368 |
Do you idiots not get the fact that billions of dollars have been invested in the province in good faith and your proposal and subesequent inaction has destroyed investor confidence and billions of their invested dollors. You should be sued by the investors and the everday Albertan who is about to lose their job and house. Stelmach you need to resign and admit that you do have the smarts to run the porvince. Signed A formaer conservative |
| RRE1369 |
First of all, thank you for making this form available to Albertans who wish to express their opinion regarding the royalty review report. I feel that the recommendation to raise royalties is a step in the right direction, but that Alberta should be collecting a lot more money from the oil companies that operate in the province. A report communicated to me by the Parkland Institute states the following: "With countries like Norway and Venezuela obtaining 78 percent and 90 percent respectively, Alberta is far from being a leader in this regard. And contrary to industry threats of late, these countries are experiencing no shortage of oil companies wanting to invest in their resources." I was previously unaware of these statistics, which is a testament to the disinformation that has clouded this debate. It is now clear to me that royalties must be raised dramatically in order to give Albertans a fair share of the oil revenues. These companies are walking away with incredible profits while causing severe environmental damage. This simply cannot continue along the current trajectory. [Information Removed] |
| RRE1370 |
i recognize there is no way that all groups will be satisfied with the outcome of the royalty review, and as such i would like to compliment the province for taking on this sensitive yet important issue. i was very surprised to see the recommendation to leave the capital investment incentive untouched. i understand the reason for it, but provides too much of an opening for creative accounting. a small increment would be in order. i have also been made aware of several non-consensus items that are of great importance - the review panel conclusions should not be the sole consideration. key non-consensus items that will drive the long-term impact to the province must not be forgotten. |
| RRE1371 |
I want to see the royalty change according to the report. Albertans deserve their fair share. While I don't always agree with Rick Bell, his column in today's paper (Sunday Sun) where he quotes Pedro van Meurs, royalty system expert, makes the most sense to me. It is wrong, wrong, wrong to kowtow to the oil industry. Enough already. As to the downturn, and predicted downturn, I have news for you, Alberta runs on gas (and oil) and the gas industry is already in a slowdown, nothing to do with royalties. I know people who work on oil rigs who have been sitting on their butts since May. Again, get Albertans their fair share, please. [Information Removed] |
| RRE1372 |
I do not agree with raising the royalties at all!! This will definitely have a bad impact on many peoples jobs ! It will end up being worse than the 80's ! |
| RRE1373 |
I firmly believe that the proposed increases will be devastating to Alberta's economy. This year has already been very challenging for us in the oilfield service sector. Please reconsider these proposals. |
| RRE1374 |
Hi I dont belive you guys should be doing this. It is only getting your guys more rich and us as citizens are getting nothing out of it.. You guys are all so going to be making a lot of people loss there jobs becouse of your stupided. You know we are one of the richest provinces out there and we are just being greedy. You guys should let things be and dont make it hard on us any more. You are just going to make it so tones of people have to losse there houses and go bankrupt and I as a citezen is not wanting this to happen. Why dont you guys try and compermize with us and think about what you are doing. |
| RRE1375 |
This is unfair as the costs are not at all acurate, third party services are already taking the governments share as the costs have increased drasticaly the last few years. So the excess the government thinks they need is mosty used up by the services working for the oil companies |
| RRE1376 |
I have reviewed the Royalty Report and believe there is much work to be done. Based on the analysis that has be done since the report was issued it seems clear that the proposed changes will casue a very negative impact on the Conventional Oil & Gas industry. In particular the increased royalty rates on conventional production apply to wells with limited reserves relative to the capital investment required to drill, complete and tie in the well. These suggestions would significanlty change the economics of the business. If these rules are implemented there will be a significant reduction in activity which will affect all Albertans - there are so many service companies in rural Alberta - operators, trucking, drilling, service rigs, construction etc. etc. - this will have a very negative impact on employment and government revenues. Obviously the proposals will also have a significant negative impact on investors, oil companies and the employees of the oil companies and service companies. I encourage the Government to engage in discussions with CAPP and the many companies that took the time to present to the panel. Additional discussion and analysis is necessary - please take the time necessary to analyse the feedback that you have received since the report was issued, the views of CAPP and the Industry - and make the necessary changes to the proposals - before any changes are considered. |
| RRE1377 |
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. |
| RRE1378 |
Dear Sir, Today I am writing you to strenuously ask that common sense be used to judiciously reject, or at least lessen, the recommendations put forth by the Alberta Royalty Review Panel (“ARRP” or “the Panel”.) I believe that the ARRP recommendations are bad for Alberta due to a number of reasons. These reasons are: 1. the ARRP has unduly set public expectations for a specific amount of $2 billion that Albertans are “owed” as resource owners; 2. the ARRP has marginalized the substantial downside risks to the Alberta economy in its report; 3. Alberta does not have immediate need for the increased take as recommended by the ARRP. The ARRP has unduly set public expectations in a number of ways, not the least of which is by demanding that the Panel’s recommendations be accepted in full by the Alberta government. The Panel has effectively declared that Albertans have been shortchanged by oil and gas developers to the sum of approximately $2 billion per year. This amount is based on numerous assumptions, most of which are being debated by oil and gas producers, oilfield service companies and industry groups. Irrespective of these experts’ arguments, my common sense approach is that no forecast is perfectly accurate, and that all forecasting assumptions will be proven to be erroneous. Given this reality, I think that the Panel has done Albertans a disservice by claiming that “total government take, once all the recommendations are implemented, will increase by about two billion dollars a year at current price and production levels.” (Executive Summary p. 8) What will be the response by Albertans when the actual government take is more than or less than the two billion dollars per year put forth the Panel? Will there be a supplemental royalty or tax increase imposed on oil and gas developers should there be a shortfall? Moreover, should that the targeted $2 billion increased royalty take be collected by government, only to witness an offsetting reduction in other government revenues, eg. income taxes and bonus payments on land sales, would then the expectation be that an even larger royalty increase be required? I wonder if the idiom “robbing Peter to pay Paul” does not apply to the increased royalty take when one considers the risk of reduced oil and gas activity, thereby reducing employment, investment, and ultimately income taxes and bonus payments on land sales. Certainly, I think that the ARRP marginalized the substantial downside risks to the Alberta economy if its recommendations are accepted, in part or in full. While royalties may proportionally increase if the recommendations are accepted, over time total royalty dollars collected by Alberta will surely decline as fewer wells will be drilled, and fewer oilsands mining projects will be pursued. Oil and gas producers will be pressured to increase dividends and/or share buybacks to the detriment of capital investment in Alberta. How much of these dollars returned to shareholders in the forms of increased dividends and share buybacks will the Alberta government and all Albertans receive? As reported in the National Post on August 30, 2007, the 2007 Global Upstream Performance Review by John S. Herold, a U.S.-based independent petroleum research company, and Harrison Lovegrove & Co., a global oil and gas advisory firm, dividends and share buybacks by oil and gas companies totaled US$83 billion and US$88 billion, respectively in 2006. Capital investment by oil and gas developers has declined in Alberta in 2007 due to high finding and development costs, the federal government’s 2006 decision on income trusts, the appreciating Canadian dollar, and generally poor economics for drilling programs. Further reduction in wells drilled will surely push the natural gas sector into recession and slow down the oil sector. With these reduced activity levels will come reduced income taxes and higher government expenses in the form of welfare benefits and related social costs from higher unemployment. The risks to the Alberta economy already exist and are growing. No economy is immune to the repercussions of poorly-timed and ill-conceived policy decisions. My third concern is that Alberta does not need the incremental $2 billion in royalty take proposed by the Panel, so what would the government plan to do with these new funds. If Albertans want their government to use the funds for current spending, then I think that we Albertans would be extremely short-sighted because we would be basing our higher spending on the proceeds of a non-renewable resource. If Albertans want their government to squirrel the incremental funds into the Alberta Heritage Savings Trust, or some other savings account, then I think that we Albertans would be extremely foolish to risk pushing our economy into a recession just because we want to save more for the future. Alberta is already debt-free, effectively has full-employment, and has the lowest taxes in Canada. This fiscal environment is largely thanks to our oil and gas wealth, complemented by prudent fiscal management in years past. Such wealth can only be replenished by fostering more oil and gas development, not by driving investment to neighboring provinces or other countries. The recommended increases in royalties are foolish, poorly-timed, and not needed by Albertans. If accepted by the government, in the years to come, Albertans will rue the day that the decision was made and hold accountable the government that made the decision. I urge the Stelmach government to reject the recommendations of the Alberta Royalty Review Panel. Yours truly, [Information Removed] |
| RRE1379 |
Problem with the royalties is such, that numbers have to keep everybody more or less happy. Companies and province. On the other hand companies are competing for a right to drill and obtain oil. If one company is not happy with the royalties to be paid other may be happy. From the strategic point of view there is no need to rush. Alberta will not benefit from fast "polishing" its resources. The longer oil stays underground - it higher value it has. Pushing exploration up immediately causes only a headaches. Labor cost skyrockets, investments (infrastructure) becomes un-manageable. Roads/bridges/schools etc. are very expensive and quality of work falls. My appeal : take it easy, do not give up, we are making decisions for our children and grandchildren. What is saved - is saved. What is waisted - is lost forever. It would be much , much better to cooperate with the Saskatchewan people to set common standards and principles. Acting together we would have much better position in negotiating with the industry and also with federals. Thanks for your attention. |
| RRE1380 |
I think 60% for the Province and 40% for the developer sounds like a good compromise |
| RRE1381 |
As stated on your website, the Alberta petroleum industry has been a cornerstone in the growth of the province – demographically, economically and politically throughout much of Alberta’s history. Why mess with a good thing?? If the proposed royalty increase goes through we will be faced with a province wide bust, not solely experienced by the oil patch alone, that will be with us for years to come. The oil patch itself may never recover to levels that we have seen in the past. Smaller oil companies will be unable to show a profit and the major oil companies are likely to shift their focus to international markets, investing their hard earned CANADIAN income in more stable markets where goverment decisions do not impact business strategy. This in turn will force Canadian and International service companies (which employ thousands of Albertans and Canadians) to follow the work overseas or in some cases be forced to close the doors. There is more at stake than lost employment opportunities; pay cuts could be forced onto the industry resulting in increased social problems which will create DEPENDANCE ON GOVERNMENT PROGRAMS! Most of us have seen our investment dollars shrink to a fraction of their original value as a result of federal and provincal govermental decisions; investments with money that we worked hard for and worked in dangerous and harsh environments. We endured prolonged periods away from our families; our families endured prolonged periods away from us, in an attempt to secure a good life and future. If the provincial government passes this proposed royalty scheme, our investments are sure to devalue even more. This stupidy and greed by our provincial govermemt will not only affect the oil patch and related spin off services, it will affect ALL ALBERTAN & CANADIANS! Remember we are the people who voted to give you the privilige of serving in our goverment, we can also decide to vote differently next time. Do the right thing and protect the people, make the right decision. DO NOT APPROVE THE PROPOSED ROYALTY INCREASE!!! |
| RRE1382 |
We own a small trucking company that hauls oil for [Information Removed]. We are heavily in debt because over the last year we purchased [Information Removed], on the assumption that we had an evergreen contract with [Information Removed]. However, if [Information Removed] moves out of Alberta because of Alberta raising the royalty taxes we would be in serious financial difficulty - facing possible bankruptcy. Even if a new company took over, our contract would be put out to tender and we could possibly lose the contract. We are a young family with several children to provide for. We ask the government to negotiate with the oil companies to find a balance that both parties are happy with. It would be an economic mess for a lot of people if the oil companies would leave Alberta. Thank you sincerely, [Information Removed] |
| RRE1383 |
This is not the time to be making these sorts of changes. Anything done should be phased in slowly to determine it's impact on industry (think the banks interest rates going quarter percent by quarter percent). You risk creating another National Energy Program.. People will love you for that if you do. [Information Removed] |
| RRE1384 |
Hello, My name is [Information Removed], and I live in the community of Bridlewood in the wonderful city of Calgary. I wanted to express my concern with what is currently happening with the Alberta Royalty review. I am curious if the provincial government has given any thought as to what will happen if they adopt these proposed royalty/tax changes? I think the Stelmach government is under the assumption that investment in this province by oil and gas companies will not be effected by these changes. I think this is a poor and dangerous assumption! I heard our mayor this morning made comments that this will be great for Calgary as we will be getting more government funding for projects – again I believe this is a poor assumption. I have been reading a number of reports by various analysts who are considered experts in the oil and gas industry and the results of these changes would likely impact the Alberta economy negatively. I agree that the province would benefit from additional royalty revenue, but lets face it, it we all assume investment will remain unchanged I think we’re fooling ourselves. Has the province looked at this possibility and the impact? My fear is at the end of the day some companies will invest elsewhere (outside Canada) and the overall royalty take will remain the same or perhaps drop. Alberta has the lowest unemployment rate in Canada and the largest government surplus at its disposal – what are we trying to improve? I don’t think the economic impacts of a slowdown by the oil and gas industry have been fully explored. Major projects and activities related to the industry could lead to layoffs of taxpaying Albertans. This may sound like a doom and gloom type e-mail, but I sure hope the government has thought about these things and is not taking these steps to gain votes in the next election. Personally as an Alberta citizen I will not be voting for this party if these proposed changes are adopted by the Stelmach government because I believe this is nothing more than a vote gaining political game that will eventually hurt our province. I think we’re headed down a slippery slope here – remember the 1980’s and the National Energy Program? Here’s an interesting question - what is the Federal government going to do? Their take on tax revenue will be negatively effected – how will the rest of Canada react to this? I can’t imagine Quebec and Ontario will be too happy to hear that Alberta will keep more while they get less. I would be very curious to hear your opinion on this. All I hear in the media is how this will be a great winfall for the province, but I don’t agree based on the research I’ve done. This absolutely terrifies me when I think of what the potential impact this could have on jobs for people in this province, including myself. Thank you for your time. [Information Removed] |
| RRE1385 |
In my view point the royalty scheme is out of date and needs to be modified. Equally, it needs to be fair and balanced. I have now read the review and the counter arguements. I have tracked as many source documents as I could. I believe your panel has (accidentally or deliberately) used source material benificial to their arguement while ignoring anything prejudicial to their case. This implies a deliberate intent to force a conclusion to match a preconception. This is a huge mistake. Do not do it. Now that it is open to the public domaine, negotiate in good faith with the producers. Fix the royalty situation, do not break it. I would not like to see a return to the early '80's. [Information Removed] |
| RRE1386 |
Big Mistake! |
| RRE1387 |
I believe that the Royalty Review of Septermber 18, 2007 should be set aside. A new review board should be enpaneled including representation from the oil and gas industry in Alberta. It is critical that the review board utilizes accurate cost structures as well as revenues of the companies investing in Alberta. |
| RRE1388 |
Tonite's speech identifies that Chef Ed is in the kitchen-- tomorrow we will find out what kind of meal he wants us to eat. !!! We hope it's not steak for big oil, and bologna for the people. |
| RRE1389 |
I think the royalty review makes some good suggestions but does not suggest aggressive enough royalty hikes. |
| RRE1390 |
The Alberta Royalty Review Panel report does NOT go far enough in securing Alberta's future. While I support the intent of the report, this government can do much more to secure our future through a slowdown in resource extraction and a significantly larger and immediate increase in royalties than this report recommends. |
| RRE1391 |
If the objective is to bankrupt a large number of small business in Alberta just put in place this stupid review. |
| RRE1392 |
I’m extremely concerned not only for this province but for my own employment as well. I’ll be honest here and state I’m a lifelong Progressive Conservative/ Federal Conservative, I work for [Information Removed]. My company has decided not to release a public statement at this time criticizing the Royalty Review Panel (RRP). They have decided to implement a company wide hiring freeze pending the government decision on this review. Make no mistake, budgets will be slashed in my company and projects will be either delayed and/or cancelled. In my specific case the Royalty Report suggestion that the deep gas royalty holiday will make our entire Alberta Foothills drilling portfolio uneconomic at current gas prices and drilling/ service industry costs. I have no reason to doubt these proposed changes will also affect other operators in the foothills area such as Shell, Talisman, CNRL, ExxonMobil, PetroCanada and others. This represents hundreds of millions of dollars of investment in the foothills area alone. A couple of assumptions missed by the RRP: 1. The Review Panel underestimated production and development costs by nearly 50% in their assumptions. 2. The Panel did not include land sale bonus payments in their provincial government revenues citing “complexity” and difficulty in collecting data. This represents in 2006 alone approximately $1.8 billion. I’m aware you’re looking to keep your jobs (as we all are) so let me suggest a couple of courses of action: 1. Implement accountability suggestions allowing for the government to better track royalty revenues 2. Change the 1% gross royalty for pre-payout for oilsands projects to a higher net royalty. I’ve noticed the press and the public has an intent focus on the 1% number as evidence of big oil getting one over on the public. 3. Maintain grandfathering provisions on royalty rates. 4. Keep conventional oil and gas royalty rates as they are. [Information Removed] |
| RRE1393 |
Please do not make a major decision based on politics - the Oil industry is fuelling the boom. Like any company they must make a profit. There are down times as well. The companies themselves will still be profitable wherever they go- the Saskatchewan government is salivating at the chance to bring the industry here. Do people really believe that increasing the royalty is going to put money in their own pockets? How about when the Oil companies bail out and the boom stops? The spinoff will effect the entire country. From workers sending money home to their own provinces to other industries losing orders. I hope that the Premier will consider the long term effects - he can single handedly shut down Alberta's prosperity. I hope he will consider that the Government does not own the oil reserves either. They just profit like everyone else. |
| RRE1394 |
As a student graduating from the University of Calgary's Petroleum Land Management Program in May of 2008, I am deeply concerned that the increase in royalties will significantly reduce my chances at getting a job. Please consider the economic effects and how it will affect all the citizens of Alberta. |
| RRE1395 |
I would like to know that Premier Ed Stelmach has read my letter, not just the Minister. [Information Removed] |
| RRE1396 |
The analysis in the report is flawed 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 bases its recommendations on outdated or erroneous costs, and 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 Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and 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 The recommendations will have a substantial negative impact on Alberta and Canada’s economy, 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, The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and 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. |
| RRE1397 |
I am agianest any decision to increase the rolyalty to that level which may slow down our boom here in Alberta. I beleive that Albertans are benefiting more from booming economic rather than have more money in the province treasure. Every dseciosin which may end up to stop or decrease in investment amount in oil industry must be avoided. |
| RRE1398 |
To Whom It May Concern The Royalty Review process, although a noble cause, is flawed , full of errors and has missed the mark. The panel itself does not have an individual member who has had to make capital investment decisions in the oil and gas business. Nor do any panel members have a sense for how difficult it is to build a junior exploration and production company into a profitable venture. The capital flight that has occurred from long term basin investors over the last week is unlikely to revisit this high cost basin anytime soon. Irreparable damage has already occurred. Clearly, this has been mishandled and the report is consistent with the mishandling being error filled and basic facts being misrepresented. In my company's particular case the punitive royalty applied to higher volume wells makes no sense. Our Alberta exploration program becomes unviable and the proposed program incentivizes us to lower production to 300 MCFD to pay minimum royalty and capture more of the reserves. We most certainly will refocus our spending in British Columbia. The assumption that activity will remain constant with the Royalty proposal is clearly an error. Alberta is a natural gas basin with the majority of royalty revenue coming from gas production. The 15 % royalty addition makes most exploration programs uneconomic when looking at cost base, risk and basin maturity. Activity will drop, investment will drop and supply is currently quite sensitive to activity. Supply will most certainly drop which will largely erase the supposed $2 billion dollar gain in royalty revenue. Please do the right thing and have real experts review real data that compares apples to apples. Having worked Internationally I am quite familiar with most fiscal regimes. The comparisons made to Alberta's royalty based system are plain wrong and misleading. On balance, the report is full of errors and misrepresentations and is offensive in its presentation. Subsequent remarks by panel members and our unelected Premier are uneducated and ego based. I fear for Alberta. Welcome back to deficit budgets and 1983 activity levels. I lived through the NEP and your panel members clearly did not. [Information Removed] [Information Removed] [Information Removed] |
| RRE1399 |
I do not believe that royalties should be increased. The oil and gas industry is what feeds our economy and what has helped Canada grow so strong. Projects would be cancelled, jobs would be lost, economy would be worse. I have yet to hear what the government intends on doing with the additional billions of dollars. We always have a surplus and I am quite content with the way Alberta is run now. What more will we see from all this additional money? I think more damage will be caused if jobs are lost, housing prices drop and many people are left with outrageous mortgages that they cannot pay because Alberta wants more money in its pockets. I strongly suggests that the consequences are looked at carefully before any decisions are made. Its easy for people to throw together reports and point fingers, but do they really know both sides of the story. |
| RRE1400 |
I think that is a bad idea to increase the royalty rate significantly. Actually the provincial government is on the budget surplus status. Does the government have a sound plan how to use effectively the big money after the royalty rate increased ? Getting more money from oil industry cannot ensure the Albertans get the fair share of the benefits. I would say let money stay in private companies and individulas would better than putting it in government's hands. |
| RRE1401 |
Please do not consider another government-incited recession. Too many of us still remember the last one in the early 80's and do not wish to experience that again. Thank you . |
| RRE1402 |
Ladies & Gents: Anyone old enough to remember the N.E.P. ? Look before you leap. That investment money IS going to be spent somewhere, the logical result, the obvious thrashing of independant Canadian oilfield service companies willl take is the result of ignorant greed. (see 2nd sentence). Please see big oil for what they are, major players in the development of Canada, if we are not with 'em . . . . HELP. [Information Removed] |
| RRE1403 |
Please make the oil companies pay what is fair for Albertans. Make them pay more to Alberta. |
| RRE1404 |
I think the oil and gas industry has been getting a sweetheart deal for long enough. The expansion in these areas has critically overloaded the infrastructure in this province and I would be happy to see more money from these resources stay in Alberta to pay for things like roads and health care. |
| RRE1405 |
When considering your reaction please DO YOUR BEST to ignore the falsely indignant reaction of the CAPP, its members and its sundry sponsors who work in or have been speaking out through the media. Alo take a good hard look at the value-for-money propostion that operating in this part of the world offers offers to the companies ivolved. And finall, take a good hard look at the reaction from the oil/gas patch every other time the province raised rates. Graham Thomson's column yesterday (Tue Sept. 25) in The Edmonton Journal was very instructive on this subject; based on many companies' reactions to date, there is a 'deja vu all over again' scenario playing out. |
| RRE1406 |
The royalty review will cost us our jobs and homes. We have famiIlies to support and children to feed. We will have to fight for a job at Mcdonalds because we live in an oil based city. The threats are not threats at all but truth. You will have alot of people looking for help from the government which caused the problem in the first place. This will in turn create economic resession and not only will Alberta be greatly impacted but the whole country. You, as the government, are playing with peoples lives like pawns in chess and don't seem to care beacuse as government officals you will never go hungry, Canada willing or not will feed you and your famillies with tax dollars and will continue to feed you until there is nothing left. We just recevied official word today that if it goes through our jobs are finished and many others that depened on this oil field for life, not only is CNRL going to go in resession but Imperal oil will follow suit as will Encana. These are the three main contributers in our area for jobs and sustaning life as we know it. Banks and car dealerships will go broke to lack of payment from the unemployed and it will not stop there, it will be like a pleaug slowly eating away at our beautiful country. Our province has been brought out of debt by the oil field and Ralph Klein. We believe that civil unrest and crime will rise to a never before seen rate, not by choice but by the need to support families. We as Canadians are starting to get more self centered, foolish and most of all greedy. We live priveledged lives here and should be greatful of what we have, not looking at what we don't have or what we feel we should get. We believe something can be done about the oil royalty, but not at the exspense of thousands of people. Further discusion and compromise are greatly needed in this matter. Loving Canadian's in doubt of many peoples and Canada's future. Sincerely, Service Rig Workers and Consultants. |
| RRE1407 |
The oil and gas industry is what has made Alberta the province that it is. The industry is also sensitive and investment and activity levels have and will change for even slight changes in costs and environments. I agree that the royalty program is in need of change and that increases are needed in order for Albertan's to get their fair share but this should not effect the stable environment that has been created for oil and gas investment in our province. I believe any increases need to also be implemented with grandfathering on existing commitments and that the increases should be gradually. As with any investment greed and fear drive the market and a sudden change of even 5% up or down can cause a ripple effect that can see investments swing that change to 50%. I would hate to see a sudden change where oil and gas investments in Alberta take a knee jerk reaction. The sliding scale should also take into account that as oil and gas prices rise so do the equipment and services which supply the industry. A 10% increase in gas prices may actually relate to only a 5% gain for producers due to the inflation that is associated with that. Therefore the sliding scale cannot be a linear type system. Thank you for allowing me to comment on the royalty review and the upcoming changes that will be announced. [Information Removed] |
| RRE1408 |
I feel it would be completely irresponsible of our gov't to accept the findings of the royalty review report. When all the facts are reviewed regarding the issue, it is apparent a straight across comparison with other oil and gas producing countries is foolish. The oil industry in Alberta allows us to live a very good life, earning a good living, whether you work directly for the industry or not. To further tax the industry will mean a massive slowdown in our economy. Instead of asking people "Do you feel the Alberta people deserve more royalties" what we should be asking is "Are you willing to accept lower wages, fewer jobs, downturns in the economy, and less value for your home in order to grab more money from the public sector. " It seems the authors of the royalty report are determined to send Alberta into a recession. |
| RRE1409 |
Does the gov't stop to think what oil and gas companies do for the communities? Encana donated $500,000.00 to Bassano for a pool. donated money for medical equipment to the Drumheller hospital. Other companies have bought 4-H calves, donated to minor hockey and sports. Jobs not just in the oil field will be lost. Alberta would die. Does the gov't plan on stepping up to the plate and taking place of these donations? I think not. Our great premire said he felt it was time to give back to the citzens of Alberta. Well these companines go over and beyond the royalities. So if the royalities go up can we expect another $400 chegue or will it increase to 425.00. Our premiere should remember he didn't get in because he was liked, lets see how much more he can make Alberta dislike him |
| RRE1410 |
As per our comments to the Royalty reveiw commitee , I , we ,ask you to please consider the consequences of not taking the producers concerns into consideration as to what per-cent increase they can accept in order to not put us back into NEP day's. Our lively hood and the lively hood of our 50 employee's will be directly effected by the decision's that are made in the next few days. I request that the full consiquences of this decision are thought out not only for the short term but the long term . Thanks [Information Removed] |
| RRE1411 |
We should make changes to the royalty rate structure proposed in the report, though it should be phased in over a period of time. companies have made investments in Alberta in good faith, and those investments should be respected. the structure should allow for a continuation of the 1% royalty holiday until investments made in 2008 or earlier are recovered. Then, the royalty rate should scale up by 2% per year (on new investment in that year) until after a 10 year period, the royalty rates comes to the recommended 20%. To clarify, Capital investments made in 2009 should be subject to a 3% royalty rate until the capital is recovered. 2010 investments subject to a 5% rate, etc..., until 2016 when the royalty rate becomes a sstandard 20%. Of course the oil companies are going to pour domm and gloom on the prospects of this change. It impacts their bottom line. They will also say that oil sands investment is more expensive than traditional oil recovery. They even have the economic clout to make it painful for the economy for a couple of years. However, we need to realize that the oil in Alberta is higher value oil than they can obtain oversees. This is a stable democratic economy, run under common law, where they oil can be piped to the US markets, not even needing to be loaded into tanks. All of these points have economic value that should be paid for. The original royalty holiday was put in place to stimulate the Alberta economy. It is stimulated. It is overstimulated to the point that when we talk of doing the value added refining in Alberta, we can't argue that point because we can't staff the contruction projects, let alone new permanent plants. However, construction is still a temporary economic benefits, even if it is a strong one. A refinery with a 50 year life has ongoing economic benefits. Phase it in slowly, but make the change. |
| RRE1412 |
Yes I work in the oil industry and I do OK, thank you. But I've also been affected when money is stopped at the blink of an eye - and have been layed off. To not grandfather existing agreements is unbelievable. All previous royalty agreemnets should be honored. The extremely regressive severence tax on oil sands should make any right-thinking person shudder. This is to be expected from the totalitarian Liberals but should not be on the table. Finally, use the correct data!!! Costs are significantly higher than the report used. Money will funnel away from this province so quick Premier Ed won't have time to jump out of his combine before all of the drill rigs are shut down. Wake up! You have a spending problem (a big one at that!! ) not a revenue problem thank you |
| RRE1413 |
I DO NOT SUPPORT THE RECOMMENDATiONS OF THE ROYALTY REPORT. Adopting the royalty report will most definitely put the 'Alberta advantage' at risk. A responsible government should be protecting our future -- not putting it at risk or jepardizing it in any way |
| RRE1414 |
I am in disbelif of what our gouvernment is asking from our oil companies. It is my understanding that a Panel of only a few people have come to this conclusion and the Oil Companies have only been given a meer 10 minutes of time for them to discuss their position with you. Yes, The oil companies are willing to increase royalties, but at your staggering percentage it will not be viable for them to remain in business at their present capacity. Do you not see what the downfall from this will be. We are the richest province in Canada, and the Oil companies have been a great part of our success. At present I know of one company, CNRL, who pay now in access of 900 billion dollars in royalties to the gouvernment. each year. With them having to downsize and pull out of drilling new wells that would bring more revenue to our province, you will be forcing their hand and they will have no choice but to go elsewhere. It will be like a snowball effect. Now instead of paying 900 billion they may only be paying 600 billion a year, and as time passes by the n umbers will become smaller. Thus, Alberta will be losing money, and alot of money from Majoy Oil Companies. This will trickle down into our economy. People will lose their homes, thousands upon thousands of jobs will be lost. People will have no choice but to declare bankrupcy. Car dealerships will struggle, large warehouse distributors will struggle, small business owners will be closing their doors. Oil Companies sponsor alot of community events, which will suffer as well. Sports in Alberta will change as we know it. Many Oil companies sponsor hockey teams, football teams, athletes in all sports in Alberta. They sponsor schools with new computers and books. The hospilitality industry with their hotels will be empty. Many will have to close their doors. The entertainment industry will be up against a wall with no patrons. The downfall of this decision will put our province into a depression. People will be leaving the province because of no work. It will affect educational institutions with their enrollments in oil and gas engineering programs and related studies. I just cannot believe a small panel of people are going to be allowed with our Alberta Government to do something as horrific as this to it's people. I do believe the general public are not aware of this result, because no one is telling them, nor do they realize how important and vital the Oil industry is to ALL Albertans. With their royalities do we not build better roads and better schools. As it is now, parents in some areas have to buy paper for their schools because the gouvernment funds for education just are not enough. You people need to pay ATTENTION and listen to our Oil companies. A decision like this, with such magnatude takes a hell of alot more dicussion and research then just a panel of 5 people. I don't see you sitting down with anyone in reference to this matter and your making this ruling and judgement with ill to no understanding of what is at stake here. It is CRITICAL that more attention need to be put into this matter. This decision as it stands now, will cripple Alberta's economy and it's people. My God, PAY ATTENTION. from a concerned Albertan, concerned about the future and the future on our children. |
| RRE1415 |
Hopefully the government will stand up to the oil companies on behalf of the Albertans and will implement the FULL recommendations of the royalty review report. The proposed by the panel changes are already a compromise, therefore nothing less than full implementation is required. The decision about royalties that oil and gas companies pay for OUR resources is a test for this government. If you fail, you will pay the price. Also the unions will be watching you, the spring may be hot in Alberta. |
| RRE1416 |
Concerned Citizen and Homeowner I support the concept of reviews like the Royalty Review. There does need to be a balance between what the owners of the mineral asset receive and what those who take the risk and spend the capital to develop it get. There are some common sense flaws with the report and if implemented in full, the report could lead to unintended harmful consequences. The royalty report fails to account for the high cost of operating in the Alberta basin relative to other basins in the world where discoveries are much larger and the cost of doing business are cheaper. Industry makes its future investment decisions on return on investment. The Royalty Report will hamper conventional E&P exploration and drilling as companies will spend their cap ex budgets in other jurisdictions where risk adjusted rates of return of return are higher. This is what is in the best interest of company shareholders and the executives of companies are driven by profit and maximizing share prices. Albertan's are at risk if the Royalty Report is enacted in full form. The reduction of oil and gas companies spending (reinvesting) in Alberta will cause a slowdown in economic activity that will directly and indirectly cost hard working people their jobs, hinder rural communities and their tax bases, alienate the international investment community and in doing so - disrupt the entire Alberta economy. The recent real estate run-up in the province has caused regular people to move into more expensive homes and incurred larger mortgages to do so. Those who have not moved have changed their spending habits as their newfound wealth has allowed for more consumption now. A deep cut in oil industry spending and the following economic decline will cause citizens property values to decline significantly. There will be a derth of buyers as the oil and gas buck affects a large cross section of the provice. People's home equity and net worth will go down significantly and they will subsequently alter their spending decisions, furthering the economic downturn, along with all other business not even related to the oil sector. In general, increasing the royalty take with higher commodity prices is fair and people can easily understand this concept. At today’s gas price drilling activity is significantly muted as the economic of spending the money do not justify doing so on most wells. The bulk of Alberta’s conventional drilling and recompletions is on gas wells. The government should encourage not discourage industry from investing in this resource or both the royalty pie and provincial economic pie will shrink. The treatment of oil sands royalties is different. These projects will remain economic under a higher royalty rate, although there is a limit for thier viability as well. |
| RRE1417 |
It is beneficial for the majority of the public to carry on higher royalty taxes instead of keeping the same rate as the oil price is so high that it is also a good method to slow the oil sand project down a little bit in order to keep a long term growth. Thanks. |
| RRE1418 |
To Whom it My Concern: The Alberta Royalty Review Panel (ARRP) had incorrectly framed their review purely in terms of percent shares of net profit by Alberta and the Industry. They should have framed it in terms of risk and reward. The party that takes the bigger risk would receive the bigger reward. Sadly, ARRP relied on [Information Removed]technical analyses, who had also failed to recognize this fundamental issue, not to mention all the technical errors in his model. If Alberta wants a bigger share of profit, it should be willing to take a bigger share of risks. Therefore, Alberta should reject ARRP's recommendations as incorrectly formulated. It should instruct the Department of Energy to redo the review which should be framed in terms of proper sharing of risks and rewards. [Information Removed] |
| RRE1419 |
As a self employed consultant I feel that if the panels recomnedations are adopted by the province it adversely affect my way of life. I rely heavily on the shallow gas industry in southern Ab. Any decisions to suspend future exploration in this area by the major producers would be unfortunate to say the least. Unless you are involved in this industry you have no idea how many families depend on present and future developement. I beg this government (who I supported) to not adopt the panels policies and review this issue in further detail.Thank you |
| RRE1420 |
I have been working in the oil industry for the last 34 years with most of it on the drilling side. I have seen the huge changes in the industry with the efficiency in the drilling of their wells. We are drilling wells 60 to 70% faster today then we were 15 years ago. We initiated the horizontal drilling technology here in Western Canada allowing far more production out of one well today then was possible 15 years ago out of several vertical wells. The costs and time of drilling these wells per meter has dropped substantially. I sign the tickets and I don’t see the huge increases in drilling these wells as some of these companies have suggested. In fact the day rate for many of the services has dropped. I believe a lot of their high costs were brought upon themselves in the buying of the leases. As well the exchange in the dollar is not in their favor today here in Canada on the exporting of the oil and gas. They will put their spin on what they want us to hear and not state all of the facts as they are. They complain about the associated environmental and health and safety costs are making it difficult to operate here. Are they saying that they will go elsewhere where they don’t have to be concerned about the environment and health and safety takes a back seat? I would suggest that we insure that we are aligned with the Global economy as far as the taxes are concerned. Don't let the oil companies intimidate us with threats of pulling out of Alberta and promises of gloom and doom. For the last year and half the drilling side has been on a down turn as reported on the CAODC web site and that certainly doesn’t appear to be reversing itself in the near future. If these companies with the multibillion dollar profits each quarter feel that it is more profitable to take their operation into a 3rd world county and contaminate their environments and not implement “ Best Practices” as far as Health and Safety, then let them fill their boots. But it is unfortunate that the negative impact on the environment and the subpar health and safety issues will be absorbed by these 3rd world and developing nations until they are in a position to stand up and fight back. In all honesty they may reallocate some of their funding to drill elsewhere for the short term. They do recognize the fact that they need to spread their risk globally and Alberta is low risk compared to dealing with the likes of Venezuela, Russia and many other counties around the world. They won’t go far and they won’t go for long and they will be back. Mean while back here in Alberta the oil will still be here for our children and no one is shooting at you when it is time to return to work in our industry. With housing prices and the cost of living here in Alberta being at record levels, we do need a correction to get ourselves back on track and get some of the prices back under control. Yes I realize that there will be a few people who will suffer some economic hard ship and we will need to be ready to help those few. I know, I have been there and back. On another note I don’t support the idea of sending our Bitumen to the USA to be refined. We are shipping jobs not only out of the province but out of our county. Keep the refining here. Sincerely [Information Removed] |
| RRE1421 |
One basic principle of the Panel’s report is that it is the ‘people’s oil’ and we must maximize the amount that the people, through the hands of the government, take of that oil through a royalty to ensure that Albertan’s get their ‘fair share’. I do not think that anyone disagrees that it is the ‘people’s oil’ however; the view that the best way to retain the greatest portion of this asset for the people by charging the most you can for it is disingenuous. The real topic of this debate should be to ensure that Albertans get the most return from their oil and gas reserve asset. Therefore the focus should be not on getting the best possible percentage take from the oil that is actually produced, but rather ensure that the process with which the oil is produced provides the greatest return to Albertans. This return comes in the form of not only royalties, but also in provincial income taxes paid by oil companies, their employees, their customers, their customer’s employees, their suppliers, their suppliers employees, etc...... There are too many spin-offs in economic activity to mention from the initial dollar spent in the search for hydrocarbons. Thought of in this light, the effects of the capital expenditure dollars that do not get spent by the Oil & Gas companies, due to a change in the royalty regime, could become quite severe for all Albertans. While several oil and gas producers have tried to exemplify these effects, and their desire not to inflict them, I fear that the default reaction to this by many will be that it is just another example of ‘big oil companies trying to pressure the government into backing down from getting a fair share of the resource for the people’. The fact is, capital is mobile and it can be moved to another jurisdiction to be spent. Alberta is a great example of this. Through the current royalty regime and , until recently, perceived safety of investing in this province, Alberta has managed to attract hundreds of billions of dollars of investment from outside this province and country. Alberta drew this capital from other jurisdictions by using their economic regime to ensure that it was a more attractive place for both hydrocarbon and other types of investment capital to this province. As easily as this capital flowed into Alberta, however, it can flow away. While there are still areas of Alberta that will attract investment dollars even if the Panel’s report is implemented, the question that must be thoroughly considered is whether or not it is worth risking tens of billions of new investment dollars into the province each year in the attempt to take another two billion dollars in direct royalty payments out? The answer to the question should be obvious enough. However, one must look at other avenues of government income, derived from the people’s Oil & Gas assets, that are at risk falling if oil & gas company’s capital spending is reduced. One of the more glaring examples is the total amount of money raised at provincial land sales over the past few years. 2006 record take of almost three and a half billion dollars is another example of how a robust hydrocarbon investment environment can increase the return that the people are getting for allowing their Oil and Gas reserves to be produced. The panel argued that the land sale revenues we too variable to be included. However; this again appears disingenuous, as I’m sure that it was easier to just remove that factor of Albertans return on their asset rather than explaining why in 2006 land sales were equal to 175% of that which they are now trying to take in additional royalty payments. Doesn’t it also seem odd that they were not willing to include land sale revenue in their calculations because of volatility, however they were willing to include a US Dollar/Canadian Dollar foreign exchange estimate, which I’m sure every Albertan would argue has been anything but stable over the past few years. While 2006 was a record year for land sales and should not be taken as a normal event, it does highlight how vulnerable Alberta’s return on its Oil and Gas assets is to a robust investment environment. The conventional oil and gas investment climate has been much weaker in 2007 and land sale prices have fallen accordingly. This weakness is due largely in part to the weakness in Natural Gas prices. However, any large increase in royalties could have an equally chilling effect on the investment climate and, should this be the case, would produce a very similar effect on land sales what weak Natural Gas prices have done in 2007. The potentially lower land sale revenue that would occur from a large royalty increase begets the question whether enforcing changes that could potentially reduce Albertans land sale revenues in the billions of dollars helps Albertans get their ‘fair share’? It is quite easy to argue that the Panel’s report, as presented, is marred with intellectual dishonesty or inaccuracies. While everyone has a natural bias, and these points have been stated in many articles and opinions, I think that is it worthwhile to ask again why someone writing a fact finding report would: - use an .88 Canadian dollar, when current reality would have that closer parity and as of recent days greater than parity? - use outdated cost data for the oil sands when there is plenty of evidence of the escalating cost of such projects? - use a discount to WTI as a pricing measurement instrument when most of the oil produced in Alberta is not even close to the quality of 42 degree API WTI as well as addition an additional complication of foreign exchange? (The inaccuracy of this measure is exacerbated by the aforementioned Canadian Dollar estimate which would artificially raise perceived revenues in Canadian dollars) The answer that is hard to avoid concluding is that the Panel wished to make the Oil & Gas Companies appear more profitable than they currently are to justify raising their burden in the form of increased royalty rates. While I have seen and heard this Panel several times referred to as an ‘expert panel’, I question whether any expert would either unintentionally get these facts wrong or intentionally skew the data to serve their own agenda. I am not sure which of these two scenarios is correct, nor am I sure which one is worse. The fact remains that cost are going higher, but the main benefactor or these increased costs for the Oil & Gas Producers is Albertans. One of the largest cost increases that these companies have, and are facing, is labour costs. The evidence of the benefit that these higher wage costs are providing to Albertans is apparent when one looks at the rising house prices and the retail and construction booms. Using the people of Alberta’s asset to create an environment that has elevated fixed asset prices and wages and salaries many multiples higher than two billion dollars appears to be a good way of enabling Alberta to get their fair share. There are, however, Albertans who’s wages are not directly influenced, or less influenced, by levels of Oil & Gas Activity. I am sure that there is the feeling not getting their fair share of the present prosperity that most Albertans are now enjoying . To these people, the populist pitch of ‘you’re not getting your fair share’ has a nice ring to it. They may feel better about themselves if taxes are raised on the oil companies, however there is a good chance that they would suffer as well, as the economy contracts from its currently boisterous pace. While it is true that the Albertan feeling left behind would have less to lose than anyone involved in the Oil & Gas Business, the 80’s evidenced that an economic contraction hurts everyone, except bankruptcy lawyers. If the hidden motivation of this panel is to slow the economy down so as to help some in society to catch-up, then their suggestions are the wrong tool for the job. The use of tax policy or spending, while perhaps politically more difficult to implement are much better tools than what is being proposed by the panel. In conclusion, the focus of any royalty review should be the use of the Oil and Gas reserves in the ground, which belong to Albertans, to create the greatest economic present value benefit to Albertans. There is not a direct correlation between a higher rate of royalties charged on hydrocarbons produced and a greater welfare for the Albertans that own these reserves. In fact, there is plenty of evidence to suggest that the exact opposite is true. Wages, housing prices, the number of people employed and the amount of businesses that have expanded, or have been created, have all increased over the last several years. This is the real wealth that the access to Albertan’s hydrocarbon reserves have created as well as an expanded income tax base that will help future government service provisions. Many Albertans are being told that taking more royalties is their way to get more. Again, there are many more tools that are more effective in helping this process than those proposed by the royalty review panel. |
| RRE1422 |
Did the oil and gas companies participate in the royalty review process? I think they did, and gave it their best. They can now SHUT UP. These are OUR natural resources, not theirs. The proposed 20% increase in royalties should be approved, and the entire sum tossed into the Heritage Fund. |
| RRE1423 |
I wish to object to the alta government if they decide to implement the 20 % taxes tot he oilfield corporations. |
| RRE1424 |
I was disappointed that the panel decided to place Alberta in the bottom half of class! Why would we want to value our resources less than most other jurisdictions?! A salesperson who sold his company’s cars for less than the market value would not/should not have a successful career. With an election looming I would not want to be the party trying to justify giving away the province’s future at bargain basement prices. I am equally concerned that the overly cautious increase will be further compromised downwards by the government. Twenty percent is already far too little. If the oil multinationals feel their bottom lines are no longer attractive enough to justify remaining in Alberta I suggest that the oil will do just fine sitting in the ground as its value will only increase. We might just find other investors who are willing to pay a fair share or – heaven forbid – us Albertans might just realize that we can develop our resources ourselves. We could even keep some the value added petrochemical processing chain in Alberta! |
| RRE1425 |
Premier Stelmach: Don't sell out Alberta's resources. I support the recommendations the Royalty report. |
| RRE1426 |
As an Albertan I do not support any changes to the present Royalty rates that oil or gas producers pay. A change now will result in projects being cancelled, job loses, and a negative impact to all. The fact that large oil and gas companies are very visual and this makes them an easy target for people who don't understand the full economics of the industry. The message I have been hearing is that the hot climate needs to be regulated by the government, and the tool is higher royalties. Nonsense, the market place is what should regulate what is a viable project. Recent changes in the market place already make Alberta a harder place to do business. These are 1) High Canadian dollar against the US dollar make our exports less valuable. 2) Construction cost of projects has increased which already shelfed a number of proposd projects. On Oct 24th stay the present course......no changes. [Information Removed] |
| RRE1427 |
Alberta is doing fine without the extra royalties. Please don't put us in the poor house like the Feds did in the 80's |
| RRE1428 |
Yes, the royalty review recommendations should be implemented immediately. |
| RRE1429 |
I believe that the proposed royalty increase of 20% is more then fair. For too long have the big oil companies been left making nothing but huge profits. At least with this, Albertans can see a kick back from our valuable resources. In closing, I agree with the 20% royalty increase. |
| RRE1430 |
Hello Premier [Information Removed]Stelmach! |
| RRE1431 |
It is about time the oil company share to weath with the rest of the common albertian.Mony could be spent on roads and education. |
| RRE1432 |
hey Ed! pay Albertans their fair share and stop dolling out the corporate welfare. These companies are making record profits at the expense of Albertans and what the royalty review is asking for is not even that big a deal. It will not destroy the Alberta advantage, in fact it will actually give Albertans an advantage, one that will support future generations and allow for our critical environmental and social programs to actually have funding and be sucessful. It is a travesty that the richest province in Canada has a crumbling health care system, housing issues and poverty issues, while the multinationals are laughing all the way to the bank. Upping the royalties means that we Albertans will get our fair share, and we are still not asking for the level most countries get in the world. Our oil isnt going anywhere and if the current companies dont want to play fair and want to milk Albertans dry, there are other companies who are willing to do buisness on our terms, and the oil will only increase in value. Please do the right thing - stand up for Albertans and do not crumble, like Klein did, to the corporations. The people will thank you for it! [Information Removed], |
| RRE1433 |
PLEASE DO NOT RAISE THE ROYALTY PERTENAGE, IT WILL HURT ALOT OF PEOPLE, THE MONEY THAT IS MADE IN ALBERTA IS SPENT AND HELPS EVERYONE ALL OVER THE COUNTRY!!!!!!!!!!!!!!!!!!!!!!!!!!DO NOT DO IT!!!!!!!!!!!!!!!!! |
| RRE1434 |
It is time that Albertan's started getting what they rightfully deserve from the reserves that sit in our soil. I, as an Albertan for over 30 years, strongly support an increase in Royalty Rates. After every boom comes a cycle of layoffs. The demonstration by the oil company employees is simply the large companies frightening their employees to demonstrate over what will naturally follow a boom. |
| RRE1435 |
iMPLIMENT THE COMPLETE RECOMMENDATIONS OF THE PANEL. QUIT PROVIDING ACESS TO the Energy companies to Government members in private to lobby against the panel recommendations. Go after the energy companies for the uncollected monies due as outlined in the report provided by Fred Dunn with the same zeal that the government went after the widows & AISH recipients when they were "overpaid" |
| RRE1436 |
I work in the Oil & Gas industry in Alberta, and I must say, the review panel clearly has no idea of the ramifications that would result from their proposed 20 percent 'rake'. This province is now debt free and better off than its ever been with seemingly no thanks for the 'blood, sweat, and tears' I've given. There is this illusion for some that the money simply falls from the sky for oilpatch workers. I'll tell you that there are huge sacrifices. I have a two year-old daughter at home who adores me, and I hardly see her. I sacrifice time with her in order to try and get ahead a little bit. It's a choice our family makes, and it is a very hard one, but its also a responsible one. This is the wrong dog to stand up to. Trust me.... Saskatchewan and British Columbia are licking their lips right now, praying for the royalty review to get pushed through and we all know why. If your bluffing, believe me, you'll get called. I can speak for myself and others when I say, my loyalty is to an oilfield company who treats me fairly,( and I will follow them to another province if need be), not to a provincial appointed panel who thinks they can walk in and strong-arm a huge industry that gave them a backbone to begin with. Take what you always take, but do not get greedy. Your starting to overbill your best customer. |
| RRE1437 |
Hello, I am writing to communicate to you my view that I am strongly in disagreement with the AB royalty review proposal the Stelmach government is hoping to deliver to AB residents. Thank you. [Information Removed] |
| RRE1438 |
Mr. Premier: I would like to say to you that increasing royalty taxes on the oil and gas producers operating in this province will have a serious impact on our business. We are a small electrical contractor who employ about fifty people. Our business is maintaining drilling rigs, which as you already know has slowed do to weak gas prices. The majority of drilling in this province is for gas not oil. The slow down has already impacted our revenues and an increased tax will again reduce that. The long term effect on the oil producer ( ie. [Information Removed]and many others) will slow the rate that these projects move forward. The life cycle of oil and gas will not be that long and we should take advantage of it NOW. I believe an alternate envirormently saver energy supply will supply be inplace within the next thirty years. Please do not raise royalty rates and kill this provinces current economic properity. [Information Removed] Edmonton Alberta. |
| RRE1439 |
It is my opinion we are headed to the 80's again in Alberta. If you will recall it was one of the worse set backs in our history. We all lost millions. My income has come to a halt. Jobs we had are now being canceled, put on hold for two years, or longer. My pockets and Albertan's pockets are not that deep. Alberta is now prosperious why do we need more? We say we have the resources, where will they go. Guess what they can leave in a heart beat, and come back when the price is right. In the mean time how many of us will be left. It is my opinion we should be leaving well enough alone. It is time to use our thinking process and get in the real world. We should get back to the days when we delveloped the manufacturing and processing. Why not make our much needed money there. Why is all of this going south or out of Alberta? [Information Removed] |
| RRE1440 |
Our government cannot allow itself to be bullied by the likes of [Information Removed]. We need to cool this ridiculous economy and that might be the best way to do it. Do they think someone else won't want the oil/gas? Wouldn't hurt to leave some for the next generation. |
| RRE1441 |
Do NOT accept the Royalty Review Panel. Do Not. Do Not |
| RRE1442 |
I read through the royalty report and and thoroughly disgusted by not only how one-sided it is, but also how incohrent and hard to follow it is. So much of it doesn't even make sense. It throws out statements that the public will believe as fact, but does not provide adequeate back-up to justify the claims. Of major concern are the costs at which the panel believes the Natural Gas insustry can produce at - where the heck is this data coming from, it doesn't even make sense? If you want the real cost data from a real gas producer in Alberta - which has been audited, by the way - give me an email and I will gladly provide the actual, current correct cost data. The fact is, that if these royalties are imposed on the natural gas business in this province you will be causing a loss on each and every gas molecule the producer gets out of the rgound (at current AECO prices - $5/mcf). Wyat producer is going to stick around and drill wells at those prices? How many lay-offs will follow? How many workers will not be able to afford the major mortgages they have? How many people will lost money when their homes become devalued, or lose their homes because they can't afford the mortgages. This report is the most irresponsible thing I have seen the government com out with in years. It has helped to dishearten my faith in the government that I used to trust. I agree the royalties needed to be reviewed. but next time can you lpease engage people that have any idea what they are doing to do it? What is disaster. |
| RRE1443 |
I am not in favor of this proposal because it will result in thousands of Albertans loosing thier jobs. This in turn will cripple our Alberta economy, people will loose thier homes and the social impact will be enormous. The report is particulariliy hard on our natural gas industry. The Albertans in the Grande Prairie will be particularily hard hit as gas well drilling can not be sustained under the recommendations of this report. Six year payouts on capital investment can be expected on the average GP area gas well which means these wells are nearly uneconomic by the time they payout. Why would any company take this risk? Well, they simply won't, so all our expertice will be for not as our experienced workers leave the industry for good and we are left with nobody left to pick up the pieces. It will take years to repair the damage if at some point sanity returns to government. Likely after your governemnt is voted out of office for this totaly obsene blunder. |
| RRE1444 |
I understand the governments side of the Royaly Review, but as an Employee in the Oil and Gas Sector I would also like to be able to have job to go to, to support my family, what the government does not seem to acknowledge is the amount of people who will lose their Jobs, that work in the Oil and Gas Sector. If the company are going to lose money the staff are going to lose jobs. |
| RRE1445 |
Small town thinking !!!! Does our premier want to be remebered as the premier who KILLED ...... ALBERTA . I am very familiar with our premiers home riding . I have weighed both sides , I realize the impact the decision will have ( partenship / loyalties must be put aside) . The premier will take popularity hits from both sides . However to proceed with the proposed royalty hike WILL be suicide to Alberta 's economy . History .will repeat itself if royalties are allowed to line the pockets of an already " Profitable " Alberta provincial government . The 80's - do you remember . KILLED THE OILPATCH . Times change , GREED . IS THIS WHAT THE ALBERTA PROVINCIAL GOVERNMENT IS ABOUT ? I would hope that the leaders in our province reflect what the impact this boom has allowed our province and the west a LONG awaited ( remember the 80's) chance to finally recover from a 20 year drought . JOB'S ..... JOB'S ..... JOB'S one way to slow down the economy . KILL THE OILPATCH! Greed. DO THIS PROVINCIAL GOVERNMENT NEED MORE REVENUES ?. GIVE INDUSTRY IN ALBERTA A CHANCE LAST TIME THIS PROVINCE WAS SLOW < ALOT OF PEOPLE MOVED DOWN EAST . I DID !!!! ALBERTA MUST LEAD . ALLOW INDUSTY TO SEE ALBERTA AS THE PREMIER PLACE TO DO BUSINESS. IT WAS THEM IN THE 1ST PLACE , THAT HAVE GIVEN US THIS EXPANSION / BOOM . GIVE THEM A BREAK , WORK WITH THEM . DON'T GET GREEDY . HOW MUCH MORE DO YOU WANT ! SMALL TOWN NEEDS TO GO BIG TOWN THINKING. P.S . VEGREVILLE HAS SEEN A IMPACT OF ALBERTA'S BOOM . P.P.S DON'T SHUT US DOWN . [Information Removed] |
| RRE1446 |
I am a bit concerned that we are trying to bite off a bigger chunk all at once here. I agree more royalties need to be paid out by these companies, however, not such a large percent right away. It is a balance of keeping the companies interested in further economic development, and making sure we Albertians are benifiting as well. I believe it is time for a change, just not drastic change. Keep up the good work, as I believe we are heading in the right direction here. |
| RRE1447 |
I believe that if the oil /gas industry wants more profit then they should make every aspect of their industry more productive. This "full throttle" mentality is extremely wasteful and input costs could be reduced. Alberta's non-renewable resources do not need to be exploited at break-neck speed. The current run away growth is not necessarily a good thing. I believe that there is a huge social cost to the boom that we are experiencing. Finally, there is also an environmental cost that needs to be addressed in terms of oil/gas production. At some point, Albertans will be faced with the reality of the environmental impact and there should be funds in place to deal with these issues. In short, stick to your guns and make the oil /gas companies pay. Than you. |
| RRE1448 |
In light of the purposed Royalty review I feel that the impact will be beyond comprehension. The statment is taht it is for the people of Alberta, They way that this was presented to the public I feel leads to misconception and the pot of Gold that is thought to be unravelled. You are correct in stating it will effect the people of Albera, the effect will be negitive and the Provence stands to loose more than to gain. Ant slow down in the industy will result in Job loss, reduced income and inturn will result in people loosing property, housing, and small bussiness failure. Please concider the loss to the Provence with personal taxes, Social program burden, loss of Capital reinvestment by industry and future Royalty reduction. We need to maintaine a healthy economic Provence and I feel that this will indeed have an impact over all. I think that the other Provences that hold reservers and ecsatic with the thought that the industry is going to move from Alberta to there areas to execute there Capital plans in the future as will happen. In closing I have been Pary menber in the past and have been approached in recent to both renew and give a Donation to support a possble up comming election. At this point I will not do either as I feel that the integrity of the Party is for me in question. Please do the right thing and keep Alberta intact, concider what is truly the best for thing people. |
| RRE1449 |
If the royalty review is adopted, I can just imagine a repeat of the horrors the National Energy Program had on this province back in the 1980's. |
| RRE1450 |
Thank you for this opportunity. I am glad this royalty review was finally undertaken. It seems we have been giving our resources away. 2 billion dollars a year for how many years? Who is responsible for this? This dwarfs the Liberal sponsarship scandal. What kind of Albertan would have allowed this to happen? I want answers! I want accountability!! NOW! |
| RRE1451 |
Raise royalties! These oil companies our taking what belongs to us and not giving us a fair return! Raise royalties 20% |
| RRE1452 |
I do not support the potential increase in royalties. I believe that our province is booming because of our business friendly approach. With the ever increasing escallation of costs for oilsands producers, very soon Alberta is going to be non-compeditive and increasing royalties will not help this. Don't kill the golden goose. [Information Removed] |
| RRE1453 |
I am working at the CNRL Horizon Oils Sands Project and I would prefer to remain employed by this company. I have a family to support and the same applies for thousands of other employees and contractors. The company is taking good care of us, we pay our taxes and we would like it to remain this way. The Royalty Review Panel's recommendations don't support the current situation and I urge you to maintain the status quo. |
| RRE1454 |
I would like to add our support for the recommendations as proposed by the Royalty Review Report which upon reading seems well thought out and fair in it's approach. It has been interesting listening to "Big Oil" talking about how this will hurt them and that they will be looking elsewhere to invest. If Venezuela looks more attractive to them, we wish them well. Where else in the world is there a more sucre safe area to invest and work? Some will leave but our economy is so overheated a slow down would likely be in everyone's best interest. Inflation is eating up most of the advantage that this oil boom has brought to the province. One needs to look no further than the headlines in any paper over the past year to see the problems brought on by an over extended economy. What we would like to add to the recommendations proposed would be the following points. (1) The Fort McMurrey Oil Sands area is a unique area with one real industry, oil. We would propose an immediate $ 1.00 per barrel sur-tax applied to every barrel of oil produced from the Oil Sands to be placed in a dedicated fund to build and upgrade the infrastructure required in and around the Fort McMurrey area including the four lane highway being built there as well as hospitals, schools and social serves facilities. The oil companies surely could not complain as they will pass alone the costs to the consumers who for the most part will be the United States. (2) Bitumen Pricing - A similar sur-tax of greater value to be applied immediately to all Bitumen exported outside of Canada. This could be eliminated only after a fair "bitumen valuation methodology" is in place and applied as per the 30 June 2008 recommendations of the report. This is the time for Premier Ed Stelmach and his government to take a leadership role and make the right changes for the citizens of Alberta. Thank you for your time, [Information Removed] |
| RRE1455 |
I am very confused as to why the Government of Alberta requires an even larger piece of the pie when it is already one of the wealthiest political groups in the world? |
| RRE1456 |
Adopt the recommendations of the Royalty Review Report. |
| RRE1457 |
Why this government is raising taxes against Oil & Gas companies that already provide this province with so much wealth is beyond comprehension. The reports that are based on this increase are flawed to begin with. This will create unemployment for so many Albertan's that have worked years in the Oil & Gas field to create wealth for this province. Please rethink your strategy!! |
| RRE1458 |
I am very much opposed to giving the oil cartel any "perks", be it tax relief, relief while a project is getting online, or at any point in the process of their removing Alberta oil from the province. I look at the vast profits being made by members of the oil cartel and feel that most of that profit belongs to us in Alberta. Please do not disappoint a great number of Albertans by caving in to the oil cartels. If it means a slowing down of the Alberta/Edmonton economy, I'm quite in favour of that. One of my very great concerns is that we (Alberta) are not forward-looking enough from an ecological point of view. While I do not want to give oil companies any further free ride in Alberta vis-a-vis charges/royalties, I also would like to see more onus put on oil companies (and every other company/person in Alberta) to CLEAN UP AFTER THEMSELVES. Clean air, clean water, no environmental destruction (including a husbanding of all bur specifically water resources) should be a given. What do you plan to do about this with the oil cartel as well as the new plants being considered for Fort Saskatchewan and Strathcona County? Please confirm that environmental concerns form a large part of your decision making process. |
| RRE1459 |
I have children you [Information Removed] |
| RRE1460 |
For background purposes, I am a businessman in Calgary. I run an estate and financial planning business (30+years), have a 14 year old child, have lived in the same home for over 20 years and been a resident of Alberta for more than 45 years. I have seen many business cycles over my career and seen the effects of government policy on our Alberta economy - most notably the NEP. The proposals in the Royalty Report, the title of which implies exploitation and greed by the oil industry in its reference to "fair share" and sets the stage for a biased outcome, are potentially damaging to our province in multiple ways. 1. Retroactivity of changes - truly, this is among the most dangerous of all the proposals. If Alberta imposes retrocative changes to previously made deals, the messge to the world is that we cannot be trusted, lack integrity and ought to be avoided. Our reputation for stability will be forever tarnished. We will give up any Advantage we may believe we possess as a good place to do business. 2. Tax increases at a time when cutbacks are endemic - this is a delicate time in the oil and gas sector, in particular the gas sector. A change in taxation will only reduce activity in the patch further thus reducing employment, causing financial hardship to Albertans everywhere and especially in rural Alberta. It will change the economics for E&P companies and the spill over to the broad economy will be considerable. 3. An extra $2 Billion in Royalties or a Decline in other revenues far beyond that figure? - the industry affects all aspects of our economy and government revenue. The spillover into all sectors will undoubtedly be negative. Yes royalties may rise but at what price elsewhere (for example, the hundreds of millions of provincial revenue that come in through land sales that will decline if the industry contracts and investment dollars leave the province.) 4. Vision - what will our government do with the money that it drains from the industry? Perhaps it can provide support to Albertans whose jobs and livelihoods have been lost or harmed when the industry contracts? Surley it would be prudent to "begin with the end in mind". What vision do you have for the province and how will increasing royalties, slowing the oil and gas industry down, harming our international reputation for stability contribute to this vision? (I might also add that more money to the province does not translate to more fairness to Albertans. For years, budget surpluses have been huge and yet their is a singular lack of vision, purpose and goals articulated by government. More spending, "ralphbucks", rapid growth in the size of government and a perception of real wastefulness seems to be the legacy of more government revenues. Perhaps if the government were good stewards of our money, we might feel better about it increasing its take from the oil industry. To date, I see no evidence of that and would rather that the money stays with businesses that make payrolls, employ Albertans, buy goods and services from local businesses, pay dividends to shareholders and pensioners and take risks that contribute to our success. More money in the hands of government is not in the best interests of the people I have observed. In fact the best government is the one with the least amount of money slashing around in its coffers because decisions about limited resources are always better than a cash rich regime, in my opinion!) It seems inevitable that royalties will be changed as a result of this poorly handled process. The political box that the government has put itself in with this report leaves very little choice. I hope that more careful thought will be given to the broad issues than simply assuming that full implementation of the report will have a benign affect on our economy and way of life. Alberta's economy and our reputation on the world stage is at stake. No matter how abundant our resources, our reputation will govern the value that can be obtained from them. |
| RRE1461 |
The proposed changes to Alberta's royalty program is coming at a very poor time. If these changes are implemented, the possiblity of causing enormous harm to Alberta's struggling natrual gas industry is very likely. The data which was used to make assumptions regarding the costs for developing natural gas in Alberta appear to flawed and this is leading to assumptions and proposals with far reaching economic ramifications. The money which the natural gas industry cycles into the Alberta economy is vital and the proposed royalty changes will alter that negatively, effecting the lives of all Albertans. Please consider your actions carefully, as following the recommendations of the royalty review committee could easily push Alberta into an economic tailspin equivalent to the National Energy Policy of the 1980's. |
| RRE1462 |
I do not believe with the current economic uncertainties that this is the proper time to change policy. Alberta is undergoing rapid development that is true but we are managing reasonably well. I believe the current climate is too volatile internationally and one not to be tampered with here. |
| RRE1463 |
I think the government is making a big mistake that is not only going to negatively affect the oil and gas industry but the rest of the economy in Alberta. It sounds to me like they don't have their facts straight and need to review the numbers again before making a decision. |
| RRE1464 |
To Whom It May Concern: Hello, my name is [Information Removed]. I think the Alberta Government is getting too greedy AGAIN. They are going to cut-off the hand that is feeding them. As far as the Royalty Review Panel goes: if they got out of their suit's and got off of their [Information Removed], TO ACTUALLY GO OUT TO THE OIL PATCH AND FIND OUT WHAT IS REALITY - THEY WOULD PROBABLY HURT THEMSELVES. It seems to me that if this ED STELMACH ALBERTA GOVERNMENT KNEW THE LORD'S PRAYER - THEY WOULD [Information Removed] ALSO. COME ELECTION TIME, HELL WILL FREEZE OVER AND THE DEVIL WILL BE PLAYING HICKEY FOR THE OILERS - BEFORE I AND THE REST OF THE REAL OIL PATCH WILL VOTE FOR THEM. [Information Removed] |
| RRE1465 |
please do as the royalty review comitee has asked. Raise royalties. |
| RRE1466 |
as an Albertian I feel that there has to be a change to the royalities HOWEVER you are doing it all wrong DO NOT up the royalities in a lump sum as you will throw the province into a recession. I feel If you bring Fort Mac Up to the rates received in the Peace Country then each year up the royalities an small % till you get them where you think they should be. IF you do them in a lump sum you will KIll Alberta and the people will be in big trouble as they will not be able to afford anything I Lived throught the 70's and it killed my life , marriage and having been a single mother of 4 young children (now young adults) I'm finally at a point where I do not have to work 3-4 jobs PLEASE DO NOT DO THIS TO OUR PROVINCE DO NOT DO THIS TO OUR YOUNG PROSPEROUS YOUTH ( the good working young) |
| RRE1467 |
Instead of the current confrontational approach, Alberta should be repositioning to a prudent cartaker role. Avoid upsetting past arrangements or recently implemented initiatives and find several compromise changes that can be immediately implemented. Then find a credible third party like a mutually respected expert that was involved in achieving the current UK royalty and tax situation and give them a mandate to ensure Alberta has a fair but dynamic, credible and stable royalty and tax regime. |
| RRE1468 |
Good day, I have personally worked in the oil and gas sector for about 6 years now. My career spans 25 years in total. In todays market it is increasingly difficult for companies to keep costs in line let alone find the people power needed to build and run facilities. Cost over runs are the norm. "Gouging" an industry that has put and kept Alberta a "Have" province is an unwise move indeed. I believe our government needs to look at royalties in the most fair manner possible. Oil and gas is our bread and butter. EVERYONE benefits from the royalties now collected.Lets not bite the hand that feeds us. Ed you have inherited a prosperous province in excellent financial health. You don't want to leave a legacy of the beginning of the end behind you. [Information Removed] |
| RRE1469 |
I have lived in Alberta for about 25 years.Most of those years have (except maybe the last 3) been financially challenging.Belt tightening years to get rid of debt and become a sustainable economy.I could have left for greener places,my wife is from Ontario, but I was attracted by the open for business type policies that existed.So we tuffed it out. I follow oil and gas and mining allot and when I saw the recommendations of the energy report I immediately thought Venezuela. I said to my wife,the Grande Prairie patch is already hurting badly and they want to hit it again.We will have to prepare to walk away from our house like so many did in the past. I admitt that I do not know the letter or detail of this report but I have been around long enough to know that this is socialist and trouble.I do agree with policies that would help to keep tar sands upgrading refining in Canada; rather then the wholesale shipping of heavy oils to the US, but I am afraid of policy makers that are financilly well off.We have all seen the subprime debacle in the US; we may be faced with our own self inflicted debacle here with this issue.If the jobs are gone so are the tax dollars from these our houses will likely follow and you may have to visit us in Ontario.[Information Removed] |
| RRE1470 |
I am a recent graduate from the University of Alberta and just starting in the industry. The recommendations from this act are based on skewed data. Having completed all 4 of my [Information Removed]work terms in the industry and now starting my career in industry this would cause a HUGE blow to upcoming projects, job opportunities and growth in our province. Please re-visit the data and hopefully we can come up with an alternative to the proposed actions. I work for a Trust company that has already been hit hard once this year and may not be able to take another hit. Thanks for your time [Information Removed] |
| RRE1471 |
I think that it is important that the Government realizes that oil and gas is a cyclical industry and that although times are good right now history has shown that there are also bad times. Back in the 1980's oil and gas companies were leaving Alberta. Do we want to start this process? Or have we already with the trust announcement last October? By going after the oil and gas industry, the Alberta Government puts Alberta's prosperous future in jeopardy. Alberta certainly is not hurting so there must be a "fair share" of income from the royalties. Premier Stalmach has said he is the man to do it....I hope it is not his legacy to see Alberta start to slide in prosperity. |
| RRE1472 |
Hi, I oppose to rasie the royalty as per the panel recommendations. Please do not kill the Alberta economy, Alberta's substainability of oil and gas industry, investment employments. [Information Removed] A deeply concerned Albertan |
| RRE1473 |
I have to admit, this review scares me. Do we want to revisit the 80's? Not to mention, the dollar at par has put pressure Industry while at the same time gas prices are low and gas storage levels are high. The fallout from implementing the recommendations would be astronomical. The average Joe / gov't sees the profits behind the big oil companies and wants a piece but that is not the answer. The conclusions drawn from the review are flawed. Don't do it. [Information Removed] |
| RRE1474 |
I would like for you to go ahead with the recommendations. |
| RRE1475 |
as a long-time resident of Fort McMurray, I'd like to offer my opinion on the royalty issue: raise royalties to the level where the oil companies operating in this region are compelled to pay their share of infrastructure costs, those costs include the money spent to support the community that supports the oil companies, better streets and highways to handle the increased traffic, better recreatonal facilities and low-income housing projects for workers in the service industries, (oil companies are paying out millions of dollars in living-out allowances that are the cause of high rents, let's force them to spent some of that money on low-income housing!) if an increase in royalties cause some oil companies to leave the region, LET THEM!, they're not taking the oil with them, a temporary slow-down would be welcome and would allow current infrastructure projects to catch up with the demands of the community, [Information Removed] |
| RRE1476 |
Well not understanding to much of this royalty issue and how it really works. I do understand that it is taking an effect on what myself and thousands of others are having to go through because of the shortness of work in the oilpatch. I am a 41 year old female who did not take advantage of the school system and now am in the oilpatch. A single mother of 4 children who got into the oilpatch because of the money that I could make. No help from the father because of course he is in the oilpatch also. And believe me working at Wal-Mart at minimum wage is not going to help me pay bills or keep my children in their sports all year round. I feel keeping my children busy keeps them out of mischief. Four children who all play hockey, two that play soccer and ball in the spring. One who competes in swimming all summer. Not only is it an expense for their sports but getting them there too all adds up. And proud to say that these children have the respect and give the respect to others. And my hopes are that my children continue on with their education and become decent human beings with an education that will keep them out of the oilpatch because we all know that it is not going to be here forever. As we may be seeing it sooner than expected. |
| RRE1477 |
You appointed a panel of people with appropriate and varying backgrounds for a badly needed royalty review. Congratulations! They have spoken clearly pointing out that Albertans, under Ralph Klein, have not, for years, been receiving their fair share of royalties. I am a lifelong Albertan and I expect appropriate healthcare, not rationed healthcare. I expect the best-in-the-country education funding to be made available to Albertans. I expect our crumbling infrastructure to be a thing of the past. I expect Albertans to have the best rapid transit systems that we can afford for our cities. Less cars means cleaner air for our children to breathe. Instead of continuing large cuts to seniors' housing and services, I expect Alberta's seniors to have the improvements suggested by the auditor general over a year ago which to date have only been implemented in miniscule amounts. With appropriate royalties, like other countries, Albertans can enjoy such benefits. The royalty review panel, which included a member of the oil industry, have spoken. I want Albertans to finally have their fair share of their own resources. Other countries are enjoying appropriate royalty revenues. Why not Albertans? |
| RRE1478 |
The report recommendations should be adopted in full. Not watered down, not taken in part. Our province needs to worry about tomorrow and not just development and more money today. Where will revenues come from our children and grandchildren if we continue to subsidize the oil and gas development to the levels we are. By having royalty structures below comparable jurisdictions around the world that is exactly what we are doing-subsidize mult-billion dolar profits, money that is gone to the people of this province forever. The report recommendations should be adopted in full. Finally, if the oil and gas companies hold true to their threats (which I find appalling and disgraceful given the profits they are making) would this not be a good thing for the province? If the explosive growth that is driving up infrastructure costs for individuals, small business, and the province moderate somewhat and achieve a more balanced steadier pace? Take a stand against the threats and do the right thing for the future of this province and its people. Oil and gas can afford to pay. They do it in other parts of the world and they can do it here. They know they can afford it and the threats about 'billions' lost are a ruse. The oil and gas in the ground belongs to the people of this province, not the oil and gas companies, and we are now saying (finally after years of letting them steal it) that we want our fair share. It is only a fair share. [Information Removed] |
| RRE1479 |
As a woman working in the Oil Industry for the last couple years, I guess I have cashed in on the "Alberta advantage". I guess that means, that with my $17.00 an hour, I have been able to maintain the rent in my home, (which increased this year by 300.00 a month,) my student loans, (by which my payments increased double a month according to my monthly income) been able to put gas in my car, (which raised to over 1.00 a liter this year). Are you kidding me? My $17.00 a hour gives me nothing left at the end of the month. My husband, who also works in this industry, has been sent to New York as there is no work here in Alberta. If we loose our jobs because if this royalty tax to our companies, we have nothing! Its hard enough trying to start a family today when your spouse has to work in another country just to be able to put a roof over your head and food in your stomach. Don't you think the people who work in this industry, have sacrificed enough by having to live apart? I bet you, whoever is reading this, gets to go home and see your spouse at the end of each day. The balance is this...the oil industry might pay more than your average job, but we sacrifice a lot more. And because of our sacrifices, Alberta boomed. Look at housing in Edmonton. Even with our "big fancy paycheques" we are STILL unable to afford a simple starter home! I suggest you reconsider this royalty tax of yours. All it is going to do is hurt the Albertans that have made Alberta what it is today. Sincerely, [Information Removed] |
| RRE1480 |
Are the Liberals running alberta now??? I was working as a derrick hand on the rigs in the early 80's.. Trudeau's policies killed the oil patch then, so i was forced to move and live in Oklahoma to continue to stay employed in the Petrolium industry. I am currantly a owner of a service company in Red Deer who also employs several people and families ... after surviving the oil patch all these years... now we have to deal with our own local government greed. I am currantly visiting US options for my company... if im forced to move again, it will be permanant.. as well as for any of my emploies i can take with me, this is the currant buzz and shared opinion in Red Deer, Rocky Mountain House and is growing hard and fast. Total up all the tax royalties, taxes from familes, companies ect who leave to do business else where..... |
| RRE1481 |
Sir, I have recently read the Alberta Royalty Review Panel's Final Report. I must state that I am in favour of the Provincial Government of Alberta adopting 100% of the Review Panel’s recommendations. I strongly feel that to do anything less would perpetuate the situation whereby the Province and its citizens would receive less than their fair share. Due to coordinated pressure from the Oil and Gas industry, there will be pressure for you to "compromise." Yet, any "compromise" or lessening of the recommendations put forward by the panel would mean that the royalty rates and formulas will still not keep pace with changes in the resource base and world energy markets. You must hold firm against the petroleum industry players who threaten to pull investment if the recommendations are enacted. They are merely posturing in a vain attempt to maintain their position where the royalty and tax regime no longer reflects a fair share between owners (Albertans) and producers. They want to continue to make massive profits at Alberta's expense. I trust that you will do the right thing and enact the panel's recommendations. You appointed the panel of experts. They closely followed their mandate and gave the matter the attention it deserved. Now is the time to act decisively on what you know to be true. Albertan's want to believe that their government is not in the pocket of the oil and gas industry. Show them that a strong and capable government has the citizen's future and best interests in mind. Thank you for you consideration, [Information Removed] |
| RRE1482 |
I wholeheartedly applaud the findings of the commission. I simply don't believe that the industries' views on limited investment would come true; even if they were, that is not necessarily a bad thing, given that Alberta must catch up on infrastructure before any more developments be allowed. I hope that the Premier will accept the Panel's recommendations and protect the average Albertan's interests ahead of those of multinational megacorporations. |
| RRE1483 |
I have been avidly following the discussions in the media surrounding the proposed new royalty regime. I must confess to having mixed feelings about this issue. As an employee of an oil and gas exploration, development and marketing company, I love my job and do not want to lose it. Through first-hand experience, I understand the inherent risks in the business, and the amount of money, expertise and effort that is required to run a successful oil and gas company. As a native Albertan who has lived through both “boom” and “bust” cycles, I am anxious about what I see as signs of a pending downturn. However, having traveled to Fort McMurray numerous times, I am also concerned about the pace of development of the oilsands, and the failure of the infrastructure to keep up with development. I wonder about the long term environmental effects of current oilsands development, and to a certain extent would welcome a bit of a slowdown. The caveat is that I would hope that any slowdown would be used to continue to develop new technological initiatives and capitalize on good old human ingenuity to minimize the environmental footprint of these oilsands developments. In my view, it is important to distinguish between the recommendations made with respect to oilsands developments, and those made in respect of conventional oil and gas plays. Based on what I’ve read and heard, for the most part I agree with the “Our Fair Share” report’s recommendations on oilsands royalties insofar as they relate to increasing the post-payout royalty from 25% to 33%. One thing that I do not agree with is the recommendation against grandfathering existing projects. As a lawyer, I do not think that Canadians’ notions of justice are served by changing the rules of the game part way through the game. My view is that doing so is tantamount to breach of contract. I also disagree with the OSST element, as this essentially amounts to a tax on gross revenue and does not take into account the costs to develop the resource. I also do not agree with the panel’s recommendations regarding conventional oil and gas developments. I share the views expressed in the various reports issued by Tristone Capital, First Energy, CAPP, and others which predict that adopting these recommendations will lead to a significant decrease in exploration and development by the current industry players. In particular, Tristone Capital’s report gives a very articulate summary of some of the most significantly flawed assumptions of the “Our Fair Share” royalty review panel. What I think is most significant about the “Our Fair Share” report is the level of public debate it has generated. I think it is important to look at this in the context of the last few years. The past five years or so have seen record profits in our industry, and giant paycheques to those with the good fortune to work at management levels in Alberta’s oil and gas companies. Executives are cashing in their stock options in return for millions of dollars, and signs of wealth and conspicuous consumption are rampant in cities such as Calgary and Fort McMurray. Meanwhile, the folks flipping burgers and pouring coffee are receiving $10 to $20 per hour, but their paycheques aren’t keeping pace with their cost of living. Those not active in the oil and gas industry don’t understand the degree of risk inherent in looking for commercial oil and gas deposits, nor the costs of developing them, and haven’t seen the struggles faced by the smaller producers. All they see is that EnCana posted a $6.5 billion profit, and as “resource owners” they understandably want a piece of the pie which they see as having been baked in their kitchen. One of my biggest issues with the report is the discussion around the dollars that the province is failing to collect. The underlying assumption is that the provincial government can spend those dollars for the good of Albertans in a way that the industry cannot. In my view, the provincial government has a poor track record when it comes to allocating and spending provincial revenues. Most Albertans don’t seem to realize that the lack of community infrastructure in Ft. Mac and elsewhere in the province is not due to a lack of financial resources. The government has the money, but refuses to spend it (or at minimum refuses to spend it wisely); what is the government going to do with the additional $2 billion from increased royalties? As an aside, I think people also need to ask themselves whether this extra $2 billion will ever materialize. The report states that this assumption is based on current prices and production levels; I question whether current production levels will in fact remain the same (or higher), or whether they will instead drop as (i) conventional deposits continue to be depleted, and (ii) industry reacts to the proposed new royalty regime. In my mind, both industry (particularly the Canadian-based players) and the Alberta government need to do a better job about educating Albertans on the impact of industry on the Alberta economy. I am proud of the many community initiatives which my company supports both directly (through cash donations) and indirectly (by encouraging employees to work two days a year as a volunteer for community projects), and of the community investments we make in all of the jurisdictions in which we are active. Despite all the critique of the record profits earned by Canadian based companies such as EnCana, the fact remains that a large percentage of those profits find their way back into the provincial economy in one form or another. In light of the recent critique of the report from industry players such as Talisman, EnCana and PetroCanada, I think it is clear that if the recommendations in the report are implemented, we will see a significant short-term decrease in investment in Alberta’s oil and gas industry by Alberta-based players. This in turn will likely contribute to the economic downturn which I believe is lurking in the wings, and the resulting loss of jobs across a broad sector of the economy. According to one recent report I read, there are over 97,000 Albertans who have arrived in our province in the last year or so, the vast majority of whom have never lived through an Alberta “bust” cycle. Albertans as a whole seem to be unaware that any such downturn is going to be felt across the board, and won’t be limited to a few management level employees at the large publicly owned oil companies. On the other hand, I also predict that there will be a number of foreign (non-Canadian) companies who will be more than happy to have a chance to buy their way into Alberta’s oil industry, and take their profits back home with them. Is this what our politicians want to see? To summarize, I believe that a restructuring of the royalty regime may be justified. However, I think that any such restructuring must be very carefully handled in order to avoid triggering a recession, and must be done in direct consultation with industry. Consideration should be given to whether any changes will make the industry less attractive to Canadian based players (which tend to spend their profits in Alberta, directly and indirectly) and lead to more investment by foreign-based players (which tend to take their profits home with them). Incentives should be put in place to encourage more research into technology to lessen the environmental footprint of oil and gas development, particulary in respect of the oilsands. I realize that there are other areas of the report that I have not addressed, and I’m sure there are issues that I haven’t considered. However, I agree with the views expressed by others within the industry; the fall-out from the royalty report will have a significant impact on Alberta and our industry, and we all have an obligation to make our views known. I am a firm believer that public debate is an integral part of a healthy democracy, and that as citizens we have both the right and the duty to participate fully in such debates, in order to ensure that decisions are made with the broadest possible understanding of the background and future implications of those decisions. |
| RRE1484 |
I think this is wrong and un just for the government to come down so hard on the oilfield jobs will be lost homes,taken,from the poeple that keep the province on a steady path of money flow it will affect every one in all communitys alberta wide please change your way of thinking |
| RRE1485 |
The focus of the media always seems to be the oilsands and the lack of qualified workers, the big money and how busy the oil patch is. This all may be true, but the rest of the province dealing with conventional oil and gas is not as busy as the oilsands. Truth be told, the patch is actually quite slow. I know of many companies who have equipment that has not turned a wheel since break-up. Drilling is down, service rigs sit idle in yards, production equipment sales are down and people are starting to get nervous. Cut backs in drilling from the oil companies were a reality before the recommendations, mostly due to, it seems, the prohibitive costs of materials, services and labor. Large expansions, such as the Lloydminster Heavy Oil Upgrader expansion got mothballed due to the extra costs of men and materials. The money got earmaked for a new upgrader or refinery in the States instead. Companies are, in their own way, fighting back against unsubstantiated increases in costs by either not doing the work, or spending elsewhere. Now that the panels recommendations are out, major producers are saying that they will further cut exploration budgets and invest, instead in more "friendly" markets. These claims need to be taken seriously. If you doubt for a second the voracity of their claims, look into the effects of the National Energy Program on the Alberta economy. Are we now so hungry for a bigger piece of the pie that we will do to ourselves what an uninformed eastern based Federal government did to us in years past. I believe that the current slow down in activity in the oil patch is a correction. I also believe that if the recommendations are adopted as written the correction will become a crash. |
| RRE1486 |
I am against raising the royalties for oil and gas in Alberta. The government already uses and wastes enough money (For example: "Ralph Bucks"). It is pretty obvious that the average Albertan will not see any long-term benefit from the increase, however, our employment and the economic stability of Albertans may be affected. Do not gamble with our futures! [Information Removed] |
| RRE1487 |
No wonder the panel recommended raising the oilsands rate - they have used extremely optimisitc (unrealistic) pricing to determine the size of the pie. For example, at $80 WTI they claim that SAGD Cold Lake bitumen is worth around $47/bbl. In October 2007, WTI right now is ~$80 and cold lake BLEND (i.e. bitumen with condensate used to diluet the bitumen) is worth $47. Once the cost of diluent is deducted from the Cold Lake blend price, the bitumen is worth less than $29/bbl (less after deducting transportation cost to move back to the field, fincancing charges, op costs and other costs). It appears the review panel has made some incorrect calculations. Incidentally, at the October price, a SAGD project never reaches payout based on current capital costs of $30,000/flowing barrel. The upshot here is that the size of the pie is very small with respect to oilsands development. Capital costs are gigantic and efficiency of capital is a struggle. This is the worst quality of oil in the world and receives the lowest price - ironically it is also the most expensive to produce. This is not low cost, easy to extract light crude that countries like Norway base their royalties on - the size of their pie is huge compared to the oil sands. The government needs to focus on policy that grows the volume of oil sands production, not increase its take per barrel if it wants to grow its revenue stream from royalties. |
| RRE1488 |
Dear Sir, Madam, here are few more points: Please understand that Digging Oil from Oil sands is completely different business then common Oil production. Don't fall into Royalty trap, only $ amount lost in jobs will be in multiples what Alberta will collect in Royalties. Additional amount lost in development of infrastructure will be in tens of billions. Degree of change in International investments will be in trillions. Contrary, the best for Alberta would be reduction of royalties, this will create boom in necessary investments. Results will be extraordinary positive, more secure jobs, heavy development of infrastructure, huge increase in taxable income both from labor and proceeds of Oil sales, huge rise in Albertans living standards. Say, as result of stimulation instead of choking, Alberta will get 1 extra million barrels of oil/ day produced by 2012. This will give Alberta EXTRA taxable income in range of 30 billion dollars. Whatever tax% you have now, it would give Alberta multiples of proposed $2 billion increase in Royalties which FOR SURE will choke Industry. Bottom line: It is simple mathematics to see how detrimental to Albertans will be acceptance of Royalty increase. What I think is important, is PROPER AND STRICT ACCOUNTING for all money coming from Oil related Industries in Alberta. I sincerely hope, Albertans to make smart decision. If Royalties will go up, damage will be there for decades. World may see Royalties increase as first step to socialistic expropriation. Hugo Chavez first move was tax increase. Now foreign investments are mostly gone from Venezuela. It will take decades to restore confidence in Canadian-Albertan system of managing natural resources. Thank you for responding, sincerely [Information Removed] Subject: RE:Royalty Review Feedback [Information Removed] Thank you for visiting the Alberta Government feedback web site. Following is the response to your question prepared by Energy [ENERGY] On 2007-09-26 07:33:00.0 you wrote: Make it short. Alberta will loose 1000th of jobs and investment into this very costly and labor intensive business will go elsewhere. Also Canadian stocks and Oil sand companies in particular may loose as mach as 25-60% of its low current valuations. This will make many companies to go bancropt and others miserable, without ability to raise funds. If that is what Alberta wants, so let it be. Energy responds as follows: Thank you for these comments. It is important that Albertans speak up on important issues and your thoughts will be forwarded to the Minister?s office for consideration as he develops recommendations for government in response to the royalty report. Government?s response is expected to be completed in October. The Alberta feedback site is constantly updated to provide you with important information about Alberta programs and services. We invite you to visit us soon. Your Alberta, a new e-newsletter from the Government of Alberta, will keep you up-to-date on the province?s latest projects and plans. Your Alberta, a new e-newsletter from the Government of Alberta will keep you up-to-date on the province?s latest projects and plans. To sign-up, visit http://www.gov.ab.ca/home/534.cfm Toll-Free 310-4455 Internet www.Alberta.ca (AC-160569) If you need to reply to this message please use this link. http://www.gov.ab.ca/pab/AlbertaConnectsForm/reply.cfm?id=160569&usr=srox@nyc.rr.com DATE RECEIVED BY MAIL WAS Thursday, 27/Sep/2007 01:02:31 DATE ENTERED {ts '2007-09-27 06:00:11'} |
| RRE1489 |
I was deeply concerned after reading the report from the royalty review panel. What I found the most concerning was the fact that a rise in royalties of the proposed magnitude may scare of the large amounts of capital required to get many oilsands projects off the ground. There are a number of smaller companies currently pursuing smaller in-situ projects which will still require several hundred million dollars each of capital. These companies do not currently have production large enough to generate the kinds of revenues to support these projects so they are forced to raise capital in the equity markets. Take for instance [Information Removed] oil and gas who just this month commissioned their [Information Removed], this would not have been possible without raising several hundred million dollars of funds. Some of the more notable smaller Alberta Based companies which will require capital over the next few years for their projects include: [Information Removed]and several others. These projects are not the prime projects that we see from the likes of [Information Removed]etc., they are less robust projects and the proposed royalties may cause some of them to not be funded. By making it more challenging for these projects to get the money required you are opening the door for larger, multi-nationals to develop the projects. This is a shame as many Albertans are working very hard on these projects and are also investors in these projects. I believe that the royalty review panel has carried out both a superficial and incomplete assessment of a change in royalties. It is my belief, that they have identified the maximum rent available to the province; they have however lacked the wisdom and sophistication of what they have framed. The oil industry is a margin business both because of the maturity of the basin in the conventional business, but also the very nature of the oil sand business. When a margin business losses a material share of net revenue, in this case in excess of 20% there is a material shift upwards in the required commodity price for many of the projects to proceed. We have seen this in gas drilling in 2007 with 40% fewer gas wells and a decline in production of close to 1 billion cubic feet per day. The impact of the recommendations would be expected to include: 1. A decline in activity until commodity prices rise to support project development. 2. A compounded effect of that decline as the required investment capital is reduced in availability, increased in cost if raised and therefore further increasing the required commodity prices to advance projects. 3. Service sector companies through reduced activity will see the erosion of the volume and value of work and employment will decrease. Alberta’s GDP may be much less than it might have been and government revenue may in fact shrink as they garner a thicker slice, but of a smaller pie. Other points would include: 1. The principle of ability to pay is distorted by the proposed (OSST) oilsands severance tax. This is a gross tax where at current prices it is not the ~ 5% impact on the net to a company but potentially a 10-12% impact from cash flow available to a company as there is no deductibility in tax or other cost factors. 2. The proposal shifts foreign exchange risk to companies. In other words government revenues would be insulated from changes in exchange rates this of course is at the expense of the company share. The severance tax in combination with the foreign exchange risk becomes regressive in lower commodity prices, this will make any slow down worse. 3. The bitumen price question has a potential to be a significant and serious wild card to the determent of companies and perhaps the province. There is clearly a transfer price question for integrated projects. This should be addressed; however a non-integrated project only receives what it can. If deemed prices calculated by a formula do not reflect market prices either the government or company will lose, clearly not an objective. This recommendation in particular is very problematic and not well understood, notwithstanding the recommendation made. The harsh criticism of the committee to others would be particularly well applied to this recommendation of their own. 4. Small companies will be under pressure. In a margin business scale is everything. [Information Removed]is both respected and despised for what it is in the retail margin business. In the oil business this will increase the pressure on being big to survive. The numerous small companies of the conventional, but more particularly the oil sands will be consolidated. The business will be more dominated by the multi-national and activity will be constrained. |
| RRE1490 |
I truly beleive that additional royalties will drastically affect the announced project in the tar sands. The cost of construction is drastically high and additional royalties will stop or even cancel existing and future projects. Canada as a country needs the economy as it stands to survive in this day and age. Stoping the oil production will hurt the province and the country. |
| RRE1491 |
I've lived in Alberta my entire life and always voted conservative. I do not support increased royalties and would never again vote for a conservative Alberta government if it proceeds with revised royalties. |
| RRE1492 |
Implementing this royalty increase will hurt many people for many years to come as the oil companies will shut down production and concentrate on heavy oil where these royalties do not come into effect. Hopefully you realize that this will impact many people in the service sector. |
| RRE1493 |
Having read all the information that a an additional royalty change would make to the resource sector, I have grave concerns as employee of a major oil company, and fear that the impact would effect my job as well as many others. The bigger picture tells me that the governments approach will not be a healthy one to the economic future growth of Alberta. Many different industries will be effected by this change, and will not be good for Albertans, it could well initiate another recession as we did in the 80's. |
| RRE1494 |
Message to the Premier on the "proposed royalty increases". I urge you to leave the current Royalty structure as is and DO NOT increase Royalty Taxes. I remember the Federal Gov'ts National Energy Program back in 1982 (I have 37 years of work expeience), and they thought the same way, increase taxes & get more revenue. Instead, it backfired by shutting down all long range projects and industry expansions, caused massive layoffs in the oil industry, reduced property values throughout Alberta, and in the end, resulted in a steep REDUCTION in tax dollars collected (need to look at ALL tax dollars collected!). It took many, many years for Canada to recover from this mistake. Learning from our past history, your analysts should be showing you that our existing Political & Economic infrastructure is the driving force for the multi-Billion dollars of investment planned for the oil patch by each of our major oil companies operating in Alberta. Just thinking about increasing taxes has already had an impact as many of the Oil & Gas budget decisions that have historically been made in early September in preparation for the for the next year, are suddenly on HOLD awaiting a 'potential' increase in the Royalty structure. The proposed increases in royalties will actually have the opposite affect as it will cause a repeat of the 1982 NEP whcih resulted in a STOP to all major projects, reduced employment, reduced property values, higher unemployment and resulted in LESS tax dollars being collected. Just considering this is causing the investors to back-off already, which is clearly evident in the Wall Street reaction to what Alberta is considering! There is even talk of moving Alberta status from a "stable" to "unstable" status in terms of political structure and prediction of investment/revenue potential and also changing us from a "low risk" to "high risk" status. REMEMBER, Alberta is currently the envy of the rest of Canada and the unemployed people from other provinces are coming here for work. Just look at the license plates of the cars on the road today, over 1/4 of them are out of province plates! Our economy is currently healthy, lets keep it that way by NOT CHANGING THE TAX STRUCTURE! A similar mistake was made by the Bank of Canada back in 1983. They increased interest rates on money borowing to increase revenues, but that backfired and made large projects shut down and homeowners to foreclose on maortgages. The Alberta Gov't seen the devistation the Federal Gov't was causing in Alberta & assisted homeowners by putting a cap on mortgages in Alberta (12% cap while mortgages went to 18%) and gave mortgage rebates to enable people to afford mortgages! Now with mortgages in the 5% range it supports individuals in owning their own homes. Regards, [Information Removed] A concerned Alberta resident. |
| RRE1495 |
The royalty review is long overdue. Our family totally supports the conclusions. We live in Ft. McMurray. A little bit of sanity would slow the craziness up here down. That sucking sound is our future going south. [Information Removed] |
| RRE1496 |
Keep Albertans working. That is the best way to keep our economy strong, not raising royalties to the Oil and Gas companies, thats what drives 90 % of Albertans. When is the next election... |
| RRE1497 |
Even a basic understanding of economics tells us that increasing royalties will have the opposite effect to what this review will have us believe. The individuals reviewing the royalties and the auditor general have came out with their over dramatic recommendations and reports in order to garner attention for themselves to further their personal careers. Just look at Newfoundland as an example, lots of oil but still high unemployment and an economy that is deperessed because of a premier that is essentially a communist. |
| RRE1498 |
As I suspected, the ruling elite like the peasants scrambling for bread and housing, so they can deflect what they are best at, MISRULE. Every person in Canada could be given proper holidays, so they aren't living to work. Every Albertan would have dental and medical care. But NO the SLAVE COLONY of Canada can give money to a few, to impoverish the coming generations, and oh, oh I forgot. The MILITARY, UNLIMITED money for destruction and misery under the guise of peacekeeping on other soverign soils. It's called REPRESSION. And that is what I see giving the royalties away is really about. What the John Lennon line in working class hero????? Mr Stelmach can you fill it in for me please? |
| RRE1499 |
Remember 1981 SAVE ALBERTA |
| RRE1500 |
The current royalty rates are fine. I find it disturbing that Albertans would re travel the National Energy Program Highway. I believe in private ownership of property not government ownership. If the government wants a challenge try cleaning up the classrooms of this province in respect of the left wing nuts for teachers. |
| RRE1501 |
My thoughts on the Royalty Review are that the Premier et al had given the Royalty Review an open book test. The answer: We want to increase Royalties, provide us with a study that backs this answer. To even approach the idea of increasing the Royalties on Natural Gas at current prices, points to the fact that you don't know the industry pricing situation or the challenges the Industry currently has. I am disappointed in the Governments high handed approach to reaching into the pocket of business to solve their mismanagement. A change for the future would include scaled pricing the Royalty that would increase with a higher commodity price with higher prices floors above the current prices especially for natural gas. I consider the damage done to the Oil and Gas Business, a vote buying operation that seems to be in vogue in South American Countries. HEY,I think the extra cash provided from the higher royalties can be put into a high speed train between Edmonton and Calgary! That sounds like the $4 Billion(+) dollar failed experiment British Columbia conducted on ferries. I think this is how the Reform Party was formed, through disgruntled and discouraged Conservatives like myself. Regards [Information Removed] |
| RRE1502 |
Please, I would like to see the Alberta Government work on behalf of all Albertans and implement the recommendations of the Royalty Review Panel. I don't buy the scare tactics of the big oil companies. They will not walk away from their big investments. The oil resources belong to the people of Alberta and they deserve to be properly compensated. Go ahead Premier Stelmach...implement the recommendations for the benefit of all Albertans! The big oil companies will still reap huge profits. The Alberta Government should use part of the proceeds to set up a fund to clean up the mess that these oil companies are certain to leave behind. |
| RRE1503 |
Premier Stelmach and Cabinet; As a long term Albertan and taxpayer, I agree with the findiings of the Report and strongly urge your government to adopt it. The oil companies have cried wolf before (1972), and will do so again, who likes tax increases no matter what form they take! Albertans deserve to reap the benefits of our natural resources and as I consider the review results, Alberta is still treating the oil companies fairly and very competitively from a global perspective. [Information Removed] |
| RRE1504 |
YOU ARE PLANNING TO DESTROY THE OIL/GAS MARKET IN ALBERTA, IT WILL BE HARDER TO BE GREADY WHEN THERE IS NO PRODUCTION IN CANADA AND MOST THE DAY TO DAY PRODUCTION MOVES SOUTH ACROSS THE BORDER!!! |
| RRE1505 |
I am gravely concerned over the Royalty Review, my job is in jepoardy. The impact of this decision will affect my family and the future of my children. |
| RRE1506 |
Increasing the royalty is going to significantly hurt the industry and cost Alberta jobs. Rather than driving investors out of Alberta our government needs to do a better job of managing their current revenue. The fear of a royalty increase is already impacting the company I work for and I am personally delaying hiring additional staff. If this goes through I will no longer support the PC's in this province. |
| RRE1507 |
Does Alberta need more money at this time? clearly not.Should the royalty rates be changed? The industry does not. The people by majority think so.I am retired and do not wish to have my rif's hit again.Iam of opinion royalty rates should not change until price of gas increases back to high 2yrs ago.For oil sands increase withprice and same for conventional oil. the increase could over time increase to recover close to panel recs but delayed over time assuming of course prices escalate.My background is asfollows1LLB230=yrs. in oil and gas 3 yrs.legal adviser to ab energy dept. 4 7yrs legal director to federal dept of energy. |
| RRE1508 |
The oil industry CEOs etc would not be doing their job if they don't protest at any significant tax increases, regardless of whether the increases are fair or not. Unless they can and have provided facts and figures to refute the recommendations in the Royalty Report, the recommended increases are the least the Government should adopt. The Government should make public full details provided by the oil industry, and the reasons for its decisions if it does not adopt in whole or in part the recommendations of the Royalty Report. |
| RRE1509 |
Mr. Premier, Please reply to confirm that you are planning to follow all recommendations of the Royalty Review Panel. I'll look forward to a reply in writing within 3 working days. Sincerely, [Information Removed] |
| RRE1510 |
Don't let the oil companies intimidate you. Raise royalties. We've been essentially giving away our resources for far too long. If the economy slows down a little, then that would be a good thing. We shouldn't be in such a hurry to strip all the resources out of the province. |
| RRE1511 |
I have made a comment already but missed 2 essential points. I am appalled at the suggestion that the government will not collect every penny of royalty money already owing from previous years. Citizens are subject to income tax review for 7 years and expected to make up the difference plus interest. So should companies. The fact that Alberta has a surplus in the budget is not an excuse to negotiate lower royalties. There are many essential services that are underfunded and more should be going into the Heritage Fund. Thank you again, [Information Removed] |
| RRE1512 |
I live near Drayton Valley, Alberta. I believe that the Royalty Review as written would have a detrimental affect on the quality of my life as well as countless others. There are several reasons for this, but the main one is "NISKU SOUR OIL WELLS" "H2S CONTENT BETWEEN 14-25%" There are a number of Sour Oil wells planned for my area. I live in the County of Parkland. It is very difficult to get an Oil Company to increase standards to make these types of wells safe, but we were making some progress. The problem being that any changes to the royalties will mean that the Oil companies will not want to spend enough money on their propossed wells to make them safe to be in residential areas. The current setbacks are a measly 100m from a residence. We are talking about small to mid size Oil companies drilling into the Nisku formation. Decreased profits for them the Oil Companies mean increased danger to us The Residents. The Alberta Government has allowed for the exploration of these potent wells in our neighborhoods, please fully realise the impact your decision will have on all of our lives. Thank You [Information Removed] |
| RRE1513 |
Stand firm and don't let the Oil Co's dictate Alberta's future. They are blowing a lot of smoke ! Just say No to Nuclear power. |
| RRE1514 |
Target oil companies that DONT re-invest in Canada. The ones who re-invest fuel our economy... why target them? |
| RRE1515 |
At the minimum, the government must implement the full review recommendations. Personally, I don't feel that the recommendations are strong enough. |
| RRE1516 |
The Alberta government can only provide to Albertans if and only if royalty payments and tax revenues are coming to it. If the Alberta government tries to reduce the incentive for companies to drill in Alberta through increases in crown royalty payments, and decreased drilling incentives for oil and gas companies, no additional stream of royalty payments and tax revenues will come to the Alberta government. Oil and gas wells don't produce forever, some decline at a production rate of up to 30-40% to year. Alberta needs oil and gas companies to keep drilling for oil and gas to maintain a consistent stream of royalty payments to the Alberta government. The province cannot provide money to both urban and rural areas when royalty payments and income tax revenues are reduced. This is a Conservative government, we should be providing incentives for the oil and gas business in Alberta. We want to encourage capital investment from the oil and gas business in Alberta. Capital investment in Alberta creates jobs. It also gives more business to existing oil and gas suppliers in the rural areas. With more businesses in Alberta more tax revenues kick back to the provincial government in addition to royalty payments for oil and gas. |
| RRE1517 |
considering we now have the auditor general saying that royalties are below what we should be receiving.....it leaves no doubt in my miond that the report recommendations should be put in place |
| RRE1518 |
Please leave the royalties alone. We live in a prosperous province with no debt. We have a stronbg economy based on the engine we call the oil and gas industry. Gas prices are low and it is less and less viable to drill. Oil and gas trusts are still trying to recover from last October. Please leave the royalties alone. |
| RRE1519 |
I support an increase in royalties as proposed by the Royalty Review Panel for several reasons. 1) I understand that many of the oil sands projects were developed on the basis of oil being less than $20/barrel. It is now $70-$80/barrel. They're profits are excessive. Albertans should get more as a result of the higher priced oil. 2) Our economy is overheated. We are short thousands of workers. It would be beneficial to slow the economy to a realistic pace which would probably result in long term stability instead of boom & bust. 3) As a result of the overheated economy, the cost for homes has skyrocketed. This does not benfit anyone except the real estate companies and mortgage companies. Pensioners who on a fixed income, and low income earners are at a serious disadvantage. If the government had contolled the development and exploitation of our natural resources, we would not have this dilemma. 4) I understand that the raw bitumen is being shipped to the United States for processing. Why? We lose immense amounts of revenue by not having the processing done in Alberta. In short, it wouldn't hurt to slow down the economy, and let the province catch up on medical services, schools, hospitals and general infrastructure. |
| RRE1520 |
Using 2005 data for the Royalty Review Recommendations is wrong!! If changes are going to be made to the royalty regulations; at least use realistic data to determine what those changes are. Why would our AB government want to do this to the economy of AB. Do they not realize that the oil and gas industry is the back bone on the economy in Alberta. I strongly disagree with the govenerment's recommendations. |
| RRE1521 |
I think we should let the Oil and Gas companies in Alberta forge ahead without changing the Roayalty Structure. This would be a detrimental move and impact many people and businesses. |
| RRE1522 |
The conservative government , under Lougheed ,blew it with the NEP negotiations back in the 80's. Don't cost the Alberta Oilpatch workers their jobs and there retirements by forcing the oil companies out again. Re-think the Royalty Review and get it right. Your jobs go on.......ours don"t. [Information Removed] |
| RRE1523 |
I think the review does not take into account all the facts. As most informed people are aware. Industry in 2007 has drilled less wells, costs are higher, price is uncertain and field are mature. This makes economics undesirable. This committee has not looked at the billons of dollars of profit made from land sales. As well with the high costs for housing, cost of living in Calgary, company headquarters are going start to move to Houston. Let us not kid ourselves the Alberta economy is directly dependant on the oil and gas industry and this would cause a return to the early 1980s. Look at the big picture, make a change yes but make a realistic change. Oilsands development would come to a significant slow down. The boom would be over. |
| RRE1524 |
Ed Stelmach, Please think logically about the consequences of the actions proposed by the Royalty Review Panel. The snowball effect caused by a downturn in investment by the oil industry in the province could be devastating for all Albertans. I realize there is much political motivation to implement the recommendations in this time of high profits for the oil industry as it is an easy scapegoat. However, please keep in mind that these profits are largely a result of past investment in the industry at times of low oil and gas pricing. These oil and gas companies took risks when prices were low to obtain this production. It is world economic conditions that have created these huge profits which are only now being realized. Not grandfathering in previous production to the former royalty scheme amounts to little more than what Hugo Chavez has done in Venezuela by nationalizing most oil projects. You are taking money away from risk-taking investors after the fact? You are changing the rules halfway through the game? Investments were made under the assumption that we had a fair and stable government in this province which we did have at one point. The world will no longer see Alberta as a good investment decision because of the uncertainty this has created. The markets and investors in general hate uncertainty. Look what has happened to exploration on the East Coast of Canada because of the political flip-flopping of different governments. Last year exploration drilling and land leasing came to a virtual halt with no signs of picking up in the foreseeable future. Furthermore oil and gas rights in Alberta are leased to companies by a competitive bid process. A competitive bid process is an economic process that ensures that the owners are getting the best value for there property (in this case the Alberta governments oil and gas). In a time of high oil prices the price of land increases because companies know they can make more profit. In this case the Alberta government is making more profit in times of high oil and gas pricing. The price of land can go so high as to still create an acceptable rate of return for a company’s prospect. If another company values it more highly they simply bid more for the land. This land money comes up front and as such is very valuable for the province and ensures that they are getting their fair share of the pie. Government intervention to fix something that is not broken almost always has unaccounted for effects. The federal government felt the need to do away with royalty trusts as they were stealing too much tax money away from the government. This decision eroded billions of dollars away from Canadian investors RRSP’s, pensions and investments. The uncertainty in these investments allowed investors from Abu Dhabi (TAQA) to come in and scoop up oil and gas assets for prices below what these assets at one time commanded. So now instead of not getting enough of the pie from taxes the bulk of extra profits now travels to the Middle East. Thanks Big oil will not lose out as a result of this decision. Big oil will either invest elsewhere in the world or will squeeze service companies pricing in an effort to get the rate of return they require. Both of these actions will only serve to decrease government revenue. The short term thinking of the Royalty Review Panel will likely have long term negative consequences. Instead of blindly going and increasing royalties as a way of getting more of a share of the pie why doesn’t the government think of some creative alternative? Why not imagine ways to encourage investment at a faster pace rather than slow down investment. An idea that would create more government income without lessening investment, as the royalty increase proposal would surely create. One such example: Why not lessen the holding period of oil and gas land leases so that there is more turnover in these assets, more land to sell, more land sale activity which creates, ALAS, more government income. This would be a win-win situation for the government and industry creating more drilling prospects for companies while at the same time increasing government revenue. This is just one idea, there are probably hundreds. Do not act hastily by changing the rules for short term gain. I do not support the recommendations of the Royalty Review Panel. Sincerely, [Information Removed] |
| RRE1525 |
Western Canada has marginal quality oil and gas reservoirs that cannot be compared on a level playing field to the rest of the world. Consistently lower return on capital means the Government “take” must be lower to encourage investment. Capital investment in the oil industry is what fuels our economy. From land sale bonuses and higher royalties on new production, which fund our government spending, to discretionary spending from all those gainfully employed oilfield workers who fuel the car dealerships, hotels and coffee shops across the province. Erring on the side of too little take and a booming economy, due to high levels of investment, is far better than too much take and a weak economy from no investment. Alberta’s asset base is a depleting one. If we do not encourage re-investment, it will be gone before we know it. The royalty review panel failed to consider the impact of their recommendations on re-investment. This is a critical omission. We must have a competitive royalty structure with BC, Saskatchewan and the rest of the world. As a concerned citizen of Alberta, I urge you to send the panel back for further consideration of the economics of re-investment under this proposed structure. Their results will show that to be competitive, we should leave the system as it is. “If it ain’t broke, don’t fix it.” |
| RRE1526 |
I am a single mother. I work for and oil and gas company in Medicine Hat. If the Royalties are decreased the economy of Alberta will falter and many small companies will go out of business. The company I work for said that our company would have to close its doors. I would loose my job and have to go on social assistance as this area will be devastated. The other companies will not be able to survive if the oil employees are unable to make a living. There will be no new housing, no more groceries, no car sales and life will be the way it was in the early 80's. |
| RRE1527 |
Premier Stelmach, I encourage you to show the courage needed to call the oil companies bluff. They can easily afford to pay more royalties. If the panel said to collect an extra 2 billion/year, how much is that really per company...probably not that much! The oil is not going anywhere, we have the hammer, so to speak, so lets make sure we are getting our fair share. |
| RRE1528 |
Dear Premier Stelmach, Please follow the report on royalty review that you commissioned. Don't be influenced by the crowd at the Legislature yesterday. Any protest could be popular if every one who attended was paid for a day's work and bussed to and from the legislature. If you paid the homeless to attend a rally and provided transportation, the grounds of the Legislature could not hold all who wanted to attend. [Information Removed] |
| RRE1529 |
I believe that there is enough information out to challenge the recommendations in "Our Fair Share". Please look at how certain sectors of the oil and gas industry in this province will be put at a disadvantage compared to other provinces and regions. The challenges in front of the NG producers are real and the slow down is already taking place. If this is not handled properly we will no longer talk about the Alberta advantage. [Information Removed] |
| RRE1530 |
Yet another oil company threatening us with doom and gloom! I say we not only increase the royalties as recommended, but we also send them a bill for past due monies owed. I for one have not had any direct benefit from the boom other that seeing the cost of everything I have to buy go through the roof while my salary has only gone up less than 5% a year. I am sick and tired of hearing these overpaid, arrogant [Information Removed] cry poor and threaten to ruin me - I say let them try! |
| RRE1531 |
I agree that the royalty rates should be increased. The infrastructure needed to support huge oil projects needs to be funded to a greater extent by the companies that are profiting. I know that the 1% royalty rate during construction is designed to encourage development, but perhaps this rate could be raised slightly (up to 5%). The after completion royalty rate could be indexed to the price of oil. If oil prices should drop below a certain level, the rate could be lowered by 1 or 2%. I also strongly believe that there should be an export tax on any bitumen being shipped to the U.S. for upgrading. It is very important that Alberta control the oil that it produces. Being able to refine the oil that we produce provides long-term stable employment, rather than bursts of construction employment. The Oil Companies say that increasing the royalty rates will slow down future investment. The fact is that the oil companies will invest where the oil is. Most other jurisdictions have higher royalty rates than what is being proposed. A slight slowdown in oilsand investment would not be a bad thing. Construction costs are out of control and the infrastructure has not kept up with the pace of development. A slowdown would help to control costs and allow for more managed growth. It may mean a slight decrease in provincial income, but in the long term I believe it would be more beneficial to the people of this province. |
| RRE1532 |
Having lived in Calgary for over 15 years, I feel very lucky to live in a prosperous province where people can get ahead and have an excellent lifestyle. With the recent recommendations from the Alberta Royalty Review Panel, I am frightened that those days are soon going to come to an end. I am saddened by the misinformation the Royalty Review Panel has given to the Alberta Government and the general public. Reports have shown that the data and assumptions used by the Panel were seriously flawed. I believe that if their recommendations are approved as submitted, it is not just the Oil companies that will suffer (they will probably survive in some altered form), but it will produce a trickle down effect that will negatively
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