| 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 |
