| Random Nbr |
Released Comment |
| RRE2000 |
In regard to feedback on the royalty review I personally feel that between the price of oil and the value of the canadian dollar right now that this would harm us greatly. I am president of a trucking company and also of an oilfield filtering company who emplys 65 people and we need a busy winter. If this is not handled properly we could have a lot of hungry on our hands. |
| RRE2001 |
My husband and I have worked in the Well Servicing industry for [Information Removed]. The industry has enabled us to build our lives to a level that we are happy with, and many other families in the [Information Removed], can agree. However, the Government must ensure that the Oil Industry is held accountable for all expenses it is causing and will cause in the future to Albertan tax payers. The proposed Royalties would be available to address the immediate and long term costs incurred directly by the Oil Industry. For example, up-keep of County roads used by the Industry, and addressing the Province's growing water shortage (Oil Industry plays major role in causing this problem) etc. After having seen the ways of the Industry first hand for over 6 years, it is foolish to believe that the amount of industry the Province is experiencing would be free of detrimental environmental and social impacts. To allow Royalties to exist at the current level would put all future financial responsibility in dealing with these adverse effects onto our children. The children of the Albertans who are prospering now from the "zero responsibility Oil and Gas Industry" |
| RRE2002 |
The royalty review was there for a reason, the reason, the questionable health of the royalty regime. The prescription for a return to good health has been given, medicine is to be taken as prescribed to have the desired effect, therefore implement the recommended measures completely as given in the report. [Information Removed] |
| RRE2003 |
This reminds me of the dreaded National Energy Program when Ottawa stuck it to Alberta , now it seems we will be doing it to ourselves. |
| RRE2004 |
Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. Implementing recommendations from the royalty review will result in more harm than good for Albertans and the Alberta economy. Increased royalties for the province will create an even more adverse operating environment for oil and gas companies who work in Alberta. This will result in a significant decrease in the amount of oil and gas activity in Alberta, and thus, less royalties for Albertans and the provincial government. Wells you don’t drill don’t pay any royalty. If the recommendations are implemented, what is your plan for effectively, effficently and intelligently utilizing the royalty money? How can you expect Albertans to support the recommendations of the review, and the government who benefits from them, without providing any indication of your plans for this royalty money? The multi-level benefits which almost every Albertan sees from oil and gas activity in Alberta far outweigh any one-time cash distribution the government could provide in response to a surplus. |
| RRE2005 |
I strongly agree with the findings in the report. This province needs long term sustainable development of its resources, not the pillaging that has gone on over the last couple of years. A few people and corporations have reeped in a windfall, but the vast majority of Albertans have suffered with significantly higher costs on everything and substandard service due to many people looking to make it big in the oil/gas industry. Talking with those individuals now, I have discovered that many are starving for work since so many people flooded into the oil/gas industry to make a quick buck. The development of Alberta's resources must slow down and increasing royalties is an excellent way to do that for the long term future of Alberta. We cannot let this sprial out of control any further. Please heed the comments in the report and bring the necessary changes forward. |
| RRE2006 |
I would prefer to see this money left with industry rather than to the government. I am employed in the oilfield and am very concerned with the potential outcome if the recommendations are followed. Consider what a great idea Trudeau's NEP was at the time and what it did to the entire industry. |
| RRE2007 |
Why is the goverment of Alberta destroying the oil/gas industry with outragous tax and royalty premiums? I agree that Albertains need to understand the royalty forum but I don't agree with the recommendations. What we tend to forget is the currency exchange rate has moved 33% in the last few years and diminishes net backs to oil and gas producers. (Oil and Gas is bought and sold in US $). Increasing Royalty payments should not be a means of slowing down Alberta Red Hot economy. I vote conservative and a proud Albertain...Where are the Day's of Traditional Alberta Leadership gone? Where are the Ralph and Peter's that made this Province Great. Is there not a Leader in Alberta that can lead in a manner that can balance industry's needs and lead to public soical and economic prosperity for all Albertains?? |
| RRE2008 |
The largest concern around implimentation of the new Royalties is both a slow down in projects, and an out right cancellation of "fringe" projects that rely on certain economics. Given the current conditions of the Alberta market (especially in labour) there is an excess of projects leading to escalated costs. It may not be such a bad thing to slow down a few of these projects for a longer term sustainability. Other than a few corporations located in Alberta, I do not see other larger corporations caring about sustainability in Alberta. Implimenting these royalties might lead to industry planning that spans greater years and leads to a more sustainable, longer term, economic growth. I am in support of the royalties partially because of this reason and partially due to the huge profits corporations are seeing from investment in Alberta. |
| RRE2009 |
While I agree that there should be a more balanced approach to managing and collecting provincial royalties, I would strongly urge the government to carefully consider the inevitable negative impacts on energy industry suppliers (everything from drilling companies, to small catering suppliers). I fear that while many government representatives have taken far too lightly the oil and gas companies' threats to move their capital investments elsewhere if the government fully implements the report's recommendations. Capital is very mobile and Alberta is one of the most expensive fields in which energy companies can operate. Please consider your response carefully and take a broad social and economic view of the implications of any decision. |
| RRE2010 |
If this Government wants to distroy Albertas economy ratify this proposed royalty change. After calculating the effect on my companys operations, we have decided that most of our oil and gas production will be un profitable. My job will be at risk. If this Government follows the wishes of the estimated 75% of missinformed Albertans it will be a biger mistake than the NEP. Does anyone remember that one. Oh ya maybe there is only 25% of us that were here and working at that time, and are still in the work force. Interesting demographic project for some of the intelectual socialists out there that beleive we can tax our selves into prosparity. My vote on this is dont touch it. If we change the royalty structure as proposed we should shut down every rig and close the valves on every well. Take a well desurved holiday and when we are all bankrupt we can all apply for a well fare cheque. Im tierd of working hard and supporting this country anyway. Maybe I should try sitting back with my hand out and expect the Government to take care of me like the 75% of Albertans that support higher royaltys. Lets assume that production remains the same and according to the estimates royaltys go up by 2 billion, will that really improve life for the average Albertan? Likely half of that money will end up in Ottawa to be squanderd away by the Feds. It is estimated that a dollar that stays in the economy creates eight dollars and fifty cents in growth and taxes. A dollar that goes to Government is still just a dollar at the end of the day. The best way for Alberta to grow and prosper is to create an enviroment that allows buisness to make profit. Higher royaltys or taxes is not the way. Im wondering if a proposal to raise personal income taxes or impliment a Provincial sales tax would be as popular with the average Albertan. Our former Premier was a man who did not always do what was popular but he did do what was right. I hope our current administration can show some back bone on this issue. |
| RRE2011 |
I feel it will have a huge impact on drilling / well servicing programs.It has the possibility of bringing the Oil patch to a halt,which in turn would be devasting for all of us Oilfield workers,as well as all the service companies. Thx for listening... |
| RRE2012 |
This will directly impact all my family, friends and co-workers who have put blood, sweat and tears into what they have because of the oil field today. If you make this change it will change all our lives for the very worse. Non of us will be able to afford to live. Please do not change the way Alberta is. |
| RRE2013 |
I am sure you are all receiving many of these emails. From what I can see is that the panel is not looking at the BIG picture of the Royalty Increase. The panel’s proposal will lead to many oil and gas operations in Alberta failing. I call on you our government to examine these proposed numbers and find a balance between a fair share of revenue while maintaining our oil and gas industry. Alberta is prosperous let’s not ruin Alberta. Many jobs in the oil and gas industry will be terminated. This affects our friends, family and neighbors. This will in return affect businesses throughout all of Canada and could ruin Alberta. As much as some believe “Alberta does not need the Oil and Gas industry to survive”, these people are blind. This industry defines Alberta and in turn makes business within Alberta thrive due to the dollars in the economy. We need a balance between the Royalties to maintain the industry and also give Alberta what we need regarding dollars for roads, schools and hospitals. However there NEEDS TO BE A BALANCE. YOU CANNOT RUIN ONE INDUSTRY TO BUILD ANOTHER. A COMPRIMISE WILL CONTINUE TO MAKE ALBERTA PROSPEROUS. Thank you for your time. Sincerely, [Information Removed] |
| RRE2014 |
all gas & oil leaving Alberta should have levy added to a barrel of oil or a gigjoule of gas.This should be used to lower the price at the pumps which belongs to albertans not the oil company who have been double charging us at pumps for some thing albertans own they don't!!!!They are well paid for what they receive maybe to much,fuel in the USA is alway $.20 a L cheaper when is this going to equalize???Maybe all albertans should buy in the Montana way cheaper,sure could upset the Alberta businesses. |
| RRE2015 |
New gas well drilling in deeper horizons is the only way that Alberta can maintain its place in the supply world. The new royalties on conventional gas are going to crush the economics of pursuing such drilling (deep, expensive, risky). Do not change the natural gas royalty structure or at least provide the potential for a higher return on such high risk expenditures. Also remember that when oil and gas companies bid on Lease rights in Alberta, they do the risked economics using current royalties and bid a great deal of any potential profit margin on the land price itself! Raise the royalty rate, reduce the land sale take - Rob Peter to Pay Paul! [Information Removed]Proud and Concerned Albertan! |
| RRE2016 |
I have skimmed the full report and read the oil sands sections in detail. Although the panel has some impressive credentials as someone directly involved in economic evaluation of oil sands projects I am clearly working with a different set of data than the panel is. There are a number of heavy oil projects that are economically marginal under the previous royalty structure (example [Information Removed]) which are likely to be cancelled if the new rules are implimented. The reality is that many of these projects don't disclose that they don't have acceptable economics because many of them are progressing towards selling the asset ([Information Removed], [Information Removed], [Information Removed], etc.) and cashing in. It appears that the panel has taken all of these press announcements and sales hype as gospel in their forecasts. DO THE PROJECTIONS FOR THESE BIG BOOSTS IN ROYALTIES UP TO 2016 CONSIDER THE NUMBER OF ANNOUNCED PROJECTS THE PROPOSED CHANGES WILL MAKE UNECONOMIC? The panel only makes general statements about 'fairness' and ensuring Alberta remains 'competetive' and an 'attractive' place for investment. Numbers are presented as percentages and other statements are qualitative in nature and in general terms. No consideration is given as to the Finding and Development Costs or Netbacks experienced in Alberta today, nor the operating costs which make oil sands in Alberta very expensive to produce. The netbacks are low and the capital required is high. Sure the percentage take (as calculated by the panel) seems low in Alberta, but the Profit Investment Ratios, Net Present Values, and Internal Rates of Return - some of the key economic parameters used to evaluate projects are undesirably low. This data seems to be conviniently excluded. WHERE ARE THE TABLES WITH THIS DATA? It is the economic parameters that determine how 'attractive' Alberta is to investment and production costs which state how competetive Alberta is globally. A bigger piece of the pie sounds great, but don't place your bets that the pie will be the same size if you cut into the bakers bottom line. Ultimately as someone who is involved in the industry I would like to say that the panel's report is not routed in the reality that oil sands producers face today. It suggests that producing companies and investors will continue to invest and accept a lower return in the midst of hyperinflation of capital and operating costs. The panel has cleary missed the boat on these major issues - instead it cites some convinient and evidently invalid comparisons and tries to use the argument of 'fairness' to draw in the majority of the people who simply don't understand the issue. On another note... There is already a substantial downturn in the drilling and well service industries - any additional driver to decrease activity in Alberta will have adverse effects. Prior to this announcement there have already been houses for sale on my own block. Why you ask? A rig worker who hasn't worked in three months has trouble paying the mortgage. How many times do you want this story to be told? Local service companies (such as [Information Removed] and others) have been laying off employees for months. What will a further slow down in activity mean for these employees? There is not a job across the street at a competing company because they too are experiencing the downturn in activity. The chain, unemployed or undemployed people have less money to spend on entertainment and services and seemingly unrelated industries begin to be affected. We have seen 'busts' before in Calgary - caused by the market and the government... NEED I SAY MORE? |
| RRE2017 |
You can't possibly be considering doing to Alberta what was done in the early 80's? The royalty review panel has to do everything it can to promote oil and gas exploration in Alberta. We are a prosperous and debt free province because of the past 20 years. Don't mess it up!!! |
| RRE2018 |
I am deeply concerned about the potential ramifications of the royalty review report. As a [Information Removed]working for an energy company, I was too young to know of the NEP of the 1980s, but its devastating toll on the Alberta economy and its people is still fresh in many minds. Now, rather than having a similar program forced upon Alberta by the federal government, we are considering imposing similar crippling legislation on ourselves. Although the royalty review report states that $2 billion more would be added to the provincial treasury, I don't believe it is taking into account the dramatic decrease in activity that would result from the full implementation of this strategy. As an example, in my group alone, after running the economics of our project under these proposed new royalties, only ~25% of our planned new activity for 2008 will be economic. Following this decrease in activity, the overall royalties received from this one property by the government will be lower, simply due to the decrease in activity. And if there's only 25% of the activity, we would only need 25% of the staff, and suddenly we are facing potential layoffs. Layoffs mean less people spending and putting money back into the economy, and an overall economic downturn. One in six people are directly employed by the energy industry, but there is no one in Alberta that would not be affected by the downsizing or collapse of the oil patch. Please ensure whatever action you take does not cripple the industry that so many depend on for their livelihoods and has made Alberta the best place in the world to live. Sincerely, [Information Removed] |
| RRE2019 |
I have tried to send my thoughts to the Premier, [Information Removed] and my MLA directly but I thought I should also send therm via this pipeline 'as well. I have read the report in it's entirety and find it to be fair and unbiased and reflects my thoughts completely. I feel it should be implemented in its entirety with no compromises or back room deals. All this fear mongering about losing the "Alberta Advantage" is just that, fear mongering. The industry has not a leg to stand on and probably fears the accountability issues (the best part of the report) the most. But lets face it. Even after implementation Alberta will still be the most competitive and politically stable place to invest in the oil and gas business. The companies know it. They just want the gravy train to go on forever. But the oil belongs to ALL Albertans and ALL Albertans deserve a better deal than we have been getting. Thank You. |
| RRE2020 |
I know that you are well informed of the slow down in actively in the oil patch now, but I dont think joe-albertan is. We know that if the big companies take their resourses out of alberta it will further impact us in the patch. I live in Grande Prairie and have been in the service rig industry sine 92. We have seen I lot of are emploies move out of are area because of the recent slow down. A number of the people that I work with have only worked a total of 200 hrs since the end of march. I am sure if you go ahead with all the royalty suggestions there will be the further slow down in the patch, like we saw in the 80's. I trust that you will take in to account the families of this great province, it is not about caving into the big oil companies, its about the children our future. thank you for your time [Information Removed] |
| RRE2021 |
Dear Mr. Premier, I support the two billion dollar increase in Royalties to be paid by the petrochemical companies removing our gas and oil. I hear their threats and am not swayed by them. If they wish to leave, then leave. There will be plenty of companies willing to take their places. And if it slows things down, then that is not a bad thing either. It is essential they we not back down now. We cannot allow these businesses to blackmail us. And your government should understand how angry the voters of this province are regarding the deficiency of monies being paid for our oil and gas. Take a stand Mr. Premier. Your political career depends on it. [Information Removed] |
| RRE2022 |
Why would you change a system that appears to be working so well? Our prosperity is the envy of the nation and we are debt free. Maybe we could get just a bit more from the oil companies, but there are obvious economic consequences as well. I don't know what the economice consequences will be, nor do I think you will ever get a concensus among experts. But I do know that the system already works, so why mess with it? |
| RRE2023 |
This whole thing is a money grab. We have a heritage fund that we have for a rainy day. Well it has been raining for to 2 years now. All this will do is pad the your pockets and make it easy for you to less fiscally responsible. |
| RRE2024 |
To the Government of Alberta: We , the undersigned, favour raising royalty rates as recommended by the Royalty Review Panel. We feel that the rate of development, especially in the oilsands, has been much too fast. A temporary slowdown would be a benefit to Albertans and all Canadians, as our overheated economy has too many negative effects. [Information Removed] |
| RRE2025 |
I agree whole-heartedly with the plans to increase the royalties charged to the oil & gas industry. I have heard for years that Alberta is being short-changed on revenues. While it is true that extraction from the tar sands is more expensive than other types of extraction, it should be noted that this is a stable country where there are few / no concerns about sabotage and civil wars. The oil & gas work force is provided with excellent education and good medical care as part of the taxes paid by all Albertans. The impact on communities such as Fort McMurray in terms of the provision of services for the growth associated with the oil & gas industry has been crippling. The multinational oil & gas industry should be paying its fair share to Alberta and not funnelling its (large) profits back across the US / Canada border or into investments in other countries. I am sure that the industry will be whining (and encouraging or intimidating their employees to whine on their behalf) but I cannot see them pulling out of Alberta. Oil & gas are limited resources and the demand is not going to shrink in the long term. Alternatives are still a long way off. |
| RRE2026 |
I think adopting the report as is will kill the great Alberta economy we have going! Take a closer at this before moving forward! |
| RRE2027 |
Implement the report in full and without reservation. The resource belongs to the people of Alberta, not the oil companies and their shareholders. While the oil company's reactions have been predictable and necessary, their interests are not the interests of Albertans. I don't blame them; if I'm a shareholder, I would want them to be looking after my investment. The fact remains the resource is finite and when it is gone, so will be the oil companies. Seriously, where are they going to go if we take our fair share? Pack up their bags and invest in high risk central Asian country run petty dictators? So long as someone does not figure out how to run the world on dandelions, the world will need our oil. Our neighbour and biggest customer is ever more interested in stable, secure supplies. As it get more scarce, the more our resource is worth. So what if things slow down a bit? Maybe we can stretch out the extraction over a few more generations and benefit Albertans not yet born. Anyhow, I am sure this is a familiar refrain on this forum because it is what the citizens of the province want. Listen to the them. |
| RRE2028 |
Take a little more time to make a good decision but do not give in to Big oil. Shareholders in Houston or Toronto have only their self interest. The extra revenue can be used for infrastructure. The highway to Calgary is inadequate in my opinion. thanks |
| RRE2029 |
The decision by the Kleine government to pay off the provincial debt at the expense of improving services around the Province is responsible for a large part of the public's dissatisfaction with the way the government has been performing. The Royalty Review panel's decision has been a catalyst that shows how fed up the public is with poor roads, poor schools, long wait times at hospitals, etc. Unfortunately, the general public is hoping that an increase in Royalties will solve their problems, when the actual problem is the Governments lack of vision. The time to have raised the Royalties was just as the oilsands projects were starting to affect places like Fort MacMurray and starting to add inflation to the costs of services etc. Now that we have a labour shortage and sky high labour costs, inflated housing prices etc., the fix for the problem is more complex. Oil companies are experiencing the same inflationary pressures that the general public are, this means that their net backs are low and many smaller gas heavy companies are practically bankrupt. Their only hope is higher gas prices and lower labour costs. An increase in royalty rates will only make things worse. Hurricane Katrina pushed gas prices to $15 /mcf, which temporarilly made gas companies alot of money. The companies flowed their additional cash through to employees which pushed up house prices in Calgary by 50% in one year. The service companies saw an opportunity to charge top rates and the government got rich as provincial income taxes revenue climbed along with money from Crown Land sales. Hurricane Katrina was a once in 50 year hurricane, gas prices have been back around $6/mcf for the past year and many companies wish they could reduce finding costs by lowering wages, getting reduced service costs and a break from the government. The real reason Encana says it will cut it's budget by $1 billion next year is the price of gas. It costs them $8/mcf to find and they are selling it for $6/mcf. By all means change the Royalties where it makes sense, but the government needs to be sensitive to finding costs and commodity prices. The Heritage Fund was set up for future generations, that was over a generation ago, maybe it is time to spend some of that money to improve services around the province. As far as the oilsands go, since payout on most projects will take until 2020, why not phase in the increased Royalty starting in 2020. The effect on the oilsand guys will be the same, but for the investment community it will sound like the whole issue has been put to bed until a far off date in the future. [Information Removed] |
| RRE2030 |
In business, as in life, you shouldn't get something for nothing....polluting our environment should have some cost other than the obvious. Oil companies have been given a free ride long enough. |
| RRE2031 |
Dear Ed, Obviously the royalties need to be raised. Norway and Alaska do so. The oil companys are getting huge profits, in the billions of dollars since oil went up from $ 20.00. Costs are going up but these companys factor all this into the investment metric. No suprises. Cost go up due to eagerness to get out production fast. Let us keep more money for Albertans instead of most of the money leaving AB. Do the right thing-you live here too. [Information Removed] |
| RRE2032 |
[Information Removed] There is widespread recognition within the industry that there is room to increase royalty rates and provide a larger benefit to the resources owners, however to implement everything recommended in the report will put me, and (hundreds of?) thousands of others out of work or it will drastically reduce our income. You are well aware I am sure of the impact that the resource industry has on the provincial economy; and you are also aware of the impacts of drastic changes to the status quo (remember the NEP?). Consider what might happen to every single Albertan if the 93,000 people that are employed directly and indirectly by the company I work for are all of a sudden out of work or are making significantly less. What happens to income tax revenues? What happens to the discretionary spending these people do? Now consider the impact industry-wide.. how many people are employed by the entire industry? How many people are employed because of the money that those employed directly by the industry spend going to the movies, buying cars, going out to eat? What happens to royalty revenues when no company can afford to produce oil or gas any longer? Some of the capital cost figures used by the panel are not accurate and to my knowledge are understated by a factor of two. How does this present a fair argument for anyone?? No one is saying that the status quo is what is best for everyone. But please, have the government conduct the review again using sound math and numbers. Alberta is unique in that the resources we have are difficult to extract and costs more to do so than it does in most other regions of the world; to compare Alberta to Texas is to compare apples to staplers. An increase in royalties may be necessary. To implement the recommendations made in the report will kill the golden goose; nurturing it will ensure a long, steady, dependable stream of revenue for the province and its residents. Let's figure out what is fair before we unnecessarily behead the goose and irreparably damage the entire province, its economy, and the livelihood of its residents. With utmost respect, [Information Removed] |
| RRE2033 |
I have major concerns with its recommendations. The report disregards external factors affecting the business of oil and gas such as increased costs and changes in the Canada/U.S. exchange rate. In setting up this panel, the government set a clear objective for the review – striking the right balance between providing Albertans with a fair return while maintaining a competitive and attractive investment environment that allows our province to enjoy continuing prosperity and long-term growth. The panel’s report does not strike that balance. Killing the goose that lays the golden eggs is the wrong answer. |
| RRE2034 |
Dear Mr. Hays, I just wanted to send you a note to ask you what you think of the "Fair Share" Royalties Report and what your position on the matter will be. I would like you to know that I will be doing everything in my power to inform the voting public how devastating this report will be to the Alberta economy and the well being of all it's citizens if the government endorses the report's recommendations. I am appalled at how misinformed the government, and the public in general, is with regards to the direct/indirect and spin off benefits the Oil and Gas sector brings to all of Alberta. As an employee of a major Canadian Oil and Gas company and having managed multi billion dollar operations and capital programs in the province I have seen first hand the direct/indirect and spin off benefits to all the Alberta communities in which my company operates. My employer is a strong community based company that works with all stakeholders to improve the communities in which we operate in. I am currently working on a multi billion dollar oilsands project near Fort McMurray and unfortunately people don't realize how low the rate of return is for the risks we are taking to develop this vast resource. An erosion of this return any further will make most investment in the oilsands grind to a slow crawl. Alberta can raise royalty rates if it wants but in the end the financial markets will decide if financing will be available to companies to develop Alberta's Oil and Gas resources. If the rates of return are not aligned with the associated risks the available capital will go to other more favourable jurisdictions or other industries. The report makes a fatal assumption that the forecast of future activity levels under their proposed recommendations will be relatively unchanged. The reality is that capital will go elsewhere in a hurry and in the end a lower government take will result from reduced activity levels. The main benefit to Alberta is not the take on royalties, it is on the sectors activity levels and the spending that occurs to explore, develop and operate oil and gas fields and all the direct/indirect and spin off effects this has on every Albertan. If activity levels reduce every Albertan will be impacted and if they thing that they are immune to this lower activity level they are sadly mistaken. Less spending in the province by the Oil and Gas sector will actually reduce the government take in royalties, taxes and other areas of government revenue. Sadly the public is misinformed and they will only realize the impact after it is too late, when their livelihood is impacted. Alberta is a unique oil and gas basin with unique economic inputs/outputs and comparisons to other jurisdictions must be take into account investment risk and rates of return which the report did not address. The report tries to compare Alberta to Norway which is like comparing an apple to an orange. These are vastly different oil and gas investment environments and the only way to compare them is on an economic investment basis that takes risk into account. Alberta is currently the envy of the rest of Canada, and North America for that matter, and I can't imagine the government wanting to mess with success. If the report recommendations get endorsed by the government you will certainly not get my vote at the next election, nor will you get my families vote, and all my friends and colleagues that I can inform what the actual impact of the report will be if endorsed. I have been in this industry for over 25 years and this report is worse then the National Energy Program. Those that are old enough to remember know what the NEP did to Alberta. I would predict a very short stay in government if this report is endorsed, despite what some of the opinion polls may indicate. Do not be swayed by opinion polls and do what is right for Alberta. If it is not broken, don't try to fix it ! I look forward to hearing your views on the report and the position you will be taking to the other government representatives with respect to royalty changes, if any. Thanks [Information Removed] cc: Ed Stelmach Mel Knight |
| RRE2035 |
I am writing to express my concern over the report from the panel that was charged with reviewing the oil and gas royalties in Alberta and the subsequent interviews and responses to any debate that poses the contrary point in raising the royalty rates. First it concerns me that there is a flippant attitude about getting "what is ours". If the oil and gas industry decides there is no economic value to looking for oil and gas in this province, then there will be no "our share" to get. Secondly, the cavalier attitude that I have seen displayed even by those who were on the royalty review panel that perhaps it is time for a "slow down" in the economy and that raising the royalty rates will help to do this. It is ludicrous to consider that slowing down a business by increasing royalties or taxes will somehow be of financial benefit to us. The leadership and vision on this issue are seriously lacking. This is not a rural versus urban issue. Stalling the oil and gas industry in this province has a profound impact on ALL Albertans, something we all witnessed in the 1980's with the NEP. It was not just the energy sector that suffered but, if you recall, the entire province faced an economic slump that was difficult to turn around. Each Albertan enjoys the prosperity that a thriving oil and gas industry brings to this province. The small town cafe that feeds seismic crews, the newly graduated nurse or physician who can practice at home rather than in the United States, the teacher who can obtain a full time job in the field of their choice because towns and cities are thriving, even subsidies for farmers in times of drought or poor commodity prices. These examples plus the added benefit to each and every Albertan that travels on upgraded roads, has access to the latest technology in health care, and generally enjoys the prosperity that a thriving province displays are testament that each of us benefits when the oil and gas sector is alive and well in our province. It is not a we-they debate. It is about us, Albertans. Please relay my strong opposition to the royalty reviews recommendations in your discussions in the legislature. Sincerely, [Information Removed] Calgary, AB [Information Removed] Email: [Information Removed] |
| RRE2036 |
The report did not recommend a high enough increase. We should be charging at least what Norway is charging!! I think a 200% increase is more in order. I can assure you I & my family will be tearing up our conservative membership cards and voting Liberal should Honest Ed side with Big Oil on this matter. One has to ask: Why does the richest province still charge health care premiums? Why are our tuition fees amongst the highest in the country? Why are our roads so beat up that it reminds one of a third world country? Why are working people ending up on the streets because they can't afford housing? Lots of questions but still no answers or direction!! |
| RRE2037 |
The oilsands are ours. The increase in royalties is long overdue. Backpay would not be out of place considering the billions of dollars earned by the oil companies at our expense. This is an Alberta legacy, that should be used wisely to benefit us all. Would it be possible to use the extra monies to build a refinery in Alberta. It seems that relying on other provinces and the U.S. to provide gasoline is a poor option when we could do it ourselves at a much lower transportation cost. |
| RRE2038 |
I rarely contact politicians as I know you are inundated on various issues, most recently the Pine Beetle issue in K-Country. However as a geologist and officer of a public Energy Trust I thought I would provide feedback on the proposed recomendations of the Royalty Panel. This will be bad news for Alberta if adopted; specifically for our company it will potentially mean hundreds of millions of dollars eliminated from our market capitalization and layoffs. With over 50% of our unit holders being American they are losing confidence in Canada as a place to invest based on the Oct. 31 Federal change to Trusts and now your government's potential royalty increase. If they don't invest, we have less dollars to invest in our province which this year is about $275 million. We have seen the volatility in public markets (Asset Backed Mortgages scandal) and what they can do to our economy. People restrict spending causing significant ripple effects. The Conservative Trust policy wiped out approximately $25 billion dollars of market capitalization from the Trust sector. An investor (typically retired) who held perhaps 10,000 units of our compay prior to Oct. 31 2006 are $80,000 poorer today. Please do not cause further destruction of their retirement income by changing the Royalty structure. A concerned resident from Bragg Creek |
| RRE2039 |
We have been following the news headlines regarding the royalty review. Although we do agree that it should be increased my only concern living and working in the oil industry in northern Alberta is that if it is raised too quickly Alberta as a whole will suffer, our jobs, our homes and our futures are so dependant on the oil industry that even the thought of less money being spent in Alberta is one of great concern. I ask you to consider the average Albertan who is dependant upon the industry for our families and our futures before driving the oil industry out of Alberta. The one thing that has brought our boom and helped many citizen like ourselves is the oil industry, people come from all over Canada just to enjoy our thriving economy, please don't forget that in this issue. I think it is easy for a lot of Albertans living in the larger centres not to see the entire picture but we will be no better off than any other Province if we lose our oil industy, infact with interest rates rising and the slow down over the past year, if not careful you will lead Alberta in to disaster. Thank you for the option to express our opinions and please this is not a black and white issue, it is an issue that affects each and everyone of us!!! |
| RRE2040 |
it will half of Alberta jobless and hungry |
| RRE2041 |
The instability created by the proposed changes have already cost [Information Removed] money. I'm one of thousands in AB employed by an oilfield services company, and I am personally out-of-pocket monthly commissions. I need these commissions to pay my mortgage, that was at a premium becuase the Calgary market was so hot. If these proposed changes go through, I will be one of thousands in Calgary that will be put in a position by our elected officials that will need to seriously consider walking away from a mortgage. There has to be a better way than the extent of those recommended by the commitee. |
| RRE2042 |
The review appears to have incorrect information, and that the royalties proposed will be in fact much higher. This will have a dramatic, immediate effect on Alberta's economy, and may well effect thousands of jobs. Think of the irrepairable effect this will have for many years. Please do not accept the recomendations verbatim; potentially in a reduced increase to be in line with world general policies. The proposed changes are too dramatic. Thanks, [Information Removed] |
| RRE2043 |
Thank you for the opportunity to input. As an Albertan I feel that the funding from royalties should be used to enhance the life of Albertans. If we are truly the richest province in the country why are our roads in poor condition, waiting lines for health services and a shortage of schools. However the most important is the legacy of our province and the beautiful places that we have to share and cherish for the generations to come. I see this funding used in building special places where future albertans can be proud and be able to create memmories for families to come. These places are our provincial parks and large municipal river valley parks. lets pump some money into land aquisition and construction of amenities for the people of Alberta to use and be proud of...... regards, [Information Removed] |
| RRE2044 |
Fully implement the report. Do not compromise on any of it as the recommendations are a compromise position - keeping our "fair share," while still offering an excellent, competitive business climate (what the Premier said was the objective). Do what's right for all Albertans, who have been shortchanged for years because government didn't act while industry enjoyed excessive profits at our children's expense. Industry has (and continues to) act in the best interests of their shareholders - as they should. But the government should also act in their shareholders' - Albertans' - best interests. It's not about "extracting more from industry" but rather being prudent stewards of our non-renewable resources and managing their development, and Alberta's development, well. It is evident from two independent reviews that government stewardship has been disgracefully, terribly lacking. It shouldn't be a tough decision. Industry rhetoric to protect their own interests is expected, and if they do take their investment elswhere, they'll be back: - the oil, oil sands and gas isn't going anywhere - Alberta's got the second largest reserves in the world, they know where it is, so there's little exploration risk - we're beside the biggest consumer in the world - excellent infrastructure, workforce and quality of life - and yes, we are stable and democratic nation. Act decisively now. |
| RRE2045 |
do it moderately pls. I know everybody keeping eyes on the oil and mineral. but don't do it so hard core. |
| RRE2046 |
I am very concerned about the proposed royalty rate increases. Oil is at an all time high and natural gas prices are very low right now. The oil prices are in US dollars, so with the increase in the dollar, the increase in teh price of oil is not benefitting the industry as much as most Albertans think. Most new natural gas wells are marginal at best with higher prices and increasing the royalty rate will result in many more wells becoming uneconomical. Production will be suspended uneconomical wells and the gas prices paid by consumers will rise with a decrease in supply. The majority of homes in Alberta are heated by natural gas. Is the government planning on subsidizing the poor, the elderly and those on fixed incomes to heat their homes? Oil companies spend a lot of money finding and bringing on new production. They also spend a lot of money developing new technologies to produce more effeciently and with less impact to the environment. All costs have been going up; labour, building materials, etc. An additional increase in expenses, such as that proposed by the Royalty Review, will negatively impact all aspects of the oil and gas industry. Oil and gas exploration and recovery are very risky ventures. If the government is going to take such a large share of the returns, are they also planning on sharing some of the risk? Proponents of increased royalty rates like to use the phrase "The people of Alberta". How exactly will the common people of Alberta share in all this new-found wealth? Will it be through job loss, higher prices for food, transportation, heating, travel? I sincerely hope the Government takes a very close look at all of the ramifications of such a drastic increase in royalties before implementing any changes. |
| RRE2047 |
I just finished reviewing the Royalty Review Final Report, and I have to say I am sitting here in disgust. All I see in this report is greed. The whole "Fair Share" theme is really funny because it looks like it only includes the Government and not the citizens. I am a citizen, and I can guarantee I have seen my fair share of the oil industry. Its has kept food on the table for my children and a roof over thier head which I am not not sure is going to happen when/if this Royalty Review goes through. No, my job has not been threatened, but I am an intelligent person - if I was the owner of any business and I had to pay excess millions of dollars a year to anyone, I would be looking to reducung costs and one of them would be job cuts. I am a single mother and life is hard enough as it is living in Fort McMurray, the rent is outrageous and life is hard, but I stay, because I have a good job and they pay me a generous salary. But I am replaceable. My job can be obsolete if so needed. Are you going to pick up the tab on my living expenses when this goes through and I get laid off? I can tell you Fort McMurray will not be my hometown any longer. Please, please, take a long hard look at the repurcusions of what they are proposing. Are we going to have another year like in the early '80s in Fort McMurray where everybody left? Please, say no. |
| RRE2048 |
What is important is not a percentage increase in royalties, but rather an appreciation of where Alberta stands in the world-wide royalty rankings. If as is reported we stand at or near the bottom and after review we stay there, then we have missed the opportunity to take advantage of the many benefits Alberta offers in other areas such as a skilled workforce and stable government. DON'T BLOW IT. |
| RRE2049 |
I am a 4th generation Albertan and cannot believe the comments you made last night in Calgary. Even though I have lived in Calgary for 29 years I am totally in favour in following all the recommendations made by the recent review committee. I have just torn up my PC membership card and will campaign on behalf of the Liberals. During the leadership campaign I was proud to support you for leader. I see that I made a mistake. I am sick and tired of seeing the last 2 premiers run scared from the oil industry here in Calgary. [Information Removed], am now retired and will spend all my free time and skills to defeat the Conservative Government in the upcoming election. I had to pay $5000 for knee surgery at a clinic in Vancouver or wait for almost 2 years for surgery here in Alberta.My graddaughter does not have a school in her area here in Calgary. Yet the oil barons have multi million dollar homes here in Calgary and also drive massive cars and trucks. It is obvious where the present government has its priorities and it is not with the average person here in Alberta. To the outside world and other parts of Canada we look like a third world country been run by the Oil Companies from the US. Peter Lougheed was not afraid to stand up to the Oild Companies but I guess he was a real leader!!! [Information Removed] |
| RRE2050 |
Its time the oil companies stopped whinning and need a big crying towel. Look at the past when the Lougheed government took on the energy industry over royalties and taxation, they responded with outrage and its been heard over and over again since then. Their responsiblity is only to their shareholders. Not the owners of the resources - all Albertans. They have always reaped billions of dollars in profit and never expect to see them go down, only increase. For Albertans the report provides short term pain, with long term gain. Read article in Calgary Herald opinion by [Information Removed]Wednesday 26th Sept. It states clearly the scenarios of previous royalty reviews. The oil companies are still here and will continue to be here in this stable climate where there are the second largest deposits in the world. Also any business or industry with sound management practices should be prepared for cyclical ups and downs. This will just be another small downer for them. |
| RRE2051 |
I believe that the Royalty Report should be largly implmented as is. The comments of CAPP are understandble, as they are lobby group for the industry. It is true that input cost in industry are escalating on par or faster than oil prices. Working in the construction industry, I see examples of an overheated economy daily. Sub- contractors are hard to obtain and the workmanship now takes a back seat to quantity jammed through the system. The huge backlog of work is driving up labor rates, and material costs, which drives inflation. This is a vicious cycle that needs broken. If higher royalty rates cause a slow down in investment as threatened, this would be fortitous, as Alberta needs a slow down before the economy becomes unsustainible and collapses. |
| RRE2052 |
I iive in Fort McMurray and work for one of the largest companies in the oilsands and can see the mad scramble by various companies to grab a piece of the pie. It's like Dawson City in 1898 and you know that these companies are making termendous profits, especially after their construction costs are paid off. I agree that we need a royalty increase, and if it slows developement down a little in the area, although I very much dought it would, that could also be a good thing. |
| RRE2053 |
I hope that those in goverment understand Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. Wells that are not drilled or are shut in do not pay any royalty, and does not pay anyone to work on those wells or project programs. I as an Albertan do not understand why with so much government surplus is this even something the Alberta government would contemplate? I have been within the energy industry of Alberta for 30+ years and now as an independant consultant veiw this Rolalty Review as nothing more than a Alberta born NEP and see no Alberta Advantage to come from it. |
| RRE2054 |
The panel has ignored important details and information given to them regarding actual costs of doing business for oil and gas companies in Alberta (see http://www.capp.ca/default.asp?V_DOC_ID=1226). In my opinion, the amount of royalty increase that the panel is suggesting is extreme and will shut down the small producers, it will also reduce the activity of the larger producers in Alberta. EnCana alone has announced that it will pull $1 Billion of its 2008 investment into Alberta if the increase remains as high. Another thing that is not being thought of is how this will impact the rest of Alberta if companies cannot afford to or choose not to produce in Alberta. Construction companies, Hotel and Restaurant Industries, etc. will also be effected. In layman's terms, this is like a Landlord increasing his apartment rental amount so high that most of his tenants have to move out and live elsewhere, how better off will that Landlord be if he doesn't have anyone living in his building? |
| RRE2055 |
Dear sir or Madam, Please re - consider the increases in royalties. Oil and gas pools are getting smaller and smaller and harder to find. We are having to shoot more and more expensive seismic to find these pools so the finding costs are going up. Add in the huge increase in royalties and suddenly it is no longer economic to explore for oil and gas in this province. i am very concerned that the result of the large royalty increase will be a huge recession. Drilling will slow down considerably (it already has slowed down a lot this year due to the lower gas prices and other factors) and many of us will lose our jobs. i don't think the panel has fully evaluated the impact of the Royalty review. The province will ultimately lose money and will be having to spend more money because those of us working in the oil industry will be on unemployment insurance. thanks for your time, A concerned Albertan - born and raised here, [Information Removed] |
| RRE2056 |
Dear Mr. Stelmach, Although you've carried out your election promise, the recommendations of the recent royalty review are quite one-sided; what the government is "missing" out on under the current royalty agreement. Given increased commodity prices, the review panel wants to ensure Albertan’s receive their “fair share” of the revenue streams generated by O&G development here in Alberta. Under the current royalty agreement the government receives a percentage of every dollar of revenue generated. At high or low commodity prices the percentage does not change, even though company netbacks shrink as commodity prices decrease. The government’s take does not. Since when is government or the public responsible for generating higher commodity prices? Higher commodity prices are simply a reaction to global supply and demand not on the action of Albertans. So why do we feel we need more of the pie when we’ve done nothing to earn it. No public capital has gone into funding these projects, the public is not at risk if projects don’t go forward or are over budget. Or are they? If the Alberta government were to increase royalties at the rates recommended the Alberta economy would see a severe impact. I’m not concerned with pockets of the rich getting lined with profits. These are the risk takers. They’re going to get rich regardless. The concern is for the middle and lower classes that rely on a healthy industry to make a living. With higher royalties smaller rural communities are going to be hurt. Unemployment will increase as projects are cancelled, provincial tax collection will decrease and economy will tumble. So long “Alberta Advantage”! If the government is set on increasing royalties, which you probably are now that you’ve opened the can of worms, any increases should go directly to back to communities impacted most by the industry. No amount should be spent as general revenue. Any and all of the incremental increase should go to providing infrastructure to communities like Fort McMurray and Fort Saskatchewan. These communities are the backbone to the future of oil sands development and need drastic improvements to keep up with demand. Maintain the "Alberta Advantage" by considering the impact on everyday Albertans by your decision. Implementing the royalty panel's recommendations will be just the beginning of political and social fallout. Concerned Citizen |
| RRE2057 |
This will be a huge hit to small towns in Alberta.For some the oilpatch is all that keeps the alive.More important than Farming. |
| RRE2058 |
I am writing to voice my concern around the royalty review. My understanding is that a lot of the data the panel used is flawed, and thus the recommendations are also flawed. I encourage you to make sure that industry is allowed to present their cases, and that their books are looked at to determine proper numbers and then make a decision. Of course everyone would like a bigger piece of the pie, that the most important thing is that the industry remains sustainable. Too many people’s jobs and livelihood depend on it, and the panel’s recommendations would seriously hurt that. |
| RRE2059 |
As an employee of a major national oil and gas corporation headquartered in Alberta I can be considered biased in any opinion offered, but I caution the government of the day not to create a made-in-Alberta situation where resource investments are in our provice are equitable to all parties. Shareholders of these firms expect a return on their investments suitable to the risks associated. Do not forget that the current economic climate in Alberta is centred on the investments being made by the resource companies. How many jobs and people are you willing to jepordize if the economic situation were to change so that this investment money were to be removed from our province? |
| RRE2060 |
This review is long overdue. I work in the industry and have seen the profits that are being taken out of our province and our country. I almost feel that maybe Chavez in Venezuela may have done the right thing. It's depressing to see our province and country kowtowing to the demands of big business and not the people. Yea, business will howl and cry, but they'll get over it and back to work in short order. DO THE RIGHT THING FOR THE PEOPLE! |
| RRE2061 |
This increase will have a dramatic effect on my job. I am very dependent on my job to sustain our farming operation. This increase will also have a drastic effect on my spouses future with farming and the services that is provided with our farm equipment for the oil companies in our area. |
| RRE2062 |
It's obvious from the report that Alberta is being taken advantage of by big corporations. We should not allow them to bully us around and keep what is rightfully ours. We should not be afraid of any consequences of divestment. We are a rich province and they need us more than we need them. |
| RRE2063 |
Dear letters Editor: After riding the gravy train in Alberta for decades, the international petroleum industry could hardly be expected to jump up and down with glee at the prospect of having to pay higher royalty rates. The reaction of the industry has been typical. Their claim that higher royalties would adversely affect the investment climate in Alberta and result in dire economic consequences has little to do with reality and is simply a ploy to influence the provincial government’s reaction to the report of the royalty review panel. Oil royalties in Alberta have been below global standards for far too long. The recommendations of the royalty review panel will not recoup past losses, but would simply bring Alberta royalties in line with global standards. Premier Ed Stelmach would be well advised not to allow himself be intimidated, and to take the advice of the panel seriously. In doing so he would be placing the well being of ordinary Albertans ahead of excess profits for the international oil corporations. Yours truly, [Information Removed] Edmonton, Alberta [Information Removed] |
| RRE2064 |
The concept that Albertans aren't getting "their fair share" of oil revenues is laughable. Given our history of mismanagement and waste, we have no right to the revenues generated by the actual hard-working companies and people developing our resources. Albertans didn't develop the oil sands, foreign companies and money did. Albertans didn't build the upgraders and refineries, Maritimers and foriegn labour did. What did Albertans do besides be born on top of the oil and gas? If we had any concept of fiscal responsability, our Heritage fund would be well in excess of that of Norway's, which now sits at $400 billion compared to our $16. The disgusting display of irresponsibility that was the "Prosperity Cheques" shows how little capacity for good judgement Albertans have. Instead of whining about not getting "their fair share" of oil revenues, Albertans should pay their fair share by implementing a sales tax, increasing income taxes and increasing property taxes. Then we could save our oil revenues for the future when there are no more royalties to be had. Thanks, [Information Removed] |
| RRE2065 |
I am stunned by the lack of understanding of the working of the industry. The report is biased and does not work through the cost of building the oilsands. Adoption of this panel's recommendations will result in lost jobs which will hurt all Albertans. Please reconsider the consequences to come up with something more reasonable. This smells of NEP, only inside of our province. |
| RRE2066 |
I feel that the report is fair and balanced and that the government should go ahead with this plan. Thanks |
| RRE2067 |
I am a younge mother and my husband works in the Oil Industry. These Royalties that the Pannel prposes are rediculous. They want to take far too much of a percentage, and how they get that number is beyond me, because they don't realize that their numbers are from 2005, and since then, as you know costs have gone up. The Oil Industry as we know it now WILL BE LOST!!! Thousands of families will be broke because they got laid off due to the company not being able to afford to pay their employee's and service workers because the Pannel has taken too much money. For example" How can you take money from a gas well that hasn't even been drilled yet?" If these Royalties get put in place, they will destroy Alberta's economy, places lick Fort Mac, will turn into ghost town, families will have to move, go bankrupt, loose their home's why? because they want more money. I SAY NO NO NO to the Royalties |
| RRE2068 |
I am the owner of Freehold Minerals along with my Sisters. Why is the Prov. Gov. so hell bent on making our Mineral Titles useless by putting such extreme taxes upon our potential revenues. We are in a "low" volume natural gas area and from what I understand these changes will prevent Gas prod companies from developing our properties. Please address this error before it does permanent damage to your voters. In general I agree with a Royalty Review but I have seen the slow down in drilling etc in our area already. Don't kill your Golden Goose!! [Information Removed] |
| RRE2069 |
Has Ed Stelmach forgot about what happened after the NEP? The Royalty Review Report is fundamentally flawed in that it assumes that the same amount of capital investment will occur with the new royalty regime. No doubt there will be lower capital investment and jobs will be lost. The Alberta government might get its dime on royalties from existing production, but jobs lost and lower capital investment in new exploration will more than offset. It will be the average Albertan who will pay with increased pressures on labour and services. I would rather the dime be in my pocket not Ed's. Have the conservatives thought about what the impact on voting will be if there are job's lost? |
| RRE2070 |
The proposed changes would have a very negative effect on Alberta's economy point forward. Everyone would suffer from a drop in investment in the Province, not just the oil companies. Remember the carnage caused by the NEP in 1981!! I know because I survived, many Albertan's didn't financially. Please consider your actions very carefully, we owe it to our children. Thank you. [Information Removed] |
| RRE2071 |
The proposed changes recommended in the RRR are based on misunderstandings and unrealistic assumptions that will result in severe negative impacts such as 1/ grossly understated capital costs 2/ low nat gas prices 3/ traditional drilling in NE Alberta will become uneconomical 3/ drilling in NW Alberta's tight & deep basin will be severely curtailed. |
| RRE2072 |
Alot of unhappy people here in Grande Prairie who are already counting down your years and months left in office,... You mess with our job security, we mess with yours. |
| RRE2073 |
I think the oil companies are fear mongering. They are not going to pull their money out of Alberta. If they do reduce their investment dollars it will be due to the fact that the companies could not keep up this pace of growth. In reality the companies will complain and moan and blame their slowdown on the royalty rates rather than their own planned investment reductions |
| RRE2074 |
Hello, I am a student in the Faculty of Business at the University of Alberta and have paid close attention to the ongoing royalty debate. I have even heard members of the royalty review panel speak about the issue in person, but I do not agree with their opinions. I am deeply concerned about the proposals to change the royalty structure, especially at a time when our economy shows such great long-term promise. I believe it is unfortunate that newspaper headlines have degenerated the debate to "big oil is taking our money!" and this has resulted in some bold threats by oil companies. I agree that this places the provincial government in a tough situation where the premier cannot afford to appear to be giving in. However, it does not change the fact that increased royalties and the negative public perceptions towards Alberta's economy caused by this debate will have an economic downside far greater than the $2 billion we were supposedly deprived of. I have lived in Alberta all my life and do not plan on moving when I look for a job. I am hoping to have a career in our growing, business-friendly province, so please reconsider implementing the royalty recommendations, because we may be severely limiting Alberta's economic potential and the wellbeing of the people - things that I do not think we can afford to risk. Thank you for your consideration. |
| RRE2075 |
I don't think the bill should be passed. |
| RRE2076 |
I am against the ARRP royalty changes as currently proposed. As an individual whose livelihood is dependent on the oil & gas industry, I truly believe that the ARRP analysis is shortsighted, and doesn't reflect the true capital development costs, low well productivity, govt land sales revenue, and economic spinoffs from the industry. It is my belief that the proposed ARRP royalties will kill our industry, and have a very negative affect on Alberta's economy. It is my belief that there must be some middle ground, that allows the people of Alberta to get their share of the economic value chain, and allows the oil & gas industry to return a profit, and continue to invest in Alberta and create jobs. So I would urge the Alberta governement to delay making changes, until the whole picture is evaluated, and to open up extensive dialogue with the industry, prior to making any decisions. THIS MUST BE A WIN-WIN SOLUTION FOR BOTH THE ALBERTAN PEOPLE (like me), AND THE INDUSTRY THAT EMPLOYEES SOME MANY OF US ALBERTANS. |
| RRE2077 |
First I would like to mention that I am extremely doubtful this will be read much less taken into account. The royalty review panel consists of highly regarded individuals selected by this government - why not implement this report in full as reported. The oil companies (and similar) would be complaining at anything other than status quo - anything else and they would be doing themselves a disservice. I say let this government show some "[expletive]" and tell the oil companies to quit '[expletive]' and accept this report if you wish to do business in Alberta - it is about time 'regular' Albertans receive a 'fair share'. I have lived my entire 46 years in Alberta and I have not yet benefitted from any 'program' the has been offered by this or any government. I am a regular married family mother, working full time trying to make ends meet. We do not live extravagantly but pay our bills monthly and try to save for a rainy day. I look at this royalty report not for myself but my my children and hopefully for my future grandchildren. The oil companies say they will invest less, leave and the Alberta economy will go down the 'toilet'. I expect oil companies would stop investing or slow down - even as a protest vote.They will be back because where else in the world can the Americans (and oil companies) have a safe way to supply them with the oil required. A slowdown in the economy is not necessarily bad. Maybe then the cost of living will be reduced, there will not be such a shortage of workers and the service industry will once again exist. The investment and development will still be there and the companies will be back - if not them then other businesses will gladly step in - why - because they can still make plenty of money to satisfy their investors. This royalty review was a public review and yet the government has now gone into private discussion with the oil companies. Will they do the same for the royalty review panel.. or another step will the government be willing to hold private meetings with ordinary private citizens like myself. I challenge this government to invite me to participate in a round table discussion with other citizens just like me with the same government officials that are meeting with the oil companies in private. Finally to Ed - stand up and think not just for this generation but future generations of Albertans and what the 'real' Alberta Advantage should be - is it the indivuals in this province or the oil companies. Prove to everyone that 'Steady' Ed is deserved and not [Information Removed] make a decision in a couple of weeks and not keep delaying it (several people I know have a bet that Premier Ed will not make a decision and keep postponing it because he is incapable of making a decision) - please prove this wrong. Do the RIGHT thing and implement the review as written/proposed. Like I said at the beginning - I really doubt that this will be read or responded to (and if it is a general reply sent to everyone will be issued). I would love to meet and discuss this - but alas I am not an oil company executive - only a regular law-abiding Albertan. Thank you for letting me 'vent'. |
| RRE2078 |
The Government of Alberta may wish to survey some of the Oil & Gas service industry companies specifically outside of Ft. McMurray for their assessment as to the current economic environment with respect to upsteam invesment activity prior to considering changing any of the royalty rules for conventional oil & gas. |
| RRE2079 |
The royalty report outlined what we, as albertans, need to do for the future of our province. We need to gain the full value of our resources, while maintaining a competitive system in place. The Royalty review's conclusions should be implemented immediately. |
| RRE2080 |
I strongly believe we are not getting fair equity for our resources. I feel we are being threatened and bullied by big business to avoid a royalty change. Do not succumb to these threats and please receive a fair and equitable royalty payment for our (the people of Alberta) resources. I also ask that you examine the bitumen debacle and ensure this resource stops flowing out of our country. We need laws put into place that ensure we are not selling our non-renewable resources a bargain basement prices. Generate employment and industry in our country. |
| RRE2081 |
I know the government is going in the right direction with increased royalties. The oil industry will whine and cry for a short while. They will be back because Canada is a the most stable country in the world for there investments in oil. Where else will they go, where else is there this much oil to be developed. BP oil is making $21.75 a barrel profits. Take your share, distribute that back to the people in government programs, help our poor because the oil industry won't. They just want to get as rich as they possibly can at Canada's mineral expense. Never mind the royalties, you should be developing this resource yourself. Mention that and see how they will react. |
| RRE2082 |
I disagree with the conclusions of the royalty review. The analysis should include impact of hogher royalties on the industry activity that would reduce land sales,investment,taxes collected etc, etc. Please, carefully consider all the ramifications of the proposed royalty increase! [Information Removed] |
| RRE2083 |
What does it take to open this government’s eyes to the devastation that is taking place as a result of the out-of-control expansion of the oil industry in Alberta? And to add insult to injury, we are receiving a mere pittance for our troubles. If raising royalty rates will slow the pace, please do so immediately – and not in partial measures, but fully as stipulated in the royalty review. Is it not obvious to a pro-business government that your hands-off approach taken so far has been a disaster to many companies outside the oilpatch? With soaring operating costs and labor shortages, some businesses have actually had to reduce their hours of operation, and some have relocated to other provinces. Meanwhile, the near-collapse of this province’s infrastructure, environment, and social systems has been noted so often that it is extremely frustrating to have to once more try to shake this government out of its comatose state, and urge it to do its job and discharge its responsibilities to its citizens. Yes, you are responsible to provide a better quality of life to the people of Alberta, not to the shareholders of oil companies. I only wish that implementation of all the recommendations of the royalty review would slow down oil production in this province. Unfortunately, I don’t believe it will. Nevertheless, we must stop groveling and demand what is rightfully ours. And the recommendations in the report should be just a beginning to a new era of accountability, responsibility and stewardship. Wake up! |
| RRE2084 |
Im in agreement with increasing the Royalties. The Oil and gas companies are making more than enough, and this may help reduce the acceleration of the economy, which is stretching businesses and personnel to the extreme. |
| RRE2085 |
I wish we had a Government that stepped up for Albertans and and not big Oil Companies. I don't for one minute believe the Oil Companies when they say they will pull out of Alberta, even with an increase in royalities they are still onto a very good thing here. Even if they did pull out it wouldn't be the "end of the World". I believe that things need to slow down so we can catch up to all the people who have arrived "en masse" in our Province and everything that encompasses. I think the Oil Companies should be ashamed of themselves especially Encana the first one to turn on us and one of our own. I believe in playing fair and the Oil Companies aren't playing fair at all they are just plain greedy. It's time we sent them a message and looked after Albertans and Alberta for future generations. Their greed should not be rewarded. Thank you. |
| RRE2086 |
In regard to the plea from the workers who drill for oil and gas and those workers in the oil and gas service industry who have fears of a slow down in drilling activity should the government adopt the Panel's recommendations - it should be noted that a slow down in conventional exploration and development has been going on for the last few years. In comparative data shown on the EUB website, it shows that activity has dropped 23% in the first 8 months of 2007 compared to the first 8 months in 2006 in respect to exploratory and development wells drilled in Alberta. This drop in activity had no bearing on the royalty fee structure but the shift has been the result of high costs of doing business. This awareness is also shared through knowledge that comes from the workers who have become affected by this slow down. This slow down will achieve bidding that reduces the take home pay of many Albertans who work in the oil and gas sector, results that have occured in the past - results that improve the bottom line for the majors while still seeing the ever increasing value of oil. It is noteworthy what the oil industry does for Alberta in regard to continued growth and employnment; however, the province also provides the necessary infrastructure, for example, highways to guarantee the flow of oil and gas - money that actually comes from part of the royalty revenue. These are expensive and important support structures that benefit the oil industry. |
| RRE2087 |
We are grade 9 students at vjm junior high school in st.albert. We dont really care or understand what this is about and we didnt even read your 105 page thing so have a good day! |
| RRE2088 |
Freehold mineral tax should not be doubled-it should be abolished. I am concerned about the protection of private property. I also worked on my parents and grandparents land breaking roots, picking stones etc. Give us a break! |
| RRE2089 |
As a concerned citizen of Calgary, I am appalled at the way in which the Alberta Royalty Review has been conducted. I am not representing any company's view of this matter, but am reaching out as a taxpayer and member of what I feel is the best province in Canada. The way that this review has been presented to Joe Citizen would be hilarious if I didn't care so much. Of course, 99% of all people will answer positively when asked, "DO you think the big bad, greedy oil companies are stealing too much money from our pockets?" Even I would! Conversely, if I used some cause and effect and asked the question, "do you think that we should tax the oil and gas companies to the point where they pack their bags and move to countries where they can increase their rate of return, and in return, we can pay more income tax and lay off 100,000 (20% of the half million) people who, within one degree of separation, get their income from the oil-patch while have an economic recession?" the answer may be different. To use old statistics to provide the rationale for increasing royalties is only going to ensure that this government is blamed for the recession that is ominously approaching... without the royalty increases! Should the government have had a larger piece of the pie in 2004 through 2006 when gas prices were highest? Absolutely! But now that prices have dropped and service companies are laying off personnel daily, don't blame oil and gas companies if you raise the ire of your neighbours, constituents and families for causing the trouble that we're sliding into (but most people haven't figured out yet). The degreed people that are getting laid off in Calgary are marketable globally in the oil and gas business. They won’t be looking for new jobs in , but the people who will be less marketable globally are the relatively unskilled labourers that are being laid off from drilling companies and service companies in rural Alberta. The degreed people will not return once they experience Big Oil in their newfound companies internationally. We are in a mature market. Some of these oil and gas properties require incentivization, not stifling taxation. If you don’t believe me, phone your friends in car dealerships and real estate offices and see what those economic indicators are doing. You missed the boom boat. Hope you don’t own a lot of real estate. Compare houses for sale in Calgary in September 2006 vs. houses for sale in the same month in 2007. In 2007 there was a 62% increase in month end inventory of houses for sale when compared to the prior year. (Over 11,000 homes) Is this not an indicator of hard times in Calgary already? The Alberta government has consistently stated over the past five years that the budget surpluses were due to higher royalties collected due to high commodity prices. The 2004-2007 resource revenue of almost $37 billion needs to be highlighted here. I'm not here to judge, but you would think we'd have better infrastructure for a province with that sort of resource revenue to spend on its people every year. The oil companies AND the province made great profits in the good times. Here's the bad news... The good times were over long before the Royalty review was released using faulty statistics. In August 2006 the activity slide started, with no end in sight. You can’t punish the oil companies for the royalty having a ceiling that was based on old oil and gas prices and cost infrastructure. If you don’t get this correct, I’ll most likely be one of those departing the country. I’m okay with that as I’ve worked globally before. The world loves Canadians. I write this letter in the interests of those who would like to continue to call Alberta home but won’t be able to due to their need for a job. Be fair, work with Oil and Gas companies, service companies, municipalities, etc., to arive at the correct conclusion, but don't be punitive due to your own inactivity in straightening out the system over the past 5 years. They were good times for all. [Information Removed] |
| RRE2090 |
We have watched our Prime Minister publically recend on a promise to leave the Royalty Trust Issue alone, and now we see a new Premier become the first to publically take Alberta's Oil Investments including the Heavy Oil Projects and place that sector in the Red. If both the Prime Minister and our Premier wish to take Alberta back the times of the NEP where thousands were laid off, this is definately a turn for the Conservative vote in the next elections also to the Red. There is one simple rule for Alberta for Politicians, and that is not to play around in the Oil Patch, as the ripple effect takes money out of the pockets of Albertans. You can cover that with all the fluff you wish, but that is the fact that everyone will remember. How will we always remember Brian Mulroney? One guess. The GST, which was the biggest Tax Grab in Canadian History. How will we remember our present Prime Minister? One to took away the Royalty Trust when he could have placed a "Grand-Father" caveat showing some consideration for the small start-up oil and gas companies that are on the verge of bankrupsy as the after-math. That rippled down to millions of dollars of losses for Alberta Investors in who support the Oil Patch by placing trust in our leaders to use their heads. How will we remember our present Premier after he brings down the Oil and Gas Industry and it's Investors to the lows we saw with the NEP with his new royal structure? One guess. Time to call for a new provincial election in this Province! |
| RRE2091 |
I BET THE CHAIRMAN WAS IN THE FORESTRY BUSINESS.... wHAT A JOKE!!!! |
| RRE2092 |
I don't know all the in's and out's of this, but I do know that whatever is being proposed is really scaring the people of my community - Grande Prairie. I shudder to think what may happen to our liveliehoods if this goes ahead. Not very equitable - all or nothing - there's got to be some fair way to do this without going to the extreme. It's the extreme we're scare of. |
| RRE2093 |
This program only seems to benefit the government. It doesn't seem like it supports our oil and gas industry or those who work in it. Doesn't seem like a very good proposal. |
| RRE2094 |
An average recovery cost for producing a bbl of oil should be determined (review on a yearly basis) once this has been set anything above that becomes the amount you base you royalty on. You can then determine and set a percentage for the royalty rate based on the profit only and not on the total cost associated with production. The royalty then becomes a moving target and changes with the price of the bbl. |
| RRE2095 |
I have been listening to the news lately and have become concerned with the tone of the “Our Fair Share” royalty review report. The report seems to claim that the Oil and Gas companies are somehow taking more than their fair share of the provincial resource revenue. I am somewhat puzzled by the premise of the report in that it implies the province is being cheated out of potential resource revenue. The Alberta economy it is the envy of Canada and North America because it has managed to maintain a level of employment and economic growth that is un-matched by any of it’s peers. I believe this has happened because a strong partnership between the Provincial Government and the Oil and Gas industry has allowed the Energy Industry to prosper in this province. The prosperity enjoyed by the Energy Industry is shared with the rest of the province in a symbiotic relationship - meaning the healthier the Oil and Gas sector (more profitable), the healthier the economic landscape of the Alberta Government (more revenue from Royalties and income taxes). Why would the Government want to target the profitability of the Oil and Gas sector as a potential source of future revenues and jeopardize it’s current revenue base? Energy companies are in business to make money…as are all successful business – it is the definition of a successful business! Why not continue to provide a business environment that promotes an opportunity to run a successful business rather than try and manage the Energy sector using a political agenda as your guide. Have we not learned from the experiences of other provinces that “go for” their fair share of the resource revenues…commonly referred to as the have not provinces. Why would the Government start to tinker with a winning formula? I think it’s perhaps the highest form of arrogance and ignorance to assume the Oil and Gas companies will continue to invest 10’s of billions of dollars per year in Alberta with a new “provincial profitability grab” in place. If you think back over the last 10 years, the provincial Government has consistently under estimated the resource revenues and has therefore run excessive Government surpluses. This is positive in that it has allowed us to pay down our provincial debt and accumulate a trust fund for future generations of Albertans…but doesn’t that also indicate we’re already receiving our fair share? At what point would we be content? Do we honestly believe that Oil and Gas companies are funneling off the provincial resources in profitability heaps abroad? Or is it more likely that the hundreds of Oil and Gas companies, the vast majority of which are created in Canada, are re-investing those profits in Alberta to continue growing their businesses? Some will argue that it is impossible to kill the golden goose because big oil is far too profitable to sustain any long term negative effects of increased royalties. Completely true, as is the fact that the large multi-nationals will simply stop investing in Alberta and turn their attention to other global oil & gas opportunities – of which there are hundreds. It is the small and intermediate Alberta grown Oil & Gas companies that stand to be the biggest losers, along with their employees and the employees of the large multi-nationals and …oh yeah the provincial Government because the total resource and income tax revenue will be much lower. Why not be happy with the fact that we are already receiving “Our Fair Share” and look forward to future budget surpluses from resource revenues and full employment income taxes… You’ll never kill the golden goose, but it may fly away. |
| RRE2096 |
please, please, please, don't lose site of the fact that the oil and gas companies are prospering here because they view the present royalty & tax structure as adventagious. Sure - the present system has flaws but it works. Have any of these panel members ever had to meet a payroll? a politically correct stance would surely be to admit there there are flaws in the present system but it still is working quite well thank you! |
| RRE2097 |
I expected a difference in opinions between what the panel recommends and what industry recommends. However, based on what I have read, I believe the government should appoint another panel to work with industry to reconcile the differences between the panel's report and industry's assessment. The industry and investment analysts are indicating that many of the panel's assumptions and comparisons are invalid, and they failed to take into account all the necessary factors (such as land sale revenues, differences in cost structures, production rates, reserve sizes etc.). If that is the case, implementing recommendations that do not fully consider for all factors would be negligent and irresponsible. If that is not the case, have the royalty review panel publish a response to industry addressing their criticisms. This is a very serious issue...one that may determine whether Alberta remains a fiscally strong province, or whether it becomes a rusting ground for partially constructed bitumen upgraders. Do not rush to make a decision, especially if it may be based on inaccurate information. Take the time to get it right. Industry seems to concur that there is room for royalty rate increases. Please take the time to listen to their arguements. If, after ligitimately considering their arguments, you still come to the conclusion that the royalty review panel was correct in their assessment, then by all means, implement the review panel's recommendations at that time, and you would the full support of myself, and many others. If the panel's recommendations are implemented before an additional comprehensive review has been conducted or before the apparent discrepancies between the panel and industry have been satisfactorly addressed, and the Alberta advantage disappears or declines, your govenment will be blamed, and it will amount to, at the very least, political suicide. Thanks you for the opportunity to comment. Regards, [Information Removed] |
| RRE2098 |
Dear Sir, I am greatly concerned that if the Government of Alberta implements the recommendations of the Royalty Review Panel the cumulative effect on our province will be disastrous. The list of consequences of reduced capital investment in our province by oil and gas companies is long and very significant. Reduced government revenue derived from personal income taxes, capital gains taxes, dividend taxes, corporate income taxes, land sale proceeds, and royalties are all on that list. To believe capital investment will be unaffected is naïve. Though the reduction in revenue to oil and gas companies resulting from the NEP of the early 80’s is difficult to compare to the proposed reductions that would result from implementing the recommendations of the Royalty Review Panel, the disastrous consequences of the NEP should be well remembered. It wasn’t “Big Oil” that suffered, it was the average Albertan that walked away from the house they could no longer afford. Reduced capital investment will negatively affect all Albertans. There is definitely an emotional groundswell occurring that has pitted a large portion of the general public against “Big Oil”. Unarmed with the knowledge of the cumulative consequences of reduced capital spending by oil and gas companies, it easy to see why many Albertan’s want what they believe is their fair share. If these same people realized the overall government take would in fact decline as a result of implementing the Royalty Review Panel recommendations, I’m sure their views would change. Should they become aware that their personal standard of living will be negatively impacted in a similar, if not exactly the same, fashion as happened in Alberta from 1981 to 1985, that groundswell would surely be reversed. As a bit of an aside, I think it's ironic that [Information Removed]. Remember what the “Big Oil Fear Mongers” said after the royalty trust debacle - foreign interests with lower costs of capital will come in and buy up Canadian energy trusts. Please, for the sake of all Albertans, review and quantify the cumulative impact of the changes proposed by the Royalty Review Panel. In particular, a real and honest assessment of the impact of reduced capital spending by oil and gas companies in our province needs to be shared with the people it will affect – the people of Alberta. Yours truly, [Information Removed] |
| RRE2099 |
October 24, 2007 Hon. Mel Knight, Minister of Energy and Hon. Ron Stevens, Deputy Premier, Minister of Justice and Attorney General Legislature Building Edmonton, AB Dear Ministers; Re: Royalty Review Panel- A Comment from “Small Oil” Most of the comments made to date have been from the so called “Big Oil”. We would like to comment from the perspective of “small oil”. [Information Removed]is a junior public Alberta conventional oil and gas production and exploration company. [Information Removed], and most of its shareholders are Albertans. [Information Removed]This number does not include the large number of contractors who work for us from time-to-time as required for drilling, workover or other activities. [Information Removed] has wells in the Western Canadian Sedimentary basin, specifically in Alberta. [Information Removed] has intentionally stayed within Alberta to benefit from the Alberta advantage (a favorable relationship with a stable government, well understood and stable tax regimes, a reasonable infrastructure and knowledgeable workforce). Our Company’s livelihood, as well as those of many Albertans, depends on maximizing recovery from Alberta’s depleting reservoirs. We are concerned that the Royalty Review Panel does not fully understand the oil and gas industry as the report misstates many fundamental truths faced by junior oil companies in Alberta and as a result reaches flawed conclusions that will do permanent damage to the Alberta advantage as follows: Alberta’s Mature Basin The shallow horizons of the Western Canadian Sedimentary Basin are mature. Other than deeper and riskier drilling, there is very little room for further exploration in this basin. Under the current royalty regime, the industry is struggling to maintain production as conventional production is declining by 500 mmcf/d. To ensure that a fair share of the province’s reserves is available for all Albertans, the focus should not be on the “take” but on what will be “given up” in lost reserves and jobs. It is imperative that industry be encouraged to maximize recovery of existing reservoirs and to find other horizons or ways to replace this production. This will require additional investment to maintain production from wells that are becoming increasingly marginal, to increase the amount recoverable from such reservoirs (tertiary recovery) and to find other (deeper) horizons from which to extract production. Royalty Review for the Oil Sands We believe that the people of Alberta are frustrated with stress on the provinces resources resulting from the development of the oil sands. A major concern was that the 1% royalty rate on the oils sands was attracting this investment and was too low at the current oil prices and should be reviewed. Rather than raising the royalty on the oil sands from 1% to 2% which would have achieved an additional $2.1 Billion of royalty revenue while being an insignificant cost increase to an oil sands development, the panel chose to compromise Alberta’s conventional producing reserves and jobs. Is it any wonder that the Panel has a bias towards the oil sands when the experience of the only oil industry representative on the Panel was in oil sands development. It is obvious that the Panels decision will jeopardize many long term jobs in Alberta in the production of conventional reserves for short term jobs in developing infrastructure for the oil sands. Conventional Production Takes the Hit Of the $2.1 billion forecasted extra take in royalties forecast 90% will come from conventional production, while less than 10% will be from the oil sands. When increases to the current royalty regime are analyzed conventional oil will see a 64% jump in royalties and be representing 43% of the $2.1 billion dollar increase. Natural gas royalties will jump 17% and bear 47% of the increase while oil sands will be up only 9% and bear less then 10% of the increase. This puts an unfair burden on conventional oil production and makes it difficult to justify the exploration for and continued recovery of conventional oil reservoirs in the province. Conventional production (and Alberta’s royalty base) is declining and will have $1.9 billion less to re-invest to replace reserves. When the cancellation of the Alberta Royalty Tax Credit program is included, the drop is $2.6 billion less to reinvest. Industry comments that capital spending will be less are not an idle threat but will be an economic necessity for conventional reserves. How can industry replace this capital? Sources of Capital In order to maintain current production, the industry needs capital. The industry obtains these funds from three sources, being cash flow, bank debt and investment. The Panel’s recommendations will negatively affect the capital available from all of these sources. The increased royalties will result in reduced cash flow. This will, in turn, result in higher net debt to cash flow ratios and lower property valuations. As a result, lenders will decrease the amount they are prepared to loan to the industry and especially to juniors with Alberta base production. Investors, already holding back from the industry in Alberta and Canada due to the change in trust taxation and the cancellation of the ARTC will have another reason to invest in other jurisdictions. Fundamentals Not Considered or Understood By the Review Panel The brunt of the increase will be borne by conventional reserves which will provide 90.4% of the $2.1 billion increase while oil sands will only contribute 9.6%. Much of our conventional production comes from low productivity wells which are only marginal under the current royalty regime and would be uneconomic under the proposed royalty regime. The Panel notes that low productivity wells require relief and comments that these wells will pay less royalty under their plan. This comment is false and based on outdated and improperly calculated cost data. If fact, these wells will be charged a higher royalty jeopardizing recovery of the remaining reserves from these reservoirs. The Panel neglected the $700 million increase in the Alberta governments take from the cancellation of the Alberta Royalty Tax Credit program as of January 1st, 2007. This program benefited primarily the junior oil sector which has largely operated in the red in 2007. The Panel seems to believe that increases to posted oil prices automatically leads to better bottom lines. The Panel neglected the fact that much of Alberta’s crude is of a much lower grade than WTI and the differential between the price received for the various grades has been widening. Although Alberta’s reservoirs are primarily producing natural gas, conventional oil will bear 43% of the proposed $2.1 billion increase and see its royalties jump by 64%. In addition, jobs will be unfairly hit as conventional oil has a higher labour force per boe produced than natural gas or a completed oil sands project. Incorporating such a boost in royalties on conventional oil will limit exploration and severely hamper conventional oil’s ability to continue to produce and employ. The Effect of Escalating Royalties The Panel asserts that low volume wells will be protected. However, these assertions were based on outdated cost and improperly estimated data. These low volume wells will in fact pay higher royalties forcing many of them to be shut in as uneconomic. The Panel did not consider that higher commodity prices increase costs proportionally specifically for power and fuel. In addition many of these wells require frequent and costly workovers, facility turnarounds and pipeline upgrades in order to recover the maximum oil in place. Instituting escalating royalties will not be economically viable and wells will be shut in or abandoned before recovering the entire product that should be recovered under a sensible royalty program. In our mature basin reservoirs are smaller and typically produce flush volumes for a very short time and then production drops to less than a third. This short period of high production and higher commodity prices is needed to justify the economics of drilling the well. Deeper targets being explored for today are also smaller reservoirs and are much more costly to drill. The industry has only been able to justify drilling for these reservoirs as new technology reduced costs and risk. Penalizing deeper wells now as recommended by the Panel will result in them being shelved as uneconomical. The oil sands are long term reserves producing at constant rates and consequently royalty indexed to commodity prices does not affect them as severely. Low Productivity Wells The Panel acknowledges that low productivity wells will require relief. However, analysis of the recommendations indicates that royalty rates will increase for all wells. In addition the Panel appears to have not considered the capital expenditures required to maintain and upgrade the necessary facilities so that the low productivity wells can continue to produce. Sometimes these expenditures are totally dependant on higher oil prices to be economic. The operating costs per boe noted in the report are not realistic for low productivity wells which are actually anywhere from 50% to double those noted. The Cost Environment Cost inflation has already increased costs to where the cost assumptions used by the Panel are not realistic. The Panel did not address how future cost increases might affect its’ recommendations. Industry costs increase as commodity prices increase. A review of recent financial statements of junior exploration and production companies shows that most are struggling as a result of the current cost environment. Finding and development costs are higher, operating costs are higher and administrative costs are higher. In spite of higher commodity prices most junior companies are already struggling, many have failed and most are showing either a loss or a very small profit. Much of the production of these companies is only marginally profitable and will be uneconomic under the Panel’s proposal. This will result in increased failures within the junior sector. The Panel does not appear to understand that low productivity wells have higher operating costs per boe than prolific producers. The Panel also appears to have excluded the general and administrative costs associated with producing wells. These costs which are required to supervise, maintain and administer production amount to between $2 and $5 a boe for a junior oil and gas producer. Land Bonuses and Tenure Payments The Panel neglected to include land bonuses and tenure payments received by the Alberta government in its calculation of Alberta’s fair share. Bonuses are paid on the perceived value of the undeveloped PNG rights. These bonuses are received by the government before any drilling or exploratory activity takes place, before one drop, if any, of oil and gas is produced and completely without risk to the government. Many such leases end up being dropped and returned to the province to be sold again! How could this amount be left out of the equation? Other Jurisdictions The Panel went out of its way to compare royalties in other countries with oil and gas basins which have different well productivity, reservoir size, and risk profiles as well as lower labour costs and different tax regimes than Alberta. Why not compare with Saskatchewan and British Columbia which are in the same basin, with the same labour force and the same federal tax regime? While our neighbouring provinces continue to provide incentives to attract investment for conventional oil and gas, it is hard to understand why the Panel would be recommending disincentives to industry in Alberta. Risk Not Adequately Accounted For The Panel gave lip service to risk but did not adequately consider the risk faced every time a well is drilled. A high return on successful wells is needed to pay for the land bonuses and costs of drilling the marginal and unsuccessful wells. The Panel did not consider the effects of income tax and the low depreciation rates allowed for development wells as well as land bonuses and rental payments. The Panel did not adequately reflect upon the risks inherent in implementing their recommendations. In fact, their calculations are based on a status quo level of production. This is patently absurd as there is no doubt that activity levels will be reduced if the Panel’s recommendations are implemented as stated. Industry Benefits to the Province not Considered The Panel’s report was inadequate in its consideration of the following economic benefits currently provided to the province by the industry. - The multiplier effect of industry spending - The property taxes paid regionally for every well and facility in the province - The Corporate taxes, personal taxes and other fees paid by the industry and its employees - The surface leases, access payments and other payments made to land owners (including the province). - The land bonuses and tenure payments - The creation of additional industries rising out of the oil industry - The skilled work force the industry attracts to Alberta - The future of our children and jobs they have training for in the oil and gas industry - How to sustain the current royalty base Related Matters And Risks Not Considered The Panel’s report also did not consider the following - Alberta has a declining conventional resource asset base and the Panel did not consider how to sustain the base opting to receive more now with less for Alberta’s future. With the right incentives industry can maintain that base. - Conventional oil and gas is a depleting asset that requires capital to replace and maintain. - As commodity prices increase, industry can justify the economics on more marginal reservoirs. - Wells drilled in the Western Canadian basin have steep production declines after start up - Return on investment in other parts of the world is already better than Albertans. - Corporations especially larger corporations have the mobility to move their capital spending elsewhere - Fewer jobs in the oil and gas industry as the industry would annually pay an extra $2.1 billion ($1.9 billion for conventional) in royalties while losing $0.7 billion by cancellation of the ARTC - The experienced professionals of the Alberta industry are quite mobile and Alberta may lose not just revenue but also skilled professionals to other jurisdictions. - The careers for many students and recent graduates planning to be employed and trained for positions in the natural gas and petroleum industry will be left in limbo. - The Panel’s recommendations will result in reduced federal taxable income and will likely cause a response from Ottawa. - The capital required merely to maintain production from low productivity wells is increasing. - The gas industry in Alberta competes not only with Saskatchewan and BC but with Canada’s East Coast and increasingly with Liquefied Natural Gas (LNG) which comes from very low cost environments. - The Panel did not consider the differential between light and heavy oil. Nor did it consider the treatment of Natural Gas Liquids. Royalties Not Understood By Many Even within the E&P sector, the royalty regime in Alberta is not well understood. This is not a criticism of the regime. It is complex for a very good reason, and that is that oil and gas extraction is itself complex with different wells exhibiting different economics. The complex system we have has developed over the past 30 years, in part, to incent the maximum recovery possible from a reservoir and sustain a strong royalty base. Given the complexity of the system, the Panel’s task was a daunting one. We would like to suggest that the time period before the Panel was too short for people unfamiliar with the existing royalty regime to understand and appreciate the why of it. We also, are disappointed that the Panel did not include more representation from the oil and gas producers of the province. Such representation would have been invaluable and may have resolved some of the misunderstandings we have addressed in this letter. Summary - The mandate of the Panel was to provide a fair solution. The language of the report and the result would indicate that the Panel took an “us versus them” approach with a pre-determined position that fair meant more. To obtain more they penalized the conventional production which has sensitive economics. It is clear that current cost data or other data that did not support such a position was neglected. - While the main concern from Albertans was that the low royalty on the oil sands was not providing its fair share the Panel hit conventional oil and gas production. This may be because that the only industry representative on the Panel was involved in oil sands development while there was no representation from conventional producers. - While concentrating on a fair share the Panel did not consider sustaining a royalty base which is declining under the current royalty regime which would obtain more for all Albertans into the future. - The Panel had a complete disregard for jobs related to and generated by conventional production throughout Alberta over the last 60 years, the number of people whose jobs presently depend on conventional production or the jobs and careers of our future Albertans - The panel did not consider incentives to maximize recovery from our existing reservoirs to retain ongoing employment in conventional production. - The Panel did not concern itself with providing a sustainable industry base with reasonable returns on investment. Such an industry will grow and lead to a continued and possibly greater take for the province. - Under the current proposal conventional production will bear the brunt of the increases. All conventional wells will pay higher royalties and many will become uneconomical with loss of jobs throughout Alberta. - The Panel did not consider that as a result of changed economics many wells will be shut-in or abandoned reducing the total reserves that will be recovered in Alberta. - The plan as written will result in the government taking a higher percentage of a diminishing pie rather than continued share of a constant pie. We believe that net governmental revenues will drop significantly over the coming years as a result of this plan. - The Panel acknowledges that low productivity wells require relief and yet their recommendations result in higher royalties and unprofitable production. - Finally if the conventional oil and gas reserves in Alberta are, as the Panel believes, so lucrative that these reserves can bear the brunt of the proposed increases, why shouldn’t the Alberta government be investing as a partner in the development of the reserves. - A goal of the Panel was to be open and transparent and yet, it is hard to understand their conclusions or how they were reached given the real world data available. Suggestions - The goal should be to sustain Alberta’s royalty revenues and employment on an asset base that is currently depleting. We would like to suggest that the following be considered: - Incentives that will maintain the size of the pie so that all can benefit. In particular, maintain incentives for reactivations or deep drilling and provide additional incentives for Mannville CBM, shale gas tertiary recovery and recycling of produced water. - Maintain the Alberta advantage by ensuring that we offer a fiscal environment at least as attractive as that of Saskatchewan and BC. - The differentials between heavy and light crude must be considered in designing any royalty regime. - Gas cost allowances should be simplified and should reflect the actual costs incurred by junior producers which significantly affect the economics of low productivity wells. - That the treatment of natural gas liquids be clarified in any royalty review. - That changes when made be open and transparent and justifiable in light of real world data and with reasonable and rational assumptions. - Incentives should be considered to encourage production from low productivity wells so as to maximize the total reserves recovered. - Do not index royalties to commodity prices. As prices increase, so will royalties. The hope for higher prices is one of the reasons that companies continue to drill for gas at all. - Any new royalty should not cause the reduction of production to the detriment of the province. - Any royalty increases should not reduce employment in conventional production. - All fiscal benefits from the oil and gas industry should be considered in calculating a fair share. - The oil sands can bear a greater portion of the fair share of royalties. Maintaining status quo for conventional production while raising oil sands royalty by 1% would achieve the same fair share as the Panel is suggesting. Conclusion “As an Alberta based Junior conventional oil and gas producer we see significant drops in our cash flow which would have been re-invested in Alberta to sustain the royalty base and jobs for all Albertans for now and the future.” We appreciate the opportunity to comment on the royalty review process. We hope that the government will tread carefully, act responsibly and take whatever amount of time is necessary to review all the data available and to seek additional input as appropriate including input from the junior producers. We hope that the final decision made will be rational, reasonable, and promote a better future for the province. We encourage open and transparent debate with results that are supported by data. We personally have had over 90 years experience in all facets of the industry including finance, economics, geology and engineering and we would be happy to participate in any discussions regarding the Royalty Review. Thank you, [Information Removed] Re: Royalty Review-Right Balance We believe that any royalty review decision should create the RIGHT BALANCE. The objective of the Royalty Review should be for the viability and sustainability of Alberta’s resources. Unreasonable and unrealistic decisions can lead to decimating the industry and our leaving marginal reservoirs uneconomic indefinitely. The oil and gas industry has helped create a strong province and they require the encouragement to continue. Alberta needs the “right balance”. To date the Royalty Review Panel has appeared to have a preconceived mandate to show that “enough was not enough” and “a fair share was more”. The selection of the representatives to the Royalty Review does not appear to have been “open and transparent”. Should the Panel requesting a fair share not have had a “Fair Representation”? A prime example of the Panel’s Report that is obviously not fair is with respect to conventional oil. Conventional oil is now producing 13.6% of Alberta’s energy resources and contributing 14.9% of the royalties. Under the proposal its contribution will increase to 20.6%, of Alberta’s royalties. In the meantime oil sands which producing 28.2% of Alberta’s energy resources is contributing only 21.5% if the royalties, under the Panel’s proposal its share will be reduced to 20.8%. The Panel’s only industry representative has only been involved in oil sands development with a foreign controlled major oil company. Is this “fair representation”? Obviously this is not the “right balance” for small Alberta based oil companies and its employees. We sincerely request that you seek the “Right Balance”. Thank you, [Information Removed] |
| RRE2100 |
We have been giving our resources away for far to long. We should not cave to threats by the oil industry saying that our economy will go into the toilet. Not only do we need to increase the royalties to look after future generations, but we need to institute an environmental tax on unprocessed resources that are exported to countries that are not part of the Kyoto accord, or restrict the sale of unprocessed resources to countries that are not part of the Kyoto accord. |
| RRE2101 |
I think under the new proposal, the government may initially receives dramatically increased revenue but the impact on the potential "cuts" or even shut-down in some areas may offset the gain in the long run. I would like the government to seriously take that into consideration. Thank you very much. Regards, [Information Removed] |
| RRE2102 |
I would suggest not making such a large decision which may have detrimental consequences across Alberta until various panels, not just the Royalty Review Panel, have a chance to do their own analysis. |
| RRE2103 |
I support the royalty review report. Please implement 100% of the recommendations. A slowdown of development will only help Alberta. We are in crisis mode trying to deal with the influx of development, environmental impact let alone the health, social service, housing & other infrastructure requirements for our growing population / development. Our royalties need to be more closely aligned to other jurisdictions . Additionally the recommendations would actually reduce royalties paid for smaller companies. Don't let big business influence good business practices. Thanks [Information Removed] |
| RRE2104 |
---- Forwarded Message ---- From: [Information Removed] To: [Information Removed] Sent: Tuesday, October 23, 2007 12:40:56 PM Subject: Fw: Rant on Alberta Royal tees Issue ----- Original Message ---- From: [Information Removed] To: [Information Removed] Sent: Monday, October 22, 2007 8:03:08 PM Subject: Royal tees Hi Uncle Ed At the risk of releasing a torrent - what is your take on the provincial royalties issue. [Information Removed] THE OLD OIL ANALYST REPLIES --- ITS WRIT BIG SO US OLD [expletive] CAN READ IT EASILY [Information Removed] The royalty issue may be the cause for the Alberta government to finally see an effective opposition elected in the next election IF THEY DON'T RESPOND RESPONSIBLY AND LASTINGLY POPULARLY to this issue. PREMIER STELMACH HAS READ THE WRITING ON THE WALL - I JUST HOPE HE UNDERSTANDS THE MEANING OF THE MESSAGES. The study states what most already knew - that the industry is making so much money that it doesn't know how to spend it fast enough. Industry can afford to be generous to its serfs. Look at salaries, car sales, house prices, jobs, population growth, restaurant prices, leisure property demand in BC by Albertans etc. Repeated in Sask too! Thanks to a comparatively low corporate tax policy enormous profits are expatriated to foreign owners of the larger resource companies. Try that anywhere else including the Excited States! When you compare the takes on profits from all levels in Canada you realize that the burdens on the oil business are lower than anywhere else. Viz : even Statoil (Norway) and the Abu Dhabi Oil Co (also state owned), are buying into the tar sands DECIDING TO DO SO AFTER the threat of royalty adjustment was made known. Further, if Alta reduces profits and keeps the money the Feds have less profit to tax. So guess which Federal Tory party has irs "blind mice" membership in Alta stirred up on the issue? On that same note, explain why the Alberta Heritage fund puts its money on loan at less than 5% instead of insisting it invests alongside companies like Esso, Syncrude and Sunoco for returns (after tax!!!!!!!) of more than 18% in all those cases. The heritage fund absolutely does not need liquidity and lending out the cash at those rates rather than, at the very least, funding infrastructure construction before costs rise again (eg Calgary's badly needed next hospital price increased to 700 million from 300 million when it was first put on the list 5 tears ago). Ptooey!!! Just stoopid I guess! Companies like Exxon-Mobil and other foreign investors have raised a well-orchestrated stink and the threats by companies such as Encana about reducing their Cdn budget by $1B are so full of [expletive] the very media they are reported on stink - its propaganda designed to be swallowed by the worried service co employees etc, the Freds and Marthas that Rotund Ralph Klein used to delight in referring to when he wanted to name the mullets he was exploiting. The naked truth is that the USA hasn't needed to spend on developing their relatively very expensive presently uneconomic oil and gas reserves when they have Canada next door. And what about gas? About gas.... the surplus of gas has the price low. Industry clamored for years for removal of reserve to production ratios so that the fields could be exploited at US rates of production. So now we have excess capacity and the US pays us circa $7 per mcf when gas should be, on heating value basis for $90 per bbl oil, approx $12 per mcf The industry screams about a downward adjustment on the majority of Alberta gas production? How come??? Because the biggies wanting to explore for and exploit high risk high productivity foothills and frontier gas don't want any precedent set for high royalties on their high profitability biiggie wells' production. The sheep running the small Canadian companies are now grazing on the low productivity holes (which represent most of Canadian production) raise the hue and cry about lower royalty on their main kind of production. Dumb sellers on dooty? You betcha! Its sheep shearing time in Alberta - just in time for winter! You can't find any country in the world right now where Encana (or any other company) could invest that $1B ANNUAL amount as safely and sensibly in the petroleum business, not to mention as profitably. We are being fed such a crock by industry - like for another instance, all the [expletive] about "?errors?" that the woman from the tribunal supposedly confessed to having been used in the report- you will notice that her rebuttal saying she never said the things she supposedly said was buried in the viagra ads of the papers and thanks to the lethargy of our media the story never made it to air except in such way that made her look like the village idiot sitting under the chestnut tree and amusing herself by [expletive] herself. That's fact! HOPE THAT AFTER YOU WIPE THE FOAM OFF THIS (I REALLY WASN'T BITTEN BY ANY BATS CAUSING ME TO DEVELOP RABIES) YOU CAN READ IT AND IT MAKES SOME SENSE TO YOU. |
| RRE2105 |
Mr. Stelmach. Do not be intimidated, follow through with the recommendations. Peter Lougheed raised royalities and it was fair and right and Alberta flourished. You know this is fair and right. You said it best when you said the resources belong to the people. Let's use those resources to make Alberta the place for economic diversity, research, alternate energy development, and the highest standards in education in Canada. If this opportunity is lost Alberta will revert back to its backwoods roots the moment the oil is gone. Thank you |
| RRE2106 |
The review panel is playing with Canada's future. They think that getting more money now is the most important thing. What happens when the big Oil sand projects slow down or just stop building new plants. Where will all the workers go? How much tax money will be lost from their wages? How much tax money will have to be spent on helping these displaced workers? Everytime the government goes for another tax grab they [Expletive] something up. Just look at last Halloween Income trust tax changes. How many of these trust have been bought out by private money and Canada will see no taxes from them now. This great idea to get more tax money ended up getting less money than before they made the changes and desimated the trust industry. This review panel does not know enough about the industry to make these recommendations. |
| RRE2107 |
I will be very disappointed if the Alberta government fails to implement the "Our Fair Share" report. This report, far from being some radical suggestion, is already a compromise between the industry wants (e.g. the status quo) and the public interest. Even when implemented entirely, Alberta's oil patch will have huge competitive advantage as royalties will still be very, very low and Alberta has an incredibly stable political climate unlike most other oil-producing states. Companies do not have to ensure their workers against sabotage and kipnapping in Alberta, for e.g. They do have to pay this cost in Ecuador, Iraq or Nigeria. If short, I want Premier Stelmach to stand up for Alberta like he promised while running for the PC leadership. Why is he backing down now? |
| RRE2108 |
The Royalty report seems to have reached a reasonable conclusion that would put Alberta somewhere in the middle of the pack internationally, with respect to revenue generation. 'Doom and gloom' posturing by the Petroleum producers is normal, and of course will continue because their threats have worked in the past. The oilsands, in particular, represent one of the most attractive locations on earth for future energy, so even if there is some token investment pull-back, none of the major players is going to risk marginalizing their involvement. I think Alberta's long term interests are best served by implementing the recommendations now. |
| RRE2109 |
why don't we focus on actually collecting what is currently owed by producers, as the report stated this dept. is not doing a good job. this should help increase the revenues without destroying the only thing alberta has going for it. |
| RRE2110 |
Royalties should be increased, but might be a good idea to lock the increase in for a period of time to give some certainty/stability to the oilpatch/investment. |
| RRE2111 |
I agree with the recomendations from The Royalty Review Panel and the additional comments from The Auditor General on the Royalty issue. I hope the recomendations are accepted by The Premier and the present Provincial Government. I feel that we as Albertans have not been getting a fair share of the royalty money in the past.. You have a chance to put this right and I hope you endorse the report. I hope some of the money retreived could be put back in to the Health care system and Education system, both of which, are struggling to meet the needs of the citizens in Calgary. |
| RRE2112 |
I urge you to implement the recommendations of the Royalty Review Panel. I would also urge you to use the additional income from the increased royalty rates to support renewable energy in Alberta. The Alberta NDP have recently released an excellent 'Green Energy' plan, which I fully support. Remeber, your job is to serve the people... not the oil companies! Don't be fooled into thinking that they want what is best for Albertans. Sincerely, [Information Removed] |
| RRE2113 |
I have reviewed the royalty report and am convinced that the recommendations, if implemented, are not in the best interests of Alberta. The cost numbers utilized by the report writers are obviously out of line with the current costs to operate in Alberta and therefore the conclusions made are invalid. While I can understand that a modest increase in royalties is worth considering given that it has been some time since rates were last revisited, I am certain rate hikes in the amount and of the nature recommended by the report will not generate the $2B estimated. Instead, we can only expect investment to dry up such that more of less is still less not to mention the coincident loss of jobs in the energy industry which has lifted Alberta to the pinnacle in Canada and in global energy circles. I am also concerned about the everlasting impact implementation of the recommendations would have on any investment in Alberta and Canada. Changes of such a drastic nature, without any grandfathering, are tantamount to expropriation and I think Alberta and Canada should be concerned about potential actions under NAFTA from US investors in the Alberta oil industry. I am proud to be an Albertan and a Canadian but as a member of the International community would be very embarrassed if the royalty report was adopted as written. Doing so would, in my view, seriously tarnish our reputation as a stable and reasonable jurisdiction to do business in and drive dollars earned in Alberta and slated for re-investment herein to neighboring Provinces and other countries. I support the Conservative government and have done so for all my voting life. An adoption of the royalty report recommendations would not be responsible government and would definitely cause me to seek political representation from other than the Conservatives. Regards, [Information Removed] |
| RRE2114 |
Why now that our Province is doing so well, the goverment comes up with the Royalty Review.? This will mean that many of us will loose our jobs not only in the Oil & Gas Industry, but also in many other sectors. A fair solution for both parties has to be found. Please understand that with the new royalties you wont only be affecting the Oil & Gas Industry and the big Oil & Gas Investors, you would also affect each individual our Province. |
| RRE2115 |
I think the report overlooks the uniqueness of Alberta's position in the global oil industry. As an Albertan, I believe I will benefit far more from a royalty regime that encourages continued investment in the sector rather than the so called "fair share" regime. Higher royalties should not be looked at as an entitlement to Albertans, it is not the royalty regime that keeps the economy moving, it is the investment in the industry. The Alberta oil industry is capital intensive and we need to be cognizant that these companies must remain competitive on a global basis. I would suggest that if the Alberta Government wants more oil revenue and because we think these companies are gaining a wind fall, we should use the Heritage Fund to invest in the oil companies operating in the province. Does the province really want to risk a slow down in development by putting a higher price tag on operating here? Will the province really make more money by boosting royalties, or will we make more money by having more development and more tax revenue (income tax revenue from Albertans employed in this well-paid industry)? Being different is what attracts companies to Alberta, having lower royalites will keep our resource industry competitive through bad times. As far as I can tell, the oil companies that operate in Alberta are very good at working with the Alberta Government, and this benefits all Albertans. The last message we want to send this capital intensive industry is that Alberta is not a predictable place to do business. We should stop taking all the benefits of our oil boom for granted by demanding more and more and continue to partner with the industry to keep the Alberta Advantage strong. From a longer term perspective, we would be much better off focusing our initiatives to diversify our economy while oil prices are high rather than focusing on this so-called "entitlement" that will negatively reverberate through our provincial economy. No one has ever said: "let's invest in Alberta because it's expensive"! |
| RRE2116 |
I feel that the report submitted to the province concerning royalty review needs more investigation before it should be approved. There seems to be a concensus among several reviewers of the report that illustrate errors and flaws in the panels' findings. I think more information needs to be gathered before an informed decision can made. I hope that the government will take the time to look at all sides of the story before making a decision that will impact the lifes of all Albertans. Thank you for listening. |
| RRE2117 |
This is actually a question for Mr. Hunter. I saw the following quote in the newspaper. "I was prepared for debate," he said. If he was prepared for debate why did the panel release the report with the caveat that it must be accepted in its entirety? |
| RRE2118 |
This report is excellent, and I certainly hope the Alberta Cabinet wholeheartedly adopts all their recommendations. Please don't be bluffed by EnCana's threats......they cannot get petroleum cheaper anywhere in the world.....if they pull out, they will be back!! The Royalty committee was well chosen, and it is imperative for the citizens of Alberta that you adopt it completely. [Information Removed], Cochrane AB |
| RRE2119 |
My fundamental concern with the Royalty Report and its recommendations is two-fold: 1. Royalty rates appear to be analyzed in isolation in the context of the true total exploration & production costs of Oil & Gas Projects in Alberta. If our Royalties are so much lower that other jurisdictions, then we must ask ourselves, why our E&P costs almost the highest in the world? I believe the answer lies in all of the other layers of associated costs, some of which can be linked to other Government bodies and their regulatory requirements. And recall, Kyoto has not even been implemented as of yet, which presents another huge overhang for Industry in Canada. I believe it to be erroneous of this panel to view Royalties in isolation, although that may have been their mandate. The unfortunate consequence of this seems to be a public perception that it’s “cheap” for Oil & Gas companies to do business in Alberta. This couldn’t be further from the truth. 2. The only real Alberta Advantage is the respect of the rule of common law, and its associated political stability. By rewriting the Royalty structure and unbelievably, Grandfathering many projects, the Alberta/Canadian Advantage begins to ring hollow. I understand that there are many other technical concerns with the report, including the use of suspect data in many instances. I defer this analysis to the experts, but I trust an analysis of this data by such qualified individuals over the emotions of the general public, many of whom probably directly or indirectly benefit from the economic viability of Energy companies in the first place. If the intent of policy makers is to slow down the sector in the Province, then this will surely achieve that, which by the way, could potentially result in a net royalty decrease. Further, if these new Royalties are adopted I personally wish to see a corresponding decrease in my Personal Income Tax of some 20% or so. I trust my elected officials to a make EDUCATED, FACT BASED decisions that will affect my future and way of life of all Albertans. Further, I trust that it is not the intention of my elected officials to feel that they can run a business as risky and complex as an Oil & Gas company, better than those companies doing so now. If this is the case, it begins to sound like the days of the NEP all over again. That too, started with the best of intentions, with the guy on the street hollering for his “Fair Share”. In the end, things were fair – no one had anything. Yours truly, [Information Removed] |
| RRE2120 |
I am an officer of a public junior oil sands company located in Calgary. I have invested my personal money in this company, which has deployed its capital in the Athabasca Oil Sands in Alberta. I have serious concerns regarding the Royalty Review Report issued on September 18, 2007, which concluded the Alberta government needs to increase their take in the oils sands sector, primarily. The report has not incorporated current cost data in its analysis nor compared the Alberta royalty regime to other countries on an equitable basis. Production from oil sands is in its infant stages in Alberta; the costs have been higher than anticipated and the resource is unlike any other in the world. There have been companies that have announced their intent to deploy capital from Alberta to other provinces and countries if the government incorporates the recommended changes. The government would error in changing the royalty regime in Alberta based on this report. The future of Alberta will be shaped largely from the development of our oil sands. I am a proponent of ensuring the development should benefit all Albertans. I caution that if the changes are severe, as recommended by the review, it may result in fewer royalty dollars earned from a smaller revenue stream with a larger royalty take. Only the premium reserves will be drawn from. I suggest a royalty regime that maximizes development and production, from all qualities of oil sands, will increase the ultimate dollars in royalty revenue for Albertans. The Alberta oil sands is a world class asset which has attracted billions of dollars from investors. Our junior company has been able to attract some of these investment dollars specifically to assist us in defining the resources on our lands. These funds were raised with flow through tax incentives and we will not have the luxury to shelve this project and move on to other properties in other countries. Our economics have shown us that our net present value will drop by approximately 50% if all the recommendations are incorporated by the Alberta government. The rate of return is no longer attractive enough for us to carry through with a development project as our ability to attract investors will be minimal. If change is required, I would prefer the government maintain the 1% royalty before payout for oil sands property, to help control costs during the capital intensive phase of development and instill fairness in resource quality. If royalty increases must occur for oil sands, I believe it would be better to alter the 25% royalty after payout. This will be the single most important economic policy the Alberta government will make this term. The current royalty regime was implemented during the Klein government and I recommend the analysis done and recommendations made at that time be reviewed and re-considered before altering its purpose now. I urge the Alberta government to assess the full implications of the Alberta Royalty Review Panel's recommendations before endorsing changes. It is difficult to operate a company in these uncertain times. I ask the government to be accountable and demonstrate quickly that Alberta sees no advantage in discouraging oil sands investment. Please feel free to contact me if you wish to discuss this further. Yours truly, [Information Removed] cc Varsity MLA Harry Chase |
| RRE2121 |
At present I am undecided on an opinion as to what the impact of the Report will mean to Albertans. Certainly I believe that there is an opportunity for the Gov't to realize more value from the resources; however, the recommendations as outlined leave many questions in mind. With respect to Capital Cost Allowance, were sour gas facilities intentionally omitted? In my opinion these are the facilities that would incur the greatest impact of a postage stamp rate, yet no mention was given to them in the report. With respect to production and price sensitivity, how will the royalty obligation be calculated on Units. Gas Units operating in the province with NGL's will be heavily burdened under the new regime provided that there is no provision to allow for calculation at the well level. With respect to the BVM, I am not convinced that the formula should be based from West Texas Intermediate. Perhaps the formula should be based upon Western Canadian Select pricing. These are only a few of the questions that I have. There will be a definate impact to the economic evaluation of projects; conventional and unconventional. CBM projects were already shelved in 2007 due to price restrictions and under the new policy I can not forsee CBM being an economically viable project well into 2009 or beyond. From a personal perspective this is fine as I have groundwater and environmental footprint concerns when it comes to CBM. But, what happens to the dozens of engineers, geologists, geophysicists, land administrators, etc. who have worked on these projects for the last 5 years. Will they continue to be retained by the company simply because it is too difficult to replace them in the current environment? I believe that companies will need to take a good look at their General and Administrative overhead costs in order to remain competitive. Lay offs will most certainly be one way of addressing this. The Alberta Advantage, as it were, has been due in large part to the success of the oil and gas companies operating in Alberta. Many people from many walks of life have been able to enjoy that, but none so much as the employees of the major companies. Perhaps it is time to share the wealth...just make sure it is not to everyone's detriment. |
| RRE2122 |
I am asking that your government give this proposal more review. As a small business, who has spoken to several parties in the oil and gas industry, I suggest that I may not be able to continue with my service company to the industry. My loss of work, would also affect my children who are in advanced education. They may not be able to complete their degree without parental assistance, and also if they are fortunate to graduate from U of A, they may not be seeking a job in Alberta due to lack of opportunity. I trust that the industry that made this province rich, will not be decimated by more royalties. NO reply required. |
| RRE2123 |
The Tax Fairness (Income Trust) fiasco has resulted in a major slowdown in drilling and well service activity. Hit the industry again with higher royalties and drilling and well service business will just about stop, And government revenue will actually decrease as the resultant downturn in economic activity will more than offsets the increased rolalty revenue. Regards, [Information Removed] |
| RRE2124 |
Let us not kill the golden goose-- it is a driver of employment right across the country including our great Province. I am of the opinion that a lot of the suppositionsand assumptions are invalid in forming the conclusions reached in the Report. Our Gov't should reach a fair balance that recognizes current economic conditions throughout the industry, financial markets and consumers. |
| RRE2125 |
It's about time this government takes more of its fair share from oil and gas resources. For way too long, Alberta has led the way with corporate giveaways and "royalty holidays". When a country like Norway has over a quarter trillion dollars tucked away for a rainy day, this makes our Heritage Trust fund look like a joke. If Danny Williams can take a stand against big oil and win, Alberta can do the same. Of course I'm sure you realize that anything other than the full implementation of this report will result in an election loss. Happy trails. |
| RRE2126 |
More royalities = less drilling and compleation work= less production= less employment=more unemployed! More people out of work has a adverse effect on alberta`s economy and and growth! Bad Idea! |
| RRE2127 |
This will be a very bad thing for Alberta. This is a really stupid thing to do now. Nobody will gain anything the end if the oil & gas industry reduce their investment in AB, a lot of people will lost their job and start to damage whole economics in AB |
| RRE2128 |
As the president of a [Information Removed]business in Alberta that has just seen this last year's business dry up. I am very concerned with the proposal and feel it would be a an error to procede with the royalty review panel's recomendations. We sell over [Information Removed]trucks, parts and service and rely upon the local oilfield servicing companies to maintain the majoirity of our sales. This move would threaten to turn off the tap so to say and the downstream effect on the local alberta business that suport the oilfield would be detry big picture. Why does alberta need greater royalties as we are already the greatest province/state in norh america in regards to taxes, balance sheet, standard of living, etc. leave the program as it is or at the very least reconsider the review with current economic enviroment in mind. Go Slow, [Information Removed] |
| RRE2129 |
September 28th, 2007 I am very opposed to any increase in royalties. The Report of the Royalty Review Panel is very deceptive. If you read page 38 it shows public opinion from the web site. Well, it gives really twisted statistics on what was said. First 37% gave a direct opinion that the royalties should increase. That would imply that 63% do not want an increase or they would have said so. Second the question "Are Albertans getting their fair share"? That is not a question about royalties. They want more wages, more benefits, more jobs, more opportunities and a stronger dollar but not a bigger government grab. On page 42 the Ipsos-Reid Question 2 indicates that only 25% of respondents think oil sands royalties are too low, which would imply that 75% want no increase. Well the panel has twisted the statistic to say that 82% of respondents think that revenues collected by govertment are "too low, or about right". Please! This is just adding to the frustration level. This is a very important decision for Alberta and now is absolutetly the wrong time to destroy our energy resource sector. Respectfully [Information Removed] |
| RRE2130 |
I work in the oil & gas industry and I am afraid of what the BIG oil companies are threatening (since I want to sell my house), however, should our government succomb to blackmail? If the royalties do increase to the percentage that was suggested and IF the BIG oil companies pull out, would that not leave a lot of room for the smaller oil companies to jump in and take over? I admit that I don't know all the in's and out's but I feel for you as you have to try to please everyone and it is an impossible task. Good Luck! |
| RRE2131 |
I am totally outraged that our government would release such a report as this. The findings are completely inaccurate and assume a much lower commodity price than reality. Don't you think that the public should know that at the current gas price the Alberta Goverment would stand to gain more like 5-7 Billion instead of the proposed 2. It will come as no shock to you that I work for a large O&G company in Alberta. However, I grew up in the booming city of Grande Prairie and I am shocked with how little my friends and family that still reside there don't understand about these changes. I am mortified of the thought of my company pulling out of the Grande Prairie region. I can;t beleive that our goverment can be this greedy. Honestly if you need more money tax us more along with companies. Taking this out on large O&G companies is not the right solution. These companies are going to pull out entirely just to send a message that they too won't be "bullied" by government. Thanks for your attention. Signed Weiry Voter and Concerned Albertan |
| RRE2132 |
Mr. Stelmach, You should be very wary of any changes in oil & gas royalties. The warning today from [Information Removed]is just the tip of a huge wall of dissatisfaction from Alberta's major employers. The royalty report from the panel that you established is quite out of touch with reality, when they assume that implementation of their recommendations will have minimal impact. It is very likely that we would have a "made in Alberta" energy crisis every bit as acute as the NEP was in the 1980s. Please consider the adverse consequences which I believe are around the corner for all Albertans, if you proceed with the proposals from this report. Also, consider the impact upon your own electoral future if these debilitating effects should occur. This advice is coming to you from a long time member of the Alberta PC Party. Douglas Zebedee Calgary, AB |
| RRE2133 |
Why does Alberta need more money, supposedly we have a $7 billion surplus at the moment. We all know the oil companies are getting rich here, but we need them, its part of Alberta, why we're so far ahead in the first place. We should be treating them quite nicely, ask them what they're willing to accept, instead of forcing a massive royalty charge upon oil profit. If it goes through it won't take long before Alberta is left deflated and then everyone loses. |
| RRE2134 |
I am in favour of implementing the recommendations of the royalty review panel. |
| RRE2135 |
My husband grew up in Zimbabwe and I in South Africa. We left Africa to come to the sanity of Canada and have managed to rebuild from scratch in Alberta. We were able to do this because we work for many different oil companies and oil service companies. Our roles provide us access to their plans and budgets. The 2008 budgets have been negatively impacted by the exchange rate, the steel shortage, increased operating costs, and the climate change initiatives. The Royalty changes will be the straw that breaks the camel's back. We know that the impact of all of this is that exploration and development projects in the larger companies will be cut by 60% and some of the smaller companies will have to cease operations completely. Personally, we face losing all we've built up and will go into retirement without the nest egg we've been building up. Never did we think we'd witness a third world government in Canada. Shame on you. |
| RRE2136 |
Be very carefull before implementing a program that will destroy the Alberta economy. These oil companies are not messing around. They , as is all other bussinesses, are in the bussiness of making money and will shut down operations if they are not making money or move them to other provinces. This proposal would be devistating to Alberta, jobs would be lost, and the current goverment would go down as the goverment that ruined the best growing economy in Alberta history. Be cautious ! |
| RRE2137 |
In the early 80's the federal government ruined the economy. HOWEVER, I WOULD NEVER HAVE THOUGHT THAT OUR PROVINCIAL GOVERNMENT WOULD BE OUR DOWNFALL. With things slowed in the oil patch already, a move towards higher royalties, will slow things to a crawl. Grande Prairie is already seeing a HUGE slow down and there are many vacant houses on the market. This move will put us right back to the early 80's and I see the rise in royalties as sheer and simple greed. Settle down and let this province continue on and try to recover from the higher dollar before you go KILLING THE GOLDEN GOOSE - which is what you are contemplating. ARE YOU INSANE??????? |
| RRE2138 |
I think the governments myoptic view on the royalty issue is both short sighted and flawed . A disgruntled voter is more likely to get out and vote and tell anyone who will listen how frustrated they are with the elected party. You thought you inherited problems from the Kein gov't, just wait till the liberals or NDP take over from your mess if this "fair share" is adopted. I'll be first in line to cast my vote as will a large number of people ... [Information Removed] |
| RRE2139 |
Framing the debate on oil & gas royalties as an 'us against them' is poor management on the government's part and unlikely to serve the interests of Albertan's. The mature conventional basin and Alberta Oil Sands require substantial, high risk capital to develop. Sums large enough to require the support of a global investment community - which takes years to develop and is cautious at best. Infrastructure changes, such as environmental legislation and royalty increases, have a long term far reaching influence on the investment community. Look at the value reduction the market has handed the Canadian oil and gas companies with just the announcement of royalty review report - the loss of billions. Responsible change is phased, graduated and predictable. Adopting the royalty report as is would be irresponsible and devastating to the international investment community. I am certain it will result in the transfer of ownership to companies with substantial operations and land bases outside of Alberta; undermining local ownership. Albertan's have to be seen as having competence within the province, the government, the construction industry, the financial instituions - we are entrusted with billions. It is un-nerving to think that the provincial government has put it self in a position to undermine the Alberta economy, independent of the final Royalty decision, the fact that we are lead to believe that this is a fight between two separate groups is nonsense and nothing short of incompetence within government leadership. The international investment community has responded by showing us they don't have confidence in the Alberta Government. The new royalty regime is a boon for foriegn takeovers and goes directly against Canadian control over its assets. In the long term profits will exit the province and the chain of value will shift to downstream processors (upgraders, refiners, pipeline distributors) leaving Alberta in a vulnerable position. Albertan's have already lost the opportunity for an intelligent debate. One that looks at the cycles of global commodity pricing over decades and rewards Canadian entreprenuers for their risk and talents. Which part of the royalty formula reduces royalties when commodity pricing drops? Oil and gas pricing is not established locally, yet the government panel pre-supposes that profits will remain high. This is simply not the case and goverment now has the opportunity for an additional tax grab under the gise of fighting against "them" for "us". With abrupt change we will all lose. |
| RRE2140 |
Industry is the goose that laid the Golden Egg, The Gift that keeps on giving. The Girl that we brought to the dance. Treat her nice.......sit back, watch those dollars recycle. We don't need PHd's. Look at the Chinese economy. They stay out of industry's way tax-wise. Greed kills.....................economic booms. [Information Removed] |
| RRE2141 |
Please do not change the royalty system substantially. Albertans already receive a substantial amount of money through development in this province. Do not be remembered as the government that killed Alberta's economy. We want responsible development to continue in this province. We want companies to be responsible for damages to the land. If changes are to be made, make them very small increases to amount of royalties collected. Save more of today's revenues for tomorrow's major downturn in Alberta's economy. What is going to happen to the millions of people in this province when there are 60% less jobs because the energy industry collapses? Save Save Save!! |
| RRE2142 |
I am a small investor who owns shares of many Alberta energy companies through a fund in my RRSP. I think the Alberta government should look carefully at who actually profits from the energy industry. The large energy firms, which represent most of the capital in the energy market, are very broadly owned compared to many other industries. Pension funds, mutual funds and small investors, often through their RSP's, own huge amounts of this industry as shareholders. We have put our own capital at risk to make this industry thrive in Alberta. I do not think we should be penalized as our reward. Since it definitely is desirable for Albertans to share in the revenues created in the energy industry, why not encourage their great tradition of being the most personally responsible electorate in Canada? Launch an advertising campaign in conjunction with the energy and financial services industry, to encourage every Albertan family to own energy shares directly. Get the profits directly to the people - they know best what to do with it. Don't get it to them three-steps removed though government redistribution, with all the inefficiency that implies. |
| RRE2143 |
As an Albertan, and former Saskatchewan resident, I have always been proud to call Alberta home. The province I came from years ago, imposes high taxes which does nothing to boost the economy. Small business is unable to grow and tax continues to climb. The entrepreneurial spirit this province has to offer is now being threatened by a report which needs to be solidified by facts. Calgary has 600 publicly traded oil and gas companies who are governed by SOX requirements and in doing so make the financial and operating metric data available. Why not use the data rather than rest our future on the opinion of a few? All Albertans need to be accurately informed to make an educated decision. We also need to realize the oil and gas sector is the backbone of Alberta. Without this sector, Albertans would not realize the type of life we enjoy today. Granted, there may need to be a revision or correction to contributions made from oil and gas to the public, the public needs to understand where our bread is buttered. Let's also remember, there was no offer made to assist this sector when there was trouble some years back. By imposing the Royalty Review, as it stands today, we are putting our economy at risk. Our economy will struggle if we levy this payment to a sector that has been the lifeline of our province. Alberta needs to continue to be investor friendly and continue to demonstrate the Alberta sophistication and business savvy. Present the facts. A concerned Albertan. |
| RRE2144 |
I read most of it, and really like the scaled approach suggested for Bitumen and the rebate idea if the Upgrading is done in the province. If anything I would increase the rate more and also increase the rebate for Upgrading here. We need to discourage as much as legally possible to shipping raw product out of the province. I also think the same thing should go for Natural gas. Increase royalities on it then offer a rebate if the gas leaving the province is 98% methane. Lets encourage Propane, Butane and ethane extraction to occur here and not in Chicago. If making changes does cause a short term slow down, thats not a bad thing. Our economy could use a breather right now and the oil/gas isnt going anywhere. If anything it will be more valuable the longer it is in the ground. |
| RRE2145 |
Dr Mr. Stelmach This e-mail is about the royalty review. I work for an engineering company called [Information Removed]. We just have had meeting with one of our client [Information Removed], have been advised that a) we won a substantial project and b) the project is on hold as a result of the royalty review. Why is it on hold? Because the timing and message of the review. The timing is when most of oil and gas companies do their budgets in the fall (bad timing), and message is that if adopted as it the royalties collected will increase by 50% and not by 20% as stated in the report. Even though the final announcement has not been released our company has now “lost” significant amount of man-hours for this year which will be hard to fill in on short notice. (We were previously notified that we have this work.) The royalty review has already impacted me directly. I am P.Eng, PMP, lots of experience in various industries and if required I will likely find work on other projects, but folks with less qualifications may not be so lucky. I support some increase in royalties and some tapping of breaks on the economy. But I urge that the government gets all the facts before making a decision as this decision may send Canada into recession as currently our O&G in Western Canada is what is currently holding the wolfs at bay. Facts such as true costs of doing business, the current profits, if implemented as is what the actual cost or what the paid and collected royalty will be, and if companies slash their budgets by 30-50% like some are doing, what the impact will be on all Albertans, as like it or not, directly or indirectly we are all tied to this O&G economy. [Information Removed] |
| RRE2146 |
I am very concerned with the issues at hand in regards to the Royalty Taxes. I currently work in the oilfield as a rig manager for a well servicing company. [Information Removed] I believe that the compromise for this situation is to have the royalty tax brought in with yearly inflation increments, just like our wages, where u get a cetain % a year increase. I agree with the PC party, but I promise that if the reccomendations are not agreeable with myself, and I will know because my workload should increase if it is favourable, I promise I will never vote PC again, provincially, or Federally and I know about 500 others who will agree with me on that. I will lose my house, my car and my manhood if this royalty tax issue is not resolved within the next 3 or 4 months. The oil companies sound like they are willing to work with you on the issue, so please dont let this fall onto deaf ears, my families future depends on this!!!!!!! |
| RRE2147 |
Please implement the royalty panel's recommendations in full. Do not listen to the bullying from the oil companies. Also please clean up the administration in the energy department. |
| RRE2148 |
This is a non renewable resource that belongs to the citizens of Alberta and Canada, not oil executives in Calgary or the United States. For far too long we have exported this resource at a discount and purchased it at a premium. If Encana or any other firm feels that they have to place their capital in other stable countries like Russia, China...then I invite them to do so. Since Premier Klein had ZERO vision in the development and impact of his policies on this resource and on Albertans, I welcome a serious moderation in the development of this resource rather then the gung ho build everything now cowboy policies that are currently in effect. And if Albertans get a larger % of the revenue that is rightfully theirs over a longer period of time..so be it. |
| RRE2149 |
I can see that this royalty review is tailored toward the government's wishes only and very little consultation with the active members of the oil and gas industry. Any industries in the world would have impacted greatly with this type of royalty increases without any doubt. If the government wants to stop the oil and gas industries on the track, this is an excellent way of doing it. Alberta governement have not learn any lessons over the past NEP policy. They are slow to react to the sight of economic signs of the time and did not even realize the industry is slowing down due to the high cost of doing business. The premiere only learns after big mistakes is done. (like he lost the by-election in the Calgary riding before he release the Transportation funds to the city). I am fully believe that he will not realize this is a very critical issue until he finds out the crash of the industry next year if the proposed royalty scheme is implemented. Unfortunately we don't have Ralph in control any more. |
| RRE2150 |
Dear Sir, I am just out of high school and have found a job retreading tires. I plan to work 2 years before attending university. If the oil industry shuts down our customer base will be gone and so will my job. [Information Removed]Grande Peairie, AB |
| RRE2151 |
With a decrease in oil company revenue, economic incentive to spend in Canada, and a resulting loss of employment in the service and support sectors, how will the Alberta governement spend the "perceived" additional royalty revenue? The spending will be on a program to generate jobs for the newly unemployed oilpatch worker. |
| RRE2152 |
Learning that crown land bonus prices were not considered in costs when calculating netbacks to producers concerns me. If the review left this significant cost component out, what other expenses may have been ignored, and how valid can the results be? [Information Removed] |
| RRE2153 |
Hello I am a wellsite geologist - working in oil patch since last 4 years. I have seen very nice period of economic growth in oil patch. Since my job is directly related with Rig Activity I am seeing it affecting my job adversly this year because of low gas price. Moreover with the increasing royalty issue, it is going to make more worse. I am not sure up to what degree it is politically motivated but certainly this province will see lot of us leaving this province for a new job because base of every job here is direclty or indirectly related to oil and gas production. Me, my family and my friends are totally against this increase in royalty. Why doesnt government go for public refrendum and find the better way of doing it. Thanks and Wish for a better future of Alberta [Information Removed] |
| RRE2154 |
Proceed with the increases in the Royalties as recommended. i am a member of the Conservative Party both Provincially and Federally and fully support the values of both. however, an industry is making money from our resources that have increased in value. it is reasonable to revise the royalty charged and i would argue is overdue. do not bow to the pressure of those companies that see this as a threat to their earnings. they should not count windfall earnings that they have been receiving as their entitlement. there bluffs of pulling projects will be short term and will have them back in the near future. |
| RRE2155 |
any royalty or report that will disrupt the financial idependence that any hard working person in alberta has is rediculous.believe the oil company's when they say exploration will stop if this goes through the way it is written. |
| RRE2156 |
Eddie, Difficult for you to win on this one. Take this opportunity to show true democracy. A provincial referendum should be called, and quickly. Unprecedented, and truly democratic. Only those who are permanent residents of Alberta should vote. And personally, I hope greed on the part of the taxpayer doesn't kill our economy, but it will be us who make the decision, and we "reap" the consequences, good or bad. My previous email on this to you recommended status quo...do nothing on royalties because Big Oil will make us all suffer if we grab them...but politically this is difficult for you. [Information Removed] |
| RRE2157 |
I am absolutely in favor of goverment restating the royalties that are collected. Companies are generating record profits ever year because demand for energy around the world is so strong. Energy companies saying that government shouldn’t make changes are lazy because they don’t want to make change to the way they do business. The government must be firm and maintain its position on this issue so we can continue to develop and improve. The industry will adapt and make the necessary changes to their operating models, and if they don’t there will be new companies that emerge with new business models built on the royalty structure. It is critical that government does what is right for the citizens of Alberta and not be intimidated by greedy energy companies that make threats to government of decreased investment in our province. |
| RRE2158 |
I feel the oil industry in Alberta should most definately pay a much higher royalty rate, and without a maximum cap. Why this industry continuesto be permitted to line their pockets with cash, while the age Joe Albertan is living from pay cheque to pay cheque. Yes, Alberta is booming thanks to our natural resources, but for thousands of us Albertans it's really tough, rents continue to go up as does everything else, except not our paycheques. A single person like myself certainly can't afford to own a home or even afford the utilities, and taxes that go with it. If these big corporations feel that they are hard done by, and keep threatening to take their business else where, well I say open the borders and help them go. We'll see how they like going to war torn countries to get their oil. I'm very glad that finally someone has the "[Expletive]" to stand up to this industry. God Bless you Premier Stellmach, I thank you for the great job you've done todate, you probably will not be re-elected due to the money grabbing oilmen in Calgary that have been calling the shots for the past 50 years. With a portion of the money raised thru the royalties, kindly invest some much needed cash into the Alberta senior housing and medical needs. Why should our seniors that built this province from the ground up be forced to live in extreme poverty. The auxiliary hospitals, nursing homes etc. are mostly private, and they are robbing these people. Lets get a decent government subsidized program put into place by 2010 for seniors needs. The baby boomers are fast approaching 65 and if you think we have problems now pertaining to our seniors, by the time you and I reach 65 we'll be living in cardboard lentos in the river valley or city parks. Thank you. [Information Removed] |
| RRE2159 |
The Royalty structure was put into place to get investment going in Alberta and it worked. The government is getting enough money from royalties now and they should be the ones curbing their spending not the oil and gas companies like is going to happen. It will result in layoffs and slow down. Do you people remember the 80's and Pierre Trudeau? I guess we will be talking in the near future about Ed Stelmack the same way. |
| RRE2160 |
I voted everytime to support Ralph Klein - since Stelmack has come into power it is very apparent that he does not support seniors in Alberta or does not consider that Edmonton is as important as Calgary and other communities in Alberta. If he every tried to get down Gateway or Calgary Trail at rush hour he would know why Edmonton needs to receive at least the same as other communities. He should try a live near this location. I will be keeping a close watch on his points of view prior to any election - and I can tell him that at present he will not or anyone running for the conservative party in my riding will not be receiving any votes from this household. I have never voted Liberal in provinical elections - but I am considering doing so in the next election Thank You [Information Removed] I was very proud to say that I was from Alberta and had no difficulty supporting Klein when he cut back to get Alberta out of debt - it was about time that government starting running the province more like a household where you only spend and purchase things that you can afford. |
| RRE2161 |
I agree that there is room to increase royalties paid by oil and gas companies, but implementing the report, as is; is ridiculous. 1. why would you suddenly take away the ability for oilsands projects that have been started to recoup their capital investment before paying royalties. they had started these projects under the present set of guidelines and economics and should be able to carry on these projects under the present royalty scheme. Any changes to royalties should only apply to new projects. That just makes sense, what is proposed is comparable to my leasing a car and having an agreement with the dealership and then having them call me weeks later telling me they have changed the lease and are charging me more money. 2. The review with respect to gas prices is based on $3 gas. that is ridiculous. use a more reasonable number - how about an average of the last year, two years, or a reasonable figure that sint based on the price of gas as it is today. Thanks, I look forward to the next election; it will be fun. |
| RRE2162 |
Although there is much hype surrounding the oil and gas industry and the enormous profits they "greedily" collect, my family is entirely dependant on the same industry. If the recommendations in the report are implemented as is it would be catastrophic to our personal situation. We implore the decision makers to recognize the implications are much broader than simply collecting larger royalties. The Industry creates a substantial "sub-economy" which has allowed companies, communities and individuals alike to enjoy this "boom" and to tamper with that would have an enormous detrimental effect. It should not go unnoticed that the majority of drillers have been scaling back their capital spending programs due to current natural gas pricing; to further tax this resource would result in a huge reduction in drilling which starts the domino effect of job losses and reduced spending in our province. While there may be room to increase royalty rates it must be on a much smaller scale and perhaps phased in over the long term. Please listen to the Industry leaders and heed their message. Recognize that the overriding message is not about profiteering but about running a sound and economical business, regardless of which industry is involved. This is not only our personal livelihood but my children's future we are dealing with and that I take very seriously. |
| RRE2163 |
I am not aware of enough factual information for the common person to make a judgement on wether or not Alberta is getting their fair share of O&G royalties. I would suggest though that renegging on past agreements, made in good faith, is not how a province should conduct business. This whole exercise is about gettting value from Alberta's resources for the citizens. So why are we only looking at royalties? The province issues tens of thousands of dispositions a year to O&G and others. For $50.00 a pop. As far as I can tell this rate has never changed since instutuited. Why not charge $2,000.disposition. Other provinces charge substantially more than we do. What about when someone gets a lease. A person/company can get a lease (some containing thousands of hectares) and they pay less on an annual basis than the average Albertan pays monthly for a basemnt suite. I believe some of the uproar over O&G royalities stems from the environmental impact of these activities. Yet the province has in place a system by which if a company (any type of industry or individuals) has a negative impact or does not follow conditions, they get a slap on the wrist. It takes several infractions by an individual company before the province even considers a substantial fine. In the meantime companies do what they want. Why do we allow O&G companies who have a dry hole sit on the site until they choose to reclaim it? Could we not put a condition that says all dry holes have to be reclaimed within one year? I know of several sites that would benefit from a process such as this. What about mining. In my area the province (taypayer) is paying for the cleanup of Smokey River coals due to a lack of reclamation bonds large enough to do the job. We have another mine sitting suspended with no reclamation, while 2 others do reclamation as they see fit. What about giving leases to individuals and then having them buy them and flip them so that they become instant millionaires. How does the average Albertan benefit from that? The province is open for business and we will deal with the impacts later probably at the expense of the taypayer at a time when we have no O&G revenue. So lets not concentrateon O&G royalties. I have only mentioned a few instances where the citizens of Alberta are not getting a fair share. Lets do a thorough review of how we conduct business in this province and ensure that we are gettng our fair share in all instances and that policies, regulations, legislation is up to date. We have large dinosaur deposits in Alberta, let's ensure our government isn't one of them. I would welcome a response. |
| RRE2164 |
Mr Premier Ed Stelmach,Dear Sir, I have been living in Alberta for the past18 years,I am married with two children -one in university and one in elementary school. We are ordinary people,both working and raising our family.We are very concerned about the plans of rising the royalities for oil companies as it could kill or greatly slow Alberta's economy.We would like to have OUR JOBS SAFE!! We are not jealous of oil companies making money! Thanks to them we have GOOD JOBS! The review says Albretans could have additional two billions dollars if we increase royalties but they do not say we could lose ten billion and have many fammilies suffer!! We want good economy and safe jobs to support our family!! PLEASE DO NOT PLAY WITH THAT! PLEASE DO NOT CHANGE ROYALTIES FEES!Thank You. |
| RRE2165 |
I would like to voice my support for a decision on the Royalty Review that will benefit "All Albertans", part of slogan very prominent in the Premiers campaign. We all know when it comes to the very large dollars at stake the energy industry will pull our all the stops and paint a very bleak picture. The facts as pointed out in the review are that the energy industry will continue to thrive in alberta. Anyone who has any connections with the industry or has investments knows the profits being realized. Take a look up to northeast Alberta. You must know of the unbridaled expansion going on. One might reconsider the level of Royalties albertans recieve for this non-renewable resource as the Value of this resource goes up. Think very carefully. When the last rate structure was composed the experts then did not forsee the prices levels for oil we have today. It is most probable that the prices levels in the future will be far above the experts of todays predictions. The level of environmental damage is also unheard of. One must just look closely. Ed, this decision will have an impact far into the future. I hope when history looks back upon your tenure in office it shows a man of strength, integrity and forsight who was looking out for the welfare of "All ALBERTANS" now , in your grandsons generation, and beyond. |
| RRE2166 |
Let us not kill the Golden Goose. If it works don't fix it. Gas prices are down and Finding and Developing costs are up. Changing royalties makes it very difficult for long term committment that is required for oil sand development. We have very little cheap conventional oil in Alberta and need the oil sands for future growth. I was here for the NEP and remember the bad years lets try to have some good years for a change. |
| RRE2167 |
To, Premier Ed Stelmach, Who probably will never get to see these words. My instincts telI Me that You are a Gentle and Kind, yet Strong Man, I wish You success. I am glad that I am not in Your shoes, but I try to put Myself there to see how hard these critical decisions are. Here comes my bull in a china shop observations. It would seem to me that the OIL Companies are somewhat Greedy. ( what big buisnesses are not) I could put a pretty long list here but I do not want writer's cramp and let's stay with the issue at hand. These companies invest billions of dollars in to our economy and they want grand rewards, True? In short but crude form, a Dog knows better than to bite the hand that feeds it. If these companies choose to pick up and leave Ab., as You know will not be the 1st time, but it may be the last. Oil shortage, my butt ! If You follow these layed out tax guide lines, GOD HELP US ! , because in time, Oil and Gas will go as the way of coal and eventually the Dodo Bird. Please do not let Us down and be Greedy like other Big Buisness. There is I believe, some (humbley) Wisdom in these crude words. Sincerely, [Information Removed] |
| RRE2168 |
There certainly is a lot of emotion surrounding the recent royalty review report. In my opinion, there are a few major flaws, both in the report and the way it has been communicated to the people. As has been commented on in numerous letters/articles/interviews already, the cost bases are historical and not at all representative of the current market or the likely trend for the future. We have all seen the cost escalation in general life, but services in the O&G industry have gone up considerably more... so much so that it drastically distorts the profitability picture of our projects. Another major "omission" is the profits that are sitting in the pockets of all those investors... excuse me but with Alberta being both entrepreneurial and well educated I would venture to believe that many of those investors are actually Albertans so how are they not receiving the benefits from O&G profits... not to mention the higher corporate taxes those companies are paying to the government. If the public were educated on the economics of projects, the upfront risks, the losses incurred during the learning phases that preceed these "windfall" successes and how the rates of return compare to projects around the world (O&G and other), then Albertans might begin to see that they are not really losing out much. Yes, everyone can agree that there should be negotiations on amending the royalty regime to meet current market conditions (grandfathering Suncor and Syncrude does not make sense as their original environment was considerably different than they are now enjoying) but it should be a collaborative effort and staged so that projects, and investors, can adjust their processes to account for any royalty changes. Let's keep people well educated in all aspects rather than only communicate messages to serve certain agendas. We'll be better off for it in the long run. Let's keep that Alberta advantage and not be naive that radical changes won't impact our well-being. |
| RRE2169 |
Mr. Premier, I was born and raised in Alberta - [Information Removed] now however, building a house in Calgary (my home town) and plan on moving back as of June 2008. I have a wife and two children - my daughter is 6 and my son is 3. Why do I share this information? Well, regarding your potential plans to charge Royalties to the Oil and Gas sectors in Alberta. All I can say is this - it's a BAD business move and I plead with you NOT to do it. The trickle down affect it will have on the economy, as a whole will push Alberta into a recession. Not only will it affect jobs in the Oil and Gas sectors - it will affect the service industries - tourism and foreign investment. (Foreign investors will not invest in Alberta if they see an unstable economy due to bad business decisions from its government). Why do I say these things - because, it's a fact and I care. Why do I care? I care because I am an Albertan by heart and should you implement these royalties - it will affect my move to Calgary and I won't be able to do business in Alberta and most likely have to sell my new home. In addition, you mentioned within your report that Albertans have a right to the Royalties - well frankly, that sounds more NDP that Conservative if I may say. No one is entitled to anything - an individual must work hard and make things happen for themselves. There are no free handouts in the real world. The Oil and Gas companies do make a lot of money - but you must consider what they contribute to society as a whole. They contribute jobs - they contribute life style - they contribute to the local economy just like any business. And just like any business - why should that business share its profits with individuals who are strangers. It's no different if I ran a grocery store and the government dictated that for now on I share 20% of my profits with the rest of the community - why would I do something so foolish. It would put me out of business and I would move out of the province and build shop somewhere else. Mr. Premier - you have to run the province like a business. Think about strategic decisions - think about accountability - think about making Alberta competitive in our current business landscape. It's never been proven in any society whether North America or oversees - that the more your tax it's people and or it's businesses - the better off everyone will be. In true economics, it just does not work. I hate to compare you to someone but I must. When Mr. Klein ran the province he ran it like a business and he made sure that he would never go down the road you are thinking of trespassing on. Really think about what you are implying and think about the long-term affects this will have on Alberta and Albertans. Don't do it Ed - I beg you don't do it for the sake of our future and the sake of those Oil and Gas companies. Believe me they will leave and take their profits elsewhere and leave thousands of people jobless. One more thing - are you sure you are not receiving pressure from Harper's office to retain these monies in order to finance the War effort in Afghanistan? I hope not! Ed - call me if you want to discuss this further and I hope I have made in impression. Sincerely, [Information Removed] |
| RRE2170 |
Please do not destroy our livelihoods by implementing the suggested changes contained in the new Royalty Review. I think the data was flawed and does not truly reflect the costs involved in recovery of oil and gas today! We do not want the Alberta Gov't royalty review to have the same devasting effect as the NEP had on our lives!!!! |
| RRE2171 |
I really felt I had to respond to you personally as I feel as an individual I needed to speak out. I have been around for the O&G industry and its boom and bust years. I take great offence to the report that I know will ultimately have a negative affect in Alberta and Canada. Considering I have been in the Oil and gas industry for over 25 years and remember what the “bust” felt like in the late 70’s, I disagree with the panel’s view. The analysis in the report is flawed Ø The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, Ø The Report bases its recommendations on outdated or erroneous costs, and Ø The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today Ø Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and Ø The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta Ø The recommendations will have a substantial negative impact on Alberta and Canada’s economy, Ø The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, Ø The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and Ø Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. I remember large layoffs with trickle effects: suicide, domestic violence, drug and alcohol abuse, strains on social services and EI, small communities with service companies who rely on the industry to hire them going into bankruptcy, loss of homes, destruction of families, non profits who were no longer getting Industry funding so they had to close their doors, and so on….. Global opportunities will allow O&G companies to take business elsewhere, so the only ones who will ultimately suffer are the people of Alberta and in fact all of Canada. The talk of record returns always seem to forget to talk about company’s record investment of capital dollars into Alberta and it is the company’s money put at risk not the government. I believe every company no mater what industry has a right to a proper return on their investment? Do you know the percent of return of investment O & G companies get? Other industries make far greater percentage on their returns but that doesn’t seem to be an issue. I think there are ways to be fair without crushing Alberta’s economy. I cannot in good conscience support a government who would crush the Alberta economy. |
| RRE2172 |
I wuold like to congratulate the premier onthe royalty report and I hope he acts on it.Resources belong to Canadians not oil companys.Itwould be a great thing you are doing for Canada. James Hamar |
| RRE2173 |
Dear Mr. Preimer In my opinion the Alberta economy is better off with the current royalty regime than the one proposed. I believe that the overall tax dollars the government takes in under the current system far exceeds the $2B in extra royalty payments it would collect. Slow the industry down and watch your short fall in tax dollars grow. Already they are predicting a decrease in oilsands activity of $27B and EnCana has said it will look elsewhere for up to $1B of its investment dollars. To fall back on the statement that we have the largest reserves and where else would they go, is very short sighted. You would kill the Alberta advantage. If the report had identified hundreds of billions of dollars in missed revenues, then I would say we were being short changed. But $2B is small change when compared to the impact of a slowed down industry. Change the system and kill the goose that laid the golden egg and watch not only your government being thrown out but watch our economy slow right down. The industry creates jobs that are far reaching across Canada so decisions you make will affect everyone not just Albertans. I voted for a Conservative Government and if I want tax grabs and anti-industry rhetoric I would vote Liberal or NDP. I am not happy with what I am seeing out of Edmonton these days. Now you are calling for calm in wake of the report. Well what did you expect from the results, everyone to be happy? The oilsands stocks took a hit and people are worried about their jobs. Alberta used to be a place friendly for business to invest and people do not like uncertianity, especially investors. Wake up Mr Preimer, the province is driven by the oil industry and by the large cities so your government better start realizing that. I am sure you could find $2B in government waste and inefficiencies to make up the difference so LEAVE THE SYSTEM ALONE! Sincerely [Information Removed] |
| RRE2174 |
To who ever it may concern, my name is [Information Removed], and I live in Brooks. The reason Im writing you, is to let you know that if the royality review goes ahead with its plans, Then I risk along with all the other men, and women that rely on the oil, and gas industry, losing our income,because oil companies say they will slowdown even more, or completely shutdown. I have a family to support, and if I lose my income then I would not be able to support my family here in Alberta. It is expensive enough to live in Brook. All I ask is that you really look into this, and that you'll take care of your Albertan's, so we can continue to work here.Im just a small voice I thankyou for you time. |
| RRE2175 |
Increasing royalties as proposed by the Review Panel is abruptly bad for Alberta. Increasing royalties on oil >$80.00 and gas >$13.00 would be a good comprimise. Timing is terrible on gas side. Don't kill the goose that lays the golden egg. |
| RRE2176 |
I'm not sure how costing Albertan's their jobs can be looking out for us. How hard is it for people to understand that the impact to the Oil companies will effect more than just the companies themselves. The loss of jobs will cause less spending. I personally have purchased a new pick-up truck for work recently which I most certainly would not have done knowing that in 2008 I may not be working at all. As a matter of fact I will be spending less money in every area possible. I am sure that this action will be replicated by every person working in the Southern Alberta area in the Shallow Gas Industry. How will that be for the Provincial economy. Personally, you can keep the royalty cheques for myself and all of my five family members - I WOULD LIKE TO KEEP MY JOB INSTEAD! |
| RRE2177 |
I am an engineer working for a major [Information Removed] company in Calgary for the last 20 some years. One of my responsibilities is to provide technical and economic analysis of drilling opportunities in western Canada. After reading the Royalty Review recommendations I am fearing of losing my job should the government implement a broad base royalty increase as recommended in the report. Most people in the industry know that Alberta is a mature petroleum basin and cost of finding and developing these resources are very high compared to other countries that was included in the report for comparing of government takes. The economics of finding and developing gas in western Canada is especially challenging with a full cycle cost of over $5.0 per mcf. At the current gas price, majority of these new drilling opportunities (tight gas, CBM, shale gas etc) has becoming extremely marginal at best. Bear in mind that these represent the bulk for Western Canada future gas production and revenue. If the government adopt the gas royalty increase as proposed, I am certain that over 90% of these new resources will not be explored and developed. Therefore royalty payable would be greatly reduced in the coming years and many jobs in Alberta, as well as other part of the country would be lost. Also, most of the junior oil and gas companies in Alberta are gas producers. Recent study conducted by [Information Removed]shows that the "finding and development" cost of gas amongst these companies range from a low of ~$5 per mcf to a high of $10 to $15 per mcf. At a current gas price of $5 to $6, all they need is an increase in royalty to put them out of business. On the oil sand side, there might be some room for adjustments but not to the extent as recommended by the panel. Note that using WTI price to peg the new additional royalty (severance?) is wrong because tar sand oil is subject to heavy discount (as high as $30 to $40 per barrel). Capitals for developing oil sand projects are extremely high and the numbers used by the panel in their report is obviously misleading. I sincerely hope that the government of Alberta reviewing all data, both from the panel report abs well as industry reports and make a decision that is good for all Albertan. [Information Removed] |
| RRE2178 |
I am not convinced given the recent review by the Auditor General and his criticism of the government's royalty approach that a full scale impartial investigation can be completed by mid-Ocotber as promised by the Premier. Alberta's royalty system is one of the most complex in the world and the royalty approach as well as the regulatory environment have been lauded around the world. This is not a policy that the average Albertan should be questioned on as it is a complex, technical matter that requires the competencies of many- to say nothing about the overall goals and objectives of the tax regieme. Therfore, we need to stop and take a breath and review in detail what is best for Albertans as well as private sector. Of course every Albertan is going to say we want more money from Big Oil. There are other ways to have Big Oil pay up- have them take responsibility for some of the needed infrasturcture and social programs needed in Fort McMurray and other areas of the province. Maybe this could be in another form of Private-public partnerships which the government has been advocating for schools and others services. Big-oil, small oil and the services of each stimulate the whole of the Alberta economy. I am not against allowing for a strong investment climate. |
| RRE2179 |
It seems to me that the data presented in the royalty report had major flaws and did not take into account current economics or risks. The "panel of experts" turned out to be misguided. Yur choice is to stand up as leaders and do the right thing or follow the press and lose the "Alberta" advantage. |
| RRE2180 |
Royalty review final report, what a joke. If this proposal gets voted in, the Alberta government will be condemning the oil and gas industry in this province for many years to come. The simple fact is that we will see a huge decrease in drilling and with that a huge decrease in REVENUE. |
| RRE2181 |
I believe all understand the need to keep our economy thriving as well as balance the needs of our environment. The need to increase royalties is fair but I do not feel that the government has done its "due diligence". If the royality plan is truly fair, I believe industry will be open. I do not believe it is fair and would hate to see this turn into another National Energy Program nightmare. As with any policy, industry will adapt and if the government is wrong, the impact will be truly negative as in the 80's. You can tax them all you like but if they move their investment outside of Alberta, we still loose. It takes a long time for them to come back. No grandfathering sounds absolutely insane. If you have invested based upon a certain formula and then are told that it is changed, I would be very angry. |
| RRE2182 |
Raising the royalty is necessary to stabilize the overgrowth of Alberta economy but at the same time, overraising the rate can hinder its gradual substainability. 20 percent is a bit too excessive, try and make a reasonable deal. |
| RRE2183 |
I think the royalty review report is misleading, and if it is passed it will have a negative effect on the Alberta economy, and could and would stall or delay several major oilsand and other oil and gas projects that are scheduled for development in Alberta. This will impact the economy in a negative way, will have an impact on housing prices in Fort McMurray which is where I live, and if economy suffers and the price of our houses drop, particularly when people have moved and invested life savings in their homes, you will then see a huge drop in your voters. You would certainly see a change in gov't if this royalty recommendation if the economy drops to the extent that it did in the 80s, and people hand over their homes to the banks and go back to a 20% unemployment rate. These oil companies aren't threatening they are promising they will invest less in Alberta, and we will also see a decline in international investors. Huge error!! Albertans wake up - any 1st year economics students can do the math and see that we will as a province get less if there is less revenue to draw from....its time for people to see the big picture!!! |
| RRE2184 |
As a direct employee within the oil and gas sector, I hope the government - my MLA takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations will be far reaching and impact Alberta in many negative ways not in the least major job losses. The infrastructure that has been developed to support this sector will be decimated as we all know all have paid premium prices to live in Alberta. |
| RRE2185 |
As an employee of an Oil Sands Company I feel that the government has not looked closely at the impact this royalty recommendation will have on our industry. I think the Government and the Oil Companies should review the information together before moving forward with the implementation phase of the recommendation. |
| RRE2186 |
Dear Premier Stelmach: We are impressed with the care and attention to the problem of oil royalties given by the Alberta Royalty Review Panel in its final report "Our Fair Share". We urge you to implement a more favourable royalty rate structure to benefit all Albertans. The enormous profits the oil companies report should be a clue that a higher royalty rate is both feasible and justified. The [Information Removed]has released a study stating that a reasonalble share for companies would be about 30% of net revenues (they currently receive 53%). With this model, albertans would receive around 60% of net profits, a much more reasonable rate of return for Albertans, the owners of the resource, while the Government of Canada would receive the remainder. We feel that this should be done by raising royalty rates for the tar sands industry from 25% (post-payout) to 40%. In addition, we encourage the government to implement a tax of $40 per tonne of greenhouse gas emissions released from the beginning of any new projects, as well as on current projects. Perhaps it is time for the Government of Alberta, on behalf of its citizens, to seriously consider going into the oil business on a limited trial basis, to permit it to acquire both profits and royalties on behalf of us all. We further urge you to set in motion whatever rulings are necessary to permit us to recoup our lost royalties. It is simply a scandalous situation that cannot be allowed to rest. We wish you success in your endeavours. We appreciate that you have to deal with strong forces, but we urge you to act on behalf of all of us to remedy the existing situation. Sincerely, [Information Removed]Edmonton, Alberta |
| RRE2187 |
I understand the importance of wanting to sustain oil production in this province, however I do feel it necessary to increase oil royalties. I often feel that this government puts the concerns of industry before those of the citizens of Alberta. By increasing oil royalties it would demonstrate that this government is not afraid to stand up to the oil industry and puts its citizens first. I realize the importance of oil to our economy; however this is, afterall, the peoples' province and not "big oil's". Why should we allow oil companies to get a free ride while many citizens are struggling to pay the rent despite the economic boom. |
| RRE2188 |
Dear Premier Stelmach, I am an Albertan that has lived and worked in Alberta all my life, not in the oil and gas industry. But I am aware of the money that is generated from it and also aware of what will happen if this review goes through as is, we will be kown as the province that could have had it all. there may very well be some increases that should be made but not the kind that are suggested in the report. I trust you will be very carefull with what happens next and not be swayed by some people that can not stand to see others do well. Do not forget the money that these oil companys invest in order to get the returns. If you do implement the review as is you and your govenment will lose my vote. Respectfully [Information Removed] Lethbridge ,Alberta |
| RRE2189 |
Two points to consider 1) If companies (in the oil sands) were aware of this "Fair Share" emphasis, most of these projects would never have been built. This will be a minefield of lawsuits etc. if grandfathering is denied. This will tie gov'ts hands in the future as no one will committ the capital required without significant guarentees and incentives. 2) If heavy taxation of the oilsands is a must (for your government) then why not provide heavy incentives to build bitumen upgraders in Alberta that will provide quality jobs for Albertans (and taxes) for years to come. |
| RRE2190 |
I believe the government should get on rapidly with a better very higher rate royalty program. Royalties should reflect the fair total payment to Albertans for the oil removed from their lands and be done in a totally accountable open to the public scrutiny system. |
| RRE2191 |
I do not agree with the panel’s recommendations and feel that by instituting them the AB government will help to push the AB economy into a recession. All of Albertans benefit from the oil companies making money in AB, our wages are higher, our houses are worth more, I don't think most Albertans would say that the oil industry is taking away from Albertans if anything they are giving us a better way of life. Raising royalties 15% is crazy, sure maybe they should be raised somewhat but lets not go and scare the whole industry. I owe stocks in many of the oil companies in the oil sands and the fact that they dropped an average of $5 is unacceptable and the lack of concern from this gov't is unacceptable. The AB gov't should make us feel like they are not going to hurt our economy and that they are interested in maintaining the wealth that has been garnered by this province due to the fact that oil companies are in AB. This report has a very liberal; and nationalist feel to it and as a long time conservative supporter I will be very disappointed if they put an end to our booming economy and to be honest this would make me vote liberal in the next election. Thanks |
| RRE2192 |
this proposed royalty hike comes at a very poor time, natural gas$$$ down rig activity way down if this path is continued there will be alot of empty buildings around G .P ,AND costs of living are going down up here witch is dependent on natural gas. all this happening on your watch!!if it is not broken WHY?? are you fixin,it??,A worried home owner thx. |
| RRE2193 |
Don't you collect enough taxes? I don't recall voting for farmer Ed, perhaps there should be an election or other form of democracy here before we have a socialist running Alberta. |
| RRE2194 |
It is my sincere opinion that the Task Force, no matter their earnest intent, have missed the real problem. It is the Auditor General's comments that should be heeded -- in that way the province recoups the extra funds and the accountability of both government bureaucrats and the oil and gas sector can be made to be more accountable. There have been some very convoluted financial reports, over the years, that make it difficult to assess the appropriate royalty -- please have all the companies report honestly. We need to ensure that it is a "win-win" situation for both parties. [Information Removed] |
| RRE2195 |
As [Information Removed], I urge the Alberta Government to reconsider any changes in Alberta Royalties at this time. There is a long list of Industry related statistics that indicate there could hardly be a worse time to consider, let alone implement, any additional changes to further hamper an Industry already being restricted by low natural gas prices in relation to high finding, development and operating costs. These include, but are not limited to severe decreases in exploration and development capital budgets, decreases in total Alberta Crown land sale bonuses and average price paid per hectare, decreases in active drilling and service rigs, decreases in active seismic crews, all as a result of current natural gas prices which drive activity in the Western Canadian Sedimentary Basin, now a natural gas and oil sands driven basin. There have already been substantial layoffs in the service side of the sector, and will undoubtedly be more, due to low gas prices and reduced drilling budgets. This will recover as gas prices increase again, however, the last thing needed is further reductions in capital budgets and jobs due to increased royalties. Additional negative impact by increasing royalties will only further increase the above referenced negative statistics. The long term impact of such an ill conceived program could be catastrophic to the economy of Alberta for many years to come. I urge you to consider the comments and recommendations not to increase royalties that have been tabled by numerous financial institutions, which as of this morning now includes Wall Street... these are not un-intelligent people and know about which they speak. It's very simple, the pie will shrink and the end result will be less royalties and Crown land sale bonus dollars than Alberta receives today. The corresponding spin off effect and downturn to "ALL" of Alberta, which does in fact entirely depend on the oil and gas sector to drive the economy, will be severe and widespread. Does this government not remember the effects of the NEP on this province in the early to mid 1980's and how many people were hurt and how long it took to recover? Many hard working Albertans never did. Sincerely [Information Removed]... a native Albertan born 57 years ago, raised and still living in what has been until now the greatest Province in Canada. I urge you not to destroy it. |
| RRE2196 |
From my point, the new royalty rate is a disaster for the oil sands industry which has the highest capital costs in the world. I believe the rate should be reviewed, but never should be reached at this level. the new rates will drive thousands of workforce out of Alberta. and also it will make me to change my opinion in the coming election. |
| RRE2197 |
One ridiculous oversight in the report. The Alberta Gov't receives a royalty for natural gas and oil production. The report is changed with examining these rates and that is fine. The reduced royalty for oilsand production is fine since is is a lrarge resource that needed to be developed over the last forty years or so. That is also fine. The concept of reducing royaties in order to promote certain activities is a sound gov't strategy. The one thing that I find that is ridiculous is the royalty for carbon dioxide production is set at zero. I can't believe that this report is using this reduced royalty to promote carbon dioxide production. It must just be a simple oversight that needs to be corrected. But its a ridiculous oversight. |
| RRE2198 |
I am a long term conservative both federally and provincially. I am a card carrying conservative provincially. I came from Ontario 30 years ago and now feel more Albertan than Canadian. I am very proud of Alberta and am a contributing citizen of the province. I have worked in the oil and gas sector for 30 years as a geophysicist. I am now an independent consultant to various small oil & gas companies that work in the conventional areas of the Alberta basin. I work for myself and do ok at it. The ability to be an entrepreneur in Alberta is what makes us different than the rest of Canada. I worry that we will lose this as we grow. I understand that the oil sands need to be cooled down and I would be ok with seeing increased royalties to new oilsands projects. I have serious concerns that the while cooling the oilsands development, the Alberta government will destroy the struggling conventional oil & gas sector in Alberta without even realizing it. The conventional oil & gas sector is still reeling from the royalty trust legislation changes last fall. Most small oil & gas companies are fighting to survive. If you slam the conventional oil and gas sector again with increases to royalties, it will be a significant blow to this fragile industry. Stock charts of virtually any small to mid-sized company shows that while oil prices are high, companies have difficulty creating value. The entrepreneurs that make Alberta special are fighting to survive a high cost structure and ever smaller rewards as our pools get smaller and smaller. The basin that we are exploring is tired and worn out. Pools are difficult to find. I know this as my job is as an explorer. Compare us to other areas if you wish, but the proof is in the performance of companies. If it was a gravy train out there the stock charts would show it. They don’t. If the Alberta government destroys the conventional oil and gas sector with increased royalties I for one will be very upset. I suspect I am not alone. If you wish to discuss please feel free to call me at [Information Removed] |
| RRE2199 |
Before I make any comments I have to state that I have finiancial interests in the energy sector. Secondly I am employed in the energy sector. That being said....Please raise the oil and gas royalties, I do not think it is going to have any long-term negative repercussions on the energy sector or economy in Alberta...and put the extra funds raised into the Heritage trust fund [Information Removed] Edmonton, Alberta |
| RRE2200 |
I just wanted to contact my MLA, I live at [Information Removed] , Calgary I happen to work in the oil & gas industry and I am concerned with the Royalty Review. Fortunately because I work in this industry, we as employees are given all the facts to this issue. Unlike the general public who is only getting the facts from the media. It is very disturbing to find out that the figures used to determine the committee's anyalysis is from 2005. This is not a true reflection of todays market. I believe that if these suggestions are taken the economy of Alberta will decline significantly. I believe that a balance is needed between the oil companies and the government for true enconomy. I feel that Alberta has a huge surplus of funds already and is doing a poor job with this money. Living in Calgary over the past 20 years I have seen a lot of change and I can honestly say that the last few years have not been pleasant to live or watch. I am now afraid to walk the streets at night or early morning even with my dog. Our young people have to be careful that they don't get into an argument as a knife could be pulled. I went 3 years with out a family doctor, and have spent many hours in our emergency waiting rooms. Mismanagement of the money we have is so bad, I hate to see what our government will do with extra funds. Learn to manage what we have efficiently and then go on. Yes, there are positive things form the review report that do require attention, but taking more money from companies is not the answer, companies that put so much back into research and development and the general economy of Alberta are worth listening too. I am only 1 person but my voice should count. Please take your responsiblitly to get all the facts before making your decision on this very important subject of Royalites in Alberta. Thank you for your time. [Information Removed] |
| RRE2201 |
To whom it may concern, A someone involved in development and evaluation of in situ oil sands projects I can attest to flaws in the panel's royalty review report. I believe the [Information Removed]repsonse is an excellent response to the report and highlights the majority of the major issues. One major issue not addressed is the increasing costs that operators will incur to meet greenhouse gas emissions reduction targets. This makes the oil sands analysis and conclusions of the panel's report even more invalid. It is clear that the report was written with a poltical agenda to sway the common person based on a proposed sense of 'fariness' on an issue that many Albertans simply don't understand. The media further given credence to this flawed report further skewing public perception and escalating this already emotional issue. The release fo the governer generals report this week further fuels the fire. I fear that the provincial government will make a rash decision and based on their on and the publics misinformation to improve short term popularity at the expense of long term prosperity. Needless to say the proof will be in the pudding. Producers who have options will invest in their best returning properties. This is a bigger and more important decision for Alberta. Through out the panel's report and start with a realistic basis for making this decision. Make an effort to have the public (or at least their representatives who will be making this decision) informed with relevant facts and proper analysis instead of having the media convey a flawed analysis appealing to public emotion. Do it right - this is too important to all of us. |
| RRE2202 |
-We pay world price for oil & gas. Why not we are charging world oil and gas royalty? Tell us averge rate of royalty in top 10 countries. -Royalty was set when oil was at $10/barrel in 1998.Now it is at $80/Barrel.So you do not need oil companies to wrightoff all expenditure first and 1% royalty should be full royalty. -Why you allow raw bitumen ship outside Alberta and leave all sluge and use lots of water. -You have expert in goverment.Provide all data and decision to back up us.We are owner and govermnet should report to owner of property. |
| RRE2203 |
Sir, It is vital that in the case of a non-renewable resource that the citizens of Alberta are fairly compensated through reasonable royalties. It is therefore incumbent upon the Government of Alberta to legislate the recommendations of the recent Royaly Review Report. This issue is critical to the survival of this Province and it's citizens. The revenue received from these royalties must be prudently invested to build a fund which will provide replacement revenue to Albertans once the oil is exhausted. If the Alberta Government employs the model used in Norway, Albertans will enjoy billions of dollars of revenue annually in perpetuity. Please stop frittering away this dividend and build a fund for the future. By converting oil into a legacy fund, the Government will create an "engine" of revenue for all Albertans to enjoy. Whilst the response from the Oil industry must be considered, it must also be seen as an obvious vested interest. A similar reaction would have been seen from Sugar Plantations Owners when the abolition of slavery was proposed. It is obvious that Oil shall remain a scarce and valuable resource and the imposition of fair royalties will promote efficiencies in this industry. Therefore dire predictions of woe should be taken with a generous pinch of salt. Thank you for the opportunity to provide feedback. And thank you for entering what must be an uncomfortable course of action. There will be much resitstance to this action from the vested interest but the Government must "do the right thing" Best regards [Information Removed] |
| RRE2204 |
Raise the rates! They are the lowest on the continent. They should be much higher reflecting the stable social and political climate of Alberta. Sure the oil co's are complaing so what... Even if the royalities were 20% higher (where they should be) oil co' would be very profitable and proceeds could be used any number of projects.. Easier acess to higher education, infrastructure, economic diversification, etc... |
| RRE2205 |
the review panel is anti-industry, to them, it's better don't do any exxcavation, keep Alberta's property forever! |
| RRE2206 |
I completely support the analysis and recommendations of the royalty review report. If anything, the increase in royalties recommended in the report are on the low side. This is coming from someone whose job depends on the health and development activities of the oil sands industry (I am an environmental consultant who helps oil sands clients with their regulatory approvals and environmental management). I am confident that the hydrocarbon sector will continue to fluorish in Alberta if the royalty report recommendations are instituted in policy. Additionally, it will redound to the benefit of all Albertans if the increased royalty revenues are invested in research and innovation development, as well as much needed higher education and infrastructure needs, to ensure that Alberta's future is prosperous far beyond the decline of our hydrocarbon industry. Yours sincerely, [Information Removed] |
| RRE2207 |
My background: I have lived in Calgary for 29 years and am an accountant. I am 54, I lost everything including a marriage due to the NEP and finally I have some equity in a home(still a mortgage), and some money put away for retirement. I am interested in Economics Nationally and Globally and am pretty politically savy. Having heard in the press a summary of what they perceived was in the report I was pretty shocked at several things: 1- The reports was issued to the public before a considered evaluation of its impact was done by educated government representatives. 2- The disregard, shown by the early release. of the impact on capital markets, public response(usually based on little infomation, just 30 second sound bites) and the Eastern Canadian attitude to Alberta (rich, redneck, a possible source of even greater funds). It made me shudder. 3- The belief that Albertans were somehow mysteriously being "cheated" of royalties due by an inept system. The government agencies charged with the calculation and collection of Crown and Freehold Royalties are well run, extremely efficient with the funds they are allocated to operate on and monitor closely the Oil Companies in this regard. The reporting of production, costs and royalties is frequent, thorough and well developed with large expenditures in systems to support this by both industry and government. It is a farce to consider that there is money leaking through the system and an insult to the government departments that operate in this process. 4-Various allowances were put in place to encourage high-risk activities (Deep Well) or to make the royalty calculation fair (significantly different Operating Costs at different processing plants). These should still remain. Summary. DO NOT KILL THE GOLDEN GOOSE Royalty rates can be increased a REASONABLE amount without killing investment, and still bring more money to Alberta - perhaps 3-5% increase of the existing rates. DO NOT FORGET ALBERTANS ARE ALSO SHAREHOLDERS, EMPLOYEES, CONTRACTORS AND SUPPLIERS OF THIS INDUSTRY AND WE ALL BENEFIT GREATLY. To change all the calculations accross the board would require a huge investment in IT processing by the government and industry and slow implementation significantly. IF WE ALL LOSE OUR JOBS - THEN GOVERNMENT SPENDING GOES UP (UI, SOCIAL SERVICES) - GOVERNMENT REVENUES GO DOWN....I PAID A LOT OF TAXES LAST YEAR - DO YOU STILL WANT MORE ? OR ARE YOU GOING TO PAY ME WHEN I COME WITH MY BEGGING BOWL ? I AM ALBERTAN - DON'T FIX IT WHEN IT AINT BROKE ! |
| RRE2208 |
I am very concerned about the proposed changes to the royalty structure. I am part owner in a small junior private oil and gas company exploring in Alberta and Saskatchewan. We are very cautious about where we alocate our drilling money and would no doubt be affected by an increase in royalties. Many of my concerns are being made to the province by other parties, but I would like to add my voice and make two points in particular: 1. Our company would like to explore for gas but the prices are quite low and marginally economic even with the current royalty rates. We target shallow gas locations (less than 1000m depth) with initial production rates of 750 to 1000 Mcf/d. When evaluating a potential prospect we estimate the chance of success based on a number of criteria. We then run a risk analysis to see if it is economic to drill given estimated prices and gas rates over the life of the well. If higher royalties are included in these economics, many wells deemed 'risky' would not go forward simply because a successful well with high gas rates would be penalized right away. This would, I believe, result in fewer higher risk wells being drilled - which is the only way we (Alberta) will be able to maintain healthy drilling levels and therefore gas production into the future. Investment would simply go elsewhere. I would like to suggest that a period (perhaps 2 years) of reduced royalties be applied to new gas wells so companies have an opportunity to recover some of their risked capital while the well is at its peak production rates. 2. A slowdown in industry activity has already started with lower gas prices and escalating costs resulting in the layoffs of many people in the service industries. By increasing the royalies many further reductions are possible in both the service industry as well as in oil companies. I am a geologist in my mid-fifties and in talking with other peers many have stated that if there's no money to be made in the industry then maybe it's time to retire out to the coast or whatever. This is not just idle chat - the only reason many of the province's best entrepeneurs are still active in the industry is because it's exciiting and viable and many are getting fed up. Many already have their second home waiting elsewhere. Any poorly considered change to the royalties that would punish successful companies could result in the permanent loss of an irreplacable resource - experienced people. There is already a large gap in the ages of the earth scientists and engineers as a result of the purges of the '80's and '90's. The industry is already facing a crisis in 10 years or so and this would cause permanent damage to the potential to keep Alberta's oil industry running effectively. Please take the concerns of the oil industry seriously. [Information Removed] |
| RRE2209 |
Review Well sites that are controlled Pneumatically first, There is enough natural gas exhausted into the air and Never accounted for....PS The gas exhausted out is enough to heat a city... |
| RRE2210 |
As an Albertan, who has lived in Calgary since 1964, there is only one time that I can think of where the doom and gloom forecast was this bad, that was in 1981. Is it now time for our Government to put the province in complete economic shut-down? Do you not realize the implications of such a royalty increase? We as a province have had such a good long run, with surpluses and now we have no debt. Even though the Government public ally states that the Oil Industry is not our only source for our good economy, everything is affected by it. IF this goes ahead as planned we will be in the same sorry state of affairs that our American friends are now living. I understand that there is a poll being taken about this subject. However, one of the first questions is “Is anyone in your family part of the Oil Business". If the response is yes, they are not interested in your "vote". If this is true than it appears that our "Trusted Government" is manipulating its' results. |
| RRE2211 |
Dear Mr Stelmac and company, Your recently sponsored commisson on the Alberta royal review is seriously flawed, non more so than in the area of projected enregy prices, and the impact it will have on marginal well economics and on continued investment. Alberta is arguably the richest per captia jusidication in North America, thanks to the strong leadership provided over the last decade by the PC goverment. If implemented, the proposed royality regime will wipe our much of the gains and prosperity enjoyed by Albertans. This sort of tinkering with the prosperity we have all worked hard to develop is totally unacceptable. As you are well aware, you have been placed in a position of leadership by the PC party, elected by the majority of Albertans, including myself and members of my household. You will be well advised not to assume that this support can be taken for granted. In the best interest of Albertans, as well as your own continued electibility, I urge to selve this report and allow the oil and gas industry to continue being the machine that drives Alberta and to a large extent, Canadian econimic well being. Don't [Expletive] around with the goose that lays the golden egg. [Information Removed] |
| RRE2212 |
My husband and I moved to Northern Alberta for work, becuase the economy in North Western BC was so poor. This royalty review is threatening both of our jobs, and all we want to do is make an honest living. We have invested alot in coming to Alberta, with purchasing a home and starting a familly. There are a lot of young people in this province that rely on work related to the Oilfield. I know that living expenses are high in Northern Alberta, but they are high anywhere that there is work, that's usually how it works. If this Royal Review is passed, it will economic suicide. Everyone will be impacked whether they work directly or indirectly in the Oilfield. With the empoyment rate in Canada so low, why would the government want to risk more job loss? Where are all of these people going to find work if all of these Oilfield Companies pull out of Alberta? |
| RRE2213 |
I do not support the implementation of the recommendations of the Royalty Review Panel. It has been established that the "Our Fair Share" is a flawed document; as the Review Panel did not complete or report all the tasks required of the them as it it is outlined.. 1. How Alberta's royalty system compares to other oil & gas regions taking into account investment economics, industry returns & risks in Alberta. The panel stated "An important aspect of Alberta's Royalty system is how it compares with those in other regions that produce oil & natural gas and that they will be examiing the similarities & differences to help access whether or not Albertans or receiveing a fair share, as owners of the resource and the attractiveness of Alberta as a place for oil & gas companies to invest. The panel then essentially ignored its responsilibity to diliegently complete that term of reference or at least to report its findings. There is no discussion as to why jurisdictions such as Libya or Jordan were selected & felt to be compatiable to Alberta, while Saskatchewan & B.C. were excluded from the entire report. I feel that the jurisdictions were selected soley on the basis of having exceptionally high government take from their petroleum resources. 2. "The panel stated that oil & gas are important to Alberta economy and that if they deem changes are necessary they will need to assess the impacts these changes may have on Alberta's economy & the financial situation of the provinence. The panel did not do its job here as I see nowhere in the "OUr Fair Share" document where the financial impacts to Alberta's economy were addressed. Either this work was not done or it is not being shared with Albertans. This alone should be enough to shelve this report until this work is done and reported openly to Albertans. |
| RRE2214 |
I agree with the increase in royalities and believe it is long overdue.As far as "BIG OIL" and their threat to pull out of the province ,great lets pull their lease agreements and negotiate with some serious businesses. |
| RRE2215 |
Go figure, if you live long enough you will see it all, on one hand the incompetent Stelmach government is ready to kick Alberta Energy companies where it hurts for Billion of dollars in royalties, yet is free giving Millions of dollars to Quebec companies for technology developments. Alberta universities and schools need technology grants and fast Ed is giving it away to the East?????? |
| RRE2216 |
In working in the Oil and Gas service sector I believe that the increase in royalties is likely to result in a significant loss of jobs particularly in the Natural Gas sector which is already at the bottom of the business cycle. Captial budgets will be cut significantly. I do recognize that this is posturing by some majors but I believe a 20% increase will certainly result in many job losses (potentially mine included) and will also have a spin - off impact on all other Alberta sectors. I would strongly encourage that the government reduce the increase in royalties and/or not implement the recommendations by the royalty review. Thank you for your consideration... |
| RRE2217 |
There are very valuable recommendation in regards to credits for upgraders that are belt in Alberta, however the recommendations in regards to raise the Roaylty went too far. Thank you, [Information Removed] |
| RRE2218 |
I believe we should adopt the reports reccomendations. The oil companies are taking far too much out of this province. Look at Norway, they are taking far more in royalties than we are, and it appears that none of the companies are leaving because of the royalty structure. We can't bow to the threats of the threats of the oil industry that they might take dollars to invest elsewhere. |
| RRE2219 |
Though I’m hopeful and confident the Tories will do the right thing, I wanted to go on record and state that I will certainly NOT vote to keep a government that puts the panel’s royalty recommendations into effect as-is. The report is fundamentally flawed and the economic impact would clearly be devastating. 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. |
| RRE2220 |
Gentlemen: My big concern Is how much "more" is or has been going on in avoiding and Evading tax. The recent [Information Removed] case should come into focus: 1. How much inside collusion could exist between the companies and the Royalties group - go ahead - we didn't see anything. 2. Is there any collusion between those in industry and those working these "Royalty" jobs? Keep the same old regulations and your payout comes later? 3. If too much complaining about Royalty hikes, some good forensic accountants should be assigned to reviewing this entire matter. * [Information Removed] case - Tax Department lowers tax by having insider pay off the assessor. Let the tax payer and Eddie pay. If Eddie hits us with royalties, we lay off people and Eddie is no longer popular. [Information Removed]privitized in 1994 and are "free" to meet and set their own agenda? I would really be checking with [Information Removed]the why, who, what, why and where of all those employed within these Departments and their connections with the energy companies. There is potentially something perhaps bigger than having to dupe the dopes. The experts are now on the stump - for now, anyway. |
| RRE2221 |
I am not in favour of an increase in oil and gas royalties. There has been a slowdown in drilling over the last couple years due to huge labour cost increases and a stronger Canadian dollar. A lot of the drilling rigs have moved south of the border wher it is more proitable to operate. Service work is continuing, but a warmer climate is creating a shorter season where a lot of this work can be performed. Having lower royalties in Alberta (than other areas) is allowing businesses to continue to operate dispite the higher operating costs. The oil sector creates so much wealth and so many jobs in Alberta. People don't seem to realize that the money doesn't have to go to the government for it to benefit Albertans. Our economy is the envy of the rest of Canada. Why would you try to stifle it now, when It has been successful for so long? [Information Removed], |
| RRE2222 |
Modesty, reason, and rationality must prevail. Be prudent and be cautious. Don't hammer the oil companies but do increase royalties MODESTLY. |
| RRE2223 |
I have lived in Alberta my whole life and lived through the NEP that seriously impacted the oil and gas industry in Alberta. I am very concerned that bringing in the royalty report the way it was presented would have a devistating effect on all of Alberta. I think that there is room to increase royalties, but not without taking into consideration the price of natural gas and the increased cost of exploration and operation that has taken place in Alberta over the last couple of years. I think you need to understand the impact that this will have on the whole province, as this industry impacts everything. Over the last couple of years the industry has had higher profits, but the people who work for them has benefited in increased salary and bonuses. This has benefited all of Alberta in consumer spending. It will all go away very quickly when the industry slows down to a crawl. I know that people have already been laid off from service companies because the industry was already starting to slow due to increasing costs. Please consider the economic conditions that exist today, and try a comprimise, where Alberta will see oil and gas continuing to add to our economy, but the government will get more revenue from royalties. |
| RRE2224 |
I believe that the government should raise the royalties on heavy, and possibly conventional oil, but decrease the royalties on natural gas in Alberta. Over 70% of the wells drilled in this province are for natural gas and the price is currently low. If we increase the gas royalties, drilling which has decreased 35% from last year will decrease further and have a major negative impact on our economy. Remember the NEP and the effect it had on our province. |
| RRE2225 |
Failure to implement the full report is nothing short of a sell out to the oil companies. If Danny Williams in NFLD can pull it off, I expect nothing less from the leaders of Alberta. This is it ... either the Conservatives do what is clearly the right thing ... or they get written off as totally useless. |
| RRE2226 |
It appears that the Review has already been discredited by many observers. Seems that the "Alberta Avantage" is to go out the window if the report is accepted ....which, presumably,a sensible government would not tolerate.. Makes me wonder how the panelists were selected and provides yet another reason to question the capabilities of Mr. Stelmach. [Information Removed] |
| RRE2227 |
It is about time there has been a royalty review. I beleive there should be a sliding royalty scale (as the oil price goes up and down). The new royaly rate should scale up to at least $150 pre barrel of oil. |
| RRE2228 |
Whilst appreciating that many problems have been caused by the lack of planning and action by the previous government, do not rush to make changes for political expediency.Most of us, including myself do not have sufficient understanding to comment on this complicated issue |
| RRE2229 |
I am concerned that the increased royalties recommended by the report will cause reduced development of Alberta's resources, so that the increased royalties to be received will not be realized. It seems to me that oil sands development is extremely expensive with a long time before investment is recovered, so I'm concerned that in a short-sighted effort to get more money from the developers that Alberta's long-term royalty revenue will decline. Also, I am skeptical that I will see any benefit from my increased "fair share" should increased royalties happen as the report contemplates, since the government continues to operate with significant surpluses without significant return of these surpluses to individual tax payers (either through rebate cheques or reduced tax rates). I am aware of the need for increased infrastructure spending, increasing healthcare costs, etc., but if the premise of the royalty review is to give Albertans their "fair share" of resource revenues, then I think a portion of these royalties should be returned to Albertans so they can choose how to use these funds rather than government deciding. |
| RRE2230 |
I am the president of a small oil company and if this report is accepted we will cease to do business in Alberta. There has been a competition creep happening against Alberta for several years(10) which has led to my concerns about doing business here prior to the panel report. The report is uniinformed and does not follow the mandate it was given in also figuring out the return on investment for those of us doing business here. Alberta has been my home since [Information Removed] and I did do my time thu the rough portion of the NEP but wanted to stay. This report makes me want to leave. Use some common sense and throw this report out. [Information Removed] |
| RRE2231 |
Dear Ed. I would strongly urge you to impliment the proposed royalty reveiw as is !! please do not water it down or change any of the suggestions to please the Big oil and gas companys,for to long they have been feeding at the trough provided by king Ralph and Murrey Smith et.al.do mot be bullied by big oil and gas or the Tory old guard,as the people of Alberta are behind you for now, and are watching carfully to see what you will do re.the report. this is your big chance to show your detractors that you are the man to lead this Province into the future. [Information Removed] |
| RRE2232 |
Find some middle ground here but there needs to be some change or people will loose confidence in who is running this government. |
| RRE2233 |
Dear sir: My thoughts are that you are on the right path to re-view the royalty structure of Aberta.I do believe that the people of alberta are not getting a fair share of what the royalty charges should be.I think that it is unfortunate that the past premier and cabinet did not act to try and get this situation moving. We appreciate that this situation puts the present Provincial gov in a difficult position.I believe that the problem must be resolved in a respondsible maner.I also think that the alberta economy is very overheated and should be slowed down some.Thanks for your attention |
| RRE2234 |
Congratulations for being on the cusp of destroying what took Ralph Klein, a truly great politician, well over a decade to build up. The royalty review is based on old, outdated information and should be thrown in the trash. Maybe somebody should have good look at some of your past " experiments " like the ambulance services takeover and what that has done to completely upset a system that was working fine. It is now nearly impossible for rural communities to get qualified medical personel to fill their ambulances due to big cities hiring everyone they can because the bill is now on the government. An increase in royalties will not only lead to less revenue for the province but again stick it to the smaller communities who rely heavily on the oil and gas industry. Thousands of jobs will be lost and tens of thousands of Albertans will be adversly affected by yet another scheme of your government. I have been a strong supporter of the PC Government for over 25 years but I seriously beleive it is time to look for a change and find a party that has the ability to make decisions based what is best for the province as a whole and not just the major centers or in what seems to be your governments skewed sense of " OUR FAIR SHARE ". I will admit there will be some increases as a result of this: Increased unemployment, Increased crime, Increased bankruptcy claims, Increased mortgage foreclosures, Increased energy costs due to a declining available resources when companies stop exploiting gas reserves and Increased government resentment for yet another boondoggle of epic proportions. You would think a good government would learn from things like the National Energy Program that nearly destroyed our economy once, or, is that your underlying goal? |
| RRE2235 |
Has Mr Stelmach really thought this out? The number of people and jobs that this would affect would be staggering, in his effort to gain popularity and the common vote he might very possibly be condeming this province to untold hardship. Both my wife and myself work for the same large oil company here in Calgary and our families well being and prosperity depend on our jobs. Whoever is advising Mr Stelmach has clearly not looked at the big Alberta picture. I ask you this, would Ralph have ever proposed something like this? I think not. Do we want another mass recession like we experienced in the early 80's with Trudeau's energy program, I know for a fact I don't and I would hope our current provincial goverenment would not want that as well. |
| RRE2236 |
As a direct employee within the oil and gas sector, I hope the government - my MLA - takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations will be far reaching and rather than a province that has, we will be a province that doesn't. The infrastructure that has been developed to support this sector will be decimated - we all know all have paid premium prices to live in Alberta. [Information Removed] |
| RRE2237 |
A royalty review is long overdue! Ralphs good buddys in the oil industry have overextended their stay. Its time that Alberta sees the indecent revenues the oil companies have enjoyed for the last 10 or so years in Ralphs regime. I believe that the royalty regime was set somewhere around the time that oil was priced around $12 / barrell? Now that the oil producers are demanding world oil price then so should the alberta royalty be set approprietly. 1% royalty from the oil sands is a insult to alberta. Further I think that the oil sands producers should be paying in full the twinning of the new highway there. It is only for the reason that the oil companiew are making huge profits that there exists a need for that highway. And alberta has to provide this highway at 1% royalty. Are we nuts or what ? I think oil and royalties should be set according to destination. I think we should have a multi tier royalty and price for oil system. One for domestic ( Alberta) sales, one for export to Canada sales and one for export sales outside of Canada. Price per barrell sold in alberta should be priced at half the world price and pricing for the final product at the pump should be half of what we are paying now. Oil is an alberta resourse and we should benefit by paying alot less for the oil and products in alberta accordingly for domestic use. Alberta should not have to subsidize export oil production whatsoever and if exported outside of alberta then albertans should benefit by at least 25% royalty. This still leaves a tremendous profit margin for oil producers This oil boom has not been a benefit for Alberta at all. Housing is no longer affordable to most in fact pricing is most outrageous. The financial burden of growth to all levels of government are exceeding and are grossly taxing all levels to even try to attempt to finance social, schools, roads, highways and so on .Before the boom there was a natural progression to growth and it seemed that all levels of government did not suffer the strain as we are experiencing now. Like I said the boom has not done us well.. Automobile traffic and conjestion is now a fact of life. Public transit is strained and underfunded so where is this supposed benefit to the oil boom? I think as a long standing albertan the oil has destroyed a quality of life in alberta . It would do us no harm to put the brakes on oil development in this province and especially in Ft. McMurray , it would be like a correction of inflation by the feds when they adjust with rising interest rates. Question is how can a provincial governing body due the same? Raise the royalty rates at least by the amount the royalty review suggested. Make the oil sands pay their own way ie. highway, railroad, airport etc. cost recovery on keeping the oil town alive. Edmonton will vote for PC candidates if your gov't makes some logical changes for albertas benefit and not that of the siding with big oil . Big oil is not our friend at all, and I haven't even spoken about environmental issues ; such as using us fresh water, etc. We were doing just fine before this oil boom, so lets slow it down and catch our breath. Best Regards [Information Removed]/ Edmonton |
| RRE2238 |
It's quite easy. This is already destroying are business and nothing is final yet. |
| RRE2239 |
I have read throught eh entire report in detail. I have no personal stake (business or otherwise) in the energy sector. The old gas and light crude royalty adjustments (reductions) seems appropriate. The incentives suggested for upgrader investments seem very appropriate; if anything I would suggest that these incentives could be made to be even more attractive to investors. Value Added pieces like upgrading "in-Alberta" are essential to Alberta's long term benefits. On the increases suggested to the Oil Sands area I am not so supportive. These seem to be overly harsh. We have invited very, very , signficant investment to our province under one set of understandings; I don't think it is fair in any business deal to not be very careful on changing rules but when one considers the huge scale of investment in this sector it is even more problematic. I am not convinced that the report has fairly calculated an adjustment to the relative cost of construction differences between the Alberta and the other jurisdictions being compared to (in particular the US states where labor and escalation factors are not near as significant). As a private citizen of modest means I believe the sensible thing to do is maximize the value added elements in Alberta (i.e. Upgrader and Refinery investment incentives) and look to a softer modification to the royalty adjustments to the oil sands that that grows and dinishes more in proportion to the price of oil. Toss the base/lease fees and just go with a floating royalty after capital investments have been consdered in (much like the original deals made). Then one asks, how does this handle the booming pressures? Bring on the pressures, I say. They are challenges but let's think big and tackle them head on; you as a government, the major investors, municipalities, and citizens. In my mind we need to move faster not slower. We are behind the wave and need to get in front as quickly as we can so we don't lose all value added benefits to the US and elsewhere. Get aggressive! And be nice to those companies that have shown confidence to bring billions to our home and spend it all here. Let's just keep more of it here in the longer term; and that doesn't have to be kept just in royalties. |
| RRE2240 |
The least that should be done is the proposed increase to the royalty rate. The oil and gas are our natural resources and they are a limited supply. The oil and gas companies are making billions of dollars from our resources and they should at least be paying a greater price for the presious commodity that everyone is so addicted to. It is bad enough that foreign companies are getting rich off of our natural resources and leaving us with huge environmental messes. Charging them a higher royalty rate is more than generous. [Information Removed] |
| RRE2241 |
The timing could not have been worse. A small business owner in the service sector of Alberta's oilpatch, we were already suffering a slowdown of work prior to the release of the Royalty Report. This report has made it worse. We don't deal with "Big Oil", strictly with Junior oil compaines, and they are all running scared. An increase of 20% is a ridiculous expectation. If a "Bust" in the Alberta Economy is what the Stelmach government is looking for, they are most certainly headed in the right direction. |
| RRE2242 |
I think the oil sector is just vulgar - look at house prices in calgary. The oil companys need to reduce thier own expences if they wish to be profitable. Look at the number of expensive cars ect that people in this industry can afford.Possibly they could lower thier salarys. All in all the average Albertan would be better off if 200 to 300 k people left this provience- result - resonable house prices , more hospital beds , smaller classrooms. This industry along with the Ralph Kline (Alberta Advantage) has raped the average non oil-sector citizen in this provience. Its time we - the retired , the average non oil workers , people needing hospital beds, children needing education were heard. Do the right thing and show this provience that all citizens deserve a share - not just the lucky few that are fortunate enough to work in the oil industry. Btw - I personally lost 20k from the conservative gov decision to tax income trusts. It is depressing as the average person have no one to trust anymore in any government. Will that change ? I doubt it - whats this governments agenda? Show us - that we can respect and trust someone in government. HEARS YOUR CHANCE!!!!!!! |
| RRE2243 |
Friday, October 12, 2007 To Whom It May Concern: I am writing as an Albertan who supports Premier Ed Stelmach’s Royalty Review initiative. In my view, there is nothing wrong with having an evaluation of Alberta’s resource royalties. This procedure should be done regularly and openly. Every company in business in a free market system routinely does this. Demand sets the price and to undervalue Alberta’s resource does not reflect true economics. Companies with subsidized windfall profits are deterred from efficiency in cost control and innovativeness. As an Albertan, I have adjusted to high fuel and fertilizer costs by changing my farming practices. I see no reason why any energy company or service company cannot adjust to higher royalties as suggested by the review panel and the provincial Department of Energy. I am disgusted with the fear being spread by energy companies and investment groups. To fear monger is a lazy, bullying tactic which is insulting to the entrepreneurial spirit upon which Alberta has been built. Any extra royalty money should be available to be used to invest in opportunities as seen by those entrepreneurial risk takers in Alberta. The tactic of slowing investment by energy companies to lower service company billings has hurt many Albertans. The threat of pulling out, I hope does not influence the current government leaders’ decision. I have confidence in Alberta’s capitalistic system –a fair market value for our resource is all that is expected. During an interview on the news, a major energy company CEO defended gas prices at the pumps by saying his responsibility was to the shareholders and not the general public. The Alberta government’s responsibility is to the general public and not to investors in energy companies. Yours truly, [Information Removed] Cc : Gordon Graydon Cc: Mel Knight |
| RRE2244 |
Alberta's economy is dominated by the oil-and-gas sector, which is already having probelms with Natural Gas prices and the dollar. Don't scuttle the ecomony with a cute new political trick. We can't afford it. Leave the royalties alone. |
| RRE2245 |
The Alberta auditor has come out with his report. Thus, the citizens of Alberta have billions of dollars less because of the royalties shortfall. That should be enough to get the attention of everyone. |
| RRE2246 |
Altho' I highly doubt the gov't has the "[Expletive]" to stand up to Big Oil, I believe it is exactly what should be done. If companies pull out, I think the government should follow the example of Norway and take over the projects. Those companies have been raking in BILLIONS in profits. It's hardly surprising that they don't want anything to come between them and all that money. That does not mean they are in the right. But, like I said, I have NO faith in this gov't's ability to make a decision that is in the best interest of Average Albertans. I wish I did. |
| RRE2247 |
I am a free holder of mineral rights left to our family by my grandmother [Information Removed] and father and I object to a hundred percent increase in taxes. I also would like to know if the government is considering the Freeholders in their decision making [Information Removed] |
| RRE2248 |
This is another NEP which will cripple the industry in Alberta and as well as the economy of Albertat. |
| RRE2249 |
I feel as tax paying citizen of Alberta, Canada, the Stelmach must accept the Royalty Review Report (with some possible modifications to placate the industry). But, the Spirit of the Report which has been provided by intelligent and well heeled experts in the field is absolutely correct. One would have been very surprised if the Oil Industry did not cry wolf on their Golden geese being witheld. A little slowdown in the overheated industry may not neccessarily be that bad. Maybe a tiered royalty which implements the findings in full over say $50 and partially under that price may be a good balance. But stay strong and wise, Steady Eddy!! |
| RRE2250 |
I have grave concerns that the CEO of ENCANA is taking out ad's in the Edmonton Journal to warn Albertan's of the impending doom in raising Albertan's royalty rates. I elected my MLA to make these decisions, it appears that the big oil in in fact running the government. Please stand up and represent me, a born and bred Albertan. Big oil will not leave, they will continue to make obscene amounts of money - they are not the owners of this resource, Albertans are. Please have a spine and show some leadership. Don't pander to big oil, I elected you to govern. |
| RRE2251 |
Speaking on behalf of myself the Provincial Government must implement all of the recommendations contained in the royality review report now or very soon. I have just finished reading the report. I have two University degrees and I understand most of it. More importantly the summary fits with the evidence in the report. I was born and raised in this Province. I am 57 years old. I have never lived elsewhere. My father homesteaded in this Province. My roots are deep. I have raised a family in this Province. My taxes are paid. Apparently some of the taxes and royalties allegedly owed by some corporate citizens have not been paid. The Royalty Review Reort makes a fine Liberal Party Campaign document so long as its recommendations remain unimplemented. Melchin must fall on his sword and resign as soon as possible. The incompetence and the lies are intolerable. "Signed" [Information Removed] |
| RRE2252 |
October 4, 2007 Honorable Ed Stelmach Premier of Alberta Office of the Premier 307 Legislature Building 10800 – 97th Avenue Edmonton, Alberta T5K 2B6 Dear Mr. Premier I have been working in the Oil & Gas Industry since 1976 and during that time have experienced a decrease in my salary at one company, no raises at a second company and being laid off during my fourth month of my pregnancy with my second child at yet another company. There have been many other lay-offs of my co-workers over the years that I have been lucky enough to have survived through the tough times. Other times I have been able to see the writing on the wall of when a company is heading in that direction and managed to find another job before the lay-offs occurred. Most of these unfortunate situations have been as a result of the Liberal Government trying to take a bigger piece of the pie (i.e. National Energy Program) which is why I and my family have vowed never to vote Liberal. I am very disappointed that the Conservative Government is now trying to do their best to damage this Industry yet again from a Federal and Provincial Level. I’m not sure who we should turn to next to run this Country. I am presently employed by a Trust Company (approx. 13,000 BOE/day) which the Federal Government punched in the gut last fall and now the Provincial Government will be doing their best to finish us off should the Royalty Review Panel’s recommendations be adopted by the Government. I’ve heard on the news that the Government thinks that the [Information Removed] of the world are bluffing when they “threaten” that they will take their business elsewhere. I can assure you they are not bluffing and that there will be major lay-offs in this business which will hurt all Albertans. You need to look farther than your bank statement to see how you are jeopardizing our future. You may be increasing your royalties on existing wells but you will loose possible royalties on the new drills that were budgeted for Q4 2007 and for 2008 if you go ahead with this. The Government will also be paying out more money from a different pocket when a great number of Albertans become unemployed as a result of the hold placed on these budgets. Every company I’ve ever worked for has been more of a gas producer than an oil producer so I’m not sure why you’re basing your decisions on the price of oil. I am fortunate enough to have been married for 30 years. My husband and I are established with very little debt and no small children at home so we could survive on his salary if I lose my job. We, however, are also in the position, at this time, to provide support to our adult children (21 &25) who can’t afford the high rent in Calgary, provide support to my parents whose only income is from Old Age Pension and Supplemental Pension and to provide some financial assistance to our grandson’s parents because, at the age of 6, he requires assistance from a professional (at a cost of $100/hour to his parents) to be successful in school. I’m not sure how much we’ll be able to help our family if I find myself unemployed. The construction boom going on right now in Calgary is truly amazing. I have to wonder how many employees in the Construction Industry will be affected once budgets are cut and smaller and medium sized companies go bankrupt. I’m sure there are people who will be affected that I don’t even know about, including Farmers receiving payment for water or dirt they sell and/or haul for the drilling companies, Retailers that will loose sales/revenues once lay-offs occur, right down to the housewife who baby-sits our children while we work to supplement the family income so she can stay at home with her children. Please also remember that many of the skills we learn to effectively do our jobs within the Oil & Gas Industry are not transferable to other Industries so if lay-offs occur there will be a large number of people who will not be able to find other jobs. Please consider all of the Albertans you will be harming in one way or another before you implement any major changes that are recommended in the Royalty Review paper. The Oil & Gas Industry truly does re-invest in Alberta so please don’t put them out of business. Thank you [Information Removed] |
| RRE2253 |
Has the government thought of the long term impact of increasing these roalties and restricting current and future development for oil companies? I will be the first to admit that the oil companies in Alberta are almost like superpowers out of control. They develop this province at an alaming rate with no other agenda that profit. But the downside to this report is that if the oil companies want to or have to they will shut down operations and put thousands of people out of work. The long term result will be that the government will be paying millions of dollars out to unemployment rather than collecting royalties from the oil companies. There are a lot of peoples livelyhoods depending on the governments response to this review. I urge you to consider the long term fallout this could cause. I don't like the fact that they could exercise their power over us like that but if the oil patch crashes then Alberta will no longer be a strong viable province. We will simply be starving and these oil companies know it. Best of luck in these important decisons. [Information Removed] |
| RRE2254 |
I am very concerned about the recomendations made in the Royalty Review. I believe they are extremely short sighted and will lead to a major reduction in the total income the Alberta Government (and peopel) will see from the oil industry. I sincerely hope that the government is intelligent enough to realise that implementing any of the recomendations will result in a huge cut in activity level of the oil companies and therefore the employment rate in the province. I am a facilities engineer with a major oil company and I have already warned my suppliers and contractors that if the recomendations go through they can consider all orders and contracts cancelled until further notice. That means a lot of people not paying income tax or buying new products within our province. The government needs to decide if the want a small piece of a huge pie or a large piece of no pie? |
| RRE2255 |
the only people that really think this is a good idea are the people who dont work in the oil field and the retarded NDP just because it have got them on the news, ppl will lose jobs around alberta, the problem is everyone thinks of fort mac and the oil field they forget places like slave lake where im from in the conventional oil field and there is just to many ppl and not enought money in it for the oil companies do raise the costs |
| RRE2256 |
Royalties are wrong in every way shape or form. The profits made by oil and gas companies have been in the billons of dollars for many years. It is time they give something back. Profit margins should be limited to ten percent and then the consumer would be able to make his or her dollar go further. NO more royalties! |
| RRE2257 |
I agree with the Wildrose Party - why would you take more money in just so you can have an even larger surplus? If you do take more royalty, GIVE IT BACK to the taxpayers in tax cuts or 'Ralph Bucks' instead of giving it to other organizations who just complain about how unfair or how little they receive (healthcare, education, munis, etc.) |
| RRE2258 |
It is unfortunate that all of the discussion has to be so extreme. I can tell you for a fact that thousands of people could find themselves out of work and the government find itself with less revenue than it has today. Perhaps someone should ask Don Getty what it is like to be premier when times aren't so good in the oil industry. [Information Removed] will spend their $1 billion in Texas, BC, Saskatchewan and Wyoming because that is what their shareholders will insist on. I'm a shareholder, most of you are too if you own any mutual funds. The farmers who don't get leases, the rural people who lose their jobs as truck drivers, roughnecks, welders etc. will suffer the most. We really need the government to use common sense and find a middle ground. |
| RRE2259 |
I feel that our resources are extremely important. The oil and gas industry must realize that these resources are not renewable. Also their scare tactics create fear among vulnerable employees as well as across the province. This should not be tolerated. It is my opinion that the government take a stance in increasing the royalities. Now this may not be as high as recommended or it may be as recommended. But to back down because of potential threats by the oil and gas industry is just wrong morally and sends the message to the alberta population that our government is at the mercy of american oil and gas companies. These companies need to understand that although they may have the means to extract the oil, it is useless without the resource itself. And I am sure there are many other industry contractors out there that would be more than glad to replace them. I saw a recent documentary that in South America (Brazil?), the government receives over 90% per barrel. Anyways just letting you know how my family feels. Thanks [Information Removed] |
| RRE2260 |
If change is required it should be carefully mitigated and implimented with the least shock to theaverage Albertan The drastic recommendations to bring about a more generous share to Albertans will impact all of us in a negative way in terms of JOBS and Security and value of homes etc. as the outcome from the change to the royalty will mean less activity in the oil sands and how fare are we to chang the rules after companies and people have invested and spent so much money in oil sands leases or activity and the average person buying a home in fort McMurray. Already it is the highest cost area of developing a resource, and will be made less rewarding by changing the current situation. As for natural gas, many projects are being shelved so do you want more projects to be shelved and companies to fold. I will pray for wisdom to prevail with the dicision makers, for I see that the report is lacking some that was lost in the simulation. |
| RRE2261 |
Re: Royalty Review. 1) Extremely credible panel; 2) Very well presented report; 3) All persons I know, many very active media people and several spokespersons for the oil and gas industry have obviously not read the report; 4) Industry people have to speak up about the facts but to create a scare is inappropriate and most be discounted as a requirement to appear accountable to their shareholders; 5) We all know that several large oil and gas companies were about to invest in newly acquired properties outside Alberta (e.g. B.C.) and would likely invest less in Alberta in the coming year; 6) The big play is still in Alberta; 7) Oil sands exploitation while expensive is not risky; 8) Even after the proposed increase, Alberta will still be taking a low "overall take" even compared to some US states; 9) Costs are management issues; 10) Equipment imports are now cheaper; 11) Alberta needs extra royalty dollars to set up a reserve fund to deal with infrastructure and environmental issues; 12) Since so few people are actually reading the report, there is a need to provide a summary to the public on this web site or in the news media; 13) I believe that this report must be accepted in its entirety! [Information Removed] Blackfalds |
| RRE2262 |
You're forcing me to leave this blood sucker province, that's what you're doing! |
| RRE2263 |
My feeling is that we should not raise royalties significantly beyond where they are now. Albertans have made good profits on their houses, they have got the highest standard of living in Canada and the lowest taxes. In addition many own mutual funds or stocks that have done well due to the outlook for the resources industry and the impression amongst foreign investors of stability. This is already a dividend in itself. Its generally true that higher taxes drive away investment and discourage economic activity and this can often results in less not more net tax income to authorities. I think we should be careful not to introduce National Energy Programme number 2 and go down a route that produces a result which is the opposite of that intended. As I understand the review board compared taxation in other jurisdictions with royalties in Alberta which seems to be an apples and oranges comparision. In addition the extraction costs were not considered, which are far higher in the oil sands even discounting labour shortages. Therefore I would urge the Government to be cautious I don't want to wake up and find I have no job and a house worth half of what it was. Best wishes [Information Removed] |
| RRE2264 |
If the government does not raise the oil royaltie to 20% as recommended by your own panel, I will not be voting Conservative again If the government does not raise the oil royalties to 20% as recommended by its own panel, I will never vote Conservative again. As an ordinary Albertan I will not be satisfied by any wishy-washy half measures. The pc's didn't get themselves or the province to where they are today by being indecisive. |
| RRE2265 |
I have read the Royalty Review Report and wish to lend my support to the call for a substantial increase in the Alberta Oil and Gas Royalty. As a retired Albertan I cannot help but think that simple justice requires that all sectors of the Alberta economy contribute their fair share to the economic well being of my province Unfortunately, for some time the Oil and Gas Industry has failed to be an equal partner in economic life of this province and I applaud my new government for instituting a thorough review of Alberta's royalty structure. Having had the courage to call for a review, I hope my government will proceed to the next phase of this exercise: the implementation of the Review Report's recommendations. Failure to act in the foregoing manner will have a negative impact on my personal assessment of the Alberta Government's ability to manage the affairs of this provnce and I would be forced to exprees my displeasure at the poll |
| RRE2266 |
I think the royalty review has gone too far with its recommendations. I am a professional in the oil and gas industry, and fear for my job if the full recommendations are implemented. I feel that the panel has not accurately taken into account the costs associated w/ working in a mature basin. I do feel that there is room for a small increase in royalties to reflect the higher price of oil, so hope that a middle ground can be found. Thank you. |
| RRE2267 |
I FIND IT HARD TO BELIEVE THAT OUR GOVERNMENT IS EVEN CONSIDERING THE RECOMMENDATIONS OF THE ROYALTY REVIEW PANEL IN LIGHT OF THE FLAWED ANALYSIS WHICH UNDERPINS ITS PROPOSALS. THE GOVERNMENT HAS HEARD FROM EVERY FACET OF THE ENERGY INDUSTRY FROM SMALL SERVICE COMPANIES TO MAJOR PRODUCERS AND THE FEEDBACK IS OMINOUSLY SIMILAR. THE STRENGTH OF OUR ECONOMY IS DIRECTLY LINKED TO THE STRENGTH OF OUR ENERGY INDUSTRY. IT IS UNFATHOMABLE THAT THE GOVERNMENT WOULD RISK ITS CURRENT LOFTY NATIONAL AND INTERNATIONAL STATUS THROUGH THE IMPLEMENATION OF THE DRACONIAN RECOMMENDATIONS OF THE REVIEW PANEL. WHERE IS THIS ADDITIONAL REVENUE GOING TO COME FROM WHEN ENERGY INVESTMENT DOLLARS LEAVE ALBERTA? |
| RRE2268 |
In view of Oil prices at over $90/barrel there needs to be adjustment to royalty rates. We need to keep the economy and jobs in view while making any adjustments. Thanks |
| RRE2269 |
I agree with the recommendations of the Royalty Review Board. Oil companies have been raking in excessive profits, while our Heritage Trust Fund shrinks with inflation. Even if changing the royalties deters some investment by Big Oil, Alberta needs sustainable growth, not the breakneck expansion over the past years. Our oilfield service company has turned away work due to the fact that we cannot find good employees to expand. Now that things are slowing down, our existing employees are enjoying a stable workplace, rather than one in crisis from expanding too fast. |
| RRE2270 |
I think you are crazy if you increase thr royalties up to 36%. This will cause nothing but problems for alberta, This will kill small town alberta. Way to think it through folks |
| RRE2271 |
I fully support the recommendations of the Alberta Royalty Review Panel to increase the royalty rates. We, as Albertans deserve to get our fair share from energy development. I believe that if the oil developers and companmies do not want to pay the fair share recommended in the report, we should just let these resources stay on the ground for future generations. Oil and gas are non-renewable resources and production in most areas of the world have already peaked and/or close to its peak. Alberta should conserve these resources and not give it away to the oil companies. As the report stated, "Albertans do not receive their their fair share from energy development and they have not in fact, been receiving their fair share for quite some time. This is the perfect time to correct the injustice. The price of oil is at its highest , we are a secure source of oil and we have the proximity to the US market. Please do not be intimidated by threats of the big oil companies. Let us think long term. Save some of our oil for future generations. Oil and gas is not going out of style. Do what is right for Albertans. Adopt the recommendations of the panel. Sincerely yours, [Information Removed] Calgary, Alberta |
| RRE2272 |
Last year when the federal government proposed to tax the income trust, all the BIG OILs support the government, because it would kill the trust & junior oil and benefit the BIG OILs. NOW the provinical government wants to tax all oil companies. This will kill big oil, small oil, trust & service sectors, all together. BIG OILs start to feel the pain!!! You deserve it because you support the income trust tax last year! NOW it is your turn to be TAXed! |
| RRE2273 |
Personally, i think that adding extra royalties on the oil Alberta's oil companies produce is a very bad idea. In my view, it hurt the economy quite a bit as the oil companies will slow oil production. I don't understand the reasoning behind the move and could use with an explanation and the logic behind which the decision was made. |
| RRE2274 |
I've read the report and it is very clear that this review panel had the "right" answer in mind before they even began. Obvious,egregious, and deliberate errors, such as not including land-sale bonuses in the Government total take, show that this review was not at all an attempt to find what is "fair". Rather, this report is clearly intended to provide political cover for a politically motivated tax hike. Shame on you Mr Stelmach. Sincerely [Information Removed] |
| RRE2275 |
A government taxes to provide required services, taxation should be no more than required for these services. Why would we propose additional taxes when we are already in surplus. |
| RRE2276 |
The government has polarized the parties involved and emotionalized the issues. You have abrogated your responsibility to foster productive dialogue betwen government and industry as well as your responsibility to manage the identity of Alberta within the global business community. You have sparked unnecessary antagonism between the citizens of Alberta and its key industry. No one is denying the need for a royalty review. I hope the government's path forward in some way repairs the damage done to Alberta's identity and sets up a constructive dialogue producing a result beneficial to the citizens of Alberta and the industry. The article in today's Edmonton journal by Pedro Van Meurs is a bit too much in the mood of I'm right and you're wrong, even though there may be some substance in the commentary. This is now how we do business in Alberta as a government or as an industry. An outraged citizen [Information Removed] |
| RRE2277 |
The only people who suffer because of this debate are the contractors, workers and service providers. Not the government nor the oil companies. My client has already withdrawn funding for the majority of my companies jobs this winter. WE ARE SUFFERING HAS A DIRECT RESULT OF THIS ROYALTY ISSUE. Regards [Information Removed] |
| RRE2278 |
YES!! Please apply the extra 25% royalty. I believe Alaska has even higher royalties and the oil companies are still there. One of the reasons that there is such a boom in Alberta is because we are giving our profits away. 25% is a bargin |
| RRE2279 |
I'm thinking losing at 20-30 billion $ in capital investment from Alberta is not what stelmach had in mind, but that's what this will do if it goes through. I can't believe an un-elected premier would put this forth. At least have enough consideration to Albertans and make it an election issue. There should be a law agaist un-elected premiers making decisions above their pay grade. |
| RRE2280 |
I do not believe the Royalty Review recommendations go far enough - and I would urge the Premier to ensure that Albertan's resources are not 'given away' as Murray Smith told oil personnel in the U.S. The people of Alberta are behind getting our 'fair share'. Remember this the oil companies can't take it with them when they leave........I'm sure Norway has lot's of advice on who we can hire to extract OUR resources. |
| RRE2281 |
This should not go ahead as suggested. This will devistate the Alberta economy. This province will turn into the same situation as Saskatchewan. |
| RRE2282 |
How greedy can the government be? Yes, the O&G sector is doing well, but why bite the hand that feeds you. If you increase the Royalties by 20%, that will force O&G exploration outside of Alberta - so if there is no one exploring in Alberta, where are you going to get the 20% from - makes no sense????? |
| RRE2283 |
I am afraid that this review has opened Pandora's box. The royalty scheme currently in place was not broken so why fix it? The reality of the conventional oil and gas industry in Alberta is one that is getting progressive more difficult to be successful. The sedimentary basin is what is considered "mature" meaning that large oil and Gas reserves are getting very difficult to find. New reserves are found in smaller and smaller pools that decline quicker than at any time in the past. Compounding the problem is that exploration and service costs have gone up dramatically over the past several years. As well, the price of natural gas has fallen significantly over the past 2 years as demand in mainly eastern North America has been soft. Natural gas storage levels are at record highs which is expected to keep the selling price low for at least another 12 months. The recent strength in the value of the Canadian dollar also affects the value of the products produced. A large percentage of the oil and gas is shipped to the USA and according paid in US dollars. With a stronger dollar, the producer gets less Canadian dollars for their products. These four scenarios, smaller pool sizes, esculating costs and continued soft natural gas prices, and a strengthening Canadian dollar are the "perfect storm" for producers already challenged to remain profitable. While the price of oil remains at around $80 the majority of the conventional exploration and drilling is for natural gas in locations all over the province. This perfect storm scenario is currently playing with ONLY 38% of the drilling rig fleet working. This slowdown affects not only the drilling and service sectors but every restaurant, hotel, gas station, car dealer, tire shop etc. in the province that services this activity. These businesses are already feeling the slower activity levels. To further burden the profitability of the producers means even less activity and corresponding less jobs for Albertans in all regions of the Province. If adopted, royalty review panel's reccommendations would take $2 Billion out of the Alberta economy and put it into the Roayalty Trust Fund. This fund does not create wealth for the people of Alberta like the reinvestment of profitable companies. What would you rather have, a bigger Trust Fund and people unemployed or the status quo with people working, paying mortgages and buying new cars and TV's and building their own futures? Your MLA needs to know that you are concerned about the government continuing to provide a stable and secure business environment so that we can all keep our jobs! Let them know that they should not make any signifcant changes to the current royalty programs despite what others may say. DO NOT LET THE GOVERMENT KILL THE PRIMARY DRIVER OF THE WHOLE ALBERTA ECONOMY! |
| RRE2284 |
Dear Mr. Stelmach, I strongly support an increase in the royalty fee. A 10% increase iin the royalty fee is a nominal amount for the large oil companies, considering the amount of profits they have garnered over the past few years. The increase is further supported by the fact Alberta offers the oil companies a safe and secure business environment along with the second largest proven oil reserves. Venezuela along with other hostile regimes have been asking the oil companies to leave as they nationalize their resources. This is something that would never happen here in Canada nor Alberta. The royalty fee increase is just and fair. Yours truly, [Information Removed] |
| RRE2285 |
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] |
| RRE2286 |
DO NOT implement the changes suggested by the royalty review. The panel in charge of this review has no experience in the oil and gas industry and thus does not understand how this will affect not only the industry, but the entire economy of Alberta. DO NOT IMPLEMENT ANOTHER NATIONAL ENERGY PROGRAM! |
| RRE2287 |
I' ve been in the oil patch over 20 years and the Royalty Review seems to be causing nearly as much fear and panic as Trudeau's "NEP". It seems every time Alberta begins to enjoy a Boom in an industry some form of Government has to stick their greedy fingers into it. I'm very dissapointed in our Governments choice. Thank you for your time. [Information Removed] |
| RRE2288 |
What ever happened to the "Alberta Advantage" of lower taxes, less Government and the entrepenurial spirit that rewards risk taking and profit - I guess we'd rather figure out ways to penalize success and ramp up public spending with a totally one sided report ! |
| RRE2289 |
puuuuhleeeeeeze don't kill my economy. I have nothing to do with oil and gas, but will have a hard time making a living without the benefits of a vibrant economy. it makes no sense to risk losing this sector to add another two billion to a ten billion dollar pile that will shrink to five billion if this plan is implemented. Why does everyone think that oil companies won;t pack up and leave if they can make money elsewhere? They will be gone faster than you can imagine. Don't do it! There has to be a number that makes sense. Please get this one right. I'll puke if I see Stelmach on tv bragging about how he wasn't intimidated by big oil companies as they head down the highway to Saskatchewan or BC. |
| RRE2290 |
I would like to see another rebate to all Albertans' that have lived in the province for at least a significant time frame, such as 2 years or so. There is no "Alberta Advantage" to long time residence. We are the ones putting up with the increase in housing prices, traffic, crime, etc. |
| RRE2291 |
We should have a system like Alaska in place. Where the royalties are both saved and actually shared with the residents of our province. |
| RRE2292 |
Good day Minister Knight, I am an average Albertan who has had the good fortune to benefit from the hot economy in recent times. I also lived through the National Energy Program instigated by the federal Liberals in the 1980's. I thankfully survived the dire economic downturn, but believe me, it wasn't by much. A repeat f this travisty must not be an option. As you review the recomendations by both the Alberta Royalty Review Panel, and the oil & gas sector, I respectfully ask that you find a compromise that as Tristone Capital said in the Calgary Herald's October 3 issue, will "maximize the value of oil & natural gas resources for Albertans while maintaining a competative investment climate...". You must find the middle ground that will placate the reasonable majority of Albertans, and the oil & gas industry. We need the expertise of the oil patch, and they should be fairly compensated for their investment in Alberta as much as the people of Alberta should be fairly compensated for "their" natural resources. There will be many dissenting voices heard on both sides of the issue. These people will most likely never be satisfied with any compromise reached by your government. I hope you will not be swayed by the radical segment of either side of this issue. I trust in you to find a solution that will treat everyone fairly. I wish you all the very best in this endevour. [Information Removed] |
| RRE2293 |
My family moved to Alberta in 1983 just after the NEP was introduced and we lived thru the fallout which in many cases took years to recover from. We are currently reaping the rewards of a successful economy. I would hate to see it damaged by an implementation of a royalty program that was not a well thought out and planned. As a tax payer in Alberta I see that we already have large revenue surpluses that in my opinion are not being spent in the most rational way to enhance our province. Education and Medicare could certainly see some of that monies. This makes me think, "Why would the province need the 2 billion more $ at the detriment to the economy?" I believe it is not in the best interest of Albertans regardless of what the media is saying. My message to you is, please review all impacts of implementing a change to royalties in a UNBIASED, non- politically corrrect fashion as to provide the best return on investment for all Albertans. You have a big job ahead of you, please give it your best consideration. My kids want to see a great Alberta in the next generation. |
| RRE2294 |
We need to increase royalties in Alberta and invest that money in the future of our children. The natural resources belong to all Albertans and when they are gone what will we have? Will these oil companies provide us with cheap forms of energy to heat and power our homes? Will they be there to clean up their mess when they are gone? They are the reason we need a heavy rail line and 4-lane highway to Ft. Mac. Let them pay for it. This oil boom is creating a lower standard of living for the average Albertan. Not everyone works in the patch, not everyone is getting huge wage increases. Housing prices are out of control, and consumers are getting gouged on goods and services because workers in this one sector of our economy make good wages. There are people in the province who need a break, perhaps in the form of tax breaks, elimination of AHC Premiums, reductions in licenses and fees.... Perhaps this is where money generated from an increase in royalties could go. Invest this money in infrastructure in communities all across Alberta before it all collapses from the increased population. Invest in opportunities to diversify the economy so we are not so dependant on resource revenue. Oil and gas are non-renewable resources so you have only one chance to get this right. You could leave us a legacy of greatness if our province gets its fair share of the revenue and it is invested to expand our. Or you could leave us a legacy of hurt if these companies rob us of our resources and we are left with a crumbling province. We could be the laughing stock of the world. Look after the average Albertans. They are the ones who built this province. They were here long before the oil boom and they’ll be here long after it’s over. |
| RRE2295 |
As an employee of a Calgary based oil company doing allot of work in Sask I think a rate hike in Alberta would be the best thing for Saskatchewan, already funds are being sent our way that are diverted from Alberta spending. Thanks |
| RRE2296 |
Once again the Government is sending mixed messages. On one hand you say you do not have enough revenues to support infrastructure and health programs and therefore plan on imposing rate hikes on oil investments. On the other hand you say you want help from Albertans in deciding where to invest $40 Billion dollars, effectively wanting opinions from an un-educated ( most people do not want to know )general public. |
| RRE2297 |
I support the 'fairness' aspect of the royalty review report. I urge you to ensure that all Albertans receive maximum benefit from the dwindling resource rather than just shareholders in petroleum companies. |
| RRE2298 |
venezuala would be proud |
| RRE2299 |
I do not work directly with the Oil & Gas Industry. However, I like my job and I like being part of a vibrant economy. I DO NOT WANT AN INCREASE TO ROYALTY RATES. We want a MORE stable regime. Enough of this garbage. Don't touch royalty rates!!!!!! |
| RRE2300 |
Rising construction costs, a tight labor market, high cost of products and a downturn in the natural gas industry are all putting a strain on the Oil Industry. Add to that an increase of 20% to royalty rates and our Oil and Gas sector could have a major slow down. No most companies won't leave but to slow construction of mega projects would cause a slow down in the economy. Leave the royalty structure alone. [Information Removed] |
| RRE2301 |
I would like to comment on the review, in that there will definately be grave circumstances to the economy if the royalty hikes are passed as they have been currently proposed. There is most definately alot of errors in the review as to the cost of drilling and completing certain wellbores. The review panel estimated costs very low and obviously did not consult with Industry on current costs. I do believe there was already a pullback in progress, but it will be much larger if the proposed royalty hikes are legislated. If there is significant withdrawl from R&D investment in Alberta, we will definately lose a huge amount of skilled workers from the Oil and Gas industry and it is very hard to replace them when utilization does increase. We have seen a large exodus of skilled workers already, but it will be certainly amplified if the hikes are implemented. The royalty hikes have to be derived through consultation with industry leaders, or [Information Removed]. The ramifications will mirror what happened when the NEB policy was implemented in 1980. I truly hope the Alberta Government rethinks their process, and consults with Industry to come up with a solution that both sides can accept. I have been in the Industry for 26 years and saw first hand what the NEB did to the industry in 1980. It was devastating, and there is absolutely no reason for the government to make the same mistake now. Please listen to what industry is SHOUTING at you, and rethink what you have proposed. The future of our Province depends on this issue, and it must be a fair decision for Government, for the oil and gas industry, and most importantly for the people that live and work in this province. |
| RRE2302 |
I am extremely worried that the proposed royalty changes will have a devastating affect on the Alberta economy. We have already been hurt by an extended period of low NG prices. I do not think EnCana and other oil & gas companies are using idle threats if the Alberta government proceeds with the royalty changes. If the economics don't work, companies such as EnCana will go elsewhere to Provinces and countries where they can get a better rate of return their investment. The last thing Alberta needs right now are fly-by-night companies swooping in, replacing the exiting major companies and cutting corners on their operations in order to make drilling in Alberta economic thus putting all Albertans at risk. I hope this Government, which I helped elect into power, has the where-with-all take into account the suggestions of the knowledge experts on oil and gas in this province and revise the more onerous aspects of the proposed royalty changes. We all agree change is necessary however input from all sectors should be considered before such changes are undertaken. Regards, [Information Removed] |
| RRE2303 |
PLEASE do not be swayed by the ill-informed or well-endowed with respect to oil royalties! WE NEED TO INCREASE ROYALTIES! I really appreciated the different approaches yet similar results from the well-informed royalties review, Parkland Institute, and AG's perspectives. DO NOT BE SUCKERED BY THE OWNERS AND TEMPORARY BENEFICIARIES OF BIG (US_FUNDED) BUSINESS! |
| RRE2304 |
We normally leave it up to corrupt third world governments and the Premier of Newfoundland to carry to carry on in this manner. To arbitrarily and retroactively change the rules once the capital has been spent and the project can not be built or moved to an other jurisdiction is simply wrong. Governments in democratic countries should not behave this way. Alberta should respect the written commitments it has made and should only contemplate changes for new projects where the operators and investors have the option of not proceding if the new requirements are too onerous. Even the Premier of Newfoundland understood this, seeking royalties and back ins on new projects, but not tearing up his existing commitments as Alberta seems poised to do. Alberta already has some the of highest overall tax/royalty rates for oil in the world so the "fair share" arguement seems like cynical political posturing not a reasoned argument. I am amazed that Albertans could support this sort of approach while still claiming that the NEP represented some sort of egregious federal tax grab. From where I sit, I can't tell the difference. |
| RRE2305 |
I'm presently a contractor with an oil and gas company. And there are numerous rumours about cutting back spending next year. This could mean that my company would loss revenue and I would have to end up laying guys off. Our company is small but supplies good work and wages for our employees. I hope the government realizes the implication of what they are purposes and this will send Alberta in a down word slope. This is a very bad idea in my opionion and will send a lot of people to the poor house. |
| RRE2306 |
My personal opinion on changing royalties is that when you get too greedy either on the part of the government or the Oil and Gas Industry no one gets anything. I lived through the NEP Program in 1982 and saw the devastation on the economy when Ottawa tried to grab all the profits from the Energy Industry. When someone works to get the oil out of the ground they should get paid for their efforts. It costs a lot of money to get that oil out of the ground. I have seen the good the Energy Industry has done in providing services in communities where they go in. They have also provided a lot of jobs in the community. We don't want to get back to going on Welfare and Unemployment. It will cost the government more money and the people of Alberta. |
| RRE2307 |
If this goes through the same thing is going to happen that happened back in the eightys.... All drilling and service companys will pack up and move elese where, over seas, U.S. South America... But the government HAS to be greedy just to have this happen again... UNBELIEVABLE WHY CANT THEY JUST LEAVE IT ALONE.... |
| RRE2308 |
DO NOT ADOPT THIS NEW ROYALTY REVIEW REPORT!! PLEASE!! I am a Certified Engineering Tech in Fort McMurray, AB working on a new Oilsands Project. Though we all know that Royalties should be paid by the Oil Companies, a NEW model has to be made in considering a negotiation between the government and the Oil Companies to come to an agreement. The CURRENT MODEL will remove BILLIONS of dollars of investment from Alberta, ultimately affecting jobs, economy and wealth of the province. DO NOT ADOPT THIS NEW ROYALTY REVIEW REPORT!! PLEASE!! [Information Removed] |
| RRE2309 |
I would like to know if the Government will be forwarding funds to oilfield service companies when producers start shutting in deep wells and stop exploration... you do it for the farmers.... I will not be voting for Eddy when the election is called, I will be at the welfare office with many others once you destroy the economy. |
| RRE2310 |
Alberta should not be bullied into selling it's resources below market value. The current economic boom may suffer if roayalties are increased but the longterm consequences of inaction are far more devastating. |
| RRE2311 |
After reading through the review, I as an Albertan and an employee in the oil & gas sector, an concerned that what is being recommended will send our economy into a recession. As I have been thorugh 2 downturns (which included wide spread layoffs) in the economy primarily due to changes in royalties/taxes I urge you to reconsider how these recommendations are implemented. Nexen invests heavily in community projects and othe non-pofit organizations and it would be a great shame to have to stop these investments because the government wants an even begger budget surplus. Again I urge you to NOT implement these changes without further consultation with corporate Alberta and its citizens. |
| RRE2312 |
As an employee in the oilfield services business here in Alberta I am very concerned about the government tampering with the existing royalty system based on a report which is obviously flawed. Please review the input of all concern before making a rash decision which will have significant negative influence on our province. |
| RRE2313 |
I am a very concerned Albertan and would like to make my concerns known regarding the Alberta Royalty Review. Let me introduce myself and my family to you. * I am a 26 year old woman working for one of the major producers in the oil & gas industry. I work in the Public Affairs department and look forward to a long career in the oil & gas industry. * My husband is 28 years old and is a self-employed computer programmer. His clients are all oil & gas companies. * My father is a 70 year old welder, working for a compression company that supports the oil & gas industry. * My uncle is a 55 years old lawyer, working for a firm that supports employment law, specifically in the oil & gas industry. * My cousins, 34 and 38, all work for oil & gas companies and have small children and big mortgages to support. * My neighbors and friends are all employed directly or indirectly by oil & gas companies. The proposed changes would negatively impact the livelihood of all of us and hundreds of thousands of Albertans. I ask you to try to stop the reckless Royalty Proposal that would devastate our entire economy overnight. This proposed change will not be good for Albertans and it will not be good for Canada. Many companies will find Alberta simply not a good place to invest and will move their projects south of the border or to other provinces immediately. The consequences will be devastating. Our unemployment rate will rise, value in homes will be lost, people will not be able to spend money on shopping, going to restaurants and stores and retail outlets will go out of business. There are very few working Albertans who will not be dramatically impacted by this change. Like many others, I fear that the "Alberta Advantage" will simply become a thing of the past, and many will be layed-off from their jobs and their quality of life completely diminished. Companies have already issued notices to the media and internally to their staff. This is not a scare tactic - it is reality. I ask that this government represent the people who have elected you. Do everything in your power to save Alberta from destroying itself and the people who proudly call this province home. Regards, [Information Removed] |
| RRE2314 |
I would encourage you to not destroy our economy. While there are parts of the recomendations that look ok, there are other parts I'm very scared of. I do not see a lot of difference between the OSST and the NEP's PGRT. Paying a tax that you do not get to deduct from your taxes is just wrong. The other is the Grandfathering issue. Companies have made investment decisions based on the rules at that time and now you want to change them. Be wary of what will happen if Alberta gets a reputation that it renegs on it's deals. I thought Premier Stelmach was a rural person where handshakes and peoples word still mean something. |
| RRE2315 |
As a taxpayer and a life long Albertan, I'm deeply troubled by what I'm hearing from this review panel. The heavy handed approach they have taken from the initial publication to it's ongoing 'royalty lost' time ticker makes me believe they have a secondary agenda, and not in the best interests of Albertans in general. I am an employee of an Oil and Gas producer, everyone of us in our [Information Removed] company are Albertans and care deeply for this province. I don't understand the attitude that the panel is fostering of 'the us against the big corporate giant' mentality. We want to work with the province so that everyone is treated fairly. I thought we've always talked about working together as a team on this issue. If this panel's recommendations are taken in full, this industry will die. Our [Information Removed] company will no longer have viable economic assets to generate wealth and government will no longer have royalties, personal tax collection, and spin off effects. Only to mention a few. What made Alberta stand out from the rest of Canada is it's ability to foster entrepreneurial spirit. The sense that money in the hands of the individual will make a better choice than that of the government. We are on the brink of smashing that and any goodwill that we have fostered with any investor that has backed Alberta. Once that is done, it will take decades to re-establish that trust. I beg of you. Do this the right way. Phase royalty increases in. Let's see and study the effect on investment. Let's do it better than oil rich nations, many of whom our socialist which the panel loves to put forth as examples, and work together and develop new opportunities. We can make this work for all. Thank you. |
| RRE2316 |
The citizens of Alberta have not been benefiting sufficiently from oil and gas development for two reasons: first the oil and gas companies have not paid their fair share, and second the Alberta government has done a poor job of providing the supporting infrastructure (transportaton, schools, health care, Universities, etc.), If Albertans felt that they shared in the wealth of the province they would not be demanding that the private sector pay more. I also think that the government should ensure that any change in the royalty regime is comparable to that in other places, so that if Encana wants to take their investment elsewhere they have no economic reason to do so. |
| RRE2317 |
The Hunter Royalty Review Report should be implemented in it's entireity. If the Oil Companies do cut back for a while that would be a good thing to give us time to catch up on the infrastructure and cool down the inflation we have in Alberta. The Oil Companies have had it too good for too long in Alberta, the resource is here, they don't have to look it, their costs are about $25/Barrel and Alberta is stable politically, unlike other countries. Why the rush to develop the tar sands, they will only get more valuable with time. The "Hunter" recommendations are timid compared to other jurisdictions, the royalties should be even higher. I say go for it, Premier Stelmach. |
| RRE2318 |
From your report on the royalty structure, I can only find that it is grade benefit to the oil company's Like to remind you that the Albertans share of the royalty from 1975 to 2010 would be $70 billion and that be just for Oil Sands Royalty. Also due to lack of infrastructure Albertans will also be indebt for a futher $130 Billion by 2010. Conceder that the town of Fort Mc Murray alone needs $5 Billion over the next 5 years just to keep up with their infastructure. Keeping in mined that Royalty of our conventional oil and gas is being used for the infrastructure due to expansion , of the Oil Sands. I there for classify the Royalty incentive program as the biggest scam and legal robbery in history of man kind. And when Albertans realize in the near future how they have been robbed, the politician of today would have to seek Asylum in the USA Their is nothing wrong with some incentive for the Oil Sands projects So when A Company wanting to build a plant for 100.000 barrels a day, no problem, do not pay Royalty untill the plant is paid for, but when it seeks a expansion up to 200.000 barrels a day, I want to see my Royalty for the first 100.000 barrels a day to continue. Since I as a Albertan am not getting the Royalty and in fact am paying for the plant, I would insist that only Canadian labor and material is being used. Further more Oil Company's should not be allowed to write of this Royalty Expense on their Federal tax taking the Federal government for a other 2 Billion a year Thank You [Information Removed] |
| RRE2319 |
im just an average albertan but honestly in going through with this royalty review would you not be cutting back on the amount of work the work that the oil & gas industry is bringing into this province? further more in grande prairie there is already talk of a few companies pulling out of the patch. now im just shooting in the dark here but if those companies pull out wouldnt that make the unemployment rate across the board just go through the roof? and if history is correct didnt the government already try to do something like this and killed the patch for 15 - 20 years? Do you really wanna do that just when our dollar is able to battle with the U.S. for the first time in 30 years?. honestly to me that kinda sounds a little counter-productive and really to be frank, just get your hands out of the patch its not like u like to get them dirty anyways. maybe just maybe if the government were to endorse the patch, the patch workers and those involved with the industry just might be willing to endorse the government. i know that sounds bad but honestly all the government of canada and alberta has done for the canadian citizen is just find new words to [Expletive] us over in the same fashion, BE DIFFERENT. and you know that saying... you scratch my back ill scratch yours? well maybe you should try scratching the back of these companies instead of gouging at their eyes, and taking from the working mans pocket |
| RRE2320 |
My message is simple and to the point. I have voted PC for 25 years ([Information Removed]) and if the royalty changes are made as presented by the "committee", I will NOT be voting for the PC Party in the next provincial election. The junior oil and gas sector has already been crippled by rising costs, falling natural gas prices, and to a large extent the collateral damage of the "trust stock meltdown" while enduring increasingly smaller pool sizes typical of a maturing basin. The royalty changes contemplated referencing natural gas ( and to some extent light oil) particularly on higher rate wells and deeper tight gas targets (removal of incentives) will push many junior companies to heavily curtail drilling and make many opportunities uneconomic even at higher prices if they materialize. It will push many of these companies already close to bankruptcy over the edge. If you look at the US energy sector which is even more mature than Canada's, it is the junior and independent smaller entities that keep the sector going after the multinationals move onto bigger international opportunities. If we stop drilling this will immediately affect many other sectors including drilling, service companies, hotels, restaurants (hospitality indutries), farmers secondary income through water hauling, grading, surface land fees. This is only the tip of the iceberg as 1/6 of Albertans are directly working in oil and gas. How many others are secondarily affected? I can only imagine the effects on cities such as Fort Mac, Grand Prairie, Medicine Hat, Brooks and on and on whose new prosperity can be directly linked to high levels of oil and gas activity. There is no doubt in my mind you will lose most of Calgary due to its links to oil and gas. Can you afford to lose 1mm votes and countless seats? Alberta's oil and gas sector has fueled the entire Canadian economy and you want to bite the hand that feeds Alberta's growth and prosperity. Remember oil and gas provides several billion a year just in landsale money in addition to the royalty money. It is in your hands now to re-look at the the committees findings and find a better solution than has been presented. If you don't, I will not vote PC next election, something I never thought would ever cross my mind let alone change my "X" on a voting slip. Your committee chair has made many FLIPPANT remarks ("Albertans deserve 100% of the rent) since the report's release that will cause fear/anger in Albertans not in the energy sector. If he wants 100% of the rent ,whatever that means, perhaps the Alberta govt should start another Alberta Energy Company (now the biggest company in Canada, ENCANA) and pay all the money it takes to extract the oil and gas and the upfront costs for the oil sands mega projects. I am sure the Alberta govt does not want to re-invest more than 100% of its "profits" back into the ground and run a business that averages a rate of return less than 5%. [Information Removed] |
| RRE2321 |
I don"t understand the Review Panel comments. Ability to pay is the key to any scheme. If there is a profit we should failry share. Looking only at gross percentages says nothing about the ability to pay. Royalties that are based on a net and allow a return should be the criteria, not the percentage of the gross. |
| RRE2322 |
Don't kill the goose that is laying the golden egg |
| RRE2323 |
A think that we, as Albertians, should make the decision as to what Royalty we might levy on the producers, with all the facts in play. What do other jurisdictions levy? I think Alberta is still one of the best places to invest as far as drilling, for Oil and Gas is concerned. We should not let the emotion get into the process. Oil Companies will naturally complain about a rise in costs. I also would ask you to whom does the Oil and Gas belong? Albertians. These Oil and Gas Companies have made the biggest returns ever so why shouldn't the Province take its due. This Royalty structure was put in place during a low time of production and we wanted some increase in activity now we could use some leveling off of the activity. This may be a mechanism that could be used to level out the peaks and valleys in the provinces activity levels. A 20% rise is not that bad. Maybe we need to be flexable when it comes to low producing situations. What are the exact Royalties that the province levys at this time? Thanks [Information Removed] |
| RRE2324 |
If anyone thinks this province does not revolve around the oil industry..simply put they are an idiot...I have seen what greed does over the years and if this government wants to get greedy they will end up with nothing except about a million [Information Removed]people that are out of jobs!!!! |
| RRE2325 |
My jaw dropped when reading the report about the lack of understanding of the oil and gas business in Alberta, the laws of supply and demand. Does the ex-Shell executive really believe we control labour shortages and global steel prices, or the shortage of concrete driving those prices sky high? This is called supply and demand - Basic economics that one studies in first year university. Does the panel advocate that the industry collude to reduce costs? That is the other alternative unless the government imposes cost and wage controls (and that worked well in the past just as it is working in Zimbabwe - read sarcasm). The conventional gas royalty proposals offer relieve only for a $4 gas price or below and only for wells that are very low production. At about 500 mcf/d (a very poor well) the royalties for all other prices become prohibitive. For the good wells that carry all the sub economic wells on production the higher royalites effectively kill many of our producing pools. SInce the new royalties will reduce the economic rent to nearly zero for many conventional gas plays the amount of money the province will realize in associated land sales will be reduced to zero. Does the panel not realize that when we run economics we put in all the costs (drilling, seismic, royalties etc), predict the price and what is left over is a pot of money of which we can spend a good portion of it buying mineral rights - working in a competetive environment we are all working to get the mineral rights we want and therefor often bid higher than the economics tell us to. The government will lose most of what they gain in royalty increase to land sale bonus losses. Get a grip and make a proper decision. The stability of Alberta to investors has already been damaged by this ill timed, ill prepared, ill researched report. |
| RRE2326 |
I entirely agree with the Panel's conclusion that royalties should be raised. Cheers, dba [Information Removed] |
| RRE2327 |
I feel I must comment on the royalty review panels report. I am against accepting the report as is. In particular for the panel to say the report must be accepted in its intirety and no grandfathering is crazy. I am completely opposed to the government changing any rules after people have invested money under other rules. The last 10 to 15 years have been very good to Alberta and to jeopardize investment in our province is not right. With the exception of the oil sands that could use some tweeking the conventional oil and gas royalty system seems quite fair. There is significant risk in exploring for oil and gas and it becomes harder and harder each year. Please don't ruin the good thing we have going for Alberta. |
| RRE2328 |
The oil & gas industry provides alot of job opportunities for the people of this province and if this royalty review goes through it means job cuts and people without good paying jobs. I also think the review committee has left out alot of important factors in their recommendations - such as the rising loonie, labour costs, equipment costs that are all putting pressure on oil sands development. The review committee has recommended significant increases to royalty revenues - over 10% - I can see a need for some sort of an increase but 1.9B is not reasonable - the committee needs to take other economic factors into consideration - like the rising loonie which makes Canadian industry less competitive especially when shipping our Oil & Gas to the U.S. |
| RRE2329 |
against royalty!! keep stable economy!! keep our job and home!!! |
| RRE2330 |
There is considerable discussion about the Royalty Review. Which is great. It shows that a democracy can work. My concerns are not tha the governement witll do the wrong thing. I am sure they will end up doing the right thing. My concern is there seems to be descrepancies between whats in the report and what I am hearing form all corners of industry. Questings about the panels cost estimates not reflecting 2007 rates. The apparent elimination of costing in the value of the mineral leases. And now I hear that a least one panel member has indicated that the review did not take a proper reckoning of the royalty holiday for deep wells. Paring back that grace will most certainly have a negative impact on development. Now maybe that advantage should be removed but bear in mind that budgets are forecast a year ahead. It is not fiscally prudent to switch horses in mid stream. Nor is it prudent to have to expain to investors that the Government has changed regulations. Alberta is a great economic climate. So is Canada. But recent developments over the past year has taken the lustre off the oil and gas industry. Investors are going elsewheres with their money due to a downturn in gas prices, tax rule changes for trusts and the general scare over the sub prime and commercial paper fallout. With these factors already inhibiting development it does not seem sound reasoning to change royalty structures without first making sure there the right facts are on the table. Thank you, [Information Removed] |
| RRE2331 |
I am one of many oil and gas workers in Alberta. I have lived and worked in Red Deer, Alberta for the past 12 years. The more I read about this report, the more scared i get about my families future. I can not understand how our government can even consider this report at this time. Our industry is similar to a boat taking on water. If this report is accepted by government the way it reads now. Our boat, along with our livelyhoods in't imaging worse timing for this review to be happening. The service sector is going to take the biggest hit of all. Our clients will simply take their dollars elsewhere. For the sake of the thousands of employees in the oil and gas industry, service setor, I hope the recommendations of this report get thrown in the garbage. |
| RRE2332 |
Hello, Despite making my living through the oil and gas industry, I feel it's the right thing to do to raise the royalty rates. We're the beneficiaries of being in the right place at the right time. I feel that some of our good fortune should be held back for future generations and that this is a way to provide an annuity to future generations. In addition, I think our economy is overheated and out of control. I think a it wouldn't hurt for things to slow down to a reasonable and sustainable level of growth. Please support the Royalty Review panels recommendations in full. Thanks, [Information Removed] |
| RRE2333 |
For too long, Alberta has let non-Canadian Oil/Gas companies to exploit our resources and rip up our land. As well as the Canadian Oil/Gas, but they haven't exploited as much as the non-Canadian companies. I would like to have the money from the royalties be spent on cleaning up the waste and devastation created, the Province of Alberta to be more stringent and monitor the companies. For example, in the muskeg (Slave Lake area) oil leaks from a pumping station into the ground... more oil has been lost and contaminated the ground than the Exxon Valdez incident. Yet no one takes responsibility for this devastation! Spend the royalties to clean up this mess, and be more strict on policing the environmental disasters these oil companies purposely create! |
| RRE2334 |
Please do NOT jeopardize our Alberta advantage by becoming greedy with royalties. Squeezing the golden goose won't make her drop eggs faster - she'll simply die! When you pole people on their opinions on this matter, please add questions that test not only their greed, but their understanding of the economics involved. If they don't understand the economic implications of raising the royalty, then their opinion is uninformed and not worth considering. Be smart with my families future ... PLEASE! |
| RRE2335 |
I think that we should be getting more money for OUR resources...I know that there is a risk of slowing doen development a tad .. but the demmand for the product is going to be huge |
| RRE2336 |
I would like to say that I have read a lot about this review and I do not consider it to be a positive thing for Albertan's for many reasons. It does not cosider the overall impacts to the economy in items such as lower revenues in landsales and lower foreign capital investment due to the political unstability seen from these changes. You can't just change the rules when things are good or vice versa. The royalty plan in place was setup to cover all price and production ranges so it does not require modifications. Also, the current producers are in a low revenue environment due to high operational costs and the rising Canadian dollar. The impact of all of this overlaid with the recent trust changes will cause a recesion in the Canadian oil industry. Think before you react to a few pressures. |
| RRE2337 |
As long as our royalty schedule is within the range of other oil producing regions, then we are not likely to be in danger of losing investment in the industry. By all means, increase the royalty till we are in the mid range. |
| RRE2338 |
Premier Stelmach, Minister Knight; I wish to urge both you gentlemen to implement the entire royalty review in its complete form. Albertans deserve to be paid fully for our resources, this fair compensation requires that all companies from the small producers to the large multinationals pay what is deserved to all Albertans for using our resources. Lastly, I also urge your government to protect the enviornment in the light of an even larger energy boom. Please protect my province for my generation (as I am a university student) I sincerely hope that both you gentlemen do not fold under the pressure being placed upon yourselves by the greed of the oil and gas industry. Thank-you. |
| RRE2339 |
I strongly believe that if the Royalty Report is enacted, the province will spiral into a full-blown recession. I can understand the viewpoint of most Albertan's; thinking that we should get a "bigger piece of the pie" and that the oil companies are making too much money. I think that is a very narrow view point and that they are failing to see the big picture. If oil companies cut spending as much as they are indicating, and bring drilling, etc. to a stand-still; the larger economy will suffer. With no one drilling or funding exploration, who will stay in all the new hotels being built everywhere, who will eat in all the restaurants? If no one is being employed in the oil sector, every spin-off effect of severe cut-backs will be felt across the province and beyond. Some Albertan's may think that increased royalties will lead to cash-back cheques like we had over natural gas rebates, but I doubt that will be the case. Over all, taking a larger amount of royalties will cost the province money as the amount of activity will drop greater than the amount of gain that will be imposed on the oil companies. Was the study not composed of 2005 information? Wages were less then, everything has changed vastly in two years. I would love to buy or build a new house based on 2005 numbers like the review board used. The oil sector is no different. The wages we pay our employees has increased as has everything else in the last two years. The future looks very dark to me if this policy goes through. Thank you, [Information Removed] |
| RRE2340 |
Albertans own the resources and they should not be given away. I believe the royalities could be higher. There should not be a huge rush to commercialize and mine, harvest, or pump them out. In the case of oil resources they are non-renewable. The value should only increase with time. I am very disappointed with the proposal by Encana to export raw bitumen. Perhaps a sliding scale of royalities should be used. The lowest being for resources being "mined", brought into a finished product , and sold within Alberta. The highest royalties on raw resopurces exported outside out of Alberta and Canada. Thus the more Alberta jobs produced, the less lower the royalty. Thank you for your time |
| RRE2341 |
I believe increasing royalties on oil and natural gas by up to 20% in Alberta is extremely aggressive. Please understand, I am not a rich person, but I am doing well. I have a wife and a new born baby boy that I hope will have every opportunity we have right now. I work for one of the biggest oil and gas companies in Canada, and I just want to share my thoughts. Also, when I say "my company", I am referring to the company I work for; I don't really own it. First, if you increase royalties by 20%, my stock and my stock options will be devalued. This is part of my retirement plan. A plan I have worked very hard on, so I will have a comfortable future, and I will not have to rely on my government to support me. I will not blame my company if my stock and stock options go down in value because of new taxation laws, I will blame my government. I have friends that work for energy trust companies, and if I ask them how they feel about the conservative government, it is a very unanimous voice expressing their disapproval. My company employs over 7000 people directly as staff or contractors. Not all of these people work in Alberta, but the majority of them definitely do. If you take 5000 people and assume they paid $20,000 in income taxes last year, this would add up to $100,000,000 in income taxes. This does not include the amount of taxes we pay everyday such as GST on the goods and services we purchase, gasoline taxes on the vehicles we drive, or property taxes we pay for the houses we live in. It also does not include the people my company indirectly employs such as employees of drilling companies, service companies, pipeline companies, environmental companies, hotels and restaurants, etc. Every sector of our economy feeds off the oil and gas industry, so increasing royalties would effect everyone in our province not just the millions of investors in oil and gas stocks, or the 10's of 1000's of employees of oil and gas companies. Federally, I have been a conservative my whole life, but I will tell you this. I will not be voting conservative in the next federal election. Part of Mr. Harper's campaign was not to change the tax structure on trusts, and he did. For this, he does not deserve my vote. Similarly, I have always supported the conservatives provincially, but how could I support a government that will affect my family in such a negative way. I know this seems like a no win situation for you Mr. Stelmach, but it is not. There is a very vocal minority; I feel is uneducated on this issue that will voice their disapproval if you do not increase the royalties as suggested. However, the vast majority of people in Alberta who are positively affected by the oil and gas industry will quietly thank you for being strong on your position not to increase royalties as suggested, and you will get our vote in the next provincial election. This is our best way of showing our support for you and your government. |
| RRE2342 |
Hello, I work for an oilfield service company. My responsibilities are accounts payable and payroll. I am fairly low on the corporate totem poll and yet this royalty increase will effect me as well. This industry affects millions of people in this province and the increase is coming at a lull. Already there have been threats from big corporations that they will pull money out of Alberta. I do not believe that Alberta will be able to thrive as it has if this increase goes through. Thank you, [Information Removed] |
| RRE2343 |
I admire Ed Stelmach for instituting the review at arms length to all other players, including the government and oil companies. It seems a fair and decent assessment of the current situation and has proposed a reasonable alternative, placing us far from the top of royalty rates in the world. I would ask that the government consider accepting the recommendations of the review in their entirety. The investors will stay, there are few other safe, reasonable oil-bearing regions in the world in which to work. |
| RRE2344 |
This type of radical change in royalties is the sort of thing a 3rd world country would do. This simply removes all investor confidence in the system. The small to mid sized oil and gas Companies will be clobbered. What will that do to the economy? Do the math. This is NOT a smart move. Please do not follow through with the recommendations, they weren't made by any one with upstream oil / gas experience. I think there was one guy, midstream at best from Shell. Not a smart move. Dont do it. I repeast, NOT SMART, short sighted, this will not work. Thank you [Information Removed] |
| RRE2345 |
I want to urge the government to tread carefully before making wholesale changes to the Royalty Programs. The flight of capital will be swift and sure as we experienced during the NEP. Even the smallest change to interest rates up or down can cause huge economic impacts as we recently saw in the US. The shutting down of the Royalty Trusts has already impacted Calgary as shown by the takeover of [Information Removed] but also the corresponding 10% drop in house values. I assure you the only albertans who want house prices to drop are those who don't own one. After the NEP, prices dropped so precipitously that people walked away from there mortgages. With mortgages at record levels this could easily happen again. I sincerely believe you have not thought this through and should not be influenced by the clamoring masses. |
| RRE2346 |
As an Albertan first and foremost, I don't agree with the royalty review report & I have set out my reasons below. While well-intentioned, the panel has prepared a report and set of recommendations that do not reflect the current realities of the industry, and that are flawed in several areas: 1. The analysis ignored real costs facing the industry. Those costs were provided to the panel by industry associations and some operators, and are accepted and expected by the investment community. For natural gas, real costs are 60% higher than the assumption used by the panel. 2. The report’s “fair share” conclusion is based on a single independent report that compares Alberta’s “share” to the government “share” in other jurisdictions, while it ignores other independent reports that indicate Alberta is one of the least profitable places in the world for oil and gas investment. 3. An increased “share” for Alberta is predicated on increased royalties not resulting in reduced investment in oil and gas development. In other words, it suggests industry’s cash flow could be significant reduced without any impact on the industry. As a citizen and a voter, I wouldn't want any changes made to the current royalty regime that may have a negative impact on the quality of my life and that of my fellow Albertans. I don't wish to see the oil & gas industry (& the economy of Alberta) slump due to a government policy as it did in the 80's. |
| RRE2347 |
royalty money should be given to canadians |
| RRE2348 |
If the royalty panel report is accepted in full I think it will have a negative impact on the Province of Alberta. Many major oil companies have publicly stated that it will significantly impact their operations. As a result they will have to reduce investment in the Province of Alberta. This will effect workers in the oil industry and well as workers in the oil services industry as well as many others indirectly. This has the potential to allow many people to lose their jobs. As well, it will discourage new entrants into the oil industry due to having to pay royalties as soon as the a well produces revenue (not when it pays out). However can a start up invests thousands of dollars and pay royalties as well prior to making a profit? This changes the payback period period and economics of drilling and many wells that would have been drilled will not be drilled. I agree that Albertans should get their fair share of royalties from the oil industry. However, what good is a larger royalty on a decreasing industry as a result of the proposals? I think that royalties should be increased as commodity prices increase. There needs to be a balance between what maintains a healthy, booming oil industry and the appropriate increase in royalties. |
| RRE2349 |
Friday, October 19, 20 Premier Ed Stelmach: I am writing as an Albertan who supports the premier’s Royalty Review initiative. From the information that has become public, it is apparent that measures need to be taken by your government to protect the interests of Albertans’ resources for Alberta’s citizens. Hopefully, the current government will not cave to the bullying and threatening actions being engaged in be some major oil industry players who clearly do not want changes that will affect them. As a life long Albertan, I have been directly affected by the cuts in the 1990’s to both education and health care. With responsible decision making now, I would hope that the need for such cuts again would be averted. Sincerely, [Information Removed] Cc Gordon Graydon Cc Mel Knight |
| RRE2350 |
Dear Alberta Government: Even the mention of an increase in the royalty rates has initiated a slowdown in the Alberta economy. People are hesitating on buying new commodities knowing that a raise in rates would lead to dramatic changes in the oil and gas business. Is the Alberta government that greedy that they are not happy with the billions of dooars they get now. All contractors and companies have to make a profit or they will not do business. Oil companies are even more needing to have a reliable, steady, consistent playing field as the risks they take are tremendous and the capital inputs are huge. They cannot be expected to explore and develop new resource plays if the profitabilty and reliablilty of the industry is subject to change by the whim of the governments. This royalty review has all the makings of a tax grab similar to the 1980s by the federal goverment that put Alberta in a tailspin for years. People lost their houses, their jobs, families were broken apart. It was a disaster. Think long and hard Alberta government people, this could start a downturn that would stop the Alberta economy in its tracks. |
| RRE2351 |
Please consider this carefully through all fields' perspectives...there are many that would be negatively affected by this proposal...please consider this for both Albertans and Canadians' good. Thank you. |
| RRE2352 |
Please stop the implementation of the ARRP recomendations. Thank you. |
| RRE2353 |
I am extremely surprised and disappointed that our premier is not fully accepting the panels recommendations - wasn’t he the one setting up the panels in the first place for "transparency"? To my knowledge the affordable housing panels recommendations were rejected too. If the energy companies can go elsewhere, well they should. My only question is where? Even with the recommendations Alberta will be one of the most affordable places, so are they going somewhere where to royalties are higher? Who are they trying to bully here? Thanks for reading my message, [Information Removed] |
| RRE2354 |
I have been following the 20% royalty proposed from our government over the past while and quite frankly am very concerned of the overall outcome this may have for our province. I understand what our premier is trying to do. Oil and gas will not be around forever and the province feels they should take more of a cut so when the industry does slow down, the province will have a fairly substantial nest egg to fall back on. It is an excellent government practice to look this far ahead in the future for the people of Alberta if it is for the people of Alberta. Unfortunately, I don’t think our government is trying to look at our side as much as I have tried to understand theirs. Here is how the common voter that works within the oil industry is looking at it. There are approximately 95,000 Albertans that work directly in the oil and gas sector. These people including myself all have families which a rough guess would mean at least 45,000 spouses and children. These people all spend money in their communities which in turn allow how many other industries and families flourish. If this tax goes through, the oil and gas companies will put many of their projects on hold at least until investors start to get upset. By this time most of the oil and gas industry will be unemployed, lost their homes to the banks and have moved to a different province to find employment. There is a reason why a flood of Albertans have been buying up homes and driving the price of houses to unsustainable levels in cities such as Regina. This in turn affects everyone in small business, real estate, not profit organizations and even charities. If people move out of the province in search for new employment, it will take a very long time to get them to come back to work here. So even if the oil and gas sector resumes normal production, the province will be in more of a dire need for workers than we have today. Educated or highly experienced people will not stay in Alberta to wait for things to turn around. We are in just as high of demand here as many other provinces and further. Oil and gas companies have donated millions of dollars in our community so our children can play sports or go to collage in a brand new building. I don’t see the government doing these things in our community. My son’s soccer club does not say sponsored by the government of Alberta but it does say Encana. To sum up, I am sure there will be at least 1,000,000 people at a minimum which will be directly or indirectly affected by this proposal. One thing I am sure of is if myself with everyone else becomes affected by this decision, our beloved new premier will know what it is like to be unemployed not to long after. Good luck getting re-elected! Yours truly concerned, [Information Removed] |
| RRE2355 |
I am currently employed by [Information Removed]. As the largest [Information Removed] in Alberta, we are fortunate to have industry information that allows for very informed opinion on the issue of Royalty changes. Although I agree there should be a formal process to regularily review and change Royalties if required. I am confident that this panel's assessment and proposal will severly cripple Alberta's economy and specifically Rural Alberta. If industry pulls an estimated $10 billion of capital investment in 2008, this will potentailly create high unemployment in the service sector, it will force the service sector to move it's resources elsewhere (US and Internationally), which would also be determetal long term as the loss of technological advances in Alberta and the ability to attract service companies to return in the Future would be limited. There could also be a negative "trickle down effect" created with local business and commuinty funding for social programs as Producers experience drastically reduced activities in given areas, and this affects ALL ALBERTANS, not just people directly employed in the Oil and Gas industry. I support the intent of this initiative, I want our Teachers, Nurses and Doctors to be paid well and have a strong Social Network, however not at the sake of everyone's well being! I think the process should be re-vissited and it should be a colaberation between Government and Industry to come up with the best possible solution. |
| RRE2356 |
[Information Removed] Mr. Morton, Although I am not directly involved in the Oil and Gas industry, I am familiar enough with it and old enough to remember a similarly harmful movement to curtail opportunity in Alberta, a movement directed by a Federal government led by Liberals intent on picking the pockets of hard working Albertan's. Odd now that the Liberals of Alberta see the opportunity in Alberta's energy sector and the ramifications of such moves but the ruling Conservative party does not. Viewing your site leads me to believe you were a young man when the NEP was introduced by Pierre’s LaLonde and Trudeau. And despite not being a direct part of the energy industry, I realize how important a role it plays in just about every business in Alberta and how tinkering affects the development of opportunity for everyone. I was fortunate enough to have been invited to a business dinner in late 2006 with leading business men hosted by Premier Hamm the then premier of Nova Scotia. I realized, through evening long conversations, that most of the young men and women in attendance had never actually known hard times in business here in Alberta, something I was rather pleased with having personally been affected by the recessions relating to the industry energy. I would suggest however, should our government choose to initiate the plans set forth in the panel recommendations relating to the royalty payment scheme, I will assure you, you and all of the other young men that have not known what a downturn is will witness one first hand. Should that be the case the only comfort you may have is that your tenure with the government was sufficient enough to afford you a pension for you will not see it from a seat in government. Speak to your leader and suggest an alternate path. [Information Removed] |
| RRE2357 |
Do not adopt report as is, due to the fact of the weakness of inflated costs & inappropriate use of royalty vs taxes in report. It is rather unfortunate that no matter what you do with the report you will be the looser unless you compromise. Due to the blow up of income trusts last fall & the tentative increase in conventiional o/g royalties, the reports recommendations will certainly cause significant downturn in the rural area's of Alberta. Also I am not a member of any provincially union who would gain significantly with a larger wage increase to my salary once the royalties were increased. Regards [Information Removed] |
| RRE2358 |
It is time for the Alberta government to stop letting the oil companies cheat the people out of their fair share. Follow the lead of Newfoundland's Danny Williams, and set Albertans up with a royalty regime that represents the valuable resource the people own. |
| RRE2359 |
Premier Stelmack and Government of Alberta members, in regards to the decision being made on the royalty review I would like for you to know that a lot of Albertans are for the rate hikes. I watched the Edmonton news this evening and was compelled to write and voice my opinions after witnessing many picketing working Albertans outside the legislature building today. If our government does not raise the rates now there will be no other time to raise rates. The oil and gas industry controls much of this province already. Too much some might say. If "we" don't raise rates now the oil companies will know that they can and will get away with whatever they deam, further into the future. This provinces resources belong to each and every Albertan including our children who do not have a voice. Alberta has the second largest deposit of oil that has been discovered to date and we should take this opportunity to even the field and ensure our future is more sustainable.For this reason alone , now is a great time to change the rates. The oil companies want oil and will eventually get it, what Albertans want is a fair price for these resources. The economy is already in a slow down in the oil sector. Not all families in Alberta are benefiting from the oil dollars, the "boom" has brought with it a lot of hardship and a huge increase in the cost of living. This may very well be the perfect time to re- negotiate royalty rates. I trust that "you" will review carefully and do what is in the best interests of all Albertans. I thank you for your time and considerations. [Information Removed] |
| RRE2360 |
Dear Sirs, I am writing to you to raise my concerns regarding the Alberta Royalty Review Report released 2 weeks ago. As a resident of Alberta, I would like The Alberta Government to take the right decision in regarding to The Royalty Review. But a decision like this, of paramount importance, needs to be debated as much as possible with the main protagonists. I do not understand why the Alberta Government needs to meet a deadline for mid or end of October to enact a serious project like this. As mother of 3 kids, I can tell you we wish more schools to be built, more hospitals and walking-clinics to be built, new train stations to be built, roads and in general, improve the public services. But this should be done without causing a negative impact in Alberta’s economy or causing a big exodus of Oil & Gas Companies to other more profitable latitudes. On the contrary, we want to maintain the Alberta’s economic growth reached so far. Without the Oil & Gas boom, Alberta wouldn’t have reached the economic growth it has had in the past few years. I would like to know your point of view regarding the comment in the report that says “The Oil & Gas Industry has direct control over their cost”. I think this is not correct and is strictly related with the Demand/Supply market. I trust the foregoing concerns would be taken into consideration. I look forward to hearing from you. Yours truly, [Information Removed] |
| RRE2361 |
The oil royalties should not be increased at all !!! We have more than enough revenue at this time to manage our province, with a surplus LEFT OVER. With the rising dollar, against the US dollar, our oil companies are making less because they are paid in US funds and have to operate in CDN dollars. If royalties are raised this will cut into profits and slow down growth. Do you remeber 1986 when oil prices went to less than $10.00 / barrel? I am not saying oil price will drop but the spending stopped in. 1986 and lay offs were everywhere and this will cause lay offs again even with high oil prices. With lay offs this will cause lost tax revenue for the government in personal income tax and corp tax and also a decline in Alberta's population. Our economy will probably go to Hell. THINK VERY LONG AND HARD ABOUT THIS. DON'T LET THE LIBERALS AND NDP DRAG YOU AROUND BY YOUR NOSE. I started my business in Jan of 1986 with 2 other partners and by May that same year I was by myself with no revenue at all, but managed to make it. Today, I have a new shop [Information Removed]and there is 9 of us on the payroll. Our company has grown a little every year, so don't srew it up for us because I am getting closer to retirement and don't have time to start over again. Our business is a [Information Removed]. For more information about us our website is, [Information Removed] Mr. Stelmach, I would be more than happy to show you our business and product if you are interested. Thank you and have a good day. [Information Removed] |
| RRE2362 |
The report came up with more emotions, not most Albertan interests. Alberta needs to build more hospitals, roads and schools. The well developed economic and more investment in the province, more revenue the Alberta can get to fund these infrastructures. I believe that the Government of Alberta would look into long term not short term. [Information Removed] |
| RRE2363 |
Royalty Review - comments I urge Premier Stelmach and his team to ensure they have all the facts before they decide on the recommendations of the Royalty Review panel. The impact to all Albertan's will be tremendous. Oil companies will not be able to survive, or reinvest profits into new projects if they do not sustain a decent rate of return. If this policy is adopted you will see job losses in the oil and gas sector and any other industries that depend on oil and gas in this province. Spending will go down and the domino effect will run rampant through the rest of Alberta's businesses. The 1980's were a nightmare, never knowing if this Friday was the one where your husband would bring home the dreaded "pink slip" because the company he worked for couldn't afford to operate anymore. This policy will not put more money in the pocket of the Alberta government. By adopting this policy you will shut down viable business and this will result in even less revenues that you experience now, when the province has stability and growth. I have never seen the Oil and Gas sector as stable as it has been over the last 8-10 years. It is not broken, please do not try and fix it. Thank you for listening. [Information Removed] |
| RRE2364 |
As an employee of a large Canadian Oil and Gas company, I know first hand the impact these changes will not only have on our Industry in Alberta, but our economy as a whole. I look to the Premier (and his representatives) to bring some reality to this proposal – before they send this Province into an irreversible economical tailspin. I find it hard to believe that the current government is prepared for the aftermath they are looking at endorsing. To be more specific: ? The Fundamental assumptions for capital costs the Panel used are low by a factor of 2. Credibility and analysis of report recommendations require significant review. ? By nixing the Special Royalty Programs for deep, marginal wells – the government is ensuring exploration for these type of wells is completely non-economical (end of story). Deep Foothills exploration within Alberta will be non-existent. ? With the Primary Oil Sands being eliminated from the Oil Sands Royalty Program – the economics for all Heavy Oil Properties in Alberta will drop dramatically (even at $82/bbl oil). If oil were to come down to even $60/bbl, not only would we stop drilling completely – we would probably be shutting wells in. ? The review states that 82% of the gas wells will be lower (this is based on lower gas prices). Based on strip pricing for 2008 (about $6.00/mcf), all gas wells (including the marginal ones) will pay more in Royalties – deeming them uneconomical. ? With the Oilsands Royalty going from 25% to 33% base – there are present projects being built which would not have spun a wheel if they had known this would happen. Bottom line is that all people hear about is how oil has gone from $20/bbl to over $80/bbl. What they don’t realize are the enormous price pressures we presently have in this Province. MD taxes increasing by over 50% in some municipalities, costs of services going through the roof, Heavy Oil differentials approaching $30/bb. It is interesting to note that even prior to reading this panels recommendations, gas development in this province is almost at a standstill. By endorsing these recommendations – our present Government will ensure that billions of dollars will exit this Province in 2008. Encana’s recent PR about moving $1.0B out of their capital budget for Alberta is just the beginning. I never thought I would say it in my life – but with the Conservatives being so naïve to honestly think this will have minimal impact on development within the Oil and Gas industry in Alberta – I may become a supporter of the Liberal Party!! Who would have thought a Government could [Expletive] the economy of the most successful Province in history – all in a matter of a few months – this will go down in Canadian History!! [Information Removed] |
| RRE2365 |
The speech Wednesday evening was nothing but a campaign speech. Ed is scared of Big Oil and it shows. I want the 2 billion we are owed every year in our pockets not oil companies profits. This oil and gas belongs to Canadians and Albertans. Regards [Information Removed] |
| RRE2366 |
Premier Stemach; Now is the time to act on the full recommendations of the royalty review. Prices are high, substantive proven reserves exist and a slowdown in capital markets would provide a timely pause to reposition and implement strategies to support sustainable development of the oil sands. Energy Dept professionals have made the case in the past and now the Auditor General's has made this fact public with his annual report. It is my understanding that the royal regime in place never contemplated the prices we're seeing -- for example, natural gas prices higher than $5.00 we never contemplated, with royalty rates capped at a price substantially less than the current market prices. The result -- a wholesale windfall to the resource companies. When an oil and gas company makes a $7.0 billion profit and suggests they may redirect a billion dollars -- do not be swayed -- it just shows us all their true committment to Albertans -- for what it really is. [Information Removed] |
| RRE2367 |
It’s a new ERA – Economics have changed with the new global economy. Alberta must review their assets and enjoy what equity is theirs to retain. Submitted by [Information Removed] First of all we should give thanks to the hard workers and visionaries of decades ago who found oil, worked hard and created a solid foundation for Alberta to build a thriving economy. We must also give thanks to the Provincial government and somewhat to the Federal government for their support through grants, loans and creative tax structures to assist the oil sector. In the beginning it was essential for the governments to support the concept of having few or lower taxes on small businesses. Decades ago, I’m sure the economists knew close to 100% of the potential tax money that was left in the hands of the Alberta entrepreneurs ended up back in the Alberta economy. Economics 101…neither over tax the business community nor the entrepreneurs for they create economic growth and diversification in the local economy. It’s a new era. Economics 101 has a new calculation to consider. Times have changed. It’s a new era. Decades ago economists confidently knew close to 100% of the money earned on the oil coming from below our feet is not re-invested back into Alberta or at least back into Canada. Today, how much of that revenue stays in Canada? I’m neither an economist nor do I have access to sufficient financial statements to determine how much of the revenue generated from Alberta’s oil stays in either Alberta or Canada. I’m sure it is less than 50% and maybe be closer to 30%. Therefore, there is only one conclusion: The province of Alberta should take an even larger slice of the pie than indicated in the royalty review paper. These energy companies were surviving with oil prices below $15, they were doing well at $30 a barrel and at rates above $40 a barrel they have been giving out lavish salaries, bonuses, share options, expensive parties and staff flies usually fly first class and stay in very expensive hotels. The [Information Removed]of the world will still be very wealthy and the Encana’s of the Alberta (Encana only exists because of indirect or direct healthy grants, loans and subsidization from both the province and federal governments in the 70s and 80s.) will continue to do well. At business school there was always the old comment; Let the business community look after the assets and not the government (province) because we the business community know how to look after the money and we will spend it wisely. For years I believed that. However, with so many lavish bonuses and share options handed out to employees and executives these profits are not being spent in the province. The $500,000 or $1,000,000 spent on the golf condominium in Arizona was neither spent here in Alberta nor has it helped our economy. The $150,000 spent on a Porsche or a BMW, or $250,000 to $400,000 on a Bentley or Ferrari leaves the country and goes to the manufacturer. Lets be open and fair 3% to 5% does helped the Alberta economy; for the salesman makes $1000 to $2000and the dealership earns $3000 to $10,000, but the remaining $150,000 to $350,000 goes to Germany or Italy. $100,000 to $1,000,000 boats are ordered and left in other parts of the world. Decades ago, most Albertans vacationed in Alberta or Canada and that vacation money was spent here. Today most people in the oil/gas sector vacation elsewhere. Many of Alberta’s oil/gas sector companies have offices in Houston, London, Rio, NewYork, Paris and Singapore. These staff members live, stay and work in million dollar homes and offices. Commuting back and forth to these offices is done in first class of other country based airlines or in corporate private jets that were purchased elsewhere and are often stationed and serviced elsewhere in the world. We all know money is electronically moved from one tax haven to another. The list of situations where money leaves the country and the province is endless. Huge leakage of monies! It’s a new era and there is huge leakage of monies that no longer stays in Alberta to drive the economy. Companies employee 1000s’ of accountants, economists and lawyers who work long hard hours looking for ways to avoid paying taxes. Some avoidance of taxes may even be tax evasion. Yes, I know it’s a global economy. Yes, we all know the world has changed. So does the need to change the tax structure and royalty. The Province of Alberta should take a larger portion of the up front revenue. The royalty system should be easy, highly visible and easily understood by all. Eliminate the need for 1000s of accountants to be searching for ways to escape or minimize tax or Royalty payment. Bottom line – Millions or even billions of dollars which came from the oil beneath our feet that belongs to the citizens of Alberta should stay here and be spent here by the provincial government . I agree hard working oil/gas patch sector workers should be paid well and their $100,000 to $200,000 annual incomes are earned and they deserve it. WIN - WIN SITUATION - In the end there maybe casualties of accountants, the profit of the oil/gas sector may increase and the citizens of Alberta will gain a greater percentage of what is really their asset in the first place. The oil in the ground does belong to Albertans. Reality – no matter what the royalty fees or taxes are – someone – an entrepreneur will make a very healthy living from it. The [Information Removed]of the world will always do well. [Information Removed] A long time citizen of this wonderful province who wants to see it remain a wonderful place to live. Long term outlook - the monies generated from the oil and gas below our feet has a definitive end. Once the commodity is gone what will support Alberta and Albertans. Capture and retain as much as possible. Seize the day and retain what is ours for the future. This commodity is not an infinite revenue source. |
| RRE2368 |
Dear Mr. Premier, As a financial professional I would like to urge you to work with the energy industry to find an alternate solution to the Alberta Royalty Review Panel (ARRP) recommendations. What most Albertans fail to realize is that the cost of implementing the ARRP recommendations (which are based on bad data) may very well be greater than any of the benefits. The market is ‘reflexive’ so eroding oil & natural gas economics in Alberta will lead to less investment (capital flight out of Alberta), fewer jobs, lower personal income, lower revenue, lower royalties (over the longer term), lower tax collected and eventually more leverage for energy firms and less cash for the province to spend. Reflexitivity can cause positive or negative spirals that are difficult to exit (e.g. just look at the U.S. real estate difficulties). The province of Alberta is currently wealthy (debt free and cash rich with yearly budget surpluses) because of its historical royalty and tax take and pro-business (Conservative) attitude. Lastly, for those worried about future royalties for Albertans in the distant future, I would like to add that under current production rates the oil sands, in aggregate, will last another 400 years! It would make sense to continue the pace of oil sands development (even though costs are high) so that we can maximize the present value of the royalty take for all Albertans. Kind Regards, [Information Removed] Dear Mr. Premier, The above letter was sent in by my colleague [Information Removed], and I would like to echo the sentiments expressed above. I am the chief administrations officer of a small Alberta-registered portfolio management company [Information Removed]. The suggested royalty changes, as they pertain to our sector, would devastate a sector already reeling from weak natural gas prices and escalating costs. It is too early for us to understand the full fall-out on our small business, but it could be dire if the current recommendations are fully implemented. Respectfully, [Information Removed] |
| RRE2369 |
I have worked in the oil industry for over 20 years, and have run economics for the last 10. This has given me quite a bit of insight into the economics of the oil industry. The interesting thing is even though the price for commodities has increased dramatically, so has the price of services. The net result is that we still look for about a 15% rate of return on capital. As for the huge profits oil companies are making, I have two points. Most of the profit comes from projects undertaken when commodity prices were lower and are now making high rates of return. The second point is most of the cash flow from oil companies goes directly back to drilling more wells, building more equipment etc. For those of you who think that the whole oil industry is booming, you should talk to service companies who are already laying off people in the 1000's due to low gas prices and to people who work for Junior oil and gas companies (who have only been operating for the last 2 to 3 years), most of which are losing money due to the high cost of services. I talk to people in both sectors every day and they were nervous about thier job security even before this royalty review. My last point is that this additional $2 billion ($700/person)that the royalty review panel says Albertans will get will be a temporary gain, that will be more than offset by house prices dropping by $50K. Perhaps before you enact the panels findings, you should read a book called "THE PRIZE". It is an interesting history of the oil industry and it shows that just about every time governments change the rules in a local juristicition, they have short term gain and long term pain. Judging by the story in the Globe today about [Information Removed] pulling $1billion worth of capital out of Alberta to put into BC, Sask and the US, the long term pain is starting. In closing, I have talked to over a 100 people the last few weeks, all of them who have voted Conservative all thier adult lives, and each have said that if these recomendations are put into law, they would never again vote Conservative. I guess that would make Premier Ed a Trivial Pursuit question and the Harry Strom of the new millenium. |
| RRE2370 |
There's one Chinese proverb: "Collect eggs by killing hens". If the govenrnent of Alberta does accept the recommendations of the Panel, it will exactly be "collecting eggs by killing hens". If the "hens (oil and gas companies)" are dead or in trouble, how can you collect "eggs (royaties and taxes)" any more? Please be cautious as the oil patch relies on prudent government policies and/or decisions. Thanks! [Information Removed] |
| RRE2371 |
My view is that the Panel's review was seriously flawed in several aspects. Their assumptions on capital are completely false by a factor of at least 2. Also, the expected impact on govt. royalties is much greater than the stated $2 billion. The assumption that activity levels will remain the same is shear stupidity. If the report is implemented as proposed, activity levels in the oil & gas industry will be severely reduced. The economic impact to Alberta will be massive. Please take the necessary time to gather the facts and make a prudent decision. Thanks, [Information Removed] |
| RRE2372 |
I am very upset at the proposed changes and the heavy handed, greedy measures proposed by the panel. I am a small business owner in Alberta, and I feel my voice is not being heard. My business directly employs 9 people and indirectly we employ dozens more. We are involved in the E&P side of the business and we use money only raised within the company. Our company will be devastated fincancially by the proposed changes. There are two major complaints I have with the report. The first is concerning the data used to determine the Finding, Develop, and Producing costs for conventional oil and gas. The data submitted in the report is not at all accurate for businesses in 2007. Major changes to the Canadian Dollar exchange rate, and major changes to the costs since 2005 have rendered the analusis completely invalid. Also statistical tricks, like using the statistical mode and mean interchangeably in what looks to be a manipulative manner, have been used to depict the profitability of conventional oil and gas projects falsely. This has the appearance that the panel knew the answer, that Alberta is not getting its fair share, and found data to support that conclusion, no matter how invalid it is. The second major concern I have is the ethical fairness of the proposed changes. The province has sold oil and gas leases, and the companies have spent their money(in our case, our own money) to develop these leases. It seems highly unfair to change the rules so substantially after the fact, and makes a mockery of the title of the report. I would be so happy if someone from the government would call me so we could discuss this. My livelihood, those of my employees, those of the service company folks we employ, and our families are part of Alberta too and we feel like we are in your gunsights. You are going to hurt us severely if you enact the report's recommendations. |
| RRE2373 |
right now the industry is in peril with only 38% of the rigs working. Service companies are begging for work and no one can help. How can you raise taxes on a deminishing tax base which will put us in a recession. I know good companies whose revenues have dropped by 2/3 who might go out of business. Why does Saskatchewan lower royalties and taxes so companies will move there. How do you tell the other provinces oh we don't have enough, Alberta is suffering we need to raise taxes. Don't kill the goose that lays the golden egg, maybe you could learn from the past and only take bay steps. Maybe raise rates over ten years. |
| RRE2374 |
The recommendations on the final report from the Royalty Review Panel should be accepted in its entirety. The recommendations are fair and reasonable. The oil companies have created a lot of propaganda to convince Albertans that Alberta receiving more royalties will damage the economy. This is just not true. Companies who have already invested over 15 billion dollars will not stop percent. The oil belongs to Alberta and it is about time Alberta gets paid for its resource. Taking slightly more money for royalties will not harm the economy, however a slow down in the extent of the boom would be very welcome to all Albertans who have seen costs increase without their salaries increasing to match. Mr. Premier Stelmach the decision you make regarding this issue will be your legacy please do what is best for Albertans not what is best for the oil companies' bank account. Sincerely, [Information Removed] |
| RRE2375 |
An unpredictable increase in royalties could hurt the Alberta economy and we are all doing quite fine right now thank you very much. It's understandable that Albertans want their fair share, but let's make sure we don't end up worse off, with a dismally smaller pie just because we think we should get a bigger slice. Focus on making the pie bigger. This is common-sense economics in contrast with a royalty review that threatens to bring Alberta's advantage to a crashing halt. |
| RRE2376 |
As a geologist who has worked in the oil industry in Alberta for the past 27 years I have seen the risk and reward associated with our business. I have also watched most companies move away from the risky exploration and development approach and towards the resource play style of play which the oil sands and low productivity tight gas plays typify. While providing a lower reward, risk is reduced to an development problem rather than a discovery problem. With the unprecedented rise in the price of oil, we in the oil industry have enjoyed a windfall of bonuses, and salary increases. Senoir management at many firms have rewarded themselves handsomely for the good fortune which has come upon us. Albertans in general have benifited from the price increases as well with more jobs being present then can possibly be filled. As a result wages have risen but unforetunately often not as fast as living expenses. Through all of this the province, the manager of the resource for Albertans, has not taken any windfall taxes from the companies. As a result, as the study indicated, Albertans are literally giving away the eggs from the golden goose. The proposed royalty increase is an overdue correction and would put us into the mid-tier of royalty rates still below Alaska and Texas. It might also slow Alberta's economy down to a reasonable growth rate from the super heated economy that is occuring at present. There should be a sliding scale present if commodity prices drop but in the modern world with great demand and limited supplies of secure and stable production that is unlikely. The government of Alberta has to recognize the resource that Albertans have been given is limited and not renewable. As stewards you must put the best interests of the general population first, both the current generation and future generations. I believe the proposed new royalty scheme is a reasonable compromise. I am concerned that the image of the government being in collusion with the energy industry to deny Albertans their fair share is starting to become firm. The industry ,like the public, had an opportunity to be consulted and provide input during the evaluation process. The fact that the industry has a second pass at the results in closed consultation with the government makes many people wonder who the government of Alberta is working for. As a worker in the oil industry I am sure we can still make a reasonable rate of return on our investments and Albertans can get their share. BMW sales may drop and less luxury homes may be built, but money made too easily is often thrown away. A higher royalty will force the better companies to tighten their belts and sharpen their pencils, the companies that did not have a good business plan will fail anyway. The golden goose will get trim, it will not die as long as there is a demand for oil and gas, and money can be put away for future generations of Albertans. |
| RRE2377 |
I truly don't think you realize the grave consequences that implementing the recommendations on the royalty review will have on this province. Implementing these changes will throw us 20-30 years back in time when we had the NEP to deal with, but this is worse.......our own Provincial Government is doing it to it's own people. To do this would truly kill the "Alberta Advantage" and stagnate the oil and gas business for decades to come. [Information Removed] Calgary |
| RRE2378 |
Time to call big oil's bluff, Ed. I what to see more refineries built in Alberta. If the oil companys just want our oil and create the jobs in the USA then they need to pay top dollar for it before it leaves our borders. |
| RRE2379 |
NO NO NO NO ... |
| RRE2380 |
Premier Stelmach...I urge you not to sucumb to the "sky is falling" posturing of the Oil and Gas Industry and in particular the shameless attempt at blackmail by the EnCana Corporation....who have done so well living off the resouces owned by all Albertans. The Panel's report is credible and thoughtful. Albertans should not be afraid or ashamed to ask the industry to pay a fair and competitive price for OUR resources. The proposed rates are still very favourable to the industry as compared to jurisdictions such as the U.K and U.S. I suggest EnCana take their $billion down to Venezula where I'm sure they'll be welcomed with open arms. I'm equally sure there will be a long line-up of foreign investors happy to replace that investment in Alberta. Remember...all Albertans own the Resources and deserve a fair share of the the benefits. Thankyou [Information Removed] |
| RRE2381 |
raise the royalties by $2 billion/ year |
| RRE2382 |
We need to put "our money" into infrastucture, schools, hospitals, health care, child care, heritage fund etc., not give away "our money" to the oil companies. |
| RRE2383 |
I am concerned that the Primier will not increase the royalty rate to the levels the report recommended. If he does not the people of Alberta will say this government is in the hands of the Oil & Gas companies. Come up with all the excuses you want but the people will not believe the industry is hurting with the profits they are making. Accept the report and get a fair share of the peoples resourse for the people of the province. |
| RRE2384 |
If companies want to decrease their work load, all they have to do is increase their prices - done deal. If the Alberta government wants the province to decrease the work load of the people in the province, all they have to do increase their take of the pie - done deal. |
| RRE2385 |
I would rather my legacy be that of creating and building... not tearing things down that I dont understand. |
| RRE2386 |
Many proponents for Big Oil claim that an improved Royalty Regime for Alberta will discourage future investment and slow down the booming economy. How is that a bad thing? The economy of Alberta is currently out of control and hinges completely on one sole driver. Alberta's economy could use a little slowdown and diversification, which would help shield it from an eventual crash if the current pace of unsustainable, uncontrollable growth continues. Even with a new Royalty Regime, Alberta would still be an extremely desirable destination for oil developers, as opposed to other world markets that are far less stable politically. It's no surprise that oil companies balk at the mere mention of this, why would they give up $2 billion per year in profit if they do not have to? An economic slowdown is what Alberta needs right now, and allow for some time for workforce shortages, inflation, and things like speculative housing prices come back into balance. As a young single, well-educated individual, and high-income earner for my age, it is practically impossible for me to buy any property in this kind of market that is larger then a shoe box, and it would probably be a bad investment as you could probably only recover your investment in these kind of economic conditions, or over the very long term. In addition, worker shortages, this situation is reaching critical in the health care industry as these kind of individuals are in very high demand not only here but elsewhere in Canada and the world. But not just here, even in the service industry for restaraunts, retail outlets, and even grocery markets, it is becoming increasing difficult to hire enough staff to serve customers. -end- |
| RRE2387 |
It is imperative that the provincial gov does not give in to the blatent blackmail techniques being used by the large oil companies-especially the likes of Encana which peter lougheed had the wisdom and forsight to impliment (AEC) then Ralph comes along and literally gives it away to make himself look good. Stand firm Ed-Albertans such as myself are counting on you to implement the royalty Review Panels recomendations for the stability of our ecomomic well-being now and for the future of my Grand Children and future generations. Its not a Re-Newable Resource-when its gone so will the big oil companies be gone .Yours Truly,[Information Removed] |
| RRE2388 |
Take a page from Norway and provide for our citizens, our agriculture and our environment. Norway did not allow other countries bully her as Alberta has in the past. Don't you think the neighbors haave been expecting this?? A little late (60 years) but let's do it!! Increase roayalties!! |
| RRE2389 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 10:46:26 DATE ENTERED {ts '2007-10-02 12:00:01'} |
| RRE2390 |
DATA FLAW IN ROYALTY REVIEW PAPER Two major differences between Alberta and other jurisdictions is the: BONUS PAYMENT & RENT FOR LAND NON TAX DEDUCTIBILITY OF ROYALTY PAYMENTS (except for the royalty tax credit of 25% less operation costs or less than 20% on average) These do not apply in many comparative jurisdictions, thus the report is flawed in terms of total government take. Higher royalties = lower bonus payments as the land value as declined Thus government take will not go up as fast as predicted in the report. Also our royalties are NON-tax deductible. Other jurisdictions do not tax phantom income not received. Therefore the true government take will increase more that the report suggests using marginal tax rate analysis. In fact after tax netbacks for high cost wells could go negative at high prices such as they did in the early 1980’s causing production to be shut down, and provinces to reduce royalties. Changes in royalties should make royalties tax deductible and eliminate the royalty tax credit to be fair. [Information Removed] |
| RRE2391 |
I have read the royalty review report and I find it one sided. A complete review should consider the impact of a change in royalties on the rate of return (ROR) on investments in Alberta Oil and gas Projects. CAPP has such a summary. Currently, the ROR for Alberta Projects rate dead last compared with other Provinical and country Oil and gas Projects. The ROR in Alberta is 12%. This is not an exciting number in the business community. Any change in royalties will dampen investment into the province. As of Friday morining Sept 28, Encana had announced a potential reduction of $1 Billion in its capital spending next year if the royalties change as per the report. This means layoffs of employees. Other companies will follow. I guess all of this means nothing to our government. [Information Removed] |
| RRE2392 |
Dear Honourable Ed Stelmach, Premier and Honourable Lyle Oberg, Finance Minister, Re: Alberta Royalty Review Panel Report Before implementing the current proposals, the Government needs to fully understand the impacts of proposed changes so that we do not stall investment which is the real driver of the prosperity of all Albertans. The Government should focus on encouraging the economy first and not taking more which will kill the hand that feeds it! The Oil and Gas industry invested $60 billion in the province in 2006. Look at the impact of taking that investment in the Province away and compare that with Government trying to take $2 billion to ineffectively distribute! Give your head a shake.......do you really think the people of Alberta will be better off by killing $60 billion investment annually and offset that by you taking $2 billion more in? A key argument used in the report to support the recommendation to raise royalties significantly is the assertion that “government takes” elsewhere in the world are higher than in Alberta. But, this assertion is meaningless without comparing cost structures, well productivity, reserve sizes, and reinvestment levels. We’d love to have the resource base that some of these countries do……but we don’t! We have a resource that costs more and yet we get less per well than in most jurisdictions. You need to compare returns on capital employed to determine which jurisdictions provide the best returns for those investing the capital. A John S. Herold report shown in the National Sept 25, 2007 illustrates that returns in Canada are modest compared to many other jurisdictions, and in fact probably half of most jurisdictions. The ARRP report suggests that approximately 80% of gas wells will see reduced royalty payments if the recommendations are implemented. However, this would occur only if gas prices were to decrease to approximately $4 per mcf. At more current levels of $6.25 per mcf, the proposed royalty rates are all above the old ones. Today, with existing royalties on gas, rig utilization in Alberta is running at about 40%. If industry activity is already in decline in Alberta, higher royalties will only decrease activity further. In the US, where the industry is drilling similar prospects, rig utilization is approaching full capacity. The future of Alberta is largely in unconventional gas and oil (EOR and oilsands). These are high-cost, low productivity projects that require high prices to generate acceptable economic returns so that investment is encouraged. The recommendations in the report call for the government to receive a higher royalty rate on gross revenues without consideration to what it costs and the time to achieve payout for those who do the investment. Your proposal will render most of these as uneconomic and will thus stall the “Alberta Advantage”. If you carry through with this as proposed and without significant reduction, your Government record will likely stand with the NEP as significant events which killed investment in Alberta and hurt every Albertan as a result! Sincerely, [Information Removed] |
| RRE2393 |
A very short sighted report. Makes assumptions which are completely invalid. Why do we need change? Taking money out of the oilpatch will result in less royalties, income taxes, and jobs. |
| RRE2394 |
I am NOT in favour of any kind of changes to the oil & gas royalties. Frankly I am shocked. I would expect this from the Feds... but not from our own provincial government. |
| RRE2395 |
I believe that the Royalties are a form of theft by government on individuals and businesses. Nations with higher Royalties and taxes have generally lower standards of living. Humans should be served by government whose job should be to enforce the constitution and bill of rights and defend the nation. No one should be robbed or have there possessions redistributed by anyone. Governments who steal from people and businesses usually are of nations of little merit or worth. I will be ashamed of this province and the morality if its leadership if it allows the Royalties to go up by one penny! I will consider this government to be weak and a threat to our political liberty. |
| RRE2396 |
I am the owner and founder of a manufacturing business in Edmonton [Information Removed]. My business now employs [Information Removed], with the majority of our product sold and exported to the U.S. We are being hit with both the falling U.S. dollar and the overheated labour market in Edmonton that makes it extremely difficult to find enough people to sustain our manufacturing process. I can only hope that the threat of cutting back investment issued by the large oil companies comes true when our provincial government does the right thing and accepts the royalty review recommendations in full. The oil in the ground will still be there if we take it out a bit slower and the people moving to Alberta may decide to make Alberta their home instead of coming here to make the fast buck and then leave. |
| RRE2397 |
If the recommendations of this report are implemented without exclusions or further compromises, I will consider voting Conservative for the first time. The good work done by the Royalty Review should not be squandered. [Information Removed] |
| RRE2398 |
While I truly feel the oil companies are making a huge profit, increasing Royalty payments could potentially shut down many of the scheduled projects (Alberta's boom could bust as it did in the 80's). I would prefer to see legislation to action them to put more money into environmental recovery issues instead of the bandaid situation they currently have. |
| RRE2399 |
I am writing to voice my opinion on the Royalty Review recommendations and the possible increase in royalties paid by Alberta hyrocarbon producers. Firstly, I am directly employed by the oil industry. I am not management, I work in a technical capacity evaluating newly drilled wells. I work in Calgary [Information Removed]. The last few years have been incredably busy. I alone was responsible for spending in access of a million dollars in these areas. This money was spent testing newly drilled wells. In the last several months activity has slowed. This is due to the extreme difficulty in finding ecomomically viable new reserves. Many of our new wells are marginal and we are constantly trying to find new ways of extracting more gas from what would traditionally have been abandoned or shut in wells. This is incredibly difficult and expensive. On top of the huge difficulties of trying to make these wells make money (after all, if we can't our jobs will be in jeapardy), we are doing this at a time when the baby boom generation is retiring taking all their expertise with them. It is true, Oil Companies in the last few years have made incredible profits. Most of that was from wells drilled many years ago. We, today, don't have large easy oil and gas deposits waiting to be drilled. They have already been found and are depleating. Tomorrows reserves will be difficult to find and expensive to exploit. I do not believe the people of Alberta will be served by an increase in royalties. One of the biggest economic benefits we get from our hydrocarbons is vast employment. This direct and indirect employment is truly what we need. I have a good job, I invest in my community and have roots in Alberta. I have lived and worked through oil patch busts, they are devastating and you never forget. What the executives of the oil companies are saying is true, if we increase royalties in this province I and many other middle class, hard working Albertans will pay for it. Sincerely [Information Removed] |
| RRE2400 |
Dear Mr. Stelmach and MLA's, I'm pleading with you on behalf of all Albertans that have economic ties to the Oil & Gas industry (which is all of us, directly or indirectly), not to support the Panel's flawed Royalty Review in it's current form. Instead, ask your constituents if they want to live in an Alberta where thousands of their neighbours will lose their jobs, financial security, and confidence in a Tory government which they have supported for so many years. While the allure of addional funds directed to the government, being passed on it's citizens has resulted in support for the Review, it is my feeling that if the general public knew the true facts about the impact of the Royalty increase, they would most certainly think twice before supporting it. I'm calling on you to take a stand, ensure that all the facts are presented before these recommendations are allowed to be passed. Require that independent advisors be consulted to arbitrate over the situation. Review the report by TD Bank which confirms that the Panel's figures are flawed and that their recommendations will most certainly have devastating results for our economy. Please lead your fellow MLA's to do the right thing and get all the facts, from both sides (Oil & Gas companies included) before making a decision that will impact generations of Albertans. Your Fellow Albertan, [Information Removed] |
| RRE2401 |
I think a 2% increase is acceptable. I also know that with growing demand the percentage should increase gradually in a set time frame that would not surprise investors who are investing in Alberta. However, a larger increase would correct out of control inflation and bring service costs to a more acceptable level. That would bring consumers back to living within their means and help reduce their debt load. Tough decision I'm sure. Good luck. |
| RRE2402 |
This review is long overdue. I work in the industry and have seen the profits that are being taken out of our province and our country. I almost feel that maybe Chavez in Venezuela may have done the right thing. It's depressing to see our province and country kowtowing to the demands of big business and not the people. Yea, business will howl and cry, but they'll get over it and back to work in short order. DO THE RIGHT THING FOR THE PEOPLE! |
| RRE2403 |
I believe that the Gov't of Alberta should have a firm hold and control of its natural resources, the Oil sands being its biggest resources to the Provincial and Federal economy and by regulating the access to the private oil companies and having total revenue control would be best for the Province in both short and long term outlook. |
| RRE2404 |
Get on with it! |
| RRE2405 |
Our family lives in Calgary, and we support the findings of the royalty review panel. The policy must be that the resources belong first and foremost to people of Alberta and not to the developers. I understand that the economic engine of the oil and gas industry is not possible without the investment and foresight of commercial enterprise; however, there appears to be some sort of divine entitlement given to a business that finds oil or gas in the ground. That sort of “I found it, it’s mine” attitude, is not how a province can be run. These businesses seem to forget that to find and extract what they’ve located in the ground, they use roads that are publicly funded, schools that are publicly funded, healthcare that is publicly funded and many other types of infrastructure that is publicly funded. Resources found in Albertan soil belongs to the community, and must be purchased from that community before it can be used. I don’t blame the companies for trying to get more for less. I don’t blame them for announcing that disaster will strike the industry if costs go up. That’s their job. But it’s the governments job to see that Albertans are compensated fairly for the resources they are giving up. It’s your job to see that this is done the right way for ALL the people. You have to expect that the oil and gas companies are going to do everything that they can to push the government into some “half measured step”. Our family hopes the Government of Alberta does not bend to the ear of big business and implements the recommendations of the Royalty Review Panel completely. Thank you, [Information Removed] |
| RRE2406 |
Dear Premier and Government, I have yet to meet a voter that doesn't support the Hunter royalty review report. Please rest assurred that, as far as I can tell, the large majority of Voters support those recommendations. Adjustments for Grande Prairie natural gas etc. do not take away from the well laid out recommendations in total of this report. Any company pulling out of Alberta's opportunities should be met by our active courting of Chinese or Indian investment. That should wake them up pretty fast to the unique nature of the market for our resources. They are large, near the U.S. market, and in a stable country. We're behind you 100% Mr. Premier. [Information Removed] |
| RRE2407 |
Thanks for [Expletive] over my brother's company with the new royalty increases. Yeah, I'll sure be happy with the $2 rebate you'll probably give me for my "fair share." I see how well you've managed the other money you look after for me. I'll trust an oil executive over a politician any day. |
| RRE2408 |
I am gravely concerned that we are eliminating the competitive advantage that Alberta has fostered when competing for investment on the global energy front. I am not saying an increase is not warranted but this extreme increase is just not prudent in my opinion. Alberta has long beeen percieved as a great place to do business and seen in ternationally as a low political risk area to pursue business. If you take away that, it will be inevitable that investors get spooked and look for other places to invest. I am an advocate of an increase but a small one as I believe what is proposed could devastate this province and all we have achieved to this point. Caution is warranted in this regard as the potential unforseen downside could be catastrophic. This report, if adopted as proposed, would definately change my voting behaviour. [Information Removed] |
| RRE2409 |
Hmmm, lets see, someone decided to open a Rolls Royce dealership in Calgary, theres actually enough excess cash in the jeans to justify that, now, if we just build the roads so they can drive the cars. Cart before the horse I believe. Raise them. I'm not part of the gravy train that they are enjoying, and am sick of watching the select few have a great go, while the rest of us miss the "Alberta Advantage" |
| RRE2410 |
I belive that increasing the Royalties paid to the Province would be a negative. While it would add more cash to the provincial bank account in the short term there is no doubt in my mind that thelong term impacts would be job losses and opportunity losses for Albertans and Canadians as a whole due to the inevitable decrease in investment that would result from increased royalties. |
| RRE2411 |
I work in the oil industry, and this reminds me of the NEP did back in the early 80's. How can you possibly do a review, when you don't have or include all the information. Seismic costs, land costs, and cost of operation. Service companies have already laid off some of there staff. Gas prices are low and will probably remain that way through next year. It would be a huge mistake to implement the royalty review as is. I think there is room for negotiation, but to implement the review as is, there would be massive layoffs in the industry. The goverment should take it's time in it's decision and should not be rushed. This is too big a concern for a quick decision. Companies like Encana will look elsewhere to do business. There is too much at stake here, so be careful with your decision. |
| RRE2412 |
The proposed revisions to the royalty structure in Alberta are of significant concern to Albertans. In an era of high-cost, long-term investment in energy projects, coupled with significant R&D expense, increasing the “government take” is the last thing we should be considering. In 2006, land sale ($3 billion) and royalty ($11 billion) transactions made up more than 40% of the Alberta government revenues. Add to that the taxes paid by the industry (including service companies), the income taxes paid by employees involved in the sector, and the industry re-investment towards operating and capital projects in the province ($60 billion), it’s not hard to argue that oil & gas is the driving force behind the Alberta economy. As an employee in the sector, changes to the royalty structure could significantly impact my family’s well being. Given the thriving economy, we chose to move to Calgary 18 months ago to offer our children more educational and recreational opportunity, and solidify my career. Our living expenses have doubled given the cost of housing and services, while our family’s income has been slightly reduced since this move. With an overall increase in government take, from an industry that now requires a significant number of specialized business and technology inputs to find economically feasible projects and investments in the province, the impacts could likely mimic the early 1980’s when the federal Petroleum & Gas Revenue Tax was implemented. Many people lost their jobs and homes during that time, and if this occurs again I can confidently commit that I will no longer be a resident of Alberta. The current royalty regime was a collaborative development between industry and government to encourage long-term investment in high-cost ventures (i.e. unconventional gas (CBM & tight gas), oil sands, etc.), thus offering long-term growth and prosperity for our economy. Either this collaborative approach has been lost, or its goal was to bait extensive long-term investments into our province only to rob them later. The Government needs to fully understand the impacts of proposed changes so that we do not stall investment (i.e. $60 billion in 2006) which is the real driver of our prosperity and the “Alberta Advantage.” |
| RRE2413 |
I wrote a coment on this website last week, expecting to here a comment from the Government, in particulary Ed Stelmach, as I was asked to en ter my e-mail address. Obviously no one cares about my comments. As previously stated I am not Encana or Suncor. I am the little guy that you are trying to [Expletive]. My great grandparents homesteaded in Alberta. They didn't come from India or Saskatchewan, and you don't have the courtesy to even reply. I listened to Ed Stelmach's address this evening and learned nothing. If you come from somewhere else and have nothing , why should you have a share in my oil or gas rights. |
| RRE2414 |
The royalty review was probably required to determine where Alberta stands in relation to other areas worldwide, however, comparisions should not be made with other areas which have lower operations costs, lower cost of living, lower taxation than Canada, 4 seasons to work in, etc. My belief is that short term gain will be more than offset by long term pain. There are already too many people layed off in the last 18 months due to a slow-down in drilling activity due to low gas prices. If the new royalty regime is enacted, then there will be a significant number added to that number. Loss of high paying jobs results in depressing the housing market as more people no longer meet their mortgage payment, loss of tax revenue to the Government, and eventually a change in government which the reduction in activity is felt be a larger portion of the population. A solution and test of the new royalty rate could be done by grandfathering the existing facilities and production, and applying the new rates to go forward projects, and evaluate the industry response to the new rates which will determine if they're repressive or not. In the event I loose my job over these new royalty rates, my sentiments toward this government will change dramatically. AB government already receives their "fair share" and by calling the report "Fair Share" you are targeting those citizens who obviously don't work in the petroleum industry. In conclusion, I'm not against changing the royalty rates, however they should be phased in over time against new production and the government can evaluation their impact on our petroleum sector of the economy. Keep in mind that the rest of the country is also dependent on the oil industy and it's spinoffs. Regards |
| RRE2415 |
If the proposed revisions to the royalty rates are implemented as they stand right now the compnies involved will pack up their toys and head to B.C and the U.S..They're not " Blackmailing " us, They're Just stating the facts. Implement an increase but do it gradually and don't get greedy. If this comes down in the way it is, it'll be worse than in the 80's and, I for one ,do not want to go through that again ! |
| RRE2416 |
I cannot believe that our government is doing this. Are you trying to put us into a recession again? I thought our representative were supposed to be smart. Here is what is going to happen: -Oil companies will stop investing in Alberta and go to invest in other countries. How many companies are already thinking about it? -Thousand of people are going to lose their job in the Oil Industries and many others -Other country will come and invest in our country and take over our Oil and Gas (Chinese Russia etc.). And I’m sure they will get a bargain from the government trying to get back some of the money they lost by their own stupidity. -People loosing their job will lose their houses, will stop buying all together, all industries will be affected, store, retails etc. Why is it that we are compare to other countries and specially the US? Really! Since when are we doing anything like the US? The US is certainly not a model for anything. Yes! They have to take money somewhere to fund their wars. How much money did you spend doing this report? How much spend in advertising, salary, etc. to try to get us to swallow it? If the government wants to go after and industry to get “the fair share” why don’t we go after insurance company? There’s a problem for you. I pay 4.98$ for my half liters of coffee at Starbuck, I pay 1.01$ for my liters of fuel. Now which one is easier to get? Want to do a research over that too. Maybe the government should get their fair share of the coffee industry too! I’m very unhappy with this proposal and would appreciate that MY government does not try to [Expletive] us over...again. |
| RRE2417 |
To, Premier Ed Stelmach, W Here comes my bull in a china shop observations. It would seem to me that the OIL Companies are somewhat Greedy. ( what big buisnesses are not) I could put a pretty long list here but I do not want writer's cramp and let's stay with the issue at hand. These companies invest billions of dollars in to our economy and they want grand rewards, True? In short but crude form, a Dog knows better than to bite the hand that feeds it. If these companies choose to pick up and leave Ab., it as You know will not be the 1st time, but it may be the last. Oil shortage, my butt ! If You follow these layed out tax guide lines, GOD HELP US ! , because in time, Oil will go as the way of coal and eventually the Dodo Bird. |
| RRE2418 |
The recommendations of the Panel should be put into effect without alterations, most especially in view of the Auditor General's report. Yes, this will cause a slowdown in the economic activity of the province but it is a slowdown that every municipality sorely needs. We all need breathing space. Companies involved in the oil sands will be the most affected; however, given the amount of water being used to extract this bitumen, a review is definitely warranted. People will come to realize very shortly that our most valuable asset is potable water and that pipelining water from the Athabasca to the arid lands of Southern Alberta makes much more sense than using it to produce petroleum energy resources for the United States. Most of the people with whom I have discussed this matter agree that it will take real courage by our existing provincial government to adopt the Panel's recommendations. |
| RRE2419 |
This nonrenewable should not be given to for profit international companies at discount prices. Royalties should be based on "what the market will bear". Anything less is either graft or stupidity, as opposed to financial wisdom. Use Norway as an example. |
| RRE2420 |
On a day that the price of oil reached an all time high there are press reports that suggest that Premier Stelmach feels that the industry is under seige and cannot stand the enactment of the entire royalty review. These companies were making less a few short years ago then they will make tomorrow if ALL of the rcommendations are enacted yet their gloom and doom songs have apparently found a recptive audience in the Premier's office. You'll lose my vote, and my families' votes, forever. |
| RRE2421 |
We deserve more royalties for our oil. The oil belongs to the citizens of Alberta and their children, not to the current government. The oil grows more valuable every year. We should increase the royalties to maximize our long term benefits, not our short-term profits. |
| RRE2422 |
Mr. Stelmach, Your revised royalty plan is ill conceived and comes at a horrible time. This action will precipitate billions of dollars in cutbacks that will have a horrible impact on our economy. If you must revisit the royalty situation, please include the industry. 2 billion spent by industry creates 10 billion in spinoff. You have got everyone talking, unfortunately you have created a huge distrust in your government and are likened to the Trudeau Liberals with their NEP. Since the population of Alberta did not elect you Premier why not run on this platform and see if you get a mandate. My guess is that your own party is turning against you already. If not, maybe it is time for a real conservative party in Alberta. Yours truly, [Information Removed] |
| RRE2423 |
I am worried that a decrease in Oil industry because of a increase in royalty will ripple through the whole economie and one by product will be a drastic decrease in property values that have grown in last few years this would put plenty of people on the street and a housing market crash. I think the goverment takes plenty in the way of income taxes on the wages of oil patch workers and the 20% increase in royalty's will be offset in a 20% reduction in monies earned by patch workers income taxes. please be careful yes heavy oil in strong but here in Grande Prairie we are in a serious slowdown and this could kill the economie here for years |
| RRE2424 |
Royalties should be tied percentage wise to income. |
| RRE2425 |
ARRP recommendations = lost jobs, lost consumer spending, falling home prices, vanishing investment, and LOWER ROYALTY REVENUES FOR GOVERNMENT. That's right. The $1.9 billion is a FALLACY!!! |
| RRE2426 |
These are our resourses that are being sold off at firesale royalty rates. Keep more of the returns from the depletion of our future resourses. Use the money to reduce the rising cost of living in this oil rich province. Put some money into the school systems, training for our workforce ( that is if young people choose to join the force while suffering under unfair labour relations laws}. If raising the rate causes a slowdown,let it be. And keep the unskilled,unsafe foriegn workers at home. Also the country may need more dollars in hand to help the last wave of Chinese worker apparently still in Vancouver seeking refugee status. Bring in some more to fill their jobs,and their dead working partners,so that the fire sale can continue at a faster rate? These companies are raping Alberta's system,doing everything in the book to hide behind the unfair Alberta Labour Laws,so as to reap profit at the expense of fair wages for their workers and a fair return to the Alberta public. Don't listen to big business weeping, Get a fair deal for Albertans! |
| RRE2427 |
Thank you for this opportunity to express my views on 'Our Fair Share.' I have given Alberta three sons who work in this Province and are raising their families here; and I want them, and their children, to enjoy a continued happy lifestyle in Alberta. A financially sound Province where they can work, play and be healthy adults. Of course I am for increasing our share - we need to keep pace with Texas, and not fall behind because of dated legislation. Full Speed Ahead, please!!!!!!!!!!!!!!!!!! Sincerely, [Information Removed] |
| RRE2428 |
I was born and raised in rural Alberta on a cattle farm. I truely love the province and would not consider moving anywhere else. I am currently employed with a small private oil and gas company. I just wanted to give a point of view from an average working Albertan. I feel that the average Albertan would be affected in a negative way if the RRP recommendations were brought in. If the Alberta economy slows down the average Albertan has the chance of losing his or her job. Lets face it everyone in Alberta is some how or some way related to oil and gas industry. If there was no oil and gas here there would be no people here so no economy. I feel that all Albertan are going to benefit more form a booming economy then they are going to benefit from the province taking more royalityes. How is the extra 2 billion dollars going to affect the average Albertan? It is not. No one knows what is going to happen if the royalites are increased but you have to ask yourself one question. Is it wortth the risk for the average voting Albertan? The answer is no. |
| RRE2429 |
i find it sad the the continuous greed of the alberta goverment could dictate the end of our streets paved with gold economic boom. without the investments to continue oil and gas production, it is possible the trickle down affect throughout our entire provincial economy could be devistating. i sincerely hope the goverment of alberta has a counter option to sustain our economic growth once the investors are gone. and by the way, i am a native albertan and have NEVER considered myself an owner of our natural resources. as anyone with a pair of eye glasses can read, my land title for my home excludes mineral rights. sincerely, [Information Removed] |
| RRE2430 |
I'm trying to get an understanding of how the proposed royalty would work. The current price environment for oil is in excess of $400 per m3 therefore the price component of an oil royalty is set at 35%. If a well produces 1 m3 per day, the quantity component would be -20% for a net royaly of 15%. Is this correct? The average well in Alberta @ 18 barrels per day is 2.9 m3 per day. The proposed royalty would be work out to about 30%. I don't believe the royalty panels assertion that 57% of oil wells would be subject to lower royalties under the proposed scheme. If their assertion hinges on $50 per barrel oil, that price hasn't been seen in over a year. Have I misinterpreted something and are my calculations correct? Thankyou |
| RRE2431 |
To Whom It May Concern: Your proposed royalty increase is an action by you to gather more money at a time when all signs are showing a slow down in the energy sector in Alberta. In today's Regina's Leader Post it says that government bookkeepping incompetence as cost the government over 1.5 billion dollars in lost revenue. I would suggest tat rather then taking such a draconian approach the government should do a better job in long and short term planning as to how to spend the income they now have. Sound fiscal planning and spending will eliminate the need to try and get more money from a sector that is the backbone of the province. Thank You |
| RRE2432 |
I will not vote for this party ever again if this is put through as it reads today! My entire business is service compnay that relies on Deep Gas in the [Information Removed]. |
| RRE2433 |
Thank you for the opportunity to provide feedback on this important issue. I cannot appreciate the difficult position that the elected officials of this province have now found themselves in. The pressure associated with making simple financial decisions for oneself can be quite daunting at times. I can only imagine the stress associated with making a monumental economic decision that could affect miilions of citizens. However, I do ask that the members of the legislative assembly of Alberta steel themselves as they enter into their most serious deliberations concerning the issue of resource royalties. As the child of a former oil industry worker, I must say that I deeply appreciate the openness of the Alberta Government and the willingness of the petroleum industry to facilitate employment and resource development to the benefit of many. The economic benefits of this sector cannot, and should not, be underestimated. Yet, these same economic benefits appear to have been curtailed by a royalty system that has not changed with the times. Other jurisdictions in the world have far more lucrative royalty strategies, which have injected much needed capital into the public coffers, and have not negatively impacted exploration and development. The current comments made by representatives of the petroleum industry (and some MLAs) comparing any suggestion of royalty increases to the conditions in Venezuela are disingenuous and inflamatory. At any moment, I do expect the ugly spectre of the National Energy Program to raise its loathsome head through various media and editorial. I am asking that the elected officials of this province keep their heads above such rhetoric and embrace the facts as presented. I would encourage the members of the legislative assembly of the province of Alberta to increase resource royalties to reflect the current development situation. The global need for oil is tremendous and every estimation predicts that this situation will not change anytime soon. With the desperate need of urban municipalities for infrastructure funding, provincial school boards for education funding, and health regions for care funding, the provincial cabinet members would demonstrate great wisdom and forethought in increasing royalty rates as per the Royalty Review Panel report. Once again, thank you for this opportunity to participate in this process. [Information Removed] |
| RRE2434 |
Royalties should be increased. Any talk of slowdown in the oil sands is just scare mongering. Simply put, there is no other region in the world with so much reserves. Companies will have no choice but to invest there if they still want to be in the game. These resources belong to Albertans and they have been shortchanged for a long time. It is time the Alberta Government showed some courage and take the bull by its horns. Increase the royalties without any delay. |
| RRE2435 |
Finaly Alberta Gov is taking bold steps, tand raising royalty .t |
| RRE2436 |
We are headed into difficult times. GAS drives this province NOT OIL. The rural communities will be hit harder than most because of their reliance on few opportunities. Oil co's have done a poor job at making people aware of how the business is conducted - I even find my own family misunderstands the economic dynamic that operates. So you plan to hit the big guys with the deep pockets. Watch them ship out their cash to Angola or Venezeula after all the panel seems to belive these places are like us???? Watch your farming buddies wilt Ed. No acivity, no cash, no royalty. I voted conservative for a reason. This is a liberal idea! It is also pushed by a life -long forestry "consultant" that is bigger (ego) than the report itself. I have read the report - It is highly opinionated, like my response here. The difference is that I have been in the O& G business 30 yrs in various capacities - Forestry management wasn't one of them. Get the personal mission out of the fair share report. |
| RRE2437 |
I believe the review was fair balanced, and accurate. The posturing presented by the oil companies is only natural due to their reluctance to paying more money. I wish to see the reccomendations of the report implemented fully. However, a phase in period would be acceptable. |
| RRE2438 |
I believe the review is long overdue! Royalties should be adjusted and reflect a percentage closer to the rest of the world (ie.: Norway). We should take a page out of Newfoundland's Premier Danny Williams book who stood up to the oil companies on behalf of his provice and its people. Oil and gas are non-renewable resources and once they're gone, no oil company will contribute a penny to Alberta. I hope Premier Stelmach will stand up for what's good for Alberta and not for what's good for the oil & gas companies. There is no way these companies willl pull out or slow down. Even if some did, there are enough waiting in the wings to pick up the "slack". |
| RRE2439 |
I sincerely hope Premier Stelmach implements the entire recommendations in the Royalty Review report. If he does, I predict he will be re-elected with a large majority and go on to be premier for a long time. |
| RRE2440 |
Mr. Stelmach I would like to share my concerns about the recent Royalty Review Report. I have worked in the Oil & Gas Industry for the past 14 years and now support a family of 5, this industry has been fairly stable for the entirety of my career and with this new tax structure I am affraid that this is all about to change. I can only hope that the Government has the foresight to see that working with the Oil companies has much more benefit than bullying them into a whole new set of rules (some of which will break contracts that are already in place, but that's another story) Please do not force another National Energy Policy type of taxation upon this industry. My family and many others depend upon this industry for out livelyhoods |
| RRE2441 |
The government of Alberta must show resolve and fully implement Our Fair Share Royalty Review Report. It and the Auditor Generals report are very clear. The Hon Ed Stelmach government musy do this. It is also high time the government laid the blame for not doing this on R Klein who had the province on "Auto Pilot" for more than thrre years of lost revenues to Albertans. Adopt and imlement the reoprt as a whole as it was intended, Sincerely [Information Removed] |
| RRE2442 |
For all the Albertans who want higher Royalties are simply greedy pigs/We have the best province in Canada and everybody is working flat out and making money in the province of Alberta. Now if the Greedy Government takes more Royalties how many Albertans will loose there jobs and homes. So all you greedy politians better thing twice before you raise royalties for government coffer. The Heritage Fund is a joke anyways as the money will never go to the people anyways. Thankyou |
| RRE2443 |
My impression of the review is that it is quite conservative leaving room for substantial profits by industry . The comparisons with other jurisdictions all show it being less not more at the ned of the day . This ignores the primary Alberta advantages . We have a stable democratic government ; english based with no record of war or natural disasters to destroy or shut down operations. In any other business this would warrant a premium price for stability and location to the primary customers . In short the risk is small . Albertans cannot be afraid of reduced investment when we are presently operating way above our sustainable capacities . Unless there is miracle invention around the corner the commodity will not go out of fashion . Reaping benefits from our resources over a longer span is not a bad thing . Only those making incredible profits want to expedite the liquidation in case we wake up to the poor management of our natural non-renewable resources. As the Premiere indicated take a deep breath and get what we need for our future Albertans . Don't water down the recommendations and even consider more intense scrutiny of the values that should be returned. |
| RRE2444 |
I think alberta goverment should leave as is. The oil patch is slow right now. This will make cut backs a lot worse and put even more people out of work. For what people have gained over the last 5 years they could lose everything to the banks. The goverment end up paying out for welfare. Thanks |
| RRE2445 |
It's about time the oil companies paid there fair share. Most oil companies are owned by NON Canadian's. Why are we giving them the breaks. Let's keep the money here where we can help out out own people. It's sickening to see how much these oil executives get paid. If proper royalty payments will break the oil company then maybe the executive will have to take a paycut. Put the money back into the roads, and hospitals that can't take anymore oilfield growth. |
| RRE2446 |
I am a resident of Strathmore and strong supporter of the Conservative Party. The issues raised buy the Royalty Review Panel is certainly top of mind. There has been a significant amount of discussion on the topic from the oil companies and response to those veiled innuendo's. I am worried about the potential impact to the Alberta economy and to the Residents of the Province, if a radical increase in royalty fees is initiated. In thinking this through, I do have a line of sight proposal for consideration. 1) Introduce a stepped program to increase royalties by 1% per year, until the level is equal to a proper ratio comparative to other regions in the world. 2) Introduce a credit incentive program for the oil and gas companies if they choose to invest in Alberta communities. For every dollar that they spend directly on local infrastructure, it becomes a credit against the royalty amount to be collected. (Example - A company builds a swimming pool for the community, and arena for the community, a road for the use of members of the community. The full expenditure can claimed in that year, or if amortized, the prorated credit can be applied up to five years 3) Extend the credit incentive program to include investment in hospitals, health care, education and infrastructure within the Province Please review this suggestion, and if in your opinion it has merit, please table it for discussion.. I am not involved within the oil and gas industry, but am very involved in the Province of Alberta. Please drop a quick confirmation to confirm receipt of this email Sincerely [Information Removed] |
| RRE2447 |
What does the government plan to do with another 2 billion dollars? their only plans seem to be to spend money, so the more they get, the more they spend. Much of the spending is on non essential items and catering to special interest groups that, were there not billions of dollars being spent, would have to survive on their own. Until the government is prepared to return most of the extra royalties to the people of alberta, they should not antagonize the industry, and they should leave the royalties alone. the government can\t use the money it has wisely, so why collect more? |
| RRE2448 |
I am an employee of a service company in the oil industry in Northern Alberta. It is of great concern to me, my family, co-workers and others how the matter of the Royalty Review Report is handled by the Alberta Government. It could be very devastating to us all if the industry takes a major hit such as this. It must be considered, for the sake of ALL Albertans, how far this could set our province back (does the 80's ring a bell?) if a 20% increase in royalties is implemented. We actually fear for our jobs, our livelihoods - what will we do if the oil industry takes a major fall? Will we lose our jobs, our homes, will our families suffer? I have a teenage daughter in college - will I be able to support her if I lose my job? These are all valid concerns that we, working Albertans, have regarding the decision that our Government is going to make - please consider the long-term effects this could have on all of us. Thank you for your time. |
| RRE2449 |
I am very disappointed in the Alberta Governments proposed Royalty changes in the energy sector. There is no doubt tha if this chnge goes through, thousands of people will eventually be without jobs. Alberta's economy will falter as companies take their business elsewhere where such extreme royalty and tax laws do not exist. I am fearful for my job if this proposed change goes through, as are many of my collegues in this industry. I don't think I am alone when I forsee protests in the streets of Edmonton and Calgary by energy workers. Even though I am not old enough to remember the crisis of the National Energy Program, I studied it and this seems so oddly reminiscent of that disaster. Does the government not learn from its past mistakes? Obviously not. I really hope it is not too late and we can throw out this proposal before it is brought into action. People will end up on the streets and a recession in this province will be iminnent. All industry in the province is affected by the energy industry and the effects will trickle down into every community and industry in this province. God help us all if we don't revoke this idiotic proposal by OUR supposed energy minister. More like self sabotage minister. Ridiculous. |
| RRE2450 |
BRING BACK RALPH!!! LONG LIVE THE KING!!! Get rid of Stelmach. |
| RRE2451 |
I have been following the ongoing debate about the Royalty review in the papers and on the news and I am very concerned about what I am reading and seeing. Through out the discussion I keep hearing the comment that with the increase in royalties we will remain competitive with the rest of the world. My only question is why would we want to be merely competitive why not try to be better then anywhere else what is wrong with that? When a company is deciding to invest in oil and gas anywhere in the world why make the decision difficult for them we should be striving to be the most lucrative place to invest that I think is in the best interests of all Albertans not some short term increase in royalty returns that eventually scares away investment. My other concern is in what I do not hear being discussed. Unless I am mistaken the Alberta government’s largest source of revenue is income tax not oil and gas royalty payments. It strikes me as a bit shortsighted to increase the lesser portion of the revenue stream while threatening the larger portion of it. Taken as a stand alone issue I do not think that this Royalty review would as big of an issue but in combination with the current labour shortages, the First Nations land claims, and the ongoing threat of carbon sanctions I think we stand the very real chance of undermining the investment environment we have worked so hard to build in this province. In closing, while I think we have already done a little damage to our reputation as a safe reliable area of investment I do not think the damage is permanent. What is needed now is strong decisive action that says the investment community, Alberta is the most stable reliable and profibable place to invest your money. That is the Alberta Advantage. |
| RRE2452 |
I feel compelled to respond to Alberta’s Royalty Review report that has the oil/gas community’s ear. One real problem with the report is the facts are wrong, way wrong. The consequences on city’s like G.P., Red Deer, Camrose could be catastrophic if the report is adopted as presented. The real concern here is if gas is subject to an increased royalty hike gas drilling will be slowed to a crawl. Tens of thousands of jobs will be lost, and our province will be thrown into a major recession. Rigs will be going into Saskatchewan or worse yet into the U.S. Many smaller oil and gas companies will cease to exist. Their stock since the report was sent out has dropped 25%. This is not to mention they were already at 52 week lows, due to commodity price of gas. In 1998 our industry went into a similar tailspin however it was strictly commodity driven. This could be far worse. |
| RRE2453 |
One can expect the oil companies to do a lot of sabre rattling, but hold the course! We're prepared to take a financial hit to gain some stability in our lives. [Information Removed] |
| RRE2454 |
I think there is a balance that can be achieved. In other words, don't side with the oilpatch 100% (i.e no hike in the royalties) and also don't side 100% with the study (and hike the royalties to the degree called for). Albertans are entitled to fair compensation, however, if we hike royalties to the degree indicated in the report, and drilling etc. does dry up, all Albertans will face a much bigger issue - job losses in large quantity. Unfortunately, this province is still not indistry diverse enough to withstand such a negative action. |
| RRE2455 |
Way to go Ed. Don't worry, the oil company will stay & come back as long as the profit is still there. |
| RRE2456 |
I am very concerned about the recent messages that have been coming out of the legislative building. Not only do we as Albertans have an outdated royalty system, which doesn't reflect the true market value of our non renewable natural resources, the AG report is even more mind boggling. Then on top of this oil companies are complain about the high cost of doing business in Alberta and that this is the main reason royalties can not and should not go up. This argument is ridiculous as it is these large companies that have driven the cost of doing business in our home up way beyond the means of average Albertans. Premier Stelmach, I voted for you during the PC leadership convention because I thought you would be transparent with us as Albertans, and would make decisive positive decision without being pushed around by the business or Calgary lobby. I am extremely disappointed by the recent conduct of the government in the past 10 months. Especially your own comments at a business lunch in Calgary where you said ""will not trounce existing agreements" [on royalties]. Have the backbone to stand up to these companies and lets slow down the economic growth in Alberta to manageable mean, because as many people I talk to feel that we are on the path toward unsustainable economic growth. This is your responsibility and I hope to hear a change of attitude from you and your caucus colleges. |
| RRE2457 |
Caution! Make sure you keep the economy going and do not do what is popular but what is right. Remember Klein did the same in ’93 and came out as a winner. If this government destroys the economy, it will go down as the biggest looser in history of Alberta! People will blame the government if things turn out sour and the consequence will be drastic. Sincerely, [Information Removed] |
| RRE2458 |
I think that the royalties should be increaed 20% to reflect appropriate royalty levels. I do not agree with further discussion or analysis into the numbers - the whole point of the inquiry was to discuss and analyze the situation. They have accomplished this and their findings should be respected. This is an important time for Alberta's relationship with big energy corporations. Will the government stand up for what is an appropriate royalty payment for the use of natural resources that belong to Albertans, or will big oil push around Alberta like they do in many other places in the world. There is always a demand for oil and if these multi-billion dollar companies like Exxon want to pull out of Alberta, some one else will gladly take their place. |
| RRE2459 |
If the Alberta Government takes another $2 billion in royalties from the oil compampanies, then the oil companies will have $2 billion less to invest in Alberta. This will likely mean fewer jobs and one of those jobs may mean my own. I may be laid off just like the many employees in the oil and gas service industry who have recently been laid off already. |
| RRE2460 |
Alberta's economy was doing very well, but after a very long spring break up and a wet summer, any one working in the industry knows how volatile it can be. I think it would be detrimental to growth and prosperity for Alberta if the government is too quick implementing any changes at this time. |
| RRE2461 |
With regards to conventional oil and gas,Alberta is already one of the most highest cost drilling and completion cost environments in the world. The propose royalties will only result in exploration capital being channelled to other countries. Pertaining to the oilsands, a lot of capital has been spent and is in the planning stages. It is unfair to change the rules in the middle of the game. However that being said, there could be a better mechanism, whereby the royalies are index to oil prices. As the oil price increase the royalies increase. Just be prepared to share the down in a $25 oil environment. If the propose changes are implemented, you will have put the final nail in the Alberta Advantage. I will tear up my Conservative Membership, and never vote again for the Conservatives. |
| RRE2462 |
If such Royalty was implemented, it would cripple the oil and gas industry. 1 out of every 6 people is connected to the oil and gas industry. Why would the gov't bite the hand that feeds you. Do we not get taxed enough? Taxes where put in place to help fund a war. This war is now over, but taxes, royalites etc insist on going up. Remeber the NEP. That ruined the Oil and gas industry and it was years before we recovered. The recession in the USA is going to effect us in some way shape or form. Why add to this. I hope when I declared my vote for Ed, it was not a big mistake. I am a single mother of 3 daughters. I work very hard within my Oil and Gas company. I need this job to support my children, watch them grow and then send them to University or College, so they may contribute to society. Why put all of us and our families at risk. Sincerely, Janet Harvey |
| RRE2463 |
Re: Royalty Review Report I am very worried about the panel's recommendation recently put out. I understand we can 'charge more' than other countries given our proximity to the US and 'political balance' (not so sure now? trusts and now this). However, third world countries, well actually, almost ANY other country has a much bigger and CHEAPER labour pool than Alberta. We are stretched very thin as it is. Gas is near the lows as it is. I don't necessarily disagree we need to adjust to a point, but the drastic swing you are proposing simply scares me. And it doesn't give outside investors confidence, already after they're getting over the Trust changes. We have a great province and a good thing going, lets not look back in 5 years and say "Wow, Alberta was really humming along before that, now they're the classic business-school case of what NOT TO DO". Government should stay as far away as they can from business, please don't mess this up too. My wife and I live in Calgary and planned to for a long time. We hope if this goes through this isn't the beginning of the end. [Information Removed] |
| RRE2464 |
If it ain't broke, don't fix it. One good turn deserves another. |
| RRE2465 |
I would very much like to see that money still being invested and growing as much each year as it can. I would also like to see some of the money used for the shools in our province. The ones that are older and in need of some serious renovations. One priority that we should really consider are our schools in this province. We should be able to take some of the Heritage money and fix some of them up. We need those schools for our future. Thank you [Information Removed] - Red Deer |
| RRE2466 |
PLEASE... take into consideration that by jeopradizing our oil industry in this province you will harm every single Albertan for years to come. The report wants to take money out of the private sector and filter it into the government coffers, I highly doubt that the government will be able to sustain our economy at the level it is at. Filtering this money out of industry and into the public sector is absolutely the wrong thing to do. Our province is in very sound economic health, and the oil companies not only serve our communities through various charities and philanthropic endeavors, they employ a very large section of our workforce, and the trickle down effect of an economic crash in this province will be devastating. Does anyone remember the early 1980's? Our family lost their home... Mr. Stelmach... this is political suicide, the farmers are not where the money is at, the oil patch is. If you want happy healthy farmers, then support your primary industry, and the money will continue to flow freely throughout our entire province. Laissez-Faire... That is how Alberta was built, and that is why we are the strongest province in the nation. The slowdown in our oil patch is already starting, my husband has been out of work for 6 months, and has had to seek employment overseas, along with FIVE of our friends... be very careful, this trend may not be reversible. |
| RRE2467 |
You have got yourself and Albertans in a helluva mess. The tone and substance of the report is that the Oil Industry has been ripping off the people of Alberta complements of the Gov't of Alberta. The majority of the people of Alberta believe this now and as the US Senators told the oil industry execs prior to the energy crises, "If I am not seen as trying to hurt the oil industry I won't be re-elected." The fact is the report misses the point that an attractive investment climate brings in considerable more moneys to Alberta that a few percentage points of royalty can ever bring in. Also, where was the advice to the government that changing the tax regime negatively to the investor always leads to reduced investor confidence? As an air service provider, my business depends on high oil sands investment activity - I have invested my lifetime earnings into my business. A downturn could bankrupt me. Please don't turn me into an NDP looking for a handout. |
| RRE2468 |
I am extremely OPPOSED to the recent proposal to change Alberta's royalty structure. It is very clear that Stelmach, as well as the average Alberta citizen, has no clue as to the negative consequences that will prevail if this review is accepted. I believe that the government is banking on the general naivety of the average Albertan citizen by asking them if they would like more money in their pockets. Of course the anser will be yes, but that is only becaue they do not clearly understand the impact and that "more" will actually be less when all is said and done. The average Albertan, and obviously our government as well, do not understand the cost structure (among other things) of the oil industry and are not in a position to comment. All the people want is the government to put more money in their pockets. These are people who trust our government (and probably shouldn't) and believe their governement when they say it will be better for Albertans. They do not understand that this will clearly NOT be the case because the government has done a good job of hiding the negative effects and incompleteness of this review. Shame on you Mr. Stelmach!! You likely won't be around to pick up the pieces when they start to fall. It is your job to listen to ALL Albertans, and that would also include the Oil and Gas Industry. Stop thinking of the Industry's negative response as "bully" tactics. This is your way of ignoring the valid points that they have to say. They are not trying to bully you, they are trying to educate you before your government makes yet another mistake that takes another 2 billion out of our pockets. I urge you to take a second look at this!! You are playing with the economy, please don't [Expletive] it up anymore than Harper and his sidekick, Flaherty did. |
| RRE2469 |
I have been employed in the oil patch for 26 years. I have been through the up and down cylces based of of supply and demand. What I see here is a government shooting itself in the foot. |
| RRE2470 |
Hello: Most people have been expecting the Oil and Natural Gas Corporations to eventually threaten us. The Media have been saying the scare tactic was to be expected. I would hope the Premier does'nt blink. They had their chance to present their side at the hearings and were even given a second chance after the fact, which in the eyes of many was unfair and unbalanced. Anything short of the Review Panels recomendations will project the image of a Premier who lacks leadership qualities. Recent surveys are overwhelmingly on the Premiers side .....if he proceeds with the Panels Recomendations. What could be more Politicaly Expedient ? We all know the Oil Companies would do anything for oil. Please encourage our Premier to do the right thing, for the province and himself. Thank You [Information Removed] Calgary |
| RRE2471 |
[Information Removed] are you thinking. If your goal is to take a red hot economy and flush it down the toilet you are on the right track with your new policies. I am truely disappointed. |
| RRE2472 |
I support the idea to increare the royalties. If the oil companies want to move to other places to explore oil. Let them. The resource will not go away |
| RRE2473 |
I agree that the Oil Sands/Heavy Oil royalty regimes are outdated and need to be brought into the new paradigm of $70/bbl oil. I also agree that the administration is a nightmare that needs to be simplified. However, the increase in royalties to the conventional oil and gas explorers will have an immediate and wide-reaching impact on Albertans that I do not think is reflected in the report. It will not be "business as usual" with the proposed regime, drilling and land sale activity will be cut back drastically from it's already reduced levels. Investment Capital is the most mobile portion of the business equation in oil/gas exploration. If one province/country has more attractive terms than others (higher ROR and lower risks), then the capital moves there and leaves the less attractive regime. We need to have better full cycle economic comparisons of conventional oil and gas exploration with other regimes (didn't see Sask or BC?) including an analysis of other critical factors such as capital costs, reserve size, productivity and overall economics. Just saying we aren't getting the same percentage doesn't spell out the full impact. If royalties are raised to the levels proposed for conventional oil/gas, it will greatly reduce the exploraion capital spent in this province on that sector (the exploration wells target the "higher" productivity wells that are proposed to have the greatest royalty increase). That will have an effect on government revenues and, more importantly, every community that has businesses supported by oil & gas industry spending (everything from hotels & restaurants to backhoes and construction workers). Be very careful to understand the financial (and subsequently political) implications of increasing royalties. The most active natural gas drilling in North America right now is for "tight gas" in the Rocky Mountain region of the US. Their costs to drill are approximately 30-40% less than in Alberta (they don't have an Oil Sands industry competing for labor and equipment) and their recoverable reserves are higher per well due to the fact their basin is less mature in development. Pushing our economics further from those that are already better than ours will definitely move capital to BC, Sask and south of the border. Response is only necessary if you require any clarification. Thank-you [Information Removed] |
| RRE2474 |
The review of royaltys recomendations should be immediatly implemented by all government departments. Consulting with the "industry " is not necessary. The royalty increase is very fair and considered very moderate when compared to other jurisdictions. [Information Removed] |
| RRE2475 |
I think the Royalty review is the oil and gas industry. |
| RRE2476 |
Implement the Report - or resign and refund to the tax payer the money that has been wasted on this entire exercise. |
| RRE2477 |
As a resident of Alberta for over 30 years, we went through the Federal NEP Trudeau senario and do not wish to revisit those depressant times. Everything is hinged on the oil industry, if layoffs occur then unemployment will cost us more. We now have a great tax base, lets keep on trucking. If we do need more Royalties then lets do it slowly 1-3 % per year until we reach our cap.New companies, new explorations, well testing-give the companies a break 1-3 years until they start to make money- don't tax them on a dry hole. I think we will get more from the oil companies if we create a tax deductable refund to them based upon them donating money to hospitals, cancer clinics, schools, and other capital cost projects as an incentive program that would be spelled out to them in lieu of Royalty increase, that if they do not donate the money back then the hammer is to increase Royalty fees. I also think alot of investors,pensioners etc. would be hurt by a heavy Royalty increase having a domino effect right down to the disadvantaged citizens. |
| RRE2478 |
The recomendations supplied by the royalty review panel are outrageous. This province was decimated by the NEP. I survived by going to Saskatchewan to work. It now seems the Alberta government wants to rape the industry and send me to work in Sask. again. Oil and Gas Royalties are not rent. They are payment for a resource after payment for exploration rights and millions of dollars of initial investment. If I rented you my farm land I would recieve 1 third of the crop in land rental. Your Up front cost would be the seed etc. You would not pay for the right to have a look to see if there was crop land there. Implementation of this report in its entirety would make us no better than any third world tinpot dictatorship. I was born in Alberta and worked here most of my career. This current report is the most greed driven money grab I have wittnessed short of crap out of Ottawa in 53 years. |
| RRE2479 |
All natural resources should be considered as a trust fund for all Albertans and the government has done a shameful job of managing and accounting for the non-renewable resource of oil and gas. Please accept the recommendations of the Royalty Review and please do not listen to the fear mongering of the big oil companies who have had it their way for far too long. We actually need things to slow down in this province. We especially need faith that our government is capable of managing things properly and the auditor general's report clearly shows the opposite has been happening. Please get it right! |
| RRE2480 |
Mr Premier, I am concerned that if the Stelmach government adopts the Alberta Royalty Review Panel's recommendations it will no longer be economically viable for oil and gas companies to do business in the heavy oil area serviced by St. Paul residents. The conventional heavy oil wells will be the first to be shut in because of the high cost to produce them. This will cost us, especially in St. Paul because the Lakeland area will be affected the most by a royalty increase. Within a very short period of time, we will see bankruptcies, mortgage foreclosures and job losses. Will the royalty increase be worth the consequences if you've lost your retirement savings, your family member, friend or neighbor has lost their job and your house in St. Paul is now worth half the value. I am extremely concerned for my family and my future. I am also concerned about those I work with: contractors, friends, neighbors, the community, and every other Albertan if the Panel's recommendations are adopted. The damage has already been done for 2008. The uncertainty caused by the Stelmach government has occured at the worst possible time, while companies are finalizing their winter drilling programs. My largest client (one of the largest producers in the province) just anounced today to its employees and contractors that it will be rolling back just about every department by 60% for 2008. Hopefully next year is just a bump in the road and not the beginning of the end. Please get it right. Don't accept the Panel's recommendations. If changes are needed to the royalty structure then further consultation is required to strike the right balance. [Information Removed] |
| RRE2481 |
Go for 10%. We should be on par with the U.S.. |
| RRE2482 |
While royalty review is a good step and means a lot for Alberta and us (Albertans), both oil patch and government should negotiate without killing the current economic vibe. If we Albertans could wait so many years, why not negotiate with the involved party (i.e., oil industryt) for a few weeks? I strongly feel that unneccessary rush without negotiation may raise questions in the years to come. |
| RRE2483 |
I believe very strongly that extensive royalties need to be charged of oil companies so that civil society can maintain the kind of social and physical infrastructure that are required to accompany economic development., and provide for a future that extends far beyond resource exploitation. Do not be swayed by corporate smoke screen scare tactics. The oil has enormous worth, and those who have the will to develop it responsibly, and contribute to a wholesome society at the same time will not be scared away. |
| RRE2484 |
Dear Sir/Madam; Through inaction of the government, we already see a decline in engineering and construction work. Companies are citing the royalty review as reason. Our small company is trying to keep the employees busy, but by December lay-offs are iminent. We are waiting for wise leadership, please provide that ASAP. |
| RRE2485 |
The Government of Alberta, as the representative of the citizens of the Province, has a duty to ensure that provincial natural resources are used to the benefit and advantage of the citizenry. Clearly, this review is long overdue and the Government must act upon it by adopting the panel's recommendations in full. Even after adopting all the panel's recommendations, Alberta oil is a bargain and development will continue. Threats from the industry must not be heeded before the will of the electorate. |
| RRE2486 |
A serious look needs to be taken at the basic assumptions within the report. When the independant investment bankers are saying that there are serious errors in it then someone needs to take notice. Also, a total look at all levels of fees needs to be included such as fees and rentals paid for surface and mineral leases, property taxes, as well as how much is paid in freehold royalties. In addition, there is a tremendous misunderstanding as to what is done with oil company profits. They do not stay with the company but are reinvested in new and current projects creating new jobs and growing the economy which results in higher revenue for the government in the form of income taxes. In addition, Albertans benefit with the weath of high paying jobs to choose from as well as from the level of support that oil companies provide in the communities in which they operate. Do we really want the investment to shift to BC, SK and the US? I don't think so. It will impact Edmonton and rural Alberta far more than it will impact Calgary. [Information Removed] |
| RRE2487 |
Stelmach, Don't be a spineless fool- adopt all royalty report recommendations in their entirety. BTW, you may want to reconsider the lack of funding provided to Edmonton. Who the hell could of thought up such a ludicrous system???? I don't know why I'm wasting my time, you'll be flipping burgers after the next election. |
| RRE2488 |
We were delighted with the Royalty Review Panel's final report and we feel that the report should be adopted in it's entirety. The report is unbiased, accurate and well thought out. Anything less than full adoption of the report would be cheating the rightful owners of these nonrenewable resources. Why would we settle for anything less when even small countries like Norway have a much fairer royalty system as do even states like Texas to name a few who receive more equitable shares than we do. Any scare mongering by those with a opposing views is just repugnant and self serving. Please do the right thing and adopt the report as written by the unbiased and competent group that wrote it. Thank you. [Information Removed] . |
| RRE2489 |
Mr. Premier: I wish to applaud your action on commissioning the Royalty Review, and hope that you follow through on many of it's recommendations, for far too long, big oil has gotten a free ride in Alberta. Two billion dollars, the amount being thrown around could be put to use today or saved for future generations, through the Heritage Fund. This is not only our money Mr. Premier, this is the money of our future. |
| RRE2490 |
The recommended royalty changes should not be implemented as the royalty review panel suggests. The strong economic stability within Alberta will be jeprodized. I believe that the loss of jobs, and loss of money back into the economy will completely diminish any gains achieved by increasing the panels current plan. *I'm not saying don't make changes, or increases to the royalties, but do so wisely and take into consideration independent reports (i.e. [Information Removed]Assessment). |
| RRE2491 |
I suggest that the Government of Alberta take a very careful review of the implications of implementing the recommendations of the RRP. My personal view is that the "ripple effect" of significantly reduced energy investment in this province will dramatically affect the number of jobs and small business such as my own. I suggest that the Government of Alberta look at means to introduce these changes gradually and to listen to the people who will be affected by these recommendations not just those who make them. |
| RRE2492 |
I have not heard any mention about the other costs that producers face, but they go directly to the government in some way. Certain wells have to be cored when drilling as required by the EUB, many wells need pressure surveys done for the EUB, water gas and oil samples must be done and submitted to the EUB and the list goes on. I also wonder where the money would go if royalties were increased. I believe we are better off with jobs for almost everyone and having the money spin off this way rather than increase royalties and put more people on employment insurance. Thank you. |
| RRE2493 |
Unfortunately, the government's decision to appoint a panel to review the oil & gas royalty regime in Alberta, who have no direct energy experience, are using dated and flawed information and have a pro-conceived bias towards the industry, has resulted in a recommendation that, if implemented, will have tragic consequences for the industry that is the life-blood of the Alberta economy. If the intention of the recommendation is to add additonal royalty revenues into the coffers of Alberta treasury, they will fail miserably because there will be far less production for the royalties to be applied to in the first place. The new recommended royalty structure will severly curtail exploration activity in the province, particulary for deep, conventional gas. When production declines, gas prices will increase, which will mean additional royalties and the cycle begins again. I sincerely hope that the government of Alberta is not even considering implementing the recommendations of this panel. If they do, they will ruin the industry that brought us to properity and will soon be the government no more! [Information Removed] |
| RRE2494 |
Albertans are already and have been for years benefiting directly and indirectly because of the oil and gas resouces in the Basin. I believe you will seriously hurt the economy of this province if the recommendations of this report are adopted. Why get greedy? Who is really going to benefit - not the average Albertan I would hazard to guess - but I sure know who it would hurt - the 1 in 3 people in this province that are employed because of the oil and gas prosperity we have been enjoying for the past number of years. |
| RRE2495 |
Dear Members , I am writing to express my dire concern that the government would implement the recommendations of the Royalty Review Panel as tabled. As a retired oil and gas executive who remains close to the industry and the challenges it faces I strongly suggest that the warnings of dire consequences being advanced by industry should not be taken lightly. The implications for future capital flows are very significant and , in particular , the spin off effect thereof. There is a significant risk that the attractive economic climate nurtured in Alberta over many years will be severly impaired with negative consequences for all Albertans and , ironically, with the prospect that government revenues from industry will in fact be negatively impacted. Government revenue is but a minor aspect of the potential economic fallout. Only time will tell with respect to this latter possibility but I suggest the government [ and the people of Alberta ] should be careful about what they wish for. Implementation of the royalty proposals as presented will , in my view , have devastating effects. From a risk / reward perspective I suggest the potential rewards [ increased revenue to government ] will be modest whereas the risks of devastating economic impact on all Albertans is large. Why risk killing the goose that laid the golden egg? As a long standing member of and supporter of the Conservative party I am extremely upset that this process was embarked upon in the manner it was and am more concerned about how it will be addressed. Now is the time for true leadership by making modest changes to the royalty structure in circumstances where it can be clearly demonstrated that they are justifiable [ eg at higher commodity prices , after payout and reasonable return on capital etc ] and explaining to the people of Alberta why a modest and rational approach has been taken....so as to preserve and nuture the economic prosperity of all Albertans. The easy way out would be to implement the recommendations , hope it reads well with the voters and move to an election. If that is the case be assured you will not have my support. This is a very complex matter with far reaching implications for Albertans. One could go on and on with respect thereto. Suffice it to say that I want to register my serious concern about pending action to be taken and to encourage you to step back from the abbyss and take a moderate and reasoned approach to this critical matter. Yours, [Information Removed] |
| RRE2496 |
20% royalty on a well that isn't drilled is $0.00, just in case the panel didn't catch that in the ten minutes it talked to [Information Removed]. |
| RRE2497 |
The new royalty structure recommended in the report will kill virtually all of the proposed new projects on the drawing boards of oil and gas companies operating in Alberta. It looks like something Hugo Chavez might have imposed in Venezuela. Does Alberta want to be seen as the Venezuela of the North? The current royalty structure takes more than enough money for the citizens of Alberta and the status quo should remain in place. It is totally unfair to impose higher royalties on the companies who bear all the risks of developing the resources and are facing severe cost pressures in developing new projects. [Information Removed] |
| RRE2498 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 07:31:16 DATE ENTERED {ts '2007-10-02 07:45:00'} |
| RRE2499 |
As an Albertan I am in complete favour of the Royalty panel's recommendattons. In fact I would have gone farther by increasing the 1% Royalty to 5 or 10%. It's hard to believe that after 40 years of operation, Suncor is still only paying 1% royalty. What a joke. By the way, I am an engineer who does a lot of work for the oil sands industry. We, like our competitors, have too much work and not enough engineers. We mostly hire from outside the country. How does this help the average Albertan? It doesn't. All the average Albertan knows is that the infrastructure is pathetic these days. I am tired of the oil companies and non-Albertans complain about the "extra taxation". Alberta was a place of envy when there were only two oilsand operations. Now it is just viewed as a place to come and pillage. |
| RRE2500 |
how does this gov,t think that the people of alberta, own the tarsands, ? how much have they invested of their own money, to benifit and profit, from these multi-billion dollar ventures??, pl tell your govt, that every body may purchase shares in these company,s in an open stock market for all canadains, our companys are not in alberta to be raped and pillaged by this government, as they will just devistate the oli patch, alberta, heartbeat and bakbone, I forseee much unemplyment, in an already soft gas market |
| RRE2501 |
Alberta is a jurisdiction based on the rule of law. One of the foundational tenents of law is that a contract to which two or more parties agree cannot be unilaterally changed by one party just because that party decides later that it did not make as good a deal as it should have. If I had mineral rights, made a deal with an oil company to drill and produce those rights and return a mutually agreed upon royalty to me in payment, I would be legally, morally and ethically wrong in trying to change that agreement just because I wanted more later. Mr. Stelmach, you must not destroy our respect for the rule of law as it is practiced in Alberta. Make changes in new agreements but do not try to break open existing agreements fairly entered into. |
| RRE2502 |
I don't support the governments move to push this issue in this way. The Oil companies have the money to leave and back out I do not think they would find it worth their while to stay here under the new conditions when they could make so much more in other provinces and countries. Everyone I know who earns a living in the Oil and Gas industry is already starting to suffer. Production has slowed down. I think Albertas srong economy should be more than enough to keep everyone happy. |
| RRE2503 |
I simply want to say that Albertans will not accept a "compromise" between the Royalty Review Panel recommendations and the view of the oil companies and their lobbyists. The government must implement the report in full and not some mild and cheeselike attempt to satisfy everyone. Deals made at $30.00 per bbl. don't stand when the world price is at $80. Anything else is simply selling the future of Albertans to the present greed of big oil companies and their many shareholders, most of whom are neither Albertan or Canadian. |
| RRE2504 |
Were has everyone been the last year . Drive up and down QE2 ,See how much equipment is sitting Idle , As and Owener of a Small sevice Company . I have a Frist hand view . Busness slowed down Last sept. and is still not a lot better, So many service companys our just operating and thats all. We feel that this report is mostly baseed on Fort McMurry Operations . Because it sure seems a long way from are part of the oil patch. Yours Truly [Information Removed] |
| RRE2505 |
What Alberta really needs right now is government leadership that is strong enough to tell the people the report is flawed and a massive tax grab would destroy the economy. It may seem unpopular, but how popular would the destruction of the Alberta economy be? I would think that a PC candidate would never again be elected in this province for 80 years. I guarantee I will stop voting PC if this AEP (a reference to the hated NEP, get it?) goes through. |
| RRE2506 |
What should be considered when comparing royalty schemes in different states/nations with those in Alberta is the relative difficulty of withdrawing and processing the reserves. Alberta's oil and gas resources are not nearly as facile as those in Middle Eastern nations or California and Texas. Increasing royalties to the levels recommended in the royalty review would simply make the economics not favorable enough to continue exploration and development of many of Alberta's oil and gas plays. Alberta is already making impressive surpluses year after year, primarily because of the well balanced royalty system that is in place. If the recommendations of the panel pass, I foresee this situation becoming a classic example of killing the goose that lays the golden eggs. |
| RRE2507 |
As an Albertan, I am in full support of raising royalty amounts that should be paid by the oil companies, and concur with the recommendations made by the royalty review. I hope the premier keeps in mind the best interests of the average Albertan, and our children who are the key to Alberta's future. [Information Removed] |
| RRE2508 |
It is not only oil and gas companies, their employees, and financial institutions that are nervous about the royalty review report. Many people in this city would be out of work very quickly if the panels recommendations are adopted. The entire country would instantly lose billions of dollars and thousands of jobs which are currently fueled by the energy sector. All of us can clearly see that Canadians are profiting enormously from oil and gas right now. Please don't make the mistake of thinking that energy producers are bluffing when they say they need to make a large enough profit to make their projects financially viable. |
| RRE2509 |
i am glad to see that the taxation rates are finally keeping pace with todays overinflated economy |
| RRE2510 |
[Information Removed] I have worked in oilfield services all my life, and through the years of the N.E.P.. The Oil companies devastated our economy then and it took years to get over it. PLEASE don't give them a reason to do it again. They will not hesitate to pull out of Alberta and go elsewhere to get a better return. |
| RRE2511 |
Agree with the report. If threatened with job or economic loss, follow the Russian example and tax them back to Israel. |
| RRE2512 |
I don't agree with the increased royalty rates. Although I think that we as the "regular" Albertan need to benefit from the natural resources in our province, I am not sure that increased royalties are the answer. And as far as the Parkland Institutes belief that the Government should OWN oil and gas?? No offence is meant - but haven't we learned why government should not own things? Phones, alcohol, etc?? |
| RRE2513 |
Albertans do deserve a fair share. Indeed if you take into account the total monies paid to Albertans through wages and infrastructure, I believe they already have a good share of the gas income (I exclude oil revenue, which is a different story). Gas pricing, which is at a low now, is already making many projects barely economic. Many smaller operators are captial constrained and on the verge of divesting gas. This will cut activity and therefore cost jobs right through the sector, especially the service sector, which is the mainstay of many many Alberta towns. You must get this message across to "Joe Alberta", and reduce the greed and hype. Consider linking the royalty to production with a gas price trigger. |
| RRE2514 |
Albreta should not raise royalties. Here is a good reason. B.C. Has No Plans To Raise Royalties [Information Removed] The Canadian Centre for Policy Alternatives recommends raising royalties in British Columbia in a new report, although the province's energy minister says there are no plans to do so. "We constantly review ours," said Energy Minister [Information Removed]. "That's different maybe than other jurisdictions, I don't know. We review ours regularly to make sure that we are getting the best value we can in the province of British Columbia. I appear before treasury board once a year to actually talk about our programs and make sure they're meeting the goals that we've set out as a government." The Canadian Centre for Policy Alternatives suggests that the province raise royalty rates and create a standalone provincial fund, similar to Alberta's heritage fund. Located in Ottawa, the CCPA's national office co-ordinates the national research agenda and publishes reports, studies, books and commentary on a wide range of public policy issues. It was founded in 1980. The report makes other policy recommendations including: rapidly phasing out "all provincial government subsidies" to the oil and gas industry; end gas flaring in B.C. and impose increasingly higher fines on companies that fail to meet deadlines. In addition, it suggests the government immediately charge royalty fees on every unit of gas flared; place annual limits on the amount of natural gas produced; implement a carbon tax and keep protected areas and special management zones protected. On the heels of the Alberta royalty review report, [Information Removed], vice-president of Western Canada operations for the [Information Removed]said it's a concern that what happens in Alberta with the royalty system might spawn similar initiatives in other jurisdictions. "I think that's a fair assessment of the concern," he said. "We would look, though, to governments to kind of make sure they understand their current royalty fiscal system. B.C. has done a bunch of work just recently looking at the fiscal system and I would say therefore has a very current system, they've just put in their...net profit royalty incentive. "What we're talking about is (what does) the marketplace need to look like from a fiscal perspective to attract investment? I think that's part of the problem with the analysis that's gone on in Alberta, it hasn't really taken that into account." B.C. possesses a strength, [Information Removed] added, with a fiscal regime that recognizes the nature of its resource - it's remote, geologically challenging and short on infrastructure. Meanwhile, the CCPA report calls for eliminating "subsidies" or initiatives like royalty credit programs from the province created to spur development of things like summer drilling. "It is not as though wells drilled in summer cannot be drilled in the winter," the report stated, adding that year-round development has benefits, including a more stable environment for workers in the industry who live in the region and having fewer peaks and valleys in terms of employment. "But from a strict resource conservation perspective, does it make sense to subsidize activities that have the effect of speeding up development and depleting resources faster than they otherwise might be?" "I think that would be contrary to the policy that B.C. has really been adopting," [Information Removed]said. "They've been trying to encourage development of a local business service sector and one of the key strategies was to encourage (a) round the year level of activity. "I think we need to be really careful about the terminology," he added. "I would argue that they're describing something as subsidies which is essentially striking the right fiscal measures to attract investment. This is not a provincial regime that is applying subsidies, it's a provincial regime that is saying what will it take to encourage the investment, to encourage the development of the province's resource." The report also suggests placing annual limits on the amount of natural gas produced, stretching out the benefits of the resources over time. "At least when it comes to forest and fisheries resources there is debate, public debate, about just how sustainable or unsustainable harvest rates are. There is no such equivalent when it comes to fossil fuels and their exploitation in B.C.," the report stated, citing the Ladyfern gas field over exploitation. "It's an interesting way to look at it, I mean it's two totally different things," said [Information Removed]also the MLA for Peace River North, a riding in the heart of the province's oil and gas industry. "The natural gas industry is out there, the industry is developing natural gas in the province. It, in turn, creates jobs and wealth for the province and for the people that live in northeastern B.C. and the communities that are there. Putting a limit...is again one of those great socialist ideas that failed in the '90s." |
| RRE2515 |
I think that it is a great idea in the long run for Alberta to increase royalties. Slowing down the economy might not be such a bad thing to prolong the economical fortune that we're experiencing now. Currently we lack the labor force to build houses fast enough or enough people to work at fast-food sectors. I hope that the Alberta government can be "forward" thinking and seriously consider a revenue increase on oil. |
| RRE2516 |
I think if the royalty goes through alot of people will be out of work. I've already been looking into going to Saskatchewan to work in the oil patch. I work on service rigs and believe this will slow us down alot, its bad enough were slow already. So if it goes through I think I'll have no choice but to move to Saskatchewan were the oil patch is starting to pick up alot more. |
| RRE2517 |
I think the government needs to look at other methods of gathering and saving cash. I cant tell you how sick and f"ing tired i am of seeing drunk Indians and knowing that we are doing this to them, when you get something for free you just dont feel the need to work. I think we need to take a hard look at how much we are paying them and ask ourselves, when is enough, enough. as for the royalties, Alberta is already the richest province out there, why do they need even more. I think if we agree to the royalty hikes the way they are, we are all going to lose our shirts. They it has been explained to me it hits the service company's as well as the oil company's. HURRY UP AND THROW THIS OUT!!! Alberta is basically sitting at a stand still waiting for this. People are already loosing there house's. How many times do we have to learn the hard way, good and steady is good for the economy. I just had to leave my pregnant fiance in Grande Prairie and come back to work in calgary because G.P. is so slow. I would like to hear your feed back in terms of my comments. would it be better if I started a petition, would the government listen then. |
| RRE2518 |
There are a number of items that could be addressed but here I comment on one key point at this time. What the revue panel seems to have dismissed are the many submissions that are 'off topic' on a particular issue. It centers around an early comment by Premier Stelmach after his becoming premier that he had no intention of putting the brakes on the Alberta economy. I think this is not in line with the majority of Albertan’s desires if the submissions to the panel are examined. I have read pretty much all of the submissions and those asking for a royalty increase seldom use the argument that Alberta needs or deserves more money from industry but rather that Alberta needs to slow down activity and increasing the royalties would seem the only way to accomplish this. The panel argued that it has no mandate to control activity but only to examine ‘fair share’ which essentially means monetary take. It noted that the government has many ways to control activity apart from the royalty regime and those are political issues, not the panel’s responsibility. But as the premier has taken the position that he will not take the foot off the accelerator, those wishing a slowdown had no recourse but to try to control activity by submissions to the panel requesting higher royalties. I feel that industry and government misread the will of the people on this and, I think, still do. Industry threatens that this report if adopted will cause a slowdown but the people are saying "Great! That's what we want." Even today after the report we hear industry continuing it’s dire warnings about curtailment of Alberta’s financial growth. This was behind my point when I spoke on [Information Removed]about the people agreeing with industry that higher royalties will effect producer activity. What industry doesn’t seem to get is that people want this to happen; not that they are afraid this will happen. If industry (and government) were to understand the depth of this sentiment, they would be better positioned to address the underlying concern of many private citizens, municipalities and environmental organizations. But it is too easy to see this simply as a fight over money. If my analysis is correct, then I believe that it might be possible to create a a better consensus that the royalty report recommendations as it now stands. But this will require a recognition that the royalty regimes are not independent of political issues and the two require some form of marriage. I would be pleased to discuss the form that wedding might take if there is interest on your part. My personal plan is to be on vacation next week so if you are interested in me commenting further, please let me know soon. [Information Removed] |
| RRE2519 |
Do not think that investment will not suffer and many industries related to the oil industry. The review must have flaws if there was little or no input from experts in the oil and gas industries. I am a personal trainer, who depenes on wealthy individuals with big bonuses to buy personal training. If my business suffers I will not be voting conservative. Stelmach was not voted in by the public and I doubt he would be. If he hampers the economy at all he will be out. [Information Removed] |
| RRE2520 |
We should maximize the royalty. As oil is a vital world commodity with no real replacement in sight, I doubt that companies will leave the province, and if they do others will move in to take their place. The province should not fear taking a tough line on this issue and remember that its primary duty is to the people and not any corporation. |
| RRE2521 |
I was very disappointed that the review panel did not provide any estimate on the potential negative impact on the employment of the province caused by the proposed royalty changes. It seems to me that they chose to ignor this issue which is critial to many thousands of Alberta families. There is a good reason to question if the panel members really care about potential massive loss of jobs if the proposed changes are in place. To the impacted families, they would bear much more than simply saying " The proposed increase in royalties and taxes will slow the investment in the oil sands, not as a primary goal, but as a result of re-establishing a faire share for Albertans..." I can't speak for other Albertans, but if you ask me if I want to get my "fair share" of stranded resources by giving up my current employment, my answer is definitely NO! Alberta's valuable resources have been sitting underground for perhaps millions of years and it was not until a few years ago they really played an important role in lifting up people's wealth. And we should not forget it was a combination of benign policy environment(Alberta Advantage) and business adventures as well as luckily higher commodity prices that really helped Alberta to boom. Keeping resources stranded creats no value and ZERO share of benefit for Albertans ! As a responsible government, we should be focusing on building sustainable infrasturctures throughout the province and keep the booming long lived. Alberta should be in a much much better position to do so than most other government in this planet, if not all, thanks to a marvelous balance sheet created by the right policies. Additional two billions on paper would not do Alberta a whole lot. Even more hard cash in the hand of the govenrment may not mean anything to the people unless the results been delivered. And to deliver needs real focused effort.. Regards, [Information Removed] |
| RRE2522 |
I can see our company will have a new focus based on decision that have not even been made yet. How these decisions are carried out in the near future will ultimatley decide how we proceed in a buisness plan and focus. With reference to; "In summary, the gas business is very different from the oil business. The proposed changes will severely hamper our deep gas economics. Further, by not grandfathering existing production, our cash flows are reduced significantly, especially in high rate areas such as the Foothills. In order for us to operate within our cash flow, we will have to cut capital significantly, ironically resulting in less future royalties. Lower activity means less opportunities for all Albertans in the communities where we operate. The Government has said it will review the panel's recommendations and make a decision by mid-October. Time is short. I have been and will be meeting with MLA's and government departments over the next two weeks. [Information Removed]has also drafted an open letter to the Premier expressing his concerns. I would urge every [Information Removed] employee and contractor to contact the Premier and your MLA and discuss any concerns you may have about the program or the impact it could have on you or your province. I've provided a link below that directs you to the Alberta Government site where you can direct comments on the royalty issue. In the Questions and Comments box go to the subject area and select royalty review. I would encourage you to pass this letter on to friends, business associates and suppliers. The message is clear. Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. This is too important for Albertans to get wrong. Wells you don't drill don't pay any royalty. " |
| RRE2523 |
I worry that the 1980s are going to happen again if this review goes through. People will be out of jobs because companies will not want to invest in further exploration. Not only will the oil industry be affected but the industries providing services to the oil and gas companies will be affected. They are stating that Alberta is not getting its fair share well if this royalty goes through we will continue not get are share because there will be no investments. Some of the major companies are already threatening to pull out of projects and that is going to hurt our ecomony in a major way. So if the goverment is ready to fork over money to unemployed individuals then they can go ahead with the review but it damage our economy in a major way. |
| RRE2524 |
I'm not as knowledgeable on the issue of royalties as some, but from what I've read it's pretty safe to say that there was a lot of misconceptions formed when producing the cost figures contained in this report. As a result Industry is very adament that any significant hikes would make future investment uneconomical. I hope Ed Stemach and his Government take these comments into account when responding. Bottomline: it doesn't matter how much you increase royalties; if industry doesn't invest then the net result is less revenue for the province and less jobs for Albertans. As an Albertan who works in the Oil and Gas industry I can tell you that my future vote will depend on Ed's response. |
| RRE2525 |
One of the key assumptions in the panel report and all the comments from industry and financial analysts is that the conventional oil and gas business is supposedly shrinking in Alberta. Last I looked natural gas sales have been pretty flat the last 5 years. And the potential is there to keep it flat - with the right economic framework. One of the panelists made a comment like "the current system make what otherwise would be uneconomic wells economic"...GREAT. That's exactly what good economic policy should do. Everybody in Alberta has benefitted from that policy. We drill alot of small wells, something like 20000 per year. Texas and other US states a lot of the new finds are just as small since they too are drilling CBM wells, deep thick tight deep basin wells and shale wells. And Alberta is rich in all 3 of those resources. A variety of reports have indicated we have 500 Tcf of CBM, 500 Tcf of Deep Basin gas and 800 Tcf of shale gas in place. We only produce 5 Tcf per year. With the right economic framework and policies there will be a strong conventional business in this province for decades to come and the province will benefit from a steady stream of royalties, industry and personnal income tax and municipal taxes. With the right royalty and tax policies. Royalty rates should be set at a level that is a benefit for all Albertans for the long term. And we have a long bright future with more than 300 years of potential supply at todays rate - if we can economically get it out of the ground. Economic circumstances change very rapidly. Look at the Canadian dollar now trading at $1.02. That's a huge swing in 3 years - who predicted? Wow. Look at drilling in Alberta. Its half what it was a year ago, only 35% of the rigs running vs. 65% a year ago. What a swing. Look at unemployment at 3.5% or less with more people working in the province than ever before. Alberta is driving the economy of this country at a time when the manufacturing heart land is hurting due to the change in the dollar. Careful how you tweak our economy, the envy of much of the country and the world. The royalty report suggested capital costs of about $1.73/mcf and operating costs of $1.20 or a total of $2.93/mcf. Reality is closer to $3 to $3.50 plus $1.25 operating costs for a total $4.25 to $4.75. A huge increase vs. 3 years ago. Partly capital and partly smaller and smaller wells. But the important part of cost is that a lot of it goes to pay salaries of hard working Albertans in every community in this great province. And those salaries get spent in those communities on goods and services and on municipal taxes and as income taxes. Those taxes along with the royalties pay for and the operations of hospitals and schools and town councils and the grading of roads. Increasing the royalties dramatically as suggested by the panel puts all of this at great risk. Why has drilling slowed down? Economics - our dollar is on par with the US. 3 years ago it was 80c. Our gas and oil is sold mainly in the US. To send natural gas to the US costs a dollar. The exchange rate at 80c used to offset that cost. So we get a dollar less as a producing province for every mcf/d vs. Texas. Our average well size has dropped in half over the last 10 years. We drill lots of wells to keep our homes heated and those of our friends in the USA. That activity is what keeps people employed, working and enjoying a great life style and paying taxes. Those lots of wells have seen their average cost increase over 40% in the last 3 years - mainly it is labour but its also steel, transportation and fuel costs - the later all being set by international forces. Not something we can control in this province. So add up smaller wells, a lower price and higher costs and that is why our drilling has slowed down. In Texas their drilling activity is at a peak. They are seeing rising costs too but they tend to drill wells that are slightly better than here (its just the geology in each area that creates that difference). But they don't have to pay $1 dollar to transport their gas to market. So their economics are better. Without even talking about royalties and taxes. So with 1800 Tcf of low
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