| Random Nbr |
Released Comment |
| RRE3000 |
I don't believe that increasing royalties will not affect the level of oilfield activity in Alberta, or the financial well-being of Albertans. In addition to lowering the financial welfare of people working for oil & gas companies and service companies, the people employed indirectly (in hotels, restaurants, auto dealerships, building construction, etc) will be threatened. From my observation, the affluence of people directly employed in the oil industry is shared throughout our economy. Finally, people in the oil and gas industry contribute to the Alberta and federal revenues through income tax and GST. The proposal to increase royalties will have an immediate popular appeal as big oil companies are generally negatively portrayed in the media. Giving in to that appeal and creating economic slow down will not win the government any friends in the long run. |
| RRE3001 |
50% or more increase might be better. I support our government to collect more money from these companies. [Information Removed] |
| RRE3002 |
The royalty review was a good exercise. However, the increases they proposed made it clear that they did not understand the industry. No one believes there can be some increases, but changing the deal mid way through is just bad business and even worse ethics. I, for one, would rather the idustry keep the current rates and use that investment money to create jobs and the trickle down effect than give more money to a government that is more than likely to spend the money unwisely. I will not vote for a government that believes they can allocate money and resources better than industry. [Information Removed] |
| RRE3003 |
I will be very VERY angry if the Alberta government does not raise royalties by the amount specified by the royalty review. I want a moratorium on new oil sands projects and if the government doesn't raise royalties I will do everything I can to stop the PC candidate from being elected in my riding. |
| RRE3004 |
Much has been written and said since the release of the report. The oil companies are against raising the royalties, the public generally in favor. The oil is in the ground, and it is not going anywhere until developed. If capital expenditures are reduced as is being threatened by some oil companies - that would be a good thing. It's just too busy in Alberta now, and obviously unsustainable. Like Ed said, let's all relax and don't act prematurely. My opinion - from a 46 year old resident of Alberta since 1981, an engineer working in the oil industry is this; Raise the royalties as suggested in the report, that way we will get the maximum benefit from this non renewable resource, whether it is developed now or 10, 20, 30 years from now. The oil companies that pull out of Alberta now will return. By that time the super heated unsustainable economy will be on a more managable footing and life as we love it in Alberta be back to normal. Natural gas is the life blood of this province, and royalties should be raised in this resource also. This issue is a show stopper for the conservatives, and will cost them the next election if not addressed for the benefit of the population and not the oil companies. There is change in the air, especially with the influx of new residents to the province in hte past 5 years. Remember, they have no loyalties to the current government. |
| RRE3005 |
I think it's unfair to change the rules once the games started. Oil sand projects are long term ventures under increasing pressure from rising costs. Increasing the royalty from 25 to 33% + adding the proposed oil sand production tax. If the government decides an increase is indeed fair and will not cause a huge panic resulting in thousands of job losses, then I think the increase should be staged over a 8 year period - 1% increase a year perhaps up to 30%. This would probably make the Alberta/company 50/50. |
| RRE3006 |
About time we get our fair share. It is just stupid to let oil flow out of Alberta to be refined somewhere else! What are you thinking off? hey! Klein is gone---get real!! Further, we must have extra tax on any unrefined oil that ships out of our Province. The Company don't like it?/ Too bad--I am sure China will gladly pay and buy those company's'investment!! |
| RRE3007 |
The Alberta Royalty Review must be accepted in its entirety. This Report was drafted with honesty, an by a group who had supperior knowledge then any particular self interest entity. [Information Removed] |
| RRE3008 |
I don't understand why the Premier is stalling. Industry and the public already gave their thoughts... to the panel. The panel found that we are being short-changed, and royalty rates should be higher. What more do you want? Are you going to keep asking for opinions until you get the answer that you want to hear? In my opinion the recommendations put foreword by the panel are barely adequate to address the shortcomings in the royalty system and should be implemented immediately. Then we can have another go at deciding what a fair return on public resources is. I have very little faith that the conservative government is acting in the best interest of all Albertans. How can I when they are sponsored by the oil and gas industry? What do you do when you don't trust your government? Sincerely, [Information Removed] |
| RRE3009 |
I work in the oil and gas industry, but I do not share the view that the sky will fall if Alberta takes more revenue from oil and gas royalties. Oil companies are using fear tactics (much like political campaigns do) to try to make its employees and the public believe there will be huge economic downfalls for the province if these recommendations were to take effect. I skimmed throught the report and it seems pretty reasonable to me. The only thing I wish to add is that royalties should decrease as profitability of resources decline due to high operating costs. High royalty rates should not ever be the reason why resources are no longer produced. This will help ensure that resources are conserved and produced as long as possible. Premier Ed Stelmach needs to stand strong in the face of industry and public fear-mongering about the economic downfall of Alberta if Albertans get their "fair share." I do not see a little slowdown of the Alberta economy to be a bad thing; I think it will help stabilize inflation and give us controlled growth that maximizes Alberta's quality of life and the "Alberta Advantage." Kudos to the Stelmach government for recognizing that there should be a change in royalty caps and calculations! |
| RRE3010 |
What are they thinking; employment as hit a all time low and unployment is on the clime to an all time high.. The more they get the more they expect..what next |
| RRE3011 |
The entire province is entering a period of correction. Why risk turning the correction into a recession? If you leave things alone and things crash your family name wont be associated with it. If you mess with it and things fall apart... your family name will live on forever for all the wrong reasons. |
| RRE3012 |
I agree with this report, and believe that the government must take the recommendations and enact them. We cannot allow foreign investment to rob us blind of the natural resources without compensation. As companies want to be in a fair market so do we, the owners, of the resource. Whats go for the the goose is good for the gander. |
| RRE3013 |
I am truly amazed that our Government would even consider disrupting the main driver that has benefited Albertans - The Oil & Gas Business. The ripple effect on the province has the potential to be catastrophic, people do not realize that the Energy Industry benefits every sector of our economy - everyone will suffer from this. The only "gain" from this will be felt in BC, Saskatchewan, Newfoundland or the USA as oil field workers, engineers, management and most individuals tied to the industry will simply move elsewhere to work. This has the potential to be worse than the decision of the early 80's. I honestly don't believe most Albertans want to go through that era again. The Stelmach regime must use common sense when making this historic decision. |
| RRE3014 |
I agree with the royalty review panel having read the report. However, the extra revenue should be destined toward the savings fund as this resource belongs to our future generations and by saving now, our children will benefit. The economy is already overheated - perhaps the threats by big oil are in reality a blessing. Our infrastructure needs time to catch up, our citiizens need the ability to afford a home, and the research community needs time to address the environmental impact of this uncontrolled growth. If the predictions are correct, then the price of this finite resource will continue to rise and in time, the "poor economics" that the resource sector are claiming will no longer be valid and our future generations will again directly benefit at an even higher rate. In closing, I recall as a teen, the proposed Lougheed reforms toward the oil industry as well as the understanding of the value of saving towards the future. This brought about a wholesale change in government from the Social Credit Party at the time as most of the people of Alberta understood that the resource is ours (and in my mind, a portion of it belongs to the rest of our nation) and should not be exploited to the exclusive benefit of industry. Should this government ignore this report, I expect that history will repeat itself and a new group will lead our province. Thank you. [Information Removed]. |
| RRE3015 |
I read the royalty review report. It's thorough work and the panel should be proud. There is a lot of controversy over the costs used to model economic rents. Please don't lose sight of the fact that many of the costs have increased because of rent-seeking by suppliers and employees. I saw a Bentley on the streets of Calgary the other day, that could be considered a producer "cost". Someone paid for it, out of the taxpayer's share. So, yeah, costs are higher than the report indicated, but only a portion of those high costs is because of global economic pressures. The rest is because some oil company president is spending my daughter's school funds on a new car. They might squawk, but I don't think that downgrading oil company managers from Bentleys to BMWs will mean all that much less investment in Alberta. |
| RRE3016 |
When one reads the report especially the, "How does Alberta Compare" section one can only come to one conclusion the increase suggested by the panel is fair and should be seen as a MINIMUM increase to be considered by the government. The oil industry, some government bureaucrats, and oil related industry leaders who are presently reaping the unprecedented windfalls of energy prices, can spew all the smoke and mirrors they want but the fact remains Albertans under the present system are badly compensated for our non-renewable resources. Thank God Premier Ed is prepared to stand up for Alberta and not continue to follow Klein's fiscal policies with the oil patch. Mr. Stelmach in my discussions with my immediate family and friends you should know we are all not prepared to accept one cent less than the recommendation of the panel. And yes, though we know it will not happen, would even welcome the industry suggested side effect of a slow down in development in our province. |
| RRE3017 |
When the oil industry threatens to cut investment, invite them to do so. We are failing to cope with the level of investment we currently attract. If Americans wish to obtain oil and gas from the Middle East in preference to Canada, by all means, let them do just that. |
| RRE3018 |
In the interests of our province, follow the recommendations and raise the royalty rates! Industry cannot be allowed to set the agenda - there should be no rush to extract our valuable resources at the lowest prices. [Information Removed] |
| RRE3019 |
Ok first off yes i do work for a Oil Company. so yes this will directly affect my life. If you go along with this reveiw you WILL LOOSE MY JOB FOR ME. have you actually thought about that 80% of alberta is directly or indirectly employed by the oil industry, its not the farmers or health industry that will keep me employed or 80% of the other people to its OIL. If you go through with this you will end up loosing 20 times the amount of money you think you will bring in plus have me on umemployment insurance. so if you dont really care about us and want to have loose my vote and repect for you for good then go through with it otherwise lets do the right thing and leave it as it is!!!! |
| RRE3020 |
I am a geological consultant working in the Alberta oilpatch. I do not diagree with Alberta wanting more of the royalty pie but I am concerned about how the panel arrived at their numbers. We need to compare apples to apples. That is to say we need to look at the economics of our gas business and not compare it to other locals where royalty schemes are different. Our gas business is unique and has unique costs associated with it's exploration and development. It costs more to do gas business in Alberta. And lets not forget that outside of the oilsands the vast majority of business in Alberta is gas. I urge the government to consider every angle and possibility before deciding on a royalty scheme. My business and my family depend on it. |
| RRE3021 |
I would like you to accept all the recommendations that was proposed in the royalty review report because Albertans deserve it. Even though I work in the mining industry designing equipment for Suncor, Syncrude, CNRL etc., which could affect me, I still feel it is necessary. I hate hearing of stories were daycares are being shut down and buses are late or don't arrive at all because of a lack of funding. Also, I would like to see the extra money (if implented) go to more schools in the growing communities and more leisure service facilties such as hockey rinks because I hate hearing that kids cannot play hockey because there is no ice time from shortage of rinks. The "golden goose" will not die!!!! They will not abandon projects it will only slow them down a bit which is needed. Also, CAPP says drilling for gas wells will drop one third from 22000 last year to 16000, so what, wasn't last year a record year?? Isn't the average around 13000-14000 wells a year before the boom??? Please implement all of the suggestions proposed in the report, these professionals were not lying when they wrote it. |
| RRE3022 |
The government has received ample feedback from the public since the review process was started. The vast majority of Albertans believe royalty rates are far too low and should be increased. This was also the conclusion of the review panel. There is no need for further discussion - please implement the report's recommendations immediately. Any further delays suggest that the government does not have the guts to stand up to the oil companies and get the best deal for the citizens of this province. |
| RRE3023 |
I read the royalty review report with a great deal of interest, as I was quite involved in this segment of the oil and gas industry during my career. It appears to me that the Committee did a thorough job and much more extensive than I had expected. Extend my “thanks you” to the individuals that contributed to the royalty review process. I agree with the conclusions stated in the report. The “Fair Value” conclusions are not surprising, with the price sensitive royalty formulas being capped at a price much lower than the current oil and gas prices and the over active focus on the Oil Sands. It was time for the “Fair Share” royalty review to take place. I encourage the Government of Alberta to take action by increasing the crown royalties to be more up to date with today’s economic times. If royalty increases cause a bit of a slow down in oil and gas activity, it could even be beneficial to Albertans as the oil and gas prices will likely continue to increase. Future recovery of oil and gas resources could yield a much better economic return than banking surplus dollars obtained via lower than “Fair Value” royalty rates. The inflating costs associated with an over active economy is causing hardships for many Albertans, who should really be sharing in the positive experiences from the windfall values associated with Alberta’s oil and gas resources. Thank you for the chance to comment on the important issue. A Life Time Resident of Alberta – [Information Removed] . |
| RRE3024 |
I think it is important for government to be careful and not kill the golden goose. Successful businesses in Alberta is what has allowed the province it's growth. When businesses are profitable that profit flows to the shareholders, employees and ultimately into the economy creating benefits for all. Let's not let a minority of people who think that the "rich oil companies should pay" slow down or destroy our great Alberta Economy. [Information Removed] |
| RRE3025 |
Good Morning I have been in the oil and gas industry since the age 20 and I am now 61. I have never been as concerned as I am now on what would happen to our industry should the government go thru with the royalty panel review. Although I work in the Land Department and do not totally understand the ins and outs of the financial end of the business, I know enough that if the royalty review goes thru it will hurt our young people as the business would come to a screaming halt on new projects. Is the government thinking about the future?? Did the government take into account the money it is going to take the industy in developing new technology to recover heavy oil/oil sands/cbm in place of the depleting conventional oil and gas. Did the government take into account how long certain wells would reach payout after paying crown royalties and after oerating costs. I think not. Also, if the government is not even receiving the royalties is should be getting at this point, who is at fault? Has the government personel and the oil and gas industry actually conversed about this matter? Thank you for reading this message. |
| RRE3026 |
Fair Share? that's ridicuous! 25% royalty is not a fair share? then 40%? 50%? if now the industry accept the royalty hike, who know if the royalty will rise again in a few years. may be when royalty reaches 100%, those guys feel fair finally! the review panel is selfish and devil!!! |
| RRE3027 |
I am a resident of Alberta and have been for 24 years. I am also directly employed in the oil & gas business. Over the last 24 years, I have seen many ups and downs in this business. Prior to the royalty review report, many indications were that the oil & gas business may be heading into another downturn due to reduced commodity prices (especially on the gas side), very high service and supply costs and continually increasing regulatory / environmental obligations. With the release of the royalty review report, a new hit to the oil & gas business is being contemplated. It is my sincere concern that, if the Province of Alberta were to enact the recommendations from this report, the "perfect storm" will be created that will plunge the oil and gas business in Alberta into a significant downturn that could be comparable to that seen in the days of the NEP in the early 1980s. Since the release of the report last week, I have been very surprised by the strong up swelling of concern voiced by so many in this business. I strongly encourage the Provincial Government to review the recommendations carefully and discuss the findings with the oil & gas business on a factual basis. Obviously, emotions and politics can run high on this issue but they need to be set aside to properly review the facts. I firmly believe that a detailed review of the facts will prove that the economics for oil & gas development in Alberta, especially on the conventional oil & gas side, are already tight and that any further erosion of the economics via higher royalties will result in the significant curtailment of future spending in this industry. Thank you in advance for your serious consideration of these issues. [Information Removed] |
| RRE3028 |
Don't srew up something that doesn't need fixing. I work for a small private Oil & Gas company. It's already hard enough to raise money with gas prices at an all time low and now you through this into the mix. We currentley need to raise more money for future exploration/drilling programs and finding investors will now be harder then ever. People are already weary of the oil & gas market via the extreme decine in stock prices. Also how can this royalty increase not be grandfather in. This change will completey obstruct the dinamics of our comany's current years forcast. The increase will effect our company dramatically becasue most of our wells are high impact. Maybe will have to just drill more in B.C? Can you say unemployment crisis in Alberta? What else do you want to get your hands on? |
| RRE3029 |
Royalties should be increased substantially for all past present and future oil and gas production in Alberta. Application of royalties should be made more transparent. Canadian citizens deserve more of the wealth generated by the exploitaion of our natural resources. |
| RRE3030 |
I am deeply concerned about the proposed changes to the Royalty program in Alberta recently brought forward by the report "Our Fair Share". I believe that by implementing the proposed changes, Alberta and Albertans will lose out in the long term. The majority of wells drilled in Alberta are gas wells and with the trust changes announced last Halloween combined with low gas prices, Alberta companies are already struggling to make a profit. Many Alberta families depend on the strength of the oil and gas industry for their livelihood, either directly or indirectly. I am also very concerned about the proposed idea to not grandfather existing oilsands contracts into the royalty changes. I refer you to [Information Removed]open letter to Premier Ed Stelmach and recent columns by [Information Removed]as well as warnings from the Canadian Association of Petroleum Producers, Tristone Capital, EnCana, FirstEnergy Peters & Co. Limited, all of who know more about the details surro! unding the present issue than I do. I urge you to heed their warnings, for the good of the province and us, its citizens. We in the oil and gas industry know that the royalty regime needs to be changed and updated. I just hope that cooler heads prevail and that any changes are thought through fully before being implemented. [Information Removed] Calgary, Alberta [Information Removed] |
| RRE3031 |
good idea if you are planning to make alberta cities ghost towns. |
| RRE3032 |
The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. I beleive the proposed increases are going to hurt the oil and gas industry in Alberta to the point where investers will look to other oportunities in other countries there by costing Alberta jobs and financial security of its workers. |
| RRE3033 |
I believe that, considering the current state of small & junior oil companies and financial markets, that this is a poor time to change royalty regulations. Any funds gained will be lost in land sale revenue and in lost jobs - especially in the oilfield service industry. |
| RRE3034 |
Alberta citizens deserve their fair share of oil and gas revenues. Why is the government allowing multinationals and millionaires to profit while regular Albertans have to cover the costs of our suffering infrastructure and lacklustre social services? It's time to give Albertans a fair deal. Show us that the interests of the province and this country come BEFORE the interests of moguls and corporate entities. Raise the royalties. Let the oil companies leave. Someone will want our resources, and they will pay to get them, by providing benefits to the province, not just themselves. |
| RRE3035 |
Don't do it. |
| RRE3036 |
I urge you to consider the far reaching consequences 0f the royalty report if implemented as it stands now. Please do not be sucked in to the "look at the money those fat cat oil companies have made off of our backs" knee-jerk reactions that are currently washing through the media. Far more is on the line than the jobs of the oilpatch workers who will be the first to suffer the effects of a flawed report. |
| RRE3037 |
The Alberta government should immediately implement the full recommendations of the royalty review panel. We, the Alberta citizens have been shortchanged for too long. Stand up to the vocal and powerful oil and gas companies on behalf of all Albertans. The current proposals already are a compromise. [Information Removed] |
| RRE3038 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 06:01:18 DATE ENTERED {ts '2007-10-02 06:15:01'} |
| RRE3039 |
The benefits of continued growth and development of the oil and gas sector in Alberta through all of the owners, and associated businesses far exceed what could be gained through changing the royalty equations. If a "self imposed" slowdown in the oil and gas sector were to occur as a result of a change, it would cost the Alberta government as well as the citizens much more than the increased royalties would net. Any change of this nature would have to be done with a great deal of notice (15+ years) to allow owners to adjust to the change. Royalty changes a few years into a facility with a 50yr lifecycle is not something the owners could forsee or react to without a negative impact. Please contact me if you wish to discuss further. |
| RRE3040 |
Good Morming. I am very concerned about raising the Royalty Rate. Our oil industry is having a hard time, as costs are already high. These companies are not Making nearly as much profit as the general public are lead to believe. If royalty rates are raised more than 20 %, at this time, we will have the largest unemployment rate in Alberta history. It will be a financial disaster for all Alberta. I would like the government to have all their fact in order before making any changes. I want you to listen to the oil people in Calgary, as their exploration programs are far below last year, due to high cost and profits. I have worked in the oil industry for 45 yrs, and I feel they have , and will continue to build our provence. Please don't destroy the one Industry that is Alberta's head above water. [Information Removed] |
| RRE3041 |
I do not support the Royalty Panel recommendations. In my opinion, changes to the royalty and tax rates must consider Alberta's long-term future and balance against the risk and cost of developing our resources. Please work with the Energy Industry to increase the provincial funds in a collaborative manner. Thank you, [Information Removed] |
| RRE3042 |
Do not yield to pressure from the oil and gas companies and accept all the recommendations in the royalty report. [Information Removed] |
| RRE3043 |
As I review the numerous stories and articles over the past few weeks’ things are becoming very clear and support the panels review: • The panel contains experts from the industry. • The industry calls the panels information flawed but 2/3 of the informational input was from them. • The industry is making record profits as shown by their own annual reports to their shareholders not to mention the overly generous compensation packages to executives. • History shows every royalty increase is contentious with threats yet is finally accepted and life goes on with little disruption. • Market forces are driving explorations and slowdowns just look at the over abundance of gas supply in storage due to the past mild winter & cool summer. • If the review scares away the industry why then are countries such as China, Norway and Abu Dhabi buying our oil sands? We have it -They want it. World demand is on the rise and conventional supplies are dwindling. A slow down would be a good thing and here is why: • Industry complains of higher costs. Economics 101 –Supply & demand- All industry is fighting to get the ever dwindling supply of qualified workers. A slow down would maintain a more reasonable employment rate in the province. Other sectors of the provinces service and retail sectors would finally be able to hire available people. • Fort McMurray has been complaining for years of social economic and infrastructure issues. People living in garages, not enough doctors etc. A slow down would allow things to catch up and bring normalcy to the city • If this activity was spread out over a number of years instead of having the Gold Rush syndrome it would provide a much more stable work force and infrastructure to the Province. • Reducing activity would reduce the environmental impact- Carbon emissions being just one example. • Delaying or pacing projects would allow new technologies to be developed thereby reducing pollution and making extraction more efficient and cost effective. One just has to look at what has happened in just the last 10 years or so. • As Peter Lougheed says a slow down would help the province manage its own resources at a sustainable pace. The government is accountable to is “Provincial Shareholders” • Accounting transparency should be the order of the day. • Simplified reporting • Regular forensic accounting of the industry should be on a quarterly basis to ensure we are getting our Fair Share I am in favor of moving forward on the Royalty Review suggestions. [Information Removed] |
| RRE3044 |
Don't unbalance Alberta's economy. Save our jobs. |
| RRE3045 |
What do you plan on doing about the amount of job losses so far, plus the amount of people that will be out of work if you go ahead with such a large increase on royalties. |
| RRE3046 |
The oil industry in Alberta is currently suffering. It is becoming more expensive than ever and less profitable. If royalties are increased, there will be very little incentive for these companies to continue operating here. Many Albertans make their livelihood in the oil industry and will suffer greatly if this industry takes it's business elsewhere. Help Alberta by protecting the oil industry and DO NOT approve the royalty increase. |
| RRE3047 |
I will be writing to the Premier as well, but wish to express my concern through this website. I appreciate the time and care government is taking in this matter. There are many places on this planet, and within our country, where a report such as this would have been gripped as a political weapon to further the short-term interests of the governing party. Not here. That speaks to a strength of leadership. I moved to this province from elsewhere. I did so because I admired what Albertans have been able to build over the past number of years. The stresses of growth are apparent, but I view them as challenges to be addressed rather than avoided. My understanding was that Alberta realized that progress and prosperity were desirable and led to benefits for all. That government should not be viewed as the protector or generator of wealth and that leaving money in the economy for reinvestment was key to the Alberta Advantage. I have read this report, along with the commentaries of internationally respected firms. This is a poor report. I hope the Premier will be straight with Albertans on that point. It may say what many want to hear, but it does not speak the truth. I do not suggest improper motives to the panel members. The Premier has my respect and I have a great deal of empathy for his present situation. I hope elected officials return that empathy when they consider people like me, with mortgages the size of the moon requiring a strong and steady economy to feed. This report should not be accepted and leaders should speak the truth to Albertans. The oil and gas industry has not been ripping people off. The success enjoyed by this province is due in large measure to the 275,000 men and women that work for the industry. I am one of them. We should not be made to feel as traitors to our own. In conclusion, I also wish to express support for the people of the Energy department. I do not know them, but I do know the commitment of the civil service and the trials work within government brings. The treatment of the civil service by the panel and Auditor General was appalling. Again, I hope leaders will step forward to say thank you to the people that supported the panel and then silently endured a public slap in the face. It was unacceptable. I rarely write emails or letters to government and I never disclose how I intend to vote. Please know that my views on this matter are strong, and my anxiety high. Thank you for this opportunity. An Alberta Citizen |
| RRE3048 |
I was very concerned when I heard that the Alberta government might adopt the recommendations from the Royalty Review Panel as stated. I think a proper balanced analysis of the situation will show that if the government adopts the recommendations, then there will be far reaching negative impacts on the Alberta economy in the short and long term. This will affect the lives of many people living in Alberta including me, my family and my friends. I think the government of Alberta needs to take a step back and engage the key stakeholders, including appropriate representation of the oil and gas industry, in a meaningful discussion on how to develop a win-win-win solution (i.e. for government-industry-citizens of Albertans). If this not done, I fear this will cause Alberta's vibrant economy to go from "boom" to "bust" and I would not support any government that is the catalyst for this. As a tax paying residence of Alberta, I request that you exercise due diligence and revaluate all the options before making balanced decision that is best for most people in Alberta. I would like to know how the current government is going ensure the any action it takes as a result of the Royalty Review Panel is not going to negatively impact the majority of Albertans, who are supported by the Oil and Gas Industry. [Information Removed] |
| RRE3049 |
I have seen a marked increase in house listings, wells & projects get cancelled as well as received a 20% pay cut as a result of your royalty review report. Thank you very much? |
| RRE3050 |
i work in the oil industry, and i think they should pay higher royalty fee's due to the fact that oil is a non renewable resorse . when its gone trust me ,the investors,oil company's will be long gone....leaving a new generation of albertains to clean up the mess...lets get the royalties, so we can invest for the future of all albetians,and try and find new solutions for the future.i am sure if we raise the royalties, the oil companyies will try and prove a point by slowing exploration,but we have perservered before .....[ cuts to pay off our dept ]...and we will make it through again...knowing that its not the past, but the future we have to look out for...............thank you[Information Removed] |
| RRE3051 |
Sir, As an oilfiled worker of 12 years, I do not understand why you would choose now to go after these companies for more money. If production slows, I will lose my job, my house, my investments-my entire way of life. In one of your articles it states that these new royalties will benefit Albertans for years to come. My question is how is it going to benefit my family right now? I have already lost 1 home caused by the oilfield "slowing down" I do not wish to lose another. I don't belive you have the "average Albertan" in mind. I believe you have your own interest and those of big business that will in the end somehow benefit YOU. Why would you try to damage this economy. Why would you try to steal what my wife and I have already worked so hard to build? Show me how these royalties would benefit Albertans.I'm not asking how this would benefit the east, or how that would help YOU and YOUR party in the next election. Mr.Premier, I honestly belive that you are way too far removed from the "average Albertan" to even make a decision like this for our province. Let's have a vote on it, inside our province only, and then you would see exactly what us "average Albertans" think of this idea. I am against your royalty plan, everyone I talk to is against your plan. how is this moving forward? If you want to bankrupt my family and thousands more just like me, then go ahead. You will become the most hated Albertan in our amazing history. [Information Removed] |
| RRE3052 |
Dear Mr. Premier, While I'm sure this email will never reach your desk, i'm hopeful that my views and opinions in this email will be considered by your panel of policy makers as you arrive at a decision to the recent Royalty Review. As a concerned citizen of Alberta, i respectfully urge you to exercise common logic when you are faced with arguments from both sides. My reasoning is as follows: - While it is easy for Albertans who don't work in the energy sector to criticize the big bad O&G 'fat cats' for making so much money off of Alberta's resources and giving so little back, they should consider that there is a considerable amount of risk that stakeholders put into developing these resources. People fail to take this into consideration when making statements like the above. The theme of the Alberta Royalty Review is "Our (Albertan's) Fair Share. My question is... what is so fair about the gov't punishing an entity who has profited from assuming great risk, by arbitrarily increasing the royalties? Is anyone sympathetic to energy companies when they drill unsuccessful wells, or when oil & gas commodity prices hit rock bottom? Companies of the O&G industry, just like companies in any other industry has a right to enjoy the fruits of their labor without being punished by the gov't. - if you are an Albertan, regardless of what your occupation is, the chances are that in the last several years, you have benefited from Alberta's booming economy which is driven largely by the oil and gas sector. while these amounts may not always be obvious, they are certainly there. examples include increased wages, increased funding in education, medicare, municipality development, increase in property value, money handed out by the gov't (energy rebate cheques from last year), etc. The point is that if people haven't realized how much the oil and gas sector has benefited this economy in the recent years, the chances are that they won't realize the benefits even if the royalties are increased (in the unlikely event the the gov't does succeed in creating more revenue from the energy sector should this royalty increase take place) . - a 5-17% royalty increase on severely decreased chunk of investment capital by companies will most likely result in a decline in government royalty revenue. As you are aware, several big name players in the industry including EnCana, Talisman, ConocoPhillips, CNRL, among others have announced plans to cut project budgets drastically if this royalty increase is approved. if you who feel that these companies are bluffing, you should know that corporations value their integrity and I don't feel that they would risk their credibility with the public by throwing empty threats at the gov't. - Aside from the lost revenue that the gov't will have to absorb, if this royalty regime is approved, Alberta will also face a widespread umemployment crisis, something this province has not seen in more than a decade. The lack of employment will not be resticted to the oil and gas industry, but all businesses across Alberta will be impacted due to the trickle down effect caused by a general decrease in spending by all. Sound familar? yes this is a defining characteristic of a STRUGGLING ECONOMY. In summary, i think the gov't needs to consider whether this Royalty Review is truly based on fair compensation to all Albertans or whether this is based on appeasing those who don't support the Alberta O&G sector. If this debate is based on the former, then i feel that the O&G sector has paid more than its fair share to Alberta considering the job creation, market stimulation, royalties paid, land sale bonuses (approx. $3 billion dollars in 2006) and countless other intangible advantages. I firmly believe that the general public needs to be re-educated about what corporations do for this province and perhaps then, they may understand that they have been receiving their fair share. |
| RRE3053 |
The Provincial Government's recent decision for a Royalty review seems very short-sighted. Although big oil and gas companies have had very good revenues in recent years they are now experiencing a slowdown and would be very negatively impacted with the proposed 20% increase in revenues. This would most certainly hurt those companies that have made Alberta so prosperous in recent years. My concern is for the employees of the big and small energy companies and all the service companies that depend on their business. I believe it is vital for the government to slow down and fully understand the consequences of their actions prior to implementing these changes. We all remember the NEP of the 80's and the devastating impact it had on our economy. Let's not repeat that mistake. Concerned. [Information Removed] |
| RRE3054 |
There is no amount of royalty large enough to allow the continuation of the unreparable destruction, damage, and devastation oil extraction is immediately causing the earth, water, wild life, and plant life; let alone the ongoing and future repercutions of this industry throughout our province and the world. Please stop this. |
| RRE3055 |
I would like to provide feedback : strongly support royalty review report |
| RRE3056 |
My name is [Information Removed], I am a small sub contractor [Information Removed]. I moved to Alberta from BC over 6 years ago in hopes of a better future and the promise of a strong economy in which I would be able to thrive and lead a better life. I the past 6 years I have managed to go from a labourer to a supervisor, from renting to owning a home, as well as being able to afford to travel and buy things i never thought possible prior to moving to Alberta and for all of this I am very thankful and therefore proud to have become an Albertan. As of late things in my field are becoming very scary due to this outrageous proposal, I know myself that "stressed out" is an understatement for how myself and a very large group in my town and industry are feeling. The economy in Alberta is already slowing down due to the recent spike in our dollar and a large portion of the oil and gas industry being american, maybe this should be shelved until a more suitable economic time. I hope everyone else in my situation isn't just sitting at home afraid to speak their mind, and more so that these proposed actions are shelved, if not I would like to leave you with the title to my property and the rest of the items I have financed one I'm forced to file for bankruptcy at 26yrs old. |
| RRE3057 |
Our thoughts and feedback on the Royalty Review Report As seen by the directly effected. You always hear concerns about what the Oil & Gas industry did to the housing market and how there is a housing crisis, again caused by the Industry. However, did you hear about how Oil & Gas contributed to a 15 Billion dollar Heritage Fund? Did you hear what the Oil & Gas Industry has done for Alberta and local communities? In my opinion the bottom line is the Provincial Government is upset about the losses of Royalties due to the increasing dollar. During the last election there was extensive media coverage regarding Affordable Housing and the Recycling Program, however where was the Media coverage of the potential “bomb” that is about to be dropped on Alberta and cause mass destruction? All because of the Government is looking for a solution. If the Government puts forth this increase, this may cause many Albertan’s to have to go bankrupt which may cause a lot of mental/emotional stress on people, families, marriages, children and the general health of the directly effected. However, many will be affected because most live in a financially extended society and these homes, toys, vehicles etc. will end up going back to the banks and these monies owing on them are higher than the values itself. The banks will have to compensate for their losses which will result in an increase of interest and in turn drive up payments. Thus again may result in more people being unable to provide for their families and keep a roof over their heads. Some people may have insurance to cover financial loss or if in-turn life insurance, might be required to be paid out, due to extreme stresses, that too will then cause insurances to increase. Have we even touched on the full extent of the mushroom effect of what will happen? There is 30 billion dollars in reserve, stop looking for a short term solution for the increase of the Canadian Dollar. Every increase of .01 cent = 1 Billion dollars of lost Royalties. Albertan’s should not have to pay for a prosperous Canadian dollar. Idea: What about an Oil & Gas Alberta Infrastructure Program to support the housing issue crisis fund? 1. Loan 5 Billion to “the Fund” from the Heritage Fund; 2. Oil & Gas “the Fund” to repay within 1-2 years; 3. This gives 1-2 years to re-access Royalties with proper knowledge; 4. How you disburse “the Fund”, TBA. This way it would be a win, win, win, win situation all around. In conclusion there is 30 Billion dollars in Alberta savings. This I imagine is called the “Rainy Day Fund” if you proceed with the current review recommendations……. ……………………………………WELL ALBERTA??????????????? WHERE IS THE ARK!!!!! (translation: cause it is gonna pour) Please put a freeze on the devastating destructive proposal and hire a new panel with industry knowledge and start over. |
| RRE3058 |
I think the report should be implemented as a whole. It is about time that the Goverment of Alberta gets on side with the people of Alberta instead of catering to the interests of big oil companies. |
| RRE3059 |
Hi. My name is [Information Removed]. I live in Calgary. I [Information Removed]worked in the oil industry for 13 years. I now work in the non-profit sector helping families going through separation and divorce. I don't have time to read the entire report, so I'm not as informed as I'd like to be on this enormously important issue, but I have looked through the report and read parts of it. It's my understanding Premier Ed Stelmach initiated the royalty review and I thank him for that. I read the information on each of the panel members, and individually and collectively, it appears to be an excellent panel. I am certainly in no position to challenge, question, or second-guess their recommendations, and I suspect that the premier and energy minister do not have the expertise to do so either. In the September 25, 2007 news release, Premier Stelmach was quoted as saying, "We understand the importance of stability and certainty for industry, and the importance of maintaining competitive fiscal and regulatory regimes," said Premier Stelmach. "We also understand that Albertans expect to receive long-term benefits from Alberta's energy resources. Our response will balance these perspectives." From what I've heard and the parts of the report that I read, it appears to me that the panel already went to great lengths to balance these perspectives. If Premier Stelmach and the government choose to deviate from the panel's recommendations, those deviations will need to be very, very well supported. I want a government that appoints highly qualified, balanced, non-partisan panels to provide recommendations on complex issues, and then promptly impliments those recommendations. You're half way there and your next step will be the single defining thing for me at the next election. Drop the ball here and I'll move my vote to the party that I think might be willing to appoint good panels and then promptly implement the recommendations. Sincerely, [Information Removed] |
| RRE3060 |
I am not associated in anyway with the oil and gas industry, but I feel I have to let you know what I think of this Governments plans to increase royalties. This Government is now flush with money, and has a hard time spending all the money that they have taxed out of just about everything you could possibly think of without giving anything back to the people of the Alberta. Now, because of just pure greed, someone came up with the idea we should try and grab more money from the oil and gas industry by increasing Royalties. I would like to know who the bonehead is who came up with this cash cow? Since announcing the proposed plan to increase royalties, all of the energy stocks on the TSX have taken huge drops, and many huge companies that employ thousands of people, are cutting back on their budgets,threatened to pull out of Alberta, and literally thrown the whole industry into turmoil. LOOK AT ALL THE HUGE SURPLUSES THIS PROVINCE HAS SEEN IN THE PAST 10 YEARS, AND TELL ME WHY THIS GOVERNMENT FEELS IT IS NOT ENOUGH. I think its time for a change of Government, and cannot wait for the next election so we all can show this current Government what we think of them. I have never voted Liberal in the past, but I can guarantee they will have my vote in the next election. This Government is nothing more than a cash grabbing, money hungry, self centered group of individuals who have worn blinders for far to long, and needs to be voted out of office. I will do everything I can to try and make this a reality come election time. [Information Removed] Spruce Grove, Alberta |
| RRE3061 |
I am concerned about the good possibility that implementing the proposed changes will put the Alberta economy into decline and result in lower energy industry activity, lower property values, lower emplyment levels, lower income tax collected by the province resulting in lower infrastructure spending by the government. I have a special-needs child that requires a high standard and level of care that we have enjoyed in Alberta for the past several years. I am concerned for my job, my value of the house relative to the mortgage, and the possibility that the royalty changes may force my family to move to another province where the cost of living is cheaper, but the special-needs hospitals for kids may not be as good. I prefer that the premier leave the royalty rates unchanged and let industry continue to spend that 2 billion dollars into the economy where the citizens will benefit the most from re-investing in the AB economy. |
| RRE3062 |
Alberta has been undergoing an unprecedented march of prosperity and growth over the past few years, benefiting both the government and the citizens. Why try to fix this situation if it's not broken? There is a lot of fear in the eyes of the people who work or support the oil industry. Whatever is done should be done quickly before panic results. |
| RRE3063 |
I am the Quality Manager for [Information Removed]. and we employe over 150 people who work to provide safety services to the oil industry. Any slowdown by the major oil companies affects our personnel immediately. If the current oil royalty structure is changed to the format currently recommended, the oil companies are stating that we will experience a slow down of a magnitude not seen in this industry for years. I want you, the representatives of the people, to realize that this will be a fact if you don't listen to the concerns that the oil companies expressing. [Information Removed] does not want to be put in the position of having to terminate good people, the same voters who put you into office, because of what boils down to a huge oil industry tax increase generated by the current government of this province. |
| RRE3064 |
Please leave the royalties alone. I believe the government and the people of Alberta are currently receinving their"fair share" |
| RRE3065 |
I understand that the oil companies will make less money and therefore have less to invest, HOWEVER under the current scenario the balance of investment is way out of balance. Investment is being made into further development of resources that do benefit Albertans through royalties and taxes, as well as companies who make those investments through increased or sustained production (and thus cashlfow). But the investments many other areas of sustainable growth is lacking - investments in communites through infrastructure to support the increased development is far lagging. We do not see the resource companies stepping up to build much needed roads, hosptials, and schools, not to mention services to support the communities. The government not only needs the revenue to provide these services, but we also need to be thinking about the future generations who are not DIRECTLY benefitting from this rapid expoloitation of the resources. A very relevant saying by a first nations elder that goes something like; think not that we are inheriting the earth (and it's resources) from our ansectors, but that we are borrowing it from our descendants. I support some increase if royalties on oil and gas, that balances the cost of production relative to the extraction rate (some decrease in royalties as suggested for lower rate wells is appropriate), with the price. Thanks [Information Removed] |
| RRE3066 |
I want to say that I fully support the Panel's recommendation to increase royalty rates...I believe this is a great opportunity to benefit from the good fortune this province has been afforded thanks to a bounty of natural resources. I hope the government does not cave in to industry pressure, because the province holds the leverage here, don't forget that. Oil and gas companies need Alberta more than the province needs them; where else will they go? They will not leave if rates are raised, I believe, because our massive energy deposits are not going anywhere and Alberta remains a stable investment region, politically, financially and socially. The oil and gas industry is simply looking out for their best interest, which is understanable, however it also does not mean all of their doom and gloom scenarios would come true either. I believe the Panel was fair and did their homework, so I trust that they struck the right balance between the province benefiting from oil while maintaining a great economy. We must receive more for our resources; it is embarrassing to read that most other jurisdictions receive more than this great province. Lastly, in response to the argument that the government should not interfere in the market; with royalty rates currently so artificially low, the government is already interfering in the market. Abnormally low royalty rates are essentially a form of subsidy. The boom being experienced in Fort McMurray and elsewhere is proof that rates are too low; the mad scramble to develop up there stems from the fact that profit margins here are relatively higher than many other jurisdictions. Raising them slightly may decrease revenues in the short-term, however it will ensure a longer stream of revenues over the medium- and long- term, and will give regions such as the RMWB a better chance to catch up and grow at a more comfortable, sustainable pace. Thank you for assembling the Panel and reading my long piece of input! We only get one chance to make the most of our good fortune, we can't just give it away to a small few; make this right, and let all Albertans (today and those in the future) benefit. Thank you, [Information Removed] |
| RRE3067 |
I read the report. Its conclusions are reasonable. The industry submitted little information, and recommended van Meurs as a way to compare. They don't like the updated van Meurs but can hardly be surprised at the result. |
| RRE3068 |
History is repeating, the last time the oil companies went else whare you couldent get a job. I dident see the government helping them out when oil was at $40/barrel. This is what is making Alberta boom, I think that the government is making alot of surplus now lets not get greedy. |
| RRE3069 |
The Government of Alberta has a tremendous responsibility to the citizens of the Province. These include but are not limited to: 1. ensuring a stable, efficicient, legal and regulatory environment; 2. ensuring proper infrastructure and services are in place to support the economic prospects of the Province; 3. recognizing that the Alberta Advantage starts with a free market economy, less Government and lower taxes. The Royalty Review panel had none of those responsibilities. As a matter of fact, they as much state that they did not consider them. The panel ignored basic information that was supplied to them by industry, information that is in the general public domain, and the panel unbelievably ignored basic principles of investment, risk, and legal fairness. The report simply lacks credibility at any level as an instrument for the government to rely on, unless it too wishes to ignore its responsibilities to its citizens. Your Government - in which I include previous administrations, was warned for years regarding the need for and the pressures that the Alberta Economy would be facing especially in the oil sands area - yet chose to ignore to take proactive steps. It is shameful politics that this Government now seeks to shift responsibility for these strains to its citizens and those free market participants who have invested in Alberta. Ours is an integrated economy - not a third world economy. Our citizens work in, have investments in, and have pensions plans which are invested in energy companies and supporting businesses - everything from steel to furniture to computers to oil field service companies - this applies right across Canada. Increasing government take is not free. It removes the value from these companies, which in turn will effect jobs and investment, which will diminish everything from property values to financial investments. Surely the Government of Alberta is not so naive as to implement anything without fully understanding the macro-economic effects it is about to unleash. It is true that as commodity prices increase there is an opportunity for higher Government take - but government take must be in context of the economics of the industry. What seems to be lost in the debate is that the energy industry is a cyclical commodity based business with a significant risk profile. Long forgotten are the downturns when the economy rapidly contracts displacing workers and destroying capital employed. To attract capital / investors, there must be a return on capital commensurate with that risk. Royalty structures which reduce revenues prior to profit are punitive and discourage investment becasue they are not sensitive to market movements. For Alberta to attract the investment required to develop its remaining high cost resource, the incentive must remain to achieve a quicker payout, after which investors would be kept whole even if stronger commodity prices prevailed and higher takes were made on an after profits basis. In Albert we have always prided ourselves on hard work and an entrepreneurial spirit. We seem to have lost our principled way in the never ending grab for something that appears free. If our citizens were attacked as to his or her basic expectations to live and work in Alberta as the report does to the energy industry, there would undoubtedly be civil unrest. Indeed, the energy industry is apparently made out to be some faceless, uncaring entity. In fact however, it is made up of the very citizens the govenment believes it is trying to protect. |
| RRE3070 |
As a very concerned Alberta Citizen, I thank you for the opportunity to share my opinion about this Royalty Review. I was born and raised in Calgary and am proud to be able to work in the Oil & Gas industry as an employee of [Information Removed]. I am very concerned that the implementation of the Royalty Review will negatively impact my job, my family and my province! I don’t believe the review provides a balance between what is fair for the Province and what will work economically. If the impact on the Oil and Gas industry causes the companies to move their investments out of Alberta then how many Alberta families will be impacted by job loss. So many families in Alberta are affected by the Oil & Gas industry? Please consider all of the supply companies and industry / construction companies, all the maintenance companies, what about of the cleaning companies and technology companies. Every Alberta family will be impacted if the money to invest in Alberta projects is turned elsewhere. We have already seen the Oil & Gas companies shift their focus in 2006 / 2007 away from conventional drilling because the cost was not effective to purchase / rent from the supply companies. We have already heard the impact statement from Encana to remove a third of their Alberta investment dollars. Our company is able to adapt to the market however I don’t want to see them have to adapt to projects outside of Alberta. Thank you for listening to the concerns of the people of Alberta. Please continue to work with the Industry to arrive at decisions that will work for everyone! Sincerely, [Information Removed] |
| RRE3071 |
Albertans own 100% of the resource and the royalties paid by oil companies should reflect that. The royalty regime that made sense when the profitability of the oil sands was still largely unknown no longer applies and should be substantially revised. |
| RRE3072 |
I do not beleive that a freeholder lease holder should have the tax up to 100%. The tax should be abolished for the mineral lease holder for oil and gas. I would like to my comment on Encana trying to take the royalties away form lease holders of CBM gas.The alberta goverment pride itself as goverment for the people of alberta so stand up for us instead of big oil companies. |
| RRE3073 |
You have lots of messages to read. I believe you will find this one worth considering. If you mind is already made up, watch out. Please give serious open consideration to at least one more view. It is still within your power to choose. My prayer for you will be open to listen without prejudice, discernment of truth from lies, courage to do what is right even if it is counter to the prevailing popular view, and make choices that looking back from 10 years out will be determined to have been wise ones. Undoubtedly there have been significant changes in Alberta's Energy Industry since the current royalty structure was designed. Capital and operating costs have increased, commodity prices have increased, infrastructure options to market gas and oil have been built, while size or new pools and production rates have fallen. And we all understand that oil and gas prices are a roller coaster ride, cycling up and down sometimes very quickly and sometimes more steadily. We are living in an interesting time in Alberta where high oil and recently (not currently) highl natural gas prices have driven up activity to historic levels in all facets of the economy. That's been a positive experience for many Albertans. It's been less desireable for others. And the overall sense that I get is that the pace of activity has been unsustainable and inefficient in most sectors and most regions, but clearly not all. Please consider consequences that I anticipate will occure if the proposed royalty methodology and changes are adopted: 1. If implemented, ti will send a "sunami style" shock wave through the economy like hasn't been seen in over two decades. The first impact is that oil and gas activity across the board will drop by 30-40% as economics for projects simply will no longer attract investment. This will drive down labor and materials cost eventually, following a reduction in work force and spending. It will rapidly trickle through the economy driving down property values, spiking mortgage defaults and bankruptsy. There will be widespread disillusion and some may even try to blame the energy companies for doing this. And then even more mistakes will likely be made to further punish them. A deeper wedge will be driven between government and industry along with a demand by the public to politicians to fix it and get their jobs, savings, and homes back. Politicians will likley be unwilling to take responsibility for a poor policy decision, but will instead point to industry as the cause of the new problem. The politicians may even suggest taking over the resources to develop as national assets, to invest and create jobs. And at that point, it may take that because only the provincial and federal governments will have the economic incentive to invest. And that will result in the tragic loss of the true Alberta Advvantage, the loss of entreprenureal risk takers engaged in persistent invovation and profitable development. The entreprenuers will be at risk of extirpation. 2.. On a more practical note, natural gas has been the big driver fo activity, royalty, and land sale revenues. With low natural gas prices, elimination of the income trust tax advantage, and now both increased royalties plus eliminated deep gas holidays, the natural gas development is simply going to be stifled in Alberta. The gas will come to North America, but by LNG tanker, instead of from Alberta. Natural gas is the commodity that is the most volitale in the world. More thinking and scenerio tesing need to be done to develop a royalty structure that aims more of the profit during high spikes in natural gas price to government, while protecting producers during downturns and incentivizing deep pool exploration and development. Activity is already way down in the conventional gas side of the business. This willl snuff out the smoldering wick in broad regions/categories of natural gas drilling. 3. A longer term projection that I anticipate is that entreprenuers and even large corporstions with high percentages of Canadians in leadership/management positions will sell out of devalued companies to foreign investors from oil rich countries of the middle east. I cannot say how that will benefit or harm Alberta. It will change much around Alberta, including the political leaders and priorities. 4. Alberta's integrity towards oil and gas investors is in jeopardy as well. Please read this and reflect on how any future investor will have to make economic assumptions that assume the Alberta government will either choose to increase its take or to prematurely expire a lease in the future. To the extent that this report is adopted, Albertans will see lower land sale prices going forward and a higher threshold rate of return for any investment because of the higher fiscal risks. Please proceed with your eyes wide open and don't dismiss these above thoughts. This is not going to be a small smooth soft landing as is being forecasted. And I don't believe it is going to make Albertan's wealthier in the process. I do believe that a change is in order. This however is not the approach. A lot is at stake here. Take time to get it right. Regards, [Information Removed] The poplular bias is to not trust the energy companies. I suggest you listen to them. And if you choose to not listen to them, be prepared to hear a lot of "I told you so's" for a long time. |
| RRE3074 |
I fail to see how what is being proposed would be in the best interests of albertans. I have a question for the panel; do you honestly think an increase of 2 billion dollars in revenues will even cover the unemployment insurance needed to be paid out when thousands of people are unemployed because of this? With major oil and gas company drilling less wells because fewer are viable an increase of 2 billion dollars a year if production remains the same is very unrealistic. If the oil and gas sector in this province starts to suffer so will all other sectors because of the shear number of people employed in the oil and gas sector, they are the customers at our retail stores, the home buyers and the new people moving to our province. The report reads like albertans are getting less than the companies but you must take into account that many albertans are earning an income from these companies in addition.Yes we need change and an increase for albertans but what is being asked for is too much and this should be a negotiation between the province and the companies. |
| RRE3075 |
Do NOT accept the Royalty Review Panel |
| RRE3076 |
Follow Petro-Canada's recommendations. They make the most sense. To accept the flaws within the Royalty Review Panel's Report is just plain stupid. |
| RRE3077 |
Dear Sir or Madam, As a long-time resident of the Province of Alberta I am writing to list certain concerns I have with respect to the Alberta Royalty Review Panel Report (the “Report”) currently being considered by the Government of Alberta. Please consider the following: Transition Pains If the Government accepts the Report in its entirety without any consideration to mitigation, transitioning or phasing-in it will significantly chill the oil and gas industry in the Province of Alberta. There is no dispute that the oil and gas industry needs a measured slowdown in order to control escalating costs and inefficiencies; however, the approach proposed in the Report has the potential to cause significant transition pains with potentially adverse long-term effects. In essence, implementing the Report as a whole over a short timeframe will precipitate significant restructuring in the oil and gas industry (both for producers and service providers alike) over the short to mid-term but which may also potentially damage the industry over the long-term. The costs to Albertans will be significantly greater than the potential gains while the competitiveness of Canadian oil and gas producers will be diminished thus opening the doors of opportunity to a select few foreign oil majors and state owned oil entities having access to assets and capital which greatly exceed what is available to their Canadian counterparts. Faulty Assumptions The Report applies a number of assumptions which do not accurately reflect the status of the oil and gas industry. One key criticism is that the cost data used in the Report is nearly 2 years old; however, and more importantly, the notion that accurate comparisons can be made with other jurisdictions has serious flaws. For instance, when we compare operating cost structures, tax structures, physical access resources, costs of labour, materials, etc., in Canada against jurisdictions in the Middle East it is easy to conclude they are completely dissimilar. For instance, jurisdictions like Saudi Arabia and the UAE have plentiful access to affordable labour from South Asia (i.e., India, Pakistan, Nepal, the Philippines, etc.) which is coupled with industry favorable regulatory and operating environments where Occupational Health and Safety and Environmental requirements are very relaxed at best. I do not believe we can make accurate comparisons with jurisdictions where it is easy to find labour to perform services at $5 per day in extreme heat and living in squalid work camps. I can attest personally to these facts having lived and worked in Qatar and Saudi Arabia for nearly 5 years and having befriended some of the lowest paid expatriate workers in those countries. Conversely, we are unable to find tradespeople in Alberta to perform similar services for $30 per hour in reasonably clean and safe working and living conditions. I believe it is safe to say that we cannot simply compare the so-called ‘government take’ between various jurisdictions without considering the complete picture in each jurisdiction. The Panel Another concern on the Report is with respect to the panel participants. The distinct lack of specific industry experience and almost complete lack of participants from relevant oil and gas sector companies and governmental royalty administration bodies is a significant shortcoming. Involving participants from other sectors is relevant and provides a fresh perspective; however, it is important to involve participants that have specific experience in the implementation of royalties in an industry context in order to understand precisely how government and industry react to such matters. For instance, it is not possible to consider the issue in a vacuum separate and distinct from other taxes, operating costs, exploration and development regimes, financing programs, etc., all of which are relevant to government and industry alike. Who Gets Hurt? The Report, and the overwhelming public sentiment, seems to imply that cash flush oil and gas exploration and producing companies would bear the impact of any proposed royalty increase. This is clearly incorrect, particularly over the short to mid-term timeframe. Increasing the cost of doing business in any industry by even 5 – 10% over a short period of time may seem to be a modest and acceptable increase; however, the fact is that it will hurt producers and service providers alike. In short, in order for industry to react to such an the increase it will have to slow down or even freeze programs over the short to mid-term period until it is better able to consider the long-term ramifications of the applicable royalties. The greater the increase the greater the likelihood of employee lay-offs, cut backs in production, exploration and development programs, restructuring of assets and debt, and, importantly, reduced need for support services. The list of service providers that support the oil and gas industry is literally endless including truckers, tradespeople in all areas of expertise, drillers, forest industry workers, garbage haulers, food and lodging providers, excavators, safety providers, etc. Many service providers have incurred significant debt loads in order to acquire the staff and resources they assumed would be required to service a strong oil and gas sector. If the Report is implemented in full it is reasonable to conclude that thousands of those contractors, both big and small, will be unable to service their debt which will lead to a deluge of defaults, repossession and liquidation. This is not to speak to the individual Albertans that risk becoming unemployed and consequently unable to service payments on their personal property and real estate. Moreover, Albertans should expect an inevitable increase in crime if an economic downturn occurs. Big Players and Capital Flight One of the advantages of the Canadian oil and gas industry is that it still facilitates “home grown” Alberta oil and gas exploration and production entities to flourish. This is true for all players from individual wildcatters to major corporations and trust structured entities. If the Report is implemented over a short timeframe this will invariably increase M&A / A&D activity in the oil and gas sector; however, this will likely benefit large offshore entities since Albertan/Canadian players will be unable to restructure their assets and debt bases quickly enough in order to remain competitive with their foreign counterparts. In particular, oil sands projects are by their nature very capital intensive. Canadian entities are specifically disadvantaged for those projects since they will be unable to secure debt and equity financing that can compete with assets and capital available to US and European oil majors (i.e., Exxon or Total) or with state owned oil companies (i.e., Abu Dhabi National Oil Company or its subsidiary ‘TAQA’ or the Chinese National Offshore Oil Company (CNOOC) to name a few). Those foreign oil players can effectively secure assets with lower rates of return over longer periods of time and it is reasonable to conclude that they will be in the best position to further expand their diverse asset bases by purchasing reasonably priced assets from failing Alberta oil companies. It seems unreasonable that Canadian companies need to fall prey to foreign entities or that Alberta based assets and revenues should be encouraged to leave the country. The matter is even more galling when we consider that foreign state owned oil companies might own such resources in Alberta although there is no reciprocating right for Albertans to own, acquire or dispose of similar resources in those jurisdictions. This is certainly the case for Middle Eastern state owned oil companies which are owned by and generate revenues for the hierarchical monarchies ruling those countries. Other Revenues Diminished The Report assumes that the net benefit to the residents of Alberta will be in the range of $2 billion per year. Superficially this might seem correct, however, it falsely assumes that all other factors will remain equal. The Report’s proponents believe that the revised royalties will give the Province a bigger slice of a large pie. There is significant and warranted criticism that the outcome will actually be a bigger slice of a smaller pie. The perspective of industry is simple, active markets for goods and services produce positive cash flows. The Government’s perspective is different, however, since its aggregate revenue does not only come from royalties but also in other forms such as land sales, corporate and personal income taxes (both Federal and Provincial), GST revenue, municipal/county taxes, regulatory fees and permits, registration fees and levies, etc. In principle it would seem that the aggregate benefit of increased royalties to Government should at least be equal to or exceed what could be obtained under the current royalty regime. This, unfortunately, is not readily apparent, either explicitly or implicitly, in the Report so it is reasonable to argue that the net benefit to the Province could be less if a royalty increase is imposed hastily over the short to mid-term timeframe. The ‘Third’ New Tax The oil and gas industry is still in the process of reacting to 2 other significant developments, namely: (i) the imposition of a revised taxation scheme on income/royalty trusts, and (ii) the inevitable imposition of greater financial accountability for greenhouse gas emissions and clean air requirements. By significantly increasing royalties now the Government will have imposed a third new tax on the oil and gas industry over a period of less than one year. This type of ‘triple whammy’ not only decreases confidence in the investment climate in Alberta but it also forces industry to step back and reassess its projects and, quite reasonably, restructure in order to apply new metrics to those projects. The conceivable outcome (as I have mentioned above) is that industry will simply sell off the assets or undergo painful short to mid-term transitioning that will invariably hurt producers, service providers and ordinary working Albertans. Unpredictable Windfall One consideration that is being overlooked is that the oil and gas industry is currently experiencing an unprecedented windfall in prices. Since 2004 there has been considerable volatility in the oil and gas markets with extreme price fluctuations occurring for those commodities. During that time, natural gas hit all time highs only to retreat to current lows that have caused producers to significantly withdraw proposed exploration and production programs while also further hurting the profitability and viability of natural gas service providers. Oil has clearly seen significant and dramatic increases in value but has steadily stayed within the $40 to $80/barrel range during the same timeframe. This price boom is in part the result of increased demand but is also largely attributable to unpredictable geopolitical pressures. Any analyst of market fluctuations would be remiss, however, if he/she did not also consider the severe depressions in the oil prices that occurred in 1999 when it was trading in the $11/barrel range. In short, oil and gas, like wheat, metals or any other commodity, is subject to price fluctuations based on global pressures that are not squarely under the control of the Alberta oil and gas industry. It is therefore impossible to predict how long prices will stay high. Although the industry stands to benefit from recent windfalls in pricing it has simultaneously invested significant sums into projects (particularly oil sands) while also incurring rapid escalations in costs with a view to bringing projects on-line as soon as possible. An additional cost shock, like a rapid increase in royalties, will only add to the pressure by forcing industry to reassess investment objectives and returns. The pressures will only be further exacerbated and the boom will, of course, be very short lived if even moderate increases to royalties are coupled with a retreat in the price of oil. * * * * * As the Honourable Premier has mentioned, cooler heads must prevail over the consideration of the Report. It is my fondest hope that the Government of Alberta will reject the Report with a view to revisiting the issue with a more sensible phased in approach that will preserve the interests of Albertans and the viability of Canadian oil and gas entities rather than ‘outsourcing’ this necessary and finite resource. |
| RRE3078 |
I have worked as a supplier for an alberta manufacturer in heavy industry, oil and gas and with service and drilling companies for 26 years. I also am a supplier to the oilsands industry as are most manufacturers in alberta. The oil , heavy oil, and natural gas industry cannot take too large of a hit, if any, from our own government with regards to royalties. Here is why.I see it and deal with it everyday. For the past 10 to 12 months, drilling and service companies are running at 50 % or less, and in some areas such as grande prairie, the hurt is even more. Many of our clients are running on borrowed money and venture capital in the hopes for a turnaround. Adapt the recommendations and you will see many of these companies fold and the jobs with them. Raising natural gas and coventional oil royalties will only further erode confidence and investment in this area. The Energy trust hit last year by our federal governement took massive amounts of drilling and exploration capital off the books, we have low natural gas prices, and increased competition from other countries around the world who want to attract investor and oilfield exploration and development away from canada. Leave conventional oil and gas royalties alone. Add a 20% royalty hit to the oilsands (the only truly busy area left in the patch right now) and you have a recipe for killing the industry that caused the growth that your government wants to continually tout as the alberta advantage. In our family alone there are 5 people employed directly in the resource business as are 1 in 6 albertans. I don't think I am exaggerating to say at least 3 more of those probably work in businesses that will take a major hit if the petroleum resource business in alberta is devastated by its own government. I lived through the NEP when I first started in this industry and it was not pretty.To have our own government kill the goose that lays the golden egg would be one of the biggest political blunders in alberta history. I am a proud albertan. We already recieve 10 billion in royalties. Will 2 billion more really make that much difference if there are massive job losses and investment dollars flowing oversees instead of here where they should be? Think of the real estate market and the home values dropping as unemployed oil workers simply give the keys to the bank. It can and will happen and the fallout will affect us all. Manage our money better. Take a small increase over time if you must to alleviate the political pressure from those who do not understand that their own prosperity is at stake. Ed.....lead. Take a stand and the oil patch and its workers will support you.Do not give in to those who have blindly reaped the benefits of our resource boom , but see oil and gas industry as nothing more then big business there to be robbed for their own political agendas. We take the risks, employ the people and need a fair return on investment or that investment will go somewhere else in the world. I have worked oversees and seen firsthand how much more economical resource investments are in developing countries. Big oil will go there if they cannot operate here. NO to the royalty review recommendations in their present state. Don't mess with a good thing. |
| RRE3079 |
In an already failing market raising the cost for oil companys would surely spell diaster for all of Alberta |
| RRE3080 |
DO NOT LET THE ENERGY INDUSTRY SWAY YOU!!! You must not compromise! Accept the full report! |
| RRE3081 |
[Information Removed]Calgary, Alberta, [Information Removed]Phone [Information Removed][Information Removed]@telus.net October-4-2007 Alberta Premier Ed Stelmach Dear Right Honorable Premier, Sir I as many Albertans believe what you have embarked upon have cost me money. This money would have been used for among other things my retirement and funding my contributions to charities and political parties. Sir I am writing to you on behave of my relatives like me feel that investing in Alberta is a sound business decision. We are concerned that your government is heading to down a road where we will have to invest in other jurisdictions to make enough money to retire on and or live on today. It will take years before we will reinvest in the Alberta companies if you make this decision. Sir this is not a threat it is reality, my relatives who are in retirement and on a fixed income cannot wait much longer for your decision. This process has cost them about 20 percent of their money as of Oct 1 2007. Prior to your formal announcement they will be pulling out and reinvesting in other jurisdictions. They state that you have not shown any sign of love of the oil and gas sector that drives your provinces income and a vast percentage of the Canadian economy as well. Sir my dad always told me “do not to count my chickens before they are hatched.” This reports table on page 17 assumes that production will be the same from today forward. The committee did not listen to the oil and gas producers about the high cost environment of Alberta today. All Albertans want to get richer this boom as compared to the last boom. Hence step in the government always a step behind the service companies and other suppliers to the oil and gas sector asking for more. This brilliant scheme that your committee has hatched does just that, it is based upon numbers that the industry will keep drilling and developing. The reality is they are going to go into Harvest mode like [Information Removed] Have you noticed that [Information Removed] which has a vast amount of great properties in Canada is far from the most active company on exploration and development? After the National Energy Program [Information Removed]have been in the harvest mode only, investing in Russia and other more lucrative areas of the world or Canada. BC is making it easier for the oil and gas business; they still have a debt to pay-off. My job within the industry looks at reservoir data and analysis for an oil company. I can tell you that most oil and gas wells decline at about 20 percent every year. This report does take this into account( see page 17 the data assumes that exploration and development stays the same) if the exploration stops for a few years the negative impact will result in less royalties under this regime. The committee is stating that this regime will collect an extra 2 billion per year but the reality is within two years the province will be taking far less than it is now under this new regime. All of the companies indicated this to your committee and they ignored the hard facts and their input. Now [Information Removed] reduce it exploration in Alberta if this new royalty structure is enforced. How will the Alberta government plan for long term spending when the gold egg is no longer there? Will you raise personnel income taxes like the Tories did in the mid eighties to account for this short fall? Sir my father also told me a “penny saved was a penny earned”. My suggestion is that you change the royalty structure to a simpler system that everybody can understand. This would reduce the need for so many accountants to oversee this in the government and in the oil sector. Sir this has two benefits it reduces the need for resources that can be freed up to do more value added work in the province. Sir you know the 1/3 to 2/3 rule that applies when farming other peoples land. Why would this not be true for resources? This rule has been in place for centuries and is just and fair. The oil companies are on the line with their investors to make a profit. They must mitigate risk and maximum value for the share holder. Under this royalty regime it only drives business out of the province. Who will fund all the Alberta hospitals and infrastructure when the golden goose has been killed and laid to rest? Sir my father always said “do not come to me with a problem if you do not have a solution”. My solutions are right and left wing in nature. Like your committee idea is defiantly left wing no right wing thinking there. First sir use the KIS principle to simplify the royalty structure to a licensing fee only. A sliding scale yearly license fee based upon average yearly production rates. This has a benefit of giving the crown the exact numbers at the start of the year for the licensing fees. It also gives the oil companies more solid footing to begin the year knowing the overall cost right out of the hopper. Secondly sir the government should invest heavily into at least two if not three Nuclear reactors that would feed the tar sands project. By doing so the government helps to clean up the environment and would collect not only royalties from the energy companies but receive a part of the electrical revenue from the plants as well. This would extend the life of the tar sands reservoirs, by doubling the life of this reserve. How does this help Alberta? It puts the people of Alberta as partners in the projects and returns energy profits to Alberta when the oil runs out. Sir look around the world a lot of jurisdictions have to front the seed money for such large public capital projects. The province and federal government funded the first tar sands plant. This investment is nothing like the Heritage trust fund funding Quebec hydro’s dam, as this will payback. This market is captive and growing, not boycotting the producer as was the case with New York State and Quebec hydro. This is just putting our heritage trust fund to work for Albertans in Alberta. Sir my sole promise to you I will be a Tory backer as long as the committee recommendations are not implemented. If your government goes ahead and implements report as published, you will have lost my and my relatives votes in the next election. I will never vote Tory again. We will be seeking a party that will be willing to reverse this decision. Sir I believe that you will become the most hated Tory leader ever more disliked than Brain Mulroney was. Sincerely, [Information Removed] VSignature |
| RRE3082 |
I am sending my response to the Royalty Review report. Now retired,I have spent 35 years in the oilpatch as a P.Geol and have some wiisdom and knowledge of that industry. The question I am holding in my mind, as I consider the issues is ... Is is true that Albertans are not getting their fair share of royaltys from conventional oil and gas, and the Oilsands developments? Many statements have been made, and much spin-doctoring has been applied. If nothing else, the statements show that this royalty issue is tied to the economy, politics, the environment, the pace of development; and the royalty review has shown that the fair economic rent to realize can be isolated as part of the whole, but few think it can stand alone. I agree. In my mind, the truth should be graspable. Defining truth is easy, yet knowing if a statement is true or not is more difficult. Many people, inside and outside the industry, have expressed their opinions. Yet, it is good to remember that these are only opinions and not neccessarily the truth. Truth, according to Plato and Aristotle, opinions we hold are true when we assert that thata which is, is, or that that which is is not, is not; and that our opinions are false when they assert that that that which is, is not, or that that which is not, is. So, truth is easy to define. But, the way we perceive a statement as being true, or false is more difficult and consequently falls into the realm of opinion. Some statements are self-evidently true. For example, nobody would disagree that the whole is greater than a part, because it is impossible to think otherwise. A second way to test the truth of statements is to test it by our experience and our observations. The annual reports and press releases by oil and gas corporations show that they have realized unexpected record high profits in the past few years. Their obscene profits have been made partly on the unrealistically low royaltys (last set in 1997 to stimulate the economy) and the rising price of oil, the low $Cdn, and a world thirst for energy. Only a fool would think that this could continue, or should continue. Corporations factor risk into their economics and consider the risks of costs, cost over-runs, reserves, price, deliverability, ROCE, ROR, PV, Future Value etc, and a clear thinkiing decision maker must also consider the risk that the owners of the resource may want to increase the rent. I make a distinction between Non Renewable resources owned by the people, and Renewable Resources owned by individuals or corporations. Corporations should be reminded that their should be no sanctity of contract when one is considering the exraction and development of non-renewable resources. For renewable resources the contracts are short term and constantly being modified. Royaltys may go up, go down, or stay the same depending on the economy, supply, demand, price, costs and environment. Their is no denying the truth that enery companys have made big profits from their operations and would have done so with monkeys sitting around the board room tables. The unconciounable salarys, perks and options of CEO's and Boards of Directors is another story that could be made the subject of a novel . Couple that with many employees now enjying stock options, and it is easy to see that greed and avarice are still the main drivers in life. At any rate, what we are seeing is ears deaf to the truth, and putting forth opinions that are biased. Opinions are only that, beliefs that others need not share. Sometimes opinions express probabilities rather than certainties, sometimes they are subject to doubt, even self doubt, and the magnanimous man recognizes that other men may not share his opinion, and furhter, that when two opinions collide, one may be sounder. When we look at the cold hard mathematics of something, we get knowledge that cannot be denied. Whe the object of our thought leaves us free to make up our mind then we get opinion, and rational people can differ. And when opinion is based on greed and avarice, it is ill-founded and simply a willful prejudice. Some opinions are better than others. My take on the Royalty Review and related reports is that Albertans are being short changed on two ends. Firstly on getting a fair economic rent, and secondly on having to suffer the consequences of too rapid development. The economic engine is revving too high, and maintained by the flywheel of energy, and nobody has yet found the key to shut it off, throttle it back, or build some controls to manage it. I have read some of the corporate spins on this topic and see that many of the arguements are specious. For example, one company says that the increased Cdn dollar reduces the value of US$80 dollar oil today to US$50 dollar oil at previous exchange rates. This is admitting that when oil was $50 US, they were making 80$ Cdn. Besides, exchange rates are not the control of the provincial gov't and why should Albertans receive less in royaltys so that corporations can sustain past levels of return? Another statement is that of increased costs in the energy industry...so what? we all of us face increased costs, wherever in the world we live. Do corporations think we should take less royalty so that their costs are reduced? Maybe they could reduce the CEO and BoD salarys to reduce costs? The oilsands developers pay only 1% royalty to payout, and this has resulted in poor, or indefensible cost control by management. Cost was no object to consider if you are going to recover all costs....and this lack of cost control had driven up the price of welders, whores, and widgets to unreasonable levels. Managers did not heed cost control rigourously enough and have little compunction to blow the whiste on themselves. I see CAPP argues that rates of return in Alberta are low relative to other countries, but their graph statistics are misleading. Comparing Albertas conventioal oil to areas of the world like offshore China, North Sea, offshore Africa or the Middle East where fields are elephant size, high deliverabilty, and high political risk is not an apples to apples comparison. At any rate, the corporations have made threats, gestures and generally whined and complained, and this is a normal response when your bottom-line is threatened. It is the kind of response one would expect. I don't think anybody in their right mind wants to kill the golden goose of oil, and would prefer to continue some of the gains we have come to expect. Looking at the facts and figures, it is my opinioin that their is ample room to increase royaltys, and if this results in a slowdown of the Ab economy, then it will be a double gain. The oil in place and gas in place remain the same, and we can extract it over a longer period of time. The energy pie will continue to grow via price, and further royalty increases will then be justified, but met with the same dissent from some quarters. If royalty rates are not increased by this goverernment, then I think the next one, probably a Liberal-NDP coalition judging my popular opinion (whose votes form a majority) will come out with an even more onerous royalty scheme that will cause some corporations to close shop, temporarily and wonder why they didn't just accept the report, swallow some profit, and get on with their jobs. Anyhow, this note is getting longer than I intended, and if I had more time it might be shorter. If nothing else, by the very nature of writing it, I have defined my position to myself, and see that this is a big mess and that the Royalty Review is only one of many factors in the ultimate equation. Regular royalty reviews should probably be done every 'x' years, or triggered by some external event like price, profit, the need for economic stimulus, and probably other factors. |
| RRE3083 |
I would like to know how the amount of money saved by budget cutbacks in Mr. Kleins first two terms compares to the royalties this report suggests we were entitled too, but did not collect. Thank you |
| RRE3084 |
I would like to suggest that royalties be kept the same as they are now, the people who will take the hit if fees go up are the many thousands of people working in the industry on the ground. It is unreasonable to compare our situation here in Canada to others around the world because our costs of doing business, regulations etc. are different. Maybe we "could" roll the dice and squeeze a little more juice out of the lemon but who are we going to hurt in the process, the little guy. Keep things the way they are!!! (a bird in the hand ...) [Information Removed] Edmonton |
| RRE3085 |
I appeal to the preimier and the Aberta Government not to implement the Panels recommendations. Don't let the Panel Kill our Alberta economy! |
| RRE3086 |
The Royalty Review Panel has been very generous to the oil industry by their own admission. The Parkland Institute report clearly states that the royalty rates deserve to be significantly higher. . Therefore for the government to compromise on it further would constitute and compromise of a compromise. A total watering down of a very generous offer to oil industry would show a complete lack of resolve and surrender to the oil industry. The oil companies, for all their bluster, will not pick up and leave. Why would they? They will not get as good a deal anywhere else as they have here in Alberta. In addition, poor book keeping and a total capitulation to oil company industry demands by the provincial government in the past has left the oil industry with a feeling of entitlement that they will have to learn to shed. The oil industry is unleashing its full force in the hopes of cowing not only the public, but bending the will of the government. Premier Peter Lougheed went head to head with the oil industry and faced them down. Danny Williams stood up for the people he represents and they responded in kind by reelecting his government. Today the oil industry has many tools at their disposal to promote their self interest but it still adds up to bluster, posturing, intimidation, and bullying. Like a greedy child, the oil industry wants it all. It’s well passed the time that they have to learn share with others. This government must show resolve and leadership and display that they are not subservient to the oil industry. They are there to serve the public interest. [Information Removed] |
| RRE3087 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 13:31:09 DATE ENTERED {ts '2007-10-02 13:45:01'} |
| RRE3088 |
if I was told by the government that I would have to pay my workers to locate "possible" deposits, Drill the wells, build the pipelines, Build the facilities, maintain all of the above, pay 19% income tax after expenses.... oh! and give the Government 64% off the top...lol . I'd tell the Government to get bent and set up shop "elsewhere". If the rates go up, Alberta's economy will crash along with the hundreds of thousands of patch workers and their family's lives. We are already just getting by. If this rediculous increase is approved, we will all be worse off. |
| RRE3089 |
I think it is most unfortunate that the only province in Canada where hard work and entrepreneurship has a fair chance at success, is now contemplating changing the rules in the middle of the game visa a via proposed royalty hikes. The sedimentary basin is mature with only limited hydrocarbons left. The price of natural gas which is the prime factor in activity in conventional drilling is already low with most junior companies hanging on by the skin of their teeth. Any additional burdens on this sector will be fatel. Its a shame the "Fair Share" report authors have not realized the downstream benefits and what this could do to our province's future. Don't be fooled by polls in the paper and oppisition politcians, this industry to too important and employs too many people. The government was there for the rancher during the BSE crisis, and us in the oil industry hope you are hear for us now. Sincerly, [Information Removed] |
| RRE3090 |
OIL and gas is the bigest industry going in Alberta and effects not only the people working in the industry to make a living , but the economy as a whole. |
| RRE3091 |
Dear Alberta Government, I am very concerned with the Royalty Review Report. I work in the Oil and Gas Service Industry (Surveyor), and am of the opinion that if you change the rules for the E&P companies, a large portion of Alberta's economy would be negatively affected. If we think of the USA sub-prime mortgage defaults, I would say that a good portion of mortgages issued over the past 3 years would be in trouble if a large chunk of the Exploration and Production investment left the province. Yours Truly, [Information Removed] |
| RRE3092 |
I would like to comment on the proposed Royalty Review Report. I live in rural Alberta and work at an oilfield construction company. I feel that the proposed increase in royalties will severely impact our income. The province is full of Albertans (and some out of province residents) that depend every day on the income derived from the production of oil activities. With an increased royalty tax of 20% that the government is proposing, I feel that the oil companies, both large & small, will shut down most or all of their production. The cost of living has increased substantially in Alberta and the cost for the oil companies to drill the oil has also increased. We cannot expect to take an additional 20% of their profits without some major repercussions. If we try to tax them that highly they will likely just shut down and who will be looking smart now? We need to think about everyone and look at the big picture here. It's not just about getting another $2 Billion in taxes to distribute to the province. Although extra Government money available would definitely be welcome, if we push too hard, we'll just end up with nothing! The oil industry is HUGE in Alberta and millions of people depend on that industry. Increasing the Royalty Tax by 20% will just shut that industry down and we will all be unemployed. What's the Government going to do for us then? |
| RRE3093 |
If the Conservative govenments are intent upon destroying the environment, we who are being forced to submit to this invasion deserve the increased royalties recommended. Better yet, slow down Big Oil development until a reasonable plan has been implemented. |
| RRE3094 |
The Royalty Review debate is being carried out mainly in the newspapers which is has spawned a sensationalistic approach by certain papers. I cannot believe that we can be thinking of a substantial increase in royalties at this time. It will be harmful at so many levels that the province is sure to lose money only to be saved by miracle increases in the price of natural gas. Please wake up and not let the press and ill informed people make a tragic decision. [Information Removed] |
| RRE3095 |
As an Alberta citizen, I am extremely concerned about the proposed changes to the oil & gas royalty system. I believe an increase in royalty rates may be appropriate for oilsands production, and perhaps conventional oil, but to increase royalty rates for natural gas at this time would be disastrous for many of our junior oil & gas companies and for the service industry. Most of the small producers in Alberta produce primarily natural gas, which at the current price and high find and development cost is marginally economic or uneconomic. Many of these Alberta companies are already in trouble because their cash flow has dropped, debt levels have risen and they are no longer able to raise money in the equity markets. An increase in the royalty rates on natural gas at this time will result in sharply lower activity levels in our province in terms of drilling, completion and tie-in of new wells, which will hurt the service industry. I urge our government to please leave the royalty rates on natural gas the same at this time and to reconsider when prices have recovered to more sustainable levels. Sincerely, [Information Removed] |
| RRE3096 |
I am opposed to the proposal to increase the Royalty Tax on Oil & Gas. It appears that the Provincial Government doesn't realized the residual impact of an increased Royalty structure. First off, numerous senior oil & gas producers have not only threatened to reduce spending on exploration & development in Alberta - they absolutely will reduce spending which would have a significant impact to the general economy. Secondly, the overall impact to employment as well as continued expansion in economic activity will be reversed. People will lose their jobs which will lead to a slowdown in the economy and potentially a recession. Lastly, oil & gas companies have other places they can deploy capital globally which threatens our competitive advantage going forward - in particular when it comes to foreign investment in conventional as well as oil sands development. I urge you to re-consider and endeavor to get a better view of the impact to the economy that such a Royalty structure would have. Sincerely, [Information Removed] |
| RRE3097 |
Re: Alberta Royalty Review Panel Report Dear Sir or Madame, I have been an Alberta resident for more than 30 years and have lived in full-time Calgary West for almost all of this period. I am also a Professional Geoscientist employed in the Petroleum Industry and have had full-time and uninterrupted employment as a Petroleum Geoscientist since graduating from university in 1977. [Information Removed] So I am in short, both a concerned Alberta resident and taxpayer and an experienced petroleum professional. I also feel that I have a fairly unique and balanced perspective thanks to my extensive professional background with varied international and Western Canadian business experience. The Alberta Government is currently considering changes to our Oil and Gas royalty regime, as recommended in the Alberta Royalty Review Panel Report. I must impress upon you that as much as I welcome and encourage open and honest reviews of our Provincial fiscal and royalty regimes, I find that the A.R.R.P. is flawed and/or misleading in that it fails to adequately address the entire picture of the financial contribution of Alberta’s petroleum explorers and producers. One glaring omission in the report is the failure to account for the significant contribution of Bonuses and subsequent rental payments from regular Crown sales of petroleum and natural gas rights. The report also fails entirely to adequately address the very significant impact on Alberta provincial income from direct and indirect taxation on corporations and individuals. I would consider that any decisions on future directions in royalty structure reached without full consideration of all of the aspects of provincial revenue form the petroleum sector would be dangerous at best and possibly reckless and foolhardy at worst. Alberta’s petroleum resources are becoming more and more mature and the costs of petroleum related operations have gone up dramatically over the past number of years. In my personal experience, despite Alberta’s enviable oil and gas infrastructure, the operating environment in which the Alberta petroleum industry works still has to be considered to be very high cost with rates of return classed as being very low by world standards. Political and social stability in Alberta (and generally in Canada) has historically reduced the impact of these these factors when companies weigh their options as to where and how to spend risk and development capital. Alberta’s future income and prosperity will largely be based on the successful and responsible exploitation of higher cost petroleum energy sources (oil sands, coal gas and shale gas, enhanced oil recovery, etc.) The capital costs associated with these types of projects is very high and the lead times are long to test and develop these large-scale projects. I have personally witnessed (and survived) a number of business cycles in the resource industry over the space of my own life and career. The down-turns are not at all pleasant. In a number of cases, Government Policy (Federal and/or Provincial) has played a significant roll in either creating or worsening the effects of these shifts in economic activity. As an example, the mining industry in British Columbia suffered a terrible setback and is only now starting to recover from changes brought about by a provincial government two decades ago or more. The Alberta Government owes it to all of the citizens of the province to consider very carefully any and all changes it might make to the means that the petroleum industry helps fund the Provincial Treasury. The government needs to listen to all of its stakeholders, but also has to act in the best interest of all, both in the short-term and in the long-term. Sincerely, [Information Removed] |
| RRE3098 |
Dear Ed: i gotta beleive you realize that implimentation of the entire report by the review pannel would be a complete disaster for the energy industry. I work for an energy company and in the particualr field i work in we have spent between $75MM-100MM yearly in capitol programs. We have already heard from our leadership team if our field is deamed to be conventioanl oil replacing its current status of oils sands our royalty costs will more than double, resulting in minmal capitol spent in the field. Its to obvious what the impact will be if this program is implimented across alberta. I strongly encourage you and your team to reassemble your pannel and debate this with the energy industy to get a more accurate account of what this may really look like. |
| RRE3099 |
I have read the report and am dismayed over the findings. Although I am in agreement that operator's should pay their fair share, I do not feel the recommended increases and timing will be beneficial to Albertan’s. I do believe if these recommendations are put into place, we will be returning to a deficit position by 2010. Lower gas prices along with the services required to drill and complete wells have created the perfect storm for lower activity. The implementation of the panel will cause the eye of the storm to stall over Alberta for the foreseeable future. The large companies have stated they will pull monies earmarked for Alberta and redirect them to climates more friendly with respect to a return on investment. I have no illusions that this will not occur as you cannot create royalties from wells that are not drilled. I lived through the NEB once, why recreate another catastrophe. |
| RRE3100 |
Yes royalties need to go up. AB. needs to be putting money away & investing in other industries for when the oil runs out. And yes of course industry will scream when some of their money is reduced, but with the price of oil now and in the future it is quite ridciculous to think that investment would be scared off in a significant way. Might be good to compromise a bit and go with 15%. |
