| Random Nbr |
Released Comment |
| RRE4000 |
We are very concerned about the Alberta governments position on the Royalty Review Panel. We do NOT think it should go ahead. We DO NOT support, nor will we support a government that supports this. We will tell our finincial investor to invest OUTSIDE of Alberta or Canada if you do not listen to your people. |
| RRE4001 |
Dear Sir: I believe that the government of Alberta should look at the royalty rate that is in place in the state of Alaska and bring the oil companies in line to at least that rate of royalty payment and perhaps even more. A rate of 50% would not seem unreasonable to me. |
| RRE4002 |
I strongly support the complete implementation of the recommendations contained in the Royalty Review Report. The oil companies, with their grotesque profits, are stepping way over the line by threatening us with a pull out of investment. I personally have no problem with a slowdown in the depletion of our oil and gas - leaving some in the ground for my grandchildren seems like a good idea so perhaps we should turn the tables and start telling them how much investment the true owners of the resources are willing to permit. I trust our government will not give in to the shameless bullying of big oil! |
| RRE4003 |
There is something to be said about a goverment that is to greedy and willing to jeopardize the entire prosperity of Alberta. Alberta is a great place to live and work and if this goes through employement in Alberta will be cut in half, not just in the oil field. There is many oil companies and people that contribute to communities and small towns across Alberta and this will cease to exists. Make a decision to keep Alberta moving forward and prosperous. |
| RRE4004 |
I would like to urge the Alberta government to seriously consider the potential impacts of any increases to the current royalty program. Any royalty increases may increase government revenue in the short term but these increases will also drastically reduce the oil and gas activity levels in the province so in the long term the government revenue will be less than if the current royalty program was unchanged. The economy of Alberta is booming, in large part due to the oil and gas industry and all Albertans benefit from this. Any drastic decrease in activity of the oil and gas industry would negatively impact the Alberta economy and the people of Alberta. I ask the Alberta government not to make any changes the the current royalty programs. |
| RRE4005 |
I think it is ridiculous what our Government is trying to do . It is another example of how our Goverment is out of control and wants everyone else to pay for thier inefficiencies They will simply take it from whoever and wherever they can When will our Government start to implement accountability for their own actions and let Albertans lead the life style we deserve ? |
| RRE4006 |
To Whom it May Concern: I cannot believe the current Alberta government believes the majority of Albertans' will stand for the approach they are taking with the Oil & Gas Industry. Based on all the information I have reviewed, not only will the industry be drastically impacted, the average Albertan who works in a grocery store, at a car wash, for a hotel, at a restaurant, within a school, at a hospital will be more impacted by a sudden decrease in oil & gas activity. No one is arguing that a review should not take place and that both sides should come to the table to make an educated decision. Global companies (most of the major companies) will not be impacted by any decision the government decides. Investment dollars will move to India, China, the UK, the United States and other countries where ROCE (return on capital employed) will make the required investment returns. The perople truly impacted will be Alberta based business. There has to be a collective approach to the Royalty Review. This can not be one sided. If so, I know where my vote and many of my family votes will be going during the next election (both Federal and Provincial). Please proceed with reason. Regards, [Information Removed] |
| RRE4007 |
I think that maybe you misunderstood my question. When I asked, 'Were your calculations based on applying these changes retroactively to existing contracts?', I was not asking you to speculate about what may or may not happen. I am asking about the origin of the data that is the basis of the report. Is it based on applying changes retroactively to existing contracts or are your calculations based on contracts that will be signed after new legislation? Finance responds as follows: As you know, the report was produced by an independent panel. The government is still reviewing the report and has not come to any decisions. At this point, we cannot speculate about what may or may not happen. |
| RRE4008 |
October 8, 2007 I am a Geologist and I have worked in the oil industry for [Information Removed] years. Through these [Information Removed] years I have drilled many successful wells in Alberta, to the benefit of my fellow Albertans. I would like to share my view on the recent royalty review. I think that this issue is dividing Albertans. I have particular concern over the Deep Gas Royalty Incentive. My current area of responsibility is the deep basin of Alberta, [Information Removed]. In a very large area of Alberta that parallels the Foothills, there is a largely untapped resource of deep unconventional natural gas. The small but numerous natural gas reservoirs located at these great depths require a lot of capital to bring the gas on-stream. The current Deep Gas Royalty Incentive provides the necessary mechanism to allow for the commercial viability of this large resource. The costs to drill, complete, equip and tie-in the average well in the deep basin is in the $4MM to $6MM range. Businesses located in the deep basin are currently thriving because the current Royalty Incentive has been put in place to promote the development of the vast, but expensive natural gas resource. Another point I would like to touch upon is the millions of dollars spent on acquiring leases to explore and develop the natural gas in the deep basin. These dollars have gone into government coffers and benefited all Albertans. When I have recommended large bids to my management to acquire these leases, I have assumed a constant royalty regime over the long term, as it takes many years, perhaps decades, to fully develop the resource that I see. By taking away or changing the Deep Gas Royalty Incentive, it does not appear fair. It feels like the asset is being excluded from future development by the government after very large investments have been made to acquire the deep basin leases. To conclude, history has shown that when a resource is not economic, it does not get developed. How will that help Albertans today and in the future? The very best resource development is when there is long term sustainability; development that is done with utmost concern for the environment and safety. When sustainable development is achieved, people can plan their future lives and live their dreams. Please don’t take the future away from Albertans by removing the Deep Gas Royalty Incentive. [Information Removed] . Calgary, Alberta. [Information Removed] [Information Removed] |
| RRE4009 |
After doing nothing since being elected, our premier has managed to bring the energy sector to a complete stop. I don't think he has any idea how much money is taken out of the Peace River area each year, and how little is put back in by the provincial government. Edmonton has treated the Peace River area the same as Ottawa has treated Alberta. After an extremely slow summer, we are now on hold again while the oil companies wait for an announcement. This was supposed to have been on the 15th, but we are still waiting. The federal and provincial governments already take the lions share of revenues, and now the provincial government wants even more. When Trudeau implemented the NEP it was a disaster for the west, now we have a Trudeau in our own provincial government. |
| RRE4010 |
Yes [Information Removed] in Grande Prairie this up coming election the public needs to feel a "how can we recover" some of these royalties to help us with our cost of growth in our infrastructure which we are all struggling with, we need to work more closely with our provincial government on this issue |
| RRE4011 |
The government has received its fair share of resource revenues and will cause nothing but an economical collapse. Alberta is a leader in low unemployment numbers and, with our already rich government, we are the envy of most of the world. With an increase in royalty tax, we can say goodbye to this economical growth and hello to a financial collapse. If this new taxation is put through, we will also say goodbye to this current government. |
| RRE4012 |
As a direct employee within the oil and gas sector, I hope the government - my MLA, takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations without proper consideration will be far reaching and affect many people who work to service the oil and gas industry throughout this province. I believe we all want what is fair for Alberta because we all live and work here but to put in effect a 20% decrease for the developers seems unrealistic. There has to be some dialogue between all concerned parties to come to an agreement that will be of benefit to everyone in Alberta. |
| RRE4013 |
This is the first time since I moved to Alberta (16 years ago) that I am concerned about our future. If the government goes through with the 20% royalty increase this could start a recession. I do not want to follow the United States. The oil industry has done Alberta well. It has created thousands of jobs and with the royalty increase it will create JOB LOSS. In turn means the government will have to pay Welfare, EI .... How does this add value to Alberta? I remember the 80's and the NEP and what it did to families. Please don't make my kids go through the same thing! I have NEVER voted Liberal, NDP or Green Party, but I am seriously considering making this a first. Don't bite the hand that feeds us! A Concerned Albertan |
| RRE4014 |
Being involved in the oil and gas industry for many years and witnessing the many ups and downs, I cannot help but believe this whole study has touched upon people's greed for more. I agree the special royalty structure applicable to the major oil sand developments may need to be reviewed and probably increased but the roayalties paid by oil and gas companies on conventional oil and gas production should be left alone. Where were these "resource owners" in the early 1990's when companies were laying off 25-30% of their staff each year for a number of years? I suspect many of them weren't interested in being resource owners then or they moved to this province later to take advantage of the booming economy thanks to the oil and gas industry. How can you even consider raising royalties on gas producers when many of the smaller producers and the royalty trusts have reduced or suspended their monthly distributions due to low gas prices? I am all for the province to get it's fair share but if people want the rewards of successful exploration programs, they should be prepared to take the risks associated with them. Everyone wants the high returns but will not take the commensurate risks involved. I say go ahead and adjust the oils sands royalties if they need to but leave the rest of the industry alone. You have already effectively increased royalties to small producers by recently taking away the ARTC program. Was anyone complaining about the billions the treasury was collecting until you brought up the concept of ensuring your "fair share" of revenues? No. Now you've effectively boxed yourself into a corner and you're going to look bad no-matter what direction you take with this. |
| RRE4015 |
Your decision on this matter is more important and has far reaching consequences beyond Alberta. The main thing to remember is that these companies provide jobs. They reinvest there profits back into the economy. As they keep growing the spinoff is more jobs and more tax money. This affects manufacturing & refineries and thousands of jobs throughout Canada. The oil companies provide high paying jobs that pay big tax. Construction lumber all part of the large infrastructure all the way down the food chain to stores & restaurants. The larger global oil companies now investing here will look out of the country to spend their money to give shareholders the profits they need to maintain growth. Every Albertan has had the chance to by shares in these companies and probably have these companies in there bank portfolios and not even know it. Banks will be hit hard as money lenders and investors. Construction will grind to a snails pace. Shares will tumble as they have already started to decline. When oil hits 100.00 a barrel and Albertans reach in their pockets to pay 1.80 a liter for gas. the 100,000 plus unemployed will thank you at the next election when they realize who was providing all the jobs. everyone who is still working will take some cut in pay and pay less provincial and federal taxes. The board admits the reserves are depleting. All companies agree that some adjustments are needed. Their is a need for industry leaders to be consulted before a final judgment is made. a careful approach one that everyone wins. All Canadians should be worried. gone will be the high paying income tax payers of Alberta. Millions will be lost in the months of indecision. A panel should have included oil industry executives that know the real up to date costs of of the patch mixed with people who understand the needs of the Alberta infrastructure. They are our employers. They pay taxes. Profits are reinvested in Alberta. All Albertans & Canadians win as high paying tax payers fuel the economy. Every Aspect of Albertans will suffer in one way or another even if we sit and wait for a final decision. Recommendations of the board seem fair until we envision the consequences that will follow. Then we all lose. Not acceptable. The oil companies with strong management and wealth provide a service in the jobs they create. The more money in their poclets the more money filter down to the pockets of all Albentans and Canadians. This will be the hadest thing to ever hit the oilpatch of Alberta |
| RRE4016 |
Much of this firestorm would be quelled if the govt had been collecting the royalties in a proper fashion in the first place as stated by Fred Dunn. In my view the problem is not with the oil companies, but the govt's faulty acconting management. No, I do not work n the oil patch nor do my relatives. This issue has been projected onto the public square when it should be a matter of better efficiency within the gov't energy dept. |
| RRE4017 |
This is possibly the most important decision Alberta will have made for decades. Pandering to the Looney Left (including full implementation) has the potential to devastate the Province's economy. Being intimidated by the industry/investment community would be a minor mistake. The answer (as always) lies within the views of "Middle Alberta" (our equivalent of the famed "Middle England") - the silent majority, who do not scream or screech at meetings, and who have an interest as taxpayers and also, to some extent or another almost certainly, as investors - even if only indirectly through pension plans, mutual funds, etc. To declare my interest, I am both a heavy (direct)investor and a heavy taxpayer, and will be greatly impacted by the decision. |
| RRE4018 |
Standing up for ordinary Albertans to ensure we get our fair share is the single most important issue facing this government. A long time small "c" conservative, I would for the first time actively campaign to have this government replaced, we (wife, daughter & son all voting age) don't see Premier Stelmach do the right thing and not allow foreign Big Oil Company steal our birth right by earning excessive profits. Isn't it time for the people of Alberta of share in the benefits of the Tarsands and reap the same royality rewards the people of Texas enjoy (including [Information Removed])? How is it that the US citizens in Alaska can benefit from higher royalities than we Albertans do? This issue will define you Mr. Stelmach as either a weak-kneed Oil Industry Apologist or a true son of this proud people of this province. Please don't disappoint us and force us to vote your party out of power. [Information Removed] |
| RRE4019 |
Today is Oct. 6, and ,after being bombarded daily recently, by too much anti-review rhetoric, I am now more than ever, more thoroughly convinced, that the Alberta Government should impliment the Royalty Review in it's ENTIRETY with NO CHANGES. Suffice to say, while Alberta has enjoyed substantial benefits in many areas, the sicio-economic losses are mounting exponentially to irrecoverable levels. Subdivision after subdivision devoid of schools, parks, rec. facilities, Health Care, or adequate Infrastructure, are but a few examples. We need, and have a right, to our fair share of these resources. I am already abundantly tired of Oil Co. rhetoric. If pastures are so much greener elsewhere, then GO ! Go to IRAQ, IRAN, RUSSIA(putin & gasprom), VENEZUALA(CHAVEZ), OR, ANYWHERE ELSE YOU FEEL THE INVESTMENT/ROYALTY STRUCTURE IS BETTER ! That, or start paying a fair share of the mess that's being created Impliment The Royalty Review reccomendations "ad hoc" My Family and I typically vote as a block. We will watch intently. |
| RRE4020 |
As a resident of Alberta from birth, my husband and I have made our life in the Alberta oil and gas industry. We have been part of this industry for the past 35 years. We beg the government of Alberta to not do anything to jeopardize our livelihood and the growing economy of Alberta by accepting blindly what has been called for in the royalty review. We plead with you to sit down with the oil and gas companies and find workable formulas that are acceptable to all concerned. This includes the taxpayers of Alberta who have been steadily employed by these companies. We want a stable and strong economic province for our kids to live in, as they also are employed by the oil and gas industry. Please find a workable solution that everybody agrees with and doesn't just revolve around the bottom line of dollars and cents. Please think of your Alberta residents who count on this industry! |
| RRE4021 |
I am an Albertan and I want to take this opportunity to communicate to you how concerned I am with the course the royalty review process is taking. I do not believe that the recommendations of the Review Panel, nor the response of Mr. Stelmach are in the best interests of Albertans. I have worked in the energy industry for my entire professional career and I have been through poor government policy decisions (NEP) and seen first hand the economic and personal devastation that can be wreaked upon Albertans by bad policy. I do not think it is the role of our elected representatives to make bad policy decisions based on faulty information that will destroy the livlihood of countless Albertans. I'd always thought that was Ottawa's role. While I don't dispute that it is important to ensure that a fair and equitable royalty regime exists, it is vital to the long-term prosperity of Alberta that we have a vibrant and healthy energy sector. I do not want to see Alberta throw away the "advantage" that it has had over other investment jurisdictions for mere populist reasons. Mr. Stelmach, do not implement the recommendations of the royalty review panel. |
| RRE4022 |
The proposal will result in a severe economic downturn if implemented. I've worked in multiple overseas locations and both Alberta conventional and oilsands are at the higher/st end of the cost spectrum. Government takes around the world are different for a reason. There will be major job losses (direct and indirect) and the move to eliminate grandfathering will have a trust impact not only for Alberta but Canada as a whole. Does the Premier really want to be seen in the same light as Chavez and other expropriators - a deal is a deal!! |
| RRE4023 |
It is unfathomable why such a progressive and business focused province should consider implementing policy that will be a net detractor of revenue for the province. Without question, capital will flow to the US or other areas of the globe, as capital knows no boarders. As such the mathematical calculation to get an incremental $2bn into our coffers will ultimately cost Albertans exponentionally more annually over time. Do not do anything rash - listen to the people who are responsible for investment decisions. These are the same people who indirectly drive all facets of our economy as the capital they deploy comes back to us in job creating, increased personal tax bases, etc. It is embarrrassing what this type of process does for Alberta's standing in the global community. |
| RRE4024 |
In general I support the royalty review committees recommendations. I particularly support: 1. Royalty simplification - get rid of old and new 2. Increasing the overall "take" 3. Increasing royalties on oil sands from 25% to 33% after payout. I see the following issues: 1. The time it will take to change administrative systems to handle the proposed changes has not been factored in. Changes should be implemented for the start of 2009. 2. Economic analysis of profitablility of gas "take" increases for high production targets have not been fully modelled by the committee. They used the new average rate. I suggest the rate should be more carefully modelled and likely modified to reflect a sliding scale based on gas prices - where the new rates do not kick in until after gas hits $12/mcf. 3. Ring fencing oils sands projects - no recommendation made - this requires a recommendation - more work required to stop constant creep of the fence. 4. Oil Sands lease must be made to expire with no activity - as is the case with conventional o&g - and as was the original intent. Thanks. |
| RRE4025 |
which will have more damage on oil industry, the job provider, the national energy program or the royalty increase!!! they are just as bad. as of today, i still hate trudeau and wish he would die of some form of suffering so he would pay back what he had done to cause the misery of other people in order to satisfy his private wish of going down history in his own form of hero. also, the recent PM, trying to rename mt. logan to one of his own private wish, i also wish he was dead too. This is how much i dislike the current premier, not less in any form or wish. As a leader, he is suppose to provide a stable political environment so that people of albeta can thrive, make a good living and have a quality life. the private sector does that by providing jobs and giving donations directly to institutes. the government will take the money and let the corrupted officials spend it by some political ways and awarding contract to their own relatives. all this has been done before and will go on as long as the government has money and not having an independent anti-corruption agency. Do not raise the royalty. if your toll has over 75% people voting yes to increase royalty, it may be because they dont have a job and wanted more money to hand out from the govt. Spare the people of alberta please, figure out a way to pay less to the federal govt instead would be a wiser way to gain your respect from people of alberta. other provinces are declaring half-nation status and trying to dig into our wealth, why did they not move here and work instead? deal with protecting alberta from these robbers instead. |
| RRE4026 |
have lived in Alberta for over twenty years My husband works in the oilpatch and I have witnessed how the oilpatch affects Albertans. Some say that the oilpatch makes up for roughly 1/3 of Alberta ’s work force. I don’t know how true that is, but I do know that the oilpatch is directly connected to far more than 1/3 of Albertans. There are many towns in Alberta that are likely 100% affected by the oil patch, I have lived in 2 such towns. If we casually toss aside the serious concerns of the outcome of the Royalty Review, we could be signing their death warrants. I have seen in the news lately is how the royalty changes could affect oil companies and I realize what the ripple affect of it could be. In fact what it is already doing while it is only a “consideration” or “threat”. If the Alberta Government adopts the Royalty Review’s recommendations as proposed then the Alberta Government will be causing a catastrophe across the whole province. Major companies will cut spending in Alberta ; EnCana is already prepared to do just that, as are other companies. Smaller companies will have to cut spending as well; especially since their funding is being effectively cut off. Banks and investors are already refusing credit to companies in Alberta because of the unsettled climate that we find ourselves in. The fallout that will affect a lot more than just 1/3 of Alberta ’s work force if the Royalty Review recommendations are put in place. First of all, the predictions that companies, such as EnCana and many smaller companies, are not doing any more exploration and development are accurate. They could even shut in wells, meaning no more production as well. On top of that, EnCana and/or other major companies pull their head offices out of Alberta , possibly even out of Canada . And lets not forget about taxes. Not only will there be less corporate taxes going into Alberta , there will also be less income tax going to the Alberta Government. That means less spending money for the government. In turn we could see cutbacks by the Alberta Government in projects, less money going to schools, infrastructure, health. The Royalty Review recommendations will affect all Albertan’s in a negative manner. The Royalty Review states that we need to give Albertan’s their fair share, I ask; “what will there be to share?” Please do not subject us to the same fallout as the NEP in the early 1980’s and do not adopt the recommendations of the Royalty Policy Review Panel. [Information Removed] |
| RRE4027 |
We, as Albertans, take our fair share in many ways other than royalties. Our fair share will be reduced if these negative effects should ever be allowed to occur. The royalty structure needs to remain the same to maximize the potential of our great province. The growth of Alberta needs to be set by what our people and infrastructure can do and not by artificial means. If our growth needs to be slowed, it will happen on its own. And if the growth rate needs to increase, the oilpatch will, as it has in the past, invest in the necessary infrastructure improvements. I strongly oppose these recommendations. |
| RRE4028 |
As proposed, the new royalties will kill activity, especially in conventional Oil and Gas, and will result in LESS overall tax collection for the people of Alberta, as well as causing a slump. Data from JS Herold Data shows that Alberta ranks lowest in 5 year returns on cumulatiive cost of capital for Oil & Gas companies operating in all jurisdictions/regions around the entire world. Therefore the panel's conclusion that Alberta is an overly attractive place to invest and that $2 billion or 20% in higher royalty take is sustainable could not possibly be further from the truth. The decline in Alberta Oil & Gas activity over the past year (whilst the US Rockies continued to grow) endorses the harsh economic reality of JS Herold comparative data. Ironically, it is Wyoming ,Colorada and several other US states, as well as other Canadian Provinces, which will be the biggest beneficiary of an increased Alberta royalty tax regime and NOT the people of Alberta! |
| RRE4029 |
I think there is room to raise royalties somewhat, but not as much as the panel recommended. We need to recognize what a positive the oil and gas industry is for government revenue, employment, community investment, and charitable donations. We shouldn't jeopardize what we have by trying to get too greedy. |
| RRE4030 |
my family depends on the oil industry-passing this royalty will end the oil boom in alberta dont do it [Information Removed] |
| RRE4031 |
I will be extremely disappointed with the Stelmach government if this royalty report is implemented. We have always been fearful of federal government policy but never dreamed our own elected provincial government would even consider legislation so potentially damaging to not only the energy industry but also to the future economic viability of the entire province!! |
| RRE4032 |
I have read the report and believe that its recommendations are sound. I want the government to get the best possible royalty for our resources, which clearly has not been the case in recent history. They are resources that are owned by the people of Alberta and not the oil companies. I do not want this government to bow to arguments that higher royalties will adversely affect investment or the profits of the oil companies and the investment industry. Maybe a few projects will not go ahead, and maybe a few will be delayed. But our growth is already putting strain on our governments' ability to deliver services so if some projects do not go ahead now that is not necessarily a bad thing. I am not convinced that the new royalties will have a long term adverse affect, or even a short term effect. The resources will still be there, and able to provide higher royalties later. So I would like the recommendations implemented, without delay. We need to get the best price possible for the resources, and as the report points out we are not getting the return for them thatt other jurisdictions are. [Information Removed], Calgary Alberta |
| RRE4033 |
I work for an oil and gas company and I have had access to all the information published on this subject. I feel that my job and may others could be in jeapardy if this goes through. Here is what I would like to have more information on 1. where would this money be spent? I feel if it goes into the general revenue there will be no benefit for the masses 2. at the land sales companies purchased under the current scenerio. Would the prices paid for land be the same if the companies knew about the royalty changes? 3. the panel report did not address all the royalty incentives that have already been taken away. September 2007 the oil royalties are already going up due to the changes in low production royalty reduction and the loss of some other royalty holidays 4.The service sector is already laying off people. Will I be next if this comes into effect? 5. Why 20% increase would it not be more reasonable to increase it by a smaller percentage? Even I think 20% is greedy. 6. Will these changes reduce the money available to look at new and improved technology that would be more environmentally friendly? 7. How will this affect all the money oil and gas companies donate to communities and not for profit charities? I think these will be the first people hit. 8. Freehold royalty owners have to renegotiate any new agreement why does the government not have to negotiate with the companies instead of telling? 9.Alot of the costs to operate oil and gas wells are fixed and they keep rising. If the people of Alberta own the resource why do they not have to share in the costs asssociated with producing? I think there has to be a solution that would benefit both the companies and the goverment and the people of Alberta. One suggestion would be to implement the changes in stages and for the government to share in the cost to operate the wells. From a citizen of Alberta |
| RRE4034 |
It is a must that Royalties be increased to at least the level suggested by the government panel. [Information Removed] |
| RRE4035 |
the recommendations presented by the panel will DESTROY the oil and gas business in Alberta. The benefit to the province from our industry is not only royalties. Think of the land sales proceeds, income tax from having all companies based in Alberta, wages from all industry segments, land rentals etc. Why did the report not incorporate this into their "fair share" calculation? |
| RRE4036 |
I have been carefully following the information which will lead Alberta to require the oil companies to increase their royalty payments. Threats of withdrawl and economic slump are unrealistic. I hope Mr. Stelmach will answer this questions: 1.If Alberta currently has royalty rates significantly lower than almost every other oil source, and we raise our rates to be in line with those other sources, how can the oil companies claim that they will leave Alberta for cheaper oil? 2. Given that some operations will be curtailed, and there will be some jobs lost, isn't it true that there are many more jobs begging for similarly skilled workers? The labour shortage in Alberta is an acute crisis effecting the quality of life for all of us, through the housing shortage, and lack of essential services and infrastructure. 3. Do you serve the voters of Alberta who care about the environment and quality of life or do you serve the oil companies, mostly foreign, who have supported your party? Thank you for considering these questions, I hope that they will lead you to the right decision. [Information Removed] |
| RRE4037 |
you GO [Information Removed]- this government does not deserve the investment of people like me - take your money and run! Maybe all the people in the province can be taxed to death to develop the resources themselves - then they would scream less. Most people in the province do not have one thin dollar invested directly in the industry - so anything the government does is fine with them. They will not likely see any direct results from this on a personal level - except NEP type of mess in general. Perhaps its just political for short term re-election garbage. [Information Removed] |
| RRE4038 |
I completely oppose the recommendations in the royalty review report to increase royalties and/or taxes on both conventional production and the oilsands. You're going to kill the econcomy! When you compare the royalties we receive here with what other countries around the world receive you have to take into account the high costs of exploration and production in Alberta. It's already hard enough to make a decent return on investment in the current environment. |
| RRE4039 |
I admit to having a bias on the subject of, the “Our Fair Share” Report because I am employed by an Oil & Gas Producer. I also like to think that I am open and honest and that this allows me to overcome most of this bias. Having helped in producing a detailed review of the impact of the increased royalties for my employer, I think that the Report does not deal with or understand the full impact of these proposed increases. My employer does not have any Oil Sands production where supposedly the greatest impact was to take place. On the Conventional Oil and Natural Gas review that I worked on the increase in royalties was 5% for both but the overall impact was a 23% increase in royalty payments. The impact was especially significant in the Natural Gas area. The company I work for has a lot of Low Prod Oil Wells and still our Oil royalties were going to increase by a significant amount. The statement that the majority of the wells in the province would be paying less royalty is probably true, but this is more than offset by the higher producing wells. Given the data that I reviewed I think that the increase in royalty revenue would greatly exceed the projected $2 billion. I do not think that impact of rising operating costs has been fully considered by the Report and that these rising costs have to be considered with more scrutiny. A big portion of the rising costs is tied to the standard of living we enjoy in Alberta and if you asked the average person would they be willing to have lower wages or wages held at their current level for the next few years so that the Province could have an extra $2 billion in royalty payments the answer would be a resounding NO. As to the subject of Gas Cost Allowance the postage stamp rate can be fair if Alberta Energy updates the rates annually and with industry input. This did not work in the past and when the change was implemented a couple of years ago to have each Plant with its own rate it was readily apparent that the Govt. of Alberta had not been even close to paying its fair share for processing gas. This was entirely due to the postage stamp rates. Careful consideration should be given to implementing “Our Fair Share” and I think that the operating cost component needs a lot more work before anything is implemented. This is especially true on the Natural Gas royalties. Signed by a concerned Alberta Taxpayer and Oil & Gas Employee. [Information Removed] |
| RRE4040 |
[Information Removed]reviewed the consultant's recommendations in the Royalty Review Report and passed the following motion: "...moved to forward a letter supporting the Government in their efforts for fairer compensation from the energy companies to the Province and further, recommend that land owner’s compensation be enhanced through the royalty negotiations with the energy companies, and further, suggest that current high costs of health and education may be offset by possible higher revenues received from the implementation of higher royalties." Thank you for the opportunity to respond. [Information Removed] |
| RRE4041 |
My wife and I feel the government has been remiss, and incompetent in the management of our resources over the last many years..........not able or willing to keep adequate records, with no accountablility. HEADS SHOULD ROLL. All big buisness has had a free ride for far too long ,manipulation of governments in their favor instead of for the people. Pages 93 to 100 of the "Royalty Review Report" says it all, in summation. We as Albertans and owners of the resource deserve better management, accountability, visability and full value for these resources. With the past sell off of our ownership in utilities, phones, liquor, registry, hospitals, etc. with no real payout, we do expect better from this government. Disgruntled Albertans, [Information Removed] Calgary |
| RRE4042 |
Hello Alberta Government: The royalty review report missed an important current source of revenue flowing from the private sector to the government. Companies pay for the exploration rights prior to undertaking any work. This is a very substantial total amount of revenue to the government that is not present in all other jurisdictions. It is also mainly a payment with significant risk attached since the actual exploration and developmnent will follow after securing title from the government through the post and bid tenure system. For example companies paid out enormous amounts for exploration rights in areas thought prospective for coalbed methane in late 2005 only to suffer the drop in natural gas prices in 2006/2007 that will not support a lot of higher cost coalbed methane development. The monies were provided to the government for the rights but the market does not necessarily support development of the rights as planned. The payments to government for the land tenure is in advance of any production whatsoever. This revenue stream was not taken into account by the royalty review report panel and is material to the calculation of benefits. As a citizen I regret the royalty review committee chose to utilize the term "Our Fair Share" because it does not reflect that Alberta citizens also benefit from the private sector's spending and implies benefit only from the public sector share of the revenues. The "Our" is made up of the same people of Albertans whether on the private or public sector side of the equation. The formulation by the royalty review committee is unfortunatley divisive and does not reflect the generally collaborative relationship between government and industry that has prevailed over a half century. Regards, [Information Removed] Calgary, AB |
| RRE4043 |
This is BULL[Expletive]. All this is going to do is come out of MY and every other oilfield operator in Alberta. The shareholders personal revenue I'm sure will remain failry the same and the portions to payed in royalties will come out of our yearly bonuses and daily hour/overtime. Let alone, the unemployment rate will go up which means that MY taxes will go up. I already pay upwards of 30% taxes on my monthly pay, which I don't agree with, I can't afford to pay any more. All this royalyt is going to guarantee is that the "Little Guy", guys like myself, are going to get it in the rear. If the Alberta gov. is smart, they'll settle on a 2%-5% royalty increase which is variable to the price of oil. Oil was at $30/barrel in 1997 and is now at $80, so lets say 2% for the first $40 increase and how about 0.01% increase for every $5 after that. Of course the royalty goes down with the price of the oil too. Otherwisw Smaller towns such as mine will be nothing but ghost towns and the economy in Alberta will be almost nonexistent. |
| RRE4044 |
Support our premier and provide advice on Alberta Royalty Program 1. Change the defense position from “ our fair share “ to “manage growth pressure”; Nobody really knows what the fair share is. There will be endless debating if we put our efforts to defense the so called “fair share”. It is a bad position to battle. One of premier’s top priorities is to manage growth pressure. Alberta Royalty program should be an excellent tool to manage overdriven hot development. 2. Chang “once in decades” fixed Alberta Energy Royalty Rates and formula to “frequent preset date review and announcement” of flexible Alberta Energy Royalty Rates; The provincial government should develop a Royalty regime like Bank of Canada for its Bank rate. However, the frequency may not be the same. For Royalty rates and review, it may be set once a year, or twice a year. It can go up and also go down, depending on the development pace the Provincial government would like to keep. 3. 20% increase is not enough at this time; Due to red hot oil sand development, cost escalation for all municipalities has increased dramatically, ranging from 200% to 500% increase. The provincial funding generated from the royalty revenue is no longer able to fill this “black hole”. It has been trapped into deteriorating cycle. 20% increase is not enough to sustain the healthy society development, nor 50% increase. The right increase should be the rate that makes Oil Sand Industry to change their “Rush to Gold” attitude for oil sand development. 4. Don’t be scared by the industry’s threaten to withdraw the investment; and We don’t want Albertan’s oil blood be sucked out at one time. As long as we have transparent proper tool to manage our resource, we will keep the industry happy and our society happy. Everybody knows that the current red hot development is no longer a sustainable development anymore. 5. Think carefully the heartland area development. If the development is not properly managed at a sustainable pace, the acid rain may corrode Edmonton’s buildings, roads, and its ecosystems and its surrounding communities. Does our premier know how much SO2 and NOx emissions will be emitted? How much Sulphur will be produced and where to store it and how to dispose it? How much water will withdrawn from NS river? How much wastewater will be produce? How to treat them properly and send back to the ecos |
| RRE4045 |
The Royalty Review Report should be implemented in w/o fear of exodus of oil companies. They will not take the oil with them and the oil will not disappear. One positive effect will be a slow down of tar sand development which has brought many problems to Alberta: High labour shortage, High housing shortage, High inflation which mainly affect Albertans on fixed income, High demand for services with low contractors available who can easely inflate prices. [Information Removed] |
| RRE4046 |
I think it is imperative that Albertans start getting more of their fair share of the royalties, and that the money collected be used for such things as ending healthcare premiums, repairing crumbling infrastructure, and injecting more funds into welfare payments, still at below 1993 levels, and AISH payments. Of course, the big oil companies are screaming at the idea of having to hand over any of their huge profits, and threatening to pull out or pull back their investments. Our economy is over heated as it is, and it would greatly benefit the environment if tar sands development was scaled back. Besides, where else is left for them to go? I think their threats are overblown. Premier Stelmach and the rest of the government would do well to remember who elects them and that it is the electorate who have been cheated out of royalties in the past. |
| RRE4047 |
I work in this industry and I am against the royalty review report. |
| RRE4048 |
The report is absolutely on the mark. I give the premier a lot of credit for allowing the Panel to do their job without government or industry interference. I will be very disappointed if the recommendations are not implemented in full. |
| RRE4049 |
I am terribly concerned about the proposal to significantly increase royalty rates on oil and gas resources in Alberta. I believe the report to be biased and indeed flawed. I believe it is very short-sighted to demand increased royalties at the risk of severely damaging our economy. The "2 billion extra dollars a year" will seem like a bad trade if we devastate a major economic driver that supports our enviable financial and economic position. I believe Premier Stelmach has the potential to be remembered as the worst Premier in Canadian history if he enacts these proposals. There is a very real possibility that a booming economy could be destroyed. Some of us remember the days of the N.E.P., imagine a province doing a similar thing to itself! I urge Premier Stelmach and his advisors to seriously weigh the potential downsides of the proposal. I, for one, do not believe that "big oil" is threatening to withdraw investment, but rather that they are revealing a simple fact. If investment in oil and gas is not financially viable, meaning that the return does not justify the risk of investing, there will be less exploration and many existing wells will cease production. Then it will not matter what the royalty rate is, the resource will not be harvested from the ground and the government and it's peoples, will get a bigger percentage of nothing. Regardless, things are pretty fantastic right now. Any potential upsides are negated by the potential for massive downsides. The status quo is pretty great. Do we really need to rock the boat? Yours Sincerely, [Information Removed] |
| RRE4050 |
Albertan's have been short changed on our resources for the past decade. Ralph Klein's government lacked the vision needed to manage Alberta and it's vast resource wealth. Politician's must stop giving our recources away to the lowest bidder. Implement the recommendations as outlined in the report. It's our resource and Albertans are long overdue for "a raise". |
| RRE4051 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 13:16:20 DATE ENTERED {ts '2007-10-02 13:30:01'} |
| RRE4052 |
a small increase ei: 5% would probably be justified in royalty increases. no addional tax. no body set up to review because of costs and possibly no benifits. Albertians would likely gain more if the exsisting monies where spent prudently. It seems like the more money we have in excess of the budget just gets thrown at problem areas ei: education,healthcare, ect. without any plans as to how it is used to improve the problem. Just throwing moey at a problem does not necessarily do any good. |
| RRE4053 |
I want remind all Albertans who remember what happened in the early 1980's when the Federal Government brought in the National Energy Program.......Alberta fell to pieces!!!!!! I remember quite well, I lost my home in 1983 along with thousands of others. We don't want to relive that do we? The oil and gas companies have widely contributed to make Alberta what it is today, let's stick by them. |
| RRE4054 |
Please do not change anything with the existing royalty regime. Activiity levels would decrease and there would be more people out of work. It is already hard enough to make a buck on new projects with how high costs are in Alberta. Please don't ruin a good thing. Thanks, [Information Removed] |
| RRE4055 |
I personally think the increase of royalties has to be somehow correlated with 1. market prices of gas, oil 2. reserves and depletion 3. economy trend I think Stelmach's report lacks complete professional evaluation and needs further work |
| RRE4056 |
Given the rapid rise in commodity prices, there are opportunities to change the fiscal takes and to increase royalties. However, these changes should be implemented carefully and after a collaborative, in-depth consultations process similar to that followed to create generic fiscal terms for the oilsands a decade ago. Before implementing the current proposals, the Government needs to fully understand the impacts of proposed changes so that we do not stall investment which is the real driver of our prosperity and the “Alberta Advantage.” Please remember that the reason we have the the "Alberta Advantage" is because of our resources and the oil companies which have made Alberta their home to provide not only royalty income but to provide jobs which also supports Alberta through various forms of taxes. I have lived in Alberta for 27 years through good times and bad. Let us learn from our mistakes from the past both from a federal and provincial stand point and ensure that we keep the Alberta Advantage going by ensuring that we don't overreact to what the media is saying. Let us do this the right way and ensure it is collaborative where both sides win. I do not know one person who agrees with the report completely. We all agree that there needs to be changes but again lets ensure it is done in a way that makes sense economically and benefits all. |
| RRE4057 |
Prior to my recent retirement, I worked for over 25 years in the Alberta oil industry and have been a consistent supporter of the Conservative Party of Alberta. In my judgement, the Royalty Review Panel's recommendations are totally inappropriate - especially considering the recent sharp rise in oilfield costs, the declining profitibility of new natural gas prospects and the lack of a provision to "grandfather" existing oilsands projects. The latter issue is completely foreign to Canadian business practices and would place Alberta in the same position as certain extreme left-wing governments in Latin America. Having worked with organizations such as [Information Removed], etc., I place far greater trust in their analyses and recommendations than I do in the analyses and recommendations of the Royalty Review Panel. The energy industry in Alberta is a lot more fragile than it appears. Please be very careful in making any changes to the royalty structure that has helped Albertans achieve such high living standards over the past few years. Respectfully, [Information Removed] |
| RRE4058 |
the royalty reviews will result in job loss! |
| RRE4059 |
It is my sincere hope that the Alberta government will not implement all the royalty changes as suggested by the Royalty Review Panel. The data and assumptions used by the Panel were seriously flawed. If the Panel’s recommendations are implemented, the potential immediate impact on the oil and gas industry in Alberta would be very significant. Numerous projects across the province would become uneconomic, drilling would decrease and thousands of Albertans would lose their jobs (myself included potentially). I have no problem with the people and government of Alberta getting their fair share of the revenue from our natural resources, and I do believe the royalty rates should be increased, but to do it at the levels recommended by the Panel would be very detrimental to the economy and the welfare of many Albertans. Thank you. [Information Removed] |
| RRE4060 |
I have no political axes to grind and am not connected at all to the gas and oil industry: I am a retired Albertan (been here since 1967) who runs a small at-home business. I frankly fail to see why we as Albertans and Canadians should not enjoy all the revenue and profits generated from our collectively owned oil, gas, minerals, and forests. Who gave these international consortiums the right to plunder our resources with only the tiniest of returns to their rightful owners? The only shortcoming of the recent royalty reviews (in which I include the Auditor General's report) is that they are far too timid: the royalties to Alberta should be 100% (or, to be reaistic, at least 50%). I'm tired of hearing the big oil and gas companies whine about how they can't afford that kind of increase. I'm tired of hearing them threaten us idly with pulling out and with the resulting unemployment. I'm tired of rotting schools and kids for whom we have to have bake sales in order raise enough coin for them to take music or dance or art or compete in athletics. I'm tired of having to pay health care premiums; I'm tired of not having dental care or eye care or access to physio or hearing clinics. I'm tired of having to pay provincial income tax while the oil and gas companies fail to pay anywhere near their fair share. I'm tired of having the once-only bounty of our natural resources squandered in a single generation so that oil and gas executives can ski in Europe and dine in Argentina. I'm tired of having to write letters to protect grizzly bears and pine trees and streams and mountain wildernesses when we could have the dough to turn this province into a an environmental and social paradise. Mr. Premier, don't let the oil and gas corporations bully you -- they're running scared, but they won't and can't run away. Call their bluff. Do the right thing. Raise those royalties right through the roof! |
| RRE4061 |
Dear Mr. Stelmach, I would encourage you to follow through on the recommendations in the royalty report. I don't believe Albertans have been getting their fair share of profits from our own resource. I believe that only a very limited number of people have been benefiting financially from the development of our oilsands. It is an interesting phenomena when many "twenty-somethings" I know recognize that they've hit the "gravy train" when they get hired by any company connected to oil and gas. Thank you for being willing to face the issue of royalties in spite of the opposition you are facing. |
| RRE4062 |
Please implement fully the report's recommendations. |
| RRE4063 |
The elimination of the speciality royalty programs, specifically in terms of deep basin tight gas should be reconsidered.. High costs associated with drilling 3000 deep metre wells, along with poor outlook on gas prices will result is a curb in development in the area, resulting in eventual less revenue and less work for Albertans. Further to the North near Grande Prairie yields high risk drilling and eliminating the above-mentioned program will yield even higher risk in development. |
| RRE4064 |
Mr. Premier, I encourage you to investigate all of the facts (and I stress facts) surrounding the Royalty Review debate. As a born and raised Albertan, I am proud of our economic independence, wealth, and lifestyle that I'm sure most Albertans enjoy along side me. I feel that our economy is strongly tied to the Oil & Gas industry, and as a result of this I strongly believe that passing the recommendations of the panel in full would be detrimental to the industry, and therefore in the long run to the citizens of Alberta. I am aware that some of the recommendations in the panel were made based on certain assumptions, ones that are incorrect. For example, basing assumptions on the results of 2006, a year that most realize was very anomalous in the amount of growth in the O&G industry; using finding, development, and producing costs that are roughly 50% less than actuals for the industry; stating that 82% of gas wells in Alberta would benefit from lower royalties, when in fact this would only occur at commodity prices well below today's levels. At the current gas price, 100% of all gas wells in Alberta will be paying higher royalties. Over the long run, gas prices are expected to increase, and therefore the royalties of many gas wells would continue to increase. As an Albertan I of course want to share in the wealth that the O&G industry creates. It is human nature to want a "bigger piece of the pie". However I strongly feel that by implementing the recommendations made by the panel, the only real outcome will be a larger piece of a much, much smaller pie. In the end Albertans will lose much more than they ever realized, and will have to get over the envy of watching their neighbours (BC, Saskatchewan) enjoy the economic successes that were once common place in Alberta. Thank you for your time and your consideration of the future of Albertans. [Information Removed] |
| RRE4065 |
I think Ed is out to lunch!! |
| RRE4066 |
According to Suncor's royalty reporting, they paid $1B last year in royalties. This report basically suggests a 20% increase in royalty rates, equating to $200M. Divide this by their yearly production (260,000 barrels / day * 365 days / year = 94,900,000 barrels / year) and you get $2.11 / barrel. That appearst to be a 10% increase in production cost per barrel. Is that tenable? I think so. Especially when oil is at $80 / barrel. |
| RRE4067 |
You will make BC and Sask have record high Oil and Gas revenue....way to go. Too bad Alberta will suffer in the mean time |
| RRE4068 |
The Government of Alberta should, and must, implement all the recommendations of the Royalty Review Report. I strongly believe that the Province of Alberta, and all its citizens, should receive greater compensation for the resources that we chose to sell. I believe the present situation has unfortunately lead to poor economic planning, include boom ecomonics. While the burden of the boom is born by public infrastructure, public society, and marginalized communities; the benefits are being reaped by an affluent class that is not equally tied to this province. By the same token, I believe that the Province of Alberta can demanded greater compensation for our resources while experiencing a marginal loss in economic activity. Yes, I accept that there will be a loss in activity. But, for pete's sake, some decline would be good for us all, and it will be a smaller decline than the increase in Provincial revenues. |
| RRE4069 |
Hello, Upon familiarization with the report prepared by the Royalty Review Panel, I wish to express extremely negative opinion of the report. Looks like the report was prepared by a group of recent high school graduates who have no families to care of and who are not sure about their connection to the Province of Alberta. The report ignores the very simple fact that current investment projects in the oil sand industry have been sanctioned by shareholders and companies based on the current royalty rates. My wife works for the oilfild services company, [Information Removed] where staff reduction is already on its way due to a low activity in gas drilling. I believe that a most dramatic effect, if implemented, the Panel's recommendations will have on the oil sands industry which is the driver of Alberta economic growth. Respectfully [Information Removed] |
| RRE4070 |
The future of gas and oil production is unconventional. Our conventional resources in this province are mature. The profit margins that exist in unconventional gas production are modest. Introduction of the Royalty Review Panel's report in whole would decimate small producers operating in unconventional gas fields and cause the large producers to move their capital programs to jurisdictions that offer a better return on investment. I challenge the idea that $2,000,000,000 in incremental royalties would be raised in Alberta. Capital investment, production, jobs and taxes would be reduced in Alberta as producers are forced to move programs or get out of the business. I expect that the province would recover less money in royalties as well as taxes. This seems counterproductive. |
| RRE4071 |
Dear Sir: As with many Albertans, I am employed in the oil and gas industry. I agree that sharing more wealth with fellow Albertans when times are good is fair. With record high oil prices, times are good for the companies that produce mostly oil. Unfortunately, outside of the oil sands players, the majority of oil and gas companies produce mainly natural gas. This is especially true for the many Alberta based junior exploration and production companies. Natural gas price has declined below $5.00/GJ, from well over $10.00/GJ, two winters ago. The natural gas sector cannot make any money at this price. Anyone who thinks differently simply needs to look at the last quarterly financial reports from the many gas weighted companies. The large losses incurred by the gas industry are reducing drilling activity and the demand on service providers. The gas sector has been on its knees for well over a year. The media has largely ignored the slowdown in this sector in favor of hyping the “booming” Alberta oil sands story. The Alberta Royalty Review Panel’s Report adds insult to injury by recommending additional gas royalties and removing all incentive programs at the worse possible time for this sector. Oil sands mega projects have driven up the cost of doing business in Alberta. What the Royalty Review Panel considers as high gas price ~ $6.00/GJ (justifying additional 15% gas royalty) is barely the breakeven point for Alberta gas companies. The intent of the Royalty Review Panel is fine. When oil and gas companies are generating large profits, the province should be entitled to a bigger share. But the recommended royalty scale on the gas sector needs to be adjusted to at least permit the gas producers to turn a profit. It does not benefit Albertans to further depress the natural gas industry. [Information Removed] A concerned Albertan |
| RRE4072 |
I'm against a massive tax grab. I havent exactly seen the province spending money on infrastructure and then needing the extra tax to cover the bills. Whats happening with your brash move is your weakening the very industry and smaller start ups, who will end up just being bought out by other countries. Why dont you [Information Removed]just confiscate the lands like Chavez and Russia do? That or figure out how much larger you can grow your government administration by. I can see how you guys measure progress. See something starting to get started and rather then phase in a tax you chop the limbs off instead. |
| RRE4073 |
It's time that a Premier got some backbone, yes I and my family make our living in the patch. But we have to have a concience for our future decendants. Don,t give away the farm to the American's. Once we are all out they won't Know us. |
| RRE4074 |
Having read the royalty review report, I would note the following; The report makes several references to 'Albertans getting a fair share'. The majority of Albertans already DO get a good (some would say exceptional) share - by way of the business and jobs which the oil industry generates. Albertans also benefit from lower taxation than elsewhere - which is possible due to the government fiscal balance between income and expenditure. This is made easier due to the low unemployment rates giving greater numbers of taxpayers, as well as the royalty income. None of this has been quantified or considered in the report. If the panels' recommendations are implemented fully, it will cause a slowdown in the economy due to cancellation of the continuous improvement works necessary to maintain production levels. This slowdown could very easily become a downward spiral of lost confidence, declining jobs, reduction in income tax revenue, greater social spending. Natural decline in production would also hit royalties, and the greater level of 'take' from an ever decreasing base will never make this up in the long or short terms. Returns on investment are already quite low and over extended time frames - I feel the panel has not adequately addressed this - so by far the worst consequence would be the loss in confidence, which will take many years to recover. When such a downturn occurs, the places likely to suffer are precisely those which currently generate much of the wealth - Fort McMurray being the obvious. How many homeowners will be left with negative equity - or lose the jobs which make it possible? Much is being said about the increases in the oil price, and the 'added profit' that companies enjoy. Please remember that the existing Royalties are percentage based on the value of the production - as the oil price rises, the royalities due increase proportionately. Costs, however, never reduce, even if / when the prices drop - salaries are not tied to oil price (fortunately :-). Slowing down the economy of Alberta (if this is in fact one of the goals of the government, as has been mooted) will be a very delicate balancing act - and there is NOTHING even remotely delicate about any of the proposals of the Panel. Regards, [Information Removed] |
| RRE4075 |
I salute to Mr. Stelmach. We need more roads, hospitals, recreation centers and so on. There are a lot of newcomers who, like me, moved into the province to make a good living and to enjoy the life. However in recent years the standards of living in Alberta deteriorated significantly. There is a strong need for a substantial funding to improve infrastructure and to invest in our major cities as well as other communities. Last week I heard the following comment from one of the guests on the BNN network “there are only two cities in Canada really: Toronto and Vancouver… and may be Montreal”. I suppose that some people can say this based on the amount of federal funding, or luck thereof going to Alberta. It looks like Alberta will have to look after its own interests and if that’s what Mr. Stelmach is planning to do, my vote is with him. I live 25 min from the downtown of Calgary; it takes me over an hour to get to and from work. Last fall [Information Removed], I couldn’t find a family doctor until I was almost [Information Removed]. It takes forever to do shopping, because there are not enough shopping malls and groceries stores in Calgary. You have to be rich if you want to be able to afford a membership in the recreation facility in this town. And the list goes on and on. Obviously something needs to be done. A lot of my friends, young professionals, are actually thinking of moving back to BC, SK and so on, as they find that the standard of living in Calgary has deteriorated so much. If EnCanas of the world are not prepared to share their riches, who will be working o their multi-billion dollar projects, I wonder? |
| RRE4076 |
Prior to implementing any type of Royalty change I think that it is important that a thorough prediction of the economic repercussions throughout the entire economy be studied. Is this "impact" what Albertans want? Specifically, what plans are there for the thousands of unemployed Albertans associated with this change? Can you please let me know where I should go work? Some advice: measure twice and cut once. Be very careful of any changes are not whimisical in nature and that "action reaction" understood. If indeed due diligence is done, I will stand by my Government and fellow Albertans with respect to go forward decisions. Thank you, [Information Removed] |
| RRE4077 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 13:46:14 DATE ENTERED {ts '2007-10-02 14:00:01'} |
| RRE4078 |
You folks seem to be lacking some communication skills. You have the oilpatch in an uproar and threatening to pull out of Alberta. Good job! (sarcasm) I work in the oilpatch as a rig manager and have lived through the NEP and I tell you it was no fun. Now I have a family, kids in college and a mortgage and YOU are about to [Expletive] it up. We are already experiencing a slowdown and you are throwing fuel on the fire. All you had to do was consult with industry and let them know that there would be some changes to royalty rates that would be phased in at a level and rate that would be to everyones benefit. So here you are demanding 20% more so that you can overspend some more! Even though you are telling everyone to calm down, the perception out here in the field is that you are about to slay the goose that layed the golden egg. If you go through with this you better be prepared for the negative effects to the economy and the voter backlash that will surely come. Also, you can bet my, and many of my colleagues, vote will be for some other party the next election |
| RRE4079 |
I feel strongly that the royalties should be increased, particularly for the oil sand developments. I trust the Government will do this in a balanced and reasonable way, but they need to go up. |
| RRE4080 |
the oil companies should have to pay their fair share of taxes the same as individuals and other companies do. they are using fear and threats inappropriately. |
| RRE4081 |
Having lived in Alberta for over thirty Years,I fail to see why we should listen to the (POOR) oil companies that do not want to pay reasonable Royalty rates (greater than 25%). The resources are owned by the people of Alberta,and no one asks us! When I see multi nationals (oil& gas) having Net profits in the billions of dollars,they can easily afford the write_off. We should not allow them to invest such huge amounts that they can avoid paying higher Royalties. At this rate they will increase their investments so they will never pay the higher royalties. Please note Alaska and Norway have huge Heritage Funds well established for future generations.What happens to Alberta after the resources are depleted? Will the oil&gas companies remain to help us out? or will we leave our children and grandchildren (no heritage fund,no resources). We need a Heritage fund that reinvests the interest back into the fund,not into general revenue.Someone should be accountable for what happens to our Heritage fund. |
| RRE4082 |
Given the level and number of recent responses, especially those from high-level oil and gas executives, it brings into question the process used for conducting the royalty review. If the panel was listening to the concerns of industry, why is there such a backlash with the recommendations that have been put forth? There has been suggestions that there was a weak representative sample; perhaps the members of the panel weren't listening or rather they are not qualified to evaluate the other potential economic consequences. All the talk has been about the money the government is not recognizing with the current royalty regime, what about the offsetting reduction in revenues if there is less activity? While the public and industry representatives were given the forum to express their opinions, how many members of the general public understood the in-depth fundamentals of economics related to oil and gas plays in Alberta. Of course citizens, whether they are properly informed or not, are going to request more money when the opportunity presents itself. Does the average Albertan understand how much the oil & gas industry contributes to the revenues of the province already ? Are they ready to accept lower revenues if industry follows through with announced funding cuts? And what about the companies that have run long-term project economics on large capital commitments, such as the oil sands? It doesn't seem fair to sandbag those companies that have signed-on for the long-haul, only to have the rules of the game changed by the government after significant amounts of capital have been invested. The truth of the matter is that the western Canadian sedimentary basin is a mature basin. As companies are now looking for smaller pools and deeper targets, the returns are shrinking and costs are growing. It is one of the most expensive places to operate compared to other opportunities in other provinces or other countries. The changes proposed by the royalty review could result in a number of companies shifting their focus and exploration dollars to locations outside of the province. I would advise members of the government to heed the warnings of EnCana, Talisman Canadian Natural Resources and others that have voiced significant concern. This has the potential to be another hastily made decision with dire consequences. The federal government's decision last year regarding royalty trusts, which eroded $34 billion dollars in value, is still etched in the minds of many voters. As a life-long conservative voter, I ask you to give the review the attention it deserves and to make a more balanced decision, based on the concerns provided by informed members of the oil and gas industry. [Information Removed] |
| RRE4083 |
Dear Premier Stelmach and MLA's I strongly urge you to accept the "Our Fair Share" report recommendations without grandfathering any aspects. I commend the government on establishing this Royalty Review Panel with emminent thinkers. Having read their report and some of the viewpoints now in the press mainly driven by the oil industry, I think it is essential for government to move forward with these recommendations. Past Conservative governments in Alberta seem fond of establishing review committees, accepting the reports then doing nothing with the recommendations - see the Broda Report, the Mazinkowski report and the report on the welfare of children in Alberta - please don't let this 'Our Fair Share' report follow that pattern. Sincerely [Information Removed] |
| RRE4084 |
I urge the government tyo not let Encana kick us arouind as though we were a 3rd world country. Adopt the recommendations of the Roalty Review Panel in their entirety. |
| RRE4085 |
If higher royalties mean slower expansion and more responsible treatment of the natural resources then I think the choice would be very clear that higher royalties are a good choice. |
| RRE4086 |
Should the government get it wrong, all Albertans will be taking "their fair share" out of a smaller pie. Currently, Albertans are enjoying unprecedented prosperity, partly because previous governments had the wisdom to avoid acting on the basis of the short-sighted "I'm entitled" mentality. A reckless government money grab like the one being proposed will inevitably have negative consequences, and may do lasting damage to the economy. Governments are notorious squanderers of wealth. The Royalty Review panel has taken as a "given" that money in the hands of government will be used more efficiently and/or equitably than money in the hands of investors, risk-takers and wage earners. History teaches us that this is never true. Let us hope that rational heads prevail. |
| RRE4087 |
My name is [Information Removed]and I am currently in my fourth year of studies at the University of Calgary, completing my degree in Economics, which includes a Co-op program. I am presently completing one of my wrok terms for the Co-op program at a private junior oil sands company in Calgary and I have been with the company since the beginning of May 2007. As a student, coming out of High School, I desired to seek a career in the energy sector, attracted by the demand for individuals with analytical skills similar to my own. Due to this demand, I believed that it would not be difficult to begin a career in the industry, relative to other industries. At my current position, I have reviewed the Report extensively and participated in recalculating the economics of the companies future development plans. I regret to say that the new economics that would result if the Panel's recommendations were implemented are not conducive to the companies plans, which would be delayed indefinitely. In addition to the company at which I am currently employed, there are many other emerging oil sands juniors that are in a similar position. These companies represent the future of the Alberta oil sands due to their drive to increase efficiency and cost effectiveness in order to compete with larger players. These junior players drive the innovation within the oil sands and should not be marginalized. I realize that many Albertan's believe that royalties should be increased due to "all the oil executives driving around in $100,000 cars and living in $5,000,0000 homes." I urge the Province to understand that if the recommended changes are made to the royalty structure, these executives will still be payed large salaries. It is people such as myself in the industry who will be expendable in order to reduce costs to adjust for the new economics. Not to mention the billions of dollars in reduced investment into the Alberta economy. My generation represents the future of the oil and gas industry within the Province of Alberta - the industry which has driven the economy of the Province for decades. I trust that my government, which I have elected in good faith, will not make a poor decision based on the largely misinformed public opinion. |
| RRE4088 |
As a student with many liberal political opinions, I usually side with the opposition on matters regarding provincial policy revision. However, I must say that I strongly disagree with any potential revisions to the current Alberta oil and gas royalty scheme. In addition to Alberta enjoying vast annual surpluses under the current royalty plan, oil and gas producers see Alberta as one of the most attractive investment climates in the world. Copious amounts of jobs and wealth have been produced, and continue to thrive, due to Alberta's tax and royalty advantage. Albertans have witnessed oil and gas investment reductions in the past which led to economic downturns. Government intervention in the oil and gas industry played a role in many of these instances. It would be a shame to see this repeated, considering the current climate of prosperity in the province. To use an old phrase, "if it ain't broke, don't fix it." As stated before, I usually side with critics of the status quo, but I implore the Government of Alberta to strongly reconsider any revision or increase to the current oil and gas royalty program. Current investors are happy with the way things are; future investors are looking to Alberta as a place to invest. Please keep the current royalty system in place. Thank you. [Information Removed] |
| RRE4089 |
I think the report should be based on current facts, to get a more accurate report. |
| RRE4090 |
Dear R.R.P.members, I am stongly in favour of a royalty based on profit margin(ie;15 % of after-expences net)The existing system allows huge windfall profits to comletely miss the citizens of Alberta. Thank you for your kind attention to these matters deeply affecting our quality of life in Alberta. |
| RRE4091 |
Hi, I'd just like to point out that even if you increase the royalties on our oil and gas resources, the money will just be wasted anyway. Alberta already has a huge surplus, yet we still don't have enough space in our schools to train enough Doctors and Nurses, we don't have enough Hospitals, and the Teachers of Alberta get paid next to nothing. So, what does the government spend money on instead - sending $400 cheques to everyone that has no impact on the Average Albertans life and is a complete waste of money. So what's the point of increasing Royalty Revenues while decreasing the amount of money invested in the Province - which will have a direct negative impact on the Average Albertan! I would much rather have a strong economy than a one time payment of $400 - unless you're actually going to spend money on the things that matter, Health and Education - but a Conservative gov't wouldn't want to do that. |
| RRE4092 |
The Governement had better thing long and hard about their decision. I am an oil field work and i am very concerned that the government will up the royalties with out conciderning everything. If the royalties go up the oil companies will leave. They are not bluffing. If this happens the citizens of alberta will loose everything houses, vehcles ect. Interest rates will raise drastically. No one will be able to afford to live. Welfare will increase, unemployment will increase ect. I feel as an albertan born and raised that the government has a spending problem not a revenue problem. I vote NO to increasing Royalties. |
| RRE4093 |
To Whom It May Concern I am the operations manager for [Information Removed], a service and supply business servicing the [Information Removed] industry in Western Canada for the past 20 years. We started our small company in October of 1987 with 28 employees and five branches in Alberta. Fortunately we have been able to grow our company through employee ownership and profit sharing. This year we enjoyed our 20th anniversary and now have 70 branches in Alberta - Saskatchewan - British Columbia and Manitoba with over 600 employees. 2007 Has been a very tough year in the service and supply industry - Sales have fallen 30% due to the decline in activity levels from our E & P customers. Labour shortage has plagued our industry so we have taken wait and see attitude hoping for a recovery in 2008. Unfortunately the news announcement about the Royalty review, in my opinion, will lead to reduced spending from our [Information Removed]customers. [Information Removed]is a large customer for our distribution business and the proposed cut of 1 Billion in capitol expenditures for Alberta in 2008 would lead to employee layoffs. I believe that fully implemented, worst case scenario, we would be looking at a reduction in our forecast revenues by 25 to 30% for 2008. A 25 % erosion of our revenue base for 2008 would lead to combined layoffs somewhere in the area of 50 to 75 employees. Or roughly 10 to 13% of our employee workforce. Please consider your decision of taxation long and hard before you make your recommendations to the people. Many of us living in Alberta are employed by companies servicing our customers the [Information Removed] companies and our livelihood depends on it. A voice for 600 employees & their families Respectively Submitted [Information Removed] |
| RRE4094 |
As an employee in the oil and gas industry, I have already experienced the effects of low natural gas prices. Although I live in Calgary where there is a labor shortage I found myself laid off from my job in May. I am terrified of what may happen to employees like myself should the proposed royalty changes take place. I make what should be a decent wage but because of the escalating cost of living in Calgary tend to live pay cheque to pay cheque. My job as a Surface Land Coordinator/Interim Land Agent is specific to oil and gas. If I found myself out of work my family could not afford to live in Calgary at the standard we do now. I urge the government to investigate the impact these proposed changes will have on our province and the shrinking middle class people like myself. Sincere Regards [Information Removed] |
| RRE4095 |
While we appreciate that the royalty system in Alberta needs to be reviewed, we feel that the government needs to include the industry that is affected by the changes and work together to come up with reasonable solutions. The potential for lost business in Alberta and the many, many direct and indirect benefits of the oil & gas industry need to be considered. Alberta could see a significant downswing in most aspects of the economy. Our company does oilfield operating and lease maintenance in Central Alberta for several different oil & gas companies. We could be faced with laying off some of our employees if the oil & gas companies cut back exploration and production in our area. We would like to see the government take time in the royalty review process to include the oil & gas industry, rather than forcing unacceptable changes on the industry. Alberta is a great place to live and work and we want to keep it that way. |
| RRE4096 |
As a long time Albertan of 33 years, I want us to be very careful that what our government does now will not affect the future. If jobs are lost and oil companies do relocate, will the government of Alberta indeed benefit from the royalty increase? Who truly is the winner here? Please don't say it's us the Albertans. We the many Albertans and Canadians are indeed employeed by the oil industry. Let's face it, this province's economy is driven by the oil industry. Being greedy could be very costly. Do we take that chance? I think not. Thank you. [Information Removed] |
| RRE4097 |
In my travels through downtown Calgary I have been informed of the following issues which are causing great concern among industry decision makers: 1 Kyoto Ramifications (what is the ultimate cost to the producer). 2 The Halloween surprise relating to the treatment of Income Trusts [a stable investment environment is critical in today’s market). 3 The run up of the Canadian dollar which is limiting Alberta corporate revenues. 4. The non-predictability of commodity prices. 5. The continued escalation of costs relating to all aspects of the Alberta oilpatch. 6. The high finding, development and production costs relating to a mature basin; ours may be the worlds highest. I am often reminded that we compete, on the open market, with other producing countries whose costs are far lower than ours. One potential solution that should be investigated by the Alberta government (and one that would likely mitigate some of the above-mentioned concerns) would be: the use of funds from a MODEST increase in O&G royalties to establish a separate fund dedicated to offsetting costs [and worry] to the producers and Alberta citizens that relate to the implementation of the Kyoto protocol. I have promised my Oil Patch friends in downtown Calgary that I would capture there thoughts and relay them to the highest authorities. I trust you will do this for me. Thank you in Advance and Personal Regards |
| RRE4098 |
Hi there, My name is [Information Removed]and I am one VERY concerned Albertan citizen. I personally believe that the Report's recommendations, if fully implemented, will threaten continuing investment in the Province, undermine the tremendous growth in the Alberta economyover the past 10 years and lead to a substantial loss of jobs in Alberta. I believe that Albertans want a healthy rate of economic growth, a low level of unemployment, sustainable development and a fair return from their natural resources. For the following reasons, it is my view that the Report will upset this balance to the detriment of Albertans. 1. The analysis in the report is flawed a. The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes b. The Report bases its recommendations on outdated or erroneous costs c. The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn't be taken into account when determining a royalty regime. 2. The Report ignores the economic realities occurring in Alberta today a. Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend b. The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. 3. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta a. The recommendations will have a substantial negative impact on Alberta and Canada's economy b. The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties c. The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation d. Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. The average Albertans prosperity is directly related to the ability of oil and gas companies to prosper in Alberta; if 75% of Albertans don’t see that then they are in for a big shock if this Royalty Review goes through unaltered. The effects from this Report, if enacted will cascade downward at a phenomenal rate. It will be worse than the NEP because back then the government paid for everything; hospitals, healthcare, infrastructure, and community development to mention a few. That is not the situation today. A great deal of money is invested in Alberta by the oil and gas companies; if they cannot prosper in Alberta, they will invest their money elsewhere. That will include the investment in our communities. One example is the [Information Removed]; companies and individuals will no longer be able to afford the donations. This excerpt from the [Information Removed] report to the community clearly shows this point; “Thanks to community support, the neuroscience area has grown to become our hospitals second center of excellence. In fact, our team is fast becoming a nation leader in the field. Ours is one of a select few hospitals in Canada which offers a comprehensive program to help children through diagnosis, treatment, and rehabilitation. This environment is not only better for children who need help today, it allows specialists to continually improve care through clinical research for the benefit of kids in the future.” This same report indicates that they received 8.3 million in annual fundraising revenue up 40% from the previous year. ‘The foundation also has a long term vision to lead North America in family centred care and plans to expand its funding to support more than $30 million of projects and initiatives.’ How will this foundation reach it’s very important goals without community investment and support of their fundraising goals? Take away the community support from the Oil and Gas companies, as well as all of those individuals directly or indirectly benefiting or prospering from the oil and gas industry in Alberta and this foundation will not reach their goals. I personally donate a fair amount to Alberta charities, but I believe in giving back to the community. I will no longer be able to make those donations if I don’t have a job. There is still hope, but there is not much time left. I hope the Government will get it right otherwise we are all in for a tough ride!!! [Information Removed] |
| RRE4099 |
I believe the recommendations should be implemented as close as possible as to how they were written. The resources belong to the residents of Alberta and not investors from around the world. If industry threatens to pull out there will be other players wanting to move in. More important is the fact the if the recommendations are not adopted because of industry pressure, the Government will look like a puppet of Industry. |
| RRE4100 |
October 2, 2007 Honorable Ed Stelmach 307 Legislature Building 10800 97 Avenue Edmonton, AB Canada T5K 2B6 Dear Sir: Re: Feedback on the Royalty Review Report As Chairman of several oil and gas service companies, I am writing this response to provide my feedback on the recently released Royalty Review Report. After reading the report and having several discussions with my colleagues in the oil and gas services sector, investment professionals and customers (who are the oil and gas operators active in Alberta) I have significant concerns regarding the impact of the proposed changes if adopted in their entirety. Particularly hard hit will be the exploration and development of conventional natural gas reserves in the province. Our industry has already been negatively impacted by reduced natural gas prices. Natural gas directed drilling has accounted for approximately seventy percent of wells drilled on average in western Canada over the past five years. Due to lower natural gas prices, we are currently experiencing drilling activity at its lowest level since 1999, and the oil and gas services industry has already undergone several rounds of layoffs in response to these lower activity levels. Should the Government of Alberta adopt the recommendations of the Royalty Review Report, the impact will result in less capital investment in Alberta from the operators as they redirect capital to other projects which will earn them a higher rate of return. Particularly hard hit will be the drilling, completion and production of conventional natural gas projects which are currently only marginally economical given current natural gas prices. Based on the report, approximately $1 Billion of the total proposed increase of $2 Billion in royalty revenue will come from natural gas production. This dramatic increase will result in significant action taken by producers. It will be swift and will translate into further reductions in drilling efforts and the shutting in of many natural gas wells currently producing and paying royalties to the Government. The oil and gas services industry will respond to reduced activity levels with further layoffs and most likely some will be forced into financial distress. The trickle down effect of this will be far reaching and will negatively impact almost every Albertan, regardless of whether they are directly employed in the oil and gas industry. This is hardly the result the Government would desire. The report suggests that Alberta oil and gas producers have enjoyed the lowest royalty rate in North America, especially compared to the states of Wyoming, Colorado, California and Texas. While this is true, the report seems to ignore that we are the highest cost producer of natural gas compared to these other locations. The western Canadian sedimentary basin has for many years been the “marginal” producer of natural gas in North America, given our location, complex geology, remoteness of drilling locations and generally higher cost environment. These facts coupled with the recent increase in the value of the Canadian dollar relative to the US dollar have already had a negative impact on activity in Alberta. One only need look at the current record number of natural gas wells being drilled in the continental US to confirm the economics, while activity in western Canada is at its lowest point since 1999. As a result, comparing our royalty structure to that of jurisdictions which are operating under different economic inputs is not only erroneous but irresponsible. It is the cost side of the equation which has brought the most negative attention to the Report. While Alberta has been enjoying record oil prices, gas prices have been declining. The report seems to completely ignore the fact that the costs of these projects have been increasing dramatically over the past two years. Service costs to operators have increased, primarily as a result of higher wages, fuel, communications, insurance, safety and environment costs. These increased costs ultimately have a negative impact on the rate of return of all projects, regardless of record oil prices. Once again, in the light of reduced natural gas prices, the rates of return will be significantly impacted by the proposed changes to the royalty structure on gas programs resulting in many being postponed or cancelled. In summary, the adoption of the Royalty Review Report in its entirety will have significant negative implications on the economic prosperity Alberta has enjoyed. Almost every Albertan, including the close to 1,000 Albertans employed by the companies I am Chairman of, will be negatively impacted. It is imperative that you continue to consult with the industry to find a much more palatable compromise than the adoption of all the recommendations outlined in the report. Otherwise, the economic outcome will be unlike Alberta has seen since the adoption of the National Energy Program. Sincerely, (“signed”) [Information Removed] |
| RRE4101 |
I work in the oil patch, I have already seem a change in the activity, I left Manitoba 25 yrs ago to get away from an unfriendly NDP government, I now see the same in Alberta, Alberta advantage be dammed, I have recently bought land in Sask. and will be moving if Eddie throws the screws to the patch |
| RRE4102 |
Hello. My name is [Information Removed]. I want to voice my concerns about the Royalty Review. I would like to know how a province that has through a lot of hard work and sacrifice ended up debit free. Needs to raise the royaltys to get by? I thought getting to debit free status was going wrap up alot of problems. Now we are going to risk major damage to this great community. Hospility, Construction, and Retail are just a few of the industries that will be hurt by the fleeing of the Energy companies. How much better off than the rest of the country do we have to get? What ever happened to if it is not broke don't fix it? I realy hope we don't intend to bite the hand that has been feeding us for years. I strongly oppose such a large increase in the oil and gas royaltys and furture votes will reflect my objections. Hopeing for the best for Alberta. [Information Removed] |
| RRE4103 |
The New royalty report is flawed in both its make-up and assumptions. After seeing both significant International and Canada Oil and Gas operations, my impression is that Western Canada has a struggle to maintain competitiveness in attracting investment to its convention resources. Due to very good management and exploitation of the resources, there are very little quality reservoirs left. International resources, which havn't had the benefit of extensive Canadian/American knowledge and efforts, have significantly more potential. Domestic companies are drilling wells with the aim to produce an amount of oil or gas that woud be simply left in most International fields (Onshore or off). The only advantage Western Canada has is the stability of government and fiscial regime. Now there are thoughts to change this-Why? to destroy the industry? If this happens there is no resaon for Companies to invest here. I personally will make a career out of helping small companies make the switch to the International arena. 2 Billion increase in Royalties will turn to a loss of royalties as investment and production dries up. Decline rates are relatively high, and with no new investment royalties will follow the same path. There also seems to be a perception that conventional Oil and gas benefit from proposed new royalties. This is at todays prices-Most Producers aren't making money on gas fields at todays prices-that is why gas drilling is down. They are hoping for better prices. Now if the new royalties are in place, the upside is gone. As prices increase, royalties also increase significantly, and the slim margin evaporates. This has not been explained at all through the media. Oil Sands are a different matter, they are a significant world class resource, and will continue to be attractive. However the structure is still wrong. What the proposed changes will do is push companies never to break even on their projects within Canada. If the projects never make it to breakeven, the royalty stays at 1%. The crude is then shipped to the US at a low discounted transaction cost (because of its heavy nature) then the refinery (Which is located in a low tax state) which makes significant profits from upgrading low cost oil to high value products. And Alberta gets nothing-whether royalties are 25, 33 or 50%. Please do not destroy the economy of Alberta-it will not destroy Calgary or even hurt most of the larger Oil and Gas Companies(since this seems to be turning into a Calgary vs rest of Province fight), but it will affect almost every small ALbertan town which relies on Oil and Gas service activity to fund a significant part of the economy. Regards [Information Removed] |
| RRE4104 |
I have worked in the conventional petroleum industry for the past 45 years. I urge alta government to consider that "more royalty from the industry may, in fact at this juncture of the development of the sedimentary basin, be less revenue in the immediate future. An industry turn down will be at the price of thousands of albertans jobs lost so be prepared for that eventuality. Turmoil will be the result and tax revenues will suffer as a result. |
| RRE4105 |
Don't shoot the industry that feeds the province in the foot! As oil companies pull out of Alberta, all other industries will follow. It is the oil industry that fuels all other industries in Alberta. Haven't we figured that out yet? What good is it if the government gets a higher percentage of nothing? Don't kid yourself - this is exactly what will happen. Also, will Albertans feel they've gotten their fair share when all other industries die because it's pushed the oil industry away? Perhaps they'll realize this when they're sitting at home on unemployment because there isn't enough work for the any work in Alberta. The ramifications have already been felt at the energy company I work for. Where are the 4000 plus employees here going to get the money to pay their mortgages when the oil industry dies? I don't mean executives in Calgary but the 4000 field employees that don't have formal education to fall back on. Are they going to support their families and pay their mortgages by pumping gas? First hand, I have seen oil and gas organizations give back to the province and this includes providing good employment for the blue-collar workers. Should we not be grateful for this? Our field hands are the ones that will suffer the most. As it has been slow in our industry because of low natural gas prices, we've already lost the majority of our employees. These employees didn't have trouble finding good employment as other industries are still going strong. When these other industries start to slow down where will they find employment? Please don't make this fatal mistake - too many Albertans will suffer even though they don't realize it. HELP! I don’t want to lose my job and neither do the 3500 – 4000 employees of this organization! How are we going to pay income tax if we don’t have any income? |
| RRE4106 |
I support the raise in royalities and other changes detailed in the report.. I think that the price of oil, along with corporate profits reported by leading oli companies, would support a rise in royalities. After all, we ALL benefit from improved infrastructure, a diversified economy, a clean environent and all the things governments are responsible for taking care of. |
| RRE4107 |
Oil companies have announced during their AGM's that they made record profits...one cannot dispute that fact. The oil companies are whining to protect their shareholders, and iour government must take a strong stand protect Albertans'. Are these 'majors' really going to leave? I highly doubt the yanks will, they need our oil. It is time Canada stood up for Canadians and not bow to the capitalistic yanks. We need this money for our infrastructure as Alberta suffers the burden of thousands of people coming here to work. Thanks for listening, please don't let Albertans down by cowing to the majors and their flunky lobbyists. |
| RRE4108 |
The government should follow the recommendation of the Royalty Review Report. The resources are not going anywhere. If current oil companies pull out (which is unlikely) there will be others to take their place, given the huge, low risk profits to be had in Alberta. Of course the oil companies are making threats, but where else are they going to go, Saudi Arabia? |
| RRE4109 |
Wow, as an American working for the 7 th year in Canada, I am amazed at how you don't understand the business. You have vibrant O&G sector and starting to build a few world class companies. And then you place some of the worst anti-business proposals I have ever seen. You will kill the golden goose no doubt. I am a lisenced petroleum engineer and an economist. If you further take royalty from the industry, you will see a recession in the industry that will affect all other Alberta business and other provinces. You will make less revenue by charging more royalty. Companies simply will not drill. Don't kid yourself, it is simple unemotional economics. If the wells do not merit investment, none will come. Your proposed actions will cause a prompt drop in production as no new wells are drilled and you will see unemployment rates rise quickly in the province. Most of the companies have a choice where to invest and your proposal will sterilize Alberta for many years to come. Congrats on backing yourself into a corner with the voting public on a bad program. Remember the NEP? This will have a similar effect. As an American who was once impressed with the Alberta government, I am amazed at the lack of business sense. |
| RRE4110 |
I ask only that we be careful to not cripple the industry. We have seen a signifigant slowdown ( I have lived through a few in my 28 years in the patch) and the effect may be compounded. I can't rebound at the loss of employment as I could years ago. Please move responsibly. Thanks, [Information Removed] |
| RRE4111 |
As a oil and gas worker and a tax payer, it would be clear to me that any increase in revenue from a revised royalty would be lost in person and corporate taxes due to the fact that the industry would suffer significantly. However, if it was necessary for the government to increase royalties it could be applied to the oil sands industry to the before pay out whereas oil sands operators are only required to pay 1%. This could be increased to 5 or 8.5% otherwise, I [Information Removed]is completely opposed to any changes. Please contact me at [Information Removed] |
| RRE4112 |
I am deeply troubled by the possibility of a restructuring of the petroleum industry in such a way that economics will cause drastic cut-backs in the exploration efforts of all companies involved within Alberta. I have been involved in many discussions with graduate level geologists and geophysicists who feel they will be forced to take their skills elsewhere in order to have employment. Considering the demographics of all industries in Canada right now, if on top of the foreseeable attrition we will be faced as a society the remainder of geoscience experts are driven away, I am not sure how the industry will be able to be successful on any meaningful level. [Information Removed](defend fall 2007) |
| RRE4113 |
As the current royalty rates were not part of this report it would be helpful for Albertans to understand exactly what industry is currently paying. If rates need to be adjusted then they need to be fair. As a long term resident of Fort McMurray a hike in royalty rates that would come DIRECTLY back to our community would help provide the much needed infastructure that lack of planning has caused. As a resident not employed by one of these "industry" players living here becomes more & more difficult. Image living in a city that has grown 3 and 4 fold in the last 10 years and still has only the same services as 10 years ago. By this I mean no additional small businesses to provide the services required by our community. Due to risuing rents in the retail sector. IE rent increase from $11,000.00/mth to $30,000.00/mth Our community is suffering BECAUSE of industry yet they cry when FINALLY someone has the [Expletive] to say its time to pay your fair share. I could go on and on with examples but at the end of the day I do support a royality increase, but what does a 20% increase actually mean. What are the current royalty rates? Do not let these threats from industry stop our government from this process working for the Alberta people. [Information Removed] |
| RRE4114 |
I would have thought, especially in this province, that lessons would have been learned as to what impacts can be for the energy sector when governments decide how revenues should be reallocated. I have read the report and am flabergasted at the fact that escalating costs have been totally overlooked when it comes to how they affect overall industry profitability. Mr. Stelamch needs to get in touch with his provinces most impactul industry. |
| RRE4115 |
As a forth generation Albertan and a Professional Geologist working in the Alberta Oil patch I feel strongly against the Panel's recommendation to increase Royalty taxes. Increased taxation on the backs of Alberta's major tax generator , when natural gas is at a 5 year low, coupled with the income trust tax shift by the feds and the on par Canadian dollar with our USA trade partner will do major harm to this sector. What will you do "when" oil drops back to $40.00/barrel, lower taxes? Albertans must think past the cost to fill their auto's. Remember the rebate made payable by revenue generated by the patch? That rebate paid for a lot of gas station fill ups. Don't killl the goose that laid that golden egg. If implemented I will work hard to make sure the Stelmach government is not reelected when it comes time to vote. Respectfully, [Information Removed] |
| RRE4116 |
It is disgusting to see and hear the weeping and wailing of "big oil" over the royalty issue. Realistically, where else can they go where there isn't nationalized oil? The oil sands are a resource that rivals the reserves held in Saudi Arabia. Why are we so reluctant to charge them royalties? This business of their recovering their investment while they pay only one percent is ludicrous! Oil is $85 a barrel. The original deal was made when it was about $20. Can't our politicians count? The Royalty Report is flawed in that it doen't address the oil sands. It hits the more vulnerable areas and leaves the big guys alone. They will not leave. They have no place else to go! |
| RRE4117 |
Why are natural gas % so high? Why is conventional oil different than oilsands? How these products are extracted and the cost should play a major part in the royalty taxes. Was this considered??? The profits these companies make on the products should also be considered. So if new technology comes along that reduces costs are we again going to increase taxes???? |
| RRE4118 |
Please reconsider the proposals made to the royalty review panel. I truly believe that if the Alberta Goverment adopts it in full the province will go into recession. I believe the effects of the royalties proposed will be far reaching and Albertan will lose $2billion in royalties instead of gain . Redo the math, listen to the Oil and Gas Companies they have done the math. In fact I have done the math. Our maginal projects are now completely non-profitable with todays prices. |
| RRE4119 |
Premier Ed Stelmach: As an Albertan and an upcoming university graduate with a BSc. in Engineering, I am currently entering into the oil and gas industry and am amazed by the lack of positions for new graduates. The fact that these companies, which make up a significant portion of the Alberta economy, are reluctant to hire new graduates is a sign of their concern over the potential changes, these changes being brought on by the possible repercussions of the Royalty Review. I do not doubt that the recommendations of the recent royalty review report are causing the industry is becoming increasingly worried over the potential changes and the impact these changes will have. This is being reflected in the current job market and will have significant impact in Alberta's future. I am very concerned that the Royalty proposals put forth by the government I voted for will have a hugely negative impact on our economy.These concerns are based on various Economic Reports published by competent economists and would invite you to show me an economic report that disproves this. Ultimately, the release of the royalty review report, without implementation of any of its recommendations has already began to negatively impact the Oil and Gas industry in Alberta and its associated job market. I urge you to carefully evaluate the impact of the royalty review on the future of Alberta's economy as it may already be forcing university graduates to look for work outside the province. Thank you for your careful consideration of this issue, and look forward to hearing your comments on the issue. With Best Regards, [Information Removed] |
| RRE4120 |
Your reccomendations are miscalculated and understated dramatically. What you are doing will hurt Alberta not only in revenue but in job loss from corporations, to skilled trades right down to the service industry. As a voting member of society I demand that the panel conduct further analysis and work, through a mediator, with the industries affected to come up with a fair an equitable royalty regime that will not cost Alberta it's oil and gas |
