| 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 prosperity. |
| RRE4121 |
As an Albertan working in the Canadian Oilpatch I understand the government's need to ensure that the wealth of the province is kept within the province. However, I am concerned the the increase in royalties will have the opposite of the intended effect. Instead of transferring wealth to Albertans we will be transferring projects to other countries with more beneficial tax treaties. The result would be loss of opportunity for not only myself, but my Albertan peers. Sincerely, [Information Removed] |
| RRE4122 |
Dear Mr. Premier, if you implement all the recommendations of this Royalty Review, I'm worried that my husband and I, who both work for oil & gas companies, will find ourselves unemployed. As contractors rather than employees, our jobs are first to go. We have already heard from one major client that if these recommendations are implemented, jobs will be cut. They have already instituted a hiring freeze. Please Mr. Premier, our livelihood depends heavily on this industry. Do not jeopardize our jobs. Also please remember the number of jobs related to the oil patch, not just those who work directly for oil & gas companies. Many, many jobs are created because of the spin-off from these companies and the booming economy created by this industry. If you do determine you need to make adjustments to the royalty system, please consider phasing those changes in over the long term, rather than immediately instituting changes. Existing operations should be grandfathered, with gas wells exempt due to the low price of gas. Yes, Albertans own the resources, but we also benefit by having the best economy in North America. Please don't mess with it! Lastly, it was my understanding that small "c" conservative governments were hands-off private industry. Many of your current comments sound more like an Ontario Liberal than an Alberta Progressive Conservative. Perhaps that is why you chose to defend your stance in Ontario rather than downtown Calgary, where you might not get the feedback you want. If you proceed with these changes, I will, for the first time in my adult life, not be voting PC in the next election. |
| RRE4123 |
I am a resident in Calgary West and I am compelled to comment on the Alberta Royalty changes proposed in the “Our Fair Share” Report which is based on flawed analysis, erroneous data and incorrect assumptions. Costs The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes. The Western Canada Sedimentary Basin has one of the highest finding and development costs in the world. The Report bases its recommendations on outdated or erroneous costs. Deep Gas Royalty The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating drilling and development activity in the western part of the province where most of the remaining potential to add significant production is located. The government collected 3.1 billion dollars from the sale of petroleum and natural gas rights in 2006. Much of the land purchased is in the deeper part of the basin where wells qualify for Deep Gas Royalty Adjustment Program. The government can expect a dramatic reduction in land sale revenue if the Deep Gas Royalty Adjustment program is eliminated. In addition, companies should be reimbursed for any undrilled lands that were purchased based on economics that incorporated this Program. Oil Sands Severance Tax The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation of projects. Activity Level The report’s assumption that current activity levels will be maintained is just not true. Many companies have the ability to redeploy capital outside of Alberta. Make no mistake, they will do it. No company will invest in a project that is uneconomic. The government should expect a significant drop in activity levels if the report’s recommendations are implemented. 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. Summary I encourage you to consider the following: 1. The fiscal terms for existing projects should be honored, 2. The current Royalty Adjustment Program for Deep Marginal Gas Wells should be maintained, 3. The thresholds for the sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs, and 4. The Oil Sands Severance Tax should not be implemented. |
| RRE4124 |
Thank you Mr. Stelmach, you just [Expletive] my family. Thank you very much! |
| RRE4125 |
I feel that it is imparative that the Alberta Government does not rush into changing the royalty rates on Alberta resources. We in Alberta have had an influx of people from other provinces into Alberta. They have paid unheard of prices for their homes in Alberta and are "mortgage poor". Many struggle to pay the mortgage, car loans and to buy groceries. This is a serious problem when the economy is booming as it is but if the Royalties are raised too quickly and to a point that further investment in Alberta becomes unviable these people will loose everything. I listened to people who support the rapid increase in Royalties but I don't think they have thought out the drastic effect on the Alberta economy and their personal lives that this will bring. Many, didn't live in Alberta in the late 1980's and don't realize how difficult time it was. The oil and gas industry are not bluffing, if the royalities structure is changed dramatically they will indeed cut their investments into Alberta. We don't want Alberta to become like Saskatchewan was when companies didn't want to invest there because they didn't trust the government. It will still takes many more years before Saskatchewan loses the reputation that they created. I trust the Alberta government will show wisdon and talk to the oil and gas industries and work out a royality structure that will not hurt Alberta's economy. Talk to the industry and work out an agreement that will save my job and many, many Albertans jobs. |
| RRE4126 |
Royalty Panel findings are flawed. There are signs everywhere that all is not well in Alberta, there have been various oil sands and upgrader projects put on hold, the nine month Drilling Rig Utilization is the lowest since 1999. Most recently we are now seeing housing prices declining and a cooling in the Alberta economy. [Information Removed] announcement of reduced spending in Alberta if the government was to use the Royalty Panel recommendation is reality and it is simple economics. The government take is higher and they have less to spend in Alberta. Today only 41% of the Rigs active in Alberta today and some service companies have already reduced staffing levels, both show signs that industry is not booming. As an Albertan, we have had some very tough times due to poor government policies like the NEB, as well as commodity price crashes. We had high unemployment, job losses in the 1980’s, most recently we had a period of growth and prosperity in Alberta which has made this province the envy of Canada. We indicate it is the “Alberta Advantage”, something we as Albertans are very proud of; as such it is important to ensure that a poor government decision on royalties by a flawed report does not destroy our provinces economy. We have no sales tax, low taxes, low unemployment, no debt and a heritage trust which continues to grow. Let be thankful of what previous good government policy has brought this province, and not accept this flawed report recommendations. [Information Removed] |
| RRE4127 |
I AM STRONGLY AGAINST THIS REVIEW |
| RRE4128 |
As an oilfield contractor, I want my opinion to be heard. We have two young children, a home, two vehicles, the average family. If there is no oilfield activity my family has no home, no vehicles, our well being is dependant upon oilfield activity. This year alone with natural gas drilling down, times have been tough with the ever rising cost of living, etc. I ask you to consider us, consider the people who will lose their jobs, I also ask you where are you going to create more jobs if this is adopted? |
| RRE4129 |
If I wanted higher government control of cash flow, I'd support the NDP. Stop clowning around, and let the free market work. That's why this party was put in power. |
| RRE4130 |
My feedback is as follows: I can understand historic oil prices triggered Royalty Review, but we should also understand that the cost to build the oil sands/oil/gas projects have also sky rocketed. Oil prices have gone up by 3 times in past couple of years so does the costs to build the projects in Alberta. The existing Royalty regime is self adjusting to higher oil prices and costs. We can see the economy is slowing down in Alberta in 2007 and 2008 compared to 2006. If new Royalty regime is implemented, there will be short-term employment in Alberta, the capital will fly away to other economies and markets. What if oil prices come back to $50 due to slow down in India and/or China? I think the Government should consider all the scenarios before taking any decision. Government may able to collect $2billion in Royalty but it could pay back to people who would be unemployed after new Royalty Review? |
| RRE4131 |
My family is looking to your goverment to do what is right and proper for the people of Alberta,in respect to this subject.We went so far as to buy memberships in your partry so we could vote fof you to become Premier. I had 17 years in working on the original Oil Sands plant from 1968.Those wer the days for Government help but not with oil at $80.00 per bbl.We hope a trust you are not influenced by the pleas of big oil , who only work for owners profit and top management , stock options and bonuses,not the people of Alberta.Talk to Peter Lough |
| RRE4132 |
Only the Government can break a contract, people in business can’t they would get sued! Is Ed Stelmach from Saskatchewan, because that’s where all the business will go. International investors are already pulling money out of Oil companies. Is this how you put the money back into the people’s hands? How about grandfathering the existing contracts, and setting new contracts, GRADUALLY. You really want to cause a recession don’t you? WHY DID I VOTE CONSERVATIVE AGAIN? For the National Energy Board to be re-instated? Please stop the insanity, you are driving business away! Thank you |
| RRE4133 |
Implementing the recommendations within the Royalty Review Panel report will be devastaing to the vibrant Alberta economy. If you go forward with these recommendations, I will loose my home, my retirement savings and my job. I have three children, think how this will affect them. Think of the thousands of others that will be affected in much the same way. Please, slow down, analyze the information and make the right decisions. The threat of the impact is already having a mild affect in the Grande Prairie area, specifically in the housing market. Think about what the panels Royalty Rate adjustments will cost us. I agree that the government should work with industry, and increase Royalty Rates, I do not agree with the Royalty Review Panel. [Information Removed] |
| RRE4134 |
I'm curious why the Government always seems to be out of sink with what is best for the people and our economy. The current Government royalties have proven rewarding for the Province and got us out of debt and now the Government wants more money??? With the release of this proposed royalty adjustment, when our economy seems to be in a down turn, this will likely have a negative impact on our economy resulting in a reduction in Alberta investment and loss of employment for our residence. |
| RRE4135 |
The analysis in the report is flawed The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, The Report bases its recommendations on outdated or erroneous costs, and The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn't be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta The recommendations will have a substantial negative impact on Alberta and Canada's economy, The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. [Information Removed] |
| RRE4136 |
It is more than just revenue dollars and royalty percentages that need to be examined. Most oil companies have a very high cost of capital in Alberta due to construction, power, and labour costs. It is all about undertaking capital projects, interest rates, and where the Canadian Dollar is. More long term analysis is needed. In addition, the "credit crunch" is forcing companies to save cash and really examine new projects. By really examining I mean not the same way they examined them in 2004/2005 which was undertake every project possible. The internal rate of return must be higher than cost of capital for any company to undertake a project. By going forward with this proposal the province will gain more royalties for a year or so and then come out lower than before as companies will start undertaking more projects in the US and oversees where the cost of capital and cost of doing deals is significantly lower. I know the people working at the energy board know all of this. The problem is that some governmental head honcho that is directing traffic wants to push this province beyond its limits. I agree and support that an analysis should be done, but not on oil and gas royalties. How about a report on an efficient way to allocate and maximize the government billion dollar surplus? How about a report on how to generate foreign investment and keep cash circulating in this province? The tar sands alone do not generate foreign investment but a positive NPV analysis on investing in the tar sands. This concept is the real way to actually increase royalty’s revenues; make it cheaper to invest here. The Alberta government is not strapped for cash, nor are the citizens of this province. You are looking for feedback from “the people” but most people do not understand internal rate of return, cost of capital, and economics. Of course the public will want more services and more hospitals and who else to blame but the companies that generate and are responsible for the great quality of life we have in Alberta. I know the downside of greed personally, and this applies at macro levels too. Getting greedy will just hurt the government in the long run and therefore the people of this province. Let us be happy with what we are all receiving currently, because as a resident of Alberta I know I am. I would love a hospital right outside my front door but I would rather have our current situation in Calgary than to have the city turn into an eventual ghost town with no activity and I have waited in the hospital waiting rooms, and fought traffic on the Dearfoot just like the next person. Looking for always more and more is not the answer. The province should examine how they should allocate their billions more efficiently and how to keep capital circulating in this province if they want to increase "the peoples" quality of life. I bet the time it took some governmental team to write the "Royalty Report" they would have been able to brainstorm some great ideas for better allocation and budgeting of money in this province. I repeat, more is not the answer this province needs. If you want to see less oil and gas activity, fewer mergers, more divestitures, fewer junior oil and gas companies, fewer capital projects undertaken, then rip out another 200bilion from private circulation just like you did when you announced the taxation on trusts. When does the government take a look at how they manage money? This is just my opinion. |
| RRE4137 |
why rock the boat? if this impacts the economy in Alberta, who is going to bail people out when they can't make their mortgage payments? |
| RRE4138 |
I am a long-time resident of Fort McMurray. I have seen the infrastructure of this city stretched so much, and I know the rest of the province has plenty of pain, too. I support the idea of the oil industry paying more. It wouldn't be offensive to me to put a benchmark where if the price of oil was below a certain point that royalties would be significantly reduced. However, it is ludicrous to accept that the oil companies should be making billions yet claim that their industry would die with a few more percentage points of royalty payments. Personally, this is an issue that will influence where I will vote not only for the next election but for years beyond. I urge the government not to cave in to the oil industry's "sky is falling" hysteria. Thank-you for letting me have my say. [Information Removed] |
| RRE4139 |
Comments on Alberta’s Proposed Royalty Review I am an Albertan, born in Calgary 55 years ago. I am a Professional Engineer and have worked in the oil and gas industry for 34 yr. I have seen good times and bad. I’ve seen what the Liberal’s NEP did to a vibrant economy, which took years to rebuild. I trust the Alberta Conservatives will take the necessary time to fully understand the implications of the proposed Royalty Report and make a fully informed decision before implementing any changes. I hope they will take the collaborative approach to include both industry and government bureaucracy that built the current functional royalty structure. I believe the proposed increase in royalties from 25 to 33% will have a detrimental affect on the industry that employs directly and indirectly a large percentage of Albertans and Canadians from across the country. I have no doubt that it would not only slow the economy as expected, but cripple it. Within our company, we analyse the economics of every project very carefully before proceeding. It is black or white. If a project is below the hurdle it gets inventoried until prices and costs improve. We have many projects that have not made the hurdle for the past 2 years, without the affect of the proposed Royalty change. Many bread and butter gas projects in central and southern Alberta do not currently meet our hurdles. Over $1.5 Billion of the proposed $2 Billion royalty increase will come from existing gas and conventional oil in the near term. This will have a huge impact on the operating funds that generate future projects for our industry and the province. It then becomes an economic decision, weather to risk spending capital in a province that wants a 60% take, or scale back and spend in other areas of the country or world. The Panel believes the government should expect a 60% take with no risk, and offer the industry 40% reward, after taking all the risk. Alberta has long been an incentive based environment, where the risk of investments is offset by the reward of gains. The significant upset of this balance will surely have a negative impact on the Industry activity and subsequently the Province’s royalty takes. The Royalties as proposed will take more from the stronger wells than the weaker wells. Most of the big wells cost millions to drill and develop, with risks as high as 90 to 95% (5-10% chance of success). Consider Alberta as a mature production basin, where the risk of success is higher, the costs to have success is higher, and the reward of success is lower than at any other time in my career. Any royalty increase at this time must be done very carefully with the main stake holders negotiating a deal. Any royalty increase should only affect bitumen development after pay out on future production. I hope this government isn’t serious about changing the economic rules on existing conventional gas and oil projects. Simplify the royalty process for the conventional projects, but leave it essentially as is. Make reasonable royalty changes to the future bitumen and tar sand projects for the future of Albertan’s but remember, it’s taken over a hundred years to get tar and development to this point. As an Albertan, I also want the right royalty retained for the benefit of all Albertans, and the futures of my 5 adult children. I want a healthy Alberta for the future of everyone, one where there are jobs and opportunities for motivated citizens. Not a province where the government believes their job is to support those that have no incentive with its no brain royalty grab. A new Royalty must be balanced with sustained growth and profitability to the developers and risk takers. If your government cuts too deep, with out properly evaluating the down side, you will create an immediate recession. How then will this benefit most Albertans? Has this government got the resources to help all its new citizens from across Canada, who moved here for the opportunity to succeed? The industry will move very quickly to mitigate the impact of a large royalty increase and very slowly to regain confidence in a stable economic environment. Further, the government must consider the ripple affects of the investment and RRSP accounts held by thousands of Albertans that are weighted heavily in this provinces vibrant oil and gas industry. The Province’s royalty take is not the only way that Albertan’s look after their future. As a baby boomer, I am counting on retiring in the next few years on my own investments, not the provinces royalty grab. The implementation of the current proposal would have a detrimental ripple affect in all energy related funds, mutual's, and stocks. There is a way for this province to retain a fair take of the huge oil sand reserves, but it must be balanced with the risk investments and economy that supports all Albertans. Do it smart, do it right. Not the way suggested in this report. [Information Removed] |
| RRE4140 |
I think it would be naive to think that energy companies wouldn't re-direct their budgets to other places in the world as far as exploration if forced to pay unrealistic royalties. I find it ironic that the same people that are crying for more royalties would be the same people that would cry foul if there were fewer infrastructure projects paid for throughout the province. The very people that have come to expect a huge surplus in the provincial budget every year fail to realize how different that budget would look if many of the scheduled projects didn't happen. There's also little concern for the small town business people that depend on the energy sector for their livlihood. Five years ago the average Albertan didn't even know about the energy royalties. Unfortunately I don't think that they know more now. Ask the same person how much is paid in royalites and they can't break it down for you; they only know they want more. What do we know about the panel that conducted the review, and what type of model can we base it on? I think everyone has gotten a little greedy and presumptuous over the last 5 years and have forgotten how quickly things could change. With all of the people that have moved to Alberta over the last few years, what would happen if a large number found themselves out of work? It would be worse in rural Alberta. I'm not opposed to a review, or even an increase, but it has to be reasonable. |
| RRE4141 |
I am extremely impressed with this report and also impressed with Premier Stelmach?s bold decision to call for the report to be produced. Ralph Klein who was so secretive that his actions were always suspected of being influenced by back room interference would not have allowed this. I ask that this report be implemented without change as I have checked the claims and I find them to be very accurate. I also ask that Premier Stelmach and Minister Knight not take any notice of the whining from [Information Removed]who are too greedy by half. They have made billions of profits from our resources and its now the turn for the people of Alberta to benefit from our own resources. If the report recommendations are not accepted in their entirety or if it they are watered down to benefit the Oil Companies, I will never vote conservative again as I will have lost all my confidence with the party. If this happens the Conservative Party of Alberta will have become the party for Big Oil and Big Corporations and not for the ordinary citizens of Alberta. Thank you for this opportunity to express my opinion. [Information Removed], a proud Albertan and Canadian. |
| RRE4142 |
A few items from the report: "Albertans do not receive their fair share from energy development. The royalty rates and formulas have not kept pace with changes in the resource base and world energy markets. Albertans own the resource." "These new targets are lower than the total take of several competing jurisdictions..." In view of that, does it not make perfect sense to raise royalties to be more in line with others? And get some of what should belong to us in the first place? Of course oil companies are crying foul - because it lessens their bottom line. But frankly, they are still making huge profits. And if they leave now, they will only come back later because they NEED the oil. It's not like they have a whole lot of options of where to go. If this causes a bit of a slowdown in our superheated economy right now - is that such a bad thing? We are at the point now where we are strained to the limit and 'average' working family are struggling. Above, please ensure that you make someone accountable - are the royalties collected actually reflecting what should be paid. The report addressed this as well and this MUST be implemented. Quit selling our - and our children's and grandchildren's - future for pennies on the dollar. This resource belongs to US. Developers should be given a fair return, but we should also be paid fairly as well. This report gave you the truth you asked for in no uncertain terms. Don't bury it. Don't discount it's messages Finally, don't be surprised at the anger of the public if you do. |
| RRE4143 |
Hello, This Government needs to understand the implications their decision will have on the entire province. The province has enjoyed many years of prosperous wealth and growth. Taking additional revenue from the oil companies is not going to put more cash in the pockets of Albertans. We need to fully understand the ripple effect it will have on small business and other sectors in the province. The media perform their surveys but only to collect the answer that will help sell their papers and magazines. The cost to produce oil in this province is much greater than in other traditional oil producing countries. This needs to be taken into consideration. I do not work in the oil sector nor does anyone in my family. As an Albertan, I want our provincial government to slow down, take a thorough look at ALL the implications and make a decision that will sustain our economy and look after everyone. Regards, [Information Removed] |
| RRE4144 |
Implement fully as recommeded |
| RRE4145 |
Can we please please put a stop to this. The indecision on this and the fear of it is already causing major crisis in our real estate market. I fear if this goes through we will see a crash and people being forced to walk from their houses. Calgary has been too volatile, we need to create a stabilization in our communities, and in our real estate. |
| RRE4146 |
I urge the Alberta Government to seriously consider the ramifications of unilaterally changing a structure that has been developed and revised by the Alberta Government over many years through negotiations with the petroleum industry. I'm not suggesting that the structure shouldn't be changed in the light of the recent surge in oil prices. However, a unilateral change with no "grandfathering" would be acting in "bad faith" much like many of the third world government regimes. According to [Information Removed]an independent petroleum research company based in [Information Removed], Canada currently has the lowest Return on Investment of any of the world's petroleum producing countries. Yet, international petroleum companies have been willing to invest in Canada because of its relative stability. If that stability is eroded and the return reduced even further, Canada will be exposed to a serious reduction in petroleum investment. Thank you for your attention to my comments. [Information Removed] |
| RRE4147 |
My wife and I were on our way back from Ottawa this past week ( Oct. 10, 2007). Whilst on the airplane, I had occasion to read the Financial Times and , of course, read the articles dealing with the royalty report and specically what the "oil patch" executives are thinking of doing if the Alberta Government go ahead with implementing the recommendations. The tone and the specifics emanating from theses oil excutives is nothing short of "fear tactics". It was sickening to see that they would stoop so low...THE GREEDY JUST WANT TO CONTINUE BEING GREEDY!!!. These oil companies and their executives forget that they DO NOT OWN these oil reserves--- WE ALBERTANS DO!. I say to heck with them and hope the Alberta government implement the advice given to them by the Royalty Review Group. The $2 billion increase in royalty revenue is a drop in the bucket in the overall scheme of things and these greedy oil executives know it. I also say if these oil companies do not want to continues making billions of dollars in Alberta because of this, then so be it; there are lots of other players out there that would love the chance to invest in a stable political climate such as Alberta....we will prosper without them as we have the market that want our product. Mr. Stelmach, please show the leadership to put Albertans ahead of these greedy oil companies......!!! [Information Removed] |
| RRE4148 |
Do not make major changes to exisiting, follow some suggestions by those recently suggested by industry sources, modify your< gov'n> stand, [Information Removed] |
| RRE4149 |
I think its about time that something was done to make the Oil companies pay their share. I am sick to my stomach every time I read of the Oil Patch threatening us about leaving if we dare to ask for our fair share...I don't see them getting out of Norway or Texas or any other place that charges more tax than we do.If they don't want to drill then get someone else. |
| RRE4150 |
Be prepared for the collapse of the Albertan economy when massive amounts of investments that have fueled Alberta' success is no longer there. The royalties will produce the death knelt to the good times when a down turn in the global economies inevitably arrives. |
| RRE4151 |
I find the Royalty Review Panel's recommendations myopic and flawed. The majority of the presumptions and conclusions that the Panel has drawn are false and misleading due their reliance on erroneous data.The Alberta Basin is the most expensive onshore oil and gas basin for operations in the World. Prices in large part are dictated by global commodities (ie. steel). If the Alberta governmnet can not reign in or control oil sands development it should not resort to taxing the general oil and gas industry into submission. One in six Albertans are employeed by this industry. The Province runs a multi billion dollar suprplus annually. Why does it need more money? [Information Removed] |
| RRE4152 |
I disagree strongly with the Royalty recommendation. I think the basis is flawed in using drilling costs and gas pricing during a very short boom in the 2005/2006 period. Investment has been noted to have dropped by over $2.5 billion from 2006 to 2007 by the likes of Encana, CNRL and ConocoPhillips alone. These companies and others have expressed that this recommendation if approved will cause them to decrease investment by another $2 billion in 2008 from this already reduced level. This is not the time to significantly increase royalties when costs to drill/complete/tie-in wells is at record highs and natural gas prices are below breakeven levels as reported by investment analysts. Unlike the lower costs and higher gas prices that were used by this royalty panel! Gas prices are below the breakeven economic limits of $7.50/mbtu offered by investment analysts, not at the $10-14/mbtu of 2005/2006. Raise royalties through an after cost calculation where we share the profits to ensure investment continues! Please review the facts, this recommendation if passed will cause an economic downturn similar to that experienced in the early 80's when oil prices dropped (as gas has recently), currency exchange rate is at all time highs and the Calgary/Edmonton housing market has doubled in the last few years. Remember the drop in house prices in 1983 - in Calgary from $225,000 average to $120,000 in a year and it took 22 years for the average price to recover to $225,000!!! Please don't be the cause of this occurring again. Get the facts and ground your decision there, not in the political merits. Consider that economic business decisions have been made for multi-year capital investment in oil sands that should be grandfathered, consider an after profit royalty to preserve investments for the future. Thank you, [Information Removed] |
| RRE4153 |
The government of Alberta is for the people and what I see is a demonstration of greed and doesn't reflect the true Albertan view point. By increasing Royalties or eliminating the royalty holiday on some of the producing wells in Alberta you make it difficult for companies to justify economics to continue to produce or explore for hydrocarbons in Alberta. Also the Oil producing business is very different to the gas producing business and this should also be a consideration for the government. Like the Federal government this looks to be just another way for the government to scoop money like the GST a few years ago. With Alberta having no debt how can the Alberta government justify more taxes like additional Royalties. |
| RRE4154 |
What I have to say has probably been said by 1000s of people already, so it won't be anything new and exciting but here it is. To all those who would insist on making what could be the most dangerous and stupid decision ever in the history of Alberta....please prepare a room at your house for me and my family to live in and buy some extra groceries for us. Both my husband and I work in the oil and gas industry and if we lose our jobs, then our house, etc. etc, we will need somewhere to stay. Consider our presence in your house our way of saying thanks for wrecking our lives. Even the mere suggestion of these drastic changes has caused more damage and stress than you could possibly imagine. I hope you can all sleep well at night for now. If this province falls, the government will fall too and all this money that the government thinks it's entitled to won't materialize. If you kill the oil and gas industry....no money. Nothing from nothing. Is that what you want? |
| RRE4155 |
I am an economist who has specialised in oil and gas in Canada for 40 years. I am appalled by the panel's recommendations. Where is there evidence of an excess rate of return on investment? What is the rationale for penalising higher flowing gas wells without reference to return on Capital.? Alberta's royalty system is a unique one because if there is excess return to the industry it tends to flow back to the Province by way of land sales. This is a balancing factor. I can only assume the panel are all essentially "ivory tower" economists. At present ,as they should know ,the natural gas industry is in a state of distress and not conceivably making excess returns. I hope it is not too late for the panel to review these disastrous proposals. Think of the law of "unintended consequences and leave well alone. Yours sincerely, [Information Removed] |
| RRE4156 |
I have worked in the Oil and Gas industry for over [Information Removed] years, and have resided in Calgary for the last [Information Removed]. For the first time in a decade I am wondering if I made the right decision to leave my home province of Saskatchewan in search of a better life. After reviewing the Royalties Review Report, and the impact the changes will make if implemented will most likely result in the loss of my job. My husband, a born and raised Calgarian, although not directly employed in the Oil and Gas Industry will also feel the cascading effects of these changes. What saddens me most is we are a middle class family with two small children in daycare, we are homeowners and we are barely making it in this city. My job affords me and my family full healthcare benefits (something not offered to my husband), and a decent salary ($[Information Removed]a year). The reality we are faced with is we will not be able to afford to stay in Calgary, let alone Alberta. I don't believe it is the first choice of my company to down size, but the reality is they cannot do business with some of the lowest return on dollar seen globally. I do not hold an engineering or other technical degree, and therefore could not be relocated. After reading the suggested changes of the panel, I believe if you adopt these recommendations, the province will enter a recession. If the government is so naive to think that the investment and development will remain unchanged, they are kidding themselves. I do not believe that any Oil and Gas operator is saying that no changes can be made; they are willing to work with the government on a new regime which would allow all vested parties to benefit without throwing the Albertan residents onto the streets. I urge the government to work with the industry associations, producers and operators to reach a middle ground. The one thing I can be sure of - my family and I will not be able to stay in this province or great city of Calgary if the report is adopted in full force. I ask the government to review the findings of the industry. The government appointed panel's report is flawed - and will result in great heartbreak to this province, and all that things positive it has been known for will be gone. [Information Removed] A concerned Albertan Resident [Information Removed] |
| RRE4157 |
PLEASE DO NOT IMPLEMENT THE ROYALTY REVIEW REPORT RECOMMENDATIONS. I sincerely request that the Alberta Government carefully read the various reports recently released by reputable international banks which suggest that the royalty review report is eroneous in its assessment and conclusions. I am incensed that the Panel is supporting its "fair share message" with seemingly incorrect or skewed assumptions. What is the use of getting a larger piece of a smaller pie? This is absurd but seems to be real result of the Panel's recommendations to further increase costs to oil and gas producers inevitably forcing money to be invested outside of Aberta. In this regard, I cannot understand that the Panel would be so naive to think that slowing down the Alberta economy would be good in the long term. Once billions of dollars are no longer invested in Alberta and invested in another province or country, it is obvious that more money would follow that investment out of Alberta. Today's investment is simply the first step for tomorrow's investment in the same location. Once such large amounts of money are invested in another Province or Country, the continuity of investment in Alberta will be broken. As an Alberta resident I want that investment location to continue to be Alberta. [Information Removed] |
| RRE4158 |
This is my second message on this site after hearing the ferocious lies and threats by geedy corporate PIGS who threaten the people of Alberta with totally fabricated losses of jobs and industry. Mr. Premier, stand up to them and do what is right for Alberta and that is to bring in the recommended royalty package as determined by the paper presented on this site. Albertans can and should benefit from our non renewable resources. They are bluffing and if they dare pull out, there are others who will take their places soon enough. Thank you. |
| RRE4159 |
All Albertans have recieved there fair share in the past with enployment and growth for all,why would you as a goverment whant to kill that now, Do you all not now what and who drive the economy now. |
| RRE4160 |
Humm which Government is wanting to increase royalties? If this passes, I will not be voting them back in. |
| RRE4161 |
I am directly involved the oil and gas service industry. I am a service rig manager with [Information Removed]. I work mainly in the central Alberta area and in the last few years I have noticed a steady decline in the amount of production per well. Seven years ago we had an 80% success ratio when completing new gas and oil wells and preparing them for production. Of those 80% most of them produced for 5 years or so before requiring workover or stimulation work. I am now noticing a trend near the 50% success ratio and many of these wells we have had to come back to in under a year for further work. Now with the steady rise of oil and gas prices on the world market so has the cost of doing business for energy companies. A rise in the price of royalties I believe would be a serious detriment to the future of many Albertans jobs, as the oil and gas service industry is a major reason why our unemployment rate is so low. Service utilization rate by oil companies is at a five year low. Simple, if the cost of doing business is too high for these energy companies, they are going to stop doing business with Alberta. Revenue gained in royalties with be lost to the cost of unemployment claims, and a slumping economy because of decreased spending and less tax dollars being generated by the workers of Alberta. Isn't there a better route to increasing wealth for everyone. Put more people to work, generating more tax dollars, generating more spending etc. I work with service people that have not worked in as much as 3 or 4 weeks at a time even though oil and gas prices are at record highs. Thanks for your time. |
| RRE4162 |
have the courage to raise the royalty. there is too much money flowing in the oil industry, base on my first hand knowledge. [Information Removed]is working as an engineer in one of the biggest oil campany, and last december he told me that he recieved a $12,000.00 bonus and so with all other employess. he also said that this summer the company ship plane loads of employees to fort mac for BBQ party. and how about [Information Removed]building a 1 billion office building. they are satisfied with 200 or 300 million building and went for a cadillac office building. and how about those oil executives who bought BIG houses and yatchs in the west coast, then fly there on the weekends and fly back just on time for monday work. THESE ARE SIGNS THAT MONEY IS OVERFLOWING IN THE OIL INDUSTRY. SO DO NOT BELIEVE THEM WHEN THEY SAY THAT THERE MIGHT BE A SLOW DOWN IN THE INDUSTRY WHEN YOU RAISE THE ROYALTY. THEY JUST WANT TO CONTINUE THE EXTRAVAGANCE. ED JUST DO IT! |
| RRE4163 |
The royalty review hits the nail on the head. Let big oil whine all they want; there is NO WHERE ELSE IN THE WORLD THAT THE CAN GO WITHOUT DEALING WITH TERRORISTS OR CORRUPT C GOVERNMENTS. ALL recommendations should be implemented. |
| RRE4164 |
As [Information Removed], I urge the Alberta Government to reconsider any changes in Alberta Royalties at this time. There is a long list of Industry related statistics that indicate there could hardly be a worse time to consider, let alone implement, any additional changes to further hamper an Industry already being restricted by low natural gas prices in relation to high finding, development and operating costs. These include, but are not limited to severe decreases in exploration and development capital budgets, decreases in total Alberta Crown land sale bonuses and average price paid per hectare, decreases in active drilling and service rigs, decreases in active seismic crews, all as a result of current natural gas prices which drive activity in the Western Canadian Sedimentary Basin, now a natural gas and oil sands driven basin. There have already been substantial layoffs in the service side of the sector, and will undoubtedly be more, due to low gas prices and reduced drilling budgets. This will recover as gas prices increase again, however, the last thing needed is further reductions in capital budgets and jobs due to increased royalties. Additional negative impact by increasing royalties will only further increase the above referenced negative statistics. The long term impact of such an ill conceived program could be catastrophic to the economy of Alberta for many years to come. I urge you to consider the comments and recommendations not to increase royalties that have been tabled by numerous financial institutions, which as of this morning now includes Wall Street... these are not un-intelligent people and know about which they speak. It's very simple, the pie will shrink and the end result will be less royalties and Crown land sale bonus dollars than Alberta receives today. The corresponding spin off effect and downturn to "ALL" of Alberta, which does in fact entirely depend on the oil and gas sector to drive the economy, will be severe and widespread. Does this government not remember the effects of the NEP on this province in the early to mid 1980's and how many people were hurt and how long it took to recover? Many hard working Albertans never did. Sincerely [Information Removed]... a native Albertan born 57 years ago, raised and still living in what has been until now the greatest Province in Canada. I urge you not to destroy it. |
| RRE4165 |
To increase royalties in Alberta would be a draconian and regretful decision that would quickly lead to the demise of the Conservative party in Alberta and an end to the political career of Mr. Stelmach. To have economists suggest that raising the cost of doing business in Alberta will have no impact on investment is laughable. Raising royalty rates would be a classic example of shooting the goose that laid the golden egg. Just by discussing the issue you have already cost Albertans millions of dollars. Please stop this nonsensical royalty review before you have irreplibly damaged the Alberta economy and cost each and every Albertan the very opportunity previous governments have worked so hard to provide us. Sincerely, [Information Removed], Taxpayer and Voter |
| RRE4166 |
Sirs and Madams: As hard working Albertans who do not work for oil companies, we believe that foundations of the Royalty Report are fundamentally flawed. Specifically, the reference to "our fair share" and that the royalties belong to "the people of Alberta" distort the issue. The royalties belong to Her Majesty the Queen. If they belonged to us, we would have been receiving our cheques in the mail. Seen in this light, increased royalties would be nothing more than a tax grab by a government that is swimming in its own surpluses, at the expense of not only Big Oil, but also the hundreds of small businesses that provide support services for Big Oil, and people who work for them. [Information Removed] |
| RRE4167 |
Hello, I am sending this note to register my support for the recommendations in the recently completed royalty review. We have been missing out on far too much in royalty payments. I hope the Government of Alberta accepts these recommendations and implements them quickly. We could afford to build that often discussed bullet train between the two cities in just a few short years, using only the royalty increases. Think what that would do for Albertan businesses and for Alberta's image on a global scale. Thank you for reading my thoughts, [Information Removed] |
| RRE4168 |
I do not think that it is any secret that the economy of the province of Alberta goes as the oil industry goes. All of the benefits of the latest “boom” in our economy are directly related to the Oil and Gas Industry. History shows that when the price of oil and/or gas has been low and Oil & Gas companies struggle with the economics, the economy of Alberta has mirrored this down turn as well. There is no doubt that a change in the royalty structure is required and I believe that the O&G companies are in line with this. However the proposed changes that have been put forth for debate, without a doubt, will have a negative impact on the economy of Alberta, and, Canada as a whole. I am sure that the Alberta government is aware that there are thousands of Alberta based companies, both private and public, that directly supply products and services to the O&G producers of Alberta. It is these companies that actually make the oil companies “tick”. And, at the end of the day, if the proposed royalty changes are implemented these service and supply companies will take the brunt of the burden as O&G producers cut back or cancel projects in all sectors of the industry. For example, we are a privately owned service and supply company located in Calgary and have been in business since [Information Removed]. We employ over 60 people in Alberta with field offices located in other smaller communities through this province. Our customers are the O&G producers of Alberta and are heavily vested in the heavy oil areas of Alberta. All of our employees earn income that is spent in the province of Alberta for products and services. They buy houses, cloths, food, gas, take transit, movies, entertainment, etc. They raise family’s who go to school, pay taxes and do all of the things that make this province what it is. As a company we pay taxes, buy manufacturing products, office supplies, shop supplies, pay utilities, all that goes into running a business. In fact our monthly expenditures for just operational items is in excess of $800,000.00 per month. We are just one of thousands of companies in Alberta that do exactly the same thing and our income, that allows us and our employees to do this, is directly related to the activities of the O&G producers of Alberta. If the proposed royalty structure is put into effect it is possible that the negative impact on our economy could potentially force our company to reduce our current staff levels by up to 50% or more (as we had to do during the last down turn in the market). That is 30 less people earning an income, paying taxes, buy products, and supporting the Alberta economy. And there are thousands of companies in Alberta just like the one that I run. It would be my suggestion that the Alberta government work directly with the Oil & Gas producers in trying to determine a number that would be satisfactory for all. A number that will work today and is sustainable in the future. Another concern that I have is with the Premier himself. Does he really have the mandate from the people of Alberta to make this decision? He was not elected by the people of Alberta. How about he calls for an election and he can use this new royalty structure as a platform? Let the people of Alberta vote and give him his mandate. My final thoughts are that if the Alberta Provincial Government puts forth this royalty structure “as is” it will certainly put Alberta’s economy into a steady decline. And should this province go “Bust” instead of “Boom” I think that the current governing party would be held directly responsible. This would not go well in the next provincial election. Sincerely, [Information Removed] |
| RRE4169 |
Please do not implement any of these recommendations, they are bad for my lifestyle and bad for Alberta |
| RRE4170 |
This is a disturbing report, looks like the government has a short memory. All you have to do is think back to the 80s when the Petroleum & Gas review tax was implemented. It was like someone shut off a light switch, the industry come to a grinding halt. I was one of the lucky ones and survived the cut backs, but I knew colleagues that did not. Capital spending was suspended, drilling was suspended, projects canceled and so on, even at the wellhead there was decisions made to shut wells in, service companies closed there doors, this is not painting very nice picture to what could or will happen, all I know it was a difficult time for a lot of (families). It worries me that the government will not step back and make sure what they are doing is the correct way of implementing changes. Its like the space shuttle people wearing blinders not listening to there engineers and guess what, they had trouble destroying families, causing a negative effect for years. Should we not think how the province has made it to where it is today, it is sure not what the government is purposing today. Alberta has been the leader in cash flow to there province, all you have to do is look at the provinces east and west and see who is debt free and generating annual surpluses. Unemployment currently at the lowest level of any jurisdiction in North America. This industry has been dumping billions of dollars into the province and when I mean industry this includes the little guy at the wellhead. As a little guy at the wellhead I should be concerned, I maybe the next little guy to get his walking ticket. |
| RRE4171 |
I have reviewed the royalty report and much of the news following. I have a couple of observations, the panel seems more like advocates then an independent panel, starting with the title, our fair share. I think they have underestimated the capital costs of oil sands projects, most releases in past year are in excess of $10m. I also find it worrisome that they would risk the gas royalty at a time when gas prices are low and drilling levels have dropped considerably from the highs of 2 and 3 seasons ago. I also feel the overall impact on the economy is not being given enough consideration, if capital programs are diverted from the province, so too is the ripple effect, just today Calgary saw its first monthly decline in house costs and a another drop in unit sales. |
| RRE4172 |
I have been working in the oil patch since 1974. Everytime a government decides it is going to fix or even change something it creates a dozen problems. You do not change the rules this drastically in the middle of the game. I sincerely hope this government decides to consult with the oil companies on how best to increase royalities; if any; instead of following the designs of this foolish royality report. If the government follows this report I will be getting my household ready for another long drought in the oil field. |
| RRE4173 |
Nowhere in the report do I see comparisons to B.C. or Saskatchewan. As these 2 jurisdictions are our closest competitors for investment monies and jobs, why were they not included in your comparisons? |
| RRE4174 |
This is going to kill the industry. The oil companies will reduce drilling even further than it is at this moment or pull out and increase their resources in other parts of the world. This will affect all business organizations and ultimately increase unemployment in the province. People will not be able to afford to live in Alberta anymore and move elsewhere. This is unacceptable and idiotic. |
| RRE4175 |
Layoffs are already starting in the oil industry due to the anticipation and impact from the "Royalty Review". It's going to effect the middle income and low income earners as it always does and I fall into that category. I do agree they need to increase the royalties but not at the rate they have in the report that is full of more holes than at at shooting range. We need to get the right report and then react accordingly. The so called 80% that are in favor have no idea that their jobs will be in jeopardy if the oil industry turns into the the early 1980's. Please rethink this review and go back to the table and think about the impact it will have on all of Alberta. |
| RRE4176 |
There is a lot of rhetoric and emotions surrounding the issue of fair share royalties. I would encourage the gov't of Alberta to ensure that they are making any decision concerning chanages to the royalty structure based on facts and not on emotions or political expediency. In my opinion, there appears to be sufficent factual based informational in the public realm to suggest that the review panel did not use the correct information in coming up with their recommendations. I would hope that the gov't of Alberta takes their time and uses all and the correct information when making the highest impact policy decision concerning the petroleum industry since the NEP. |
| RRE4177 |
I do not believe that increasing royalties on oil revenue as suggested by the royalty review report will handicap Alberta's future. At worst it will only delay as well as prolonging the benefits of Alberta's natural oil reserves. As time goes by and oil becomes more and more precious because world supply diminishes; having delayed (if indeed there is any delay) developing and exploiting these resources will only seem to have been a wise thing to do. My only slight concern is with the ethics of changing a contract. I don't think this is an overriding concern. Any loss of revenue will be short term and only force Alberta to be a little more frugal, probably not a bad thing. [Information Removed] |
| RRE4178 |
I am somewhat surprised at the outcome of the Royalty review. I work in the Oil & Gas industry as an E & P lender and my customer's share of the reward has been getting smaller and smaller due to rising costs, to propose non grandfathering smacks of 3rd world politics and is completely arbitrary. Increasing royalty rates upsets the economic decisions made as it changes base cost assumptions. Projects that had capital deployed based on certain economic returns may now show poor retruns and will not be redeployed in Alberta. The assumption that Alberta is a good safe place to deploy capital is going to be questioned internationally. It is well known that the CDN basin is one of the most expensive places to do business as it is and therefore the most sensitive to cost structure changes. The full cost of doing business here must be assessed, not simply the royalty rates. Implementing this will result in reduced activity and capital available. Royalty revenue will not rise and will be less sustainable in the long term. The Fed caused big problems in late '06 with the trust announcement, capital for small producers has all but dried up. Doing this will further weaken the industry and reduce capital availability. |
| RRE4179 |
I object to the report and find it's analysis flawed as it omits several key realities. An increase in government royalties will hurt Alberta in the long run. We need to make Alberta cheaper to operate in (especially with the strong Canadian dollar), not more expensive relative to other locations. |
| RRE4180 |
Raising Royalty rates would be a devestating blow to this province. We already sit with Billion dollar surpluses each year. What everyone fails to realize is the long term negative impact of this, you are talking about thousands of Albertans jobs being lost. Just look at what is happening with the housing market in the United States, with current housing prices in Alberta and a sudden deflation in the amount of work this could prove disastrous. Why is the government not looking at the biggger picture and the number of jobs and money that is being lost to the US with Alberta oil being refined out of the country. Lay it out simple for the oil companies, Royalty rates will remain the same, if, if you refine your product within Canada. Do something to encourage growth, more refineries means more employment, more personal income tax, more business tax. The big upside to encouraging these new operations, is the future growth, once they have invested the intial money and infastructure, the more likely that growth is going to continue here. Scare them away now and they may never return. |
| RRE4181 |
Please make royalty higher. I think they have to be much higher than indicated in final report from the Royalty Review Panel. Oils sands have to be included too. I think royalty has to be reviewed on regular basis, at least once in a couple of years. World practice has to be considered. Thanks, [Information Removed] |
| RRE4182 |
I don;t think is a good idea to increase the royaltyies % in Alberta because if you do there will be less money spent so the province will not get any more revenue do to companys not spend any money. |
| RRE4183 |
I am opposed to making a cash grab from an industry that is already in turmoil. We can tax out way to unemployment if we continue on this course. Scrap the royalty increase. [Information Removed] |
| RRE4184 |
You are going send ALL Albertans in a tail spin!! Our lively hood will be gone. If this happens friends and family will lose everything they own!!! Make the right decision!!! |
| RRE4185 |
As I private citizen, I have taken the opportunity to read all of the materials surrounding the Royalty Review issue. I believe the process was the wrong approach, to start, but further the data used appears to be incomplete, outdated and at times wrong. I think this has lead the review in the wrong direction. Unfortunately the goverment and our Premier has somehow worked himself into a corner on this issue. I would suggest a significantly more in-depth committee, task force or panel do a more complete review looking at more than just Royalty but include in it's analysis the economic ramifications of direct and ancillary economic activity, and other taxes as well. Look at the whole costs and benefits in our Province today. Let's not ruin the Alberta Advantage in a greedy tax grab. [Information Removed] |
| RRE4186 |
Below is a copy of a note I sent to the Alberta Government for your records: Good morning. I work as a [Information Removed], covering an area in the Deep Gas Basin of Alberta. Although I'm not directly involved in the accounting involved in the decision making process for our projects, everything I've heard to date would suggest that if the Panel's recommendations are implemented as is, EnCana would divert about $1 billion to other projects outside Alberta. This money could go to other provinces such as BC or Sask., or possibly the US. This would probably lead to layoffs both in Calgary and the smaller centres in Alberta where EnCana has significant operations. One of my major concerns is that if all the comments made by the major oil companies are correct then this could sew the seeds of a "mini-downturn" which could domino into a "major downturn" some time in the future. I have lived through such a scenario and I would not wish to see such an episode inflicted on anyone else. I implore you to ensure that those people making this decision understand fully the way the industry plans and high-grades its future projects so that a well founded decision can be reached in this matter. To suddenly change the rules concerning royalties in midstream is extremely unfair as plans are prepared assuming an existing set of parameters which are assumed to be stable for the entirety of the project. Obviously, if one changes the Deep Gas Royalty in an adverse manner, any company involved in this play will act accordingly so that the shareholders returns are affected as little as possible. Perhaps the existing projects should be grandfathered and any significant changes should be applied to new future projects. I wish I could be more help in this. As an Albertan, I wish to see the positive results from the energy sector give benefits to both the province and the rest of the country. Here's to a good decision. Kindest regards, [Information Removed] . |
| RRE4187 |
This decision is going to have a cause and effect implication on almost every Albertan, I can only think of the negative. Please consider that oil companies have to invest millions to find new oil and how valuable this is to our province. |
| RRE4188 |
I have a small oil and gas company and we have already be affcted by removal of the ARTC. I believe the current proposals are too onerous and badly timed. I believe the industry is in the initial stages of a prolonged slowdown caused by high costs relative to the size of the reserves being found. Strongly suggest you defer or reduce the proposed changes. At the very least the proposed royalty rates should be much lower for low productivity wells. [Information Removed] |
| RRE4189 |
If there was leadership shown in the first place you wouldn't be asking this question. This is your commission so why don't you act on ther recommendations. |
| RRE4190 |
i am speechless....why would the Government look at fax that are 5 to 6 years old,and who gave them those fax? I am an owner/operater of a truck a trailer and just starting my company, and moved to Grande Prairie. so i guess i am very concerned. I just hope the Government has enough people and brains not to hurt the Alberta's emconomie....so pleace do what it takes but do the right thing. Thanks [Information Removed] |
| RRE4191 |
As one who has supported the Ab Progressive Conservative party, proudly, for my entire life, I am terribly disappointed by this provincial version of the National Energy Program. Clearly Mr Stelmach has forgotten the effects of 'big government' interference in the free market. There has already been many rumblings of concern here in Calgary of the direction that this government is going. And it is becoming apparent to me that there is a polarization taking place in this province: Free enterpise Calgary vs. Socialism. Has Stelmach also forgotten the lessons of the Mulroney government? Does he wish people to look for an alternative when their leader no longer appears to be a fiscal conservative? The Stelmach government is flirting with disaster. |
| RRE4192 |
Sock it to them. |
| RRE4193 |
I am very concerned if the government implements this royalty report as it stands. You will see layoffs in this city like the early eighties. Companies will be going under and closing. It's not just Calgary but the smaller communities will also be hurt. When the oilpatch is affected it affects everyone in all industries. Do you want to be responsible for people out of work and losing their homes and having to leave the province to look for work? I have two adult children who will be affected. One works directly in the oilpatch and the other in a company that supplies a service to the oilpatch. My son recently became a father to twins and we are extremely concerned for their jobs. You won't have to worry about housing because there will be plenty on the market for sale. Us seniors will see our mutuals go down as the banks are dumping their oil and gas stocks. They may as well stop building these office towers in Calgary because there won't be anyone to fill them - gone will be the cranes. A reasonable compromise is needed! [Information Removed] |
| RRE4194 |
This report needs to be re~thought out, cut in half or a third.. something, if not scrapped entirely. Right now you've a strong economy, it is booming in all aspects, but if this proposed idea goes through, things will plumet. Oil companies will move out of province to drill and where the money goes the people will follow! My husband and I love living in Alberta. We own a consulting buisness and right now it is doing well, but this idea will really hurt us, the little guys, when companies head elsewhere. It will barely affect those oil companies being hit, but why would they stick around, when more money could be made by uprooting themselves?! I do believe that the farmers could use more of a share, considering it's thier land, but if it's at the cost of slowing our economy and losing Albertans, then I urge you to take a second look at how it'll affect the rest of us! |
| RRE4195 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 07:16:15 DATE ENTERED {ts '2007-10-02 07:30:01'} |
| RRE4196 |
I work for a mid-sized engineering consulting company in the oil and gas industry. My profession supports not only myself, but also my wife and our two young children. The oil and gas industry first attracted me to the Province of Alberta when I moved here from Ontario in 1992 and since that time I have been proud to call myself Albertan. In my 15 years in the industry, I have seen a few ups and downs. I have been able to keep employed through these ups and downs, but have seen many others lose jobs when times haven’t been so good. In the past 18 months or so, my company has seen a moderate slowdown as a result of our clients’ slowing their activities in the face of rising service costs (our main business is on the conventional gas side). This was further aggravated 11 months ago with the Federal Government’s new Trust tax rules. Although life is very busy around our household at this time of year with the children’s school and activities, I feel that I must take some time to write of my concerns when I read the “Our Fair Share – Report of the Alberta Royalty Review Panel”. I am very concerned that this report has been allowed to stand as long as it has. The Report’s foundation is not credible – it is based on a fundamentally incorrect base assumption. Page 17 of the report outlines the Report’s assumption that the production in Alberta will remain the same with or without the recommended changes in royalties collected. I have read that the panel was comprised of a number of economists and businessmen. I would have expected any panel member with a business or economics background to challenge such a critically faulty assumption. That such a challenge does not appear to have taken place leaves me (and I hope the Government) to question the report – was the Panel truly qualified? Was the Panel given sufficient time? Did the Panel act in good faith? As an engineer, I know my clients would certainly question me hard if one of my reports contained an analogous error. I do not see how this Report, with its current standing, is of use to the Government of Alberta. I am concerned that the revenue conclusion reached by the report thus fundamentally false assumption is currently misinforming the general population. In fact, the oil and gas industry responds to its costs, as would any other industry. I am not an economist – I will not pretend to understand or portray how much production or Alberta’s economy would be affected, but I do fear it could be very substantial – this would not only hurt oil & gas companies and their employees in the short term, but could affect the Province’s reputation in the capital markets for years to come. This reputation would not only hurt the oil & gas industry, but all industry in Alberta. I have read certain replies by companies in Alberta run by very intelligent, proud Albertans and I have no reason to doubt their observations. I do not take these as threats to me as an Albertan, but simply as rational statements of fact. Activity will slow in the face of a drastic increase in costs – as it has over the past 18 months or so (due to highly inflated service costs); and further over the past 11 months (in response to the Federal Trust taxation rules). Having worked for some of the companies who have written to the public, I have absolutely no reason to doubt their observations. As an Albertan, I believe we are indeed due a “fair share”. However, this Report seems so extreme, and is based on such a grievous assumption that I do not see how its recommendations could be viewed as a “fair share”. I urge the Government take the appropriate time to get this issue right. Yours truly, [Information Removed] |
| RRE4197 |
Dr Mr. Stelmach This e-mail is about the royalty review. I work for an engineering company called [Information Removed]. We just have had meeting with one of our client [Information Removed], and have been advised that a) we won a substantial project and b) the project is on hold as a result of the royalty review. Why is it on hold? Because the timing and message of the review. The timing is when most of oil and gas companies do their budgets in the fall (bad timing), and message is that if adopted as it the royalties collected will increase by 50% and not by 20% as stated in the report. Even though the final announcement has not been released our company has now “lost” significant amount of man-hours for this year which will be hard to fill in on short notice. (We were previously notified that we have this work.) The royalty review has already impacted me directly. I am P.Eng, PMP, lots of experience in various industries and if required I will likely find work on other projects, but folks with less qualifications may not be so lucky. I support some increase in royalties and some tapping of breaks on the economy. But I urge that the government gets all the facts before making a decision as this decision may send Canada into recession as currently our O&G in Western Canada is what is currently holding the wolfs at bay. Facts such as true costs of doing business, the current profits, if implemented as is what the actual cost or what the paid and collected royalty will be, and if companies slash their budgets by 30-50% like some are doing, what the impact will be on all Albertans, as like it or not, directly or indirectly we are all tied to this O&G economy. [Information Removed] |
| RRE4198 |
If increasing Albertan's take means bigger government, I oppose implementation of the panel review's report. It appears to me that the process of reviewing Alberta's largest economic driver has been quick, too quick to have reviewed all the associated economic and social impacts. How would royalties be monitored and who will do it. The panel says that oil companies have not been transparent, which is hypocracy considering the lack of fiscal accountability within the provincial governement. The general publics can see how money is distributed through corporations through salaries, bonuses and donations. Government spending is a black box. The panel promises billions of dollars added as extra to the general coffers of the Alberta government. I do not support any of that going into the adminstration of the these royalties util the government can demonstrate accountablility and transparency. Bigger and more complex government is not the answer. The process of reviewing royalties has been insufficient and speaks loudly to the lack of leadership and accountability withing the current government. Where is the conservative party in this process? Why has the premier and energy minister been allowed to follow such a secretive path of decision making? As an Albertan and subsequently owner of oil and gas resources (as should all Canadian's not just Albertan's) I do not support the current government's approach to determining the equity of my children and grandchildren in such a obscure and undemocratic way. |
| RRE4199 |
There has been much discussion about Albertans squandering the wealth beneath us and that we must use it wisely - once it's gone, it's gone forever. I want to see the Government take a firm stance, backed by the report by the Royalty Review Panel. If we're going to sell off our resources now, let's get as much as we can and invest it wisely so that there is something for future generations. If industry feels they aren't getting a fair return on their investments, let them back away. Our resources aren't going anywhere and they'll only be worth more later. The slowdown in our economy, as warned by industry, may not be such a bad thing - a bit of a cool-down could be a good thing. |
| RRE4200 |
Please leave the royalties alone. We live in a prosperous province with no debt. We have a stronbg economy based on the engine we call the oil and gas industry. Gas prices are low and it is less and less viable to drill. Oil and gas trusts are still trying to recover from last October. Please leave the royalties alone. |
| RRE4201 |
I am a 28 year old alberta oilfield service worker. I have a wife two children a mortgage vehicle payments etc...... I try to follow the politics as closely as possible with regards to the volitile industry in which I work in. This royalty review that is on everyones mind is very hard for me to understand. My first question is who is this supposed to benefit? The little understanding that I have of this is that it will be used to build alberta infrastructure, hospitals, schools, roads etc... Great we all will benefit from that. My only concern is that I won't be able to use the roads because I won't be able to afford the gas for my vehicle as I will be unemployed due to the lack of work that I forsee this royalty review bringing on. My second thought is maybe there won't be any roads because there may not be any royalties to collect if the threats by the largest energy companies in this country hold true. |
| RRE4202 |
I am quite concerned about the royalty issue that is presently a topic of discussion. While it seems that the present royalty structure is outdated and there needs to be some re-structuring I think that it is important to keep the energy companies operating and investing in Alberta. People have said that 'we' should get more from 'our' resource. I think that we do, Alberta is a great place to live and has a thriving economy which many provinces would love to have. Taking extra royalties, and potentially driving them out of Alberta, from companies who invest to make this province what it is doesn't make a lot of sense in my mind. When the companies pull out or down scale their investment Albertans will truly feel the effect of how many secondary and tertiary economic benefits are created by the energy companies. A bigger piece of a smaller pie will be less royaties/cash in the governments pocket. My other concern is what would happen with the extra money generated by increasing the royalties? Will the people of Alberta see any extra benefit or will the 'extra cash' just be lost in the general surplus sitting there doing nothing. I am not an economist but what the about the effects on the country? I am guessing but I would think have a province like Alberta has to help the overall economic well being of the entire country. I think that is key to remember that companies invest to make money and that is fair as they take the risk. In doing this there is a potential reward...profit. These companies do not ask for a break when they spend millions of dollars doing exploration only to find that when they drill there is nothing there. I think they are good corporate citizens who are making money and are no different than any other companies who are in business. Regards. |
| RRE4203 |
To me it looks like it would cause another early 1980's massive recession caused by the NEP. |
| RRE4204 |
I thhink thatt albertta shhould bee gettinng moore ooiil thhann thhee ddeevelopperres yyesss i rreally thhiiink sssoo |
| RRE4205 |
Oil sand investment is the single most important factor contributing to the boom we've seen in Alberta for the last 5 years or so. Please do not kill the Golden Goose. Sure Big Oil made record money for the last couple of years but there're only three working oil sand operations thus far, [Information Removed] . That means Big Oil made record profit elsewhere, not from oil sand. I would suggest rasing royalty when more oil sand operations are in production, after Long Lake, Horizon, Forthill and maybe the [Information Removed] project are complete. Don't let jealousy blind you and don't use it as a political plateform to proof that Eddie is Steady. Why curb investment when there's so much more of it waiting to come to Alberta? If you raise royalty, you're not better than the Liberals, of which I'm seriously considering to defect to even though I'm a long time Tories supporter. |
| RRE4206 |
As an Albertan, I concur w ensuring adequate resource royalties are collected but increasing royalty rates based on outdated costs, flawed analysis and incomplete information stinks of political posturing. Most alarming is the lack of understanding of the detrimental effects of changing royalties on investment capital. Why would anyone invest in this province if royalties are changed dramatically overnight? How can any corporation make business decisions in such an enviroment? I fear that damage has already been done by merely SUGGESTING royalty structures be modified to the tune of a 55% maximum royalty. I can guarantee that, if implemented, I and many of my associates will only stay in this province long enough to vote for "anyone but the Tories" in the next election. [Information Removed] |
| RRE4207 |
I am writing as a concerned Albertan, resident in the riding of Calgary Foothills, about the recently released Alberta Royalty Review Panel recommendations. As an Albertan, I revel in record high Provincial surplus, solid economy that is performing beyound all provinces in Canada. I am concerned that if the Premier implements the Panel's recommendations in full, it will have significant economic consequences for all Albertans, and especially a significant protion of Albertans employed in the Oil and Gas industry. As a voter, I am asking the Premier of Alberta, to think carefully, listen to all sides, review solid project economic analyses before making a decision. Most Albertans (I certainly will not) will not be voting Conservative in the next elections if we find our livelihoods significantly compromised by ill informed decisions. There should be a solution that balances more royalty revenue with maintaining a competitive investment climate. This can only be achieved if Albertans solve the economic challenges together, in a spirit of co-operation and collaboration. Thank you. [Information Removed], Calgary. |
| RRE4208 |
I think the royalty hike is long overdue. Ralph Klein and his cronies have been milking this province dry for far too long and it is time that we as Albertans take our share. I personally work for one of the largest oil companies in the world and I feel no pity towards the company whatsoever. These companies have made record profits each and every year off the backs of the common man running their assets while those at the top of the hierarchy become richer and richer with each excessive bonus they receive. I am tired of the threats from these companies and feel that they must be put in their place. I am an Albertan (born and raised), and we own the resources, not Big Oil! Please Premier Stelmach, I implore you to do the right thing and raise the royalties by 20% as the panel proposed. |
| RRE4209 |
we dont think that albertans recieve their fair share of the royalty money (give us more $). [Information Removed] |
| RRE4210 |
The Learning Commission when it released its report was an example of a commission that kept the practicalities and interests of all parties and all aspects in mind. It refrained from recommending "non-real-world" things, and things that would be too challenging for government to implement. This Royalty Review Commission has not similarly restrained itself. It has not kept its feet on the ground and it has not fairly weighted the evidence and submissions placed before it. The Royalty Review report evidences a commission that has "lost its way", in my opinion, and departed from a path respectful of all interests - including government, including the Legislature, including industry, including investors and including all those who rely on and benefit from a robust and incented energy industry. The Royalty Review Commission report resembles a "Stockholm Syndrome" effect, where the commission's views and opinions were unduly influenced by the views and opinions of those who held them "captive" through the hearing/testimony process. It does not represent, in my opinion, a judicial effect -- that is it has not carefully "weighed" the evidence before it and opined fairly and objectively. It has "taken a stance", and opined from there. By doing this it has prejudiced itself, and undermined its own credibility. I think the Royalty Review Commission's report should be largely ignored, because of its self-undermined credibility and its lack of objectivity and practicality. It simply is not "useful". It is a "proclamation", not a recommendation. It shoots for a moon upon which nobody should wish to live, and which lacks oxygen to support us well, or at all. I do not believe the changes it recommends, for a mere $2 billion per year in additional revenue to a government that already receives 12 - 13 times that amount, is out of balance from a benefit/cost point of view. It is optimistic and unwise. The Legislature has a duty to be better stewards to the overall, long-term interests of Alberta than the Royalty Review Commission has evidenced itself to be. There are more helpful recommendations to be found within the submissions filed and presented than the Royalty Review Commission, in its selective and subjective view, has chosen to adopt. Search for those better recommendations, and superimpose your own better judgment on their weight and value than the Commission managed to do. |
| RRE4211 |
Everywhere I look nowadays, I see the needs of the high tech industries vastly eclipsing the needs of our social requirements, and this is NOT a healthy or sustainable practice for anyone involved. Raise royalty rates while it is still possible to make a stand against these tycoons whose only desire is to increase Neo-Conservative economic values in Alberta and within Canada. I am a 24 year old aspiring graphic artist, but there are increasing problems in this beautiful province of ours, and I don't see it getting any better! Do not let the oil barons from the United States to continue to lead our economy blindly! We are a people whose values have been manipulated, made to believe there is a massive surplus of spending in Alberta, when in reality, there is not enough to go around as it stands: the system is off-kilter, there is an imbalance in how investment is handled in this province. There is too much return per investment, and the only reason the oil companies are making a stink is that their hands are tied and bloodied elsewhere in the world, and they know that in "Little America" we will believe the pictures they paint on our TV screens. We need to see more representative decisions handled ethically and for our people. Think of where the money could be used! Improved Public Health Care and Education, increase spending in the Non-Profit sector, and maintain the provincial infrastructure with rail transport in Edmonton, and Bio-Diesel incentives to switch into the Green Millennium! Only once we are all more stable will our problems be at a stage to address them. How can we tackle everything when we are in a state of free-fall? |
| RRE4212 |
I find the arguments put forth in the Royalty Review Final Report to be reasonable. I agree that Albertans should be benefitting from the use of our resources. I can see how the proposed changes to the total take are upsetting the producers, a 17% increase seems drastic. What I hope is that our elected government will be willing to take a stand against the producers and make the right decision for the province. I don't believe that domestic or international investment will decline in the long term. It may not even decline in the short term. A $5billion dollar investment was just made by the Abu Dabhi government. If these changes go through I hope also that the government will have the guts and the foresight to use the extra revenue to help build the alternative energy industry. |
| RRE4213 |
The oil companies threaten that if the royalties are raised we will become another Venezuela. Well, as someone who has spent a lot of time in Central and South America, I can tell you we should be so lucky. Instead of enabling the rich to get richer and further shackling the poor and middle class Venezuela uses its oil money for the good of the country. Health care and university are paid for by the government and the price of gas for vehicles was 4 cents 2 years ago. These are just some of the benefits the the ordinary citizen reaps. Unfortunatly Alberta isn't worried about benefitting its citizens, its too busy brown-nosing to big business. After all, I'm sure the kick backs to the politicians most make it worthwhile. I read just this week that the rich are getting richer in this province and I predict that it won't be long before we become like Brazil was 20 years ago where 5% of the population held 95% of the wealth. There the people didn't put up with it and it took a Democratic Socialist party to right the situation. I know the NDP try but until they succeed in stopping this self serving Conservative government I will continue to work on getting a job in Venezuela where the government actually cares about its people. |
| RRE4214 |
Implement the report fully if not more. After the auditor general's report (which the only unbiased report) you have no choice. |
| RRE4215 |
Please be careful when changing the Royalty Structure in Alberta. Albertan's do deserve a fair deal but how do you measure the spinoffs of such an industry of oil and gas? I truly believe that the money is better off in the hands of Albertan's, not the government. We have the most robust economy in the world - why would you want to change that? We are finally pulling away from the ties to the US Economy - why would you want to change that? A small change can be tolerated - implementing the whole report will put us back another 20 years. I have lived through the ups and downs of the oil business caused by outside influences. It would be hard for me to believe that our own government would do that to us. |
| RRE4216 |
I am against the propsal suggested in the Royalty Review Report. The rising Canadian dollar is already cutting into the profits of the large US based Oil companies that are currently fueling our economy. If the new royalties are implemented, there is no doubt in my mind that these companies will invest their dollars in other parts of the world where the profit margin is substantially larger; thousands of jobs WILL be lost . |
| RRE4217 |
I moved to Alberta 15 years ago at 19. I've lived my entire adult live here and all 3 of my kids were born here. Alberta is the economic leader of our country, I love this province and certainly want our people to get our fair share. I think we do! I believe if we increase royalty rates the reduction in employment and other economic benefits from Oil and Gas projects lost will hurt us more than the increase in provincial revenue. We'll be giving away family, personal and business income for potentialy 75 cents on the dollar provincal revenue that will never be captured . We need to maintain our Alberta advantage. Lets build the 100 billion in projects and reap the rewards from that. I'm proud to be Albertan |
| RRE4218 |
The proposed royalty changes as outlined in the Our Fair Share report are in my mind absolutely ridiculous and the fact that this government is only taking one month to review such a recommendation is even more ridiculous. The issue is very complex with a number of stakeholders involved, one month to review the massive amount of information and consult with the broad public is in my mind simply not enough and a completly irresponsible timeframe. [Information Removed]came out with a press release this morning saying that they will stop $1Billion of capital spending if the royalties go through as proposed. This is not a lie or some feable attempt at blackmail, it is simply a numbers game for [Information Removed]who can get better returns on their projects in BC, Saskatchewan, the US and Internationally. The amount of money that will leave Alberta will have a tremendous ripple effect, not only will the government collect less money, the general prosperity of the province will deteriorate. Please take the time to review this issue carefully and make the right decision...one that will not make Alberta seem like a unsafe place for investment and future growth. |
| RRE4219 |
Mark my words, I will never vote Conservative again if you cause damage to the oil and gas industry by hiking royalties too much. Act like Conservatives, not the NDP. |
| RRE4220 |
I think a review of the Royaly regime was long overdue. My biggest concern is the magnitude of the changes you are contemplating implementing based on what I believe is flawed and simplistic assumptions. The Canadian oil industry is unique and not easily open for comparison to other countries royalty structures. I think further industry input and consideration is essential before implementing such large scale changes. |
| RRE4221 |
I would like to express my extreme disappointment and concern regarding the “Our Fair Share, Report of the Alberta Royalty Review Panel” document. I believe that following the recommendations of the panel would have significant negative consequences to the residents of Alberta, businesses operating in Alberta, and the Alberta economy. Many residents of Alberta have seen their wealth reduced just with the announcement of the recommendations by the panel. The decline in the share price of oil and gas companies with operations in Alberta was directly attributable to the announcement therefore anyone owning shares of those companies saw their wealth decline. If a person were in a position where they needed to sell those shares, the loss of wealth was realized. Specifically, I lost real money because I needed to sell shares to raise funds for a land purchase. I had two viable options: either sell the shares at a lesser value than previously and continue with the land purchase, or cancel the purchase outright. Either choice reduces the wealth of residents of Alberta. I now have a larger mortgage and higher payments than anticipated. Had I chosen to cancel the purchase the seller would have failed to receive the proceeds which in turn would have negatively affected his own purchasing power. Furthermore, we have postponed building our home and purchasing a vehicle for commuting due to the increased likelihood of a government-induced recession. Our decision removes money from the Alberta economy and directly impacts other Albertans and their earning ability. I am just one example, but the scenario is similar to tens of thousands of Albertans who may have been about to sell shares – either sell for less value or don’t sell at all thereby effectively keeping the value of those shares out of the economy. In either case the panel’s recommendation had negative consequences for Alberta residents. Businesses operating in Alberta will be significantly impacted should the panel’s recommendations be followed. Some oil and gas projects may no longer be economical to proceed. If any projects are cancelled due to the proposed changes, then Alberta’s economy will have lost the value that the project would have added. Any Alberta businesses (not just oil and gas companies) near the vicinity of the cancelled projects will be impacted by reduced revenue and opportunity. Jobs will not be created and workers in the vicinity will see reduced demand for their skills. The hours of work available will decline and the rate of pay will decrease due to lack of demand for their skills. The loss of investment by oil and gas companies filters down and impacts all sectors of society. For both the local business and worker the result is a decrease in their overall revenue and wealth. Alberta has enjoyed a very healthy economy over the past several years. Housing markets all over the province have increased tremendously largely due to the net immigration to the province due to the robust economy. This economic activity is spearheaded by the oil and gas companies operating in Alberta. Should the panel’s recommendations be followed resulting in a recession or downturn in Alberta’s economy, Albertans would see a decrease in their purchasing power, higher unemployment rates, and a loss of wealth and opportunity. The danger to the Alberta economy is real. We have ample evidence from the past with the National Energy Program on how devastating a significant change to the business climate can be on the Alberta economy and to Alberta residents. The entire premise of the “Our Fair Share” idea is flawed. The idea presented in the report is that Alberta residents are the owners of the resource, we are giving it away, and that we should be getting more out of the resource by having more money from it going to the government. But the government of Alberta is not synonymous with the residents of Alberta. All the residents of Alberta benefit from a robust economy and the employment and entrepreneurial opportunities that it provides. It is the tremendous business activity generated within the province that is the greatest benefit of our natural resources rather than the royalties directed to government coffers. While the resource remains undeveloped, its value is limited and benefits no one. It is through development of the resource that real value is created. Albertans benefit more than anyone from the development of their resources. Having the government receive a higher payout doesn’t benefit Alberta residents if the consequence is a smaller economy, a higher unemployment rate, a decrease in the value of their homes, and reduction in their personal wealth. Sincerely, [Information Removed] |
| RRE4222 |
Please approval all recommendations of the report. Also, consider setting up an Alberta Environmental Trust Fund to ensure that revenue collected from environmentally destructive activities is partially dedicated to environmental protection/restoration activities and initiatives (both with the Government of Alberta and by outside organizations). |
| RRE4223 |
You must feel like its Alberta's time for a recession. If you go ahead with these recommendations it will happen. This oil investment and re-investment of money by the oil companies is the biggest driving factor of our province today. Why get greedy now and drive away all that investment? The energy sector is also paying for a lot of new homes, vehicles, food, quality living for families, schooling. I myself was planning on using my investments in a few oil sand junior companies to pay for a new house and my future schooling. But not now if you follow these recommendations. Do not go ahead with these recommendations! If you do, you will have lost my PC vote for good. I hear the Wildrose party is gettiing some major financial backing together because of this report. |
| RRE4224 |
I cannot believe that the Alberta Government could be so short sighted. This morning [Information Removed]announced that they would take 1 billion dollars out of Alberta and invest it elsewhere, namely BC and the United States. That means 1 billion dollars worth of business that will not be conducted here in Alberta. Which means that everyday Albertans who are currently benefiting from a extremely healthy economy will not benefit from this investment. Restaurant owners, Software developers, machinists, convenience stores, etc will see their business revenues fall and thus effect each and everyone who works and lives in Alberta. This money will be spent in BC and the USA benefiting their economies and the people who live in those neighbourhoods. The government in Ottawa must be sitting back laughing at the government of Alberta. No longer is Ottawa the bad guy trying to [Expletive] us. No they can sit back and watch us [Expletive] ourselves. |
| RRE4225 |
I have never submitted comments to the government before but this time it needs to be done. If the premier does this, the conservitive government will pay the political price. You are not going to change the common albertans life with more royaltys, but you will be taking jobs, many jobs and that WILL change peoples lives here in Alberta. Don't do this, you need to think, get all the info, and the right formula for doing this SLOWLY. [Information Removed] |
| RRE4226 |
I feel that the Government is moving far too quickly, and with inadequate information, with respect to the Royalty Review. If it proceeds with these drastic changes, it will be not only devastating to the economy, but also to itself politically. They should not become complacent with respect to their leadership. The current majority response from the media and the general public is reactionary and not qualitative. It will likely not endure a general election, by which time the damage to the economy will most likely be quite in evidence. Why can we not leave well enough alone? There is insufficient reasoning at this time to justify such a dramatic change. This will not only be detrimental to our existing population, but to future generations. The government should, at the very least, have a confirmed plan in place as to what it will do with additional Royalty monies. They have not proven they can handle existing Royalties properly, so they should not try to compensate for misspent funds by accumulating greater payouts in an attempt to mask previous inept fiscal management. The Government will continue to put money where it deems appropriate, but not where it will necessarily be most required, such as education, housing and health care. They most certainly will not take the time, nor feel it is necessary, to poll the population for their input as to how these monies are spent. This is an important step so that the government has an understanding where increased funding is required and to what extent it is truly necessary, if at all, to increase Royalties. |
| RRE4227 |
I am concerned that the Royalty Review Panel's recommendation is flawed and that if implemented, it will lead to a large reduction of jobs and income in Alberta. There was little industry consultation and the data used to come up with the findings is not accurate. The end result will actually mean less money in the Government funds. Remember the mistake that the federal PC's made during the Mulrony era. Don't repeat this. People will not forgive being layed off. [Information Removed] |
| RRE4228 |
September 28, 2007 Dear Premier Stelmach; I am an executive with a Canadian oilfield services public company. Our Calgary based company has operations in both Canada and the United States. In March I moved back to Alberta from my position as President of the US operations to participate in and strengthen the management team at [Information Removed] for its anticipated growth in the Oilsands of Alberta. We anticipated hiring an additional 2,000 people during the next 5 months for our committed projects in Oilsands construction. Or at least we did. The strong Canadian dollar has hurt our customers as the amount they receive has shrunk significantly as the dollar moved from 1.53 to 1.02 during the last 4 years. As a person who purchased a home in the US with $1.53 Canadian dollars and moved back to Calgary at $1.07, I fully understand this impact. Uncertainly with emissions, and now royalties have raised serious concerns from the investment community about investing in large scale projects with uncertain and unclear government support and increasing cost structures. Investing $4 to $6 billion in a project requires revenue visibility and cost certainty when Alberta is compared to projects around the world. Alberta has been a world leader in its approach to investment and employment for its citizens. We have the opportunity to truly have a long-term annuity and guarantee financial success for this province on a funded debt free basis. In reviewing the commissions report, I ask that you weight it with the loss of employment already experienced due to low gas prices and the economic impact if oil projects go the same way. Prospective legislation is a business risk; the non-grandfathering of existing projects is investment uncertainly at 3rd world levels. In a competitive market attempting to squeeze ones customers results in opportunities for competitors to gain market share. In this case it is the investment in Alberta that is at risk. Yes the resource will still be here and the world will need it, but as a world leader why would we give that up in hopes that no alternatives will eventually force people back to our jurisdiction with investment capital. Full employment in Alberta is bringing the revenue we need to continue to be a successful province. [Information Removed] |
| RRE4229 |
Hello, just another oil patch worker here. I live in Grande Prairie and have seen the decline of my industry due to soft gas prices and service companies overcharging their goods. The last thing the industry needs is to shoot it's self in the foot and increase the royalty rate by such an extreme amount at once. Maybe a structured increase over a set number of years would be in order. I am certain that if the increase was less painful it might be better received. I just ask that you keep in mind the voters that are affected by your decisions. You could wipe out an industry with poor planning and timing. Thank you |
| RRE4230 |
I think the government's short-term money grab is going to end up costing Albertans big money when businesses (like OilSands) shut down production. The jobs provided by these business are at risk under the proposed royalty increases. |
| RRE4231 |
I have been working in the industry for 22 years and I feel that the Royalty Recommendation will impact the industry phenominally. We saw a downturn in the 80's and I believe that this will start another. Can we afford to with all the people that have moved to Alberta to further their careers. This will bankrupt a lot of people. |
| RRE4232 |
October 15, 2007 Mr. Stelmach, I am writing you today to express my extreme concern with your proposed increase in royalties paid by oil and gas companies to the provincial government. You're proposals are not only dangerous, but also ill-advised. Even under the current royalty regime Alberta IS one of the richest provinces in the country, Alberta has NO debt, and Alberta HAS the Heritage fund surplus, what more can you take without crippling the Golden Goose to use a metaphor. The oil and gas industry is undoubtedly one of, if not the primary economic engine of this province. The economic benefits from a vibrant oil and gas industry are propelling this province towards a future that is recognizable on a global stage, both through job creation directly and indirectly and foreign investment. If you and your think tank believe increasing royalties will give Albertans their “fare share”, think again. Oil and Gas companies have invested billions into acquiring/developing land, and building infrastructures within the province of Alberta to explore, drill and produce hydrocarbons. If you increase royalties the way you and your think tank recommend, companies will be forced to pack up and leave from operating in this province. You and your Government will loose countless revenue from the Land sale process, the Lease fee’s and in essence stranded hydrocarbons which will become cost prohibitive to develop under your “think tanks” recommendations. Not to forget foreign investors will look elsewhere, again accelerating the drain on our provincial economy. It doesn’t take a Minister of Finance to realize the domino effect or negative spin offs spawning from your proposals which will undoubtedly echo throughout the province with an eerie sound. Countless service companies and other industries will be out of work in Alberta that would normally be involved in helping develop this provinces hydrocarbon resource because of drastically fallen drilling activity and cancelled projects. Every demographic of our province will feel the economic disaster from your proposals, from corporate CEO’s right down to the worker at Tim Horton’s. Already many big oil and gas companies have started to reallocate millions of dollars in their budgets away from Alberta due to the uncertainty generated by your proposed royalty hikes, tell me how this is a good thing? Talisman, Encana, Canadian Natural Resources, Conoco, Crescent Point, just to name a few. With nearly $84 US dollar oil rig utilization is only at a mere 45% in this province (again uncertainty from your proposed policies), the numbers just don’t go around. Use wisdom in your decision, remember the National Energy Program from the early 1980’s? I supported Ralph Klein. To be blunt you and your party will no longer have my vote if you do not consider carefully what you are about to do. [Information Removed] |
| RRE4233 |
I have been indirectly employed in Calgary for 12 years in specific relation to Oil & Gas production, operations and reporting. IMMEDIATE SUBSTANTIAL REDUCTIONS have already occurred until a final decision has been made by the Alberta Government regarding the Royalty Review. I have read the review and responses from existing LARGE operators. IF A DECISION IS IN FAVOR OF THE REVIEW and/or NOT TIMELY, I suspect Alberta will once again repeat a CRASH in this province similar to early 1980's. UNBELIEVABLE. |
| RRE4234 |
I can' t believe that a bunch of economics professors (who have no business doing a review of Alberta's Royalty Regime in the first place) would fail to include some analysis of costs and how that affects the bottom line of oil and gas producers in Alberta. How can you talk about "TAKE" on a gross basis without some consideration of costs. There is absolutely NO WAY to compare Texas, Colorado or New Mexico to Alberta without some discussion of costs! Where's the data for Wyoming, Sask or BC? Did it not fit the desired conclusions of the review panel? Let's not kill the goose that lays the golden eggs. The lifeblood of this province is the energy industry. We have the lowest income tax rates in Canada and this is a great place to work and live. Let's not [Expletive] it up just so Ed Stelmach can buy a few votes by increasing government "TAKE". It's naive to think that this will not impact the average Albertan in a bad way. It all sounds nice to just take more from the big bad oil companies but there will be consequences and they won't be good. |
| RRE4235 |
Dear Gov of AB, I am an oilpatch worker and I would like to voice my concerns regarding this issue. If this royalty increase goes through hard times will be with us for years to come and the oil patch may never recover to levels that we have seen in the past. Junior oil companies are unable to show a profit as it is and the major oil companies will most likely shift there focus to international markets. There is more at stake here then pay cuts or jobs that could be forced on us by industry. We have seen our investment dollars shrink to a fraction of their original value as a result of federal goverment decisions; investments with money that we worked hard for and endured working in dangerous and harsh environments. We spent long separations from our families to ensure a secure financial future. If the provincial government does pass the new royalty scheme, our investments will devalue even more. I foresee loss of steady and secure income while having to cash in investments to pay daily living expenses as well as loss of property values. This stupidity and greed by the our provincial government will not only effect the oil patch, it will affect all Canadians. The patch is already slow enough - there is talk about cutting down on hitch frequency and I work for one of the bigger drilling companies. THIS ROYALTY WOULD BE LIKE HITTING A MAN WHILE HE IS DOWN. HOW CAN YOU DO THIS TO THE CITIZENS OF ALBERTA WHO WORK SO HARD FOR WHAT THEY HAVE???? Please do not enforce these royalties or we will all suffer greatly. Thank you |
| RRE4236 |
Generally pleased with the report and hope it is implemented in full. The Upgrader Royalty Credit is especially valued. Wonder if 5% is the right mark. Want these companies to employ Albertans. If they want to refine it elsewhere there should be significant monetary discouragement. If Oil companies go this way, the Government of Alberta can show Albertans how much it is collecting from these Oil Company decisions and then we can see what we are getting instead of jobs. [Information Removed] |
| RRE4237 |
Please bring back Ralph Klein. At least he cared about the residents of Alberta. Please do not flush Alberta's prosperity down the toilet. |
| RRE4238 |
I think that the royalty program should take a balanced approach. The royalty increase should be complimented with a preliminary use forecast as well. The use forecast would give residents an opportunity to see beyond just the perception of the oil companies being hit/targeted. Further, the royalty programs should be reviewed in the context of free markets. |
| RRE4239 |
Please leave the royalties alone. We live in a prosperous province with no debt. We have a stronbg economy based on the engine we call the oil and gas industry. Gas prices are low and it is less and less viable to drill. Oil and gas trusts are still trying to recover from last October. Please leave the royalties alone. |
| RRE4240 |
It is my opinion that Alberta is LONG overdue in it's demand for a fair return on OUR natural resources. The energy companies have been give many years of treating oil and gas as their own and not as the property of Albertans. To have them "threaten" us with taking their toys elsewhere seems very irresponsible after all the incentives that have been given their industry. |
| RRE4241 |
The Province of Alberta should not increase royalties for oil sands production. It is unfair to change the rules of the game any more than government has already done by way of new trust rules, air emissions restrictions to oil sands that are more onerous than what we expect of the public themselves, new reclamation soil rules that are not founded on science, and other tax changes. Taking this money away from industry means industry will no longer invest in communities, donations, charities, and fair wages. You are destroying the engine of growth in Alberta if you do this. You may also be destroying technological investment that would otherwise improve oil sand efficiencies and environmental management. If the GoA's main purpose with this proposed change is to squash oil sands growth, then this will work. However, a better alternative would be to reject new oil sands entrants applications. Don't step on those oil sands companies that started the industry with great risks and should now be able to profit and to help the nation profit through these companies' contributions to the market economy and all of the oil sands industries donations to the community. Taking this money away from the oil sands companies means they can not do the research and development they want to do to improve their environmental management. IF there is some good reason to do this, then there should be at least 25 to 50 years of fair warning, as this is the typical life of the oil sands company's investment. |
| RRE4242 |
I am an Albertan who works for an oil company. I am married with 4 children. I live in Grande Prairie. I am not in favour of increasing royalties. The money I will lose through my employment is more than the benefits I will gain from the increased tax revenue. The government is already running a surplus. Why do we need to collect more money. You will cause a recession if you increase the royalties. |
| RRE4243 |
As a constituent and registered voter in the riding of Calgary [Information Removed], I am writing to express my concerns with the recommendations reached in the Alberta Royalty Review Panel Report entitled “Our Fair Share”, released to Minister Oberg on 18 September 2007. I believe strongly that if the Panel’s recommendations from the report are implemented in full, it would have serious negative consequences to the Alberta economy and resultant impact on the Canadian economy. I also believe Alberta’s reputation in the international investment community would be severely impacted by the drastic and sudden changes that have been proposed by the Panel. The Report is fundamentally flawed in a number of areas: 1. The Report bases its recommendations on outdated or erroneous cost information. In reaching its recommendations, the Panel relied heavily on 2005 cost assumptions developed by the Department of Energy. The Panel did not factor in current and actual capital and operating cost data that would reflect the cost inflation pressures that have occurred in Alberta since 2005. 2. The Report ignores the economic realities occurring in Alberta today. The natural gas industry has been faced with escalating labour and material costs along with the impact of the rising Canadian dollar. As a consequence, drilling activity in the Western Canadian Sedimentary Basin is at a five year low and many exploration and production companies have significantly reduced their capital budgets. 3. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta. The Panel’s recommendations will result in most deep gas wells in the Foothills and Deep Basin as uneconomic, thereby reducing or eliminating several billion dollars of investment and associated jobs and royalties. Although the number of deep wells drilled are small relative to total well count, they represent a major contribution to slowing the rapid decline on gas production and resultant gas royalty revenue. For the oil sands, the proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in reduced activity levels, lower oil sands royalty revenue and movement of investment and thermal recovery technical expertise outside of Alberta. The economic future for all Albertans is at stake as the Government contemplates its decision. I encourage the Government to give careful consideration of the negative economic consequences to Alberta if the Panel’s recommendations are implemented. I am confident that by working together with oil and gas industry producers and leading investment and industry consultants, the Government has a tremendous opportunity to make improvements to the royalty regime that meet the desires of Albertans to obtain their economic “fair share” of the value of Alberta’s oil and gas resources while recognizing the economic realities that Alberta’s oil and gas industry is faced with. Thank you for your review and consideration of my concerns and for communicating these within the Government. Sincerely, [Information Removed] |
| RRE4244 |
Drastic changes to the rules of the game after significant investments have been made is not acceptable in a progressive world class economy such as that found in Canada. It is knee jerk third world policy making. It does not foster a positive investment climate. It will drive any remaining foreign capital that is left (after the exodus from the draconian Federal Governments tax on Trusts) out of the province. Foreign investment is critical to ongoing extraction and development of our natural resource as there is simply not enough capital in Canada for meaningful investment in our oil and gas industry. Do not make the shortsighted mistake of trying to grab more cash. The end result will kill the Alberta Advantage. Do the right thing at this time of uncertainty and low gas prices and leave well enough alone. The Alberta Government does not have a revenue problem it has a problem prioritizing spending the surplus that it currently enjoys. Focus on that. |
| RRE4245 |
As a concerned citizen, I would like to encourage the government to accept the long-overdue recommendations of the panel. Thank you, [Information Removed] |
| RRE4246 |
I believe the government is being excessively greedy. What has happened with all the royalties from the past? Instead of re-investing in Alberta and Albertans, the politicians are taking larger salaries and expensing more frivilous items on our account. As a fifth generation Albertan I am disappointed in our government and what looks to be another way to create a larger cash cow! Just remember, these companies don't have to invest in our province - and most do alot in smaller communities. If the government insists on being GREEDY, these companies will pull out of the province - leaving many employees and service companies without work. Then what will Alberta do - ask the Atlantic provinces for some money back? Just keep those happy thoughts - too bad they aren't realistic! A Long-time Oilfield Brat |
| RRE4247 |
Cautionary note to the Alberta Government... Hello, I just wanted to voice my concerns over the provincial governments current movement toward increasing oil and gas royalties. I am a born and raised Albertan and, as such, have seen the devastating effects of economic downturns in our province. The government MUST be very cautious and conservative when making decisions that affect the operating costs of Alberta companies. As I'm sure you know, increasing taxation is never the way to stimulate growth and re-investment. I'd say the government must look objectively at the total amount of tax it already takes, directly and indirectly, from the O & G industry and ask themselves why they need to take more! If the unfortunate decision is made to take more - at least keep it out of general revenues and put it in a long-term fund that will help offset future costs to companies and citizens alike for things such as the implementation of the Kyoto targets. Thanks for allowing me to voice my concerns, [Information Removed] |
| RRE4248 |
After reviewing the documentation, I strongly believe that if the Report's recommendations are implemented, it will threaten continuing investment in the Province of Alberta, and lead to a substantial loss of jobs in Alberta. My husband and I moved from B.C. to Calgary seven years ago because of a depressed economy. We experienced the ripple effect first hand of an economy tanking because of poor leadership decisions. I beleive that is the case here. The government did not fully do their "due dilligence" in researching this matter. The report did not take into consideration the high cost, low reserves, and rapid decline rate in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. The recommendations will make most Deep Gas Wells uneconomic. The Oil Sands Serverance Tax threatens marginal projects. The report incorrectly states that Oil and Gas Companies have direct control over their costs. I fear that if the government continues on their proposed path, most of the industries, most of Albertans will be negatively impacted. It might take awhile, but the outcome is just about guaranteed for economic regression. Wake up Alberta. We live in a great province, let's keep it that way! Sincerely, [Information Removed] |
| RRE4249 |
Royalty review NEP 1980 and the Peter Lougheed royalty fiasco all over again with rebates etc. So soon they forget. You have lost my vote next election. Thanks for sending investment income Sask way. |
| RRE4250 |
I support the idea of increasing royalty rates to reasonable levels. The oil and gas industries position that we are killing the golden goose represents the resource extractors as the goose; not the resources themselves. |
| RRE4251 |
It seems getting a fare share from Big Oil is the intent of the royalty review. If Big Oil does not like it, they can take their oilsands money and invest it somewhere else. Unfortunately, the ones who will suffer the most from the proposed royalties will be the junior oil and gas producer who produces mostly natural gas. These Alberta based companies are ran by Alberta entrepreneurs. With gas price in the $4.00 to $5.00/GJ range, these companies are already suffering big losses. If fact $7.00/GJ is needed just to breakeven for most companies. Big Oil will likely survive the proposed royalty, but it will devastate Alberta's junior oil and gas companies. |
| RRE4252 |
I am disappointed that the Government of Alberta is seriously considering raising oil and gas royalties in an effort to slow down the economy. I will always remember Trudeau's National Energy Plan and how that devastated the Alberta, and indeed the whole Canadian economy. It took a long time to recover. Please think of the consequences before you make, what could be a very big mistake. A lot of jobs depend on your government making a responsible, well thought out decision. May you use sound judgement to arrive at a decision which will keep the Alberta and Canadian economies moving forward, not backward. |
| RRE4253 |
As a resident of Alberta, I think that the proposed Royalty hike should be reduced and implemented slowly so the impact on the economy of the Province in general is not so deep and negative. |
| RRE4254 |
i think the royalty review was conducted very poorly. if this goes through we are going to put alberta into a serious recession .... please really think about the consquences before this goes through. the job loss at our company alone is going to be significant. |
| RRE4255 |
Alberta Is A Non debt province, Why does the government want more money. We the workers are the reason for the way Alberta is. And now the government is going to CRASH alberta completely. They want more money but they Indeed are going to end up with less than they have been getting. They should leave everything the way it is. Alberta workers and families depend on it. Everyone will be moving out of Alberta and good bye to the economy is this RIDICULOUS review goes through. QUIT BEING GREEDY. THINK OF THE PEOPLE AND THE FAMILIES |
| RRE4256 |
YOU HIKE IT 20% THEN YOU OVERPAID POLTICIANS SHOULD TAKE A 20% PAY CUT TO PAY MY MORTAGE!WHAT YOU WANT MORE MONEY BUT YET THERES NO CHEQUE IN THE MAIL,GO FIND A HOLE TO HIDE IN CAUSE YOULL NEED IT IF YOU HIKE IT 20% HOW ABOUT FIX OUR CRIME,OR FIXIN OR ROADS,EDUCATION STOP DESTROING GOOD THINGS IN ALBERTA YOU WERE VOTED IN BY OIL PATCH WORKERS SO YOU CAN BE VOTED OUT! |
| RRE4257 |
The Royalty Review Panel GOT IT WRONG. In my opinion and understanding the implementation of the Panel's recommendations would be the worst decision made for Albertans in decades. Such rules changes and tax increases will destroy Alberta's reputation and prosperity. Many projects will be rendered uneconomic and the Alberta Advantage will be made extinct. Please listen to the financial analysts and industry representatives that have voiced their concerns. They are NOT making threats... but rather they are sharing the results of current data collection and economic analysis. They understand the current state of the industry and what is at stake. In closing, let me say that if the panel recommendations are implemented, I will for the first time ever, vote against the PC party in Alberta. |
| RRE4258 |
I am very much in favour of an increase in royalties paid by oil companies to the Alberta government. These companies make huge profits from our valuable resources. Yes, they employ workers, but I am sure you'll agree our current economy is inflated, and many Albertans are not enjoying the fruits of the economic boom. Increasing royalties could contribute greatly to increasing the quality of life for all -- by increasing government's ability to support adequate housing for everyone, social programs to help those who need assistance, increased education funding. And since I am an artist, I believe that artists contribute to everyone's enjoyment of life, as well as creating financial and social spinoffs -- so increases to arts funding would also help all Albertans. Thank you this opportunity. |
| RRE4259 |
I am encouraged by the governments decision to consider revising royalties collected from oil companies. Even though I own stock in a few junior oil sands companies I think you are right to consider raising royalties. For too long Alberta has been losing out on royalty payments for it's non renewable resource. The world needs our oil and companies will still invest in the oil sands given a fair royalty rate consistant with the rest of the world. The increase would also help to slow down the out of control growth rate that much of our province has been in. We need to grow at a more moderate pace and we need royalty fees to help pay for the desperately needed infrastructure that our massive growth has left us in need of. I am in favor of increasing royalties. It may have a short term negative effect on some stocks I own but I believe this will be very short term as the new royalty rates would be on par with other countries. |
| RRE4260 |
Royal rates should be increased for all oil and gas production from Alberta's resources. Any threats made by oil and gas companies to "take their business elsewhere" are empty threats. If after increasing royalty rates there was actually a decrease in production or exploration, the decrease would only be a small slow-down. The oil and gas resources on this earth are limited and so are Alberta's. The oil and gas industry needs to produce and so it will, no matter if the royalty rates are increased by a reasonable amount. |
| RRE4261 |
I can support the increase in oil royalties if it would translate to an increase in tax reductions for the every day albertan. If this is not going to happen then what is the point. I do not see the need for addtional money being placed in the Heritage Trust fund. The Alberta Advantage has done nothing for those of us who have lived and worked in Alberta all of our lives it is time we started to see some real positive incentives for us to help offset the ever rising cost of living |
| RRE4262 |
I am of the opinion that the government has ample resources based on present taxation levels. If the government implements recommendations...my limited funds are going elsewhere. [Information Removed] |
| RRE4263 |
Alberta is in the best financial shape of any province due to the oil industry. Only a fool gets greedy! Does no one remember how fast the NEP shut down the oilfield in the 80's. I do remember it and it was devastating to us (the common worker) DON"T make that mistake again |
| RRE4264 |
I feel as an Albertan that I also own trees, mountains and water in this province. Why don't we hike taxes on the forestry industry, granite suppliers and bottled water manufacturers. just because an industry is doing exceptionally well (due to hard work and brainpower, not luck) there is no reason to punish the industry and it's hardworking employees by taxing them more. When is enough, enough? Where does the grab stop? The province is already raking in record monies each and every year while spending is out of control. How about the province look at it's own spending record before grabbing more money? I feel that if the province does take in an extra two billion a year, it will just be wasted away. If the province accepts the panel recommendations, a lot of oil industry employees (a great deal of which are already paying inflated housing costs due to a previously failed panel recommendation on rent controls) will be out of work, creating a domino effect not seen in the last 25 years. |
| RRE4265 |
I do not support the Royalty Review Panel's recommendations |
| RRE4266 |
the oil companies don't want to share their huge profits, buy back their leases and let someone else develop or take Nfld's example buy a stake in the development of the oilsands. Remember the resources belong to the people,we deserve a better deal . |
| RRE4267 |
I am wondering why the Oil Revenue on Crown Land is paid only to a few Albertans who lease the land for grazing their cattle? This revenue pays for the lease on many of the crown land leases. I feel this money should be available to all Albertans for schools and health care not just a few people who have the lease for grazing. Thanks for your time. |
| RRE4268 |
The tax base created from the population growth in the oil and gas industry far surpasses the additional taxes being outlined. To stop and or revert this growth will have an overall negative net effect on the economy in Calgary and Alberta. It is no secret increased operating costs in the last year have lead to an overall slowdown in the economy. It seems as though all of Alberta has forgotten what has happened in the eightys, and what a slow oil and gas industry means in this province. Please review any and all changes with the utmost scrutiny as the affect of these changes will drastically change not only this industry but our city and province as a whole. Thanks, [Information Removed] |
| RRE4269 |
I am a born and raised Albertan who derives my family’s income from the oil and gas industry. I have 25 years of experience in the Western Canadian Sedimentary Basin and have worked, as an expatriate, on international projects in South America, North Africa and Russia. I am very concerned with the royalty review report as it appears to be based on old or flawed data and its conclusions appear extreme. If royalties are increased substantially, it will have dramatic and immediate impact on employment for hundreds of thousands of Albertans and the economy as a whole. I am already worried about my job as low gas prices have resulted in a reduction of my 2008 capital budget of 75%. If royalties are increased, my budget will be reduced further. Job security will definitely be at risk. It is my opinion that Mr. Ed Stelmach has placed his government in a no win situation. From listening to him speak in the media, it appears he is willing to gamble with Alberta’s further in order to show he is a strong leader and reacts quickly. If he is the next long term leader of this province, he will need to move slowly on this important issue and only make changes after fully understanding their true impact. Please help me get my message to all the decision makers in the Stelmach government. |
| RRE4270 |
I commend the premier for commissioning the Alberta Royalty Review. Please take into consideration the best interests of all Albertans, who should be profiting from the current boom. I deliver meals for Meals on Wheels to senior citizens and seriously ill people in Calgary. Every week I am saddened by the financial difficulties they face. These are the people who built Alberta, and yet many of them live in substandard housing. They live in fear of having to go to the emergency room or the hospital because of the understaffing and shortages. I encourage you to act on the Review's recommendations to increase royalties. What good is a society that mistreats its seniors? A concerned Generation X'er, [Information Removed] |
| RRE4271 |
i'm currently employeed with an Oil & Gas company and after hearing what the VP had to say this morning about the up and coming Royalty proposal I'm a little upset. He's basically told me that Encana has already filed a news letter stating that if this is to go through that they'll take Encana's 1 billion dollars of proposed spending and spend it somewhere's other then in Alberta. And I can only assume that this is going to be a standard throughout the industry. And being employeed with such a company it concerns me about my companies future as well as my families. I have family that do work out in the field doing such jobs as drilling and operating, and this will mean a huge cut back in jobs when Oil & Gas companies decide to spend there money else where. I'm also concerned about loosing my job and home if this goes through. I just got into this business just over seven years ago, and if this goes through I'll end up doing something else along with a multitued of others. Please take this note as a major concern not only for me but all of those who are in the Oil & Gas business. If this Royalty increase goes through I personally think that it will end up destroying the economic growth of Alberta and those who call Alberta home! [Information Removed] |
| RRE4272 |
The alberta energy royalty should be left alone or with a very small increase (perhaps 0.5%). The oil companies are very sensitive to the overall profits and any increase could heavily affect exploration, where many people are employed. |
| RRE4273 |
Hi Ed, Stay the course. As an Albertan, we need a fairer share of depletable resource revenue. Oil and gas are once through products. Once they are gone - they are gone and will not come back. (We are using them faster than nature is making them.) Pedro Van Meurs is a world authority on host government revenue collection systems and our Panel is composed to smart people. You have received good advice. (I provided similar advice to the Government of Kuwait once respecting its portion of the Offshore Neutral Zone - shared with Saudi Arabia.) Do not be swayed by the self-serving comments from what, for the most part, are very well-heeled beneficiaries of the industry (and OPEC's ability to keep the price up). Certainly, an increase in royalties will draw off some of the cashflow and make new investments a little less attractive and, we may expect, reduce activity a little for a short period. I believe that would be a good thing. Much of our activity is frenetic and inefficient now. It would get better. Sure, perhaps a few people would be out of work but not many and those first to go are usually the marginal workers less skilled at what they do. Efficiency would probably improve and the pressure on infrastructure and housing prices would subside. Ed, Please don't blink. Look back at what Peter did when world prices went up substantially over thirty years ago and how Danny is doing now. There is a lot of 'jumping up and down' and 'wing flapping' from the favored few but they will get over it and get back to work probably in a more efficient way. Cheers, [Information Removed] |
| RRE4274 |
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 this increase it will create JOB LOSS. In turn means the government will have to pay Welfare, EI etc... How does this add value to Alberta? I remember the 80's and what the government did to the oil industry.What it did to my family and others. 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 [Information Removed] |
| RRE4275 |
I totally support the report. I think that it can only bring benefits to Alberta both in the short and long-term. The decision to implement all of the recommendations will take a lot of courage. The role model to follow, in my mind, is Danny Williams of Newfoundland. I entreat our Premier to do for Alberta what Danny Williams did for Newfoundland. Respectfully, [Information Removed] |
| RRE4276 |
I urge the Alberta Government to have an open mind and consider all of the arguments brought foward in regards to the proposed changes to the existing royalty structure in Alberta. I am currently employed as a oil & gas research analyst and have spent considerable time reviewing the Panel's document. In particular, I find it rather concerning the poor level of work done in the preperation of the report that disregarded key variables and relied on flawed data to derive a conclusion that in my opinion seemed very "politcial" in its nature right from the very beginning. It is also very troubling that the average Albertan has this report to base their decision on. Any refuting arguments brought foward by industry experts has also been glaringly refuted in the press by both the panel members and academics rather than acknowleding an extended hand wanting to work together with determining a sound and proper solution. I was born and raised in Alberta, and do recognize the value of maximizing the sustainability of our economy for the next generations to come. We must also recognize that the benefits this province has received over the past decade has come primarily from those willing to risk their own capital through hard work and perseverance. As an analyst I have been following the oil and gas sector for a number of years. There is no doubt that there has been a recession for the past 18 months for oilfield service companies, junior and intermediate E&Ps (most of them are natural gas levered) and income trusts. The brunt of this proposal will be worn by these already struggling companies that employ many of the afformentioned Albertans that have risked their own capital by reinvesting back into their employment. The last remaining componant keeping the Alberta economy going is oilsands developement and that may soon change based on the proposed changes. I am very concerned that my Government may take such drastic action ahead of the US economy heading into a recession, and a rising Canadian dollar in which case, we need not worry about "our fair share" when we realize the pie may have already been eaten. Thank you kindly for your time and consideration. kind regards, [Information Removed] , Calgary Alberta |
| RRE4277 |
Mr. Stelmach, While I appreciate the job you have done so far the royalty review and recommendations report has not been handled very well by your government, so far! I trust you will consider all of the impacts of your report and find that you will be making a huge mistake in uping the royalties to the levels you have proposed. I believe the impact on Alberta's economy would be far reaching and recovery would be long and difficult, the recovery would eventually happen, but without YOU as the person leading Alberta back to where it was before you took over. How much more surplus does your government require to run this province? Please do not adopt this review report into legislature for the benefit of all Albertans. |
| RRE4278 |
I agree we should have a larger share of royalties. Whatever is being paid to the citizens of Alberta, the oil companies are making many times more. They should also be more accountable regarding impact on the environment. |
| RRE4279 |
I think the report's recommendations are the minimum of what should be collected as royalties. There is no reason to keep the % as low as it is until the company makes a profit!! There is no reason to back down in the face of the predictable industry threats. There are enough companies that will want to buy a lease in the tar sands as it is, and the price of oil, after peak oil is reached globally in several years will, in spite of occasional dips, only go up. There is not enough alternative energy capacity for decades to come. So there is no real threat that the cost per barrel of oil will not yield a hansome profit to the companies. Your job as the government is to ensure the health of the province and energy security for the future and not to guarantee a past level of very high profits to particular or established oil companies.. If some should leave, which I highly doubt, since they know that being there is half the battle, others will be sure to invest!!! Thank you for considering my comments and for not bowing to industry pressure, which is a pressure to keep unrealistically high profits. Let them prove their great "hardship" with real research and data. [Information Removed], University of Alberta |
| RRE4280 |
I sincerely hope that our government takes its time to consider not only the report but the market conditions in the province of Alberta before just accepting the Panel's recommendations. I voted in the last election for people who I thought would consider the best interests of the people of this province and this will be the first real test of how well (or not) I have used my vote. I am an average person in this province. I do not have millions of dollars in assets, I do not have hundreds of thousands in the bank. I work hard to pay my mortgage, my student loans, my bills, my car loan and to save money for retirement, vacations and home improvements. I like living in Alberta and hope to continue to do so. However, I do rely on the money brought into our community by the oil companies to maintain the nice standard of living I enjoy. And as a business major I understand that they exist because they make money. They are here because they make money. I fail to see how breaking long standing agreements (by removing royalty grandfathering), removing incentives for risky ventures (deep gas) and removing incentives that originally brought all that money to Fort McMurray and the oil sands will continue to encourage them to spend and make money in Alberta. Like it or not, this province relies on its oil industry. The oil industry is what has made us THE booming economy that the rest of Canada envies. The oil industry is what most Albertans (either directly or indirectly) rely on to make a living. I'm not sure why we feel we should punish them or try to grab more. We're already the richest province and debt free, why not work with them to ensure we remain THE province everyone else wants to be? Are changes needed? Maybe. I just don't want us to change something for the sake of changing. Or to rush into something just because of a little public pressure in the paper. |
| RRE4281 |
I feel that, as the oil industry is putting such huge demands on the province's infrastructure (transportation, housing, education, and health care, it is only reasonable that the royalty rates increase to reflect these changes. |
| RRE4282 |
I don't expect the full 20% increase that was proposed, but I DO expect it to be fair for Albertans ... which would be about 10%. The oil company's have never had a problem bringing in a 10 - 13% increase in the price of gasoline at the pumps, no adjustment period ... they just up the price at their convience. I feel that if the present Alberta government doesn't implement a fair amount of the recommendations (10% increase), then we'll have a new party in government after the next Provincial election. Upgrading more raw bitumen in Alberta is a top top priority. If the oil company's can't agree to this, then they will prove they don't give a damn about Alberta and it's citizens and jobs etc. Once the oil company's have recouped their capital expenses on Oil Sand projects, the royalty should increase to at least 50%, since by recouping their costs, Albertan's have paid for and should now be the owners of all the assets that were paid for by the recouping tax-break (1%). Boy I sure wish I could start a business, and only pay 1% tax (royalty) on all of the business income, until the capital expenditures of acquiring the business was recouped. What a sweetheart deal!!! Please Do Not roll-over on this one and sell Aberta out to big oil ... P.S. Please stop taking money out of the Heritage Fund ... this is hurting future Alberta/Albertans just as much as the Oil company's short changing us ... and you are doing this to us yourselves. [Information Removed] |
| RRE4283 |
I am not at all impressed with the crybaby we have in encanna, this is about all of albertians not just the big oil companys and it should be for all the little people not just the big hogs, Do not give in to the whinners, Yes we need backbone right now and its not to feel sorry for the oil industry, many of us have worked in other regions and have survivved the cuts and the likes under Ralph and we want our share now not in the next century .... This is about everyone and if encanan wants to go to Sask and BC, maybe we should help them pack. thank you you are doing a great job, keep it up. [Information Removed] |
| RRE4284 |
Like many Albertans, I work in the oil and gas industry and enjoy the many benefits our wonderfully prosperous province realizes largely as a result of the energy industry. I am submitting this message to the government in the hope that my opinion will also be heard and considered before the Crown makes a final decision regarding the recommendations set out in the Royalty Review report. In our current environment of "soft" natural gas prices, what the report is recommending has the strong potential to be economically devastating to this province. Many people working in many different types of jobs, fields and specialties reap the benefits generated or associated with the vibrant oil and gas industry. Should the recommendations set out in the report be institututed by our government, everyone will suffer. The government seems to have lost sight of the fact that not only will the oil and gas community suffer, but so will the many, many people who are in any way associated with this industry. Please do not let greed and one misguided report sway what is right and also fiscally responsible. Let's keep Albertan money in Alberta, helping all Albertans. If Alberta is perceived by this industry as an "unfriendly" place to do business due to unrealistically high royalty rates, I guarantee that oil and gas companies will begin exploring for petroleum substances in other provinces or states therefore removing this royalty revenue from our government coffers. I strongly urge this government to be fair and continue to due what is necessary to foster a strong and successful economy for all Albertans to enjoy in the years to come. Please do not increase the royalties the Crown alreay takes from the energy industry. |
| RRE4285 |
I will no longer invest in Alberta early stage oil sand projects anymore if the full additional royalty is levied. Exploration drilling necessitates a reasonable risk to reward ratio. All the risks will be the same but the decreased rewards will make a good number of projects marginal at best drastically decreasing the incentive to explore. |
| RRE4286 |
I am employed in the oilfield working in northern Alberta. With the reviews in the royalty report many people such as myself will not have jobs. I read the paper every night and can't get enough of the news, as my family is filled with worry wondering where people such as myself will go if this situation heads in the wrong direction. Our oilfield growth is something to be proud of and we should do all we can to keep it, long term we all need it. We look forward to your final say and hope you won't keep us waiting, save our jobs, do not follow the royalty review. |
| RRE4287 |
Mr. Premier, I have worked in the oilpatch for close to 35 years as did my father before me. With conventional oil production declining and an oversupply of natural gas, do you really think this is the right time for another tax? There is justification for a royalty increase on the tar sands as that bunch has been cheating for years. It was conventional crude and the oilmen[my dad] who found it that built this province. This is not in any way meant to demean the agricultural section that is also a mainstay of Alberta. Ed, I haven't turned a wheel in 21/2 months. As the fortunes of the oil patch rise and fall, so do the fortunes of all Albertans rise and fall. Do good Mr. Premier! [Information Removed] |
| RRE4288 |
alberta is about to become ghost province. |
| RRE4289 |
If Royalty rates are raised and industry lessens activity accordingly it's going to hit the whole country very hard. Will not only affect Oil & Gas companies. Wouldn't it be better to create more activity by lowering existing rates which would create more activity from which everyone will benefit? |
| RRE4290 |
I do not agree that Alberta needs to increase the royalties charged to the industry. We reap enormous benefits as a result of industry investment in new projects and ongoing operations, and the increased royalty does absolutely nothing to add to these benefits. An increase in royalties may in fact reduce new investment and lower overall royalties reaped by the province. Why eat the goose that lays the golden eggs?. [Information Removed], P.Eng. |
| RRE4291 |
Who is running this province? The oil companies, or our elected officals? With the present down turn in activity sponserd by the oil companies in an effort to gain even more control, it's easy to see who really has control of the economy. It's time for a real leader to step up and do what "King Ralph" wouldn't do. |
| RRE4292 |
I am a Professional Engineer and a partner in a Engineering and Supervision consulting company active in the Oil and Gas Industry. The majority of our client base is made up of small Oil & Gas operators who "farm-out" their engineering and field supervision functions in their drilling and completion departments. Year to date, our business is down 50% from 2006. This decline is directly related to low Natural Gas commodity prices and the Federal Government's trust ruling of late 2006. If the proposed royalty regime is implemented this will cause further damage to our business as the majority of the projects we work on become uneconomic. For your interest, as of this morning there are 710 rigs in AB of which only 232 are working. If you drive around rural Alberta and look in the yards of oil patch companies there is an excess amount of idle equipment. If this royalty regime is implemented this will send our industry further into a downward spiral that will take years to recover as oil and gas companies either go out of business (as is already happening) or shift their investment to other jurisdictions like BC, SK or the USA. If you have any questions or comments, I encourage you to call me at the numbers below. [Information Removed] |
| RRE4293 |
I am concerned with what the Royalty Review Panel's Report. I think that it is flawed and that it risks the provinces prosperity and future. Please think twice before implimenting any of their recommendations. From all that I have read in the press and heard on street about this royalty review, the reaction has been very negative. I trust that the oil industry knows what they are talking about and want to do the right thing for themselves and the province. It would do them no good to rip off the province and be proven wrong in their criticism of the royalty review at some later date. On the other hand, looking at the recommendations put forward, if the recommendations are implemented and the industry is severely hurt, people lose their jobs and our future jeopordized, what then? Is the government just going to say we are sorry and think that everything will go back to what it was! Please be very careful this issue is very important. I know that you have to be thinking about the next election and it would be very easy for to take the panel's recommendation and promise everybody more money will come to the Alberta Treasury. But will it? Think a little more long term. Thank you |
| RRE4294 |
Lets not bite the hand that feeds. |
| RRE4295 |
If Ed really wants to be remembered as a good Premier, perhaps he should begin by not puffing up his chest like some modern day version of Napoleon. His statement about not backing down from big oil was uncalled for. Without the energy sector Alberta would be no better off then Prince Edward Island or Cape Breton. I do agree the rates should be looked at and increased modestly and part of this is due to the lack of desire on the part of former governments to deal with this matter. However, the statement today by [Information Removed] is just as uncalled and if both parties are drawing lines in the sands, Albertans will not be winners but losers. Already I have seen more than $100,000.00 of my investment money gone in just two short weeks. Did Ed ever stop to think what effect his words would have on the investment community? You guys had better sort this mess out soon or the doors will be swinging the other way as investment capital moves to other provinces. Thanks for nothing so far Ed. |
| RRE4296 |
I am a senior Geologist and founder with a small startup oil company and a very proud memeber of the oil and gas industry. I have [Information Removed]years experience in this industry and have seen a few ups and downs including $15 oil and $0.75 natural gas. While I was not in the industry in 1986 I feel this Royalty Review Report is the most negative and potentially damaging initiative to come along since the NEP of the 1980's. Does this government actually believe that changing the rules will help an already struggling industry recover faster. Remember, costs have risen so much that the only really positive cash flow projects are purely oil ( a rarity for this basin) and projects that were funded and drilled when oil was <<$20 and natural gas was << $2.00. This way of thinking reminds me of the childs story of the grasshopper and the ant. We oil companies continue to drill, find, and produce hydrocarbons and pay the agreed upon royalties even though costs have skyrocketted, reserves per well have dwindled, and approval processes have lengthened. While now the government panel shows up on the scene and says that we are not paying our fair share and should pay more. Where was this panel in 1994 when oil and gas prices were so low no one could afford to take the risk and drill despite reasonable operating costs. While I agree there are a lot of people involved in this industry "putting in a dime and taking out a dollar", we need only to look to the service side of our industry where costs have risen unabated for years. Where is the cash grab on these companies? When the president of one of the major drilling and service companies is one of the highest compensated CEO's there is something wrong with the system. That would be like having the coach the highest paid person on any team, or the admitting nurse the highest paid person in the hospital. These are all necessary and valuable services in their own right, but making them the highest paid would be ludicrous. Yet this is wherre our industry stands. Please let common sense reign and reject this panels misguided recommendations so that we might continue to add to Alberta's resource based economy. |
| RRE4297 |
I consider the panel’s economic analysis fundamentally wrong and very misleading to the citizens of Alberta. Among the many of the report’s shortcomings I consider these two really appalling: incorrect data used to model the cost of oil sands developments and the failure to recognize the economic benefits and job creation from the oil and gas industry in general and oil sands development in particular. The perception that extracting more from the oil industry will improve quality of life for Albertans is false. It will cost us jobs, creating hardship for many families and it will cost the provincial and federal governments huge losses from income and other various taxes. |
| RRE4298 |
Dear Ed Stalmach What are you doing with the multi-billions you're already getting from the oil patch? I see my kid still has to do fund raising for her school. Hospitals still need to have extravagant lotteries to raise money for much needed equipment. What will you do with another 2 billion? The province is already awash in surplus cash that you don't put into either education or health care. Is there a plan for that money or do you just want to wave it in the faces of the other provinces? Perhaps, since you haven't done anything since being in office this would be a good way to start by destroying a strong economy and putting people out of work. Way to go Ed, you're really a man of the people. [Information Removed] |
| RRE4299 |
“We note that the Report has excluded “bonus” revenue received by the Alberta Government from Crown land … We strongly disagree with this approach, and note that in 2006 industry paid just under $3.5 billion to the Alberta Crown in petroleum & natural gas and oil sands mineral rights bonuses, a very substantial component of overall government revenues.” – Canadian Association of Petroleum Landmen. |
| RRE4300 |
I think that the royalty review and the auditor general's report clearly identify a problem with the Oil companies not leaving a fair share with the owners of the resouce. Please do not let big oil push us around. There is nothing written that we have to give our Oil to Exxon or Encanna, we can sell it to folks that are willing to pay a fair share. Why can we not be like Alaska where they have no taxes and receive dividend cheques from the government becasue of their resources? |
| RRE4301 |
It is with great concern that I am contacting you in response to the Alberta Royalty Review Panel's Report. If implemented by the government of Alberta as written, changes in the Royalty Structure will have immediate and serious negative impact on the future of the energy industry and the economy of Alberta. I ask you as my MLA, to make sure that the Legislative Assembly is fully aware of the negative consequences that will be in store for Albertan's should the recommendations of this Royalty Review Report be adopted. It is my understanding that the fundamental assumptions for certain capital costs which were used by the Panel to develop the Report, are low by a factor of 2. Accurate cost assumptions, which reflect the true costs of oil and gas exploration and development, are critical to developing royalty formulas. Because the present report is based on flawed assumptions, it requires significant review, hopefully with extensive industry input. Personally, I am most concerned because this Review, if implemented as is, will likely impact my ablity to make a living, along with the many thousands of other Albertans (93,000) who are directly and indirectly employed by the oil and gas industry. If it is not economic for companies to do business in Alberta (i.e. a profit cannot be made as a result of changes in the royalty formula) these companies will scale back operations or do business elsewhere, leaving Albertans without jobs and the Government of Alberta without royalties from oil and gas. Please, for all our sakes, do not support the changes that have been put forward by this Royalty Review Panel. Regards, [Information Removed] |
| RRE4302 |
I generally agree with the Royalty Report and its recommendations however the present low gas prices should be considered when incresing gas royalty. The phenominal and uncontrolled growth in the oil patch , esp the oil sands has created numerous problems overall and has actually resulted in a reduction in the quality of life for the average Albertan ( esp the average Calgarian ). The Govt has a responsibility to ensure there is an adequate public infrastructure & workforce ( skilled & unskilled ) so that oilsands projects proceed without a huge negative impact in other sectors of the economy and a runaway cost increases in construction, labour, services, etc. If the increase in the royalty regime brings some sanity to the oil patch than the govt will have killed two birds with one stone- fair share for Albertans & a more sustainable growth in the oil patch. |
| RRE4303 |
Good Night, I am very concern about the future of the oil and gas industry in Alberta. We, the people expect form the government changes that improve the quality of living of Albertans. I think that the panel recommendations are not correct and could bring unemployment to Albertans. Oil and Gas industry is the energy for all other industries and business in Alberta. The reduction of investment will affect everybody, therefore, please think carefully what you will approve. I hope Alberta will not make the same mistakes than Venezuela. Best regards, |
| RRE4304 |
i think if they go ahead with this they will cripple the drilling and maintenance in the oil patch.HOW much money does the gov need anyway.there no different than anyone.the more they have the more they will [expletive] AWAY. |
| RRE4305 |
Thanks to you Alberta gov't, I have lost my job opportunity because of the threat of a royalty review. The land economic opportunity is done in Alberta, time to look elsewhere for work. What are you going to do with the extra royalty revenue anyway, I still will not be able to get a doctor in this province, sitting in line at emergency for a sprained arm. If you take the money and eliminate my employment future you can at least provide some details on where the money is going to go. Fix the health care system and transportation problems first, but I am sure that the politiciens will make sure they get a healthy wage hike before anything benefits the average Albertan. |
| RRE4306 |
It took us a litle over 100 years to build this wonderful province and now let's destroy everything we've built in a day! - what a joke! Just leave things alone otherwise bring Ralph back or better yet get the people that understand the ramifications behind your sheme and let them handle things! |
| RRE4307 |
Long term implications on the economic impact need to be addressed, this is not a viable solution for a strong Alberta. |
| RRE4308 |
Good morning, I have been working in the oil and gas industry for over 20 years and have seen many volotile periods of instability and uncertainty throughout my carreer. What I don't believe the general population of Alberta understands is how tough it is to make money in this business and how much risk is involved. Is the Government or the people of Alberta willing to compensate all of us for the dry holes that are drilled in the process of trying to find economical reserves? I agree that the royalties should be reviewed and perhaps simplified and changed to some degree but these measures are extreme. Our Company just happens to have higher rate wells that will all see a substantial increase in royalties should these recommendations be accepted. We are 98% natural gas where the prices are continually dropping daily. Please consider carefully the ramifications of implemnting these extreme changes. It will change the dynamics of the province in a huge way, something I don't believe the general population of the province understands. |
| RRE4309 |
Do not mess with a good thing. The way it is now is perfect. This will hurt me and my family imensly. |
| RRE4310 |
It doesn't take a rocket scientist to figure out that the oil and gas industry run this province. if they oil companies decide to take the business to sask. or else where, Alberta is going to crash and burn. restaurant owners and construction workers do not think they will be effected by it. but if theres no one in town to work, who will come to eat. if theres no reason for people to come to alberta to work then there is no reason for new houses. i know i like my job and it will be in jepordy if this goes through as well as many of my friends and family. |
| RRE4311 |
I sincerely hope the National Post article claiming that you are going to back down on the panel recommendations is not true. If your government will not secure a fair share our resources for us, perhaps we should find an alternative. |
| RRE4312 |
More than 30,000 people lost jobs because of your foolish thinking to increase royaly. 25 - 30% people who make Alberta province in surplus, think about that. Most company will withdraw their project, divert money to other country, so not only you will loose royalty, but will loose revenue too. So think twice, your govenment will be responsible for Alberta's healthy economy which effect to Canada. I am sure people will note vote again to your party. |
| RRE4313 |
What are they thinking? These increases are no better than the National Energy Program (NEP). If these royalty increases are allowed to come in to affect we can expect a mass exodus of people and jobs from our thriving economy. We can expect the unemployment rate to increase and for a great majority of our population to suffer greatly. I remember what it was like during the hardships created from the NEP. The bankruptcies, families being ripped apart, divorces, and the inability for people to recieve fair wages due to the lack of jobs combined with the overabundant amount of people looking for employment. I say send this royalty increase to the recycle bin. The best we can do for our people, our enviroment, and our economy is to listen to the people who will be most effected. We have oil companies who will take their money elsewhere. Remember Gainers meat packing plant? The owners took their money elsewhere when faced with an unrealistic greed based mob mentality. They packed up and moved their operations elsewhere and as a result may jobs were lost overnight, families were thrown into turmoil, and we were left thinking that a different choice should have been made. We cannot afford to have this happen on a much grander scale. I look to the future with great hopes and expectations, but also with fear that our goverment may just send us into financial ruin due to the fact that the Royaly Review Board cannot see the big picture. So I would like to know what are they thinking and WHO do I get to hold personally responsible if my job is lost due to the Greed of the Royalty Review Board? |
| RRE4314 |
September 29, 2007 Dear Premier: Our Government dare not crumple under the threats of the Resource sector. Our Government must proceed with implementing the recommendations of its Royalty Review Committee. The oil and gas resources belong to all of us and their quantities are limited. If by implementing the increased royalty their removal is slowed, this would represent our best savings program for future years. The manner in which the Resource Industry manages and spends its money does suggest that our Government must extract a greater proportion for the benefit of all of its citizens. Thank you for allowing me to comment. [Information Removed] |
| RRE4315 |
I have read the royalty review and am quite surprised by the data. It certainly appears that your evaluating team has used invalid data to come to its conclusions. I urge you to reconsider. If this plan is implemented, it will not only impact the oil and gas companies, but will seriously impact every worker in Alberta. The downside to this is not with the CEO's, but with the guy selling shoes in the mall. It will impact everyone's purchasing power which drives our economy. Implementing the report in its entirety will be devastating to the people of Alberta. There is a better solution. |
| RRE4316 |
RE: Comments invited from the public Royalty Review AB GOVNT, EDMONTON First I must compliment The Premier The Hon. Ed Stelmach on carrying out a review of oil royalties in a very open manner. Also, selecting the very able independent team that was assessing petroleum resources royalties. I will attach my comments to the Commission & Premiers on my opinion on this matter as well as on the performance of the previous administration on a range of matters and their priorities. A lot of problems within the Alberta economy could have been solved without the pain to average working citizen; certainly on the working poor, those on fixed incomes, as well as the neglected Heritage Fund, if Alberta had set up a proper smart businesslike royalty regime in the first place with automatic adjustments based on oil/gas prices and related profits of the Companies involved; as other countries have done. All I can say is that the Alberta people have been cheated out of their heritage because of the sloppyness of the previous administration. When the people read Premier Kleins slogan ......"Ralph cares" they thought he meant the people!! ... i.e. not just Ralph and a select group of his wealthy Corperate friends! As the royalties adjustment (approx. 20% incr.) proposed by the Commission brings us modestly up to "middle of the pack" I would recommend immediate implementation of the RRC recommendations. Any delay just results in the continuation of this sad state of affairs. Delay is just a play by the Corporations to keep their windfall profits rolling in. To hear their self interested whinings is like watching a greedy boy caught with his hand in the cookie jar and still dosn't want to share with his friends. I would like to see a full audit of the past two year royalties of the international Corporations that 'self assessed' their productions; ... talk about the fox watching over the chicken house!.... and the immediate setting up of a Dept to oversee all royalties owed to the people of Alberta. Immediate implementation of the RRC recommendations is my urgent appeal to our Provincial Govnt. Thank you, [Information Removed] ----- Original Message ----- From: [Information Removed] To: royaltyreview@gov.ab.ca Sent: Wednesday, September 12, 2007 12:13 PM Subject: Citizen communication to petrolium R.R.C. ATTN: Royalty Review C. EDMONTON This is a copy of my comments as an informed citizen to my Provincial Representatives that I sent 26 February 2007, that you may/ or may not have received in your submissions. In case this was not communicated, I will enclose my email which has many sections relevant to the oil industry in Alberta and the failure of the Government to represent the interests of the ordinary working people, and future generations, of Alberta when entering contracts with big business interests in the resources of this Province. They are lop-sided & favourable to 'Big Oil'; e.g. it is a standing joke in Texas how cheap the oil is 'given away' in Alberta. We do not even have a "Windfall clause" in the agreement!!. Norway did the right thing by their people and they have reaped the benefits. The oil Companies are not complaining there either,... they have what we may call a "fair profit". I realize this may be late, (if it hadn't come to your attention earlier),.... but better late than never. [Information Removed] Copy of Email to Alberta Govnt Repr.:- Sent 26 Feb. 07 ATTN: The Hon. Ed Stelmach The Premier ALBERTA GOVERNMENT I am writing in support of your many of your policies, and would like to forward you my suggestions/ comments/ support/ critizisms of the last administration I mailed to Ralph Klein; i.e. feedback which I was hoping may have been of assistance, and benefit to the Province, in the long term planning by the Govnt here & which has been sorely lacking; eg our Province is being suckered by the big international oil Companies, and the social policies, environmental,... have been a dismal failure:- "Follow up on;- The Survey/direct comments/suggestions/We live in hope!" As I favour your stance on many of the issues and your leadership, I trust these comments may be of help to you. [Information Removed] ----- Original Message ----- To: premier@gov.ab.ca Sent: Thursday, August 24, 2006 5:13 PM Subject: Follow up on;- The Survey/direct comments/suggestions/We live in hope! ATTN: The Hon. Ralph Klein The Premier ALBERTA GOVERNMENT Dear Sir, This correspondence is just a follow up on my email to you and my local Conservative Repr.'s in Edmonton last December when you invited comment (Survey). As I did not receive the courtesy of any acknowledgement from anyone in your Party, therefore, as I do not know if you received my email and suggestions, I will attach the original email again for your convenience; mainly as it has a brief list of recommendations and positive 'Visions for the future of Alberta' that seem sorely lacking in this last administration; (except maybe for a selected group of Corporations and individuals with connections and influence). I was pleased to hear several of these recommendations put forward by my email, and, clearly by many others; were attended to by yourself, [even if only partially; which is better than nothing]; i.e. :- * Direct return of resource wealth to the people. Your "Prosperity cheque" was a step in the right direction and that has been the only benefit many citizens have seen from this 'oil wealth' [those on fixed incomes, hard working people at the bottom of the pecking order, etc]. A pity it wasn't based more on the Alaska model:- from dividend, at least four figure $ amount, at Xmas, to those living in/contributing to the Province for at least 5 years; and excluding the wealthy. Unfortunately while you are still charging H&HC 'tax' that cancels out this benefit to families in Alberta; and all it has done has made the rest of Canada envious and looking to stripping us of our wealth. Why would we trust the Conservative administration to "Reform" [another buzz-word for 'privatization'] the complex & more vital & important Health-care system if they made a mess of the simpler Power System?! Furthermore, why would we put our trust in the Insurance Industry; have you/ or know of anyone trying to get the Insurance industry to honour their contracts.... you will know that they are all scoundrels & thieves, just look at their disgusting profits! and we are supposted to trust them with our health.....! * Your stand against some of the more radical reform proposals of your Health Minister Iris Evans was a pleasant surprise to me. I have no objection to cosmetic surgery and other vanities being a 'private for profit' system. However & unfortunately, regards vital/necessary health care; despite the evidence of countless studies to the contrary [proving that a Public System is more cost effective (eg bulk purchases, etc), and egalitarian than any private for profit health care system], your Party is still obsessed with privatization; (even with the privatization of the power system boondoggle still on all our minds, which we are all still paying for). Clearly, 'Ideology' is getting in the way of common sense. * Glad to hear of your approval to some expansion to Alberta Environment; [i.e. Envir. Emerg. Preparedness Team]. However, to have made the excuse that "we never foresaw such a disaster [as L. Wabamum]" is a pretty lame excuse for the Govnt not being up to the job, particularly with many examples and regular warnings of these events in Canada & around the world. Even my humble letter in Dec. warned of the foolishness of your Govnt gutting the Environment Dept. & Environmental staff from other Depts; reliance of the good graces of the Corporations....Please!! .... have you ever heard the one about the foxes looking after the chicken-house!. Regards extreme right conservatism; don't bother reading the "Wit & Wisdom of George W. Bush" its a very skinny book. To a man who enjoys fishing and the outdoors (I am an outdoor enthusiast myself), I cannot understand why the beauty of this Province is not appreciated and protected by this Govnt; Watershed protection should have been uppermost in your mind when one with with the river, the trout, the mountains and the fresh air. I see the big Oil Companies & Multinationals are still laughing all the way to the Bank, even louder now; simply put, your Govnt has been suckered by those guys. Unfortunately you have let ALL the people in Alberta down to be suckered by Big-Oil. We could have supported Environment, Education, Infrastructure, Heritage Fund, Cancer Research, Homelessness, etc, etc. Those lost Royalties have been lost forever to us; its an extractive/ one-time-use product industry, for Petes Sake. Look at Norway, their Heritage fund started later than ours and is several times larger now; thay charge smart Royalties; dont give/believe the excuse of oil-sands difficulties; Norway has to get its oil from the North Sea!! Regards homelessness, State welfare clients, etc; a measure of Good-Government is the compassion it shows to its most dependend/weakest citizen; to date, this Govnt has failed miserably. On a more positive note, if you bring in my short-list of recommendations before you retire, I will consider you a hero, maybe Superman (as you have only Autumn to do it!); and your Legacy will be intact, with me anyway. I wish you a long and happy retirement, [Information Removed] ----- Original Message ----- To: premier@gov.ab.ca Sent: Friday, December 10, 2004 2:51 PM Subject: The Survey/direct comments/suggestions/We live in hope! ATTN: The Hon. Ralph Klein The Premier ALBERTA GOVERNMENT Dear Sir, As a citizen and resident of (r)Edmonton, Alberta, I would like to extend my congratulations to you on your re-election. If you can imagine:- ...... we are just sitting down together over a beverage of your choice where we talk frankly about the state of the Province, the World, and the direction we are traveling,... ["go boldly (into the new frontier) where no man has been before......."] I would just like to start by saying you don't need those people with tunnel vision, lobbyists, big bus.vested & even foreign interest & 'Party Hacks' telling you how to think, particularly those two jerks, West & Love; go with your own sense of the peoples aspirations, just listen to them. Please, if you need an idol, use Canadian Tommy Douglas, NOT Roger Douglas. If you want to leave a Legacy:- Lets see your Govnt (for a change) be a good steward of the natural environment (Land, forest, prairie & wetland conservation; soils, water & air quality) and the economy will follow; you will be thanked by our future generations (not cursed); rebuild the Dept you once led and give the scientist greater scope and allow initiative to grow rather than as lap-dogs to the industrial-govnt complex with only short term bottom-line interests & the next pathetic election. I would like to see a Vision / Mission from your new mandate period, utilizing the resources of this Province in a more equable & long-term manner than in the past: * Demanding a fairer share, i.e. higher Royalties from the large & multinational Companies who are presently taking advantage of this Provinces resources, and laughing at us, all the way to the bank. The resource (oil, forest, etc, plus political stability must be worth more than the few dollars in royalties we receive from it,- compared to other countries!) Venezuela said they would raise royalties dramatically, the Oil Co.s said they would leave; guess what? the royalties were raised, the oil Co.s are still there pumping oil! * Sharing this wealth directly to the people as a Dividend rather than the Govnt dictating 'what is good for us'. * Proportional Representation for fairer democracy. * Environment first, not last. * Respect the Public Service (as you are one of them!) * TRY & be empathetic with the less fortunate....please (I know it is hard for the privileged class in Alberta, those that have benefited dispropotionately from this wealth; why should they care I guess you ask). I wrote to your PC Representative in Edmonton Centre the following; i.e. prior to the election, [rather harsh I suppose looking at it now], anyway, for what it is worth.....:- With regard to the 'Survey inviting input' & later, your Party's promo. message on our answering machine:- I would like to comment about your Govnts performance as we see it & that survey that was said to have been sent to "all" Albertans, inviting comments on direction for the Alberta Govnt. I will send my comments directly to your office, as: First, we did not receive this document. Second, we asked for one to be mailed, were told it would be & we have yet to see it. Third, tried to fill it in on the internet & kept getting error messages when attempting to get on the surveys stated website. So, my conclusion is that the PC Party really did not want our input, as your Govnt has been said to rarely ever listen to constructive criticism to date (from health care, environmental, energy, and other public groups); so it just confirmed my/& others experience in perceiving an arrogance. Therefore the survey inviting input from "all" Albertans for comment & suggestions on future direction of the Alberta Govnt (as, is evident, the present PC Govnt is apparently devoid of Vision & Mission). Unfortunately, confirms my suspicions that, as well as having hidden agendas on privatizing public services for profit, the present PC Govnt is really are not interested in our opinions, reinforced by the fact that: 1. The questioner was never received here. 2. We phoned & asked for one, it was promised by never arrived. 3. Tried to fill it in on your stated internet site, and was continuously given an error message. I can only conclude that, as many people have been reporting, that the present Conservative Govnt, have become so self-centered & arrogant they are not interested in hearing feed-back from, what they perceive as, the ignorant masses (i.e. "We, the People" of Alberta). The Questioneer was just a cynical ploy to con us to think 'The PC's Care'. This Govnt, like their American Republican Cousins to the South, only listen to their 'Big Business Buddies' that are funding their re-election; where is Democracy.....? The only claim the PC's have made is that they have "Paid back the Alberta debt", Oh, big deal, what vision! a debt which, I must point out, was what they created in the first place!! I note it was eventually balanced on the backs of the working poor (lowest min. wage in the country), the elderly, sick, and the dependants, who, this Govnt & its leader seem to despise (reinforced by public comments). This could have been balanced more quickly & less painfully on the people of Alberta if your PC Govnt had collected rightful Royalties on OUR Natural resources particularly oil production from this Province; collecting less than one third that collected from oil production by Alaska & Norway, The Govnt have given away & squandered the resources of Alberta, energy, forest & human, for the benefit of multinationals & big business. The present Govnt have also destroyed much of our natural environment in the process, favouring these often foreign owned multinationals over environmental common sense and the health of the Alberta ecology and of our people; gutting the public service & Dept of Environment, e.g. putting highly qualified environmental scientist out on the street. Although our Members are 'Public Servants' themselves, they seem to devalue the contribution of these many dedicated peoples. Instead of the family farmers receiving BSC aid, most went to profitable, mostly foreign owned, Packing Co.s that took advantage of the bumbling PC Govnt & Minister of Agriculture, and in turn, we the people. The Conservatives fanatical doctrine on privatization has resulted in higher prices for electricity, natural gas, Insurance, etc, for the average family. Prior to privatization, even I were driven to call in to a CBC talk-back show to warn a Govnt that wasn't listening of the consequences of privatizing electricity to a monopoly situation (where the market forces don't work), having directly seen the results overseas; I guess the PC Party only have time for greedy business friends where profit is the only motive. That Idol of private ownership Roger Douglas has already been discredited in his own country as a one-dimensional thinker where they have had to reverse many of his reckless disasters. Why this H&HC Premium? again hitting the family unit, just because this Govnt wants Health Insurance of some form to open the gates to private insurance in the future; where money is more important than people. Get rid of that 'Tax',.... a wasteful bureaucracy would be gone too. A word to ALL Political Parties, the resource royalties belong to the people, NOT to the Govnt of the day. Put aside this paternalistic attitude of Govnts in Canada to spend our money for us! and give, at least a proportion, of the money directly back to the people, and modify your Govnt big-dream schemes. We can spend it more wisely than you. So my suggestions for what they are worth are: 1. Get rid of Health & H. Insurance (even some 'poor Provinces' don't have it! for Pete's-sake.) 2. Give OUR resource/oil royalties BACK; i.e. in the form of a dividend cheque (ALL residents of over 5 yrs in Alberta) before each Xmas, as Alaska does....... a couple of thousand dollars may not be much for a rich man but it will make a big difference to the life of the working poor, mothers, children, seniors (who incidentally built the Province) and others of limited means. 3. Get Proportional Representation, get democracy, and stop this dictatorship situation (whatever Parties in power). What is it with all this fuss about Gay Marrage, and money wasted fighting the Federal Govnt on this, health care, & other matters. It seems the comfortable 'moral right' are living in a privileged world of their own. If they want to talk morals:- we have food banks, homeless people in the middle of winter, children suffering from malnutrition in this Province,...its a disgrace.... and you guys are worried about gay-marrage; give me a break. Anyway, that is my feedback in response to your PC Party/Govnt invitation for same. Thank you for your patience & have a HAPPY XMAS Hopeful of Enlightened Representative Democracy, a more equable society, and 'Social Justice' for the sake of all our futures, [Information Removed] |
| RRE4317 |
Implementing this plan in full will affect thousands of jobs in our province, and will directly and severly impact the success our province has had in the last 10 years. I am surprised that anyone living in Alberta is willing to risk this. We have over 2500 field hands that work with us directly when our market is running at full utilization. The impact to these hands will be crushing. Not only will it affect the actual hands that work on the exploration side, but every facet or our economy will be impacted negatively. Please take the time to negotiate a reasonable agreement - the Alberta public is not correctly informed on the ramifications of the proposed changes, or on the material which they are based - if they were the poll would show differently. It is our governments responsibility to implement positive solutions. I know many people who had to hand in the keys to their houses in the 80's, and no one deserves to have to go through that twice in a life time! 20% of nothing is still nothing. |
| RRE4318 |
I have been in the energy business for over 30 years. [Information Removed]Alberta based oil sands Company. Oil sands is the toughest business i have been involved with and has the most marginal economics. The only thing that made it attractive was it's magnitude and the encouraging royalty and tax regime. I am relieved that we sold our company because the proposed changes would have destroyed any value that we had created if implemented and the uncertainty being created would probably have sent our investors to more secure environments. Please do not kill the golden goose. Leadership is doing the right thing for Albertans and many must see that this poorly informed panel had it's own agenda. Make changes but use common sense. The OSST is a project killer. |
| RRE4319 |
Premier Ed Stelmach, most Albertans knew very little about you before you became Premier. We have been watching you carefully to see if you have the leadership qualities to govern this province. Albertans own the oil and gas and deserve a fair share of the revenue. The big oil companies like [Information Removed]. have made threats to move investment and jobs out of Alberta. These are shallow threats as they have few options in finding stable countries where they can boost output and profit from record crude prices. Will you have the backbone to standup to the big oil companies and do what it right for Albertans? This is your defining moment as Premier of Alberta and please stand up to the big oil companies. [Information Removed] |
| RRE4320 |
As an owner of a small Oilfield service company, I have to admit I'm extremelly concerned about proposed hikes in Provincial Royalties. As you are aware, a great many companies, both large and small have already stated that they would no longer be as profitable as they are today. It is not a matter of these companies being able to make money at the new royaltie rate, but how they appear to potential investors which drive a public company's growth. If these companies can no longer raise investment capital, they will cease to explore new exploration opportunities in the province. In my opinion this money grab by the province is a new version of the National Energy Program all over again if only on a Provincial scale. Like it or not, the Oifield in Alberta is the driving force of alberta's economy and fuels all sectors of buisness. If the Province chooses to raise Royalties to proposed levels, it will crush our economy. This is a matter of "take more and end up with nothing". I sincerely hope that this is more closely examined than it has been to date and industry people are closely consulted before ANY decision is made, regardless of Political posturing. Sincerely [Information Removed] |
| RRE4321 |
I think the government is absolutely correct in reviewing the current royalties, they were written long ago and just like the laws we live by we need to ensure they meet the current needs. I think all those who predict doom and gloom if the rates are changed are forgetting that the break even point for even the most capital intensive forms of oil extraction is $40-50/ barrel and as long as it is profitable companies will continue to invest. |
| RRE4322 |
The government has to take a very serious look at what they are doing here. With all due espect I think the panel has overlooked the implications of what these higher royalties will do to the activity level in the Oil and Gas Industry. A much lower level of activity will significantly increase unemployment in the province. Alberta's bouyant economy will spiral downward. We will have an excodus from the Industry and the Province and the long term effects will be worse than anyone expects. We will destroy the Alberta Advantage and the dollars will be spent in other places, likely outside of the country. I work in the oil and gas sector and am very familiar with the costs side of the business and development cost assumptions in the review are low by factor of 2. With already strained economics for projects this likely cancel what few projects that are left. Many companies have invested Billions of dollars building infrastructure in the Province based on the current royalites and now rules will change mid stride. There is a good chance that these investments (Projects) would not have went ahead if these new royalties were in place at the time. This could present huge legal ramifications for the Province and destroy our credibility as a freindly and stable environment to do business. The government will not be doing their job if they do not sit down and seriously consider what the O & G companies are saying and leave things alone. |
| RRE4323 |
I believe that if the current royalty review report were to be implemented as is will do more harm than good to the people of Alberta. We must understand that while it is true that Oil and Gas companies receive a break on the monies payed to the goverment directly through royalties inderectly they are the major contributors to the wealth and prosperity enjoyed by all of us Albertans today. A better approach would be to work together, Industry and Goverment, in finding a more equitable way to collect royalties without slowing down the economy due to initial cost/return ratios which would KILL a lot of scheduled and future projects. Projects that are much needed to move forward this great province. Thank You, [Information Removed] |
| RRE4324 |
I recently wrote here to express my displeasure at the governments planned royalty increase. I don't know if you remember my comments, but if you go back and search my name, I am sure that you will be able to find the letter. I urge you to go back and re-read my comments. The reason that I am writing again is that since I wrote last, the rig that I work with (I am a rig manager) has been shut down. The reason given to me by our oil company customer for the shut down is "the Alberta government royalty review". If you took the time to re-read my earlier post as I requested, you will realize how dire of a situation I am beginning to find myself in. With five children and a stay at home wife, I can hardly afford to be out of work for any extended period of time. This government has left me and my family wondering where OUR FAIR SHARE has gone? Now smarten up, make the Right decision, and then urge Ed Stelmach to resign. He's done enough damage already. |
| RRE4325 |
I'm a 2nd year Engineering Student at UBC and I am writing this letter after my mother urged me too. Her Engineering carreer suffered badly after the NEP was enacted during her 2nd year at university. She had a hard time finding a job and an even harder time be paid fairly. My father graduated from Education with no job prospects either. I would like to return to my home province to work and I understand that the policies you are bringing in may affect that. Please don't allow the same thing to happen to me as did 25 years ago. |
| RRE4326 |
On reading the Royality Report, I am impressed by the fairness of the committee in making their recommendations. My point, "why hire a team of experts and ignore their input?" It is to be remembered that WE own the oil not the oil companies and WE should be the ones to profit from it, not the shareholders. Don't be fooled by the outcry from the Energy Sector. Any child would cry if their allowance were cut. |
| RRE4327 |
Please do not except the recommendations of the royalty review. Thanks, [Information Removed] |
| RRE4328 |
Me thinks I hear a wolf crying once again. Governments have ministries to advise ministers who then make decisions. They should be smart and devoted employees giving good advice. Let's listen. |
| RRE4329 |
Coming into the work-force in 1982, in the Medicine Hat area, and a part of the "patch", I realize the challenges of trying to find and maintian a "good" job. Throughout my working career there has always been the threat that my job would not be there tomorrow. I believe one of the biggest reasons the oilpatch was so unstable, in the 80's was the National Energy program introduced in 1980. Now fast forward 27 years and the Alberta government is set to make our number one industry unstable again. I work in the oilsands now, which has not been suffering like the Natural Gas industry, and the company I work for has plans to spend substantial capital to ensure our oil production grows over the next 30 years. (Taking me through to retirement and providing jobs for my 2 sons, one of which plans to be an instrument tech. and the other plans to be an engineer.) Why mess with an economy that is the best in North America, Albertans live well, we have surpluses and virtually no unemployment. Leave the royalties as they are, Alberta is competing with much lower cost-to-produce oil in the world, and the dollars will go elsewhere, any well managed company owes it to shareholders to provide good return on investment. Don't destroy the oil industry in Alberta. YOU WILL IF YOU MESS WITH IT! Let my kids have an easier time working, having a family and creating a life in the richest province in the country than I did in the 1980's. [Information Removed] - Bonnyville |
| RRE4330 |
I have read the royalty review and I was very disappointed that the panel would make such recommendations without knowing all of the facts. How can we be compared to dictatorship countries like Venezuela? No consideration was given to rising costs, the rising US dollar and the fact that a lot of foreign countries share in the costs and risk of finding and developing the reserves. This panel only concentrated on royalties to the exclusion of income taxes, (including federal taxes), property taxes and various other taxes. Perhaps changes are needed, however, I surely hope that the government will make reasonable changes rather than the ones recommended by the panel. Will the government provide jobs to all Albertans that lose their jobs in the wake of these changes? I surely hope that I am not one of the thousands of the poor soles that will lose their jobs with these recommendations. I have been through several down turns during my career and they are not pleasant. Please do not make irrational decisions regarding the royalty changes. Sincerely [Information Removed] |
| RRE4331 |
I have reviewed the Royalty Report and find that the data is badly flawed and that the recommendations, if implemented as written, would likely have an impact similar to the National Energy Program. The report has severely underestimated costs as well as the impact on the industry. This was the same flaw of the NEP. Amateurs should not be asked to formulate royalty regimes. They are too complex. There is no doubt that royalties should be raised. There is room for increased royalties. Speaking specifically to the oil sands, it would be possible to double the 1% base royalty to 2% and to increase the 25% to 33% without serious damage, but the OSST is draconian and will stop most future projects. The report does not recognize that the price of bitumen is only a fraction of the price of WTI. Saying there is not a free market for Alberta bitumen shows a complete lack of understanding of the true situation. This is just one of many errors in the report. It is absolutely vital that the government consider the impact of this report carefully. It is critical to get the royalty structure right the first time because the economic well-being of the province and much of Canada is at stake for the next decade. Please sit down with the industry and work out formulas that will allow higher royalties but not bring economic activity in the oil sector to its knees. |
| RRE4332 |
- BIG MISTAKE - DO YOU KNOW HOW MANY ALBERTANS ARE ALREADY OUT OF WORK. THIS WILL BE MASSIVE. THE GOVERMENT IS MAKING HUGE AMOUNT'S OF SURPLUS AND YES, SO ARE THE OIL COMPANIES. YOU WILL DESTROY THE GREAT GROWTH OF THIS PROVINCE. DO NOT RAISE ROYALTIES. |
| RRE4333 |
Comparing Alberta's royalties to other nations like Venezuela in the Royalty Review Report is ridiculous. The expected productivity of the average well in Alberta is approximately 30 barrels per day, while a Venezuelan well can be several hundred, if not thousands of barrels per day and the reserves per well are much, much higher. The proposed higher royalty on high productivity gas wells will kill almost all exploration. These wells are extremely high risk and expensive to drill already. If the royalty is increased beyond its current rate, oil and gas companies will not take the initiative to explore for these types of wells. Why should they if the Provincial Government takes away all the upside for their risk? I predict that if the Royalty Review Report is implemented as is, there will initially be mass lay-offs of the oil and gas service sector, quickly followed by the upstream sector. Like everything in Alberta, this will trickle down to all Albertans, no matter what their profession. Real estate will plummet, car sales will be off sharply and all retail sales will dramatically drop off. The people affected by this down-turn, totally due to misguided government intervention, will be angry voters at the next provincial election. |
| RRE4334 |
what is the government doing now..why not work with encana and other companies...It was a long-breakup this year..I work in the patch and a lot with encana..now this....I have a wife and 2 kids to support...How can I do that on EI...Or should I declare bankruptcy now...does the premier actually give a [expletive]......come on....1 billion dollars...I don't blame encana or other companies....get your head out of your [Information Removed] |
| RRE4335 |
The Royalty Review Report is not draconian, as some in the oil industry have said. If the recommendations were adopted, we would still be far behind Norway and Venezuala in royalties collected. And I have no fear that the oil industry would abandon Alberta - there is much too much profit to be made for this to happen. I strongly support the Report and urge the government to accept it and implement its recommendations. |
| RRE4336 |
I think its a great idea since pretty much all companies are looking for employees as times are good. Once implemented, we won't have that problem as people will be leaving the province and going somewhere else where they can survive. |
| RRE4337 |
There should be no changes to the current royalty regime - the oil and gas industry is in a down turn - Stelmach, an unelected Premier will completely devastate the Alberta economy and put thousands of Albertans out of jobs - the proposed changes to the governments "fair share take on royalties" should be reconsidered, re-evaluated and proposed in more stable times |
| RRE4338 |
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 [Information Removed] |
| RRE4339 |
I strongly feel that the government should follow the recommendations of the report. These resources are being depleted and we need to ensure that enough revenue is generated from them to provide for the needs of future generations. |
| RRE4340 |
It's high time that "we the people" get our fair share of "our" resources. I am a born and raised Albertan who has seen the oil companies take and not give for many years. Now dont get me wrong, they need to make money to survive, but GREED has to be kept in check. I would challenge any of the oil executives to invest anywhere else in the world and get the returns that they get in Alberta, and have a stable government to boot! If they can, (without losing there investment) good for them, they really ought to leave and invest, go forth large oil company and make your billions. There are many countries in the world who are willing to invest in this provinces resources and are willing to pay their fair shere. Take a look at Fort McMurray, the infrastructure here is deplorable, the highway has not changed in 25 years, the city needs help catching up to the growth of the "OIL COMPANIES", they should help pay for the roads, bridges and other necessities. Stelmach, get off your butt and get what "we the people" are entitled to, or maybe we will vote someone in who can. Ordinary working [Information Removed] |
| RRE4341 |
My name is [Information Removed]. I am a shareholder, officer and director of a small private oil and gas exploration and production company active in Alberta over the past four years. My comments represent my personal views regarding the review of royalty rates for conventional oil and gas and coal bed methane. My comments do not pertain to oil sands royalties. I believe that recommendations in the Royalty Review Panel’s Report are simply the wrong answers to a poorly-identified problem. In my opinion, the real problem is that the existing royalty regime did not contemplate the impact of dramatic short-term increases in natural gas prices that have occurred several times over the past seven years. I believe that if those gas price “spikes” had not occurred, there would be no Alberta Royalty Review Panel today. But they did occur, and industry certainly did benefit during those periods. Alberta taxpayers also benefited, as royalties increased proportionately. However, it seems that the current debate really reflects a concern that, in retrospect, perhaps crown royalties should have increased more than proportionately during those periods. If that truly is the issue, and I believe it is, then government should avoid imposing widespread royalty rate increases, and instead focus on increasing rates only during periods of abnormally-high commodity prices. If royalty rates are to be progressive at higher prices, government should bear in mind that the industry cost structure has “caught up” to the current commodity price environment. At current prices, there are no windfall profits. In many cases there are no profits at all. Any increase from current royalty rates should only take effect when prices reach statistically high levels in comparison to historical norms, say for example, above C$8 per GJ for gas, and above C$80 (Edmonton par) for oil, adjusted for price spreads on lower quality crude. Thank you for your consideration. [Information Removed] |
| RRE4342 |
Implementing the royalty review panel's recommendations in full will be a significant mistake on the part of the Stelmach government. Look at the active rig count, look at gas prices, look at what is being paid for recent land bonus bids and these all indicate that the industry's returns are already under pressure. Also understand that CEO's of oil companies have to be accountable to their shareholders. They cannot continue to invest unless there is a reasonable liklihood of a return once all risks are accounted for. Not only is the industry already slowing but taking an additional bite could do lasting damage. The Province of Alberta relies on these revenues. Trying to grab $2 billion a year more is likely to actually turn into $2 billion less than is already collected. If there was a real need to collect this money for an immediate need, I could begin to see the justification but this government refuses to substantially increase funding to health, education and infrastrucutre development. Leave it in the hands of the workers and investors. Don't let the federal government just furhter reduce transfers to the province. Think carefully about what is likely to happen and understand the consequences of it. Destroying a healthy economy is not what this government wants to be remembered for. And realize that destroying the economy means that elected representatives will be replaced in favor of those who are more rationale. [Information Removed] |
| RRE4343 |
Procceeding with the rate hike will cost Albertans Jobs & homes and put the rest of the country into the recession we all know is looming around the corner. I strongly suggest to leave well enough alone. |
| RRE4344 |
I work on oil patch & live in Calgary. Alberta is an awesome place to work but do not take an action which could have huge negative impact. Making profit is most important for all companies & too much increase in royalty will only push companies to invest in other part of country/world. No body wants to go back in 1980's era. As it is Alberta is booming do not ruin its progress. Slow activity will impact one & all. |
| RRE4345 |
A government's job is to ensure that the citizens under its purview are protected and represented. This government's own report has shown that it has been lacking in these respects. As an Albertan, I demand that my government stand up for my rights. This means that I, and hundreds of thousands of other Albertans, deserve to receive the social and economic benefits that would be a result of a decent royalty rate. We are selling our valuable resources for a pittance and if THIS government is unwilling to to stand up for my rights as an Albertan, then I will see to it that a DIFFERENT government is elected to truly represent my interests. |
| RRE4346 |
I strongly do not agree with the idea of increasing royalties at this time. Most Albertans are affected directly or indirectly by the state of our oil and gas industry which is at the moment suffering from high costs and low natural gas prices. My work which is related to gas drilling has suffered a significant slow down over the last year and I believe that adjusting the royalties at this time will result in significant job loss. I believe this would be a grave mistake for Albertans and political suicide for the current government. |
| RRE4347 |
Just wondering, how does it makes sense to tax higher roylaties to an industry that already brings in billions of dollars to this province? All you are going to do is make us (the oil and gas leaders) extremely upset and then we'll take our money else where. Not a smart move. [Information Removed] |
| RRE4348 |
I agree with the premise that Albertans are not getting their fair share of the pie. However, I do not agree with the recent roaylty report. The conecpts must include the capital spent on wells that are D&A, the high cost of labour and services, the costs to transport and process the product and a decent return of investment for everyone. A balanced approach is required. Yes the royalty should be higher at $11/gj than at $6/gj and at $80/bbl vs $50/bbl when comparing apples to apples. This needs to include the cost to explore, develop, transport, process and sell the assets of the Alberian people for the greater benifit of all. It is not just the royalties that matter but the entire picture from water haulers to the grocery bagger. I hope that a quick decision is not in the future and that the correct decision is made with all interests taken into account. |
| RRE4349 |
In our opinion, due to the booming oil industy, wages have soared and the Canadian currency has spiked which has put us (livestock producers) in extreme difficult situations Our only hope is a hike in royalties which would slow down the economy. Please consider! |
| RRE4350 |
The Tristone Royalty Review Report is excellent. It has the perspective of the investor, and this perspective is critical to ensure that the government strikes the right balance. The government needs to listen to the wisdom of those who risk money, because a strong E&P sector in Alberta is critical to wealth generation, and extracting new and marginal gas reserves. I believe the royalty panel report missed the full cycle economics of the gas business and the real picture is demonstrated by the stock prices of most junior companies whose focus is gas drilling. Please have the leadership and wisdom to seek the counsel of the risk takers when making these critical decisions because this is a complicated business and much public opinion is simply not correct. Regards [Information Removed] |
| RRE4351 |
As a Albertan in the public sector and living in Calgary. I am seeing a dichotomy arising between the have and have-nots. I feel there are many Albertans who are feeling more anxiety and stress from the increased prices of houses and services within the city. Increasing royalties will allow us, as Albertans, to put money towards social services, public housing and investing for future generations to ensure economic growth and stability. Please do not give up short term pressures to those long term needs. |
| RRE4352 |
Mr. Stelmach, As an owner of a small business in the oilfield services business, already suffering from a brisk downturn in business due to softening natural gas prices and higher overall costs, I have no doubt that full implementation of the royalty review will send this industry into a deeper tailspin, one the likes not we've not seen in decades. I find it sad and ironic that the review panel wwas headed by someone with no knowledge of our industry (ex-forestry). This would be akin to asking a lawyer to comment on how to improve the medical profession. I ask you strongly consider ALL the stakeholders in the province before you hammer the review down our throats. Kindest regards, [Information Removed]Calgary, AB |
| RRE4353 |
I am a Chartered Accountant and I run my own Chartered Accounting office in [Information Removed], Alberta. I am alarmed on what our own province could potentially do to extremely harm business in Alberta. I have seen the effect this has on my clients that work in the oil and gas servicing sector. Comments such as moving to Saskatchewan to work, are shocking for me to hear. WHAT ARE WE DOING? THIS PROVINCE IS SUPPOSED TO BE CONSERVATIVE AND FRIENDLY TO BUSINESS. I used to live in Saskatchewan and was born and raised there. Since coming to Alberta in 1981, I always said that Saskatchewan was blowing it, as it was missing out in not creating the economic environment to encourage investment in oil & gas. NOW, I CAN'T BELEIVE OUR PROVINCE IS GOING TO SCARE AWAY INVESTMENT IN OUR OIL & GAS SECTOR. STOP BEING GREEDY. WE ARE ALL OVER TAXED. ROYALTIES ARE JUST ANOTHER FORM OF TAXATION. WE ARE ALREADY EARNING BIG SURPLUSES. I encourage you to seriously take the concerns of this industry and the effect it could have on all of us into consideration. I have been happy with my move to Alberta and I hope I will never regret it. Thanks for your time [Information Removed] |
| RRE4354 |
The Oil companies have been pushing our government around for a while now. I find it offensive that the oil companies are threatening our Premier’s office. The Oil company's forget, when threatening a public office, they threaten all the people of Alberta. The oil companies can raise the price at the pumps with out even a warning, and now they think we are all are like sheep and do not remember what they do. If I were the Premiere, I would make sure that ALL Albertans’ know how oil is made. How much bitchemen (Oil) does it take to make a barrel of oil? It is a trick question if you know how to refine the oil... It depends on how you refine it. Oil companies can play with how they refine the oil and then manipulate the figures to show what ever they want. We should be taxing them on how much comes out of the ground, not by the barrel and then you would see a whole new story... Do not back down, even the report is far to low. We will get hurt to start off with, however how many places in the world are not at war and it is safe to drill with out an army protecting you? This costs money as well. Maybe a bit of a slow down might help take some pressure off our whole economic problem with the working poor. |
| RRE4355 |
[Information Removed] Spruce Grove AB Alberta is doing just fine as it relates to the amount of royalties it collects. What's not doing so well, are the thousands of people laid off in the conventional side of the oil patch. Lease sales are away down, along with the construction of new leases and lease roads, as is pipeline work. A great deal of this end of the oil patch has moved to Saskatchewan, and now BC is trying to lure away more of it. The idea of raising royalties at this time is ludacris. If anything, it indicates royalties are to high. Rather than pursuing such a ridiculous coarse of action as raising royalties, the government needs to be addressing the problems the oil patch has now such as getting permits to carry out the work. How many more people does the government need to see laid off before it admits there is problem. |
| RRE4356 |
I think that royalties should be raised at least half of what the committee recommended if it is deemed that the oil industry cannot handle the total rise. Surely the oil industry can handle that much of a rise without severe consequences. |
| RRE4357 |
Things are so overheated economically in our Province! It has to slow down - the exagerated escalation of costs will in itself have a deflationary and slow down effect. Encana would love to have someone else to blame for their $1b cut back - but they are going to n\have to do it anyway. The oil, the gas, will be in the ground no matter when we pull it out - it is not going to go away. Any increases in Royalties is bound to bring out resounding howels from all secrtors of the industry - but the industry is already slowing down in response to the price gouging of the supliers to the industry. Stelmach must raise the royalties. For his political survival, he must be smarter amd cagier than the smart guys in the head offices. BUT HE MUST RAISE ROYALTIES FOR THE GOOD OF ALL FUTURE GENERATIONS. What about this - grandfather the contract that are in place - but now take 50% of all oil revenues that are above the price of oil when the contracts were signed and the price on which the oil industry decided to start up their various projects. WHAT COULD BE MORE FAIR! [Information Removed] |
| RRE4358 |
My wife & I both seniors strongly recommend the report be approved in toto. Errors by administration in past years leading to our concerns: seniors clawback, hospital closures and giveaways. bruce d. mcfauls comments Calgary Herald dated Sat. Sept. 29 state our feelings correctly. |
| RRE4359 |
Roayalty review report is opening a can of worms. Now if the Government goes ahead and increases the royalty, it might loose on big companies investing in Alberta. If it does not increase royalty, the oil companies will think that they are untouchable and no future govenment for atleast next 10 years dare to even start this discussion. Not to mention, 90% people would want the royalties to go up and Government might face a stiff challange in coming elections, if they decide that the royalties are not going up. Now I just have to cross my fingers and wait for the result that Ed goes which way. |
| RRE4360 |
The royalties should be increased. YES...absolutely... Selling oil and gas is like selling the bricks off your house. Phase the increase over 10 years (3% per year compounded = 33%) |
| RRE4361 |
In trying to read the final summary and report I find that some of the panels comparisons to be a difficult to understand. How it you can compare Texas to Alberta? Our development costs are not the same, i.e. winter, location of markets and available production networks. Also, if you look at our total recovery rates are much higher and each barrel you leave in the ground does not do much for anyone. Another over riding message, that I got was these big oil companies have record profits and can afford it. Do we think the same of banks? It would be difficult to operate today without a bank. I think buying profitable companies stock is a way all of us can participate in a company’s success. By increasing the take as you call it how will that effect my investments so I can look forward to a reasonable return for my retirement? The assumption if the government gets more it will do a better job of meeting Albertans needs. Where the evidence with any government is this is true? How has that helped for $10 barrel of oil to an $80 barrel? There was a little discussion in this report on simplifying the rules as there was a few years back . Would not reducing to "overhead" for all of us in this province be a better choice considering the short term labor shortages? Being a small business owner my fixed costs are rising each year. I need to charge more and end up paying more. Sometimes I wonder if this cycle will ever be broken. Did anyone consider that most of these "big oil" companies are publicly traded companies and are owned by many Canadians not just Albertans? If you want more lets even things out across the country, equalization payments, just continue to grow the differences. I know this seems like a rant, and I apologize for that. My family has made a living in this province for than 100 years not because of new taxes on our businesses but because of who we are. We all have a plan to make money and by working harder to providing for our families. Having the Government (peoples agent) have more money does not help me promote by business as it restricts my clients who have less money to spend. You need to rethink this report as its assumptions that the Alberta Government needs more. What for because we the people deserve it? We need the monies left companies so that we all can remain working and building our own futures not government handouts (i.e. $400). Thank you |
| RRE4362 |
My name is [Information Removed]and I am currently a student in University. In regards to the recent proposals from the govenment with royalty reviews The uninformed and inaccurate report by the review panel should in no way be in a position to conclude such a critical and controversial action. The opinions of six individuals should not determine the futures of hundreds of thousands of other Albertans, as well as for generations to come. It is short-sighted and ignorant to base decisions of such enormity on this erroneous and irresponsible information. The flawed information provided to the panel could result in disastrous implications for our province. The proposals suggested by the panel result in Royalty payments that would lead to reduced future investment/economic growth and activity, lower employment levels and decreased overall revenues for the government ultimately. As an Alberta citizen, I have serious concerns about the implications of such drastic increases in the Royalty payments. Although it may be necessary to review the current situation, to implement such a drastic increase based on a grossly misinformed report, is irresponsible and unaccountable. The report should be revised to include a more holistic view of the spectrum of effects on increased royalties to avoid the detrimental effects of economic downfall of our province. The government has a responsibility to make decisions based on the ultimate benefit of the citizens and future, and not on what will get them the largest sums of money in the interim. |
| RRE4363 |
Your Royalty Review Panel is out of touch with reality. The royalty levels they propose are fine for normal oil production, however, they are not realistic for tar sands or deep drilling where the cost of production is much higher. A small increase in royalty levels may be acceptable, but not a large one. |
| RRE4364 |
Hi, I work for an oilfield-related service company and if the government goes ahead with this confiscating of OUR hard-earned dollars in a time when the patch has such a low rig utilization rate, it will affect SO many families and businesses in Alberta. I am in Red Deer and just barely making it on my salary. U.S. based businesses are already saying they will cut oil and gas spending in Alberta and there will certainly be a recession resembling that of the mid '80's. Please, PLEASE do not go ahead with this, or not only us in the oil and gas industries will be affected, but ALL people in Canada since so much industry relies on this field. The ripple effect cannot be contained. The timing is horrible - my boyfriend is on the rigs and was already out of work for 4 months this summer, as were most people he knew from work. No good will come of this, so please listen to the people that actually make the money that affects the economy and government. Thank you. |
| RRE4365 |
See article below from Daily Oil Bulletin -Sept 28/07 IF CONVENTIONAL ALBERTA DRILLING ACTIVITY IS ALREADY SHOWING SUCH A DECLINE, HOW CAN YOU SAY THERE WILL BE NO NEGATIVE IMPACT FROM FROM INCREASING CONVENTIONAL OIL & GAS ROYALTIES? PLEASE CONSIDER CAPP DATA WHICH CLEARLY SHOWS THAT THE ASSUMPTIONS UNDERLYING THE STATEMENT THAT ROYALTIES ON LOW-PROD WELLS WILL DECREASE ARE NOT REALISTIC. Nine Month Rig Utilization Rate Lowest Since 1999 Canada’s drilling rig fleet utilization has languished below 45% this month, putting the nine month rate at 42%, the lowest in this country since 1999. Between January and the end of September, weekly surveys conducted by Nickle’s Rig Locator publication (www.nickles.com/rig/) show an average of 365 working rigs so far this year, 30% less than a year earlier when 519 rigs were at work. This year’s three-quarter count is the lowest since 2002. Fleet utilization over the first nine months of 2006 was 65%. Since the fleet has again increased in 2007 (to an average of 860 rigs from 794 last year), the number of rigs out of work has surged to a record high of 496. This week’s survey found 352 rigs active in western and northern Canada, 41% of the available fleet. After being substantially lower than last year for all 2007, September rig counts show numbers very close to 2006 levels when industry pulled back their drilling programs due to a sharp decline natural gas prices. This week’s active rig count of 352 units is only three less than a year ago while last week’s 360 working rigs represented an increase of eight rigs from the same week in 2006. Activity in Alberta over the first nine months of 2007 fell 30% from last year’s all-time high to an average of 269 working rigs, the lowest since 2002. Similarly, British Columbia’s gas patch saw a drop of 32% to an average of 50 active rigs to the end of September, also the lowest since 2002. Saskatchewan’s oilfields are holding up better than the two provinces to the west with 46 rigs at work at the three-quarter mark, off 10% from 51 rigs last year. THANK YOU. |
| RRE4366 |
Hello from Grande Prairie Alberta. Where to begin, this last year has been a tough year in our area, there has been less activity in the oilfield than in previous years and I have to tell you we feel it. We have bought our houses at high prices and we pay highly for all ammenities. We rely on large companies like Encana, Talisman, Conoco Philips, is terrifies me to see then saying they will take their business elsewhere. Honestly why wouldn't they when Saskatchewan has the door wide open, you need to beat Saskatchewan before they have our jobs. I wonder where we would even begin to look for jobs if this is implemented, I urge you not to think the oilfield companies are bluffing or you will forever be the Premier who lead us to economical failure. |
| RRE4367 |
The recommendations in the Royalty Review are well overdue. I commend the panel's courage and clarity in highlighting the case for a fairer share of Alberta’s oil and gas wealth for the resource owners i.e. the people of Alberta. I have a few observations on the outcry and predictable threats from “big oil” that the new royalties will make the business uneconomic to the point of removing billions of dollars of investment from Alberta. These are as follows: 1) Why is the business so marginally economic, that an increase in royalties to bring Alberta into line with other resource rich countries, threatens to derail investment in Alberta’s resources by N.American companies? Is the answer: a) the current companies are too greedy b) their business operations are inefficient c) just a knee jerk reaction required by the company’s shareholders and boards who determine top management’s obscenely lucrative compensation I suspect that the “big oil” response to a royalty increase is in varying amounts a function of all three answers. 2) Going forward what is a N. American company that is active in Alberta to do, given the impossibility of growing an economically viable business, assuming that the full Royalty Review Panel’s recommendations are implemented? My suggestion is that these companies sell up and get out of Alberta to invest in countries where the business is more profitable and meets their economic hurdles. However I very much doubt that they can find the same size of resource in a more royalty friendly regime any where else in the world. In fact the royalty take in countries that have the largest reserves is significantly worse than Alberta even with full implementation of the Royalty Review recommendations. Given this mass exodus what will happen to the economic vacuum created and threatened by these companies? As a series of acquisitions and take overs have demonstrated in the past and even the most recent TAQA offer to purchase PrimeWest , there are a multitude of foreign companies from China, India, Europe and the Middle East who are more than willing to pay top dollar for the Alberta oil and gas assets that these N.American companies would consider uneconomic. So my challenge to these N.Amercian companies is don’t just whine and complain about how unfair the new royalty regime will be if implemented and instead put your money where your mouth is and sell out to these foreign oil and gas companies. This will make your investors happy with a very lucrative windfall premium on their stock, while ensuring that the business grows and thrives through more efficient foreign investment and control, thereby paying a realistic royalty to the resource owners i.e. Albertans. |
| RRE4368 |
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] |
| RRE4369 |
Why would a panel set up to review royalties be recommending a new tax? To apply this severance tax to the Heavy Oil Projects in the Bonnyville-Cold Lake region will lead to a slow down of new projects. It is proposed by the panel that primary production wells in the Bonnyville,Cold Lake, Elk Point, Lloydminister region be removed from the Oil Sands Royalty Program and treated as conventional wells. This will make most of these wells uneconomical and lead to drastic job losses. The heavy oil service industry which is the major employer in the North East region will grind to a halt and suffer numerous bankrupcies. Anyone that thinks the Heavy Oil wells that generally use the [Expletive] pump can be equated to conventional wells does not understand the industry. We have a healthy industry going in Nort-east Alberta. Please leave it thrive. Say NO to the severance tax--say NO to the reclassification of the primary producing wells in the North-east. [Information Removed] |
| RRE4370 |
It is time to increase the Royalty tax oil companies are paying. The oil company threaten to stop their improvements, that is fine. There will always be other investors. Though I would hope that we should only have Canadian investors. If the government wants a compromise, then I suggest ask the companies should built roads, affordable housing, hospital care for their employees in exchange for tax cuts. And we should be able to process our own oil and not send to the U.S. This will create employment for Alberta and increase in government revenues. I hope the oil companies stop saying we do not have enough talents here in Alberta, we do but they refuse to hire them because the pay scale is higher. What's up with that? More Albertan employed is good for the province, it would mean more revenues for the province as well. Thank you for reading my comments. |
| RRE4371 |
Our thoughts and feedback on the Royalty Review Report. As seen by the directly effected. You always hear concerns about what the Oil & Gas industry did to the housing market and how there is a housing crisis, again caused by the Industry. However, did you hear about how Oil & Gas contributed to a 15 Billion dollar Heritage Fund? Did you hear what the Oil & Gas Industry has done for Alberta and local communities? In my opinion the bottom line is the Provincial Government is upset about the losses of Royalties due to the increasing dollar. During the last election there was extensive media coverage regarding Affordable Housing and the Recycling Program, however where was the Media coverage of the potential “bomb” that is about to be dropped on Alberta and cause mass destruction? All because of the Government is looking for a solution. If the Government puts forth this increase, this may cause many Albertan’s to have to go bankrupt which may cause a lot of mental/emotional stress on people, families, marriages, children and the general health of the directly effected. However, many will be affected because most live in a financially extended society and these homes, toys, vehicles etc. will end up going back to the banks and these monies owing on them are higher than the values itself. The banks will have to compensate for their losses which will result in an increase of interest and in turn drive up payments. Thus again may result in more people being unable to provide for their families and keep a roof over their heads. Some people may have insurance to cover financial loss or if in-turn life insurance, might be required to be paid out, due to extreme stresses, that too will then cause insurances to increase. Have we even touched on the full extent of the mushroom effect of what will happen? There is 30 billion dollars in reserve, stop looking for a short term solution for the increase of the Canadian Dollar. Every increase of .01 cent = 1 Billion dollars of lost Royalties. Albertan’s should not have to pay for a prosperous Canadian dollar. Idea: What about an Oil & Gas Alberta Infrastructure Program to support the housing issue crisis fund? 1. Loan 5 Billion to “the Fund” from the Heritage Fund; 2. Oil & Gas “the Fund” to repay within 1-2 years; 3. This gives 1-2 years to re-access Royalties with proper knowledge; 4. How you disburse “the Fund”, TBA. This way it would be a win, win, win, win situation all around. In conclusion there is 30 Billion dollars in Alberta savings. This I imagine is called the “Rainy Day Fund” if you proceed with the current review recommendations……. …........……WELL ALBERTA??????????????? WHERE IS THE ARK!!!!! (translation: cause it is gonna pour) Please put a freeze on the devastating destructive proposal and hire a new panel with industry knowledge and start over. |
| RRE4372 |
The new royality recommendations will badly impact on the current growing econonmy of the Alberta. Most of the people lives in Alberta are working with oil and gas companies directly or indirectly and cutting down in operations will highly impact on their living standard and their normal lives. |
| RRE4373 |
I feel that the royalty revenue program should be left alone. If the new program goes into place, you can expect the oil companies to cut back on the oil & gas activity in this province. Which in turn will lead to another slow down in the oil patch. Is Stelmach ready for this to happen? Once a slow down comes, it is going to mean a lot of Albertans will be out of work, I hope that he has high paying replacement jobs waiting to be filled by the unemployed workers. Stelmach and other "greedy" Albertans should realize if it wasn't for the oil companies, this province wouldn't be in the financial shape that it is now. I know one thing I sure don't want to lose my job due to an oil patch slow down. So the future lies in Stelmach's hands, he will either make or break this province. |
| RRE4374 |
It is our Oil and Natural Resorces - People of Alberta, NOT THE OIL COMPANY!!!!!!!!! They can leave but they will come back and accept our terms. There is always other companies that will reconize and agree to honour our hertiage. |
| RRE4375 |
I agree with the final report of the Royalty Review Panel that the royalty rate should be increased. But I believe the Review Panel's recommendation is too timid: Royalties on oil companies (and moreso oil sands) should be increased further than 20%. I believe in Norway they raised their royalty rate to 70% and oil companies happily went along with it. I recommend an additional 30%. The oil companies have been whining a complaining and threatening the people of Alberta over the royalty increase recommendation. The oil companies would still make billions after a 20% increase so they have no reason to cry. If they don't like it, they can leave and other oil companies who do like the new deal can come in and happily take their place. |
| RRE4376 |
I strongly support an increase in the royalties that Alberta takes for our natural resources. As a younger Albertain, and a relatively well educated one I find it deplorable that we have such low tax rates for big business, that we have lacking accounting of what is taxed and that our government is not moving forward with a plan to rectify this. I am especially concerned as this is the time in which we ought to be making investment in our future, not letting the wealth of it flow out of the province and country to which it belongs. I hope you will increase the royalties to at least a moderately comparable level to the rest of the world and not sell our province short. This would be a rate higher than Alaska. Thank you, [Information Removed] Edmonton, AB |
| RRE4377 |
Stelmach, If you haven't got the message by now, that your royalty review paper is flawed, then you want to bring this province to a grinding halt. If this is true, you won't be in politics very long. We have recovered from bad decisions before. Good luck going back to your farming community with all of the people knowing that you are the cause of the thousands of foreclosures. If you are a disgruntled farmer, this is no way to get back at the oil industry. I remember 1980 and so do you. |
| RRE4378 |
I believe that the royalties/ taxes should be increased for the following reasons : 1)- The oilsands are a finite source. Once its depleted, its gone forever. 2)- In an era where the oils companies are making OBSCENE profits, why shouldnt the provincial government SHARE some of that pie ? 3)- Oil companies would rather RAPE the land then leave when the oilsands are depleted. Who is going to clean up the mess thats left behind ? There should be a further tax, called an enviromental cleanup tax, to help prepare us for the day when there is no more oilsands. 4)- In an era where every country is PROTECTING their resources, Canada is GIVING our resources away. Its time to start raising the issue of who exactly owns the oilsands , The provincial government ( which is an extension of the people of Alberta) or the oil companies ?? 5)- The oil companies are " [Expletive] into the wind" when they threaten to withdraw their economic support and create an imaginary scenario of provincial economic collapse. Where are they going to go ?? Alaska just raised their tax/ royalty rate. South America has unstable governments that would like to nationalize all foreign oil companies. Russia has legal/ political issues. Middle East is a mess. So where exactly are the oil companies going to secure their oil supplies if they withdraw from Alberta ? I STRONGLY believe that that the royalty increase is a NONISSUE. The only issue how large of a royalty increase to be implemented. A PROGRESSIVE government should show LEADERSHIP and VISION , and proceed with the royalty increase. If the oil companies can dictate economic policies to Alberta, then why do we bother having an elected government ?? [Information Removed] |
| RRE4379 |
I am very concerned about the Royalty Review Panel report. The report is based on flawed information regarding finding, development and production costs. The finding, developing costsare based on 2005 information and are extremely low thus the conclusion of the report is wrong. If the report conclusions are enacted the conventional oil and gas industry will be further devastated. The rig utilization number is a good bench mark to view the health of the conventional oil & gas industry. Presently the rig utilization is at a 5 year low. This has to do with natural gas storage being at or near an all time high as well as the federal government punishing the Income Trust companies. If this increase in royalties are implemented Alberta's economy will be devestated and they will be moving their investments out of this province and to Sask. , B.C. or the United States. Please listen. |
| RRE4380 |
To the Government of Alberta, I have been resident of Alberta for over 38 years, and for the first time I see a real disconnect between what you as our representatives are proposing on our behalf, and the reality of the industry that fuels Alberta. There are currently more rigs sitting than drilling. There have already been foreclosures on houses in Grande Prairie, Red Deer, due to the industry slowing down. This was in part due to recent ramp up of activity over the last 4 years, and so every service company said "I want my share too". They rose their prices so high that formerly economic ventures were no longer viable, and now they are shut out. Alberta is proposing the same thing -- go grab more royalty money, don't worry if the actual amount of activity drops. The net effect on Alberta should these changes go through will be more instability for oil and gas companies, which leads to less inovation and less exploration of untapped resources that need high commodity prices and high incentives to do so. Less activity will mean each and every service industry, from taxi driver, hotel owner, rig manager, will suffer a drop in their real wages, which will further drop their ability to help drive this economy. It will also mean a drop to every rural landowner, a lot of whom count on lease and rental payments to offset volatile agricultural commodity prices. So if the the governments wish is to crash down the economic engine of Alberta, which has been the envy of the world, then putting forward these recommendations as it stands will be mission accomplished. If however, the government wishes to target an area, such as Fort McMurray, which is having real and measurable adverse impacts to its infrastructure (housing, medical, police), then at least modify the report to target those areas that are clearly overheated. Otherwise, be prepared for a lot of Alberta dollars and expertise to move into other juristictions where they realize the compounded impact of stable resource development. Yours Truly, [Information Removed] Calgary |
| RRE4381 |
Good Morning, I am orginally from Quebec [Information Removed], and I want to provide a more long range view on the royalty matter. I came to Alberta in 1978 and shortly thereafter in the early eighties the Trudeau government policies wrecked havoc on the WEST. I had seen the economy in Alberta come to a grinding halt. Most people in Alberta are not educated in matters of econmics and how fragile an economy can be. The royalty issue will damage our economy and stop the flow of people from the East looking for opportunities like employment, starting a family and looking to a brighter future in the WEST. Truly the goverment of Alberta is at a crossroads and seeing that the balance of power in Ottawa will shift from East to West. I am a conservative and have always voted for the conservative party. Please I am pleading with you, "DO NOT ACCEPT THE RECOMMENDATIONS OF THIS PANEL". I want to have the status quo remain. I like the way things are going and I firmly believe that the Oil Companies will cancel projects and the development of finding new resources will fall away. This will affect jobs, the market and people will stop moving out West. Surely, the Alberta government realizes that we Albertan but Canadians first and that being at a crossroads, we can turn the tide in Ottawa and for the first time to have a large voice in Ottawa. I sincerely hope and pray, that the government will keep the status quo and not turn the clock backwards. Life is all about timing and I want this province to continue to be a place that a future is possible. I would be so discouraged if the royalty recommendations are accepted and all Oil and Gas projects are put on hold. People in Alberta would wonder why. Again most people have no idea about the dynamics of economics. People would see contruction projects stopping and other social issues grinding to a halt, and Why because they think the Oil compnaies make too much money. That is hogwash, these companies provide jobs and the spin off to the economy helps everyone in this province as well as Ottawa. This is why we have leaders, to lead us in the right direction, sometimes what people might think is right is not really the right thing to do. The right thing to do is Leave the Royalties as they are. I have to say that if the conservative party policy is to accept the recommendations of the royalty review panel. I will have to change what party I will vote for. I can promise that. I do hope I have been clear about where I stand on this issue. I hope the leadership will consider to do the right thing and leave the Royalty issue die. Thank You A concerned Albertan A Canadian at heart. [Information Removed] |
| RRE4382 |
How does Alberta's Royalty rate compare to what other places in the world charge? Thank you. |
| RRE4383 |
I can't remember how all of this public uproar got started. It may have started by a political figure leaking something to someone. It may have truly been the public perception. The reality is that it happened due to public pressure and the panel has made its recommendations. From what I can tell, these recommendations have been made with more attention to the input from the uneducated public, than from industry input. Would listening to industry not have lead to a biased Report? Not if the panel would have interpreted the facts, not opinions, of industry players. The costs, revenues and taxes of industry players can be found on their annual reports; why were they not used? Sure they dress them up as much as they can, but if they used the numbers the Report uses, their stock prices and asset value would go through the roof. Their annual reports use numbers that reflect reality, because law dictates they can only reflect reality, nothing more, nothing less. Regardless, there is still this Report that has stirred up the public hornet nest. Crown representatives have been referring to this Report (a Report that, once again, did not reflect reality) as though it were the law already further stirring the pot (see the recent paper article of the province being short-changed billions). I am assuming that the Stelmach Government will raise the royalties slightly thus appearing a hero to the public (because he can explain that further royalty increases would hurt industry and Canadians, being the political sheep that we are, will believe him) and the short-term heel to industry before giving industry some sort of kick-back to silence the critics. I refer you to the headlined article in the October 3, 2007 issue of the Daily Oil Bulletin. [Information Removed]President and CEO is quoted as saying: It's obvious the panel was political, not independent, he said. "They've tried to hoodwink the public and the public has bought into it because they don't understand the facts of the report," said [Information Removed]. Looks like it’s starting to come true. That is out of my hands. As much as it pains me to watch the government fritter away money while not planning for the future beyond oil and gas, looking for the short-term gain of revenue gain (not going to happen, but that’s how the public sees it) only to have to (eventually) make deals behind closed doors to (eventually) satisfy industry and (help) heal the (soon to be) wounded industry, it pains me more to see government care more about the way the public views them and keeping their jobs, than in doing the right thing for the public. This ‘should’ be the politician’s job: to do the right thing when the (uneducated) majority wishes to do the wrong thing. But shouldn't the politician always do what the public wants? No, the politician has the information to make an educated decision, and if the decision is too important to make by him/herself, they should educate the public first, then make the decision. A politician should care more for his province and country than his/her (elected) job. Sure, they might loose their job the next term, but 4 years later, when the public sees that he/she was right, they will vote the politician back in. Doing the right thing is always the right thing to do, regardless of the short-term costs. And that is what this boils down to: doing the right thing in the long-term. Industry is starting to hurt now. Making huge amounts of dough the last two years from PREVIOUS investments made under the CURRENT royalty structure is no reason to put a completely different royalty structure in to place, especially when the environment in which they operate is so different today than it was before. The picture of the fat-cat oil and gas company is no longer applicable as that picture is not continuing presently (as seen from the decrease in drilling activity for just one example), and will not continue if the recommendations of the Report are implemented. Please, keep the royalty regime as is and educate the uneducated public. That is what a politician is for. |
| RRE4384 |
I am concerned that various reports from independent analysts including a major bank and semi-independent industry analysts appear to indicate gross inaccuracies in the Royalty Review Panel's report. My employer, [Information Removed]., has calculated that the actual effect of these recommendations is not a 20% increase in royalties, but from 40 to 70%, which would clearly be unsustainable for any business. At today's relatively high market prices for oil and gas, an actual increase of up to 20% in royalties is a burden we could probably bear, even with increased labor and other costs plus the cyclical nature of prices in our business. This increased royalty revenue would presumably have a positive effect on various government priorities and programs around the province, and this seems fair enough. If adopted, though, these faulty Royalty Review Panel recommendations based on inaccurate figures will most likely have a dramatic and adverse effect on the oil and gas industry, our suppliers, etc. I understand that numerous projects have already been cancelled by many different companies because the climate for business is becoming impractical, and more are sure to follow. The resulting loss of many jobs and opportunities is already starting to impact the entire province of Alberta and this is predicted to increase rapidly and to be felt even beyond Alberta for a long time to come, and for this reason I am concerned not only for my own employment prospects, but also for the future of my 3 children and 5 grandchildren. I urge you as our elected representatives to reconsider the facts and the impacts of these changes before action is taken. It is my hope that a balanced and sustainable approach can be found and followed in the best interests of all Albertans now and for the future. |
| RRE4385 |
This would be a terrible mistake. It is your responsibility to ensure the stability of our economy. The oil and gas industry affects so much of our overall Alberta economy. I hope you do not cripple us all. [Information Removed] |
| RRE4386 |
I am totally against the new royalty increases for the oil and gas industry. The big companies will just take their business somewhere else. That will leave a whole lot of Albertans with a lot less income than before - drilling and completion companies, hotels, restaurants, etc. etc. etc. In addition, the government will have less income to tax because the big companies won't be making as much in Alberta when they move their operations elsewhere. |
| RRE4387 |
My two cents worth.... Everybody I know is making more, doing better, personally as well as communities/MD's all over the province, It's incredible wonderful times for all....how could anybody say we are not getting "our fair share" We got to where we are by not being greedy and having a great working relationship between government and industry. Lets keep it that way. Thanks [Information Removed] |
| RRE4388 |
Dear Mr. Premier, As a financial professional I would like to urge you to work with the energy industry to find an alternate solution to the Alberta Royalty Review Panel (ARRP) recommendations. What most Albertans fail to realize is that the cost of implementing the ARRP recommendations (which are based on bad data) may very well be greater than any of the benefits. The market is ‘reflexive’ so eroding oil & natural gas economics in Alberta will lead to less investment (capital flight out of Alberta), fewer jobs, lower personal income, lower revenue, lower royalties (over the longer term), lower tax collected and eventually more leverage for energy firms and less cash for the province to spend. Reflexitivity can cause positive or negative spirals that are difficult to exit (e.g. just look at the U.S. real estate difficulties). The province of Alberta is currently wealthy (debt free and cash rich with yearly budget surpluses) because of its historical royalty and tax take and pro-business (Conservative) attitude. Lastly, for those worried about future royalties for Albertans in the distant future, I would like to add that under current production rates the oil sands, in aggregate, will last another 400 years! It would make sense to continue the pace of oil sands development (even though costs are high) so that we can maximize the present value of the royalty take for all Albertans. Kind Regards, [Information Removed] |
| RRE4389 |
I work in the energy industry for a small oil and gas exploration and production company called [Information Removed]. I have knowledge about the royalty system and an idea of the Alberta Government perspectives on its royalty takes. On the assumption that the Government and Albertans require a larger "piece of the pie", I would like to propose a different solution for the conventional production royalty program than offered in the Royalty Review Report. It's rather simple, just re-set the date for the determination of "old" production. For decades "old" production has been defined as hydrocarbons found pre-1974. Moving the date forward achieves the goals of the government with much less impact to the industry and economy than the current proposed changes. There would be a significant, measurable and immediate increase in royalty income for the government while minimizing the impact on re-investment within the province. Further reasoning for consideration of this proposal: 1. There is no wholesale revision of the conventional royalty program. The current program has been developed over many years with much government expertise involved. The current program is very robust and accommodates the needs of a vast variety of economic circumstances (e.g. high rate deep gas exploration drilling to low rate CBM development). I'm sure there could be tweaking for efficiency but this should not be the mandate of the review, but should be left with governmental experts. 2. An increase in "old" royalties does not discourage re-investment. Investment economics for new conventional programs will not be significantly affected. Industry uses discounted cash flows to evaluate projects. Long term cash flows for most conventional projects have diminishing consequence to the viability of a project. A revised date for determining "old" production should allow projects to recover payout under the "new" royalty tier. Higher royalties after this period (say, 10 years) will not be economically significant for investment purposes. 3. The increase of "old" tier production should be more compatible for energy producers than a wholesale, across the board, increase. Considerable profits are being made largely from production that was found when finding costs were low. It makes sense to me that this production should pay higher royalties, especially during times of higher commodity prices. Thank you for your consideration of this proposal. [Information Removed] |
| RRE4390 |
The government of Alberta should adopt every single recommendation of this report, and do it immediately. How dumb do the oil companies think we are? Multi-billion dollar profits quarterly, and they are suffering? Let EnCana walk. They'll be back. It is time for a PC government to make a decision, and listen to the people. Give a tinker's damn. |
| RRE4391 |
I am in the OIl Service sector in Alberta, and am very concerned if the Royalty review panels recomendations are fully adopted. There has been a slow down in the industry since spring, and this could be the catalyst to slow down activity much, much, further. I am urging the Alberta government to take their time and evaluate all sides of the debate, and come to a decision that works for all Albertans. I agree their should be a change in the royalty structure, but not at the expense of halting the entire oil patch. |
| RRE4392 |
I read the report and though that it was well-researched and that the conclusions are supported by the facts. The panel took adavantage of many opportunities to solicit information from experts, citizens and businesses affected by results of the review. The report reflects the panel's analysis of those submissions. I am therefore dismayed by the recent rhetoric issuing from the businesses involved in oil & gas production in Alberta. It seems that they didn't get the report that they expected and are now resorting to (fairly childish) tactics to pressure the government into rejecting the panel's recommendations. I would encourage the government to accept the panel's report and recommendations as the balanced view of experts in the field. |
| RRE4393 |
I really hope you listen to the oil companies when you try to implement these changes. I work in the industry as an operator and am not looking forward to layoffs and the like. I have worked very hard at this job and my family depend on me to bring home the bacon so to speak. These changes reach further than just into the pockets of the oil company, they also effect the service providers as well and the panel does not seem to recognize this. When there is no drilling it affects the whole province. The economic downturn that will happen will be in the same category as the much hated NEP program in the 1980s. I am not looking forward to having to go to work for Walmart. I also hope that the government will be ready to hand out aid to the people affected by this. It also seems strange to have Bill Hunter on the panel considering that Alpac has not finished paying back nearly any of the debt they owe to the taxpayers of Alberta. Shame Shame. |
| RRE4394 |
If the government of Alberta is so confident of the profits to be made by operating companies, then rather than increase royalties, why not "put your money where your mouth is" and invest Alberta's surplus dollars in these companies. Albertans will therefore benefit, without the negative consequences (of which there will be plenty) of an effective "punitive" increase in royalties. |
| RRE4395 |
The attitude that energy companies MUST be in Alberta because the rest of the world is too hostile is misleading, if not outright naive. For companies like Shell, Exxon, Total, Chevron etc., that may carry some truth, although not to absolute degree the general public believes. For Alberta's juniors, the royalty report will put many out of business or ripe for a deep discount takeover (destroying wealth belonging to Albertans). For Alberta's largest energy companies, which are merely the size of business units of the super majors, there are plenty of opportunities in friendly environments such as BC, Saskatchewan, Wyoming, Texas, Colorado, North Sea, SE Asia, etc.. There is no "need" to be here (review the comparative economics in the Tristone report). These companies will simply vote with their budget allocations (which is instantaneous compared to voting with your feet!) and "Accidental Ed" will be left to wrest opportunistic grabs from the super majors in good years and be begging for investment in the bad ones. The good Newfoundlanders that have come west for work will be comfortable with this sort of existence, but the rest of us will wonder why the economy that is the envy of the western world was "[expletive] away" by a few whose hubris outpaced their understanding of business. To paraphrase the elegant words of the Chair of the report: 'If industry does not like it, they should leave it in the ground'. They will. In reviewing the report, I did not notice any appendix called Plan B for the Economy, but I sincerely hope, for my family's sake that it is being written right now! |
| RRE4396 |
I work in the oil and gas industry as a corporate accountant. The royalty report is short-sighted and will damage Alberta's continued and future investment by the industry. Benefit to Albertans is measured in more than just the government "take" with royalties. The future of Alberta is largely in unconventional gas, and EOR oil projects, and oilsands. These are high-cost, low productivity projects that require high prices to generate acceptable economic returns. The recommendations in the report call for the government to receive a higher royalty rate on gross revenues without consideration to the industry's costs and time to achieve payout. This serves to erode the attractiveness of these investments to a point where many become uneconomic. Another concern I have is the ARRP’s recommendation not to grandfather past investments in implementing their proposed royalty system. Traditionally, when major changes have been introduced, grandfathering has been provided to ensure that all existing agreements are honoured. Ignoring grandfathering or some form of transition to a new system puts Canada’s reputation as a stable and reliable country in which to invest at risk. This will harm us all in the long run, and destroy the "Alberta Advantage". Related to this, is the issue of the new severance tax proposed in the report. It is a new tax on gross revenue that does not consider the industry's costs and is not deductible for income tax or other royalty assessment. This is another excellent way to permanently stall investment in our province, which seems so short-sighted. The government grabs some extra royalty income in the short run, but then destroys long term investment in our future. As someone only 32 years old, I would like to feel the benefit of a strong oil and gas industry in the decades to come, not just for the next few years. And finally, a key argument used in the report to support the recommendation to raise royalties significantly is the assertion that “government takes” elsewhere in the world are higher than in Alberta. But, this assertion is meaningless without comparing cost structures, well productivity, reserve sizes, and reinvestment levels. To deal with these issues, financial analysts typically compare returns on capital employed to determine which jurisdictions provide the best returns for those investing the capital. There is so much evidence available that proves returns in Canada are modest compared to many other jurisdictions. Any changes to our royalty system should be implemented carefully and after a collaborative, in-depth consultation 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.” Thank you for your time. [Information Removed] |
| RRE4397 |
As a fellow worker in the oil and gas industry I feel that the Alberta gov. should NOT mess around with this royalty program. This being said I feel that the industry is on a downward spiral and is soon going to be a repeat of the 80's when our Alberta economy went into the toilet. I have been working in th eidustry for 15yrs and the past winter spring and summer has been so slow. The time to rais royalties should have taken place when the oil and gas industry was busy 3 yrs ago. So if our leader wants to be in office long he should re consider this action. or the wellfare rate in Alberta will be huge. |
| RRE4398 |
This report was long over due & should be implemented in stages. We must remember that the Oil companies are willing to use billions of dollars to steamroller the Govt & mislead citizens with propoganda & advertisements. But the duty of any Govt should be towards the long term benefits to the people. An important point to remember is that the Oil Men are hard nosed buisenessmen who employ people to protect their Interests by hook or Crook but they always adjust to new policies of any Govt ( case in point - Middle East crisis 1973-74) , Libya,& South America last year where they compromised & even took minority positions upon nationalisation with the govt in power, until that govt kicked them out. So lessons learnt from history are that these oil companies will Sup with the Devil but will never forgoe their interests willingly. So I wish the premier all the luck & support in His Goal of acheiving the best balance &correcting old policy Mistakes with this adage" It is not difficult to Implement a New Idea, But ( the difficult part) near Impossible to root out the Old One." |
| RRE4399 |
The Royalty Review Panel and now the Auditor General's report both strongly indicate that a significant amount of royalties were either not collected due to neglect or went unpaid. Admittedly, the oil and gas industry is the life and blood of the Alberta economy, however, the industry has its drawbacks, specifically, environmental; which will likely (and quite possibly, unfarily) end up being the burden for Albertans and Canada. The oil & gas industry propagates the major problems it faces with declining and stable oil supply source, both of which Alberta's resources address positively. Further, looking at the enormous profits the industry rakes and the potential Alberta offers, it is highly unlikely that they are going to 'close shop and move-out'. Granted, they may slow down operations but that may be a 'blessing in disguise', as it may only help address the over inflated economy that is taking living in Alberta to the point of unfeasability and would further stretch the lifespan of our economic growth (let's face it, realistically, alternative energy sources are not around the corner). I am not of the opinion that we stifle them or drain them of their last penny. However, it is a 'two way road' or it should be, and there is no reason why a mutually beneficical relationship cannot be established. Therefore, I think it is only proper for Alberta and Albertans to obtain and benefit from the royalties that should be collected, as established by the independent Royalty Review Panel and/or the Auditor General report. Lastly, I would also like to see appropriate steps and measures established to prevent such a recurrence. |
| RRE4400 |
Don't implement the panel royalty rise. It's too aggressive. People need the jobs. |
| RRE4401 |
The oil and gas industry in Alberta right now is as uncertain as it has been in 30 years. Investor confidence in the sector is as low as it has ever been, it will not turn around until there is a clear picture of where the industry is headed. Implementation of any changes to the royalty structure at this time would be a devastating blow to an already reeling industry, as is evidenced by Encana 's recent announcement to reallocate $! billion to investments outside of Alberta if the royalty changes as proposed are adopted. Implementation of any changes without careful thought and direct industry input could only be considered short sighted if not fool hardy. It is one thing to maintain a strong image while leading the Province of Alberta. It would be an act of stupidity not to listen to industry , put the blinders on and make a decision based on inaccurate information gathered by an apparent ly out of touch team. |
| RRE4402 |
I am currently employed on the service side of the Oil & Gas industry in Calgary and would like to express my concerns regarding the royalty review. Even though Albertans believe that Oil companies are making money hand over fist the fact remains that exploration, drilling and budgets were seriously cut at the end of 2006, well before the mention of the review due to low gas prices, income trust changes and difficulty raising funds in the investment community. All the governement has to do is compare 2007 to the previous year and the impact already felt on the industry becomes evident. In my line of work I am paid on commission which is based on the sales I make to O&G companies - my income along with the majority of my peers has been seriously affected with the current state of the industry never mind if the royallty changes are put into place. My income to date for 2007 is about 60% lower than previous years - and just so you understand it is not enough to raise a family on never mind have some lavish life that some people think everyone in the industry lives. I strongly believe if the proposed changes are put into place myself and many, many others will be let go or forced to leave the industry due to economics. Also keep in mind all the other businesses, particularly in downtown Calgary that will also be seriously affected by the lack of money people have to spend. Bottom line is we need the exploration and development to continue in this province in order to sustain the wonderful, financially stable, prosperous province we all love and that has been the envy of the rest of Canada for almost as long as I remember. Let's not forget what Trudeau and his NEP did to this province - let that remain the last BIG governement mistake! |
| RRE4403 |
I completely agree with the recommendations - in fact I think that they could raise the royalty rate even higher. It is ridiculous for our government to think that the only way to attract investors for our oil is to give them bargain basement pricing! |
| RRE4404 |
Albertans deserve a fair share from energy revenue. I strongly support to hike the royalty rate. Go GOA Go!!! |
| RRE4405 |
1. We need a throttle on resource use, not a brake! 2. We need more of our workforce building infrastructure, NOT OILSANDS PLANTS! 3. Don't give away our resources to create jobs. 4. Fair is poor terminology. We should get every cent and every job possible from a diminishing resource. 5. Balancing production to infrastructure capacity reduces pollution. 6. Heritage savings is the RESOURCE not money! 7. Design tax program to encourage Canadian procurement and processing. My vote and energy will go to whoever meets these views! |
| RRE4406 |
The proposal is laughable. The return on investment for the risk is to low as it is. This tax will have a big negative impact to the citizens of Alberta |
| RRE4407 |
May i suggest to leave the Royalty structure as is and tax each barrel of raw bitumen that is piplined out of Alberta for Refining or Upgrading. Thus creating employment and tax dollars for Albertans. |
| RRE4408 |
Premier Stelmach, please consider all sides of the issue including how the government would handle any additional royalties. It is not immediately apparent who is being so vocal as to "get the evil oil companies". Is it envy from non-Albertans? Is it those who have come here to make a quick buck and then plan to leave when the golden goose no longer lines their pockets? Please note, I am not in the oil industry, have never been in the oil industry, and know next to nothing about it. However, I do know politics and I do know the kind of biased malevolence directed towards Alberta from other parts of the country as they see their gross mismanagement and over-regulating governments destroy their provinces' economic viability. Canadians hate to see anyone succeed, especially a subordinate commoner like Alberta. Please, carefully review ALL elements of this, not just the royalty report. Talk to real Albertans, too. |
| RRE4409 |
Please consider your people and their livelihoods when making your decision on the royalty hikes. Please do not attack the conventional oil industry in Alberta. We have all worked hard to support the economy in Alberta and hope that you would do the same for the sake of the people who live here and have families to support. I do not support royalty increase in the conventional oil industry. Thank You, [Information Removed] |
| RRE4410 |
If the Government of Alberta will be able to provide jobs that will be lost due to this royalty review, by giving employment to people with the same level of compensation, then by all means the panel can go ahead and put all recommendations into law. If not, they should just mind their own business and ask politely for a portion of it - the investors might be able to understand and consider it. |
| RRE4411 |
Why weren't ALL the facts verified before releasing the Royalty Report to the public. If most people [Expletive] up like that, they'd be out of work. |
| RRE4412 |
I am more concerned about being able to keep our jobs going in the oilfield rather than receiving a royalty. Our gov't has enough surplus in this province; let's put that to better use rather than chase away the hand that feeds most of us that are employed. Let's keep the oilfield workers working in this province! |
| RRE4413 |
I believe that wholesale changes to the existing royalty sgtructure will severely impact the operations in place, as well as future development. The Alberta government risks not only revenue dollars but jobs and the future of the oil industry |
| RRE4414 |
I am very disturbed by the findings of the report and believe it is another example of where people are jealous and greedy, seeing others making money and feeling it is not fair that they don't 'get some or get more' while having done little or nothing to contribute to the success that enabled the profits. Companies make money or they choose different business models and locations. The energy sector has concentrated in AB because of their ability to share the risk and wealth in a reasonable way. We are on the map and out of debt primarily because of this industry and these companies. If you are going to change anything, it should be more around assuring that business and profits stay in AB. Look for more creative ways to give breaks to companies that employ Albertans, contribute to needs of workers (eg municipal programs, housing, etc), not drive companies out. Oil sand product is low quality and not the easiest to generate quick returns and adding more barriers won't help. AB is not the only source in Canada either. I don't work in the industry but have taken college courses for interest and to assure I am somewhat knowledgeable. I have a business education and background and cannot believe that we would as a province decide to bite the hand that feeds us. O&G impacts all business in AB and we need to work together, not sit back and grab. I left BC years ago where I worked iin a psychology field, because of the mentality of socialistic victimization, where people commonly think that everyone who works hard and is financially successful should pay more to cover the less educated, less motivated, etc. There are enough examples of people spending beyond their earnings on bingo, cigarettes and other substances, new vehicles, 'stuff', etc and complaining that the 'rich' take advantage of them. Serving the 'poor me' crowd leads to more people wanting things for little effort as why should someone work to give most of what the earn to those who don't or won't. Sadly this report shows lack of commitment to fair business practice and has already given AB an image as unstable and not unlike (at a lesser degree), Venezuela. We look foolish and like control freaks with imbecilic utterances like that about leaving it in the ground if the oil companies don't like it. How ridiculous! Think! |
| RRE4415 |
I disagree with increasing this tax. The 1980's economic bust was from something very similar and it seems as though we have learned nothing from history. If we implement any of this tax, thousands of people will lose their jobs, the economy will slow down and that billion dollars the govenrment implemeneted in Royalty tax will be gone for years. Then we will have to collect the 1 billion dollars from the other areas of the economy that wanted the government to imopose this tax to reduce their taxes. Why do these other industries want increase in Royalty taxes? My guess is that these companies cannot afford to pay employees the same as the oil and gas industry and cannot fill their workforce. They figure if the government increases the tax it will level the playing field. These industries feel that they have not benefited from the oil boom. I work in the oil and gas industry and I have not felt the prosperity from the boom either, it is extremely slow right now and will be for a couple years, I will be lucky to keep my job. If the government increases the Royalty tax I will lose my job, probably my house and so will several other people in my neigbourhood. This means that I won't be able to buy milk, bread, buy a computer, do home renovations, afford a car, buy other items that help make the economy grow. Clue in Government of Alberta, don't allow any increase to Royalty taxes. |
| RRE4416 |
[Information Removed] Attention: Mr. Ed Stalmach As I am sure many citizens have written you, I am very concerned about the impending Royalty Review and its drastic consequences on the Alberta Economy. Let me start out by saying that although I may be a younger voter, I feel very informed about this issue as I feel it directly affects me and my family’s future. I have always voted for the PC party and feel as though my concern should be noted in discussions with the Premier on this subject. I feel that the Royalty Review was completed by people who are not affected by any of the negative outcomes that may result. Therefore, I feel it is flawed. I have highlighted my concerns below and look forward to your response. The key topics I wish for you to discuss with the Premier are as follows: • The fiscal terms for existing projects should be honored, • The current Royalty Adjustment Program for Deep Marginal Gas Wells should be maintained, • The thresholds for the sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs, and • The Oil Sands Severance Tax should not be implemented. In the past the Alberta Government has been able to work with industry to provide considerable revenues to the Crown, keeping the Alberta economy strong. If the above points are not considered I do not see how major corporations will be able to invest in Alberta’s economy. I believe many Major Oil and Gas Companies will follow in [Information Removed]footsteps, making a detrimental recession imminent. The three main flaws I see with the report are highlighted below. The analysis in the report is flawed • The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, • The Report bases its recommendations on outdated or erroneous costs, and • The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today • Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and • The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta • The recommendations will have a substantial negative impact on Alberta and Canada’s economy, • The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, • The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and • Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. Thank you for your consideration. I look forward to your reply. [Information Removed] |
| RRE4417 |
Please do not raise royalty taxes for the following reasons. If you tax at 0% you will get zero tax revenue, and conversely taxing at 100% will also get you zero revenue. The biggest risk to Alberta that is not addressed is the risk of leaving billions of barrels of worthless resource in the ground. Lets assume there is a favourable royalty rate and a very optimistic 4 million bbl/day of production from oil sands is reached. This equates to around 1.5 Billion bbl/yr produced annually. I mean how much oil sands is recoverable? On the low side lets say 175 Billion bbls. That is going to take well over 100yrs to recover. On the high side, it could take well over 200yrs to recover. However, I think it is fair to say, transportation will have long moved on to other sources of clean power (be it electric cars, fuel cell cars, etc) before the full resouce potential of the oil sands is achieved. Right now a huge risk is leaving a worthless resource in the ground that no one wants. Onerous royalty & tax regimes will only guarantee a slower development and also guaranteeing that a valuable future resource will become obsolete/worthless and replaced by something better. Plus with global warming, good luck burning oil much in the future, perhaps in the future the only allowed use will be for lubrication purposes. Then what will be the benefit of the high royalty rates??? High royalty on nothing produced = nothing. I had read an article many years ago quoting a previous Saudi oil minister and his exact concern was that the Saudi reserves are so large their big risk is leaving a worthless resource udner the sand. If they restrict output too much, price rises and makes alternatives economic. Once the alternatives are economic, or new technology is invented, there is no going back to uninventing the alternatives. Remaining oil in the ground will be worthless. Also Alberta has been one of the more business friendly places to invest. Capitalism creates wealth, that is irrefutable, just take a look at the communist/socialist examples around the world for their "successes". If you had say $1 of earnigns in the pocket of a company like Suncor, and appiled a p/e ratio of say 19 (the current ratio), you create an immediate $19 of wealth out of that $1 in earnings. If you raised royalty rates to collect that $1 that otherwise would have gone to earnings. You now destroyed $19 in wealth by collecting that $1. It is difficult to see how destroying $19 in present value money can somehow be offset by royalties collected, which of course will also be less as future oil sands projects returns will be less robust and less financially justifiable. So some projects will be delayed or not built at all. Focusing on royalty tax rate alone is also wrong. There are lots of other sources of revenue other than just the royalty tax rate: -land sales: If projects are marginally economic due to high royalty rates, Alberta would not have reaped billions in oil & gas leases purchased. -Plus all the other revenue sources like direct & indirect corp. taxes, personal taxes etc As it stands it is a huge mistake to point to other jurisdictions and say they collect higher royalties so Alberta can take a bigger slice. Lets see how long production in places like Venezuela stays where it is? Oh wait. I forgot, OPEC just cut Venezuela's production quota in their most recent quota allocations as Venezuela cannot produce anywhere near their quota level. Hmmm.... I wonder how that works? Big aggressive tax bite = lower production. Which in turn creates a vicious circle of lower tax revenue. It is also a well known fact that the Orinoco Tar sands in Venezuela are very similar to Alberta's Oil sands in terms of resource potential. If anything it is slightly more economic as not as much energy is needed to get the tar out, plus they don't have brutal winters to deal with. So I wonder why with similar resource potential, companies are not rushing to develop Venezuela's tar sands? Perhaps it is the non-friendly busines environment??? It will be a huge mistake for Alberta to become anything closer to Venezuela like. Sincerely, |
| RRE4418 |
Re: Royalty Review Report The data and assumptions used by the Panel seem to be seriously flawed. If the Panel’s recommendations are implemented, the potential impact on the Industry's activity levels in Alberta would be very significant It is very important to ensure that Alberta’s royalty policies continue to support a healthy investment climate. The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. Please make sure Alberta Government has the right facts to make the right decisions! Thank you [Information Removed] |
| RRE4419 |
I'm wondering if you'll be considering the impact of potential royalty increases on oil sector JOBS in this province, not just those directly employed by energy companies, but also the 'trickle down' effect that these jobs have on the entire economy. If royalties increase to the point that it is no longer profitable or reasonable for energy companies to invest the money to develop alberta's abundant natural resources, many of us are going to find ourselves out of work. I have a university education that trained me for work that is largely done in this province by non-profit organizations that your government is currently not very interested in funding. I am currently working for an oil company that pays me the salary that is necessary to pay an exorbitant amount of rent in this city, that your government is again not interested in regulating. Please tell me what benefit I, as an Albertan, am going to receive if/when you take the money from the coffers of 'big oil' who is using at least some of that money to pay their employees very well (and these employees then spend money, donate and invest in this economy) and giving it to "Albertans". The Alberta government's track record for implementing USEFUL MEASURES with the multi-billion dollar oil&gas fuelled surpluses it has already received is poor to say the least. I may lose my job in all this, but maybe I could have another $400 cheque to show for it? No thanks Tories. |
| RRE4420 |
The report is seriously flawed, and is not based on accurate information which is being used for its projections. The decrease in activity and loss of Jobs in Alberta is not being factored into the analysis. Why would a pannel that is looking into Royalties be made up of persons with a oil and gas background??? Would you trust a report about medical practice that was not primarily writen by doctors???? |
| RRE4421 |
The government would be better off implenting a 2-3% increase anaully for five years. I am a firm believer the the people should benefit more but you have to be carefull not to damage the industry inturn reducing production / employment. |
| RRE4422 |
My name is [Information Removed], I am the owner of [Information Removed] provides services to the Oil & Gas, Forestry, Mining and Industrial Construction sectors. I am against the increase that was recommended by the review panel, I do believe an increase is due and I am of the opinion that most Oil & Gas companies are not against a reasonable increase. Reading comments from the Alberta Labor Federation and the form letter they have offered to their people made me write this letter. In their letter they say the Oil companies will not go any where because this is where the oil is and there is no where else to go and that they can still make big profits. These people obviously were not here in the 80's when everything shut down. My parents lost their business and we lost everything, so for these people to make comments that are misleading and that will affect my family and the my employees I get upset. I am in the process of expanding my operation with buying $2,000,000 - $3,000,000 worth of new equipment, bringing more staff on line and at this point it is all on hold. If the Royalty Review recommendations are implemented as outlined in the report I will be cancelling all expansion plans and probably reducing staff. This isn't meant as a threat, this is reality, I have lived through this before and will not risk the well being of my family. I apprecate the opportunity to submit my thoughts on this issue. [Information Removed] |
| RRE4423 |
Alberta is my home, I grew up on a farm in Rimbey. Trained as a geologist in Edmonton and now am doing my [Information Removed]. Long term planning is not a strong point of any democracy in the world today. The institution inherently does not support it. Though it is increasingly recognized as desirable it seems unable to be trasformed into policy. Here's your chance. The oil in our province is finite and extremely valuable to international energy markets, what else could produce such a boom. But with the growth in developing countries and reserves declining, not only are we losing money now by charging the some of lowest royalties in the world, we are also losing out on the future difference in value of our resources that we are liquidating today at lower prices. Granted, I am sure many of the oil companies are serious when they say there will projects scaled back, but I dare say they won't be cut! If there is money to be made, business will operate and in the oil industry there is much money to be made. Of course the oil companies are upset about losing profit. That is the sole function of corporations in the world, to make money for the shareholders, so our dollar invested can be worth $100 by the time we retire. But at what cost to us? Do we simply forget, that when we as Albertans, are checking the stock prices of the oil companies in our portfolios, all we are doing is taking money out of one pocket and putting in the other? Maybe that is acceptable, only right now, we are losing way too much in the transaction. |
| RRE4424 |
I work in the gas industry in Alberta and have done some analysis regarding the potential impact of the Royalty Review panel recommendations and have a major concern regarding the negative impact on the industry and as a result the province if the recommendations are adopted as initially proposed. I am involved in the deep basin tight gas region in NW Alberta. To drill, complete and tie-in wells in the area typically cost $6-7MM. The production rates may initially be 2-3 mmcf/d but since the reservoirs are not very permiable the rates quickly fall drop off. Even with the existing deep gas royalty holiday program and with AECO gas prices in the $6-7 range this area is only marginally economic. Based on my analysis the royalty panel recommendations if implemented would cause the the vast majority of projects to become uneconomic and I believe this could significantly impacting the economy of the region. I recogonize others groups have done similar analysis for other aspects of the industry and have similar concerns regarding the potential impact of the royalty review recommendations if implemented as originally proposed. As an Alberta I a supportive of potentially increasing royalties at high product prices (in excess of $8 gas prices for high productivity wells (i.e.> 3 mmcf/d) and for current or higher oil prices) but I urge the government to take their time in evaluating how to modify the royalty program to make the right long term decision for the Alberta economy! Thanks, [Information Removed] |
| RRE4425 |
The energy sector in Alberta is why the economy is booming. Revenues are high, unemployment is. Why try and fix or even tinker with a system that already works? Especially when there's so much at stake. |
| RRE4426 |
I beleive that the royalities should be raised. I was born here and raised here in Alberta. I am 47 years old and have never lived anywhere else. I beleive that us Albertans are taking a big hit for the rich to get richer off our land.I want to know what I benefit t from any of the royalities. I work for the provicnial government and when tiimes were tough in Alberta we took a 5% cut in our wages. My rent goes up every six months. Food keeps going up and gas...longer waits to see doctors and have surgery. [Information Removed]This province has gone to worse than better. Our highway 28 is in poor shape and putting tar in the cracks is a joke. I drove 18 km on highway 28 and counted 16 semi' trucks in only 18 km. I beleive that redoing highway 63 to Fort Mac should be paid by the big companies not by us tax payers . We hand out money to people who are not from Alberta and as Albertan I have to pay for everything. Uitilties keep going up....again we give rebates I have never gotten one.Also I am a single person and because I never had children I have to pay for everyone else's. As single people we are discriminated terribley. We are taxed to death. PLEASE TELL ME WHAT I AM GETTING OUT OF ALL THIS OIL MONEY???????? |
| RRE4427 |
Do not implement the royalty review panel report Key Points and Recommendations 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. The credibility and analysis of the report recommendations requires significant review. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal. |
| RRE4428 |
Common sense and due dilegance are required prior to a release of the Royalty changes proposed. As a long time worker in the industry I have been witness to many slow and down turns, it is an industry that has a reputation for wealth or bust however I trust that the government will use caution while taking a fair share of the revenues. Alberta is the envy of many provinces, with good reason - 12 billion in the Heritage Fund, an ample mix of resources, many recreational and cultural outlets and venues etc., I feel strongly that as Albertans we need to remain vigilant in our prosperiety, it is good for the people and the Provience as a whole. While the government may need or deserve a large share please consider what is fair and what is too large! |
| RRE4429 |
To Premier Ed Stelmach I am writing as an Albertas who SUPPORTS the Premier's Royality Review initiative. From the information that has become public, it is apparent that measures need to be taken by your government to protect the interest of Alberta's resources for Alberta's citizens and the future of our province. If the likes of Encana feel it is too costly to operate in Alberta, I am sure that other companies would be willing to pay a fair price for Alberta's natural resources. Premier Stelmack, as a life long Albertan, I ask you to please look after Alberta's resources and our future and not be treaten by the oil companies who want to continue to have windfall profits. Sincerely [Information Removed] |
| RRE4430 |
This royalty review will KILL our prosperous province. I personally am employed in the oil sector and know that they will action significant cuts if this royalty review materializes. I have been a strong supporter of the PCs for many years but am now wondering if we are about to re-experience the early 80's when everyone was losing homes, etc. This WILL happen again if this proceeds. |
| RRE4431 |
Premier Stelmach, I have sent you a note at your personal page, but then found this is where I needed to give my thoughts on the proposed royalties. I hope you have received my initial e-mail, but here goes again. I cannot be more opposed to a proposal from the Alberta Government then the royalties (even more so then the Metis Hunting Agreement). I think it will cripple the Alberta Economy and send us into a severe recession. I fear the big Oil & Gas companies will suspend all of their economic development in Alberta and pursue their development elsewhere (namely Saskatchewan). I would be extremely embarrased if Albertans were looking for work in Saskatchewan rather then the other way around!! Although a higher royalty seems appealing, the loss of work that will most certainly arise from it does not only hurt the Oil & Gas Industry, but also every other Industry in Alberta. It isn't a secret that as the Oil & Gas Industry goes, so does Alberta, why mess with it? It's the old addage, why fix it if it isn't broke. We have experienced huge growth over the last few years, everything is booming, why mess with it? I am a proud Albera Conservative. My vote has always been conservative without question. Please don't make me rethink my Government allegiance!! Regards, [Information Removed] |
| RRE4432 |
On behalf of myself and family I respectfully ask that the government accept all reccomendations of the royalty review. This government has not handled recent growth pressures and it is time to slow down and catch up. You are acting on behalf of ALbertans and have allowed us to loose Billions of dollars. No longer please. |
| RRE4433 |
Dear Premier Stelmach and Cabinet members: I request your very careful consideration of the sweeping changes to the oil and gas royalty regime. Please weigh all the facts especially the most current and updated ones to truly strike the right balance for both the consumers like me and the industry. I pray for your objectivity and foresight in coming up with the right recommendations to benefit both the province and the energy industry. |
| RRE4434 |
Would certainly slow things down if it went ahead with the review, which in my mind would be a good thing. Province is deffinetly moving ahead to fast at the present. |
| RRE4435 |
It is quite obvious the news media are the instigators of the Fair Share for Albertans. These individuals of the various news media have NO idea whatsoever what is involved in recovering a barrel of oil from the ground nor the costs involved. The news media are irresposible, inaccurate and deceiving the public of their opinion. The news media personnel should enroll in a course for responsible news reporting where ALL the pros and cons are accounted for. Ed Stelmach and the PC must not let the news media dictate any decision on royalties. Furthermore the news media should be reprimanded for irresponsible reporting. |
| RRE4436 |
I just heard the CEO from [Information Removed]threaten to withdraw $1,000,000,000.00 worth of investment. in 2008 if the Royalties go up. I can understand his concern. He won't be able to increase his paltry salary and bonuses that he gets if [Information Removed]pays its fair share of Royalties. To help ameliorate this situation, I am returning my last quarter [Information Removed] dividend of $3.29 and urge other Albertans to do like wise to help [Information Removed]through the upcoming rough times. |
| RRE4437 |
I support the findings of the royalty report. So please proceed or I with vote for Brian Mason |
| RRE4438 |
I think it is important for Mr. Stelmach and his government to take a long view of the royalty regime. It appears from the auditor's report that we have not fully received the royalties that the people are entitled to, so that issue must be attended to immediately. Additionally, from what I can read in the report, it presents a balanced view recommending that the depleting gas and oil wells be entitled to decreased royalty rate. This recommendation will certainly encourage continued activity in these areas of depleting resource. The grandfathering of previous agreements in the oil sands exploration makes sense, and the recommendation to increase royalties in new exploration activity is very appropriate. This recommendation will have some potential to slow down activity in the oil sands, which is a good thing given the heated activity now, but it will not cause companies to withdraw from oil sands exploration. The oil sands are an important resource that will continue to be developed, albeit in a more rational manner. Do not be intimidated by the threat of the oil companies. Both Peter Lougheed and Danny Williams demonstrated character in confronting the oil company threats, which I understand they need to make in order to maximize their profits. My suggestion is that you lay out plans for a new royalty regime which is more fair to the people of Alberta, table it in the legislature and then go to an election. Let the people judge your decision, and if it is viewed as equitable and fair to the people of Alberta you will undoubtedly be reelected. This action will also provide you opportunity to distance your government from Klein's government, which in retrospect appears to have been a government which protected the oil patch at the expense of the greater good. I know you are presently in a difficult position, having to weigh all the options before you. I wish you and your ministers well in your deliberations. Make your government, a government for the people of Alberta. |
| RRE4439 |
I believe that the Royalty Review of Septermber 18, 2007 should be set aside. A new review board should be enpaneled including representation from the oil and gas industry in Alberta. It is critical that the review board utilizes accurate cost structures as well as revenues of the companies investing in Alberta. |
| RRE4440 |
The Royalty structure was put into place to get investment going in Alberta and it worked. The government is getting enough money from royalties now and they should be the ones curbing their spending not the oil and gas companies like is going to happen. It will result in layoffs and slow down. Do you people remember the 80's and Pierre Trudeau? I guess we will be talking in the near future about Ed Stelmack the same way. |
| RRE4441 |
Why should the west share our wealth with rest of Canada? One hundred years ago when the west was struggling, little help came from the east. We pay to ship our grain east. We pay to have cars shipped west. Where is the justice in all this? |
| RRE4442 |
We are in total disagreement with this and companies are threatening to close down and if it cost the oil companies more to drill here they will just go someplace else. Doing this will put an end to Alberta, not just the oilfield but every business including banks and big companies like that. Alberta will loose a lot of money doing this.. |
| RRE4443 |
Dear Sirs, In regards of the recent release from the Alberta Royalty Review Panel which was delivered to the Alberta Government on September 18, 2007 here are my personal considerations: 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. The credibility and analysis of the report recommendations requires significant review. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal. Thank you, [Information Removed] |
| RRE4444 |
The report is written with a bias and prejudice. As an Albertan (43 years) I am deeply concerned about our governments leadership ability and intentions, time for a change. Every Albertan knows or should know the impact that the energy sector has on our standard of living in this province. The proposed royalty changes if adopted completely would have a negative impact on our economy and all industries. The energy sector will most certainly reduce capital spending in the province and redirect it elsewhere (US, other provinces, global) and the result will be forced job losses and higher unemployment. Very real! It will have a farther reaching effect than just the energy sector. Across the province industries and businesses large and small will be effected directly and indirectly. I am shocked that our government cannot connect the dots and know that there will be a domino effect to all business in all centres. In addition, their will be no incentive to promote new technology for better and cleaner energy development. The low hanging fruit is gone folks and what remains to develop requires greater technical expertise at higher costs with more risks and uncertainty. Higher commodity prices help to offset the growing costs but the prizes are smaller. Wake up Albertans! A go forward plan should include input from all players and be transparent with all supporting information subject to audit. If the government wants an Alberta plan then include all Albertans, review all options and most certainly put the economic stability of the province as the first consideration. Absolutely NOT in favor of the Royalty Review Report current version! |
| RRE4445 |
Please accept the report's recommendations in full. I will not accept a watered down result that leaves more of Albertan's money in the hands of corporations. It is good business to ensure that the Alberta Government leaves "nothing on the table". I am deeply suspicious that the previous Government has let companies extract our resources at less than fair rates. The scaremongering about the loss of investment is a joke. There is nowhere else for the oil companies to go. Please ensure that the new royalties apply to ALL PROJECTS - no grandfathering. My decision to vote PC in the next election hinges on whether Mr. Stelmach stands up for Albertans or caves to a select group of millionaires and companies. Please promptly accept the report in full. Every day of delay is allowing millions of dollars of our money to be given away. |
| RRE4446 |
I have working in an Oil sand upgrader projects for last couple of years, I dont understand why panel is emphasizing to raise revenue by increasing Govt % age in a profict.See Canada Oil Market is baby market which is starting his journey dont try to put resistance in this journey Pls Pls dont act like enemies Panel report based on wrong assumptions |
| RRE4447 |
I strongly support the recommendation of the royalty review committee that the royalty rate be raised. There is no reason for the rates Albertrans get to be among the lowest in the world, especially when the economy is overheated. The committee's suggested amount should be accepted in its entirety and not a partial amount. Thank you. |
| RRE4448 |
I fully support the findings in the Royalty Review Report. While it is true that it may be harder for industry to reap the gigantic profits they have realized in the past couple years, I sincerely believe that an increase in royalty payments may help curtail unnecesary development and the 'no brakes development' mentality that has previously gripped this government and that this increase can help government slow things down enough to assess the damage to the environment and to develop a plan as the previous government both failed to do and then bragged about 'not having a plan'. It is reprehensible that Alberta continue down this path of development at any cost. I don't care if I don't see one cent of the increased revenues so long as the extra money goes towards a fund that we will need once this boom is over. |
| RRE4449 |
If this new royalty review report is implemented then the government will only get a bigger piece of a smaller pie and will not get what they are expecting. The oil and gas industry is slower than it has been in the past few years and this will only slow it down even more. Companies are cutting back spending on every corner. |
| RRE4450 |
The panel's recommendations are the absolute bare minimum that should be implemented with regards to royalties. The report's recommendations are timid and conservative, and do not go far enough. Increasing royalties to 33 percent is a step in the right direction, but still grossly inadequate. With countries like Norway and Venezuela obtaining 78 percent and 90 percent respectively, Alberta is far from being a leader in this regard. Do justice to the people of Alberta by increasing the net royalties to 55 percent or higher. This was one of the options set forth by Amy Taylor in her report "Royalty Reform Solutions" (Pembina Institute, May 2007). It is available online at http://energy.pembina.org/pub/1457 The Government of Alberta must work in the interest of Albertans, not foreign oil companies. Listen to us, not them! |
| RRE4451 |
As a geological consultant, [Information Removed], I am concerned about the recommendations of the Royalty Review committee. There already are a significant amount of smaller companies already suffering because of the high cost of service companies, labour and equipment. Cutting into their revenue will be a fatal blow for many of them. The Canadian energy industry work with very strict economic cutoffs and bases its operation on the restrictions dictated by them. Midstream 'corrections' puts many projects in a lower profit bracket, so these projects would not have been undertaken, had the future royalty regime been known. Any sensible operator, in this case [Information Removed] evaluates the economic brackets and will shy away from the least favourable ones. So, their threat is not a hollow one and does not primarily serve to obtain a negotiating position. The warning of the labour consequences is not idle either. Politically tempting as it is to play popular sentiments regarding the Big, Bad, Fat Oil Companies, the Government better think twice. It is worth while realizing that development of new resources is an extremely costly undertaking and economical success is never guaranteed by any means. Royalties may be deemed relatively low in an absolute sense, but it has to be taken into account what the finding/lifting costs of oil and gas are. In an extreme case, Saudi Arabia with a lifitng cost of $0.50/bbl would be much better able to sustain elevated royalty levels than Canada at $4+ levels. The investment world will react negatively to implementation of upwards revised royalties, inflicting companies with a double hit. This indirect effect will further slow down O&G activity in the province. Wouldn't the Alberta Government, in its endless wisdom, conclude that the proposed royalty structure, if accepted, may well inflict an NEP-sized blow the the economy? It does not seem wise to sacrifice part of our blooming economic for political ends. If I'm not mistaken, the Heritage Fund contains around $20B., and is still growing. Now that I am more or less on the subject, I would like the Government of Alberta to consider that development of infrastructure (of course, a necessary thing) should in fact occur in times or relatively depressed economy, not when the industry in booming. The current situation puts the Government in direct competition with the industry for labour, driving up prices and reducing quality of labour and services. It would be cheaper, more effective -and appreciated by everybody in the province- to keep our labour force busy in off-boom times., and so prepare the province for the next boom. [Information Removed], Geologist. |
| RRE4452 |
It will be very hard to collect a Royalty Tax when there won't be any Oil & Gas activity in Alberta. If government gets greedy, we'll all lose our jobs. |
| RRE4453 |
je suis [Information Removed], je suis ingénieur d'etat en électrotechnique je serai trés ravis que vous m'accepter ma demmande d'etres parmis vous en stage de 15 jour . |
| RRE4454 |
Regarding the royalty review: the panel had the wrong figures. Recession will be bad - high employment - it will have a domino affect on small businesses, companies that oil and gas deal with, employment loss etc.... Yes, we know that there should be a royalty increase but not the figures they are proposing. Does this have a liberal agenda???? it sounds like it... thanks |
| RRE4455 |
The old adage "Don't bite the hand that feeds you" should be kept close at hand for Mr. Stelmach and Mr. Oberg when it comes to implementing changes in how our government "collects" royalty payments from the O&G industry. This could essentially kill Exploration & Research that companies undertake and slow or even stall development in O&G, especially in Unconventional resources which take large amounts of money to invest in, with little payout. I am currenly a worker in the Coalbed Methane/Gas department of an O&G company and it's doesn't take a rocket scientist to see how the Royalty changes could, in essence, kill unconventional exploration as it would not be cost effective for companies to invest. Please tread VERY carefully. Albertans who are in favour of taking more monies are ill advised on how O&G companies are the drivers behind the "Alberta Advantage" of which there will be no advantage once Mr. Stelmach and Mr. Oberg do their thing. It's not the federal government this time about to decimate the economy, it's our own provincial government, which by the way, were only elected by card carrying PC's, not the people of Alberta! |
| RRE4456 |
I read the royalty review report with interest. It is quite clear in what it proposes. I am most impressed with the recommended business-like methods for improving Government accounting. The most difficult decision deals with the recommendation to avoid grandfather clauses. It is time to implement the report completely. My respect for the Conservative Government and Mr. Stelmach has soared simply because of the public nature of the report. |
| RRE4457 |
Royalty should be increased to slow down economy a bit. Too hot economy may do more harm than good. |
| RRE4458 |
While it may look like a no -brainer to adjust royalty rates, the government may still be collecting the same amount of total revenue at the end of the day if gas producers continue to trim back spending as a result of a decreased net-back either due to gas pricing or royalty rates, should be a sliding scale, with a minimum netback established , if the pricing is favorable, higher royalties kick in. If pricing is soft, no increases apply. Would take the royalty relief currently planned on older mature, smaller production and tie that to pricing as well. Is hard to comment any more on this as we really haven't seen many details. |
| RRE4459 |
The increase of the royalties may affect the economy so, as well the development of future projects and operation here in Alberta. |
| RRE4460 |
Please do not give away our jobs for the sake of extra income from the oil giants. We have worked very hard in this province to build business's and create jobs that are the envy of the rest of Canada. We all want fair treatment from the Oil giants but we also want a government that keeps its promises to the voters and to business. I like to live and work in a province that is freindly to businesses at all levels, and I hope that the government can find the appropriate level for the royalty payments to be set. Please enter into negotiations with the Oil industry and try to come to an agreement that will be sustainable and will keep the province prosperous for all of Alberta's people and businesses. thanks you [Information Removed] |
| RRE4461 |
This panel is going to destroy the economy of Alberta, the information they are using is out of date and they don't have all the factors. The oil companies should have had more than 10 minutes to apply information to the panel. I do think the royalties should increase, but not to point this panel has suggested. |
| RRE4462 |
There are 3 siblings in my husband's family who live in Alberta. In those 3 families all 3 husbands and all male children (5) work in oil related jobs. There is no one on unemployment or welfare. Is this not a good thing? Are you familiar with what happened to Bonnyville in the early 80's? One year there was only 1 house built. I was employed at a school when we had to take a 5% cut in pay. Is our Alberta gov't looking for this to happen again? Our provincial gov't sure has a wonderful reputation for making bad decisions and bad investments. Can't we learn from mistakes in the past? Do they have to be repeated? How much is enough? You are running a surplus - do you honestly need more? I have been told the one of the biggest oil companies in Alberta at the moment, is Alberta based. A home grown business from the ground up. Shouldn't we be encouraging our Alberta companies instead of wanting more from them? They invest in Alberta, they employ Albertans. I'm so discouraged. Common sense is no longer common. Is it? |
| RRE4463 |
Simply put our royalty rates are not in-line with those of other jurisdictions. Fair is fair. Do you have the fortitude to correct this problem? The industry was consulted and it is clear they are unable to make a case for the current system. Do not consider 'grandfathering' production, any risk manager at the [Information Removed]members should know that if you are getting a deal that is out of line with other sober jurisdictions the day will come. If the economy slows so be it! I do not accept economic doom scenarios, the basic facts is that the deal as it stands is less than many other jurisdictions, [Information Removed]has yet to acknowledge this fact and won't. Ralph had us wearing sweaters and some having wages frozen etc to slay the deficit and debt, because that is what Martha and Henry would do. I really never thought Ralph would treat family in such a way while entertaining his guest in another room to cavier and gravy. Nonetheless, Martha and Henry were somehow cut adrift. I think we should seek them out because they would no doubt want to sock away some dough, fix up the old place and make sure the land is still yielding something for their grandkids. [Information Removed]they have seen what is like to be governed by an entity that did not take care of things and left them paying the bill. It will be a shame if they have to stand back and continue to watch that happen. I was born here and love this place, the issue is not about the economy. It is about fairness (paying the going rate when compared to other jurisdictions) and decency (treating Martha and Henry with the respect they deserve, something the industry has been unable to demonstrate). [Information Removed]didn't even have the decency to say thank you for the billions! Do you have the fortitude? |
| RRE4464 |
PLEASE DON'T KILL MY INDUSTRY. |
| RRE4465 |
Think of the Backlash from Alberta voters after the liberals went forward with the NEP in 1980. The NEP was billed as a measure to help out the entire country in a time of CRISIS. If failed as it caused a major downturn in the western oil industry. It also caused the majority of Albertans to no vote liberal and turn their support to a conservative government. Remember that without the support of voters conservative governments would not hold provincial or national leadership roles. So beyond the possible loss of jobs in the oil&gas industry (as well as the services that support it and are supported by it) that changes to the royalty structure in Alberta could cause, think of your own jobs and how long a conservative government could hold power in a dissatisfied Alberta. I'm also having trouble with a government that could hand out a royalty prosperity check in 2006 and in 2007 state that they are not receiving enough from royalties. Could it be possible that the reason there is less money in the well stuffed Alberta coffers this year is due to and industry wide downturn that has already happened in Alberta. Does our government really think that making it more expensive for big companies to invest in Alberta will be beneficial? |
| RRE4466 |
Please do not continue with such an ill-planned, poorly implemented, and overly decisive plan for the people and economy of our province. As a voter I am outraged by the lack of information and warning that the public has received on this matter. I oppose this move to raise royaltys in Alberta, and hope our provincial government has the sense to move this issue to public vote. |
| RRE4467 |
Now is not the time to be doing this. If natural gas prices were back to $12, would be a different story. |
| RRE4468 |
i think royaltiy rates should increase to bring in more revenue for albertans but not as much as you plan to like about 7%should be right. |
| RRE4469 |
A huge step backwards. This will certainly create a slowdown and possibly the smaller companies to pack up as their working capital evaporates. Investor capital is what funded these projects and should you enact this increase it would be a mass exodus of investors out of the oilsands until oil climbs higher to offset this insane increase proposed. Do the right thing and don't shoot the golden goose. |
| RRE4470 |
Don't kill the golden goose. |
| RRE4471 |
With the amount of surpluses that we already recieve each year why would we be looking at maybe bringing in more that will not be spent? If this loses even one job or has the possiblity of starting a resession we should take a long hard look. tax reductions then the review and a middle ground that all can live with must take place. A starting point yes, but let's not jump in and say more cash for an already rich ecomdamy. How many jobs will be lost and what will the effects be 5 years from now? |
| RRE4472 |
In regard to the plea from the workers who drill for oil and gas and those workers in the oil and gas service industry who have fears of a slow down in drilling activity should the government adopt the Panel's recommendations - it should be noted that a slow down in conventional exploration and development has been going on for the last few years. In comparative data shown on the EUB website, it shows that activity has dropped 23% in the first 8 months of 2007 compared to the first 8 months in 2006 in respect to exploratory and development wells drilled in Alberta. This drop in activity had no bearing on the royalty fee structure but the shift has been the result of high costs of doing business. This awareness is also shared through knowledge that comes from the workers who have become affected by this slow down. This slow down will achieve bidding that reduces the take home pay of many Albertans who work in the oil and gas sector, results that have occured in the past - results that improve the bottom line for the majors while still seeing the ever increasing value of oil. It is noteworthy what the oil industry does for Alberta in regard to continued growth and employnment; however, the province also provides the necessary infrastructure, for example, highways to guarantee the flow of oil and gas - money that actually comes from part of the royalty revenue. These are expensive and important support structures that benefit the oil industry. |
| RRE4473 |
oil/gas review please increase the rolatly/fees to match the states of alaska and texas. if the oil companies do not like this, then they can leave. PERIOD the oil/gas will still be here when they return and where would the companies go it appears the companies owe lots of back/unpaid fees that must be collected..period |
| RRE4474 |
If this goes through many people will lose there jobs. I find it unfair to be doint this to people already struggling to live in this high priced economy. |
| RRE4475 |
Share our thoughts? Interesting, I thought that is what the Royalty Review Panel just spent the last 6 months doing? WITH representation from all sectors, including the oil industry. Why are other nations like Norway and Venezuala (and some American States) still experiencing oil patch development even though they are charging higher rates than Alberta? Because it is still economical. There is still money to be made in Alberta even with higher royalty rates. It would just mean that development is spread out over a longer time frame and we Albertans would be retaining more of our rightful resource income. I am a Geologist in Training, have worked in Ft McMurray in the oil patch and as such, I am more concerned about the long term economic potential and stability of controlled development than I am about explosive growth now. Alberta First! Sincerely, [Information Removed] |
| RRE4476 |
The Royalty Tax, this tax if passed will have a economic impact on all sectors of Alberta,BC,Sask & Manitoba. There has been alot of young families move across the country to get employment in the OIL PATCH. Is our government prepared to pay welfare out to all impacted by the royalty decision.The OIL PATCH has recently got on board with Apprentiship Program for the drilling rig sector, this is a huge leap for the industry. If the Royalty program goes through the unemployment rate in Western Canada will sky rocket to an all time high, the Welfare rate will also be at an all time high. This will impact the future of our counrty going right down into the schools, education for children will be impacted if parents can not afford tuitions. I hope this is thought through long & hard, remember 1980. |
| RRE4477 |
What has happened in Alberta with the oil royalities is a shame. When Ralph Klien was in Texas some years ago he stated that Alberta is open for bussiness. As we the tax payer can see it is open for little else. Charge big oil what is fair by world standards and not a penny per barrel less |
| RRE4478 |
If we have $40 billion in invetsments that we are canvasing the general public for investment ideas, why would we continue to apply heavy Royalty rate fees, let alone consider fee hikes. |
| RRE4479 |
Seems that the Provincial Government should be more creative about raising their share of the oil revenue. Why not try and offload some of the infrastructure requirements for the tarsands on the industry. We need to have a heavy railway going up to Fort Mac and the highway needs to be twinned. We also need better infrastructure in the City of Fort Mac. Make the industry responsible for this and leave the royalty structure alone. This is a high stakes poker game that you are playing with the industry that has the potential to backfire on Alberta badly. Unfortunately, the horse is out of the barn. You have told the industry that you cannot be trusted and that you will in the future take the opportunity to hike royalty rates at your discretion. [Information Removed] |
| RRE4480 |
The government already takes enough money in the form of royalties and taxes. If the government decides to increase royalties there would be a huge adverse affect on the economy. The oil and gas sector employ's thousands of Albertan's who could be at risk of losing their jobs if this gets approved. These are hard working people that the government already makes a fortune off of with the amount of taxes that are collected each year. |
| RRE4481 |
With the slowdown that Conoco Philips is stating, is it possible to take the bituman from the tarsands that they'd be using and patch the roofs of public schools that leak everytime it rains? |
| RRE4482 |
I cannot understand why the Province is contemplating enacting such myopic legislation. Our Province has been experiencing unprecedented prosperity across all sectors, due almost entirely to the energy industry. It is foolish to look at stale data to determine that the Province could yield an incremental $2 billion per year. The tax base will drop, that should be obvious. Activity levels will drop (they already have been due to weaker natural gas prices). Land sale bonuses will drop, salaries will drop, unemployment will rise. The net effect, in my opinion, is that the Government will hemorrhage tax revenue rather than earn an incremental $2 billion. It is disappointing that this Panel was allowed to release a poorly written report that has just inflamed Albertans into thinking they are not getting their "fair share". It was exceptionally irresponsible. There should have been an informed debate and Albertans should have been presented all the facts, free of the bias of this report. Do the right thing and protect our Province's prosperity. Consider all the data and make an informed decision based on what's best for the Province, not on what will ensure reelection. We're counting on you. |
| RRE4483 |
As per our comments to the Royalty reveiw commitee , I , we ,ask you to please consider the consequences of not taking the producers concerns into consideration as to what per-cent increase they can accept in order to not put us back into NEP day's. Our lively hood and the lively hood of our 50 employee's will be directly effected by the decision's that are made in the next few days. I request that the full consiquences of this decision are thought out not only for the short term but the long term . Thanks [Information Removed] |
| RRE4484 |
Good Morning, I only have one thing to say in relation to my thoughts on the royalty review report...are you trying to bankrupt the citizens of Alberta...the ones that have stocks in energy companies. We would lose millions of investment dollars because this would send the oil & gas stocks plumetting for the second time! I can't afford another hit like the one we got when legislation changed on trust companies! Inflation is bad enough now, but you do this and energy companies will be looking to other provinces or countries for future developments and taking money out of Alberta and from albertans! This will impact all areas of business starting with oil & gas service industry, than hotels, restuarants, retail... So please re-look at this and try to come up with a better solution for both the govn't and Albertans! Thank you! Sincerely, [Information Removed] |
| RRE4485 |
I find it amazing that "the polls" show Albertans are in favour of dramatically increasing the royalties paid by oil and gas companies.....Where do these people live? I do not know 1 person that was polled. Do they only poll the homeless? I feel that this would seriously undermine our economy in Alberta |
| RRE4486 |
I think that the government should represent the interest of the people of Alberta, not the forgein investment. Yes the two are closely linked but very distinct. Based on the information that I have read, I believe that the government of Alberta should implement the recommendations of the report. The resource belongs to Albertains / Canadians. There will always be a need for oil and gas in our economy. What's the rush in getting it out of the ground so fast and giving it away? Speeking from a concerned Albertan Thank you for the opportunity to provide a comment |
| RRE4487 |
The National Energy Program, attempted in the 80's, failed miserably. Why are looking to follow in those footsteps? |
| RRE4488 |
I do not agree with the recommendations from the "Panel". To blindly accept them is comparable to "biting the hand that feeds you". I believe the wrong people were selected to be on the "Panel". Is there any other industry in Alberta that is taxed at the same or a higher percentage as what they have recommended ? Alberta is the only debt free province in Canada. Alberta has the fastest growing economy in Canada. Alberta is the envy of most of the world! Do not make major changes - let's keep Alberta strong! [Information Removed] |
| RRE4489 |
As a young Albertan, the Oil Royalty Review has me deeply concerned. I, along with many other young Albertans, all work within, or have work related to the oil industry. If the royalties get raised to a 20% increase, this will cause major losses for all employees. Career, home, financial losses that will be greatly devistating for all. To hear that a crash could be a significant as the one that took place in the 80's leaves us all with not much hope and security to live a successful life. We vote Conservative in our country for a better way of life, and will be greatly disappointed if this is the decsion that is made. Opinions will change of a Conservative gov't and what they believe in, and will push future voting back to a Liberal gov't. I, along with many others, will guaranteed change back to a Liberal vote, if we have to see everyone in our communties, towns, and province suffer such an impact. [Information Removed] |
| RRE4490 |
It is always important that the owners of the resource receive significant benefits from resource development. In Alberta, the industry pays for access to leases through bonus payments at land sales, and pays royalties on production and taxes on income. In 2006, bonus payments at land sales totaled about $3 billion, while royalties paid totaled $11 billion. Combined, this represents approximately 40 per cent of the Government of Alberta’s total revenues. If you add taxes from the industry (including oil and gas service companies) along with income taxes paid by employees involved in the oil & gas sector, you can see that our industry is the primary driver of the economy of Alberta. And, where does Alberta stand today? Unemployment is currently at the lowest level of any jurisdiction in North America. The Province is debt free and generating annual surpluses that are the envy of virtually all other jurisdictions in Canada and beyond. Individuals enjoy the lowest tax rates in Canada, and Alberta does not have a sales tax which is clearly an advantage. More importantly, companies are investing billions of dollars in our economy to keep it strong for the future. In our integrated economy, it is important to consider all elements of wealth creation and not just government-take. In 2006, the oil & gas industry spent $60 billion on capital and operating activities in Alberta. This number dwarfs the amount paid in royalties and land bonuses and is the real driver of the Alberta advantage. Despite the wider benefits of oil and gas activity in Alberta, the panel’s analysis focused exclusively on “government take” through royalties and concludes that royalties should be increased significantly. Under this framework of analysis “government take” comes at public expense because the additional money the government wants must come from somewhere, and in all probability it will come from capital and operations – the very spending the industry undertakes to support the wider economic benefits. |
| RRE4491 |
As a an Albertan, I believe that it is our Premier Ed Stelmack and our Government's moral obligations to uphold the the long term economic drivers that will continue to make our province as the the choice for investments and for your children and grandchildren. What I find the flaws in the Panel report that the Panel ignored the underlying solutions to maintain a balance between what our oil & gas industry has created vis-a-vis insignificant $2.billion "royalty fiasco" their calculations show if their recommendations are accepted. I request the Premier and his cabinet to consider the following business rationalizations objectively: (a) Our industry must remain vibrant to create sustainable employment not just for now but decades to come- this will create significant revenue generations for our government treasury while we will continue to enjoy the best living conditions and economic conditions for all albertans and Canadians across our vast land who are dependent on providing goods and services to our industry. (b) OIl & Gas industry's direct contributions to our Government treasury and support systems with billions of dollars new capital/operating investments along with billions of dollars indirect service sectoral investments that our industry brings to our province will have a devastating impact with the stroke of a penned decision by the Premier and his cabinet colleagues if the Panel's error-filled recommendations are accepted. The Panel's analaysis is therefore fatally faulty without considering all of these "real" consequential matters- I guess that the Panel was not given the scope to analyze the "pros and cons" of its recommendations. Obviously it is our Premier and his Government's sole responsibility for this part of "missing" key factors to arrive at a decision. I therefore urge our Premier and his Cabinet colleagues to weigh all industry advantages VS potential increase of royalties, which our Government may or may not realize given the state of sky-rocketing costs overrun, continuous depletion of conventional oil & gas, exploration capital required for deeper resources, infrastructures etc., maintaining strong environmental control measures in the sustainable "healthy development of our resources are the decisive facors that will create jobs and prosperity and hence "Alberta Advantage". This is what I believe that the Premier and our government want to convey a message to all Albertans for the Albertans. Thank you [Information Removed] |
| RRE4492 |
Hello, I work for a well servicing company and am wondering how this report will affect my job, the economy. |
| RRE4493 |
I do believe that we need to do something in regards to the royalty review report. I think if we as a province are to continue growing, then we need to make sure that our children and their children will continue to reap the benefits that having the oil in the province allows. I agree that the royalties need to be increased, but I don't believe they should be increased all at once. I believe that they should be increased gradually over a few years. The oil companies have known this day is coming for a long time and I don't believe they will go anywhere should we increase it gradually. Considering that the companies have had increases in revenues etc over the last few years(or more) I don't think that they will be too hurt should we do it gradually. Please don't let the companies bully the government into doing things that aren't best for all concerned. Thank you for the opportunity to voice my concerns [Information Removed] |
| RRE4494 |
How long are you going to carry on with this non-sense? The longer this uncertainty continues, the more of an impact this is having on our housing market in Alberta. We have a good thing going in Alberta, don't [Expletive] it up and don't be greedy. Find a solution that keeps everyone happy and do it quick - QUICK is the key word here...unlike most other decisions made by the government!!! Tired of Hearing People Are Afraid To Buy Houses in Alberta Because of This, [Information Removed] |
| RRE4495 |
I was very surprised, considering the panel's background, that the royalty review report actual said what many Albertans have been thinking for a decade. This report clearly shows that Albertans need to receive a fair share for a resource they own. Though I think the 1% royalty needs to be significantly increased, I would support the report's recommendations. I strongly urge the Stelmach government to take a Lougheed like stand and ensure that Albertans are receiving their fair share. |
| RRE4496 |
I don't think or feel that the panel did a good job understanding the Macro effect s this will have on Albertans. My job is potentially on the line if this biased commentary is implemented. The fallout will effect everyone. Memoryof the 80's are not forgotten, when overnight the industry ground to a Halt. Its not about what the oil industry wants.... its what we all need in this current market (trust news, cdn $ (not addressed in report), higher costs. How can the panel compare "our fair share' with nationally run companies in other jurisdictions. This will effect my decision, to support this leader and government in the future. Very concerned, born and raised, Albertan |
| RRE4497 |
The AB government must take a leadership role with respect to the royalty regime. The development of the oil sands will not be decreased due to the total gov't take and AB must understand that our oilsands are becoming more economically feasible as technology advances. In addition, the entire current system must be reviewed to ensure there is no 'grandfathering' as the economic climate has changed radically since the royalty regime was started in 1997. I feel the Ministry oversight is required to ensure that 'moving targets' are maintained to ensure the industry is providing relevent data to support the 'new' tax system for the oil and gas industry. Finally, I am appauled that [Information Removed]and [Information Removed] are not paying any type of royalty on bitumen. This product is one of the lifeblood materials of the increasing infrastructure deficit that we are experiencing. In closing, we must provide some type of incentive to add-value in AB as opposed to piping our products to be upgraded at locations outside AB and Canada. [Information Removed] Edmonton |
| RRE4498 |
To whom it may concern, I do NOT support the proposed increases in royalty rates as well the severance taxes proposed by the royalty review panel. If implemented, Alberta would see a drastic reduction in investment in the province. The cost structure of the industry in Alberta does NOT support an increase in royalties. I also believe the government would waste the money anyways. WE already raise the most taxes per capita in Canada, spend the most per capita in Canada, yet we barely add funds to the Heritage Fund or other vehicles to build funds for the long term future of the province. However, the preceeding point is moot anyways: royalties recived by the province will DECLINE if this panel's recommendations are implemented. Capital will leave the province, production will decline, people will be thrown out of work, rural service towns will stall and overall economic activity will stagnate or decline. This is not the right way to go! |
| RRE4499 |
I work in the Oil & Gas Industry and have serious concern about putting the Royalty Review Panels recommendations in place. I believe that the Royalty structure on heavy oil should be updated to reflect a more mature industry but I am not in that end of the industry so I can not say if the recommendations are good or not. However, I am directly involved in the conventional oil & gas industry and the recommendations if put in place will have a major negative impact on this industry. It is simple math that figures out where you invest money to get the best rate of return which is your job as a Director or Officer of a Company. The exodus of investment capital in Alberta will be "real and significant" with "real and significant" negative impacts on all Alberta for years to come. The ability to make money on invested capital, which over the last 10 years that included some pretty good years on the average was not out of line for the risks involved, is necessary for stability and long term prosperity of Alberta. As it stands right now Albertan's are getting their "Fair Share" the Conventional Oil & Gas Producers are getting their "Fair Share" and we are the envy of all the Provinces in Canada. Let's not kill the "golden goose" that has been good for all parts and everyone in Alberta for the past number of years and can be for a long time to come. Reject these recommendations as it stands. |
| RRE4500 |
Hey, is this province so 'poor' that it feels it has to kill the goose that lays the golden egg? What will you do with all the extra cash when you can't spend what you take in now? Leave things as they are and consider dropping provincial personal income tax. My vote will go elsewhere if you mess with the industry strength over this cash grab! |
| RRE4501 |
Not sure if this is the correct department. The Stelmach government will fold if a hard-line approach is not taken against the threats of these billion dollar companies. The Alberta taxpayer is losing money by the current scheme and we require you to put a stop to this. Sincerely, [Information Removed] |
| RRE4502 |
I fully support the results of the Royalty Review. Given the credentials of the review panel members and the chair of the panel, I feel that business interests were more than fairly treated. The gas and oil belong to Alberta, and by extension the people of Alberta. I believe it is the duty of the government to maximise royalties paid. [Information Removed] Red Deer, AB |
| RRE4503 |
I work for an energy services company in Calgary, however I would like to make sure that the government hears that is okay with (MORE THAN OKAY) to increase the amount of royalties these oil and gas companies pay for extracting the resources out of our province. I am writing the government today primarily because of how shocked and outraged I am by the tactics that companies like mine are using to threaten their employees into opposing the royalty review. I am not shocked to hear them make their public complaints but I am deeply saddened by the process in which the executives from my company and many other companies that friends of mine work for throughout [Information Removed] Calgary have blatantly threatened their employees with their jobs and systematically guided their employees to this website encouraging us to protest this review. I am not falling for it though! [Information Removed] I have watched my own company squander their money frivolously when times were good rather than saving it wisely. ‘Clean-up’ has been necessary for some time in companies like mine and for the executives of our companies to try something so weak as to blame it all on the proposed royalty review which has just come up is Ridiculous! Times have been tougher for more than a year now (especially since the income trust announcement one year ago and even more so because natural gas prices are just low.) This is a case of corporate scapegoating and unfortunately most people are so attached to their easy, well-paying jobs here in these companies that they’re buying it, hook, line and sinker! The fact is that if you haven’t been very busy in your job you probably should be let go! I would much rather see my company clean up and behave responsibly and efficiently. [Information Removed] because the way corporations are behaving in Alberta right now is Wastefully! The other thing that should have disappeared years ago is the ridiculous executive salaries (and 100%) bonuses for certain positions. Stop throwing it back and the small guys and making them do your dirty political work. If execs and their assistants could have done with a little less over the past year or two our budget wouldn’t be so ‘desperate’ this quarter. I want to see the government stay strong and start demanding efficiency and responsibility from the corporations that operate here. It is the only thing that will give our province (and this world) hope of sustainability in the long run. I want to see a beautiful strong province for my children’s children (and even their children.) STAY STRONG STELMACH!!!! (please and thank you) |
| RRE4504 |
After watching this morning's news with Mr. Mel Knight's response to the auditor's findings regarding the lack in the collections of the existing Royalties under the present rates by the two previous energy ministers starting with Murray Smith to now Mel Knight, I find his response inexcusable! This is not a personal vendetta against him, like he had indicated, but an accounting procedure done by a professionally unbiased department which has found major flaws in accounting of and the collecting of Alberta's public money over the last number of years. This minister has demonstrated his lack of understanding and perhaps knowledge to continue to be the minister of the most important portfolio in the province. If he would have excepted the report and indicated that major flaws have been identified which he now needs to remedy, I would perhaps still would have confidence in him! The agenda of any government is to do the best in looking after the business of the province and not to try and hide or misguide the public. This minister needs to resign if he can not understand the gravity of the problem or be dismissed by the premier. I would appreciate a response by Mr. Knight to explain to me how the auditor is wrong !! [Information Removed] |
| RRE4505 |
As a matter of policy the government's stance should be to take a 50-100 year time horizon, and to ensure that current economic growth both provides benefits that are spread over a long time and ensures that costs can be covered over a long time. Current growth creates demands on infrastructure that will have ripple effects in the economy for tens of years, and there's no guarantee that the revenues will continue to cover those long-term costs. For many years people were proud of the city of Calgary and had little to complain about. Housing costs, homelessness, sprawl, crowding, stretched transit, stretched health care, talent shortages, and so on, are all symptoms of a provincial attitude that supported unbridled growth. Growth is good. Too much growth exceeds our capacity. If the energy companies threaten to scale back that's okay. We don't want a plunge in activity, but a cooling would be fine. It's important that a fair share of the wealth remains in Alberta, rather than being redistributed to banks and oil companies in other provinces and countries. Not because it's "ours" but because we need to be able to cover the long-term costs of all that development. I think the attitude that it's ours alienates other Canadians. We didn't do anything to have geological luck, so we shouldn't be arrogant about our wealth. At the same time we need to ensure we can sustain a reasonable standard of living. For everyone, not just the wealthy 10% who have a voice. An essential part of the strategy has to be to address the income disparities that create huge numbers of working poor, and a sustainable economically-sound non-developer-driven housing strategy is critical. The issue of grandfathering is an important one. It's not economically sound to completely protect existing players in perpetuity, nor is it sound to penalize them by changing the rules drastically in the middle of huge long-term investments. A transitional approach should take a middle road to ensure viability of existing projects while leveling the playing field with future projects over time perhaps 10 years. One of the challenges for the Government is to address the statement of the panel that the issues of environment and infrastructure were outside their consideration. An integrated policy that considers all these factors is essential. Our long-term quality of life depends on agriculture, energy, infrastructure, recreation, environment, social equality, and many other considerations. To take a narrow view has risks which we are currently beginning to live as a result of past policy. Where will all the money go - I do not support increases in general revenue. I believe the royalties should be earmarked by legislation to long-term initiatives such as environmental protection, remediation and enforcement, heritage fund, affordable housing, water infrstructure, energy-efficiency, education reform. And not to short term priorities as urgent as they may be. Let's ensure we have a quality of life in Alberta for the next 100 years. |
| RRE4506 |
I am a long time conservative goverment supporter. I strongly feel that we as Albertans who own the resources should be taking more royalty fees from the producers. I also believe there should be a stronger tie too oil prices after intinial development and start-up of new developments. We as Albertans should be reaping revenue as the prices of our free market commodities go up. If they go down then we take less. Natural gas royalties especially in light of shallow low yield plays needs a different formula that allows it to be attractive for development and commercialization. Again one developed and on line we go back to a tie with the market price of the commodity. We get rewarded just like the oil companies and make more when there is more to make. That royalty fee tie has to be clear and tight. Again yes take our money and put it away or use it to develop other sustainable industry. We are not Venezuela and I do not think they want to deal with people like Chavez. They are using standard oil company scare tactics and I really feel they have no regard for Alberta or Albertans when it comes to them maxmizing there profits and filling there pockets. They need to understand it is our oil too start with. They have all been reaping reward in record profits and shares and in the meantime we as Alberta have fallen down the royalty fee list taking less and not being rewarded as we should have been. They make good money and so does the province as it should be. Take the money. |
| RRE4507 |
The royalty rates that have been suggested by the review panel will destroy the oil industry. Albertans will be unemployed and we will see a total opposite ecomonic enviroment than what we have today. The costs that have been suggested by the review panel do not take into account the cost of drilling dry wells. when these costs are included the picture changes dramatically. At cuurent prices producers would be losing money and stop all drilling and exploration, if this happens how do albertans get their fair share? Do we all forget why royalty incentives where put into place? These were part of the catalyst that gave Alberta the cash that it has on hand today. We need to realize that the province of Alberta is far better off financially than most of the oil companies that they are trying to take their fair share from. |
| RRE4508 |
Mr. Stelmach, The NEP took effect the year I graduated high school. I remember the damage that did very well. Please do not create another program like that one. [Information Removed] |
| RRE4509 |
The report "Our Fair Share" put out by the panel is ludicrous. They fail to understand the actaul costs of developing oil and gas reserves in Alberta. The consequneces of these recommendations would be catastrophic to the economy, and lower government revenues could eventually be expected. Why do we need to increase taxation when we are debt free, and running multi billion dollar surlpuses? Being in that postion is a result of the current ficsal regime the oil companies have been operating under. Do NOT raise the royalties. |
| RRE4510 |
As a recent engineering graduate who moved to Alberta from Newfoundland, I think it is a incredibly stupid idea to increase royalties for the Albertan government. The government consistently brags about surplus revenue every year, so why do they need the extra money? If they increase royalties, oil companies will slow down development, resulting in less workers and wages. The government would be taking money out of its' citizens pockets, not the oil companies. |
| RRE4511 |
After reading the recommendations put forth by the Royalty Review Panel and the press releases from some of the major oil players I am absolutely concerned about how this is going to affect Alberta in the long run. My biggest concern is how uninformed the public really is on what kind of impact the royalty changes will have on their personal lives. The service industry is already seeing major lay offs caused by dropping gas prices. What is going to happen when royalty rates are increased and gas/oil prices drop? We have already seen companies like Encana & CNRL ensuring that they will cut their drilling activity and major projects if these royalty changes are implemented. Does the public really know how this will impact them? Are they fully aware of the "ripple effect" this will cause? Has anyone considered how these changes will affect the employment rate of Alberta? With the ever increasing recent boom in real estate, unemployment will only lead to more foreclosures and a growing homeless population. The royalty changes may result in increased funding in the short term but as companies continue to lower activity or go bankrupt; in the long run these royalty changes are not necessarily in the public's best interests. Perhaps the Alberta government should heed the concerns set forth by industry and review the report using the correct figures. The public needs to be fully aware of the long term impacts these changes will have on their lives. |
| RRE4512 |
every Albertan is already sharing in the wealth. My CA firm is paying our employees higher wages to keep up to the levels paid by the BIG BAD OIL COMPANIES Becareful about the economics concerning the oil industry Let's remember the NEP |
| RRE4513 |
I THINK THE OIL COMPANIES HAVE DONE VERY WELL IN ALBERTA OVER THE YEARS AND ARE STILL DOING AS WELL AS THEY COULD GOING SOME PLACE ELSE.I HAVE SHARES IN SOME OIL COMPANIES AND THEY ARE GOOD INVESTMENT AND STILL WILL BE EVEN IF ROYALTIES ARE RAISED TO THE RECOMENDED AMOUNT .FOR FUTURE SOCIETY IT IS IN THE BEST INTEREST TO RAISE THE ROYALTIES TO THE RECOMMENDED AMOUNT ESPECIALLY WHEN OIL PRICES ARE AT RECORD HIGHS. |
| RRE4514 |
royality rate at 20% this leaves them ( the gready oil barons) with the remaining 80% any management that redirects investment does not have their investor interest at heart. the culling of unprofitable inventory is only sound business the current royality rate on my income is 40%+ would you conside lowering it so that I my have more that the remaining60% to live on? |
| RRE4515 |
Alberta's economy has prospered from oil and gas market. Oil is more that $80/ barrel and gas at $33 BOE. Increasing the reality rate unexpectedly like this has already made all oil and gas companies, specially gas producers to recalculate our project plans and rate on investments. Many projects would not be financially wise to pursue. Most gas producers would have to cut their drilling and capital investments. Interns, it would have a profound affect on the job market and province economy. Isn't it better to prosper from the strong economy and great job market, than aim for additional billion dollars in revenue? Do we have a plan on how to spend the B$ 13.8 surplus already? Being greedy to get more "share of the pie" without needing it would just leave others with less... [Information Removed] |
| RRE4516 |
I have been in the oil patch for 14 years as a swab operator and i have enjoyed it. If this royalty crap passes this could end my carrer and with no other experience will be hard to find a job there for leaving me and my family with no income. this causing me not being able to support them and not make my payments. if this passes just imagine how much this will cost the province in unemployment. NOT A SMART CHOICE. THINK ABOUT US AND NOT YOURSELVES. WITHOUT US HOW WILL U HEAT YOUR HOUSE OR DRIVE YOUR CAR. ITS NOT BRAIN SURGERY HOW WOULD YOU FEEL IF YOU LOST EVERYTHING BECAUSE THE PROVINCE GOT GREEDY. |
| RRE4517 |
The oil companies have been reaping the immense financial benefits of our (Albertan's) oil and gas resources for years with minimal return to Albertans. Those resources are ours and I feel terrible resentment about getting paid so little for them, while the oil and gas companies and their shareholders make extraordinary profits. Meanwhile our government moans and groans about not having the extra money to put into education, health and other important areas. The royalties have been ridiculously low for far too many years. The proposed changes don't go nearly far enough to compensate Albertans for what has been taken in the past, nor does it adequately compensate them for future production and development of the industry. Royalties in Norway, for example are much higher and it hasn't discouraged private enterprise as the private sector companies still made a big enough profit. I think their royalties are between 70 and 80%!!! On the other hand, the Norwegian people have seen huge benefits from the large oil and gas revenues going into their public coffers, assisting with health care, education, and other services. I also don't like the fact that much of the refining of our oil and gas resources has been sent south, giving well-paying jobs to Americans instead of Canadians. While we have a labour shortage, that kind of labour is sought out because of how well it pays. We should keep that kind of work here in Alberta. |
| RRE4518 |
The government MUST implement the report in its entirety. Oil and gas companies are here for the long term and won't leave the province if the increases are put through. They are simply bluffing. They have had it their way for a long time and it's now time to have the royalty structure catch up with reality. DO IT NOW! Thanks [Information Removed] |
| RRE4519 |
My husband and I were greatly affected financially in the early 80's during the slowdown in the oil industry with job layoffs, high mortgages & plummeting house prices. We are deathly afraid that this situation could happen again in Alberta and don't believe you should do anything that may slow down the booming economy. |
| RRE4520 |
I strongly support the Alberta Government raising the royalty rates and not bend to the threats of the oil/gas corporations. These corporations primarily have higher profits as their goal; it is the government's job to be a good steward of the resources we have been given. The higher royalties could be used to repair/replace infrastructure that has deteriorated over the past years of the Klein rule when cutting spending was their primary concern. I also believe these additional royalties should be allocated to environmental issues such as pollution and water use; the corporations are not going to concern themselves with those issues unless forced. I believe that royalties were increased in the 50's and the 70's and the same rhetoric happened (ie threats to withdraw investment). As happened in the past, there may be some immediate withdrawal but over the long term the investment will come back. Alberta has the resouces and has a very stable political climate with no threats of unrest. Really an ideal place for natural resource development. As a resident of Alberta and a business owner, I would also greatly welcome a slowdown in the current boom. Costs have grown out of control and labour costs are escalating making it difficult for non oil businesses to survive. Finally, our society is also showing signs of distress, making Edmonton a less desirable place to live. Too much growth at too fast pace is not healthy or sustainable. |
| RRE4521 |
We as Albertans are always bragging about our unemployment and how low it is, well if the Royalty Review goes through there will be many job losses. This is not only hurting the oil and gas companies but all of the people that are "Proud Albertans". Our leaders need to stop and take a look at what they are doing they all are well looked after but what about all the people that are just surviving pay cheque to pay cheque and then there will be no pay cheque and more people will be on the streets. I am a born and raised Albertan and so are my sons and it's pretty scary to see what our leadership is doing to us and my sons are just surviving now. I feel this really needs to be looked at and to see the long term effect this will have on our province and our people that vote you in as our leaders. Thank you and hopefully you are listening to your people that are paying your wages. |
| RRE4522 |
Dear Premier Stelmach, I hope that when the Government of Alberta makes its final decision regarding the Royalty Review that it takes into account the money, power and organization behind the Public Relations efforts on the part of the oil and gas companies. The well-financed Public Relations departments of oil companies are very skilled at applying pressure to government and influencing public opinion. Further, they are very motivated on this issue because one of the key ways that public affairs departments can demonstrate to executives that their salaries are worth the cost is by successfully mitigating the impact of the royalty review. In contrast, the voices of those Albertans who simply state they want a fair return for their resources are not loud and bellicose. There is no well organized or well financed campaign for ordinary Albertans. However, when the Auditor General points out the extent to which Albertans are not getting a fair share for their resources, the Government should give his message credence. Unfortunately, the efforts of the oil companies already seem to be working. I gather from comments made by Premier Stelmach that he will take a "balanced approach" that he does not intend to implement the recommendations of the royalty review in full. We will see what this will mean during the next election. I know that my vote is following the party that promises to implement the royalty review in full. Yours truly, [Information Removed] |
| RRE4523 |
By simple logic, I fully understand [Information Removed] plan to move capital from Alberta if royalties are raised. If there are more attractive place to invest, why not? Investment will eventually come back to Alberta. But, Alberta will have to wait until the other opportunities has been depleted, that's in about 10 years, at least. Albertans, those who are in the oilpatch and those who are not, has been riding this boom from the industry. The industry employs people and these people then employs other people in other industry, such as real estate, automotives, tourism, etc. Therefore, saying that this government move to increase royalty is for the good of Albertans, I will have to ask, which Albertans? Because I would think that the majority of Albertans will be in worse condition if the royalty increase take effect. Please do not make decissions based on the money oil & gas company has made. Please make decision based on how much money Albertans has made from the industry, directly and indirectly. |
| RRE4524 |
I have been employed in the oil patch for 26 years. I have been through the up and down cylces based off of supply and demand, and the NEP. What I see here is a government shooting itself in the foot (again). I see [Information Removed] is prepeared to backoff on its 2008 budget by 1 Billion dollars . Has this government calculated what the total impact would be to all Albertans? I live in a rural comunity and I know the impact here would be severe. Property values would drop. People would be out of work. Many businesses and services companies would also be impacted significantly. The industry is already going through a turndown , and we do not need any other influences to slow it down more. |
| RRE4525 |
every recommendation of the royalty review panel HAS to be implemented and written into law before ed stelmach calls an election, anything less is just a continuation of the alberta conservative party " OIL SCAM " which has cheated the citizens of alberta out of 1'000 x more money then the federal ad-scam. the sad truth about the oil dictatorship in alberta is the fact, that encana threatened to syphon over one billion of oilproffits from alberta, after they received permission on the 2.sept 07 to drill an offshore natural gas well south of nova scotia. the oil platform alone costs $ 700'000'000.00 and the rest of the money is needed to pay for the drilling cost and the connection to a collection system. compared to that cost, how can ed stelmach nor any other honest conservative believe, that the 10 million cost to |
