| Random Nbr |
Released Comment |
| RRE5000 |
I work in the oil oil & gas sector but I am very knowledgable about royalties and I found the Hunter report to be flawed. It did not consider 3 things: 1. Maturity of the basin (ie. the pool sizes are declining and increasingly difficult to explore for), 2. Cost structure of the industry (Producers are using the most sophisticated technology in the world to explore for oil & gas and it costs money), 3. Failure to consider land bonuses (ie. [Information Removed]knows full well that the exploration permits in many of the other basins in the world may have work fees but they are for longer tenure and are much cheaper than the bonuses paid by Alberta producers) I find the politicization of this report by the Media to be tragic. The oil and gas industry (particularly natural gas) is struggling and a significant increase in royalties will do long term damage. Furthermore, a precipitous increase in royalties will increase the cost of capital for producers as will face a risk premium of operating in a perceived "unstable" jurisidiction. In summary, I am against an increase in Alberta royalties. |
| RRE5001 |
you need to do everything the reoport says you should do! Raise royalties 20% no exceptions!!!!! |
| RRE5002 |
The government needs to take a big picture view of the proposed recommendations. Under the current regime many large companies are already poised to cut millions off their budgets and layoff people. This royalty review will make things even worse. Gas prices and costs are making that part of the business uneconomical right now. The analysis used in not a true picture of the economics in Alberta currently. In the end government may get a bigger piece of a smaller pie but the projected $2 billiion in additional revenue will be significantly outweighed by the hit to the economy, especially rural communities that rely on an active oil patch for employee in the businees and outside (car dealerships, hotels, restaurants etc). These recommendations could kill the proverbial golden goose and Premier Stelmack's footnote in history will be to usher in a Liberal government. I urge you to think about the larger picture and not use this issue as an opportunity to prove to the masses you can stand up to big oil! |
| RRE5003 |
I think the oil sands royalty system should change. I think, however, it would be wrong to penalise projects currently operating or underway. The present system was put in place to attract investment - it has been successful - but the no grandfathering option appear to me like the stick after you have held out the carrot. I think you should honour your word to these earlier projects - you can change the big carrot to be half a carrot from now forwards though |
| RRE5004 |
I run a small private independent oil & gas company. We operate most of our wells. Most of our production is shallow (less than 1000 metres deep), sweet gas. I find the current gas crown royalty system very complicated and the crown royalty payments are high when compared to oil (at lower productivities). [Information Removed] |
| RRE5005 |
I fully support the implementation of the committee's recommendations. These resources belong to all, present and future, Albertans. An open, fair market would dictate that our resources be 'sold' at 'fair market value'. If any developers cannot develop a project for their profit, why is that our problem? Successful businesses have a plan!! I do not support or believe the 'Chicken Little' response to this report. Alberta must look out for its future. Businesses will come and go but Alberta must remain. Thank you. |
| RRE5006 |
I don't disagree with the need for a review of the Royalty scheme but do have significant concerns with "over taxing" the Oil Sands Industry due to incorrect or out of date data. I do not support an approach by the government which puts at risk the future growth of this industry and the potential reduction or elimination of jobs that also support the province's budgettary needs. It is unfair to us Albertans who have invested time and money, to see our future put at risk. Finally, my additional concern with the present Royalty system and any future Royalty scheme is that more money needs to find its way back into Fort McMurray for infrastructure and resource needs necessary to support the continued growth. |
| RRE5007 |
i back the govt all the way on this one which to me is a no brainer.oil corps are making record profits never heard of before basically because past govt. gave them a generous rate.let these oil barons move on if they will, the alberta economy is far too inflated and becoming too unmanageable.what an awful public relations spin for rich oil corps to be complaining in public because they are being asked to share the wealth w/ rest of albertans. i think even the new recommendations are too generous for these oil corps. |
| RRE5008 |
I am not adverse to increasing the royalty's BUT the provincial gov't must be accountable as to how these funds are used and not disappear into general revenues. If the prices for these natural products go down then there must be adjustments. Also the gov't and general public must be made aware of the high risk taken by these companies when trying to develope a "MATURE" oil & gas fields. |
| RRE5009 |
I will be very disappointed in the stemach government does not fully accept the reoyalty review report and immediately follow it'e recommendations. Thisreport was written by an unbias yet knowledge group of committed individuals. The government should listen; Albertans have been cheated for too long! [Information Removed] |
| RRE5010 |
Totally agree to collect more royalty money from greedy oil and gas companies. |
| RRE5011 |
I applaud the courage and honesty of the recent report commissioned by the Alberta Government that advocates for higher resource reveues for the people of Alberta. As an Edmonton-born citizen, I want the best for my family and for Alberta society. We have been shortchanged by industry during the tenure of your govenment--I include during your time as Premier as well--and now is an opportunity for you and your gov't) for redress. I hope and prey you have the courage and vision to seek the monies that will indecreate a better legacy for yourself than the previous occupant of your Office. You hear our voices. You know our wishes. Now, please --ACT ! |
| RRE5012 |
Too much attention has been paid to the revenue side of the ledger relating to oilpatch activity and very little to the cost side. Those costs include the social, environmental and infrastructure costs attributed to the overheated economy as a direct result of unbridled oilfield activity. The province should not be intimidated by the oil and gas industry into foregoing the implementation of the recommendations of the review. The recommendations are a win-win for the government. They would slow down the overheated economy such that housing may become more affordable, preserve resources for future generations rather than the rape and pillage currently taking place and finally provide more capital to rebuild the province's overextended infrastructure. |
| RRE5013 |
Good afternoon, While I am not directly employed by an oil and gas exploration company I work with them every day. I encourage you to consider the full effects that these royalty changes could have on Alberta's economy. While the oil price remains high natural gas prices do not, and despite oil sands development, natural gas still plays an important part in out ecomomy. With drilling down significantly we have seen layoffs in service companies. If these royalty changes make Alberta a less desirable investment we will see our business go to B.C., Saskatchewan and the U.S. Layoffs will go beyond the service industry and beyond the oil and gas industry. Recently many Albertans have had the opportunity to become prosperous. While this prosperity may originate with a strong oil and gas sector the prosperity passes on, to restaurants, retails stores and many other industries. These people would lose their jobs too. We do have to acknowledge that there has been a negative impact to the boom including high housing costs, however it is not appropriate to counteract these negatives with extreme reaction. Our goal should be sustainable growth and the recommendations of the Royalty review Panel put Alberta in danger of reversing our growth. I was born and raised in Alberta and I believe our prosperity can survive far into the future but the recommendations of this Royalty Review could put this future in jeopardy. I hope you can see the bigger picture here because as the poles indicate many poeple do not. |
| RRE5014 |
Raising the Royalty will cause the price of oil to crash as well put China into a recession, which will put Alberta into a recession because no one will want our oil. Seriously though the Royalty should be raised much higher and be a percentage of the price of oil so we can benefit when the price is high like it is now. Look at the cities being built in Asia and in places like Dubai, we are falling so far behind on our infastructure and we're giving billions away? |
| RRE5015 |
Make sure that whatever is done is fair. The status quo is not unacceptable, especially in the Oil Sands plants that are in full production, but do not go overboard to make up for past lost revenue. We do not need a made in Alberta equivalent to the NEP. |
| RRE5016 |
[Information Removed] announced it would reduce expenditure by 1 billion if royaltys are increased. Good, this province needs to slow down a bit, I cannot find people and they are for the most part overpaid. Oil companies are crying about royalties as they rake in record profits. Get what is fair for the people of Alberta. If they want to shut down the patch fine, the oil is not going anywhere and demand is not going to wain anytime soon. And remember 20% is only a recmmendation, 30% sounds good to me. Keep up the good work. |
| RRE5017 |
The royalty review pannel was assembled to review, study the royalty issues for Albertans. Why would we not Implement its recomendations? If the review had favored the Big Oil there would not be any question as to its implementation. If the Conservative Government has not got the back bone to do what is right for Albertans maybe it is time to think of changing the government. I am appauled at the idea that the the government is going to allow the bitumum to leave the county and be refined in the U.S. This undermines our return on our royalty and is a loss of many high paying jobs. My family has been in canada for many generations, we have worked hard and been loyal Canadians and Albertans. We do not want to be exploted by Big Oil and the politics that the ALberta Conservative government has played for years by catering to the oil industries every whim and threat. There will be an election in the near future and if the Conservative Government wish to stay another term, they best implement the review pannels recomendations and stand up for Alertains interests. |
| RRE5018 |
We support the full implementation of all recommendations made by the Royalty Review Panel in their final report. [Information Removed] Edmonton, Ab |
| RRE5019 |
I remain very concerned that this review and it's implementation will cause a major downsizing of oilfields exploration/expansion, and lead to another crisis in Alberta. I also believe that it is wrong to renege on contracts and promises given to companies. Can you prove to me why grandfathering be such a bad thing? Can this not be done in increments? How can you compare our O&G industry to that of S American companies who are clearly not democratically operated? California and other US companies do not have to deal with winter and many other challenges of working so far north. The comparison fails on logic. Please be very careful you do not precipitate another catastrophic fincial situation in our province. |
| RRE5020 |
We have been giving our energy resources away under the past administration and it appears that the same is going to happen under the present regime! We have FINALLY got a panel that acknowledges that we have been ripped off on our royalties and I strongly support the panel. Even with their recommendations, we are still getting less than other oil producing nations. I wonder how Norway built up a $300 billion nest egg and we have about $16 billion. If these proposed rates are so atrocious, why are companies still buying into the oilsands? I have even heard the rumour that Norway may want to buy in as they will make more money here under even the proposed rates than they do at home! I also think the 1% rate, with NO cap, allows companies to spend & spend as they will recoup their expenses anyways, reducing our take. There is NO incentive for companies to be control their expenses under this system. If the government accepts less than what the review panel recommends, it will be a sad day for Albertans and probably a sadder day for the government. I hope the Premier adopts this report. Thanks. [Information Removed] |
| RRE5021 |
Premier Ed Stelmach,.. I believe Sir, you still have competion for your position from within.....Please don't try to fix a document (or an engine) that will cost more than its usefulness. Buy new, start over, rebuild. The 2 Billion has been lost. In addition to a new review assure us that any Money is being properly spent now,, by the province... In every case, a business or an individual will invest $$ better than any government.. Thanks [Information Removed] |
| RRE5022 |
As an Albertan since 1968 I would request the govenrment take a responsible, reasoned approach in changing oil and gas royalties. We have prospered over the last 5 years as a direct result of the royalties, land sale bonuses and spinoffs from the oil and gas industry. In 2007, as evidenced by the governments take from gas royalties (from low gas prices and the soaring Canadian Dollar) the industry is not in as good a shape. We all need to make informed decisions on the future of this province and the engine that has driven our prosperity. [Information Removed] |
| RRE5023 |
You know it is hard to beleive that Alberta would let all of these job's people are going to lose go by the wayside.I have been in the Alberta oilpatch for 18 or so years and rely on it for my living. I realize that Alberta should get more money in royalties but it should not be at the expense of it's people.Please think long and hard about this, many jobs are in your hands Mr Premier. Don't let us down I can not afford to support 2 kid's and a wife working for McDonalds. |
| RRE5024 |
We do agree we albertans should receive a larger share of royalties for our own natural resources...however we do think the % amount as talked about in the report is higher than needed. 5-10 % increase would be acceptable for myself and my circle of friends-family. |
| RRE5025 |
My name is [Information Removed]and I am currently a student at the University of Alberta. I have been following the recent developments with regards to the Royalty Review panel and feel that it is my obligation as a native Albertan to protest the proposed changes. 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. |
| RRE5026 |
Time to do the right thing Ed! Get us our money back - Maybe a Class Action suit is the way that Albertans need to go. If you have not been collecting the correct amount of royalties then we, as Albertans are getting cheated and are losing money because of it - How does one legally collect a debt - a lawsuit. Stay Tuned - If these recommendations are not implemented and the money ls'nt clawed back from Big Oil then it will be taken from the government coffers to be given to the people ( the victims ) |
| RRE5027 |
I do not think that the Committee took into consideration the consequences of their report before sending it to the Alberta Government for review. 1. Royalty increase will be closer to 50% increase would be getting around $5-7 Million instead of the reported $1-2 Million. 2. All royalties are to be paid upfront and most projects will not make money for the Company until 5th or 6th year. This is very uneconomical so the Project will not be done and most money for projects will be filtered out of the Country not just province. 3. With the decrease in new production, Service providers will suffer the most with huge layoffs. 4. Once the Provincial Government decides on how much they are going to take, Federal Government will come in and ask for their slice of the money and probably match the increase of the Provincial Government which will reduce the amount of projects even more. This will increase layoffs, and not just with service providers but also Oil & Gas Companies and will them filter into all areas. If a person can’t afford a home or food then they can’t afford to go out for supper or a movie. I think that the Provincial Government should take a very hard look at these increases and take all of the above into consideration before making a decision on one report that could potentially lead to a Depression like the States are heading for now. |
| RRE5028 |
What are you thinking......... Alberta has an economy that is unparelled to most anywhere of North America, why make drastic changes to ruin that. The tax losses (from property values going down, layoffs, loss of investment, etc) would balance out any extra revenues the gov't would gain. We essentially have a one time go at this or we can have a similar label to the Venezuelan gov't. If you feel you have to increase royalties only do it by a small amount, but NOT by 20%. Why not increase it by 3-5%, a number that wouldn't cause Albertans to lose their jobs. Investment dollars will go elsewhere and so will your votes if you do anything close to the "recommendations". [Information Removed] |
| RRE5029 |
Good Day! I am really concerned that this will end the great thing that we have going here in Alberta. I have read both sides and I honestly feel that this will be horrible to everyone from the top executives to people who sales homes and cars. I am afraid that those who have supported this issue do not realize what it truly means to them, their families and communities. I am sure that everyone would like more, but at what expense? The expense of your three adjacent neighbors and friends losing their jobs and livelihood! If that is the case, this province may not be the best place to reside after all. Homelessness may become a far greater problem than it currently is if this goes through. I beg you to please reject the study. I feel that both sides can win. A small adjustment can be sustained without the whole of this great province feeling the wrath! Thank you for your time. [Information Removed] |
| RRE5030 |
Please be very careful in imposing tax grabs reminiscent of the NEP. I lived through that and saw our economy devastated. This could easily have the opposite result if it limits energy sector growth and actual provincial revenues could easily decrease. |
| RRE5031 |
Accept all the recommendations! Make a positive decision for our future. [Information Removed] |
| RRE5032 |
It appears from the tone of the report that the panel is convinced that Alberta is not getting it's fair share of royalty's. At what point did the panel concider current revenues from royalties in the most prosperious economy in North America inadequate? Alberta oil and gas industry has always been different from other parts of the world. Our convenrtional heavy oil and oil sands production is more robust and dynamic in terms of technology required along with specialized services that support the production of it. This heavy oil product is unique and not replecated anywhere else in the world. It cannot be equaly compared! Natural gas production is getting harder to find. The new gas finds are deeper and more costly to explore for. The shallow gas is available but it is on the decline. Gas prices are $5.00/gj (aeco) and you will note the decline in drilling activity in the end of 2006 is directly related to an inadequate rate of return on investment. High storage ( due to lack of demand) and NGL markets are keeping prices soft for the forseeable future. This province has been fortunate in that revenues from royaties have allowed us to be debt free while population growth inclines as people from other provinces want to share in the wealth that other parts of this country wish they had the ability to prosper from. The cost models used by the panel did not concider todays environment in which costs have escalated and decreased revenues on natural gas have been evident since mid 2006. The NDP and the Liberals both say to go ahead and impliment the changes as provided by the panel as other companies will step in and replace those Alberta companies that inject their capital elsewhere in the world. Where will those other companies come from.... other parts of the world? It will not happen as there is no silver lining to this panels report. It wll change the economy in this province and we as Albertans will be standing around wondering why our revenues have fallen off so bad. The panels information needs to be reviewed by those that understand the robust nature of our oil and gas production and the cyclical nature of the products we sell. Using information that is not representative of the true cost environment is not Alberta's way......we need to make sure we maximize the potenial of our non-renewable resources as again no country in the world has the same heavy oil production that we do and no where else in the world is natural gas production getting this costly to produce. Lets take the time to do it right here and strike a balance. The panels report is bias and precludes a change is required. They should have been tasked with seeking the facts and pointing out opportunities that identify further discusion and debate for the people of this province to concider. I urge the government to do the right thing and seek more input and debate while at the same time educate those that are only listening to the false hoods of more revenues. There will not be more revenues for us as Albertans if the simple economics won't allow the investment. Oil and gas production in Alberta is not a sure thing....it's robust and requires the right economics to make it happen. It is our repsonsibilty as Albertans to review this panels findings. Lets look at the right cost and take the time to review the data rather than rush out to equal ourselves to some other country that operates in un-equal environments. |
| RRE5033 |
I just wonder how greedy Albertans have to be. If in fact many of our royalty dollars are going into a trust fund for "a rainy day" why do we need to be collecting more. We are seen as a "land of plenty" and really should consider carefully just how far or how much more we really need. |
| RRE5034 |
I fully support the recomentadtions by the Royalty Review Panel. The time has come to seriously adjust such and ensure that we are good stewards of this resource that ultimately belong to the people of Alberta - NOT oil multinationals. Fair is fair. |
| RRE5035 |
I feel this would be a mistake to up the royalties. Alberta will not be any better off. We will end up losing more money . It will be a ripple effect and there will be job losses not only in oil and gas but construction, hotels etc. We will not have any more money to spend on Health Care, Schooling etc. The oil companies spend hundreds of millions of dollars on royalties and other taxes that the public is unaware of. The employees for the oil companies pay huge amounts in taxes that will be lost because they won't have a job. Will the government bail these small business owners out of financial trouble like they do for the farmer's yearly. Highly unlikely. It is frustrating as a spouse of an oilfield worker to here the disrespect we get from the government and general public. These people complain about low royalties, but they don't have to listen to their kids cry at night wondering when daddy is coming home because he has been away for over 30 days. They haven't had to have Christmas a week later. They haven't had to miss their children growing up. Whose pockets are we lining if we up the royalties it won't be the public it will be the politicians. WHERE WILL ALBERTA BE IF WE RAISE THE ROYALTIES WE WILL BE IN THE HOLE STRUGGLING FOR YEARS TO GET OUT. WHY RUIN WHAT IS ALREADY WORKING. HOW DO YOU THINK ALBERTA GOT OUT OF THE HOLE.! From a frustrated spouse of an oilfield worker. |
| RRE5036 |
Dear Mel Knight, thank you for reviewing the oil and gas royalty formula. All the research I have read indicates that Alberta has long been underpaid for its oil and gas resources. The conservative govt of Alberta has to look at the public good in these matters and it seems in the past there was much more concern with industry profits. I am aware that it is difficult and dangerous as a politician to anger powerful industries such as the oil and gas industry. It is easier to give them what they want and reap the financial and press rewards that they will provide. However, this step on your behalf demonstrates a great deal of integrity and I applaud you on this. You can expect my support in the coming election if you follow the recommendations to increse royalties to the level stated in the report. Thanks for your ear, [Information Removed] |
| RRE5037 |
As an employee and former owner of a medium sized construction (80 employees) company in the [Information Removed]area, I am very aware of how the royalty increase scare has affected this company already. There has been cutbacks which translates into job losses, therefore losses to taxes, buying power of the consumer and the list goes on. I can not believe that the reports of cutbacks that the oil companies are predicting will not happen because it is already. Get something done about this problem before they do pull out. I do not believe that Alberta needs to give them everything they want but come up with a compromise! [Information Removed] |
| RRE5038 |
I dissagree 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 with these companies and others already on record of decreasing investment by another $2 billion in 2008 from this already reduced level. This all at a time 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. 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 occuring 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] Calgary [Information Removed] |
| RRE5039 |
The oil industry has a long history of providing jobs to the prople of Alberta. They have taken the risks associated with new development and exploration. This province has grown very strong with the government and industry working together to provide for a strong, stable economy in this province. I believe it is small minority of people who are complaining they are not receiving their "share" of resources. The government's obligation is to protect Alberta's resources while continuing to work with industry to provide an environment that will provide strong investment which will bring jobs, opportunities, and growth to many sectors of this province. My advice to the government is not to be bullied by this royalty report and not to shoot themselves in the foot to satisfy a few greedy individuals. |
| RRE5040 |
I would recommend that the Provincial Government be very careful in the way it accepts any of the recommendations from the Royalty Report. It is very easy to label the energy companies as the ones who are making all the profits. If the energy companies were not making any profits, there would not be any investment in the Province of Alberta. With no investment, there would be no new jobs and economic growth. Lets not take an active measure to kill the goose that laid the golden egg. At some point, the camel's back will break and it usually takes 15-20 years for the energy industry to get warmed up again to get the investment going. Lets not forget the lessons we learnt in the early eighties. |
| RRE5041 |
I am appalled that the Gov't we had (past tense) trusted let us get ripped off of our resource revenue. Now [Information Removed] and the rest of those mobsters are going to leave if don't continue to be raped ? If they don't want to pay market value royalties I say let them go somewhere else (Russia or Vietnam) Albertians must be the laughing stock in ALL the Big Oil Boardrooms and we'll contine to be so if we don't raise royalties. Take a lesson from Newfoundland ! -With the BILLIONS (that's Thousands of millions to the un-educated)LOST already ...is that why our cities' roads are [expletive], and and we have no hospitals, education faciilities & lack of housing for our BOOMing population? Why are my taxes (municipal & provincial) so high if Alberta can afford to let the likes of [Information Removed] and [Information Removed]etc. have our resources for next to nothing? Have these "good corporate citizens" stepped up to build any infrastucture i.e roads, bridges, hospitals etc.??not to my knowedge. The Alberta Conservative Gov't bettter sharpen up or they will NOT govern much longer. [Information Removed], St. Albert |
| RRE5042 |
Dear Premier Stelmach, I strongly support increased royalties. If anything, the review makes recommendations on the low side, and you should accept their reccomendations as a bare minimum . Note the huge profits that these companies are making on our resources, and the fact that in the oil sands they are doing no significant reclamation. Please put some of the increase in a reclamation fund, so our grandchildren don't have to pay it. Landowners in Alberta will support you, we have landsmen at our door every day demanding more access, more seismic, more drilling THe oil companies are clearly orchestrating the recent demonstrations. It smacks of tactics used by big tobacco. [Information Removed] |
| RRE5043 |
Thank you for the opportunity to comment on the Royalty Review report. It is imperative that the Government of Alberta consider the recommendations of groups such as the University of Alberta-based Parkland Institute. In doing so, it is readily apparent that in spite of the negative comments received from the oil and gas industry in respect of the report's conclusions, there is equal concern from members of Alberta's population, including myself, that the report does not go far enough in addressing the gross inadequacy of the current royalty regime, a regime the Premier has himself identified as requiring review. The following from the Parkland Institute summarizes some of my concerns: "The panel's recommendation to increase the base royalty rate from the existing 25 percent to 33 percent is a step in the right direction, but still grossly inadequate. Although this move would increase Alberta's total share (royalties and taxes) of tar sands revenues by some 40 percent, it would still leave the province firmly entrenched in the bottom half of jurisdictions around the world in terms of rent collection. With countries like Norway and Venezuela obtaining 78 percent and 90 percent respectively, Alberta is far from being a leader in this regard. And contrary to industry threats of late, these countries are experiencing no shortage of oil companies wanting to invest in their resources. Likewise, the panel's report does very little in the area of incremental royalties and taxes. Even with full implementation of its recommendations, it projects a decline in government revenue from oil and gas of almost $4 billion dollars from 2006 to 2016: this despite increased production, increased demand, and increased prices." It is important for the Government of Alberta has been repeatedly urged to consider the rapid rate of the tar sands industry in Northern Alberta and its impact on all Albertans. Should this report's recommendations be implemented, the rate of tar sands development may indeed be reduced. This is not, in spite of the corporate concerns expressed to date, necessarily a "bad" thing. Indeed, a moderate, intelligent and controlled rate of resource development is in the best interest of all Albertans. Thank you for considering the opinions of all Albertans. The royalty report is a step in the right direction. Please do what is right for the people of Alberta. Thankyou [Information Removed] |
| RRE5044 |
Hopefully the royalty review will not be watered down. The oil companys are acting as anticipated. We strongly support the PC party in Alberta . . . but the party's future rests on not letting big oil bully the province. A slowing down of the oil sands projects would be welcome by most Albertans who are not involved in the oil patch. |
| RRE5045 |
The review panel was hand-picked by the Government - there is unbiased reporting! The panel stated that the Goverhment's own system for collecting royalties was out-dateed - get this fixed instead of trying to take the easy way and just collect more money. As a tax payer I am tired of the Government coming and grabbing more money - just because they want more. Take a look at your own inefficiencies - every other business has to be accountable. |
| RRE5046 |
Thank you for the opportunity to provide feedback on this important issue. I cannot appreciate the difficult position that the elected officials of this province have now found themselves in. The pressure associated with making simple financial decisions for oneself can be quite daunting at times. I can only imagine the stress associated with making a monumental economic decision that could affect miilions of citizens. However, I do ask that the members of the legislative assembly of Alberta steel themselves as they enter into their most serious deliberations concerning the issue of resource royalties. As the child of a former oil industry worker, I must say that I deeply appreciate the openness of the Alberta Government and the willingness of the petroleum industry to facilitate employment and resource development to the benefit of many. The economic benefits of this sector cannot, and should not, be underestimated. Yet, these same economic benefits appear to have been curtailed by a royalty system that has not changed with the times. Other jurisdictions in the world have far more lucrative royalty strategies, which have injected much needed capital into the public coffers, and have not negatively impacted exploration and development. The current comments made by representatives of the petroleum industry (and some MLAs) comparing any suggestion of royalty increases to the conditions in Venezuela are disingenuous and inflamatory. At any moment, I do expect the ugly spectre of the National Energy Program to raise its loathsome head through various media and editorial. I am asking that the elected officials of this province keep their heads above such rhetoric and embrace the facts as presented. I would encourage the members of the legislative assembly of the province of Alberta to increase resource royalties to reflect the current development situation. The global need for oil is tremendous and every estimation predicts that this situation will not change anytime soon. With the desperate need of urban municipalities for infrastructure funding, provincial school boards for education funding, and health regions for care funding, the provincial cabinet members would demonstrate great wisdom and forethought in increasing royalty rates as per the Royalty Review Panel report. Once again, thank you for this opportunity to participate in this process. [Information Removed] |
| RRE5047 |
I believe that the Oil Companies are already paying enough Royalties. In order for the Oil Companies to pay higher Royalties the price that we as a consumer will go up as the cost has to come from somewhere. As we have learned so many times in the past, this price hike will hit the consumers. If the Government was struggling to meet the needs of the Province as so many are today I might have a different view however, we truly are not. I do know myself as a sole provider for a family of 5 I can no longer bear any more prices raised to heat my home or to run a car. It is really unfortunate that almost every industry has the same view of Alberta and that is that the people have money to burn because we all are working for Huge Oil Company and are making crazy money. I personally can hardly feed my children as it is and sadly I do bring home a better wage than some. I think that this Government should be a responsible Government and not one by greed |
| RRE5048 |
I am concerned about this royalty review report. Yes, I understand that changes to the existing royalty program are needed but they need to be well thought before it is done. From my perspective if the review panel's recommendations are adopted then we will end up worse off than we are now. The oilpatch activity will decrease dramatically and any short-term gain in royalties will be more than offset by the longer term consequences. I can still remember the fallout from the National Energy Program and certainly don't want to see anything like that happening here again. Increasing taxes, in any form, does not always mean higher revenues. If oil companies cut back their activity and they will then less people are working and chances are the companies will be paying less taxes. If less people are working less taxes are being paid. If less people are working we will probably see a dramatic rise in bankruptcies, a sharp drop in property values, and a lot of angry, hard-working taxpayers. Let's not get greedy and hurt the people you serving. Let's be reasonable about any royalty increases and pay attention to what the industry is saying. After all, they're the ones taking the risks with their capital investments and they're the ones that hire the rest of us in one way or another. If investors pull their money we suffer. Please think this over very carefully. If you're going to make a mistake please err on the side of caution. Because if you make a mistake on the side a lot of people are going to be hurt. |
| RRE5049 |
Please go ahead with the reports recommendations. Why should oil companies get an extra share of Albertans resources.? |
| RRE5050 |
I strongly support the recommendations of the Royalty Review Report. As a life-long Albertan I expect my government to do what is in the best interest of its citizens. I am disturbed by the rhetoric of the oil and gas industry who choose not to mention the reduction in royalty rates for many parts of their industry, and the recognition that increased royalties will not kick in until all operating costs are recovered. What I am seeing is unmitigated greed and scaremongering. When an industry makes a $6B surplus in a year (a record) for their shareholders then they should be ashamed of themselves. We all know that as soon as the resources are gone so will they be and we will be left with a huge environmental mess to clean up and no further $ coming in to deal with it. |
| RRE5051 |
Given the current ecomonic downturn in the oil and gas industry in Alberta, I believe that full scale royalty review is not a wise decision. Cost of drilling and producing in Alberta is high compared to other parts of the world, even compared to the US, and adding an additional cost to the pot will only discourage more drilling. Given the recent rise in the Canadian dollar, Canadian producers are seeing a drop of significant measure in their realized revenue - oil prices remain high, yes, but we all used to be able to count on cheap cost of sales (in Canadian funds) and boosted revenue (based on conversion from US dollars to Canadian dollars). This is not the case now, and producers are being hit hard as are many other Canadian businesses. If drilling rig activity continues to stay soft, or falls lower than current levels, we will go from a prosperous, buoyant outlook in Alberta to a major recession. Many of our competitors pulled out 40% or more of their fleets - something I would not normally complain about. This abandonment of the Canadian oil and gas market to a more favorable market in the US is one that local producers may follow as well. If the Conocos,Talismans, etc of our market decide that they can also operate more profitably in the US, this will have a tremendous negative impact on our Province. If the wells are not being drilled, the royalties are not being paid. Finally, if oil and gas producers ease up on their spending in Alberta, the trickle down effect on our economy will not go unnoticed. In the same manner that the oil sands and the corresponding boom in activity in the oil sector has fueled the feverish growth of recent years in Alberta, this growth can and will come to a very abrupt halt if producers choose not to drill in Alberta. Jobs will be lost, attraction of workers from other provinces, or other countries will be reversed, and businesses from grocery stores to car dealerships will be impacted. Do not loose focus on the fact that the oil industry is very much the foundation on which Alberta's economy is built. If the strategy of the current government is to maintain a positive future for Albertans, then the strategy should not be one that cripples the major industry that provides us all with income. |
| RRE5052 |
This is a bad time to increase royalties due to the conditions that are already affecting investment as well as budgets. We have the highest lifting costs in the world before the high dollar and high storage. I believe the oil companies should pay their share, but we should implement this gradually and fairly so that we can continue working. Mass lay-offs are on all oilfield service agendas if conditions do not improve. |
| RRE5053 |
As representatives of the people by the people don't you feel that this should be voted on by the people. This will effect each and every Albertans future. Thanks [Information Removed] |
| RRE5054 |
I work in the oil industry, and we need to follow through with the full recommendations on royalties. The only thing we need to ask ourselves is what is the worst that can happen? If "Big Oil" is not bluffing (and I think they are) then we still own the resources and can save the prosperity for our children! |
| RRE5055 |
Please take the time and effort necessary in order to weigh all of the factors and consider all of the stakeholders in the decision to act on the Alberta Royalty Review Report Recommendations. This decison need not be made in haste, or for political reasons. Rather, the correct decision must be made based on sound economic and financial research and analysis. Thank you for taking the time to do the right thing, and make the best possible decision for as many Albertans as possible. |
| RRE5056 |
I FEEL THE PANEL SHOULD REAVALUATE THEIR DECISSION OVER THE ROYALTY REVIEW AND WORK WITH THE OIL INDUSTRY TO RESOLVE THIS ISSUE. AS WE FEEL THE INFORMATION THE PANEL HAS IS WRONG. MORE ACCURATE INFO IS NEEDED BEFORE A FAIR DECISSION IS MADE. IF EVERYTHING WAS TO GO THROUGH, YOUR NOT JUST EFFECTING ALBERTA, BUT THE REST OF CANADA. THEIR ARE ALOT OF EMPLOYEES IN THE OIL INDUSTRY THAT COME FROM OTHER PROVINCES TO SEEK WORK. YOU THINK THE UNEMPLOYMENT RATE IS HIGH, IT WILL SKY ROCKET. PLEASE REVIEW THE PANEL REVIEW BEFORE HURT TOO MANY INNOCENT FAMILIES. [Information Removed], |
| RRE5057 |
The idea of increasing taxes when a government is running record surpluses boggles the mind, both as a political and economic decision. The concept of taxing job creators under the guise of giving back to Albertans is laughable. If the money was coming back to ALL Albertans in a meaningful way (i.e. significant provincial income tax reduction) or if the tax was matched with a subsequent reduction in corporate taxes, then one could see the A-B connect. However, this latest concept is so obviously an attempt at wealth redistribution- a misidrected and wholly socialist concept. To take investment dollars from job creators and direct those resources to feed government's pet projects is to erode the incentive that drives this economy. Politically, your government is turning what was a healthy ideological debate into a pocket book issue for Albertans. The result is not a fight that can be won. But perhaps this is the intent. This whole notion reeks of the bureaucracy, of the animals running the farm. His Liberal tendencies notwithstanding, Minister Oberg and his learned men might take a lesson from the Ontario experience. If a population feels destined to be governed by Liberals, it will elect those confident enough to declare themselves as such, rather than stomach the dishonesty of those in Conservative clothes. |
| RRE5058 |
I believe that the people of Alberta deserve more from the Oil Companies. This is the last significant deposit on earth, and they will develop it regardless of royalties - Alberta is still a much cheaper and friendly place to do business than the other oil producing nations ... |
| RRE5059 |
I write this note to voice my displeasure with the recent recommondations coming from the Royalty Review Panel.As an employee of an oil and Gas company I know first hand these impact changes will not only have on our Industry in Alberta,but our economy as a whole.I look to the Premier to bring some reality to this proposal- before they send Alberta into a irreversable economic tailspin. |
| RRE5060 |
Stand tall- Do not let these multi national corporations push us around. Do what is right for Albertans. |
| RRE5061 |
Hello. I work in the energy indudtry,mainly in Alberta, and have for many years. It is a great industry in a great province. I think it has come a long way in the last 30 years and then some, takeing a lot of Albertans a long way in witch many of us are very thankful for, and i like to add, "very proud" of. The Technologey is a vast and very real part of our lives, and every one involved directly, and indirectly is and will be affected by all of the industry's future. I do believe that royalties are impotant to all Albertans. I also think that they shoul be reviewed from time to time,but I also hope we don't get, shall we say too aggresive on the Industry, as to slow it from continuing to progress, thus helping Alberta, and every one in Alberta. Thank you, [Information Removed] |
| RRE5062 |
The royalty review (and proposed increase) is long overdue. I am definitely in favor of increasing the amount oil companies pay in royalties. It seems to me that development is the province is already overheated and an increase in royalties will help by slowing some new development. At the very worst, Albertans would getting a better return on the loss of a non-renewable resource. |
| RRE5063 |
Leave the current system alone or destroy the Alberta Economy. What is there to decide on. Perhaps Ed's leadership is the only thing needing review. Through this process he is clearly showing that he is way over his head in the understanding business and economic matters. He's playing dangerous politics with the Alberta economy and I am not impressed. How do I know? I am a geoligist fully aware of the economics of my projects and of oil and gas in general. I can tell you that the Oil and Gas companies are not bluffing. My job and others are at stake with this decision including my son's future who is a 3rd year engineering student wanting to work in the "patch". There is the right thing to do or a reckless popular thing to do . The outcome is certain by playing into the hands of the uniformed popular vote. The economy will instantaneously go in the tank. Thousands and thousands of jobs will be lost. Do the right thing for Albertans. Keep the economy strong. Leave the current royalty system alone. |
| RRE5064 |
It seems this increase in Royalties will affect negatively the economy in Alberta, less jobs, less investments, maybe a crisis. I ask from my Government to do another analysis and communicate more with the oil companies because Alberta citizens do not want to be unemployed or move to another province. Thank you very much to give us an opportunity to express our thoughts. PS Please do not take Encana's letter as a threat. They are just kepping us informed. |
| RRE5065 |
I am writing you to stress my concerns with the 'Our Fair Share' royalty review report recently submitted to the Alberta Government. The recommendations in this report, if adopted, have the potential to put the entire Albertan economy at risk. Although the intentions of the report and evaluation of the current Royalty system can only be viewed as a positive initiative, it needs to be recognized that the stakes are extremely high. The Albertan O&G industry has not only become the 'Golden Goose' of the Albertan economy but it is also driving the current success of the Canadian economy. The main concerns I have with the 'Our Fair Share' report are as follows: Inaccurate Capital Cost Assumptions = Misguided Recommendations - The Panel's base capital cost assumptions used to develop their recommendations are significantly understated (by a factor of 2). The credibility and analysis of the report recommendations requires significant review. - By substantially increasing the Royalities on the oil sands, there is significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The high cost environment has already made these projects marginally, this Panel's recommendations would be a finishing blow. - The Panel's statement that 82% of natural gas wells will pay lower royalties is based on the assumption of continuing low natural gas prices. In fact, if evaluating with the current one year natural gas price, all wells will pay higher royalties (including the marginal wells). Considering that the majority of new wells throughout Alberta are considered 'marginal', many wells across the province will immediately become uneconomic. Alberta becomes an unstable investment environment - Changing the 'rules of the game' mid-way through the completion of existing approved megaprojects is akin to the mode of government interaction with business in more unstable region of world, such as Russia, Venezuela, and Kazakhstan. Investors and foreign directed investment (FDI) money will start to look elsewhere if Alberta starts to be classified as an unstable investment environment. Once investor money starts to flow away from Alberta it will not be easy to bring it back. The long period of time required to recover from the National Oil Program in the 1980's should serve as an example. Changing Definitions will leave Primary Production in the oil sands areas uneconomic - Eliminating the primary production in the oil sands area from the Oil Sands Royalty program will dramatically change the economics of continuing this form of production in many areas across Northern Alberta (such as Bonnyville, Elk Point, Cold Lake, Lloydminister and Slave Lake/Wabasca). The cost of developing Alberta's resources is already high relative to other O&G producing regions of the world. The 'technically challenging' nature of Albertan resource development is indeed costly but it is also a great generator of employment. The reduced activity that would result if the 'Our Fair Share' report recommendations are adopted would lead to significant unemployment and reduced economic activity. Please ensure that the capital cost assumptions which creates the basis for this report are scrutinized and vetted with the Oil and Gas industry prior to considering the Panel's recommendations. Accurate cost assumptions are critical to developing appropriate models to evaluate future impacts and ensure no unintended consequences. Yours truly, [Information Removed] |
| RRE5066 |
I believe the Government should listen to the Oil Companies. The panels review has flaws., i do not believe the panels full recommendation is what is best for Albertan's. The oil companies are telling you what is going to happen...i do not believe these are just idle threats. Thousands of unemployed, could be detremental to all Albertans, our economy and infrastructure. I do believe that Albertan's are entitled to there fair share, without devestating the economy. "Don't bite the hand that feeds you" |
| RRE5067 |
Premier Stelmach, When considering the panels report it is important to remember that even though these big oil companies are posting multi-billion dollar profits, the majority of those profits are coming from their operations elswhere in the world - NOT ALBERTA. The majority of wells drilled in Alberta have very thin profit margins unlike other places around the world. The costs for driling, completing and bringing on production a typical shallow gas well in Alberta are 79% HIGHER than the same type of well in Texas. If anything, the government should consider lowering royalties in select areas to encourage more investment in the province and it's people. The other thing that isn't mentioned when a company like Exxon posts profits of $10 billion is the $100 billion (example only) it had to invest to get that. There may be a few select area's where royalties could be marginally raised but if the report from the royalty review panel is implemented, Albertans will be getting their FAIR SHARE of NOTHING (or close to it)! It's not about threats. It's basic economics! If I get a zero or less than favorable rate of return on an investment, I'm simply going to invest elswhere. I realize they are a bit random but I hope these considerations will be taken to heart. The average Albertan is only getting the perspective from the bottom up and aren't seeing the other perspective from the top down (so to speak). It would be a mistake to base such an important descision on the opinion of an misinformed populace. The media has done a great job of spin doctoring this whole event into a battle between the "big bad oil companies" and Premier Stelmach when it has nothing to do with that. Guaranteed, the people writing these reports and skewed stories aren't going to be the ones out of a job at the end of the month with families to support. The oil companies are not a cash cow to be milked for every last drop. If you insist on taking that approach, one of these mornings you'll wake up to discover the cow ran away to greener pastures and you'll be left holding an empty bucket. Please examine all the up-to-date data and make the right choice for Albertans. The majority don't realize how far reaching the ramifications of this decision will be... Sincerely, Concerned Citizen |
| RRE5068 |
The oil in Alberta belongs to the people not the oil companies. it is the job of the government to make sure we get all the royalties to which we are entitled so the first thing the government should do is get the royalties which we have not collected for the past three years. We should then follow all the suggestions of the royalty review panel which seem to me to still give the oil companies a real sweetheart deal. Does it still make sense not to collect anything until start up costs have been recovered. This was a great move on the government's part to get htings rolling but now that everyone wants a piece of the action it should really be reviewed yet the panel did not touch it. Alberta is the safest place in the world for oil companies to work. Don't give in to their belly- aching. The oil will not go away and if we slow down development a bit we may actually leave something for our children and grandchildren. Than You, Yours sincerely, [Information Removed] |
| RRE5069 |
Hello, I would just like to ask the government to remember that it is not only the oil companies that will be hurt by higher royalties. When drilling slows down, its not the CEOs that pay the price, its the working guys like us here in Edmonton where I live and rural alberta who are first to go. When I'm trying to feed my family and pay the bills, I know that more money from employer's to the government won't help. So I'd ask you all to look past the bluster and realize that taking money away from the economy is going to hurt me and lots of other average voters. Respectfully, [Information Removed] |
| RRE5070 |
The 20% increase royalty recommended by the review panel should be implemented. Your newly elected PC party encountered the same situation in the early 70s. Premier Lougheed had the vision and the strength our current Premier, Ed Stelmach, should have. No dithering! No kowtowing! The oil industry is nowhere in the world better than in Alberta. |
| RRE5071 |
All I hope is that this Government will take the time to review thier report and ensure they understand fully before decieding Albertas future ( re. news releases from Company's involved).Everytime Alberta's economy starts up government shots it in the foot. Stop and think before you act it could be you children that carry the burden of you deciesions. |
| RRE5072 |
I think that the 1% royalty rate until payout on oil sands should be increased to 3 or 4% to make more money until these things payout, but don't touch royalties for conventional production. That will impact a lot of people's livelihood who depend on conventional production (services, construction etc) and the natural gas drilling industry is really hurting right now. I have seen guys get laid off, if you increase natural gas royalties more guys are going to get let go. |
| RRE5073 |
Hello, I would like to express my thoughts about the Alberta Royalty commission’s recommendations. I say no to a large Percent Royalty increase. Drastic changes create drastic results. It is good that a review of the Royalty Structure has been done, it was long overdue. But I think that implementing extreme changes in that structure, may work for the moment it is initiated, but almost immediately its impact will be felt, marginal wells will not be kept running, new projects will be shelved and new investment money will definitely slow down, due to a loss of trust. Government revenues from other sources will be reduced. I believe we should take small steps, manageable changes that if done under the guidance of a plan and reviewed periodically over the period of a generation or two will give fair monetary return on our non renewable resources to the people of Alberta, but not drastically alter the playing field that may have negative consequences for year to come. Quoting from a CBC News article of September 23 2007: “The opposition Alberta Liberals say this “lack of government accountability” has allowed $8.6 billion to slip through provincial hands over the last 15 years.” I say that the previous Alberta Government inherited a Provincial debt that looked horrendous when they took office. They promised to tame that debt. I was impressed with their ability to stick to the promises they made. The Oil Industry was underachieving at this time and Previous Governments put money into the development of the oil sands and an Upgrader. (Lloydminster) Then Royalty concessions were made to support development and allow capital cost recovery. When the price of oil started to climb they believed that it was only temporary and that prices would of course fall back the next year. They kept forecasting lower oil prices with every budget released. The price never fell and this resulted in our debt being eliminated far sooner than ever anticipated. A surplus of money went into the Heritage Fund. I feel we went from debt to surplus so fast they were unable to believe it could continue to happen for as many years as it did. Oil prices are now high but the costs associated with extracting the oil are catching up and effectively eating into this profit. Wages and costs are high; you increase the royalties and then if the price of oil drops there are no profits left. We will not be able to say “sorry, we won’t do that again”. Please go slow and initiate a system that will review the Royalty Structure on a regular basis. Sincerely, [Information Removed] |
| RRE5074 |
I aam a grade 9 student and I am concerned about my future. I think you should accept the roalty reveiw so you can use the extra money to help the province. You could use the money to help schools, healthcare, build roads and the poeple of Alberta. The province wil eventually run out of oil and then we won't be getting any money at all. Thank you for this oppertunity to share my point of view. |
| RRE5075 |
I believe that the recently released royalty review recommedations represent bad policy that will ultimately result in economic decline in our province. I also believe it represents regressive thinking that probably should have been left in the Trudeua era. Oil and gas is an economic generator of profit in Alberta and ultimately the economics of small oil and gas plays will be reduced by taking 10% more out of the industry. Already the royaties are high resulting in many good oil and gas plays being left behind because they are uneconomic due to recent increases in costs. More Albertans are employed than ever in direct and indirect jobs supported by the oil and gas industry and we owe it to Albertans to ensure a successful oil and gas industry in Alberta. More royalties are not the answer, I believe this is the opposite response to Alberta fiscal needs. The new policies will over tax larger resources plays leaving less monies for re-investement in smaller ones. Declines in production need to be replaced by these. My advice to the government is, don't go there!! |
| RRE5076 |
The recommendations in the "Our Fair Share" report from the Alberta Royalty Review Panel, if implemented, could have severe negative ramifications for Alberta's economic well-being. Conversely, if some changes are not implemented, many Albertans would argue that it is true that we are not getting our fair share of oil and gas revenues. Unfortunately the report’s economic analysis, for the oil sands sector in particular, is based on flawed inputs. In addition, a number of conclusions in the report are anecdotal, without supporting analysis or data. Furthermore, at least as far as can be determined from the report, the recommendations for the fundamental royalty mechanisms and rates were not tested against other alternatives. Most importantly, the proposed royalty mechanisms don’t recognize the specific characteristics of the oil sands sector. However, the industry shares the blame for errors and shortfalls in the panel’s recommendations in two major areas. Firstly, the data that the panel used for their analysis were based on public domain information. Some of the public domain information is directed by the industry at attracting investment capital and tends to be optimistic, when compared with actual results. Actual results in royalty statements are protected by privacy legislation. This prevents the Alberta Department of Energy from releasing data showing projects' performance to be close to what the [Information Removed] has been indicating in the media. In other words, to some degree, the flawed analysis is of the industry’s own doing - projects' profitability is one story for the purpose of raising money and another for the purpose of a royalty share debate. Secondly, the industry was almost unanimous in its position that the current system should not be changed, and that the proportionate share of projects' cash flows should not increase as profitability and/or oil prices increase. Theoretical economic arguments can be made on the positive and negative economic consequences of increasing proportionate government takes under more profitable scenarios. The political reality, however, is that given very high levels of profitability, the resource owners (Albertans) will require a greater share of the pie. If this were not the case, why would there be the necessity for a royalty review? Because our oil and gas industry was not pragmatic enough to recognize the obvious, it has ended up talking past the government and the panel, rather than with them on achieving a mutually acceptable solution. So where does that leave us now? The Premier has indicated that he will make an announcement in the middle of October. If he fully accepts the panel's recommendation, he will be relying on analysis that used flawed inputs and recommendations from a group of six people who have limited oil and gas industry and fiscal terms experience and have been working on the issue for about half a year. This will ignore multiples more experience available from many times more people in industry and the Department of Energy. The fact that the industry may have brought some of the report’s recommendations on itself is not a good reason for accepting it as is. For such an important issue, hopefully logic will prevail and the real experts will be consulted. An interim announcement from the Premier could address changes in principle, while allowing more time to work on details. To emphasize - the details and magnitude of the panel's recommendations will impair Alberta's economic well-being. Finally, some comments on the conclusions in the report that are so disparaging of the Alberta Department of Energy: There are no data or analysis to support the conclusion that the Department is in a position of conflict in terms of its responsibilities for encouraging resource development and for ensuring that Albertans receive their fair share of resource revenues. This conclusion is purely anecdotal. The Department is diligent, industry would argue, to the point of being unreasonable, in maximizing the royalties they collect and in ensuring that royalty policies enable this. An alternative conclusion to the panel's could be that they were unable to get the support they requested of the Department simply because it is inadequately staffed, rather than because it was caught "flat-footed" (the report's wording). Staffing is a management issue at levels higher in government and not a performance issue for the Department as it exists now. The working levels in the Department and their industry colleagues have long recognized that they are short-staffed. It's not clear why this would by better resolved by the "Superministry" suggested by the panel, than by simply providing the Department of Energy adequate staff. Also, lack of available information, another complaint by the panel is, to a large degree, a legislative issue governed by privacy protection legislation and is out of the control of the Department. It's disappointing that a panel of highly regarded individuals came up with a report that is flawed in so many ways. Packaging and well-written prose can't compensate for lack of depth. More work needs to be done before closing the royalty review file. |
| RRE5077 |
Please do not try to fix something that is not broken. The economy in Alberta is red hot. Please do not let greed influence your descion. If you raise the royalties , you will discourage investment possibly. Trusting you will give this your utmost consideration. Thank-you |
| RRE5078 |
The commission's report should be the MINIMUM accepted royalty. The resources are supposed to belong to the provinces people. |
| RRE5079 |
Every year record profits for energy companies, share the wealth. Please increase royalties to a proper level. Thanks |
| RRE5080 |
I strongly disagree with the conclusions drawn by the Royalty. Under the current royalty structure, Alberta has grown to be the economic powerhouse of Canada and the envy of the free world. Our citizens have a very high standard of living, and our government spends more per capita on its citizens than any other province yet still shows huge surpluses. As a small business owner ( not in the oil and gas patch) I have benefitted greatly from the economic prosperity of Alberta and its citizens. As my business has grown, I have hired more employees, increasing the tax base of the country and the province, and further contributing to the Alberta Advantage. People must realize that although the companies which explore for oil and gas in Alberta do have the potential to make great profits, they take great risks as well. While doing so, they contribute greatly to the wealth of the province and the country by providing jobs to people who then pay huge personal taxes. We must remember that it is the buisness owner who pays the personal taxes of this country, as he must ensure the revenue to pay the employee. The Oil and Gas industry in this province already pays the lions share of all taxes raised here through both the direct taxation of their employees and through taxation on the plethora of jobs they create in service industries to support the O&G company and their employees. If it is not broken, don't fix it. We are a wealthy and entrepeneurial province. Don't break that entrepeneurial spirit by over-taxing the businesses who create the wealth. |
| RRE5081 |
Well I am again sickened by "brilliant government work". I personally have lost 25% of my investment portfolio due to the ridiculous federal government "fix" that was made to "stop tax leakage" on trusts. Now as a proud Albertan we are facing a potential move by this government that will result (regardless of the level of implementation) in less money in hard working Albertan pocket. What a great idea... lets further tax the companies that are paying for this robust economy. Sorry Ed but sending more money to the government coffers will not provide a better lifestyle or income for people who grind it out day to day in oilfield related jobs - that is just bull [Expletive]. Raising royalties will result in less drilling, fewer well work-overs, less corporate interest in this province, lower income, less money spent on equipment and vehicles, lower house prices, lower equity markets and less income tax. Take a look how lowering taxes improves the well fair of places like Ireland... increasing taxes does nothing except crush peoples drive and motivation to do things. That applies to corporations and individuals. If this goes through I will be leaving this province but not until I help to vote this government out of office. Do not kid yourself that will happen! Why? Because the morons (yes, the misguided fools) that support these changes (that they do not understand) will be on the other side of the fence when their relatives lose jobs, the small towns start to suffer, the local retailers start complaining, and all this anticipated extra revenue they were suppose to “share in” disappears because the interest to drill wells left the province to go to locations that understand the economics of risk and reward. Albertans are seeing their fair share now - perhaps you should be sending that message!!!!! |
| RRE5082 |
I think the royalty review panel have considered all factors and have it about right. I am offended by the arrogance and by the media blitz the the oil industry have launched to mislead Albertans and threaten our elected MLAs. I represent one of those providing the other 60% of Alberta's revenues. WE WANT OUR PROVINCE BACK |
| RRE5083 |
I am a very concerned Albertan at what our provincial government is seriously debating doing to the people of Alberta by raising royalties rate. The oil and gas industry is the industry that has provide dAlbertan's with the life style that we are so fortunate to enjoy. The oil and gas industry still has not gotten off of its "knees' based on what the federal government did to our industry last year with the royalty trust situation. People in our provincial government should be intelligent enough to recognize this. Also the reaction to the royalty trust situation has reduced activitiy in this sector over the past year, which will naturally effect the amount of money going in to the provincial governments pockets. Tell me how just 2 years ago the people of Alberta were given $400 each as Mr. Kline wanted the people to share in the windfall of the province and NOW the government wants to rape the industry to the point it will walk away from Alberta and spend its money in BC or SK. On top of this many small O & G companies will be closing their doors due to this situation. Many people are not thinking that this royalty structure is going to have a major impact on gas wells in Alberta. As gas prices are presently very low compared to where it has been in the past few years WHY would the government want to take more now. The impact of this is that industry dollars will be unable to continue to drill for this product and on top of this many of the wells will become uneconomic and we will find many gas wells in this province shut in. When this happens what will happen to the dollars that would go into the provinces pockets. On top of this has the governement looked at how much it makes every two weeks at Alberta Crown land sales. The money that industry will be able to spend and hand over to the province is going to be much much lower. Also when the NEP was imposed upon the O & G industry in the early 1980's approximately 85,000 jobs were lost. Does the Alberta government have any idea how many jobs will be lost this time around and then how does that effect the economy of our Province. People will be potential be facing the home foreclosures as we experiencedat that time. The small O & G companies and the royalties trust are struggling enough today with the impact of Oct 31/06 and are now desperately trying to reinvent themselfves I am so confused as to why our governments in this country keep pushing this industry down and keep expecting it to reinvent itself over and over again. Our basin in Western Canada is becoming more mature every day and this industry can only take so many hits. IF this government insists on moving forward with itsdecision it will be a much worse blood bath than the last time Alberta was put in this position. By moving forward with this we will not have as much money for education, health care, infracture or for supporting our single Moms and their children or our seniors living on the poverty line. Is this worth it. I would like to understand how the people that we have elected to protect us are actually looking to destroy our quality of life. THINK OF THE RIPEL EFFECT YOU ARE CAUSING. You have already stopped what is happening behind the doors of the O & G companies - daily projects are being cancelled due to economics. Rig and crews are already sitting and IF you do this more will be sitting, next will be lay off sin the sector. Now people will be drawing on EI to exist - what a pull on the economy of this Country. Now how much have you really gained or has the province truly LOST and ultimately has HURT and HURT deeply the people of this province in every possible way |
| RRE5084 |
It seems to me that the recommendations under the Royalty Panel Review (the "Proposed Recommendations") completely ignore the implication on capital that has or would have been invested by domestic and foreign investors. If the Alberta Government were to enact the Proposed Recommendations, it would be making a call that a significantly reduced return on capital invested is adequate for the risk being taken by these companies (oilsands, E&P co's, service co's). If that is the case, would the Alberta Government, representing the "people" of Alberta that allegedly called for these royalty reforms, then be comfortable reinvesting the $16.3 billion in the Heritage Fund into these ventures under such a regime? If the reward for the risk being taken is inadequate for the Alberta Government under these Proposed Recommendations, then why should it be deemed adequate for anyone else's capital, including mine? I suggest various levels of Government stop making important business decisions on the basis of political agenda and the ultimate goal of trying to retain their political office for as long as they can. |
| RRE5085 |
Hello my Alberta Government! The royalty increases as currently proposed would not be good for me as a single Albertan for the following three reasons: 1) I fear that the energy company that I work for [Information Removed]will no longer carry out current and future projects because the economics will not be viable. Much development simply will not continue and/or happen in Alberta. This could very well translate to the loss of my position/job (ie no futher development, only maintenance/minimal attention on current petroleum revenue properties), most probably the loss of the jobs of contractors that work with our group (in the office in Calgary, and also in the field and field offices), less spending for new drills, expansion of facilites, etc. I do not want to lose my job, and I would not like to see any of my collegues lose their jobs either. 2) I worry that I could lose my condo or in the least lose money in the purchase of my home if the real estate market is affected in Calgary by job losses, etc. city-wide (and province-wide). As it currently is, with interest rates rising, the mortgage is becoming more and more difficult to carry. If I was to be losing value on the property itself as well, I would have to consider moving, and most probably it would be moving out of province (to BC or Saskatchewan). If I were to lose my job AND lose money on selling my property, you can imagine I would be devestated. I can only imagine what would happen to families. 3) I am seriously concerned about a coming North-American recession aggravated by the situation in the US mortgage industry and the effects on American and now Canadian banks. Subsequent disturbances in the economics of our province (and investment by American and other companies in the infrastructure and economy of Alberta, and the jobs, etc. associated), following the changes to the tax laws affecting the Income Trusts not too long ago, may be just too much for the Albertan Economy to weather. I am already losing investment income from mutual funds and stocks and other instruments, and I don't like the picture of the future of our country (because the economic situation of Alberta WILL definitely affect the whole country) that I am glimpsing with these proposed changes to the royalty regime. I will probably move my money if not myself personally out of this country if these things happen, and as a direct result of the decisions that you are contemplating at this time. And that would be a shame, wouldn't you agree? Please consider doing any changes VERY slowly and fairly, with agreement and consultation from all industry businesses that will be affected. There are highly trained an experienced economists and business leaders in the Oil & Gas community that have important and logical reasons to be concerned with the proposed royalty changes. Please consider all short and long-term repercussions that extend beyond the Oil & Gas industry, and not only political agendas. I trust thier judgement in these matters more than I trust yours. And you cannot deny that what is good for BUSINESS in Alberta is good for Alberta and Alberta citizens (me). Thank-you very much for your consideration of my words and opinions. [Information Removed] |
| RRE5086 |
We strongly urge you to consult with the industry before imposing any changes to the current royalty program. We currently live in rural Alberta between Calgary and Edmonton, but we both were employed in the oil & gas sector for most of our careers. It may seem like the oil companies make far too much profit, but they ask their employees to work very hard and be committed, while at the same time treating their employees very well. I worked for a private company, and was never able to share in the rewards when times were good or bad. Once I went to work for the public company, I couldn't believe my good fortune. I had no desire to leave Alberta because of that. I have always liked the fact that Ralph Klein believed too much government involvement isn't always a good thing. I have seen what that can do, because I was born and raised in Saskatchewan. Things have already slowed this past year in Alberta, and therefore the time couldn't be worse for changing the royalty structure without the consent of the industry. There are several properties for sale in our area, and believe me, not much is moving. I feel it is partly due to the uncertainty involving the slowdown, as well as this new royalty debate fiasco. Let us pause and pick a more upbeat time to make changes. Thank you, [Information Removed] |
| RRE5087 |
Now is not the time to back down from the Oil Company scare tatics. For those oil companies that are threatening to pull out with their investments, the oil will still be there for other companies to invest in. |
| RRE5088 |
Jobs, jobs, jobs. People like good jobs. |
| RRE5089 |
I am an Albertan, a conservative and pro-business. I am confused and stunned as to how the Stelmach government believes that the proposed royalty changes will have a positive impact on this province. I appreciate the fact that the royalty regime should be fair and as such if there is a disparity in that it should be addressed. However, I also understand that the province needs to remain competitive to attract investment. The oil and gas industry is very capital intensive and the proposed royalty changes will drastically reduce the provinces ability to attract investment capital. Furthermore, the structure of the proposed changes is such that the government is eliminating the whole risk-reward principal that fuels this industry. The proposed change to reduce the royalties on low deliverability wells but increase the royalties on high deliverability wells can only lead to one outcome. The overall royalty take in the province could likely be eroded as the explorers who take the risk to discover the high deliverability wells will stop exploring. This may not seem to have an impact immediately; however, the effects of this shift away from exploration will be felt in the years to come as the royalty base begins to diminish and is not replaced because there is no incentive for companies to explore. I am appalled at the way the Stelmach government has proposed to unveil this proposal to industry. Well, I suppose I should say, the government dropped it on the industry without any forewarning and without any input. The government is downplaying the input CAPP could provide in finding some balance in a change in the royalty structure vs maintaining a pro-business climate. Alberta has become debt free largely due to the oil and gas industry. I do not think the government understands the amount of businesses that are directly and indirectly related to this industry. The province is booming and it is not a function of forestry, mining, farming, technology or manufacturing. The province is being short sighted in its approach to the royalty restructuring. The oil and gas industry faces many uncertainties every day which range, notwithstanding the generality of the foregoing, from swinging commodity prices, supply and demand issues, increasing supply of LNG's, world political instability, rising costs due to labour shortages. Canada, in theory, as a democratic and politically stable country, had established itself as a predictable environment within which to invest. However, with the federal royalty trust announcement in October 2006 and now the provincial royalty change announcement, we are quickly disproving the long standing theory that we are a country with political and economic stability within which to invest. Furthermore, in the instant the royalty change announcement was made, companies started to re-evaluate their positions in both BC and Saskatchewan in terms on investment opportunities. If the government proceeds to implement the royalty changes announced, the industry will speak loudly by re-directing its investment to those places which acknowledge the risk involved. On another note, I appreciate the effort that was likely expended to review the royalty situation and assess what may be required for change. But, I wonder whether or not a broader approach was even considered before announcing the results of the panel review? Did the panel consider the economic dominos that a change in the investment levels may bring? It would appear that there was no consideration given to the level of impact this decision would create throughout the economy in this province. For example, I grew up in a small town in north west Alberta. There are currently 6 hotels under construction in this town and there was no new construction of this sort for at least 15 years prior. The new hotels are being constructed as an indirect link to the oil and gas industry which is now active in this area and creating additional jobs and opportunities. I would not be surprised to watch business after business in this province fail as the royalty changes get implemented. Did the provincial government learn nothing from the backlash against the royalty trust announcement in October? With no proposed grandfathering or transition period, the government is telling industry that they are of no value. It's insane! Who do you think voted you into power? Moderated changes to the royalty structure may very well be warranted. However, I urge the government to re-think its approach and make sure they resort back to the fundamental principal of business ---- RISK VS REWARD!! If companies can't get to the reward in this province, they will look to other areas that they can. Keep the economy strong by supporting business. Supporting business ultimately lends itself to the people of this province being able to provide for themselves as opposed to relying on the government handouts of the past. I can not express strongly enough the negative impact this decision will have on the industry. I have always been a conservative and this government has made me question what that stands for. I wonder, do I have to vote liberal because I just can't support what this conservative government stands for? What an awful thought, but it is very poignant and true. The only positive that I can see in this situation is that I am now determined to become more involved in the political decision making of this province and will be putting forth and effort to ensure that the existing government doesn't ruin this province and the economy herein. [Information Removed] |
| RRE5090 |
I don't think we should grandfather royalties. I don't think we should increase royalties on gas unless certain price threshholds are reached. |
| RRE5091 |
This royalty review should have taken place many years ago.I think it is a good and honest report. If there is a fault in it,s conclusion,it,s that it did,nt go far enough in describing the negative effects the oil boom has had on our society.As a public employee,I have had my wages losing out to the increasing cost of living and inflationary rate increases for a number of years.The extra money,s collected from fair royalty rates should be put into education,health care and infrastructure projects.This resource belongs to the people and the first people to benefit from this resource are the owners.As a [Information Removed]in the [Information Removed]with 26 years of experience,I have seen the oil and gas industry paying there employees increasing amounts for wages.Was it not the public sector who were asked by Mr. klein in 1993 to take a 5% wage cut to help pay down the Provincial debt?We all took the cut and Mr. Klein said we would be rewarded and we would be rewarded when the debt was payed off.Some reward.Higher municipal taxes,higher costs for goods and services and lower buying power because this same government did not keep up with the budget allotments.It,s time all the people got there fair share and not just the resourse industry. In closing,I would like to remind you that it is only some people reaping the rewards of this bonanza.A lot of average Joe,s have been left benind.Ordinary,hard working 9-5 ,tax paying,voting people.It,s time we benefitted from OUR asset. [Information Removed] |
| RRE5092 |
Think it will have a determintal affect on the economy of Alberta long term. Also, if you can name another industry that where when things are booming for them, the government increases taxes that would be great. Singling out one industry over another doesn't work. Especially when almost every other industry is linking either directly or indirectly to the oil/gas industry. |
| RRE5093 |
What a deceitful scumbag. We waited for the royalty decision and all we got was an infomercial. |
| RRE5094 |
I have said from the beginning....take it easy on the oil companies. Hit them a little at a time. Please do not cause a recession here. You will only be impeached. I will have no choice but to give up my house and go on welfare (which I will do-as many Albertans will do) What you will(might ) make now on royalties will only be lost on massive layoffs , uic -welfare claims...as well as a higher crime rates. We all know that the "oil" makes alot of money but they control the economy for now. I have worked only 1 week in the past 2 1/2 months and now I fear I may lose everything because of your "cowboy" attitude. As much I hate to say ...you will lose this fight before it starts. The people have the final say! Please think about the welfare of ALL Albertans before your political agenda. |
| RRE5095 |
Why is there a need to increase royalties when the government has no debt and is running fiscal surpluses? Shouldn't the government be giving back in the form of lower taxes instead of making what amounts to an ill conceived cash grab? If this goes through, you will lose my support. |
| RRE5096 |
I have voted Conservative for nearly 40 years but if the Stelmach government does not endorse and enact the essential elements of the Royalty Reviwe Panel's, and the Auditor General's reports on royalties, I will NOT vote Conservative in the next provincial election. |
| RRE5097 |
I have taken a close look at the royalty review package and am deeply concerned that the provincial government will take this report at face value. It would seem that the review panel saw only upside in increasing royalties and made a significant effort to state that these royalty increases would not adversely affect our economy and would assist in lowering the hyper-inflation that we are suffering. These comments seem rediculous in light of the current decrease in gas drilling in this province with the lower gas prices we are seeing this year. High costs and low gas prices have taken an extreme toll on our activity. One only has to look at the record drilling pace south of the border for shallow gas and resource plays to see that we are not in a significant competitive position relative to our neighbours to the south. Althought there may be some room to move on royalties, I hope some common sense is applied to the royalty re-evaluation or you can guarantee that our current level of 3% employment will not be maintained for long |
| RRE5098 |
I question the assumption that raising royalties will not cause significant reductions in the current and future investments in all aspects of the oil and gas industry. If that one assumption is wrong, by raising rates it would hinder a thriving industry at a time when it should be using it's strong prices to expand and generate more opportunity in our community. Instead of generating more tax money, it could limit the same hard won growth that the government has built during the slower times of the 1990's. That growth currently gives lots of 'royalty' money to Albertan's in the form of pay checks and that shouldn't be sacrificed to increase the governments share. It could hurt a lot of Albertan's by increasing the governments share so what programs is Alberta going to spend the money on and who would it help to make it worth that risk? I hope the government listens to industry and if they raise royalties, they do so in a manner that still encourages oil companies to do good business here. I hope other Albertan's believe the same thing because it would be a shame to have a bust while other oil and gas rich area's are thriving. |
| RRE5099 |
Oil and gas companies have been making billions of dollars off Alberta's natural resources for years. These resources belong to everyone, but we, the people, have not been getting our fair share! Not only are these oil and gas companies making huge profits, they are also destroying the environment in the process! The Athabasca river is going to be in sorry shape in a few years due to water removal, and the pollution and waste are of great concern and it will be Alberta's problem, not the oil companies of course, to fix. Therefore, I am in support of significantly raising the royalties as I see the oil and gas companies getting a sweet deal in comparison to other countries, and also for getting away with raping Alberta's environment. I certainly hope that the government will not back down when big oil and gas barks......... |
| RRE5100 |
While I haven't read the report in its entirety, I have read the news stories to believe that I can offer an informed opinion. The bottom line is this. If Newfoundland Premier Danny Williams had the [Expletive] to stand up to the big oil companies and win - if Premier Stelmach cannot find the guts would speak volumes as to where this government's priorities lie. Regardless of the bluster and cries from the oil industry about how the new royalty scheme would cripple our economy, they're conveniently ignoring worldwide realities. The demand for oil is going down anytime soon, despite calls to clean up the environment. I don't see the average Albertan, nor North American for that matter, ditching their big-[Expletive] trucks and SUVs in record numbers, despite the constant escalation of pump prices. The populations of China and India are never going to shrink, nor is their need for oil. The Americans are constantly stirring things up in the middle-east, and there's always going to be instabliity with Arab oil producing nations. And I won't even bother to go into the instability of oil from African nations. The reality is that Alberta has the most generous royalty scheme, and one of the most stable eco-social environment to operate in. The oil companies have no fear of terrorist blowing up their sits and facilities as in other nations. They don't have to worry about corruption at the highest levels of government and certification. Incompentance perhaps, but rarely litte corruption. And the demand for oil isn't going away. As a regular Albertan, I'm not demanding an outrageous rate. But rather a rate that's in line with other nations. I want the Syncrudes, and Suncors to pay their fair share of instructure like roads, and sewers, and water treatment facilities, which are severely overstressed. If there needs to be some concessions in the way of grandfathering, or a REASONABLE adjustment to the rates, that's ok too. But to dismiss it outright and let the oil companies dictate preserving the status quo - that's unacceptable. |
| RRE5101 |
I beleive that my government should take the Review Panel's report and act on it as proposed. All the parties in this dispute will lobby for their point of view. But the Review Board was an independant group that makes an unbias suggestion. |
| RRE5102 |
It doesn't matter how much comes in from royalties if we keep blowibng it all on program spending. 100% of oil and gas revenue should be put in the Heritage Fund. Royalty rates should not be adjusted until that policy decision is made. Until then the oil cmpanies can argue succesfully that this is nothing more than a tax grab. |
| RRE5103 |
Please implement all recomarndations of the report.It is about Alberta's future and our kids not short term gain by enrgy sector and Political partronage. |
| RRE5104 |
I strongly disagree with the government's view /stand on implenting a 20% Alberta Royalty Tax , does the government not care about the people of Alberta? This tax would have devasting effects on Alberta's economy, oil companies will move elsewhere, companies will cease investing money into our province. Thousands of people will lose their jobs. The government should listen to the people of Alberta and scrap this outrageous idea. |
| RRE5105 |
1. Alberta has been extracting oil and gas resource far longer than Norway, and even though both "countries" have similiar populations, Norway has over 200 billion dollars in reserves built up, while Alberta has little more than the 12 billion dollars that Peter Locheed used to start the Heritage Trust Fund.. During our last trip to Norway [Information Removed], we noticed a distinct prosperity among the citizens, excellent roads, a cleaner countryside, and beautiful houses. By contrast, our infrastructure is crumbling, junk litters our province in places, and a debate continues endlessly about low cost housing. 2. We do not know for a fact how much oil and gas is actually being extracted from our resource by the multi-nationals, and on the amount that they do report, we ask for royalties that are among the lowest in the world. 3. The northern third of Alberta is being raped, but typically, since most Albertans live south of the centre of the province, and know and care little about the north, nobody cares about the long term loss of the tar sands as long as prosperity accrues to the south. 4.The multinational oil companies will never stop their profit taking from our resource, and each time rumblings in Alberta surface about increasing royalties, they purposely slow down production and claim they are reducing investment. Each time our government falls for the act. 5. THE MULINATIONALS NEED ALBERTA MORE THAN WE NEED THEM. INCREASE THE ROYALTIES AND IGNORE THE THREATS OF SLOWDOWN AND REDUCED INVESTMENTS. ANY JOB LOSSES ARE THE RESULT OF THE INFLATED PACE THE OIL COMPANIES THEMSELVES HAVE SET, AND THOSE JOBS WERE FILLED LARGELY BY IMPORTED LABOUR. Signed; [Information Removed][Information Removed] [Information Removed], Alberta |
| RRE5106 |
Although I don't want to lose the royalty money, I also don't want to go back to the 80 when we had no jobs here. I know a number of companies that are waiting for this decision, whether they are going to do business in Alberta or not. ALBERTA IS OIL, DO NOT LOSE OUR JOBS ELSE. I believe this will happen, |
| RRE5107 |
I feel the Royalty Review Report will be bad for Albertans and this report need to be reviewed again - fairly with the Oil Companies and the Province ...using current costs and numbers. Lets not hurt Alberta's economy by hurting our backbone of what makes us strong - just for a quick cash grab. |
| RRE5108 |
I think that the oil industry has been getting a sweet heart deal long enough and that the Royalty Review Panel recommendations should be implemented in full. The oil companies need the oil and may slow down development for a while but they will be back. It will be a good thing if they do slow development for a while since the Alberta economy is far too strong right now anyway. [Information Removed] |
| RRE5109 |
Ed, the Edm Sun has reported you saying "it's simply wrong to say that Alberta's current royalty regime has been a failure." Sir, that is the biggest [expletive] of [expletive] yet. You know damn well, if your previous party leaders had not been in the pockets of Big Oil we would not be in this mess to begin with. It's up to you to fix it NOW. Your party and nobody else is responsible for this, nobody else has been in charge.... even though you damn bullheaded Conservtives have been good advice for more than 30 yrs.... it has simply been ignored. Well the citizens of Alberta are no longer gulible idiots farmers that vote for you time and time again. Are u gonna magically gonna find a backbone and stand up to Big Oil or have they already '[expletive]' you? [Information Removed] |
| RRE5110 |
I believe that the royalty report reccomendations should be fully implemented. It was able to give a spin-free recommendation; now that it is out all kinds of doom and gloom scenarios are being spun. Never again will industry be so candid on input to the government - the spin doctors will be telling us how lucky we are to have people come here and make lots of money on a non-renewable, hard to replace resource! Short term natural gas prices are down, however it was not that long ago that they were at a premium. So we are dealing with what is currently marginally economical; two years ago I wonder what the argument would have been? We need a fair and transparent royalty mechanism; the Auditor General's report shows that we have not been getting that! Should we retroactively go after those foregone revenues? Once the royalty decision is made, we need a legal requirement to have 5 yr royalty reviews, proper data collection and public legally accountable reporting of the data collected. Let the facts speak for themselves! |
| RRE5111 |
Like any system the public's methods of allocation of resources needs to be renewed periodically. Certainly the risks associated with some ventures needs to be shared and governments do that with incentives. In my opinion all incentives should have a short shelf life. In the case of our royalty system it is quite clear that the companies that could marginally make a profitable venture at 20+$/bbl oil can certainly do so when the price is 4 times greater. In my 35 year career in strategic planning and large capital project management i have seen very few big projects that were not reasonably conservative through a combination of risk and capital sharing. Although the timing is coincidental i believe that the raise in oil prices and the heat of the economy is not sustainable and certainly not good for most albertans. The companies that choose to pull some investment capital our of our province are doing us a favor (although it looks like they're seeking pity... not from here). In the history of man the standards of life have been directly related to the ability to acquire and harness more concentrated forms of energy. There is no doubt that with the expectations of increased quality of life in the world that the energy demand will continue to rise and we should not fear having a market for our products. (On a separate note the government has / is doing a poor job of keeping the raw material conversion industries here.... let's put some of the investment capital into value added industry and not worry about investing in more extracting for the greater good of others) [Information Removed] |
| RRE5112 |
The province is presently raking billions in royalties any increase in these"taxes" to the industry that is driving our economy could have devistating effects.The government should be happy with the present royalty regime.Remember that not only does the oil and gas industry feed billions into government coffers in royalties and other fees for lease licensing and land sales but they also employ tens of thousands of people which in turn supplies the government with more tax money.You should take a page from the book of King Ralph and start using what you have more efficiently rather than going to the golden goose and trying to kill it. |
| RRE5113 |
Good morning Honourable Mr. Stelmac. I am writing to ask that you to slow down with the royalty review, and make the correct decision. The information given to yourself is inaccurate and unsustainable. We as Albertans have not been given enough opportunity to voice our opinions regarding this dilemma. I currently work in the oil and gas sector as well farm in the [Information Removed] area. I have been able to balance out the hardships of the farm with employment in the oil and gas sector. Unfortunately, the farm has not been able to support my family so I have chosen a career in the oil and gas sector. I very much enjoy my job and the people I work with. I treat the farm as a lifestyle, but not a career. My career is oil and gas. I am employed by the second largest oil and gas company in Alberta, and I have been advised by management that if the Royalty Review recommendations are adopted, then our company would effective "exit" all conventional operations in Alberta with in 5 years. This is not "greed" that we are basing this decision on, but rather economics. This will affect every one in Alberta. From roads, to hospital, Schools, Sports, everything... Even the agriculture and forestry sectors will be affected. There will be large royalties for the first year, but as the marginal wells start to decline, they will be shut in sooner and drilling will essentially be halted. All of our contractors and service companies will no longer be needed in a very short time. The effects will cause bankruptcies, housing foreclosures, and the skilled labour that Alberta has work so hard to attract will be leaving. With a closing note all I can say is I remember 1981 when Trudeau killed the industry and many people/business's struggled to make ends meet. Many people left Alberta for other Provinces and industries. I would do the same this time. If I were unable to continue with my profession in the peace country, I would move my family to a place where I felt Government really did listen to reason. Should you wish to discuss this matter further, please call. Thank you for your time in this matter. [Information Removed] |
| RRE5114 |
To Premier Stelmach: This letter is to urge you, as Premier, to stand up for the citizens of the province and accept the top recommendations of the Royalty Review Panel. To do anything less would be to make a Compromise on a Compromise. That is not acceptable. Nor is it fair to those to whom you are responsible. As Premier, Mr. Stelmach, you and your government represent a steward of these non-renewable resources. It is on behalf of the citizens that you are our ‘custodians’ of these resources that belong to all citizens of Alberta. I had the privilege of presenting to the Royalty Review Panel last spring and at that time I expressed my appreciation to the Premier for setting up such a panel. I was also impressed with the attention and interest shown by the members of the panel. It was a breath of fresh air in this Province to see the clear message presented: that the resources belong to the citizens – and that citizens were not getting their fair share. We sincerely appreciated your public release of this Report. Since the release of the Panel’s report, however, I have been extremely alarmed to see the powerful, bullying, actions taken by the petroleum companies. I was disappointed that you, as Premier, immediately felt it was appropriate to allow the Coe’s and their executives private time with your Deputy Premier, Ron Stevens, behind closed doors, and the public would only be given the names of the companies represented – not what was presented. I find this is an affront to the democratic rights of the citizens. These corporations had the same opportunities as citizens to present their position to the Panel – in fact, they had far more resources at their fingertips than ordinary citizens. It is particularly offensive that these corporations can meet behind closed doors – presenting material without any public or press allowed to observe. Why were the Panel members not allowed to review these new ‘facts’ and ‘statistics’? The petroleum companies have lost a great deal of respect in the community by their bullying and brash actions and their demand for ‘special hearings’. Particularly repugnant is their secretive funding of so-called ‘grassroots’ organizations and fear-mongering among their own employees and citizens in general. I would urge Premier Stelmach to stand up for the Citizens of Alberta by adopting the Panel’s Report to its fullest – after all it is already a very low estimate. As a Panel Member, Evan Chrapko, stated: We came in under some of the advice we got, particularly in the oilsands. I probably would have held out for higher, especially if I knew the ensuing debate was going to be conducted on one side of the equation. We cut a balance and we did it on the low end of what might have been possible." (Calg Sun Oct 19/07) [Information Removed] |
| RRE5115 |
Please stand firm on your decision - increasing the royalties to the proposed levels is the best thing for ALBERTAN'S . I have extensively reviewed data from both sides of the argument, and can truly say I support my elected Premier and his team, so don't back down. [Information Removed] |
| RRE5116 |
I work at a Land Broker in Calgary. Many of our Clients have already announced cutbacks if the new Royalties are implemented. This past year we have already seen a 35% decrease in Market Activity. Our Company experienced two sets of lay off's last Christmas. If the Royalties are raised, I'm sure we will face more. Most of Calgary is employed in some way by the Oil and Gas sector. I went to school to be able to thrive in our growing city. Please don't take that away. Job loss will start in Oil and Gas and trickle down the chain. Everyone will feel it, and it won't be welcomed. |
| RRE5117 |
Dear Mr. Stelhmach, I am writing to you as I am very concerned about the report you received from the Royalty Review Panel which says the Alberta needs to increase our Royalties by 20%. I manage a small Oilfield Service Company in Central Alberta. I have been with this company for 11 years and we have just came through 10 of the roughests months that I have ever seen. The oilfield in our area is starting to make a slow recover now but if you go ahead with the recommendations from the Royalty Review Panel and increase the royalties by 20 %, we may as well shut the doors. As it is ,with the Canadian Dollar being on par with the USA ,the Oil Companies may very well plan on spending less in Alberta. If you decide to increase the royalties as well it will be a double hit to us as a company as well as to many other Albertans who make their living in the oilfield. Please don't make any rash decisions in this matter. Talk to the OIl & Gas Companies and see if we can't come to some kind of compromise instead of jumping in head first and doing damage to the industry which as helped make Alberta rich. Regards, [Information Removed] |
| RRE5118 |
I think we need to raise the royalties, Alberta needs more Doctors, Nurses and Hospitals, we also need more schools. The oil and gas companies get lots of money. Alberta needs to take care of their people. |
| RRE5119 |
I agree with a review of the oil & gas sector royalties, but I don't agree with the increases the review panel is proposing. As a consultant in the industry, I have seen first hand what that effect of a slow down in the oil patch is causing due to a decrease in gas prices. If the Alberta government implements all of the panels findings, Alberta will go from being a rich province with low unemployment to a rich province with high unemployment. Jobs losses will be increased and these people will lose their homes. I agree with government over an oil & gas royalty review, but not to the extent the panel is proposing. |
| RRE5120 |
On September 18, the Alberta Royalty Review Panel (ARRP) appointed by the Alberta Government released its report to both the Government and the people of Alberta. This report recommends significant changes to the oil and gas royalty regime in Alberta which I believe will have far reaching impact on investments and activity across the province. Unfortunately, the report focuses strictly on the royalty “take” for government, while ignoring the significant contribution the industry makes to Albertans overall. Analysis of the Report i) The “Big Picture” 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 sector, you can see that the energy 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 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 we undertake to support the wider economic benefits. ii) Comparison to Other Jurisdictions: 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. The table below, prepared by John S. Herold in 2007 illustrates that returns in Canada are modest compared to many other jurisdictions. The results are not surprising. Generally speaking, Alberta is a high cost jurisdiction where reserves and deliverability are small compared to many other jurisdictions. iii) The Gas Business With regard to gas projects the ARRP report suggests that approximately 80% of gas wells will see reduced royalty payments if the recommendations are implemented. However, analysis shows that this would occur only if gas prices were to decrease to approximately $4 per mcf. At more current levels of $6.25 per mcf, the proposed royalty rates are all above the old ones. At the price levels needed to support investment in many gas projects, 80-90% of gas wells would pay higher royalties. Today, with existing royalties on gas, rig utilization in Alberta is running at about 40%. If industry activity is already in decline in Alberta, higher royalties will only decrease activity further. In the US, where the industry is drilling similar prospects, rig utilization is approaching full capacity. iv) Oilsands Oilsands is another area of concern. As you know, oilsands projects are extremely expensive, take years to build and take even longer to achieve payout. In essence, they require billions of dollars of investment prior to any returns. Generic fiscal terms were developed in the mid-1990s through extensive collaboration between the industry and the federal and provincial governments. These terms did what they were supposed to do – encourage companies to develop new technologies to facilitate the development of the oilsands, a legacy asset that will be supporting Albertans for generations to come. While the ARRP conducted hearings around Alberta, their process was in no way as extensive as the previous process which resulted in generic royalty regime. Before proposing recommendations, changes to the terms should have been established by following a collaborative process similar to that utilized in establishing generic fiscal terms a decade ago. This would ensure price and risk are fairly valued and capital invested in this essential sector receives appropriate returns. Investment in oilsands development is critical to the economic well being of Alberta and Canada. An important issue related to oilsands is the new severance tax proposed in the report. It is a new tax on gross revenue that does not consider costs and is not deductible for income tax or other royalty assessment. This is a very regressive tax which essentially leads to double taxation. The closest comparison I can make is the Petroleum & Gas Revenue Tax, one of the worst elements of the federal government’s National Energy Program, introduced in the early 1980’s, which devastated investment in Alberta and resulted in significant job losses and a decline in property values. Other concerns include 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. v) Unconventional Resources The future of Alberta is largely in unconventional gas (e.g. coalbed methane, shale gas and tight gas) and oil (EOR 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 costs and time to achieve payout. This serves to erode the attractiveness of these investments to a point where many become uneconomic. A Better Approach 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.” Other Impacts I would also like to bring a related and alarming issue to your attention: the [Information Removed] desire to spend billions of dollars, a portion of which will be in Canada, as already illustrated by their purchase of [Information Removed] Canadian oil and gas companies are looking like attractive take over targets in part due to moves made by our federal and provincial governments. Oil and gas stock prices have fallen in a time of record prices for crude oil because of the changes made to taxation of the income trusts and because of the proposed changes to the royalty structure. I can not express enough concern to you in regards to a national company (i.e. a nation) buying Canadian companies, especially Canadian energy companies. This is very concerning, and is creating fear amongst Albertans and Canadians. Do the governments of Alberta and Canada really want to attract and allow this kind of investment? To be clear, this is a foreign country owning resources in Alberta, Canada with no accountability to shareholders. I urge you to consider strong measures against further activity of this sort. Thank you for taking the time to consider my thoughts and opinions. [Information Removed] |
| RRE5121 |
The Royalty report goes a long way to addressing the free ride that the petroleum industry has had on the backs of Albertans! Ed, don't blow this - help Alberta first! |
| RRE5122 |
As stated on your website, the Alberta petroleum industry has been a cornerstone in the growth of the province – demographically, economically and politically throughout much of Alberta’s history. Why mess with a good thing?? If the proposed royalty increase goes through we will be faced with a province wide bust, not solely experienced by the oil patch alone, that will be with us for years to come. The oil patch itself may never recover to levels that we have seen in the past. Smaller oil companies will be unable to show a profit and the major oil companies are likely to shift their focus to international markets, investing their hard earned CANADIAN income in more stable markets where goverment decisions do not impact business strategy. This in turn will force Canadian and International service companies (which employ thousands of Albertans and Canadians) to follow the work overseas or in some cases be forced to close the doors. There is more at stake than lost employment opportunities; pay cuts could be forced onto the industry resulting in increased social problems which will create DEPENDANCE ON GOVERNMENT PROGRAMS! Most of us have seen our investment dollars shrink to a fraction of their original value as a result of federal and provincal govermental decisions; investments with money that we worked hard for and worked in dangerous and harsh environments. We endured prolonged periods away from our families; our families endured prolonged periods away from us, in an attempt to secure a good life and future. If the provincial government passes this proposed royalty scheme, our investments are sure to devalue even more. This stupidy and greed by our provincial govermemt will not only affect the oil patch and related spin off services, it will affect ALL ALBERTAN & CANADIANS! Remember we are the people who voted to give you the privilige of serving in our goverment, we can also decide to vote differently next time. Do the right thing and protect the people make the right decision not the one that keeps the oposition happy. DO NOT APPROVE THE PROPOSED ROYALTY INCREASE. |
| RRE5123 |
While I understand that the current royalty structure could be deemed outdated, I do not understand how the panel could arrive at such a large increase at a time when the industry is reeling from rising service costs and lower gas prices. Currently, I work in [Information Removed]at one of the junior exploration companies and I can assure you that should the proposed royalty structure be implemented, we would be struggling to stay afloat. As is, we are having issues maintaining cashflow for existing and planned projects. Simple economics do not provide for viable success for small and mid sized producers when it is more expensive to produce wells than drill them. if the proposed royalty structure is put into place, my company would undoubtedly be forced to shut in wells and look elsewhere outside of Alberta for new production opportunities just to generate cashflow. This is not an empty threat but rather the reality of what could & likely will occur. Despite what the media and other uninformed individuals would like to believe, companies are forced to adhere to what makes economic sense. As a [Information Removed]employee, I am well aware that the province is also generating an incredible amount of revenue every other week at Alberta Land Sales and that millions are collected on rental payments for Crown Leases each month. I notice how these revenues are not well publicized to those who do not work in my sector. The province has done well off of Alberta's Natural Resources and it will continue to reap the rewards for many years to come as long as the resources are managed responsibly. I ask that the Stelmach government stand by its word and consult with industry leaders as to the wide reaching effects this proposed structure would have on not only those employed by producers but to all Albertans. It is incredibly frustrating to me, as an employee of the industry to be continuously slandered by other people and those in the media, who do not necessarily understand the innate challenges our industry is currently facing. Without our industry, our province would not be as prosperous as it is today and I sincerely hope that the premier and his government will be reasonable and practical and not greedy when it makes its election on the proposed royalty structure. I strongly believe that raising the royalties so sharply at his point in time would be devastating to the industry and the province. Sincerely, [Information Removed] |
| RRE5124 |
To the Alberta Government (who has been put in their seat by us, the people, and should listen to us on this issue), I appreciate the effort and concern you have shown by having this review into the royalty taxes paid by the producers in Alberta. However, the way I see it, you are trying to rob Peter to pay Paul. You state that the oil industry hasn't propersly compensated us, the owners of the resources, and would like to hike the tax by the sum of $2B or so. May I point out that the oil companies have put up all the risk in exploring and developing the oil & gas industry in Alberta for the last 100 years or so. No tax payer has carryed the burden of this risk, but surely has reaped the benefits through the employment opportunities, economical feedback of money in Alberta by the oil industry and gains in the ownership of shares into any company associated with the oil and gas industry. My opinion is that the oil idustry pays the going rate (market value) of the open market (capitalist economy in Alberta) for the land acquisition and the possibility to dril and exploit such land. They do this by analyzing the costs and revenues they can make on each project. Because of the capitalistic nature of the business, they will always give the needed rate of returns to their investors. Land acquisition costs and taxes are on the same column of costs in their balance sheets. If you hike the royalty tax by $2B, there will be a direct and proportional decrease in land sales at the other; net to Albertans will be $0B (that is still with a B for Billion, but zero is zero). The only thing that raising royalties will do, is scare away people from marginal plays (whcih covers most of Alberta) and decrease the economical activity in this province. I bet that BC and Saskatchewan are just licking their chops to get all this Alberta money and people to go exploit their resources. We have already seen a big exodus to Saskatoon from Albertans tired of the high taxes and low services (health, schools, roads) in this province. I say, don't mess with what is not broken, and greed will only be the end of it all, if you want to send us back to the 1980's and that federal fiasco called the NEP. Sincerely, [Information Removed] |
| RRE5125 |
What are the chances that the Progressive Conservative government of this province will actually represent the best interests of the people for a change? Probably zero. Still, it would be nice to imagine having a government that actually behaved responsibly and honoured its fiduciary duty to the people instead of [Information Removed] itself out to the oil companies at least just this once. As a FOMER PC, I can tell you that I’ve come to know what to expect and am certainly not expecting much from the same old tired, arrogant, and corrupt pile of trash running the show in this province. I suppose that on the positive side I should just be glad that all-around flunky Jim Dinning isn’t premier, otherwise instead of receiving the royalty recommendations that we did, Mr. Dinning would have had a report fabricated by his big oil buddies suggesting we provide even more corporate welfare to those same big oil buddies. Any other jurisdiction on this continent and you arrogant worms would have been turfed from office long ago – but this is Alberta where the electorate loves getting [Expletive] . . . The worst kept secret in the province is that there isn't a hope in hell that Stelmach will have the fortitude or courage to implement the recommendations in anywhere near their entirety. . . I certainly know who I won't be voting for come the next election. |
| RRE5126 |
Yes, I am strongly in favor of changing the royalty act so that we the people of Alberta get all of the money we should have . The Oil co. will not like it but they will not pull back or out as they are to committed and if it slows down a bit it will help in a lot of ways. I want to thank you Ed for letting me have my say! go after them! |
| RRE5127 |
I am writing to express my concern on the royalty issue. My concern is that the proposed increase will have a significantly negative impact on the Canadian economy, especially in Alberta. Our economy has gotten much stronger because of the oil and gas indusry, under the present royalty structure. My understanding is that the government has been benefiting from billions of dollars in royalty from this industry. Not only is the government benefiting significantly, but also the retail industry (car dealers, clothes, food, etc.), housing, tourism, banks, etc. Look at how strong our Canadian dollar has become. This is very good for most Canadians, but on the other hand my understanding is that the dollar value is also having a negative effect on the oil and gas industry as many of them purchase in Cdn dollars, and sell in US. So, the royalties, the Cdn dollar value and the new taxation laws are among many factors that will affect this industry. I am asking that all government decision makers sit back and take a long, hard look around at how much Canada has grown within the last few years, and carefully ponder their actions, before they make a decision that could severely impact our growing economy. Some Oil and Gas companies are saying that after carefully conducting reviews, they have concluded that the government doesn't have all the facts, in which to make a good decision. The oil and gas companies are threatening to invest in other countries, and it seems they are serious. If this happens how much royalty do you think the government would get? I bet less than they are getting now. And, what about the millions of people that would be without jobs. What do you think would happen to the economy, and let's face it, there will be less taxes going to the goverment, because a lot of people will be laid off. I am pleading to everyone concerned to get their facts right and make a fair and strong royalty structure, one that all Canadians can benefit from. A negative impact will not affect Albertans, but it will affect all Canadians! Lets do it right!! |
| RRE5128 |
I would just like to know if the Government of Alberta realizes how many jobs are at risk and how many people will have to relocate. I guess I should have never left Saskatchewan in the first place. |
| RRE5129 |
I feel that if the panel's recommendations are enacted that the Alberta economy will be severely impacted. Drilling for gas and heavy oil will be greatly reduced. Only the most robust oil sands projects will proceed. This will send a harsh ripple effect through the economy. The government needs to ensure that they do not get a bigger share of a much smaller pie. |
| RRE5130 |
Hi, Just wanted to pass along my thoughts on the royalty review. I do feel we need to look at this, but do not raise it up 20% overnight. This will cripple the province. THese oil companies have counted on a stable place to invest their shareholders dollars. We recieve a fair take on the revenue but like I said, maybe we need to start discussions with the oil business to gradually get slightly higher revenue. We do not want them to put their investment elsewhere as this could put the province back into the red. Very quickly. Many people will lose their jobs and we already have enough money to grow our province. If we get more we will probably have to send more to the Federal government anyway. Lets focus on spending what we have better as the word surplus means more than we budgeted for. Do not give into people who want a cheque either. You know if we give them money they will be back next week broke again and wanting more. Lets spend properly, negotiate with the oil companies, and build us all a province that is the envy of the rest of canada. If we all share and grow together, the oil companies and the governments everyone will benefit. Thanks [Information Removed] |
| RRE5131 |
I would like to make my voice heard with respect to the royalty review panel’s recent recommendation. I find it incomprehensible that a debt-free province with the wealth of Alberta would contemplate butchering the “goose that lays the golden egg”. Oil and Gas, and in particular the Oilsands, are the backbone of this province’s economic success, and crippling of the industry that continues to support our success is suicidal. Secondly, I have heard of no plan to better the already rich province with this greedy grab. Who will benefit from these exorbitantly increased taxes? I know I won’t. Please reconsider this inane plan! Thanks for listening, [Information Removed] |
| RRE5132 |
Has the Alberta Government actually thought about what the increase in Royalties on Oil and Gas companies will do to Alberta/Albertans? It will be the end of a great Province. Has it occured to the Government that they will be taking money out of Albertan's pockets and inturn out of the economy? Is Stelmach is pushing this tax so he can appear to be a hero in all the eyes of the Rural Albertans/Farmers/Edmontonians? The Rural community and maybe some Edmontonians will applaud Mr. Stelmach's taxes for awhile until they are effected personally by it. All of a sudden, as Oil and Gas companies activity levels drop, the economy drops. WE ALL LOSE. Our Government is becoming too involved in the Oil and Gas industry. They need to take a step back and leave it to the people of Alberta. Mr. Stelmach should consider CAPP's review of the Royalties. |
| RRE5133 |
I believe Albertans can benefit just as much by a BUY ALBERTA policy. I work in the procurement field and spent project and then on the project. There wasn't any buy Alberta program with either company and what ultimately happened is on the of the project I would estimate 60 to 70 percent was purchased in office did all of the procurement. I questioned it and was told that the project did not have any requirements on a Buy Alberta / Canada program. I believe Alberta will get stronger the more that occurs here. I know the argument that many companies are foriegn owned but if they are here they will pay taxes, employ Albertans who pay taxes which is where the tax revenue stream should come from. This way Oil Companies will spend money without complaining, Albertans will be employed, Industry will develop and Alberta will have a higher tax revenue which can then put into the heritage fund. |
| RRE5134 |
I disagree with changing the royalty structure. It is additional taxation, and as we know business's will move to where the taxation is more favourable, with that so will the jobs. So an increase in royalties = less production and less jobs = less overall taxes.. it is a lose - lose proposition .. unless that is the plan to be more socialist in nature and tax people and business's to become more like Saskatchewan, instead of being a leader in business savy and make provinces like Saskatchewan want to be more like Alberta. [Information Removed] |
| RRE5135 |
I believe that the Royalties should go up and Albertans should receive what is theirs. The oil companies keep threatening to leave, so let them leave. There are enough companies around that would love to take the contract. Perhaps the government should take a step forward and give those contracts to a company that does care about Alberta, Albertans and the environment, including the living conditions that are happening in Fort McMurray. It is really sad that we should be answering to the oil companies in the first place. WE the people own the oil because WE the people are the government. Therefore the people say, either take care of us and the environment or leave our beautifull province. |
| RRE5136 |
A 20% increase in royalities will styme the Alberta economy and the government will end up fewer royalties that it started with. Oil drives the economy and all domino effect seen with offshoot industries, service industries, etc will have a huge inpact. It's probably time for a bit of a raise - but certainly not 20%. Think hard before you leap. |
| RRE5137 |
Good Morning, I would like to state that I am an Albertan, born in Calgary in the 50's. I have been put out of work 3 times now because some government persons have made bad decisions, virtually killing all Oilfield activities. If very few persons are working in the Oilfield, then very little tax dollars will be coming to the province as well as lower royalties. We don't need to save for a rainy day, as we are already one of the most well off groups of persons in the world. With all of the new safety rules that our genius government implemented, it costs approximately 50% more to drill the same hole in Alberta compared to anywhere in the U.S. The Oil companies must cover the costs of all the additional expenses incurred with this legislation, as well as the higher wages, environmental issues, infrastructure expenses, etc. I would like the government to think about what they are doing, as this boom is because of the invested monies by the Oil companies. I don't want to have to lay off any of my staff, and want the work increase to continue. The bottom line is that the Government needs to work with the companies to come up with a fair agreement for all parties, and not dictate a number that is unreasonable. [Information Removed]. |
| RRE5138 |
If the Royalties are increased and Oil Companies stop growing up Alberta will stop growing up too. Which means no more new jobs, no more people coming, salaries will decrease, and this is no good for Albertans. Increasing somwhere in the middle will benefit both expectactions, Albertans and Oil Companies. Oil sands and oil always will be there but with no company doing the investment to process it they will stay there for ever and Albertans will never have the opportunity of developing the Province as we could. |
| RRE5139 |
We are a small company, and senior citizens that rely on our royalties to live on. These oil rights were my Grandfathers and have been handed down through the generations. We are not the Encanas or Suncors of this province. We are small landowners that have worked hard to make a living off the land, and the little bit extra we get from royalties you are trying to take away from us. The government should take a better look before they ruin hundreds of lives with this proposal. Also the jobs in the oil patch that will be lost will be devastating. My father ran for Social Credit many years ago as he believed that things should be fair for the landowners. This is not fair. [Information Removed] |
| RRE5140 |
My husband just sent you an email from this address, I'm hoping that you also read this one because the wife and mother of this household also has alot to say. I listen to your public address this evening, how sad that you did not even do a live address (showed a lack of respect for your population). Now for my opinion. As small business owner I should inform you that myself like many other businesses involved with the oil and gas industry already have our lay off list prepared. We are just one small company-how many more will do the same and what is your plan to assist all the unemployed? How will the government assist them when they can no longer keep their homes. How does the government expect these ordinary people to pay for post secondary education for there children. what good will your values do for the next generation of albertans who will be moved and raise in another province. Oil and gas companies contribute thousands upon thousands of dollars into communities such as ours. Who will support non profit organizations when you have forced them to leave. who will be left to appreciate your decision. I'm not sure where you got your figures of albertans who wanted the royalty increases, I certainly don't know of anyone who was contacted. The trickle down affect will be staggering for all business. You spoke of new oppurtunities, thats wonderful but how many average albertans will actually be involved in nanotechnology. You further increase royalties and the lights will go off in Alberta. Now as a mother, how the heck will my children raise their families. How can they possibly afford to live in such a province where they no longer are employed. We moved here in 1979 because alberta was the place to be, the safe place to raise our children. Saddly I would now advise our children to head East where the lights will again be on. Now as a wife, How the heck will we pay our bills, make a mortgage payment and still be able to enjoy the quality of life that this province boasts to offer. Not happening that much is clear. I've got alot left that I would like to say, but I find as I type this I become more disheartened that this will fall on deaf ears. I have for several years been telling my husband that Saskatchewan will become the next Alberta. It's time you put your own personal and political agenda aside and listened to the average Albertan such as myself. If you can sleep soundly with your decision knowing that thousands of Albertans lay awake worrying about their families welfare-then sleep well. [Information Removed] |
| RRE5141 |
I was pleased to hear the results of the Royalty Review and surprised (and yet not surprised) at the response of the government. At one time, I heard the government say that it would accept the recommendations of the review and then, the next, I hear is that there is to be a review of the review - with public consultation (again!). I think you gave some very qualified individuals the responsibility to review this matter - accept the recommendation and proceed. Don't appear to be so "wishy washy" on this matter. [Information Removed] |
| RRE5142 |
The proposed changes contained in this report have me VERY concerned. I urge the government to take a step back, consult with Industry and other experts and find the best possible solution to the royalty regime. Perhaps it is time to update things however I fear that if the proposed changes go through unaltered we will see our economy head into a tail spin the likes of which we have not been seen since the Federal government implemented the NEP in the 80s. Please do not do this to Alberta, take the time to make the right changes. Thank you, [Information Removed] |
| RRE5143 |
I urge you to accept the recommendations of the Royalty Review Panel, which are very fair and reasonable within the context of the world oil and gas industry. With the proposed royalties in place, Alberta would still be a very attractive region to invest in. The negative response of oil company executives and international financiers to the Report of the Royalty Review Panel is entirely predictable, but they only serve the limited interests of their shareholders. These people do not represent a majority of Albertans. Oil companies and the financial investment industry argue that the proposed changes to the royalty structure create business uncertainty, which will deter investment. However, their argument should be viewed in the context of the variation of oil and gas prices over the past year or so. There is far more volatility in the oil and gas prices than is represented by the proposed changes in royalties. Moreover, recent increases in capital and operating costs, largely arising from labour shortages and the rush to develop Alberta’s resources, also dwarf the proposed royalty changes. Maybe a few companies will look elsewhere for investment opportunities, some will no doubt defer some investment for a year or so, but in this superheated Alberta economy a slowdown would enable the province to catch up with lagging infrastructure needs and help to stabilise costs, thereby enabling the same companies to develop the resources more efficiently. The Royalty reforms are well overdue and their prompt implementation would serve to help redress the scandalous cover-up of the findings of the previous Royalty review and failures in recent years to collect royalties due to Alberta. |
| RRE5144 |
I have been following the news stories regarding the royalty review. I am in favour of an increase in the 20% range as suggested in news stories. I seriously doubt the oil industry will falter if such an increase is implimented. One only has to pay attention to record profits recorded by all major players in the oil and gas industry to understand that since resorting to world pricing for Canadian oil and gas, the industries can easily afford to pay a fair share for "Albertan" resources. Too many times I have read news stories about the possibility that Canadians are gouged at the pumps. Too many times I have heard the oil executives claim that the prices paid at the pumps are fair. Too many times have I read that petroleum industries were recording yet another record year for profits, usually in the billions of dollars. You know those numbers better than I. Time to ensure that more of the money stays in the hands of Albertans and not a few over-paid execs. It is "our" oil after all, not theirs. [Information Removed] |
| RRE5145 |
Yes, I agree with the Report on Royalties. Get some of that oil/gas money into a future sustainability fund. This is a finite resource that is getting more expensive every year. Why the big hurry to sell it to foreigners? What will Canadians use to heat their homes in the future? American paper dollars? With Foreign National Government Industries now buying up our companies, the Middle East monopoly will be further extended. We don't have to be worrying about killing the Golden Goose as it looks like it is being bagged by foreigners and dragged away. The only time I received any direct benefit from the energy Industry was the one cheque that I received from Ralph.Other than that it has served to increase my Property Tax and cost of living. Our "Fair Share" is going up in smoke. Our water is disappearing. Slowing things down so that the hamsters can catch their breath would be a good strategy. Whatever you do, don't bring more imported hamsters into the cage. Mr. Stelmach, you were chosen because you were perceived as the weakest and most easily manipulated. Prove them wrong. The people of Alberta will notice. |
| RRE5146 |
I cannot stress enough how much I believe the government must follow to the letter the recommendations given in the royalty review report. Even if these recommendations are completely implemented the resource companies are still getting off easy in comparison to most other places in the world. Even if the resource companies follow through with their bullying rhetoric and pull out of Alberta our economy will go through a much needed cooling. Our (our being the people of Alberta) resources are not going anywhere and there are many other parties interested in our increasingly attractive natural resources. |
| RRE5147 |
Thank you for facing the reality that we have been duped into accepting substandard royalties on oil and gas. Let's consider what your policies will look like in 25 years: A corrupt government throwing money away left, right and centre, or a reasonable voice for the people it represents. If corporate investment wanes ("due to higher royalties"), it won't be forever. Oil is becoming more scarce and delaying some of these projects will lead to greater economic stability in the long run, a happier society today, and a fine monetary legacy. |
| RRE5148 |
The proposed $2 billion in royalties amount to approximately a $600 gain per Albertan/per year.....that $600 gain is not going to replace my salary (and your associated tax revenue) when the energy industry scales back their activity in this province and I lose my job (not to mention the addtional financial losses incurred from the reduction in value of my investments in Alberta based Energy Producers and Energy services firms) . If our royalty program is out of touch with the current commodity price environment, then perhaps a gradual, rather than step change is required. |
| RRE5149 |
In regards to gas production low prices make it difficult, higher royalties make it impossible. Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. This is too important for Albertans to get wrong. Wells you don’t drill don’t pay any royalty. |
| RRE5150 |
Given that the panel recommendations would keep Alberta's royalties far below the average (compared to other jurisdictions around the world), I strongly believe that fully implementing this report is the minimum we should expect. Anything less is a betrayal of the public interest. The decision in this matter is a test whether the premier and his party deserve to govern this province. [Information Removed] |
| RRE5151 |
I've just finished reading the review, and am trying to educate myself as best as I possibly can. I am very nervous about the decision the goverment is going to make, and I truly hope that they have Albertans best interests at heart. I am ONE of the Albertans that will suffer from the panels review if implemented. I am a[Information Removed]woman, who pays a mortgage, pays for a car, i pay taxes, and I pay for my groceries, my dog licenses, my house and car insurance, my heating, my electrical, my phone, my cable. How do I pay for all that [Information Removed]from their Alberta budget to invest it elsewhere. The price of my house will drop, and I will have to sell it, losing the equity I've worked very hard to pay over the years, and move to the STATES? I love Calgary! I love that it has become an exciting place to be. I love the mountains, I love the lifestyle I have. I can walk along the river with my dog, I can spend time with my parents, and my friends, but please make the right decisions for ALL Albertans. I just donated $500 to various charities, and [Information Removed]matched my donations. Think of the people and the animals who will benefit from this. [Information Removed]a customs broker... [Information Removed] top clients are in the energy sector. [Information Removed]works for a car rental company, [Information Removed] top clients work in the energy sector, [Information Removed]own a restaurant, and their regulars work in the energy sector, the list goes on and on. What I don't think you are seeing is... Alberta IS OIL AND GAS. We ALL benefit from it. The goverenement and the people may not be directly benefitting from the profits made by the energy sector, but the local communites ARE benefiting. Look at what EACH of the companies is doing in the areas they operate. Look at how many MILLIONS of dollars are being pumped back into the communities through sponsorships and partnerships!!! My company is VERY active in the areas they operate... but so are our peers. I look at what [Information Removed]is doing with local sporting assocations, what [Information Removed] is doing with the [Information Removed]Athletes and events... think of how that will impact our youth and our future. I find it very hard to believe that you will overlook what the companies are currently contributing. Let's put egos. aside and relize that it's about making the right, INFORMED choice. Let's work together to implement a royalty structure that WILL infact benefit ALL Albertans. It's not about getting a $400 cheque in the mail... it's about ensuring that we are all getting a regular pay cheque! |
| RRE5152 |
Premier Stelmach, As a "born and bred Albertan" I support the recommendations presented in the Royalty Review Report. I would encourage you, as the now leader of the Alberta PC Party to develop a wholistic, progressive, balanced vision for our province. Much has been decimated, quashed, silenced, and sold under Klein's leadership - everything from our resources to our level of democratic participation. Let us start to reclaim our control - and make decisions that are in our better interests, not sell them down the pipeline or give them away at the well-head. |
| RRE5153 |
I Totally agree!!! News from The Globe and Mail Wall Street to Alberta: Don't be 'so stupid' SHAWN MCCARTHY http://www.globeinvestor.com/servlet/story/GAM.20071005.RROYALTY05/GIStory/ 00:00 EDT Friday, October 05, 2007 After years of carefully cultivating an image as an investors' paradise, the Alberta government is getting a rough ride on Wall Street over proposed royalty changes that would significantly reduce profits for oil companies that invest in the province. Accustomed to dealing with political risk in places like Russia and Venezuela, investors and analysts are stunned that Alberta - which has sold itself as Texas North - has apparently taken such an aggressive approach to the industry that has spawned so much wealth there. "The Alberta government is doing a classic 'shoot yourself in the foot' strategy," said Fadel Gheit, an influential New York-based analyst with Oppenheimer & Co. "It's tried and true: If you really want to hurt your economy, start raising taxes on industries that are really basic to the lifeblood of your economy ... It's so stupid - I thought these people were more sophisticated than that." Mr. Gheit said energy investors will be wary about Alberta, at least until there is some reassurance that the province is not looking to drive down expected returns on investment through higher taxes. "They should attract investors, not repel investors. They should put out the welcome mat to bring more money into the province, and market themselves as the friendly, open-for-business place." That's exactly the message the provincial government has tried to convey over the years, as former premier Ralph Klein and a parade of ministers visited the North American financial capital to prospect for investment in the oil sands. Two years ago, Mr. Klein and representatives from several Alberta-based companies brought horses and riders from the Calgary Stampede to perform in front of the New York Stock Exchange. Mr. Klein met with The Wall Street Journal and BusinessWeek and Forbes magazines to tout the potential of the oil sands and the welcoming investment climate in Alberta. He also participated in a conference call with clients and investors at JPMorgan investment bank in which he promoted the "very attractive investment opportunity" that existed in Alberta. This past May, provincial Finance Minister Lyle Oberg returned to the city to assure analysts and investors that the new government of Premier Ed Stelmach was equally committed to a business-friendly investment climate. "There was never any indication there would be a move like this," said one American Canada-watcher who was at the lunch. In an effort to reassure investors, Alberta Energy Minister Mel Knight is scheduled to visit New York and Boston early next month - after the government has responded to the royalty report. At a Lehman Brothers' energy conference last month, Canadian companies like EnCana Corp., Petro-Canada and Canadian Natural Resources Ltd. presented their rosy prospects to a room full of investors at the Sheraton Hotel in mid-town Manhattan. They gave no indication of the bombshell that would be dropped less than three weeks later. Several money managers said in interviews that they are re-evaluating their view of Alberta in light of the proposed royalty changes, which comes a year after investors were hammered by the federal government's decision to end tax advantages for income trusts. "Any time somebody changes the tax regime or the regulatory regime in a meaningful way, it's a negative," said one fund manager, who spoke on the condition he not be named. "They have pitched themselves as investor friendly, and have sought out investment, and this isn't really the best way to do it." The province has yet to decide on a course of action following the review committee's recommendations. And the committee insists the industry will remain highly profitable under the recommended changes, that Alberta is now out of sync with other major jurisdictions on the tax take from its resources sector. Royalty responses Petro-Canada CEO Ron Brenneman said investment could be "severely impaired" if royalties were to rise to the levels suggested in the report. Talisman Energy Jim Buckee, who recently retired as CEO of the company, said Talisman would cut $500-million from its spending on natural gas projects in Alberta and move its investment to the United States and overseas. Crescent Point Energy Trust The small energy trust said it will move its entire $150-million capital budget to Saskatchewan in light of "uncertainty" about royalties. EnCana Canada's largest energy company warned that it would slash $1-billion from its investment in Alberta if the government adopts the royalties report. Canadian Oil Sands Trust CEO Marcel Coutu said that while there was "room for review" of the exiting royalties structure, "a burden must be chosen that will optimize the eventual value of this resource." Canadian Association of Petroleum Producers The organization said the "panel ignores the real costs facing the industry," and argued that oil companies should be allowed to see how the calculations were made. © The Globe and Mail |
| RRE5154 |
My advice to the Premier is to actually go out into the oil patch and talk to the " average worker" and get their thoughts of these changes in royalties. I then challenge him to hold an referandum(can use the internet with authorized checks/balances) and get an opinion. Alberta has never seen a economy like this since the 70's. If the Premier is only thinking about his political backside on the backs of working people...I would truly vote " Liberal " to get rid of him and his ilk that think out of the reality of what is truly happening at ground level in Alberta!! I have voted conservative for over 35 yrs. and intelligent balance and working together with the oil companies to keep them interested and INVESTING IS KEY!! NOT A PERSONAL POLITICAL AGENDA THAT WILL RUN OFF THE RAILS!! AND DESTROY THE CURRENT ECONOMY!! [Information Removed] |
| RRE5155 |
I am not overly informed on this process whatsoever. However, it seems to me that Alberta is one of the richest provinces already. Why do we need to implement something that will so drastically negatively impact our economy. As someone whose household finances rely so heavily on the oil and gas sector, I do not take this lightly. Already, as a result of this proposed royalty, we have seen our housing prices drop, our contract work slow and witnessed many of our associates attempting to 'dump' their businesses in fear of what's to come. This is simply what has occured based on what's been proposed. I can't imagine the impact that will occur if a royalty program is actually imposed. As a government I would hope that you will do what's best for ALL Albertans. We are a rich province already - why on earth would you send us into a recession with this program. Leave it as it is. It works. And it has worked for years. Don't leave a legacy as the government who increased unemployment, decreased our economic stability and created the new mantra of the Alberta 'Dis'Advantage. |
| RRE5156 |
I've had the chance to review the Royalty Review Report. In my opinion, the recommendations, while a step in the right direction, are still conservative. Complaints by the oil and gas industry that the report is extreme and draconian are ludicrous. I appreciate Premiere Stelmach's initiative to review Alberta's royalty policy and it would be terribly disappointing to see him and his government cave to the pressure and rhetoric of powerful industry players. Please stand your ground! [Information Removed] |
| RRE5157 |
To the royalty commission Review Panel, Brinkmanship is a dangerous game. The Golden rule: He who has the gold rules! Envy is the revenge of mediocrity. When an entrepreneur, be it an individual or a group, has a vision and executes that vision within the ground rules laid out at the beginning of the agreement(s) to go forward, it is imperative that regulator or government actions be not seen as punitive but fair and in the interests of both parties. It takes the wisdom of [Information Removed] to perform that function with the care prescribed through the Fundamentals of Justice. The flag has been run up the pole. Let us see who salutes. The royalty tax grab as it will be seen, becomes equivalent to the actions of a third world despot. The Premier of Alberta may well take us back to the [Information Removed] 80's where the oilsands were killed except for a few majors. The timing couldn't be worse. I'm an investor in the oilsands and have been for a long time. I'm not making scads of money, contrary to popular belief. I've invested in projects that will take years to come to fruition and billions of dollars invested. Am I ticked? You bet I am. This decison lacks foresight, it is the work of [Information Removed]crippling smaller companies that don't have the deep pockets the majors do.I am rethinking my investment strategy in this space and may well pull out of the smaller companies I have invested in. This is already happening if you investigate share prices. This decision has the makings of a recession in my view. [Information Removed] |
| RRE5158 |
We should be receiving increased royalties & I fully expect that Premier Stelmach will ensure that happens. [Information Removed] |
| RRE5159 |
The essence of the success of the development of our province’s natural resources has been partially founded on a stable and equitable royalty system - a system that was likely not well known nor understood by the average Albertan. The current system worked to encourage development and I welcome its re-evaluation. However, I do not believe the recent recommendations of the Royalty Review Panel fully evaluated all the benefits of natural resource development and market conditions. This is evident in the market response and company statements - indicating the potential withdrawal or reduction in spending within our province, and hiring freezes have been initiated. Companies choose to concentrate their efforts within Alberta, or they can disperse them elsewhere on the globe. Economic trends driven by political and public will, affect this decision process. A double-edge sword has been forged by the Panel – be careful how you swing it! Regards, [Information Removed] |
| RRE5160 |
Ed's making a big mistake, the next NEP, this hasn't been thought out that well and the ones that will benefit will be BC and Saskatchewan. The drilling programs for them will increase from money's being diverted to them from Alberta planned projects. |
| RRE5161 |
I want to be advised when this report will be avialble to the public. [Information Removed] --------------------- Thank you for visiting the Alberta Government feedback web site. Following is the response to your question prepared by Energy [ENERGY] On 2007-09-20 07:05:00.0 you wrote: The Royalty Review Panel Report refers to a study by Pedro van Meurs on comparative fiscal regimes for conventional oil and gas. On the ADOE website, I can only find the van Meurs study of on comparative fisal regimes for oil sands. How can I get a copy of the Pedro van Meurs report on comparative fiscal regimes for convention oil and gas? [Information Removed] Energy responds as follows: This report is currently being reviewed by government. Thank you. |
| RRE5162 |
Wouldn’t it be nice to not be held over a barrel by all the American and other multinational petroleum corporations every time there is mention of them treating Alberta’s oil fields like their third world discovery? It’s simple really, if we could grow some politicians that weren’t jellyfish! A little spine would go a long way in solving Alberta’s possible petroleum woes. The oil companies seem to feel they should be immune to the same inflation that is slowly eliminating the middle class in Canada. Fine, but, someone should point out to them that they are here by our generosity, as opposed to their greed, and as we are not a country that has been subjugated and colonized by America, yet, we do have the right to do what we wish with OUR resources. If there are foreign controlled investors in our oil patch that threaten to reduce or eliminate their current forecasted development, warn them that if any reduction is noted in five years, all their interests in Alberta’s petroleum industry will be revoked and put back out to tender with their exclusion from any bidding. They may liken us to Venezuela, but no sleep should be lost, since after all the whining and moaning, they’re still buying oil from Venezuela at the new fair price. So, come on Premier Ed, let’s see if you are a true Albertan, or just another pro-American spineless politician like all the useless dross we support in Ottawa. |
| RRE5163 |
I have been employed in Alberta’s Oil and Gas industry for the past 25 years and have voted conservative all my life. The Federal Conservatives reversal on Royalty Trust taxation was my first example that Conservative Politicians are as inept and dishonest as the Liberals. If the Stelmach government harpoons Alberta’s oil and gas industry and with it, Alberta’s economic boom through the proposed royalty changes, I will definitely not be voting Conservative in the next provincial election. Shame on you, give us back Ralph Klein. |
| RRE5164 |
The purposed changes to Oil and Gas royalities in Alberta are bad idea. If the premier implements the recommendations as outlined in the Report of the Alberta Royalty Review Panel he will lose my vote and more importantly my confidence the current government. The current "Gas" economy does not support an increase to royalties. Reduced capital spending in our province by the industry will weaken our prosperous province. I urge the premier to reconsider the recommendations made by "HIS" panel. |
| RRE5165 |
please , please provide the leadership that i expect from you as my represenitive, unlike my local mp. take on the touygh decisions and increase the royalties, not for you nor i but for our children. so me that my elected government actually has a long term plan and that we aren't governing to the next election and that you truly understand what sustainable development is. once we start down this road, who knows, we may be even will start teating our environbment with the respect it deserves. |
| RRE5166 |
Why would I support an increase in more OIL ROYALTIES for the province when we have HOMELESS PEOPLE LIVING ON THE STREETS AND RENTS THAT WE CAN'T AFFORD DO YOU THINK THE PEOPLE OF ALBERTA ARE THAT STUPID ED, YOU GUYS WOULD BE JUST HELPING YOURSELVES OR GIVING YOURSELVES RAISES IN PAY AND TO [Information Removed] WITH THE UNDERPAID, LOW INCOME ALBERTANS. IT'S ALWAYS THE SAME OLD CRAP WITH GOVERNMENT, "TO [Information Removed] WITH PEOPLE THAT WORK THEIR [Information Removed] OFF FOR MINIMAL WAGES" THERE ARE TOO MANY PEOPLE RIDING ON THE BACKS OF THE UNDERPAID. |
| RRE5167 |
I am a Grade 9 student and I owuld like to submit a entry for the royalty review concerning my future. you should accept the royalty and take the money to give school, healthcare, and the people of alberta. Oil may run out eventually and there will be no money left to give to the province so you should decide to give the money to alberta now and then have the money for the future than have it now so that we will have money for after, when we need ot amd not now. Dont give the money to the oil companies give it to the province of alberta for more important things like bridges, healthcare, schools, and roads. Thank you for this approtunity, and I hope you accept my point of view. |
| RRE5168 |
I hope the Progressive Conservatives have the courage to not accept the Royalty Report as presented. Working in a business that sees the benefits from a strong Oil and Gas economy, I do not want to see an economic slowdown. My vote will continue to be for the PC's if they reject this report. |
| RRE5169 |
Before any changes to the royalty sctructure should be considered - all Albertans must be made aware of the negative impact to the ecconomy including their job prospects. The poles may show the the majority of Albertans are in favor of the proposed changes, but they must have the facts before they can make an informed decision. Call an election and allow the facts to get out to the voters - you may find a total revers in the poles - and a new government. [Information Removed] - A working Albertan and a voter. |
| RRE5170 |
http://www.arcfinancial.com/images/stories/pdf/RoyaltyThoughts-LettertoMLAs.pdf I agree with the thoughts in the article with the link above. I have been employed by [Information Removed] for 1 year as a Recruitment Specialist, we have just cut our distributions for a second time and I am very worried that the company will not need my recruitment services if the recommendations in the review report are implemented. Taking a bigger cut may really hurt the economy. [Information Removed] |
| RRE5171 |
Some reports have Alberta giving Ottawa in excess of 15 billion dollars more than we receive back, instead of risking our whole future on the greed of oil companies can we not keep some of our 15 billion. There is no doubt oil companies have to pay more and they have said a flat 20% is acceptable, just not another 20+% on what they already pay on older wells, and those older wells are where we get our gas from and 80% of maintenance work for small companies. After 20 years in the oilpatch I have learned one thing, never underestimate their greed. Why not a 15% royalty hike and 15% held back from Ottawa that leaves us alot more in Alberta. |
| RRE5172 |
If Alberta should get more money from the oil companies it should go to cleaning our enviroment, which they have not do enough, all you have to do is look around, look at our rivers you think there CLEAN, not on your life. |
| RRE5173 |
Oil and gas is a finite resource. The government of Alberta has a duty to acheive the highest possible return for that resource to the people of Alberta. Period. The complaints of the various corporate elite should definitely take second place to the people. Raise the royalties to a resonable level. There may be a short term loss, but this province could use the cooling off time profitably to catch up to the projects already underway. |
| RRE5174 |
Things are going better now than they ever have. The saying goes, "If it ain't broke, don't fix it". I'm not in the oil patch but the prosperity I am enjoying is very definitly tied directly to the oil patch, in other words we Albertans are very much benifiting with the current royalties. |
| RRE5175 |
I believe that implementing the Royalty Review's recommendations in full will be disastrous for Albertas and Canada. While it is important for private enterprise to share the wealth and give back to the community, I believe that implementing the recommendations in one fell swoop will result in the loss of jobs and livelihoods for the tens of thousands of people who depend directly and indirectly on the oil and gas industry. With the costs of production rising continuously, it is only reasonable to take stock of the situation, fully understand the ramifications on the provincial and national economies and take a decision that best reflects the interests of the various stakeholders |
| RRE5176 |
----- Original Message ----- From: [Information Removed] To: Ed Stelmach ; Lyle Oberg ; Rob Renner ; Leonard Mitzel Sent: Thursday, September 27, 2007 8:42 AM Subject: Oil Royalties Premier Mr. Ed Stelmach Oil Minister Mr. Lyle Oberg MLA Mr. Leonard Mitzel MLA Mr. Rob Renner I am an Albertan with a couple of businesses that deal directly with the oil industry with approx 55 employees. [Information Removed] [Information Removed] We are currently experiencing a fairly severe down turn in our industry. I have been hearing from several Oil companies (customers) that if your proposed royalty change goes through as proposed they will be cancelling even more wells etc. We do not need a further slow down at this time, the trickle down effect from our current slow down has not fully reached all Albertans, but it will. Any further slow down will put our industry and I believe our province in a recession. I agree we need to redo the current royalty structure, but need to do it carefully and slowly as to not deepen our current slow down. Respectfully [Information Removed] |
| RRE5177 |
I find the results of the Alberta Government's Royalty review difficult to understand. Al;berta is one of the most mature and highest cost basins in the world. We cannot compare our royalty take to othere countries without factoring in the cost of finding and producing in those countires. I do not undestand why our government set up this commission. Is it not the job of our government to establish the fair royalty rate by looking at all of the factors which go into it. If it is so attractive here, why is not every company in the world here reaping the benifits of this low royalty rate. It is up to our government - not a commision - to establish a fair rate which brings economic prosperity to all Albertans. [Information Removed] |
| RRE5178 |
My employment is in the oil and gas sector. Although I live in Saskatchewan, our head office is based in Calgary, Alberta and these proposed changes in the Royalty plan will directly affect our company and employees to the point that thousands of jobs could be lost - including mine. Please consider all of us "little people" in this decision, with one stroke of the pen your government could cause a lot of people a lot of economic hardships. In a province that has so much, could not the government ensure the economic viability of the economy by other means than over-taxing the main contributor to the economy. The oil companies are re-investing their growth back into the province's economy, as is each one of our employees in Alberta. The oil and gas sector has already taken a substantial loss of revenue over 2007 with decreased utilization and higher running costs, and these proposed changes will harm everyone involved - except the coffers of the Alberta Government. |
| RRE5179 |
I would like to pass on some advice on this topic to Premier Stelmach. My advice is to get our Fair share. As far as I am concerned the royalty review does not go far enough. We should also be trying to recover some of our previous years gifts we have given to the oil companies. I am not concerned about some fake rally and if the oil workers want to talk about some lost jobs or lost wages I remind you that in the 1990's when our old premier (who definitely was not a steward of our province) cut all sorts of jobs and lowered salaries of all public employees. If our oil revenues would have been more reasonable the province would have had the money they needed and all of these hard working people would have not have had to take the hit. Premier Stelmach should not be fooled by these greedy companies who are trying to threaten job losses. Oil is a limited resource. There is no place for them to go. I hope the premier is smart enough not to fall for this bluff. The best way to show them we mean business and act like we are the owners of the oil is to raise royalties BEYOND what is recommended. Thanks for listening. |
| RRE5180 |
Not only should be accept the royalty review's recommendations completely, the province should also go above that and raise royalties to the level suggest by Auditor General Fred Dunn. Call the oil companies bluff. They are not going anywhere, and even if they do, 'touching the break' will only improve Albertans' quality of life at this point. We're depleteing are resources too quickly and this is having devastating impacts on the quality of our air, water, land. In addition, the cost of living in Alberta is so ridiculous that young people doubt they will be able to afford a house in Edmonton or Calgary. We shouldn't be pushing these people away. |
| RRE5181 |
While I concur that royalty revenues should increase, it is so important that the government not bow to public pressure to do it quickly as the ramifications of how the increase is implemented will be very far-reaching. I ask that time be taken and experts in the oil business be listened to in order to make the changes without precipitating in damage to the industry and population at large. Unfortunately, with the media involved the public is resonding without enough information. thank you. |
| RRE5182 |
I manage a medium sized oilfield service company in central and eastern Alberta. Some 130 employess are already feeling the brunt of low natural gas prices. Most of our field staff are paid on a percentage of the work the company does and before any talk the royalties being reviewed we are sitting at @ full 35% downturn in our work load. This loss in revenue has forced us to be unable to match the soring costs of living in central Alberta. So without raises the field personel are up against smaller pay cheques in a high cost enviroment. We need to have investment dollars coming into Alberta and with the dollar at parity with the US dollar (60% change in value from 2002) it is already hard enough to convice people why to invest in Alberta, the royalty changes certainly seem to already be affecting invetment confidence. One of our clients announced to us just this morning that one project we had been working on will be shut down until the results of the royalty review are finalized as they are unsure of the economics to proceed. As a tax payer who pays alot of tax and reaps the benefits of living in an oil rich province I believe we have it very good and need to sustain the inevstment climate ... we don't want to be where the US is in the overall investment climate may local economies there are simply drying up. Please carefully check the numbers to be sure we as a province do not trip over dollars picking up nickles!!!! |
| RRE5183 |
The Alberta government knew at least three years ago that it was losing royalties from energy projects such as the oilsands, the province's auditor general said. [Information Removed] came down hard on former energy ministers and their staff in his annual report, released Monday, saying the process for collecting royalties needs to be more transparent and accountable to Albertans. The government itself has identified roughly $1 billion per year in royalties that were owed by energy companies but were never collected, [Information Removed]said, adding that the principles of transparency and accountability have not been followed when it comes to oil and gas royalties. |
| RRE5184 |
i do not agree royalty review report |
| RRE5185 |
It appears the oil companies in Alberta have the lowest royalty costs in the world and the average person in Alberta doesn't gain a thing |
| RRE5186 |
I will admit I am not fully in the know on this whole topic, but in the last few days i have received alot more information from the Oil side... and I would be alot more comfortable if my government took more time to assess this whole situation with alot more study and depth on the consequences versus what the media is saying that has the average guy like me that doesn't know enuf, potentially screaming at Big Oil. Please consider more study before acting....if you can fiddle around with the stupid gun registry for as long as that took and the money it took, i think you can spend some time looking at how this will ripple effect all Albertans. I need to know it is worth the money you hope to recapture....and i don't understand how this 2 billion is so important when my government has billions showing up in surplus each and every year.... i make my living in the lower sections of this industry... please consider me and my family before you fast track some big decision with far reaching reactions. Thank you. |
| RRE5187 |
I have prepared a long, researched submission setting forth and discussing the 6 deficiencies in the Report. I will be mailing this letter. Unfortunately your system would not accept my letter. The noted deficiencies are: 1. Apparent Failure to adequately appreciate the pivotal role Oil Sands exploration, development and production is playing and will play in Alberta’s future 2. Failure to appreciate the geological complexities and challenges of Alberta’s Oil Sands; 3. Failure to appreciate diversity in the Oil sands and the technological complexities and challenges of producing from Alberta’s Oil Sands; 4. Failure to propose a Royalty and Tax Structure which differentiates categories of Oil Sands reservoirs 5. Failure to propose an Oil Sands Royalty and Tax Structure which adequately rewards explorationists and developers for their multiple risks 6. The Severance Tax is an Unnecessary and Duplicitous Gloss on the Existing Royalty and Tax System [Information Removed] |
| RRE5188 |
I agree with the content of the report. I believe that[Information Removed]is engaged in fearmongering for the sake of their members bottom line. The reality of the situation is that the oilsands developers have been keeping their projects in "startup" mode to reap the benefits of a lower royalty rate. Further, if other countries royalty raising experiences are any indication of what will happen in Alberta, you'll see all the developers play ball and keep their bottom line intact through other measures. If the fallout from this happens to be somewhat slower growth, so be it--it would be nice for the province to have some time to catch up on environmental legislation for these uber-polluters and give northern infrastructure development time. Premier Stelmach, give Albertan's and Canadian's their fair share, slow down growth, and protect our environment. It's the right thing to do! |
| RRE5189 |
I contract for an oil/gas company, and have been told that if the royalties are increased they will not be going forward with their drilling programs. Friends and family have also heard the same from the companies they work for. One company I contract for has talked about downsizing operations and job cuts. A royalty increase would undeniably push the oil companies out of Alberta, causing most towns to suffer on a very large scale. I am certain the large companies that have publicly talked of moving to other provinces are not bluffing. |
| RRE5190 |
To Whom It May Concern My name is [Information Removed], and I've been working in the Oil & Gas field for 7 years now. I have much concern with the royalty increase for I am married with two young boys. I have finally achieved level of employment where I can make a living & being a part in my families life that does not consist of 1/3 of the year. I feel that if Royalties are increased by 20% I'll lose everything I've worked so hard for. Such as my home value will drop, therefore having a mortgage too much for the value. Loss of employment, then if I find new work, chances are it will not cover my living cost that I currently pay. I am not a man of outrageuos debt either, I owe what I need to owe. If I were to start over it could be devistating to my family & myself, also it could take many years to recover my losses. I, along with many families in this situation, would have the same affect. It's not fair for the government to make this adjustment, for some many of the hard working Albertain's in this province would suffer dearly. This move will only put Albertain's in a depression era, much like Saskatchewan when I left. Thank You [Information Removed] P.S - I vote against this move to increase Royalties. |
| RRE5191 |
It is about time the Oil Patch started to pay its FAIR SHARE! |
| RRE5192 |
I strongly supprt the recommendations made in the Royality Review Report in terms of the need for the system to be updated to reflect current market realities and specifically that Albertans collectively through additions to government revenue receive their fair share. Alberta's royality structure should be the same as that of any developed country. The arguement that increasing the economic rent for resources will damage our economy is not valid and in fact an increase in this will provide government with another tool in regulating excessive growth, and spread it and associated prosperity over time. In addition it would allow us to better balance the issues of quantity and quality of life, particularly with respect to management of the environment. Additionally, it also should provide the tools to provide incentives for value added downstream investment within the province rather than the current system of exporting the industrial development that this would attract. As a final point, this landmark report and the message it should send to government is that it needs to begin to manage our resources in our interests not vested interests who would rather extract and ship to maximize their returns, at our expense. [Information Removed]Coleman, Alberta |
| RRE5193 |
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. |
| RRE5194 |
I"ve worked in the patch for 20 years & it is as bleak as i have ever seen it. Any royallty hike on natural gas activity will ruin the industry. Look @ the rig count. Everyone is already starving. If Stelmach does this he is nothing but a farmer who has no bussiness running this province |
| RRE5195 |
The resources in this province are all Albertain's. We shouldn't be just giving them away. The royalties should go up. Would it really be so bad if the oil companies did slow down production and exploration. The oil is not going anywhere and it will just be there for more future generations. I really believe that this insanity boom should slow down. Labour shortages, obscene wages that small buisness can't complete with, health care burdens, housing shortages....shall I go on. These are all the results of the uncontrolled oil boom...Alberta advantage??? |
| RRE5196 |
I don't want to reject the Royalty, but to delay it so it can be reviewed and ensure that accurate data is being used for the calculations. The government claims they will be collecting about $2 billion extra revenue my company calculates it will be about $7 billion so somebody is not using the right figures. If the current calculations are correct these Royalties will have a dramatic effect on our provincial economy as a whole. All the support industries which are the basis of the Alberta economy will be effected that will indirectly effect everyone in the province. We have become a spoilt province our children expect the life style we currently see, Problem is most people don’t know where the money comes from most have forgotten our roots are based in industry and the oil industry has been one of the main stays for the past several decades. The big picture is that we will see a 40-60% reduction in drilling and exploration of Natural gas mostly in the Grande Prairie area for me and my family they expect to see about a 20% lay off in production and support staff but of course the service and support industries will be the first affected. Level the field ensure correct and current data is used and then use a reasonable royalty so we don’t destroy the industry my family and I depend on for our lively hood. [Information Removed] |
| RRE5197 |
I certainly hope that this has bee given the proper Due diligence as the Alberta Goverment coppers have never been as healthy as they are today and yet we are on the thresshold of jeprodizie that ......for what greed! please becareful when your messingabout with the livleyhood of many Albertains |
| RRE5198 |
As someone who has worked in the Oil & Gas Industry for 25 years, I have seen first hand how difficult it has become to find substantial accumulations of oil and gas, especially deeper wells, in the [Information Removed]. As the reserves become smaller per well and the fact that costs have made our basin the most expensive in the world it becomes obvious that Oil & Gas companies in Alberta are barely making a profit. Inspite of those facts, the Oil & Gas Industry still plows most of the profits back into the Alberta economy. Add some of the onerous conditions that the Royalty Review wants implemented then you will see a very large number of comapnies decide either not to do business in Alberta anymore or companies who will defer spending anymore capital in Alberta until they can figure out if they can make a profit. These comapnies will obviously not require the level of staffing they are currently at so there will be the potential of significant layoffs which will unleash the typical trickle down effect of reduced spending, real estate slumping, dissatisfaction with government, etc. I believe that this government should tread VERY carefully with this Royalty Review and consider working together with the industry to come up with a "FAIR" royalty regime for everyone. At a minimum the government should eliminate some of the more onerous issues the Royalty Review recommends: Fiscal terms for existing projects should be grandfathered as they were negotiated in good faith. Royalty holidays for deep (>2500m) gas wells should be maintained or there will be no deep wells drilled. Thresholds for sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs. The Oil Sands Severaqnce Tax should be reconsidered Thank you for the opportunity to be heard. Respectfully [Information Removed] |
| RRE5199 |
At the end of the day it is all about Net Present Value of the project for the producer. The question that you need to evaluate is the risk (yield) that the producers are considering, the oil price tendancy over period x and if the NPVis still positive after you've added the Royalty. As you know this is a rich province with lots of growth and lots of job at stake. Balance for every stakeholder is the key to get a win-win resoltion. [Information Removed] |
| RRE5200 |
The royalty recomendations, if implemented, will effectively cripple Alberta. Granted, big oil has a ton of cash, but its not they who will suffer. Its the thousands employed in the oil and gas SERVICE industry who will be the first to feel the hit. Those who work for the energy companies will be ok for a while. But its the electricians, instrument techs, industrial mechanics, welders, pipe fitters, mechanical labouers, service and drilling rig crews, surveyors, and the hundreds of supply companies that support these service companies that will feel the immediate impact. Oil companies will instantly cut spending and the first thing that will be cut back is the service companies. Alberta currently enjoys a 'fair share'. We're the envy of the nation. Implementing these changes would cripple our boom economy, turning us into another Saskatchewan or BC. The oil and gas doesn't stop at the border, it goes into these provinces a well. But oil companies don't want to be there because of their government tax sytems. Don't ruin us. Don't be greedy. [Information Removed] |
| RRE5201 |
It seems to be not in the best interest of Albertans to implement the new royalities program. By over taxing the oil industry, the oil companies will take their business elsewhere in order to make their projected budgets. If the oil industry leaves Alberta, it will impact Albertans in all areas of business and life styles. Alberta will become an undesirable place to live as people and the economy suffers through the implementation of this new program. I hope that the government will take time to reconsider the Alberta Royalty Review Panel's report. It will not be an economical benefit for Alberta and I would like to see Alberta continue to prosper. [Information Removed] |
| RRE5202 |
I have worked in the oil and gas industry in Alberta for the past 40 years.I was one of many Albertans that lost everything I had worked hard for when the N.E.P. was introduced in the early 80's.I'm asking that you please do not make changes at this time to the royalty structure. I feel strongly that it requires further review, as a native Albertan i'm asking please don't let us loose once again, it s to late for many of us to start over. |
| RRE5203 |
Does your royalty review include the price paid in land sales by the energy companies? I see taxes and rolalties added together but no mention of the money paid to the government through land sales. |
| RRE5204 |
Leave Alberta and take the [Information Removed]with you,.I quit the oil patch after 25 years because of having to work with un-trained dangerous people that are inexperienced.Safety is a joke. I'm about to hit the web with hundreds of photograps i have taken over the years of oilfield accidents that have been covered up or kept quiet by oilfield companies. I'm going to make it my job to tell the people of the world what you don't and show them what's really happening out there. [Information Removed] |
| RRE5205 |
new royalty proposal will harm all of our Albertans, once our dragon head--oil and gas business suffers cold. |
| RRE5206 |
Simplification of the myriad rules regarding royalty rates and how / where royalties are to be applied should the key focus of any Alberta government change to royalty revenues. As citizens of Alberta, our income taxes can be easily declared on a single page. So therefore when it comes to ensuring "Alberta's Rightful share" is properly calculated and the revenue submitted to the government, the process and the form should be clear and unambiguous. Transparency and clear language should be paramount. This is an issue of execution and should be dressed promptly. The Ministers responsible should step up and clear up these issues of how the royalties are to be calculated and close any and all ambiguous loopholes. As to how much Alberta deserves - this is where rhetoric is going to be amplified and factions will try to drown out others of opposing views. I am sure that the Legislature and the Ministers will come to some agreement that will not satisfy anyone particularly well, but that's the nature of democracy - and everyone should be looking for the compromise that offends everyone the least. The issue of "how much" is quite rightly a political issue and needs to be discussed and a free and reasoned vote in the legislature should clear up this issue. Ensure that the rules are fair, Ensure that the methodology of collection is transparent, Ensure there are sufficient carrots for current and future investment. |
| RRE5207 |
Two things.....'If it ain't broke don't fix it", and why can't government learn from the past. Please keep Alberta a great place to live....can the idea of the proposed royalty. |
| RRE5208 |
I think it is about time the profits are shared in a fair manner, our whole infrastrucure has been abused at the hands of fewer which hold the wealth. It is time that we take our share so that when everything is gone at least we have some form of investing in future "clean technologies" to emerge into the next century. |
| RRE5209 |
I do not understand why the Setmach government thinks that it is so much smarter than the previous Conservative govenments. We did not elect a different party - so why do they feel the need for massive reform. The Royalty Review Report is based on flawed information - as admitted this is a very complex issue - so why such disregard to previous agreements. Why does our own government want to destroy our economy? In reponse to this wonderful report we have seen a memo from head office to prepare for permanent job reductions. This is not a publicity stunt - it is not public knowledge - it however is very real and affects long term employees in an industry only indirectly related to the oil industry. How will this affect all those people in the service industries already hurting because of the low gas prices and the high dollar value? I suspect that a vast number of voters do not understand the landslide effect this can have. I do know however that there a alot of well educated informed young people who are very concerned with possilbe cuts, as they try to manage student loans and massive mortgages. Is the conservative government planning any support for those people likely to loose their homes? Or will you just blow them off as they scramble to find employment elsewhere? I have not left my email address as I have read your arrogant responses to other peoples' concerns and I just don't need that kind of aggravation.. This email is to advise you that you as voters you no longer have our support. [Information Removed] |
| RRE5210 |
This royalty review is going to cause another 1980 recesion if the province thinks they're going to take a bigger piece of the pie. The data they're using is out dated and the cost of operations is much greater then those countries that they're being compared with. This is not going to work and if it passes then drilling will almost stop and 60 to 80 thousand jobs will be lost in less then 4 months... Don't be so foolish. Oil companies are already cutting back on drilling by 1/2 billion dollars even before the province decides to take more. Once passed the company will decrease drilling by an additional 1/2 billion dollars or more. |
| RRE5211 |
Having worked long enough in the oil patch - I remember graduating from Uof C in geology in 1986. There were precious few jobs and I was out of my preferred industry 5 years after graduation. Needless to say I was not happy that jobs were not available after considerable effort was put into my education. The past can repeat and I feel that a significant increase in royalties will cut investment and result in layoffs. New graduates and vets alike will suffer and I feel it is the governments responsibility to demonstrate that the job market in Alberta will not be affected. The royalty review panel has utterly failed in addressing the economic fallout of their recommendations. Please consider the effects on oil and gas investment carefully, for my job depends on it. |
| RRE5212 |
Raising the royalty rate will result in a significant loss of capital investment. With returns on capital being some of the lowest in the industry due to the maturity of the basin, an increased royalty rate will result in fewer projects meeting the return threshold. Alberta already has seen a significant increase in royalties due to prices which should be sufficient enough. An increase in the rate, coupled with a projected decrease in pricing could be fatal to the Alberta energy industry and have far greater long range inpact than the short term mentality being demonstrated by this proposed increase in rates. Also, how is this increase in rate any different than the Venezulean or North Sea situations where the rules are changed mid-stream? Alberta government credibility is at stake here. We are blessed as Albertans to have this resource and an industry that is willing to work constructively with the people of Alberta - increasing the royalty rates in my opinion betrays the industry and the people. |
| RRE5213 |
If its not broken why is the Alberta government trying to fix it! The economy is already on brink of recession. Keep the royalties as they are, or our Alberta and Canadian economy will make a nosedive. |
| RRE5214 |
I don't believe the royalty review report's suggestions should be implemented in Alberta. The full cycle economics for the well being and future of Alberta are best served by the current fiscal regime, where the province benefits from increased corporate income taxes of the increased profits during these higher commodity prices. Never take away the incentive or opportunity for a commercial company to be more profitable. If the majority of the royalty review panel members had placed their financial assets at risk in development and exploration projects in oil and gas, as compared to less capital intense industries like forestry, then I would have given their suggestions more credibility despite their economic flaws. Lastly, do not ever compare worldwide royalty structures, since we have nothing to do with socialist govenments and areas without a chance for a thriving industrial development for a strong future. Think Alberta. Thanks, [Information Removed] |
| RRE5215 |
Having read every single word of the royalty review report, I am adding my comments to the Premier: Sir: If the nastiness and the threats of Big Oil cause you to back down from protecting we CITIZENS and OUR resource that they are shipping to the States, this we will remember come Election Day. If no one else, at least YOU need to be protecting our interests. Clearly, you did NOT do this when you sat in Klein's Cabinet so will you do this now that YOU are Premier? Your response will be enlightening, no doubt. Best regards. |
| RRE5216 |
I beleive in the province and the people getting their fair. However, there is a delicate balance between encouraging the oil&gas business that drives the province and maximizing royalty taxation revenue for the province. Based on what I have seen, better analysis has to be put into your study and it should not be politically motivated to encourage votes from a large number of people not directly in oil and gas. I think a royalty hike will effect the future of the province and will take it a long time to get the trust of the international oil and gas companies as a place of investment. On the other hand, I do agree with a change to the oilsand royalties as it was left too low to initially encourage investment. It seems like the oilsand business has matured and needs a different royalty structure. I am looking forward to your reply. Brian Majocha |
| RRE5217 |
Mr. Stelmach, As you get ready to make your television appearance to Albertans on the royalty review report on wednesday, I have decided to share my thoughs on the issue facing every person in alberta. Whether they are the executives of the oil companies or very small business owners like my self, we are all going to suffer with the increase of the royalities paid to the Government. My husband and I have a rental property in [Information Removed], which I might add worked very hard to get. and we have already lost $500.00 due to the renter is employed in the oil and gas industry there ,and has not worked due to the pending announcement my you. These people have small children and and as parents we had no option but to give then a break in the rent and worked out a plan to have them pay the rent in instalments until work is available for the husband. They are living right now on the income of one. It is the people in the small oil and gas towns that will be affected first by what you are planning to do. You, as a person who is from a small town as well, should know that it is the poor working class that is layed off first and face hard times. My husband has been in the industry since he graduated from university and, we have seen the good days and the bad days in the oil patch. We have gone through layoffs and very uncertain times and it seems you want to kill the goose that is laying the golden egg and have Albertains back on the unemployment line. and small businesses closing because they can no longer afford to pay their employees. I don't think you realise how hard it is to work in the oil patch when it -40 and working outside.....you should try it sometime. We have two sons, [Information Removed], and they have both agreed that Albert's oil and gas industry is not for them and with what is happening right now they are considering not living here, as the future is uncertain with you as leader of the province. You stepped into big shoes ,when Ralph Klien resigned and this not the way to treat the oil and gas workers of Alberta. Come election time you can reast asure tha I will not to have to think twice about voting for you! [Information Removed] |
| RRE5218 |
Worry about jobs. |
| RRE5219 |
Premier Stelmach has a chance to make a significant positive impact for himself, his party and the people he represents. I voted PC in the past election, but I am considering switching my vote to a green-friendly candidate because I feel Alberta's environment is being raped by industry. Past cabinets have been complicit in greasing the skids for industry, and I want to see the politicians stop thinking of their post-politics employment, their party loyalties and their own careers and represent the interests of the people who voted for them, not those of corporations. The big corporations are engaged in a massive smear campaign to discredit the royalty report, threatening to leave or not invest. They're asking Albertans to sympathize when they're only making 3 billion dollars profit per year instead of four. My heart bleeds for them. I heartily applaud their threats to leave, and ask our representatives to show them the door. Unfortunately, I don'think they'll go. Our oil, bitumen and natural gas took millions of years to form, and if we follow our present course, our province is going to be a primary means of returning most of it to the atmosphere over a period of just several hundred years. Does Premier Stelmach want his legacy to be a province that continuously belches pollution into the air, whose central regions are covered with ugly industrial plants, whose northeast has a landscape resembling Mars, and whose rivers are reduced to a trickle? It's not all about money and power. I will accept a lower standard of living, and a more inconvenient life in exchange for a reduction in environmental degradation. Please do the right thing and tax the heck out of these companies. |
| RRE5220 |
1st thing is to accept the report as is. 2nd is to investigate the energy department for their mishandling of previous funds. ( hopefully heads will roll including ministers). 3rd is to collect any outstanding funds that the taxpayers are owed. 4th is to use our new mony to lower taxes & eliminate healthcare premiums. 5th is to lay the groundwork for another study in the future, to again see if we're getting our fair share. |
| RRE5221 |
Two recent articles, published in the Edmonton Journal, "Energy Royalties: responding to the critics" by Gary Lamphier, Oct. 20, and "Review panel actually plans sharp drop in royalties" by Gordon Laxer, Oc. 22, have strengthened my opinion that Alberta, the owner of a magnificent resource, is being seriously shortchanged. Surely we have the intelligence and the courage to stand up for ourselves!! I have noted that the oil companies have been complaining that the Royalty Panel have used incorrect data but I have yet to read point by point rebuttals, complete with facts and figures, to support these claims. Who is stretching the truth? [Information Removed] |
| RRE5222 |
It is my feeling the recommendations of the royalty report should be fully implemented. I am a farmer and am totally fed up with being pushed around and run over by the oil industry. It is time the Alberta economy had a big slowdown and readjustment. The minerals belong to the public and are not going to depreciate. The oil companies should be fairly paid for extracting and distributing the oil and gas but should not be able to realize wholesale profits as they have done for the past several years. I have been a very proud Albertan all of my life, but for the very first time I do not enjoy living in Alberta. Our infrastructure is being overwhelmed our quality of life is being compromised, and for what - so a few oil executives can get rich? Lets keep our oil and gas money in the hands of the public and in the hands of Albertans. Steady sustainable growth is the best solution for the future of our children and an increase in royalties will help to ensure this. |
| RRE5223 |
let's be reasonable, here....are we just robbing peter to pay paul......i left the socialist state of saskatchewan to come to a conservative province..hundreds of thousands of jobs are on the line here.....if i can't afford to feed my family, do you really think i'm gonna pay my taxes?.....you will force thousands to throw their keys at the bank and flee the province in search of the life previously found here.....greed spoils all....how bout 5% /year over 10 years.....i think Mr Stalmach is a liberal in conservative clothing.......look what Mr Laugheed did for the province in the 80s....need i say more |
| RRE5224 |
I think the reports recommendations are very conservative and are the very least that should be done. |
| RRE5225 |
I sure hope this isn't going to go the same way as the NEP. If you topple the oil and gas industry, there are going to be a lot of upset UNEMPLOYED Albertans. |
| RRE5226 |
I believe the royalty proposals on natural gas will absolutely cripple the gas sector in Alberta. I work for an oil and gas company in Calgary. I am not rich; nor do I drive a large car or live in a large house. I am an average working Albertan supporting three teenagers. I work long hours and am very thankful for the job I have. If the royalty proposal is accepted as it stands, the company I work for will pull $84MM dollars out of the Grande Prairie budget (which is the area I work in), and move those dollars to BC. The Grande Prairie area is a small area compared to the province of Alberta. All other teams have similar or larger budget cuts. This means that thousands of honest working Albertans will be losing jobs or moving to other provinces or countries. My company employs many workers from the local communities in Alberta and many native Albertans. What happens to these people when there are no oil and gas jobs. We also support local communities with large donations, job training and volunteer work. I was recently in Rocky Mountain House and couldn't help but notice all the oil and gas company vehicles and service vehicles in the area. These royalty proposals will be devastating to the economy and survival of towns all across the province. If the government wants to look at changing the royalties in the oil sands, then so be it, but the gas sector is too fragile to survive such royalty cuts. I sincerely hope the Stelmack government is listening to the people of Alberta and considering the global damage the royalty proposals on gas will cause. |
| RRE5227 |
It would appear that the panels data and findings are severly flawed. This subject is far too important to all Albertan's to be managed in a hap hazard manner. It is time to see past the politics and look after the afairs of the people. You cannot afford to get this one wrong. |
| RRE5228 |
I think that this is effectively raising taxes on corporations. The corporations being targetted provide a great deal of economic activity and secondary benefits to Alberta, such as though wages, jobs, and growth due to immigration into the province. I believe that it is counter to conservative ideology to raise taxes, and that for any government that wants to raise taxes I must ask "why?". We have a surplus, and our economy is growing. What is the plan for the new 2 billion expected? All I hear is how we do not get our fair share ... well since when is the government a business looking for a profit? What are you going to do with that extra money? If, and its a big IF this goes though I better see tax breaks or fees being cancelled like Alberta Healthcare to make up for the different. Even then though the threat that the general economy in Alberta will suffer is still ever present. Taxes reduce the incentive to invest in Alberta, and reduces the effectiveness of a market economy to make sound economic decisions. This is madness to assume we are not getting our fair share. Who ever said we were not getting our fair share? we are the economic engine of Canada. The resource sector and our "sound" government spending is the reason our dollar has not tanked into the gutter along with the US. This is complete madness. We are on the verge of another recession and you want to raise taxes on the people that generate jobs and weath in this country. Madness! |
| RRE5229 |
I AGREE |
| RRE5230 |
I do not support the implementation of the recommendations of the Royalty Review Panel's final report. The impact of implementing these recommendations will be felt far beyond the oil industry. Dramatic decreases in capital spending within the oil industry & associated job losses will be disastrous for Alberta & Albertans. |
| RRE5231 |
I am extremely distressed over the percentage of oil revenues that the government is currently receiving as well as the percentage that the panel is recommending. Albertans deserve much more. We need to increase our share to 70 - 80 percent. I will not support a government that demands anything less. We need to focus on sustainability and I believe that even if the increased royalties slow things down (which they probably won't) that that wouldn't be a negative thing. I do not enjoy living in a province where I can't get a table or decent service in a restaurant. I do not enjoy living in a province where I can't get in to have my car serviced for weeks. This 'boom' is benefiting no one but the owners and CEOs of these big oil companies. |
| RRE5232 |
You didn't Go Far Enough! TO WHOM IT MAY CONCERN: The substance and analysis of the royalty review in many ways has left inequities within the context of environmental levies and their impact on the total economic return possible from conventional oil and gas wells. Positive royalty adjustments have been made to make conventional oil and gas wells past their prime production level have longer economic life, but the reality is that the end costs associated with environmental levies have been totally ignored. A better balance of allocating the end cost or abandonment cost needed to be similarly addressed to more appropriately match those costs in relation to the production cycle and total production attained during the lifetime of the conventional oil and gas well. As is present policy the current imbalance by allocating all abandonment costs to the end sucker stuck with the well results in a policy of prematurely ending production from marginal wells resulting in lost royalties to the Government. A previous study had made light of the fact that present recovery technologies had prevented the complete depletion of conventional gas and oil wells. It was concluded that even marginal improvements in recovery from these wellsites would add significantly to the life cycle of a wellsite. Extending the life cycle of a wellsite would obviously result in further royalties from the continued production from wells that would otherwise be prematurely abandoned. This obvious oversight should be further evaluated so that smaller producers with new technologies may extend the economic and production life of these wells that now are abandoned prematurely by larger companies whose primary production strategy is to suck them dry as fast as possible. The panel should be congratulated however in recognizing the free ride that has been extended to the many in the oil and gas sector. By increasing royalties you will also ensure to other economic participants in the Alberta economy they will have an equal opportunity to develop their corporate enterprises. Without a more equitable tax strategy the current wage and price inflation fueled by too generous capital cost allowances and irresponsible spending by oil and gas players has all but resulted in an unfair playing field for labor and financing of projects outside of oil and gas sector. As a Province a key economic strategy should be diversification not concentration of all economic output into one industry focused solely on oil and gas production. Little seems to have been learned from the previous economic busts where diversification is only sought once the oil and gas sectors collapse resulting in massive economic displacement for all sectors of the economy. You must in closing be congratulated for providing sound analysis but caution must also be given to the creation of new ministries. The Auditor General could equally provide the necessary review of royalties without the need to expand the bureaucracy that frankly would after time have the same complacency as was cited for the current Energy ministry. If nothing else the past expansion of Government also showed that little really ever is accomplished by increasing the size of Government except the need for ever greater taxes or as in this case higher royalties. Sincerely yours, SIGNATURE NOT ATTACHED FOR SECURITY REASONS [Information Removed] |
| RRE5233 |
I like Alberta for the opportunity it offers for initiative, hard work, and smart planning. I am afraid that the Socialist ideals behind why we have instigated this review are contrary to the reasons why great, tax-paying Albertans live here. I work in the petroleum industry and enjoy what I do. I have found myself struggling in the past year and a half to find projects that are low on risk and yet still economic projects. As a result we've already done less in an effort to control costs and worked diligently with ingenuity to find new ways to make expensive gas plays work in this environment. You just have to look at the stock price trends of all Junior E and P companies, all Service related companies, and all Production Trusts and see that they all have claimed losses in the current environment and have drastically reduced activity, cutting employment and spending in the process. I think making the environment more difficult for the industrial investment complex to spend capital in Alberta at this time is foolhardy. Any gain in royalty would be almost immediately offset by income tax losses due to unemployed or greatly under-earning Albertans who depend on the Investing Industry to move projects along. I like my job, I like Alberta, I'd like to see them stay the same and I'd rather not have to choose between the two. Hoping clearer heads will prevail and less drastic measures from the report be considered. [Information Removed] |
| RRE5234 |
I fully support the increase in royalties paid for our natural resources. These resources are limited and we need to make sure that we receive a fair share before they are depleted. Even with the increased royalties, there is a VERY healthy profit to be made from crude and natural gas in our province. These resources are not going to decline in value, this is a no brainer. Do not give in to the cries of the oil industry lobbyists. |
| RRE5235 |
To whom it may concern: As a long time citizen of Alberta and a participating employee in the Oil and Gas industry I would like to voice my concern over the proposal to re adjust Royalty Rates in Alberta. I work in the Service sector of the business and have enjoyed a propsperous time over the past few years as most everyone else in the Oil and Gas business. and Alberta in general. It became evident this past spring that the heydays are over. We have a philosphy that we can only do as good as our clients and we have already seen the effects of government policies and economic conditions affect how we do business and how profitable we can be. The following factors have had a direct impact on the E&P companies ability to be profitable and reinvest in Alberta: 1.) Royalty trust ruling in late October last year - restricts / limits their access to cash on the open market. 2.) Higher F&D costs due to labor shortages and increased service costs. 3.) Lower gas prices due to high storage in the states from high drilling activity and increased in LNG imports. 4.) Strong Canadian Dollar hurting exports. I fear that a revised Royalty structure that will pull a potential 2 billion in reinvestment capital out of our industry may be the final nail in the coffin. As a manger in a service company, our ability to sell our product at a profit directly affects our ability to employ people in the field. Each drilling rig not working means approximatly $5,000.00 / day of direct employment costs that do not get distributed to workers. These are wages that are taxed at both the federal and Provincial levels. In addition there are approximatly an additional $5,000.00 in business to business operating costs that will not be spent in supporting other parts of the industry and the provincial economy. You do not have to be an CA or a mathematitian to realize that another drop in investment dollars in Alberta, will have dire consequences to the Alberta Government income. It is understandable that Education and Health Care are the main concerns of the citizens of Alberta. Unfortunatly, what the rank and file do not realize, is that by increasing royalties, future investment into a depleting basin will be reduced. They do not realize that we have already reduced total gas production in theis province by 1 Bcf due to well decline, and they do not realize that that trend of reduced production will only lead to less gross royalty dollars into the provincial coffers. With current gas prices, it is difficult at best to provide a profit within the context of the Oil and Gas industry and therefore I propose a re-look at the royalty review and perhaps an indexed style of royalty that would allow investment fundamentals to be consistent throught the pricing flucuations. If you truly care about the long term effects of an increased royalty structure in a weakened marketplace, then you cannot vote with any conscience to increase royalties. Politics aside, and personal position aside, what we need are leaders with vision and not those that will follow the whims of an mis informed population. Do not increase royalties, if you care about this province and its citizens |
| RRE5236 |
I am in agreement with all of the recommendations made in this report. More important, I want done about all the environmental concerns that were brought forward during the review. They shouldn't be ignored just because they were outside the review's mandate. |
| RRE5237 |
Yes, please raise the royalties. This simply reflect the "true" cost of the assets that are being consumed and accounts for items such as environmental impact, damaged roads, etc. Alberta will still prosper, oil companies will still do business here. The sun will still come up, and maybe life for everyone will be just a bit better as a result. |
| RRE5238 |
Thank you for allowing us an opportunity to communicate our comments. I am a resident of Calgary and was born and raised in Red Deer. I have been an active investor and employed in the Canadian energy industry for some time and I am very concerned about what a material adverse change in the royalty concessions will do to Alberta's energy industry and economy overall. The most obvious important considerations that I feel were neglected in the review panel's report were i) the capital cost repercussions for the sector, and ii) the fact that the majority of the oil sands projects are yet to start and may be in jeopardy of occuring at all. For example, I do not believe [Information Removed]would bat an eye about shelving phases II and III of the Horizon project if the economics were unfavorable. The costs to Alberta in this case are obvious and significant. As well, the royalty recommendations for the conventional oil & gas companies are unfair and biased. More specifically, if you were to actually compare the income statement of a company like Highpine Oil & Gas, which is a well-run 20,000 boe/d producer with high output wells, versus another established junior ProEx Energy, which is a 10,000 boe/d producer with lower output wells, you will see that the capital costs of those companies seeking more prolific wells will on average more than make up for any higher output per well.... i.e. the proposed royalty increase for higher productivity wells will absolutely kill companies like [Information Removed]... at the expense of companies such as [Information Removed] I appreciate that oil prices are high, but so are costs in the industry... And this is a crippling time to be proposing such measures. Take a moment to see what the stock market is saying about the economic health of Canada's energy industry.... Even before the royalty review announcement was released. The natural gas and services sector is capitulating and it is not just a phenomenon among the weaker, over leveraged companies. The very best operators have seen their margins tighten to break-even levels (i.e. lower gas prices, higher costs = $0 returns = low stock price)... and many of their share prices have fallen over 30% already this year. To name several (i.e. that are major employers in Alberta)...[Information Removed](already down 50% this year before upping their royalties 20% more), [Information Removed]. All of these companies are running near break-even economics and have seen their shares fall over 30% this year. The service companies are in a stand-still with low natural gas prices and this royalty review will undoubtedly drive a good number of good energy service companies out of business in Alberta... Great companies whose share prices have fallen over 30% in the past year (i.e. due to having to cut their prices to keep equipment running - but in the face of rising costs for people and equipment)... [Information Removed] The samples above are obviously not all in financial trouble because of poor decisions... The industy is really tight right now and another blow with the royalty increase would be a the final blow to a number of great horses already kicked down to the ground... Please reassess the economic impact this will have on our economy... Not only will this slow activity but the cost of raising capital for these companies will sky rocket and thus projects will not go forward... and thus the good people of Alberta will have 20% more of nothing. [Information Removed] |
| RRE5239 |
The Honourable Premier Stelmach, The first thing that is missing in the report is that the Alberta Government makes billions of dollars of revenue from the land auctions for oil companies to explore for oil deposits. I was astonished to hear the suggestions made in this report. The government would like to take no risk, but reap all benefits. It borders on the same deal that was implemented by President Chavez from Venezuela. I don't have to advice anyone how many multinationals have walked away from their investments in that particular country. However, this isn't Venezuela and I expect the Government to release all the details that go into the exploration and production of Oil & Gas. The Oil industry has been a key player in getting this province out of debt and into years of surpluses. This is a fine way to pay back an industry that is responsibe for the employment of +/- 300000 people in this province. That is not even counting the sheer number of people employed in different sectors of the service industry. Multiply these people by 4 and it will give you very simply the amount of Albertans that depend on this industry. I don't have to spell out the answer here, because it is evident that the Alberta Government employs people that are very creative with a calculator. The only statement of the Honourable Premier Stelmach that is correct is that this decision will affect our province for decades to come. I absolutely agree, but I suppose the Premier and I don't share the same vision on the outcome. Quite frankly I believe by thinking the Government will reap the benefits of a 2 Billion dollar windfall will be short lived. It is rediculous to think the Oil industry is going to sit back and not take any action. Nobody will do business on an all risk / no gain deal. New projects wll be put on hold and investments will slow down. It is my belief that the Government will send this province's economy straight into a recession. The final outcome will be negative and most likely by that time we can't figure out why companies have moved on into other oil rich areas. We're not alone in this country with vast reserves. Alberta is on the map thanks to the oil industry, but it doesn't seem to be good enough for this Government. The economic atmosphere that was created by the Kein government is being undone in very rapid speed by the current Government. The end result will be negative and I truly hope the next time the Government comes out with an one-sided report on any industry or subject it will take a second look who to put in charge for completion of these reports. Please give people an honest chance and listen to all the facts. Perform a census and include the economic spin-off from the Oil industry and realize how many Albertans and Canadians are depending on this industry. I guess the goal of the Government and other stakeholder organizations ismake it impossible for this industry. We're doing a fine job of shutting down or at the least slowing down our largest industry. |
| RRE5240 |
It appears the oil companies in Alberta have the lowest royalty costs in the world and the average person in Alberta doesn't gain a thing |
| RRE5241 |
I support the recommendations from the report. I also support Mr. Stemach's statement that he won't be intimidated by the oil companies. What this tells me is that previous Premiers must have been intimidated enough not to put in the required changes. Go Ed Go! |
| RRE5242 |
I think that our high costs of electricity is the direct result of the energy sector using so much natural gas as to cause homeowners to have to pay exorbitantly for both electricity and heating. This is not the Alberta Advantage and as a fixed income senior it is deliterious to my life and to many other Albertans who are not swimming in high petro incomes. I think that the province ought to subsidise a great deal more of the costs of energy for homeowners and small businesses..not just the big energy users but the electorate. I am counting on seeing such a program that goes far beyond the piddling energy rebate program now in place. |
| RRE5243 |
In light of low natual gas prices and higher drilling costs in Western Canada, why would the government even consider raising royaltes? Companies are already cutting back on drilling and higher roayalties will only mean less exploration. This can only impact negatively all sectores of the Alberta economy. Those people who are thinking that "Hey, yes those rich oil and gas companies should be giving me my "Fair Share" ", are being mistaken. Instead of more money in their pockets, they are more likely to be losing their jobs. And they aren't the only ones who could be out of work. Eh, Ed? |
| RRE5244 |
To whom it may concern My name is [Information Removed]in Calgary. [Information Removed] I have read EnCana's message, and Petro-Canada's message, and Talisman's message, and I feel their point is; "a larger piece of a smaller pie", does no-one any good! I like Petro-Canada's suggestion to phase in any changes over time, where companies, investors, and tax-payers can plan for changes. I am sure the Alberta government will do the right thing. Alberta is a striving, booming economy, and a great place to work, and do business, because of our low taxes, small government, and overall policies. Leave this money in the Oil companies hands, because they are the risk takers, making profits, so they can re-invest in exploration, seismic, drilling, pumping, producing............ They then hire companies like [Information Removed] to QC audit, repair and test, and pay us so we can pay our employees, so they can buy a new house, car, and pay insurance, and GST, and food, and furmiture, so the vendors I just mentioned, can buy a house, and food, and insurance, and pay GST...... I think you get my point, please don't mess with a good thing that is working. I understand, that additional diligence, in the Royalty scheme that is in place now, could add to our overflowing Alberta fiscal coffers. Things are going well, but a large change like this will drive investment elsewhere, and with [Information Removed], busy winter season on the horizon, we will flat-line__________________________________. regards [Information Removed] |
| RRE5245 |
To start messing with our one and only industry in this province is the best way of NOT getting re-elected I can think of. |
| RRE5246 |
This really doesn't make sense. Your data is incorrect re: F&D costs in our current environment. We already live in the country's richest province with ample funds collected to finance our provincial endeavor so why are you proposing to cripple our service & support industries???? |
| RRE5247 |
Having lived through the NEP program I think that it unwise for governments to meddle with the future oil and gas projects. The royalties should be a flat rate tied directly to the price of the oil and gas commodities. It is also very important to remember that the bitumen price is a lot lower than that of [Information Removed] I have called Alberta home for my entire life and have always voted conservative, it is very unfortunate that this issue has made me rethink this position. Be very careful on this issue, go slow and make the wisest decision with consulation with all parties. [Information Removed]Airdrie Alberta |
| RRE5248 |
This will have sweeping negative impacts on the tax base in this economy and government royalty revenue going forward. This will also stifle long term investment into Alberta on a global basis and serve to dispell the notion that Alberta is "entrepreneurial". |
| RRE5249 |
As a citizen of Alberta since 1981and a long time supporter of the Conservative Party I am concerned with the prediciment that the goverment has placed itself in with respect to the Royalty Review. It has placed it's self in a no win situation! The Royalty Review Report has some major errors in assumptions thaf if put into practice would cause significant harm not only to the energy industry but to all Albertans. I would suggest that the goverment use several Alberta Based third party evaluations consultants to validate the Royalty Review report befor making any public comments. I am getting tired of this boom/bust cycle. One more and I am moving back East! Thank you, [Information Removed] |
| RRE5250 |
I wish to voice my concern over the proposed changes to the royalty scheme for Alberta. I work in Calgary for a large oil and gas company and in recent years I have been involved with oil sands development. The proposed changes will have a significant impact on the economics of these projects. Oil sands project economics are already marginal and these changes will likely lead to delays or cancellations of many of them. The follow on impacts of a major slow down in the energy sector will impact all Albertans. I believe there is room for adjustment to the royalty structure but it must be done carefully with due regard to the real economics of today and the impacts it will have on all the citizens of the province. |
| RRE5251 |
Please give Albertans the full royalty rate as recommended by the royalty report. The Oilpatch should have enough incentive with 80$ oil to invest in the province As for the gas industry , they created there own problems with unrealistic $ projections. The oil & gas industry has had more than their fair share over the last 10-15 years and as for them pulling away $ investments from Alberta they should be reminded that there have been no terrorist attacks in the province or dictator governments. |
| RRE5252 |
Don't do it. Your plan is flawed and will effectively result in less revenue for Alberta, financial problems for the Oil Industry, which will ulitmately lead to layoffs. Do you really want me to lose my job and potentially my house? If you do, then by all means put through this draconian plan. [Information Removed] |
| RRE5253 |
Dear Premier Stelmach: I am writing to whole heartedly support the review of the committee and I hope you will accept this in its entirety - it was a well reasoned committee in my view and they did their homework. I am a bit disappointed in the response of the petroleum community and their use of misinformation and I urge you strongly to not be swayed by what I can only call propaganda. I will note that at a recent petroleum related meeting even the other industrial scientists there seemed to support the conclusions of the panel! I perhaps have a bit of a unique perspective. I am a professor [Information Removed]at the University of Alberta [Information Removed]. My research puts me in contact with those working in the petroleum industry around the world, and as such it is very difficult for me to accept the argument that Alberta is an 'expensive' place to work particularly when much of the costs have been self-induced on the industry. I point particularly to the cases of Norway and Alaska. Both jurisdictions do have larger deposits that are now easily produced, but operators there must deal with much more stringent environmental restrictions than any Alberta based operator has to contend with. Further, and particularly in the case of Norway, the operators there do reinvest in the future of their industry; there is a great deal for support for development and research there. Sadly, I must say that our Canadian industry has essentially forgone any support for research and development (and indeed seems to always need government subsidy when it does) and as a result we will remain essentially just resource producers. Finally, also in the case of Norway the operators are required to produce upwards of 50% of the reserve they have been granted - this is in stark contrast to the short profit mentality rampant in the Canadian industry to get the money out now and not worry about the consequences for longer term production. One final concern I have that relates somewhat to the royalty issue is the lack of environmental liabiltiy that Canadian operators seem to have. The royalties now being collected will likely not pay for future remediation down the road. And as a concerned taxpayer who will be footing the bill for the clean up and long term Albertan with a stake for my children here I urge you strongly to not back down. Best of luck in your deliberations and stick to your guns! [Information Removed] |
| RRE5254 |
I am opposed to raising royalties by 20%. I am very concerned about the potential downturn in economic activity if we do raise royalty rates on a very high risk activity. "don't bite the hand that feeds us" Regards [Information Removed] |
| RRE5255 |
Please hold the course and implement the recommendations of the royalty review report - these resources are limited and it is important that Albertans realize a good return from them before they are depleted. Threats of lost jobs and decreased oil company investment are "short term" consequences that, if necessary, must be faced (although with hindsight the industry and the workers have done extremely well in the past 20 years so why are they complaining). The additional tax revenues realized should be reinvested into Alberta's infastructure, health care, economic diversity initiatives and social programs - many of these areas have been neglected in the past years due to fiscal restraint (eliminating the debt) --- it is time to shore up the deficits and build these programs into the best they can be for Alberta; additional resource revenues are the obvious source of funding. Thanks - [Information Removed] |
| RRE5256 |
I am absolutely opposed to the implementation of the recommendations of the Royalty Review Panel. Implementation of such a massive increase in government take would represent the single most serious political blunder since the implementation of the universally despised National Energy Program. For the sake of the all those Albertans who rely on a vibrant oil and gas industry for their livelihoods, I implore you to re-examine the Panel's analysis and recommendations. I am convinced you will find the assumptions underlying the Panel's recommendations to be at best specious, and at worst, patently false, misleading and designed solely to support a predetermined agenda. |
| RRE5257 |
I being a resident of Alberta do not agree to the proposed royality change as many of the "new" gas play types will be deemed to be "un-economic" if the proposed change is struck into law. Don't kill the already depressed energy market as this will spill over to all of the other sectors of the ecomomy (unless the provence wants a Liberal government). [Information Removed] |
| RRE5258 |
Permier Stelmach, I find it rather hard to believe that increasing the royaly % will significantly hurt the oil and gas companies. With record profits, brand new office buildings going up and the ability to pay staff an average of 20% bonuses on top of normal salaries, I have a hard time believing the companies cannot afford this. Although I have had but a cursory view of the report, I wonder if structures such as setting royalty %ages based on current market prices (on a quarterly basis) and/or a three-year phased-in implementation have been considered? In conclusion, I think the governent should move ahead with implementation of the reccomendations - at least in large part. Regards, [Information Removed] |
| RRE5259 |
I do not understand how a thriving province who currently enoys all the goodness of current oil productions bring has a government that keeps wanting more. My understanding is that inflation rate is around 2%. The increase of 8% from the current royalty % is way too aggressive. Even an 8% increase of annual salary is not too common in our industry. This will definitely put a dent in our budget forecast which will bring down the price of our stocks and more forthcoming, will render some of our wells uneconomic to meet this criteria. When that happens, I may not have my job at that time. Not enough production, not enough people needed to do the work. We will be back during the time when you live in fear on a daily basis to see if you'll still have a job the next day. As a single parent with below annual average income, I'll just have to depend on the government then to support me and my child(?). I suggest the Panel reviews their recommendation before implementing this new mandate and get more people from the industry to get involved in their decision as this will impact almost everyone. There should be a balance between what the government wants and what the industry wants. |
| RRE5260 |
As a worker in the Oil sands industry I am worried that such a large increase in the Royaltys might negatively impact future developement and the sustainability of current "marginal"projects. This could result in serious job losses and an economic slump with long term effects. Albertan's do deserve a fair share in terms of royaltys but already enjoy the tremendous benifits from the booming economy myself included. Care should be taken to ensure no one kills the "golden goose" by introducing extreme measures. [Information Removed] |
| RRE5261 |
Trash this tripe. Why try and fix what is not broken-remember the NEP-government's are not meant to be money grabbing blood suckers |
| RRE5262 |
I agree with the substance of the report. The oil sands developement no longer needs special breaks in roylties to make projects viable. |
| RRE5263 |
As I see it. it is okay to increase profits, food, gasoline, but by god help us if we increase the royaltys that are the peoples income and then to be threatened by the almighty big oil company, personally I see where they are coming from, but all things come to an end, can you promise me that my taxes will not go up in the next 10yrs???? I think not. Accept an increase and move on. Stop whinning and waving the big stick Oil guys you are not infelliable. |
| RRE5264 |
I hope that our government actually has a full understanding of the impact that this will have to the industry which has allowed Alberta to be the envy of so many others. |
| RRE5265 |
With the tremendous pressure on infrastructure throughout the province, I can not understand why oil company threats to cut back development activities if the royalties plan is accepted as is would be seen as negative. The resources would still be in the ground and we would buy some breathing space to catch up. Our royalties would then be competitive with other jurisdictions and -- if there are present investment cut-backs -- they would be spread out over a longer period of time which is good long range planning, as ultimately our resources will be developed. |
| RRE5266 |
I just read that Mr. Stelmach is meeting with oil & gas business people and sharing details that he has not shared with the people he represents. Absolutely digusting. Grandfathering simply means that he is as cowardly as Ralph was, they both know we are being [Expletive] and neither has shown any fortitude or leadership on the issue. Disgusting. The grandfathering has already taken place, you people have been giving it away for decades, you have known all that time that you have been doing so, the oil companies know that you have been doing so and it is time to pay the fair share. Economics needs the real cost of inputs to operate properly so get on with it for crying out loud, or be cowards and hopefully big oil will finally lose its puppet. If jobs are lost due to the real costs being incurred so be it, we are Albertans and we will get through it. Your lack of leadership to date is what has led to this so get on with it. |
| RRE5267 |
Finally, a government report written in "plain language." It plainly says the royalties should be raised. The government spent lots of money commissioning the report--now it should follow the recommendations of its own experts. The oil industry, with its huge profits, had imput into the report. Why are they now getting private access to the government? The government should get on with the job of governing for the good of all Albertans, not the privileged few. They went against the recommendations of the affordable housing report. Are they going to repudiate this report too? |
| RRE5268 |
I work for [Information Removed], we have already seen a decrease in activity over last year of 35%, what this "Fare share" meens to me is, loss of my job, because our customers have already responded to the perposed high royalties with announced cut backs, This loss in investment correlates directly to lost opertunities and to lost jobs... Please be responsable, and actually do what is "fair", because 20% of nothing is nothing, the drilling and search for natural gas and oil will be elsewhere, no longer Alberta the land of plenty, rather, Alberta, the land of the unemployed. |
| RRE5269 |
Dear Minister Ron Stevens, My professional association APEGGA sent you a letter dated Oct. 12, 2007, expressing concern that increased petroleum royalties might hurt the Alberta economy. I object to this letter sent on my behalf as a practicing member of APEGGA & a consulting engineer. The current pace of capital projects in the tarsands is unreasonable & unnecessary in my opinion, so indeed, I would welcome a slowdown, yet regardless, I think the threats of the oil majors are idle. The simple fact is that the tarsands is the single largest known deposit of petroleum in the world, & barring the illegalistion of hydrocarbon combustion, the tarsands will be fully exploited in time. The current pace of development is irrational & needs to be curtailed. Please ignore my association's concerns & institute the maximum petroleum royalties possible for the good of society in Alberta. Further, please use the wealth to help Alberta develop new technologies to keep Alberta a premier energy centre since our petroleum reserves will be exhausted in less than 100 years from now, perhaps in as little as 50 years. It is imperative that we develop alternate energy sources, & please note that wind is not the answer! Wind turbines kill masses of bats & migratory birds & ruin the landscape, they should not be proliferated. Ultimately, I believe the only sustainable answers are nuclear fusion or solar. Canada lost the experimental ITER fusion reactor to France, so I think it would be wise for Albera to invest in aggressive research & development of high efficiency solar conversion, superconducting materials for electricity storage coils, & large scale hydrogen electrolysis for the future hydrogen combustion engines that are required. Yours very truly, [Information Removed] |
| RRE5270 |
I think our government needs to sit back and really think this move over, alot of jobs are going to be lost and exploration isn't going to be as active in the province. I look at companies, for example Nexen, EnCana those bigger players who have oil and gas rights in other countries, all there going to do is put more into there overseas exploration, which is going to hurt the Alberta government royalty and exploration in Alberta. So in the long run I see Alberta losing out by this decision to raise royalty rates, and not to mention the smaller players, your going to see alot of smaller companies disappear. |
| RRE5271 |
I have worked in the energy industry since 1978 and seen it boom and busts. Back when the oilsands was in its infancy it was good to have a special royalty structure to get it really going not just little pilot plants. True it costs a lot more to produce synthetic ($15 last I saw) and when oil prices were low profit was razor thin. Now today the profit margin is much better. I doubt we will see oil under $45 bbl ever again. The big players in the tar sands are making alot of money and the royality system should be structured on a sliding scale. In a poll 1% sounded not bad to most Albertans until it was explained as a penny on each dollar. Then it did not look good at all. This is Alberta'a resource not big oil as [Information Removed] recent speach hinted at. While the boom has benefited many the cost of living has increased far more than the raises these very companies are handing out to their workers. It high time our oil worked for us as many communities infrastructure is needing much work. I've heard the proposal to increase the royality rate by 20%. 20% of 1 cent does not sound like much at all to me. [Information Removed] severence last year and yet they cry hands off or the sky will fall. A little dose of some Danny Williams shook them up; they fussed and strutted, but they came to the realization that there was still good profit to be made and this country is not going to nationalize them. Stand your ground Ed. If you don't it may well be an election issue and it will hurt the PC's. For the people who have not benefitted from this boom I'm sure who they wll not vote for. This whole fuss the Calgary big shots are making is no different than what the car insurance industry did 2 yrs ago when the gov't was talking about rate caps. They all cried they were losing money and yet when their financial statements were released at audit time they had a never better year. PS the rate caps are a joke. For good drivers the PLPD portion is the lowest and that was the only part thar was capped. Gov't [Expletive] that one up as the rate cap helped out high risk drivers instead. When it comes to this royalty review get it right and make sure it actually benefits Albertans and not the usual smoke a mirrors and feel good [Expletive] that usually is rolled out. Big oil is finding it self less and less welcome in the third world. These countries too see huge profit being made and want some for their people. No different here. Don't back down; if they don't like they can find other sweet spots to work in if they can find one. Alberta is not looking to gouge, just a realistic share that does well in a time of high oil prices and tightens it's belt just like everyone else when the price is low. |
| RRE5272 |
Premier Ed Stelmach: Please ignore the "bleatings" of the Oil & Gas Companies in this Province and implement the recommendations of the 'Royalty Review Panel" in their entirety. Additonally, I am appalled with Auditor General Dunn's review/assessment/findings regarding the Alberta Department of Energy. Please ensure that a thorough housecleaning is carried out and the Minister of Energy, his Deputy and all Assistant Deputy Ministers are "sent packing" with no severance pay - in other words they should be summarily fired forthwith! |
| RRE5273 |
How are additional government revenues going to help the people like me who are going to lose their jobs due to cut backs in the oil and industry? |
| RRE5274 |
After reading the article on [Information Removed] who expects to pay $400 million in Royalties this year as well as the $1.8 billion in reinvestments in Alberta what on earth has the Alberta Government done with this money? Asking for more from the Oil and Gas Industry is counter productive as the O&G Industry will stop investing in the province and their monies will go elsewhere. This is just another example of Government greediness. By the way, what did you do with [Information Removed] $400 million and if they have paid this much what did Alberta receive from the other 599 Oil and Gas companies! |
| RRE5275 |
It is long overdue the oil patch contribute there fair share. Please ensure that our resourses do not continue to be exploited by foreign interests, namely the multinationals that have made alberta their home. |
| RRE5276 |
I am an Albertan and I do have concerns about this royalty issue. I currently work in the Oil and Gas sector and I am the wage earner in my family. I do understand that there should be an increase in the royalties but my concern is the amount that you want to raise the royalties. Smaller increases would allow these companies to factor in the increases and would allow them to continue investing money in our Province. Putting in a large increase will only cause them to pull out of Alberta and go elsewhere and this will cause a large layoff of several hundred/thousand people and to what benefit. People that were tax payers and contributed to Alberta's success will now have their lives destroyed and being greedy could cause this industry to take a down turn that will harm the industry forever. Having the oil and gas industry change dramatically will have ripple effects on everyone - housing industry, grocery stores, pharmacies, charities will be hit hard with families in need, less people contributing taxes to the Provincial Coffers, people moving away from our Province and so much more. I NEED MY JOB [Information Removed]. If the oil companies decide to lay people off will you pay my mortgage and grocery bills, the fuel costs for my home...PLEASE THINK LONG AND HARD before you make this decision as you may affect many many families and I believe that will have serious consequences for this Province. We are currently one of the best Provinces to live in because we have very little unemployment , everyone is enjoying the fruits of the Oil and Gas companies involvment in the Province with jobs, charities are profiting due to contributions/donations being made to their causes, I would also think that some of these companies do give substantial donations to political campaigns, but your decision could change that and we could be in a province with very high unemployment if you choose to introduce high royalties. Yes I do believe that we need change in this but we must think long and hard and introduce these changes slowly so that we do not cut off our noses and drive this Province into a bust situation. I am not telling you what to do Mr. Premier but my company has already made it clear this could mean job loss and this is now just another situation adding to the stressers in my life. I have lived and paid taxes to this Province all of my adult life and I believe in the rights of the people but I also need to feel that I have some security for my future retirement and with this issue I feel that slipping away. This decision could also add to your homeless situation as well. Please make sure that you consider everyone in this decision and not only the Provincial Coffers. |
| RRE5277 |
Please implement the full recommendations of the panel. 1. Some of the oil companies have stated they will reduce investment. I doubt they will but that would be good as the ecomony is growing too fast. It will also slow the rate at which non-renewabe resourses are be depleted so that future generations can also enjoy the benfits we have enjoyed. 2. The majority of the profits are being taken out of country, infact out of North Americia. Why should we subsidize China - so they can send their junk back to Walmart for us to buy. 3. The oil companies are playing their COE obsene amonts like $60M/year so they obviously are making too much profit. |
| RRE5278 |
Having worked in the oil patch since the late seventies I have witnessed and had to endure the many "Booms and Busts" on our industry many of them caused by irrational goverment decisions. If the proposed royalty increase goes through we will be faced with another bust that 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 will be unable to show a profit and the major oil companies are very likely to shift there focus to international markets investing there hard earned income in more stable markts where goverment decisions do not impact there business strategy. This in turn will force Canadian and International service companies (which employ thousands of Albertans and Canadians) to follow the work overseas or in some cases be forced to close there doors. There is more at stake than lost employment opportunities, pay cuts could be forced onto the industry resulting in increased social problems which will create dependance on goverment programs. Most of us have seen our investment dollars shrink to a fraction of their original value as a result of federal and provincal goverment decisions; investments with money that we worked hard for and working in dangerous and harsh environments. We endured prolonged periods away from our families in an attempt to secure a good life and future for our families. If the provincial government does pass the new royalty scheme proposed, our investments are sure to devalue even more. This stupidy and greed by our provincial govermemt will not only effect the oil patch and related spin off services, it will affect all Albertans and Canadians. Remember we are the people who voted to give you the privilige of serving in our goverment, we can also decide to vote differently next time. Do the right thing and protect the people make the right decision not the one that keeps the oposition happy. DO NOT APPROVE THE PROPOSED ROYALTY INCREASE. |
| RRE5279 |
Both myself and my common-law-husband work in the Oil and Gas industry in the environmental and reclamation sector. We are both feeling the crunch of the royalty review as work is becoming limited from all the oil and gas companies that we work through. If this royalty review goes through as it is we will both be out of work, because the first thing that gets cut in this industry is the environmental side. All projects will go on hold and sites will sit. So all that money that government makes off of us for taxes will be lost as we all go on unemployment. We do not make huge amounts of money, we have a mortage on a older small house in a modest neighborhood. We make enough to pay our bills and try an put any extra away for retirement. We don't drive fancy loaded up trucks and SUV's. I feel that this report is the worst thing to happen to Alberta's economy if it goes through. |
| RRE5280 |
The panel did a thorough job of assessing the royalty structure with lots of input from industry, environment groups, and citizens. The government needs to do the right thing by adopting all recommendations in the report immediately. |
| RRE5281 |
A decision to go forward with the Royalty Review recommendations would be based on facts that are reflecting todays production. It does not consider the effects to the Tax Payers, loss of revenue to Corporations, small buisnesses and, in the end, Government. Increasing Royalty Payments would directly impact operating costs. To me, it only makes sense to increase the cost of the product to the customer. Investors will be looking elsewhere, at other opportunities where operating costs aren't so high. Talk about biting the hand that feeds you! |
| RRE5282 |
Please do not implement the recommendations of the Royalty Review panel. The report has basic underpinnings that are flawed based on incorrect data. It fails to take into account the 1.8 billion dollars in land sales garned by the province yearly. Yesterday, a major oilsands player placed a hiring freeze on all jobs ( over 200 vacancies internally) citing the uncertainty around the royalty review. I know firsthand the industry will not do business in a climate where it feels disadvantaged. My former company left Canada in the fall of 2006 citing a poor foreign exchange component ( when C$ was at 76 cents), length of time to drill and service costs, Add now a royalty regime which is based on flawed data and interpretation and companies will exit this market or reduce investment. It is the average Albertan that will suffer as these companies exit this country, not everyone is a CEO, that means that the middle income earner will see his/her job go away, without opportunities to replace that employment. Do not be known as the government that killed the most vibrant economy in the country. We had the Federal government do that for us in the 1980's , do not conciously follow that path again. [Information Removed] |
| RRE5283 |
Mr. Premier: The oilpatch has investors and a return on capital it must deliver. I know that the industry is seemingly making "threats" to move their capital expenditure elsewhere. However, Mr. Premier, you must take into account that this same industry is providing thousands of jobs for Albertans as well as to other provinces as far away as Newfoundland. Alberta has become and is a "growth engine" for Canada. You already know all this, Mr. Premier. So Mr. Premier, I URGE YOU TO FIND A WIN-WIN COMPROMISE. I urge you to do the "right thing", demonstrate leadership and not be totally swayed by what the populus think they want is what is ultimately good for them (for us all). Mr. Premier, this is not just about votes or jobs in Calgary. This is about what we portray to the world to be "The Alberta Advantage". This is also about our reputation as a place for hassle-free business and our future for years to come, and especially for the near-term. I do hope you get to receive and read this. Thank you, and Happy Thanksgiving. [Information Removed] |
| RRE5284 |
If the new program is implemented as it has been proposed, there is no doubt that oil and gas companies will cutback their budgets in Alberta and most of the large companies have acreage in BC. I have done all of the calculations and there is no need to make such a drastic change. BC will be the winner of all of YOUR proposals. As oil and gas production has provided the AB Government with the cashflow to operate (not any other industry) my feeling is that you are eating the golden goose that has been laying you golden eggs. My stock investments will suffer (just as it did when the Oct31 regime change was proposed), demand will go down for all services, housing (my equity that I have built up will diminish as demand decreases), there will be less employment, less spending. AB land sales will stall for exploration and I definately will vote LIBERAL in the next election. |
| RRE5285 |
This is a very emotionally charged issue. It is very easy for people to decide that big oil is a faceless entity that can be taxed. Most Albertans don't understand how the current royalty system works, with respect to oil sands projects it is already snesitive to fluctuations in oil prices by being either based on gross or net revenues. There are a number of pressure the industry is facing (changes in the Canadian dollar, international cost pressures, increasing cost of environmental regulations, low prices of natural gas) and if this review is not handled in a balanced manner we have the potential to sink the current industry. Comments made by the royalty committee that costs are controlled by companies are laughable to say the least. Most of the current costs are being driven by international forces like the price of steel. The spinoff benefits in jobs for those directly employed by the industry multiply exponentially when the service, construction, public service, and other sectors are considered. This is a current situation that the government cannot get wrong as it has the potential to ruin the economy of our province. [Information Removed] |
| RRE5286 |
The data is not correct in the report and you should not accept the Royal Review Report. Do not do it, it is foolish and will lose Alberta billions. |
| RRE5287 |
I think the goverment must be very careful with this review, what a lot of people do not realize the amount of money the oil companies put out to get a well and it may not produce any thing. If we start to gouge the companies the little companies will fold the big companies will produce else where and many many albertans will be without work, it is not just those who work for the oil companies but also all the construction, contractors, other companies that provide services, the counties will lose alot of cash from this as well as they charge road fees, etc. I hope this goverment looks at the repercussions of gauging, I do not see the public or the goverments putting out the millions to explore or drill and many times after many $$$ and many man hours the well is D&A or just not ecomomic to produce. 20% or more of nothing equals nothing. |
| RRE5288 |
This will damage the Alberta economy beyond repair. How can the Government of Alberta even be considering this report? Ordinary people are invested in these oil companies, either directly or through mutual funds. PLEASE, do not play with people's life savings. [Information Removed], Calgary, Alberta |
| RRE5289 |
Hello regarding the royalty review report. I agree with it. We need to collect more royaltys from the people raping the land. This province is falling apart due to the boom and if asking for our fair chair slows the boom then so be it. We need to protect our natural “none renewable” resources. Have we learned nothing from towns like Schefferville, Sault St-Marie and Sudbury to name a few? Once then oil is gone shall we add Fort McMurray, Grand Prairie, Piece River and Slave Lake to the list of ghost towns. So if slowing things down extending the life of the resource then I say good and if the companies chose to still rape the land and make record profits then again so be it but we as Albertan need to also rape them it’s only fair. |
| RRE5290 |
I believe that you are making a mistake if you implement the royalty review as is. The economic impacts of this would be far reaching. Despite the fact that this has popular support amount the Alberta public, I believe they are uninformed as to the consequences that a dramatic increase in royalties would have on their current situation. This not only affects the oil patch, but has a trickle down effect to all reaches of the Alberta economy. I would urge you to reconsider implementing the royalty review in full. Regards, [Information Removed] |
| RRE5291 |
Things are going right for the province why do we need to [Expletive] things up come on this is risky business |
| RRE5292 |
I am glad that this royalty review was done. After reading the report and analyses in both The Edmonton Journal and the Calgary Herald. I would like to see those recommendations adopted provided that there is an agreement with the oil industry regarding how to make the transition a smooth one. Likewise, as I was saying earlier, by adopting these recommendations, you can help municipalities further and hopefully give Edmonton mayor Stephen Mandel more money for infrastructure needs, similar to that of Calgary's Dave Bronconnier. As a former Edmontonian, I have observed the LRT extension from Health Sciences Station to Century Park and so far, we have seen some slow progress. However, more money in Edmonton's coffers will give the provincial capital a huge boost to catch up on unfinished projects. Likely, Calgary mayor Dave Bronconnier, got $3.3 million for infrastructure needs in his city. Now, we must make a balancing act for the Captial Region. The City of Edmonton (not its surrounding regions) should get an equal amount using another formula. But, first things first, put away about 30-40 percent of all uncollected oil revenues (approximately $2 billion) into the Heritage Trust Fund, before worrying about the other priorities before the next election. |
| RRE5293 |
Please implement this report in it's entirety. Albertans have been short changed for too long. It's our resource and we should control it. We could be a tax free province if we taxed our business properly. Do what is right for the people of this great province not what is right for big business. This decision not only effects Albertans today it effects Albertans for years to come. Also this needs to be reviewed on a regular basis. Thanks for the avenue to express our concerns as Albertans. |
| RRE5294 |
I'm not in favor of increasing royalties. |
| RRE5295 |
I think that this review is ridiculous. If the government wanted their fair share of oil revenues, why not buy a drilling rig and hire a crew? For example, City of Medicine Hat. If the government pushes this, who's to say the oil companies will be around by the end of the year? They have made their millions. If they shut the doors tomorrow, who loses? Not the oil company owners. The staff does. The small companies all over Alberta who are in the oilpatch do. It is not just the large companies who will suffer. What about the small companies? The banks will win. Foreclosure on homes all over Alberta. Suddenly Saskatchewan looks good! |
| RRE5296 |
I oppose collecting royalty tax for oil & gas industry in Alberta. (1) Royalty review report is not truth. The report used old economic data to calculate the industry cost. I would like to ask government of Alberta, if you buy a house now, you can pay it at price of 2003 year. (2) Now crude oil â?~s price is higher, this is a great opportunity to develop economics of Alberta. Government should encourage the companies to develop economics of Alberta. (3) Royalty tax will damage economics of Alberta. If oil & gas industry cannot make profit. All kinds of fields would get seriously damaged because oil & gas industry is a main industry in alberta. |
| RRE5297 |
I am an immigrant. I am from the [Information Removed] and prior to moving to Canada I lived in the [Information Removed]. My husband is a Canadian and persuaded me to come here with our child and build a life in Canada. Before I moved to Calgary I had never worked in the oil industry. I am very well qualified and moved here for the following reasons: quality of education, business reputation and quality of life. I did not move to Venezuela. I did not move to Myanmar. I chose Calgary and Alberta. I understand that the Royalty Review Panel's report is a recommendation and neither implemented, nor guaranteed to be implemented but I see the frenzy in the media and amongst public officials to have the report accepted in its entirety. This stuns me at several levels. In summary my concerns are: 1. Natural Resources are the future of this province and in many ways Canada as a whole I moved with my family to Calgary because this is a stable country with laws and a reliable business environment in which to forge a new career. I had the opportunity when I first moved to Calgary to work for a non-oil company and it was clear that this was not a company focussed on Western Canada. I now work for [Information Removed], a company that makes large investments in Western Canada and Alberta in particular with, as far as I can see, no real return in some areas as we build a business in places like Fort McMurray. I know we do this for business and not charitable reasons but I know that we look at business decisions objectively and changes to the pricing model affect what we do. Why would my employer continue to employ me and others in this area if the returns are better elsewhere? Why invest when you might change the rules again in another few years time? 2. Canada can be a powerful nation able to exert influence over vast amounts of this planet to fix global problems that we all care about I like the values that I see in Canada - that's why I moved here. I think these are values that are worthy of the international stage. When I first moved here I was disgusted by the behaviour of the government with regard to the sponsorship inquiry and seriously questioned our decision. Since then I have seen a substantial improvement in the professionalism of the government (through a change) and am again comfortable with my decision. I'd like to see our values demonstrated to others around the world but they can't be if we behave like a lesser nation and continually change rules and contracts that we have with companies that operate within out borders. At best this is unprofessional and at worst it is deceitful and unethical. I do not understand why existing arrangements would not be honoured and as a resident I am embarrassed to be in the same company as other states around the world who think this is acceptable. 3. Short sighted view While the barrel price for example is high, the oil sands seem viable. What will happen if, or when, the barrel price goes down? I'm old enough to have personally experienced the vagaries of the world oil market and the negative effects of the OPEC cartel. What will happen if that occurs and royalties are high? 4. Greed Before I joined the oil industry I read many tales about their greed and arrogance. My previous industry, high tech, was less than perfect but just as mercantile yet less visible to the general public, particularly since the dot.com era came and went. By contrast the oil industry is continually scrutinized by all and is always keen to improve its image. They know what they do is sometimes unpopular but a necessity in the energy hungry world that we live in today. Why not leverage this industry to improve the province not leverage them to extract every last nickel from the resource? If the province wants to help me as a resident and the industry as my employer then focus on the right problems, tell the oil companies what the requirements are for CO2, today, and make us fix it, today, make us use money that way not pour it into the coffers in Edmonton ready, presumably to fund all the public schemes needed when prices drop, investments topple and we're all needing social handouts to pay the mortgage on our worthless homes. I would very much appreciate it if you could convey my sentiments to the premier and explain that, in the long term, no-one will profit from this idea. Thank you. [Information Removed] |
| RRE5298 |
As a family whose father and husband works in the oilfield i have serious concerns regarding the review. With the three major oil companies ready and waiting to pull almost all of there Alberta Allocations what will happen to those who are depending on those jobs. My family is not the only one at stake. Alberta is an oil based province we depend on the oilfield for everything from the hotel industry to housing. We are one of the families that will be unemployed should this royalty take place. Is there not a more responsible and sensible approach to the problem? Could it be as simple as doing the increase a couple of a percent each year for several years to minimize the economic impact? Who is going to explain to my kids that the don't have a house because dad lost his job and we can no longer pay for it? On htat note this is hardly a solution that will help Alberta's homelessness issue. Thank you for your time. [Information Removed] |
| RRE5299 |
The Alberta Advantage works compared to other jurisdictions. Is October 15 the day it ends? Tread carefully. If taken in it's entirety the Report is an offence to ALL Albertans, not just the oil & gas sector. Take your time and do it right. And don't do it because better for BIgger Government!! |
| RRE5300 |
Helllo, I'm a Grade 9 student |
| RRE5301 |
I would like to voice my opinion for myself and my family. If you should decide to destroy our economy will you still cover my bills so my family and i dont have to live in a box on the streets. I am aware this would destroy my familys lives and the whole economy of alberta. Think about the people before you make a decision that would destroy alberta as the great province it is. |
| RRE5302 |
I am a Petroleum Engineering student at SAIT Polytechnic in Calgary. Myself, and fellow students and members of the SAIT Petroleum Society are deeply troubled by the findings of this review and the recent actions of the Alberta government. We do not appreciate that our futures and the current jobs of tens of thousands of Albertans are threatened by political games. If the recommendations of this review are implemented in full, the effects on the Alberta petroleum industry, and therefore the Alberta economy will be disastrous. Conventional oil and gas in Alberta is on the decline, and the Alberta oil sands are amongst the least profitable sources of crude oil in the world. Natural gas drilling has already lost thousands of jobs in the last year, due to extremely low commodity prices, and further taxation of the sector would likely cost the industry the majority of its remaining jobs. Alberta's robust economy is built on a basis of competitive taxation and economic and political security. Increasing taxation rates to that of other nearby petroleum producing jurisdicitons would eliminate that competitive advantage. Open speculation and indecision by the government on serious taxation issues undermines the perception of Alberta as a safe place for investment, taking away our only other advantage. I hope the government of Alberta does the right thing, and acts in the best interests of Albertans when considering these royalty rate changes. [Information Removed] |
| RRE5303 |
Alberta has always prided itself in being number 1. The past governments have worked at making our education system , health care system and many other things about Alberta #1. I believe we need to collect our fair share of royalties from oil companies and work towards our royalty fees being "number 1" not only in Canada but in the world. We need to remember that once our oil and gas reserves have been depleted those oil companies will just pack up and leave Albertans high and dry. Oil companies need to pay their fair share for access to and harvesting of our precious resources. |
| RRE5304 |
I am gravely concerned that short term political interests will override the long term benefits to the provence. We have a great royality regime in place at the moment i.e. the provence is reaping record rewards and boasts a record suprlus and there is record investment that translates into record activity levals in the oilsands. Having said that the conventional business is not in great shape; the (shallow) gas business in particular is in dire straights. At the same time costs are skyrocketing not to mention the dollar parity. Changes to the royality need to be carefully considered and be modest at best. [Information Removed] |
| RRE5305 |
I agree with the report. Don't sell out the province to the oil companies. Even with a significant increase in royalties, they'll be still be making an incredible profit. We keep hearing of the our cities/towns not being able to keep up with infrastructure demands. Here's a perfect way to increase spending, without increasing personal income taxes or property taxes. |
| RRE5306 |
To whom it may concern: With the understand of the recent review of whether Albertans are getting their fare share of the oil/gas royalties in Alberta, I would say probably not. However on saying that and what constitutes a common sense decision is another thing. The punch approach, we are going to increase royalties one way or another, be dammed about the outcome, I take a different view. Recently if my memory serves me well one of our industrious pipeline companies were allow to proceed with a constructing a line to the USA primary to ship bitumen south for refining. Instead of increasing the royalties building pipelines south I propose to have the oil companies build refineries in Alberta to process this oil at home, this in turn will generate the need to build additional plants to process by-product from the refiners, again creating jobs in the country. This will cost billions , yes, but the money is in Alberta/Canada. We as Albertans/Canadians will all benefit from this, jobs for future generations. This way the oil companies are still paying there fare share and we as Canadians are getting the a direct benefit. Governments historically do not give direct benefits to the people, governments keep telling us they do, but it takes a long time to funnel down to the little fellow. Also what will the government do with this so called 2 billion, donation it to third world countries, more money for Quebec, perhaps another couple elections. Really the Canadian people need to do something for the country long term rather then the country doing something for the people all the time. Just think after 140 years we don't have one brand named product distinctly Canadian, perhaps with more direct investment in Canada this could become a reality. Lets get private business investing in the country oppose to the government trying to handle our investment, to much tax does not promote growth. Note other countries where direct tax has decreased Ireland for example. I recommend back off taxation, encourage companies to invest in the country, rather then Canadians always buying finished products from another country. For god sakes we are Canadians we can do better. The country deserved better and, we as Canadians deserve better governments. Regards [Information Removed] |
| RRE5307 |
To Whom It May Concern: I am born and raised in Alberta, and have lived here all my life. I have two small children who's future is very dependant upon the management of our resources. The royalty review recommendations concern us deeply. While we must ensure that we ‘get our fair share’, I believe that looking only at the royalty rate is too simplistic an evaluation of total economic impact in both the short and long term. My family benefits not from the maximum royalty, but rather from the maximum short and long term economic, resource and environmental health of the province. High royalties that cause an equal or greater removal of economic growth are not optimal. Removing grandfathered agreements is economically suicidal. If business cannot negotiate long term tax arrangements in confidence, then ALL future investment considerations will factor in the HIGH RISK of governments reneging on agreements. This simply means that the cost of business in Alberta will be perceived as more risky AND more costly (we are already one of the highest cost jurisdictions in the world). We must capitalize on the ‘low political risk’ that the Alberta business landscape features, not undermine it! Alternate solutions could include: - A reliable grandfather clause. - A phased in approach to royalty increases to allow business to manage to a known future state. - A phased in approach to oil sands royalty increases as the cost and risk profile of new projects reduces through industry maturity. - A plan to streamline the understanding, accountability and operational complexity of executing royalty taxes (for both business and government). This is win-win for the people of Alberta and the oil and gas industry. I prefer the government look at a long term strategy that includes up to date and overall economic impact considerations. This includes non-financial considerations such as the environment. I believe that the government also needs to look at what it does with these royalties. In particular incentives for diversifying the resource extraction business: - Growth of value-added resource industries (upgrading, refining IN Alberta, not elsewhere) - Positioning ourselves as a leader in the ENERGY sector, not just resource extraction. In particular the alternate energy sector. - Positioning ourselves as technology center. Leveraging and enhancing the substantial Information and Engineering talent that supports the Oil and Gas industry. To become a global technology hot-spot (I.E. Silicon Valley North) In summary, please take a wider view when assessing the recommendations of the royalty review. Thank You, [Information Removed] |
| RRE5308 |
Ralph did okay with the "oil patch" the way it is now. Why fix what isn't broken. Alberta is the most flourishing province in Canada without the oil patch we're just another Newfoundland. The only things on the rise is unemployment, inflation, and interest rates. The only way this will work is if there's an immense support from the other Canadian Provinces. Gradual royalty increases over twenty years at least meet in the middle. I must say I'am a very concerned oil patch worker myself and am biased to the proposed planning. |
| RRE5309 |
Alberta is an expensive place to explore for oil and gas - the returns enable the indusy to keep reinvesting but the margins are small. Keep this in mind when reviewing the royalty structure - money and talent can be redirected very easily. |
| RRE5310 |
I am in disbelief. Why are you monkeying with a system that has led to the injection of hundreds of billions of dollars into the Provincial economy and tens of billions into the Provincial coffers? Bureaucrats will not be happy until they drive the oil companies away. The oil industry has been the driver of the economy, but now we are trying to push away investment especially in the oilsands. Have any of the folks behind this initiative heard the expression "if it ain't broke, don't fix it"? |
| RRE5311 |
This is very bad and poorly timed policy. The O&G industry is already under extreme pressure from rising costs, low quality services, hard to find reserves and environmental restrictions. |
| RRE5312 |
This is a joke! Maybe they should do this increase in moderation not in a huge lump sum. If people haven't noticed things have already been slow enough without this increase. Then you want to really slow everything down with a big increase, not smart. |
| RRE5313 |
Take the revenue while we can. If the oil companies reduce investment, it will only be temporary as the oil supply is limited worldwide and it will allow Alberta to catch up with the times. It will provide greater prosperity now, while also allowing us to access those reserves in the future. If they buy into it and don't reduce investment, great. The province needs to invest some serious money in infrastructure, industry diversity, and can put some away for when the oil dries up. |
| RRE5314 |
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.” |
| RRE5315 |
Workingas an exploration geologist in the petroleum business in Alberta and having worked through the period of the NEP and had to watch as 90% of my co-workers were severed; courtesy ofcollapsing energy prices and a program that was supposed to be good for Canada. I have never forgotten or forgiven the federal Liberal party for that. It took years to rebuild the industry from that mistake, but it was a young industry then and most of the people were young and single and able to get by till they could rejoing the profession years later. It is a different situation now. It is a much more senior business; and a few years of inacivity will see most of the Calgary office towers empty and people will simply throw in the towel and early retire. There will be no resurgence. I look at the royalty review panel and I see academics and government contracters. The industry quotient is restricted to one individual who spent his career in refineries/products and two years in the twilight of his career in Resources. That qualifies to me as essentially zero stakeholder and zero expertise. There is not a retired CFO, nor a respected former oilman like a [Information Removed]. Even more to the point; there is no one from the investment community who could bring the 'market sense' to the table. I won't pretend to understand oil sands, macro-economics and that style of production is not my expertise. But conventionally; we all understand that exploration (drilling) in this gas prone basin will turn up fewer and fewer economic oil finds. Gas supplys the majority of company cash flows and while we saw a nice jump in the price a few years ago; LNG competition from overseas and within continental North America has driven the price back down. Much of the Alberta rig fleet is inactive, and profit margins have been squeezed and several companies have shut down gas drilling entirely - not what I would call a robust profit 'fat' sector. The Alberta gas industry has fallen out of favour with the investment community so it has become significantly more difficult to raise funds, beyond individual company's own cash flows, which dictate a slower pace. A 20% increase in royalties in a business which has been striving to provide a less than spectacular 12% rate of return may pretty much end the business for years. Shareholders/investors will simply not allow you to spend risk $ and lose money. Alberta companies will flee to the oilpatches of Saskatchewan and BC to try to survive. However, the majors will simply swing their budget to the US/Mexico which has already been happening this year and next if you simply reviewed their public reports. We are looking at a blood bath for the conventional service side in Alberta. Oil sands will carry on for at least a few years as these are long term projects; but the drilling business will die. I've been an Albertan since 1980; and have voted PC for all of those years. I no longer recognise this party. I have read in detail the royalty review documentation. I did not find its conclusions fair. I did not find its language business-like or even handed in dealing with its subject matter. It is the tpe of ill researched document that I might have expected from an opposition party that lacked the business savy/expertise to do a better job. Ralph had a rough ride at the end, and took a lot of shots. But he knew what was best for Alberta without seeking to pit us against each other. I think a lot of us feel pretty betrayed right now. I vote to keep Alberta geared to free enterprize, entrepeneurship, and rewarding of hard work; very different from the rest of more left wing Canada. This whole process and workup indicate this government 's leadership does not stand for that at all. |
| RRE5316 |
Mr. Stelmach, Much has been made over "our fair share" when it comes to discussing the recent royalty review. My view on this is the same as any tax. Less is MORE. The less you tax, the more you will eventually receive. To change the tax system as outlined would have disasterous results for Alberta and for Canada. "Our fair share" comes from all of the things that the oilpatch produces. Jobs (which means taxes), opportunities for advancement (more money, more taxes), home price appreciation (more spending, more taxes, more general revenue for Alberta), not to mention the actual oil that fuels our cars, and the gas that warms my house. Please do not think that implementing these changes will do anything but negative things for this great province. Less production means less jobs, which means less taxes X 2. I have long been a big supporter of the conservative government and of Alberta. Having lived my entire life here [Information Removed], a lot has changed, mostly for the good. I have and continue to admire Ralph Klein for everything he did for Alberta in gerneral, and in particular my family. Common sense ruled his judgement. Pay debts down, live with less, and we can all prosper in the future. Great plan, wonderful execution. While it is too early to comment on your leadership, I implore you to use your common sense and leave well enough alone. Continue to build the heritage fund, continue to fight for the right kind of business and don't be fooled into thinking more tax in any form is better for the average Albertan. In this case, more really does mean less, and maybe substaintially less than you can currently imagine. Regards, [Information Removed] |
| RRE5317 |
Lots of innocent people will loss their job. How do they pay such high house mortgage? |
| RRE5318 |
We need the infrastructure that goes along with the extreme amount of development in our province, and taxing the oil and gas companies is the right way to go. |
| RRE5319 |
Although the focus to date has been on the producers, the service sector stands to feel the impact even more. Producers have cash flow from existing wells to support them until they develop a profitable business model to use under the new royalty regime. Service firms are dependent on the producers for cash flow. Should producers reduce spending until they sort out the royalty issues the service sector will feel it directly and immediately. Unemployed oil service sector workers loss of income will be felt throughout the provincial economy. |
| RRE5320 |
Dear Mr. Stelmach, I would like to voice my strong disagreement and disappointment with the royalty review report that has recently been released. I urge you not to accept its recommendations - many of the common reasons to do so have already been raised (outdated cost assumptions, inappropriateness of using WTI as a benchmark, etc.) so I won't go into further details with them. I will, however, say that should the royalty report in its current form be implemented I will not be voting for you and your Conservative party in the next election. My concerns are of a more important nature in terms of our reputation as Albertans. It is hard to say with a straight face that our province is open for business when a punitive royalty regime is proposed that is very likely to remove the incentive to extract the resources on which our economy so depends. Capital is globally (and instantly) mobile in today's world and with projects that are offering comparable rates of return the oil companies will not hesitate to shift budgets to south east Asia, the North Sea, or other jurisdictions where even a 0.5% difference in the return calculations can equate to millions of dollars of shareholders money. I request that you do not implement the proposed royalty regime, and that you re-engage with industry to develop an approach that won't drive investment elsewhere but will also ensure the government can collect a new level of royalties in line with prices of commodities. Best regards, [Information Removed] |
| RRE5321 |
I am writing in hopes you will reconsider increasing Royalties. Alberta is primarily a natural gas basin - the economics are already so tight. The were cut backs planned before your annoucement and there will certainly be more if you go ahead with increasing Royalties. Oil and gas companies provide many jobs directly and indirectly. Please do not be responsible for putting so many people out of work. [Information Removed] |
| RRE5322 |
As an individual who deals with numerous O&G companies in Calgary on a daily basis I have hug concerns with the report and how the Alberta Goverment will react to this report. I believe that Implementation of the report will destroy the alberta economy. You must not proceed. We are already seeing the ramifications in effect and you have not even stated how you are going to move forward. Many companies drilling programs are on hold, investment in Junor Oil and Gas is down considerably. Consumer spending is at a halt. Housing prices are dropping daily. Clear understanding of the impacts of your decision need to be made. In addition I have heard rumblings of separate and new parties forming due to the conservative goverments lack of understanding of the O&G business, you apathy to how much the companys add to our economy. I know even our company is moving our busines out of the city. Please think carefully before you pull the trigger on the report. |
| RRE5323 |
I agree that the taxes should be raised but 20% is way out of line but I am a drilling foreman and haves seen the cost of drilling an oil or gas well double in the last five years. I am not to familiar with heavy oil poduction in Ft.Mcmurray but an increase in royalties is fine but keep it in line with production costs. The drilling indutry gets only one good well in three drilled where as heavy oil is a sure thing.I am having trouble finding work due to the slow down in drilling activity. more taxes may just make it worst.Study this closely before making a decision. [Information Removed] |
| RRE5324 |
I have reviewed the report and have to commend the government for the leadership in calling for this review. I believe that the entire report should be adopted without grandfathering any current agreements as it is only the right thing to do for the owners of these resources. Any attempt to water down the recommendations is in fact stealing from the people of Alberta. I also do not believe acting on this report will impact our economy other than providing Albertans with additional $$ to fund badly needed infrastucture. Looking forward to seeing continued leadership from Ed Stelmach by adopting the entire report. Regards |
| RRE5325 |
I firmly agree with increasing the share that Albertans have in this energy resource. There is no point in developing this resource unless it directly benefits the people affected by it's development, and those living in the province. Additionally, as this is a finite resource, and energy will be the most fiscally rewarding resource in the near future, this additional revenue should be directed towards developing other sources of energy. In so doing, Alberta can maintain a strong energy based economy indefinitely. Additionally, Albertans can be proud of the forward thinking stance they have taken on these issues, and be a shining example to other energy dependent economies. There is absolutely no reason to open our resources to developers unless we are receiving the greater benefit. I do not want companies from outside Alberta to be enjoying what belongs to the people of Alberta, without compensating Albertans appropriately. Thank you very much for taking a strong stance on this, and finding a realistic approach to this issue. I urge you to take my suggestions under consideration, and make Alberta a strong forward thinking province. |
| RRE5326 |
I support the Royalty Review Report and think that this report should be accepted in full and acted upon by this government. Don't let us down Premier Stelmach |
| RRE5327 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 10:31:13 DATE ENTERED {ts '2007-10-02 10:45:01'} |
| RRE5328 |
I have worked [Information Removed]in the oil & gas industry for 36 years. I agree with the Royalty Review Panel's report and recommendations. It looks to me as though the report and recommendations have balance and were well thought out. I think the recommendations should be implemented in full with no "grandfathering". I consider myself a big "C" conservative. |
| RRE5329 |
Dear Sir/Madam, In my opinion the issue that is most important here is not the dollar value or the percentages of the royalties, but how can we maximize the benefit that Canadians derive from Alberta's oil and gas resources? Oil and gas is a non-renewable resource and it is in a state of rapid decline in western Canada. We don't have that long to get it right! The resource is valuable but it also costs a lot of money to extract. The Alberta Government derives income from the activities of the oil and gas industry in a number of ways (e.g. royalties, land sales, corporate income tax, and personal income tax). I think the government and the oil industry needs to consider the following items in addition to a review of the royalties : 1) Improve efficiency of exploration for new oil and gas resources. The current system of land sales and land activity has resulted in a fragmentation of the exploration lands ultimately reducing the effectiveness of any exploration effort and the squandering of money to drill for poorly studied exploration targets. Short term gains to the government from rapid turn-over of land and unrealistically high land prices have created a monster that the government cannot control. I think a system similar to offshore or international exploration regions needs to be considered where blocks are large, exploration commitments are significant and realistic, the bid process is open, and land sales are more carefully planned. 2) Drill fewer wells. Drilling 15,000 - 20,000 wells a year for such small returns is a gross waste of money. The government should encourage more effort to be put into planning wells to succeed rather than relying on a lot of wells to be drilled to keep the economy buoyant. The Western Canadian Basin is over-drilled but under-studied. 3) Commitment from government to provide technical incentives for new exploration. The Alberta Government needs to get serious about research and development and have technical input on geoscience and engineering problems faced by the oil and gas sector. I look to counties like Norway and Australia were they have large technical institutes designed to provide the government with the knowledge to review commercial activity and also to provide the country with a competitive edge in attracting exploration spending and developing oil and gas resources. Currently the EUB and Alberta Energy are grossly under-funded and are not able to provide the oil and gas industry with any technical support. Research and development is left to the universities and they are similarly ill -equiped to do this effectively. Invest some of the income generated from oil and gas on positioning Alberta for a long future in oil and gas technology (domestic and international). 4) In-order to understand the oil and gas business you need to be in the oil and gas business. Canada\Alberta should set up a National\Provincial Oil Company that participates fairly in all of the activities of the oil and gas industry. Models such as AEC and PetroCanada did not work. Government agencies such as the federal NEB and GSC, or the provincial EUB and AGS cannot provide information to the government on the time scales needed to make fast business decisions. Let’s look at some other examples around the world of state owned enterprises that work in the oil and gas sector (eg Statoil) and come up with a creative solution. In conclusion, we should be paying more for the resource, but the flip side is the government should be doing more to make sure we have a legacy from the resource that continues long after the oil has gone. This legacy should not just be millions of abandoned wells to clean up. [Information Removed] |
| RRE5330 |
I support the changes as laid out in the Royalty Review report. Please consider the future of our children and choose to get the most value for our finite resources. Don't be fooled by big business whose only concern is short-term profit maximization. |
| RRE5331 |
After reading the Panel's report and careful consideration, I am concerned that the Royalty Review Panel has significantly underestimated the impact that the higher royalty rates will have on investments and new projects in Alberta. I have been born, raised, and educated in Calgary. My livelihood and ability to support my growing famility, morgage payments, and student loan repayments currently depends on the continuing development of the Alberta oil sands. I would not support a government that jepordizes the continued investment in Alberta oil and gas. Sincerely, [Information Removed] |
| RRE5332 |
Royalty Review: Hey, it's way overdue and high time Albertans get their fair share of these resources. I'm all for increasing the amount of royalties paid to our government. In fact, the additional amount we're supposed to be getting under the new royalty system, is really not that much. $2 billion in the big scheme of Alberta oil and gas is really not that much. Go for it! |
| RRE5333 |
I am one of thousands of people employed by the “Big Oil” and have very deep concerns on the Royalty Report and the proposed increase of Royalties to the Government. I have been in the Industry for thirty years and have seen the highs and the lows and can say with confidence that any time the Oil Patch is threatened by GREED, it doesn’t hesitate to take it’s money and invest wherever it gets the biggest value for it’s Shareholders. To prove my point, we just have to look back to the introduction of the National Energy Program that was introduced by the Federal Government to give the people their fair share of the Oil Revenue. Remember the DOMINO effect that brought this Province to its knees in a matter of a few months and the subsequent effect it had on the rest of Canada. Remember the unemployment not just in the Oil Industry, but throughout the entire Nation. Remember the people who were walking away from their homes or selling them for a $1, because Real Estate dropped so bad their homes weren’t worth what was left owing on them. Remember the negative effect on the Retail Industry, the Automotive Industry, the Tourism Industry – need I go on. REMEMBER THE DOMINO EFFECT. Somehow, People seem to think this proposal will just effect the Oil Industry, but they fail to realize that Big Oil spends it’s wealth and every industry will feel the effect of the downturn. As I write this, our Management has slashed $1 Billion from our 2008 Budget and has advised its employees that is just the start. We were told to be prepared for cutbacks and layoffs. As a result of this information, the employees are revising their own personal budgets and guess what – that new house they were going to build, that new car they were going to buy or that big trip they were going to take have all been cancelled. So already, there is cutbacks in the building industry, the automobile industry and the tourism industry – and the Domino effect is beginning all over again. By the time it is complete, even Tim Hortens will feel the effect. In closing, I just want to say that as an employee of “Big Oil”, I have lost all confidence in our Provincial Government and don’t know if the Investors in this province will ever trust them again. Ralph Klein, as our Premier, repeatedly told the Federal Government to keep their hands off our Royalties or there would be dire consequences, but never did the Investors think our own Provincial Government would turn on us. Please give the Royalty Proposal careful consideration and TREAD CAREFULLY so we can continue to enjoy the wonderful Province of ours for generations to come. Thank you for your time. |
| RRE5334 |
The 'Alberta Advantage' is a joke for Albertans not involved in the oil and gas industries. The price of everything in this province has skyrocketed over the last few years -due to the influence of oil and gas. I am one of the hundreds of thousands (millions?) of Albertans not in the oil biz, and I'm tired of being hosed on every purchase, just for the priviledge of living here. Now it comes to light that Alberta charges just about the lowest royalty rates in the industry. No wonder the energy giants have flocked here. In 'Wild Rose Country' they've enjoyed a comparatively free ride for decades. Now they're crying foul. Even though [Information Removed] et all exert big influence in this province, BIG OIL & GAS Companies DON'T OWN ALBERTA'S RESOURCES, and It's about time THEY PAID THEIR FAIR SHARE! |
| RRE5335 |
Premier Stelmach, Please adhere to the ALL of the guidelines outlined in the royalty review report. It is high time that Albertans start getting their fair share of oil revenues. The province has allowed oil companies to pillage Alberta without taking enough royalties to mitigate against the soical, environmental, and economic costs of the current boom. It is time for out government to stand up for the people of this province! [Information Removed] Edmonton, Alberta |
| RRE5336 |
What are you guys doing - I just read the Edmonto Sun and [Information Removed]will cut back 30-40% of it's capital plans in Alberta and go elsewhere. What about [Information Removed]and all the other Oil Company's. What are you guys going do with all the unemployed Oil field personnel. Thanks [Information Removed] |
| RRE5337 |
Yes we will be getting more royalty money, but we will be losing personal taxes as no one will be working. |
| RRE5338 |
Why cut the hand that feeds. Instead of demanding more money from oil companies and causing a loss in jobs, why doesn't Alberta get it's shit together and manage their massive income properly? |
| RRE5339 |
To ensure that Albertans are getting the most from our resources we need to ensure that we are not just hewers of wood and drawers of water. We need to make sure that we are adding as much value to the products that we produce. With bitumen we upgrader it to synthetic crude, sulphur and coke. With natural gas we strip out and process NGLs and sulphur. We need to ensure that we retain jobs in Canada and I believe we need to structure our royalties so that producers that add value to the oil & gas produced before it leaves Alberta receive a preferential royalty |
| RRE5340 |
I'd like to see a model built that will determine not only the impact of the government take in royalties but the impact on income tax (personal and corporate), salaries, employment. A team of a couple of decent economists with access to good data sets could model such things in under a week. |
| RRE5341 |
I feel that the review panel has gone to far by trying to take more than their share. Alberta will suffer if the Stelmach gov't impliments the taking of an extra 20%. If you succeed then it will be on you for the loss of jobs this province will see. Please reconsider the review panels recommendation, 5-10% is fare. |
| RRE5342 |
The people of Alberta own the oilsands resource and have not been fairly compensated for it over the years. There was a time that the oilsands royalty and tax system made sense but those days are over as is witnessed by the almost maniacal pace of development and the frenzy with which the large companies are trying to get in.. Our conventional reserves are dwindling rapidly and we are fast becoming a one trick oilsand pony and we need to protect our future by receiving our fair share. If it were up to me I would have also increased the 1% until payoff royalty but the review panel has it pretty good anyway. It's time for us as a people and a province to get some nerve and stand up for what is ours. |
| RRE5343 |
I am a professional currently working in the Oil & Gas Industry in Calgary, and I have experienced some "pressure" within our corporation to protest against this royalty review report. I would actually like to voice my SUPPORT for it. I admit that I have not read the report fully or analysed the data and assumptions on which it is based. But I do feel that the Oil & Gas Industry - along with other industries that are given the PRIVILEGE to profit from our natural resources, have not compensated the Canadian people nearly enough in the past. |
| RRE5344 |
Premier Stelmach I am STRONGLY opposed to the changes suggested in the Royalty Review Report. I believe it will do a tremendous amount of damage to the Alberta economy. I have lived in ALBERTA all my life and took great pride in telling everyone where I was from. I was always a supported of the Conversative Party but if this goes through you have lost a long time supporter. Not only will I have to vote Liberal, I will not longer be proud to be an Albertan. Regards [Information Removed]Edmonton, AB [Information Removed] |
| RRE5345 |
The recomendations of the Royalty Review Committee should be taken seriously. This may be the last opportunity for Albertans to take back a bit of the benefits from oil and gas that has been ceeded to the corporate interest. If taking a larger share for the use of present and future Albertans results in a slow-down in the economy, then so be it. A pause to catch our breath may well suit us best. It's interesting how the oil industry refuses to take seriously the issue of climate change, which could end up devestating our economy, but goes balistic when a small impact on their revenues is concerned. Despite great gobs of PR the oil industry is a questionable corporate citizen. [Information Removed] Calgary. |
| RRE5346 |
I do not agree with the royalty review report. I work for an EPC (Engineering, Procurement, construction) comany we build refineries and upgraders for oil companies. I feel there will be less work for us and less jobs with high royalties, the oil companies will choose to scale back their projects. |
| RRE5347 |
We do not agree with the Royalty Review Panel. This will drastically affect Alberta's economy and Not in a good way! Production will begin to taper off in Alberta, do NOT do it. |
| RRE5348 |
Are we killing the Golden Goose? I'm concerned about the number of industry comments and/or reports that have come out recently (e.g. Tristone Capital's "Our Fair Economic Share") suggesting the Royalty Review Panel's report is flawed. While I'm not naive enough to think there isn't agendas involved here, I am quite concerned about the dramatic differences in the analysis. How can the Royalty Review Panel, and the Auditor General for that matter, say we are (and have not been) getting our fair share when the industry is indicating additional Royalties (particularly on Oil Sands) will result in huge shifts (away from Alberta) in their capital expenditure programs? I hope that a compromise can be reached that will ensure Albertain's get their fair share WITH continued capital investment for the development of our Oil Sands. After all, 47% of a larger pie might be as attractive as 64% of a smaller pie. [Information Removed] Calgary |
| RRE5349 |
I support the royalty review in full and it should be implemented without any concessions made to the oil and gas industry. |
| RRE5350 |
I do not want to see any changes to the current royalty schedule, why when after so long we finally have a good no great economy does someone want to [Expletive] it up? |
| RRE5351 |
I have read both the Royalty Review Panel's report as well as the [Information Removed]report. The Royalty Review Panel's report includes analysis based on flawed data such as underestimated costs and does not take into account the negative spin off effect of the resulting decrease in drilling that will occur if the report is implemented. The [Information Removed]report captures this negative spin off effect and calculates it to be greater than the 2 billion in increased royalties. As such, Alberta will be worse off if the Royalty Panels report is implemented. Also, the name of the report, "Our Fair Share" certainly depicts that the panel appears to have been on a witch hunt from day one and prejudices anyone who hears this title. Why read the report when the title says it all. Alberta's reputation is at stake if the royalty panel's report is implemented. It recommends that no grandfathering be allowed on existing oilsands projects. That certainly sends a message to a future potential investor as they will not be sure if the rules will change somewhere in the middle of a project. It is no different than your banker changing your interest rate somewhere in your 5 year fixed rate mortgage because he is no longer getting his fair share because interest rates have gone up. Above all else, grandfathering for existing projects must be allowed. I have become appalled at the average Albertan's lack of knowledge of the oil and gas industry as a result of the royalty review process. I continue to hear that oil companies can afford to pay more as oil is over $80 per barrel. The majority of the conventional sector's drilling is for natural gas where the price is only about half of that of oil on a per barrel equivalent. I believe it is the duty of the Alberta government to educate its citizens in this regard. In conclusion, the royalty review panel's report should not be implemented. It is not a bluff by the oil and gas companies that they will move their activity to jurisdictions that provide a better return. The federal government has already hit the oil and gas industry with a huge blow with its decision regarding royalty trusts and the impending Kyoto. If the various levels of government continue to load negative policies on to the industry, investment in the industry will dry up and then there will be no more Alberta advantage. You can bet Eastern Canada is looking forward to that day also. The phrase "kill the golden goose" is used a lot but it is accurate. It is the oil and gas industry that provides the Alberta advantage and I suggest that the Alberta government do everything in its power to protect this Alberta advantage. Thank you. |
| RRE5352 |
I think it is time that we start thinking ahead to the future and with that bring about a change in the royalty's that should have been done long ago. There may be some short term pain, but the long term gain will be well worth it. Threats from the Oil Company's are just that- threats. They will continue to work. I have made my living for 30 years in the " patch", but its time to do what is right. |
| RRE5353 |
I strongly believe that the government will make a huge mistake if it goes ahead with the implementation of the "our fair share" recommendations. Alberta is a leader in the Canadian economy because of the forethought that went into reducing taxes in the 90's. Increasing royalties would get us away from that line of thinking, and will result in a reduction of oil patch activity, essentially killing the golden goose. Much like the federal announcement to tax income trusts, this is a shortsighted, politically motivated cash grab that will ultimately result in reserves that are left in the ground. Corporate profits are not a bad thing (they're taxed heavily, either in the hands of the company or the private investor); an incomplete, flawed economic analysis that results in a loss of future economic activity is a very bad thing. Please do not jeopardize Alberta's future by making the oil patch a common enemy that the Premier can rally around to win votes in an upcoming election. Sincerely, [Information Removed] |
| RRE5354 |
As a government there is much emphasis on bulling in the schools, workplace etc. I ask that this government does not bend to the bullying that oil companies are attempting. Let them leave , We both know that it they would be back sooner than than you can say "royalty review report" It is time that this government stood tall. |
| RRE5355 |
I would like to be added to a list of Albertans that feel the government should not be pushed around by the oil companies. It is time for the Alberta Government to let the oil companies know who owns the oil. How much money have the oil companies made in the last 10 years? Other countries example Norway have not allowed this and the oil is flowing from the ground there. If these companies want to leave let them go, I would suspect that there are others who would make it work. Mr. Stelmach needs to get the royalties back to where Peter Lougheed had them or better. Ralph Klein did what he needed to do now Ed Stelmach must do what he needs to do. Don't be bullied around and make this work for Albertans. |
| RRE5356 |
Dear sir/madame, In response to a public call for feedback on the royalty review I'd like to offer my input on this critical question. First, I'd like to pass on my wholehearted support for the insights and suggestions offered in the report. They reflect pretty well exactly the common wisdom shared over coffee and doughnuts by many of my fellow Albertans. More importantly, I can't begin to say how thankful I am to the writers of the report who seemed completely oblivious to their origins in industry and the oilpatch. One may well disagree with the report's contents, but its pedigree and the commitment of the panel are beyond reproach. I've no doubt if I were in a similar position I would stick doggedly to my biases and preconceptions. In contrast, the panel surprised and informed. As to recent critiques of the report, I've found little substance in the arguments. When CAPP and others call for 'stability,' I'm underwhelmed. I don't own a home and I won't be able to own a home in the forseeable future largely thanks to the energy boom. This has created an enormous amount of instability in my life, and many of my hopes are long gone. I'm also less than impressed when some argue for grandfathering certain projects. If I paid my taxes last year, I can't say 'hey, we had a deal,' this year if there's a tax increase. But that seems to be a right the oil and gas industry takes for granted. Another argument I'm little perplexed by is when the oilpatch says it's facing increased labour costs. My understanding of the situation is that high demand for labour is pushing costs up for everyone. A large part of that demand is coming from the oil and gas sector. So it seems a touch strange for the oil and gas industry to bemoan their own creation. Besides, if it wasn't profitable to hire workers at inflated rates then of course the industry would stop and the hiring binge would end. But hiring goes on as fast as ever. Obviously, the economics can't be marginal. While a lot of ink has been spilled on royalty increases, I am also in favour of the report's suggested cuts to royalties. A recent PSAC report argued as many as 10,000 gas exploration jobs have disappeared in Alberta. These are well paying jobs that have helped keep families on the farm, and help people buy homes. They will be missed, and I've no qualms about giving a break where it's needed. Overall, I feel we're getting too little for our resource. Perhaps we shouldn't be the most onerous royalty environment, but aiming for the middle of the pack seems perfectly fair. And really there's simply no reason Alberta should undervalue its greatest resource, and oddly enough it isn't oil. It's a stable operating enevironment where the rule of law applies in a civil society. It's taken us a long time to get here. Let's not sell it short. sincerely [Information Removed] |
| RRE5357 |
I write to you today to express my concern with the report of the Royalty Review panel. I believe that this report is flawed. It fails to appropriately consider the low reserves, relatively high cost, and rapid decline rate that is inherent in the Western Canadian Sedimentary Basin. It also fails to appropriately consider the multi-decade commitment and the true cost of the oil sands development. This report bases its recommendations on outdated or erroneous costs and it incorrectly suggests that the oil and gas industry has direct control over costs. Direct comparison against other jurisdictions/countries without proper consideration of their vastly different economic returns led to flawed outcomes. As a newly graduated Chemical engineer I am concerned about the impact that approving this report would have on the industry and on Alberta. The average Albertans prosperity is directly related to the ability of the oil and gas companies to prosper in Alberta. The effects from this report, if enacted, will cascade downward at a phenomenal rate. It is not only my job security that worries me, but the effect that his report will have on every Alberta citizen. I have put a great deal of thought into the jobs/industries in Alberta that are not affected by the oil and gas industry and I have only come up with two: politicians/civil servants and the army. If most Albertans do not see that the prosperity of Alberta is directly linked to the ability of the oil and gas companies to prosper in Alberta then they are in for a big shock. 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 Alberta Children’s Hospital Foundation; companies and individuals will no longer be able to afford the donations. This excerpt from the Children’s Hospital Foundation 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? This royalty report is misleading and does not contain assumptions that are realistic. They need to go back to the drawing board and do it right; they should have done it right the first time, and not wasted tax money making reports that are based on old data that is not relevant today, and making assumptions with out grounding them in fact. When Albertan’s find out that this is just a political statement, it will be too late for Communities and Foundations that directly benefit from Oil and Gas investment. You need to do the right thing and make your decision based on fact, not fiction from the Royalty Review Panel. Change is a fact of life, it’s the only constant, but the Alberta government needs to implement change that is well thought out and fair to all Albertans and the industry that supports our communities. |
| RRE5358 |
My name is [Information Removed]from Vulcan. The oil industry in our county has been positive. Our county taxes are 50% generated from the oil industry. Our towns are growing because of the opportunities of employment by the oil industry. Our families are able to move back home and their kids are able to go to our schools. I keep thinking about the NEP and how it devastated our province. I think if this proposal is implemented we will have a repeat of that policy. What is the Government of Alberta going to do with all the unemployed young Albertans? Our family has several members of it employed because of the oil industry. I hope that I won't have to call our Premier Mr. Trudeau next Wednesday. |
| RRE5359 |
I am oppesed to the Royalty proposal., as it will cost a lot of the workers their jobs. This would not improve the goverments revenues but reduce them. |
| RRE5360 |
I would like to urge the government not to accept the recomendations of the Royalty Review Panel. I work for a company which focuses mainly on natural gas development. With gas prices currently depressed, our company's breathing room has tightened considerably from just over a year ago. Added royalties would further force a decline in production as our wells become economical. With reduced cash flow, we will have less to re-invest in new development; this can only mean that the number of employees we currently have will be too high. I don't want to risk losing my job, or see my co-workers lose theirs. |
| RRE5361 |
As a life-long Albertan, I support the implementation of the royalty review recommendations in their entirety. To appease the oil firms, a three-to-five year implementation period may be palatable. The review panel is composed of an excellent cross- section of buiness professionals and businesss academics, who completed their report with due diligence. Since 2001, 18 countries have increased royalty rates, including the U.K. with no adverse affects to their oil industries. Alaska also collects significantly higher royalties than Alberta. The oil companies act as if they placed the oil in the ground. Their arguments and threats are based on greed and they demonstrate little respect for Albertans. To ensure Albertans' economic future, oil companies have to pay their fair share and refrain from acting like spoiled children. The Alberta government needs to act on behalf of the people, or is it the oil companies who continue to dictate how this province is run? I find it very distateful when a foreign oil company CEO (Exxon) comes to Alberta and threatens us with slowdowns and pull outs if royalties are increased. This is a rational businessman? This is uncontrolled greed!! By the way, a planned closed door meeting between Alberta government members and oil industry executives is incongrous in relation to integrity and transparency. [Information Removed] Calgary, Alberta |
| RRE5362 |
After 20 years of rcovery from the federal government's subversion of Alberta's energy industry it seems ludicrous to consider shooting ourselves in the foot my limiting the industries current activity levels by increasing taxation. Extra royalties would anyway, end up bolstering an archaic Heritage Fund which we failed to use to good advantage during our years of oil development drought. Please leave the current royalty structure in place and enjoy the additional tax base provided by the current expansion in our resource base. Thank you, [Information Removed] |
| RRE5363 |
As a small [Information Removed] aviation business owner whose customers are almost exclusively in the oil and gas business in Alberta, I am very concerned about the recommendations contained in the royalty review report. I do not think that the " ordinary Albertan " appreciates the devastating effect on oilpatch activity that the recommendations, if implemented, will cause. We have already received correspondence from some of our major customers stating that they will be significantly reducing their Alberta operations if the drastic royalty changes are implemented. The obvious result for our business will be layoffs and divestiture of assets . The report did not contain any analysis of the potential for reduced oilpatch activity on the government's overall tax\royalty "take ". The assumption seemed to be that activity would remain at the existing level which is clearly not the reality. The lack of any " grandfather " provisions or consideration for a more gradual phase in of royalty increases offends my sense of fairness. The resource industry is prepared to discuss long term changes to the royalty structure in Alberta - to have the changes proposed by the report implemented without consultation will clearly cause a significant economic slowdown in Alberta. |
| RRE5364 |
To your attention, proposed changes already have worldwide alert and remification will be worldwide. This just came from Shanghais very influential Advisory service: ...the Panel's recommendations exemplify the bad economics that are at the root of all government attempts to 'fairly' distribute wealth. On September 18, 2007, the Alberta Royalty Review Panel released recommendations proposing changes to the Alberta oil sands and conventional oil and natural gas royalty programs for the consideration of the Government of Alberta. Changes proposed include higher royalty rates on high productivity wells and lower rates on low productivity wells depending on commodity prices, the imposition of an "oil sands severance tax" and the removal of the "old" well classification that attracts a higher royalty rate under the current Alberta royalty system. The net effect of the changes would be a sizeable increase in the Government's 'take' from the energy industry. [Information Removed] It has a strong Socialist flavour and, as noted [Information Removed]in an article posted at [Information Removed] it reads more like something one would expect to emanate from Venezuela than from a supposedly pro-business province of Canada. Politics and ethics aside, the Panel's recommendations exemplify the bad economics that are at the root of all government attempts to 'fairly' distribute wealth. What the Panel members are seeing and what well-meaning politicians -- we are making the leap of faith that a few politicians do actually mean well -- usually see are the direct short-term benefits of an interventionist policy to one group of people. In this case, what is being seen is the additional $2B that the Alberta Government will be able to use to provide better services to local residents. But what are typically not seen are the indirect and long-term adverse ramifications of the policy. In this case, what are not being seen are the many changes to investment decisions that will occur in response to the changed tax/royalty structure and the further effects that these altered investment decisions will have on economic growth within Alberta. In all likelihood, if the proposed changes are implemented then 10 years from now Alberta will be a poorer place than it would otherwise have been. Best regards, [Information Removed] ----- Original Message ----- From: To: [Information Removed] Sent: Thursday, September 27, 2007 8:00 AM Subject: RE: Re: RE:Royalty Review Feedback (ACR-160569) (AC161342) Thank you for visiting the Alberta Government Feedback and Inquiry Web Site. We have received your question, and are now forwarding it to the appropriate area. We try to respond to all questions within three working days. Your Alberta, a new e-newsletter from the Government of Alberta will keep you up-to-date on the province?s latest projects and plans. To sign-up, visit http://www.gov.ab.ca/home/534.cfm This site is frequently updated to provide you with important information about Alberta programs and services. It is also an opportunity for you to provide your government with feedback on the issues that concern you. Please visit our site again soon to read an article, or send a comment. Toll-Free: 310-4455 Internet: www.gov.ab.ca (AC161342) DATE RECEIVED BY MAIL WAS Thursday, 27/Sep/2007 09:26:29 DATE ENTERED {ts '2007-09-27 07:30:01'} |
| RRE5365 |
I would like to take this opportunity to thank the Government for reviewing the royalty structure on behalf of Albertans. I would like to make a few key points about the review. Globally, according to the review panel, Alberta's royalty regime is at the bottom of the comparator countries and and states. Understanding the need to encourage business development in Alberta, it nevertheless appears that we are not retaining a large enough share or fair share of our diminishing resources. I hope the Alberta government will not be bullied or threathened by big OG companies such as Encana who wishes to influence a fair decision in mid-October. The short-term outlook is for reduced natural gas demand and prices, hence companies like Encana were going to cut budgets anyway. The key is the royalty scheme is a long-term vision for Alberta and the outlook for natural gas is promising in the future. The original royalty schemes developed in the 70s is to promote early stage higher risk oil sand development within a lower oil price environment. However, there has been a structural change (e.g., higher gloal demand) resulting in higher long-term oil prices. Therefore, an appropriate and fair royalty sharing regime should be developed which takes into account the higher expected oil sands revenues. We must not make decisions based on our current (short-term) pocketbook. We must think of Albertans (Canada) first to ensure that our children and grandchildren have the resources and opportunities that we currently enjoy. We must always remember that our oil resources will diminish over time so we must properly plan for Alberta's future. I support and encourage the government to ensure Albertans have a fair share of OUR resources. Thank you for this opportunity to view my concerns and opinions. |
| RRE5366 |
I support my family through employment in the Alberta oil and gas industry, specifically the conventional oil and gas services sector. The downturn in natural gas prices and corresponing downturn in natural gas drilling activity has significantly reduced my near term financial prospects and my ability to contribute to the Alberta economy as a whole. Thousands of Albertans are being affected the same way directly and all Albertans are being affected indirectly. The boom is over in my part of Alberta as far as I'm concerned and this is absolutley the wrong time to raise royalties and the right time to reduce them. I understand Albertans own the oil and gas and Albertans are entitled to a share in production profits but economics in Western Canada is already reducing natural gas driling activity and the resultant cash flows that royalties come from. Raising royalties will reduce monies Albertans receive not increase them. |
| RRE5367 |
I am hoping the government will do the right thing and increase the royalty fees for big oil companies who are profiting obscenely from Albertan's natural resources. A fund should be set up where a portion of these royalties should go to raise long term revenue to benefit young albertans for generations to come. Education should be our prime focus, every Albertan deserves a fabulous and free education, including post secondary. Whether the natural gas and oil comes out of the ground today, tomorrow or 10 years from now it makes no difference. The royalties should be fair to all, not just those who lucked into the money. When the resource is gone, it is gone...no more chance to have that money benefit all Albertans. Don't believe the oil company bullies...yes they might take their toys and go away for a while, but they will be back. If not the same company, then some other company that can do the job better. |
| RRE5368 |
Thank you for the opportunity to provide feedback on the royalty review report. I'm sorry I don't feel I can contribute without feeling that I will be subject to unauthorized collection of information and spying that this government or its "so-called" arms- length groups have participated in. Trust and leadership are the most important attributes of government and a lot of work needs to be done. The 2007 royalty report goes a long way to describing my feelings about the fair share Albertan's must demand for the great sacrifices we are making as citizens. Of course, not all Albertan's are sacrificing. Not all Albertans work in oil and gas and still choose to live in Alberta. Some of us don't choose to drive gas guzzling vehicles and still choose to live in Alberta. Some of us don't benefit from tax cuts, health care premium cuts, bus fee cuts, school fee cuts, private school subsidies, municipal tax cuts, increases in cost of living, increases post-secondary education costs, and lousy transportation infrastructure. We don't benefit from these things that would result in a fair share for all Albertans, because our government chooses oil companies as winners and chooses all others to be losers. For those that work in oil and gas in Alberta and receive 100% of salary bonuses and stock options perhaps they don't need better roads, lower health-care premiums, lower fees, and so on. We know they are paying taxes at the same rate as those not earning 100% of salary bonuses so they certainly don't need the help. The rest of us are doing much worse and we are in fact working very hard for this province. Working hard to diversify the economy, raise our families, and contribute to a sustainable future for Albertans, Canadians, and around the world. When do all Albertans get a real benefit. One that levels the playing field, diversifies this province, and gives people that want to live here after the boom a reason to stay. Of course during the boom many people are suffering. Of course the poor will get poorer and the middle-class, outside of the chosen industry, will suffer. Choose to lead. Choose to diversify. Choose to strive for more for all Albertans. Choose to take a stand with the royalty report and then call an election and let Albertans choose their future. |
| RRE5369 |
With regards to conventional oil and gas,Alberta is already one of the most highest cost drilling and completion cost environments in the world. The propose royalties will only result in exploration capital being channelled to other countries. Pertaining to the oilsands, a lot of capital has been spent and is in the planning stages. It is unfair to change the rules in the middle of the game. However that being said, there could be a better mechanism, whereby the royalies are index to oil prices. As the oil price increase the royalies increase. Just be prepared to share the down in a $25 oil environment. If the propose changes are implemented, you will have put the final nail in the Alberta Advantage. I will tear up my Conservative Membership, and never vote again for the Conservatives. |
| RRE5370 |
[Information Removed]provides drilling and completions management and wellsite supervisors to the oil and gas industry. I would welcome your visit to my office so you can see our activity levels. I have publicly stated I will fund the company as necessary over the next year in order that the corporate entity survive. I am 53. I will be using the money I am saving for my retirement. The NEP was an easy enemy, the changing of the trust rules by the federal conservatives was a tough swallow. Now this. I have no pension only my savings and the money I have invested in the company I am president of. My fear is the legislation you and your government is contemplating will be the focus point of blame (probably with some justification) for taking rice out of all of our rice bowls. |
| RRE5371 |
Dear Government of Alberta, I am a grade 9 student in st. albert alberta and we are learning about the rolalty report in our social studies class. My opinion is that you should raise the royalty from twenty five percent to thirty three.First of all that wasset a long time ago (the twenty five percent ) and times have changed since then. Also we have lost two billion dollars that could have gone to more useful things than the oil companies. I think that the royalty should have been changed a few years ago because it could have had so many benefits for Alberta. Thank you for taking the time to read my message. |
| RRE5372 |
2007 has seen a terrible lull in service sector jobs and activity. The timing of changes to the royalty structure is way off and seems to assume activity levels and production that occurred in 2005/2006. These changes will affect the rural areas greatly because this is where many of the service companies hire and operate. Use the royalty report to start some meaningful discussions and change with the oil and gas companies, but DO NOT adopt the current recommendations as written. Alberta does not need a further down-turn in activity or production. Thank You |
| RRE5373 |
I’ve worked in the work in the Oil & Gas Industry here in Alberta and overseas for over 25 years. Some things to consider: 1-The sloppy way that producers are allowed to get away with gas and liquids measurement in field gathering systems and plants is horrible and the AUB is not policing it well at all. Bottom line- Albertans are being cheated out of millions due to poor hydrocarbon measurement practices by Industry 2- We are reaching a peak Oil scenario globally and there is simply very few other places for Oil companies to go that are secure politically stable and offer substantial reserves. All the discussion has been about poor gas prices that are now rising. What about the record Oil prices that we have today? 3- Major Engineering firms are now shipping the routine engineering out to India, same for the drafting, Instrumentation skids are coming from Italy pre assembled on CRRL Horizon an engineering is being done in the US that was previously done in Alberta. Fabricated water purification skids are coming in from the US when Canadian and even Albertan comapies could supply. All because we are in a mad rush to develop it all at breakneck speed. And recently Encana and others are threateneing to move heavy Oil upgraders out of the Province forcing us to ship raw bitumen out of Alberta. Come on the job loss is already substantial and cutting back would reduce costs on both labor and materials and keep these jobs in Alberta where they belong, Implement the Alberta Royalty Review the way it is [Information Removed] |
| RRE5374 |
Honorable Sir/Madam Being citizen of Alberta and living in my constituency, I feel that it is my duty to bring your attention to my view point and concerns regarding royalty report presented by the panel appointed by the government. I decided to come to Alberta based on the solid sustainability and continuous commitment to enhance the living standard of Albertans to higher level by competent and trustworthy government regime. Based on that I have done some professional and ethical planning for my near and far future keeping in light of some calculated risks but not considering high level of uncertainty. And start working in oil & gas industry I want to inform you that no matter what and how government decides about the royalty decision. I would like you to consider that how you will make sure that because of that decision economy of Alberta must not suffer. If it dose, I will loose my job that will dictate how severely I will be get broke financially. At that time I will send you one more email asking you to tell me how should I look after my (three children aging not more than 10 years) family and my both disabled aged parents who live with me in same home. I believe you will not recommend me to go on social services and not paying taxes. Neither do I. Going on social service is against my self respect, prestige and self ego. This uncertainty is thinning the trustworthiness on government that has been built for the last few decades as I pointed out above. My family and I are very concern about the situation that might lead us to migrate from this province or even Canada because of not making the fair decisions, if happens, made by the people that are elected and sitting in assemblies to present us. Thank you [Information Removed] |
| RRE5375 |
DEAR ED I WOULD HOPE THAT YOU WOULD NOT CHANGE THE ROYALTY STRUCTURE ON NATUARAL GAS.JUST THE FACT THAT IT COULD HAPPEN HAS DELAYED PROJCTS IN THE GRANDE PRAIRIE AREA.A ONCE UNSTOPABLE ECONOMY IS SLOWLY GRINDING TO A HALT.I THINK IF YOU INCRAESE ROYALTIES TO GAIN YOUR 2 BILLION THE DAMAGE YOU CREATE TO THE ALBERTA ECONOMY WILL BE COMPARABLE TO THE DAYS OF THE NATIONAL ENERGY POLICY. [Information Removed] |
| RRE5376 |
THe report is flawed first of all it fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in Western Canada and the cost and mutli-phased oil sands development commitment. This will negatively effect Alberta's economy greatly as the oil companies have already started significantly reducing their capital spend. This will reduce or eliminate ~$6 billion annual investment into Alberta. |
| RRE5377 |
The Premier should follow through on his promises to seriously review oil and gas royalites. The report is in and he cannot sweep it under the carpet but should follow the recommendations. There also must a public accounting for the lost revenue of the past couple of decades. What kind of deals did the previous premier make with oil and gas companies - have Albertans and Canadians been weaseled out of public money that should have been coming to this province? If raising royalities slows development in that area so much the better. It is a non-renewable resource that will only increase in value in the future. A cooling of the province's hot economy leading to managed sustainable growth is a much higher aim that simply selling out to the highest (or in our case not the highest) bidder. |
| RRE5378 |
Dear Minister Knight, I am writing to support the increases proposed to Alberta's royalty structure. I have read the report and am appalled that Alberta's rates are valued at less than many third-world countries. The stability and highly-skilled workforce that Alberta can offer should not be sold off at bargain-basement prices. Industry claims that their investments would be pulled out lack all credibility, especially in this era of record-high oil prices. Even if the price of oil were to drop in half (a highly unlikely scenario), they would still stand to make a healthy profit. And like most Albertans I know, I believe that a slowdown in the oil industry would be of benefit to the province in the short term, and know that in the long term, these companies will still be back to get our oil, regardless of royalty rates. Using the increased royalties to increase the prosperity of all Albertans is this government's task now. I ask that you don't let down the trust that Albertans' have placed in your government based on the spurious threats of a self-interested industry. Respectfully, [Information Removed] |
| RRE5379 |
Dear Mr. Premier: The oilsands industry would have you believe they will eliminate some projects if the full review is implemented. They are not telling the truth. These projects have internal rates of return beyond anything seen outside of banking, and they will earn those premium returns over 30 to 40 years. You have to realize that, in an environment where overpriced assets are falling across many areas (housing, finance, share prices), lower returns are likely across the economy. In that context, a project that not only earns 13 or 15 percent, but does so for decades, is unheard-of. If you implement the full review, the return on some projects will fall by a couple of percent, depending on costs and prices. Note that if a project like Fort Hills returns 8.2 percent at $45 per barrel, it is somewhere way into double-digit percentages at $75 or $85 per barrel. (It is a scandal that, in going from $45 to $85, under the current regime, $30 of that extra $40 goes to the companies - no wonder they are building so frantically!) So, say, for example, that the new regime cuts the return on Fort Hills from 15 to 13 percent. There is still no other investment opportunity that can yield 13 percent, fully compounded, for over three decades. The firm will, in that circumstance, change nothing. The same analysis applies for possible new projects. There was an article in the Globe today from a gentleman at FirstEnergy Capital, who argued that rates of return had to be adequate, or capital would leave. Yet I found it funny that he didn't mention any actual figures. The fact is, rate of return is the right measuring stick, and yet nobody talks about it. The industry scrupulously avoids discussing actual rates of return for each major oilsands project, because they are far too high. [Information Removed] The fact is the current scheme is a giant giveaway, and the oilsands is where the money is. Remember they will pay nothing for all the water to be used and nothing for the destruction of the Athabasca river. Simply carrying out the recommendations of the panel, including the new monitoring system, will not cause an industry meltdown. It will cause a gentle slowdown from panic to steady growth. More importantly, you will collect tens of billions of dollars that legimately belongs to the people of this province, not to Exxon Mobil, Shell or Total. Give a bit on the deep gas, if there are indeed some minor errors in the report, but please do not give away $20-30+ billion in the face of a lot of empty threats. Thanks very much, The anonymous economist... |
| RRE5380 |
Accept the recommendations of the Royalty Review Panel - in full, without modification. Do not submit to the heavy-handed scare tactics of the oil companies. |
| RRE5381 |
Dear Mr. Premier: Your government has the responsibility to encourage economic development, act as steward of the province's natural resources and environment, and to maximize the finanical return for all Albertans and indeed all Canadians. The tar sands should not be a source for the oil and gas companies to maximize their profits at the expense of the current and future public interest (e.g. social programs, education, health, etc). I urge you to reform the current oil and gas royalty system that better balances all competing interests. In other words, the status quo or a watered down royality system is unaceptable. Ingore the expected but unwarranted hue and cry of the oil sector, stand firm and be a bold leader in this regard. Thanks for the opportunity to provide this input. [Information Removed] |
| RRE5382 |
Today's tarsands royalties are a relic of a bygone era when huge incentives were needed to stir interest. For too long they've been very inappropriate. Threats of less drilling due to possible royalty increases are camoflage to perpetuate injustice: less drilling is inevitable due to lower gas prices. |
| RRE5383 |
I have concerns about the feedback already given by some of the large players in the Alberta Oil and Gas sectors of the economy. Has enough consideration been given to the potential loss of revenue for all Albertans, even though the Royalty and tax increases would result in larger incomes for the government. In my opinion, keeping more Albertans working and the economy strong would be of a greater benefit to the overall health of the province. Please be careful to consider all impacts. |
| RRE5384 |
The only thing Albertians have going for them is the ecomony which is fueled by the oil industry. I believe that raising the oil taxes will shut down this ecomony. I also believe that the Conservative Government over the last many years has harmed Albertians by how they have handled existing money. Albertians should be worth trillions but were not, now the only one to blame for that is the government, and those financial choices. |
| RRE5385 |
I am shocked that the Conservative government of Alberta would contemplate such a potentially devastating fiscal regime. I have been a proud Albertan for several decades and have appreciated the honesty and integrity shown by the provincial government in dealing with all industries, creating an environment in which there is mutual respect , cooperation and most importantly trust. These values appear to be in serious jeopardy as Mr. Stelmach and his government considers sweeping changes which could bring our vibrant economy to its knees. This is the kind of policy and behaviour I would expect from an NDP government, not one that developed the Alberta Advantage. Saskatchewan and British Columbia may become the only real Canadian winners if all of this comes to pass, as those provinces appear to appreciate the value that the oil and gas industry brings in terms of employment opportunities and revenues. |
| RRE5386 |
I am not going to type a long winded letter on all the points you need to consider, as i am sure you have heard it all before by people far more qualified than I. I work directly in the oilfield service industry, and know through experience that there are many other places for the major oil companies to extract oil at a fraction of the cost of an oil sands project. These guys will pull out if only to make a point. They have proven that over the past 7 months. Everyone believed they could charge whatever they wanted and began jacking the prices, they corrected the market, and no one thought it would have lasted this long. Now we want to charge them more royalty tax in addition to that. I understand that it needs to be raised, and we haven't been charging enough, but I urge you to come up with a plan that will work for everyone. This is too important to Alberta, and the rest of Canada to ignore the potential ramifications. |
| RRE5387 |
I just read "A royal 'scare tactic'; As foreign workers pour in, energy companies warn of job cuts" in Fast Forward Weekly (Thu 18 Oct 2007) written by Jeremy Klaszus. The words "scare" and "threat" were sprinkled all over the article. What the industry "threatened" about, i.e. Encana's 1 billion threat, Talisman's 500 million, Conoco's 500 million and CNRL's 7-8 billion, are NOT (repeat, NOT) a scare tactic or a threat. These big companies have elsewhere to invest their money and, with the Alberta royalty change, those other places becomes more attractive than Alberta. So, logically, the money will be shifted out of Alberta. Heck, even share-buy-back can be more attractive. Just simple business logic, if you want to invest, where do you invest? To the most attractive, of course. On the other hand, Alberta will not loose its wealth. Oil and gas will still be there. It will be deferred, though. In about 10 years from now, when all those more attractive places has already been developed and depleted, the industry that "ran away from Alberta" would turn its head back to Alberta. By then, hopefully gas price will be $11 or higher. That would mean about 10 years of unsignificant development in Alberta. So, don't take the industry's "threat" lightly because their "threat" is based on very simple business logic. |
| RRE5388 |
Don't let the oil companies intimidate you. Raise royalties. We've been essentially giving away our resources for far too long. If the economy slows down a little, then that would be a good thing. We shouldn't be in such a hurry to strip all the resources out of the province. |
| RRE5389 |
am writing to express my concern over the recommendations presented in “Our Fair Share” the report of the Royalty Review Panel. I am currently employed as an engineer with [Information Removed]. As such, I may be accused of not being the most object of evaluators; however, my work puts me in a position to understand and evaluate the threat that the proposed royalty changes will have on Canadian Natural’s business and on other oil and gas producers, and the results are disturbing. In 2006 Canadian Natural’s activities directly and indirectly employed 93,000 Albertans, most through contracted supplies and services. I expect that other producers of similar size active within Alberta would post similar numbers, and that does not account for the dozens of smaller but still significant producers within Alberta. The review panel focused on a projected increase in government take of approximately $2 billion per year. The report states that this increase in royalty income would be realized at “current price and production levels”. The report largely ignores the fact that the proposed royalty changes will make a large proportion of projects currently pursued in Alberta subeconomic for oil and gas producers, resulting in a drastic decrease in oil and gas activity level, and a resulting decline in production levels. Therefore as a direct result of the proposed changes, it is highly unlikely that the increase in government take will approach $2 billion. In fact, analysis by [Information Removed], a leading firm in energy investment, predicts that the expected decreases in activity level will offset the increased royalties by 2010, leaving the government in a revenue neutral position. The key consideration is that this revenue neutral position will be achieved at great cost to the province and people of Alberta in terms of both direct employment and indirect support of goods and services. Upon release of the review panel report , market value in the oil and gas sector in Alberta dropped by over $8 billion (4X the panel's estimated annual royalty increase). The drop represents only the tip of the iceberg in investment capital pouring out of Alberta should the panel recommendations be adopted as is. The analysis presented by the review panel appears to be inaccurate in numerous assumptions, such as: 1) Some of the capital costs used to derive economic analyses appear to be low by a factor of about 2. Accurate cost assumptions are critical to developing appropriate models to evaluate future impacts and ensure no unintended consequences. This oversight alone dictates that the credibility of the report and analyses presented therein receive detailed review prior to being adopted. 2) The report states that 82% of natural gas wells will pay lower royalties. In fact, with the current one year natural gas price, all gas wells will pay higher royalties. This strains the economic viability of gas drilling which is already stressed by low gas prices. 3) 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 and a modified program was adopted by the Alberta government to ensure that economics for drilling these types of wells remained viable. The panel recommendations put this development in jeopardy. 4) The panel report claims to have considered the need to maintain “Alberta’s competitive edge for energy investment”. A recent announcement by Encana that their capital program in Alberta would be reduced by $1 billion if the panel recommendations are adopted is only the first indication of the magnitude of reduced investment in the energy industry in this province. The media has portrayed Encana’s statement as a threat, or as posturing designed to appease their shareholders. I do not believe this is the case – it is simply a reality of the economic restrictions that the proposed royalties will place on development in Alberta. [Information Removed]and other companies with the ability to direct significant portions of their capital program outstide of Alberta will realize a greater return on their investment by doing so. The panel report appears in some instance to have been prepared with flawed or outdated information, resulting in a number of erroneous conclusions. It also appears to largely overlook the impact of the panel’s recommendations on oil and gas activity in Alberta, and on the thousands of Albertans whose employment and therefore ability to reinvest in the Alberta economy is directly or indirectly affected by oil and gas activity. I urge the government to spend the time and effort needed to adequately evaluate the panel recommendations, and to seek the input of qualified industry professionals in formulating law which will have a profound, and if enacted as proposed by the panel, devastating impact on the economy of Alberta. This impact simply cannot be overstated. On a personal level, I can say that until the present time, I had planned to spend my career and my retirment in Alberta. I am now desparately looking for an exit strategy which will allow me to support my family in another province. |
| RRE5390 |
The proposed increase in royaltys is to high. The provincial government does not need more money, it needs to control spending. Any increase in royaltys should go directly to the people of Alberta not to the government to spend. Taking more money from the private sector that operates very efficiently and reinvests and spends it profits in the economy and giving money to government that by its nature operatres very inefficiently is not in the intrest of Albertians. |
| RRE5391 |
Mr. Stelmach, As a manager within a large oilfield services company based in Calgary, Alberta and as a born and bred Albertan, I would offer the following thoughts. My career in the oilpatch began in 1982 and excepting the odd short term venture into other industries, has continued until today. I can honestly say that my experience has brought me to conclude that the oil industry is one of the few occupations that rewards hard work with honest pay. Through my years in the industry, I have had the pleasure of watching the oilpatch evolve into a true and legitimate career choice. Such advances in safety, training, technology and equipment are rarely seen in any industry. Now, as the most wealthy and only debt free province in Canada, we seem on the verge of taking more from the architects of our prosperity. The reports and letters that I have read indicate that industry agrees that the royalty structure needs attention but that fairness cannot be achieved without industry involvement and participation. Everyone agrees that Albertans deserve a future in accordance with its abundant natural resources and a share is due. My request is that we do not create a situation that leads to a larger share of a smaller industry. For all our futures: Please be careful, fair and equitable. Sincerely, [Information Removed] |
| RRE5392 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 12:16:10 DATE ENTERED {ts '2007-10-02 12:30:01'} |
| RRE5393 |
In my opinion, the government needs to increase the royalty rates so that ALL Albertans get their fair share of the revenue that is generated from our natural resources. I realize that it costs money to get these resources out of the ground, but the oil/gas companies have been recording huge profits for many years; on the backs of Albertans. If increasing royalty rates slows the rate at which companies extract the oil and gas, so be it. I don't think we want to "gouge" these companies but they have had it VERY GOOD for a long time. It is time we reclaimed the resource revenue for the betterment of our province and not just corporations. I wholely support increasing the royalties. |
| RRE5394 |
A province like Alberta has very limited particiapation from the stakeholders. This government has a review panel, but will not consult with this panel once the report is done. Is it because this is the opposite views of this far right wing government! |
| RRE5395 |
If the Royalty Review Panel Recommendations go through, the oil & gas income trust industry will have been subjected to 2 government interventions, one federal and one provincial, in one year. This will have have eroded an estimated 25-30% from the industry's market capitalization. This, combined with historically low natural gas prices and high CDN/US exchange rates creates the perfect storm for our business environment. Natural gas and conventional oil royalties should not be tampered with. |
| RRE5396 |
There certainly has been a lot of press with respect to the Alberta Royalty Review Panel Report. I would request that our government review not only the report, but also review the various letters and information provided by various oil and gas organizations and producers e.g. CAPP, SEPAC, CAPL, Encana, ConocoPhillips, Talisman, Nexen, Petro-Canada, etc. I would strongly urge our government to sit down with industry and discuss the report before making any royalty decisions. I fear that if our government accepts the proposed changes, our Province will be heading for a recession. I have no problem with higher royalties, if they make sense for all Albertans. [Information Removed] |
| RRE5397 |
As both an Albertan and an energy industry worker, I understand the importance of balance between the getting the most for Albertans while minimizing the negative impacts to the industry. I don't believe the review report recommendations strike that balance. Changes of the scale proposed by the report would have a significant negative impact on the industry and therefore a significant impact on the overall Alberta economy. This concerns me and should concern all Albertans. Royalty increases need to be scaled back significantly, recognizing that the cost of recovering oil and gas in Alberta is significantly higher than in other parts of the world to which the report compares. The Alberta economy is the envy of Canada - lets keep it that way! |
| RRE5398 |
Further to my comments on the Royalty Review Panel report, which I have sent in previous emails on September 20 and October 3, I want to share some additional comments arising from some reading I have been doing since then. I have just finished reading a book, “Making Globalization Work,” written by Joseph Stiglitz, who was chief economist at the World Bank and Chairman of President Clinton’s Council of Economic Advisers. A winner of the Nobel Prize in Economics in 2001, he is currently professor of finance and economics at Columbia University. In a chapter entitled “Lifting the Resource Curse” Stiglitz makes some comments which struck me as being very relevant to the current royalty debate in Alberta and which I wanted to share with you. I quote a couple of the most relevant statements below: • “The first challenge facing any resource-rich country is to ensure that the public gets as much of the value of the resources that lie beneath its land as possible. This is far more difficult than it might seem. Even in countries with stable and mature democracies, there is an ongoing struggle by oil, gas and mining companies to seize as much of the wealth for themselves as possible.” • “Think of oil in the ground as an asset: a country’s natural resources are its endowment, located below the ground; like any other asset, they need to be managed. When they are removed, the asset is gone. Unless the proceeds are invested, the country is poorer. Just as a company’s books show the depreciation of its assets, so too should a nation’s accounting reflect the depreciation of its scarce resources.” In this chapter, Mr. Stiglitz focuses on the issues facing resource-rich developing countries. However, he is also critical of the United States’ natural resource policy – “which gives away mineral rights and is controlled by special interests and is a model for how things should not be done.” However, my reading of the Royalty Review Panel’s report suggests that, by comparison with U.S. jurisdictions, the situation in Alberta is even worse! I have also been reading the reports of those that disagree with the Panel’s recommendations. I have serious problems with many of these, and especially object to the threats from the petroleum industry. I accept that implementation of the recommendations may result in some slowing of current growth in the energy sector, growth which I consider to be unsustainable and is creating serious economic problems – including higher costs to the energy industry. However, there is one criticism – one that perhaps reflects a lack of understanding outside the province that royalties represent the economic rent to the people of Alberta who own the resources – that the government should be sensitive to. The contention is that this is nothing more than a “tax grab” by the province. (Stiglitz states that “resource-rich governments have a tendency to be profligate.”) I urge you to counter this misunderstanding by pledging that the additional proceeds from the royalty and tax increases will be invested in the Heritage Fund, and also used to reduce taxes to offset financial impediments currently facing start-up businesses in the province. Without discriminating against the energy industry, or choosing “winners and losers,” the obstacles to long-term investments and diversification of our economy must be eliminated. [Information Removed] |
| RRE5399 |
To Whom It May Concern, The panel's emphasis on their position that 57% of conventional oil wells, and 82% on natural gas wells will enjoy lower royalty rates is deliberately misleading. We assume that these figures keep getting presented without the stipulation that they are price dependant in order to sell the panel's findings. |
| RRE5400 |
There is a significant risk to goverment revenue not to mention the possibly elimination of jobs to thousands of Albertans should this initiative go forward without further consideration and research. The oil industry keeps Alberta alive and we don't want a dead Alberta AGAIN. |
| RRE5401 |
I am totally against the proposed Royalty Tax changes. This province is experiencing strong economic growth and the Alberta government is reaping the benefits through taxation from corporations and the substantial influx of people. Stelmeck's appears to have a socialist attitude intent on crushing capitalism, aimed at corporations and investors. Given the econmoic climate today with the subprime woes, high Canadian dollar and impending environmental controls, this Royalty Tax proposal would just add another "nail to the coffin". In a province presently with no deficient and in a good cash position, this appears just be a greed tactic. |
| RRE5402 |
I am currently working for a major oil and gas company in Alberta and I am have seen a rapid decline in activity in my short 3 year career. I don't believe that the royalty review recomendations take into account the decrease in activity that has already occured in Alberta. The recomendations of the royalty review I believe would hit an industry that is already starting to feel the pressure of high operating costs, steep gas declines and the high canadian dollar. I will not support a government that put's this plan into action. |
| RRE5403 |
I strongly support the outcome of the royalty review. I am very pleased that the Stelmach government has initiated this process. I believe that there will ber real benefits if the government implements the recommendations of the report. [Information Removed] Lethbridge, AB |
| RRE5404 |
Alberta's economy is booming because of the oil industry. The company's are paying taxes, the people who work for them are paying taxes, other industries are busy & paying taxes because of the oil boom. If oil company's start shutting down & pulling out of Alberta our economy will crash. You will end up with less revenue than you have now. In the 80's the federal government did this to the oil industry - is the provincial government going to do it this year? Do you think the oil industry will come back if they expect to get hit with a huge tax 20 years from now again? Do you think votes will vote for the Conservatives if they cause the Alberta economy to crash? I hope we are not about to see a repeat of the 80's crash which took a long time to recover from and our economy has only become really strong again because of oil. |
| RRE5405 |
I am a business owner in Alberta and very proud of it. I do agree that royalties may need review and maybe an increase, however the proposed increases are far to substantial. I do not believe the panel has thought of the devastating impact this increase will have on Alberta and all the people in it. I cannot understand why the government would like to cause a recession. The money that will be lost in bankruptcies alone will be terrible, how about the loss of people. As a business owner I propose that the royalties go up 5% per year, along with inflation. Do not destroy the economy we have here, we do not need to see the 80's over again. Thank You [Information Removed] |
| RRE5406 |
If the Royalty Report did not provide a comprehensive analysis of the total tax effect if implemented (ie the lost income tax revenue as a result of reduced oil & gas activity and the total downstream effect on the economy) then it should be tabled. Increasing royalites will slow development and economic activity and result in reduced government revenues long term. Alberta has a history of tax fairness...this report is not about fairness it is about more government control, intervention and taxation. |
| RRE5407 |
If you raise royalties, I can't see anything going into the pockets of Albertans. I can picture the opposite happening: The government of Alberta with have more money than ever, supposedly to go towards social programs which never seem to be done properly in the first place. The worst part is what will happen in the markets. If this goes through just sit back and watch the stock prices of all the oil/gas companies and trusts crumple, which will be coming directly out of the pockets of Albertans who are investing in Calgary run businesses. Unacceptable. |
| RRE5408 |
Do not adopt report as is, due to the fact of the weakness of inflated costs & inappropriate use of royalty vs taxes in report. It is rather unfortunate that no matter what you do with the report you will be the looser unless you compromise. Due to the blow up of income trusts last fall & the tentative increase in conventiional o/g royalties, the reports recommendations will certainly cause significant downturn in the rural area's of Alberta. Also I am not a member of any provincially union who would gain significantly with a larger wage increase to my salary once the royalties were increased. Regards [Information Removed] |
| RRE5409 |
We Albertans own resources, such as the oil sands, and thus should be compensated fairly for their removal by developers, who also use our water, air, and infrastructure, paid for by taxpayers. I strongly support a higher royalty payment, using the recent royalty review panel's recommendations as a minimum rate and following the advice of the Auditor General. I also want to see more openness and transparency on government dealings with energy developers. [Information Removed] Edmonton |
| RRE5410 |
Hi. I'm just lookink to know how many pounds, or kilograms i'm obligated to lift in my work place. I'm a cleaner. Thank you for a soon answer. |
| RRE5411 |
The time to have reviewed the royalty regime would have been 6 years ago! Now we are in the final throughs of a boom. Oil prices have more downward pressure. Gas prices are low with respect to costs. I think at this point in the cycle it would be foolish in the least. The time to review royalties immediately after a low as been reached. Now we will only precipetate or at least facilitate the flight of capital out of the market. I don't believe that is the signal Albertans wish to send to the investment community. Next time, manage the communication of such important financial issue with more care. This process has demonstrated recklesness which is not a positive thing. I understand the need for openess in light of previous government behavior, but such issues has royalty reviews need to be dealt with substantial care. That has not been evident by this process. |
| RRE5412 |
I believe the report to be based on inaccurate information and not well thought out. I believe the average Albertan is being mislead in terms of what exactly these proposals mean for our economy. I hardly call a report impartial when the chair refers to people who are asking questions and raising concerns as "folks fighting against us". I am born and raised and educated in Alberta, this is a home I am proud of. I am tremendously disappointed in the lack of understanding show by the panel and the inability to listen to the concerns raised. Although I think the money raised via this tax will be offset entirely by lost reinvestment, I do not believe your party has a good track record with the management of the hard earned dollars of Albertans. |
| RRE5413 |
While I believe that a review and overhaul of the existing Provincial Royalty Regime is needed, I share the views and concerns expressed by [Information Removed](and CAPP) in the October 2nd address to the [Information Removed]. I believe the optimum solution for the Province, each Albertan, the oil and gas industry and related service industries demands that a collaborative approach to solution development be taken to preserve and balance the interests of all stakeholders in the near term and over the longer term. I believe the Royalty Review Report does not adequately address and openly disclose the real consequences of implementing the recommendations. I respect that discussion is now taking place and is clearly outlining the very real and negative consequences of the proposed recommendations, that will ultimately be to the detriment of individual Albertans, and that far outweigh the perceived benefits I also do not see any stated accountability on the part of the Government to effectively manage any increase in cash flow that ensures that each Albertan ultimately does receive their "fair share". I believe the Government owns that accountability to each Albertan - that is, to clearly indicate how it intends to manage and use any increased revenue so that the perceived benefit is realized for and by each Albertan. On principle, I am very reluctant to agree to increased cash flow to an entity without an express statement and commitment as to how the funds will be used, especially when there appears to be a perception that it is for my benefit over the longer term. Personally, I believe that the proposed recommendations will ultimately have a negative impact to individual Albertans, and to the Alberta economy, as I believe it will slow the growth within Alberta to the point of triggering a recession, much like those experienced in the mid-80s and 90's. If this Government believes that it is necessary to move forward on the recommendations, to ensure each Albertan has a 'fair share', then I believe the matter should be brought to a plebicite so that each Albertan may decide what he or she believes is a 'fair share', all things being considered. While I appreciate the effort of the Review Panel, if asked for my "vote" on the matter, regrettably I would have to vote "no" to implementing the recommendations as presented. Personally, I do not believe the Report should go forward in any form, except perhaps as reinforcing the need for a review and overhaul of the Royalty Regime. I believe a different solution is needed that considers the foregoing comments and those of CAPP's [Information Removed]and that outlines the intended use of resultant funds, if any. I do not believe that the recommendations in the Report as presented are in the best interest of the oil and gas industry, the supporting service sector, or individual Albertans either in the near term, or the longer term. Respectfully submitted, [Information Removed] Calgary, Alberta |
| RRE5414 |
I believe that the royalty increase will have significant impact on the future investments in the field of Oil & Gas in the Province. With the rising of Oil prices, increase in commodity prices including steel and other materials, shortage of labour and consequently increase in labour costs (many companies importing foreign labour), increased environment regulations, and increased taxes, the situation is not promising. Many projects were put on hold, or had to be split due to rising costs. If the royalties increase as well, the impact can be dramatic. The percentage of Albertans working and depending (directly or indirectly) on the Oil & Gas industry is quite high and any recession in the investments in this field can impact the lifes of millions of people in the Province. Just imagine if those companies start laying off people, and the impact on the housing market. How people are going to pay off their mortgages after the last spike in the housing prices in the Province and especially in Fort McMurray. Canada can take advantage now of the current situation in the world (unstable Middle East, shortage in oil supplies, increased oil prices, boom in China & India) to invest more in this field and strive to be a leader in the World. Thank you |
| RRE5415 |
Implement the recommendations of the report now and quit ripping off the public!! |
| RRE5416 |
If the royalty review is accepted and implemented as written if will destroy the economy of Alberta. Right now it is one of the most expensive places to work and live. If there is a major bump in the economy it will cause the whole system to crumble. Certainly some increase is acceptable, but do not penalize companies for taking risk. Working in the oil sands is not a slam dunk for profits, there are many risks in the business. Look hard at rewarding risk and the reaping the mutual benefit, don't stop companies from investing here. There are many places all around the world they can spend the capital. If you implement the royalty review recomendations they will simply wait until a much later (decades or more) date to invest in the oil sands. |
| RRE5417 |
Does the Government think they are in charge of this subject? If they think they can push the oil companies for more royalties, you will get another National Energy Program, ane perhaps our government has forgotten what the Liberals did to Alberta. Albertans are extended to the limit with high Real Estate costs and the standard of living that they have been come accoustomed to, and for the most part they cannot withstand to be out of work. In a nutshell, if the government tries this, the Oil Companies will shut them down. Think about this real careful. |
| RRE5418 |
Get your math right... if every gas well generated more than 36% rate of return based on find cost of $3 per Mcf and sales price of $5.50/Mcf... every Albertan would be a multi-millionaire. Have you forgotten about the risk? This "fair share" report is nothing more than a "government greed" report. Higher royalty rate would simply mean less capital re-invested into the Alberta economy, to the detriment of many communities which have benefited from the oil and gas industry. Is the Alberta PC government prepared to make this bet that it doesn't? Remember the NEP... that was a "greedy" federal government... one that Albertans could not vote to remove. This "Alberta-born NEP = Fair Share" is exactly the same... just a different voice. Many Albertans will have moved their families and purchased homes in new communities implicitly predicated on the assumption of a stable policy regime. I wonder which these people would prefer: increased government revenues, which may result in collecting their “fair share” (tough to do when its in the gov't bank account), or; job security, a stable income, and stable home and property values. While these higher royalties would undoubtedly benefit the Alberta Government coffers – which is not the same as benefiting Albertans – they will be hurting Alberta’s many hard working and enterprising oil and gas industry workers and those in the industries that depend on them, and that is quantifiably the same as hurting Albertans. |
| RRE5419 |
My Husband and I both work and live in Grande Prairie. We are very concerned about the upcoming decision regarding the Royalties. Our livelihoods depend on the Oil and Gas industry. We own a small oil and gas Service Company and I work at a large Oil and Gas company. We are already seeing negative effects of the recent talk of increased royalties, such as a great decline in work and our property values. Your decisions may affect large Oil and Gas Companies but they can recover or take their work elsewhere, where as the everyday middle class worker will not! Please consider your decision very carefully. Thank you. |
| RRE5420 |
Uncle Stelmach, You will kill the economy if you don't smarten up. You are an unelected priemier who has painted himself in a corner. Your poll may say 80% of Albertan's agree with more royalties, but get the facts straight from economists. Either way I hope you are having a fun time because you won't be there for long when Alberta's work force is with out jobs. I'm sure by this year next time a poll with say 80% want you out!!! Love, [Information Removed] |
| RRE5421 |
I am distressed to see more and more foreign ownership of our oilsands. I fully support the 20% increase in royalty payments. I have watched my taxes and cost of living skyrocket to pay for infrastructure to pay for the boom while oil companies and government make massive profits, and surpluses. I have always voted conservative but in the next election will definitely vote green if the government backs down on royalty payments. |
| RRE5422 |
As a Calgarian working in the oil patch, I sincerely hope that most (if not all) of the recommendations are taken and adopted. I think that if there is a greater take for Albertans, this will benefit my children and grandchildren who were not able to participate directly in the oil patch given the dwindling nature of the resource. Another part of the equation that no-one has mentioned is that these large oil and gas companies are crying foul because they cannot turn WHAT THEY CONSIDER TO BE A REASONABLE PROFIT! Most of these companies have a rate of return requirement of the mid to high teens. Without getting this return, they are not interested in the project. They cry foul because with the higher royalties, they cannot earn this rate of return. Maybe the answer is for these companies to lower their expections given Alberta is a stable, developed location for business that carries considerable less risk than many, many other places in the world. To make this more paletable, why not dedicate some of these additional royalties to the remediation and reclaimation costs that will be required in Alberta. Most companies are woeful in actually reclaiming and remediating their abandoned properties and most of these costs (in the long run) will revert back to Albertans as companies go bankrupt and walk away from liabilties when all the oil and gas has been extracted. [Information Removed] |
| RRE5423 |
I am worried that the royalty review may cause Alberta to go into a recession. I lived through the NEP, and I don't see this as being much different. Even before the royalty review, the gas industry is not drililng as much as it did last year. This looks like a sure sign that it isn't as healthy as it was. PLEASE be careful. You represent a lot of Albertans in a lot of industries. All of us are trying to make mortgage payments and keep jobs, based on the strength of the overall Alberta economy. Your decision doesn't just affect oil companies. [Information Removed] |
| RRE5424 |
I am requesting that Premier Stelmach accept the full package that was presented in the Royalty Review. The evidence is undeniable that Albertans have been shortchanged in the past. Stelmach would have a incredible legacy if he could fix the broken royalty system in this province to benefit the people and not just the corporations that live here. |
| RRE5425 |
its time they pay there fair share,they should have been paying long ago. |
| RRE5426 |
I feel strongly that the government need adopt the recommendations of the report. You know darn well that the oil companies will do okay. |
| RRE5427 |
Last year's new trust rules from the federal government, high operating costs, smaller reservers of natural gas in the Alberta basin have brought the Junior Natural Gas industries to a dangerous state. If this government acts to increase royalites on natural gas production it will make an already bad situation worse. An article in today's Herald [Information Removed]provides a very succinet review. We are not exploring for huge reserves in conventional natural gas or oil in the Alberta basin (unlike other parts of the world), costs here are high relative to the size of reserves left. This concept seems to have escaped much of the this whole discussion. Capital will flow where the best economics for return (royalities, size of reserves and operating cost) are availabe. Major companies will simply slow operations in Alberta. Junior Canadian companies will go under. Several decades ago we had the NEP, Alberta-Ottawa Energy agreement and low commodity prices which combined to stagnate this industry and burn a memory in a generation of Albertans. Hope we are not on that path again. From Wednesday, October 03 Herald. Hope you read it. Energy sector willing to change [Information Removed] In today’s media-saturated world, perception is reality. This mindset has recently transcended the realm of the Alberta’s energy sector. There is a perception that the big, bad oil companies are getting away with too much; that they are raking in billions of dollars and the average Albertan is losing as a result. “We’re not getting our fair share of the resource we own,” comes the cry from the rural folk, who have been enjoying a higher standard of living thanks to the robust activity in the energy sector in the last seven years. Yet it transpires, if one reads the auditor general’s report carefully, that it’s not about Big Oil — it’s about the lack of leadership in the halls of government. And Premier Ed Stelmach, the unelected leader of this province and the third choice of his party, was at that very cabinet table when the suggestions to examine the royalty structure were being made as far back as 2000. Now there is a report on the table suggesting sweeping changes that could ultimately compromise Alberta’s economic future. Big Oil is starting to take a stand but the cynics are quick to point out that it’s in their best interests to get the best deal possible. But once again, this is about perception versus reality. Many perceive that the sector wants things to stay the way they are. Not true. The reality is it is cognizant that changes should be made, but that they be done in a responsible, sustainable manner. Industry representatives made convincing presentations to the panel, even referencing a 1997 study by Dr. Pedro Van Meurs, who acted as a consultant, which stated then the producers were paying too much to government coffers. Never mind that Van Meurs has since changed his tune and believes the opposite of what he wrote in 1997, there is a misguided perception that not much will change in Alberta’s oilpatch because there are precious few places in the free world boasting a resource base the size of the oilsands. Moreeover, no one believes that the energy companies will suffer as a result of the changes, especially the big ones, because ‘they make so much money.’ But the reality is likely to be much, much different. Let’s start with the junior players, whose assets are primarily natural gas. This segment of the sector has been hammered since last October. It started when federal Finance Minister Jim Flaherty closed off the exit strategy many had been using — selling to income trusts. Then, natural gas prices softened and they have pretty much stayed there. On top of this, costs have gone up exponentially and companies have slashed capital expenditures. This means reserves are not replaced, production forecasts are tough to meet, cash flow drops and the banks come knocking. But the proposed royalty changes add another risk factor. They will effectively make the reserves that sit in the ground uneconomic to produce in the current pricing and cost environment. Keep in mind that newer, deeper wells generally flow at higher rates than older ones, and these will be subject to higher royalties. As Tristone’s George Gosbee notes, more than 40 per cent of oilfield services drilling is at the deeper targets. That, too, is reality. Aresearch note published Tuesday by FirstEnergy Capital Corp. suggests the impact will be even more punitive for conventional oil production. Pull all these pieces together and it suggests that there will be companies in the junior end of the market having to write down the value of the reserves they have in the ground because the numbers don’t add up. Even if they want to keep drilling, the only way to find the cash is to tap the equity markets, and that door has been firmly shut for a number of months. As Tristone’s Chris Theal crisply pointed out last Monday, “a crisis is looming for the junior oil and gas companies in Alberta.” His firm’s analysis shows that cash flows for the mid-cap and small companies will decrease by 11 per cent under the proposed changes. Many of these small companies — drillers included — have operations scattered throughout the province. They are the reason the standard of living has gone up, the shopping is better and there are new restaurants popping up. That’s reality. If activity falls, Mas it will, Premier Stelmach’s voting base won’t be so happy. Don’t believe it? More than 40 per cent of drilling rigs are idle — many are heading south of the border where activity is robust, even as natural gas prices are soft. EnCana has said it is going to pull $1 billion out of the province but is worried that the 30,000 jobs directly or indirectly tied to its operations will be affected. Many of those jobs are in rural Alberta. And other companies are sure to follow suit. Of course, if a chief executive officer of a big energy company was truly Machiavellian, he could sit back, say nothing and wait for all the ‘For Sale’ signs to be hung out by the juniors. There will undoubtedly be some excellent bargains to be had. But people such as EnCana CEO Randy Eresman, Canadian Natural Resources vice-chairman Murray Edwards and others in that same peer group of companies recognize this scenario is bad for the overall economic health of Alberta. They’re not fear-mongering; that’s how the markets work because capital is mobile. That’s why they have taken the stand that they have. It’s not that royalties can’t change, it’s that whatever changes made must be sustainable and beneficial for the long term. Otherwise, we can kiss prosperity goodbye in this province, even with oil trading at $80 US per barrel. |
| RRE5428 |
I support the Alberta Royalty Review Conclusions. |
| RRE5429 |
I believe that it was necessary to do a Royalty Review at this time and the results of that review show that it is time for some significant changes to the current royalties. I think the Premier is taking the right route by giving everyone an opportunity to state their case for change or not for change. I think that the report given by [Information Removed] was imminently fair and open and that I agree with the recommendations in the report. I hope that at the end of the day, the Premier and his caucus act on those recommendations. I do understand that there will likely need to be some tweaking to some of the recommendations, but I would hope that the Premier and his cabinet and caucus will enact many of the recommendations. |
| RRE5430 |
Please add me to your list of Albertans who is unhappy with the royalty report and is asking government to please stand up against the recommendations in this report in the name of the Alberta economy. The consequences if this report were to be enacted in full would be far-reaching across all corners of the province and country. A balanced, well-thought approach to this issue is needed - - and that can only be achieved with government and industry cooperation and collaboration. Let's start with getting the facts straight and then let's work towards an appropriate solution. Ramming a new royalty regime based on inaccurate data down the throats of Albertans will do nothing but put an end to the 'Alberta advantage'. We've marketed this province to the rest of the world as a safe and friendly place to live and invest - - implementing such a drastic and economically damaging royalty regime as the report suggests would make us all guilty of false advertising. Please, get this right. |
| RRE5431 |
Dear Premier, I would like to see you stand firm against those who want you to keep the status quo. I don't think a slowdown of this economy would be anything but positive! Please adopt the recommendations of the panel wholesale. Yours sincerely [Information Removed] |
| RRE5432 |
The report should be accepted as written. The authorship panel was, from my seat, already tilted to industry and it was both surprising and pleasing to see that they could come to the conclusion they did. The oil is not going to disappear; the world's alternatives for energy are speculative at best and any downturn in the oil industry will be temporary and negligible as a result. There may even be a silver lining in a slight slow down - a return to a bit of sanity for AB development; a chance to address some of the infrastructure problems and etc. The huge profits and massive salaries and bonuses oil executives have been taking are evidence of an industry with too much money. Time to fix this and rebalance the equation in favour of the owners of this resource. |
| RRE5433 |
Please do not implement the royalty review panel's recommendations as they are. The numbers that they used are not showing the whole picture, and really will be increasing royalties to 50% and not the 20% that they have led the public to believe. I understand that as a province we need more money to build the projects (infrastructure, hospitals, schools) but if we kill off the industry, then there is not going to be revenue coming into the goverment at all. There have been several independant outfits that have produced their own reports following the royalty review panels report that refute what the panel found. Please look at more information before implementing something that will have such a negative impact. Also realize that the ones that are really going to suffer are the people in the field, and those that are indirectly involved (hotels, restaurants, stores). The last thing that we want is to create another NEP - except that this one we won't be able to blame on the federal goverment, we will only be able to blame the Alberta govement. |
| RRE5434 |
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 or any other royalty in an adverse manner, any company involved in a particular play will act accordingly so that the shareholders' returns are affected as little as possible. Perhaps the existing projects can be grandfathered so that any significant changes are applied to new future projects. 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] |
| RRE5435 |
I believe that any new drilling should be set with the proposed royalty recommendations. Any older, lower volume production wells should be left alone. Tar sands should be increased possibly 2% yearly for the next 15 years; and then only if the conditions exist to further increase it. I truly believe that this belongs to the people of the Province and it should be paid for. After looking at oil company P&L Statements on line, their is no reason in the world to partake in that gross profiteering. And we haven't yet considered the overpaid Co. Executive salaries........the responsibility they have is not commenserative with their pay cheques! |
| RRE5436 |
I believe that there are two sides to each story, and that additional work needs to be done to bring together industry & government to find solutions that work for both. Industry has invested millions of dollars under an agreed to set of royalties, and to have these changed without consultantion could affect many jobs and livelihoods in the province. I understand that the oil companies have indicated a willingness to increase royalities, just not at the rate the report indicated. I believe we should not make a quick decision that could harm our economy. |
| RRE5437 |
If we are going to get additional royalties for our resources, then we need to ensure that it goes to all the people of Alberta in the form of a program constructed in a similar way as the Alaska Permanent Fund Dividend. |
| RRE5438 |
Dear sir or Madam, Please re - consider the increases in royalties. Oil and gas pools are getting smaller and smaller and harder to find. We are having to shoot more and more expensive seismic to find these pools so the finding costs are going up. Add in the huge increase in royalties and suddenly it is no longer economic to explore for oil and gas in this province. i am very concerned that the result of the large royalty increase will be a huge recession. Drilling will slow down considerably (it already has slowed down a lot this year due to the lower gas prices and other factors) and many of us will lose our jobs. i don't think the panel has fully evaluated the impact of the Royalty review. The province will ultimately lose money and will be having to spend more money because those of us working in the oil industry will be on unemployment insurance. thanks for your time, A concerned Albertan - born and raised here, [Information Removed] |
| RRE5439 |
Perhaps Albertans in favor of the recommendations of teh Royalty Review should recognize that personally we are the lowest taxed province in the country. We enjoy a GDP per capita that is 60% higher than the rest of Canada largely due to spending and revenues of companies in the oil and gas sector. Perhaps in addition to accepting the recommendations of the Royalty Review to bring our royaties in lin with the rest of Canada we should also bring out personal, sales and property taxes in line with the rest of Canada, perhaps Albertans might take a second look at whether we should adopt the recommendations. |
| RRE5440 |
Dear Premier Stelmack: I encourage you to go beyond the recommendations received by adopting rates at least equal to those in Norway. Let the O&G exec's whine all the way to the bank as they're doing in Norway, Venezuela, Wyoming, Alaska, and Texas. Let them exhibit their displeasure by abruptly suspending work in Alberta as they did when the NEB brought in their program a few years ago plus the embargo they placed on work in Newfoundland to try to dictate their wishes on premier Williams. Alberta can stand to see a slow down in its currently overheated economy. The oil sands offer a long term potential, let's not try to satisfy the greedy investors seeking quick returns. Will be watching the performance of your duty and obligation to Albertans and trust that you will act on our behalf. Sincerely, [Information Removed] Leduc, AB |
| RRE5441 |
I am very concerned that the government may make a decision to increase royalties based on incomplete and or incorrect information. No one in Alberta will benefit from increased royalties on decreased production. Surely there must be a middle ground that is fair and equitable to all. It only makes business sense to me that the oil companies are in business to make a profit. A profit that we as Albertans share in. Would it not make more sense to structure the royalty payments on the price of oil and gas? If the prices are high, then the profit and the royalties will be high. I also do not think it is fair to make changes affecting prior plans and investments. Please consider this issue from all sides, no one wants to see the Alberta economy come crashing down. Thank you, [Information Removed] |
| RRE5442 |
In 1996, then Prem. Klein reduced royalties to 1% for a ten year period. At the same time the Chretian Fed's took away any taxes on construction (again for 10 years). Well my elected freinds, ten years has passed and look at irrepairable dameg done by the Oil Sands players. The Athabsca River and Lake Athabsca are dead pools, the underwater aquifers are dry, the muskeg which took 1000's of years to be what it was will never be the same, the air quality is the worst in the continent (Cancer and Asthma are the highest in the nation as well as new-born children born with respritory problems). I suggest this, enact the 20% increase and put a moretorium on all further oil and gas exploration, development or exploitation. We have enough going on currently to satisfy every Albertan - why are we listening to foreign interests in this matter anyway. Infrastructer crumbles under the wieght of greedy oil executives who turn ablind eye to any provincial cods of conduct, eg. hours of work, overtime, WCB, insurance. I want this provinc to be as beautiful for my grand children as it was for me. |
| RRE5443 |
Be careful not to kill the goose that has been providing all those golden eggs! High levels of cost inflation mean that these oil companies probably are not as profitable as many believe. Alberta is a high cost producer relative to many other countries that have raised their royalty rates--this means that Alberta may have to settle for less. Natural gas production is at especially high risk because of high costs and declining output per well. Lots of rigs are idle now because drilling has become unprofitable due to lower prices for gas and higher costs. |
| RRE5444 |
Completely support increasing royalty rates. With so many tens of billions of dollars being spent in the oilsands and record profits, they can afford if for all their whining. So what if in the worst case some of the projects are cancelled or delayed, the expansion up there needs to be slowed down anyway. The projects will still get built, but later, and maybe by someone else. I believe a full transparent review of royalty rates should be established every 3-5 years. |
| RRE5445 |
IF THE GOVENMENT DECIDES TO FOLLOW THROUGH W/ THESE RECOMENDATIONS, THEY WILL NO DOUBT SLOW DOWN + KILL THE OIL PATCH IN ALBERTA. THEY WILL TURN ALBERTA INTO SASKATCHEWAN, CAUSEING THE OIL COMPANIES TO DO LESS DRILLING/ PRODUCEING OIL/GAS. IF THE COMPANIES DO LESS, THE COMPANIES PROFIT LESS, THE WORK FORCE MAKES LESS + THEN THE ALL MIGHTY GOVENMENT THAT HAS REPORTED ALL THESE HUGE SURPLUSESS OVER THE YEARS WILL HAVE TO FIND ANOTHER INDUSTRY TO PAY FOR EVERYTHING! WHY WOULD THE GOVENMENT WANT TO PUT SO MANY OF THERE PEOPLE OUT OF WORK? THE OIL PATCH IS THE MAIN SOURCE OF THE GOVT.'S INCOME. WHY GET GREEDY? THESE RECOMENDATIONS ARE GOING TO HUGELY EFFECT THE LITTLE PEOPLE, MORE THAN ANYONE WHO BY THE WAY ARE DISGUSTINGLY OVER TAXED, IF WE WORK LESS THEN WE MAKE LESS + IF WE MAKE LESS THEN I GUESS WE PAY LESS TAXES. ALL THE GOVT. HAS TO DO IS TAKE A LOOK @ SASKATCHEWAN. THE LAST TIME I CHECKED THERES NO TOO MUCH PRODUCTION COMEING OUT OF THAT PROVINCE AND IT'S NOT CAUSE THERES A LACK OF OIL/GAS RESERVOIRS. SASK. IS JUST AS RICH IN TERMS OF OIL/GAS RESERVOIRS, BUT NO ONE WANTS TO PAY THERE ROYALTY'S. I'VE WORKED IN THE OIL/GAS INDUSTRY FOR OVER 12-YRS + THIS IS THE 2ND SLOWEST YEAR I'VE EVER SEEN. IT'S ALREADY HARD TO KEEP HANDS + IF IT SLOWS DOWN ANY MORE, WHAT THEN? DO WE ALL GO ON UNEMPLOYMENT? THANKS FOR TAKEING THE TIME TO READ OVER MY RANT. |
| RRE5446 |
I am very concerned whether the comparisons used in the Royalty Report are valid. There is so much more than straight royalties and income taxes affecting returns for the resource industry in Alberta. First, it specifically ignores the revised Well Equipment tax because that supposedly relates to services. I know for a fact, that many counties no longer use it in that manner - they charge road damages on top of those fees, and some ask for up front bonds before you can get permits. So that 40% increase in the base rate and the 300% increase on the meterage rates are just a cash cow. These charges can not be so cavalierly dismissed by the province. Second, the study overlooks that industry pays for the EUB by levies. Other jurisdictions have these costs covered by the state through the royalties or general revenues. I do not see where this item, funded by Industry, has been taken into account. Third, many foreign operations bid on a production sharing arrangement. After that they are not assessed other costs except those concerning direct operations - specifically property taxes, which cost our local producers an enormous amount of cash - over 10% of the value of production. Social programs and municipal costs are funded out of the production sharing and there are no further taxes, income or otherwise. Similarly, there is no land acquisition cost - that's built into the production sharing agreement. Fourth - I am highly disappointed in the panel's attitude toward our freehold lands. For Crown lands - new low productivity incentives are recommended. For Freehold lands - REMOVAL of current low productivity which matches the crown is recommended. This is definitely not equitable. Freehold deserves parity of treatment with crown lands. Otherwise, we are just thieves. Fifth - The true basis for capital evaluation is a risk and time adjusted return on capital - in other words, a net present value. The NPV is affected by the volumes and quality of product. The greater the volume produced per capital input and the higher the quality, the higher the NPV. Texas output may not be of greater volume, but it tends to be sweet, light crude that doesn't require extra treating. They can charge a higher royalty because they have a better quality base product. Other foreign countries win on volumetrics - our margins suffer in comparison, even with the lower political risk. Sixth - the overall climate for business must be positive. Between greenhouse gas programs that are implemented while only half designed, Federal governments cancelling two tax programs, and provincial governments changing royalty regimes mid-step - well folks, this is a house of cards. How do you make sound investment decisions in a climate like this? Which ever way you try to slice it, a dollar can only be split so many ways. And the more you take in one place, less is available for spending in others. Since companies have set desired rates of return on capital, if they can not make those returns here, they will look at other alternatives. Alberta does not have a monopoly on these resources and money does have legs. Industry will pay a premium through risk adjustment to operate in our politically stable climate, but they won't be held hostage to unreasonable demands. Do not forget as well, that even with record prices for oil internationally, the Canadian receipts are down due to the rise of our dollar against the US. Today, the industry is making the same gross revenues as when oil was at $71. Margins have not increased at all in the last year and in fact, margins are steadily declining. That's why drilling is down. And finally, not all costs can be controlled. There are elastic and inelastic goods and inputs. If those that are inelastic are inflationary, the rate of return is diminished and that result is beyond the control of resource company management. And since resource companies are "price takers" (ie, not in control of the price their product sells at), ignoring this reality can put our economy at great risk. I have lived in Alberta for nearly 30 years. In that time I have been through two booms, two recessions, and one total bust. When I look at the insensitivity of reports like the royalty review I shudder. To implement those recommendations without modification reads as a recipe for disaster. Tweak the royalties - maybe. Put these draconian changes into place - well, it'll be a crap shoot unless we see major cost declines (unlikely) or monumental price increases (possible). I'd rather not roll the dice. May sensible heads rule. [Information Removed] |
| RRE5447 |
Manipulation at it's finest. Short the whole area grab a few bucks...go through the motions...announce something like "oh never mind, upon further revie, bla,bla,bla we have decided against this...now the MMs have of course bought in and will cash out just after the rebuttal announcement. "It's a strange, strange World we live in Master Jack" now where were we oh yeh..a buck for you a buck for me, a buck for...., A buck for... Get the idea!!! |
| RRE5448 |
People need to have a small understanding of what's at stake here, most people like me just hear that we need to increase the royalties on the resources with really knowing nothing, is there any info. that the everyday working joe can read and draw their own conclussion? |
| RRE5449 |
Please strike a balance, don't go overboard in raising the royalty amounts. |
| RRE5450 |
I oppose increasing the royality tax by 50-100%. How absolutely assine. Come on and get real. |
| RRE5451 |
Please proceed carefully, while an increase in "royalities" would be an immediate asset, please do not kill the goose that laid the golden egg. An increase is warranted but we must be reasonalble and phase in the increase over a period of time. That increase should be specfic and made known to the investors so that fear of investing in our future will be eliminated. [Information Removed] |
| RRE5452 |
Sirs, While understanding the perception that the oil and gas industry is enjoying a "windfall" at the expense of increased infrastructure costs for the Alberta Government, I believe the Royalty Review Report proposals are flawed in their approach to redress the balance. My main concerns for the Province are: 1. Junior oil and gas companies, most of whom are borderline profitable (if at all), require external investment to flourish. This is already on hold due to low gas prices and will disappear if the proposals are implemented, as drilling impactful wells will become uneconomic for the majority of juniors in the current price and labour cost environment. Activity and employment levels will suffer. 2. Drilling and service companies will suffer further. They are already down over 20% on expected utilization from last years levels. 3. The perceived "excessive' profits of the larger oil and gas companies arise out of $80 oil, not because of a favourable royalty structure. At $40 oil no-one was complaining about the royalty structure being too soft on oil and gas companies. 4. Investment providers into the Energy industry look globally in making their decisions. As noted by [Information Removed]this week, the proposals would greatly impede Alberta companies in their quest for equity, as Alberta would become one fo the least favourable tax regimes in the world. A suggestion is that instead of these proposals that a 'windfall' rate is implemented, either at the royalty per well level or at the corporate level. This would ensure that the government and province share in the good fortune during the high times, without jeopardizing ongoing operations or hastening a downturn during the low price periods (as currently for gas). It would also appease the public outcry over the "billions of profits" being made - which are only in fact by the larger oilsands and integrated companies. In summary, the proposals as presented will unfairly penalize and jeopardize junior oil and gas companies in Alberta and lead to a drastic reduction in activity that will ultimately lead to a reduction in the economy, growth and tax revenues. The larger oilsands and the integrated energy companies will be able to survive the changes due to their mass and availability of internally generated capital funds. Rather than killing the "golden goose", these proposals will actually kill "the goslings" instead. Regards, [Information Removed] |
| RRE5453 |
No - Royalties should not go up. We do not need another NEP! |
| RRE5454 |
I am strongly in favour of increasing O&G royalties. This is a public resource that belongs to this and future generation of Albertans. It is absurd that the government is foregoing billions of dollars in revenune while oil companies enjoy record profits. Based on near $100/barrel oil, I do not believe that increasing royalities will have a significant adverse impact on investment in the province; the oil companies will still make a killing. My advice is the government should not let itself get bullied by the Oil companies and should raise royalties. |
| RRE5455 |
A government running huge surpluses does not need to increase it's revenue at the expense of the economy. I'm all in for an extra $2 billion a year for Alberta if it had no affect on us. However the reports as it stands will have too great of an impact on the economy due to slowed investment. You vote in a PC government for low taxation, small government and strong economy. Why at time when an industry is in distress (look at drilling rig utilization levels for 2007 and service companies releasing workers) yet the government is awash in excess cash flow would a PC government increase taxation, increase government and hurt the industry that drives it's economy. The time for this review was in the high escalation of cost in the oil patch in 2005 and 2006. Now at current cost levels there is no room for extra taxation without hurting the conventional gas industry (which is still the majority of royalty revenues). The only room to move is on the oilsand side where at $80 oil there is more economic rent to take a greater efficiencies for the industry to put in place. More processes need to be found where you're not burning natural gas to produce horrible quality oil. Tightening the economics of the oilsands will do that. Please be careful on the implementation of the report. While it enjoys public support now when people actually discover how much it will affect them it will be a different story. Please balance keeping Alberta a great place to invest and returning resource funds to Albertans or everyone will lose. [Information Removed] |
| RRE5456 |
I am NOT IN FAVOUR of any kind of change to Alberta oil & gas revenues. Alberta is already debt free and has a large budget surplus... so why would we risk shutting down the oil & gas industry? A smaller % of any size pie is better than a larger % of no pie. |
| RRE5457 |
Hello, I do not agree with the gas royalties being raised especially when gas prices are so low. Plus, what would the government do with that money anyway? Give us tax breaks? If that is so, it won't do much good because there will be people without jobs and people with lower salaries because the industry does not have the funds it would have normally had. It would be best for the money to be kept in the oil industry that way it can be spent on new capital and/or to pay salaries of citizens of Alberta. Those citizens in turn buy from other sectors which keeps other Albertans employed. This issue needs to be reveiwed and I hope the right decision is made. [Information Removed] |
| RRE5458 |
The Royalty review by our Provincial Government is reminicent of the National Energy Program. It is a real concern for me, as my livelihood is based soley on the Oil and Gas industry. I have taken to calling our Premier Eddy Chavez, as I think, if implemented, it will drastically reduce capital investment in the province. With Ralph, our Province was doing fantastic. Rather than kill the golden goose, why not look at setting a minimum tax for people working in Alberta and paying tax in other Provinces. They are using our infrastructure, and should pay at least some minimum tax, which would boost our Provincial coffers, if the current surpluses are not enough. From a capital prespective, this would also act as an increased form of tax on projects, as they would bare the brunt of the cost. I would also rather see our flat Provincial income tax raise 1% rather than kill the incentive for capital investment in our province. Some slight adjustment in the Royalty Regime might be acceptable, however going to full recommendations of the review would be Draconian and cost our Province dearly. I am afraid also that implementing this royalty review will drive Conservative voters away from the PC Party and to another option, which would in the long run destroy the Alberta Advantage. |
| RRE5459 |
I do not believe the report findings should be implemented. Regardless of the arguments for and against, the reality is that I have met with many producers in my job oil and gas service industry and all are planning to shut in production and abandon new well drilling and major projects. This means jobs will be lost. My job and many other tax payers’ jobs! I trust the government understands that Alberta oil and gas cost much more to produce and much does not receive the WTI price. This and many other facts must be considered. I urge the government to reject the findings and take a much less aggressive and a Conservative approach to royalty adjustments. Thank you for the opportunity to voice my opinion. [Information Removed] |
| RRE5460 |
I strongly support the Panel's recommendations. I am disturbed that critics of it do not address the disparity between Alberta's low royalty rates and the higher rates in most other jurisdictions. I also am irritated that oil company spokespeople fortell of doom while their company share prices indicate their prospects have never been brighter. Please implement the Panel's recommendations! |
| RRE5461 |
Dear Sirs, While not opposed to future-orientated changes in Alberta's Oil & Gas Royalty, I am strongly opposed to making changes to existing contracts. The Alberta Government has a responsibility to act in a way that maintains our hard-won reputations, as a Province and as individuals, to behave in a trust-worthy business-like fashion. Without this fundamental trust we, as citizens, are undermined by our own government. I strongly support "grand-fathering" any future changes in the Royalty structure. I would also encourage Alberta to seize this opportunity to foster a wider debate on the future of the Province. It is far from clear to me what will happen to any incremental royalty revenues. Will this revenue truly stay in Alberta, or will it be transferred, directly or indirectly to Ottawa? My fear is that these funds be squandered on government sponsored projects - either at the Federal or Provincial level – resulting in futher wage escalation and little real progress. I personally support returning incremental funds directly back to the resource owners - Alberta residents - either as a cash dividend (aka Ralph bucks), or as reduced taxes. However, I respect that others have differing opinions and would encourage public debate in this matter. Respectfully submitted [Information Removed]Alberta Resident |
| RRE5462 |
I urge you to look at the royalty numbers, in regards to natural gas, very carefully. Currently, gas prices do not justify a royalty increase in Alberta. However, the heavy oil royalty increase seems to be fair. Thank you. |
| RRE5463 |
The royalty review report is a one sided document that does not appear to look at the impact that changes to the royalty review will have. It does not deal with the fact that energy comapnies do not have to invest in Canada, there are many other countries that offer a better return on investment if the royalties in Canada are changed. Canada's big advantage is that it suppiles a stable environement politically, economically and envirronmentally compated to other countries. If you change the structure without providing "grandfather" exceptions to large scale projects like the oil sands, then you eliminate one of the biggest reason why companies invest in Canada and you create concern about future changes that would make for a less inviting climate for investment. Wy should oil and Gas companies invest in Canada if the stability they came to expect will be threatened by a royalty change and without any promise that it could not change again in 5 years? Everyone wants a bigger share of the pie, but no one wants to take any of the risk involved. This is a naive approach to creating an econimic environment that benefits both Albertans, Canadians and the companies who invest in the Canadian oil and gas industry. The money that has been collected so far has removed the alberta deficit, made it the envy of the Canadian provinces and will continue to provide money to support all kinds of benefits to the province of Alberta for decades. The Stelmach government is at a cross roads and it appears to be taking the same road that Pierre Elliott Trudeau took with the National Energy Program. The NEP destroyed investment in the oil and gas industry for years. Surely the Stelmach government is not so foolish as to make the same mistake. Sincerely [Information Removed] |
| RRE5464 |
I wanted voice my opinion on the findings of the royalty review panel,I own a small oilfield transport company,over the last year we have seen a dramatic downturn in activity.When we watch the news all we here about is the huge boom happening in alberta.Anyone who has anything to do with the oilfield industry knows the boom has been over for a year!Why do people think housing is dropping,people call it a correction,we are on our way to what will be known as some kind of correction if this royalty increase goes thru.I know people who have not worked since last winter,is there going to be some kind of subsity available to help us get thru like there is in farming....no we will be left with no work and a government making the money the people use to make AND SPEND IN ALBERTA!what is it the people think they will get from this increase,what have we got from the 12 billion the govt already gets....THE ALBERTA ADVANTAGE...we get nothing now but jobs and now the government figures they should take those too,along with a few more billion they can squander.People that live in the city and only watch the news think the increase will be great,They may not think it was so great when they have a $600 000 mortgage and a $200 000 house,and will be wondering when this correction we are having will end.There is only one group that will benefit from this,and it sure won't be anyone living here.Someone has to seriously think this over,this could absolutely be the worst thing to ever happen to this province and alot of people are unaware of the facts.The sad thing is I don't believe there is alot of hope the govt will do the right thing,if they wanted to do the right thing they would have left it alone in the first place. |
| RRE5465 |
I dont think the royalty on oil gas is the best way it will put alot of people on u i c or welfare which will hurt the economy |
| RRE5466 |
I would like to see the Royally review recommendations fully implemented!! Thanks. [Information Removed] |
| RRE5467 |
I am a small business owner in the oil and gas sector. If the royalties go through as the government want it will ruin me and all my staff. If the royalties go the way the government propose the Alberta oilfield will come to a stand still. thousand of people will become unempolyeed over night! Will the government fork over the money to compensate for what we will loose???? |
| RRE5468 |
I would suggest the government ease into any royalty increases over a reasonable period of time allowing oil and gas companies time to prepare for increases. I believe the economic benefits of a healthy oil patch clearly out weigh the benefits of collecting 2 billion more in royalty revenues(which likely will not directly benefit in any way the average Albertan ). Furthermore if implemented hastily or incorrectly the realization of the extra 2 billion dollars will never be realized anyways as reduced activity may result in lower royalty revenue. |
| RRE5469 |
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] |
| RRE5470 |
In an industry still reeling from the October 31 changes to the royalty trusts as evidenced by the downturn in the industry's ability to raise investment capital, an increase in the royalty rates could be the last straw in removing whatever optimism remains with regard to issuing equity for exploration dollars. The Alberta economy has been thriving as a result of a healthy oil industry. The revenue coming into the provincial government from the current royalty structure, land sale bonuses and tax on the industry is staggering. In a mature geologic basin such as the Western Canadian Sedimentary Basin where significant reserve additions are becoming more difficult and costly to find, increasing the royalty rates will serve only to make the currently marginal prospects uneconomic and further stifle the availability of risk capital for future exploration. Industry finding and development cost are at an all time high, while conventional oil and gas reserve replacement is not being met. The current royalty structure is complex and already provides for increasing rates as as commodity price increases. In my opinion, changes to the current structure would be penny wise and pound foolish. Companies build their long term business plans based on a stable business environment. Changing that environment, as evidenced by the royalty trust changes has an immediate and significant impact on both industry and investor confidence. The reaction by our industry to even the mention of altering the royalty structure should be warning enough to a government even half paying attention that this is a poor idea. The negative economic repercussions to our industry will outstrip any perceived benefit from increased royalty revenue. I sincerely hope the current government realizes that conventional reserves are becoming more and more difficult to find and costly to develop and that our non- conventional reserves are the future of oil replacement for North America and require immense capital resources to exploit. Any government initiated change to the oil industry which has a negative impact on the industry will have a ripple effect and ultimately have negative impact on all Albertans. The entire country benefits from a strong Alberta economy, lets not do anything that could alter that. |
| RRE5471 |
I would hope that the Alberta government will not throw out a royalty system that has been designed cooperatively, with history and logic to it, based on the history of the industry, the difficult geology of conventional western Canada and the cost structure in this high-cost mature basin (as compared to other basins around the world) -- the cost structure here is one of the reasons why drilling here is down by over 40% in Canada, whereas in the US it has stayed the same in the past year.. These proposed royalty changes have significant and far reaching affects for the conventional oil and gas sector - it kills any incentive for exploration. I am also concerned that this government is doing the wrong thing -- such as cancelling the valid leases (which has NEVER been done in Alberta's history) of Oil Sands Undergrond Mining Corp at Marie Lake. Stelmach, you will be a less than one term Premier if you keep with this type of unilateral process that ignores due process.. Do the right thing and leave the royalty system untouched by major changes and give [Information Removed]their lease back! [Information Removed]Calgary |
| RRE5472 |
I think this would not be of any benefit to the province as it would have a big impact on the business which is fueling the province and its economy |
| RRE5473 |
I am but 1 small voice against the royalty review as this could result to a negative impact in all areas of the society not only in the province but the whole country as well. Instead of going forward this could ruin the economy and people lives. |
| RRE5474 |
Please implement the royalty recommendation immediately. Not everyone is a part of the oil boom, but all of us are caught in its wake as housing prices skyrocket, my rent increased and generally prices are inflation, meanwhile our cities can't keep up with the growth. Of course the oil companies, who are benefiting from Alberta's infrastructure, educated citizens and *our* collective resource ought to pay their fair share of royalties so we can invest in the province, in mitigating the damage that oil extraction is causing and most importantly invest in long-term renewable energy systems to replace the oil once it is gone. |
| RRE5475 |
Use your head, Ed! Don't knock the feet out from under our main industry. We need jobs. |
| RRE5476 |
Please forward this to the premier's office: Dear Premier Stelmach, Please do the right thing and IMMEDIATELY implement ALL the recommendations of the royalty rate review panel. No phasing in is necessary. I am convinced that the panel did a reponsible, first-class job and made its recommendations with the greatest of care. I have also carefully read about and listened to the concerns of the oil industry and frankly I am not convinced by them that jobs will be lost and the Alberta economy will be decimated because of the review panel recommendations. I am SEEING RIGHT THROUGH these dire warnings. If there is a downturn in the oilpatch it will be because of market forces beyond the boundaries of our province and not because of the implementation of panel's recommendations. And like many other 'severely normal' Albertans who every day must cope with the stresses of the oil boom in many, many ways, I'd actually be relieved if there was a dampening of resource investment in this province for awhile - at present we cannot cope with any more big projects sucking the workforce dry and destroying our environment. Premier Ed, please do the right thing and implement ALL of the panel's recommendations RIGHT AWAY. I will support you and I will know you did it not to get re-elected but because you listened to us and stood up for us. But as an added bonus, I will tell you that if you do this, I will even vote Tory in the next election and I never have voted for your party before. |
| RRE5477 |
I own a business that works directly with Oil and Gas majors in Alberta. It does not matter what the report says. Opening up this flood gate will create some obvious discontent. You will then see the true leverage Oil and Gas Corporations have in this province. Why do people always have to step in and interfere with these cash grabs. Everyone is doing pretty good in this province! We will all pay the price economically if the goverment asks for more money...mark my words. |
| RRE5478 |
Please be very careful with your royalty review and do not press forward as the producers do take risks and it is only the successes you see after large costs incurred.There are failures that you do not gauge and the western basin wells deplete quickly along with economics. Currently energy producers do put back to the economy by spin offs and employment providing the government with more tax revenues. More stimulation economically than any government could produce. |
| RRE5479 |
I'd like to see in the final report the current amount that the Alberta Government currently receives in royalties. I'm sure most people would be shocked at the total amount. Please also factor-in other Alberta Government regulations that impose burdens. Such as the Greenhouse Gas Technology fund that commenced July 1, 2007 (eg. one Gas Plant that I am familiar with will incur a penalty of ~$1,000,000 per year). I do like the idea of lowering royalty rates on low producing wells as it enhances the economics to drill, encourages more CBM wells, and also prolongs the economic life of older wells. Best Regards |
| RRE5480 |
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] |
| RRE5481 |
Premier Stelmack, Please take a moment to read my thoughts on the royalty review report....(Remember Peter Lougheed)? I have been a supporter of the PC party Provincialy and federaly since 1970. I am tired of the energy giants destroying our roads, farms, energy pricing etc. I could go on, but. The Oil Companies are wastefull, inconsiderate, arogant organizations that are given far to much freedom and respect by our government. Just look at our roads. Polution, unseen each day, by tankers dropping waste loads on country roads. Wasteful needless spending, (I think most employees of Suncor and Syncrude have a full set of Snap-On Tools at home. Nobody checks... The things I have seen are beyond belief. Nobody is held accountable. I am not looking for a witchhunt, just fairness and just accounability by our government and not a sellout to big business. I recognize that we need them but truly believe that they will not run away at a few more dollars a month. Thank You so much for this opportunity to voice my concerns. It means a lot to me to have this access. Respectfully, [Information Removed] |
| RRE5482 |
2007-10-11 To: Select Members of the Legislative Assembly of Alberta Honorable Persons: Regarding Current Oil Sands Royalty Review. I am writing in hopes of contributing to resolution of the present public debate regarding petroleum royalties, especially oil sands royalties. If you desire, I would be happy to dedicate time to assist the Government to devise a new royalty structure that best serves the interests of Albertans. I have reviewed some of the analyses and commentary being presented to the Government by developers and financial institutions and I believe that much of what is being presented is accurate. Certainly the recommendations by the Government’s Task Force are off the mark and based on an understanding of the industry much different from mine. At least as to its effect on the oil sands industry the proposed changes are devastating and likely to stifle development of technology and entrepreneurial investment and deflect ownership of Alberta’s resources to large international oil companies that can afford to hold the long term leases until governments of the future wish to promote development. Permit me first to briefly introduce myself. I am an Alberta born, Alberta educated Professional Engineer who has built his 32 year career in the Canadian energy industry. I have worked for large, international companies, lobbied the government on their behalf ([Information Removed]. I am keenly interested in environmentally and socially responsible development. I have established a reputation for socially and environmentally responsible development practices. I will focus my comments primarily on oil sands royalties. I no longer have any direct financial interest in oil sands developments. If I have any ownership at all it will be through arms length investments, such as mutual funds, managed by others. [Information Removed] I thought, given my experience, knowledge and absence of financial interest, that I might be able to provide some valuable and credible input into the present public debate on royalties. First of all, the Government is to be congratulated on the initiative. Review of the royalty structure is timely and appropriate. A number of recent developments challenge the appropriateness of the existing royalty structure: o Many experts believe that the world’s capacity to supply global liquid petroleum demand is at or near a peak, that the failure of the supply system to meet demand is imminent and that there is no reasonably acceptable substitute for liquid petroleum in many of its uses (especially transportation fuel) and therefore the predicted shortages of liquid petroleum will have catastrophic consequences to the global economy and quality of life around the world. o Many experts believe that the emission of greenhouse gases (including carbon dioxide from the burning of fossil fuels) is causing global climate change that will have catastrophic consequences for humanity including large scale desertification of agricultural and forest lands, inundation of coastal lands by rising sea levels. On both of the forgoing issues there is a broad range of expert opinion. In both cases collection of data and modeling of the situation is complex and challenging such that definitive, undisputable resolution of these issues is difficult. Broad consensus on these issues is not likely to occur until, in each case, the problem is made obvious by severe and obvious impacts. It is therefore prudent for the Government to take on the leadership mandated to them by the electorate and to develop strategies and policies that maximize the interests of Albertans and enforce them in an absence of proof, based on a probabilistic assessment of the risk of these situations occurring. [Information Removed] In the previous paragraph, I did not include the recent development of technologies to exploit oil sands as a reasonable cause for the Government to reconsider royalties. First of all, I do not see a major leap in technology as being a contributing factor. A recent wave of oil sands projects will deploy variations of a process known as Steam Assisted Gravity Drainage which was developed in the 1980’s by Imperial Oil and demonstrated by AOSTRA as an extension of two bodies of knowledge being developed contemporaneously throughout the world regarding 1) drilling of horizontal wells and 2) the effect of gravity on the migration of steam in oil sands reservoirs. Any technology development that has occurred may be, in a significant way, as a result of the fiscal regime implemented by the Federal and Provincial Governments in the early 1990’s to encourage oil sands developments. For the Government to now penalize oil sands developers with higher royalties because, in a response to an incentive program, they developed commercially applicable technology would be grossly unfair and inconsistent with the Alberta tradition of forward thinking and fairness in government. I believe that the key driver for the recent boom in oil sands activity is the recent real growth in oil prices not, primarily, the evolution of technology. The growth in prices is a market manifestation of global oil supply shortages and thus it is appropriate, as mentioned previously, that the Government reconsider royalties in light of the real growth in oil price of the past decade. Prior to the early years of the present decade projects were approved in oil sands and in conventional oil when the developer had no reasonable expectation of the extreme increases in prices of the past decade. Those developers should now expect the Government to take an increased share of the benefits resulting from those higher prices. Grandfathering these windfall benefits while penalizing, with a higher royalty, those who have invested in lower quality resources and those who have advanced technologies requiring a higher price would be grossly unfair and inconsistent with the high standards of government established by your predecessors. A new royalty regime should be less sensitive to real price growth, reaching a fair royalty regardless of the price such that further change on the basis of price growth will not be required. Global liquid petroleum shortage and global climate change are problems no jurisdiction is more equipped to tackle than Alberta. Alberta has huge liquid petroleum resource production potential in, primarily, the oil sands but also in bituminous carbonates, enhanced light oil recovery and synthetic fuels from biomass, coal and natural gas. The depleted oil and gas reservoirs that have delivered abundance for Albertans for a century are now a vast potential sequestration sink for carbon dioxide. Alberta also has among the highest concentrations of energy expertise in the world. The skills required to build the oil, gas, coal and oil sands industry are the same skills required to sequester carbon dioxide and to build future fuels industries. So how will the globe meet these two daunting challenges? Our resources are the resources the world needs. Our knowledge is the knowledge the world needs. We should not be looking beyond our own borders nor should we be engaging our federal government in frivolous debate. We should not hide from or attempt to deny the risk of these global challenges. Albertans should lead not just Canada but the world in the attack on these problems. The royalty review needs to reflect the reasonable probability that either or both of these global problems will manifest as early as the coming decade. The resultant royalty needs to encourage Alberta enterprise to take a global lead in tackling these challenges. The Government needs to establish a fiscal environment that makes Alberta the capital of the global attack on these issues. If Alberta does not accept this leadership role – who should the world follow? Albertans own most of the oil sands resources in the province. The expectation that the resources be developed in the interest of Albertans for the benefit of Albertans in the context of an energy hungry world is entirely reasonable. Fair-minded corporate citizens should expect to share the windfalls of unexpected commodity price increases with the resource owners and they should be prepared to develop their projects without adding a burden to the public purse. Fair-minded and thoughtful Albertans can also be expected to support a fiscal regime consistent with certain principles. Among these are: 1. Developments must provide net benefits to Albertans including the following concepts: o Albertans must receive a fair share of resource revenue o The oil industry and the people that it employs should bear the burden of the cost for incremental public infrastructure required as a result of industry projects o For development to be in the public interest the industry must provide long term sustainable employment in Alberta and discourage short term boom to bust employment situations in Alberta. o For developments to be in the public interest they must be conducted in a socially and environmentally responsible way. 2. Lease terms cannot be isolated from royalty consideration. Albertans contribute the natural resource. Developers contribute expertise and capital and take the associated risks. The terms of the lease (rentals, term, renewal terms and conditions) are an integral part of value. If developers can hold leases for long periods without investment or with minimal investment in technology, exploration and development (as is the current situation) then they should expect to pay much more for the option value that they receive as a result of that right. A better situation would provide for the turnover of leases when a company is not proceeding with an approved project using established technology or the company has not advanced an experimental project. 3. Investment in a sustainable future economy for Alberta cannot be considered in isolation from the royalty. There is a difference in the public interest between a project that includes local strategic management, new technology development, investment in upgrading in Alberta, and local research and engineering support from a project supported by foreign research and engineering exporting bitumen blends from the province. 4. The pubic cost of managing the development of the resource cannot be isolated from the royalty. The cost of regulation and oversight and the cost of developing public policy including such expenses as the research efforts of the Alberta Research Council to aid the Government in the development of strategies for exploitation of the resource need to be borne by the industry. 5. The Government is the servant of the people. Oil sands developers have no natural entitlement to consideration. The Government must act in the interest of the people but it is in the interest of the people to provide and to have the reputation of providing a stable, fair investment climate that changes when it changes to reflect the interests of the people with respect to major external factors such as global liquid petroleum shortages and global climate change as probably caused, in part, by emission of petroleum derivatives including carbon dioxide and methane. These are not frivolous reasons to change the royalty regime and the industry and the financial community could not reasonably expect the Government not to act in the interest of the people in the face of these risks. BUT Albertans enjoy the benefits of the reputation of being one of the best (perhaps the best) regulatory/fiscal environments in the world because our governments have historically acted reasonably, prudently with great care to build a reputation for stability and fairness. 6. The Province is best served by a regulated free market system with consistent rules for all participants. A free market system is one where developers can enter and leave the business freely and no class of developer has an advantage to enter except by the competitiveness of their own assets including their intellectual property. Some aspects of the present system strongly favor large international oil companies (e.g. long term leases requiring essentially no activity and little cost to hold and the low escalation on the capital account used to establish payout point for change in royalty reflecting only the cost of capital of the world’s largest corporations and very few if any Alberta-based companies). Given that leases can be acquired and held indefinitely at low cost there is no way an Alberta entrepreneur, regardless of expertise and ability to contribute to the public good can compete with an international oil company, especially a foreign government controlled one. Consistent with the foregoing principles are some more specific suggestions that I hope you will find of value in your present re-consideration of oil sands royalties. 1. The fiscal regime ought to reflect the nature of the partnership in oil sands development between the Province and the developer. The Government contributes oil sands resources and the developer contributes technology and capital at risk. The Government should not be out of pocket due to the developer’s activities so the royalties plus lease rentals prior to payout should be sufficient to cover the cost of regulation and public infra-structure. The developer should be entitled to earn a fair and reasonable return on its capital before the Government increases its share to include anything more than recovery of its costs. Once the developer’s returns are assured, the Government should be able to increase its share to a higher percentage, reflecting its contribution to the partnership. The present royalty structure (1% Gross revenue royalty until payout of the capital account and 25% net revenue thereafter) is a step in the right direction. Probably something in the order of 5 percent would more fairly reflect the Government’s costs in infra-structure and regulatory oversight in the pre-payout period but the capital deployed account should be escalated at a percentage that reflects a more realistic cost of capital (e.g. LIBOR plus 5% or LIBOR x 1.50 or long term BOC bond rate plus 4% - I can refer you to an expert in this area) Escalation of this account by a lower number strongly tilts the playing field in favor of large international oil companies who can acquire leases and hold them with minimal expenditure for the option value. The present practice of taking 25% of net revenue after payout is appropriate but, in light of the proposed higher escalation rates on the capital account, the Government should expect to take a slightly larger share after payout – perhaps 30 to 35%. The Government can reasonably take a further increased share when the capital account (escalated only to the initial retirement not to the second retirement) is paid out the second time. It would be reasonable for the third and subsequent cycles of revenue sufficient to cover the developer’s capital for the Government to increase its take to something like an even share (50%). This will protect the Government from unrealistic windfalls to the developer as a result of the escalation of oil prices. A regime as described above, acknowledging the real costs, will also better fit a future in which financial penalties need to be implemented to discourage greenhouse gas emissions or waste of water resources. 2. Royalty percentages should not be price dependent and there should be no other price-based vehicle for the government to tax the industry. Many investments count on increasing prices and, in a world threatened with scarcity of liquid petroleum and the inherent potentially catastrophic economic instability, risk taking and forward planning by the industry is appropriate. The royalty formula, as described above, should provide a fair division of revenue regardless of the price without attaching any premium that increases the Province’s share without taking into account the likely increases in the developer’s costs. Costs tend to be strongly related to activity level and activity level is strongly driven by price. This relationship will tend to discourage marginal projects at times when the service and supply sectors are strongly demanded by better projects, a natural system for regulating activity levels. 3. Presently the long term and easy renewal of oil sands leases facilitates the hoarding of lands while windowing technology development and testing by others. Many high quality leases are currently being held with minimal delineation and with no dedication of the lands to an approved project nor is any significant development underway. Some of these leases have already been held for decades. Leases should require action and investment in development or in experimentation at a level appropriate for the magnitude and quality of the resource. I believe that the Government has been convinced that developers should be able to hold large leases for long periods of time because of the cost required to develop technology. The industry’s investment and activity toward developing or improving technology to suit these leases has not reflected the option value gains. The Government should consider higher rent, shorter terms and extension of leases only for approved commercial development with demonstrated technology of delineated resource. Any land (whole or partial leases) that is not commercially developable with existing technology and not within an approved project should revert to the crown at the end of the primary term in a manner similar to petroleum and natural gas leases. Terms should be much shorter. Saskatchewan had Canada’s first commercially successful steam assisted gravity drainage projects, in part, because leases there expire if they are not developed in a manner very similar to Alberta’s P&NG leases. Lease renewal terms should be changed (shorter term, requiring an approved project and delineation for renewal, with higher inactive lease rentals) to provoke action lest the leases revert to the Crown. New leases should be granted with much shorter terms and higher rents. The public purse is disadvantaged when private wholesalers acquire leases to hold them until neighboring activity demonstrates contiguous pools and suitable technologies. The lease tenure system in Alberta’s oil sands is the largest deterent to investment in technology development and entrepreneurial, Alberta-controlled investment. 4. Nothing should be grandfathered. What is fair is fair for all. Companies who invested early already have an advantage in that they generally have the best lands, they got them at lower than current prices and they developed their projects when the costs were lower. There is no argument as to their cost of technology development. Much of the cost of the technology development was born by the Government. 5. Albertans should not be penalized because a developer has markets and refining infrastructure outside of the Province. The price of bitumen is determined in the market place by subtracting differentials for quality and transportation from the traded price of West Texas Intermediate. When bitumen is shipped to market it is mixed with a diluent so that the viscosity is low enough for the mixture to be pumped. Diluent is now in short supply relative to bitumen production so the incremental barrel of diluent has to be separated at the destination and returned to the bitumen source. If the bitumen is upgraded in Alberta the resulting products can be shipped directly without diluent. In fact, there is usually a small shrinkage in volume such that the synthetic crude volume is typically 15% less than the bitumen volume. The extra cost of shipping bitumen as opposed to synthetic crude (probably in the order of $5/bbl of bitumen) is an extra cost that the industry chooses to take on. It is not a cost that Albertans would take on if our Government owned and developed the Province’s resources. In a socialist system (which I am not advocating), we would upgrade the bitumen here and ship the product to existing refining infrastructure. Albertans should not be penalized because the industry is generally choosing to build upgraders on the front end of refineries at remote market locations instead of building them in Alberta. (Incidentally, I do not believe the common argument that it is cheaper to build an upgrader on the front of an existing refinery than it is to build it in Alberta although I am no longer privy to independent studies that support that view) Aside from the shipping cost advantage of synthetic crude over bitumen, in the future, there may a further advantage of upgrading in Alberta because of penalties for carbon dioxide emissions. Upgraders produce a lot of carbon dioxide. Some of the streams of carbon dioxide produced by upgraders are of high concentration and ideally suited to sequestration. That sequestration would be easy and cheap in Alberta where we have a large sedimentary basin with huge sequestration capacity. It might be more difficult and much more expensive in areas such as the US Midwest where much of our bitumen is shipped. If we allow bitumen to be shipped we can expect a higher quality discount from WTI as refiners take on the cost of carbon dioxide sequestration. With the present pricing system, Albertans will pay for sequestration at out-of-province refineries in the form of a quality differential subtracted from the traded oil price to yield a lower bitumen price. The lower bitumen price will translate through the royalty system to be lower revenue for Albertans. If that sequestration costs more because the upgrading infrastructure is out of the Province in an area with more expensive sequestration costs the incremental cost should be borne by the industry not the Province. The revenue for the purpose of the royalty calculation should be based on a hypothetical price, one that reflects what the bitumen price would be if upgrading was done in Alberta. Those who upgrade in Alberta should be able to use the market price directly. This price should be phased in over about 15 years, the time it would take the industry to build the upgrading capacity here in Alberta. 6. The Government should structure the royalty to accommodate in a similar manner to any other cost a penalty for unreturned use of fresh water and for emission of green house gases. These penalties should be initiated at a low level in the near future and phased in over a long period of time reflecting the global economic environment and Alberta’s advantageous position to establish a leadership role. I hope that you find the foregoing comments and suggestions useful. I urge the Government to act quickly but judiciously to restore confidence in the stability and fairness of the economic environment, a reputation built by generations of good government. If I can be of assistance or if I can meet with you face to face please call me at [Information Removed]. Thank-you for reading my plea. Sincerely, [Information Removed] |
| RRE5483 |
I would hope that you do NOT approve the new royalty report. I think many Albertains would lose jobs over this. I also feel that at the end of the day the province will get less tax money because many oil companies will move the money they are willing to spend out of Alberta. |
| RRE5484 |
Alberta provides one of the world's most politically secure operating environments for the oil companies to operate in. This isn't Russia, Venezula or the middle east. Nationalization risk is near zero. Also, we are tied into the world's largest consumer of oil and gas- USA. When the oil and gas companies are deciding what projects to fund around the world, the political risk is very low; therefore, the rate of return needed to fund a project is much lower than other areas of the world. I hope that the analysis of the commision took into account the cost differential to extract and transport oil and gas in Alberta. If the analysis is on a net basis after considering the cost to extract, then the royalty rate decision simply needs to peg Alberta in a comfortable range as compared to other oppornunities for the oil and gas investments. Totally support the government's analysis of the royalty structure as this is long overdue with the new reality of oil and gas prices, especially, the royalty regime for the oil sands. The oil sands is the most critical decision to make as this is the true 'golden goose' of the medium to long term royalty revenue of the Province. Make a decision that is supported by fact, phase in the implementation and ensure that Albertans receive their 'fair share' while providing reasonable rates of return for the oil and gas companies on their short-term and long-term investments. Side note- while NAFTA prevents too much government interference, efforts should be made to encourage bitumen upgrading in Alberta to provide jobs and corporate income tax. This strategy could reap major economic results for Alberta. I look forward to the decision. |
| RRE5485 |
The royalty report was completed by an independent group of experts who for the most part did a good job. The report was complete in that it looked at not only oil production in North America but also across the world. These experts recommended what I would consider a conservative increase in the royalty rates. The royalty rates even with the increases would put Alberta rates still at lower levels then other governments throughout the world and yet would be a substantial increase in rates. Albeta is booming. There is employment and money seemingly everywhere. Despite this Albertan's are stressed, family life is decaying, the health system is struggling, many people are on anti depressants and all of this while the good times are rolling. This is probably Alberta's last hydrocarbon based boom unless we eventually end up going to coal. We need to get a fair share of the revenues from this resource for the people of Alberta to improve the quality of our lives and not just have more money and more toys. We also need to use our money to help those who are not so fortunate in Alberta, Canada and the rest of the world. We need to leave a legacy for the generations to come. The oil and gas companies have been getting a lot of press since the roryalty report was released and for the most part they are acting like chicken little and saying the sky will fall if the report is adopted. Some of the claims has some merit but some of it is purely for the purpose of advancing the interest of their company and their stock holders. The reality is for the near future our economic system will be driven by hydrocarbons. Those companies in the hydrocarbon business will develop the oil sands in Alberta. There may be some who pull out in the short term and perhaps this would be a good thing for Fort McMurray and Alberta as people would be able to catch their breath and perhaps we could catch up with the infrastructure requirements. I am concerned that the government will back down from a royalty increase that is probably on the low side to begin with. Accept the report and let's get on with it. The challenge for the government is not really the recommendations of the report. The challenge for the government is to have a clear vision on what is a quality life for Albertans, plan for how we will get there and then make it happen. We have to do this and at the same time act responsibly from an environmental and social aspect. One could argue that the world is watching Alberta now. Our children and grandchildren will live with the legacy that we create today. What do we want the world and our future generations to say about Alberta in the early 21st century? |
| RRE5486 |
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. |
| RRE5487 |
Hi, I'm a little lost in understanding how the government is stating that in the next 5 yrs (approx), they will start to loose money and that they can't sustain the current use of funds to infrastructure. This is what I'm seeing: 1) We, the province of Alberta, are spending a lot of money presently to catch up on all the infrastructure that was neglected in the past 10-15 yrs. We saved and saved and saved to be debt free. GREAT we achieved it. Now we are catching up to past needs and current needs. It might take us 5 yrs to do so, but once we have infrastructures (roads, transportation, schools, hospitals etc) in place, our expenditures should come down. If I'm not clear, let me try again. For Example: We spend 5 billion/yr right now for the next 5 yrs to catch up. After 5 yrs it should drop to 1-3 billion to upkeep the infrastructure. So we would not have to keep spending, as per government info, 5 billion on a continuous ongoing basis. 2) The revenue coming from taxes generated by higher wages, increases of gasoline and gas prices will increase taxes collected that would offset any future tax needs. 3) As anyone who has been in the province for more than 30 yrs knows that we run as the Oil industry runs. They go down, the province goes down. They go up, the rest of the province goes up. Only a fool can argue that fact. Now the Oil companies are threatening to stop spending which means what? This means less jobs which means less taxes for the government. Right now we enjoy the great economy that Industry has created for the rest of us. We enjoy all the money that we have gotten with raises and bonuses. (Superstore cashiers are getting $12 plus an hr.) We then spend that money on cars, electronics, food, toys for our kids, clothes, housing, etc. which gives money to other industries. It just perpetuates. If they take their investments elsewhere, WE ARE GOING DOWN. Please feel free to quote me on that. There will be even less taxes for the government to use and guess what is going to happen. When the government needs more money ... you know who they come after right. YUP! It's the taxpayers. You will raise our taxes to pay for the expenses that could have been paid indirectly by the Oil industry. Anyway, I just thought I would give my piece. I hope that it made any sense. Thanks, [Information Removed] |
| RRE5488 |
October 12, 2007 To Whom It May Concern: I am writing in regards to the recently released Royalty Review committee’s recommendations regarding changes to Alberta’s oil and gas royalty scheme. Like most Albertans, I believe that some changes to the current system are necessary, however I disagree strongly with the recommendations as presented by the committee. Like many Albertans, I work directly for the energy industry. I am a self employed Wellsite Geologist, working as a consultant and currently drilling natural gas wells for [Information Removed]. As a direct result of the recommendations presented by the Royalty Review committee, my project has been cut and I will be out of work at the end of the month. After reviewing the report, it is clear to me that the committee based their recommendations on incomplete and in some cases incorrect data. In many cases the analysis did not consider the true cost of exploration and exploitation, and invalid comparisons were made to other jurisdictions where younger, higher production resource basins were being exploited. It is important for Albertans to collect their fair share of resource revenue, but it is equally important for the Government to protect the industry which drives our Province’s economic growth, and the residents who depend on that industry both directly and indirectly. Adopting the committee recommendations as presented may allow the Province to retain additional revenue, however it will do so at the expense of residents like myself, who find ourselves out of work for the foreseeable future. I urge the Government to implement any changes gradually, and to work with industry to determine a fair and equitable division of our provinces resource revenue. Sincerely, [Information Removed] |
| RRE5489 |
Please don't increase the Royalties. Instead, make sure all royalties due are paid and also put more emphasis on honesty & integrity in the people who do the collecting. |
| RRE5490 |
I went through the 80's with all the layoffs. I think that the royaly changes will set off a layoff chain reaction. That will mean many people losing there homes and many people having to leave the provice all together. Which in turn hinders the economy of the entire country. Make sure you get the facts straight and listen to the oil and gas companies. They will cut programs (are). Then you will end up with way less. Doing it Right and with integrity. |
| RRE5491 |
Implementing the panels proposals will stimulate a recession in Alberta which will affect everyone, not just those employed in the oil and gas sector. Investment dollars into the oil and gas sector will drop sharply. Investment is essential to continued activity. The decreased activity will ultimately result in less revenue to the government even with higher royalties. The base of convential reserves will drop because companies will be discouraged from exploring to find deeper higher impact reserves. A large number of producers are already in financial trouble because of the drop in natural gas prices and escalating costs. This will become evident in the months to come regardless of the implementation of the royalty changes. The affects of this have already showing up in the real estate market and retail sales. Furthermore, a unilateral attempt to increase royalties on existing lease agreements, in most parts of the world, would be referred to as an "expropriation". In most common law and civil code jurisdictions throughout the world governments do not make changes to existing agreements. Furthermore, these proposed changes are not much different in affect from the NEP program that was brought in by the federal government. When this occured the government of Alberta stood by its people. [Information Removed] Calgary |
| RRE5492 |
I believe the Oil and Gas resources are the property of the Citizens of Alberta. I find it offensive that the Oil Companies with their billions of dollars of profit every year want to keep it all. They can write off their investments, but don't contribute to the Infrastructure defecits of our northern communities. Royalties should go up and northern communities should get more funding to put in and maintain the roads and other facilities that are in such poor condition from the extraction of these resources. |
| RRE5493 |
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. |
| RRE5494 |
No NO No !!! I am from Red Deer and I work for an Oikifield service company. Increased royalties will be the straw that breaks the camels back. And the camel WILL LAY DOWN AND STOP MOVING. |
| RRE5495 |
Alberta should not increase its total government take. Our economy will slide as a result of this move. My vote is No. |
| RRE5496 |
This report is erronous at best. Please don't consider implementing the recommendations in this report as it will destroy our economy and will cause massive job losses throughout the province, which would not be good for anyone, let alone the government which will have to pay EI, collect less tax, and have less productive citizens. Moreover, with reduced activity in the sector by oil & gas companies, the government will actually see less money coming in from royalties. The recommendations by the panel are based on flawed data and assumptions. The industry is currently trying to battle back exponentially rising operating expenses, so there's no need to make this even worse. I cannot believe the timing of this panel review report. I don't think that you could have picked a worse time to announce this. |
| RRE5497 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 08:01:38 DATE ENTERED {ts '2007-10-02 08:15:01'} |
| RRE5498 |
Differences between the Panel’s assumptions and industry’s are significant. This equates to inaccurate impact analysis, where the Panel’s forecasts for industry activity and investment are biased and more positive than what actual industry members and investors believe possible. The government needs to ensure that any policy change is based upon real-world industry economics. Albertans rely on a vibrant energy sector for our economic well-being. If the proposals are enacted, Alberta’s energy industry could be at risk. Financial markets around the world are concerned about the stability of Alberta’s energy industry in view of the potential political uncertainties related to royalties. This uncertainty has already been reflected in energy company share prices. Major changes could jeopardize th |
