| Random Nbr |
Released Comment |
| RRE6000 |
To whom it may concern; As an Albertan I am writing to express my deep concern for the potential implementation of the recommendations outlined in the Royalty Review Report submitted to the Alberta Government on September 18th, 2007. As a geo-science professional employed with a major Canadian oil & gas producer I have seen first hand how the cost pressures that the industry is facing have greatly limited the number of economic projects that can be executed. Industry activity is already on the decline (especially on the natural gas side), and any additional burden to the economics of these projects will prove to be catastrophic to activity levels all across Alberta. The government still has a chance to act appropriately and restore confidence in the Alberta oil and gas industry. Continue to make Alberta a first choice for world oil & gas investment by providing an economically attractive, politically stable, trustworthy environment where businesses can expect a fair rate of return on their investments. It will be easy for energy companies to move their capital to more competitive areas elsewhere if need be should the panel’s recommendations get implemented. It will not be easy for the hundred of thousands of Albertans whose livelihood depends on a healthy, active, competitive industry, not to mention the long term loss in revenue to the provincial government’s treasury in terms of lost royalties on projects never carried out. I urge Mr. Stelmach's government to do the right thing and protect the economic prosperity of Alberta for today and tomorrow. Thank-you. |
| RRE6001 |
Premier Stelmach: Please be careful. By implementing "your plan" you will have a smaller dish to grab from!! I'm sick of being taxed and now am concerned whether I will have a job for you to tax! |
| RRE6002 |
The government should accept all the panel's recommendations. |
| RRE6003 |
My feelings about the "black mail" of the oil companies is that they need their bluff called. There are companies who will continue to invest in Alberta despite increased royalties. Personally, I wouldn't mind an economic slowdown. Part of my own finances have a dependency on oil and gas and with that consideration I still want the royalties raised. [Information Removed] |
| RRE6004 |
the oil induster is all ready in slow down for the past 12 months. We are having a very finding work already.[Information Removed]have employes pepole plus thier families . to increase roalyties that much now is bad timing . you must consider the fall out it will create from your actions.thank you . |
| RRE6005 |
I think that more time and industry input needs to be taken here. Alberta has been doing well as a province but a word of caution for the Government Pigs get fat Hogs get slaughtered......some royalties are better then none which is what you will get if you force the oil companies to shut down activity in the province of Alberta. Anyone who thinks that this move will not shut down the oil industry in Alberta is not thinking very clear. It's not rocket science when you look at the information. I have always voted PC but I can guarantee you that that will not be in the case in the future.......truly this administration is not thinking of the loss of jobs, loss of revenue it is now getting on GST because of the amount of spending in Alberta at present. Look at what some of the young people are having to spend on mortgages right now to buy a house in Alberta..........if there is no oil activity or a significant reduction in the activity these people will lose their homes. Just what we need more homeless people. People who work in the oil industry work very hard and make a significant contribution to the Alberta economy..................please do not mess with a good thing. [Information Removed] |
| RRE6006 |
I am a young professional just beginning my career in the oil and gas industry. The proposed changes by the review commitee will have very wide reaching consequences on the province and everyone who lives here. From an immigrant perspective if the proposed changes are implemented and layoffs come, I would have to leave this province and likely would not return. I can say from living in another province for most of my life that the people of Alberta have no idea how wealthy this province is until they have been somewhere else. Many of the programs and services Albertans have access to just don't exist elsewhere. As many have said the review has compared apples to oranges in many aspects of their report. The effects of adopting these changes will cripple this province severely, people will lose their jobs and homes, and I would suspect that unemployment would reach record highs. Working for a large Canadian company I have already seen first hand the consequences of low gas prices. The combination of low gas prices as well as increased royalties would reach much further than expected. Winning in the short term by increased royalties could also mean losing in the long term for everyone. Remember that corporate shareholders don't invest in things that are not profitable. Cheers [Information Removed] |
| RRE6007 |
I agree with the recommendations of the Report. What disturbs me is that certain members of the press, with connections to the oil industry, are making personal attacks on the panel members. This is not appropriate. As well, one Calgary editorial writer suggested that representatives of the oil industry were presenting their views to members of the government at private dinners. Again, this is inappropriate. It also presents a bad "optic". In the future, the Government of Alberta should require the oil industry to present accurate cost data on a yearly basis. |
| RRE6008 |
Premier Stelmach, I understand that you are looking for public input on the Royalty Review Report. I would urge you to fully adopt the measures outlined in the report. Best Regards, [Information Removed] |
| RRE6009 |
Mr. Stelmach - you are not Premier as you have not been elected - I give you respect for actually commissioning and releasing the Royalty Review which is the opinion of Albertans. However, you and the present government have been responsible for the cover-ups, corruption and robbery by the Oil industry of the owners of the resources of Alberta; that is merely the people. Your constituency has been the Energy industry and you have been loyal lapdogs. We now know exactly what the priorities of this arrogant government have been for the past decade: to keep the money flowing to the rich and to keep the people in the dark. The time has come for a change. The days of plundering and raping this province are over - the people have spoken and you duty is clear: if you believe even in a pretense of democracy, accountability and fairness you will implement the Royalty Reviews' recommendations in FULL. This is what Albertans want, deserve and you will will give it to them or face the consequences when you summon the courage to call an election. [Information Removed]Life-long Albertan, Registered Nurse, Calgary |
| RRE6010 |
If the government adopts the royalty review panels recommendations the following will and I stress will happen. There will be job losses accross Alberta the likes of which haven't been seen before. Not just jobs directly linked to the Oil and Gas industry but spanning all industries in Alberta. The government will actually see it's royalty and tax revenues decline. This is because mass unemployment doesn't generate tax revenue. In particular natural gas weighted E&P companies will cease investment in Alberta and this will result in the Alberta government's oil and gas royalty grab backfiring and actually reduce the governments take. In a province that has several billion dollars in surplus, how can it be justified to take more from the industry that put that surplus in the Alberta government's coffers. In addition there must be a differentiation between GAS production and OIL production and the resultant royalty revenues associated with each. They are NOT EQUAL. Global oil demand and prices are at an all time high. Gas prices have declined to the point where most of the gas produced in Alberta is uneconomic. I say this as a Geologist who works for a gas weighted Canadian owned and operated E&P company. I am intimately aware of the cost structure associated with exploration, development, and production of gas in Alberta. Under current gas prices, most of the gas produced in Alberta is subeconomic to marginally economic. The only reason gas companies are still drilling wells is the hope that prices will rebound. The royalty review panels recommendations will be the straw that broke the camels back triggering the fallout that I predict will happen. I suggest that you go back to the drawing board and make sure that you have qualified people reviewing the royalty regulations. This would include government, oil and gas industry experts, service industry experts and educated taxpaying Albertans. Ensure that you have up to date, reliable, and unbiased data to work with. Don't turn Alberta into a hostile environment for gas producers to operate in, because quite simply, these E&P companies will invest elsewhere, jobs will be lost (in Alberta), and the government will lose revenue. Regards. [Information Removed] |
| RRE6011 |
I can't even believe that this is being considered. Two billion dollars is a drop in the bucket compared to what we will lose. Although only 10 percent of this province is employed in the oilfield, 100 percent of it will feel the fallback from this. When you look at the boom this province has had, it is directly from the oilfield. We have a chance to slow down and not bust, but this gov't is going to cost people their jobs, their livelyhoods and so much more. As one of the many new homeowners and parents in this province, I am scared what my life will be like in a year or even six months. I don't think two billion will cover the unemployment that we could see. So many people will be forced to move. Doesn't anybody in this gov't remember the 80's? To even consider this is madness. I just hope that you people will listen to the logic I've spoken. |
| RRE6012 |
The goverment has my full support for raising the royalty rates closer to the rates that other juristictions charge, even if [Information Removed] goes through with its threats as proposed in the Globe and Mail. "[Information Removed] would slash spending if Alberta hikes royalties". I have pay world prices for gasoline and I firmly believe that the resource can stay in the ground if there is not fair compensation to the citizens (shareholders/stakeholders) of Alberta. |
| RRE6013 |
Premier Ed Stelmach: As a voter and an upcoming university graduate with a BSc. in Engineering, I am currently in the process of looking for jobs and am alarmed at the lack of postings from energy companies this fall. In a world of $80/bbl oil, the fact that these companies, which are a significant portion of the Alberta economy, are reluctant to hire new-graduates is a sign of their concern over the potential changes. This is an especially alarming observation in view of the changing demographics of the workforce and the ongoing need for technical personnel in this province. As a result of these potential changes, as indicated in the recent royalty review report, industry is becoming increasingly worried over the potential changes and the impact these changes will have. This is being reflected in the current job market. In particular, with increasing labour (and material) costs, the Athabasca oil-sands projects are already experiencing significant pressure due to rising costs. These projects, which account for a large portion of ongoing development within the Alberta energy industry, have the potential to become uneconomic if an increase in royalties were to add to already existing pressures. The companies currently investing in these projects will invest their money elsewhere if they cannot achieve a competitive rate of return within Alberta. Ultimately, the release of the royalty review report, without implementation of any of its recommendations has already began to negatively impact this portion of the Alberta economy and the associated job market. I urge you to carefully evaluate the negative impact of the royalty review on industry as a whole, and on the future of Alberta's economy as it may already be forcing university graduates to look for work outside the province. Thank you for your careful consideration of this issue, [Information Removed] |
| RRE6014 |
Good afternoon, I feel obliged to write this comment due to an experience I had today with a fellow Albertan who commented on what they perceived to be a “small impact” of the royalty review on their daily life. This appears to be a misconception on behalf of many Albertans – one that is incorrect. I ask that the government and my representative (Alana DeLong) study this report with great care and perhaps consult with economists who can clearly state the devastating implications of these recommended actions. We need to clearly understand and publicly state, in simple terms that by raising royalties in an effort to increase government income we are also causing the run off effect of a large number of layoffs in the oil sector. This will then move into other sectors of the economy as people begin to default on their mortgages, credit payment, decrease consumer spending and thereby also decrease the tax base within the province. We have much more to consider here than just the level of royalties – we must also consider the Alberta economy as a whole. In short, I do not agree with this review and feel that the report (as agreed by fellow economists) is greatly flawed. Thank you for your time, [Information Removed] |
| RRE6015 |
I strongly disagree that the government of Alberta should adjust royalities at this time as per the tabled Royalty Plan. Gas prices are low, activities are less than normal, proceeds from current royalties are feeding the success of this province and any changes at this time will only cripple our already staggering economy. Your system of thinking falls along with this type of thinking below: Since it is tax season let's put tax cuts in terms everyone can understand. Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20."Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33%savings). The seventh now pay $5 instead of $7 (28%savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $49 instead of $59 (16% savings). Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $10!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier. [Information Removed] For those who understand, no explanation is needed. For those who do not understand, no explanation is possible. |
| RRE6016 |
To Whom it May Concern: I understand how touchy a topic this is in Alberta. I will not claim to know all the complexities of the issues as that would be an out right lie. However, I will give you my two cents based on what I do know and believe to be true. 1) The oil companies are making good money and should give back to the people and province that help them accomplish this. It seems to me they have been cheating the system in the tar sands projects by claiming that they are not all done thier project developments thus paying a lesser portion of the royalties. If this is in fact true... they are lucky we have not gotten back pay thus far. and should of course start paying the appropriate amount IMMEDIATLEY. it is not fair to cheat the system like that especially when this industry in specific puts so many strains on the communities of the north. We need the money to properly position and advance the province for the future so we are not always dependant on this industry. One concern I do have is this industry getting a double hit with the environmental card being played by our Federal Government. I do think the oil industry should be more responsible. At the same time it has to be viable and sustanibale. This is where we will have to help phase in things I guess. However if they are cheating the provincial system how do they expect us to come to their aid when they are soley out for themselves. Its a partnership that we seek that will benifit all. I trust that our government will do what is in our best interest and if that means holding out like the Danny Williams then so be it. Out there in Newfoundland they had nit invest the money yet. The money is already invest here. Who are they kidding... going to stop or slow things down... if they are not growing they are diying. They will slow things down on purpose to get puplic opinion on their side... we have to wait them out and call thier bluff just like Danny Williams. I am sick and tired of the BS they try to pull and am proud of Mr. Stelmachs Government for standing up to them. I am 100% behind you in this fight. Best Regards, [Information Removed] |
| RRE6017 |
Dear Mr. Premier, As an Albertan, born and raised in Calgary I am deeply disturbed by the Alberta Government's Royalty Review process. I feel that a quick and extreme increase in the Royalty Rates will only serve to stifle the imvestment in the Oil and Gas sector. There are benefits to Alberta as a whole which are not limited to the Royalties, which include the Landsale returns, jobs for Albertans, spending in the retail sector and investment in the community. 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.” Regards [Information Removed] |
| RRE6018 |
Don't let bad data contribute to poor decision making. Please walk cautiously and don't let your record to date become you legacy. |
| RRE6019 |
I think it's another tax grab goverments take non of the risk but like to take the profits. It wasn't to long a go when Alberta said het where open for investment in the oil sands. Know you have investment you want to up the royalties. How can we trust goverments. Just like the feds backtracking on trust funds. If the raise the fees. I for one will pull my investments out and go else where |
| RRE6020 |
As a business owner I'm very concerned about how the government is about to approach this very sensitive issue. Capital investment, jobs and our pride at stake if not handled carefully. Please don't turn our province back ten years. The royalty increase should be negotiated fairly and and fazed in over a period of time. Lets every body just cool down and look at the big picture and look for a middle of the road solution. Signed Concerned (Medium & Heavy Duty Transportation Industry) |
| RRE6021 |
I have read through parts of the final report & agree with the recommendations within. Our current royalty schedule is clearly out of date and the people of this province are not being fairly compensated. Collection of the royalties from oil sands seems to be the worst case. Implement the recommendations. [Information Removed] |
| RRE6022 |
In reading the report it seems that Alberta is already getting a fair share of oil and gas revenue. Did the panel include the funds received from land sales, which is substantial. I am concerned that increasing the royalties on conventional oil and gas will further slow down an industry that is already slow due to soft gas prices. |
| RRE6023 |
Higher oil sands royalties could cut 13 per cent or more of the value from current and planned projects. A rise to 64 per cent from 47 per cent, including royalties, taxes and other levies would lead to cut backs in the operational sectors of the business. What this will do is affect the very core of the peoples that you are asking for votes. Imagine the negative effect of the increase in the royalties leading to future stagnation of planned projects, leading to loss of work and/or under employment of your voters. Imagine the loss in the Alberta Govt. revenue in personal taxes, EI, CPP and others that sustain the social programs presently enjoyed and providing a good quality of life to your voters. I stronly suggest the Govt. to reasses its position, review the drastic increase of appx. 17% in its proposed levies. As your voters you are biting the hand that is feeding us!!! |
| RRE6024 |
The Royalty Review Panel's recommendations are flawed in that they assume that government take is something that should be viewed in isolation, without regard to investment returns. Any revised royalty structure must result in returns that allow for investment. The oil sands severance tax in particular is draconion and will result in a loss of jobs and therefore a weaker economy in Alberta. I am very concerned that the government will "get it wrong" and cause devastation to the provincial economy. |
| RRE6025 |
The Government should increase Royalty Payments to the Province by increments . 2007 = 8%, 2008 = 4% more, and in 2009 = 6% more. I would need more info on the industry, to increase above 18%. Thank you, [Information Removed] |
| RRE6026 |
Mr. Stelmach, I am a wife of someone who has worked in the oil industry for almost 40 yrs. I also have a son who works in this industry. They have worked many long hours and sometimes in very dangerous surcumstances. I believe it is because of all the workers in the oilfield that the rest of the province has become so prosperous. We live in a province that does not have to pay sales tax and have a fairly reasonable income tax. The "patch has slowed down considerably over the past year and will probably cause a lot of families to lose their homes if the proposal to raise the government take comes about. I do not think at this time that our province needs to give more to the government as we are in fairly good financial state because of the hard work of our oil workers. Please take this into consideration. Sincerely [Information Removed] |
| RRE6027 |
I think this review is going to ruin this province and you should be very conserned about what you are doing to alot of people that work in the industry. This industry in Alberta will go under. Nobody can afford what you are asking and I think maybe you should check your numbers again before you go ahead with this. |
| RRE6028 |
What is the point of raise the royalties, if hundres of people will lose their Job. We as albertans may get 2 billion more but his generation won't see the billions of dolares that the oil and gas companies were going to invest in the oli patch. The botton line is that the common people want is a good job, no more money so our goverment can spend at their will. Please keep in mind that if Alberta falls in a crisis, all Canada will fall. |
| RRE6029 |
I encourage Premier Stelmach to increase the royalty rates as they have been too low, and we support adoption of the report. The only area that might receive some consideration is the area of natural gas royalties, as the price has been low and perhaps profits are not as great as in the oil and bitumen areas. But do not decrease royalties on natural gas either. I am sure that the oil companies will not leave or carry out their threats of decreasing activity, because where could they do better than here? |
| RRE6030 |
As a long time Albertan who cares about the well being of our province I am disappointed in the approach that has been taken on this royality review. Please do not make quick far reaching decisions based on a report with flawed stale, incomplete data that will if implement actually reduce the economic health of our province. |
| RRE6031 |
If the proposed royalty changes are implemented, I will absolutely loose my job in the oil patch which I have had for 25 years along with many many other people in all sectors of the province. You must realize that it is oil money that drives this province and all sectors are going to be adversely affected. It is pure greed that is driving the province as we have do debt and actually make money every year. What problem are you trying to fix? You will surely create many, not solve any. |
| RRE6032 |
YES, we should raise the royalty rates! Do not listen to the fear-mongering coming from a loud minority of stakeholders. Rest assured the silent majority of Albertans wants these rates raised. I am an engineer, and travel throughout the province on work, going to a variety of industrial sites, from Power Plants to the Oilsands facilities. A straw poll that I have taken of roughly 200 people shows an overwhelming majority (about 4 of 5) people want the royalty rates raised. Further, about 2 of every 5 want them raised MORE than the proposed 20%. Further, in reading the original document online, I see the panel recommends actually LOWERING the rates for certain wells. Specifically, “These recommendations would see 57% and 82% of Alberta’s conventional oil and natural gas wells, respectively, paying less in royalties, with the remaining higher-production wells paying more.” This makes total sense. I can’t believe the news coverage has not pointed this out more effectively. Look --- Albertans are very reasonable people. If they were more aware of the facts of the proposed changes, I’m certain even more than the estimated (my straw poll, Calgary Herald poll showing close to 70%) 70-80% would be on board as well. Perhaps the government simply needs to hire a PR firm to get their message out, prior to instituting the panel’s recommendations. I got a chuckle out of the threat by Conoco-Phillips to pull out of their commitment in the Oilsands. I say, “fine, goodbye, and don’t let the door hit you in the rear-end on the way out.” Their position is nothing more than politicking. If they back out of their plans, we know that another company will gladly take their place in that same property. It may be delayed by a few years, but it will eventually get done. And, it would not hurt Alberta at all if the pace of development of the white-hot Oilsands slowed down a bit. The price of oil will continue to rise as it gets more and more difficult to extract throughout the world, and the demand for this non-renewable resource will be even stronger. Alberta, and Albertans, should stand to benefit even further by slowing the development of the Oilsands, and allowing more of the resource to be developed when the price of oil is north of $100. So, for the benefit of all Albertans, please… RAISE THE ROYALTY RATES!! But before you do so, hire a decent PR firm and get the REAL story out. Thank you for your time. [Information Removed] |
| RRE6033 |
I fully understand the need for stability in Alberta’s economy and one of the main steps is to remain competitive in the energy sector. Undoubtedly, the oil and gas moguls will argue that the royalty rates paid even now are to either too high or at best just right. No corporation of highly paid executives will want to scale back their bonuses and stock options because of higher royalties to the province. They are responsible to stock holders. They have also threatened to take their business else where as a bullying tactic. It is no different from (if you do this I am taking my toys and running away) but where are they going to go? I am sure that any educated person would be able to see that USA is the largest consumer of our energy products. The demand will fluctuate at different time of war and peace depending on whom the USA is going to pick a fight with next. Nevertheless, that demand will never go away and they will always be ready and willing to absorb production surpluses from Canada. The distribution of wealth is a factor to be considered. These companies will not build hospitals, schools, or transportation systems. These responsibilities fall within our governance systems through our elected officials. It is our responsibility as good land lords to assure that we take good care of our own, our people our families. Our stockholders are the Alberta people. Corporations are motivated by profit and that is not a bad thing if it is not excessive. I am sure that a raise of some percent in royalties of the resources that are owned by the Alberta people will not hurt these multinational oil companies making Billions. I doubt it would even bring the price up. Now their stock price might suffer for a short time until traders see that they will continue to be profitable after royalty increases. The USA being who they are wanting a safe and secure supply of energy that they can depend on. They will always be on our doorstep for energy. They will keep pumping money into Canada to assure that supply. Who else on the face of this earth will give that to them, Alberta and Canada. The royalty review commission has made a bold statement not unlike statements made by a union of people to it’s employer. We need a raise. The Stelmac Government should strongly consider giving the people it is responsible to, a raise of some sort and use that additional revenue to build a vibrant and strong Alberta for all. |
| RRE6034 |
If the royalty review is implemented in full it will be devestating to Alberta. There will be companies that stay, but when the huge companies like Encana and Conaco-Phillips pull work, it will mean a loss of jobs for thousands of Albertans, right from office workers in Calgary to the crews in the fields, to the trades people and restaurant/store people as well. There are hundreds of students who will be finished their training next spring without the jobs to go to.(how many of these can afford to retrain?) These companies donate huge amounts of money to charities like the United Way and Encana has built a state of the art wing at SAIT for petroleum studies. They build and maintain roads that benefit forestry and farmers. It is a reality if some of the big companies pull out, there just won't be as much work. I am glad the media has reported that the operation costs the review panel used were outdated, and it costs much more today to do business. Hopefully, a reasonable solution will be found so that we dont lose these companies. Changing public perception now will be hard as so many people think all those who work in the oil/gas field are rich, but this just isn't the case. If need be, I hope the government will take additional time to make a good plan, even if it means going past the Oct. l5th date to ensure we don't lose employers like Encana and Conaco-Phiilips. Thanks |
| RRE6035 |
It is with deep concern that I am writing this letter. I truly believe that the implementation of the Panel’s recommendations will have a devastating effect on Albertan’s wealth and the government’s ability to fund social programs for many decades to come. Just the release of the Panel’s recommendations resulted in large equity losses to Alberta based companies on that day. Albertans already have less wealth today then they did before the threat. Undoubtedly, this destruction of value would increase even more if the government implements them. Governments need to engage in activities that help their citizens, not hurt them. While the equity market only acts as a barometer for future corporate profits, the net effect on Albertans will be many times that amount. Corporations will simply redirect their capital expenditures into areas which provide them their highest rate of return (ROR). We have already witnessed discussions to redeploy budget to British Columbia and the United States. All Albertans, in all walks of life (including car dealers, waiters, construction workers, ranchers, anyone who has a mutual fund in their RSP account etc), will be adversely impacted. Investors require fiscal and political security. They need to know the rules won’t change on them after they invest. It was less then a year ago when Alberta P&NG production commanded the highest price in the world on property dispositions. Unfortunately this is no longer true today; due to the Harper government changing its treatment of Trusts, upcoming carbon tax implementation and now the Alberta government is contemplating vast changes to the royalty structure. Hundreds of billions of investment into Alberta was made on the economic assumptions relying on the published Crown sliding scale royalty rate. Now that money is spent, the rules are being changed? This is not right! We expect it from the myopic governments of Venezuela, Ecuador, Indonesia, Nigeria, former Soviet countries, etc. – but not from within the Canadian borders. The potential impact of this could be even far more far reaching and devastating. If potential investors believe that the various levels of Canadian governments can no longer be trusted. This will adversely impact Canadian investment in all sectors, including sectors outside of energy. It was the foresight of previous Alberta governments that enacted the philosophy of the “Alberta Advantage”. This philosophy has served Albertans extremely well. On page 90 of the Fair Share Report, it states; “ie making Alberta a favourable jurisdiction in which to conduct an energy extraction business”. Strangely, recent events imply that it is some how wrong or a bad thing to have a favourable jurisdiction. There is a misleading perception on the street that the “rich oil companies” are sitting on a pile of cash and the Alberta people are not getting their fair share. That money is not in anyone’s bank account. Majority of the money is re-invested back to grow the business and relatively small piece is distributed to the shareholders (large number holding mutual funds in their RSP portfolio). That money fuels the Alberta and Canadian economy! This is going to have a larger impact not only on Alberta, but on communities across Canada. How many men and women from Atlantic Canada are employed by the oil and gas industry? Please consider these few points when making this enormous decision. We have to make sure we get this right. |
| RRE6036 |
Why are we going for more royalties, lets direct the oil companies to build refineries in Alberta instead of Texas. Just recently the government approved a pipeline to the USA for shipping bitumen to this State. Again why do we not have refineries in Alberta to support the the countries requirements. These refineries would produce additional jobs, manufactured products, wealth etc. This stipulation can be based over x number of years. A refinery cost approximate 6/7 billion that's 12 to 14 years @ your 2 billion dollar a year proposed annual increase. We are talking 50/60 years to of top production of about 3/5 million b/p/d going to the USA, we Canadian's have got to be smarter then this. Historically governments do not give allot back to the people if that we so why are the taxes in Alberta as high as they are, almost what you pay in BC, depending on annual income. Give the private sector the reason and tools to invest in the country, government should set policy that will benefit the country/province long term. Case in proof look at Alberta Trust Fund a paltry 16 billion after 20 years with high taxes and oil spin off. No you'll not make me believe governments will save money for the people long term [Information Removed] |
| RRE6037 |
As an oil company employee I am very concerned about the recommendations made pertaining to conventional oil and gas operations. As it stands right now activity levels have been severely curtailed due to high operating costs in Alberta as well as low natural gas prices. Increasing the royalty take will severely impact already challenged project economics. Please leave the royalties where they are! |
| RRE6038 |
As a resident of the province of Alberta and an employyee of the oil and gas idustry I would like to remind people of the devasting effect that the NEP had on this province in 1981. The oil and gas industry employees many citizens of this province who put money back into the economy. If a portion of these people are layed off due to a reduction in spending by the Operators in the industry all buisneses in Albberta will fell a reduction in sales/profits. Does this province really want to see the unemployment rate increase and be responsible for the hardships many family may be expected to endure? I believe that industry already pays ther fair share and any increases in royalty taxation must be reviewed carefully. [Information Removed] |
| RRE6039 |
There has been much media coverage around the Royalty Review. I certainly hope the Premier is up to the challenge. No doubt the oil company's are going to apply an enormous amount of pressure to conserve their interests. I would like to say that it's about time that the interests of Albertans were brought to the forefront. You only need to take a look at revenues these oil company's are making to realize they are not hurting. Case in point: [Information Removed] 2006 profits, their building of the [Information Removed]in Calgary. Look at the price of gas the average Albertan has to pay. "We will stop production OR we will move our operations to Saskachewan", please give me a break. I would call their bluff Mr. Premier. They are not going to stop these projects after all the money they have committed to them. Please, let these company's go ahead and move to Saskatechewan, lets see how they like dealing with a NDP govenment. Albertan's should be seeing these royalities raised in parity with what is happening in other parts of the world. We could use this money to fund health, education and infrastructure projects that are very much needed. Don't cave Mr. Stelmach, stand up for Albertans!!! |
| RRE6040 |
I expect the Government will fully implement the Auditor General's recommendations because the resources belong to Albertans and the resource will continue to be very profitably exploited regardless of any given multinational's current rehtoric. I also think the Parkland Institute's recent recommendations are a very interesting proposition and should be closely examined. It would give every Albertan a stake in ownership of our own resources. A similar approach was implemented by the Alberta Government in the 1970s when Albertans were entitled the opportunity to buy ownership of Suncor at $10 per share. These are Albertans' resources and we are fully entitled to profit from their exploitation, either through royalties or corporate ownerhsip. Multinationals' interests are simply not Albertans' interests, as evidenced by their threats to abandon us should royalties rise. Corporations only have a duty to shareholders. The Government's duty to is only to its constituents, and this should be evidenced by taking in all royalties on our behalf or possibly giving us shares in corporate ownership. |
| RRE6041 |
The oil industry is already threatning to invest a billion less next year. They make their billions with our resources, their threats are idle, they might actually invest less next year but they will be right back as they need our resources to keep making money. If we don't sell next year we will sell the year after or the year after that. Stop giving our resources away for next to nothing, charge the oil companies more. Their profits come from our pockets at the pumps. Charge the rich and help the less fortunate, not those who take advantage of the system but those who are truly in need. [Information Removed] |
| RRE6042 |
Its about time this Government got a backbone and started collecting our fair share of royalties. If [Information Removed] and the rest of Big oil don't like it they can pack up their offices and move to Houston. I am sure someone else will step in to develop these resources at $80+ per barrel. |
| RRE6043 |
The Royalty review, doesn't need to be reviewed by industry and government. The review heard from oil representatives, the public and others with concerns that it was too low. I made a submission and claimed we had lost nearly $58 billion in revenues due to low royalty rates. This was based on 25 years of low royalty rates, so it was pretty close to the estimate of $2 billion that the panel has stated. It is time to stop the "whining welfare oil companies from getting away with grand larceny, due to collusion from government and bureaucrats. RAISE THE DAMNED RATES, OR SUFFER THE CONSEQUENCES. The Alberta government have betrayed the people by "selling us out" to big Oil. SMARTEN UP! |
| RRE6044 |
Honourable Mr. Stelmach, As a concerned Albertan I have spent a considerable amount of time to study the review panel's report, industry counter arguments, and public documents from governments, university studies, and financial analysts. After looking at opinions from all sides I can come to no other conclusion than that the current royalty regime is indeed out of date and overly generous. Not only has this cost Albertans a lot in lost revenues, the run-away development has greatly increased the cost of living, leading to significant hardship for low- and middle-income earners. To educate other Albertans I have submitted my findings as a letter to the Edmonton Journal with information that allows others to consult key reports themselves so they can form their own opinion. A copy of my letter has been attached below. Albertans expect and demand that our government acts in the best interest of its citizens. I expect no less than the full implementation of the royalty review panel's recommendations, including the important recommendations on accountability and reporting. This decision is too important to let politics or a blame-game get in the way. We need a realistic oil sands strategy that looks beyond the pure economics and I will carefully look at your decisions. [Information Removed] ============================================== (letter to the editor of the Edmonton Journal, dd Oct 8, 2007) Google's view of the oil sands Just type ("favourable tax and royalty regime") into Google and 4 of the 5 hits deal with the Alberta oil sands. With a bit of Google smarts you can find a lot more. Many are presentations that try to convince investors to put their money into oil sands projects and one of the sales pitches is "Alberta has a favourable tax and royalty regime". Clearly the energy companies and investment brokers knew for a long time what the royalty review panel just made public. The governor general's report now tells us that the Alberta government was also well aware of this fact. Next type ("alberta oil sands" canceled delayed "labour shortage") into Google and you will get 28 hits many of them dealing with already ongoing cancellations or delays of oil sands projects due to labour shortages and escalating costs. In a 2007 report from the Canadian Association of Petroleum Producers (page 16) they argue that because capital costs for a 100,000 barrel/day facility has tripled from $3.3 to $10 billion, since 2001, while crude prices have increase 2 to 2.5 times, the current royalty regime remains fair. However, why did we see 300% inflation in a 6 year period? Could it be because the very favourable royalty and tax regime, combined with the many economic and geopolitical attractions of the oil sands, triggered a mad rush to claim a stake in the second largest oil reserve in the world? In this view, the economics of some oil sands projects has become marginal not because royalties are too high but because companies have chosen to trade profitability for rapid growth. In other words, with a more realistic royalty regime, part of the profit margin that has been lost to hyperinflation could have benefited all Albertans instead of the oil field construction and building materials industries. Reduced inflation and labour shortages would also help soften construction costs for the province, its citizens, and the petro-chemical and other industries. Increasing the royalty rates as proposed by the review panel will in all likelihood slow down oil sands development, as threatened by the oil executives, but it should never have expanded at the rate we are currently experiencing anyway. As construction speed slows and labour shortages are resolved, the extra royalty payments will be offset by lower construction cost, restoring profitability. Salary increases will likely slow down but this is compensated by lower inflation. For instance, in the Oct 5 2007 Alberta Finance government report, the earnings increase is a pleasing 4.7% compared to 3.2% for all of Canada. However, the consumer price inflation was also 4.7% in Alberta compared to just 1.7% for all of Canada. Finally type ("peak oil" "economic consequences" site:.gov) into Google and it should be clear from these US-government pages that, although oil sands development may slow a little, industry and the world are not going to abandon the second largest oil source on the planet. The 2005 Hirsch report to the US House subcommittee (5th Google hit) is particularly revealing. Peak oil is expected anywhere between now and 2025 and "it became abundantly clear that effective mitigation will be dependent on the implementation of mega-projects and mega-changes at the maximum possible rate." Clearly, the US government favours massive oil sands development to feed their addiction but it is our government's responsibility to not only get our fair share, but to balance the economic benefits with the social, and environmental costs. [Information Removed] Edmonton, Alberta [Information Removed] Canada |
| RRE6045 |
I am a 22-year old single mother of a 6-year old boy. I am currently an employee of a large gas firm in Calgary, but less than 2 years ago and for my whole life I was just an average Albertan. I am writing because I am very concerned over the recommendations of the Royalty Review Panel. I am unsure of the experience, knowledge or diligence of the Panel itself so I am unsure of how it ensured that it obtained accurate, correct information. I believe this should be a concern of yours when reviewing the report as well. My main concern about the recommendations is that it will have a significant negative impact on Albertans. Too many companies have indicated that they will pull out countless dollars and cut drilling programs in Alberta, I strongly believe that this is not a threat due to the fact that these companies have indicated where else they will put their money. I am only 22 years old but I do know that it is not above our government (at any level) to act irrationally. It is sad that at 22, I have already realized the lack of faith I should instill in government, although I've voted since the day I was able to to try to change this. I can say this by actions of government such as the NEP and the 2006 Hallowe'en massacre (changes to income trust tax breaks). When I first had my son, I received a lot of help. I had extended health coverage for my son, I received the AFETC, CCTB, GST cheques. Now I am getting the chance to pay forward the help that I received. My new job has enabled me to invest in real estate, put money away, I have started to pay taxes and now receive very little money from programs such as AFETC, CCTB and GST. I do not receive subsidy for daycare premiums and have never lived in subsidized housing. This is all due to my career success and the last 2 years have been the best being attributed to my new career in the petroleum and natural gas industry. I had my first vacation this year and took my son to Disneyland. My son's best friend is the child of a single mother of 2 children – she receives a grant to go to school and not have to work while doing it, she receives subsidized daycare, subsidized housing, subsidized extracurricular activities for her children and because of my success in my new career I have also been able to help her give her kids the best opportunities while growing up (help with food costs, extracurricular activity costs, clothing costs, etc.). A lot of these programs are sponsored at a provincial level. It is clear to me that the recommendations not only threaten my livelihood but the livelihood of all Albertans, directly in industry or indirectly but benefiting thereof. |
| RRE6046 |
You are using outdated information for your report. It is imperative that you get up to speed with the current information. Should Ed's party not respond accordingly, many people will be severly hurt and it may become a distinct possibility that Ed and his party do not get voted in again. [Information Removed] |
| RRE6047 |
If you want to destroy a good thing and kill the oil industry in Alberta just so you can show everyone how much of a man you are than go ahead ED. |
| RRE6048 |
I was deeply concerned after reading the report from the royalty review panel. What I found the most concerning was the fact that a rise in royalties of the proposed magnitude may scare of the large amounts of capital required to get many oilsands projects off the ground. There are a number of smaller companies currently pursuing smaller in-situ projects which will still require several hundred million dollars each of capital. These companies do not currently have production large enough to generate the kinds of revenues to support these projects so they are forced to raise capital in the equity markets. Take for instance [Information Removed] oil and gas who just this month commissioned their [Information Removed]project, this would not have been possible without raising several hundred million dollars of funds. Some of the more notable smaller Alberta Based companies which will require capital over the next few years for their projects include: [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed]and several others. These projects are not the prime projects that we see from the likes of [Information Removed], [Information Removed]etc., they are less robust projects and the proposed royalties may cause some of them to not be funded. By making it more challenging for these projects to get the money required you are opening the door for larger, multi-nationals to develop the projects. This is a shame as many Albertans are working very hard on these projects and are also investors in these projects. I believe that the royalty review panel has carried out both a superficial and incomplete assessment of a change in royalties. It is my belief, that they have identified the maximum rent available to the province; they have however lacked the wisdom and sophistication of what they have framed. The oil industry is a margin business both because of the maturity of the basin in the conventional business, but also the very nature of the oil sand business. When a margin business losses a material share of net revenue, in this case in excess of 20% there is a material shift upwards in the required commodity price for many of the projects to proceed. We have seen this in gas drilling in 2007 with 40% fewer gas wells and a decline in production of close to 1 billion cubic feet per day. The impact of the recommendations would be expected to include: 1. A decline in activity until commodity prices rise to support project development. 2. A compounded effect of that decline as the required investment capital is reduced in availability, increased in cost if raised and therefore further increasing the required commodity prices to advance projects. 3. Service sector companies through reduced activity will see the erosion of the volume and value of work and employment will decrease. Alberta’s GDP may be much less than it might have been and government revenue may in fact shrink as they garner a thicker slice, but of a smaller pie. Other points would include: 1. The principle of ability to pay is distorted by the proposed (OSST) oilsands severance tax. This is a gross tax where at current prices it is not the ~ 5% impact on the net to a company but potentially a 10-12% impact from cash flow available to a company as there is no deductibility in tax or other cost factors. 2. The proposal shifts foreign exchange risk to companies. In other words government revenues would be insulated from changes in exchange rates this of course is at the expense of the company share. The severance tax in combination with the foreign exchange risk becomes regressive in lower commodity prices, this will make any slow down worse. 3. The bitumen price question has a potential to be a significant and serious wild card to the determent of companies and perhaps the province. There is clearly a transfer price question for integrated projects. This should be addressed; however a non-integrated project only receives what it can. If deemed prices calculated by a formula do not reflect market prices either the government or company will lose, clearly not an objective. This recommendation in particular is very problematic and not well understood, notwithstanding the recommendation made. The harsh criticism of the committee to others would be particularly well applied to this recommendation of their own. 4. Small companies will be under pressure. In a margin business scale is everything. [Information Removed]is both respected and despised for what it is in the retail margin business. In the oil business this will increase the pressure on being big to survive. The numerous small companies of the conventional, but more particularly the oil sands will be consolidated. The business will be more dominated by the multi-national and activity will be constrained. |
| RRE6049 |
Please spend the extra 2 billion dollars on health care and education. |
| RRE6050 |
This panel of experts spent reams of pages pointing out how much the government can get away with, but with very little space addressing the implications of the hike. It's just too childish to think that business will operate the same with the rate hike. With lower investment surely expected with the hike, the real gain should be calculated based on lower employment, and pinched shops, hotels, and restaurants, and ensure that "People" are getting better with the hike. |
| RRE6051 |
You are going send ALL Albertans in a tail spin!! Our lively hood will be gone. If this happens friends and family will lose everything they own!!! Make the right decision!!! |
| RRE6052 |
After hearing this week’s news, I'm very, very concerned the Alberta oil and gas industry cannot withstand another blow similar to the decision to tax income trusts. At some point the cost of doing business in Alberta is too high, and large corporations will look elsewhere in the world. I know many people employed in the oil and gas industry who've been notified that there are going to be several repercussions including projects being cut, staff being laid off, bonuses being eliminated, etc... Is this necessary???? Considering my own business relies on those companies, I imagine slashing budgets will trickle down and affect my bottom line significantly. |
| RRE6053 |
I sent this as a letter to the Editor at the Calgary Herald. Thought you should know my views as well. Royalty Review How ironic is that for 25 years we have looked with angst at the federal government in fear they would enact another National Energy Program and destroy our oil industry only to have our own government do it to us instead. To those of you that think the oil business can absorb 20 percent increase in royalties, please simply think what would a 20 percent increase in your costs right now do to your business or to your ability to pay your bills at home if all your home expenses suddenly went up 20 percent. How would that impact your spending? Should there be some change in the royalty program? Perhaps but if so the change needs to recognize that there aren’t any more big easy finds out there. Western Canada is a mature basin and as a result new finds are smaller and much more expensive. In addition while there is lots of oil in the tar sands, getting it is out involves huge expenditures in infrastructure and then input energy and operating costs. Do I have a vested interest in the outcome? Absolutely I do. Potentially my employment is at stake, the same as older family members jobs were at risk and lost during the NEP. Do not kill the goose that lays the golden egg. [Information Removed] |
| RRE6054 |
Mr. Stelmach; Ido not know if Encana and all the other big oil companies are bluffing but I will tell you what if they arn't the land of milk and honey (AB) will become a have not province.I know the people of Alberta deserve a fair deal so lets make sure it is fair to both parites. Wheather or not people want to believe it, but it was the oil and gas industry that made Alberta what it is today. Lets try and keep it that way. Thank You |
| RRE6055 |
Dear Mr Stelmach Please consult and negotiate with Alberta's energy producers. Alberta does not like it when Ottawa dictates and energy producers do not like it either. Alberta has succeeded because of a stable, fertile investment landscape. That MUST be preserved and in fact enhanced. Too high of royalties especially those that are put in place without consultation and negotiation produce mistrust and resentment. Consultation and negotiation, in my opinion, are required because it builds trust AND helps to bring clarity to the issue with respect to 'fact finding'. The last thing Alberta needs to do is hinder the fertile corporate climate in ths province. As you know, energy producers bring huge wealth to the province in terms of direct jobs, spin offs, capital investment and very importantly, foreign trade dollars. In other words, they essentially produce a product for export. It is all fine to have a domestic service economy, but for real sustainable wealth creation we need to maintain an environment conducive to real exportable product creation. Real investment creates real lasting jobs and real lasting tax base revenue for Alberta. Hindering real investment will result in less tax revenue even with increased royalties. So, in my view, the royalty report is a good starting point, but it should remain as such. I feel that it is your responsibility to consult, negotiate with the energy producers and seek out the many aspects of the report that are not complete. We have already seen the ill effects of a unilateral Trust taxation change has made. A royalty is simply another form of taxation. The ill monetary effects are on the industry, investors, Alberta and Canada in general. The other side of the ill effects is the damage done to trust and respect between government, industry and voters. The Trust taxation changes are disliked primarily for how they were implimented, without consultation or negotiation. One other thing to keep in mind is that the Trust taxation change has definitely hurt the Harper government politically. Your government has an opportunity to do things better. To not be hasty, greedy and be sure to consult and negotiate. You would want nothing less if it were Ottawa coming for a bigger slice of the pie. ++++++++++++++++++++++++++++++++ The process is as important as the result. +++++++++++++++++++++++++++++++++ As an aside, your government should strive to have energy companies process as much ernergy related products in Alberta rather than have them simply export the product for processing in the USA. Alberta should strive to keep ALL the spin-off jobs here. That is wealth creation and tax base creation. Thank you for your time and I trust and hope that your royalty plan will result in a win-win for Alberta and energy producers. There is enough wealth here that that result should be farily easy to achive. I would like nothing more than to wake up and feel proud to be an Albertan because the 'process' was fair leading to a fair result for all. The day of the federal Trust Taxation annoucement made me feel angry and sad to be a Canadian because of the way it was handled. And, I was not even invested in Trusts at the time. To me it was simply gross mis-management by the federal Tories. I am hoping that your government will raise the bar and handle the royalty issue responsibly. By the way, I do not and have never worked in the energy industry but I do think I know a thing or two about how important that industry is to Alberta in terms of jobs and tax base. I also think I know a thing or two about how to achieve a win-win solution via consultation,negotiation and inclusion. It is simply common sense. Thank you and good luck. [Information Removed] |
| RRE6056 |
The report is seriously flawed, and is not based on accurate information which is being used for its projections. The decrease in activity and loss of Jobs in Alberta is not being factored into the analysis. Why would a pannel that is looking into Royalties be made up of persons with a oil and gas background??? Would you trust a report about medical practice that was not primarily writen by doctors???? |
| RRE6057 |
I hope we finally get our fair share. |
| RRE6058 |
Despite the threats from oil companies, I believe the alberta government should implement what is suggested in the report. It is good for all albertans, if the oil companies scale down their opertation so that we can have workers for city developments and others. It is not good for cities when the prices to build/maintain road sky rocketed. I hope the Stelmach's government is strong enough to carry out the recommendation from the report |
| RRE6059 |
No need to play a game of chicken - history would tell that private industry is always the driver behind the enonomy. We are going fine as a province, why should we changing the balance. Such a increase of rpyalty is totally uncalled for. A concerned Albertan. |
| RRE6060 |
I am very disapointed in Encana's tactics to control royalty review decisions. Scare tatics should not influence government decisions. Mr. Getty was in such a hurry to divesify business in Alberta and gave the Lumber Companies huge breaks in stumpage---too much. If he would have waited the companies would have paid larger prices ! Our energy is needed and if Encana cannot make it in Alberta then all we have to do is wait and other companies will line up to take over where Encana stopped. We may have some short term pain but will have long term gain if we "stick to our guns" ! I do not pretend to know what royalty price increase is fair but would take the advice of the review panel. Do not let big business make our Provincial Policies. They have made billions over the years ! Albertan's own our resources and should benefit the most. Please have the fortitude to make the "big boys" blink ! It is to all Albertan's benefit to get fair dollars for our resources for someday they will be gone as will Encana ! [Information Removed] PS: Been in business for [Information Removed]years and have seen the pressure that oil companies have put on our provincial leaders many times--it's business and is fed by corporate greed with no concience towards Albertan's welfare !!! |
| RRE6061 |
Well done report. It appears, as landlords, we're overdue for a rent increase. |
| RRE6062 |
I think that a longer and deeper look at this issue must be completed BEFORE anything is done. The Oil industry is in a downturn at the moment and as a concerned citizen I think that any MORE pressure on the fargile state of the Oli economy will have a serious detrimental impact on ALL Albertans. |
| RRE6063 |
Further to my comments of [Information Removed]: Having had more of an opportunity to read through the Royalty Review Panel Final Report, I am left with far more questions and concerns. This is due in large part to the verbage utilized within the report being vague and ambiguous. This is an unfortunate circumstance considering the relevance of this report and the impact it will have to the provincial government and the industry. Obviously, the review panel was of the position that it needed to address the concerns of Albertan's. I believe that the average Albertan who is not directly employed in the oil and gas industry will not have read the document and will be relying upon news sources for their information and will base their opinion upon that. I also believe that the Royalty Review Panel is attempting to address the efficiency of the "system" within it's report. I do not believe that this process is an appropriate forum for that. This review should be about royalties and that's it. Discussing the operating environment of Alberta Energy and the Energy and Utilities Board should be done on a different platform after the royalty regime is decided upon. The oil and gas industry is complex. The current royalty programs are complex. They will continue to be complex in their administration as I do not believe that every operating scenario can be bundled up in one nice neat little package. The panel suggests that there is a necessity to even the playing field and simplify royalty programs. It suggests that the Crown would be the authority on determining Capital Cost Allowance deductions. If the panel truely wanted to even the playing field then the Crown would be subject to the same gathering, compression and processing fees as Freehold royalty owners. Certainly the Crown is not suggesting that the industry hand over the responsibility of determining what is a fair and equitable royalty deduction to every individual citizen that we pay Freehold royalties to? How will the government determine what is economical and fair? Will a Jumping Pound formula be used? Will the industry be required to provide some type of annual reporting? Don't we already do this? If the intent of the royalty panel was to leave the CCA as is then why didn't they say so? Why create an environment of distrust? With respect to NGL royalties. What exactly does "whether stripped from the gas stream" mean? Is the panel suggesting that the royalty trigger move from processed NGL's to produced NGL's based upon the In-Stream Compenents? Once again very ambigious. There is no discussion around the cost of processing NGL's from the gas stream or allowing for a discounted reference price. Has the review panel not taken into consideration that there are pipeline specifications on all products. Does the Crown not have to participate in the cost of ensuring their product meets pipeling specifications? Does the Crown not have to allocate any of their production to plant process shrinkage? Where is the even playing field? The review panels thoughts on Oil Sands are almost laughable. References are made to deductions being allowed at a Corporate Income Tax level. I was not aware that the Provincial Government could determine Federal Tax Credits. Is the panel suggesting that the Provincial Government would lobby on behalf of the industry to implement these credits so that the Crown can get their "Fair Share"? Not only does the industry have to utilize the the BVM for royalty payment, but the suggestion is that we calculate our payout statements on this BVM price. What exactly is the BVM? Oh right, nobody knows - how do we address this in our economical analysis? How do you expect the industry to speak on this subject to it's shareholders? I'm certain that Premier Stelmach is taking some heat on this subject, but so are the corporate executive of the industry. This report has done nothing for the business relationship between the government and industry. I also suggest that this report has not endeared the Premier's office with Alberta Energy or the Energy and Utilities Board. What this report has done is create a level of fear and anxiety in the industry. When people fear for their jobs they stop spending money. The level of stress will be directly related to a companies project portfolios in Alberta. Do they have Oil Sands? Do they have Coalbed Methane? Do they have unused capital in gas facilities that have not reached their Remaining Useful Life? Do they have designated plant types? Do they have gas units? A friend at Conoco Phillips told me a statement from the President was circulating trying to reassure people. What are you doing to reassure people? How much foreign investment is the Crown willing to allow? I'm sure China, India and other developing countries will be very interested in taking Encana's spot. |
| RRE6064 |
I've read the report and can't believe, heard the reports in the media that the oil companies think some fundamental mistakes were made. I also know that the price of oil goes up before every long weekend due to some highly complex formula, but it never seems to come down. They made how many billions in profits? I've also heard them say that our economy might cool down if royalties are increased. Maybe this would actually be good for Alberta. Wages wouldn't then to sky rocket out of sight, housing would be more affordable, etc. Lets think of the long term of what we want for our province. Longer lasting oil reserves, a more stable economy, it wouldn't all be bad, except of course for the oil executives who would likely lose out on some multi million dollar bonuses and decreased profits for the oil companies. |
| RRE6065 |
i am in agreement royalties should be increased to bring them in line with other jurisdictions-maybe they should be increased over a period of 3 yrs. i do not believe oil cos. will stop drilling or back off oil sands dev.as the world needs the oil even @ $80.00 per bbl. |
| RRE6066 |
I have concerns about Alberta (and Canada in general) losing it's gains if the recommendations of the Royalty Review are implemented. If we look to the world market, Canada is no where near the top of the list when it comes to returns on investment. This is already an expensive country to do business in, but one we can be proud of. This is because the cost of doing business in Canada already includes fair and equitable labour standards, environmental protection, good returns to taxpayers and land owners, and overall stability in its markets, all of which make Canada an expensive, yet enviable place to be in the oil & gas business. Canadians should be proud of that, continue to set such a good example of fair practices and should be very concerned about sending the message that it's preferable to invest in countries where labour, environment and economic stability are disregarded in favour of higher returns. We have a good balance in this country and a strong future of plentiful resources. Let's not upset that by asking for immediate payouts that jeopardize our future prosperity. |
| RRE6067 |
I strongly urge the Government of Alberta to implement the recommendations of the Royalty Review. Thanks for listening to the opinion of Alberta voters. |
| RRE6068 |
RE: the royalty review report I have serious concerns about the effects of following the recomendations in this report will have on the Alberta economy which, in turn, will have a very real social impact on Albertans. The businesses involved will make the best 'business' decision they can based on the expected returns on their investments. If the incentive for them to invest in Alberta is taken away, why would they continue? Why woudn't they invest somewhere else, globally? This can only result in current projects being cancelled and new ones not starting. The result will be a very high number of people losing their jobs. This has a two-fold effect on all of Alberta. 1. The royalties that would be paid on current projects will not materialize because many of those projects will be cancelled. This means an actual decrease in royalty revenues to the province, when the goal of increased royalty rates is to increase royalty revenue. Revenue that is currently budgetted for will not happen. 2. More importantly, there will be tremendous social hardship on Alberta's families. We are all aware that many Albertan's earn a living from the Oil Industry, whether directly or indirectly. - there will be a sudden increase in the unemployment rate in Alberta - greater demand on the unemployment insurance system in a very short time frame - there will be more money spent on social services for those in need - physical and mental health of people will decline - people will end up losing their homes and potentially become homeless - financial institutions will have people forfeiting on their mortgages and other loans - statistics prove that when families experience a sudden and drastic financial hardship, there is an increase in spousal abuse, child abuse, alcohol abuse, drug abuse and divorce - there will be more bankruptcies - the infrastructure for the purpose of providing support to people who are experiencing financial, mental and/or physical problems will be seriously drained due to the sudden increase in need - it will cost more money to support the programs that people will need; food banks, homeless shelters, welfare, women's shelters, drug rehab facilities, etc - there will also be an increase in the crime rate...again, requiring more finances to increase the number of RCMP necessary - children will be included in this - children who do not have proper nutrition, clothing and especially a roof over their heads cannot be successful at school - they are the future leaders of this province, the country and the world I am a 40 year old Albertan who is very proud to have been born and raised in this province. I clearly remember what families went through after the 80's. There are a lot more people in Alberta now and it will be a lot worse this time. Alberta has a wonderful economic situation right now. Please don't put that at risk in an attempt to create more revenue when the actual result can only be to decrease revenue and increase expenses. The net effect would be devastating to all Albertans. |
| RRE6069 |
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 |
| RRE6070 |
Three weeks after the release of the report the verdict seems to be that the public likes it inasmuch as it promises more money for Albertans. The public have not been told of the economic cost which will be heavy at a minimum. We must keep the "Alberta Advantage" ..do not throw it away..please do not divide this province. Thank you. |
| RRE6071 |
If this royalty proposal goes forward unmodified, the provincial government and the "people" will get a bigger share of a much smaller pie! Please consider the following: - The profitability in Alberta's oil and gas industry is reflected in the bonuses that the province gets in land sales from a competitive bidding process. - The vast majority of the profits received by the oil companies are directly/indirectly reinvested in Alberta. - Unemployment is presently at its lowest level in the last 30 years. - Consumer confidence generated by the rise in housing prices (directly as a result of oil and gas activity) has translated into solid performance in the retail sector. When governments attempt to control economic performance they do so with small incremental changes to interest rates and money supply. This cautious approach is critical because of the potential to seriously disrupt the delicate balance of economic forces (multiplier effect etc.). Why proceed along a path that will surely upset Alberta's enviable good fortune that was won in large part by many years of entrepreneurial and scientific tenacity? I seriously question the merit and comprehensiveness of the economic assumptions that contributed to this radical royalty proposal. Will the “people” really be served? [Information Removed] |
| RRE6072 |
Hey lets not bite off the hand that feeds us. Alberta has to realize that it is the Oil & Gas industry that makes this province the best place in Canada to live, not agriculture. After reading in the Sun today that [Information Removed] expects to pay 400 million in royalties as well as reinvesting some 1.8 billion in the province, my question is what has the Alberta government done with this money? And what amount did the other 599 Oil & Gas companies pay in royalties and how was that money spent. This latest greediness of the Alberta Government, regardless of what the auditor's report states, is counter productive, as the O&G industry will slow production and do their investing elsewhere, and really who could blame them. Please, please give a lot of thought to Alberta's response to this report. As a concerned Albertan who works in this industry, as do so many others in this province and who would like to think we will still have jobs, I am watching this outcome very closely and expect the government to consider everything. The uninformed think the oil companies are just raking in the dough, but they have to realize that the costs have risen dramatically over the past few years and the profit margin has remained pretty much the same. The government also has a responsibility to deliver all the facts to the public. Yes, lets figure the royalties once the costs have been taken into consideration. Certainly no one in the government was jumping up and down to help the industry when oil was selling at $10.00 a barrel. |
| RRE6073 |
I am very dissapointed with both the Federal and Provincial Conservative Government... Who is taking care of our prosperity? The oil and gas sector continues to get blow after blow from both the Feds and the Province Grazing Lease Holders in Alberta have way to much clout when it comes to securing leases roads and easments on Crown Land in which they hold the Grazing Lease. We are paying them like freeholders and are continually held up by their demands. (is this still not the land of the Alberta People?) Traditional Land Use Consultation....just looking for trouble with this one - once again more delays and costs for access and construction and no clear rules or expected payment schedules for the Consultation and field tours. ASRD, Industry and First nations are stumbling around with this and trouble is brewing and projects are not moving forward. Now the Royalty review...do we not have a huge surplus already? Should we not encourage growth and prosperity to all Abertans through the development of our resources by providing jobs and successful companies. Increase the royalites, make acquistions harder and harder, reduce the profit margin what happens ...everyone goes to Saskatchewan to do business. And lastly the Feds all the uncertainty with Koyoto and what will be expected by Industry and the worst thing of all the worst thing of all the Income Trust slap. Keep it up governments and we will be in a recession before you know it. |
| RRE6074 |
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? Loan 5 Billion to “the Fund” from the Heritage Fund; Oil & Gas “the Fund” to repay within 1-2 years; This gives 1-2 years to re-access Royalties with proper knowledge; 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. |
| RRE6075 |
According to the CAPP website, the official view is as follows: "On September 18 the Alberta Royalty Review Panel presented its final report to the Government of Alberta. The report calls for significantly higher royalties and taxes, but suggests there will be no overall impact on industry investment, activity and growth. " Despite this official statement, all major oil companies and several minor ones issued statements to past and present employees, giving notification of cessation of drilling activity in Alberta. Most notable was that received by EnCana Corp. I'm sure you are aware of that e-mail; request a copy if not. Three out of the four members of this family depend on Alberta oilpatch revenue. (The fourth is excluded only because of serious injuries sustained in an MVA.) As of today, we will all be seeking work - due more to necessity than choice - outside of the province. Furthermore, because of the warnings received of the possible impact this decision would make on Alberta-based oil companies and those providing services to same, we moved approximately $250,000.00 to companies not based in this province. These have been painful decisions. Not, however, as painful as it would be to lose assets and investments gained at great cost to this family. For decades, we have spent weeks, sometimes months, without being able to all be together at once. It was worth it. We have much. Then again, we have much to lose. Is there no compromise possible? Is there no compromise possible? |
| RRE6076 |
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 royalty review with announced cut backs, This loss in investment correlates directly to lost opportunities 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. |
| RRE6077 |
I would like to know if the Province's recent changes to environmental policy and the associated costs for oil and gas operators will be considered in conjunction with the Royalty Report. More specifically the costs of technology to meet the GHG targets for air emissions and/or the $15/t penalties to the technology fund. Also costs associated with the more stringent guidelines put forth by the Water for Life strategy which will likely make SAGD and EOR projects more costly due to reduction in fresh water usage and the additional costs of other options. Thanks |
| RRE6078 |
Our household feels that 20% is a bit much. 7-10% would be plenty. Even though most of the Shares belong to places other than Canada we would not want them to pull out and find resorses elsewhere. Thank-you for the opportunity to have a say in the growth and survival, not just inAlberta but the rest of the country. My husband pays 40% to the government and our family knows how it feels to be gouged.We would not want to put that burden on anyone else. Thanks again and hope to here back. [Information Removed] |
| RRE6079 |
If I understand correctly, the oil and gas basin we live in is very mature. This means that new pools are harder and harder to find. This is not the time to be raising royalties on conventional oil and gas - you will shut down exploration - which is already very limited. |
| RRE6080 |
While I have not had the opportunity to read the Royalty Report I have carefully followed the ensuing discussions about it's contents. I am supportive of the changes recommended in the Report and believe the total Report should be implemented. Albertans own the resource and should be the chief beneficiaries of resource development. I also believe that rules for development should be tightened (such as requiring recycled water to be used in drilling) and more careful oversight provided. [Information Removed] |
| RRE6081 |
Don't do me any favors! These Royalty increases that are recommended are supposed to help "Albertans" get their piece of the pie.......well I am an Albertan. However your "help" could put me out of a job. If my company decides to drill fewer wells - which is what they are saying, then they need fewer employees and if I am at the bottom of the list - I could lose my job. My husband is employed on the service side of the industry and they too are talking about layoffs due to the slow down of business - if both of us lost our jobs it would be devastating. Your solution to helping us two Albertan's would be by either having to pay us unemployement insurance while we search for new jobs or welfare if we are unable to find new ones. Great plan - (insert sarcasm here) This report and these plans appear to be led by a group who is poorly informed and has had their head in the sand about the industry over the past year - Not only do you want more eggs from the supposed "golden goose" you want to eat the goose as well. This is like me being from the oil industry doing a review and report of the way the government operates and spends. I don't know a thing about how your office operates and I would never assume to be an expert and come in and make decisions so flippantly about your business. Likewise should be said about your group and this industry. |
| RRE6082 |
Drillers dread royalty backlash UPDATED: 2007-09-29 02:19:42 MST Already limping sector fears job losses and fewer wells being dug in the future [Information Removed] Implementing the province's energy royalty review in its current form will deliver a crippling blow to a sector of the oil and gas industry that's been limping for more than a year, drillers said yesterday. If accepted, the review will make drilling for gas in the province too expensive and will result in fewer wells being dug and more jobs being lost, said Don Herring, president of the Canadian Association of Oilwell Drilling Contractors. "The state of the natural gas industry, over the last few years ... is already showing seriously declining activity," he said. "The wheels are starting to fall off." During 2006, there were 373 drilling rigs working in Alberta, providing 9,400 rig jobs, said Herring. As of the end of May, there were only 61 rigs employing 1,525 employees. That decline is due to the low price of natural gas in the world markets, which is having a disastrous effect on the provincial drilling sector, which in turn gets 70% of its work from drilling gas wells, said Herring. Those are pains that those who mine the oilsands or drill for oil, which is currently trading at record levels, haven't experienced, he added. And at risk are some of the best-paying jobs in the province. Last year, a rig manager earned an average of $160,000, while drillers often made in excess of $100,000, said Herring. But unlike other industries, where a surplus of labour translates into lower wages in order to keep a viable work force on the ground, bringing down pay is something the drilling sector in Alberta is not willing to consider, he said. "We have never in Canada looked at bringing down wages -- we're not willing to drive away experienced crews," said Herring. "The few people who are in the industry are very experienced and we need to keep them there." |
| RRE6083 |
Adam Smith said, "The proprietor of stock is necessarily a citizen of the world, and is not necessarily attached to any particular country. He would be apt to abandon the country in which he was exposed to a vexatious inquisition, in order to be assessed to a burdensome tax, and would remove his stock to some other country where he could either carry on his business, or enjoy his fortune more at his ease. By removing his stock he would put an end to all the industry which it had maintained in the country which he left. Stock cultivates land; stock employs labour. A tax which tended to drive away stock from any particular country, would so far tend to dry up every source of revenue, both to the sovereign and to the society. Not only the profits of stock, but the rent of land and the wages of labour, would necessarily be more or less diminished by its removal." [The Wealth of Nations, Book V, Chapter II] That was 1776. I ask the government, has Mr. Smith been wrong, so far? |
| RRE6084 |
I am extremely impressesd with this report and also impressed with Premier Stelmachs bold decision to call for the report. This would not have been allowed by Ralph Klein who was so secretive that his actions were always suspect of being influenced with back room interference. I ask that this report be implimented without change as I have checked its claims and I find them accurate. I also ask that the Premier and the Minister not take any notice of the threats from [Information Removed]who are too greedy by half. Its now the turn of the "People of Alberta". If this report recommendation is not accepted in its entirety or if it is watered down to benefit the oil companies, I will never vote conservative again. Thank you for this oppertunity to express my opinion. [Information Removed], a proud Albertan and Canadian. |
| RRE6085 |
It's time - don't listen to all this whining from the oil and gas companies - they have been profiting billions for the past 35 years and now it's time they paid their share. It really doesn't matter if some of them pull out - they will be back. where else will they go to find the product? We need higher royalties NOW and they all know it. Do NOT be swayed by their petulance! [Information Removed], Rocky Mtn. House |
| RRE6086 |
test |
| RRE6087 |
Leave it alone, I already feel an effect from companies and I only have a single water truck. Will certainly put me out of business. How greedy do we need to be. |
| RRE6088 |
Agree wholeheartedly with the findings of the report and suggest that they be followed through. |
| RRE6089 |
People who lives in Calgary for a long time will not forget the year of 1982. Will we follow the step of 1982 by adding thr royality tax. It is just a short term gain. I am so afraid of economic crash. We do not want to be forced to leave Alberta and look for the jobs in the other province or even country. |
| RRE6090 |
Dear Mr. Premier, I am a third generation Albertan holding [Information Removed]. I own a third generation [Information Removed]. As I speak to Oil and Gas Entreprenuers and business people regarding the Royalty Review, I gather a sense of deflation in their approach to their careers. If the Panel's recommendations are carried out, Alberta will quickly lose investment, technical expertise, rural employment, and, most importantly, the entreprenurial spirit that this province is built on. Please maintain a close royalty structure to what exists and plan wisely for future Albertans. Sincerely, [Information Removed] Calgary |
| RRE6091 |
This is a cc of a letter emailed to my MLS [Information Removed][Information Removed]Priddis, AB, [Information Removed] September 5, 2007 Honourable Ted Morton 6, 160 Maclaurin Drive Calgary, AB Canada T3Z 3S4 Dear Honourable Ted Morton, I’m quite concerned with the potential impact of the “Fair Share” reports recommendations on myself and Alberta as a whole. This is the first time I’ve written a letter to an elected representative, I hope that you are able to give my concerns due consideration during the resolution of this issue within the Government. Let me start by saying that I have actually read the “Our Fair Share” report, the Alberta Government’s publications explaining the current royalty regime, and the transcript of the June meeting between the royalty review panels and stakeholders along with several other reports and publications. My initial reaction was I don’t completely understand the royalties but the idea of a review sounded good. I read a few guidance documents on royalties and was actually surprised by how much royalty we actually do collect, it was more than I had expected. Then I read the “Fair Share Report” which said that was not enough and backed up the conclusions with data that is difficult to verify and understand. My approach was to then to understand to report’s goals and how the recommendations will accomplish those goals. Admittedly, my analysis is a bit simple but it is a good start to check the conclusions. If you can’t square the detailed analysis with this simple one then there is a problem. The simple premise I came up with is that the Gas companies know where they make the best return so that’s where they spend. I do the same when choosing my RRSP’s If the Royalty rates and other costs of business are low and revenues high, then the companies should be throwing money at Alberta. Conversely if the costs are to high and revenues low the companies will spend in other parts of the world. What I know (and can verify if you have the time) is that in Alberta 2007 and 2008 budgets are down, drilling activity is down, construction activity is down, price of natural gas is low, the value of my house has leveled off or dropped, and the Canadian dollar is high. That was before the “Fair Share” report. The “Fair Share” report states that one of its goals is to “retain Alberta’s competitive advantage.” I find that very difficult to square with the current state of the Natural Gas industry. If we are currently so competitive, and we are just giving away our resources, why is activity cut back? Another goal is to “be responsive to changes in the economic environment faced by the industry.” Again, I don’t see where the goal matches the recommendations or evidence that the panel noticed the current economic realities. The gas companies were already reacting to these realities and cutting back. The panel has ignored those reactions and further ignored that industry would react to further changes in the economics. Investment, in terms of properties may stay but new money to maintain or expand production will go elsewhere. Did anyone notice Royalties are charged on production? Or that most of the jobs and spending are related to new drills? Now, I don’t worry about the Natural Gas Companies. The Companies will still make the profits they were planning on, just not in Alberta. The recent announcements by [Information Removed]and others about further cut backs don’t look like bluffs or threats to me. They look like a statement of their business case. The statement and recommendations by international banks agree. The arguments on the other side of the fence look largely political, impassioned or ill-informed to me. There are numerous comments by folks who say the royalty rate isn’t high enough but don’t even know what it currently is. I can understand some of it, after all who doesn’t want to squeeze a multi-national corporation in favour of the little guy. What makes me nervous is that I see Albertans as the ones losing out if the recommendations are followed as is. The more I’ve read recently the more I do believe that the Royalties do need to be revised, but not as drastically as is recommended, especially when the sensitivity of industry / economy to the changes hasn’t been addressed. A significant change at this time, with minimal consultation seems foolhardy at best. I’ve been here for 12 years and for the first time I’m worried about my job and my home. Thank you for your time and I hope you address these concerns within the party. Regards, [Information Removed] Priddis, AB Cc: Alberta Government (Royal Review Feedback site) |
| RRE6092 |
I am an Albertan who works in the oil sector. I am seriously concerned about the news that your government is considering raising royalty payments at this time. Within the last few days, an exceeding significant number of oil companies have either suspended or cancelled their drilling programs while they wait for an announcement regarding this issue. In the short term, this means that there will be little or no work for many in the industry. The potential long term effect is that work is cancelled indefinitely and layoffs begin. For obvious reasons, I do not need to illustrate the “trickle down” effect that will have on our local economy. Currently there are many individuals who work in the oil industry that are suffering. Due to many factors such as changes to the tax structure of trust companies, and the soaring cost of projects, many contract companies have experienced a 35% reduction in the amount of business. There are contract companies who are moving equipment and people out of Alberta and rolling back wages, as we speak, due to concerns with the lack of work and impending royalty issues. With the current slow down that I am seeing, it is not out of the realm of possibility to forecast an oil industry recession if the government does not proceed carefully. If the royalty change goes through in the way it has been proposed, high producing wells will have to pay higher taxes. This sounds like a good idea, however it will minimize the ability of these larger wells to support the industry as they currently do by paying to: keep the existing low production wells running, assist in the new wells being drilled and completed, and keep the small companies that I work in business. If the good wells generate insufficient income there will be a shortfall on cashflow to stay in business and to pay the day to day bills. All of us in the conventional energy sector will see an immediate negative personal financial impact. I agree that additional dollars should be retained for Albertans and their future. Penalizing the oil industry today will in no way lead to a brighter tomorrow. I also think that it is unfair to imply that the only time Alberta can get their fair share is at the wellhead. The money I get is taxed at the energy company level, is taxed at my company, is taxed as income when I get it, and pays many taxes, levies and user fees when it leaves my hands. With the Province running a surplus why would you risk all these other revenue streams to get an additional cut of royalties? What would the value of the tax loss be if the oil companies quit spending their money on capital projects? This number should be determined before proceeding. It goes without saying that a halt on capital project spending would have a massive effect on the people of Alberta. The characterization that these profits go to a few rich people to make them richer is misleading. Some of these oil and gas company shares I own, to save for my retirement. Higher taxes and royalties means not only do I earn less, but the money that I have saved for my retirement goes out the window too. It has been my experience that the companies that make money in the patch tend to hire more people, and those people pay taxes. The already significant contributions that the goverment takes through taxes (whether it be income to the individual or the company) pay for a large amount of the public welfare programs our province has in existence. Our industry is a major, if not the main, contributor to our provinces surplus. I have heard that you, Mr. Stelmach, will not be intimidated by big oil. Fair enough, but big oil has already shown that they will reduce spending due to increase costs. I think that it is fair to say that they will take their money and go elsewhere if it doesn't work out. For the ordinary Albertan's sake you must consider the timelines for your plan, the impact it will have, and proceed with caution. In my opinion both your political and my financial future, as well as the financial future of many Albertans, not limited to those that exist in the inductry, are in jeopardy if you choose to proceed with the implementation of this plan at the current rate. Respectfully, [Information Removed] |
| RRE6093 |
Unless multinationals pay their fair share to extract resources from the province, they will milk the resource until it no longer exists, and move elsewhere. All the jobs they created will disappear, Albertans will be left with nothing..Alberta is bottom of the world in royalty fees, we are being duped by threats that the oil companies will pull out. |
| RRE6094 |
I forgot to mention, in my previous e-mail, that the oil industry have also thretened to lay off employees if they are charged more. Do we not need workers in every sector of our economy? People might lose a job, but there are many more out there that we can't fill. Keep your poker face on, it's all a bluff. [Information Removed] |
| RRE6095 |
I really don't think that increasing royalties is a wise idea at this point in time. The majority of drilling in the Western Canadian Sedimentary Basin is for natural gas, the stocks in the underground in the U.S are at near record levels. This has lead to a substantial reduction in drilling activity in Alberta already. Increasing royalties will make this process even more uneconomical leading to even further cut in activity and job losses. This proposal will make property values in areas like Grande Prairie and Medicine Hat drop drasticlly. I personnally feel the majority of Albertans do not want to see all the work go out the window because of goverment greed. |
| RRE6096 |
I am very concerned with the recommendations being made by the Royalty Review Panel. Firstly, it seems that the assumptions regarding costs and rates of return are unrealistic. I am concerned that such an important decision regarding royalties could be made by the government using flawed data. Secondly, it seems that the proposed royalty system may be at odds with Alberta's environmental policies. The proposed royalty system will incent companies to drill numerous vertical wells with low productivity instead of using the multi-lateral wells that are more efficient and use a smaller environmetal footprint. The higher productivity wells are penalized under the proposed system and in some cases are not economically viable. Thirdly, I can't help but feel that the analysis is incomplete because it does not assess the potential impact to the communities of Alberta as a whole. The government should undertake to assess the true economic impact to the province taking into account the potential loss of investment as a result of this change. A major pullback in investment would have a crippling effect on this province given its reliance on the oil and gas industry. If the intent is to find a way to provide Albertan's with a "fair share" then please work with the oil and gas industry to truly make it fair. Consult with industry leaders to arrive at a system that will not be based on flawed data and that will not work in contradiction to Alberta's environmental policy. Thank you. |
| RRE6097 |
To the Right Honourable Premier Ed Stelmach, There seems to be a lot of people who encounter obstacles. These people would like to know if there are small business grants to help these people create work for themselves. These people see the importance of support for the economic growth and infrastructure. That is only way Alberta got to where it is at now. Isn't there some way to input funds from the royalties to helping Albertans connect with the information they need to succeed? I have written to you before about employment issues and employers who won't show any regard for people with health issues. These people also have years, sometimes decades, of experience behind them and they want to show what they can do. In terms of business it would offer an element of competition which hasn't been oberved in 25 to 30 years. People doing the job successfully. Is there some way we can be helped. Better access? Thank you for time and consideration. [Information Removed]Calgary, Alberta |
| RRE6098 |
Please tell me that you have looked at other factors in this review, especially in conventional oil and gas exploration and development. How many risk dollars has the Crown allocated to oil and gas exploration and development? None! Enough said. Don't shoot the Golden Goose Ed! |
| RRE6099 |
I feel that the royalty percentage should be raised as there is a lot of dollars made in 1 day, and over the years has accummulated to milions of dollars. A person I know who works in Ft. McMurray agrees as well - the percentage should be increased. As there is many millions of dollars made and is kept with the company, eg. CEO's, the wealth should be shared as many Albertans have to make ends meet and any assistance is helpful. And since a good majority of wealth is kept with the company, for they continue to build, who knows if you will see further royalty dollars as their construction continues to be ongoing/never ending. Their threats, are just that, threats, as they would not like to lose the good lavish lifestyle they live and are accustomed to, which in the end, the employees who work for them/Albertans are the ones who help them achieve their goals, but yet they are not willing to share the wealth, as they should. In summary, I feel (and my friend) that the percentage should be increased and the wealth should be shared, as there are many Albertans that need a good helping hand. And since the people help achieve their goals, then the wealth should be shared more. thank you, [Information Removed] |
| RRE6100 |
My family has already gone through one of our worst years, we took a chance and decided to move from BC to AB, now we are struggling financialy, for the last few months the work has been few and far between, now we are in a stand still, and the worst is yet to come. We have been working in the oil industry for over 10 years and made a life. My husband loves his job and thought moving to Alberta would be a step in the right direction. Apparently that could be a decision we will live to regret. Please reconsider your choices, they will devastate my family and thousands of others. |
| RRE6101 |
I think that this is absolutely ridiculous that the alberta government would even consider making these changes to the most prosperous industry in western canada. While BC and saskatchewan are lowering royalties to encourage exploration and development while alberta is raising them - are we trying to discourage economic growth in Alberta. We want business to continue to prosper in alberta, not drive it away - by raising royalties you will chase the large companies out of alberta, and probably chase the conservatives right out of the government - i know i would never vote for them again as would none of my friends....Use your heads!!!!!! |
| RRE6102 |
Totally disagree with the reports recommendations for massive royalty increases. The oil & gas industry creates tremendous wealth in the form of jobs,taxes, royalties & is a far more efficient allocator of capital than the province. It is outrageous that a government in surplus should be demanding more rent from its most productive industry. The royalty report may make for good politics, beating the oil & gas industry for the common man, but it makes no business sence . |
| RRE6103 |
It will damage the healthy job market badly, hence affect Alberta's economic structure. NO! |
| RRE6104 |
If you want to save the investment in oil sands just keep things as they are. |
| RRE6105 |
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] |
| RRE6106 |
Below is a copy of a note I sent to the Alberta Government for your records: Good morning. I work as a [Information Removed] , covering an area in the Deep Gas Basin of Alberta. Although I'm not directly involved in the accounting involved in the decision making process for our projects, everything I've heard to date would suggest that if the Panel's recommendations are implemented as is, EnCana would divert about $1 billion to other projects outside Alberta. This money could go to other provinces such as BC or Sask., or possibly the US. This would probably lead to layoffs both in Calgary and the smaller centres in Alberta where EnCana has significant operations. One of my major concerns is that if all the comments made by the major oil companies are correct then this could sew the seeds of a "mini-downturn" which could domino into a "major downturn" some time in the future. I have lived through such a scenario and I would not wish to see such an episode inflicted on anyone else. I implore you to ensure that those people making this decision understand fully the way the industry plans and high-grades its future projects so that a well founded decision can be reached in this matter. To suddenly change the rules concerning royalties in midstream is extremely unfair as plans are prepared assuming an existing set of parameters which are assumed to be stable for the entirety of the project. Obviously, if one changes the Deep Gas Royalty in an adverse manner, any company involved in this play will act accordingly so that the shareholders returns are affected as little as possible. Perhaps the existing projects should be grandfathered and any significant changes should be applied to new future projects. I wish I could be more help in this. As an Albertan, I wish to see the positive results from the energy sector give benefits to both the province and the rest of the country. Here's to a good decision. Kindest regards, [Information Removed] |
| RRE6107 |
I am employed by a large oil and gas company that predominately drills in Alberta for natural gas. I am confident that any increases in royalties in the short term will result in a major loss of jobs in Alberta. These employees will be very difficult to replace when the price of natural gas recovers. I urge you to review the findings from the royalty review and suggest a slow phase in of any increases. An increase in revenue to the government will mean nothing to those perple hurt by the job losses and will be remembered most come election time. Job creation and the stability of the economy are much more important to me than even larger surpluses. Please make the right choice for my family depends upon it!!! |
| RRE6108 |
Charge the oil companies higher royalties. I'm sure they'll survive. |
| RRE6109 |
Call [Information Removed] bluff. They had already planned on severly reduced spending in 2008. |
| RRE6110 |
Make it short. Alberta will loose 1000th of jobs and investment into this very costly and labor intensive business will go elsewhere. Also Canadian stocks and Oil sand companies in particular may loose as mach as 25-60% of its low current valuations. This will make many companies to go bancropt and others miserable, without ability to raise funds. If that is what Alberta wants, so let it be. |
| RRE6111 |
Honourable Mr. Premier, I am supportive of a moderate increase in royalties. The current prosperity in the energy sector has been a mixed blessing. For one thing, it has created an overheated business climate which has negatively impacted those who are on low or fixed incomes. To allow ALL Albertans to benefit (not just the oil patch workers) may have a favourable impact on the economy. Let me hasten to add that the oil industry has been very generous in its support of local charitable organizations. I hope a fair solution may be found. Sincerely, [Information Removed] . |
| RRE6112 |
First of all we want to commend the Alberta Government for having the conviction and courage to follow through with actually conducting the royalty review. We also appreciate the transparency in which the review was conducted and how the report was made available to all Albertans at the same time. In considering the options that have been place before you, I note that as "owners of the resource", Albertans, want to be satisfied that we are receiving a "fair and reasonable value" for the sale of our natural resources. Further, there will be great pressure to "act" on the recommendations quickly. However, we are more concerned about the Alberta Government getting it "right" as opposed to rushing into an implementaion plan that is based on the pressure to "act". We make that statement on the basis that no one (Albertan’s in general) clearly understood the royalty structure before the “Fair Share” review, and Albertan’s won’t understand it afterwards. So, be sure to take the due care, time and attention that is necessary before moving forward. Albertans are clearly anxious to hear what the Alberta Government will do in terms of a new royalty regime, however, it is equally important to tell Albertan's what you will "not do" in regards to a new regime. Rememebr that in the absence of clarity, you will have confusion. The report, or media articles seems to lead Albertan to believe that if the recommendations are fully implemented, it would generate an additional $1.9 Billion in annual royalty revenue. Is that in fact the case? If no, what additonal revenue can Albertans expect to realize? Further, if there is addtional revenue generated by the new regime (and not because of more growth and developemet in the oil and gas sector) what will the "aditional revenue" be used for / how will it be managed? Again, Albertans need to see that they are getting a fair value for the sale of their natural resources. In closing, I note that Albertan have not lost sight of what the provinces’ economic prosperity has done for us (the lowest taxes and highest disposable income), however, that is the "Alberta Advantage", and at the end of the day we expect to maintian that high standard while ensuring that we continue to get a "fair deal/share" for the sale of our non-renewable resources. Thank you for your consideration. Regards; [Information Removed] |
| RRE6113 |
my husbands company has already told his coordinator to let his guys know that there will not be any work for them in alberta next year because encana is shutting down shallow gas wells in southern alberta for 2008. we have recently moved into a new house, that we will not be able to pay for if my husband isn't working next year. |
| RRE6114 |
To whom this may concern, I am the operations manager of a small privatly owned oilfield rentals company in Red Deer. For over a year now we have seen the negative effects of the income trust initiation by goverment, lower natural gas prices, and now the Alberta royalty review report put forth. We rely heavily on major oil companies and thier drilling activities to sustain our buisness. We realize that Alberta's boom has not been benificial for everybody and would like to see an educated response from the goverment that does not further hurt the industry while at the same time helping out the small guy. Red Deer's oil service companies are barley scrapping by as it is. Employees are getting laid off, buisness are being shut down, people are loosing thier houses, and the oil company royalty tax hike has not yet been initiated!!. It is my opinion that the Alberta goverment does not see how slow industry is right now. Please carefully consider what the consequenses are before initiating such an important piece of legislation. |
| RRE6115 |
Please do not hinder my childs future. If the oil and gas operators scale back thier operations, my work will also be affected. To be fair, what is the proposed spending of the new revenue, should this royalty be increased? |
| RRE6116 |
There’s been an a lot of discussion surrounding the recommendations of the Royalty Review Panel. My request to you, the Premier, and the rest of the MLA’s in Alberta is to slow the process and take the time to review the recommendations provided by the panel and the information and comments provided by the oil and gas (energy) industry very carefully. I am an employee of a large international oil and gas company and I live in your constituency. The benefits and prosperity afforded Albertans are related, primarily, to the trickle down affect due to the activities of the oil industry in the province such as: Wages earned; drilling, completing, and testing wells; and constructing gas plants, oil batteries, pipelines, access roads and other infrastructure. Royalties gathered are a benefit to Albertans but are not the primary source of income in the province. I’m sure the spending by the industry dwarfs royalty payments considerably. If the recommendations are accepted by the government as they were presented by the Royalty Review Panel, I am certain that a majority of the planned oilsands, deep gas and other projects will be deemed uneconomic and will be shelved for many, many years to come. The industry has already slowed the development of some projects due to increasing costs and labor shortages, has diverted capital away from the province and will not think twice about moving additional capital to other natural resource rich regions such as Russia, South America and the Middle East where costs to find and produce oil and gas are lower but the political climate risky . Up to now, the oil industry has perceived Alberta as a stable political climate in which to do business but that perception will change if the panel’s recommendations are implemented as they were presented. The political climate in Alberta will be perceived to be similar to Venezuela’s with unpredictable outcomes. The major contentious issues are: No grandfathering of earlier royalty schemes, the new royalties applied to deep gas and the oilsands. There is a perception that the Royalty Review Panel did not factor in recent costs as a factor in the formula for calculating royalties and all you need to do is compare the cost of housing in Calgary over the last three years to get an understanding of the change in costs over the same period and the impact that would have on evaluating the economics of doing projects in Alberta. I understand the province isn’t responsible for rising costs but this is the current reality. I am not opposed to the province increasing it’s take in royalties but it needs to be done in a careful manner that does not influence the industry to divert capital programs away from Alberta. Right now there is no better place in the world to work and live than Alberta. This is the land of opportunity. Let’s work together to keep it that way! Please work with the industry to develop a viable solution that works for all. Sincerely yours, [Information Removed] |
| RRE6117 |
As a Province we a financially doing great. Our future will continue to prosper as long as we don't [Expletive] up and change the royaly's. Oil and gas is our bread and butter to the wealth of our economy. The amount of people this effects would be outrageous if Alberta was to change the royalties. My family is one of them, Our home and others would be on the line. No work, no money, no house. Hundreds of thousands of people would be in the same position as well as other sectors of industry would be effected. Please honestly think about this. Keep our economy thriving and don't start something that will hurt the Albertan's that have made Alberta the province that is. |
| RRE6118 |
Goodday I was just wondering if you could please send me your address as so I know were my family could go to get something to eat. If this new tax comes in my family & I will need to look for food & shelter as I & 50 - 60 % of this province would be unemployed. I work in the oilpatch & make a decent liveing but I could not survive for the year or longer without work. If the patch is not going then nothing is going. Look at the communities that rely on this money to come into them, They are hurting already with little slow down period. Your new tax would cripple them & the province. I have been a very strong P.C. supporter in the past but if this goes thru I & the rest of my family would never vote P.C again. Thanks for trying to distroy the greastest province in Canada [Information Removed] |
| RRE6119 |
Make sure you don't shut down the oil/gas patch and [Expletive] up my job or I'll be collecting U.I instead of paying it! Remember: PIGS GET SLAUGHTERED |
| RRE6120 |
Having reviewed the executive summary and select sections and appendices of the Royalty Review Panel's report, I strongly recommend that the government accept the panel's recommendations as presented. Any watering down of the recommendations will not be a compromise, but seen instead as an undervaluation of this public resource. The panel has presented a balanced compromise in their report. They have identified areas where royalties should both increase AND decrease, and have presented a scenario in which Alberta's competitive position will be maintained. It is not acceptable for the government to raise royalties simply for the purpose of increasing financial capital. Development of our natural resources does not come without social and environmental costs. We must use a portion of the royal realignment to address the deficit position that rapid oil and gas development have placed us in with regards to social services and the province's natural capital. As the Canada West foundation and leaders such as Preston Manning have pointed out, we've borrowed against our natural capital in order to make the province prosper; we must now focus our attention on restoring that natural capital through increased funding of government programs that seek to manage and restore our environment. In this way, we will leave a province for our children that is both rich in economic and environmental potential. |
| RRE6121 |
MR. STELMACH YOU HAVE LOST MY CONFIDENCE, RESIGN! YOU HAVE LOST TOUCH WITH THE GRASS ROOTS! YOU HAVE NO CLUE ABOUT THE OIL INDUSTRY AND YOU HAVE ALIENIATED CALGARY. ONCE THE IMPACT OF YOUR DISASTROUS ROYALTY REVIEW, IN PARTICULAR CONVENTIONAL OIL AND GAS IS FELT IN RURAL ALBERTA, YOU WILL LOSE THEIR SUPPORT AS WELL. YOU ARE THE END OF THE CONSERVATIVE ERA IN ALBERTA. RESIGN NOW! INSTEAD OF FOCUSING ON ADMINSTERING PROPERLY THE EXISTING REGULATIONS; INSTEAD OF LETTING OIL COMPANIES LIKE SHELL BRIBE THEIR WAY PAST ENVIRONMENTAL AND SAFETY REQUIREMENTS, YOU FOCUS ON INCREASING YOUR TAKE AT THE EXPENSE OF ALBERTA’S PROSPERITY. INSTEAD OF PROTECTING ALBERTA WORKERS AGAINST BURNING TO DEATH, YOU LET CONCOPHILLIPS BUILD OIL SANDS PLANTS WITHOUT FIRE PROTECTION. IN THE MEAN TIME YOU STEAL THE OIL AND GAS RESOURCES FROM ALBERTA’S CITIZEN THAT HAVE INVESTED THEIR SAVINGS IN THE OIL PATCH AND PUT IT IN YOUR OWN OVERFLOWING GOVERNMENT COFFERS - WASTING IT. INSTEAD OF BUILDING FOR THE FUTURE, YOU WILL NEED TO ASK GOD FOR ANOTHER BOOM THAT YOU WILL AGAIN [Expletive] AWAY. IMPROVE YOUR ACCOUNTING SO YOU COLLECT THE ROYALTIES YOU ARE ALREADY ENTITLED TO INSTEAD OF LETTING THEM SLIP THROUGH YOUR FINGERS. THUS YOU DON’T HAVE TO BE THE HUGO CHAVEZ OF THE NORTH. THEY CALL YOU ‘STEADY ED’, AND MAYBE THAT IS WHERE YOU BELONG… IN THE USED-CAR-SALES BUSINESS. |
| RRE6122 |
To Premier Ed Stelmach Sir: I will be terribly disappointed if the recommendations of the Royalty Review Panel are largely ignored. I have been a school trustee for over 30 years (maybe the longest serving in the province?) and our Board, as well as many others, are experiencing the greatest difficulty in providing the “Alberta Advantage” to our students, in terms of infrastructure. Our resources (yes, my share too) that are being so rapidly mined are not giving us any advantage at all, in fact the opposite. Our schools are plugged. We are not getting more classrooms in time to meet the escalating demand, and big oil has helped to create infrastructure costs that are crippling non-oil Alberta. We must see our proper share of these depleting resources, and not 20 years from now. Ed, I didn’t drive all the way to [Information Removed] to the advance polls to vote for you just to see that no real change is taking place in our province. I am expecting a change for the good for all Albertans in the near future, and not just more of the same. With Respect, [Information Removed] |
| RRE6123 |
I support the recommendations of the royalty review panel and completely support the implementation of the recommendations as proposaed in the report. The Alberta economy while oil-dominated is not completely oil-based and other industries and small businesses have certainly suffered because of the rapidly expanding oil-based economy. I understand the concerns of oil companies and workers with respect to increased royalty rates but I don't believe there will be a mass reduction in exploration or activity solely because of the royalty increase. Besides taking a larger view, the Alberta economy could take a well-deserved rest from the frantic pace. In closing I fully support and expect the government to implement fully the recommendations of the royalty review panel. Thank you for your time. |
| RRE6124 |
My current concern of the report is the impact to the Alberta Economy, both short term and long term. Short term impact is the reaction from Business in cancellation of projects and job loss. As a born and raised Albertan (40 years old), it's taken a long time from the bust of the 80's to get this province back on track. I live in Red Deer, which is dependent on the Oil Industry and would be hard hit. I do not want to lose my job to put more dollars into the provincial slush fund. I would rather keep my job, than fill that pot holes. Long term impact is what will the province have to do in 4-5 years from now, to recover the economy? Just like in the past and going on in other provinces...huge tax breaks to entice business activity and create jobs. So you gain now and just dole it out later. Makes no sense at all. Please do not kill this province's economy. We have jobs here and a trickle down effect to all Albertans. Don't kill the goose, trying to look for the bigger egg. [Information Removed] |
| RRE6125 |
I am very disappointed in both the process you used and the results. Putting a forester in charge of an oil and gas review indicates how little you understand the land-use business in Alberta. The major companies like AL-Pac and Weyerhaueser assume that the huge blocks of land given to them by you become their property, and there is a constant tension between them and the oil and gas companies who need to explore and develop resources on the same lands. Generally, they see oil and gas work as an unecessary intrusion into their forested kingdoms. Your advisors should have told you that before you picked you panel. You also had no one person knowledgeable about Alberta's large, financially threatend conventional oil and gas business which currently has rigs unused all over the province and many people out of work. Perhaps when you review timber rights, stumpage rates, etc. you will have that review led by an oil and gas person. There is a huge difference between what is going on in the tar sands and the rest of ALberts'a oil and gas business. This difference has been lost in your careless process of review, and is embarrassing to Albertans who are surprised that you don't know the difference. Maybe you should bring a few knowledgeable peole back into cabinet to advise you. As Mr. Levant said the other day on TV perhaps the strangest part of this weird process is how you continue to demonize this bogeyman called "big oil". Most companies here are Alberta based, especially all the smaller ones who are in the gas business and you and your panel seem not to know they exist. You have huge surpluses already and run the highest-spending government in Canada. How much money do you need and why are you driving such a reckless and irresponsible process that is going to damage the Alberta based smaller gas companies more than anyone else? Also, the panel has the economics wrong, and don't forget that the CCA and othe tax measures are now gone, and so are the advantages of returning money to retired Albertans via royalty trusts(a group you did nothing for). So you need two billion more, why not cut you government waste instaed of attacking the many excellent companies and peole who take the risks and make the investments that feed your never-ending need for ever more money. This whole thing has been abysmally handled, you should cancel it and start over by consulting the right people who actrually know how the business operates in Alberta- they could help you do this thing right and maybe start to bring back the 12billion dollars that your sloppy process has already driven from the value of ALberta companies over the last few days. Those dollars come from the pockets of Alberta investors! This was a foolish thing to do, and now you've backed yourself into a corner with macho rhetoric about "big oil'. We don't need John Wayne management, we need rational oversight and good planning. Please move to clean this mess up before you do even more damage to Alberta. |
| RRE6126 |
I would like to respond to the report that has been put together by the appointed review committee. I have been working very hard over the last few years developing deep tight (unconventional) gas reserves in [Information Removed]. Up until a few years ago, this play type was uneconomic and worth very little to the people of Alberta as a resource. With the hard work of professionals at several companies like; [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], et al, the industry has now created a resource and value for the people of Alberta out of something that just a few years ago was worth very little. We were able to do this with the help of programs like the Deep Gas Royalty Program and increasing natural gas prices. The costs of developing this type of resource are very high and they are still increasing, as the natural gas prices have fallen to very low levels. At this point, most producers have just gotten to the point of getting back their initial investment on these areas. Most companies have cut back on this type of drilling for 2007 because the economics are just not there. The industry is at the point where they have some momentum on developing these resources further due to the fact that we have invested a huge amount of capital on infastructure and technology to open up this resource. However, if the province was to implement the panel's recommendations and take away the Deep gas Royalty Program and change the royalty structure, all companies would stop drilling in these areas all together. These plays would become uneconomic over night, and become worth very little to the people of Alberta again. Land Sales for this type of play would be worthless. The people of Alberta would get less. The panels report said that gas plays would be paying less royalties. This is only in very low gas price environments. In very low gas price environments, we do not make money. If the gas price was to go up, gas plays would pay more royalties with the panels recommendations. The biggest flaw in the panels analysis was the under estimation of what actual capital costs are to develop resources. They have their figures off by a factor of 2. I hope that the government takes a very hard look inito the assumptions used in the report and do their own calculations using real data that is up to date. If the government implements this panels recommendations as is, Alberta is in for a very hard ride and ressesion. Activity in the oil and gas sector will drop significantly and layoffs would be inevitable. Please consider the ramifications carefully. Regards [Information Removed] |
| RRE6127 |
OOPS! Bye Bye PC'S |
| RRE6128 |
My family is highly involved in the oil and gas industry, both myself and husband are geologists. We are severely concerned about the long reaching impact this royalty review, if put in place, would have on our business, and more importantly our young family. I know the majority of Albertans truly don't understand the impact of this review on them...they look at the 'message' the government and media is sending out..."your fair share"...and they think hey, yah, that sounds great, 'more money' for schools ect...but what they don't know is that these royalty changes make many oil and gas projects uneconomic for companies of all sizes. This means fewer wells get drilled, less hydrocarbons get found, and less money is taken in by royalties, and subsequently into these programs that the public is lead to believe are going to improve. Albertans have to know, that if implemented, billions of dollars of potential investment in Alberta is going somewhere else, whether it be out of province, or out of country. This lack of investment will funnel down to everyone in the form of layoffs for example, not only in the oil and gas sector but ALL industries in this province. The 'come the Alberta', the land of jobs environment will be no more and people will leave this great province. This matter needs time and man power from all involved (including the oil and gas industry) to get it right. SLOW DOWN and make the RIGHT decision. This matter is too important to get wrong, wells that don't get drilled don't pay royalties! My question is: How does the govenment intend, in this short time frame, to adequately address concerns, and subsequently modify this review, so that billions of dollars that should be invested in Alberta don't go walking into another province or country? How can you guarantee that my family is not going be negatively affected by the results of this? |
| RRE6129 |
Please do not follow the Federal governments poor judgement regarding the Trust issue and it's obvious lack of review and consideration by independant analysts. The Royalty Changes as set out will NOT be beneficial to any Albertan. Please listen to the responses of the people who you serve. |
| RRE6130 |
Perhaps instead of increasing royalties and shooting our Alberta economy in the foot, let's try reducing our transfer payments to Ottawa. |
| RRE6131 |
I am hoping that our government remembers what happened in the early 80's with the national energy program and how crippling it was to Alberta. We need to keep in mind that our economy is doing well thanks to the energy sector in Alberta and what will happen if we get greedy. |
| RRE6132 |
If you go ahead with this increase in royalties, I think you will be putting a lot of us albertans out of work. And in the end the government will make even less money off the oil industry. |
| RRE6133 |
I am concerned that the correct message is not being heard with regards to the report. The oil and gas sector are 'quietly' laying off people within the sector as the gas plays are not profitable due to the low cost being received on gas. If a well is not drilled, royalites cannot be collected. I do not believe that some Albertans understand 'oil and gas' economics. Many of the oil and gas companies that operate within Alberta, operate in other provinces and other countries. Investors want to always see growth with shares. If a company operating in Alberta can receive more on their investment in another jurisdiction - that is where they will go. Do we want do this as a province - I do not think. The growth in Alberta is due to the oil and gas sector - this sector is Alberta's life line for financial security, today and going into the future. I do not believe we would want to jeopardize that security by implementing a change to the royalty structure. Thank you. |
| RRE6134 |
Freehold mineral tax should not be doubled - it should be abolished unless the Alberta Government uses the tax proceeds in a more responsible manner. |
| RRE6135 |
As a long time employee of the Oil Patch I feel strongly that the proposed Alberta Royalty changes would have a long term devastating effect which will affect ALL Alberta's from the 'higher up' to the 'little man'. [Information Removed] |
| RRE6136 |
I urge the AB government to take the time to get more input and a better understanding of the consequences of these recommendations before making a decision - if this passes as proposed, this will have serious, negative consequences for Albertans. |
| RRE6137 |
I disagree strongly with the Royalty recommendation. I think the basis is flawed in using drilling costs and gas pricing during a very short boom in the 2005/2006 period. Investment has been noted to have dropped by over $2.5 billion from 2006 to 2007 by the likes of Encana, CNRL and ConocoPhillips alone 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. |
| RRE6138 |
Being born and raised in Alberta, I understand the needs of our growing province. On the other hand I have made my living like thousands of other working in the oil industry. I would have liked to seen the report reviewed by others in the industry, not by people who have no idea what the oil industry is about, except (oil money). Lets take a community for example like Drayton Valley. 40 years ago ( I was 10) We lived 30 miles from Drayton in a prosperous farming community. My dad decided to work for an oil company to help out with the farming expences (our parents raised 6 kids on a quarter section) Having the option to be able to do this gave my parents the peace of mind to not having to worry about money every day, besides farming expences. Dont be confused, my mother and older siblings still milked 25 cows a day which was the majority of the revenue on the farm. I still believe to this day being raised on a farm is the best lifestyle anyone could have. Getting back to the Drayton days, I remember most of my parents friends and aquantances were in the oil industry. Oil companies would sponsor hockey teams, baseball teams, school activities, etc. That was something you will always remember. People who know little or nothing about the oil industry should not be involved in making decisions which will affect my children and grandchildren (yours too) Alberta is prosperous because of oil industry, we all benefit from it, from the ceo,s right down to the barber who cuts his/her hair, to the hotels, restaurants, ma and pa operations in small town Alberta. Lets be rational, Alberta needs its share, but Albertans need theirs too. Lets put them first, not our political wants. [Information Removed] , Alberta. |
| RRE6139 |
After hearing all the whining from the cry baby oil companies about the onerous royalty proposals we read today that the government, due to its lack of accountability, has missed out on $1Bn in royalties. How long has this been going on?? When will it stop? Will Ed finally shut these cry babies up and make them and the government accountable to the people of Alberta? Will he implement ALL the proposals of the Royalty Review Panel? One can but hope... |
| RRE6140 |
As a worker in the Oil and Gas Industry I’m concerned about the short term gain of increasing the royal verses leaving it as it is. With the royalty rate where it is now, everyone is benefiting from it. If an increase in the royal rate cause large players in the oil patch to reduce their investment into future developments I’m sure that the loss of production, spin off benefits, work and capital expenditures for these large multi-million dollar projects would far exceed the numbers we will be looking at over the future by increasing the royalty rate now. If you are looking to raise the royalty rates you should wait until the industry cools and all these future planned facilities are in full production. At that time there will be fewer jobs in the oil patch and you can increase the royalties to deal with these issues. The Heritage Fund that was to be used for a rainy day in the province, but wasn’t touched by the past lead government to deal with a down turn in the economy. Who was to benefit, those who would have been here during the hard time of the early 1980’s or 1990’s but we never directly saw the benefit of the $12 billion in the Heritage Fund go back into our packets during these hard times. So please let the people who call Alberta home benefit by working hard and you can keep the economy going by encouraging investment into the oil patch that benefits everyone. Yours Truly [Information Removed] |
| RRE6141 |
October 4, 2007 Subject: Alberta Royalty Review Honourable Member of the Alberta Legislature: I have been a proud citizen of Alberta for over 31 years and this is the first time that I have felt compelled to write a letter to our elected officials because the consequences of implementing the Alberta Royalty Review Panel’s recommendations would have such drastically negative impacts to the economy and lives of all Albertans. I am very concerned with how politicized and polarized the topic has become and how the media and the Panel have used partial and slanted information to sensationalize their views. The decision on royalties that the government is poised to make will have a profound impact on the future of this Province and I feel compelled to set the facts straight so that a decision with sound backing and judgement can be made. Facts/Issues: 1. It is a fallacy that the Energy Industry benefits the most from the current high oil prices. Royalties are based on a percentage of revenue and no one benefits more than the citizens of Alberta when commodity prices rise with the government’s 60% risk and investment free take of the net revenue 2. Natural gas investment in the Province is currently uneconomic and can’t bear any additional royalty increases. Current Alberta natural gas prices are $5/Mcf (~$5/GJ) and trade at a $1 2/Mcf discount to United States benchmark prices (such as [Information Removed]and [Information Removed]). The energy equivalence of 1 barrel of oil is 6 Mcf of natural gas, so Alberta natural gas is currently selling for $30/boe (barrel of oil equivalent), which is 2.5 times less than current Alberta oil prices. The 3 year industry average natural gas costs are as follows: a. F&D (Finding & Development) - $15/boe b. Operating Costs - $10/boe c. Royalties (25%) - $7.50/boe d. G&A (Overhead) - $3/boe e. Interest (borrowing costs) $3/boe Total Costs: $38.50/boe This results in a negative netback (sales prices are lower than costs) for natural gas and means that the average natural gas project in Alberta is not economic under current prices. This is already evident by the decreased natural gas production over previous years and the historically low rig utilization in the province. 3. Not all energy basins were created equal and as such jurisdictions should not expect the same royalty rates. The Alberta basin is high cost when compared to Alaska, Norway, and Texas due to is small pool size, high natural gas weighting, low productivity wells, remote locations and high sour gas content. The Alberta basin has the highest sour gas content in the world, which adds significantly to the cost of oil and gas processing. Alberta’s transportation costs are also significant when compared with other basins, which are much closer to the end-user market and in the case of Alaska enjoys the fact that it is much cheaper to ship oil than natural gas. Rate of return is the best measure to compare the competitiveness of basins and to determine the level of royalties that can be borne. Over the past 5 years independent studies have shown that both Canada and Alberta provide the lowest rate of return on energy investments in the world and as such cannot bear significant royalty increases. What is fair in Alaska, Norway and Texas should and will be different than what is fair in Alberta. 4. Two billion dollars of increased royalties will result in ~$1.7 Billion in reduced investment in the Province as the Energy Industry currently reinvests 85% of its earnings. Investment capital is very fluid and will be shifted to other provinces and countries that provide higher returns if conventional royalties are significantly increased. This loss will be further compounded by the loss of jobs, income taxes, technology and ultimately citizens. The Alberta Advantage can quickly be eliminated and even reversed whereby growth will be replaced with recession and surpluses will be replaced with deficits. I remember the hugely negative impact that the National Energy Program had on the Province in the 1980s resulting in a decade long recession, massive layoffs and generating a huge provincial debt load. Implementing the Royalty Review Panel’s recommendations would result in this negative period of Alberta’s history repeating itself. The service sector will be hurt most by the reduced investment and this will result in many bankruptcies and job losses in the rural communities in the Province that fuel the service industry. Recommendations: 1. Slow down and take the time to make the right decision. The existing royalty regime was developed over decades and a quick change based on partial information could have devastating impacts to the Industry, the Province, the Economy and ultimately the future of every Albertan Citizen. It is important that we get the facts right before a decision of with such huge ramifications is made. 2. Any changes should be phased in and applied only to new investment projects. Investors and Markets require clear, transparent and stable tax and royalty regimes. Service companies have purchased equipment and producers have leased land and built projects based on the current royalty rates. Most of these investments require 5-10+ years to payout and it is unjust to change the rules midstream and cause those entrapreneurs and investors to lose billions when they invested in good faith based on the current royalty rates. 3. The focus of any changes should be on the oil-sands projects as they have graduated from experimental status to commercial status and currently enjoy low royalty treatment during their pre-payout period. Contrary to oil-sands projects, conventional oil and natural gas developments bare significant financial risk on both a pre and post payout basis. Conventional drilling is a high risk, capital intensive business and royalties are risk free and need to leave sufficient revenue to support the risked capital investment. If you get the balance wrong you will eliminate investment, which in turn eliminates royalties, jobs and taxes. Thanks you for your time on this very important matter and please feel free to contact me if you require any additional information about this topic and the decision which will shape the future of our Province. Best regards, [Information Removed]Citizen of Alberta |
| RRE6142 |
You owe it to all the people of Alberta to increase the royalties. Have it on a floating scale so that companies still invest in the gas market, while enabling all Albertans to benefit from the oil revenues. Don't be afraid. Do this for the future generations in this province. Go down in History as the Premier that did what was right, not what made him look best right now. |
| RRE6143 |
I think the oil companies need to start properly supporting Alberta infrastructure for the personal interest for anyone who is trying to live in this province. The companies have attracted untold thousands of people to this province but have contributed very little back in support of affordable housing, transportation needs, health services, etc. I think a substantial increase in oil royalties is a step in the right direction and it's time the companies started supporting the province they are working in instead of just exploiting it's resources for their own gain. |
| RRE6144 |
I believe that the proposals that are in place are right on the money. I do not think you should back down. The energy companies have had a sweetheart deal for a while and it is time Alberta takes a little bigger piece of our pie.I have had my own oilfield service business for almost thirty years. I have been part of the NEP downturn and watched the mayhem that followed. I also understand that some of the international players say that Alberta is the best place in the world to play. I do not think the Alberta government should knuckle under to these thugs. Stand up for the people of Alberta. We may slow down a little but it was out of control any way. Stay the course. [Information Removed] |
| RRE6145 |
My message to the Alberta Government is plain and simple: Do Not even consider threatening the Golden Goose which continue to propel the Alberta economy to greater height. Shelf the Royalty Review Report and let business continues as usual. |
| RRE6146 |
I am 12 years old, and personally I think that the Alberta Government should not increase the roayalty. If you increase the royalty, there will be many job losses, and many complaints against the Alberta Government. Please consider my oppinion. Thank you for your time. |
| RRE6147 |
I'm in favour of complete acceptance of the Royalty Review's recommendations. "Big Oil" is just a "Big Baby". These cries of hundred's of thousands out of work are unjustified, knee-jerk reactions, largely un-founded in facts, but instead likened to Chicken-Little raving about : "The sky is falling." This government's process in reviewing the requirements and raising the royalties is VERY PROPER when compared with the VERY IMPROPER manner in which the Harper Government harpooned the Income Trusts. |
| RRE6148 |
I don't think that the government has seriously considered what this will do to Alberta and its economy. Alberta runs on oil, the majority of its small towns are oil-based and we take pride in that and that is the reason that we are flourishing. Royalties will only ensure that Encana, one of the leaders in the oil industry, pulls out of our province, leaving what? Thousands of people without jobs, which will help our province how? I don't understand this! People are going to lose their jobs in the oil industry, money is not going to be there and the province is going to bust. Small towns that once lived off their oilfields will be ghost towns that visitors find it spooky to drive through. People will move out of the province, taking everything with them and leaving Alberta fighting for workers even more than they already are! I think this issue needs to be seriously reconsidered and maybe have some people sit on the board who have some understanding of the oil industry and everything that it entails. We can't have people making decisions for our province without the input of people who actually know and LIVE this line of work. |
| RRE6149 |
A news article appearing in The Indianapolis Star (www.indystar.com) of Thursday, September 27, 2007 & page A6, under the heading of "Report: Millions in royalties go unpaid." details what is happening relative to the failure to collect millions of dollars in royalties. Apparently a $150 million computer system that is supposed to help keep track of oil and gas royalties has been a "profound failure." The report indicates the collection process is riddled with mismanagement, ethical lapses and clflicting relationships with the energy industry. No doubt many of the same energy companies involved in the U.S. as the same companies doing business in Alberta. Since my copy of the review report has not been received or study as yet, could this be a major similar problem in Alberta? It would be worth investigating. I have the news article on hand if copy is required. Your response will be appreciated. Respectfully submitted, [Information Removed] |
| RRE6150 |
This email I sent to my MLA Janis Tarchuk As your constituent I would like to view my opinion of the Royalty Review for Alberta as it relates to natural resources for our province. I feel we as Albertans must take a strong stance about our natural resources, they are a non renewable resource which are being exploited and the profits making the American Companies very rich. Now they want to take our resources and refine them in USA and send them back to us where they were in the first place, at there profit and our loss. But that is another issue. The review is needed and we must stand up to this sector as Albertans and Canada cannot allow the private resource companies dictate what the province and citizens of Alberta are rightfully owed, the proper royalties are due to the Province and Country to which they belong. Please be strong and don't allow the threats of the oil companies diminish what we in Alberta have and stand for. Calgary, Edmonton, Fort McMurray, Grand Prairie, Cold Lake, will not come to a stand still like in the 80's. Oil companies will not go away, they have invested heavily in our resources, we are one of the only friendly and secure countries in the world and they like being here. Don't we have to build our provincial infrastructure just to keep up with there new offices and towers, that takes away from our quality of life not add to it. The world wants our oil, they keep coming and knocking, we are an open market. Look at China once they showed interest at what Alberta had to offer Dick Chaney showed up a month or two later to secure there interests. We have what the world wants don't sell us short, even if the royalties are on the stiff side. If this helps please send this on to our premier the honourable Ed Stelmach. The media always blows things up and expounds the negative side of the story. Please do the right thing for Albertans, business will not go away. Thank you [Information Removed] |
| RRE6151 |
Mr. Stelmach: I find it impossible to believe that you do not understand that removing revenue from businesses by whatever means (including increased royalties) will result in lower capital investment. I can therefore only assume that your objective by increasing oil and gas royalties is to lower capital investment by oil and gas businesses in Alberta. I cannot, and will not support that position as you will see in the next election. [Information Removed] Chestermere, Alberta |
| RRE6152 |
I understand the need to review the royalties as it is a ahuge revenue opportunity for the gov't. and realize that any agreement should be reviewed periodically, it is just good business. I hope that the Stelmach gov't realizes the inherent flaws in the reports cost assumptions and recomendations as just that recomendations ... the economic realty of the proposed changes are already being felt. The rumours of layoffs and economic distaster are rampid . I am not sure what is truly happening but this I do know, I myself have seen the effect this looming change in the Alberta martketplace and have lost one sale in the housing sector, this was not a from an oil tycoon but from a prtotypical Blue collar calgariane that is fearfull of his small service company laying him off or worse his small service company becoming instantly unviable . I wish you luck with you next steps |
| RRE6153 |
As a research analyst with a small Alberta-based energy service company, I have spent months pouring over thousands of pages of documents related to the royalty review. The Alberta Government should be commended for opening such a critically important issue to such wide-ranging public participation. It should also be condemned for meeting behind closed doors with the oil and investment industries, after they made two-thirds of the presentations to the panel. The review panel's report was serious and thorough; its recommendations were moderate. I have read every word of the oil and investment industries' criticisms, but very little of it survives scrutiny. As has been recently reinforced by the Auditor General, the Alberta Government has been failing Albertans on this issue for many years. The panel's recommendations should represent the bare minimum for the Alberta government. Any compromise towards the oil and investment industries' dishonest arguments would represent yet another failure for the Alberta government. Albertans are watching. Don't let us down again. We won't stand for it. |
| RRE6154 |
I am Alberta born of Alberta born parents. I keep seeing complaints about waiting times for medical intervention. I have been waitting over twenty years for some help. have a chronic illness called ME or CFIDS. Chronic Fatigue and Immune Dysfunction Syndrome. If I am not to benifit either directly or indirectly from the oil sands then it may as well stay in the ground !. My GP says that test done routinely in the UK are either experimental or simply not available. If this does not change then more and more people like me, sick through no fault of their own will be a burden to the health care system instead of being productive. We do not turn away autistic children not born here, but we cannot care for our own ? Thanks [Information Removed] |
| RRE6155 |
I am the exploration manager for a private oil and gas company and have been instructed to shut down all natural gas prospects until further notice. The cost of drilling, completing and tieing in gas wells is not economic at todays prices. With addtional increases in the royalty structure my job as well as many others that depend on the oil and gas industry is at risk. The ramifications that result from a down turn in the industry affects everyone. The panels results are wrong if they think that nothing onerous will result from this ill advised report. I hope that common sense prevails and the government does the right thing, leave the royalties alone and guarantee jobs for the future. If you don't, there will be a lot of people looking for work and answers. |
| RRE6156 |
I'VE BEEN IN THE OILFIELD FOR 12 YEARS AND I'VE SEEN IT'S UPS AND DOWNS, IF THIS BILL IS PASSED WE WILL SEE A MAJOR DOWN AND I DO NOT WANT TO BE A PART OF IT. WHY IS IT THE GOVERNMENT WANTS TO PUSH ALL OF IT'S BUSINESS' OUTSIDE OF ALBERTA, AND WHY DOES THE GOVERNMENT NEED SO MUCH MORE MONEY? I KNOW I WILL BE MOVING OUT OF ALBERTA IF THIS BILL IS PASSED FOR THE SIMPLE FACT OF THAT IS WHERE THE WORK WILL BE GOING. I HOPE YOU TAKE THE PLEADS OF EVERY FAMILY MEMBER IN THE SERVICE END OF THE OILFIELD BECAUSE I KNOW YOU WILL AFFECT IF NOT RUIN MANY LIVES BY PUTTING THIS THRU. THANK YOU FOR YOUR TIME AND PLEASE DO NOT PASS THIS BILL. |
| RRE6157 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 10:16:18 DATE ENTERED {ts '2007-10-02 10:30:00'} |
| RRE6158 |
I am extremely impressed with this report and also impressed with Premier Stelmach?s bold decision to call for the report to be produced. Ralph Klein who was so secretive that his actions were always suspected of being influenced by back room interference would not have allowed this. I ask that this report be implemented without change as I have checked the claims and I find them to be very accurate. I also ask that Premier Stelmach and Minister Knight not take any notice of the whining from [Information Removed]who are too greedy by half. They have made billions of profits from our resources and its now the turn for the people of Alberta to benefit from our own resources. If the report recommendations are not accepted in their entirety or if it they are watered down to benefit the Oil Companies, I will never vote conservative again as I will have lost all my confidence with the party. If this happens the Conservative Party of Alberta will have become the party for Big Oil and Big Corporations and not for the ordinary citizens of Alberta. Thank you for this opportunity to express my opinion. [Information Removed], a proud Albertan and Canadian. |
| RRE6159 |
As an 'average' Albertan who has lived here my entire life, I feel very strongly about the recommendations to the royalty structure. Many people fail to grasp the full effect that any changes will have on the average Albertan. The review pannel suggests that $2B a year may be gained through a change to the royalty structure. however, this assumes that activity will remain the same. In a declining basin where economics are a driving factor this is a false assumption. Many people have suggested that the government not fear 'big oil'. I agree with this. However, "little oil" should not be tampered with. It is the small companies that drive the economy. The Jr's. The reason why large companies are able to achieve large profits is through economies of scale. When you lose the scale, profits are much less. Changing the economics will force many of these small companies out of business. The effect would be devestating to the average Albertan. I do agree with some points of the review. The system for royalty payment needs to be simplified. I also agree that oilsand development needs to be raised. However "deep" wells should not be raised - it is these wells which battle declines and make working in Alberta possible. However, only by working WITH all stake holders - Albertan citizens, companies, etc, can a successful resolution be achieved. I hope that this is done to its fullest extent. I have lived here my entire life and love Alberta. I would hate to have to leave because my say in how my province is run is not taken into consideration. Please respond to my email as it will give me peace of mind that I have been heard. An automailer is not an acceptable response. Thank you. [Information Removed] |
| RRE6160 |
As an Alberta tax payer I request that the costs used in the royalty report be looked at and if as they are report not a true refection of doing buisness in this economy then the report needs to be redone or ammended to refect this. |
| RRE6161 |
Hi... How can we not act on the recommendations of the review. Industry will always feel threathened, but they are making record profits. The day I write this the price of a bbl of oil topped 82.00$ India and China continue to increase consumption, the Middle East is still a security concern. Really where are these companies go if we start to ask for what is ours? The extra revenues could be invested in our future of renewable resources, and what ever needs the people of Alberta and the government prioritize. Lets ask for what is ours, or start our own Oil Company. |
| RRE6162 |
The royalty rate review was based on old cost information and I am deeply concerned that the increase proposed is going to cause a large reduction in gas well investment in Canada which will in turn cause a reduction in our economy and will result in loss of jobs and a reduction in net revenue to the government. Please re-evaluate with 2007 cost data that can be obtained from all the publicly listed oil and gas companies that are sox compliant. The economics for gas is being totally destroyed and will result in movement of funds to other countries or provinces. The economics for oil is marginal. Please reevalutate and tie any increase to 2007 costs and ensure ecomomic activity does not decline so that revenue to the government can be maximized. Any increase in royalties should be linked to increases in prices. Please re-evaluate with the right data. Thank you. |
| RRE6163 |
We should tie the price of a barrel of oil or the price of natural gas to the royalties paid. In other words, if the price of a barrel rises above $20 dollars per barrel then the royalties go up proportionally. |
| RRE6164 |
Adopt the entire review and spend the new income on badly needed infrastructure. |
| RRE6165 |
I have read the report by the panel. What a bunch of garbage. I can't believe the information in the report. If you wanted to compare places like Alberta it should of been Saskatchewan & BC. Of course you wouldn't want to compare royalties in those provinces because they are already less than Alberta royalties. I work in production accounting so I know the royalties for all provinces. I also can't understand why you need 30 days to decide. To me it is a no brainer. The answer should be you already get your fair share of royalties. I'm an Albertan born & raised. I feel the royalties paid to the province are more than fair. The only people that think Albertans don't get their fair share are the government. Is the government that dense that you think you will get more money with higher royalties? Once we shut in tons of wells in the industry, you will get less. Your report also made it sound like the oil companies are just given the land. We pay surface & mineral lease rentals. We pay to lease the land & license wells. The government & people of Alberta don't pay to drill & complete wells. For oil wells you don't pay for any facilities. I know the Crown pays for a portion of the equipment for facilities. You could argue that we receive a operating cost deduction for gas. Those are capped at $60.00 even though it can cost us far more than that. Why didn't your panel compare our royalties to the middle east. The government gets a hundred percent royalty. Of course the people don't pay any taxes. I know for a fact that there is little or no exploration being done & no reserve studies. Anything goes there. There is no agency telling them how to take care of their wells. Does the government realize it is political suicide to pass royalty increases. I know everyone that I talked to will NEVER vote for the current government again. I have never voted Liberal, but for the first time in my life I would if these royalty changes come to pass. Just the waiting to hear has grossly effected our stock price & most if not all the oil companies stock prices. Most of us have stock or stock options with our companies. If you hurt the oil companies you hurt the very people who voted you in. Fifty cents of every dollar spent in this province comes from oil & gas in some form or fashion. I was in the industry when the Feds brought in the NEP. I saw friends get laid off. I have perminent damage to my hands because of the 12 to 15 hour days we had to do because the companies wouldn't hire more people. To this day the Federal Liberals are hated in this province. We have a very long memory, so if you think we'll forget by election time, think again. When Pierre Trudeau died we were not sad. That is how much the Liberals are hated in this Province. So if you don't like your jobs just implement those changes. Then you will be in the same boat as us, at the EI office. |
| RRE6166 |
The review sends a clear message that Albertans own the resource and are not getting fair value for it. The recommendations are fair and put us in the lower half of oil and gas royalty measures. I am upset to hear that certain insiders are getting to the Premier and spouting doom and gloom. The Alberta Advantage should apply to all, not just a few. I urge you to act and do the right thing. All interested parties had time to contact the panel and provide input. The industry did so. The panel consisted of educated and experienced people. The Premier needs to do the right thing on behalf of all Albertans. |
| RRE6167 |
I strongly feel that Premier Stelmach should accept all the recommendations of the Royalty Review report. Threats to reduce involvement or leave the Province should be totally ignored. Please, Premier Stelmach, do not bow to the pressure of the oil and gas industry. As a native Albertan, I am constantly saddened by what is happening in our Province. The PC government has taken away so much from Albertans and left us paying huge utility bills through the deregulation process. My husband and I are seniors and wonder how we will be able to afford to live in our home much longer. We are the people you should be concerned about, not the multi-national oil companies who have made obscene profits for the past few years. |
| RRE6168 |
Alberta should have been working with oil companies in the same fashion that Norway has been for decades. We should have been doing this for decades! This is not a resource we will have forever and we seem to have boxed ourselves into a one-commodity economy that's going to haunt us in many years to come if we don't act now. We need to charge more for royalties than even the recently released reports are recommending. We also need to establish at least part ownership of the interests that are exploiting our resources. That way, Albertans can see additional benefits from the profits and influence the rate and direction of exploitation, refining and related manufacturing that results from this industry. We need to maximize the benefits Albertans are due from this resource. We haven't even come close to doing this, ever!! |
| RRE6169 |
After reviewing the report, I am disappointed as an Albertan in the lack of real science put into the economic sensitivities. As a professional geophysicist [Information Removed],there are no inputs into the pool distribution size,geographic isolation,conventional versus unconventional geology and general understanding of finding and developing a drop of hydrocarbon from the earth.It does not matter if it is oilsands,CBM,biogenic gas or conventional hydrocarbons being extracted from the earth,each program set forth to extract the molecule has an economic benefit to this province,country and world economy. If narrow sighted reviews take place such as the royalty review panel has the ear of our premier to change th economics so that a bigger slice of the ever diminishing pie,we the people of Alberta and Canada will suffer from such poor analysis and policy design. Please reconsider the impact of this report and look at the geology of Alberta before making a decision. Economics,taxation and greed cannot be drivers to decide the best way to produce a molecule of hydrocarbon from the ground. |
| RRE6170 |
To: The Hon. Lyle Oberg. Please, please, please, leave this issue alone for the time being. Alberta's Oil and Gas industry is in trying times now as it is. PSAC has published that activity will be a cut/paste of 2007 into 2008. The Oil and Gas service company that I work for already has over 250 Canadian employees working in the USA as there isnt enough activity in Canada to sustain thier employment. Had my organization not been large enough to work outside Canada, we would have laid off 250 Albertan's in the last 6 months. Now is not the time for Oil and Gas producers to choose to produce elswhere. The government must think of all the reprocussions to this descision and truly look to Oil and Gas service providers for thier input if they are leery of listeneing to the producers. It is the Oil and Gas Services companies that makes up the majority of the industries population, not the producers. The producers will just move elsewhere, and service companies, Alberta workers will be forced to follow. Regards, [Information Removed]. Alberta Oilfield Worker. |
| RRE6171 |
The report was an excellent analysis of the world fiscal petroleum regimes and where Alberta stands on competetively. Their recommendations were based on sound thorough analysis. The people of Alberta deserve more royalty on their non-renewable resources. I strongly urge the Alberta Government to adopt the recommendations of the Royalty Review Panel in their entirety, with no grandfathering of existing royalty rates for any oilsands project. Stand up to the threats of the petroleum companies and do what is right for the citizens of this province! |
| RRE6172 |
I think the review is a remarkable piece of work, I'm tired of large corporations making the province pay for their enadaquacies in management. I've worked in Fort mc Murray for 4 years an quite sick of overpaid underskilled workers influencing of real estate markets etc...I think the wealth should be shared by all in the province especially by controlling the cost of living for our seniors and those in the service/hospitality sectors. |
| RRE6173 |
Implement the report in its entirety if you want my vote at the next election. The resource belongs to Albertans not [Information Removed]Shareholders. |
| RRE6174 |
I believe that this review is completely wrong. Why the hell would we want to kill the bird that lays the golden egg. I am a born and raised albertan and I believe this would be the stupidest policy change that has ever been undertaken by the government of alberta and the second worst ever for the province of alberta (next to the NEP). I would be appalled and disgraced to call myself an albertan should this royalty structure be implemented. |
| RRE6175 |
it seems that the new system penalizes explorers. With a maturing Basin i think there should be incentives to spend the large upfront capital required to find new discoveries; whether they be deeper targets or in areas with undeveloped infrastructure. |
| RRE6176 |
As a small buisness owner and operating company in Alberta for the last 25 years I am dismayed at statement that changes to the royalty tax will not overally effect Albertans in any negative fashion. Over the years the oilpatch rolls along with its normal ups and downs and as a buisness owner you can plan and survive in this atmosphere. With our governments posting 6 - 8 billion dollar surplus the tax system we have in place seems to be working fine with everyone in the province being overtaxed. The only times small buisness in Alberta were not prepared for were the long downturns after NEP government mistakes. This change the government is proposing smacks of the same kind of unthiniking change. If your machinery is running smoothly like the Albetra ecomony why would you remove several spark plugs just to see if it will change the way the equipment runs when the answer is obvious. I vote strongly on leaving well enough alone. The Albertan people are working and moving along fine with the present system. |
| RRE6177 |
The royalty panel report is based on flawed information. It also compares "pies" and government takes in other parts of the world whose basins (or fields) are in no way, shape, or form the same as the Western Canadian Sedementary Basin. It jumps to inaccurate conclusions because of this. The general public seems to think they are not getting their fair share because oil prices are so high. The fact is Alberta is a gas province (the only material oil is really the oil sands). Conventional gas activity follows gas prices; not oil prices--and gas prices are low right now (AECO gas is $5.50 spot or $33 BOE vs $80 BOE for oil). Conventional drilling activity in Alberta is already on the decline -- before the panel report was even released. Land crown sales have also plunged from a year ago. Costs are high; gas prices are low; finding and development costs are higher as it becomes more expensive to find oil and gas left in the basin. We need to encourage investment in conventional oil and gas to ensure a future for all Albertans. Consider the ramifications of an already depleted basin, high-cost environment, and low gas price environment on all Albertans before finalizing your decisions. You must be extremely cautious... as what appears to be gaining "our fair share" may be jeopradizing our future from "any fair share". |
| RRE6178 |
I am in favour of implementing the Royalty Report without alteration for the following reasons: 1. It would bring our regime into the midstream of royalty regimes around the world. 2. The present arrangement has led to a very inefficient oil development because of the provision for recovering capital costs before going to full royalties. It is not surprising that oil company executives would rather pay higher costs than taxes but it leads to bad business practise. If royalties are raised the companies will recover the difference by making their practise more efficient. 3. The government has already heard from experts in the field, all with expertise in oil industry, the study panel, they have shown that previous royalties have not even been properly collected or accounted for. I sincerely hope that your government will not be influenced by the Pavlovian response of the energy companies’ threats. They have had a very good ride with Alberta natural resources. They have benefited from infrastructure paid for from our taxes. Their threats and protests sound, to me, rather like those of spoiled children who have finally been told that they are going to have to do some chores for their allowance. Please stand firm. |
| RRE6179 |
I believe it would be a huge mistake to follow through with the implementation of the panels final report. The government needs to listen to industry leaders to understand the implications of the proposal. All small business owners and thousands of service sector people will be significantly affected. In addition, if this proposal is adopted as is, I will not vote for the conservative government in the next provincial election. |
| RRE6180 |
As President of the local [Information Removed]at party ([Information Removed]) I feel we should stage the raises, but perhaps go for three 6% raises and disagree with the panel on 20%. |
| RRE6181 |
I have read the report, listened to media reports expressing both the points of view by the public and the petroleum industry. My considered response is that these recommended changes be implemented as they were expressed by the panel. [Information Removed] |
| RRE6182 |
Premier Stelmach, The current onslaught of protestation by energy companies against the Royalty Review Panel's recommendations is not surprising, but it is disappointing. While I understand the economic rational behind the generic royalty regime and its efforts to foster development of the tarsands, it is now time for Albertans to collect their fair share of revenues from this precious and non-renewable resource. The Panel's recommendations focus on the tarsands - where profits are growing tremendously with the increasing price of global oil; where industry costs are increasing at a lower rate (33%) than global oil recovery costs (55%); where cumulative environmental damage is dramatic; where local communities like Fort McMurray are crying out for more than just increased funding for infrastructure - they need families to settle and strengthen the community. I implore your government to recognize that the Panel's recommendations are not extreme in the least. In fact, should all of the recommendations be implemented, Alberta will still rank lower than many other comparable jurisdictions including several states in the United States. In my conversations with friends and families, it is clear that people are looking for clear leadership on this issue. Many of us feel that the energy companies are profiting from this 'boom' but that regular people like me, my parents, and friends, are simply having to pay more for our housing, drive on deteriorating roads, and worry about what will happen when the 'bust' does come. Alberta needs a plan...and these recommendations could be the first steps to reassuring Albertans that our government is there for us, not just for those working in corporate headquarters in Calgary. In conclusion, I would like to encourage you to see these recommendations as a starting point. A point from which Alberta can begin to recover up to 100% of the economic rent from the natural resources that we are blessed with. [Information Removed] |
| RRE6183 |
As a bred and born Alberta, who has lived in Alberta for 68 of my 77 years, and has seen the rise of this Province from the ashes of the "National Energy Policy", I respectfully "beg" Mr. Stelmach and his decision makers not to implement the recommendations of the Royal Review Panel without significant revisions, so that the very foundation of the Alberta economy, and the many, many benefits that have accrued to Albertans, and indeed to all Canadians because of it, may continue to drive the economy and continue to provide the advantages we enjoy because of it, without undue interference and draconian financial restrictions (ala the "National Energy Policy"). Please do not, I repeat, do NOT decimate the Alberta economy by instituting the recommendations of the Royalty Review Panel without significant modifications. |
| RRE6184 |
On thie issue of grandfathering, the panel has commented that there should be no grandfathering in order that everyone be treated equally. Cabinet (and the panel) should be made aware of the sophistry in this type of thinking. In fact, assuming that there is no grandfathering for whatever new policies are adopted, then for everyone to be treated equally it will be necessary to continue to change royalties at periodic intervals. In this way, everyone making capital expenditure decisions whether past, present or future, would be making those decisions without certainty as to the important economic variable of royalty rates. In other words, if there is no grandfathering then those deploying capital in the future have the advantage of certainty of royalty rates while those that have already deployed capital have been deprived of this certainty. That is not equal treatment. |
| RRE6185 |
This would be a real crapy way to make the value of my house decrease by 20%. If this happens, a true conservative is moving to the Liberals. Leave it alone, Alberta is doing great!! |
| RRE6186 |
As a resident of Alberta for the past 17 years, a conservative party supporter in elections over this period and an employee in the oil and gas industry, I am writing you to express my dismay at the findings of the “Our Fair Share” royalty report, as well as at the statements from the current government indicating it may implement these recommendations. While I do believe royalties can be increased, this must be done in a small, measured increment so as to not shock markets and industry spending, and be appropriate for the current economic environment. The foundation of any market-based economy is economic investment, whether it be in the market or industry/consumer spending. In the competitive world economy, the jurisdictions with the most favourable investment terms tend to attract more investment, therefore greater wealth, employment and spin-off benefits for the local economy. This is absolutely fundamental to our future; yet it appears this Report has taken a page from the NDP playbook and may be leaning towards wealth redistribution through higher taxation, fundamental to socialist doctrine. My chief concerns with the economic fallout from the Report are: (1) Large-scale reductions in industry spending due to higher royalties and taxation (2) Significant decreases oil and gas production and revenues, (3) Market retreat from Alberta’s oil and gas industry, making Alberta companies prime takeover targets for foreign multinationals, (4) Lower stock valuations, negatively impacting retirment savings for many, (5) Industry layoffs and bankruptcies, reduced industry hiring of new graduates, (6) Reduced consumer spending causing hardship for small business owners across the province, but most significantly in rural areas; Much has been made of the royalty increases implemented by the Lougheed government in the 1970’s, which had little apparent effect on the industry. I am sure you know that the productivity and reserves of wells drilled in the 1970’s would easily dwarf that of a typical well of today, leading to a major bust in terms in the assumptions as to what today’s industry can bear based on this analogy. Also, in the 1970’s industry was dominated by foreign multinationals (ie. Imperial, Chevron, Texaco, Shell) which could shoulder royalty changes in one of their global operating areas with little difficulty. Today, there are over 700 oil and gas companies based in Alberta and controlled by Albertans, lead by home-grown companies such as Talisman, Canadian Natural, and EnCana. Alberta is the bread and butter of most of these companies, and a rise in royalties impacts them significantly. Simply put, for many companies there is nowhere else to go, and higher royalties will be their death knell. Companies with assets outside Alberta will shift their investment strategies taking money away from Albertans. I note that most international basins have no relationship to the reality of the situation in Alberta, with our low-rate wells and shrinking reserves, low gas prices and costs which remain stubbornly high have contributed to an industry slowdown which started in 2006 and continues to gain steam today. Reports coming from industry in press releases and financial reports show the service sector is currently at a five year low in activity, layoffs are picking up their pace, and a growing percentage of the small and mid-sized oil and gas companies have been reporting losses this year. Coupled with anticipated royalty increases, in 2008 Alberta might be expected to enter a recession. The release of this Report has had the effect of polarizing opinion in Alberta, setting a grim divide between industry and non-industry groups who vilify industry and believe this is going to mean wealth transference into their pockets. Indicative of this is the fact that a high percentage of Albertans, when polled, supported the Report’s conclusions. Not surprisingly, when you dangle money in front of people, they tend to support any position which is might be in their self-interest. Unfortunately, most have no idea what the ramifications to the economy and their own financial position will be. It is apparent that the authors of “Our Fair Share”, (the title of which indicates the ultimate intent of the Report, as explained following), intend to effect a classic socialist large-scale transfer of wealth in the form of higher taxation and royalty levies from the economic engine of Alberta, and for what purpose? Was not a major lesson of the 20th century that people and economies prosper when taxes and government levies are low? At what point does the concept that wealth can only be earned through work become subservient to messages of free money and services? In conclusion, I reiterate my opposition to the implementation of the recommendations of “Our Fair Share”, either as a whole or in substantial measure. Thank you for your time. [Information Removed] |
| RRE6187 |
Mr. Stelmach. After reviewing the royalty review report, below are summarized my thoughts and concerns: 1. There were no oil industry representatives with actual exploration/development experience on the panel, Forestry and academics, thus no one to promote practical solutions. 2. With the high prices in the last few years higher royalties would have been inevitable, but the levels proposed for conventional production are considered way too high. 3. The proposed changes to the oil sand royalties are surprising in how moderate they are. Even the proposed surcharge for oil prices greater than $40/bbl is not excessive. One point is that all bitumen oil wells producing conventionally would revert from the 1% royalty to the same royalty as other conventional oil wells. This would equalize the playing field for all bitumen oil wells (some pay regular royalties some only pay the 1%) which is considered fair. 4. The proposed oil royalty changes at least still give a break for low rate oil wells. Even at $100/bbl a 30 bopd oil well would pay a 35% royalty which while high is not outrageous. The main concern is that reserve targets are not as large as they once were. Thus the future drilling for oil with todays costs could be difficult. 5. The proposed gas royalty changes are destructive. With the amount of low productivity shallow gas in this province, this royalty structure would ensure that a number of proposed projects never get off the ground, in particular with the significant cost increases since 2005 (capital base for this study - projects costs have almost doubled since 2005). Paying a 15% royalty for a 100 mcf/d gas well at $8.00/mcf and a 25% royalty at $12.00/mcf, effectively means that any price increase goes to the Provincial coffers and does not promote activity. These proposed changes do not make sense in view of the lack of activity in the gas sector. 6. On the political side, the main concern is that every dollar that Alberta takes as royalty is a $1.00 less that could be included in the Federal Government's tax base. This situation first arose in 1974 when Alberta initially increased its royalties from the 16.667% level and as a result royalties were not deductible at the Federal level. This was compensated to a degree by the resource allowance later, but increasing Alberta royalties could bring this back to the forefront. Right now there is a sympathetic Prime Minister in power but with Alberta's existing good economic strength, if the royalties are increased, a battle could ensue between Alberta and Ottawa (the Feds supported by Quebec and Ontario) if a Liberal Prime Minister gets back in power (historically this could just be a matter of time). 7. On the industry side, it is felt that this would result in a further downturn of activity in Alberta. This could translate into lay-offs and thus a lower provincial income tax base (which is the second largest source of revenue for the Province after royalties). Thus the province could be trading dollars and the potential gain may not be a great as they forecast. It is felt that industry activity is the key to economic success for the province.Significantly higher royalties will only discourage activity and have companies consider other areas to explore. 8. One item not covered in the report is industry re-investment. If the excess cash flow due to high prices is being re-invested in new projects in Alberta then the Province is still a winner with existing royalty levels. However, if the majority of the cash flow is being diverted out of the Province then an increase in royalties would be more than justified. In summary, in a high price environment, subject to industry re-investment figures, higher royalties are definitely justificable, however, it is felt a maximum level of 50% is too high and that the 40% to 45% level (same as Saskatchewan) could be more sustainable with the provision that allowances be made, via low royalties for low rate gas wells (ie below 100 mcf/d) at any price in view of the significant increase in capital costs during the last two years. Thank you. Yours, very truly, [Information Removed] |
| RRE6188 |
Having worked in the oil industry for the last 20 years, I have lived through the good times as well as the bad. I have seen the effects of low oil and/or gas prices and how it affects the economy. Despite what the media reports or public perception, the oil industry isn't as rosy as it is made out to be. The cost of doing business has increased dramatically in the last few years, and although a shake up wouldn't be a bad thing necessarily, I don't think the gov't should be initiating it by going after the cash grab through royalty hikes. Many small towns see far more benefit from having oil companies doing business there than they would ever see from the government meting out tax dollars to them. The people of Alberta are getting their fair share from mineral royalties, and if they don't believe they are, it is because the government is choosing to spend the billions it has already collected, on other things. |
| RRE6189 |
I do not support the Royalty Review Panel's proposed changes. It is clearly evident that the Panel was disadvantaged by: a) inaccurate operating cost assumptions; b) unrealized present and future capital input costs; c) gathering mere superficial information from producers, as a direct result of inadequate information seeking; to fully understand the real economics of the industry producers who are more dilligent than ever today with extracting the ever decreasing, and increasingly challenged, remaining reserves of oil and gas in Alberta. There's no room for a pause in activity in Alberta, or any other province it ripples to. No amount of development input will ever bring the economics back to where we are today. Shortages in Oil and Gas end products will not meet the demands, and every related and non-related Oil & Gas person in this country will pay even more as a consumer of these products. Perhaps if the 80 some percent of the folks who are in favor of the proposals from the Royalty Review Panel understood this, they would not be so eager to support it. Please draw your attention to the true economic viability of our great Alberta province and it's people. Ensure we get it right the first time, with the right data, in an open review, for our defined futures. Our futures are in your hands. Don't let us down! It's only too late...after. It's never too late before. Sincerely, [Information Removed] |
| RRE6190 |
I am an Albertan who works as an employee in the oil and gas sector. I am seriously concerned about the impact of raising royalties as outlined in Royalty Review Report. Reading how oil companies may suspend or cancelled their drilling programs causes concern that there will be reduced work for many in the industry, creating potential layoffs which could eventually affect the local economy. I agree that additional dollars should be retained for Albertans and their future however without a balance it could lead to an oil industry recession. Is it fair to imply that the only time Alberta can get their fair share is at the wellhead? The money I earn is taxed at the energy company level, is taxed at my company, is taxed as income when I get it, and pays many taxes, levies and user fees when it leaves my hands. With the Province running a surplus why would you risk all these other revenue streams to get an additional cut of royalties? What would the value of the tax loss be if the oil companies quit spending their money on capital projects in Alberta? This number should be determined before proceeding. It goes without saying that a halt on capital project spending would have a massive effect on the people of Alberta. The generalization that these profits go to a few rich people to make them richer is misleading. I have personally invested in oil and gas company shares for my retirement. Higher taxes and royalties mean not only do I earn less, but the money that I have invested for my retirement substantially decreases. Please consider that the companies that are successful in the patch are able to employ many Albertans, and those people pay taxes and contribute to the local economy. |
| RRE6191 |
I have several concerns with this review. Firstly on page 4 paragraph one, it states : Given the time constraints relative to the enormity of our mandate." this to me means that the panel has not had the time to complete this job accurately. This is a very large flaw and this report should be tossed out. Secondly I am concerned that if this goes though, the energy sector will reduce there investment within Alberta as the cost involved to work here will increase. If this occurs, many people including myself could lose our jobs. I am not a new resident of Alberta, I was born in Calgary, raised in Calgary and plan to raise my family in Alberta. I have a mortgage and expenses to pay, should I lose my job due to cutbacks at my work, then our Provicial economy will lose my investments and we will all lose. I think that the trickle down effect was overlooked in the report also. Many people who own small business such as an eating establishment do not get money directly from Oil and Gas production, but they do get money from me eating out. This would also be gone should I lose my job. I think that our government that we elected should think obout me as an Albertian, not me as a person working for an Oil and Gas Company. |
| RRE6192 |
The companies that risked their money and time in development, the people employed byb these companies and the shareholders that invested in those companies are the only people that Mr. Stelmach should be listening to. They are the only people that put themselves at risk and now are the only people that are going to be penalized if this unfair tax proposal is accepted by Mr. Stelmach. The result would be a disaster to all albertans that have supported oil development in Alberta. They are the ones that invested in Albertas oil development to make it what it is today. Mr. Kline was a premier that fully realized that the companies and the people that invested their hard earned money in alberta oil sands development made this province prosper. They "SHOULD NOT BE PENALIZED" for making alberta what it is today. The people that would like to see this unfair tax adopted are the people that never risked any of their money in oil sands investments and now they feel that they should be entitled to royalties that thet did absoutley nothing to earn at the expense of the companies and people that took the risks and did the investing. Mr. Stalmach should take the time to contact all people involved in the oil industry in Alberta, the companies, the people employed by the oil industry and the large number of shareholders and listen to their opinions before he makes the decision to penalize the very people that made alberta what it is today. |
| RRE6193 |
“Big oil” is not making threats as touted by the media. They are facing the fact that should the royalty rates change they will not be able to do business in a high-cost basin such as Alberta. Their message is clear that the review panel did not use current information to base their recommendations on thus leading to seriously flawed conclusions. I strongly encourage you to oppose these recommendations. The Alberta government needs to heed the concerns brought forth regarding the royalty recommendations and evaluate how any changes to the current royalty regime will affect all Albertan’s. |
| RRE6194 |
I am writing with respect to the Alberta Royalty Review Panel Report. First off I would like to thank your party and the Premier the Honorable Premier Stelmach for pressing forward with the Alberta Royalty Review. It has been long overdue. I work within the Oil and Gas industry in Alberta and have for my entire career. I have taken great interest in the Alberta Royalty Review Panel’s Report. Speaking as a resident of the Province of Alberta and a father with two sons who will grow up and also be productive members of our province, I want to urge the government to ADOPT ALL of the recommendations made by the panel. The report indicates that Alberta has fallen behind in the structure of royalty collection with the rest of the world. While I do not advocate burdening the Oil and Gas business sector with excessive costs, I do believe that Alberta needs to ensure that the take of the revenue from Alberta’s resources is on par with other jurisdictions world wide, as these resources are sold into the global market. I believe that these changes need to be made to ensure that the Alberta Government collects revenues required to provide for the future Albertans (my sons and their children) the benefit of living in a sustainable province once the non renewable and finite resources have been extracted from Alberta’s rich lands. The Oil and Gas business sector has foretold of grave economic consequences for Alberta and Albertans should the recommendations from the Royalty Review be implemented. I believe there well may be some short term impact to the oil and gas sector of the economy as out of economic necessity or spite, some companies may take investment dollars elsewhere, but it will be short lived. The bottom line is hydrocarbon resources world wide are finite and Alberta continues to maintain an advantage to doing business in this province from its progressive tax structure, wealth of experienced and knowledgeable people and lastly, the resource remains in the ground here. Back in the 1970’s when the Honorable Premier Lougheed took office, he made the courageous step of immediately increasing royalties to ensure the revenue stream to Albertans was equitable and in line with the rest of the world for their resources. Since that time there has not been any work done to ensure that the revenue taken for the resources has remained competitive with the rest of the world until now. Please for the sake of our future, make the difficult decisions that need to be made to ensure that after the resource is gone, Alberta will continue to be the vibrant and great province it currently is for generations to come. Thank you for your time in listening to my views. Regards [Information Removed] |
| RRE6195 |
It seems that our newly elected Preimer has also decided to inadvertently join the side of the opposition given the stance he's taken on the Royalty Review. Gee Mr. Stelmach, why don't you just hang a "FOR SALE" sign on the province you are supposedly representing?? If for one minute the present government decided to return some of the Royalities to the middle and lower class voters perhaps you could at least catch their attention on this matter. But we all know that is not the real reasoning behind this debate. Debate, maybe I use the term with tongue-in-cheek because most of us are wiser than that. Once the elected officials decide on a new way to line their pockets and coffers, there really is no debate at all, is there? What you are doing to this province is nothing but a sham and a disgrace for the Conserative Government. If I had wanted this kind of backstabbing party representing me I could have voted Liberal because we all know how true to their word they are. Hahaha! Your decision on this matter could and will throw this province into an economic tailspin that it may not recover from. While you are gouging the industry that has built and employed such a large portion of the province, you are are about to throw away the reasonably "DEBT-FREE" status that we have (thanks to you predecessor) and instead throw the present and future residents (voters) of this province into ECONOMIC DISASTER!! Think about this your children and grandchildren are included in the equation, though they probably won't feel the financial desparity that the average Albertan will because they aren't part of the average, working joe, class that is once again being [Expletive] over by the very government they voted for. HOW DARE YOU!!!! |
| RRE6196 |
I feel the recommendations in this report will negativelly impact the future oilsands development in Canada and Alberta's economey. |
| RRE6197 |
Mr. Knight; What effeots have you made thus far to collect on the reported 2 BILLION DOLLARS in uncollected royalty payments? Have invoices been submitted to the companys owing the royalties? If not, Why? At what point in your tenure as Energy Minister did you become aware of the unpaid Royalties owed to Albertans? Are you accountable for this lack of due dilligence in your department? You can send your response to the noted email address. Waiting Patiently [Information Removed] |
| RRE6198 |
The royalty tax was set up to encourage development of the oilsands, when very few were interested in trying to do so. The process was expensive and the area remote. Now that the development is well underway -- the process is less expensive in relation to return for a barrel of oil. The pioneers needed the break of the roylaty agreemnt -- that is now well past and we need to ensure Albertans are receiving more from this investment and that infrastructure keeps pace with development. Oil compisnies investing less here is not necessarily a bad thing -- if it is being subsidized by Albertans through low royalty taxes, overheated housing costs and lack of infrastructure investment. It is very telling that the names you don't hear complaining about paying more are the original pioneers -- Syncrude and Suncor |
| RRE6199 |
I find it very disappointing that the alberta government has given the oil companies such a large break in the amount of royalty collected or charged. WE charge way less than many jurisdictions around the world and we should not cower from the scare tactics used by large oil companies like [Information Removed] . The record profits and high oil prices mean that our resource will be required for along time and it is rediculuos to think that we would continue to give it away. Even if the oilpatch were to slow down it could be a good thing allowing us to reevaluate the speed and deveopment of the oil resources. Call the oil companies bluff and require them to pay their fair share as they do in other parts of the world. Why should they be allowed to operate in a false economy and under a tax subsidy? The Canadian wheat farmer has been told for years they must compete against American and European subsidised wheat prices without similar subsidies in Canada . Why do we do this For OIL? |
| RRE6200 |
I am sick and tired of hearing the oil companies whin and crying. Tell them the people of Alberta want their fair share which could be used for roads that they wreck with their heavy loads. |
| RRE6201 |
Albertan's deserve their fair share. I just hope that 2 billion is spent wisely (ie. education, research, health care, etc.). Speaking of fair share, when are the Lubicon Cree going to get theirs? [Information Removed] |
| RRE6202 |
I strongly support the Royalty Review Panel's recommendations. I believe that they should be phased in over the next three years. I work as an engineer in the oil industry and have witnessed the record profits that my employer and similar organizations are reaping. For these companies to cry "poverty" and threaten to reduce their investment in Alberta emphasizes their self-centred focus. I am truly disturbed by Encana and their "blackmail" focused rhetoric. Encana was created primarily out of Alberta Energy, which was initially owned by Albertans until it was privatized. Encana may well decrease their investment in Alberta, but that is because it is primarily a natural gas company and it has nothing to do with the royalty review. Where would they find the oil deposits that are available in Alberta? Encana is also one of the companies which is planning to ship bitumen and jobs to the U.S. They recently had record profits of close to 6.5 billion dollars and are claiming that increased royalties would devestate them?. And they call themselves Albertans and are interested in the well-being of Alberta?!! How does that work? They are not the least bit interested in the economic future of Alberta. Their allegiance is to their bank accounts and stock options, which are never enough. Mr. [Information Removed]and his counterparts must find it difficult to survive on $3 million+ per year. Who is running this province, the oil industry, or the people who are represented by the provincial government? [Information Removed] Calgary, AB. |
| RRE6203 |
Well first off I would like to complain at how the Royalty Review was processed. The data from this Review is skewed on the part of Albertans. What I mean by this is that people who do work for Oil companies and or are affiliated with Oil companies in anyway were not polled and taken into consideration for the Royalty Review. Why does this make a differance, quite simple really, the majority of the people working in Alberta work for, or are affiliated with the oil industry in some way, therefore the idea that 85% of the people of Alberta would like the Royalties raised is not a valid number, not everyone was polled for a true census. Other then that lets look at the simple truth of the matter. If the Royalties are raised we all know that oil companies will pull out of Alberta, and why wouldn't they? They can get oil from many other places in this world and not have half the headaches they are going to be getting here in Alberta. So what will happen if they pull out of Alberta? Simple again, say goodbye to our economy, Say hello to Bankruptcy's comming out of the wood work. Why is this because if the oil companies pull out all the support industries will now have to reduce sizes to keep working or close up compleately. People will be out of jobs and won't be able to pay for those nice toys they have purchased in the last 5 years. How will this affect me, one guy among thousands. I know the company I am working for will lay off probably 80% of there staff and that would include me in order to stay a company in Alberta. What would happen to me? I would probably have to declare Bankruptcy because I would not be able to pay for my car, and my apartment. No I don't work in the field I am a simple office employee, and that is how I would be affected. Anyways, I think this whole report and review is bogus and should be ignored. Leave it where it is or take a small step, raise the Royalties 1% per year over the next 10 years then relook at the issue. I am sure Oil Companies would be willing to accept that increase. Thanks. |
| RRE6204 |
I am against this because this will crash our ecomony and all the oil companies will pull out. I think that the government gets enough money from every citizen when we pay our taxes. This will only cause our unemployment rate to jump and just think of when that money from those peoples taxes isn't there and neither are the oil and gas companies. I believe that either way you look at it this province and all albertians will be the ones paying the price for your greediness. |
| RRE6205 |
Any increase in royalty revenue needs to be put aside and invested for future generations. |
| RRE6206 |
Is the Hunter Report online so that we can get it. I am a "Canadian" (also a US citizen, living in Washington DC. |
| RRE6207 |
Perhaps it is time to review and update the Royalty tax structure, however don't impose it in such a large bite. Why can't the updated tax be levied over a period of 15-20 years? I've worked in the oil industry since 1978 and was a young man with a family and all the financial responibilities that go with it, I struggled because of the National Energy Program as did thousands of people in this province. I'm afraid we'll re-live that. I know what you're thinking-- but please don't feed me with "the province is more diversified now" bunk. Ed Stelmach is a farmer who has NO IDEA about the oil industry in this province and I believe this NDP like government has an agenda to negativly affect Alberta's oilpatch. You DON'T have my vote Mr. Stelmach!! |
| RRE6208 |
I am a management consultant to the Oil and Gas industry. As a consultant, my company would be on the front line for any reductions in expenditure that these energy companies would face in Alberta. I am against this review, primarily because it was conducted without sufficient involvement from the industry, and therefore is limited in its potential success. If implemented, I believe it will result in reduced expenditures by my clients in Alberta, which will direct my business, my family, the taxes I pay, etc. I am against these revisions. |
| RRE6209 |
Royalty Review Feedback Share our thoughts? Interesting, I thought that was precisely what the Royalty Review Panel, appointed by your government, was meant to do? Which, by the way, included representatives from all sectors, including the oil industry. Why are other nations like Norway and Venezuala (and even American States - Wyoming, Texas, Colorado, etc.) still experiencing oil patch development even though they are charging higher royalties than Alberta? Because it is still economical to do so. There is much money to be made in the Alberta oilpatch, even with higher royalty rates. Increased economic rent would simply mean that oil development is spread out over a longer period of time and that we Albertans would be able to retain more of our rightful income from the liquidation of our natural resources. I am a teacher and as such, I am more concerned about the long term economic potential and stability that comes with controlled development than I am about explosive growth now. Alberta First! Sincerely, [Information Removed] |
| RRE6210 |
The proposed increase of almost 100% on taxes the government collects from freehold owned oil & gas properties is discrimnatory, unfair and would seem to be like a randomly applied tax. Why should an owner of freehold oil & gas property pay anymore taxes on his income than say an office worker, or an owner of real property who earns the same income? A tax levy of this nature cannot be simply snuck through as a side note in the "Our Fair Share" royalty report. As it is the Freehold mineral tax should be substantially reduced or eliminated. What services besides roads do freehold owners get from this tax levy? |
| RRE6211 |
As ordinary Albertan I am greatly concerned about changes to royalties structure. I have absolutely no ties to oil industry nor I have an oil related business,but we all depend on oil economy in Alberta! We have here one of the best economies on the planet. Lets keep it this way! I vote for NO CHANGES IN ROYALTIES! Do not risk a major slowdown! |
| RRE6212 |
if its not broke dont fix it, if you go through with this plan, BC and Sask will laugh in our faces. to of had so much and to of thrown it away would be a shame. If Eddie gets this to pass, I am out of thye party and going pink. |
| RRE6213 |
I believe the Gov't should not change the current Royalty system.Sufficient royalties will be collected as oil sands projects reach payout under the existing provisions. Raising royalties will discourage investment in oil sands projects which will have an adverse impact on the Alberta economy over the long term. |
| RRE6214 |
From your report on the royalty structure, I can only find that it is grade benefit to the oil company's Like to remind you that the Albertans share of the royalty from 1975 to 2010 would be $70 billion and that be just for Oil Sands Royalty. Also due to lack of infrastructure Albertans will also be indebt for a futher $130 Billion by 2010. Conceder that the town of Fort Mc Murray alone needs $5 Billion over the next 5 years just to keep up with their infastructure. Keeping in mined that Royalty of our conventional oil and gas is being used for the infrastructure due to expansion , of the Oil Sands. I there for classify the Royalty incentive program as the biggest scam and legal robbery in history of man kind. And when Albertans realize in the near future how they have been robbed, the politician of today would have to seek Asylum in the USA Their is nothing wrong with some incentive for the Oil Sands projects So when A Company wanting to build a plant for 100.000 barrels a day, no problem, do not pay Royalty untill the plant is paid for, but when it seeks a expansion up to 200.000 barrels a day, I want to see my Royalty for the first 100.000 barrels a day to continue. Since I as a Albertan am not getting the Royalty and in fact am paying for the plant, I would insist that only Canadian labor and material is being used. Further more Oil Company's should not be allowed to write of this Royalty Expense on their Federal tax taking the Federal government for a other 2 Billion a year Thank You [Information Removed] |
| RRE6215 |
Plain and Simple If you tax more you WILL lose Investors in the province, your economy will suffer and most money will move next door to Saskatchewan., |
| RRE6216 |
The Alberta Government is already receiving enough money through the royalty system, why fix something that doesn't need fixing. If the changes are made it could send the industry into a slow down, as an Albertian who relies heavily on the oil & gas industry, please do not change the system - I think it will have a very bad effect on the economy. |
| RRE6217 |
We are grade 9 students and we want to talk to you about the roylalty review. we think that since the oil companys are taking the oil out of our province, we should be getting something back, or lower prices. |
| RRE6218 |
I currently work within the oil/gas industry and find the panels report very disturbing. I interact daily with the service sector and have seen significant cost increases since 2005. It would only seem prudent to establish a joint panel to review the findings and give albertans a fair assesment. . |
| RRE6219 |
Hello : In the addendum to the data appendix, a formula for calculating the royalty rate of a low rate conventional oil well is provided: ADP<=3.5m3/d, rq%=((ADP-3.5)*.08)*100. This formula calculates the rq% rate for ADP <=3.5m3/d rq% as negative or zero. My reading of the report suggests that for a rate <=3.5m3/d, the royalty rate is 8%. Could you please tell me which is correct? thank you [Information Removed] |
| RRE6220 |
I'm not in favour, I just got out of a meeting and have been told that if this goes ahead, becaue of the increased royalties, our budget will be cut by 30%. I have been told that I will loe my job Jan 1st, please help me keep my job, I have a family to support. |
| RRE6221 |
It appears to me that no atter what Mr. Stelmach's government does, the damage has already been done. Oil & Gas companies generally have share holders these share holders are if not promised a return on their investment, they are shown plans that they agree to. Long Range Plans. The Managers of these oil companies are seriously obligated to reach the goal$ of these plans. These are long range plans. So when our government even hints at a change in the Royalties this throws a serious monkey wrench into in two ways: The bottom line in the long term planning and #2 as important, they get skiddish."Will the Alberta government change it's position in the future?" But here's my suggestion. You need to raise the Royalties' %. How Much? You decide. I'm projecting 6%. But do it in 4 years and incrementally after that. Good luck |
| RRE6222 |
I don't get invloved with protests and politics all I know is real life. I have worked in the oil field for the last 15 years and that is all I have done, and it has provided very well for my family as well as many other people that I know. The truth of this is my family as many others in Alberta are living pay check to pay check and many have not had real work for the last 6 months. I have been living off my savings and that is going to run out soon so if the work does not pick up I hope our government has a good unemployment plan waitting to be used. If in doubt do a study on what most oilfield hands are making and how long they have been sitting and then decide what should be done to help Alberta. I have done 5 jobs in 6 months and I know many others like me. |
| RRE6223 |
I am a geologist, and support the royalty review report. In the oil and gas industry, the big company is too easy to make money from current royalty level, so the cost management level is too low, wasted too much money and resources of Albertan's. They are no intereting for technology innovation, geology research, just simply drilling a hole to take oil and gas out, and made the industry cost too high, and Albertan living cost high too. But, after the royalty increase, the government should return this money back to Albertan by reduction our income tax, cancel APEGGA, this organization is not usful for Alberta, just show people how much money made by APEGGA members, the CSPG is more useful than APEGGA. Thanks |
| RRE6224 |
Raise royalties NOW! |
| RRE6225 |
Please do not kill our economy..........Alberta is strong because of oil and GAs industry |
| RRE6226 |
So far, the Alberta government has been spineless in its need to collect greater royalties on gas and oil, and has been letting other countries, particularly the US, bully to their heart's content. We are the laughing stock of other countries!!! We need a strong leader who is not afraid of taking action and does not cowar amid bluffs made by oil companies and other investors. We have been taken advantage of far too long. We have the resources, let's take control and act in the best interest of Albertans and Canadians now before it is too late! Be reminded that these are non-renewable resources, not something investors can just find and get anywhere in the world! We have the ultimate control and dictatorship in the end. Let's take advantage of it now and end the pillage and rape of our pricelss resources and our country! Calgary, Alberta CANADA |
| RRE6227 |
My and many others' livelihood relies on Oil and Gas industry! I don't want you to create another 80's bust but I also don't want you to sit on your behinds and do nothing. Please ensure a balanced view and promise me that additional royalties collected will be used to better Albertan's quality of life for all Albertans particularly the marginalized and weak!!! Don't stash the cash like Klein did - use it to improve Alberta for our children!!! |
| RRE6228 |
I believe that the report is the MINIMALLY acceptable level of royalty rates we should accept. |
| RRE6229 |
As both an Alberta resident and employee of one of the major independent exploration and production companies active in Alberta I am very concerned by this report. Most importantly, I am concerned by the seriously flawed data many of the reccomndations were based on. If I were to try and pitch projects to my engineering managers based on outdated 2005 data - the same data that the royalty review report is based on - I would lose my job on the basis of incompetence. Inflation over the last several years has seriously affected the rate of return on new investments. Based on CURRENT costs, price forecasts, and the proposed royalty recommendations many gas projects are simply uneconomic and would not go forward. This means the average Albertan will be worse-off due to a stifled economy. There are positive changes to be made to the royalty structure, but they need to be made based on current, actual data that reflect the true cost of doing business in Alberta. |
| RRE6230 |
It is about time the issue of royalties was looked at. I agree with the report that the province's share has to increase. Signed a longtime tory supporter on the fence. |
| RRE6231 |
oh yes charge more , have not worked in 5 months , because they say people our gouging the oil companys , record profits , they will just shut it down , do it , sick of paying taxes , lets just shut down the whole provience , sick of the rich getting richer , ps worked in the oil patch for [Information Removed] years , tell thank you to MR klien , for work that build this provience , and the rebate chegue that showed that we do contribute to the working people of alberta , no one was out their helping me start wells when it was 50 below zero . born and raised in alberta , charge more too give to the fedral goverment and i hope we can all get together and shut down the whole provience so that we dont pay any more taxes , ps , let the [Information Removed] , i will rest my boots .[Information Removed] |
| RRE6232 |
I repeat, from Premier Stelmach's recent speech in Toronto. THE NATURAL RESOURCES OF ALBERTA BELONG TO ALL OF THE PEOPLE OF ALBERTA !!!!, not just for the benefit of the Oil Companies and their representatives!!!!!!! Oh yes, they put up a lot of money to develope the resorces- but boy oh boy have they ever received a handsome return on their investment. The owners also need to benefit to the same extent- 100% in favour of implementing the recommendations in the Royalty Re view Report -[Information Removed]( a Senior who had made a contribution to Alberta) |
| RRE6233 |
Having perused the executive summary of the Royalties Review I would like to say that I strongly support its implementation. We as Albertans are the owners of large quantities of a finite and very valuable resource and should be compensated accordingly. Even though there may be some short-term decrease in investment as a result of higher royalties, we will still be very competitive globally given the abundance of our resources, our relatively high quality infrastructure and our political stability (as opposed to the middle-east for example). I find it hard to believe that oil and gas prices will not remain high over the coming decade, and as such it will still be very profitable for energy companies to operate in our province. The extra government revenue generated by the royalties could be used to stimulate other areas of the economy including research into alternative energy sources, health care, and education. These investments would insure a high quality of life for Albertans long after fossil fuels have declined in importance as a global energy source. |
| RRE6234 |
Ed, I am from Grande prairie. I work for an Oil and Gas company (as most of this town does) and I have to say, I am extremely disappointed in this government at this time. I know you feel you are doing what is right for most Albertans, but in fact if you proceed with additional royalty from this sector, you are going to kill the economy of the whole province, not just the Oil and Gas sector. This province has a lot of resources, but by far the biggest input to this province is royalties. If you reduce the Oil companies income, it will in turn reduce their spending causing a ripple effect throughout every industry in the province. Sometimes I wonder if this might be a good thing, considering how hard we are all working to keep afloat after the federal changes to trust companies and other factors that have impacted our industry. However, we did not work this hard just to see it all go down the drain on a poorly thought out idea. I am asking you to seriously consider the impact on the whole province before you make a very serious political and economic mistake. Your thoughts, ideas and response to this e-mail would be gladly received. |
| RRE6235 |
I would like to voice my concerns regarding the Royalty Review. It's my belief that if all that has been presented is acted upon, Alberta as a whole will suffer greatly. I believe that if the royalty percentages go up as suggested and the incentives are eliminated then the oil and gas activity in Alberta will be stalled. If industry activity decreases I do not see how these royalty changes will generate future dollars for the Province of Alberta. It is my understanding that the Royalty Review suggest that 2 billion dollars is available if the Government if nothing changes. I don't see that as the case. The Alberta Oil and Gas industry as we know it today would change significantly and all Albertans would be impacted. It is my opinion that the Government of Alberta take it's time and more importantly listen to what industry is saying. Together I am sure that they can find a middle ground. Regards [Information Removed] |
| RRE6236 |
As a proud Albertan and a Canadian citizen I am strongly opposed to the proposed changes to the current royalty rate structure. Investment dollars are attracted to this province for two reasons; a) our significant resource base b) predictable government policy. I feel that the latter may be depleting much like the former. Although I commend the government for following through on its election promise to conduct a royalty review, the changes are simply too drastic. The negative ramifications of the proposed changes extend beyond the oil and gas community within Alberta. As capital spending within the province is reduced, less tax dollars will be earned by Albertian’s, thus, reducing the tax base of the federal government. Which then translates to smaller equalization payments sent to ‘have not’ provinces. Unlike many issues at the provincial level, which are best described as a zero-sum-game between the provincial and federal levels, with this issue all Canadians stand to gain/lose together. I trust that the conservative government that was widely elected to promote a positive business environment in this province will make the right decision and distance itself from this proposal. [Information Removed] |
| RRE6237 |
While I think that an adjustment of the Royalty rate is needed, I believe that trying to compensate for perceived losses is harmful and counterproductive. Bring the rates up, but, only increase to a level that would keep Alberta and Albertans working. Anybody including big business will balk at large tax increases. A balance has to be found. [Information Removed] |
| RRE6238 |
These people work long, hard hours for the product we all benefit from. The government in turn gets their share through the taxes they put on the product and through the consumers buying. If you want a has been province go ahead and implement your new review. |
| RRE6239 |
I am concerned that the increased royalties recommended by the report will cause reduced development of Alberta's resources, so that the increased royalties to be received will not be realized. It seems to me that oil sands development is extremely expensive with a long time before investment is recovered, so I'm concerned that in a short-sighted effort to get more money from the developers that Alberta's long-term royalty revenue will decline. Also, I am skeptical that I will see any benefit from my increased "fair share" should increased royalties happen as the report contemplates, since the government continues to operate with significant surpluses without significant return of these surpluses to individual tax payers (either through rebate cheques or reduced tax rates). I am aware of the need for increased infrastructure spending, increasing healthcare costs, etc., but if the premise of the royalty review is to give Albertans their "fair share" of resource revenues, then I think a portion of these royalties should be returned to Albertans so they can choose how to use these funds rather than government deciding. |
| RRE6240 |
Dear Sir/Madam, Would you kindly advise what has been done with the 14.5 billion that the government has collected in oil & gas land sales? Will the people of Alberta be informed? If the royalty proposal is accepted in its current form and the proposed amount of royalties collected, will the price of land go down on the same scale as the royalties go up? Will the price of land be set, so "bidding wars" do not inflate the actual value and will bidders names be pulled from a sort of lottery lotter win type set up to control land prices that are not sold at a "fair market value" ? Have the land prices fetched in Canada been compared to global pricing and are they in line? Thank you, I look forward to your reply. Best Regards, [Information Removed] |
| RRE6241 |
Dear Sir: I believe that this report is fair and that for too long the oil and gas companies have had a deal that has not been in the best interest for average Albertans. It is now time to tell oil & gas companies that Albertans would like to have a more equitable share in their resources. Please implement the recommendations as set forth by the review panel and at least increase the revenue income portion for Albertans by at least 20% if not even more!!! Thank You!! Kindest regards, [Information Removed] PS While you are at it ...increase also the Landowners Share for lease fees. This way everyone will be a winner and not just oil and gas companies!!! |
| RRE6242 |
The Royalty Review Panel's report was logical, sensible and I feel it should be followed to the letter. As oil is a non-renewable resource, it is important to think of the long term consequences for future generations. The oil patch will never like an increase but as we are the safest place to invest money in the world and the panel's recommendations are not extravagant, they will stay. Please adopt the royalty recommendations--thank you |
| RRE6243 |
The Alberta economy is doing very well and future oil and gas development is planned well into the next 10 years. This means our economy will continue to do well if all things stay the same. The biggest mistake the government can make is to start to change the royalty process. This will certinly cause the oil company's to reduce investment in Alberta and thus our economy will suffer and unemployment will grow. PLEASE DO NOT CHANGE THE ROYALTY STRUCTURE. |
| RRE6244 |
Dear Ed Stelmach, Alberta relies on a vibrant energy sector for its economic well-being. As an Albertan, I am concerned about the recommendations recently put forward by the Royalty Review Panel that argue that Albertans are not receiving their fair share. The proposed changes would have significant immediate and long-term economic impacts across the province. If energy projects are impacted, there will be huge lay-offs in the industry. There will be less exploration and development, fewer wells drilled and fewer pipelines constructed. In turn, there will be fewer hotel bookings, retail and vehicle purchases and restaurant meals. By implementing these proposed changes we would see a result like the “National Energy Program” in 1981. A growing economy hitting rock bottom. The Panel’s recommendations don’t appear to take this into account. We need a wiser decision for Albertans and their energy sector. We need to understand the true economic cost to Albertans before the recommendations are accepted. I urge you to examine the Panel’s report closely to consider the impact before accepting the recommendations as they stand. Sincerely, [Information Removed] |
| RRE6245 |
I feel that the panel's report was incomplete. Instead of arrogance in telling the government to accept their findings as is, they should be attempting to find a common ground that is fair to both the average Albertan and the oil and gas industry. I don't think it necessary to kill the goose that laid the golden egg because Alberta's Heritage Fund did not reach it's massive surplus due to farming revenues. Hopefully cooler heads will prevail and a more realistic and fair approach to royalty revenues will be adopted. There are many junior energy companies and the service companies they utilize that will be adversely affected by such a dramatic increase in royalties. Our province is still short of hospitals, doctors, nurses, schools, teachers, etc. We still have Albertans who cannot afford housing and children still going to school hungry - where is their Alberta Advantage and what good has our existing surplus done them? Why do you want more money when you're not prepared to provide for the people of Alberta with the funds you have? |
| RRE6246 |
As a new resident of Alberta, and after learning the current issues surrounding the Oil royalty system in Alberta, I feel that that these proposed changes would basically undo any reason I had of moving to this province. Alberta is the place to be, it is a gravity well of investment. The recommended changes to the royalty system would likely kill the golden egg that is driving the Alberta economy. |
| RRE6247 |
I do not think changing royalties are in the best interests of albertans. There will be an enormous cost involved in implementing any change that will far outweigh any benefits derived from increased royalites |
| RRE6248 |
Modifying the royalties in a BAD DECISION. It destroys the economics for the oil and gas industry and makes Alberta look like a banana republic. Pls leave royalties the way they are. and invest in some infrastructure too. |
| RRE6249 |
If Stelmach goes through with taking billions of dollars from the oil companies he going to be [Expletive] all of us work in Alberta. We won't have any jobs and will have to move else where. I personally had to quit going to school for my b. of education this year and get a full time job because my husband already does not have enough work for him to pay the morage and bills. It will only get worse when all the oil companies stop work here. We will have to move away and leave our family to find work else where. And I know we are not the only ones going through this, already we have had friends move away because they dont have enogh work. Stelmach listen to the oil companies. |
| RRE6250 |
Please think twice before implementing the recommendations of the royalty review program. Although I recognize that there is room to collect higher royalties, the program as recommended will severely damage the economy, and will put many independent contractors out of business not to mention reducing drilling and mining in Alberta. No business in their right mind would invest in a project where they only see a small profit in the investment after 5-8 years, especially given the high risk and extremely high costs involved in drilling and mining today. I made a career change at age 43 [Information Removed], and as such was able to start working in the oil industry 2 years ago. If the royalty proposals go through as recommended, I believe that I'll be out of work and looking for a new job in another province or another country. This proposal if adopted will increase my companies royalty payments by more than 40%, not the 20% that everyone seems to believe. My company was born and raised in Alberta, owned by Albertans and more than 80% of its resources are in Alberta. That will change very quickly unless the recommendations are modified. Thank you, [Information Removed] |
| RRE6251 |
The review panel obviosly hasn`t checked industry activity over the last two years - rig utilization at 30 % and not looking any better.They use 3 year old figures to come up with a recommendation today - where did they find these clowns? I am retired, but see my investments depleting because some so called experts think government can spend our money wisly? My vote - Make a token change only! [Information Removed] |
| RRE6252 |
I can't believe [Information Removed]is threatening Alberta after we have made them what they are today. It was the taxpayers that got that company started in the first place. Premier Stelmach you have an opportunity here to listen to the people and regain public confidence. Implement the royalty review completely and don't listen to the oil lobby! People are so afraid of losing what we have here in this province. WHat do we have? Inflation, no affordable housing, more poverty! We need to slow down the pace of growth and implementing these reccomendations will do exactly that. Listen to your conscience, don't follow big oil with their billion dollar profits. IF they need to cut, how about fat salaries first, and the $100 bottles of wine at corporate parties. They live like kings while all public servants struggle to keep up with inflation. The review's final report takes into consideration everything. Implement it! |
| RRE6253 |
I am NOT in favor of the royalty review report! It does not consider all of the DOWNSIDE risks associated with the Alberta government taking away incentives for energy company investments and creation of jobs. Don't mess with success and current economic prosperity. |
| RRE6254 |
I appreciate the premiers balanced approach to the panel recommendations. The goals of the panel appear to be in the best interest of the Province, however I strongly beleive the panel is misguided in many respects and the negative impact of implimenting the report as is, would far outway any gain. This report really is about killing the goose that laid the golden egg.. I urge the permier and government to take what is good from the report and use thier judgement to increase Royallites but still keep our Province a competative , stable and free enterprise environment. |
| RRE6255 |
i have a small oilfield service business in southern Alberta & i believe the proposed royalties will crash the shallow oil business in my area. this will bankrupt myself & many other young companies. do not let this happen, the spin off to all local businesses will be devastating. [Information Removed] |
| RRE6256 |
The review panel and the people of alberta need to understand that without an attractive royaly scheme the investment dollars will go elsewhere taking the jobs and prosperity with them. Higher royalties will reduce production with a net decline in government revenue not to mention the income tax revenue lost due to reduced employment levels. |
| RRE6257 |
It is all albertans oil not any oil company oil |
| RRE6258 |
[Information Removed] and others are aggressively doing their job in obtaining the highest return for their shairholders. Until now, the Alberta Gov't has not been doing it's job in obtaining a fair share for the people of Alberta. I believe the Royalty Review is the right way to find out what our 'fair' share should be! Thank-you Ed Stalmach!! |
| RRE6259 |
My name is [Information Removed]. I work in the oil business. Like the mantra of AA. I have a serious problem. I have hit rock bottom, and I can’t turn my life around until I can make this public admission. It’s like that television commercial. “You’ve got bankers,” as this bunch of overweight balding men in suits scamper through someone’s kitchen. You’ve got oilmen. How many times do I have to watch some Hollywood drama where money-grubbing oil people are pulling the strings of twisted politicians or murdering innocent people to get their evil way? It’s like bad science fiction, where plot conundrums are resolved by some improbable technology, alien being or alternate reality. Need a really bad, plausible villain? Lacking imagination? Look to the oil business. As I have gotten older I have become less tolerant of stupid things. Stupid drivers on the way to and from work. Stupid people. Stupid people doing stupid things. Are you seeing a pattern here? The latest stupid thing to catch my attention is the “Our Fair Share” report of the Alberta Royalty Review Panel. Even the name of the report is condescending. Like Pro-Life and Anti-Abortion. Our Fair Share. It’s a loaded title. Don’t get me wrong. It’s a sensible thing to do – to take a reasoned and public re-look at Alberta’s oil industry. Everyone knows that gasoline prices are ridiculous. Oil companies are making insane profits at our expense. That they don’t deserve. The environment is a mess. It’s all money money money. And it’s got to stop. Big oil. It controls governments. It kills people. It’s bad. Evil. Call me cynical, but while I’m a big believer in democracy, I’m not a big believer in the sanctity of public opinion. There is one statement in the Fair Share Report that strikes me as absolutely correct and real. That there is a “profound danger” in using public opinion as a basis for redesigning royalty regimes. “The information available to the public to determine whether the current system is fair is simply inadequate.” As dumb as public opinion may be, it is nonetheless real and powerful. The authors of Fair Share understand this. So they spend some time documenting the various opinions of the public. Then, they add a footnote that sounds very informed. That the public doesn’t really have a clue about royalties. Let me put this succinctly. This report is the most inane, unsophisticated, naïve, partisan and dangerous piece of work in the guise of a legitimate report that I have ever encountered. I am driving down Highway 549 in the morning, on my way to work, at about 100 km/hr. I see this car approaching an intersection about 1 km ahead. It stops. And sits there. Sits there. Sits there. When I’m about 100 metres away, it pulls out in front of me. I slam on my breaks. You idiot! Don’t you have a clue? This is the Fair Share Panel. They have a license to operate their vehicle. They have a right to be on the road. They are probably doing something they believe is important. But something is not quite right. I’m an economist, meaning that I tend to see things in a cause and effect way. And build arguments one piece at a time. I’d love to dissect this report piece by piece, right here and now. But let me try to hit the main issues: 1. You cannot address peoples’ distrust in and perceptions about the oil industry in a credible, honest, and effective way without stepping outside the boundaries of oil and gas royalties. There are these things out there in the real world – things called costs, capital expenditures, risks, income taxes, economic growth, employment and sustainability. They are big and they are critical parts of the total story. Think inside the box. What’s the government’s fair share of your income? Should we gauge public opinion on what is fair for your business? Should we use your income this year as our benchmark? Should we look at tax rates in Norway? Should we consider what it costs you to earn your income? Should we look at the whole picture? 2. Please. Do not compare Alberta and Venezuela. 3. You cannot make statements like “grandfathering (of royalty provisions) causes market distortions and inequities among participants” as if this is a statement of fact and just move on to another topic. It’s always nice to explain why you think what you do and why what you think is so different from everyone else. 4. Your exposé on “hard-to-price-commodities like bitumen” indicates a kind of mystery about supply and demand forces. And your suggestion that “a truly independent, unconflicted, world-renowned and highly experienced advisor” will have the right answer for pricing is embarrassing and, well, a bit silly. 5. I thought the idea of a “Super-Ministry” as a referee for really important energy issues was kind of interesting and attractive. This body of “retired individuals … who will not be threatened or compromised vis-à-vis future industry employment” – you know, guys that don’t care about their next job – would be kind of comforting. Knowing that these guys would take care of everything – make sure that everything was right. And fair. They would need major security of course – bodyguards and the like. To protect them. Their identities might even need to be secret. Like witness protection. 6. We need to be careful when we state that making things simple is a great, fair, even safe idea. Can we/should we make nuclear physics simple? Making things that are complicated simple is often just something that appeals to the simple-minded. 7. If you’re going to engage in a public process that is a bringing together of a lot of different interests, it’s always a good idea to give everyone some credit. Even those people that you don’t agree with. It’s not polite – or fair – to discount what others say, or follow peoples’ comments with “buts,” “nonetheless,” or worse, “the fact remains.” Here’s a good one: “the fact remains that the resources do not belong to the developers; they belong to the people.” No, this is not a pretty document. Or exposé on our state of affairs. But let’s try to put this in perspective. We are living in an incredible period of economic prosperity in our province. We can [Expletive] things up a lot before it makes a big difference to anyone. Right? My advice? Take the smartest elements of the Panel’s recommendations and put them into place. Immediately. Which elements are these? Just ask me. I am one of those near-retirement-don’t-care-about-my-next-job guys. You can trust me. |
| RRE6260 |
Dear Sir/Madam, I think that you have received a letter from APEGGA to express its opinion regarding the royalty increase: most members disagree on the Panel's report. Do you know what the people in Alberta are thinking now? They are worrying about their future in Alberta. Stay here or leave? The reason is that most people in Alberta rely on the oil and gas industry. We will have a hard life if the industry slows down I have a friend whose little kid asked for an Xbox game at the beginning of the year. He told the kid "we must save money in case of unemployment due to strike". Thanks for the good cooperation with government, companies and unions, no strikes happen so far. But last month he had to tell his kid, "After the royalty debate is solved I will buy one for you". Who know what will happen in the future. Oil companies are planning to invest in other places and some people are planning to leave Alberta. Can we solve the royalty debate successfully? I strongly suggest that the representatives from government, oil companies and other parts sit together to get the best solution. I also hope that Alberta has a bright future. Thanks for you reading my comments. Sincerely, [Information Removed] |
| RRE6261 |
I will focus on two issues of concern in the royalty review report: - the recommendations are based on comparing Alberta's government take to other international jurisdictions without properly taking into consideration the differences in economic competitiveness of resource development. Bottom line - the fiscal regime has to fit the economic realities in Alberta, and this design doesn't. The oil and gas industry is currently challenged by the results of dramatically increased cost structure and product price erosion - particularly for natural gas. The assumptions driving the Royalty Review Panel's conclusions are based on historical costs (2005) and do not represent the current economic situation in Alberta. To import changes based on historical profit margins into a far less attractive economic environment is a formula for disaster. - the proposed Oil Sands Severance tax is a very regressive step in fiscal measures as it is punitive and not profit sensitive. Implementation of this will dramatically erode development interest in the oil sands, and constitutes an effective breach of trust by Alberta for the developers. Changing the rules once parties have committed to major investments such as the oil sands is not fair play, and should not be entertained by the conservative party of Alberta. If changes are to be made, the government has to grandfather existing arrangements for these major investments. It would be unconscionable to do otherwise. The increased royalty burden proposed, in this current economic environment, will have devastating effects on the oil and gas activities in Alberta, which will have very negative spin-off effects for a large percentage of the constituents in your riding. You have to know that a lot of secondary and tertiary employment is driven by the investment in oil and gas - for example, from a drilling perspective alone there have been serious impacts already experienced due to the increased costs and lower commodity pricing. Drilling in the Alberta basin is at a five year low. CAODC advised Alberta's royalty review panel that during 2006, 373 drilling rigs worked on average in Alberta, employing an average of 9,400 rig workers. By May 22, 2007, there were just 61 rigs running in all of Alberta - 1,525 people employed, an employment decrease of 84%. Over 70% of drilling activity in Alberta is related to natural gas. . Overall drilling activity in Alberta in 2007 is down by 35% compared to the previous year - and this is before any implications of the proposed royalty changes. This is not the time to be further eroding gas economics through punitive royalty burdens. I encourage a more fulsome consultation with industry regarding the realities of the current economic environment before any changes are introduced. |
| RRE6262 |
Please stop and consider the impact that increase of Royalty Revenues will have not only on the province of Alberta but on the economics of Canada as a whole. If one looks at the history of Royalty adjustments in the Trudeau era one can see where this is headed. The thought of increasing Royalties when the spot gas prices are low enough that most companies are having difficulties maintaining production capacity with new drilling prospects - a function of even the most basic of economic fundamentals, if it costs more to produce than it provides in capital then you are in trouble, big trouble. Companies that are now relying on oil revenues to carry them through the low natural gas prices will be hit hard and when capital revenues are slashed production budgets will be also slashed. Obvious results are immediate decreases employment rates not only in Alberta but eventually felt throughout all of Canada, decreased economic output as a province and decreased Royalty takes as all the companies that are forced to submit to this taxing are cutting production trying to stay afloat. Sound harsh? You bet. Sound possible? It is an inevitable outcome. Just ask Pierre. |
| RRE6263 |
I am writing to you today because of my concern over the recommendations from the Alberta Royalty Review Panel. I believe that the panel based its recommendations on poor data and a flawed approach to the royalty review. As a worker in the conventional oil and gas industry, I have witnessed an escalation in costs in all facets of our business from acquiring seismic to equipping and tying in wells for production; while at the same time seeing reserve size and production rates decrease. The decrease in reserve size and production rates is a natural result of the Western Canadian Sedimentary basin becoming more and more developed. Each year it gets harder for the projects that I work on in Alberta to compete with the other opportunities that the company I work for has to invest in. If the recommendations from the Royalty Review panel are enacted by the government, then conventional properties in Alberta will have an even tougher time attracting investment. By basing the review solely on rate of take, the panel has missed the economic realities of the oil and gas business in Alberta. I have seen estimates that the Panel’s recommendations would result in a $6 billion reduction of annual investment into Alberta, along with the associated jobs and royalties. What good is a bigger piece of a smaller pie? I feel that there is room for changes in the royalty structure, but that the recommendations from the Panel are far too severe and would jeopardize the future of the conventional oil and gas industry in Alberta. I am urging you as a member of the Alberta legislature to give careful consideration to this very important decision, and to take the time to find a solution that will be beneficial to Albertans. Thank you, [Information Removed] |
| RRE6264 |
where is Ralph?...Alberta needs him to save us. Never have I seen such destruction in such a short period of time. Do you idiots in Edmonton not realize what you are doing?.Stelmach you will NEVER get my vote. This royalty deal is suicide. Not only are You slitting your own throat but you are slitting ALBERTA's throat. You see money in your pocket. The people of Alberta will never see a cent of what you are trying to steal from the oil companies. Who is going to feed us when there is no work? Who is going to pay the taxes in this province when there is noone left here. I have my boxes packed. I am ready to go when you get greedy and take for us all that we have worked hard to get. You are NOT an Albertan, You are just a [Information Removed]. Tell Ralph we WANT..no..we NEED him to return. You should have learned from him. Ralph cared about his people. do you not see what oil companies like Encana give back to communities in Alberta. Like the college they are building in Medicine Hat. Does YOUR greed blind you?. Have you lost your mind? |
| RRE6265 |
Do not do anything to jeopardize this industry. Albertans and all of Canada are already prospering from the industry by an abundance of jobs and our standard of living. We returned from a holiday in Nova Scotia, everything is for sale there, we didn't see any signs in windows "Help wanted"...because they don't have an industry like ours. That province is at a stand still, if it were not for tourism, they would be floundering. Why would this government ever dream of doing anything to stop the benefits we already receive from the O&G industry? Can't understand it. It would be a disgrace if an increase in Royalties causes another NEP catastrophy. Does our current Premier, really want to go down in the history books for getting greedy....? we won't be able to blame the liberals this time, should it happen again. |
| RRE6266 |
BRUTAL - GET YOUR FACTS STRAIGHT |
| RRE6267 |
At the outset, I will tell you I have not personnally read this 100 odd page report on Royalty Review. My comments are then based on what I have read in the papers, TV and radio. I decided to let the Alberta Government know my views after I began to read all the oil industries begin their lobbying against raising royalties. I am certain that Alberta needs to raise its royalty rates. This has been very evident over the past 5 years when the oil industry was almost running out of control in order to bring more oil to the market. This itself tells me the oil companies are making a LOT of money from Alberta's resources. It is time the owners of the resource got an increase as well. Of course I expect the oil companies to complain bitterly about an increase in royalty rates; any increase will likely lower their profits somewhat! But with the largely oil and gas sponsored increase in population in Calgary, the government needs additional funds to build hospitals and schools. Just think, an additional 1 biiion in royalty money would have built the southeast Calgary hospital a few years earlier. I would urge the Goverment to adopt this report . I would have no objection to some temporary relief for the natural gas industry due to the current low price for this product. [Information Removed] |
| RRE6268 |
This report has hit the nail on the head. It is about time that Alberta politicians finally have done something about the inadequate royalties comming from the oil companies. Albertans finally will get there resource royalties that are deserved. Excellent report and we need the premier to step up to the table and make this decision with all of the Albertans in mind, not just the big business partners of this province. We elect you to make these hard decisions. Do your job and you will be reelected by your faithful constituents. |
| RRE6269 |
The royalty review report fails to be accurate on current drilling and operating costs in the oil and gas industry and current price of natural gas. Along with painting a low cost/high profit take in the industry, it also fails to take in the account the benefit to the public of all the land sale money coming into the government coffers from a thriving, active industry. By failing to account for these funds creates a more one sided view in order to justify the review panel's opinion. I feel that this review was poorly done and fails the Alberta public by not being clear and accurate. Shame on the people who was on the committe that create this inaccurate report. |
| RRE6270 |
Take some but don't get greedy 5-8% ans give back a SAFE double lane Ft Mac road. Having a robust economy is a life advantage with good revenue from tax base. |
| RRE6271 |
I think there should be another review. Different people doing it. When you are diagnosed with a serious disease, you would be wise to get another opinion. I would never go under the knife without doing that. Are you realizing the impact this will have on Alberta families...on the Alberta economy? I do not support the royalty review. |
| RRE6272 |
Dear Mr. Premier, When it comes to deciding upon royalties for Alberta, please consider the following... If the royalties rise to a price where companies think it's uneconomical, they will go to greener pastures. One can develop an Oil Sands play in Saskatchewan and only pay 1/20. As a province that relies heavily on land sales and royalties (at zero risk to the governement) to fund it's budget, please consider the double-edged repercussion of raising raoyalties too much. Why not phase in small increases and keep everyone happy??? Finally, I grew up in Calgary in the 80's. I vividly remember having to give my parents my paper money from my part time job as a child to help the family to buy essentials like milk, all a result of the NEP and it's firestorm. If the full royalty rates go through, the NEP will be trivial in comparison. On the plus side, the province won't have to build any more roads because Calgary and Edmonton will be dead, and the $150 billion worth of Oil Sands projects and the others industries that thrive from it (another $75 billion worth of major projects), will ultimately evaporate. Please feel free to contact me should you wish to discuss this further. Thank-you, [Information Removed] |
| RRE6273 |
I am opposed to any changes to the royalties from what they are now. The general public doesn't seem to understand that with increased royalties they might get money for infrastructure however this will also limit how much petroleum will be found, developed, and produced, which will also affect what everyone already complains about - the price at the pumps. Increase royalties, take money away from industry, increase the price of gas at the pumps. |
| RRE6274 |
After hearing the oil company whining of late, I can only pray that you do not give in. Our grandchildren need the gov't to actually have some [Expletive] this time. |
| RRE6275 |
Hi there, I started to read the report and gave up as soon as I realized that it recommends lowering conventional royalties and raising oil sands royalties only after "payout". Are you guys sure that the oil companies didn't write this report? This report is so complicated and onerous that no layman could conceivably be expected to understand what a rip off of the owners of the resource this report is truly is. As an alternative, I would suggest the following: leave the conventional oil and natural gas royalties as they are, other than cancelling all royalty holidays that you guys have already agreed to. I worked in the oil business over 25 years, and still have a big interest in what goes on out there. I read annual reports of several dozens of junior producers every year and realize that they pay about a 20% royalty on ocnventional, non-heavy oil and nat. gas. That is a fair amount in a mature basin. OIl sands royalties should immediately be raised to 10% of all production with no consideration given to payback of investment. If these oil companies don't like that, they should be encouraged to go to Venezuela for their heavy oil. The Alberta Gov't is the worst banana republic in the oil business in the world, other than possibly the U.S. Smarten up guys and wean yourselves off all those campaign contributions. Pay the owners of the resource their fair share. If oil prices continue to rise, make provisions in this modification to rise the royalty rate across the board on a 2% per $10. rise basis over $80, and 3% per $10. rise over $100. If oil companies are not making enough return on capital invested in this price environment, they are incompetent and really should be in Venezuela. Changes to the oil sands royalty rate should have been made several years ago when these oil prices started rising. Any slowdown that might have resuted from the whining of the big companies might have "mitigated" some of the labour nightmares and dramatic cost increases thta have occured in a "free market" solution to rising prices. You guys should be ashamed of yourselves. [Information Removed] |
| RRE6276 |
It's beyond time for the province of Alberta to get it's fair share from the exploitation of our natural resources. Scaremongering on the part of the oil industry aside I think we can agree that oil prices are not going to take a drop and with the current regional instability in the Middle East we can probably expect them to go higher. And if a project or two was canceled that wouldn't necessarily be a bad thing. The economy could probably use a little cooling down at this point. |
| RRE6277 |
Hello, my name is [Information Removed], an oil & gas company in Calgary. As an Alberta citizen for over 28 years and an employee of a petroleum producer, I feel torn as to what my stance should be regarding the Royalty Review report. On one hand, I feel that Albertans do deserve a bigger share of royalty revenues, but on the other hand, I believe that changing the royalty regime could possibly have a catastrophic, trickle-down impact on the oil & gas sector in which I make a living. I have not read the Royalty Review report so I cannot be absolutely sure of all of the statements being made by the government about the currently “unfair” royalty scheme. I will leave the analysis up to the experts. I initially felt that Albertans would prosper more if the government increased royalty revenues but I am not sure that at the end of the day, that will translate into more money in my pocket, or increased government spending on matters that are important to me (i.e. improving the sad state of health care in our province, crime prevention programs, improving the affordability and availability of child care services, etc.) How can I trust the government to handle the increased revenues in a responsible manner? There is no guarantee of that. On the flip side, I am not sure what the exact impact will be on the economy should all the recommendations of the Royalty Review report be implemented by the Alberta government. Can companies continue to be profitable? Will people lose their jobs? Will my company’s unit price decline, resulting in a decline in my personal investments? No one has a crystal ball and knows this with absolute certainty. Changing the royalty regime at this point would upset the delicate balance between provincial needs and corporate profits. What I do know is that more time is needed by both the government and industry to further evaluate the available options in order to determine a sound resolution to this controversial matter. I sincerely hope that the government will delay its decision on the Royalty Review; responding to the public on October 15 seems much too rushed. In closing, I feel very, very fortunate to be a citizen of Alberta, where the economy is prospering and the overall state of the economy is good. I am 30 years old and I have never been unemployed and I have always felt that my career prospects are above-average. If the Royalty Review recommendations are implemented in full without further government analysis, I am afraid that the consequences to oil & gas companies, their employees, investors and all others affected by this industry, will be irreversible and damaging to those that want to do business in Alberta. Thank you for your time. |
| RRE6278 |
I believe the government should implement the recommendations of the Royalty Review Board. However I have grave concerns as to how that extra money is going to be spent. Make sure your priority is in healthcare, education and infrastructure. Don't build a new arena for the Oilers and such!!!!! |
| RRE6279 |
im just an average albertan but honestly in going through with this royalty review would you not be cutting back on the amount of work the work that the oil & gas industry is bringing into this province? further more in grande prairie there is already talk of a few companies pulling out of the patch. now im just shooting in the dark here but if those companies pull out wouldnt that make the unemployment rate across the board just go through the roof? and if history is correct didnt the government already try to do something like this and killed the patch for 15 - 20 years? Do you really wanna do that just when our dollar is able to battle with the U.S. for the first time in 30 years?. honestly to me that kinda sounds a little counter-productive and really to be frank, just get your hands out of the patch its not like u like to get them dirty anyways. maybe just maybe if the government were to endorse the patch, the patch workers and those involved with the industry just might be willing to endorse the government. i know that sounds bad but honestly all the government of canada and alberta has done for the canadian citizen is just find new words to [Expletive] us over in the same fashion, BE DIFFERENT. and you know that saying... you scratch my back ill scratch yours? well maybe you should try scratching the back of these companies instead of gouging at their eyes, and taking from the working mans pocket |
| RRE6280 |
Dear Government of Alberta, As a recent honors graduate from [Information Removed] University and as a brand new resident of Alberta, I am very upset at this royalty review because my career may be severely affected by these new royalties (if implemented). Here is why: oil companies invest enormous amounts of money in order to make discoveries. If you take huge risks, you deserve large rewards. This industry requires a lot of very educated people in order to quench the energy demand. It's a very rewarding, exciting, and a challenging job. It's not easy, and it's a job that involves high technology, and requires the skill and talent of many individuals. The individuals of this industry need to be well paid for the work they do. If there is no cash-flow, or profit, you cannot pay these people or encourage exploration/development... hence the need for large profit margins. The people that work in Alberta’s oil and gas sector are spend their money at the local car dealerships, local stores, and input their income into the various other local businesses/real-estate around town. Whether or not you despise the oil/gas industry of Alberta, we all depend on it, and need it. Without it, Alberta couldn't boast about its ‘no provincial sales tax.’ What will happen if the royalty reviews come into play? It will shift this new recession into light-speed. I know at [Information Removed] , we've scaled back quite a bit due to drilling costs alone (the cost estimates are completely wrong royalty review). Please refer to [Information Removed] letter on some of the cost issues. As a new individual coming into exploration, we desperately NEED every incentive to drill deeper gas targets (especially at the current value of natural gas). You cannot place high taxes on over-inflated drilling prices and on small ‘prizes.’ The review panel should also inform the public of the billions of dollars of profit the Alberta government acquired from land sales. What the government takes in from the oil and gas industry is completely risk free. Think of this casino analogy: most of the penny slot machines are out of order because they’ve been played to death and all the small prizes have been won (shallow drilling targets). These slots are so old that they require constant maintenance and the price to use the remaining machines increases to 5 cents- even though there are fewer prizes to be won (think of increasing drilling costs). Now the casino owner claims, “Hey we want more of a profit, so if you win on the penny slots, we’re going to take a portion of your winnings.” How do you think this affects the gambler’s decision? They may start to look elsewhere. So now, everyone is kind of thinking about going over to the new ‘loonie’ slots (think deeper oil/gas targets)… but the owner decides he’s going to heavily tax that as well. That’s not very encouraging to keep the gambler at his casino. Now the gambler is going to try his luck in the next town. You can think of the ‘slot-machines’ as the government’s land. Except with the government of Alberta, they don’t have to pay out the winnings of their ‘slots’ of land. They just sell the rights to the highest bidder, and the winner gets to drill. It’s always a win for the government, unlike the casino owner. This royalty review panel NEEDS to be reasonable, and it needs to make sense. As an original 'East-Coaster,' I can say that Alberta is very fortunate. Alberta (economically) is far more fortunate than many of the other provinces in the country. It's beautiful here, and the people here are wonderful. Having a job, and a great economy is a great morale booster, and it makes this part of the country a wonderful place to live. Thanks, [Information Removed] |
| RRE6281 |
I've studied the report and honestly feel that if the recomendations are adopted, even to the slightest degree, you will be forcing Alberta into a recession that will make the 1980's look like a vacation! You will lose my vote. |
| RRE6282 |
I work in the oil field industry as a welder, and the oil industries are putting in their fair share by what they are givng Alberta and its economy. If you pass the royalties, you are jeopardizing all that Alberta has worked so hard to accomplish and I fear for both my job and my province. I do not feel that this act is in the best interest of Alberta and truly believe that you are placing Alberta in the position to have its economy crushed. Thank you for your consideration of my comments. |
| RRE6283 |
I agree 100% with the report. The oil patch needs to pay its fair share to Albertans. The largess and flagrant display of wealth in the industry is really hard to take. Rather than supporting lavish parties and exotic cars for oil execs. lets put the money into schools and hospitals. They used to be important public buildings. |
| RRE6284 |
I strongly oppose recommendations as set forth by the Royalty Review Panel Report. I have read impact statements from both Oil Companies and Financial Institutions and the common theme is that the economics and operational assumptions used by the Panel are fundamentally flawed. Alberta communities, small and large, currently experience a robust economy from capital & operational expenditures created by oil companies. Expendable income people acquire from oilpatch jobs has spun off an enormous amount of opportunity in areas such as retail sales, construction, and entertainment. This activity promotes new opportunities such as banking and high tech developers to Alberta. With continued nurturing, we will eventually be able to weather any storm from volatile oilpatch revenues thus spurring our economy even further. In recent years the Alberta Government has done an excellent job of decreasing our provincial debt. This was mainly possible due to funds from our current royalty regime, and crown land sales. I believe that by increasing royalties to the level and extent that the Royalty Review panel has recommended we will see a substantial erosion of value and a lower provincial income. Oilpatch investment will dramatically decrease. Land sale bonuses for the crown will decrease, off-setting any increase in royalty rates. Massive job losses will be incurred as oilfield construction will slowed to blow-down levels. Expendable income from all oilfield employees will decrease devastating existing and potential spin-off opportunities. This will create further job losses. Housing and investments values will also drop forcing some individuals into bankruptcy. The royalty structure needs to remain the same to maximize the potential of our great province. Again, I strongly oppose these recommendations. |
| RRE6285 |
I feel that the decision to increase royalties by the Alberta Government is short sighted. Alberta's wealth comes from the development of Alberta's resources and if the oil companies decide to go elsewhere for development of oil & gas, all of Alberta will suffer. Please look at the big picture. We have a very good economy based on the development of the oil & gas industry, it doesn't make sense to increase the royalties. It will ultimately slow the economy and cost us our jobs. |
| RRE6286 |
I am a born and raised Albertan with 2 boys - I do want what is best for the people of Alberta. HOWEVER - What the royalty report missed completely in its review, in my opinion, is return on capital in Canada versus other jurisdictions (choosing rather to focus on royalty-take comparisons which are irrelevant given the unique elements of oilsands + a mature conventional basin). According to a 2007 report [Information Removed], Canada's return on capital for the oil and gas business (including & excluding oilsands) is the worst of the developed/developing countries over the past 5 years. What this means is that by changing the royalty agreement it will: 1. push away capital that has funded development under a set of rules that are now being changed - investors will look elsewhere to BC, Sask and globally to obtain better return for the risk (should these recommendations be undertaken in their entirely, AB shall be viewed as a riskier regime). 2. The medium term consequence as a result will be lower production than currently forecast which frankly means lower royalties. I love living in Alberta and think one of the reasons we are the wealthiest province in Canada is due to entrepreneurialism supported by a government that stands by its agreements (unlike Venezuela or Russia). The royalty panel suggestions are shocking to me and undermine the credibility we have worked so hard to gain nationally and internationally. |
| RRE6287 |
The Premier must heed the courage of his convictions in this matter. Albertans trust that Mr. Stelmach will ensure that we are getting a reasonable return for OUR resources. The worldwide demand for oil continues to increase as does the price of oil. Major oil companies cannot, and will not, leave Alberta over a fair royalty arrangement - our oil is far too precious a commodity. I also believe that if Mr. Stelmach does not adjust royalties, his party stands to lose the next provincial election. (Everyone I have talked to about this issue, without exception, are looking to Mr. Stelmach for courageous leadership in the face of bullying threats made by the oil companies). Best wishes, [Information Removed] |
| RRE6288 |
Please listen to the industry before making this rather big mistake if you implement the new royalty system! |
| RRE6289 |
I provide management consulting services to several oil and gas companies. Our business is internal efficiency improvement. I have an opportunity to see first-hand how the current cost and revenue impacts on oil and gas. Over the last few years, the conventional oil & gas industry in Alberta has seen tremendous cost increases due to shortages of labour, steel, equipment, etc. At the same time, revenue has dropped because most of the production is gas (with depressed prices, in US$). This has made many prospective wells uneconomic. I have seen many middle managers struggle to get funding from their Senior Management. In 2007, several of my clients made drastic cuts in their programs due to poor economics. Drilling activity is now at a 5 year low. The proposed increased royalties, if implemented, I’m convinced will result in further reductions in spending. I don’t believe industry comments are scare- mongering. The impact will be on many small service providers, throughout Alberta. It will also negatively impact provincial revenue. If the government feels they deserve a larger share of oil & gas profits, the royalty restructuring should be more profit dependent, rather than strictly a revenue- based royalty. I would suggest to levy higher royalties during boom years, and lower during bad years. This would also help mitigate cyclicality and provide more stability in the province. Over time, it could even result in higher average provincial revenue. I would urge you slow down and/or modify this recent proposal. |
| RRE6290 |
Although I do believe that the Oil and Gas companies in Alberta should pay more back to Albertans , I also believe that they are not going to be strong armed into giving away their profits. I am a Welder in oil and gas construction sector and as well as everyone else this year have been hit by hard times this year Fort Mac may generate billions of dollars in revenue for the province ,but it dose'nt take a genius to know that we all can;t work there . I love what I do for a living ,I love my province,so please take care to find a solution that is both profitable and fair for both all Albertans and the OIl and Gas compamies that provide so many of us with the great quality of life we have come to know and enjoy in our great province. Thank you. |
| RRE6291 |
I work in the Oil & Gas industry in Alberta, and I must say, the review panel clearly has no idea of the ramifications that would result from their proposed 20 percent 'rake'. This province is now debt free and better off than its ever been with seemingly no thanks for the 'blood, sweat, and tears' I've given. There is this illusion for some that the money simply falls from the sky for oilpatch workers. I'll tell you that there are huge sacrifices. I have a two year-old daughter at home who adores me, and I hardly see her. I sacrifice time with her in order to try and get ahead a little bit. It's a choice our family makes, and it is a very hard one, but its also a responsible one. This is the wrong dog to stand up to. Trust me.... Saskatchewan and British Columbia are licking their lips right now, praying for the royalty review to get pushed through and we all know why. If your bluffing, believe me, you'll get called. I can speak for myself and others when I say, my loyalty is to an oilfield company who treats me fairly,( and I will follow them to another province if need be), not to a provincial appointed panel who thinks they can walk in and strong-arm a huge industry that gave them a backbone to begin with. Take what you always take, but do not get greedy. Your starting to overbill your best customer. |
| RRE6292 |
I am supportive of increasing royalty rates to the oil industry especially with no commensurate passing along costs by the resource companies, to end consumers in order to preserve their HIGH profit margins. These large resource companies though admitedly creating wealth in our communities have created social and economic problems (transportation, infrastructure, health care and education costs) for which they have an obligation to contribute more towards. Particularly if they are to profit so substancially. When their profits dry up or global markets for commodities take a tuyrn for the worse - these companies will be nowhere to be found as people are layed off, consumers personal mortgages and debts need to be paid, the province is faced with even more dramatic social problems. |
| RRE6293 |
Ted Morton, Mel Knight, Premier Stelmach Dear Sirs, I am in strong agreement with the recommendations of the Alberta Royalty Review. Do not be swayed by local overreaction by industry leaders, most people who work within the Industry know full well that the raise in rates and reliable accounting practices are long overdue and will not mean economic crisis for Oil Companies. The international Society of Exploration Geophysicists annual convention was held this year in San Antonio Texas. Guess what? No buzz, no fuss. The Sept 21 edition of “Upstream” which came out during the convention does contain a nice article on page 5 that mentions Stelmach’s decisive moment, CAPP’s fears, and points out that “the Oil Sands are one of three great Basins in the world” and that Alberta offers stability outside of the few weeks while we wait for the final decision. In the big picture we offer geopolitical stability, not much chance of war and easy accessibility of the resource. There’s no real competition. Sincerely, [Information Removed] |
| RRE6294 |
I have been on the ground floor of the oil and gas business as a Professional Landman for 20 years and have been President and CEO of three separarte junior oil and gas companies since 1995. I believe I have intricate knowledge of the business and of the economic parameters and reinvestment metrics required for long-term sustainablility of Albertans' resources. The current investment environment is fragile at best, particularly on the conventional oil and gas side. Significant changes to the current royalty regime could therefore have grave consequences for all stakeholder groups.I concur with Industry Analysis and feedback, including those issued by Producers and their representative associations (ie: CAPP, CAPL, SEPAC) and Energy Analysts. I believe the conclusions of the Alberta Royalty Review Panel (ARRP) are based on misinformation and are therefore inherently flawed and short-sighted. They are unrealistic in that many factors have not been considered including full-scale economics including land sale bonuses. Most importantly, the repurcussions resulting from a certain decrease in reinvestment have been significantly overlooked. Receiving more of a smaller pie is not in Albertans' interest. Unemployment and uncertain investment conditions will be a direct fallout and may continue for years to come, as large-scale investment plans are re-directed. I encourage the government to work with industry groups and become better informed on what really is involved in an economic decision to engage in and finance a project. [Information Removed] |
| RRE6295 |
hello, i am [Information Removed], working for [Information Removed], as a nitrogen pumper operator. i have to say that i am absolutely dissapointed that someone could think this royalty increase could be a good idea. the first mention of it and EnCana says they will just drop $1.5 billion dollars out of canadian production. EnCana is our large customer and i am sure all of the companies will fill follow suit. that will result in the loss of thousands of jobs, myself included. they have the resources to not work in alberta for years.... i do not. so either i will have to move out of the strongest province in canada to follow the work or i will have to be a drain on whats left to alberta. the idea to try to leach more money out of the oil patch is in my mind based on greed, thinking it is a quick fix as the final smear against the klein government. simple math, the more the oil companies make, the more tax they pay. the more royalties they pay.... the less money they make and the less they get taxed on. it is stealing from one mouth to feed another, and in turn thousands of people will be jobless, homeless and drain the government in social aid. so yes i am opposed to the proposed royalty increase |
| RRE6296 |
I would like to receive one copy of the royalty report [Information Removed] |
| RRE6297 |
I cannot believe the moment and the crisis that recommendations from the Royalty Review Panel had created. I have been reading about the basis of their recommendations and frankly it is unbelievable. I came from Colombia [Information Removed]and I tell you that we had this crisis over there as it is similar that we are going to suffer here in Alberta. In 1984 the Colombian government took the decision to raise royalties. They though it was “fair” to rise that royalties because the oil and gas industry had good success in exploration. The result of that bad decision was that the mayor companies that were there left the country. Almost 19 years afterwards the oil and gas industry in Colombia still do not recover the same levels of exploration that we used to have. I am scare about the same situation and similar results are going to happen here. Could you please review this possibility? It is true that the companies are not in the situation to raise their taxes, the perception of the media as well as a lot of people is that the oil & gas industry is making too much money but what about the money that they invest here in order to maintain that profit? I heard that the oil & gas companies are not going to leave their business here because they already invest money that they have to recover their money that they already invested, but what about the new investment and new companies that are thinking to come here? The message for them is clear do not go there the taxes that Alberta has already kill any good project. The panel is thinking about the money that the government is going to receive if the recommendation is accepted. In the end the government is going to get less money that they think and is going to force the Alberta’s to go away because of low job’s offer. What about the people that is going to loss their job because of that? In fact the lay off is going to be huge the oil & gas industry cannot support the employment levels that they already have because of royalties increment. Please do not accept this recommendation do not make the same mistake that the government in Colombia did. I can see that the same situation is going to happen here. The economy in Alberta and in Canada is quite strong right now and part of this situation is because the oil and gas industry do not destroy our dream to live in a beautiful, peaceful and full of opportunities’ country with a good future to our kids. The money is coming on due time do not accelerate that process is going to affect everybody in Canada. Respectfully, [Information Removed] |
| RRE6298 |
The review panel's report did not appear to adequately address the follow-on economic impact reduced capital expenditures in the Western Canadian Sedimentary Basin. While I agree that higher oil sands royalties may be desirable, I am very seriously concerned that the full economic impact of a royalty change has not been considered. I strongly believe that a conventional royalty adjustment will have a negative near term impact on Alberta's economy, despite the fact that it may increase near term royalties received by the government. The Alberta economy is very strong and the conventional oil and gas business continues to incentivize producers to maximize production for the province---why are we trying to fix something that is not broken? |
| RRE6299 |
The oil and gas business in Canada is facing a number of challanges at the moment. Recent changes to federal tax rules removing the Royalty Trust option have removed an exit strategy for many Juniors. As a result juniors are finding it very difficult to raise capital. In addition the federal government also removed accelerated capital depreciation allowances for heavy oil projects. The high Canadian dollar is another challange as product prices are determined in US dollars while costs are in Canadian. In addition, natural gas prices are very soft at the moment which is resulting in reduced gas drilling. Future increases in gas prices are threatened by LNG imports to North America of 3BCF/d or 20% of Canadian production, an amount that will only increase in the future. Industry is also facing the prospect of having to reduce green house gas emmisions either voluntarily or potentially through legistation. Some of the existing royalty programs also make sense if our goal is to maximize Alberta's natural resources. The Deep Gas Royalty Holiday for example rewards companies for drilling deeper wells which result in the development of deep tight gas resources. Removing this program would result in preferential development of shallower gas overlaying these deeper gas targets. Removing the shallow resource makes drilling the deeper targets without the benefit of the shallower resource "paying the freight" uneconomic. This means that these deeper resources may never be developed or potentially only developed years in the future. The Premier of the Province has not yet gone to the polls for a mandate. The release of this report puts the Premier in a very difficult political situation. If he does not act on this report he will appear to be bending to the wishes of big oil interests in the province. If he enacts the recommendations of this report I believe he will put the economy of Alberta into a recession. If he times it right, the recession will likely not occur until after the Election. The Province of Alberta has recently paid of it debt and enjoys the stongest economy in North America. Just exactly how much is "Our Fair Share"? |
| RRE6300 |
I have waited weeks to post this message, as I wanted to see just how the mere thoughts of what the government is proposing would effect my industry. I own a small seismic survey company that has employed up to 20 Albertans for the last 2 years. As of right now I only employ 3, as the industry has been in a downturn for the last 8 months or so. With the release of the governments review report I have already lost 2 months of solid work for 10-15 people, these programs being cancelled on mere speculation of what the government will do on this issue. I started a US division of my compnay this spring to try and eleviate the downturn. Now, I am seriously considering moving my entire operation to the US. And I am not the only company contemplating this. I paid a lot of taxes (for a small company) in the last 2 years, and have paid out well over 1 million dollars in salaries in this timeframe as well. This government is playing with fire and will end up crippling the economy of this province should it act on this review. I was born and raised in Alberta and love every piece of it. However I will not sit by and let my family starve because our government acts on a report that is based on some extremely bad data. Read around a little and you can all find out about costs to produce and actual profits. I have already been approved by the US government to set up permanently should I choose. I hope I do not have to go this route, but I will do should I have to. Best Regards; [Information Removed] |
| RRE6301 |
I believe the notion of a sliding scale royalty is ridiculous, if not impossible to implement. Would you base the production rate on the first day, the first month, the first year, or average daily production through its life? How would you compensate for wells that came on strong and petered off after? How would you find the staff to go through the incredibly complicated calculation process when the regulatory bodies are rediculously short staffed already? The higher production wells involve much higher risk as they are deeper, more geologically challenging, and more remote. Why would you take the reward away from an investor willing to accept the higher risk? Same goes for the oil sands. These are incredibly capital intensive projects with payout 30 years in the future sometimes. To not have adequate reward on these already marginal projects would crux an already difficult environment. Typical government schedule is 2 years late to capture increased royalty when these projects could have weathered. If the recommendations go through - what will my break be on my income tax? Does it really matter if you capture it here or there? Why do you need a bigger surplus - are you planning on spending like the US's conservative government? [Information Removed] |
| RRE6302 |
The ENTIRE royalty report should be implemented. The resourse belongs to Albertans NOT the oil companies. |
| RRE6303 |
This is why we cannot increase Royalities. Canada’s drilling rig fleet utilization has languished below 45% this month, putting the nine month rate at 42%, the lowest in this country since 1999. Between January and the end of September, weekly surveys conducted by Nickle’s Rig Locator publication (www.nickles.com/rig/) show an average of 365 working rigs so far this year, 30% less than a year earlier when 519 rigs were at work. This year’s three-quarter count is the lowest since 2002. Fleet utilization over the first nine months of 2006 was 65%. Since the fleet has again increased in 2007 (to an average of 860 rigs from 794 last year), the number of rigs out of work has surged to a record high of 496. This week’s survey found 352 rigs active in western and northern Canada, 41% of the available fleet. After being substantially lower than last year for all 2007, September rig counts show numbers very close to 2006 levels when industry pulled back their drilling programs due to a sharp decline natural gas prices. This week’s active rig count of 352 units is only three less than a year ago while last week’s 360 working rigs represented an increase of eight rigs from the same week in 2006. Activity in Alberta over the first nine months of 2007 fell 30% |
| RRE6304 |
What a wonderful opportunity! Alberta's recently released Royalty Review Report provides an opportunity for the provinical government to bring about further investment into the oil and gas sector through value-added opportunities. I suggest a two-tiered royalty system that places signifcantly higher royalties on resources that are exported. This would provide an Alberta Advantage for the province's residents, and owners of the resources, that was lost years ago. Placing higher royalties on exported raw resources would provide an incentive to the industry to invest in the value-added industries here in Alberta, as opposed to exporting the raw resource to a value-added processing area in another country. This report and a resulting system outlined above would provide the Stelmach government with a way to be seen to be proactive with the suggestions in the review, be innovative in ways to capture more royalties for Albertans, encourage more investment into Alberta, and further diversify the oil and gas industry. |
| RRE6305 |
I think that our priority should be to support existing procedures while taking into account future development. We should not 'price ourselves out of the market' while trying to mimic other jurisdiction policies! Never mind what's on the other side of the fence - act for the good of our province as a whole! |
| RRE6306 |
We like the idea of rebalancing Alberta's share of the royalties with the developer's share so that it is as fair as possible. But we cannot ask for too much and end up with a downturn in exploration which will impact so many of the oil workers in this province. There is a slow down occurring right now and they say 1 in 6 Albertans livelihood depends on the 'oilpatch' as it is. |
| RRE6307 |
I would like the Albertan government to give back a higher percentage of oil revenues. As long as the program is arranged to take money when prices are high, and leave oil and gas along when its low, your Golden Goose should keep on giving to somewhere other the oil executive board rooms. Will the Alberta government actually listen to Albertans? I hope to be pleasantly surprised. |
| RRE6308 |
I'm not exactly an expert on royalties, but I'm not exactly sure how much of a change was actually made during the royalty review. I appreciate the effort to lower the royalties on gas prices, but the problem is that gas prices are still high. Thank you for the opportuity to state my opinion. |
| RRE6309 |
I'm sure this report is not accurate. At least have an independant outfit compile the numbers without bias. The oilpatch is already headed for disaster...upping the royalty will put the nails in the coffin and make the companies pull out of Canada. |
| RRE6310 |
Response to the Royalty Review Panel Recommendations October 5, 2007 I write these comments as a concerned citizen of this great province, having lived and contributed to Alberta during the past 30 years. Professionally I am a CA, and have been employed in the oil and gas industry throughout this time. My experience ranges from the conventional upstream side of the industry, to offshore, international, refining and marketing and the oil sands. My work has primarily focused on strategic and business planning, mergers and acquisitions, economic analysis and benchmarking. I have experienced the devastating effects of the NEP and I applauded the Alberta Government policies that created the Alberta Advantage, a strategic masterstroke. Alberta’s competitive advantage is a source of pride that stands to benefit many generations to come. Let us not now create a made in Alberta, son of NEP. I have read the Royalty Review Panel Report, CAPP’s response as well as comments from the investment community. My concerns with the Panel’s recommendations are several: A handful are set out below: 1. Royalties and taxes can either stimulate or destroy economic growth. The proposed higher royalties and the new OSST will seriously erode the Alberta advantage. Industry reinvestment will shrink, and economic growth will be drastically curtailed. 2. Royalty and tax regimes vary greatly around the world, as do industry input costs, especially labour costs. Jurisdictions with the lowest combined fiscal rate, cost base and political risk will always enjoy the highest economic growth, and over time highest government fiscal take. 3. Higher than average economic returns by the industry and their reinvestment have provided enormous spin off benefits for most other business sectors and their employees. Spending by the oil sands sector has been the single largest contributor. Government revenue from corporate and personal taxes has grown commensurately. 4. Industry costs have risen as a function of global resource demand and competition for scarce industry talent. Alberta Government policy let alone higher royalties will have no meaningful impact on reversing this global phenomenon. 5. The costs incurred by oil sands developers, both capital and operating, are far higher than acknowledged by the Panel. That is a fact. According to[Information Removed], supply costs at the plant gate are now in excess of C$35/bbl bitumen with another C$27 or so for upgrading to SCO. These more up to date costs demonstrate the Panel used outdated data. 6. The conventional industry is hurting, as evidenced by low natural gas prices, high costs, low drilling activity, small discovery sizes, to name a few. This situation has led to low exploration and reinvestment. Higher royalties, if applied at too low a threshold price or well production volume, will merely aggravate an already serious situation. If anything, lower royalties should be applied to natural gas production. Provide a fiscal incentive for the conventional industry to reinvest in Alberta through a reinvestment royalty credit mechanism similar to the upgrader royalty credit. 7. The concept of an [Information Removed] must be abandoned, as it will be destructive to future oil sands investment. A fairer mechanism would be to increase the oil sands royalty rate under the existing R-C formula using a rising rate approach commencing at higher oil prices. Higher royalty rates could commence at bitumen prices in excess of US$40/bbl, rising from 25% to a maximum rate of 40% at say US$60/bbl. This approach will help to preserve the Alberta advantage. 8. Consider a higher minimum oil sands royalty of say 5%, but make it deductible against post payout royalties over 3 to 5 years. 9. Consider a sliding scale levy on “excess” upgrading profits, using a R-C-25% ROI allowance type formula. This after all is where the potentially superior returns are generated by the oil sands industry. Such an approach would allow Alberta to participate in “excess” upgrading profits generated by high commodity prices 10. Upgrader royalty credits should be boosted from 5% to at least 10% to truly stimulate upgrader investment in the province. 11. Qualifying costs for the upgrader royalty credit must in fairness include a pro-rata share of shared facilities dedicated to both bitumen production and upgrading. Shared facilities promote economic, or lowest cost investment in an integrated plant facility. To exclude reasonable, shared facility costs would promote uneconomic investment and lead to higher upgrader costs. The Panel’s recommendation on this matter makes no sense. 12. Provide fiscal incentives for research and development of new technologies for deep oil sands bitumen extraction and production. The Panel has assumed $1.9B in higher royalties if their recommendations are implemented. Their analysis assumes a 2006 status quo. A great deal has transpired in 2007. For one, the conventional industry is reeling from low natural gas prices and the service sector is the hurting. Oil sands cost are far in excess of those used by the panel. To assume no industry reaction and no royalty and tax revenue leakage if the recommendations are implemented is naïve at best. Industry sources indicate the royalty take may actually decline by $1B without counting additional negative spin off effects. Future investment will be curtailed. The oil and industry and its economic domino effect on other sectors arguably accounts for more than 50% of Alberta’s GDP over recent years. While a slowdown in the province’s growth is inevitable, why kill it with a sledgehammer blow? The Alberta Government must, above all, avoid a shock effect to Alberta’s economy with any royalty changes. Consider a rebalancing of the royalty structure that favours continued investment and growth in Alberta. Keep the full fiscal picture in sharp focus. Go slow with any changes and only implement those that preserve Alberta’s competitive advantage. |
| RRE6311 |
I think that for the most part that the report is sound. However, a staggered introduction might cause the least negative effect. All subsidies should go first. Then royalties in the oil sector should be increased over a period of 5 years. I like the idea of rebates for upgrading in Alberta. I fear with the recent approval given to Trans Canada to export to the US in its pipeline that we might end up with no refineries in Alberta and having to send our crude to Texas and then have it shipped back. I would hold off in royalty changes to the gas sector for a few years with the hope that sector might recover. It's not in the best of shape at the moment. |
| RRE6312 |
Hi, I oppose to raise the royalty in oil and gas industry. Please do not kill the Alberta economy, Alberta's sustainability of oil and gas industry, and investment employments. Can you listen to the attached concerns expressed by [Information Removed]. [Information Removed] A deeply concerned Albertan and an employee and a shareholder of [Information Removed] |
| RRE6313 |
Hi ... I work on the Oil and gas industry and I am aware that the Province wants to raise rayalties to generate funds to develop the provinces healthcare, infrastructure, etc... and I believe that this is fair but should take into account the business development which might occur as a consequence to that. Fairly doing will help both the Oil industry to continue to contribute to the province prosperity and the province to benefit from high prices of Oil. The Panel, in my opinion used flawed or old data sets due to lack of the latest updates on the costs which we can blame on the lenghty and bureacratic process or on the Oil and Gas companies not willing to share their internal data. Also, I rtead some comments from the Panel's members and they used some harsh words and comments to defend themselves which is not really proactive and does not help in settling down a win-win strategy (such as if they are complaining about the costs, they leave it in the damn ground!): - 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. - 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. -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. -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. So these are the key points after in-depth analysis from experts in our comapny and they are made public in a press release. Hoepfully the government understands and acts properly to allow for both sides to synergize and make this province leading the prosperity of Canadians. Regards, |
| RRE6314 |
I currently am a Service Provider in the Oil Patch and most of my family and friends are also directly or indirectly associated with earning their revenue from the Alberta Oil. I am very concerned with the imformation that the panel has used to come up with the recommended increase to royalties. Costs to live and run a business in Alberta have been increasing monthly and costs used by the panel, I believe do not represent current day costs. Please consider this in your final review and your adjustments to the royalties. Balance is required towards the existing economics and future growth of the province. Thank You for your careful calculated consideration of this issue. |
| RRE6315 |
As a native Albertan I would say to definitely stick to the review panel of the recommended 20% increase and no less. Also there has got to be a close monitoring of just how much resource is being extracted. Don't let this precious nonrenewable resource slip away from us. We've got to get our fair share of the profits. Don't fall for threats that they would abandon the province to persue their interests elsewhere. There are many elsewheres left in the world. We're not simpleton hillbillies who should be happy with a sliver of the pie. We should also develop and refine the resource as much as we can. All this can be done for the people of Alberta unless you're in the pockets of some of these major complaining oil corporation. |
| RRE6316 |
There are millions of Albertans that will be affected by this Royaty decision. Everyone knows someone that works in the Energy sector, and things are great _right now_. The Alberta government would be silly to change something that is doing so well right now just for a little extra cash. Business is fueliing our provincial economy as well as the National economy. Do you really want to drop a bomb on our entire economy and send the country into economic turmoil? Because that is what will happen if this Royalty review passes. Millions of dollars are invested into this province, and I just can't understand why you'd want to mess that up and send investors running (Unfortunately, some already are running because of the impact that this law would have). The short term benefits (extra money for the government) seems like a good idea, but this province has to start thinking about cash flow and budgetting a little bit bettter and stop blaming an 'old royalty law' on the reason why this province doesn't have enough money. Think about what you're doing, and how thousands of Albertans will be affected and lose their jobs because drilling will become less 'economic' than it already is. |
| RRE6317 |
I don't agree with the government's choice of increasing loyalties. That will slow down the economy. The tax rate is already too high. The government takes a lot of taxes and have surplace of billions of dollars and the government calls it the "Alberta Advantage" but there is homelessness and other problems which the government does not deal with. Life became very difficult because of this so-called "boom." Mr. Premier I hope you wil care for your people. I don't believe you would. Regards, [Information Removed][Information Removed]Edmonton |
| RRE6318 |
It no longer appears to be between those in favour of increase royalties versus those opposed. Rather it seems to have become a debate between those who have directly benefited from the boom, who are better able to manage the additional costs associated with it, versus those who feel that they have not and feel that they can't. If this is indeed the case, it puzzles me as to why the great debate is still centred on royalties. Very few in the province actually know what royalties are, let alone, how to calculate them. Similarly no one is truly certain of the actual monetary benefit that will accrue to the government if they raise the rates or if the government will know how to spend any new found wealth, should it arise, to improve the lot of those feeling left behind. We have had a surplus in this province for years and many would argue that governance during this surplus period has been far from ideal. Is giving the government additional resources, beyond their current surpluses, going to enable them to help resolve concerns of those who feel left behind and therefore favour the royalty report? If the question truly is how can we help the people who have had more problems keeping up, then why is the topic royalties? Instead of asking if people are in favour changing something that don't truly understand, why not ask, or promote, the idea of tax cuts directed at those who need it most. At a 10% tax rate, every $10,000 lift in the basic personal tax exemption for provincial income tax would provide $1000 per tax payer. Perhaps the question to be asked is whether people would feel they are getting more of their 'fair share' if they saw a royalty rate increase or an increase in the basic personal tax exemption. My guess it that most would take the tax benefit, but it would be interesting to ask the question. This exemption increase would be a direct benefit to those who claim they have not received enough from the growth that Alberta has experienced. The obvious question is how would the province pay for this? Why not take the flat rate above the basic exemption up to the point where it is the whole event becomes income neutral for the provincial treasury? I'm sure no one in the upper income brackets will be excited about paying more, but if this helps bring some more equality, there is the likelihood that many would put this in the category of a less worse scenario than what the pane has presented. The level of personal tax that I would pay would be significantly higher under a scenario such as this, however versus the proposed changes to the royalty regime, at least the benefit would go directly to those who need it and the costs to those who have to pay the bill would be more clear. |
| RRE6319 |
the most depressing part of this whole mess is the lost opportunity- the THEFT-of billions of dollars from Albertians, and the services- the schools, the daycares, the roads, the healthcare etc. etc. etc. that that money could have/SHOULD have provided. And all to satisfy the unlimited greed of big oil, and the the geed for power on the part of the conservativ politicians who turned a blind eye to this rip off. So what to do?? It would be nice to think the curent gov't would behave differently but given that its the same fat cats at the table that seems unlikly. But feel free to prove me wrong- and as far as worrying about big oil leaving the prov. maybe someone might like to notice that given they pay Less here then almost anywhere else where would they go??To somewhere that already charges more? and if they do so what- we need time to catch up and stablize instead of this crazy race to get it all at once and damn the infracture which can't support the growth. |
| RRE6320 |
To the Government of Alberta: Please heed the intelligent, well-researched, highly credible royalty review report by implementing the recommendations in full. That would be the least you can do given the years of too little royalties. The primary reason fo implement is not for the money, but to slow down the over-heated economy and the mad race to exploit Alberta's resources. Similarily we need clear policies on the use of land, air and water in this province. The lack of the same means no level playing field for oil and gas companies and a continuing deterioration of life for Alberta citizens. Government does not have to "interfere" in business, but it must set the parameters which in turn will do much for orderly development. |
| RRE6321 |
I feel raising the royalty rate would be a big mistake. The ab gov is already recieving substantial royalties and the industry is currently going into a slump. You fail to realize how many small ab companies are affected and not only in the oil industry. We lived or survived the 80's and then we had the rotten "eastern" government to blame. It would be a shame to have to do it all over again and blame our OWN government. We feel if the groceries on your table depended on the oil industry youi might think harder on this. |
| RRE6322 |
I believe that as a minimum the Alberta Government should implement all of the recommendations of the royalty review report. All of the posturing by companies needs to be listened to, but we need to keep in mind that there really isn't that many places for them to go were the royalties are lower. And most of those places are more politically unstable, or come with the risk of having their assets nationalized. |
| RRE6323 |
I don't work in the energy field, but I think that the gas companies spend a lot of money in the areas they work. If the royalties get too high, they will quit spending as much, local economies will suffer, people will lose their jobs nad who has gained? I would rather see a cap on the pump price of fuel. Sure it would be nice for the royalties to gp up, but I think it would make the oil companies cut back and we all would suffer. Don't let some think tank run the province. Intellectuals are not always smart. There is a difference. |
| RRE6324 |
I can understand that rising costs may make the government to go after more royalities from the energy sector, but I honestly believe that this move will bight them in the ass. The fallout from this will be astronomical. The energy sector is still by far the largest factor that spurs our economy, especially in the last few years. Alta. was based on agriculture but I believe that if the energy sector shuts down, the loss of jobs in every sector of our economy will happen. And when that happens the real estate and banking problems begin and that leads to more and more downward problems. And I can only think that the increase in revenue will only lessen in the long run. Thanks for listening. |
| RRE6325 |
An increase in royalties is not a good and I don't want it to happen. Please fight to stop an increase in royalties the oil companies would have to pay to the govt!!!!!!!! |
| RRE6326 |
The government should fully implement the recommendations of the Royalty Review. Alberta should be receiving the same financial compensation as the rest of the world. Any company who isnot willing to pay the world level royalties should leave. This should have happened long ago when recommended by government workers. |
| RRE6327 |
Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 08:46:21 DATE ENTERED {ts '2007-10-02 10:15:01'} |
| RRE6328 |
Mr. Stelmach...I urge you to implement the panel's recomendations in full. The rhetoric spewing from the industry is not unexpected....you'd sqeal like a pig too if your "free-ride" was threatened. Your hand picked panel did very thorough research and analysis and made logical, credible and thoughtful recomendations...which ought to be implemented.What was the point of the exercise if they are going to be ignored? Danny Williams proved that the major industry players can be "stared-down" and will come back to the table after a short cooling down period. The proposed royalty rates are fair and competitive to both the industry and all Albertans. Implement the recomendations and let's all move forward. Thankyou [Information Removed] |
| RRE6329 |
Hi, I belive that inreasing royalities in general will slow down overall economic activities in Alberta and on long run Albertans will have less and less benefits out of it. It is counterproductive especially now when energy is getting to be more and more expensive. Regards |
| RRE6330 |
I think accepting the royalty review is wrong. Thousands of Albertans (in rural Alberta) work in the oil patch and it would have a negative impact on these small towns that rely on the oilpatch to keep there heads above water. Thousands of oilpatch workers live in these small towns and if there is no work, thousands will leave. Big oil companies sure are making a profit but so is Alberta. Oil companies put out alot of money in these small towns more than the province (Encanna Arenas, fundraising, etc.) Sure City people want more money from Alberta but what about the rest of us whose livelyhood depends on it is the government going to subsidise these workers like they do the POOR farmers of Alberta??? |
| RRE6331 |
I strongly agree with the royalty report recommendations. The world value of Alberta's oil asset has risen dramatically through no effort on the part of the companies exploiting it. I believe it is unreasonable that such a windfall should go almost entirely to the exploiting companies, without all Alberta citizens benefiting directly from the depletion of our non renewable asset. Increased production does not reflect the value of the asset in current royalty take. If increased royalties cause a temporary slowdown of investment, it is the best thing that could happen to Alberta today and it will not be permanent! Please enact the recommendations. |
| RRE6332 |
I am a constituent of the [Information Removed]riding, my family and I live in [Information Removed] and I am very concerned for the near and the far future of Alberta should the recommendations of the Alberta Royalty Review Panel be followed. I am a native Albertan and have voted PC since I was eighteen (I am now [Information Removed]), but if the Royalty Review Panel's recommendations are followed by the present government my vote and support will be lost to you and your party. I will also endeavor to educate others regarding this potential colossal mistake being made in the name of a quick cash grab versus long term sustainability and credibility in the eyes of global business. Without a doubt, the tangible gain in royalties collected will be miniscule in respect to the inversely proportional downturn in investment, growth, international credibility and most of all the burden these recommendations will inflict onto loyal hard working Alberta citizens and businesses. Did this panel understand that the billions upon billons of dollars that the oil and gas industry has planned for present and future investments into this province will in a heart beat be moved to more attractive investments throughout North America and the world? Besides the investments and growth opportunities lost, I do hope that you and your government will also consider the immediate negative impact that these recommendations will inflict on hard working small businesses of Alberta. Hotels, restaurants, auto sales, manufacturing, welding, and thousands of spin-off oil and gas dependant companies and sadly magnitudes more employees will be immediately effected. Please reply back to me to let me know (and also the many others that I will be discussing this matter with) whether you agree with the panel's recommendations. What you and your government will be doing to ensure that this issue is examined from a more global far reaching perspective. Can you ensure us that the actual costs of business today and ever-changing market conditions that the oil and gas industry faces will be considered in the decisions that you will be voting on? MOST OF ALL - Please consider the smaller business owners, the employees, the support and spin-off businesses, and many industries depending on the oil and gas sector that have (pardon the pun) fueled the fire that created and still creates this great province and epitomizes the "Alberta Advantage". |
| RRE6333 |
I'm feeling very emotional right now and I just wanted to voice our concern with the proposed Royalty increases. It will kill Alberta's Economy! I don't know if you remember what it was like when the NEP came out in 1982 but my Husband and I lost our house I was out of work etc etc. At that time we felt the Federal government was not considering all aspects and I'm afraid that's how it feels again! I assume you know all the flaws in this report so I won't belabor it. Suffice to say even though it may be expedient to support this bill politically you would be doing a huge disfavor to the Albertan people. I laughed when the CBC was interviewing some field guy up in Ft. McMurray and his take on it was "yah look at all the money pouring in here and we should pay our fair share" without any understanding of how that works and why he has a job! I'm writing from work but I'm speaking as a concerned average Albertan. Thanks for your time. I'm extremely worried right now - I've never written a MLA or the Government - ever. [Information Removed] |
| RRE6334 |
Hi Ed Thank you for this opportunity to voice my opinion on oil and gas royalties. I have spendt my whole life in the oil and gas industry, in the marketing side of the busines. [Information Removed] And what I can tell you is this the large companies don't care about the future of this province and the future of my sons. They care only for their shareholders, as you are my CEO and I am a your shareholder look after my son's future. Make sure we collect enough royalties so we can ensure a future for our children. Do not bend to the threats the oil companies are making about shutting down if my 23 years has tought me anything is people will always find gas money. P.S. So far I am very impressed with your leadership of our province. Thank you[Information Removed] |
| RRE6335 |
I think the government must tread very carefully. The existing agreements must be grandfathered and honoured. The surcharge for not processing bitumen in Alberta must be dropped. Natural gas royalties should not be changed. Any oilsands royalty changes should be minor and staged - the companies there make long term plans with long term financial committments which produce jobs and taxes. Enacting the recommendations as proposed would be a serious mistake. |
| RRE6336 |
Where can I get a official copy of the oil and gas royalty review committee's report so I can read the facts and details for myself instead of the babble in the news headlines ? Thanks [Information Removed] Calgary, Alberta |
| RRE6337 |
If this goes though as written I believe that it is going to hurt every aspect of albertas economy, right down to the teens working at McDonalds. Sure there need to be changes but if the oil patch shuts down so does everything else. we do not want what happened in the 80's to happen again. |
| RRE6338 |
when will the final decision be released? |
| RRE6339 |
In the words of Ralph Klein: Don't Blink! We don't need to give our resources away. Slow it down and let's get more benefit out of them for Alberta. Our workers and province rather than multinationals and other country owned firms. When everything has been hastily riped out of the ground, who will be left holding the bag on cleaning up the worlds largest and growing holding basins of pollution? Let's think longterm rather than go off in all directions with no time for any real planning. Thanks... Does anyone really listen to theses? Lets hope so. |
| RRE6340 |
I am an [Information Removed]from [Information Removed]who came to Fort McMurray in 1979. I have been living here since then. I have seen lots of ups and down in this city. One thing we should remember that oil industry has created thousands of jobs all over Alberta and more are coming. These jobs create lot of revenue for both provincial and federal Govts. I think Alberta Govt. is getting good chunk of money in the form of royalities and taxes from the people employed there. I am of the opinion that Alberta Govt should leave the oil companies alone and discard recommendations in the royalty reveue. Thank you for asking for input, regards, [Information Removed] |
| RRE6341 |
To Whom It May Concern, I am concerned about the impact of the changes outlined by the Alberta Royalty Review Panel. I am not against increasing the government’s share of revenue created by the oil and gas industry; however I feel the current recommended increase is too drastic. I am afraid an immediate increase of 20% will hurt the oil and gas industry. If the government finds it is time for an increase in royalties, then increase should be implemented slowly. I suggest a 2.5% increase immediately and another 7.5% increase over the next 3 years. A plan that increases “Albertans share” should not hurt the industry that contributes so much to the booming Albertan economy. This industry provides employment to many Albertans. If implementing an immediate 20% increase in revenue causes the loss of jobs for Albertans will this implementation be giving anything back to Albertans? As a new graduate of the University of Calgary I fear the loss of my own job if this recommendation goes through as worded. Any increase should be done incrementally allowing all Albertans in to benefit. Thank-you for allowing me to voice my concerns, Sincerely An Albertan |
| RRE6342 |
I am concerned that the provincial government is going to implement the changes recommended by the Royalty Review Panel. I believe that the conclusions reached by the Panel are based on incorrect assumptions and that they underestimate the effect that their implementation will have on Alberta's economy. Many of the energy producers in Alberta have stated that there is some room for an increase in royalties but that the recommendations of the panel are far too punitive. I believe that this is the case. Alberta is already feeling the effects of a reduced Natural Gas price through layoffs and business foreclosures. The Panel recommendations would surely amplify the conditions which are contributing to this downturn. The Panel recommendations will result in reduced investment in our province, layoffs and a slowdown of the economy. I do not want my provincial government to implement the changes recommended by the Royalty Review Panel. Please express my feelings to Premier Stelmach and Energy Minister Knight. Regards, [Information Removed] |
| RRE6343 |
The changes the current government is proposing will put 20,000 people out of work. All it talks about is oil. What about gas???...gas prices are half what they were 16 months ago and lots of us spend our lives trying to find gas. We need a DROP in gas royalties. The author of the Royalty Review Report has very little experince in the sector he reviewed..how stupid. Wake up. we aren't alll farmers..the non-rural electorate will not forget this proposed economic fiasco. |
| RRE6344 |
Why would you even discuss this in a time when we have just been hit with the income trust bomb, a surging dollar, and multi-year lows on natural gas stocks along with weak NG prices. You should do this when stocks are at their highs and NG prices have recovered. Take RRZ it is now in the $4 dollar range down from a high of over $20. As an Albertan I invest in Alberta. Now with government interference you are damaging my investments. With your multibillion surpluses you are now getting greedy. This has been a big mistake for the PC party. [Information Removed] |
| RRE6345 |
I would like to support enforcement of the current royalty rates, slight rate adjustment where required, but not the wholesale rate increase as proposed. The oil companies invest millions in our province keeping thousands of Albertans working, even more running service companies and all of us enjoying the economic environment we have. |
| RRE6346 |
Do you Think Alberta's rich? You should see Norway's bank account. I request your Minister and the Cabinet to read the following article on http://www.cbc.ca/news/background/realitycheck/sheppard/20060324.html These energy compnaies are milking us, and one day the Albertans will wake up knowing they have nothing. |
| RRE6347 |
All I have to say is that the revenue of the oil extracted out of Alberta belong to the people, and by the people I mean the rich and the poor, not just the rich! I think it is outrageous the amount of money that oil executives make within a year. Why does a government like Canada allow oil executies to get away with such drastic amount of money. It's corrupt and it's not right. Low-income and working poor Albertans are not enjoying the fruits of the oil companies. I think it's about time that people enjoy what rightfully belong to the "people." |
| RRE6348 |
The political stability that makes Alberta so attractive for oil companies has to have a price, doesn't it? If companies are willing to risk investments in unstable countries, with the possibility of losing their entire investment due to war or political moves made by the govenments of those countries, surely they should be willing to pay higher royalties for a long-term, utterly stable source of oil with a highly-educated and able workforce. Big oil wants a Range Rover for the price of a Civic. They can have the Range Rover, but at a fair price. |
| RRE6349 |
It's the best report I have ever seen. Implement the recommendations right away. Thanks |
| RRE6350 |
I have to question how reasonable it is to make decisions on the royalty rate when the data used by the royalty panel was inaccurate (admittedly by some of the panel). In my opinion the Government must ensure their decisions are based on accurate information/data and not influenced by agendas of special interest groups. These decisions need to reflect what the impact will be on Alberta. I personally disagree with the panel and believe that this has to be a decision based on accurate data that reflects the current business environment. There has to be compromise from what the report recommends. Royalty increases should be phased in and based on increasing oil and gas prices. Agreements previous to the report recommendations should be honored. |
| RRE6351 |
Hello: I would be totally satisfied to see the royalties remain as they are. BUT. It irritates me to no end to see all of our petroleum products go south for further refining and loss of profit. Why can't our government invest in the private sector? The companies that have invested in the oil sands have made money and will continue to do so. I'm not talking guaranteed loans or Crown Corporations. Investing! Showing financial interest with the object of making a reasonable profit on that investment. If Suncor, Syncrude and all of the other players in the oil and gas sector want the royalty structure to remain as it is then there has to be a trade off. That should be investment in value added products in Alberta. And this should occur now! It's a Canadian resource and the profits should be made on every possible portion of that resource. I think most Albertans would be agreeable to a plan of this type. ASK Us! Stop assuming that government knows whats best for us. It's arrogant and defeats democracy. [Information Removed] . |
| RRE6352 |
It is astounding that the oil companies are complaining about the recommendations in the Royalty Review report. We should make the oil companies aware that these recommendations are actually much less than they should be. The Government of Alberta needs to wake up and realize that there is much more that we could and should ask for and that Albertans are entitled to as the ultimate resource owners. A base royalty rate of 33% is a fraction of what other oil producing countries such as Norway and Venezuela obtain, which is closer to around 80%. Why are we so timid? Just imagine what that extra money could do for eduction, health care, infrastructure, etc. And what about incremental royalties and taxes so that as the profits of oil companies go up, so does our share of the pie. Finally, let's reassess the 1% royalty until construction expenses are paid off. What a sweet deal! But in reality it doesn't make any economic sense. Have you ever heard of a bank only charging 1% interest on loans to small business owners until their start up costs were paid off? Of course not, let's get real. The Royalty Review Report is a great start but it is wholely insufficient. Let's be strong, let's get what this province and the people are entitled to. Thank You. |
| RRE6353 |
All over the world, governments and thugs are confiscating the hard earned investments of people like me. I hoped Canada was a more civilized country that one that would behave like that. If you don't back off and keep you greedy hands off my investment, I, and many others, will disinvest from all Canadian companies. |
| RRE6354 |
Experts agree that conventional oil & natural gas reserves are declining in the WSB and significant pools are increasingly difficult to find. I feel that in order to remain competitive and innovative in this sector of the energy industry we should make minor increases of 3% phased in over the next 2 or 3 years. Give the companies time to adjust and hope they remain vibrant and viable in the global market. |
| RRE6355 |
Mr. Stelmach, I don't normally vote for your party, however, if you and yourcabinet remain steadfast and institute this long overdue royalty increase you have a house full of votes. The greedy oil industry has had it's way with us for far too long.[Information Removed] |
| RRE6356 |
I shudder to think of the number of homeless people who may have found shelter, the number of students who would have benefitted, the number of desperate people needing medical attention and so on and so one who could have been helped if only our corrupt and misguided government officials had claimed OUR fair share of oil royalities over the past few years. |
| RRE6357 |
Is the Government of Alberta ready to explain to all Alberta residents why they will no longer be able to fund many of the projects (i.e. hospitals, roads, schools, health) since introducing the new royalty structure will decrease the amount of drilling and production. Oil & Gas companies will not stop drilling, but many projects that were economic will no longer fit the criteria. Much of the land that has drillable locations using new technology will no longer be economic under the new royalty regime and therefore no drilling, no production, no royalty payments. Since this land was already purchased by the Oil & Gas Company it will have any production until prices are high enough to allow for drilling with this new royalty structure to make it viable and/or the service companies also bring their prices inline to make this viable. As for Enbridge agreeing that this is a good idea, not sure what their stand will be after committments to use their pipelines are finished and oil & gas companies ship product through a different company. I agree that the royalty payments can be increased, but this should be a collaborative effort that both parties give and take a little. If the province of Alberta is looking for more money has anyone thought about looking into the profits of the banks? How much money do they contribute to the AB government and the number of employees paying both provincial and city taxes, etc. and the how many jobs does the bank create that are directly associated with their business. I have definitely seen their profits grow and no one seems to think we pay too much for service charges since half the transactions are more are performed by individuals and machines. Let us not also forget that in the last few years a lot of new laws and demands have been made on the oil and gas compaines to ensure that they are transparent as to no allow for anymore fraudelent actions which cost more. |
| RRE6358 |
It's understandable why you would want to consider raising the royalties on Alberta oil and gas production and there very likely is some room to do so, even now with natural gas prices having slipped back to a difficult level for oil and gas companies to continue finding and producing it economically. However, I'm convinced that if you were to implement all of the suggestions made by the Royalty Review panel that you would seriously and possibly even permanently harm the industry in Alberta and in fact quickly lead to a lower overall goverment take from the industry rather than a higher one, including land sale bonuses and lease rentals too. I also feel that to not grandfather the royalty rate on existing and approved/building oilsands projects is absolutely wrong, unfair and definately un-Albertan. That type of behaviour belongs to and is typical of dictators on other continents - not here. Overdoing the increases will 'kill the goose' for sure right now. You would certainly further damage the confidence of current and would-be investors in our industry companies. A reasonable compromise between the existing royalty regime and the extreme scenarios recommended in the review report is the only fair and smart course of action for you to take - in my view. I work in the oilpatch and I'm very proud of it; we are not doing anything wrong although it sure sounds like it to hear the media carry on lately. I like my job and I'd really like to keep it for a while longer. Thanks, [Information Removed] |
| RRE6359 |
The proposed increase in royalties, or even the thought of increased royalties, is going to cost me my house. And my mini-van And jeopardize my 2 year old daughters future. Thanks for this. Thanks for forcing me to re-finance my house so it doesn't get taken from me while I sit at the house waiting for a phone call telling me I can get back to the job I love. Quit thinking of how fat your wallets are going to get and think of the roughnecks, derrickhands, motormen, drillers and the rest of the 'patch' workers that are starving because of this. There are thousands of families who don't know if the lights are going to be on tomorrow because the oil companies won't do ANYTHING until this royalty review crap clears up. I hope you got a big front yard, 'cause me and my crew and our families are going to come an camp in your front yard. |
| RRE6360 |
Dear Premier Stelmach and Conservative caucus, I write to urge you to implement the report on oil and gas royalties in its entirety. I find little merit in the strident responses from people in the oil and gas industry, and in principle, they are the least reliable source of comment as they have a strong vested interest for minimizing royalties paid and maximizing their profit however possible. At the outset, the committee appointed to look into royalties was arguably one that had a business bias, and even included some involved with the oil/gas industry. Hence one might expect that in fact even greater increases in royalty payments might have been produced by a more balanced committee. I certainly recommend that you not succomb to some comprise such as grand-fathering some companies or projects. If indeed there is an element of truth to the notion that investment into oil sands and conventional reserves slows down, that would be a blessing as there has been all to great a rush to exploit the resources which has led to the many problems resulting from the current overheated economy. Please do the right thing and let Albertans catch up to the rest of the world by gaining at least some of the value due to them from the natural resources they own. Thank you for your attention [Information Removed] Edmonton AB |
| RRE6361 |
Good afternoon, I would like to say that if this royalty review is not voted against, Alberta is going to suffer greatly. Think about all of the jobs that will be lost due to cutbacks from all of the companies that provide a service. The mere thought of all of those poor families that depend on the paychecks from the fathers & mothers waiting in line for thier imployment insurance cheques is very sad. We have a great province here that basically revolves around oil & gas, and if the government does approve the new royalty rates, we will be shooting our selves in the foot (figuratively speaking). What about the sheer loss of income tax that will not be collected by the Govt. from all of the workers that will be out of work. Also what about the international investors that will be scared off from investing thier hard earned money in companies that develop the industry, thus hurting us evern more. It seems like everytime that I turn around there is another misinformed official (stelmach) opening his mouth and creating a panic that directly effects some and will eventually effect everyone. Whether it is in the stock market or just another family income that is now on shaky ground. I live in a small town in Alberta called Olds, and I draw 100% of my income from an oil & gas company. In the past years, I have not seen any improvements in my town. The roads are still very run down and taxes are still the same amount. With a 8 billion plus surplus last year, and now sucking another 2 billion from a life blood industry, how much of that is going to find its way to the "little guy" that pays his taxes but gets nothing in return.?? Also it would be very easy for these Oil & Gas companies to move to another province or country to recreate thier business, and the profit margin will be even farther in the negative side than anyone thought was possible. As a resident of Alberta, and a patriot of our country I ask of you to please rethink your plan and think before you act because the ripple effect of one (newly appointed) government official opening his mouth is felt far and wide. |
| RRE6362 |
As a proffessional that works in the Oil & Gas Industry and deal with budgets and the economic viabilty of these projects, I am very concerned that the Alberta Government is not considering the insight that all stakeholders bring to this subject, While I fully support that the Alberta people should receive a fair percentage for Royalties I'm not convinced that your current report has determined what is fair. Costs for Alberta based projects have escalated considerably over the past 4 years and along with a higher Canadian Dollar will leave a number of projects at risk of being shelved. After living and luckily working through the recession of the 1980's I am very concerned the Alberta Governmenmt may be on the verge of causing a made in Alberta recession. Please re evaluate the Report on Royalties and as an absolute minimum include all stake holders prior to making a decision. |
| RRE6363 |
The extra cash from the proposed new royalty is a wishful thinking. I would say Alberta would receive LESS money from the new (higher) royalty structure because operators will: 1: reduce drilling, pipeline tie-in, facility construction because big chunk of the projects no longer meet economic hurdlle. 2. reduce P&NG purchase 3: lower prices paid on lands 4: generally less spin off activities (hotels, restaurants, auto sales, home sales/renovation, etc) which mean lower income tax paid across the board of Alberta's economies. 5. more layoffs which translate to less income tax 6. divert investment into BC, Sask, NWT, Man. and Ont. instead The gas sector is already in a recession. Just look at gas and service companies share price. The review panel has a tunnel vision and a set position to raise royalty even before the start of the review. Regarding to the recent informal poll that 80% albertans favor higher royalty that is because 80% of people aren't keen in understanding of the big economic picture. It is an undeniable fact that voters tend to have a 'give me give me give me' atitude even though they never have so good. Yup, don't fix something that ain't broken. |
| RRE6364 |
I don't think that the review accurately reflects the amount of money that it costs to drill the deep high rate gas well or the risk. Does the review take into consideration the risk of capital? Little risk with heavy oil as you know. |
| RRE6365 |
Please do not let the corporations bully the decision. I know everyone is worried about the affect on the economy if the companies follow through on their threats/black mail and cut back on the work. I think we could use a slow down in the oil field in Alberta. I find it very frustrating when someone such as CNRL is saying they are going to cut back as on their project they are doing in northern Alberta they have less than 20% Albertans on their project. These projects are going ahead too fast and causing our housing/living prices to be be unrealistic. The average Albertan can't afford to live in Alberta. People come in from out of country or province, drive our cost of living up, take the money they made, and leave. It is funny how all of these corporations are taking out big ads to say they are concerned about us in Alberta. Their actions speak louder than words and for someone like myself who has worked in this industry for 30 years I know they are only concerned about the money they make. Again I emphasize please made the right decision. |
| RRE6366 |
I think you guys are crazy! If you want to find more people to work at [Information Removed], then raise the royalties because there will be alot of the oil and gas workers looking for jobs. Once this happens the government will be the biggest home owner in the province because we will not be able to afford the homes we live in! |
| RRE6367 |
The Government of Alberta picked credible people to conduct the royalty review. I fully support implemeting all of the recommendations of the panel. I would urge Premier STELMACH not to be intimadated by the oil and gas industry and implement all of the recommendations of the royalty review panel. [Information Removed] |
| RRE6368 |
Why would the government of alberta even consider this move? The private sector is doing a fantastic job of distributing the oil and gas revenues to alllow all Albertans to prosper. As it stands - the government spends an inordinate amount of time and money pontificating over how best to spend the royalty money. It is not broken - there are many things that are, fix them not this. |
| RRE6369 |
Obviously, Industry and Government are not on the same page on this issue. Why appoint a panel with no oil and gas expertise to decide this issue with no input from Industry? I am concerned that this new Conservative Government is going to destroy the livelyhoods of many Albertans, just as was done by the Liberals with the NEP in the 1980s. I thought the Conservatives were on our side!? Get together with Industry and work this out to everyones benefit. |
| RRE6370 |
A more appropriate portion of the royalties for the province is long overdue. As a native albertan of a number of years I do appreciate and understand what the industry has done for our province. It is invaluble but it comes at a cost and it is time that the industry place some of their record profits back into the hands of albertans. If we slow the industry with higher royalties, so be it. It is moving at too fast of a pace as it is, instead of giving the wealth to those from other countries that are here working I would like to see us slow down and allow the spoils to last longer for the future of those that make the province home. |
| RRE6371 |
Dear Premier Stelmach, I am an Albertan, a mother, a grandmother and a great grandmother. I am very concerned about the future of our great province. Recent news items related to how your government is handling its responsibilities related to the stewardship of resources owned by Albertans have caused me to write this letter. I strongly believe that the recommendations of the Royalty Review Panel, as supported by the Auditor General's report, should be fully implemented. The resouces belong to citizens of Alberta and the threats by oil companies should not be heeded. Please be strong in your conviction and stand up for Albertans. [Information Removed] |
| RRE6372 |
Please, Primier Ed increase the royalty the oil companies are paying. They have for a long time benefited from Alberta's generous royalty rates.Therefore, it is high time they get an increase in their rent. Albertans own this resource. Albertans must benefit from it. Besides, all other oil producing countries are charging the oil companies much higher rent than Alberta. Increase the the rent Sir to the Panel's recommended level. |
| RRE6373 |
Yes increase the royalties. Alberta needs extensive infrastructure improvement to continue the rapid growth. using the royalties to cool and slow down the rate of growth on the Albertan oilpatch would be helpful and allow the province to catch up. With the increase in oil prices even a 20% hike (10% would be more realistic) would only cause a slow down in the rate of growth not a decline |
| RRE6374 |
I am objecting to the part of the Royalty Review that suggests that freehold mineral taxes be raised by almost 100%. Industry is dismayed by a 20% increase, yet freeholders are denied the ear of government. My grandfather bought the freehold mineral holdings that i now share. They were not given to my family but bought and paid for. [Information Removed] |
| RRE6375 |
if this royality goes thru alberta will be back in debt again because oil companies will pull out and people will be out of jobs . many companies are already starting to feel the hurt on their pocketbooks and there is a start of people moving away . open your eyes lets get working so people are happy , people are not trusting this government right at this moment . i started a company not even a year ago and iam ready to fold because work is slowed down to a crawl , i work in the oilfields myself and people are very scared wondering when the money is coming and how to pay there next bill . so leave it alone or get various oil producers to set up a panel to resovle this very soon like NOW before its to late. |
| RRE6376 |
I strongly believe in increasingly the royalities Albertans should receive. This resource belongs to the people of Alberta and it is unfair that a few select individuals who own the companies which extract the oil, receive a majority of the revenue. Alberta is in crisis. Indeed we are a wealthy province experiencing a boom, but we must also look to address our social welfare concerns. Housing, homelessness, affordable quality of life, inflation, child welfare and so on are severely compromised. We cannot claim to be a wealthy province, a leader within our nation, if we have such devastating social problems. I also believe that we should not cowar to any threats made by the oil companies that they will leave Alberta and/or cut jobs and lay off workers. If these companies were to leave they would go to provinces/countries which have higher royality rates than Alberta. And we would not have to wait long for another company to want to take their place. The oil is within our province. Any company threatening to leave cannot take the oil with them. The oil belongs to Albertans. And if jobs are cut within these companies, there are plenty of other vacancies across Alberta - many companies are short workers and one could predict that those laid off would be able to find work elsewhere. The bottom line is that we must raise the royalities. We must receive a greater share of the revenues. We must receive a FAIR share of the revenues put into social welfare programs. This resource belongs to the people of Alberta and the people of Alberta are in need. A select percentage of our population is benefiting from the revenue and a select percentage of our population is not in need of social welfare programs. But the majority of Albertans are in need and we must lead by example and with this increase, the government will be speaking loudly and clearly that ALL Albertans matter. That is the kind of government I will support. |
| RRE6377 |
I feel the changes suggested are far too drastic and unfair to implement all at once if done at all. For that matter I would view natural gas royalties as being too high already. Would be far more interested in seeing all bitumen treated within the province and more end stage products being made here by Albertans or Canadians. Would also like to see a moratorium placed on oil sand development, thus allowing infrastructure and the labor imbalance time to catch up, this would also serve to extend the life of our reserves allowing us to capture higher prices. |
| RRE6378 |
We need to be fair yet collect a reasonable return on our resources. Don't be intimidated by industry. Theyb wwill never gladly accept paying more. The important question is: what rates are other governments collecting? The latest info from the A-G suggests we are not collecting 100% of the funds using the current rates. Perhaps we should start there. [Information Removed] |
| RRE6379 |
I am just curious to know if the gov't could in fact put a price on just how much the oil companies invest in our province? When I am travelling to sporting events around the province with my five children or when I have one of them to a hospital, or if I have them out and about at any park; I am quite often faced with the phrase" gratefully donated by ....Encana, or Shell or Enmax" etc. Can any of us put a price tag on these "royalties"? I have lived in Alberta for 14 years and I am telling you without a doubt that I would not still be here if it were not for the "oil patch" I am wondering if our Social programs will be ready for the people who's lives may be impacted by a cutback in the oil field? I am convinced we are blessed to live in the best province in Canada....let's all work to keep it that way |
| RRE6380 |
I keep hearing about how cost have escalated in the oil patch. No doubt this was true in 2006. But now I read that oil and gas service companies are suffering from reduced demand. Surely there must be some bargains out there for the producers who are moving ahead with projects? The petroleum industry is attacking the royalty review on the basis that it has got its numbers wrong. Are they themselves cherry picking their numbers? Surely it must cost less to drill a well today than it did a year ago. If not, something is wrong with they way captialism works in the oilpatch. |
| RRE6381 |
The province of Alberta has been built on our resources. It is critical that we work with industry to maximize the value of that resource, however simply increasing the royalty on that resource is a lazy and destructive approach. The development of an approach that ensures that both parties share in the good times as well as the bad is the best approach. This includes ensuring a fair royalty regime that achieves that stated goal, but also a regulatory structure that ensures sustainable development and maximization of our natural resources. Technologies exist to increase the ultimate recovery of existing resources as well as to reach previously unreachable resources. However, these technologies are in many cases uneconomic today, certainly raising royalties isn't going to improve that situation. We need to be very careful how we tread in the coming weeks, not only do we not want to kill the golden goose of industry activity, we don't want to dissuade those who would invest in the technology to achieve those incremental increases in recoverable reserves. In short, the current system has worked very well in attract investment when times were good and maintain sufficient investment during periods of low commodity price. If you look around the world and see the incredible activity levels in oil and gas exploration and development, then spend a few days in Alberta - to experience the genuine fear we have, its hard to see how it is so cheap to operate here. If it was truly such an affordable investment climate, why are operators directing their capital to operations in other jurisdictions. [Information Removed] has been steadily decreasing its investment in Canada for the last 18-24 months, long before the discussion of increasing royalties began - imagine where things will go from here. As for the surveys that indicate there is a majority of Albertans that feel increasing royalties is a good idea, I think it is important for the government to educate them on how much of their livelihood exists because of the oil and gas industry. Much of this province has enjoyed a retail boom as a result of the increased home equity available to Albertan homeowners. What has driven that increased equity - it certainly isn't the technology industry, or forestry, or manufacturing. Without an active oil and gas industry we as Albertans are all in trouble. Simply put, leave the royalties alone today and work with oilsand producers to ensure that Alberta's interests are protected in the long term. |
| RRE6382 |
I feel that the government is poised to make a grave mistake if it proceeds with the royalty review report as it stands today. More study is required to make a fair decision for all Albertans. It would be very dictiorial if it were to levy such a huge increase all at one timeI feel that the government is poised to make a grave mistake if it implements the recommendation of the Royalty Review as it stands today. More study is required to make a fair decision for all Albertans. It would very dictatorial to levy such a big increase all at one time. I don’t think anybody would like to pay 20% more taxes all at one time. It should be a gradual increase. When wages are settle for the average worker it is like maybe 10% over three years. Why is the government so greedy? What are you going to do for Albertans once you have these extra dollars? Will the government of Alberta then reduce the taxes we pay at the pump? There must be a more balanced approach. [Information Removed] |
| RRE6383 |
My name is [Information Removed]. I am the area manager of [Information Removed]in Grande Prairie, Alberta. I think that the Alberta Government needs to evaluate the royalty review. How much money does this Goverenment need to pile away in thier pocket? I watch the local Edmonton news every night that I can. I have seen on numerous occassions the surplus of the province of Alberta. Alberta is one of the richest in Canada. This is going to take food off the plate of my family and many more family's. I am not saying that an increase is not out of the question. But taking that much is. Maybe the Preimer of Alberta should take a trip up to Grande Praire and take a look at the state of the Oilpach. There is approximittly 100+ service rigs racked now. I don't want to think about what will happen if this goes through. I have voted Conservitive for the last 16 years. I'll tell you one thing, I think this province needs a change. I will not be voting Conservitive next time if this so called MONEY GRAB goes through. The Government of Alberta has obviously been spoiled for to long. Now they want more we should run you all off and start all over. |
| RRE6384 |
It is time that the Alberta Government step up to the plate and "manage" Albertas resourses. I hear the Premier say that his government is not in the business of telling business what to do. Well as it has turned out, if Albertans do not "manage" their assets do you think big business will not take advantage and exploit what they can. They have already done so under the CONSERVATIVE Government. Please ! - Implement all the recomandations of the report !!!! - Have a back bone and stand up to big oil ... we have not seen the CONSERVATIVE Government do this in the past. - If the oil companies slow their expansions down, this will likely help Albertans and our communities manage in a province where inflation is over 7% and labour can not be found. - Slowing the Boom down will ensure there is oil and oil related jobs for our children and their children. - Allow Albertans to upgrade the bituman before it leaves the province ( if the oil sands slow down and Albertans refine the bituman in province, this should keep the entire labour sector and economy going strong (DO NOT ship raw bituman to the U.S) Klien made that THIS MAJOR MISTAKE with the Aliance Pipeline resulting in a deminishing petrochemical industry. - Remmember, world oil supplies are depleteing very quickly, the Alberta oil that is in the ground has been there for millions of years and will only be worth more in the future. - We also need a review on how the money we receive from these royalties will be utilized and saved and where we are at with the HERITAGE fund. I have talked to MANY people that feel that the way I have described in the above points and it would be in the current governments political interests to act quickly and implement the review pannels recomendations as they were laid out. Election time is quickly approaching and we are watching and voting on the way this issue is handled. |
| RRE6385 |
I was wondering if the report was inline with what other provinces were doing with there royalty. I notice Danny Williams negotiate his province a good deal and Saskatchewan I was wondering what there structure was like since you have not heard a complaint about royalties in that province. The only issue I have with the current system is its almost like the citizens of the province do not share in the wealth and they are suppose to own the oil. [Information Removed] |
| RRE6386 |
I think we should increase the royalty rate becuase we currently have an econcomic growth rate that is neither desireable nor sustainable. Slowing the economy down would be good for Albertans and the environment. |
| RRE6387 |
Panels recommendations will result in significant job losses, severely impact current and future development and ultimately negatively affect Alberta's and Canada's economies |
| RRE6388 |
I think the recommendations of the Royaly Review Report should be adopted in full. The resources are finite and the environment will take a long, long time to recover from the damage. The money should go toward addressing the social problems that the expanded energy development has created. The fact that the government failed to collect the full royalties in the past indicates to me that oil companies were getting a free ride, no doubt because the politicians did not want to collect the money from their friends. The money from energy developments is all well and fine but the money will be useless once we have water shortages, a significantly warmer climate and all the other environmental destruction that accompanies the developments. |
| RRE6389 |
Dear Hon Premier Stelmach, I am writing in response to the findings of your royalty review and the AG report. Mr Stelmach, I am disgusted at the sham of a government Albertans have received in the past 10 years. If Mr Klein had any sort of clue about how to run this province, then these large oil conglomerates would not be acting like they have a gun to your head. I take exception to the hostile posturing these entities are relaying in the media, and if they were paying their fair share of taxes, the provincial debt would have been paid off even sooner. For 12 years I've been paying $44/mo to Alberta Healthcare and what does it cover? Nothing. Basic emergency services. Doesn't even cover the ambulance ride, if necessary. Last time I checked, "free and effective healthcare" was entrenched in the Canadian Charter of Rights and Freedoms. Mr Stelmach, my question is simple: Why do Albertans pay for healthcare when it is in clear violation of the Constitution? Why does this resource rich region not contribute to the state, that provides their secure workforce? How long are you going to continue to [Expletive] me? Sincerely, [Information Removed] |
| RRE6390 |
would like to add my voice to those of other ordinary Albertans in outrage over the ‘findings’ of the Royalty panel. First, I want to make it clear that I believe there is room for changes in our current royalty structure. However there clearly is an agenda here – just look at the title of the report- ‘Our Fair Share’ - does that sound like the findings of an objective group of individuals? I also strongly condemn how the message has been spun so as to make the public believe that the new structure is actually better for conventional oil and gas (‘87% of gas wells will see a lower royalty’) – those types of statements lead people to a very wrong conclusion and lead me to question again the impartiality of the panel. In my position with a start up natural gas company, I can tell you the new royalty proposal on natural gas will make most of our current projects in NE shallow gas uneconomic. By that I mean NEGATIVE rates of return. If you are interested in seeing our detailed economic calculations, based on real, current data, I will gladly provide them to you. I applaud your government on at least being wise enough to take time to consult before implementation. I fail to see the value in implementing changes that will have the deepest impact on the rural communities of Alberta – Premier Stelmach’s political base. Our premier should not bow to the pressure to align himself with those who have characterized the industry as a ‘public enemy’. If nothing else please expose yourself to the facts and investigate the flaws in the panels data. Regards [Information Removed] |
| RRE6391 |
We need to: 1. have industry buy-in to avoid an economic melt down; and 2. restore investor confidence, which has ben unnecessarily shaken; and 3. since most royalties come from conventional oil and gas, not increase royalties on maginal wells, which will drive thousands of wells below the economic threshold. |
| RRE6392 |
As a government you should be far more concerned about the real threat of not getting re-elected if the panel's recomendations are not implemented in full, versus the oil company's fake threats. |
| RRE6393 |
Look at the big picture ! The overall effect on the provincial revenue by increase of royalty may be more than offset by the slowdown of tax revenue. In addition, it will give a bad reputation to the business community. |
| RRE6394 |
I urge the Premier to fully implement the recommendations of the Royalty Review. Albertans deserve to receive the full benefits of their resources as do the citizens of Texas, Alaska and Norway, for example. When stood up to, the oil companies always threaten to leave. In all these jurisdictions, this did not happen. Besides, where would they go, Venezuela? And if they did leave, others would come to take their place knowing there is no more stable place in the world in which to do business. There may be some short term pain, but in the long term, Albertans will be better of. Stare them down Ed and do what is right for Albertans! |
| RRE6395 |
My 46 year old husband is just completing the welder apprenticeship program. With a family to support this has been a huge step and creates stress for all us but we felt that the move was a good one, particularly given the strength of the economy and the demand for welders. It seems that the royalty review has created a great deal of uncertainty in the Alberta economy as the oil and gas sector and government "bicker" about this issue. The jobs are no longer so easy to find as companies hold off making decisions until they know what the government's move will be. You may be discussing these issues at high levels but please remember "the little guy" who gets battered by the shifting tide. The high cost of living in Alberta and uncertainty about job prospects is making us seriously reflect upon whether we should stay or move on to more affordable pastures. You really need to decide what you are going to do and let everyone get on with trying to make ends meet. |
| RRE6396 |
The Royal Review Report is just plain wrong. It is not based on current data instead based from 2005. Since then many changes have occurred. In an already struglling industry at this point, the extra 18% would cripple the Alberta and perhaps Canadian Economy. The report's F& D costs are way too low. PEOPLE HAVE TO REMEMBER THAT THE ROYALTIES TO THE GOVERNMENT DO NOT PAY THE WAGES,SMALL BUSINESS OWNERS DO. If the goes through thousands of people will be jobless, in an already slowed up industry which is already running near a 5 year low. Thanks for your time AND USE YOUR HEADS |
| RRE6397 |
Not a good idea, I think it will drastically affect the Oil patch. needs more research! Careful what you accomplish! |
| RRE6398 |
Why are Municipal taxes not included in your calculations? It is ridiculous to say that should be considered as a cost of operations rather than a tax. Municipalities can collect it under the guise of 'road maintenance' but can use it wherever they see fit. |
| RRE6399 |
Yes- Albertans need our fair share of oil and gas proceeds. And yes- the government should see that we get it. I hope the government can see past royalties and recognize the indirect benefits all Albertans already gain (infrastructure, strong economy etc.). Any change in the royalties should be made carefully with the feedback of industry taken seriously. Some of our largest investors are global operators and if we make it uneconomical to produce here, they’ll go else where. Then we’ll have a real mess, and it will be our own fault this time. |
| RRE6400 |
this is going to kill the oil & gas industry in Alberta and I believe alot of people will be looking to Saskatchewan for work in the future. |
| RRE6401 |
In my opinion the increase in royalties may have a negative effect on Alberta economy. Please excersise caution with any significant increase in the cost of the oil or gas production. We have to remember that there is more oil and gas under the sea bed then in Alberta and it is just a matter of operating cost to get this oil and gas to the surface. |
| RRE6402 |
Scary, for me and my family, all my work is on hold until this is settled and by the time it is it may be to late for the winter anyway, do something soon and protect our industry. Royalty rewards are not always direct cash in the coffers, we benifit in many ways, Please dont stop the Alberta advantage because it is real, look at any other province, i read a story about canada,s good fisical standing and it said that we would be in a resession with out Alberta,s grouth. Thank you [Information Removed] |
| RRE6403 |
I am writing to you as a concerned Albertan. It is not my normal course to express my views on an issue but I feel that the potential impact of the Royalty review on Alberta's future and that of my children is so significant I cannot remain silent. The oil and gas business is one in which I have been involved for 29 years during that time I have worked on just about every continent of the world and have experienced many different approaches to resource development. On returning to Canada 4 years ago I was both proud and encouraged that the province was so vibrant and to see such a mature basin creating so many opportunities and so much excitement for the future and the future generations of Albertans. I was first exposed to the Alberta suffering from the unexpected effects of the NEP and ultimately had to pursue a career internationally to provide job security. I have looked at the findings of the report and was dissappointed in the quality of the analysis and the lack of awareness of business realities facing the [Information Removed]. Industry has proven to be a great innovator and risk taker that has, much like the ATB advert, created value where most would have seen none. I have been lucky enough to be part of a number of these initiatives and built business's for [Information Removed] created out of innovation and risk taking. Unfortunately I see a real potential that a combination of low realized gas price and royalty changes will mean that the formative projects we are currently striving to fund will indeed be stopped. As gas generates such a large component of Albertas revenue base and the unconventional or deep foothills reserves are so critical to maintaining the provinces gas production and associated revenue stream anything that could interupt investment should be considered with great caution. I feel comfortable saying that the industry is open to constructive dialouge around royalty modifications and that some proposals will be forthcoming in a manner that is intended to be constructive. I ask you to be open to the thought that there is another way that can be created where innovation and risk taking is maintained and the unintended consequences of policy (as happened with the NEP) does not occur. I would like my children to be able to create a long-term future in the province. Lets jointly do the right thing Best Regards [Information Removed] |
| RRE6404 |
Any decision making must be established on the hard data, instead of assumptions, with a scientific attitude. I strongly suggest that our government board objectively and carefully review the data produced from the Panel’s, for the sake of economically sustainable development in Canada, in particular to Alberta. We are in the 21st century today, and even some of the communist governments today have realized the importance of economically sustainable development, learning the lessons from the past, due to failure to respect facts when they made the significant decisions to their economic strategy. |
| RRE6405 |
There is one major flaw in the proposed formula for royalty rate. It is based solely on price and productivity of the well, with no allowance for what capital investment was required in order to obtain that well. Generally speaking E&P companies will not drill for deep, expensive reservoirs if the expected productivity per well is low. They only way they can recoupe their investment on these expensive wells is with high productivity wells. So is it fair, for example, to take a 50% royalty on [Information Removed] production on our [Information Removed](the area I look after) when these wells cost $6 to $8 MM to drill, and require a further $12 MM in production facilities due to their high H2S content. Clearly the payout on these wells is already many years, and by increasing the royalty rate to 50%, the payout period will now be that much longer, and in fact these well may never pay out. If you are going to raise royalty rates to the extent proposed, you MUST have some allowance in the formula that accounts for the F&D cost associated with that production. |
