| Random Nbr | Released Comment |
|---|---|
| RRE0001 | Concerned Citizen Myself and family are very concerned about the decision of raising the royalty as much as 20%. We believe this will impact the province badly. The oil company do show big earnings but we believe most of the earnings do get spent back within the province of Alberta. Which inturn boosts the economy and helps everyone out, Goverment and citizens of Alberta. Sure hope the right decision is made and the industry does not colapse causing everyone to loose out. Alberta has been progressing very well. If this slows the oil and gas industry down there will be a lot of jobs lost and business' closed down. Just our thoughts. |
| RRE0002 | I agree with the report's recommendations re inceasing of Royalties.We had better get our fair share now because I have a horrible feeling that some years down the road we will be standing looking at a large hole in the ground asking ourselves what happend! |
| RRE0003 | Honourable Roanld Liepert (PC): I have been a resident of Alberta for my entire 57years. For the past four of those years, I have been fortunate enough to be employed with an oil and gas company that provides me with a decent salary, health and wellness benefits and a responsibility to the betterment of my community. The company promotes volunteerism within the community and financially donates to organizations (which in my case is a hospital) annually, as long as I volunteer my time at the institution. My physical health has improved since this employment because my company promotes a healthy lifestyle and pays for my gym membership. My mental health has improved because I am under less stress about my present and future situation. I see my doctor once a year for a medical. My question to you is this, "If a decision is made in the next couple of weeks (as it is reported to be made,in the media), to implement the recommendations made in the royalty review report, and I become unemployed within the next year, will the additional monies the Alberta Government takes from the oil companies be available to me to maintain my mental and physical health?? My nephew owns his own welding business and works for many oil and gas companies. My niece is a production technician with an oil and gas company. The three other members of our family are not directly employed by an oil and gas company, but benefit from the financial activity generated by oil and gas exploration and drilling. Every member of my family is affected either directly or indirectly by the oil and gas industry. I express grave concern that with all the media hype around the royalty review situation, that a decision will be made to appease the hype and not the province on a whole. I have great difficulty in seeing how taking more monies from oil and gas companies can happen without affecting the day to day lives of the one out of six Albertans who are employed in the industry. I am now concerned about my present and future situation and that of my extended family. I would ask that more time be taken by the government prior to implementing any recommendations. This is major and deserves an extremely careful decision. |
| RRE0004 | The report from the Royalty Review Panel should be accepted in full. I am appalled at the way big oil companies are trying to intimidate the government of the province of Alberta - and it appears as if it is working. As long as there is a profit to be made, the oil companies won't go anywhere. It this premier does not accept the recommendations and implement an increase in royalties, they will have lost my vote. |
| RRE0005 | As a born and bred Albertan I fully support implementing the royalty review in it's entirety. I won't get into my dismay at the appaling condition of our schools; the shanty town communities that pass for new development and the ever increasing cost of living. I will say, given what we are now seeing happening in the United States after the fed submitted to the pressure of Wall street; the devaluation of the dollar and related inflation it would be a huge mistake for this government to cave to the interests of big oil. We've been doing that for long enough and it sounds like the Klein government knew it but, baffllingly, chose not to act in the interests of the average tax payer. These are the same people recording record Canadian profits, building towering buildings and $10 million dollar homes as monuments to their success. How has big oil helped me? I have perpetual rush hour; we're desperately short of new arenas and pools. It's not like I can take my kids to the Encana Sportsplex or the Petro-Canada twin arenas. If I'm honest with myself the truth is even with a royalty increase I will probably benefit very little. Most likely that money will go to building the infrastructure around Fort McMurray the oil companies are moaning for. It makes a person wonder why they're moaning at all. [Information Removed] |
| RRE0006 | I think the review was very short cited, Mr. Stelmach if you are so pro rural, be prepared for the catastrophic effects your proposed changes will do to the towns that are so dependent on activity in the oil and gas sector. Invest in infrastructure to promote even more investment into this province before you start raising royalties. You would be wise to allow the private sector to invest in these infrastructure projects. I am a 25 year old life long Albertan and this is the biggest shame I have ever felt for my government, I would expect this from a national liberal party. I look forward to a younger generation that is more forward thinking getting involved in Alberta politics, this review is clearly a process that will take us backwards. I look forward to a short political term for you Mr. Stelmach, your record to date is poor and being a Calgarian now living in Northern Alberta you should be also ashamed of your handling of municpality injections. Edmonton's receipt not being equal to Calgary on a per capita basis is ridiculous. Will your review implementations also be as backwards as this move? I guess time will tell, but if you want a real review panel why didn't you invite the heads of industry not some second rate panel. I encourage you to look at Tristone Capital's report. |
| RRE0007 | REVISED SUBMISSION: 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 conflicting relationships with the energy industry. No doubt many of the same energy companies involved in the U.S. are the same companies doing business in Alberta. Since my copy of the review report has not been received or studied 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] |
| RRE0008 | All of the panels recommendations should be implemented as a minimum. The royalty rates structure needs to be transparent to the public and ultimately should be in the same range as other countries which have less political stability, less infrastructure and more cost intensive exploration. |
| RRE0009 | We presently receive billions of dollars in royalties. Under the new royalty recommendation, it is said we could get a lot more. The oil companies feel that we will actually get less due to the economics involved with producing oil and gas. I agree that the economics would result in less production and thus less royalties paid to the government. I think before Premier Stelmach implements the recommendations, he should ask himself "what if the oil companies were right?" Alberta could go through another rough time like when Mr Trudeau implemented the National Energy Program. I would rather not go through that again and I don't believe that Mr Stelmach would want to have that as his legacy. |
| RRE0010 | I can't believe that the goverment is even considering to go through with this royalty useing the panels numbers, their numbers need to be relooked at. The ripple effect that is going to occur from the oil companies cutting back on the drilling and capital spending will be catastofic. How is anybody going to be able to spend money in this province when their own personal job will be decreased by the decrease of the person before them occurs. Example if 3000 people lose their jobs or take pay cuts they wont buy new cars or furniture then the people selling that won't be making money to spend on the next item and so on. It's not that I don't think we should'nt increase but do it small and gradually. submitted by a very concerned Albertian. |
| RRE0011 | To The Powers that be This is your wake up call. This Royalty review has given you an opportunity to demonstrate your lack of comprehension of the development of a province both economically and socially and the ill effects of drastic royalty rate increase. Millions of dollars are being spent all across the country, even in the maritimes, due to the number of out of province employees making money in the Alberta oil patch and spending it back home. Alberta Oil sands projects account for 60% of the value of all major projects in Alberta according to Alberta Economic Development. What will happen to Alberta's economy or Canada's economy when the royalty increases sacks most of those projects. Are you willing to sacrifice our economy for a $500 cheque? Most Albertans are not and we would appreciate it if you would focus your castigation on a more suitable topic. |
| RRE0012 | I'm skeptical of industry complaints for the following reason: oil is over $80/barrel and most of their projects were started on $40/barrel assumptions. If the surplus $40 is going into their pocket, they won't walk away if its only $30 or $20. |
| RRE0013 | Mr Premier: Apparently the seven deadly sins have been reduced by one, via our new gods (aka the "Oil Companies"!) And bullying threats are now acceptable behaviour. Pardon my cynicisim, but I trust you will not only ignore their greed, but will institute the recommendations of the Royalty Review Report. I could bore you with more opinions , but I think you get my point. If you want more views from an "average" Alberta voter--just ask! Cynically, but sincerely, [Information Removed] |
| RRE0014 | I believe that if the royalty changes are implemented as recommended by the Royalty Revbiew Panel, significant negative consequences will be experienced by the Alberta economy. I suggest changes are likely necessary, but should be based on facts and be implemented using a very careful, measured approach. |
| RRE0015 | The next Royalty Review – the Retail market We are letting the Retail companies operating in Alberta get a free ride. We should have a study to see if we are getting our fair share. A cursory review tells me we take in the least amount from the Retail market in Alberta, given that we have no PST after all. I propose we bring in a PST, one that we can all be proud of so we get our fair share! We should however avoid the highest rates among the provinces, so we should aim for the top quartile. I think mirroring Quebec’s 7.5% would be just right. It is not as high as PEI or Ontario, but just a touch higher than Manitoba and BC. We are all missing out on that gravy train! |
| RRE0016 | i work in the alberta oil patch of the governemnt, if the government goes ahead with this nonsense this well be devastaing to the oil boom in alberta . it will put thousands of people out of work probaly including myself . would you sooner have everybody employed or on welfare or unemployment. if the government thinks thats this is a good thing you are wrong . keep alberta working. why does a couple of milliion dollars mean so much to the government or would you sooner have alberta working. you would be better of in the long run to get a a little at a time instead of one big sum and shut everything down and get nothing.dont shut alberta down you are so wrong if you do this. |
| RRE0017 | I believe the royalties paid to the Government of Alberta could be amended. HOWEVER, I also believe that the proposed increases in crown royalties could potentially result in job losses and current O & G properties being devalued. Everything that I have read, I have not seen the Alberta Government address how the current O & G industry will fund new energy sources. It is my understanding that coal bed methane, shale gas, electicity alternatives are being funded by the profits of conventional schemes. New technology comes at a cost (low productivity and high costs) and Government will adversely affect the economics of new growth in the Province with the introduction of proposed royalty takes. In addition, it is my understanding that syncrude properties cost a huge amount of money just to get facilities and new technology upgraders built. The commercialilty of these properties is already borderline and payout is long term, I agree that perhaps something could be negotiated but it appears that colaborative negotiation with industry is not occurring. I believe that smaller companies will be hit so hard by the Alberta Government royalty proposals that they will be forced to abandon new drilling projects resulting in fallout like, lay offs. Large companies will likely shut in operations and look abroad at plays that are more profitable. The Alberta Government is thrusting us into a depression if they go forward with this proposal. I understand that many people believe that Oil and Gas Companies have been fat too long. Sad thing is that I see companies having to look for new technical ways of extracting what is in the ground from already dying depleted fields in Alberta. Unless the Government is will to negotiate I see companies seriously having to tow status quo or abandon new projects. With no growth comes depleting of existing fields, with an industry that will not progress forward unless there is enough incentive to do so. The Governement of Alberta needs to find a way to work with the O&G community and turn this fiasco into a win/win scenario for both Government and industry. Thank you, |
| RRE0018 | The government of Alberta has a duty to manage and dispose of natural resources, includling oil and gas, in manner that recognizes that the government owns these resources for the public interest and the public benefit. The current economic boom benefits a small segment of the population and creates hardship for a significant portion of the population, such as senior citizens on fixed incomes; single income families (i.e., single parent or stay at home parent); and recent college and university graduates who cannot afford to buy a home. The government should ensure that resources are sold and developed in a manner that does not create such serious social problems. Further, the government should receive a significant portion of revenue from the sale of such resources--at a minimum market value. Adopt the Royalty Review Report recommendations and use the extra revenue to alleviate the social and environmental problems created by the current rapid development of oil and gas projects. [Information Removed] |
| RRE0019 | I agree on the royalty review report |
| RRE0020 | I believe the response by oil companies was to be expected but I am concerned at the lack af professionalism that was used by Encana and others in using scare tactics of job losses. They should be embarrassed at their statements and should apologise to Albertans for their greed. As a drilling rig manager for over 30 years I saw the slowdown coming long before the royalty review and have also been alarmed at how ineffiecient may large companies have become in their operations over the boom years. Many pockets have been filled with a total disreguard for ordinary people. I hope the government can negotiate a successful agreement with energy producers but DO NOT BE INFLUENCED BY THE THREATS THAT HAVE COME FROM THESE CORPORATIONS AS IT IS A FORM OF BLACKMAIL AND NOTHING ELSE. ALBERTANS HAVE NOT BENIFITED AS THEY SHOULD FROM THE ENERGY BOOM. |
| RRE0021 | STOP giving our money away to the multinational oil companies. Set royalties at world levels and review every year. STOP with the huge tax breaks. The oil companies already have the advantage of playing in their own back yard, in a stable political system, with no one trying to shoot them. They enjoy a good transportation system and a ready, able and knowledgeable workforce. For the same royalties, do you really buy the argument that they will go elsewhere? Use some of the extra revenue to fix schools, tuition, medical care and care for the elderly. Help the small towns be sustainable as a place where parents can grow families in an alternative to cities. Diversity makes stronger ! Look at the Scandinavian countries, and try to see a better way to handle social programs and "heritage Fund" use. We should be ashamed of how the weakest members of our society get the least help from the govt at all levels. KEEP your PROMISES ! |
| RRE0022 | Mr. Stelmach, I feel compelled to provide my feedback to the Royalty Panel Report as released last week. As I am in the industry of energy production I am biased from what I see but also very aware of the current industry situation. While it is understood that there must be a reasonable sharing of the upside for resources to ensure the betterment of our Province, there is also less to share if investment is significantly reduced by the implementation of onerous royalty rates and elimination of programs designed to spur activity in less profitable segments of our industry. The proposed changes claim to give a break to low rate gas wells (which our company produces almost exclusively). The reality is the only break comes below the industry break even economics where NO drilling will occur! In 2006 the average industry finding and development cost per barrel was $28, production costs were $9. On a BOE basis gas is trading today at $30 per barrel. This is uneconomic BEFORE royalties, let alone after. The new royalty regime begins to increase gas royalty rates beyond today's levels once cross about $6.50 per mcf of gas, the futures on gas do cross back into the regime of $7-8 gas over the next year and these low rate wells will be hit with a royalty INCREASE! GCA is to be set by the Province and will not reflect the current increases in capital cost of facilities. We will be processing the Provincial share at subsidized rates, obviously unreasonable. Based on the current conventional models in the basin there will be little new investment into the sector as little or no upside is left on the gas side of the ledger. No consideration has been given in this report to alternate royalty structures for unconventional gas which could make up as much as 25% of our future basins' resource but will struggle in the current economic environment and worsen under the new royalty proposal. Notwithstanding the above facts of our current industry position there is the matter of past investments made by firms in landsales based on the previous royalty scheme. This is an unfair and potentially litigious issue in itself. Alberta has long been a bastion of free enterprise that has allowed the entrepreneurial spirit of the people here thrive and blossom. Due to this spirit we have eliminated our debt, reduced our taxes (not far enough) and allowed for a very bright future for the province. This has also provided much cash flow for the rest of Canada, although unappreciated. If enacted as policy this will be one more step towards hurtling the province back in to the NEP eighties and crippling our advantages. Please look to be more reasonable on the step changes that occur with price as this is double dipping and limits the upside of those who challenge to beat the odds and explore or improve on recovery. An obvious weakness occurs in the case of multi-lateral wells [Information Removed]. These wells are drill with three horizontal laterals drilled from one wellbore and produced concurrently. An ingenious method to improve recovery and well economics will now be subjected to higher royalty rates than three individual wells! This is discouraging the innovative people that we have in this province from improving recovery and internal economics. Why? [Information Removed] Regards, [Information Removed] |
| RRE0023 | The government of Alberta needs to maintain vision on the most fundamentally important issue in this debate. That is, that title and ownership of the resources in this province rests solely with the perople of Alberta not the petroleum industry conglomerates that profit from the economic spin-off. The rhetoric offered by industry executives and more recently by their employees, does little more than conjure up old and toothless arguments, that are sounded more in self-interest rather than in a desire to reach an equitable result, that provides, firstly, for the improvement of the quality of life for all Albertans, present and furture, and only then, secondly, to ensure continued investment and growth in the industry. Do not allow the self interests of the petroleum industry cloud this government's fiduciary obligation to the people of Alberta in the same way the Insurance industry lobby did to the previous government with the bogus insurance reforms package that Premier Klein force fed to the people. Do what is right. That is the mandate that you were given. |
| RRE0024 | There seems to be an imbalance between the oil sector and all other industries in terms of wages in Alberta. The oil companies are able to pay wages that at times are double the wages every other business can afford for a comparable position. As a result, these other businesses either have difficulty attacting employees or they have to import foreign workers to fill vacancies. This tells me that the oil companies are generating profits beyond what is reasonable. Therefore, I believe the government should take the advice of the Royalty Review Panel. This will take away the advantage the oil companies presently enjoy in terms of unreasonable profitability and place other businesses on an equal footing with the oil sector Thank you, [Information Removed] |
| RRE0025 | I think that there is a middle ground in the royalty debate that should be looked at. I do believe that Albertans should be receiving more in the way of royalties, and I do not think that oil companies will just pack up and leave. With oil at or near record highs, that would not happen. I also think that a bit of a slower pace in the oil patch would be beneficial as the economy has gotten too hot too quickly which has brought about many negative factors. That being said, the oil in Alberta does create a lot of jobs and other fringe benefits that most Albertans have come to expect and don't realize. I would like to see a real middle ground, possibly spltting the royalty report numbers right down the middle and not allowing one side or another to argue that they were given the preferential treatment (...It is probably not that easy!). I do also think that this new money needs to be put into our education and health care systems as these seem to always be lacking (especially education) the proper funding a rich province should have. I do see both sides equally and understand that these two systems are often looking for money but I cannot understand how my children have to fundraise within their schools to help pay for things that the province should be funding. My son had to share a text book for the first month, as his class did not have enough textbooks, and in his social studies class he was told that they do not have a textbook yet with the introduction of a new curriculum!? This is in the affluent community of [Information Removed] where money is not as much of a concern as other areas of the province, yet this sounds like something out of a third world school!! I do expect the premier and his cabinet to do what most Albertans seem to want, which is a larger piece of the royalties. I will also say that as much of a conservative I may be, I will look at this as something to consider in the upcoming provincial election (including the comments about my childrens lacking education). Thanks for the opportunity to be heard- |
| RRE0026 | The Royalty Review Report should be implemented in w/o fear of exodus of oil companies. They will not take the oil with them and the oil will not disappear. One positive effect will be a slow down of tar sand development which has brought many problems to Alberta: High labour shortage, High housing shortage, High inflation which mainly affect Albertans on fixed income, High demand for services with low contractors available who can easely inflate prices. [Information Removed] |
| RRE0027 | While I recognize that the governemnt felt the need to review royalties. I also have a need to feed my family. I feel that it is absolutly important that the government does not scare off big buisness. My Significant other's job feeds our family of three children BARELY! Your government does nothing for our family though its policies but tax us more. If his job is lost due to more greediness, it will be devisating for our home. We just past a period of overtime bans and lay offs. Thanks for bring more stress into my home. I now know that if there are any changes prehaps a liberal isn't so bad. They may tax us, but at least our social system will be intact. If your government immplements this my family will need a strong soical system. [Information Removed] |
| RRE0028 | Sock it to the oil companies and see what they do. I bet they will do nothing. In today's newspaper, an article points out that US authorities have a hard time tracking oil company royalties. In a case of non- transparency, you have to treat the companies as a black box. |
| RRE0029 | In general I support the royalty review committee’s recommendations. I particularly support: 1. Royalty simplification - get rid of old and new 2. Increasing the overall "take" 3. Increasing royalties on oil sands from 25% to 33% after payout. I see the following issues: 1. The time it will take to change administrative systems to handle the proposed changes has not been factored in. Changes should be implemented for the start of 2009. 2. Economic analysis of profitability of gas "take" increases for high production targets have not been fully modelled by the committee. They used the new average rate. I suggest the rate should be more carefully modelled and likely modified to reflect a sliding scale based on gas prices - where the new rates do not kick in until after gas hits $12/mcf. 3. Ring fencing oils sands projects - no recommendation made - this requires a recommendation - more work required to stop constant creep of the fence. 4. Oil Sands lease must be made to expire with no activity - as is the case with conventional o&g - and as was the original intent. Thanks. |
| RRE0030 | We need to ensure that the citizens of Alberta receive their fair share of the money from the oil and gas industry. We have people on the streets, seniors looking for food on a regular basis and students that can't afford to go to school. This has got to stop. We the citizens have put alot of money as well as blood sweat and tears into the oil industry in Alberta and it's time they faced the real facts - pay your fair share. Get out? I don't think so - where else are they going to go? Everyday a new upgrader is announced - that's alot of money invested in the province for them to pack up and move out. Yes, the oil industry and it's spin offs have supported our family well over the years but so many others haven't been as lucky. I worked in a field not supported, nor influenced by oil and did very well. Thank you - stick to your guns and let them know we're not out to take anything more than the citizens of Alberta are entitled to. |
| RRE0031 | The increases in the report are very modest (especially in light of the substantial "gift" that government has given the oil and gas industry, and will not put Alberta on parity with Newfoundland or other oil producing areas around the world. But it is a start - at the very least, the report should be implemented unchanged. But it is shouldn't stop there - there should be a further investigation into why the oil and gas industry has been subsidized and why they are not paying the "cost of doing business" in Alberta. They must be treated the same as any other industry - the cost of doing business is theirs, not the taxpayers of Alberta. We have something they want and need and they should pay a fair price for that. Why are they getting special treatment? There is no need to subsidize them any longer especially in light of their high profits over the recent past. Their profits went up and part of that is due to our price on the raw material not rising accordingly. Time to rectify that and look at further increases so we are receiving a fair price for our resources. |
| RRE0032 | I don't mind getting more royalties from the oil industry as long as it is fairly implemented. Fairly from the point of view that companies need to get a decent ROR for their investment and shareholders. Most Albertans benefit as investors through their RRSP's or the Canada Pension Plan. An increasing royalty rate as commodity prices increase (much like the Stumpage rate in the Forest Industry) may be a way to implement this. Many Albertans do rely on the oil & gas industry and all benefit from the royalties being paid currently through the lowest provincial tax rates in the country. So let's find a mix of what other jurisdictions charge for royalties (we don't need to be on the high end)) and keep in mind the cost of doing business currently in Alberta. [Information Removed] |
| RRE0033 | Living in Calgary, in Alberta working in the Oil Patch I enjoy a good life, as do many, many people in this Province. I think with the uncertainty there is now re Trust Companies, not in a position to buy the smaller producer because of their uncertainty caused by the change of regulations by the Federal Government, there is already a slow down in activity. I think the Government of Alberta needs to be extrememly careful about changing the Royalty structure. Perhaps the Royalty structure does need to change, but I think the new structure goes into place in the future, with adequate notice to the Companies and they buy into it or not. Like a mortgage, you don't sign one and then have it change before certain terms are up. Remembering the 1980's and the foreclosures, how many young adults have bought into the "Boom" and are one month away from disaster if they loose jobs. I caution the government to be very, very careful in their decision, and to invite the industry to meet and have their voice and concerns heard. |
| RRE0034 | I am a production engineer that works for a large E&P company. Everyday I scrap potential revenue generating projects because the economics just don't work. If the royalties increase, more projects will be canceled and existing wells will be shut-in because of negative cash flow. In attempting to generate more revenue for Albertans, increasing royalties may actually have the opposite effect. No revenue is generated from cancelled projects and many Albertans that rely on activity in the industry will lose their jobs. I feel that the current level of industry activity is acceptable and increasing royalties will drastically reduce revenues. We're already walking a very fine line and changing the regime could be disastrous. |
| RRE0035 | Please seriously take into consideration the feedback and data from the oil and gas companies. They are not opposed to paying more......just make it fair for everyone. It is not Albertans against the oil and gas business!! They are the ones who have taken the risk, and have contributed to our thriving enonomy. My pay cheque along with thousands of Albertans are directly connected to their business. And when the pay cheques of Albertans are involved all I can say is "I WANT MY FAIR SHARE". The decision of our government on this issue will have a direct impact on the paycheques of Albertans. I wonder if those people who lose their jobs will still be wanting this model of "their fair share" of royalties. Hind sight is 20/20 but what will be the cost to Albertans and this government?? |
| RRE0036 | Hello, the addition of a few percentage points to the overall cost to oil companies will be insignificant compared to market fluctuations in price. The current fiscal opportunity should be taken advantage of by the government to stockpile money for the time when this limited resource is no longer available as a revenue source for our province. I am an owner of a manufacturing firm and have more orders than I can fill due to the limited labour pool. I am currently looking to sell or outsource my business outside of Alberta because there are not enough people to do the work. If the economy slowed down it would be a benefit to the province. 1: by reducing the overall stress level that people are under due to the the pressure in the workplace. 2: by allowing the inadequate infrastructure a chance to catch up. Hope you are listening and will do the right thing rather than listening to the squeaky wheel of industry. |
| RRE0037 | Please take a good hard look at the numbers and be sure that those numbers are up to date and not taken from a few years back. The energy trust companies have already been kicked hard by the Conservative Government lying to them. Please don't let this Alberta government add to that blow. |
| RRE0038 | I think if the royaltes are increased as reccommended by the review panel, there will be a significant slowdown in activity. This will affect a large number of Albertans who live in small towns and who depend on drilling and other field activities. Therefore, I feel the current royalty regime should be left in place. [Information Removed] |
| RRE0039 | I think that an increase in royalties id long long overdue. This might result in a small cutback in exploration and developement but the infrastructure of the province has been unable to meet the demands that present growth place on it. A slight cooling off of activity could be a blessing in disguise and result in long term benefits to the people of this province, instill some semblance of stability to the industry and protect our resourses in the long term. |
| RRE0040 | I think the Provincial Government should raise the royalties. Albertan's have not been getting their fair share. |
| RRE0041 | Good evening. I posted a suggestion for incremental profit-based royalties a little earlier but have since read so many strong responses from ‘both sides’ I thought it would be well to first express support and commendation for the recent press comments made by Alberta Premier Ed Stelmach as reported “By James Stevenson, The Canadian Press” The article states in part: Last week, Stelmach reiterated earlier promises that he will strike a balance. "I promise you we will make a decision that is fair, realistic and one that recognizes the need for long-term competitiveness of our energy sector," Stelmach said during a speech in the northwestern Alberta city of Grande Prairie. "So I would encourage everyone to calm down, take a deep breath and let's find the right balance." Well said. As stated earlier, I am a US investor with much exposure in Canadian resources, but I also favor companies that work to benefit the people and communities where they operate. I also believe a balanced royalty adjustment can be fair for everyone. There is enough resource wealth for everyone involved to have a fair share. Royalties can be increased in a way that does not discourage oil sand developers or reduce potential employment (and resulting tax income) or shock the market and investors that fund these costly projects. A profit-based gradual incremental annual royalty increase would not choke O/S development plus it would provide earlier and steadily increasing profit-based revenues to Alberta. This will allow developers and investors including many Albertans to realize an early return for the monies they have risked. As each company reaches profitability the royalty levies would begin and could then be increased annually until a fair maximum level is reached. Everyone can win. I hope my abbreviated comments may prove helpful and I wish Mr. Stelmach the best in finding the balance that will indeed prove to be fair for all! [Information Removed] |
| RRE0042 | Go for it. Stop listening to the very rich oil executives and do something that will help ALL Albertans! Increase the royalties to a higher level. |
| RRE0043 | As a small business owner in the upstream oil industry, I am gravely concerned of the potential negative impact if the recommendations made in the report are accepted in their entirety. My major concern is over the impact on our primary market , which is the small oil and gas producer . These companies are, as usual this time of year, looking at their budgets to determine allocation of funds and many are reassessing in light of the situation. As a result the work we would normally have backlogged for the this season is almost non existent. I would hope that our Premier considers the negative impact this could have on our "Alberta Advantage". I am sure I speak for many who "work in the trenches" when I say "If it ain't broke - Don't try to fix it" Status quo - we as Albertans have a very good quality of life. Please do not, for the sake of "money grabbing" screw it up. |
| RRE0044 | I think the oil companies NEED to pay higher royalties. The existing royalty structure was built on $20/bbl Oil. They should pay existing royalties on the first $20/bbl ... new royalties on everything above that price! Secondly, the plan to move Alberta's bitumen out of the province for processing inthe USA should be legislatively prohibited!!!!!!! That is OUR oil - the jobs that come with it whould be OUR jobs, the taxes from it should be OUR taxes, and the close proximity to gasoline should provide US with lower pump prices. The Americans aren't treating us too nicely with either Beef or Slaughterhouses, why are we allowing them to steal our OIl??? |
| RRE0045 | I was born and raised in Alberta and have worked in the oil and gas industry since 1978. Like most Albertan's of my generation I have seen the industry, and Alberta's economy go up and down with the various price cycles and government intervention cycles over the years. To date the single biggest negative impact on the economy of Alberta in my career was the NEP that was introduced in the early 1980's. Back then it was the Federal Government trying to extract what they considered to be their fair share what was perceived to be a limitless revenue pie. In response companies quickly suspended their capital programs, workers were laid off in the thousands and the booming Alberta economy suffered a terrible blow. I understand the Alberta governments desire to ensure Albertans get their fair and equitable share of the resources being developed and produced by the oil and gas industry. However, it is extremely worrying to see the current Alberta provincial government considering action that will likely have the same impact on investment and the economy of the province that the NEP did in the early 80's. The prosperity that the people living in Alberta currently enjoy is being driven by a healthy private sector economy that is heavily tied to the oil and gas industry. The oil and gas industry is an international business, and most of the companies that are currently investing billions of dollars have a choice of where they invest. Alberta has been the target of significant investment because until now it has been seen as a fair and honest jurisdiction to do business. To change the provincial royalty structure without consideration of the terms and conditions which the investment took place would put Alberta in the company of pariah states like Venezuela. I would presume that when the Alberta government enters into a contract with a business they expect the business to honour that contract. By not honouring the terms and conditions that companies have purchased leases under and spent billions to develop, the Alberta government is not demonstrating that it is a fair place to do business. What is a fair share? As an Albertan I don’t want to see the province give away its’ resources, but care must be taken to ensure investors remain confident that a reasonable return is attainable when considering all factors that influence profitability of oil and gas development. On the conventional side of the business, Alberta does not enjoy the luxury of easy to develop and produce reserves that are common in other places in world. Well rates are lower and operating costs are higher than other petroleum basins because of the nature of the reservoirs. Most of the current investment in Alberta is to develop non-conventional resources that are both costly and have an inherent technical risk. When companies make investment decisions they look at the total cost and risk associated with development not just the royalty or tax paid to the local government. Given that the cost and risk in developing and producing Alberta’s reserves is higher, royalty rates must remain competitive to ensure continued investment. In conclusion I would recommend that the Alberta provincial government not implement royalty structure changes currently being proposed that are likely to have a dire consequence to the Alberta economy. |
| RRE0046 | I am very disturbed about how the Royalty review has been conducted and do not have any faith in the recommendatins provided from this panel. They are comparing apples to oranges, using outdated information and skewing the numbers to fit their profile. What is even more disturbing however is to hear that Albertans are not getting their fair share. We are so lucky to be living in this province and the lifestyle we enjoy is due to the oil and gas industry and the jobs they provide. Another thing that no one has mentioned is how much these companies actually do provide to the community. Who built the new Children's Hospital -- this was not possible with government funding alone. Who took over and runs the Talisman Center,how about the Saddledome. How many charities and sporting, theatre and music events are only possible because of dollars provided through oil and gas companies in this city. Last night on the news they said they polled Calgarians and they gave our lifestyle a failing grade. I don't know what these people expect, it doesn't get much better than this -- go live in an other city - Windsor, Ontario perhaps, and then see the differences in the life that we are provided here. I can't believe in this time of prosperity, when you can get a job in a day that pays at least $10.00 an hour that people do nothng but complain and the government hides behind peoples ignorance to try to convince all that Albertans have not been given a fair shake. Unbelievable!! |
| RRE0047 | I think that the government should represent the interest of the people of Alberta, not the forgein investment. Yes the two are closely linked but very distinct. Based on the information that I have read, I believe that the government of Alberta should implement the recommendations of the report. The resource belongs to Albertains / Canadians. There will always be a need for oil and gas in our economy. What's the rush in getting it out of the ground so fast and giving it away? Speeking from a concerned Albertan Thank you for the opportunity to provide a comment |
| RRE0048 | I and my family believe the Royalty Review report recommendations are very fair and honest. The commission did a lot of research and went to the bottom on all issues to make an impartial recommendation. I can appreciate Oil Industry concerns because they will get a bit less. It is unfortunate their companies' value will go down a little. At the same time, the oil & gas industry must appreciate the fact that the resources belong to Albertans and to them. The low royalties they are currently paying are from the 1980s & 1990s when they lobbied for credits from the govt of Alberta at the time when prices were low. Now the prices are 5 to 6 times higher and they still do not pay their fare share. The Oilsand palyers themselves shot themselves in the foot by jumping all at the same time. If some project owners will claw back due to increased royalties, it will be a good thing for everyone as labour costs will get moderate and the projects will become economical. Finally, Mr. Premier you have to have steel backbone and strong nerves. Be honest to your conscience. The industry has received billions and billions of free money at these high prices of oil and same as gas when prices were high. The industry will never agree to pay a peny more than they are now paying. You must look to the future generations when there will be no more oil. Please implement all the recommendations of the report as recommended by the commission. It was your commission and members selected by you and your ministers. So, please do not budge by the pressure and implement report recommendations for the sake of all Albertans. Thanks [Information Removed] |
| RRE0049 | The oil companies are already facing a relatively high cost of developing Alberta's resources. Add to these costs by increasing royalties will have a drastic negative impact on the oil and natural gas activity in Alberta. A lot of the ongoing operations are no longer economical and will result in cancellation of existing projects and future development. This will definitely result in loss of thousands of jobs and a significant downturn of the economy. The government should not implement something that will crash the robust economy that Albertans are enjoying. |
| RRE0050 | It is with great despair that this new is sweeping over Alberta. I have been here for 17 years, and today is the first time I have ever heard Albertans fearful for their jobs. If the government follows the recomonations of this board, money will move out of this province to a more friendly climate. It is shameful that the industry that means so much to the Canadian economy, is being threatened. I hope there are people listening to industry. If Encana moves $1B out of this province, where did we gain? If the other big players follow Encana's lead, the repurcussions will be felt throughout the province. I will absolutly vote for anybody, or any party that is against these reccomondations. |
| RRE0051 | So let's assume that all these oil companies follow through on their threats to decrease activity here. This would not be all bad. It would open up opportunities for a host of other companies. They need the oil. The demand is not going away. It will still be cheaper than most of their other choices. In the short term reduced activity will take pressure off the labour market making things easier for all companies in Alberta to find workers. Clearly this is currently a problem. The government hired competent people to look at this issue. I believe that their recommendations represent a reasonable and fair approach to the royalty issue. Albertans own the resources, we need to get our fair share. There are so many needs unmet in this province and we need to build the Heritage Trust Fund so that future generations can benefit from our current boom. Please don't succumb to the threats and intimidations. Peter Lougheed is seen as a great premier because he stood up to the oil companies. It is your chance if you do the right thing Mr. Stelmach. |
| RRE0052 | Get all the accurate and appropriate facts before making a significant change that will affect Alberta's economy and well being. Basically dont bite the hand that feeds you. |
| RRE0053 | I totaly disagree with the high percentage of royalty. This will hurt all albertans in one way or anther. I work in the service industery we have went form 190 staff in april to 105 in september and still looking at cuting 20 more people so I really hope you you have money for these people and myself when you push me out of a job! And maybee when the unemployment level is up to 45% you guy's will realize you [Expletive] up a good thing! I think maybee the goverment should come to a much lower rate and work with these company's that support alberta's people. Idon't think big city paople understand what this will do to every one.I will lose everything so please don't let this happen! |
| RRE0054 | I am in full support of the report regarding royalty reviews and I think it sould be implemented fully. Sincerely, [Information Removed] |
| RRE0055 | To Whom it may concern As to the discussion on the royalty issue. As we all know the conventional drilling is very slow and also the service work while the money is spent in the oil sands. Maybe increase the royalties on the sands production and leave the conventional oil as is or increase slightly. If some of these oil companies want to send raw bitume down to the USA then apply a furture royalty on that production. At todays prices I don't see any of these projects slowing down as they have already spentso much money already. Since gas prices are so low an increase in that sector would definately have a negative effect as protrayed by Encana. At todays prices the oil industry shoud be busier than it is. Hopefully things can be workrd out for every one. Thakyou In dvance |
| RRE0056 | The report on royalties should be implemented in total. Every part should be implemented. The oil industry is saying that to charge more will result in them losing money and having to cut back. No oil company has looked at the cost to our industry and families of high gas prices at the pumps, in our homes and said we won't charge the fair market value because we can see how it will hurt you. Instead they say that this is a business and they have to charge fair market value or they will be uncompetitive and that will hurt everyone in the long term. Its interesting that message seems to be forgotten when it is them that will have to pay more. You are the government and you have a moral and legal responsibility to manage the assets that Alberta has. Giving away our oil and gas so that some people can have a better job is not managing the resource properly. If you give it away now what will you do when there in no more left and the resource and jobs are gone. No matter how far into the future that may be it will happen one day. Keeping royalties as they are is like a farmer giving away his land so he can get a job driving the combine for the new owner when he could sell the land for what it is worth and get a job somewhere else. You are a government that brags that you operate like a business. IF that is so then you have no excuse to not charge fair market value or more than fair market value for our resources. That is the minimum expectation of a business in a free market. Alberta says that it has a winning advantage. If so then it should be able to charge more for it's products. In my talk about town I do not here anyone say that the oil companies should not pay more. The only place I here comments that support lower rates is from the Oil industry representatives and pundits that are obviously in support of the industry. Even my friends that work for oil companies say they should pay more. Most Albertans believe that this government is in the oil industries pocket. You just have to look at the actions of the EUB over the years. You just have to look at the changes the Government has made over the years to support the industry. Giving the industry support, ignoring the basic rights of individual s in preference to the oil industry may be acceptable to a lot of Albertans. Selling out our Province so that foreign owned oil companies can make fortunes is not acceptable. I believe that if you do not implement the report completely you will have proven to most Albertans how far in the pocket of the oil companies this government is and you will no longer be in government come the next election. Every time I here a member of this government comment how you have to be fair to the industry, how you have received comments in support of keeping royalties as they are, how this report is just the start and needs further consideration, I get mad. You are just trying to set us up so you can get away with not implementing the report. That is why I have made this comment. I can see your government is already trying to put a spin on the report so you don't have to implement it. If this report is not implemented I will be mad as hell and will do my utmost to ensure that no conservative sees the legislature again. If this report is not implemented, in my opinion, you will have stolen money from the pocket of every Albertan and deserve to go to jail. |
| RRE0057 | Oll companies have gauged us for years . They need to share the royalties with Albertans !!!!!! |
| RRE0058 | Its about time that Oil and Gas companies return a proper royalty to the "owners" of the resource they are given access to. Witnessing the profits and the bonuses that these companies are rewarded with makes you realize how much they have to dispose of before publishing their "official" profit figures. The companies should be required to pay a more realistic rate considering the price of a barrel of oil is substantially higher than when this was put into place. While some costs have increased, effeciencies have also been realized. The rate should be increased to a point where its "fair" to all concerned, not just the Oil companies. |
| RRE0059 | As a tradesman working in Ft Macmurray and living here,I see this review from two sides.I believe we as Albertans should ricieve a bigger pay out from our resorses,regardless of what, or where they originate.I also could be out of a job and would be unable to provide for my family.I would be bankrupt and homeless.Is this something you as my government would want to happen?I hope this is not the case.Because if it is ,I will do everything in my power to stop this Royalty Review recommendation and will do everything in my power to change this government that represents me and my fellow Albertans.There has to be some kind of middle ground that all parties involved with this can come to without threats of pulling planned projects off the table or threats of lost jobs.As my rep in this issue YOU the gouvernment must see all the issues relating to this and come to a fair and equtable agreement.We cannot let BIG OIL run this province but we do need to see the peoples issues that we will face.Now as a working tradesman ( UNIONIZED ),You as my gov rep could try to change Alberta labor laws so that i can Nagotiat a fair contract to meet the rising costs of living and working in Ft Macmurray.In closing please try to see all sides before making a rash decision regarding me and my families future. Thank You. |
| RRE0060 | I originally thought that the Alberta government should enact the royalty review report in its entirety. However, after learning more detail, I think that the recommendations in the report do not go far enough. The report reflects only the bare minimum that should be done. We're still way under market, even if we enact all of the recommendations. Man up and stand up to "big oil". We're the laughing stock of the world. |
| RRE0061 | Royalty Review: Well done; failure to recognize what was identified in the report and act in total support will be a huge disappointment in this household. We need to ensure our grandchildren will benefit from oil sands development to the same extent as us. If oil corporations currently active at Fort McMurray aren't happy with what they hear, let them leave. The oil will remain in the ground. "If you leave it, they will come". We're looking for a push back and a slower pace of development |
| RRE0062 | I CURRENTLY WORK AS A PRIVATE CONTRACTOR IN THE OILFIELD. I ALSO HAVE A [Information Removed] AND I AM TOLD THAT I MAKE TOO MUCH MONEY TO RECEIVE ANY MONEY FROM OUR GOVERNMENT TO HELP US OUT WITH THINGS SHE IS REQUIRING. IF THE ROYALTY REVIEW CHANGES WE WILL NOT ONLY QUALIFY WE WILL BE ON WELLFARE DUE TO CUT BACKS AND BELIEVE ME THEY ARE ALREADY HAPPENING DUE TO YOUR IGNORANCE. OIL COMPANIES ARE HOLDING ANY PROJECTS UNTIL THEY HEAR THE OUTCOME FROM YOU. SO PLEASE TAKE THIS INTO CONSIDERATION AND USE YOUR ANNUAL SURPLUS ON US THE TAX PAYERS FOR DISABLED CHILDERN FUNDING, ROADS AND TAX CUTS SO THAT OUR PROVINCE DOES NOT CRASH. |
| RRE0063 | I believe the Government of Alberta should accept the royalty review report in its entirety. [Information Removed] |
| RRE0064 | The fundamental reason that Alberta is prospering and experiencing a “boom” time in its economic condition is that it is currently a good place to invest. By substantially changing the existing royalty structure as was suggested by the Review Panel, our province will no longer be the first choice for oil and gas producers to spend their money. Oil companies make investments based on returns, and by cutting into these returns substantially they will invest their money elsewhere. Many companies have holdings in neighbouring provinces or internationally. If the economics of investment shift in favor of British Columbia, Saskatchewan or overseas, these investment dollars will leave the province. The province potentially stands to lose billions of dollars in lost investment. I personally do not understand what the average Albertan hopes to gain by increasing the royalty percentages. I seriously doubt that I will personally see any benefit such as reduced taxes, better infrastructure, or even a cheque. However I can expect to see my house lose value, my stocks to drop, and have a poorer paying job if the royalty scheme is implemented. Let Alberta continue to be the envy of Canada and the rest of the world and enjoy these prosperous times. If anything we should be looking for ways to further stimulate investment, not destroy it. |
| RRE0065 | It is fine to think that there may be more money that can be derived from the oil patach for Albertans but please remember that the goose that lays the golden egg has only so much gold. Please for all Albertans sake do not go to far in your desire to increase royalties. Even the oil companies expect an increase but find ways to make it fair and even handed such that we can continue to enjoy the "Alberta Advantage". It may be best to set up on ongoing joint committee composed of senior members of the oil industry and senior members of government to sit together and more effectively evaluate the ongoing changes within the industry and set royalties that reflect the ongoing changes in the value of the dollar and the commodity. Those who work in isolation will become isolated and their work will have little long term effect, but those who work in concert can effect well thought out plans that will have long term advantages for all stake holders. The next important thing is to change our policy such that more of the royalty monies are put into the Alberta Heritage Trust Fund and administered more effectively to provide true long term advantage to the future of the province and its people. |
| RRE0066 | I read this morning in the Globe that Encana has said it will “reallocate” $1.0 Billion from their 2008 capital budget and move this money to other, more economical areas (outside of Alberta) within their Operations – if these Royalty changes are endorsed as presented. I believe this is just a start. I would like to ensure that Alberta’s royalty policies continue to support a healthy investment climate. The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. Whether we work for upstream O&G companies, or service companies or even work outside the Oil and Gas Industry – the impact of this up and coming decision could have an extremely dramatic result to future development in Alberta (and the obvious economy of this province as a whole). I strongly urge that the proposed changes to the royalty changes proposed be reviewed and revised to insure that Albertans remain employed, moving ahead and leading the way as Canada's No. 1 province. We are already the richest and only debt free province in the country...why do we need to get greedier? |
| RRE0067 | It appears to me that "Our Fair Share" report is balanced and would put Alberta in the middle of the pack worldwide. We should not worry too much about a slow down in investments as that may provide Alberta with an opportunity to catch it's breath. I think the report should be implemented in full. |
| RRE0068 | As we get down to the wire, it appears the government is starting to cave in, for political reasons. It is starting to look more and more like every other government requested study, "If we don't like the results, we just ignore them." I work for "Big Oil", not by design but by takeover. Big Oil has done nothing for me, in fact they are constantly taking away. Staff received an email from the president late this week, which stated they are "very encouraged by what the MLA's are telling them behind closed doors", and advising us to contact your MLA, soon, if we haven't already. What is this "behind closed doors" stuff? What happened to the transparent process Mr. Stelmach promised? What has "big oil" offered the MLA's now? Our company says this is down to politics now. Does that mean who lies the most wins? "Big Oil" has been trying to force the prices down for the past 12 months. Jobs have been lost for the past 9 months because of that. Our company cut our budget from $2.5 B to $1.5 B last year and are doing the same this year. Royalty review had nothing to do with that. Give your head a shake and do the right thing. Big Oil is only interested in their shareholders and their executive making the big money, they don't care about Albertans or the future of Albertans. All staff received an invite this week to celebrate our "very successful 3rd quarter". Isn't that special? Lack of paying royalties to Albertans obviously contributed to the successful quarter!! Don't be swayed by "Big OIl". They couldn't care less for Alberta, trust me. If you can't do the right thing, take it to a vote and let the people decide. |
| RRE0069 | I strongly disagree with the recommendations in the Royalty Review Final Report. If these recommendations are implemented, I will not vote Progressive Conservative ever again. |
| RRE0070 | I believe that the increase or maintenance of the current royalty structure must be handled with a great amount of care. A large percentage of Albertan's work in the energy sector and the current economy of Alberta is based on the bounty of this industry. When addressing this issue I think that true cost accounting needs to be utilized to encompass the extensive externalities that this report has not covered in accounting in the revenues associated with production. Oil and gas are the only industries that are regulated cradle to grave and have the mandate to reclaim and remediate any impacts to the environment in which they operate. In a province that has record surpluses and is out of debt I think taking additional funds from an industry that is a key funder to several community initiatives would be futile. The more money the government keeps in the hands of the industries and in the hands of the people a more viable economy the will remain. |
| RRE0071 | I feel at this time it is very important that we understand that the royalties may have to be increased BUT to do it in one fatal swoop would be a disaster for Alberta. I've read what EnCana said and what the oil companies in Calgary are saying - I don't think we can afford to lose these investments. Increase the royalties if you must BUT do it progressively over a period of 5 years perhaps but not all at once. |
| RRE0072 | I support the broad directions in the royalty review proposals, they do seem to consider the cost-structure of the oil and gas industry and are sensitive to commodity prices. Implement them, or most of them fully, but do it in a collaberative way with industry. Thanks |
| RRE0073 | Tax the hell out of Big Oil. Alberta has the product they need/are addicted to, and on top of that it's in a safe part of the world. Be North America's Norway Alberta. Free education, etc... Alberta has the opportunity to push Canadians and Albertans a giant step forward, into a new era. Do it. |
| RRE0074 | Dont kill the goose that layed the golden egg guys, modest reforms implimented over time may be acceptible to the industry, but a rabid cash grab as per the review will have dire consequences to the Alberta economy. Try and practise moderation for the good of us all. |
| RRE0075 | I'm very afraid that if this Royalty thing goes through it's going to devastate oil and gas in Alberta. If enacted, the recommended royalty increases will cause a great impact on our industry, which is currently near 5 year low rig utilization. It will have an impact on all sizes of companies, and I think will have a huge and immediate effect on service companies if it is enacted. I work for a service company and fear that my job will be one of the ones sacraficed if this happens. Please reconsider putting this into reality. |
| RRE0076 | I believe that the Royalt Review Report is going to cause me, and my family to lose our jobs and possible our homes.. I work in the Oil and Gas Industry and I know that my company is already taking steps to stop drilling "just in case it goes thru" and that they have plans to go out of Province. I love living in Alberta. Please do not the suggested actions take place. Thank you. |
| RRE0077 | I wish to comment on the Royalty Review Panel recommendations. I strongly oppose the recommendations to increase royalties. The royalty increase will harm Albertans and oil and gas industry in the province and all related industries and services in Canada. [Information Removed] |
| RRE0078 | The resources of this province belong to the people of the province, not American or Chinese oil companies. My children go to a school that hasn't seen a coat of paint in 20 years. Additional royalities could be used to pay for health programs to fight obesity in schools or even paint. Stand up and quit giving our resources away. |
| RRE0079 | I think that the royalty review is allready outdated when you see that there is a royalty increase to producers effective September 1st 2007. The increase in royalties is due to the following amended regulations. AR 207/2006 - up to $500k increase in royalties by well AR 206/2006 - over $1m increase in royalties by well AR 205/2006 - unknown inpact These regulation changes should be taken into account before any other increases are made. I also believe operating cost increases and the value of the Canadian dollar versus the US dollar should also be a factor in any calculations of royalty rates. Operating costs are high, and oil and gas pricing is in US dollars. [Information Removed] |
| RRE0080 | I would be extremely disappointed (maybe devastated is a better word) if our government foolishly accepts the royalty reviews proposals as originally expressed. I feel the public has been misled (due to complete ignorance by our government) about the implications this proposal will have not only on the oil & gas sector, but the entire Albertan economy and every Albertan. The wide-ranging effects of such a short-sighted royalty increase are many. Why hasn't the government addressed any of these obvious issues to the public!?! It is virtually common sense that if you increase taxes on oil & gas companies, you are going to decrease the amount of projects they plan to carry out. Countless drilling, oil sands projects & the like will be delayed, cancelled or scaled back to meet certain return-requirements by these companies. Guess what happens if drilling is curtailed indefinitely? Government revenues will never be realized! Jobs will be lost both in the oil & gas industry & every sector of the economy that it drives. Please don't disrespect the people of Alberta with a flawed proposal such as this that could ultimately change the face of Alberta's economy in a negative way. Put more time into it & come up with an acceptable solution. Please! |
| RRE0081 | I am an employee of a major Canadian oil and gas company. As such, it may be surprising to you that I generally support the royalty review report's findings - in direct conflict with the stated position of my employer. I believe that, in the current high price environment, Alberta's royalty system does not recover an adequate share for the resource owners (Albertans), and that this has contributed to excessive development, especially in oil sands, which has led to inflation, infrastructure strain, and smothering of other industries in Alberta and Canada. A change in royalties isn't necessary to change this - the market for labour and materials will do it just as well - but the current system was not designed with the current price environment in mind. A change is needed. I do agree with industry assertions that these changes will bring about a recession if prices remain as they currently are, but I also believe that this recession is inevitable with or without the royalty changes. Eventually either falling prices or rising costs will dampen capital spending. In any case, the recession will be short lived - either costs will fall or prices will rise again in response to the recession, and activity levels will resume. This will mean short term layoffs and economic hardship, but as I say, I think these are coming one way or another - better to fix a flawed system now. The only concern I have is that, in my opinion, the proposed scheme may dissuade the industry from pursuing deeper, riskier gas targets in favour of continued development of shallow gas and oil sands, which in my opinion put more strain on the environment. I am also concerned that the proceeds from increased royalties be handled responsibly - no more "prosperity cheques" or wrong-headed government projects - we need to start investing in our infrastructure again, repairing institutions like the the public health and education systems, the EUB, Alberta Environment, and Alberta Energy which were crippled by early 90's cutbacks. Most of all, we need to put more of our non-renewable wealth away for the future, because eventually the goose will stop laying the golden eggs to which we are now addicted. |
| RRE0082 | I don't believe that the Royalty Review Panel was an unbiased neutral panel. They refused to use the actual cost increases to energy producers over the past 3 years by claiming they were artificially inflated. They also stated that these companies should use a bidding process to reduce these costs. I was taken aback by the inference that we're not smart enough to do this on our own. I have 42 years experience in the energy industry in Alberta. I work mostly in the winter months as a contractor coordinating winter drilling projects in northeastern Alberta and we put all the contracts out for bid. The costs have gone up because many of the service providers especially the drilling and trucking contractors have had to replace old equipment that was becoming obsolete and in some cases unsafe to work with anymore. These companies have also had other cost increases like 2 to 3 hundred percent increases in insurance costs. There were also statements made by panel members such as "they should just leave it in the damn ground" when someone reminds them that Alberta has no undeveloped conventional oil reserves and very little conventional gas reserves left. Someone in government needs to stand up and tell it like it is. The slant put on this controversy by the media is just plain bulls**t. The present royalty system was put on place because the province has a huge resource in the oilsands but oil companies were reluctant to develop it because of the amount of investment required and the length of time it takes to get any returns on investment. To make the changes recommended in the review is just not a good way to do business and the province might never regain the investor confidence that would be lost. The report claims Alberta would gain 2 billion dollars a year in royalties if the changes are put in place. That may be so but would only last a couple of years and then would drop sharply as production drops. Along with this we will have the loss of probably more than 25,000 jobs. At an average of $80,000 income per year there goes 2 billion from the provincial economy. The profits of the natural gas side of the industry have always been varied but anytime there are good profits the companies reinvest in Alberta. This 2 billion dollars is better off in the hands of the people who spend it and keep the whole economy going. We constantly hear from the media how most of the population doesn't benefit from our energy sector. Do they really think that places like Superstore, McDonald's and Tim Horton's would be paying starting wages of 10 to 12 dollars per hour plus better than ever before benefits in Edmonton if not for the robust economy in the energy sector. At the company where my wife is employed which is not directly related to oil and gas most of the employees have recieved increases close to 40% over the last 4 years. Every employed person in this province has income gains far exceeding the cost of living over the last few years. I know of servers in restaurants who are being paid 10 dollars an hour and are taking home 500 dollars a week in tips. The main setback for many in the province is the lack of affordable accomodation especially for those who rent. This needs to be addressed but not by killing investment in the energy industry. Letters to the media by someone like me are simply treated as another rant by an energy industry representative. Someone in government needs to wake up and remind the people just how well off we all are and that everyone really is getting a share of the economy. |
| RRE0083 | Are you Nuts!!!! I'm from a small Alberta Community and since Ed annouced this ridiculous idea it has effected our town already! Most of the workers of the oilfeild are not working !! They're getting served with lay off notices.If Ed wants to see what he's already done to our province tell him to leave his cushy office and drive down to central Alberta so he can see the empty shops, and the rigs racked in trucking companys yards,all the equipment just sitting there.Talk to the oilfeild workers who are barely being able to make a go of it and holding onto their houses by a thread. But I guess that would help with the rising cost of housing because lots would lose theirs.Talk to the people who run clothing stores,parts stores,etc.. they all are feeling it already!Talk to the people this is going to affect instead of some suit who's never spent a day getting his hands dirty in his/her life. He'll lose the oil companys and the unemployment rate will sky rocket! If he pushes this threw he will single handedly ruin Alberta economy over night.Good job!! I wonder if he'll get re-elected I think not!!! |
| RRE0084 | I believe that there are fundamental problems with the data used and assumptions made to prepare the royalty review report. If the proposed royalty changes are adopted, Oil and Gas companies will stop investing in Alberta and start investing in other areas in Canada and the U.S. that will be more economically attractive. This in turn, will slow down Alberta's economy and eventually severely damage our province’s future. Sincerely, [Information Removed] |
| RRE0085 | I very strongly support the recommendation to adjust (increase) the royalty rate. Business partners share struggles in difficult times and profits in good times. Alberta made substantial concessions to its industry partners when energy prices were low. Now that prices have escalated, it is apprpriate that the concession of low royalty rates no longer is fair to one of the partners. Royalty rate should be raised! Increasing the rouyalty rate should have dual advantages of increasing provincial revenues and moderating the growth rate of an over-heated economy. The increased revenues can be used to address some of the infrastructure problems that, in part, have been created by rapid expansion of the energy sector. Moderating growth will help reduce enviromental degradation, water consumption, the Alberta CPI and the substantial labor shortages faced by large and small businesses across the province. Finally, I do not accept the arguement that changing the Royalty structure will drive business away from Alberta. Business still has a fundamental profit motive. At current, or much even lower prices, the energy sector knows it will remain profitable. Danny Williams succesful negotiations in Newfoundland are testament to this profit motive. Sincerely, [Information Removed]Sherwood Park AB |
| RRE0086 | I believe that now is the time to increase royalties that belong to all Albertans. The oil companies are making money (possibly too much) and are causing the problems with services in many cities, Gradne Prairie and Fort McMurray. They have siphoned off trades people by offering high wages, depleting workers in other industries such as construction which in turn escalates the cost of housing. It is now their turn to contribute to a vibrant economy via increased royalties. That will do two things it will possibly make housing afforable again for young Albertans and it will stop the stupid spending that has taken place in the Oilfield sector. You have my full support, thank you for increasing the "wages" for Albertans through the royalty increase. |
| RRE0087 | A discussion between the goverment and the oil companies must take place. A meeting agenda to discuss what economical royalty figure benefits all parties is what is needed. You simply cannot throw a figure at someone and expect the company to accept it without any discussions. Negotiate, negotiate, negotiate what figure works for all parties involved. This I mean by us the Albertans, the Government and the oil companies. We are all affected. Let's not lose sight of this. Thanks, [Information Removed] |
| RRE0088 | I believe that Albertain went through some real rough times with all the cut backs, we were being told, by Ralph Klien and the Members of Parliment it had to be done.And now we find out , we weren't getting enough in Roylties. So who is running this Province, The Oil and gas companies, I don't remeber voting for them. I believe the Roylties, should be up to 4 Billion a year to get back what we lost. If these oil and gas companies want to leave, let them, any company that pulls out now, can not come back till they pay for the Royalties, they for got to pay. Alberta will at least have the water these Companies are wasting to get the oil out, plus I heard in the oil Sands for every barrel of oil it takes a barrel of water. I hope future generation can drink oil! If we get higher Royalties does that mean the Tory Government is going to start taking care of the poor Albertains that need decent food and shelter, or is that up to the United Nations. Tories are building 909 million dollar clinic, there's not enough staff at nursing homes, were are the people going to come from to work it. We've got 909million for a clinic but can't solve the problem of homeless people, and were thier next meal is coming from. I feel ashamed to say any more I'm born and raised, Albertian. We can take care of the Rich but not are own . We need an Election in this Province, I'm not voting TORY enough is enough! |
| RRE0089 | It is important to me as a Canadian and Albertan to voice my opinion on this matter. It is also important to me that Alberta ensures that the royalty policies continue to support a healthy investment climate. The result we all are seeking is a province where government’s future revenues are balanced by the need to support continued, robust industry investment. I am sure the Alberta government is focused on or will allign its focus on "doing it right" and with “integrity”. By openingly listening to the concerns of the "People" of Alberta, the Alberta Government that we trust in will, with the right facts, make the right decisions for the future benefit of all, not just the egos of some. |
| RRE0090 | Dear Sir, I am writing this e-mail in hopes that a sober voice can be found to react to the recent recommendations of the September 18, 2007 Royalty Review Report. Firstly, I am a young professional who works in joint venture negotiations at a junior exploration company in Alberta. As such it’s important to note that while I do have a vested interest aligning with the oil and gas industry, but I also have a better understanding of the oil and gas industry as a whole than many of the people who fully support this report’s recommendations. My reaction is not one against any form government intervention in business, or one that a government’s primary role is facilitate business. I agree with the goals of this report; specifically that Albertans deserve their fair share of oil and gas revenue. My concerns lie in what I believe are some serious misconceptions (and I believe blatantly misleading statements) on the part of the panel that conducted this report. I will summarize these below and try to be as concise as possible. 1. The panel used a cost structure from 2005 (source: [Information Removed] ) It’s no secret that costs have risen drastically over the past two years. Why then would this panel use lower 2005 costs to base a future royalty regime upon? Alberta is the highest cost basin in the world to operate in, and royalties must reflect this reality. 2. Impact on investment I fail to see how the government can retroactively look at last year and state that they could have collected $ 2 Billion more in royalties. It is simply incorrect to assume that increasing royalties will have no effect on investment. I’m not saying that investment would have dropped and completely negated that $2 Billion increase, but surely it would have some effect. On a go forward basis the panel claims this increase will not decrease investment, yet we have already seen a decrease in investment this year in Alberta (30% decrease in drilling) based solely upon decreasing gas pricing and cost increases. Seeing this cost sensitivity I can’t understand how the panel contends that an increase in royalty (an off the top cost that does not take into account other costs) will not impact drilling. [Information Removed] has stated that it will decrease its Alberta budget by $1 Billion and [Information Removed] has stated its entire 150 million dollar budget has now been directed to Saskatchewan. Simply put the panel has drastically underestimated the impact this will have on investment, and thus total production (and royalty base) in the province of Alberta. 3. Impact on type of drilling Alberta is a mature basin with smaller pools and lower production that many other basins in the world (18 boe/d average compared to 3300 boe/d in Norway). This royalty regime is most punitive to oilsands and high production gas wells. Stating that the decrease in these area’s will be picked up in “conventional development” is impossible as conventional reserves are decreasing in both size and availability. Yes 82% of gas wells may pay lower royalties, but those wells only account for 25% of production. It seems more likely to me that companies will switch to lower productivity wells which would lead to a decrease in royalties paid (according to the panel) and a decrease in overall production. 4. The panel did not include Landsale bonuses in “government take” These amounts totaled $3.5 billion in 2006 and $2.4 Billion in 2007. These amounts have risen drastically over the past few years and need to be taken into account as part of the “government take”. It is no surprise that our royalties seem low when the panel used costs that are 20-30% too low ( [Information Removed] ) and ignores $2.5 to $3.6 billion in revenue. Further, we have seen in the past year that investment in Alberta is cost sensitive. Drilling has decreased 30% based on higher costs and lower gas prices. In light of this the panels assertion that increasing royalties will not decrease activity seems extremely illogical to me. I would like to thank you for taking the time to read this e-mail. I hope that I have adequately explained my concerns and that you feel these deserve consideration in whatever royalty decision the government makes. Yours Truly, [Information Removed] |
| RRE0091 | Both my wife and are employed in the oil and gas sector and reside in Calgary. My wife works for [Information Removed]and I work for [Information Removed]. We are deeply concerned with the proposed royalty changes the provincial government is contemplating as laid out by the Royalty Review Panel. The Panel has failed to consider the negative economic impact the proposed changes would have since inevitably at the margin projects (under the current royalty regime) will not take place if the proposed royalty changes are made. It will not do the Alberta government any good if they are collecting higher royalties from a lower production base and have lost out on personal/corporate taxes due to reduced economic activity. We can tell you this: if our economic interests are negatively impacted as citizens of Alberta we will remember this at the ballot box! |
| RRE0092 | Dear Sir/Madam: I am writing to ask the Alberta government to reflect very carefully before blindly undertaking to implement the Royalty Review Report as submitted. I have reviewed the report and other material that has been generated in response. It is clear that the report has major technical flaws. The failure to consider billions in [Information Removed] lease sales bonuses received annually and the disingenuous exclusion (some might suggest) of British Columbia and Saskatchewan as comparative models come to mind as examples. The Government of Alberta and not the review panel is ultimately accountable to voters. This fact will be abundantly highlighted should Alberta's most critical industry undergo an economic implosion should ideology replace common sense. Yours truly, [Information Removed] Calgary, Alberta |
| RRE0093 | The oil companies should pay us a fair market value for the non-renuable resources they are extracting. Their profits have never been higher, there profits should be embarassing to them. I think you should increase the royalties and invest the extra income in schools and medicine. |
| RRE0094 | alberta's natural resourecs are forthe benefit of ALL Albertans - including FUTURE ALBERTANS. non-renewable resources MUST be managed with this in mind. This includes the government of Alberta collecting royalties and securely investing saving for future generations. While Alberta must remain competitive, our MLA's must not be pressured by corporate scare tactics that they will move elsewhere - this is simply not feasible for them given the profit in the industry - and some of the highest corporate salaries in the world. Oil and gas companies in alberta have benetifed from a royaly regime that they knew would not last forever. As a citizen of alberta, I urge the Government of Alberta to do what is best for citizens and the children and grandchildren of our citizens, not what is best for corporations. The Report clearly demonstrates that Alberta can and will remain competitve with higher royalties. |
| RRE0095 | Many seniors have already lost millions by changing the rules to the income trusts. dont do it again. Revisit this in a year or so. |
| RRE0096 | Leave conventional oil and gas alone |
| RRE0097 | Find a middle ground - say between a 4-8% increase to keep everyone happy. |
| RRE0098 | DON'T MESS WITH THE ROYALTIES!!! |
| RRE0099 | Proceed with all recommendations! |
| RRE0100 | Please leave it alone. There will be a lot of people going bankrupt. All your going to do is cause a lot of tax payers to be hurt financially. Cow/calf operators are depending on the oil patch to pull through. |
| RRE0101 | I have seen so many reports of errors and erroneous assumptions. We need to take more time on this. The panel may be intelligent people...but I doubt they had the combined capacity of the various groups who have sinced analysed their methods and conclusions. Lets ensure this decision is RIGHT...it is FAR more important than being FAST! Politicians are voted in to make the RIGHT decisions. FAST decisions should be reserved for simple issues. Thank you. From Deutch Bank....and MANY others.... http://www.capp.ca/raw.asp?x=1&e=PDF&dt=NTV&dn=126940 Excerpt. Cutting PTs for Suncor and PetroCanada -10% Our first reaction to the Alberta government's recent royalty review panel report was that it was authored by a visiting delegation of Venezuelans. Entitled "Our Fair Share" it squarely recommends higher tax to compensate the Albertan in the street more for self-perceived under-taxation. This is justified with multiple illustrations of the lower tax take in Alberta relative to other oil regimes. However, it almost totally fails to address one of its primary objectives, and crucial marginal issue: RETURNS. Adding instability, proposals take IRRs from relatively bad to worse. Compan Global Markets Research y Following Venezuela’s lead? The panel’s task was to assess the position of the royalty regime relative to other global regimes “taking into account project returns”. This was the first point outlined in the list of issues to be addressed. Yet we read this report as positioning a new regime almost entirely based on “government take” of cash flow, regardless of returns or value. Inherent risks such as CO2//global warming/Kyoto are not factored into the required return; nor are discount rates, Canadian dollar costs vs US$ revenues, nor barely the issue of the huge discount of Canadian crudes to WTI. Indeed, the proposal is to base an additional escalating “severance tax” on WTI prices, which have disconnected from local heavy oil prices to record highs even as the report is released. Above all, the oil sands have some of the lowest returns of any geographic regime, with a Pre-Take NPV10/boe of only $11/bbl at $75 WTI, or 91st out of 105 regimes examined in value under its current terms. When examined in terms of govt take relative to value of reserves, we see the current regime as fairly positioned: relatively “low-take” for “low value” reserves, with currency, oil price, local cost and environment risk. Power to the people – the Stelmachistas? The oil and gas industry in Alberta, already struggling to cope with escalating costs and labor issues that have dramatically pressured oil sands project economics and reduced natural gas drilling, are now faced with a proposal that will knock over 10% off of upstream valuation and 1% off of project returns. Suncor (depending on Crown Agreement) and Petro-Canada, will see 2008/09 earnings reduced 9% and 2%, respectively – and long term value reduced by up to -10% at least depending on oil prices. Those hardest hit are companies with upcoming, major developments, with Husky and Petro-Canada losing 10% of upstream value, while Suncor, sheltered by its Crown Agreement, would only lose 6%. Risk, risk and risk; and there’s risk. Above all, be warned about risk. This is a negative for Canadian oil sands plays, and a key risk. It remains |
| RRE0102 | I believe an increase in royalties is good for new oil and gas. Should probably be on a sliding scale, based on selling price of oil and gas. Increasing royalities on existing oil and gas is not a fair plan. |
| RRE0103 | My message is plain and simple: I would just like to encourage the Government to truly listen to and take into consideration all of the facts that are being presented on the Royalty issue. This is not a popularity contest and I am concerned the Government will respond to the majority of an uninformed public who are crying out that they're being ripped off, that the Government needs to take immediate action to remedy the "outrageous" selfish action of the oil industry. It is incredibly dangerous to make decisions based on emotions rather than facts. |
| RRE0104 | What I would like to know is why doesn’t anyone address the Government’s obvious gross ineptness at managing money. If our government did spend money on the wrong things, like sending MLA’s to Vegas, perhaps we could build hospitals and roads with the money that we have instead of asking the Oil Companies to fund what the government should be responsible for. And, by increasing the taxes of the oil companies is the gov’t planning on lowering taxes for the average Albertan, I doubt it. So, who exactly benefits from the “fair share” program? The government that is who. So [expletive] MLA’s and other gov’t officials can continue to spend money frivolously on things like private jets to take them on trips that have no benefit to the people of this province. Nobody is actually thinking of the average Albertan, the gov’t is fuelled by greed. Argh, the government [expletive] me off!!!!! |
| RRE0105 | In my opinion, the government needs to increase the royalty rates so that ALL Albertans get their fair share of the revenue that is generated from our natural resources. I realize that it costs money to get these resources out of the ground, but the oil/gas companies have been recording huge profits for many years; on the backs of Albertans. If increasing royalty rates slows the rate at which companies extract the oil and gas, so be it. I don't think we want to "gouge" these companies but they have had it VERY GOOD for a long time. It is time we reclaimed the resource revenue for the betterment of our province and not just corporations. I wholely support increasing the royalties. |
| RRE0106 | Hello, I am writing to express my concern over the recently announced recommendations regarding the royalty program in the province. I do work for an oil and gas company. But the company I work for will continue to thrive. It is my concern for the alberta economy that has me worried. The result of the recommended royalty review will be an overall cut in capital dollars spent in Alberta as resources will no longer be economical to explore for. The result of that will be less money spent on community programs, corportate sponsorships, and overall less money spent in smaller communities in hotels, restaurants and the like. It won't be the big companies that hurt as a result of this. It will be the individual albertan who is hurt as a result of the overall slowdown in the alberta economy. There will be less jobs, less opportunity, and less quality of life. I agree that changes need to be made, but I'm hoping that they can be more moderate and mutually beneficial. Albertans rely on oil and gas and I would hate to see a serious fallout. Thankyou for your time and consideration. Sincerely, [Information Removed] |
| RRE0107 | To Whom it May Concern: I am proposing a progressive royalty regime that will result in bigger royalty when an oil sands project is more profitable as a result of higher oil prices, operational excellence or technology step change. The concept is to set a progressive net royalty rate as a function of profitability. I define profitability as the ratio of cumulative revenue to cumulative costs, called RCR. When RCR is < 1, gross royalty rate (GRR) of 1% on gross revenue applies. When RCR is greater than 1, the royalty is the greater of GRR on gross revenue or net royalty rate (NRR) on net revenue. NRR equals 25% at RCR < 1.25, or 30% at RCR < 1.5, or 35% at RCR < 1.75, or 40% at RCR < 2, or 45% at RCR >2. My rough estimate is that Alberta will take in 24% more royalty discounted at long term bond rate. And the increases occur shortly after payout. The advantages of this progress scheme are many: one, it is open ended at the high end. As a result we do have to carry out royalty review every 5 years. Two, it improves the existing regime which does not allow higher NRR when the project is more profitable. Third, it does not have the deficiencies as Alberta Royalty Review Panel's recommended OSST or fixed NRR. If you are interested, I could send you my spread sheet for an in situ case and I will be more than pleased to discuss it with you. [Information Removed] |
| RRE0108 | if you go through with your plains to bleed the oil companys dry I really hope you enjoy your time in the postion you hold now because I really think that it will be only one term cause no one will want to leave the unemloyment line to vote for you |
| RRE0109 | Mr. Stelmach should go ahead and approve the commisions recomendations fully. Alberta is booming and raising royalties should put the brakes on in a major way. Too many people have jobs, too many people have way too much disposible income, too many people are benefiting from the Alberta advantage. It only makes sense to squash this boom before the oil and gas companies destroy the world. Won't someone think of the children. |
| RRE0110 | 30,000 jobs could be lost, this alone would be a Provincial disaster!! Keep our oilfield!! Don't raise the Royalties !!!!!!!!!!!!!!!!!!!!!!!!!! Or you will raise the unemployment rate and what have we gained in the long run???????????????????????? |
| RRE0111 | As an geologist working in the Alberta Basin for almost 30 years, I cannot see the logic in upsetting the current investment environment in our oil industry. Public opinion is always against the industry, but we all know how unsophisticated the general public is about the industry. The general public has always seen the industry as a cash cow, but fail to understand the risks in oil and gas exploration. Investment in oil and gas exploration can be very risky and I belive the general public has little appreciation for this fact. I do think the oil sands royalties offered were a bit generous as demonstrated by the 'gold rush' of campanies from around the world that came and bought the land. However, the conventional industry is like an old worn out car that we keep trying to get more miles out of. If you put undue expenses into this asset, the car, or the industry will head to the scrap heap. The most important message to offer is to recount a conversation last week with a US investor. I run a private oil company that is invested only in Saskatchewan with efforts in oil and gas exploration We travelled to [Information Removed] to visit an investor to seek support for equity capital that we are raisning to support futurtre exploitation. The invstor holds about 140 oil companies as assets with the majority in Canada, including oil sands. In total his fund is approximatley $7 billion . At the beginning of the meeting , he stopped us to confirm that we are only Saskatchewan producers. If we had been an ALberta producer, he warned us that he would have likely declined participating as a shareholder. All went well and he commited funds. I hopew this is a warning to those that think they can mess with the conventional industry with no severe consequences. [Information Removed] [Information Removed] |
| RRE0112 | This will negatively impact our revenues from working interests on [Information Removed]properties. Additionally, if implemented, increased royalties will negatively affect my company's growth prospects. Ultimately, the royalty increases you propose will affect my earnings and the lifestyle of my family. Alberta is extremely expensive to live and do business in. I do NOT support any increases to Alberta [Information Removed]royalties at this time. |
| RRE0113 | I would support an increase in government royalties, provided that the increase in revenue is passed on in tax cuts. |
| RRE0114 | I think this is a horrible idea and it will chase away a lot of business for the province . Why after all these years would you do this ? Canada = tax , tax ,tax |
| RRE0115 | we should leave the royalty rates as is. If you change them, I will vote Liberal for the first time in my life |
| RRE0116 | Hello I fully support the findings and recommendations of the Royalty Review panel. I look forward to their adoption in full by the government. Soon. I am worried that the government may cave in to the predictable pressure tactics of foreign companies, who are opposed to Albertans receive a fair return on provincially owned resources. These are the companies that have been reaping windfall profts at our exepnse for years now. Thank you [Information Removed] |
| RRE0117 | Dear Alberta Government, I will admit that the royalty review for many Albertans is a grey topic, even for myself. I believe in many regards it has recieved unfair opposition. Upon hearing the panel's suggestions I immediately reflected on the outcome of the NEP imposed on Alberta by the liberal government of the 80s. Perhaps the two are not similar at all but in that they will draw substantial money from the producers and employers of Alberta. I believe NEP cost Alberta 100 billion dollars while with this royalty I heard numbers of 2 billion, the key point with my correlation is more money is being asked from the industry to do business in Alberta. On the flip side I myself am a frustrated Albertan, I am frustrated with the cost of living and believe I will look to outside the province to be able to provide for my family. Why is this ? Honesty those in charge of the industry have gotten richer and the average Albertan has stagnated. How can it be housing is 200% from three years ago and my wage increased maybe 5% in that same time span. This is an indication the wealth is not getting trickled down or distrubuted to Albertans. Perhaps the panels recommendations are necessary and timely to help cool down the Alberta economy before it overheats and takes the workforce with it. We are burned out because our money cannot go as far in this province. The panels recommendations may bring everybody back into prespective by letting Alberta take a much needed breath. This is because the industry would slow down as it absorbs a 2 billion loss to it's bottom line, with oil prices relatively high this is not too much for the government to ask. However when oil prices fall below a certain benchmark we should consider to reduce or make an adjustment of our take upon the industry to keep things going. Sincerely, [Information Removed] |
| RRE0118 | We have twice the reserves of Abu Dhabi ,yet their 433,000 citizens are worth 17 million each .whats wrong with this picture. It is not your mandate to hold private meetings with multinational oil companies. you and your cabinet represent Alberta Taxpayers,Students,the frail and elderly as well as the generation of children growing up in Alberta now. concerned Father of five |
| RRE0119 | Coming from [Information Removed], only one year and a half ago, I have taken a lot of risk and sacrificed a lot, in terms of finances and family life, to come to Alberta - a province within which I feel I have made a positive impact in terms of providing taxable income, spending power, and community well-being since my arrival. I also recently purchased a house in Calgary which, while I am grateful to have been given the opportunity to get into the Calgary housing market, I also feel I paid a high price due to the "booming economy". As a person who has put a lot on the line for Alberta, and who has a lot at stake, being a sole breadwinner of my family, the recent findings and recommendations of the Royalty Review Panel concern me. Though I work for a large energy company, I have read as much as I can on both sides of the debate to try and gain an objective opinion on this matter. It is in my opionon that investors will push to have their money in those markets that are most lucrative and less risky. With a royalty plan such as the one that the Panel is proposing, the market in Alberta will become that much less competitive. Labour is expensive here, as well as materials. We need the EnCanas and CNRLs and SUNCOR's to inject their investment dollars within our economy. It will not take much for these invenstment dollars to be dispersed elsewhere outside the province, causing a domino effect that may threaten to pull Alberta into the next recession. As a taxpaying and law-abiding member of Alberta, I cannot afford to lose my job. I also cannot afford to move where the grass is greener anytime soon. Alberta has been good to me, and I feel I have been good to Alberta. This report, I fear will put my employment and, therefore, my family's well-being here into jeopardy. Please temper your decision. A lot rides on your reaction to this report. Thank you |
| RRE0120 | The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, Ø The Report bases its recommendations on outdated or erroneous costs, and Ø The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today Ø Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and Ø The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta Ø The recommendations will have a substantial negative impact on Alberta and Canada’s economy, Ø The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, Ø The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and Ø Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. |
| RRE0121 | I'm a lifelong Albertian and PC supporter but watching this royalty debacle unfold is disturbing to say the least. In an effort to get a little extra support you opened a can of worms at the wrong time. In an industry that's success is totally determined by commodity pricing that we have no control over it doesn't make sense to pick the best 3 or 4 years the industry has had in recent memory and relay this into a reason for total tax restructuring. Of course to people outside the industry directly it looks like the oil companies are fat cats because memory is short..............most people only care about the record run the oil companies have had recently but it hasn't always been this way and as history has proven it will get tough again.Do you forget the hard times this industry has had and how it tends to boom than bust. Don't base your royalty decision on data from highs in a market but rather try and keep a long term outlook in mind. With how quick oil & gas prices can change it's best for all Albertians to keep a tax structure which makes more when industry is making more but also takes less when industry is making less. Today's gas industry is already in trouble with current gas prices and your review panals recommendations will completely run a good thing Alberta has going for it. If oil companies don't do well Alberta doesn't do well and if anyone thinks they aren't affected by the oil and gas industry in this province they are on drugs. Explain to them how come Albertians have no PST,no provincial debt, a heritage fund, low taxes & oh yeah maybe show them how much your governments budget has grown in 5 years and where that money has come from.To say Alberta isn't getting it's fair share is joke, evey good payed oil worker has spin offs that ripple through out the economy, you cut these jobs out and forget your increased royalties. Besides decreased royalties from decreased activities you'll have decreased revenue from taxes from corporate to individual........then when the spiral is in full affect you better have a good unemploymed plan in place......Klein made tough decisions at tough times for this province ( privitization, debt repayment etc ) these were not popular decisions at the time and he wasn't making them for quick voter support but rather he had a vision that at the end of day benefited all Albertians. That's why he'll always be admired by most Albertians. Now lets look at Getty, his legacy is a runaway government, no accountability and making alot of decisions that got voter support for the short term ( officially you call them decisions I'll call pay-offs for support ) and the result is not alot of Albertians respected his government and Alberta's economy payed the price. You've only been in office a short time and you have the potential to be a Klein type government, visionary and of long term benefit to Alberta, or a Getty government. If this royalty issue is any reflection of your government I think your legacy will that of Don Getty's and unfortunately all Albertians will suffer. In case you haven't already guessed I'm employed in oil & gas industry but what do you expect I live in Alberta. If you are bent on short term support and least do us all favour for safety sake. Widen highway #1 and repave it so when the exodus back east starts at least the highway will be safe........... |
| RRE0122 | Please do not destroy the Alberta economy with such a ridiculous increase. This will have a dramatic ripple effect; Thousands will be layed off. Does the Stelmach government really want to be responsible? There are better ways to make your mark. |
| RRE0123 | I'm really upset about this report and the impact it will have. With a low long term gas price forecast and the huge swing in the exchange rate the upstream gas industry in the Western Canadian Basin is already tenuous. I can't believe all the projects that are going to get cut because this is going to have a dramatic impact on the economics of the gas business. I'm seriously thinking about selling my home in Calgary and keep my resume updated for the inevitable blood letting the industry will see. I feel sorry for all the people who came to Alberta for the boom and the many many people in secondary industries who will suffer very real personal and financial losses/bankruptcies. Is Alberta forgetting what made us successful? The name of the report is ridiculous and presupposes that we aren't receiving "our fair share" and shows the bias inherent in the process. Really shoddy work. |
| RRE0124 | I have worked in the Oil Patch since 1975. While working for [Information Removed]I experienced the effect the NEP (another tax grab by government) had on Albertans. In this case the Federal Government thought they were doing the right thing for Canada with little regard for Albertans and the effect was devastating on the Oil Patch. I was laid off along with tens of thousands of oil workers. I became a contractor like tens of thousands of ex-oil company employees, as the oil companies adopted a leaner staffing policy. If the oil companies perceive that they will have less oil revenue to work with, guess who goes first the contractors like myself. Please consider the mix of employees you are about to have a negative effect on and also consider that many of us are 60 years old and already finding it challenging to find the next contract. I have “always voted conservative” but having second thoughts. Respectfully, [Information Removed] |
| RRE0125 | The Government of Alberta needs to accept and implement all of the recommendations of the Royalty Review panel. It is time once again to remember that the resources of this province belong to Albertans, not to the oil companies. Yes, we need these oil companies to help us realize the wealth that these resources bring, but the motives of the oil companies are not necessarily in the best interest of Albertans. Under the present oilsands royalty regime, Alberta gets almost nothing until the capital costs and operating costs are recovered. This would appear to mean that oilsands developers can keep paying the higher and higher wages and salaries to workers constructing and operating their plants that a tight labor market demands, since it does not really affect their bottom line. It is easy to build things with other people?s money. Under the present oilsands royalty conditions, where is the incentive for oil companies to be cost efficient? Many other businesses would surely like such a deal. No wonder oil companies are predicting such doom and gloom scenarios. Increased royalties could hurt their bottom line. But why should Albertans care about this? A large profit for the oil companies does not necessarily translate into a fair share for Albertans. Many in the oil industry have said that Albertans will suffer if the royalty structure is changed. They say that there will be an economic slowdown. Will this mean that housing prices will drop, that the rate of inflation will go down, that soaring construction costs will start to ease, that the uncountable number of help wanted signs will disappear? The Government of Alberta should remember that not all Albertans are participating in the present ?boom?. We have a ?Made in Alberta? inflation rate and many people?s salaries are not keeping pace with inflation, so in reality the present boom with its rising costs is actually detrimental to many Albertans. We already have a labor shortage forcing Alberta to import workers from other provinces. There are even discussions about changing immigration rules to bring in foreign workers to satisfy the demand for skilled labor. Adding to the current demand for workers by allowing even more oilsands development and upgrader projects would not really seem to benefit Albertans. Increasing the rate of oilsands development will only serve to add to inflationary pressures. Many municipalities are struggling now with infrastructure deficits and the costs to overcome these keep rising. Fort McMurray is a good place to observe firsthand the effect of uncontrolled oilsands development. It would seem logical that a city so close to the hub of activity should derive great benefit from increased development. However, when the mayor of that city says that it is time to put a hold on such development, it is clear that something is wrong. Obviously there is a downside to the current pace of development. Why not slow things down a bit? What is the hurry? The oilsands have been there for millions of years and are going nowhere. Slow the pace so that Albertans can enjoy a sustained period of strong, controllable growth. This could move the Alberta economy away from its historic boom and bust cycles. A slower rate would allow time to train people in the many trades and disciplines that the industry requires. This means that we would be training Albertans to work and live and make their homes in Alberta. We could avoid having a transient workforce that would leave once the inevitable bust occurs. A slower rate of development would allow municipalities the time to put in place the infrastructure necessary for an increased population, as well as work on the infrastructure deficit incurred through the years of neglect caused by debt reduction. A slower rate of development would allow time to investigate other methods for oil extraction, to study the effect of increased oilsands activity on our water supply, time to study what to do with the toxic lakes produced from oilsands extraction. A slower rate of development would allow time to discover ways to diversify our economy so that we can continue to prosper once the oil is gone. A slower rate of development would therefore allow more Albertans to realize greater benefit from all our non- renewable resources. The oil companies say that if the royalty structure is changed they will reduce their investment in Alberta and go elsewhere. I would ask those same companies where they would go. To Venezuela? the Middle East? Russia? the United States? Norway? Alberta is a safe and stable place to do business. The oil companies should be thankful to be in Alberta. There is really no risk in ?discovery? with the oilsands. We know where they are. Yes development costs are high, and rising. However, a large part of the reason for rising costs is the uncontrolled pace of development. Oil companies say that the price of oil is too unpredictable, so we must leave the royalties as they are now. Do they mean that there is too great a risk that oil prices will fall? Does anyone in the Government really expect to see $25/bbl oil again? When so many companies are so interested in getting a piece of the action in the oilsands, one wonders about the reason for this. Is it because these companies all want to help generate more income for Albertans? Hardly likely. These companies want to invest in the oilsands because it is such a good deal for them. They likely expect that the present royalty and tax format will not last forever and they want to get in now. It is no surprise that we have heard such an outcry from the oil industry. However, such dire predictions of an economic downturn coming from the very ones whose bottom lines may be affected seems rather suspect. Remember always that their |