Royalty Review Panel - email submissions part 3 of 7

Random Nbr Released Comment
RRE2000 In regard to feedback on the royalty review I personally feel that between the price of oil and the value of the canadian dollar right now that this would harm us greatly. I am president of a trucking company and also of an oilfield filtering company who emplys 65 people and we need a busy winter. If this is not handled properly we could have a lot of hungry on our hands.
RRE2001 My husband and I have worked in the Well Servicing industry for [Information Removed]. The industry has enabled us to build our lives to a level that we are happy with, and many other families in the [Information Removed], can agree. However, the Government must ensure that the Oil Industry is held accountable for all expenses it is causing and will cause in the future to Albertan tax payers. The proposed Royalties would be available to address the immediate and long term costs incurred directly by the Oil Industry. For example, up-keep of County roads used by the Industry, and addressing the Province's growing water shortage (Oil Industry plays major role in causing this problem) etc. After having seen the ways of the Industry first hand for over 6 years, it is foolish to believe that the amount of industry the Province is experiencing would be free of detrimental environmental and social impacts. To allow Royalties to exist at the current level would put all future financial responsibility in dealing with these adverse effects onto our children. The children of the Albertans who are prospering now from the "zero responsibility Oil and Gas Industry"
RRE2002 The royalty review was there for a reason, the reason, the questionable health of the royalty regime. The prescription for a return to good health has been given, medicine is to be taken as prescribed to have the desired effect, therefore implement the recommended measures completely as given in the report. [Information Removed]
RRE2003 This reminds me of the dreaded National Energy Program when Ottawa stuck it to Alberta , now it seems we will be doing it to ourselves.
RRE2004 Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. Implementing recommendations from the royalty review will result in more harm than good for Albertans and the Alberta economy. Increased royalties for the province will create an even more adverse operating environment for oil and gas companies who work in Alberta. This will result in a significant decrease in the amount of oil and gas activity in Alberta, and thus, less royalties for Albertans and the provincial government. Wells you don’t drill don’t pay any royalty. If the recommendations are implemented, what is your plan for effectively, effficently and intelligently utilizing the royalty money? How can you expect Albertans to support the recommendations of the review, and the government who benefits from them, without providing any indication of your plans for this royalty money? The multi-level benefits which almost every Albertan sees from oil and gas activity in Alberta far outweigh any one-time cash distribution the government could provide in response to a surplus.
RRE2005 I strongly agree with the findings in the report. This province needs long term sustainable development of its resources, not the pillaging that has gone on over the last couple of years. A few people and corporations have reeped in a windfall, but the vast majority of Albertans have suffered with significantly higher costs on everything and substandard service due to many people looking to make it big in the oil/gas industry. Talking with those individuals now, I have discovered that many are starving for work since so many people flooded into the oil/gas industry to make a quick buck. The development of Alberta's resources must slow down and increasing royalties is an excellent way to do that for the long term future of Alberta. We cannot let this sprial out of control any further. Please heed the comments in the report and bring the necessary changes forward.
RRE2006 I would prefer to see this money left with industry rather than to the government. I am employed in the oilfield and am very concerned with the potential outcome if the recommendations are followed. Consider what a great idea Trudeau's NEP was at the time and what it did to the entire industry.
RRE2007 Why is the goverment of Alberta destroying the oil/gas industry with outragous tax and royalty premiums? I agree that Albertains need to understand the royalty forum but I don't agree with the recommendations. What we tend to forget is the currency exchange rate has moved 33% in the last few years and diminishes net backs to oil and gas producers. (Oil and Gas is bought and sold in US $). Increasing Royalty payments should not be a means of slowing down Alberta Red Hot economy. I vote conservative and a proud Albertain...Where are the Day's of Traditional Alberta Leadership gone? Where are the Ralph and Peter's that made this Province Great. Is there not a Leader in Alberta that can lead in a manner that can balance industry's needs and lead to public soical and economic prosperity for all Albertains??
RRE2008 The largest concern around implimentation of the new Royalties is both a slow down in projects, and an out right cancellation of "fringe" projects that rely on certain economics. Given the current conditions of the Alberta market (especially in labour) there is an excess of projects leading to escalated costs. It may not be such a bad thing to slow down a few of these projects for a longer term sustainability. Other than a few corporations located in Alberta, I do not see other larger corporations caring about sustainability in Alberta. Implimenting these royalties might lead to industry planning that spans greater years and leads to a more sustainable, longer term, economic growth. I am in support of the royalties partially because of this reason and partially due to the huge profits corporations are seeing from investment in Alberta.
RRE2009 While I agree that there should be a more balanced approach to managing and collecting provincial royalties, I would strongly urge the government to carefully consider the inevitable negative impacts on energy industry suppliers (everything from drilling companies, to small catering suppliers). I fear that while many government representatives have taken far too lightly the oil and gas companies' threats to move their capital investments elsewhere if the government fully implements the report's recommendations. Capital is very mobile and Alberta is one of the most expensive fields in which energy companies can operate. Please consider your response carefully and take a broad social and economic view of the implications of any decision.
RRE2010 If this Government wants to distroy Albertas economy ratify this proposed royalty change. After calculating the effect on my companys operations, we have decided that most of our oil and gas production will be un profitable. My job will be at risk. If this Government follows the wishes of the estimated 75% of missinformed Albertans it will be a biger mistake than the NEP. Does anyone remember that one. Oh ya maybe there is only 25% of us that were here and working at that time, and are still in the work force. Interesting demographic project for some of the intelectual socialists out there that beleive we can tax our selves into prosparity. My vote on this is dont touch it. If we change the royalty structure as proposed we should shut down every rig and close the valves on every well. Take a well desurved holiday and when we are all bankrupt we can all apply for a well fare cheque. Im tierd of working hard and supporting this country anyway. Maybe I should try sitting back with my hand out and expect the Government to take care of me like the 75% of Albertans that support higher royaltys. Lets assume that production remains the same and according to the estimates royaltys go up by 2 billion, will that really improve life for the average Albertan? Likely half of that money will end up in Ottawa to be squanderd away by the Feds. It is estimated that a dollar that stays in the economy creates eight dollars and fifty cents in growth and taxes. A dollar that goes to Government is still just a dollar at the end of the day. The best way for Alberta to grow and prosper is to create an enviroment that allows buisness to make profit. Higher royaltys or taxes is not the way. Im wondering if a proposal to raise personal income taxes or impliment a Provincial sales tax would be as popular with the average Albertan. Our former Premier was a man who did not always do what was popular but he did do what was right. I hope our current administration can show some back bone on this issue.
RRE2011 I feel it will have a huge impact on drilling / well servicing programs.It has the possibility of bringing the Oil patch to a halt,which in turn would be devasting for all of us Oilfield workers,as well as all the service companies. Thx for listening...
RRE2012 This will directly impact all my family, friends and co-workers who have put blood, sweat and tears into what they have because of the oil field today. If you make this change it will change all our lives for the very worse. Non of us will be able to afford to live. Please do not change the way Alberta is.
RRE2013 I am sure you are all receiving many of these emails. From what I can see is that the panel is not looking at the BIG picture of the Royalty Increase. The panel’s proposal will lead to many oil and gas operations in Alberta failing. I call on you our government to examine these proposed numbers and find a balance between a fair share of revenue while maintaining our oil and gas industry. Alberta is prosperous let’s not ruin Alberta. Many jobs in the oil and gas industry will be terminated. This affects our friends, family and neighbors. This will in return affect businesses throughout all of Canada and could ruin Alberta. As much as some believe “Alberta does not need the Oil and Gas industry to survive”, these people are blind. This industry defines Alberta and in turn makes business within Alberta thrive due to the dollars in the economy. We need a balance between the Royalties to maintain the industry and also give Alberta what we need regarding dollars for roads, schools and hospitals. However there NEEDS TO BE A BALANCE. YOU CANNOT RUIN ONE INDUSTRY TO BUILD ANOTHER. A COMPRIMISE WILL CONTINUE TO MAKE ALBERTA PROSPEROUS. Thank you for your time. Sincerely, [Information Removed]
RRE2014 all gas & oil leaving Alberta should have levy added to a barrel of oil or a gigjoule of gas.This should be used to lower the price at the pumps which belongs to albertans not the oil company who have been double charging us at pumps for some thing albertans own they don't!!!!They are well paid for what they receive maybe to much,fuel in the USA is alway $.20 a L cheaper when is this going to equalize???Maybe all albertans should buy in the Montana way cheaper,sure could upset the Alberta businesses.
RRE2015 New gas well drilling in deeper horizons is the only way that Alberta can maintain its place in the supply world. The new royalties on conventional gas are going to crush the economics of pursuing such drilling (deep, expensive, risky). Do not change the natural gas royalty structure or at least provide the potential for a higher return on such high risk expenditures. Also remember that when oil and gas companies bid on Lease rights in Alberta, they do the risked economics using current royalties and bid a great deal of any potential profit margin on the land price itself! Raise the royalty rate, reduce the land sale take - Rob Peter to Pay Paul! [Information Removed]Proud and Concerned Albertan!
RRE2016 I have skimmed the full report and read the oil sands sections in detail. Although the panel has some impressive credentials as someone directly involved in economic evaluation of oil sands projects I am clearly working with a different set of data than the panel is. There are a number of heavy oil projects that are economically marginal under the previous royalty structure (example [Information Removed]) which are likely to be cancelled if the new rules are implimented. The reality is that many of these projects don't disclose that they don't have acceptable economics because many of them are progressing towards selling the asset ([Information Removed], [Information Removed], [Information Removed], etc.) and cashing in. It appears that the panel has taken all of these press announcements and sales hype as gospel in their forecasts. DO THE PROJECTIONS FOR THESE BIG BOOSTS IN ROYALTIES UP TO 2016 CONSIDER THE NUMBER OF ANNOUNCED PROJECTS THE PROPOSED CHANGES WILL MAKE UNECONOMIC? The panel only makes general statements about 'fairness' and ensuring Alberta remains 'competetive' and an 'attractive' place for investment. Numbers are presented as percentages and other statements are qualitative in nature and in general terms. No consideration is given as to the Finding and Development Costs or Netbacks experienced in Alberta today, nor the operating costs which make oil sands in Alberta very expensive to produce. The netbacks are low and the capital required is high. Sure the percentage take (as calculated by the panel) seems low in Alberta, but the Profit Investment Ratios, Net Present Values, and Internal Rates of Return - some of the key economic parameters used to evaluate projects are undesirably low. This data seems to be conviniently excluded. WHERE ARE THE TABLES WITH THIS DATA? It is the economic parameters that determine how 'attractive' Alberta is to investment and production costs which state how competetive Alberta is globally. A bigger piece of the pie sounds great, but don't place your bets that the pie will be the same size if you cut into the bakers bottom line. Ultimately as someone who is involved in the industry I would like to say that the panel's report is not routed in the reality that oil sands producers face today. It suggests that producing companies and investors will continue to invest and accept a lower return in the midst of hyperinflation of capital and operating costs. The panel has cleary missed the boat on these major issues - instead it cites some convinient and evidently invalid comparisons and tries to use the argument of 'fairness' to draw in the majority of the people who simply don't understand the issue. On another note... There is already a substantial downturn in the drilling and well service industries - any additional driver to decrease activity in Alberta will have adverse effects. Prior to this announcement there have already been houses for sale on my own block. Why you ask? A rig worker who hasn't worked in three months has trouble paying the mortgage. How many times do you want this story to be told? Local service companies (such as [Information Removed] and others) have been laying off employees for months. What will a further slow down in activity mean for these employees? There is not a job across the street at a competing company because they too are experiencing the downturn in activity. The chain, unemployed or undemployed people have less money to spend on entertainment and services and seemingly unrelated industries begin to be affected. We have seen 'busts' before in Calgary - caused by the market and the government... NEED I SAY MORE?
RRE2017 You can't possibly be considering doing to Alberta what was done in the early 80's? The royalty review panel has to do everything it can to promote oil and gas exploration in Alberta. We are a prosperous and debt free province because of the past 20 years. Don't mess it up!!!
RRE2018 I am deeply concerned about the potential ramifications of the royalty review report. As a [Information Removed]working for an energy company, I was too young to know of the NEP of the 1980s, but its devastating toll on the Alberta economy and its people is still fresh in many minds. Now, rather than having a similar program forced upon Alberta by the federal government, we are considering imposing similar crippling legislation on ourselves. Although the royalty review report states that $2 billion more would be added to the provincial treasury, I don't believe it is taking into account the dramatic decrease in activity that would result from the full implementation of this strategy. As an example, in my group alone, after running the economics of our project under these proposed new royalties, only ~25% of our planned new activity for 2008 will be economic. Following this decrease in activity, the overall royalties received from this one property by the government will be lower, simply due to the decrease in activity. And if there's only 25% of the activity, we would only need 25% of the staff, and suddenly we are facing potential layoffs. Layoffs mean less people spending and putting money back into the economy, and an overall economic downturn. One in six people are directly employed by the energy industry, but there is no one in Alberta that would not be affected by the downsizing or collapse of the oil patch. Please ensure whatever action you take does not cripple the industry that so many depend on for their livelihoods and has made Alberta the best place in the world to live. Sincerely, [Information Removed]
RRE2019 I have tried to send my thoughts to the Premier, [Information Removed] and my MLA directly but I thought I should also send therm via this pipeline 'as well. I have read the report in it's entirety and find it to be fair and unbiased and reflects my thoughts completely. I feel it should be implemented in its entirety with no compromises or back room deals. All this fear mongering about losing the "Alberta Advantage" is just that, fear mongering. The industry has not a leg to stand on and probably fears the accountability issues (the best part of the report) the most. But lets face it. Even after implementation Alberta will still be the most competitive and politically stable place to invest in the oil and gas business. The companies know it. They just want the gravy train to go on forever. But the oil belongs to ALL Albertans and ALL Albertans deserve a better deal than we have been getting. Thank You.
RRE2020 I know that you are well informed of the slow down in actively in the oil patch now, but I dont think joe-albertan is. We know that if the big companies take their resourses out of alberta it will further impact us in the patch. I live in Grande Prairie and have been in the service rig industry sine 92. We have seen I lot of are emploies move out of are area because of the recent slow down. A number of the people that I work with have only worked a total of 200 hrs since the end of march. I am sure if you go ahead with all the royalty suggestions there will be the further slow down in the patch, like we saw in the 80's. I trust that you will take in to account the families of this great province, it is not about caving into the big oil companies, its about the children our future. thank you for your time [Information Removed]
RRE2021 Dear Mr. Premier, I support the two billion dollar increase in Royalties to be paid by the petrochemical companies removing our gas and oil. I hear their threats and am not swayed by them. If they wish to leave, then leave. There will be plenty of companies willing to take their places. And if it slows things down, then that is not a bad thing either. It is essential they we not back down now. We cannot allow these businesses to blackmail us. And your government should understand how angry the voters of this province are regarding the deficiency of monies being paid for our oil and gas. Take a stand Mr. Premier. Your political career depends on it. [Information Removed]
RRE2022 Why would you change a system that appears to be working so well? Our prosperity is the envy of the nation and we are debt free. Maybe we could get just a bit more from the oil companies, but there are obvious economic consequences as well. I don't know what the economice consequences will be, nor do I think you will ever get a concensus among experts. But I do know that the system already works, so why mess with it?
RRE2023 This whole thing is a money grab. We have a heritage fund that we have for a rainy day. Well it has been raining for to 2 years now. All this will do is pad the your pockets and make it easy for you to less fiscally responsible.
RRE2024 To the Government of Alberta: We , the undersigned, favour raising royalty rates as recommended by the Royalty Review Panel. We feel that the rate of development, especially in the oilsands, has been much too fast. A temporary slowdown would be a benefit to Albertans and all Canadians, as our overheated economy has too many negative effects. [Information Removed]
RRE2025 I agree whole-heartedly with the plans to increase the royalties charged to the oil & gas industry. I have heard for years that Alberta is being short-changed on revenues. While it is true that extraction from the tar sands is more expensive than other types of extraction, it should be noted that this is a stable country where there are few / no concerns about sabotage and civil wars. The oil & gas work force is provided with excellent education and good medical care as part of the taxes paid by all Albertans. The impact on communities such as Fort McMurray in terms of the provision of services for the growth associated with the oil & gas industry has been crippling. The multinational oil & gas industry should be paying its fair share to Alberta and not funnelling its (large) profits back across the US / Canada border or into investments in other countries. I am sure that the industry will be whining (and encouraging or intimidating their employees to whine on their behalf) but I cannot see them pulling out of Alberta. Oil & gas are limited resources and the demand is not going to shrink in the long term. Alternatives are still a long way off.
RRE2026 I think adopting the report as is will kill the great Alberta economy we have going! Take a closer at this before moving forward!
RRE2027 Implement the report in full and without reservation. The resource belongs to the people of Alberta, not the oil companies and their shareholders. While the oil company's reactions have been predictable and necessary, their interests are not the interests of Albertans. I don't blame them; if I'm a shareholder, I would want them to be looking after my investment. The fact remains the resource is finite and when it is gone, so will be the oil companies. Seriously, where are they going to go if we take our fair share? Pack up their bags and invest in high risk central Asian country run petty dictators? So long as someone does not figure out how to run the world on dandelions, the world will need our oil. Our neighbour and biggest customer is ever more interested in stable, secure supplies. As it get more scarce, the more our resource is worth. So what if things slow down a bit? Maybe we can stretch out the extraction over a few more generations and benefit Albertans not yet born. Anyhow, I am sure this is a familiar refrain on this forum because it is what the citizens of the province want. Listen to the them.
RRE2028 Take a little more time to make a good decision but do not give in to Big oil. Shareholders in Houston or Toronto have only their self interest. The extra revenue can be used for infrastructure. The highway to Calgary is inadequate in my opinion. thanks
RRE2029 The decision by the Kleine government to pay off the provincial debt at the expense of improving services around the Province is responsible for a large part of the public's dissatisfaction with the way the government has been performing. The Royalty Review panel's decision has been a catalyst that shows how fed up the public is with poor roads, poor schools, long wait times at hospitals, etc. Unfortunately, the general public is hoping that an increase in Royalties will solve their problems, when the actual problem is the Governments lack of vision. The time to have raised the Royalties was just as the oilsands projects were starting to affect places like Fort MacMurray and starting to add inflation to the costs of services etc. Now that we have a labour shortage and sky high labour costs, inflated housing prices etc., the fix for the problem is more complex. Oil companies are experiencing the same inflationary pressures that the general public are, this means that their net backs are low and many smaller gas heavy companies are practically bankrupt. Their only hope is higher gas prices and lower labour costs. An increase in royalty rates will only make things worse. Hurricane Katrina pushed gas prices to $15 /mcf, which temporarilly made gas companies alot of money. The companies flowed their additional cash through to employees which pushed up house prices in Calgary by 50% in one year. The service companies saw an opportunity to charge top rates and the government got rich as provincial income taxes revenue climbed along with money from Crown Land sales. Hurricane Katrina was a once in 50 year hurricane, gas prices have been back around $6/mcf for the past year and many companies wish they could reduce finding costs by lowering wages, getting reduced service costs and a break from the government. The real reason Encana says it will cut it's budget by $1 billion next year is the price of gas. It costs them $8/mcf to find and they are selling it for $6/mcf. By all means change the Royalties where it makes sense, but the government needs to be sensitive to finding costs and commodity prices. The Heritage Fund was set up for future generations, that was over a generation ago, maybe it is time to spend some of that money to improve services around the province. As far as the oilsands go, since payout on most projects will take until 2020, why not phase in the increased Royalty starting in 2020. The effect on the oilsand guys will be the same, but for the investment community it will sound like the whole issue has been put to bed until a far off date in the future. [Information Removed]
RRE2030 In business, as in life, you shouldn't get something for nothing....polluting our environment should have some cost other than the obvious. Oil companies have been given a free ride long enough.
RRE2031 Dear Ed, Obviously the royalties need to be raised. Norway and Alaska do so. The oil companys are getting huge profits, in the billions of dollars since oil went up from $ 20.00. Costs are going up but these companys factor all this into the investment metric. No suprises. Cost go up due to eagerness to get out production fast. Let us keep more money for Albertans instead of most of the money leaving AB. Do the right thing-you live here too. [Information Removed]
RRE2032 [Information Removed] There is widespread recognition within the industry that there is room to increase royalty rates and provide a larger benefit to the resources owners, however to implement everything recommended in the report will put me, and (hundreds of?) thousands of others out of work or it will drastically reduce our income. You are well aware I am sure of the impact that the resource industry has on the provincial economy; and you are also aware of the impacts of drastic changes to the status quo (remember the NEP?). Consider what might happen to every single Albertan if the 93,000 people that are employed directly and indirectly by the company I work for are all of a sudden out of work or are making significantly less. What happens to income tax revenues? What happens to the discretionary spending these people do? Now consider the impact industry-wide.. how many people are employed by the entire industry? How many people are employed because of the money that those employed directly by the industry spend going to the movies, buying cars, going out to eat? What happens to royalty revenues when no company can afford to produce oil or gas any longer? Some of the capital cost figures used by the panel are not accurate and to my knowledge are understated by a factor of two. How does this present a fair argument for anyone?? No one is saying that the status quo is what is best for everyone. But please, have the government conduct the review again using sound math and numbers. Alberta is unique in that the resources we have are difficult to extract and costs more to do so than it does in most other regions of the world; to compare Alberta to Texas is to compare apples to staplers. An increase in royalties may be necessary. To implement the recommendations made in the report will kill the golden goose; nurturing it will ensure a long, steady, dependable stream of revenue for the province and its residents. Let's figure out what is fair before we unnecessarily behead the goose and irreparably damage the entire province, its economy, and the livelihood of its residents. With utmost respect, [Information Removed]
RRE2033 I have major concerns with its recommendations. The report disregards external factors affecting the business of oil and gas such as increased costs and changes in the Canada/U.S. exchange rate. In setting up this panel, the government set a clear objective for the review – striking the right balance between providing Albertans with a fair return while maintaining a competitive and attractive investment environment that allows our province to enjoy continuing prosperity and long-term growth. The panel’s report does not strike that balance. Killing the goose that lays the golden eggs is the wrong answer.
RRE2034 Dear Mr. Hays, I just wanted to send you a note to ask you what you think of the "Fair Share" Royalties Report and what your position on the matter will be. I would like you to know that I will be doing everything in my power to inform the voting public how devastating this report will be to the Alberta economy and the well being of all it's citizens if the government endorses the report's recommendations. I am appalled at how misinformed the government, and the public in general, is with regards to the direct/indirect and spin off benefits the Oil and Gas sector brings to all of Alberta. As an employee of a major Canadian Oil and Gas company and having managed multi billion dollar operations and capital programs in the province I have seen first hand the direct/indirect and spin off benefits to all the Alberta communities in which my company operates. My employer is a strong community based company that works with all stakeholders to improve the communities in which we operate in. I am currently working on a multi billion dollar oilsands project near Fort McMurray and unfortunately people don't realize how low the rate of return is for the risks we are taking to develop this vast resource. An erosion of this return any further will make most investment in the oilsands grind to a slow crawl. Alberta can raise royalty rates if it wants but in the end the financial markets will decide if financing will be available to companies to develop Alberta's Oil and Gas resources. If the rates of return are not aligned with the associated risks the available capital will go to other more favourable jurisdictions or other industries. The report makes a fatal assumption that the forecast of future activity levels under their proposed recommendations will be relatively unchanged. The reality is that capital will go elsewhere in a hurry and in the end a lower government take will result from reduced activity levels. The main benefit to Alberta is not the take on royalties, it is on the sectors activity levels and the spending that occurs to explore, develop and operate oil and gas fields and all the direct/indirect and spin off effects this has on every Albertan. If activity levels reduce every Albertan will be impacted and if they thing that they are immune to this lower activity level they are sadly mistaken. Less spending in the province by the Oil and Gas sector will actually reduce the government take in royalties, taxes and other areas of government revenue. Sadly the public is misinformed and they will only realize the impact after it is too late, when their livelihood is impacted. Alberta is a unique oil and gas basin with unique economic inputs/outputs and comparisons to other jurisdictions must be take into account investment risk and rates of return which the report did not address. The report tries to compare Alberta to Norway which is like comparing an apple to an orange. These are vastly different oil and gas investment environments and the only way to compare them is on an economic investment basis that takes risk into account. Alberta is currently the envy of the rest of Canada, and North America for that matter, and I can't imagine the government wanting to mess with success. If the report recommendations get endorsed by the government you will certainly not get my vote at the next election, nor will you get my families vote, and all my friends and colleagues that I can inform what the actual impact of the report will be if endorsed. I have been in this industry for over 25 years and this report is worse then the National Energy Program. Those that are old enough to remember know what the NEP did to Alberta. I would predict a very short stay in government if this report is endorsed, despite what some of the opinion polls may indicate. Do not be swayed by opinion polls and do what is right for Alberta. If it is not broken, don't try to fix it ! I look forward to hearing your views on the report and the position you will be taking to the other government representatives with respect to royalty changes, if any. Thanks [Information Removed] cc: Ed Stelmach Mel Knight
RRE2035 I am writing to express my concern over the report from the panel that was charged with reviewing the oil and gas royalties in Alberta and the subsequent interviews and responses to any debate that poses the contrary point in raising the royalty rates. First it concerns me that there is a flippant attitude about getting "what is ours". If the oil and gas industry decides there is no economic value to looking for oil and gas in this province, then there will be no "our share" to get. Secondly, the cavalier attitude that I have seen displayed even by those who were on the royalty review panel that perhaps it is time for a "slow down" in the economy and that raising the royalty rates will help to do this. It is ludicrous to consider that slowing down a business by increasing royalties or taxes will somehow be of financial benefit to us. The leadership and vision on this issue are seriously lacking. This is not a rural versus urban issue. Stalling the oil and gas industry in this province has a profound impact on ALL Albertans, something we all witnessed in the 1980's with the NEP. It was not just the energy sector that suffered but, if you recall, the entire province faced an economic slump that was difficult to turn around. Each Albertan enjoys the prosperity that a thriving oil and gas industry brings to this province. The small town cafe that feeds seismic crews, the newly graduated nurse or physician who can practice at home rather than in the United States, the teacher who can obtain a full time job in the field of their choice because towns and cities are thriving, even subsidies for farmers in times of drought or poor commodity prices. These examples plus the added benefit to each and every Albertan that travels on upgraded roads, has access to the latest technology in health care, and generally enjoys the prosperity that a thriving province displays are testament that each of us benefits when the oil and gas sector is alive and well in our province. It is not a we-they debate. It is about us, Albertans. Please relay my strong opposition to the royalty reviews recommendations in your discussions in the legislature. Sincerely, [Information Removed] Calgary, AB [Information Removed] Email: [Information Removed]
RRE2036 The report did not recommend a high enough increase. We should be charging at least what Norway is charging!! I think a 200% increase is more in order. I can assure you I & my family will be tearing up our conservative membership cards and voting Liberal should Honest Ed side with Big Oil on this matter. One has to ask: Why does the richest province still charge health care premiums? Why are our tuition fees amongst the highest in the country? Why are our roads so beat up that it reminds one of a third world country? Why are working people ending up on the streets because they can't afford housing? Lots of questions but still no answers or direction!!
RRE2037 The oilsands are ours. The increase in royalties is long overdue. Backpay would not be out of place considering the billions of dollars earned by the oil companies at our expense. This is an Alberta legacy, that should be used wisely to benefit us all. Would it be possible to use the extra monies to build a refinery in Alberta. It seems that relying on other provinces and the U.S. to provide gasoline is a poor option when we could do it ourselves at a much lower transportation cost.
RRE2038 I rarely contact politicians as I know you are inundated on various issues, most recently the Pine Beetle issue in K-Country. However as a geologist and officer of a public Energy Trust I thought I would provide feedback on the proposed recomendations of the Royalty Panel. This will be bad news for Alberta if adopted; specifically for our company it will potentially mean hundreds of millions of dollars eliminated from our market capitalization and layoffs. With over 50% of our unit holders being American they are losing confidence in Canada as a place to invest based on the Oct. 31 Federal change to Trusts and now your government's potential royalty increase. If they don't invest, we have less dollars to invest in our province which this year is about $275 million. We have seen the volatility in public markets (Asset Backed Mortgages scandal) and what they can do to our economy. People restrict spending causing significant ripple effects. The Conservative Trust policy wiped out approximately $25 billion dollars of market capitalization from the Trust sector. An investor (typically retired) who held perhaps 10,000 units of our compay prior to Oct. 31 2006 are $80,000 poorer today. Please do not cause further destruction of their retirement income by changing the Royalty structure. A concerned resident from Bragg Creek
RRE2039 We have been following the news headlines regarding the royalty review. Although we do agree that it should be increased my only concern living and working in the oil industry in northern Alberta is that if it is raised too quickly Alberta as a whole will suffer, our jobs, our homes and our futures are so dependant on the oil industry that even the thought of less money being spent in Alberta is one of great concern. I ask you to consider the average Albertan who is dependant upon the industry for our families and our futures before driving the oil industry out of Alberta. The one thing that has brought our boom and helped many citizen like ourselves is the oil industry, people come from all over Canada just to enjoy our thriving economy, please don't forget that in this issue. I think it is easy for a lot of Albertans living in the larger centres not to see the entire picture but we will be no better off than any other Province if we lose our oil industy, infact with interest rates rising and the slow down over the past year, if not careful you will lead Alberta in to disaster. Thank you for the option to express our opinions and please this is not a black and white issue, it is an issue that affects each and everyone of us!!!
RRE2040 it will half of Alberta jobless and hungry
RRE2041 The instability created by the proposed changes have already cost [Information Removed] money. I'm one of thousands in AB employed by an oilfield services company, and I am personally out-of-pocket monthly commissions. I need these commissions to pay my mortgage, that was at a premium becuase the Calgary market was so hot. If these proposed changes go through, I will be one of thousands in Calgary that will be put in a position by our elected officials that will need to seriously consider walking away from a mortgage. There has to be a better way than the extent of those recommended by the commitee.
RRE2042 The review appears to have incorrect information, and that the royalties proposed will be in fact much higher. This will have a dramatic, immediate effect on Alberta's economy, and may well effect thousands of jobs. Think of the irrepairable effect this will have for many years. Please do not accept the recomendations verbatim; potentially in a reduced increase to be in line with world general policies. The proposed changes are too dramatic. Thanks, [Information Removed]
RRE2043 Thank you for the opportunity to input. As an Albertan I feel that the funding from royalties should be used to enhance the life of Albertans. If we are truly the richest province in the country why are our roads in poor condition, waiting lines for health services and a shortage of schools. However the most important is the legacy of our province and the beautiful places that we have to share and cherish for the generations to come. I see this funding used in building special places where future albertans can be proud and be able to create memmories for families to come. These places are our provincial parks and large municipal river valley parks. lets pump some money into land aquisition and construction of amenities for the people of Alberta to use and be proud of...... regards, [Information Removed]
RRE2044 Fully implement the report. Do not compromise on any of it as the recommendations are a compromise position - keeping our "fair share," while still offering an excellent, competitive business climate (what the Premier said was the objective). Do what's right for all Albertans, who have been shortchanged for years because government didn't act while industry enjoyed excessive profits at our children's expense. Industry has (and continues to) act in the best interests of their shareholders - as they should. But the government should also act in their shareholders' - Albertans' - best interests. It's not about "extracting more from industry" but rather being prudent stewards of our non-renewable resources and managing their development, and Alberta's development, well. It is evident from two independent reviews that government stewardship has been disgracefully, terribly lacking. It shouldn't be a tough decision. Industry rhetoric to protect their own interests is expected, and if they do take their investment elswhere, they'll be back: - the oil, oil sands and gas isn't going anywhere - Alberta's got the second largest reserves in the world, they know where it is, so there's little exploration risk - we're beside the biggest consumer in the world - excellent infrastructure, workforce and quality of life - and yes, we are stable and democratic nation. Act decisively now.
RRE2045 do it moderately pls. I know everybody keeping eyes on the oil and mineral. but don't do it so hard core.
RRE2046 I am very concerned about the proposed royalty rate increases. Oil is at an all time high and natural gas prices are very low right now. The oil prices are in US dollars, so with the increase in the dollar, the increase in teh price of oil is not benefitting the industry as much as most Albertans think. Most new natural gas wells are marginal at best with higher prices and increasing the royalty rate will result in many more wells becoming uneconomical. Production will be suspended uneconomical wells and the gas prices paid by consumers will rise with a decrease in supply. The majority of homes in Alberta are heated by natural gas. Is the government planning on subsidizing the poor, the elderly and those on fixed incomes to heat their homes? Oil companies spend a lot of money finding and bringing on new production. They also spend a lot of money developing new technologies to produce more effeciently and with less impact to the environment. All costs have been going up; labour, building materials, etc. An additional increase in expenses, such as that proposed by the Royalty Review, will negatively impact all aspects of the oil and gas industry. Oil and gas exploration and recovery are very risky ventures. If the government is going to take such a large share of the returns, are they also planning on sharing some of the risk? Proponents of increased royalty rates like to use the phrase "The people of Alberta". How exactly will the common people of Alberta share in all this new-found wealth? Will it be through job loss, higher prices for food, transportation, heating, travel? I sincerely hope the Government takes a very close look at all of the ramifications of such a drastic increase in royalties before implementing any changes.
RRE2047 I just finished reviewing the Royalty Review Final Report, and I have to say I am sitting here in disgust. All I see in this report is greed. The whole "Fair Share" theme is really funny because it looks like it only includes the Government and not the citizens. I am a citizen, and I can guarantee I have seen my fair share of the oil industry. Its has kept food on the table for my children and a roof over thier head which I am not not sure is going to happen when/if this Royalty Review goes through. No, my job has not been threatened, but I am an intelligent person - if I was the owner of any business and I had to pay excess millions of dollars a year to anyone, I would be looking to reducung costs and one of them would be job cuts. I am a single mother and life is hard enough as it is living in Fort McMurray, the rent is outrageous and life is hard, but I stay, because I have a good job and they pay me a generous salary. But I am replaceable. My job can be obsolete if so needed. Are you going to pick up the tab on my living expenses when this goes through and I get laid off? I can tell you Fort McMurray will not be my hometown any longer. Please, please, take a long hard look at the repurcusions of what they are proposing. Are we going to have another year like in the early '80s in Fort McMurray where everybody left? Please, say no.
RRE2048 What is important is not a percentage increase in royalties, but rather an appreciation of where Alberta stands in the world-wide royalty rankings. If as is reported we stand at or near the bottom and after review we stay there, then we have missed the opportunity to take advantage of the many benefits Alberta offers in other areas such as a skilled workforce and stable government. DON'T BLOW IT.
RRE2049 I am a 4th generation Albertan and cannot believe the comments you made last night in Calgary. Even though I have lived in Calgary for 29 years I am totally in favour in following all the recommendations made by the recent review committee. I have just torn up my PC membership card and will campaign on behalf of the Liberals. During the leadership campaign I was proud to support you for leader. I see that I made a mistake. I am sick and tired of seeing the last 2 premiers run scared from the oil industry here in Calgary. [Information Removed], am now retired and will spend all my free time and skills to defeat the Conservative Government in the upcoming election. I had to pay $5000 for knee surgery at a clinic in Vancouver or wait for almost 2 years for surgery here in Alberta.My graddaughter does not have a school in her area here in Calgary. Yet the oil barons have multi million dollar homes here in Calgary and also drive massive cars and trucks. It is obvious where the present government has its priorities and it is not with the average person here in Alberta. To the outside world and other parts of Canada we look like a third world country been run by the Oil Companies from the US. Peter Lougheed was not afraid to stand up to the Oild Companies but I guess he was a real leader!!! [Information Removed]
RRE2050 Its time the oil companies stopped whinning and need a big crying towel. Look at the past when the Lougheed government took on the energy industry over royalties and taxation, they responded with outrage and its been heard over and over again since then. Their responsiblity is only to their shareholders. Not the owners of the resources - all Albertans. They have always reaped billions of dollars in profit and never expect to see them go down, only increase. For Albertans the report provides short term pain, with long term gain. Read article in Calgary Herald opinion by [Information Removed]Wednesday 26th Sept. It states clearly the scenarios of previous royalty reviews. The oil companies are still here and will continue to be here in this stable climate where there are the second largest deposits in the world. Also any business or industry with sound management practices should be prepared for cyclical ups and downs. This will just be another small downer for them.
RRE2051 I believe that the Royalty Report should be largly implmented as is. The comments of CAPP are understandble, as they are lobby group for the industry. It is true that input cost in industry are escalating on par or faster than oil prices. Working in the construction industry, I see examples of an overheated economy daily. Sub- contractors are hard to obtain and the workmanship now takes a back seat to quantity jammed through the system. The huge backlog of work is driving up labor rates, and material costs, which drives inflation. This is a vicious cycle that needs broken. If higher royalty rates cause a slow down in investment as threatened, this would be fortitous, as Alberta needs a slow down before the economy becomes unsustainible and collapses.
RRE2052 I iive in Fort McMurray and work for one of the largest companies in the oilsands and can see the mad scramble by various companies to grab a piece of the pie. It's like Dawson City in 1898 and you know that these companies are making termendous profits, especially after their construction costs are paid off. I agree that we need a royalty increase, and if it slows developement down a little in the area, although I very much dought it would, that could also be a good thing.
RRE2053 I hope that those in goverment understand Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. Wells that are not drilled or are shut in do not pay any royalty, and does not pay anyone to work on those wells or project programs. I as an Albertan do not understand why with so much government surplus is this even something the Alberta government would contemplate? I have been within the energy industry of Alberta for 30+ years and now as an independant consultant veiw this Rolalty Review as nothing more than a Alberta born NEP and see no Alberta Advantage to come from it.
RRE2054 The panel has ignored important details and information given to them regarding actual costs of doing business for oil and gas companies in Alberta (see In my opinion, the amount of royalty increase that the panel is suggesting is extreme and will shut down the small producers, it will also reduce the activity of the larger producers in Alberta. EnCana alone has announced that it will pull $1 Billion of its 2008 investment into Alberta if the increase remains as high. Another thing that is not being thought of is how this will impact the rest of Alberta if companies cannot afford to or choose not to produce in Alberta. Construction companies, Hotel and Restaurant Industries, etc. will also be effected. In layman's terms, this is like a Landlord increasing his apartment rental amount so high that most of his tenants have to move out and live elsewhere, how better off will that Landlord be if he doesn't have anyone living in his building?
RRE2055 Dear sir or Madam, Please re - consider the increases in royalties. Oil and gas pools are getting smaller and smaller and harder to find. We are having to shoot more and more expensive seismic to find these pools so the finding costs are going up. Add in the huge increase in royalties and suddenly it is no longer economic to explore for oil and gas in this province. i am very concerned that the result of the large royalty increase will be a huge recession. Drilling will slow down considerably (it already has slowed down a lot this year due to the lower gas prices and other factors) and many of us will lose our jobs. i don't think the panel has fully evaluated the impact of the Royalty review. The province will ultimately lose money and will be having to spend more money because those of us working in the oil industry will be on unemployment insurance. thanks for your time, A concerned Albertan - born and raised here, [Information Removed]
RRE2056 Dear Mr. Stelmach, Although you've carried out your election promise, the recommendations of the recent royalty review are quite one-sided; what the government is "missing" out on under the current royalty agreement. Given increased commodity prices, the review panel wants to ensure Albertan’s receive their “fair share” of the revenue streams generated by O&G development here in Alberta. Under the current royalty agreement the government receives a percentage of every dollar of revenue generated. At high or low commodity prices the percentage does not change, even though company netbacks shrink as commodity prices decrease. The government’s take does not. Since when is government or the public responsible for generating higher commodity prices? Higher commodity prices are simply a reaction to global supply and demand not on the action of Albertans. So why do we feel we need more of the pie when we’ve done nothing to earn it. No public capital has gone into funding these projects, the public is not at risk if projects don’t go forward or are over budget. Or are they? If the Alberta government were to increase royalties at the rates recommended the Alberta economy would see a severe impact. I’m not concerned with pockets of the rich getting lined with profits. These are the risk takers. They’re going to get rich regardless. The concern is for the middle and lower classes that rely on a healthy industry to make a living. With higher royalties smaller rural communities are going to be hurt. Unemployment will increase as projects are cancelled, provincial tax collection will decrease and economy will tumble. So long “Alberta Advantage”! If the government is set on increasing royalties, which you probably are now that you’ve opened the can of worms, any increases should go directly to back to communities impacted most by the industry. No amount should be spent as general revenue. Any and all of the incremental increase should go to providing infrastructure to communities like Fort McMurray and Fort Saskatchewan. These communities are the backbone to the future of oil sands development and need drastic improvements to keep up with demand. Maintain the "Alberta Advantage" by considering the impact on everyday Albertans by your decision. Implementing the royalty panel's recommendations will be just the beginning of political and social fallout. Concerned Citizen
RRE2057 This will be a huge hit to small towns in Alberta.For some the oilpatch is all that keeps the alive.More important than Farming.
RRE2058 I am writing to voice my concern around the royalty review. My understanding is that a lot of the data the panel used is flawed, and thus the recommendations are also flawed. I encourage you to make sure that industry is allowed to present their cases, and that their books are looked at to determine proper numbers and then make a decision. Of course everyone would like a bigger piece of the pie, that the most important thing is that the industry remains sustainable. Too many people’s jobs and livelihood depend on it, and the panel’s recommendations would seriously hurt that.
RRE2059 As an employee of a major national oil and gas corporation headquartered in Alberta I can be considered biased in any opinion offered, but I caution the government of the day not to create a made-in-Alberta situation where resource investments are in our provice are equitable to all parties. Shareholders of these firms expect a return on their investments suitable to the risks associated. Do not forget that the current economic climate in Alberta is centred on the investments being made by the resource companies. How many jobs and people are you willing to jepordize if the economic situation were to change so that this investment money were to be removed from our province?
RRE2060 This review is long overdue. I work in the industry and have seen the profits that are being taken out of our province and our country. I almost feel that maybe Chavez in Venezuela may have done the right thing. It's depressing to see our province and country kowtowing to the demands of big business and not the people. Yea, business will howl and cry, but they'll get over it and back to work in short order. DO THE RIGHT THING FOR THE PEOPLE!
RRE2061 This increase will have a dramatic effect on my job. I am very dependent on my job to sustain our farming operation. This increase will also have a drastic effect on my spouses future with farming and the services that is provided with our farm equipment for the oil companies in our area.
RRE2062 It's obvious from the report that Alberta is being taken advantage of by big corporations. We should not allow them to bully us around and keep what is rightfully ours. We should not be afraid of any consequences of divestment. We are a rich province and they need us more than we need them.
RRE2063 Dear letters Editor: After riding the gravy train in Alberta for decades, the international petroleum industry could hardly be expected to jump up and down with glee at the prospect of having to pay higher royalty rates. The reaction of the industry has been typical. Their claim that higher royalties would adversely affect the investment climate in Alberta and result in dire economic consequences has little to do with reality and is simply a ploy to influence the provincial government’s reaction to the report of the royalty review panel. Oil royalties in Alberta have been below global standards for far too long. The recommendations of the royalty review panel will not recoup past losses, but would simply bring Alberta royalties in line with global standards. Premier Ed Stelmach would be well advised not to allow himself be intimidated, and to take the advice of the panel seriously. In doing so he would be placing the well being of ordinary Albertans ahead of excess profits for the international oil corporations. Yours truly, [Information Removed] Edmonton, Alberta [Information Removed]
RRE2064 The concept that Albertans aren't getting "their fair share" of oil revenues is laughable. Given our history of mismanagement and waste, we have no right to the revenues generated by the actual hard-working companies and people developing our resources. Albertans didn't develop the oil sands, foreign companies and money did. Albertans didn't build the upgraders and refineries, Maritimers and foriegn labour did. What did Albertans do besides be born on top of the oil and gas? If we had any concept of fiscal responsability, our Heritage fund would be well in excess of that of Norway's, which now sits at $400 billion compared to our $16. The disgusting display of irresponsibility that was the "Prosperity Cheques" shows how little capacity for good judgement Albertans have. Instead of whining about not getting "their fair share" of oil revenues, Albertans should pay their fair share by implementing a sales tax, increasing income taxes and increasing property taxes. Then we could save our oil revenues for the future when there are no more royalties to be had. Thanks, [Information Removed]
RRE2065 I am stunned by the lack of understanding of the working of the industry. The report is biased and does not work through the cost of building the oilsands. Adoption of this panel's recommendations will result in lost jobs which will hurt all Albertans. Please reconsider the consequences to come up with something more reasonable. This smells of NEP, only inside of our province.
RRE2066 I feel that the report is fair and balanced and that the government should go ahead with this plan. Thanks
RRE2067 I am a younge mother and my husband works in the Oil Industry. These Royalties that the Pannel prposes are rediculous. They want to take far too much of a percentage, and how they get that number is beyond me, because they don't realize that their numbers are from 2005, and since then, as you know costs have gone up. The Oil Industry as we know it now WILL BE LOST!!! Thousands of families will be broke because they got laid off due to the company not being able to afford to pay their employee's and service workers because the Pannel has taken too much money. For example" How can you take money from a gas well that hasn't even been drilled yet?" If these Royalties get put in place, they will destroy Alberta's economy, places lick Fort Mac, will turn into ghost town, families will have to move, go bankrupt, loose their home's why? because they want more money. I SAY NO NO NO to the Royalties
RRE2068 I am the owner of Freehold Minerals along with my Sisters. Why is the Prov. Gov. so hell bent on making our Mineral Titles useless by putting such extreme taxes upon our potential revenues. We are in a "low" volume natural gas area and from what I understand these changes will prevent Gas prod companies from developing our properties. Please address this error before it does permanent damage to your voters. In general I agree with a Royalty Review but I have seen the slow down in drilling etc in our area already. Don't kill your Golden Goose!! [Information Removed]
RRE2069 Has Ed Stelmach forgot about what happened after the NEP? The Royalty Review Report is fundamentally flawed in that it assumes that the same amount of capital investment will occur with the new royalty regime. No doubt there will be lower capital investment and jobs will be lost. The Alberta government might get its dime on royalties from existing production, but jobs lost and lower capital investment in new exploration will more than offset. It will be the average Albertan who will pay with increased pressures on labour and services. I would rather the dime be in my pocket not Ed's. Have the conservatives thought about what the impact on voting will be if there are job's lost?
RRE2070 The proposed changes would have a very negative effect on Alberta's economy point forward. Everyone would suffer from a drop in investment in the Province, not just the oil companies. Remember the carnage caused by the NEP in 1981!! I know because I survived, many Albertan's didn't financially. Please consider your actions very carefully, we owe it to our children. Thank you. [Information Removed]
RRE2071 The proposed changes recommended in the RRR are based on misunderstandings and unrealistic assumptions that will result in severe negative impacts such as 1/ grossly understated capital costs 2/ low nat gas prices 3/ traditional drilling in NE Alberta will become uneconomical 3/ drilling in NW Alberta's tight & deep basin will be severely curtailed.
RRE2072 Alot of unhappy people here in Grande Prairie who are already counting down your years and months left in office,... You mess with our job security, we mess with yours.
RRE2073 I think the oil companies are fear mongering. They are not going to pull their money out of Alberta. If they do reduce their investment dollars it will be due to the fact that the companies could not keep up this pace of growth. In reality the companies will complain and moan and blame their slowdown on the royalty rates rather than their own planned investment reductions
RRE2074 Hello, I am a student in the Faculty of Business at the University of Alberta and have paid close attention to the ongoing royalty debate. I have even heard members of the royalty review panel speak about the issue in person, but I do not agree with their opinions. I am deeply concerned about the proposals to change the royalty structure, especially at a time when our economy shows such great long-term promise. I believe it is unfortunate that newspaper headlines have degenerated the debate to "big oil is taking our money!" and this has resulted in some bold threats by oil companies. I agree that this places the provincial government in a tough situation where the premier cannot afford to appear to be giving in. However, it does not change the fact that increased royalties and the negative public perceptions towards Alberta's economy caused by this debate will have an economic downside far greater than the $2 billion we were supposedly deprived of. I have lived in Alberta all my life and do not plan on moving when I look for a job. I am hoping to have a career in our growing, business-friendly province, so please reconsider implementing the royalty recommendations, because we may be severely limiting Alberta's economic potential and the wellbeing of the people - things that I do not think we can afford to risk. Thank you for your consideration.
RRE2075 I don't think the bill should be passed.
RRE2076 I am against the ARRP royalty changes as currently proposed. As an individual whose livelihood is dependent on the oil & gas industry, I truly believe that the ARRP analysis is shortsighted, and doesn't reflect the true capital development costs, low well productivity, govt land sales revenue, and economic spinoffs from the industry. It is my belief that the proposed ARRP royalties will kill our industry, and have a very negative affect on Alberta's economy. It is my belief that there must be some middle ground, that allows the people of Alberta to get their share of the economic value chain, and allows the oil & gas industry to return a profit, and continue to invest in Alberta and create jobs. So I would urge the Alberta governement to delay making changes, until the whole picture is evaluated, and to open up extensive dialogue with the industry, prior to making any decisions. THIS MUST BE A WIN-WIN SOLUTION FOR BOTH THE ALBERTAN PEOPLE (like me), AND THE INDUSTRY THAT EMPLOYEES SOME MANY OF US ALBERTANS.
RRE2077 First I would like to mention that I am extremely doubtful this will be read much less taken into account. The royalty review panel consists of highly regarded individuals selected by this government - why not implement this report in full as reported. The oil companies (and similar) would be complaining at anything other than status quo - anything else and they would be doing themselves a disservice. I say let this government show some "[expletive]" and tell the oil companies to quit '[expletive]' and accept this report if you wish to do business in Alberta - it is about time 'regular' Albertans receive a 'fair share'. I have lived my entire 46 years in Alberta and I have not yet benefitted from any 'program' the has been offered by this or any government. I am a regular married family mother, working full time trying to make ends meet. We do not live extravagantly but pay our bills monthly and try to save for a rainy day. I look at this royalty report not for myself but my my children and hopefully for my future grandchildren. The oil companies say they will invest less, leave and the Alberta economy will go down the 'toilet'. I expect oil companies would stop investing or slow down - even as a protest vote.They will be back because where else in the world can the Americans (and oil companies) have a safe way to supply them with the oil required. A slowdown in the economy is not necessarily bad. Maybe then the cost of living will be reduced, there will not be such a shortage of workers and the service industry will once again exist. The investment and development will still be there and the companies will be back - if not them then other businesses will gladly step in - why - because they can still make plenty of money to satisfy their investors. This royalty review was a public review and yet the government has now gone into private discussion with the oil companies. Will they do the same for the royalty review panel.. or another step will the government be willing to hold private meetings with ordinary private citizens like myself. I challenge this government to invite me to participate in a round table discussion with other citizens just like me with the same government officials that are meeting with the oil companies in private. Finally to Ed - stand up and think not just for this generation but future generations of Albertans and what the 'real' Alberta Advantage should be - is it the indivuals in this province or the oil companies. Prove to everyone that 'Steady' Ed is deserved and not [Information Removed] make a decision in a couple of weeks and not keep delaying it (several people I know have a bet that Premier Ed will not make a decision and keep postponing it because he is incapable of making a decision) - please prove this wrong. Do the RIGHT thing and implement the review as written/proposed. Like I said at the beginning - I really doubt that this will be read or responded to (and if it is a general reply sent to everyone will be issued). I would love to meet and discuss this - but alas I am not an oil company executive - only a regular law-abiding Albertan. Thank you for letting me 'vent'.
RRE2078 The Government of Alberta may wish to survey some of the Oil & Gas service industry companies specifically outside of Ft. McMurray for their assessment as to the current economic environment with respect to upsteam invesment activity prior to considering changing any of the royalty rules for conventional oil & gas.
RRE2079 The royalty report outlined what we, as albertans, need to do for the future of our province. We need to gain the full value of our resources, while maintaining a competitive system in place. The Royalty review's conclusions should be implemented immediately.
RRE2080 I strongly believe we are not getting fair equity for our resources. I feel we are being threatened and bullied by big business to avoid a royalty change. Do not succumb to these threats and please receive a fair and equitable royalty payment for our (the people of Alberta) resources. I also ask that you examine the bitumen debacle and ensure this resource stops flowing out of our country. We need laws put into place that ensure we are not selling our non-renewable resources a bargain basement prices. Generate employment and industry in our country.
RRE2081 I know the government is going in the right direction with increased royalties. The oil industry will whine and cry for a short while. They will be back because Canada is a the most stable country in the world for there investments in oil. Where else will they go, where else is there this much oil to be developed. BP oil is making $21.75 a barrel profits. Take your share, distribute that back to the people in government programs, help our poor because the oil industry won't. They just want to get as rich as they possibly can at Canada's mineral expense. Never mind the royalties, you should be developing this resource yourself. Mention that and see how they will react.
RRE2082 I disagree with the conclusions of the royalty review. The analysis should include impact of hogher royalties on the industry activity that would reduce land sales,investment,taxes collected etc, etc. Please, carefully consider all the ramifications of the proposed royalty increase! [Information Removed]
RRE2083 What does it take to open this government’s eyes to the devastation that is taking place as a result of the out-of-control expansion of the oil industry in Alberta? And to add insult to injury, we are receiving a mere pittance for our troubles. If raising royalty rates will slow the pace, please do so immediately – and not in partial measures, but fully as stipulated in the royalty review. Is it not obvious to a pro-business government that your hands-off approach taken so far has been a disaster to many companies outside the oilpatch? With soaring operating costs and labor shortages, some businesses have actually had to reduce their hours of operation, and some have relocated to other provinces. Meanwhile, the near-collapse of this province’s infrastructure, environment, and social systems has been noted so often that it is extremely frustrating to have to once more try to shake this government out of its comatose state, and urge it to do its job and discharge its responsibilities to its citizens. Yes, you are responsible to provide a better quality of life to the people of Alberta, not to the shareholders of oil companies. I only wish that implementation of all the recommendations of the royalty review would slow down oil production in this province. Unfortunately, I don’t believe it will. Nevertheless, we must stop groveling and demand what is rightfully ours. And the recommendations in the report should be just a beginning to a new era of accountability, responsibility and stewardship. Wake up!
RRE2084 Im in agreement with increasing the Royalties. The Oil and gas companies are making more than enough, and this may help reduce the acceleration of the economy, which is stretching businesses and personnel to the extreme.
RRE2085 I wish we had a Government that stepped up for Albertans and and not big Oil Companies. I don't for one minute believe the Oil Companies when they say they will pull out of Alberta, even with an increase in royalities they are still onto a very good thing here. Even if they did pull out it wouldn't be the "end of the World". I believe that things need to slow down so we can catch up to all the people who have arrived "en masse" in our Province and everything that encompasses. I think the Oil Companies should be ashamed of themselves especially Encana the first one to turn on us and one of our own. I believe in playing fair and the Oil Companies aren't playing fair at all they are just plain greedy. It's time we sent them a message and looked after Albertans and Alberta for future generations. Their greed should not be rewarded. Thank you.
RRE2086 In regard to the plea from the workers who drill for oil and gas and those workers in the oil and gas service industry who have fears of a slow down in drilling activity should the government adopt the Panel's recommendations - it should be noted that a slow down in conventional exploration and development has been going on for the last few years. In comparative data shown on the EUB website, it shows that activity has dropped 23% in the first 8 months of 2007 compared to the first 8 months in 2006 in respect to exploratory and development wells drilled in Alberta. This drop in activity had no bearing on the royalty fee structure but the shift has been the result of high costs of doing business. This awareness is also shared through knowledge that comes from the workers who have become affected by this slow down. This slow down will achieve bidding that reduces the take home pay of many Albertans who work in the oil and gas sector, results that have occured in the past - results that improve the bottom line for the majors while still seeing the ever increasing value of oil. It is noteworthy what the oil industry does for Alberta in regard to continued growth and employnment; however, the province also provides the necessary infrastructure, for example, highways to guarantee the flow of oil and gas - money that actually comes from part of the royalty revenue. These are expensive and important support structures that benefit the oil industry.
RRE2087 We are grade 9 students at vjm junior high school in st.albert. We dont really care or understand what this is about and we didnt even read your 105 page thing so have a good day!
RRE2088 Freehold mineral tax should not be doubled-it should be abolished. I am concerned about the protection of private property. I also worked on my parents and grandparents land breaking roots, picking stones etc. Give us a break!
RRE2089 As a concerned citizen of Calgary, I am appalled at the way in which the Alberta Royalty Review has been conducted. I am not representing any company's view of this matter, but am reaching out as a taxpayer and member of what I feel is the best province in Canada. The way that this review has been presented to Joe Citizen would be hilarious if I didn't care so much. Of course, 99% of all people will answer positively when asked, "DO you think the big bad, greedy oil companies are stealing too much money from our pockets?" Even I would! Conversely, if I used some cause and effect and asked the question, "do you think that we should tax the oil and gas companies to the point where they pack their bags and move to countries where they can increase their rate of return, and in return, we can pay more income tax and lay off 100,000 (20% of the half million) people who, within one degree of separation, get their income from the oil-patch while have an economic recession?" the answer may be different. To use old statistics to provide the rationale for increasing royalties is only going to ensure that this government is blamed for the recession that is ominously approaching... without the royalty increases! Should the government have had a larger piece of the pie in 2004 through 2006 when gas prices were highest? Absolutely! But now that prices have dropped and service companies are laying off personnel daily, don't blame oil and gas companies if you raise the ire of your neighbours, constituents and families for causing the trouble that we're sliding into (but most people haven't figured out yet). The degreed people that are getting laid off in Calgary are marketable globally in the oil and gas business. They won’t be looking for new jobs in , but the people who will be less marketable globally are the relatively unskilled labourers that are being laid off from drilling companies and service companies in rural Alberta. The degreed people will not return once they experience Big Oil in their newfound companies internationally. We are in a mature market. Some of these oil and gas properties require incentivization, not stifling taxation. If you don’t believe me, phone your friends in car dealerships and real estate offices and see what those economic indicators are doing. You missed the boom boat. Hope you don’t own a lot of real estate. Compare houses for sale in Calgary in September 2006 vs. houses for sale in the same month in 2007. In 2007 there was a 62% increase in month end inventory of houses for sale when compared to the prior year. (Over 11,000 homes) Is this not an indicator of hard times in Calgary already? The Alberta government has consistently stated over the past five years that the budget surpluses were due to higher royalties collected due to high commodity prices. The 2004-2007 resource revenue of almost $37 billion needs to be highlighted here. I'm not here to judge, but you would think we'd have better infrastructure for a province with that sort of resource revenue to spend on its people every year. The oil companies AND the province made great profits in the good times. Here's the bad news... The good times were over long before the Royalty review was released using faulty statistics. In August 2006 the activity slide started, with no end in sight. You can’t punish the oil companies for the royalty having a ceiling that was based on old oil and gas prices and cost infrastructure. If you don’t get this correct, I’ll most likely be one of those departing the country. I’m okay with that as I’ve worked globally before. The world loves Canadians. I write this letter in the interests of those who would like to continue to call Alberta home but won’t be able to due to their need for a job. Be fair, work with Oil and Gas companies, service companies, municipalities, etc., to arive at the correct conclusion, but don't be punitive due to your own inactivity in straightening out the system over the past 5 years. They were good times for all. [Information Removed]
RRE2090 We have watched our Prime Minister publically recend on a promise to leave the Royalty Trust Issue alone, and now we see a new Premier become the first to publically take Alberta's Oil Investments including the Heavy Oil Projects and place that sector in the Red. If both the Prime Minister and our Premier wish to take Alberta back the times of the NEP where thousands were laid off, this is definately a turn for the Conservative vote in the next elections also to the Red. There is one simple rule for Alberta for Politicians, and that is not to play around in the Oil Patch, as the ripple effect takes money out of the pockets of Albertans. You can cover that with all the fluff you wish, but that is the fact that everyone will remember. How will we always remember Brian Mulroney? One guess. The GST, which was the biggest Tax Grab in Canadian History. How will we remember our present Prime Minister? One to took away the Royalty Trust when he could have placed a "Grand-Father" caveat showing some consideration for the small start-up oil and gas companies that are on the verge of bankrupsy as the after-math. That rippled down to millions of dollars of losses for Alberta Investors in who support the Oil Patch by placing trust in our leaders to use their heads. How will we remember our present Premier after he brings down the Oil and Gas Industry and it's Investors to the lows we saw with the NEP with his new royal structure? One guess. Time to call for a new provincial election in this Province!
RRE2092 I don't know all the in's and out's of this, but I do know that whatever is being proposed is really scaring the people of my community - Grande Prairie. I shudder to think what may happen to our liveliehoods if this goes ahead. Not very equitable - all or nothing - there's got to be some fair way to do this without going to the extreme. It's the extreme we're scare of.
RRE2093 This program only seems to benefit the government. It doesn't seem like it supports our oil and gas industry or those who work in it. Doesn't seem like a very good proposal.
RRE2094 An average recovery cost for producing a bbl of oil should be determined (review on a yearly basis) once this has been set anything above that becomes the amount you base you royalty on. You can then determine and set a percentage for the royalty rate based on the profit only and not on the total cost associated with production. The royalty then becomes a moving target and changes with the price of the bbl.
RRE2095 I have been listening to the news lately and have become concerned with the tone of the “Our Fair Share” royalty review report. The report seems to claim that the Oil and Gas companies are somehow taking more than their fair share of the provincial resource revenue. I am somewhat puzzled by the premise of the report in that it implies the province is being cheated out of potential resource revenue. The Alberta economy it is the envy of Canada and North America because it has managed to maintain a level of employment and economic growth that is un-matched by any of it’s peers. I believe this has happened because a strong partnership between the Provincial Government and the Oil and Gas industry has allowed the Energy Industry to prosper in this province. The prosperity enjoyed by the Energy Industry is shared with the rest of the province in a symbiotic relationship - meaning the healthier the Oil and Gas sector (more profitable), the healthier the economic landscape of the Alberta Government (more revenue from Royalties and income taxes). Why would the Government want to target the profitability of the Oil and Gas sector as a potential source of future revenues and jeopardize it’s current revenue base? Energy companies are in business to make money…as are all successful business – it is the definition of a successful business! Why not continue to provide a business environment that promotes an opportunity to run a successful business rather than try and manage the Energy sector using a political agenda as your guide. Have we not learned from the experiences of other provinces that “go for” their fair share of the resource revenues…commonly referred to as the have not provinces. Why would the Government start to tinker with a winning formula? I think it’s perhaps the highest form of arrogance and ignorance to assume the Oil and Gas companies will continue to invest 10’s of billions of dollars per year in Alberta with a new “provincial profitability grab” in place. If you think back over the last 10 years, the provincial Government has consistently under estimated the resource revenues and has therefore run excessive Government surpluses. This is positive in that it has allowed us to pay down our provincial debt and accumulate a trust fund for future generations of Albertans…but doesn’t that also indicate we’re already receiving our fair share? At what point would we be content? Do we honestly believe that Oil and Gas companies are funneling off the provincial resources in profitability heaps abroad? Or is it more likely that the hundreds of Oil and Gas companies, the vast majority of which are created in Canada, are re-investing those profits in Alberta to continue growing their businesses? Some will argue that it is impossible to kill the golden goose because big oil is far too profitable to sustain any long term negative effects of increased royalties. Completely true, as is the fact that the large multi-nationals will simply stop investing in Alberta and turn their attention to other global oil & gas opportunities – of which there are hundreds. It is the small and intermediate Alberta grown Oil & Gas companies that stand to be the biggest losers, along with their employees and the employees of the large multi-nationals and …oh yeah the provincial Government because the total resource and income tax revenue will be much lower. Why not be happy with the fact that we are already receiving “Our Fair Share” and look forward to future budget surpluses from resource revenues and full employment income taxes… You’ll never kill the golden goose, but it may fly away.
RRE2096 please, please, please, don't lose site of the fact that the oil and gas companies are prospering here because they view the present royalty & tax structure as adventagious. Sure - the present system has flaws but it works. Have any of these panel members ever had to meet a payroll? a politically correct stance would surely be to admit there there are flaws in the present system but it still is working quite well thank you!
RRE2097 I expected a difference in opinions between what the panel recommends and what industry recommends. However, based on what I have read, I believe the government should appoint another panel to work with industry to reconcile the differences between the panel's report and industry's assessment. The industry and investment analysts are indicating that many of the panel's assumptions and comparisons are invalid, and they failed to take into account all the necessary factors (such as land sale revenues, differences in cost structures, production rates, reserve sizes etc.). If that is the case, implementing recommendations that do not fully consider for all factors would be negligent and irresponsible. If that is not the case, have the royalty review panel publish a response to industry addressing their criticisms. This is a very serious that may determine whether Alberta remains a fiscally strong province, or whether it becomes a rusting ground for partially constructed bitumen upgraders. Do not rush to make a decision, especially if it may be based on inaccurate information. Take the time to get it right. Industry seems to concur that there is room for royalty rate increases. Please take the time to listen to their arguements. If, after ligitimately considering their arguments, you still come to the conclusion that the royalty review panel was correct in their assessment, then by all means, implement the review panel's recommendations at that time, and you would the full support of myself, and many others. If the panel's recommendations are implemented before an additional comprehensive review has been conducted or before the apparent discrepancies between the panel and industry have been satisfactorly addressed, and the Alberta advantage disappears or declines, your govenment will be blamed, and it will amount to, at the very least, political suicide. Thanks you for the opportunity to comment. Regards, [Information Removed]
RRE2098 Dear Sir, I am greatly concerned that if the Government of Alberta implements the recommendations of the Royalty Review Panel the cumulative effect on our province will be disastrous. The list of consequences of reduced capital investment in our province by oil and gas companies is long and very significant. Reduced government revenue derived from personal income taxes, capital gains taxes, dividend taxes, corporate income taxes, land sale proceeds, and royalties are all on that list. To believe capital investment will be unaffected is naïve. Though the reduction in revenue to oil and gas companies resulting from the NEP of the early 80’s is difficult to compare to the proposed reductions that would result from implementing the recommendations of the Royalty Review Panel, the disastrous consequences of the NEP should be well remembered. It wasn’t “Big Oil” that suffered, it was the average Albertan that walked away from the house they could no longer afford. Reduced capital investment will negatively affect all Albertans. There is definitely an emotional groundswell occurring that has pitted a large portion of the general public against “Big Oil”. Unarmed with the knowledge of the cumulative consequences of reduced capital spending by oil and gas companies, it easy to see why many Albertan’s want what they believe is their fair share. If these same people realized the overall government take would in fact decline as a result of implementing the Royalty Review Panel recommendations, I’m sure their views would change. Should they become aware that their personal standard of living will be negatively impacted in a similar, if not exactly the same, fashion as happened in Alberta from 1981 to 1985, that groundswell would surely be reversed. As a bit of an aside, I think it's ironic that [Information Removed]. Remember what the “Big Oil Fear Mongers” said after the royalty trust debacle - foreign interests with lower costs of capital will come in and buy up Canadian energy trusts. Please, for the sake of all Albertans, review and quantify the cumulative impact of the changes proposed by the Royalty Review Panel. In particular, a real and honest assessment of the impact of reduced capital spending by oil and gas companies in our province needs to be shared with the people it will affect – the people of Alberta. Yours truly, [Information Removed]
RRE2099 October 24, 2007 Hon. Mel Knight, Minister of Energy and Hon. Ron Stevens, Deputy Premier, Minister of Justice and Attorney General Legislature Building Edmonton, AB Dear Ministers; Re: Royalty Review Panel- A Comment from “Small Oil” Most of the comments made to date have been from the so called “Big Oil”. We would like to comment from the perspective of “small oil”. [Information Removed]is a junior public Alberta conventional oil and gas production and exploration company. [Information Removed], and most of its shareholders are Albertans. [Information Removed]This number does not include the large number of contractors who work for us from time-to-time as required for drilling, workover or other activities. [Information Removed] has wells in the Western Canadian Sedimentary basin, specifically in Alberta. [Information Removed] has intentionally stayed within Alberta to benefit from the Alberta advantage (a favorable relationship with a stable government, well understood and stable tax regimes, a reasonable infrastructure and knowledgeable workforce). Our Company’s livelihood, as well as those of many Albertans, depends on maximizing recovery from Alberta’s depleting reservoirs. We are concerned that the Royalty Review Panel does not fully understand the oil and gas industry as the report misstates many fundamental truths faced by junior oil companies in Alberta and as a result reaches flawed conclusions that will do permanent damage to the Alberta advantage as follows: Alberta’s Mature Basin The shallow horizons of the Western Canadian Sedimentary Basin are mature. Other than deeper and riskier drilling, there is very little room for further exploration in this basin. Under the current royalty regime, the industry is struggling to maintain production as conventional production is declining by 500 mmcf/d. To ensure that a fair share of the province’s reserves is available for all Albertans, the focus should not be on the “take” but on what will be “given up” in lost reserves and jobs. It is imperative that industry be encouraged to maximize recovery of existing reservoirs and to find other horizons or ways to replace this production. This will require additional investment to maintain production from wells that are becoming increasingly marginal, to increase the amount recoverable from such reservoirs (tertiary recovery) and to find other (deeper) horizons from which to extract production. Royalty Review for the Oil Sands We believe that the people of Alberta are frustrated with stress on the provinces resources resulting from the development of the oil sands. A major concern was that the 1% royalty rate on the oils sands was attracting this investment and was too low at the current oil prices and should be reviewed. Rather than raising the royalty on the oil sands from 1% to 2% which would have achieved an additional $2.1 Billion of royalty revenue while being an insignificant cost increase to an oil sands development, the panel chose to compromise Alberta’s conventional producing reserves and jobs. Is it any wonder that the Panel has a bias towards the oil sands when the experience of the only oil industry representative on the Panel was in oil sands development. It is obvious that the Panels decision will jeopardize many long term jobs in Alberta in the production of conventional reserves for short term jobs in developing infrastructure for the oil sands. Conventional Production Takes the Hit Of the $2.1 billion forecasted extra take in royalties forecast 90% will come from conventional production, while less than 10% will be from the oil sands. When increases to the current royalty regime are analyzed conventional oil will see a 64% jump in royalties and be representing 43% of the $2.1 billion dollar increase. Natural gas royalties will jump 17% and bear 47% of the increase while oil sands will be up only 9% and bear less then 10% of the increase. This puts an unfair burden on conventional oil production and makes it difficult to justify the exploration for and continued recovery of conventional oil reservoirs in the province. Conventional production (and Alberta’s royalty base) is declining and will have $1.9 billion less to re-invest to replace reserves. When the cancellation of the Alberta Royalty Tax Credit program is included, the drop is $2.6 billion less to reinvest. Industry comments that capital spending will be less are not an idle threat but will be an economic necessity for conventional reserves. How can industry replace this capital? Sources of Capital In order to maintain current production, the industry needs capital. The industry obtains these funds from three sources, being cash flow, bank debt and investment. The Panel’s recommendations will negatively affect the capital available from all of these sources. The increased royalties will result in reduced cash flow. This will, in turn, result in higher net debt to cash flow ratios and lower property valuations. As a result, lenders will decrease the amount they are prepared to loan to the industry and especially to juniors with Alberta base production. Investors, already holding back from the industry in Alberta and Canada due to the change in trust taxation and the cancellation of the ARTC will have another reason to invest in other jurisdictions. Fundamentals Not Considered or Understood By the Review Panel The brunt of the increase will be borne by conventional reserves which will provide 90.4% of the $2.1 billion increase while oil sands will only contribute 9.6%. Much of our conventional production comes from low productivity wells which are only marginal under the current royalty regime and would be uneconomic under the proposed royalty regime. The Panel notes that low productivity wells require relief and comments that these wells will pay less royalty under their plan. This comment is false and based on outdated and improperly calculated cost data. If fact, these wells will be charged a higher royalty jeopardizing recovery of the remaining reserves from these reservoirs. The Panel neglected the $700 million increase in the Alberta governments take from the cancellation of the Alberta Royalty Tax Credit program as of January 1st, 2007. This program benefited primarily the junior oil sector which has largely operated in the red in 2007. The Panel seems to believe that increases to posted oil prices automatically leads to better bottom lines. The Panel neglected the fact that much of Alberta’s crude is of a much lower grade than WTI and the differential between the price received for the various grades has been widening. Although Alberta’s reservoirs are primarily producing natural gas, conventional oil will bear 43% of the proposed $2.1 billion increase and see its royalties jump by 64%. In addition, jobs will be unfairly hit as conventional oil has a higher labour force per boe produced than natural gas or a completed oil sands project. Incorporating such a boost in royalties on conventional oil will limit exploration and severely hamper conventional oil’s ability to continue to produce and employ. The Effect of Escalating Royalties The Panel asserts that low volume wells will be protected. However, these assertions were based on outdated cost and improperly estimated data. These low volume wells will in fact pay higher royalties forcing many of them to be shut in as uneconomic. The Panel did not consider that higher commodity prices increase costs proportionally specifically for power and fuel. In addition many of these wells require frequent and costly workovers, facility turnarounds and pipeline upgrades in order to recover the maximum oil in place. Instituting escalating royalties will not be economically viable and wells will be shut in or abandoned before recovering the entire product that should be recovered under a sensible royalty program. In our mature basin reservoirs are smaller and typically produce flush volumes for a very short time and then production drops to less than a third. This short period of high production and higher commodity prices is needed to justify the economics of drilling the well. Deeper targets being explored for today are also smaller reservoirs and are much more costly to drill. The industry has only been able to justify drilling for these reservoirs as new technology reduced costs and risk. Penalizing deeper wells now as recommended by the Panel will result in them being shelved as uneconomical. The oil sands are long term reserves producing at constant rates and consequently royalty indexed to commodity prices does not affect them as severely. Low Productivity Wells The Panel acknowledges that low productivity wells will require relief. However, analysis of the recommendations indicates that royalty rates will increase for all wells. In addition the Panel appears to have not considered the capital expenditures required to maintain and upgrade the necessary facilities so that the low productivity wells can continue to produce. Sometimes these expenditures are totally dependant on higher oil prices to be economic. The operating costs per boe noted in the report are not realistic for low productivity wells which are actually anywhere from 50% to double those noted. The Cost Environment Cost inflation has already increased costs to where the cost assumptions used by the Panel are not realistic. The Panel did not address how future cost increases might affect its’ recommendations. Industry costs increase as commodity prices increase. A review of recent financial statements of junior exploration and production companies shows that most are struggling as a result of the current cost environment. Finding and development costs are higher, operating costs are higher and administrative costs are higher. In spite of higher commodity prices most junior companies are already struggling, many have failed and most are showing either a loss or a very small profit. Much of the production of these companies is only marginally profitable and will be uneconomic under the Panel’s proposal. This will result in increased failures within the junior sector. The Panel does not appear to understand that low productivity wells have higher operating costs per boe than prolific producers. The Panel also appears to have excluded the general and administrative costs associated with producing wells. These costs which are required to supervise, maintain and administer production amount to between $2 and $5 a boe for a junior oil and gas producer. Land Bonuses and Tenure Payments The Panel neglected to include land bonuses and tenure payments received by the Alberta government in its calculation of Alberta’s fair share. Bonuses are paid on the perceived value of the undeveloped PNG rights. These bonuses are received by the government before any drilling or exploratory activity takes place, before one drop, if any, of oil and gas is produced and completely without risk to the government. Many such leases end up being dropped and returned to the province to be sold again! How could this amount be left out of the equation? Other Jurisdictions The Panel went out of its way to compare royalties in other countries with oil and gas basins which have different well productivity, reservoir size, and risk profiles as well as lower labour costs and different tax regimes than Alberta. Why not compare with Saskatchewan and British Columbia which are in the same basin, with the same labour force and the same federal tax regime? While our neighbouring provinces continue to provide incentives to attract investment for conventional oil and gas, it is hard to understand why the Panel would be recommending disincentives to industry in Alberta. Risk Not Adequately Accounted For The Panel gave lip service to risk but did not adequately consider the risk faced every time a well is drilled. A high return on successful wells is needed to pay for the land bonuses and costs of drilling the marginal and unsuccessful wells. The Panel did not consider the effects of income tax and the low depreciation rates allowed for development wells as well as land bonuses and rental payments. The Panel did not adequately reflect upon the risks inherent in implementing their recommendations. In fact, their calculations are based on a status quo level of production. This is patently absurd as there is no doubt that activity levels will be reduced if the Panel’s recommendations are implemented as stated. Industry Benefits to the Province not Considered The Panel’s report was inadequate in its consideration of the following economic benefits currently provided to the province by the industry. - The multiplier effect of industry spending - The property taxes paid regionally for every well and facility in the province - The Corporate taxes, personal taxes and other fees paid by the industry and its employees - The surface leases, access payments and other payments made to land owners (including the province). - The land bonuses and tenure payments - The creation of additional industries rising out of the oil industry - The skilled work force the industry attracts to Alberta - The future of our children and jobs they have training for in the oil and gas industry - How to sustain the current royalty base Related Matters And Risks Not Considered The Panel’s report also did not consider the following - Alberta has a declining conventional resource asset base and the Panel did not consider how to sustain the base opting to receive more now with less for Alberta’s future. With the right incentives industry can maintain that base. - Conventional oil and gas is a depleting asset that requires capital to replace and maintain. - As commodity prices increase, industry can justify the economics on more marginal reservoirs. - Wells drilled in the Western Canadian basin have steep production declines after start up - Return on investment in other parts of the world is already better than Albertans. - Corporations especially larger corporations have the mobility to move their capital spending elsewhere - Fewer jobs in the oil and gas industry as the industry would annually pay an extra $2.1 billion ($1.9 billion for conventional) in royalties while losing $0.7 billion by cancellation of the ARTC - The experienced professionals of the Alberta industry are quite mobile and Alberta may lose not just revenue but also skilled professionals to other jurisdictions. - The careers for many students and recent graduates planning to be employed and trained for positions in the natural gas and petroleum industry will be left in limbo. - The Panel’s recommendations will result in reduced federal taxable income and will likely cause a response from Ottawa. - The capital required merely to maintain production from low productivity wells is increasing. - The gas industry in Alberta competes not only with Saskatchewan and BC but with Canada’s East Coast and increasingly with Liquefied Natural Gas (LNG) which comes from very low cost environments. - The Panel did not consider the differential between light and heavy oil. Nor did it consider the treatment of Natural Gas Liquids. Royalties Not Understood By Many Even within the E&P sector, the royalty regime in Alberta is not well understood. This is not a criticism of the regime. It is complex for a very good reason, and that is that oil and gas extraction is itself complex with different wells exhibiting different economics. The complex system we have has developed over the past 30 years, in part, to incent the maximum recovery possible from a reservoir and sustain a strong royalty base. Given the complexity of the system, the Panel’s task was a daunting one. We would like to suggest that the time period before the Panel was too short for people unfamiliar with the existing royalty regime to understand and appreciate the why of it. We also, are disappointed that the Panel did not include more representation from the oil and gas producers of the province. Such representation would have been invaluable and may have resolved some of the misunderstandings we have addressed in this letter. Summary - The mandate of the Panel was to provide a fair solution. The language of the report and the result would indicate that the Panel took an “us versus them” approach with a pre-determined position that fair meant more. To obtain more they penalized the conventional production which has sensitive economics. It is clear that current cost data or other data that did not support such a position was neglected. - While the main concern from Albertans was that the low royalty on the oil sands was not providing its fair share the Panel hit conventional oil and gas production. This may be because that the only industry representative on the Panel was involved in oil sands development while there was no representation from conventional producers. - While concentrating on a fair share the Panel did not consider sustaining a royalty base which is declining under the current royalty regime which would obtain more for all Albertans into the future. - The Panel had a complete disregard for jobs related to and generated by conventional production throughout Alberta over the last 60 years, the number of people whose jobs presently depend on conventional production or the jobs and careers of our future Albertans - The panel did not consider incentives to maximize recovery from our existing reservoirs to retain ongoing employment in conventional production. - The Panel did not concern itself with providing a sustainable industry base with reasonable returns on investment. Such an industry will grow and lead to a continued and possibly greater take for the province. - Under the current proposal conventional production will bear the brunt of the increases. All conventional wells will pay higher royalties and many will become uneconomical with loss of jobs throughout Alberta. - The Panel did not consider that as a result of changed economics many wells will be shut-in or abandoned reducing the total reserves that will be recovered in Alberta. - The plan as written will result in the government taking a higher percentage of a diminishing pie rather than continued share of a constant pie. We believe that net governmental revenues will drop significantly over the coming years as a result of this plan. - The Panel acknowledges that low productivity wells require relief and yet their recommendations result in higher royalties and unprofitable production. - Finally if the conventional oil and gas reserves in Alberta are, as the Panel believes, so lucrative that these reserves can bear the brunt of the proposed increases, why shouldn’t the Alberta government be investing as a partner in the development of the reserves. - A goal of the Panel was to be open and transparent and yet, it is hard to understand their conclusions or how they were reached given the real world data available. Suggestions - The goal should be to sustain Alberta’s royalty revenues and employment on an asset base that is currently depleting. We would like to suggest that the following be considered: - Incentives that will maintain the size of the pie so that all can benefit. In particular, maintain incentives for reactivations or deep drilling and provide additional incentives for Mannville CBM, shale gas tertiary recovery and recycling of produced water. - Maintain the Alberta advantage by ensuring that we offer a fiscal environment at least as attractive as that of Saskatchewan and BC. - The differentials between heavy and light crude must be considered in designing any royalty regime. - Gas cost allowances should be simplified and should reflect the actual costs incurred by junior producers which significantly affect the economics of low productivity wells. - That the treatment of natural gas liquids be clarified in any royalty review. - That changes when made be open and transparent and justifiable in light of real world data and with reasonable and rational assumptions. - Incentives should be considered to encourage production from low productivity wells so as to maximize the total reserves recovered. - Do not index royalties to commodity prices. As prices increase, so will royalties. The hope for higher prices is one of the reasons that companies continue to drill for gas at all. - Any new royalty should not cause the reduction of production to the detriment of the province. - Any royalty increases should not reduce employment in conventional production. - All fiscal benefits from the oil and gas industry should be considered in calculating a fair share. - The oil sands can bear a greater portion of the fair share of royalties. Maintaining status quo for conventional production while raising oil sands royalty by 1% would achieve the same fair share as the Panel is suggesting. Conclusion “As an Alberta based Junior conventional oil and gas producer we see significant drops in our cash flow which would have been re-invested in Alberta to sustain the royalty base and jobs for all Albertans for now and the future.” We appreciate the opportunity to comment on the royalty review process. We hope that the government will tread carefully, act responsibly and take whatever amount of time is necessary to review all the data available and to seek additional input as appropriate including input from the junior producers. We hope that the final decision made will be rational, reasonable, and promote a better future for the province. We encourage open and transparent debate with results that are supported by data. We personally have had over 90 years experience in all facets of the industry including finance, economics, geology and engineering and we would be happy to participate in any discussions regarding the Royalty Review. Thank you, [Information Removed] Re: Royalty Review-Right Balance We believe that any royalty review decision should create the RIGHT BALANCE. The objective of the Royalty Review should be for the viability and sustainability of Alberta’s resources. Unreasonable and unrealistic decisions can lead to decimating the industry and our leaving marginal reservoirs uneconomic indefinitely. The oil and gas industry has helped create a strong province and they require the encouragement to continue. Alberta needs the “right balance”. To date the Royalty Review Panel has appeared to have a preconceived mandate to show that “enough was not enough” and “a fair share was more”. The selection of the representatives to the Royalty Review does not appear to have been “open and transparent”. Should the Panel requesting a fair share not have had a “Fair Representation”? A prime example of the Panel’s Report that is obviously not fair is with respect to conventional oil. Conventional oil is now producing 13.6% of Alberta’s energy resources and contributing 14.9% of the royalties. Under the proposal its contribution will increase to 20.6%, of Alberta’s royalties. In the meantime oil sands which producing 28.2% of Alberta’s energy resources is contributing only 21.5% if the royalties, under the Panel’s proposal its share will be reduced to 20.8%. The Panel’s only industry representative has only been involved in oil sands development with a foreign controlled major oil company. Is this “fair representation”? Obviously this is not the “right balance” for small Alberta based oil companies and its employees. We sincerely request that you seek the “Right Balance”. Thank you, [Information Removed]
RRE2100 We have been giving our resources away for far to long. We should not cave to threats by the oil industry saying that our economy will go into the toilet. Not only do we need to increase the royalties to look after future generations, but we need to institute an environmental tax on unprocessed resources that are exported to countries that are not part of the Kyoto accord, or restrict the sale of unprocessed resources to countries that are not part of the Kyoto accord.
RRE2101 I think under the new proposal, the government may initially receives dramatically increased revenue but the impact on the potential "cuts" or even shut-down in some areas may offset the gain in the long run. I would like the government to seriously take that into consideration. Thank you very much. Regards, [Information Removed]
RRE2102 I would suggest not making such a large decision which may have detrimental consequences across Alberta until various panels, not just the Royalty Review Panel, have a chance to do their own analysis.
RRE2103 I support the royalty review report. Please implement 100% of the recommendations. A slowdown of development will only help Alberta. We are in crisis mode trying to deal with the influx of development, environmental impact let alone the health, social service, housing & other infrastructure requirements for our growing population / development. Our royalties need to be more closely aligned to other jurisdictions . Additionally the recommendations would actually reduce royalties paid for smaller companies. Don't let big business influence good business practices. Thanks [Information Removed]
RRE2104 ---- Forwarded Message ---- From: [Information Removed] To: [Information Removed] Sent: Tuesday, October 23, 2007 12:40:56 PM Subject: Fw: Rant on Alberta Royal tees Issue ----- Original Message ---- From: [Information Removed] To: [Information Removed] Sent: Monday, October 22, 2007 8:03:08 PM Subject: Royal tees Hi Uncle Ed At the risk of releasing a torrent - what is your take on the provincial royalties issue. [Information Removed] THE OLD OIL ANALYST REPLIES --- ITS WRIT BIG SO US OLD [expletive] CAN READ IT EASILY [Information Removed] The royalty issue may be the cause for the Alberta government to finally see an effective opposition elected in the next election IF THEY DON'T RESPOND RESPONSIBLY AND LASTINGLY POPULARLY to this issue. PREMIER STELMACH HAS READ THE WRITING ON THE WALL - I JUST HOPE HE UNDERSTANDS THE MEANING OF THE MESSAGES. The study states what most already knew - that the industry is making so much money that it doesn't know how to spend it fast enough. Industry can afford to be generous to its serfs. Look at salaries, car sales, house prices, jobs, population growth, restaurant prices, leisure property demand in BC by Albertans etc. Repeated in Sask too! Thanks to a comparatively low corporate tax policy enormous profits are expatriated to foreign owners of the larger resource companies. Try that anywhere else including the Excited States! When you compare the takes on profits from all levels in Canada you realize that the burdens on the oil business are lower than anywhere else. Viz : even Statoil (Norway) and the Abu Dhabi Oil Co (also state owned), are buying into the tar sands DECIDING TO DO SO AFTER the threat of royalty adjustment was made known. Further, if Alta reduces profits and keeps the money the Feds have less profit to tax. So guess which Federal Tory party has irs "blind mice" membership in Alta stirred up on the issue? On that same note, explain why the Alberta Heritage fund puts its money on loan at less than 5% instead of insisting it invests alongside companies like Esso, Syncrude and Sunoco for returns (after tax!!!!!!!) of more than 18% in all those cases. The heritage fund absolutely does not need liquidity and lending out the cash at those rates rather than, at the very least, funding infrastructure construction before costs rise again (eg Calgary's badly needed next hospital price increased to 700 million from 300 million when it was first put on the list 5 tears ago). Ptooey!!! Just stoopid I guess! Companies like Exxon-Mobil and other foreign investors have raised a well-orchestrated stink and the threats by companies such as Encana about reducing their Cdn budget by $1B are so full of [expletive] the very media they are reported on stink - its propaganda designed to be swallowed by the worried service co employees etc, the Freds and Marthas that Rotund Ralph Klein used to delight in referring to when he wanted to name the mullets he was exploiting. The naked truth is that the USA hasn't needed to spend on developing their relatively very expensive presently uneconomic oil and gas reserves when they have Canada next door. And what about gas? About gas.... the surplus of gas has the price low. Industry clamored for years for removal of reserve to production ratios so that the fields could be exploited at US rates of production. So now we have excess capacity and the US pays us circa $7 per mcf when gas should be, on heating value basis for $90 per bbl oil, approx $12 per mcf The industry screams about a downward adjustment on the majority of Alberta gas production? How come??? Because the biggies wanting to explore for and exploit high risk high productivity foothills and frontier gas don't want any precedent set for high royalties on their high profitability biiggie wells' production. The sheep running the small Canadian companies are now grazing on the low productivity holes (which represent most of Canadian production) raise the hue and cry about lower royalty on their main kind of production. Dumb sellers on dooty? You betcha! Its sheep shearing time in Alberta - just in time for winter! You can't find any country in the world right now where Encana (or any other company) could invest that $1B ANNUAL amount as safely and sensibly in the petroleum business, not to mention as profitably. We are being fed such a crock by industry - like for another instance, all the [expletive] about "?errors?" that the woman from the tribunal supposedly confessed to having been used in the report- you will notice that her rebuttal saying she never said the things she supposedly said was buried in the viagra ads of the papers and thanks to the lethargy of our media the story never made it to air except in such way that made her look like the village idiot sitting under the chestnut tree and amusing herself by [expletive] herself. That's fact! HOPE THAT AFTER YOU WIPE THE FOAM OFF THIS (I REALLY WASN'T BITTEN BY ANY BATS CAUSING ME TO DEVELOP RABIES) YOU CAN READ IT AND IT MAKES SOME SENSE TO YOU.
RRE2105 Mr. Stelmach. Do not be intimidated, follow through with the recommendations. Peter Lougheed raised royalities and it was fair and right and Alberta flourished. You know this is fair and right. You said it best when you said the resources belong to the people. Let's use those resources to make Alberta the place for economic diversity, research, alternate energy development, and the highest standards in education in Canada. If this opportunity is lost Alberta will revert back to its backwoods roots the moment the oil is gone. Thank you
RRE2106 The review panel is playing with Canada's future. They think that getting more money now is the most important thing. What happens when the big Oil sand projects slow down or just stop building new plants. Where will all the workers go? How much tax money will be lost from their wages? How much tax money will have to be spent on helping these displaced workers? Everytime the government goes for another tax grab they [Expletive] something up. Just look at last Halloween Income trust tax changes. How many of these trust have been bought out by private money and Canada will see no taxes from them now. This great idea to get more tax money ended up getting less money than before they made the changes and desimated the trust industry. This review panel does not know enough about the industry to make these recommendations.
RRE2107 I will be very disappointed if the Alberta government fails to implement the "Our Fair Share" report. This report, far from being some radical suggestion, is already a compromise between the industry wants (e.g. the status quo) and the public interest. Even when implemented entirely, Alberta's oil patch will have huge competitive advantage as royalties will still be very, very low and Alberta has an incredibly stable political climate unlike most other oil-producing states. Companies do not have to ensure their workers against sabotage and kipnapping in Alberta, for e.g. They do have to pay this cost in Ecuador, Iraq or Nigeria. If short, I want Premier Stelmach to stand up for Alberta like he promised while running for the PC leadership. Why is he backing down now?
RRE2108 The Royalty report seems to have reached a reasonable conclusion that would put Alberta somewhere in the middle of the pack internationally, with respect to revenue generation. 'Doom and gloom' posturing by the Petroleum producers is normal, and of course will continue because their threats have worked in the past. The oilsands, in particular, represent one of the most attractive locations on earth for future energy, so even if there is some token investment pull-back, none of the major players is going to risk marginalizing their involvement. I think Alberta's long term interests are best served by implementing the recommendations now.
RRE2109 why don't we focus on actually collecting what is currently owed by producers, as the report stated this dept. is not doing a good job. this should help increase the revenues without destroying the only thing alberta has going for it.
RRE2110 Royalties should be increased, but might be a good idea to lock the increase in for a period of time to give some certainty/stability to the oilpatch/investment.
RRE2111 I agree with the recomendations from The Royalty Review Panel and the additional comments from The Auditor General on the Royalty issue. I hope the recomendations are accepted by The Premier and the present Provincial Government. I feel that we as Albertans have not been getting a fair share of the royalty money in the past.. You have a chance to put this right and I hope you endorse the report. I hope some of the money retreived could be put back in to the Health care system and Education system, both of which, are struggling to meet the needs of the citizens in Calgary.
RRE2112 I urge you to implement the recommendations of the Royalty Review Panel. I would also urge you to use the additional income from the increased royalty rates to support renewable energy in Alberta. The Alberta NDP have recently released an excellent 'Green Energy' plan, which I fully support. Remeber, your job is to serve the people... not the oil companies! Don't be fooled into thinking that they want what is best for Albertans. Sincerely, [Information Removed]
RRE2113 I have reviewed the royalty report and am convinced that the recommendations, if implemented, are not in the best interests of Alberta. The cost numbers utilized by the report writers are obviously out of line with the current costs to operate in Alberta and therefore the conclusions made are invalid. While I can understand that a modest increase in royalties is worth considering given that it has been some time since rates were last revisited, I am certain rate hikes in the amount and of the nature recommended by the report will not generate the $2B estimated. Instead, we can only expect investment to dry up such that more of less is still less not to mention the coincident loss of jobs in the energy industry which has lifted Alberta to the pinnacle in Canada and in global energy circles. I am also concerned about the everlasting impact implementation of the recommendations would have on any investment in Alberta and Canada. Changes of such a drastic nature, without any grandfathering, are tantamount to expropriation and I think Alberta and Canada should be concerned about potential actions under NAFTA from US investors in the Alberta oil industry. I am proud to be an Albertan and a Canadian but as a member of the International community would be very embarrassed if the royalty report was adopted as written. Doing so would, in my view, seriously tarnish our reputation as a stable and reasonable jurisdiction to do business in and drive dollars earned in Alberta and slated for re-investment herein to neighboring Provinces and other countries. I support the Conservative government and have done so for all my voting life. An adoption of the royalty report recommendations would not be responsible government and would definitely cause me to seek political representation from other than the Conservatives. Regards, [Information Removed]
RRE2114 Why now that our Province is doing so well, the goverment comes up with the Royalty Review.? This will mean that many of us will loose our jobs not only in the Oil & Gas Industry, but also in many other sectors. A fair solution for both parties has to be found. Please understand that with the new royalties you wont only be affecting the Oil & Gas Industry and the big Oil & Gas Investors, you would also affect each individual our Province.
RRE2115 I think the report overlooks the uniqueness of Alberta's position in the global oil industry. As an Albertan, I believe I will benefit far more from a royalty regime that encourages continued investment in the sector rather than the so called "fair share" regime. Higher royalties should not be looked at as an entitlement to Albertans, it is not the royalty regime that keeps the economy moving, it is the investment in the industry. The Alberta oil industry is capital intensive and we need to be cognizant that these companies must remain competitive on a global basis. I would suggest that if the Alberta Government wants more oil revenue and because we think these companies are gaining a wind fall, we should use the Heritage Fund to invest in the oil companies operating in the province. Does the province really want to risk a slow down in development by putting a higher price tag on operating here? Will the province really make more money by boosting royalties, or will we make more money by having more development and more tax revenue (income tax revenue from Albertans employed in this well-paid industry)? Being different is what attracts companies to Alberta, having lower royalites will keep our resource industry competitive through bad times. As far as I can tell, the oil companies that operate in Alberta are very good at working with the Alberta Government, and this benefits all Albertans. The last message we want to send this capital intensive industry is that Alberta is not a predictable place to do business. We should stop taking all the benefits of our oil boom for granted by demanding more and more and continue to partner with the industry to keep the Alberta Advantage strong. From a longer term perspective, we would be much better off focusing our initiatives to diversify our economy while oil prices are high rather than focusing on this so-called "entitlement" that will negatively reverberate through our provincial economy. No one has ever said: "let's invest in Alberta because it's expensive"!
RRE2116 I feel that the report submitted to the province concerning royalty review needs more investigation before it should be approved. There seems to be a concensus among several reviewers of the report that illustrate errors and flaws in the panels' findings. I think more information needs to be gathered before an informed decision can made. I hope that the government will take the time to look at all sides of the story before making a decision that will impact the lifes of all Albertans. Thank you for listening.
RRE2117 This is actually a question for Mr. Hunter. I saw the following quote in the newspaper. "I was prepared for debate," he said. If he was prepared for debate why did the panel release the report with the caveat that it must be accepted in its entirety?
RRE2118 This report is excellent, and I certainly hope the Alberta Cabinet wholeheartedly adopts all their recommendations. Please don't be bluffed by EnCana's threats......they cannot get petroleum cheaper anywhere in the world.....if they pull out, they will be back!! The Royalty committee was well chosen, and it is imperative for the citizens of Alberta that you adopt it completely. [Information Removed], Cochrane AB
RRE2119 My fundamental concern with the Royalty Report and its recommendations is two-fold: 1. Royalty rates appear to be analyzed in isolation in the context of the true total exploration & production costs of Oil & Gas Projects in Alberta. If our Royalties are so much lower that other jurisdictions, then we must ask ourselves, why our E&P costs almost the highest in the world? I believe the answer lies in all of the other layers of associated costs, some of which can be linked to other Government bodies and their regulatory requirements. And recall, Kyoto has not even been implemented as of yet, which presents another huge overhang for Industry in Canada. I believe it to be erroneous of this panel to view Royalties in isolation, although that may have been their mandate. The unfortunate consequence of this seems to be a public perception that it’s “cheap” for Oil & Gas companies to do business in Alberta. This couldn’t be further from the truth. 2. The only real Alberta Advantage is the respect of the rule of common law, and its associated political stability. By rewriting the Royalty structure and unbelievably, Grandfathering many projects, the Alberta/Canadian Advantage begins to ring hollow. I understand that there are many other technical concerns with the report, including the use of suspect data in many instances. I defer this analysis to the experts, but I trust an analysis of this data by such qualified individuals over the emotions of the general public, many of whom probably directly or indirectly benefit from the economic viability of Energy companies in the first place. If the intent of policy makers is to slow down the sector in the Province, then this will surely achieve that, which by the way, could potentially result in a net royalty decrease. Further, if these new Royalties are adopted I personally wish to see a corresponding decrease in my Personal Income Tax of some 20% or so. I trust my elected officials to a make EDUCATED, FACT BASED decisions that will affect my future and way of life of all Albertans. Further, I trust that it is not the intention of my elected officials to feel that they can run a business as risky and complex as an Oil & Gas company, better than those companies doing so now. If this is the case, it begins to sound like the days of the NEP all over again. That too, started with the best of intentions, with the guy on the street hollering for his “Fair Share”. In the end, things were fair – no one had anything. Yours truly, [Information Removed]
RRE2120 I am an officer of a public junior oil sands company located in Calgary. I have invested my personal money in this company, which has deployed its capital in the Athabasca Oil Sands in Alberta. I have serious concerns regarding the Royalty Review Report issued on September 18, 2007, which concluded the Alberta government needs to increase their take in the oils sands sector, primarily. The report has not incorporated current cost data in its analysis nor compared the Alberta royalty regime to other countries on an equitable basis. Production from oil sands is in its infant stages in Alberta; the costs have been higher than anticipated and the resource is unlike any other in the world. There have been companies that have announced their intent to deploy capital from Alberta to other provinces and countries if the government incorporates the recommended changes. The government would error in changing the royalty regime in Alberta based on this report. The future of Alberta will be shaped largely from the development of our oil sands. I am a proponent of ensuring the development should benefit all Albertans. I caution that if the changes are severe, as recommended by the review, it may result in fewer royalty dollars earned from a smaller revenue stream with a larger royalty take. Only the premium reserves will be drawn from. I suggest a royalty regime that maximizes development and production, from all qualities of oil sands, will increase the ultimate dollars in royalty revenue for Albertans. The Alberta oil sands is a world class asset which has attracted billions of dollars from investors. Our junior company has been able to attract some of these investment dollars specifically to assist us in defining the resources on our lands. These funds were raised with flow through tax incentives and we will not have the luxury to shelve this project and move on to other properties in other countries. Our economics have shown us that our net present value will drop by approximately 50% if all the recommendations are incorporated by the Alberta government. The rate of return is no longer attractive enough for us to carry through with a development project as our ability to attract investors will be minimal. If change is required, I would prefer the government maintain the 1% royalty before payout for oil sands property, to help control costs during the capital intensive phase of development and instill fairness in resource quality. If royalty increases must occur for oil sands, I believe it would be better to alter the 25% royalty after payout. This will be the single most important economic policy the Alberta government will make this term. The current royalty regime was implemented during the Klein government and I recommend the analysis done and recommendations made at that time be reviewed and re-considered before altering its purpose now. I urge the Alberta government to assess the full implications of the Alberta Royalty Review Panel's recommendations before endorsing changes. It is difficult to operate a company in these uncertain times. I ask the government to be accountable and demonstrate quickly that Alberta sees no advantage in discouraging oil sands investment. Please feel free to contact me if you wish to discuss this further. Yours truly, [Information Removed] cc Varsity MLA Harry Chase
RRE2121 At present I am undecided on an opinion as to what the impact of the Report will mean to Albertans. Certainly I believe that there is an opportunity for the Gov't to realize more value from the resources; however, the recommendations as outlined leave many questions in mind. With respect to Capital Cost Allowance, were sour gas facilities intentionally omitted? In my opinion these are the facilities that would incur the greatest impact of a postage stamp rate, yet no mention was given to them in the report. With respect to production and price sensitivity, how will the royalty obligation be calculated on Units. Gas Units operating in the province with NGL's will be heavily burdened under the new regime provided that there is no provision to allow for calculation at the well level. With respect to the BVM, I am not convinced that the formula should be based from West Texas Intermediate. Perhaps the formula should be based upon Western Canadian Select pricing. These are only a few of the questions that I have. There will be a definate impact to the economic evaluation of projects; conventional and unconventional. CBM projects were already shelved in 2007 due to price restrictions and under the new policy I can not forsee CBM being an economically viable project well into 2009 or beyond. From a personal perspective this is fine as I have groundwater and environmental footprint concerns when it comes to CBM. But, what happens to the dozens of engineers, geologists, geophysicists, land administrators, etc. who have worked on these projects for the last 5 years. Will they continue to be retained by the company simply because it is too difficult to replace them in the current environment? I believe that companies will need to take a good look at their General and Administrative overhead costs in order to remain competitive. Lay offs will most certainly be one way of addressing this. The Alberta Advantage, as it were, has been due in large part to the success of the oil and gas companies operating in Alberta. Many people from many walks of life have been able to enjoy that, but none so much as the employees of the major companies. Perhaps it is time to share the wealth...just make sure it is not to everyone's detriment.
RRE2122 I am asking that your government give this proposal more review. As a small business, who has spoken to several parties in the oil and gas industry, I suggest that I may not be able to continue with my service company to the industry. My loss of work, would also affect my children who are in advanced education. They may not be able to complete their degree without parental assistance, and also if they are fortunate to graduate from U of A, they may not be seeking a job in Alberta due to lack of opportunity. I trust that the industry that made this province rich, will not be decimated by more royalties. NO reply required.
RRE2123 The Tax Fairness (Income Trust) fiasco has resulted in a major slowdown in drilling and well service activity. Hit the industry again with higher royalties and drilling and well service business will just about stop, And government revenue will actually decrease as the resultant downturn in economic activity will more than offsets the increased rolalty revenue. Regards, [Information Removed]
RRE2124 Let us not kill the golden goose-- it is a driver of employment right across the country including our great Province. I am of the opinion that a lot of the suppositionsand assumptions are invalid in forming the conclusions reached in the Report. Our Gov't should reach a fair balance that recognizes current economic conditions throughout the industry, financial markets and consumers.
RRE2125 It's about time this government takes more of its fair share from oil and gas resources. For way too long, Alberta has led the way with corporate giveaways and "royalty holidays". When a country like Norway has over a quarter trillion dollars tucked away for a rainy day, this makes our Heritage Trust fund look like a joke. If Danny Williams can take a stand against big oil and win, Alberta can do the same. Of course I'm sure you realize that anything other than the full implementation of this report will result in an election loss. Happy trails.
RRE2126 More royalities = less drilling and compleation work= less production= less employment=more unemployed! More people out of work has a adverse effect on alberta`s economy and and growth! Bad Idea!
RRE2127 This will be a very bad thing for Alberta. This is a really stupid thing to do now. Nobody will gain anything the end if the oil & gas industry reduce their investment in AB, a lot of people will lost their job and start to damage whole economics in AB
RRE2128 As the president of a [Information Removed]business in Alberta that has just seen this last year's business dry up. I am very concerned with the proposal and feel it would be a an error to procede with the royalty review panel's recomendations. We sell over [Information Removed]trucks, parts and service and rely upon the local oilfield servicing companies to maintain the majoirity of our sales. This move would threaten to turn off the tap so to say and the downstream effect on the local alberta business that suport the oilfield would be detry big picture. Why does alberta need greater royalties as we are already the greatest province/state in norh america in regards to taxes, balance sheet, standard of living, etc. leave the program as it is or at the very least reconsider the review with current economic enviroment in mind. Go Slow, [Information Removed]
RRE2129 September 28th, 2007 I am very opposed to any increase in royalties. The Report of the Royalty Review Panel is very deceptive. If you read page 38 it shows public opinion from the web site. Well, it gives really twisted statistics on what was said. First 37% gave a direct opinion that the royalties should increase. That would imply that 63% do not want an increase or they would have said so. Second the question "Are Albertans getting their fair share"? That is not a question about royalties. They want more wages, more benefits, more jobs, more opportunities and a stronger dollar but not a bigger government grab. On page 42 the Ipsos-Reid Question 2 indicates that only 25% of respondents think oil sands royalties are too low, which would imply that 75% want no increase. Well the panel has twisted the statistic to say that 82% of respondents think that revenues collected by govertment are "too low, or about right". Please! This is just adding to the frustration level. This is a very important decision for Alberta and now is absolutetly the wrong time to destroy our energy resource sector. Respectfully [Information Removed]
RRE2130 I work in the oil & gas industry and I am afraid of what the BIG oil companies are threatening (since I want to sell my house), however, should our government succomb to blackmail? If the royalties do increase to the percentage that was suggested and IF the BIG oil companies pull out, would that not leave a lot of room for the smaller oil companies to jump in and take over? I admit that I don't know all the in's and out's but I feel for you as you have to try to please everyone and it is an impossible task. Good Luck!
RRE2131 I am totally outraged that our government would release such a report as this. The findings are completely inaccurate and assume a much lower commodity price than reality. Don't you think that the public should know that at the current gas price the Alberta Goverment would stand to gain more like 5-7 Billion instead of the proposed 2. It will come as no shock to you that I work for a large O&G company in Alberta. However, I grew up in the booming city of Grande Prairie and I am shocked with how little my friends and family that still reside there don't understand about these changes. I am mortified of the thought of my company pulling out of the Grande Prairie region. I can;t beleive that our goverment can be this greedy. Honestly if you need more money tax us more along with companies. Taking this out on large O&G companies is not the right solution. These companies are going to pull out entirely just to send a message that they too won't be "bullied" by government. Thanks for your attention. Signed Weiry Voter and Concerned Albertan
RRE2132 Mr. Stelmach, You should be very wary of any changes in oil & gas royalties. The warning today from [Information Removed]is just the tip of a huge wall of dissatisfaction from Alberta's major employers. The royalty report from the panel that you established is quite out of touch with reality, when they assume that implementation of their recommendations will have minimal impact. It is very likely that we would have a "made in Alberta" energy crisis every bit as acute as the NEP was in the 1980s. Please consider the adverse consequences which I believe are around the corner for all Albertans, if you proceed with the proposals from this report. Also, consider the impact upon your own electoral future if these debilitating effects should occur. This advice is coming to you from a long time member of the Alberta PC Party. Douglas Zebedee Calgary, AB
RRE2133 Why does Alberta need more money, supposedly we have a $7 billion surplus at the moment. We all know the oil companies are getting rich here, but we need them, its part of Alberta, why we're so far ahead in the first place. We should be treating them quite nicely, ask them what they're willing to accept, instead of forcing a massive royalty charge upon oil profit. If it goes through it won't take long before Alberta is left deflated and then everyone loses.
RRE2134 I am in favour of implementing the recommendations of the royalty review panel.
RRE2135 My husband grew up in Zimbabwe and I in South Africa. We left Africa to come to the sanity of Canada and have managed to rebuild from scratch in Alberta. We were able to do this because we work for many different oil companies and oil service companies. Our roles provide us access to their plans and budgets. The 2008 budgets have been negatively impacted by the exchange rate, the steel shortage, increased operating costs, and the climate change initiatives. The Royalty changes will be the straw that breaks the camel's back. We know that the impact of all of this is that exploration and development projects in the larger companies will be cut by 60% and some of the smaller companies will have to cease operations completely. Personally, we face losing all we've built up and will go into retirement without the nest egg we've been building up. Never did we think we'd witness a third world government in Canada. Shame on you.
RRE2136 Be very carefull before implementing a program that will destroy the Alberta economy. These oil companies are not messing around. They , as is all other bussinesses, are in the bussiness of making money and will shut down operations if they are not making money or move them to other provinces. This proposal would be devistating to Alberta, jobs would be lost, and the current goverment would go down as the goverment that ruined the best growing economy in Alberta history. Be cautious !
RRE2137 In the early 80's the federal government ruined the economy. HOWEVER, I WOULD NEVER HAVE THOUGHT THAT OUR PROVINCIAL GOVERNMENT WOULD BE OUR DOWNFALL. With things slowed in the oil patch already, a move towards higher royalties, will slow things to a crawl. Grande Prairie is already seeing a HUGE slow down and there are many vacant houses on the market. This move will put us right back to the early 80's and I see the rise in royalties as sheer and simple greed. Settle down and let this province continue on and try to recover from the higher dollar before you go KILLING THE GOLDEN GOOSE - which is what you are contemplating. ARE YOU INSANE???????
RRE2138 I think the governments myoptic view on the royalty issue is both short sighted and flawed . A disgruntled voter is more likely to get out and vote and tell anyone who will listen how frustrated they are with the elected party. You thought you inherited problems from the Kein gov't, just wait till the liberals or NDP take over from your mess if this "fair share" is adopted. I'll be first in line to cast my vote as will a large number of people ... [Information Removed]
RRE2139 Framing the debate on oil & gas royalties as an 'us against them' is poor management on the government's part and unlikely to serve the interests of Albertan's. The mature conventional basin and Alberta Oil Sands require substantial, high risk capital to develop. Sums large enough to require the support of a global investment community - which takes years to develop and is cautious at best. Infrastructure changes, such as environmental legislation and royalty increases, have a long term far reaching influence on the investment community. Look at the value reduction the market has handed the Canadian oil and gas companies with just the announcement of royalty review report - the loss of billions. Responsible change is phased, graduated and predictable. Adopting the royalty report as is would be irresponsible and devastating to the international investment community. I am certain it will result in the transfer of ownership to companies with substantial operations and land bases outside of Alberta; undermining local ownership. Albertan's have to be seen as having competence within the province, the government, the construction industry, the financial instituions - we are entrusted with billions. It is un-nerving to think that the provincial government has put it self in a position to undermine the Alberta economy, independent of the final Royalty decision, the fact that we are lead to believe that this is a fight between two separate groups is nonsense and nothing short of incompetence within government leadership. The international investment community has responded by showing us they don't have confidence in the Alberta Government. The new royalty regime is a boon for foriegn takeovers and goes directly against Canadian control over its assets. In the long term profits will exit the province and the chain of value will shift to downstream processors (upgraders, refiners, pipeline distributors) leaving Alberta in a vulnerable position. Albertan's have already lost the opportunity for an intelligent debate. One that looks at the cycles of global commodity pricing over decades and rewards Canadian entreprenuers for their risk and talents. Which part of the royalty formula reduces royalties when commodity pricing drops? Oil and gas pricing is not established locally, yet the government panel pre-supposes that profits will remain high. This is simply not the case and goverment now has the opportunity for an additional tax grab under the gise of fighting against "them" for "us". With abrupt change we will all lose.
RRE2140 Industry is the goose that laid the Golden Egg, The Gift that keeps on giving. The Girl that we brought to the dance. Treat her nice.......sit back, watch those dollars recycle. We don't need PHd's. Look at the Chinese economy. They stay out of industry's way tax-wise. Greed kills.....................economic booms. [Information Removed]
RRE2141 Please do not change the royalty system substantially. Albertans already receive a substantial amount of money through development in this province. Do not be remembered as the government that killed Alberta's economy. We want responsible development to continue in this province. We want companies to be responsible for damages to the land. If changes are to be made, make them very small increases to amount of royalties collected. Save more of today's revenues for tomorrow's major downturn in Alberta's economy. What is going to happen to the millions of people in this province when there are 60% less jobs because the energy industry collapses? Save Save Save!!
RRE2142 I am a small investor who owns shares of many Alberta energy companies through a fund in my RRSP. I think the Alberta government should look carefully at who actually profits from the energy industry. The large energy firms, which represent most of the capital in the energy market, are very broadly owned compared to many other industries. Pension funds, mutual funds and small investors, often through their RSP's, own huge amounts of this industry as shareholders. We have put our own capital at risk to make this industry thrive in Alberta. I do not think we should be penalized as our reward. Since it definitely is desirable for Albertans to share in the revenues created in the energy industry, why not encourage their great tradition of being the most personally responsible electorate in Canada? Launch an advertising campaign in conjunction with the energy and financial services industry, to encourage every Albertan family to own energy shares directly. Get the profits directly to the people - they know best what to do with it. Don't get it to them three-steps removed though government redistribution, with all the inefficiency that implies.
RRE2143 As an Albertan, and former Saskatchewan resident, I have always been proud to call Alberta home. The province I came from years ago, imposes high taxes which does nothing to boost the economy. Small business is unable to grow and tax continues to climb. The entrepreneurial spirit this province has to offer is now being threatened by a report which needs to be solidified by facts. Calgary has 600 publicly traded oil and gas companies who are governed by SOX requirements and in doing so make the financial and operating metric data available. Why not use the data rather than rest our future on the opinion of a few? All Albertans need to be accurately informed to make an educated decision. We also need to realize the oil and gas sector is the backbone of Alberta. Without this sector, Albertans would not realize the type of life we enjoy today. Granted, there may need to be a revision or correction to contributions made from oil and gas to the public, the public needs to understand where our bread is buttered. Let's also remember, there was no offer made to assist this sector when there was trouble some years back. By imposing the Royalty Review, as it stands today, we are putting our economy at risk. Our economy will struggle if we levy this payment to a sector that has been the lifeline of our province. Alberta needs to continue to be investor friendly and continue to demonstrate the Alberta sophistication and business savvy. Present the facts. A concerned Albertan.
RRE2144 I read most of it, and really like the scaled approach suggested for Bitumen and the rebate idea if the Upgrading is done in the province. If anything I would increase the rate more and also increase the rebate for Upgrading here. We need to discourage as much as legally possible to shipping raw product out of the province. I also think the same thing should go for Natural gas. Increase royalities on it then offer a rebate if the gas leaving the province is 98% methane. Lets encourage Propane, Butane and ethane extraction to occur here and not in Chicago. If making changes does cause a short term slow down, thats not a bad thing. Our economy could use a breather right now and the oil/gas isnt going anywhere. If anything it will be more valuable the longer it is in the ground.
RRE2145 Dr Mr. Stelmach This e-mail is about the royalty review. I work for an engineering company called [Information Removed]. We just have had meeting with one of our client [Information Removed], have been advised that a) we won a substantial project and b) the project is on hold as a result of the royalty review. Why is it on hold? Because the timing and message of the review. The timing is when most of oil and gas companies do their budgets in the fall (bad timing), and message is that if adopted as it the royalties collected will increase by 50% and not by 20% as stated in the report. Even though the final announcement has not been released our company has now “lost” significant amount of man-hours for this year which will be hard to fill in on short notice. (We were previously notified that we have this work.) The royalty review has already impacted me directly. I am P.Eng, PMP, lots of experience in various industries and if required I will likely find work on other projects, but folks with less qualifications may not be so lucky. I support some increase in royalties and some tapping of breaks on the economy. But I urge that the government gets all the facts before making a decision as this decision may send Canada into recession as currently our O&G in Western Canada is what is currently holding the wolfs at bay. Facts such as true costs of doing business, the current profits, if implemented as is what the actual cost or what the paid and collected royalty will be, and if companies slash their budgets by 30-50% like some are doing, what the impact will be on all Albertans, as like it or not, directly or indirectly we are all tied to this O&G economy. [Information Removed]
RRE2146 I am very concerned with the issues at hand in regards to the Royalty Taxes. I currently work in the oilfield as a rig manager for a well servicing company. [Information Removed] I believe that the compromise for this situation is to have the royalty tax brought in with yearly inflation increments, just like our wages, where u get a cetain % a year increase. I agree with the PC party, but I promise that if the reccomendations are not agreeable with myself, and I will know because my workload should increase if it is favourable, I promise I will never vote PC again, provincially, or Federally and I know about 500 others who will agree with me on that. I will lose my house, my car and my manhood if this royalty tax issue is not resolved within the next 3 or 4 months. The oil companies sound like they are willing to work with you on the issue, so please dont let this fall onto deaf ears, my families future depends on this!!!!!!!
RRE2147 Please implement the royalty panel's recommendations in full. Do not listen to the bullying from the oil companies. Also please clean up the administration in the energy department.
RRE2148 This is a non renewable resource that belongs to the citizens of Alberta and Canada, not oil executives in Calgary or the United States. For far too long we have exported this resource at a discount and purchased it at a premium. If Encana or any other firm feels that they have to place their capital in other stable countries like Russia, China...then I invite them to do so. Since Premier Klein had ZERO vision in the development and impact of his policies on this resource and on Albertans, I welcome a serious moderation in the development of this resource rather then the gung ho build everything now cowboy policies that are currently in effect. And if Albertans get a larger % of the revenue that is rightfully theirs over a longer period of be it.
RRE2149 I can see that this royalty review is tailored toward the government's wishes only and very little consultation with the active members of the oil and gas industry. Any industries in the world would have impacted greatly with this type of royalty increases without any doubt. If the government wants to stop the oil and gas industries on the track, this is an excellent way of doing it. Alberta governement have not learn any lessons over the past NEP policy. They are slow to react to the sight of economic signs of the time and did not even realize the industry is slowing down due to the high cost of doing business. The premiere only learns after big mistakes is done. (like he lost the by-election in the Calgary riding before he release the Transportation funds to the city). I am fully believe that he will not realize this is a very critical issue until he finds out the crash of the industry next year if the proposed royalty scheme is implemented. Unfortunately we don't have Ralph in control any more.
RRE2150 Dear Sir, I am just out of high school and have found a job retreading tires. I plan to work 2 years before attending university. If the oil industry shuts down our customer base will be gone and so will my job. [Information Removed]Grande Peairie, AB
RRE2151 With a decrease in oil company revenue, economic incentive to spend in Canada, and a resulting loss of employment in the service and support sectors, how will the Alberta governement spend the "perceived" additional royalty revenue? The spending will be on a program to generate jobs for the newly unemployed oilpatch worker.
RRE2152 Learning that crown land bonus prices were not considered in costs when calculating netbacks to producers concerns me. If the review left this significant cost component out, what other expenses may have been ignored, and how valid can the results be? [Information Removed]
RRE2153 Hello I am a wellsite geologist - working in oil patch since last 4 years. I have seen very nice period of economic growth in oil patch. Since my job is directly related with Rig Activity I am seeing it affecting my job adversly this year because of low gas price. Moreover with the increasing royalty issue, it is going to make more worse. I am not sure up to what degree it is politically motivated but certainly this province will see lot of us leaving this province for a new job because base of every job here is direclty or indirectly related to oil and gas production. Me, my family and my friends are totally against this increase in royalty. Why doesnt government go for public refrendum and find the better way of doing it. Thanks and Wish for a better future of Alberta [Information Removed]
RRE2154 Proceed with the increases in the Royalties as recommended. i am a member of the Conservative Party both Provincially and Federally and fully support the values of both. however, an industry is making money from our resources that have increased in value. it is reasonable to revise the royalty charged and i would argue is overdue. do not bow to the pressure of those companies that see this as a threat to their earnings. they should not count windfall earnings that they have been receiving as their entitlement. there bluffs of pulling projects will be short term and will have them back in the near future.
RRE2155 any royalty or report that will disrupt the financial idependence that any hard working person in alberta has is rediculous.believe the oil company's when they say exploration will stop if this goes through the way it is written.
RRE2156 Eddie, Difficult for you to win on this one. Take this opportunity to show true democracy. A provincial referendum should be called, and quickly. Unprecedented, and truly democratic. Only those who are permanent residents of Alberta should vote. And personally, I hope greed on the part of the taxpayer doesn't kill our economy, but it will be us who make the decision, and we "reap" the consequences, good or bad. My previous email on this to you recommended status nothing on royalties because Big Oil will make us all suffer if we grab them...but politically this is difficult for you. [Information Removed]
RRE2157 I am absolutely in favor of goverment restating the royalties that are collected. Companies are generating record profits ever year because demand for energy around the world is so strong. Energy companies saying that government shouldn’t make changes are lazy because they don’t want to make change to the way they do business. The government must be firm and maintain its position on this issue so we can continue to develop and improve. The industry will adapt and make the necessary changes to their operating models, and if they don’t there will be new companies that emerge with new business models built on the royalty structure. It is critical that government does what is right for the citizens of Alberta and not be intimidated by greedy energy companies that make threats to government of decreased investment in our province.
RRE2158 I feel the oil industry in Alberta should most definately pay a much higher royalty rate, and without a maximum cap. Why this industry continuesto be permitted to line their pockets with cash, while the age Joe Albertan is living from pay cheque to pay cheque. Yes, Alberta is booming thanks to our natural resources, but for thousands of us Albertans it's really tough, rents continue to go up as does everything else, except not our paycheques. A single person like myself certainly can't afford to own a home or even afford the utilities, and taxes that go with it. If these big corporations feel that they are hard done by, and keep threatening to take their business else where, well I say open the borders and help them go. We'll see how they like going to war torn countries to get their oil. I'm very glad that finally someone has the "[Expletive]" to stand up to this industry. God Bless you Premier Stellmach, I thank you for the great job you've done todate, you probably will not be re-elected due to the money grabbing oilmen in Calgary that have been calling the shots for the past 50 years. With a portion of the money raised thru the royalties, kindly invest some much needed cash into the Alberta senior housing and medical needs. Why should our seniors that built this province from the ground up be forced to live in extreme poverty. The auxiliary hospitals, nursing homes etc. are mostly private, and they are robbing these people. Lets get a decent government subsidized program put into place by 2010 for seniors needs. The baby boomers are fast approaching 65 and if you think we have problems now pertaining to our seniors, by the time you and I reach 65 we'll be living in cardboard lentos in the river valley or city parks. Thank you. [Information Removed]
RRE2159 The Royalty structure was put into place to get investment going in Alberta and it worked. The government is getting enough money from royalties now and they should be the ones curbing their spending not the oil and gas companies like is going to happen. It will result in layoffs and slow down. Do you people remember the 80's and Pierre Trudeau? I guess we will be talking in the near future about Ed Stelmack the same way.
RRE2160 I voted everytime to support Ralph Klein - since Stelmack has come into power it is very apparent that he does not support seniors in Alberta or does not consider that Edmonton is as important as Calgary and other communities in Alberta. If he every tried to get down Gateway or Calgary Trail at rush hour he would know why Edmonton needs to receive at least the same as other communities. He should try a live near this location. I will be keeping a close watch on his points of view prior to any election - and I can tell him that at present he will not or anyone running for the conservative party in my riding will not be receiving any votes from this household. I have never voted Liberal in provinical elections - but I am considering doing so in the next election Thank You [Information Removed] I was very proud to say that I was from Alberta and had no difficulty supporting Klein when he cut back to get Alberta out of debt - it was about time that government starting running the province more like a household where you only spend and purchase things that you can afford.
RRE2161 I agree that there is room to increase royalties paid by oil and gas companies, but implementing the report, as is; is ridiculous. 1. why would you suddenly take away the ability for oilsands projects that have been started to recoup their capital investment before paying royalties. they had started these projects under the present set of guidelines and economics and should be able to carry on these projects under the present royalty scheme. Any changes to royalties should only apply to new projects. That just makes sense, what is proposed is comparable to my leasing a car and having an agreement with the dealership and then having them call me weeks later telling me they have changed the lease and are charging me more money. 2. The review with respect to gas prices is based on $3 gas. that is ridiculous. use a more reasonable number - how about an average of the last year, two years, or a reasonable figure that sint based on the price of gas as it is today. Thanks, I look forward to the next election; it will be fun.
RRE2162 Although there is much hype surrounding the oil and gas industry and the enormous profits they "greedily" collect, my family is entirely dependant on the same industry. If the recommendations in the report are implemented as is it would be catastrophic to our personal situation. We implore the decision makers to recognize the implications are much broader than simply collecting larger royalties. The Industry creates a substantial "sub-economy" which has allowed companies, communities and individuals alike to enjoy this "boom" and to tamper with that would have an enormous detrimental effect. It should not go unnoticed that the majority of drillers have been scaling back their capital spending programs due to current natural gas pricing; to further tax this resource would result in a huge reduction in drilling which starts the domino effect of job losses and reduced spending in our province. While there may be room to increase royalty rates it must be on a much smaller scale and perhaps phased in over the long term. Please listen to the Industry leaders and heed their message. Recognize that the overriding message is not about profiteering but about running a sound and economical business, regardless of which industry is involved. This is not only our personal livelihood but my children's future we are dealing with and that I take very seriously.
RRE2163 I am not aware of enough factual information for the common person to make a judgement on wether or not Alberta is getting their fair share of O&G royalties. I would suggest though that renegging on past agreements, made in good faith, is not how a province should conduct business. This whole exercise is about gettting value from Alberta's resources for the citizens. So why are we only looking at royalties? The province issues tens of thousands of dispositions a year to O&G and others. For $50.00 a pop. As far as I can tell this rate has never changed since instutuited. Why not charge $2,000.disposition. Other provinces charge substantially more than we do. What about when someone gets a lease. A person/company can get a lease (some containing thousands of hectares) and they pay less on an annual basis than the average Albertan pays monthly for a basemnt suite. I believe some of the uproar over O&G royalities stems from the environmental impact of these activities. Yet the province has in place a system by which if a company (any type of industry or individuals) has a negative impact or does not follow conditions, they get a slap on the wrist. It takes several infractions by an individual company before the province even considers a substantial fine. In the meantime companies do what they want. Why do we allow O&G companies who have a dry hole sit on the site until they choose to reclaim it? Could we not put a condition that says all dry holes have to be reclaimed within one year? I know of several sites that would benefit from a process such as this. What about mining. In my area the province (taypayer) is paying for the cleanup of Smokey River coals due to a lack of reclamation bonds large enough to do the job. We have another mine sitting suspended with no reclamation, while 2 others do reclamation as they see fit. What about giving leases to individuals and then having them buy them and flip them so that they become instant millionaires. How does the average Albertan benefit from that? The province is open for business and we will deal with the impacts later probably at the expense of the taypayer at a time when we have no O&G revenue. So lets not concentrateon O&G royalties. I have only mentioned a few instances where the citizens of Alberta are not getting a fair share. Lets do a thorough review of how we conduct business in this province and ensure that we are gettng our fair share in all instances and that policies, regulations, legislation is up to date. We have large dinosaur deposits in Alberta, let's ensure our government isn't one of them. I would welcome a response.
RRE2164 Mr Premier Ed Stelmach,Dear Sir, I have been living in Alberta for the past18 years,I am married with two children -one in university and one in elementary school. We are ordinary people,both working and raising our family.We are very concerned about the plans of rising the royalities for oil companies as it could kill or greatly slow Alberta's economy.We would like to have OUR JOBS SAFE!! We are not jealous of oil companies making money! Thanks to them we have GOOD JOBS! The review says Albretans could have additional two billions dollars if we increase royalties but they do not say we could lose ten billion and have many fammilies suffer!! We want good economy and safe jobs to support our family!! PLEASE DO NOT PLAY WITH THAT! PLEASE DO NOT CHANGE ROYALTIES FEES!Thank You.
RRE2165 I would like to voice my support for a decision on the Royalty Review that will benefit "All Albertans", part of slogan very prominent in the Premiers campaign. We all know when it comes to the very large dollars at stake the energy industry will pull our all the stops and paint a very bleak picture. The facts as pointed out in the review are that the energy industry will continue to thrive in alberta. Anyone who has any connections with the industry or has investments knows the profits being realized. Take a look up to northeast Alberta. You must know of the unbridaled expansion going on. One might reconsider the level of Royalties albertans recieve for this non-renewable resource as the Value of this resource goes up. Think very carefully. When the last rate structure was composed the experts then did not forsee the prices levels for oil we have today. It is most probable that the prices levels in the future will be far above the experts of todays predictions. The level of environmental damage is also unheard of. One must just look closely. Ed, this decision will have an impact far into the future. I hope when history looks back upon your tenure in office it shows a man of strength, integrity and forsight who was looking out for the welfare of "All ALBERTANS" now , in your grandsons generation, and beyond.
RRE2166 Let us not kill the Golden Goose. If it works don't fix it. Gas prices are down and Finding and Developing costs are up. Changing royalties makes it very difficult for long term committment that is required for oil sand development. We have very little cheap conventional oil in Alberta and need the oil sands for future growth. I was here for the NEP and remember the bad years lets try to have some good years for a change.
RRE2167 To, Premier Ed Stelmach, Who probably will never get to see these words. My instincts telI Me that You are a Gentle and Kind, yet Strong Man, I wish You success. I am glad that I am not in Your shoes, but I try to put Myself there to see how hard these critical decisions are. Here comes my bull in a china shop observations. It would seem to me that the OIL Companies are somewhat Greedy. ( what big buisnesses are not) I could put a pretty long list here but I do not want writer's cramp and let's stay with the issue at hand. These companies invest billions of dollars in to our economy and they want grand rewards, True? In short but crude form, a Dog knows better than to bite the hand that feeds it. If these companies choose to pick up and leave Ab., as You know will not be the 1st time, but it may be the last. Oil shortage, my butt ! If You follow these layed out tax guide lines, GOD HELP US ! , because in time, Oil and Gas will go as the way of coal and eventually the Dodo Bird. Please do not let Us down and be Greedy like other Big Buisness. There is I believe, some (humbley) Wisdom in these crude words. Sincerely, [Information Removed]
RRE2168 There certainly is a lot of emotion surrounding the recent royalty review report. In my opinion, there are a few major flaws, both in the report and the way it has been communicated to the people. As has been commented on in numerous letters/articles/interviews already, the cost bases are historical and not at all representative of the current market or the likely trend for the future. We have all seen the cost escalation in general life, but services in the O&G industry have gone up considerably more... so much so that it drastically distorts the profitability picture of our projects. Another major "omission" is the profits that are sitting in the pockets of all those investors... excuse me but with Alberta being both entrepreneurial and well educated I would venture to believe that many of those investors are actually Albertans so how are they not receiving the benefits from O&G profits... not to mention the higher corporate taxes those companies are paying to the government. If the public were educated on the economics of projects, the upfront risks, the losses incurred during the learning phases that preceed these "windfall" successes and how the rates of return compare to projects around the world (O&G and other), then Albertans might begin to see that they are not really losing out much. Yes, everyone can agree that there should be negotiations on amending the royalty regime to meet current market conditions (grandfathering Suncor and Syncrude does not make sense as their original environment was considerably different than they are now enjoying) but it should be a collaborative effort and staged so that projects, and investors, can adjust their processes to account for any royalty changes. Let's keep people well educated in all aspects rather than only communicate messages to serve certain agendas. We'll be better off for it in the long run. Let's keep that Alberta advantage and not be naive that radical changes won't impact our well-being.
RRE2169 Mr. Premier, I was born and raised in Alberta - [Information Removed] now however, building a house in Calgary (my home town) and plan on moving back as of June 2008. I have a wife and two children - my daughter is 6 and my son is 3. Why do I share this information? Well, regarding your potential plans to charge Royalties to the Oil and Gas sectors in Alberta. All I can say is this - it's a BAD business move and I plead with you NOT to do it. The trickle down affect it will have on the economy, as a whole will push Alberta into a recession. Not only will it affect jobs in the Oil and Gas sectors - it will affect the service industries - tourism and foreign investment. (Foreign investors will not invest in Alberta if they see an unstable economy due to bad business decisions from its government). Why do I say these things - because, it's a fact and I care. Why do I care? I care because I am an Albertan by heart and should you implement these royalties - it will affect my move to Calgary and I won't be able to do business in Alberta and most likely have to sell my new home. In addition, you mentioned within your report that Albertans have a right to the Royalties - well frankly, that sounds more NDP that Conservative if I may say. No one is entitled to anything - an individual must work hard and make things happen for themselves. There are no free handouts in the real world. The Oil and Gas companies do make a lot of money - but you must consider what they contribute to society as a whole. They contribute jobs - they contribute life style - they contribute to the local economy just like any business. And just like any business - why should that business share its profits with individuals who are strangers. It's no different if I ran a grocery store and the government dictated that for now on I share 20% of my profits with the rest of the community - why would I do something so foolish. It would put me out of business and I would move out of the province and build shop somewhere else. Mr. Premier - you have to run the province like a business. Think about strategic decisions - think about accountability - think about making Alberta competitive in our current business landscape. It's never been proven in any society whether North America or oversees - that the more your tax it's people and or it's businesses - the better off everyone will be. In true economics, it just does not work. I hate to compare you to someone but I must. When Mr. Klein ran the province he ran it like a business and he made sure that he would never go down the road you are thinking of trespassing on. Really think about what you are implying and think about the long-term affects this will have on Alberta and Albertans. Don't do it Ed - I beg you don't do it for the sake of our future and the sake of those Oil and Gas companies. Believe me they will leave and take their profits elsewhere and leave thousands of people jobless. One more thing - are you sure you are not receiving pressure from Harper's office to retain these monies in order to finance the War effort in Afghanistan? I hope not! Ed - call me if you want to discuss this further and I hope I have made in impression. Sincerely, [Information Removed]
RRE2170 Please do not destroy our livelihoods by implementing the suggested changes contained in the new Royalty Review. I think the data was flawed and does not truly reflect the costs involved in recovery of oil and gas today! We do not want the Alberta Gov't royalty review to have the same devasting effect as the NEP had on our lives!!!!
RRE2171 I really felt I had to respond to you personally as I feel as an individual I needed to speak out. I have been around for the O&G industry and its boom and bust years. I take great offence to the report that I know will ultimately have a negative affect in Alberta and Canada. Considering I have been in the Oil and gas industry for over 25 years and remember what the “bust” felt like in the late 70’s, I disagree with the panel’s view. The analysis in the report is flawed Ø 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. I remember large layoffs with trickle effects: suicide, domestic violence, drug and alcohol abuse, strains on social services and EI, small communities with service companies who rely on the industry to hire them going into bankruptcy, loss of homes, destruction of families, non profits who were no longer getting Industry funding so they had to close their doors, and so on….. Global opportunities will allow O&G companies to take business elsewhere, so the only ones who will ultimately suffer are the people of Alberta and in fact all of Canada. The talk of record returns always seem to forget to talk about company’s record investment of capital dollars into Alberta and it is the company’s money put at risk not the government. I believe every company no mater what industry has a right to a proper return on their investment? Do you know the percent of return of investment O & G companies get? Other industries make far greater percentage on their returns but that doesn’t seem to be an issue. I think there are ways to be fair without crushing Alberta’s economy. I cannot in good conscience support a government who would crush the Alberta economy.
RRE2172 I wuold like to congratulate the premier onthe royalty report and I hope he acts on it.Resources belong to Canadians not oil companys.Itwould be a great thing you are doing for Canada. James Hamar
RRE2173 Dear Mr. Preimer In my opinion the Alberta economy is better off with the current royalty regime than the one proposed. I believe that the overall tax dollars the government takes in under the current system far exceeds the $2B in extra royalty payments it would collect. Slow the industry down and watch your short fall in tax dollars grow. Already they are predicting a decrease in oilsands activity of $27B and EnCana has said it will look elsewhere for up to $1B of its investment dollars. To fall back on the statement that we have the largest reserves and where else would they go, is very short sighted. You would kill the Alberta advantage. If the report had identified hundreds of billions of dollars in missed revenues, then I would say we were being short changed. But $2B is small change when compared to the impact of a slowed down industry. Change the system and kill the goose that laid the golden egg and watch not only your government being thrown out but watch our economy slow right down. The industry creates jobs that are far reaching across Canada so decisions you make will affect everyone not just Albertans. I voted for a Conservative Government and if I want tax grabs and anti-industry rhetoric I would vote Liberal or NDP. I am not happy with what I am seeing out of Edmonton these days. Now you are calling for calm in wake of the report. Well what did you expect from the results, everyone to be happy? The oilsands stocks took a hit and people are worried about their jobs. Alberta used to be a place friendly for business to invest and people do not like uncertianity, especially investors. Wake up Mr Preimer, the province is driven by the oil industry and by the large cities so your government better start realizing that. I am sure you could find $2B in government waste and inefficiencies to make up the difference so LEAVE THE SYSTEM ALONE! Sincerely [Information Removed]
RRE2174 To who ever it may concern, my name is [Information Removed], and I live in Brooks. The reason Im writing you, is to let you know that if the royality review goes ahead with its plans, Then I risk along with all the other men, and women that rely on the oil, and gas industry, losing our income,because oil companies say they will slowdown even more, or completely shutdown. I have a family to support, and if I lose my income then I would not be able to support my family here in Alberta. It is expensive enough to live in Brook. All I ask is that you really look into this, and that you'll take care of your Albertan's, so we can continue to work here.Im just a small voice I thankyou for you time.
RRE2175 Increasing royalties as proposed by the Review Panel is abruptly bad for Alberta. Increasing royalties on oil >$80.00 and gas >$13.00 would be a good comprimise. Timing is terrible on gas side. Don't kill the goose that lays the golden egg.
RRE2176 I'm not sure how costing Albertan's their jobs can be looking out for us. How hard is it for people to understand that the impact to the Oil companies will effect more than just the companies themselves. The loss of jobs will cause less spending. I personally have purchased a new pick-up truck for work recently which I most certainly would not have done knowing that in 2008 I may not be working at all. As a matter of fact I will be spending less money in every area possible. I am sure that this action will be replicated by every person working in the Southern Alberta area in the Shallow Gas Industry. How will that be for the Provincial economy. Personally, you can keep the royalty cheques for myself and all of my five family members - I WOULD LIKE TO KEEP MY JOB INSTEAD!
RRE2177 I am an engineer working for a major [Information Removed] company in Calgary for the last 20 some years. One of my responsibilities is to provide technical and economic analysis of drilling opportunities in western Canada. After reading the Royalty Review recommendations I am fearing of losing my job should the government implement a broad base royalty increase as recommended in the report. Most people in the industry know that Alberta is a mature petroleum basin and cost of finding and developing these resources are very high compared to other countries that was included in the report for comparing of government takes. The economics of finding and developing gas in western Canada is especially challenging with a full cycle cost of over $5.0 per mcf. At the current gas price, majority of these new drilling opportunities (tight gas, CBM, shale gas etc) has becoming extremely marginal at best. Bear in mind that these represent the bulk for Western Canada future gas production and revenue. If the government adopt the gas royalty increase as proposed, I am certain that over 90% of these new resources will not be explored and developed. Therefore royalty payable would be greatly reduced in the coming years and many jobs in Alberta, as well as other part of the country would be lost. Also, most of the junior oil and gas companies in Alberta are gas producers. Recent study conducted by [Information Removed]shows that the "finding and development" cost of gas amongst these companies range from a low of ~$5 per mcf to a high of $10 to $15 per mcf. At a current gas price of $5 to $6, all they need is an increase in royalty to put them out of business. On the oil sand side, there might be some room for adjustments but not to the extent as recommended by the panel. Note that using WTI price to peg the new additional royalty (severance?) is wrong because tar sand oil is subject to heavy discount (as high as $30 to $40 per barrel). Capitals for developing oil sand projects are extremely high and the numbers used by the panel in their report is obviously misleading. I sincerely hope that the government of Alberta reviewing all data, both from the panel report abs well as industry reports and make a decision that is good for all Albertan. [Information Removed]
RRE2178 I am not convinced given the recent review by the Auditor General and his criticism of the government's royalty approach that a full scale impartial investigation can be completed by mid-Ocotber as promised by the Premier. Alberta's royalty system is one of the most complex in the world and the royalty approach as well as the regulatory environment have been lauded around the world. This is not a policy that the average Albertan should be questioned on as it is a complex, technical matter that requires the competencies of many- to say nothing about the overall goals and objectives of the tax regieme. Therfore, we need to stop and take a breath and review in detail what is best for Albertans as well as private sector. Of course every Albertan is going to say we want more money from Big Oil. There are other ways to have Big Oil pay up- have them take responsibility for some of the needed infrasturcture and social programs needed in Fort McMurray and other areas of the province. Maybe this could be in another form of Private-public partnerships which the government has been advocating for schools and others services. Big-oil, small oil and the services of each stimulate the whole of the Alberta economy. I am not against allowing for a strong investment climate.
RRE2179 It seems to me that the data presented in the royalty report had major flaws and did not take into account current economics or risks. The "panel of experts" turned out to be misguided. Yur choice is to stand up as leaders and do the right thing or follow the press and lose the "Alberta" advantage.
RRE2180 Royalty review final report, what a joke. If this proposal gets voted in, the Alberta government will be condemning the oil and gas industry in this province for many years to come. The simple fact is that we will see a huge decrease in drilling and with that a huge decrease in REVENUE.
RRE2181 I believe all understand the need to keep our economy thriving as well as balance the needs of our environment. The need to increase royalties is fair but I do not feel that the government has done its "due diligence". If the royality plan is truly fair, I believe industry will be open. I do not believe it is fair and would hate to see this turn into another National Energy Program nightmare. As with any policy, industry will adapt and if the government is wrong, the impact will be truly negative as in the 80's. You can tax them all you like but if they move their investment outside of Alberta, we still loose. It takes a long time for them to come back. No grandfathering sounds absolutely insane. If you have invested based upon a certain formula and then are told that it is changed, I would be very angry.
RRE2182 Raising the royalty is necessary to stabilize the overgrowth of Alberta economy but at the same time, overraising the rate can hinder its gradual substainability. 20 percent is a bit too excessive, try and make a reasonable deal.
RRE2183 I think the royalty review report is misleading, and if it is passed it will have a negative effect on the Alberta economy, and could and would stall or delay several major oilsand and other oil and gas projects that are scheduled for development in Alberta. This will impact the economy in a negative way, will have an impact on housing prices in Fort McMurray which is where I live, and if economy suffers and the price of our houses drop, particularly when people have moved and invested life savings in their homes, you will then see a huge drop in your voters. You would certainly see a change in gov't if this royalty recommendation if the economy drops to the extent that it did in the 80s, and people hand over their homes to the banks and go back to a 20% unemployment rate. These oil companies aren't threatening they are promising they will invest less in Alberta, and we will also see a decline in international investors. Huge error!! Albertans wake up - any 1st year economics students can do the math and see that we will as a province get less if there is less revenue to draw from....its time for people to see the big picture!!!
RRE2184 As a direct employee within the oil and gas sector, I hope the government - my MLA takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations will be far reaching and impact Alberta in many negative ways not in the least major job losses. The infrastructure that has been developed to support this sector will be decimated as we all know all have paid premium prices to live in Alberta.
RRE2185 As an employee of an Oil Sands Company I feel that the government has not looked closely at the impact this royalty recommendation will have on our industry. I think the Government and the Oil Companies should review the information together before moving forward with the implementation phase of the recommendation.
RRE2186 Dear Premier Stelmach: We are impressed with the care and attention to the problem of oil royalties given by the Alberta Royalty Review Panel in its final report "Our Fair Share". We urge you to implement a more favourable royalty rate structure to benefit all Albertans. The enormous profits the oil companies report should be a clue that a higher royalty rate is both feasible and justified. The [Information Removed]has released a study stating that a reasonalble share for companies would be about 30% of net revenues (they currently receive 53%). With this model, albertans would receive around 60% of net profits, a much more reasonable rate of return for Albertans, the owners of the resource, while the Government of Canada would receive the remainder. We feel that this should be done by raising royalty rates for the tar sands industry from 25% (post-payout) to 40%. In addition, we encourage the government to implement a tax of $40 per tonne of greenhouse gas emissions released from the beginning of any new projects, as well as on current projects. Perhaps it is time for the Government of Alberta, on behalf of its citizens, to seriously consider going into the oil business on a limited trial basis, to permit it to acquire both profits and royalties on behalf of us all. We further urge you to set in motion whatever rulings are necessary to permit us to recoup our lost royalties. It is simply a scandalous situation that cannot be allowed to rest. We wish you success in your endeavours. We appreciate that you have to deal with strong forces, but we urge you to act on behalf of all of us to remedy the existing situation. Sincerely, [Information Removed]Edmonton, Alberta
RRE2187 I understand the importance of wanting to sustain oil production in this province, however I do feel it necessary to increase oil royalties. I often feel that this government puts the concerns of industry before those of the citizens of Alberta. By increasing oil royalties it would demonstrate that this government is not afraid to stand up to the oil industry and puts its citizens first. I realize the importance of oil to our economy; however this is, afterall, the peoples' province and not "big oil's". Why should we allow oil companies to get a free ride while many citizens are struggling to pay the rent despite the economic boom.
RRE2188 Dear Premier Stelmach, I am an Albertan that has lived and worked in Alberta all my life, not in the oil and gas industry. But I am aware of the money that is generated from it and also aware of what will happen if this review goes through as is, we will be kown as the province that could have had it all. there may very well be some increases that should be made but not the kind that are suggested in the report. I trust you will be very carefull with what happens next and not be swayed by some people that can not stand to see others do well. Do not forget the money that these oil companys invest in order to get the returns. If you do implement the review as is you and your govenment will lose my vote. Respectfully [Information Removed] Lethbridge ,Alberta
RRE2189 Two points to consider 1) If companies (in the oil sands) were aware of this "Fair Share" emphasis, most of these projects would never have been built. This will be a minefield of lawsuits etc. if grandfathering is denied. This will tie gov'ts hands in the future as no one will committ the capital required without significant guarentees and incentives. 2) If heavy taxation of the oilsands is a must (for your government) then why not provide heavy incentives to build bitumen upgraders in Alberta that will provide quality jobs for Albertans (and taxes) for years to come.
RRE2190 I believe the government should get on rapidly with a better very higher rate royalty program. Royalties should reflect the fair total payment to Albertans for the oil removed from their lands and be done in a totally accountable open to the public scrutiny system.
RRE2191 I do not agree with the panel’s recommendations and feel that by instituting them the AB government will help to push the AB economy into a recession. All of Albertans benefit from the oil companies making money in AB, our wages are higher, our houses are worth more, I don't think most Albertans would say that the oil industry is taking away from Albertans if anything they are giving us a better way of life. Raising royalties 15% is crazy, sure maybe they should be raised somewhat but lets not go and scare the whole industry. I owe stocks in many of the oil companies in the oil sands and the fact that they dropped an average of $5 is unacceptable and the lack of concern from this gov't is unacceptable. The AB gov't should make us feel like they are not going to hurt our economy and that they are interested in maintaining the wealth that has been garnered by this province due to the fact that oil companies are in AB. This report has a very liberal; and nationalist feel to it and as a long time conservative supporter I will be very disappointed if they put an end to our booming economy and to be honest this would make me vote liberal in the next election. Thanks
RRE2192 this proposed royalty hike comes at a very poor time, natural gas$$$ down rig activity way down if this path is continued there will be alot of empty buildings around G .P ,AND costs of living are going down up here witch is dependent on natural gas. all this happening on your watch!!if it is not broken WHY?? are you fixin,it??,A worried home owner thx.
RRE2193 Don't you collect enough taxes? I don't recall voting for farmer Ed, perhaps there should be an election or other form of democracy here before we have a socialist running Alberta.
RRE2194 It is my sincere opinion that the Task Force, no matter their earnest intent, have missed the real problem. It is the Auditor General's comments that should be heeded -- in that way the province recoups the extra funds and the accountability of both government bureaucrats and the oil and gas sector can be made to be more accountable. There have been some very convoluted financial reports, over the years, that make it difficult to assess the appropriate royalty -- please have all the companies report honestly. We need to ensure that it is a "win-win" situation for both parties. [Information Removed]
RRE2195 As [Information Removed], I urge the Alberta Government to reconsider any changes in Alberta Royalties at this time. There is a long list of Industry related statistics that indicate there could hardly be a worse time to consider, let alone implement, any additional changes to further hamper an Industry already being restricted by low natural gas prices in relation to high finding, development and operating costs. These include, but are not limited to severe decreases in exploration and development capital budgets, decreases in total Alberta Crown land sale bonuses and average price paid per hectare, decreases in active drilling and service rigs, decreases in active seismic crews, all as a result of current natural gas prices which drive activity in the Western Canadian Sedimentary Basin, now a natural gas and oil sands driven basin. There have already been substantial layoffs in the service side of the sector, and will undoubtedly be more, due to low gas prices and reduced drilling budgets. This will recover as gas prices increase again, however, the last thing needed is further reductions in capital budgets and jobs due to increased royalties. Additional negative impact by increasing royalties will only further increase the above referenced negative statistics. The long term impact of such an ill conceived program could be catastrophic to the economy of Alberta for many years to come. I urge you to consider the comments and recommendations not to increase royalties that have been tabled by numerous financial institutions, which as of this morning now includes Wall Street... these are not un-intelligent people and know about which they speak. It's very simple, the pie will shrink and the end result will be less royalties and Crown land sale bonus dollars than Alberta receives today. The corresponding spin off effect and downturn to "ALL" of Alberta, which does in fact entirely depend on the oil and gas sector to drive the economy, will be severe and widespread. Does this government not remember the effects of the NEP on this province in the early to mid 1980's and how many people were hurt and how long it took to recover? Many hard working Albertans never did. Sincerely [Information Removed]... a native Albertan born 57 years ago, raised and still living in what has been until now the greatest Province in Canada. I urge you not to destroy it.
RRE2196 From my point, the new royalty rate is a disaster for the oil sands industry which has the highest capital costs in the world. I believe the rate should be reviewed, but never should be reached at this level. the new rates will drive thousands of workforce out of Alberta. and also it will make me to change my opinion in the coming election.
RRE2197 One ridiculous oversight in the report. The Alberta Gov't receives a royalty for natural gas and oil production. The report is changed with examining these rates and that is fine. The reduced royalty for oilsand production is fine since is is a lrarge resource that needed to be developed over the last forty years or so. That is also fine. The concept of reducing royaties in order to promote certain activities is a sound gov't strategy. The one thing that I find that is ridiculous is the royalty for carbon dioxide production is set at zero. I can't believe that this report is using this reduced royalty to promote carbon dioxide production. It must just be a simple oversight that needs to be corrected. But its a ridiculous oversight.
RRE2198 I am a long term conservative both federally and provincially. I am a card carrying conservative provincially. I came from Ontario 30 years ago and now feel more Albertan than Canadian. I am very proud of Alberta and am a contributing citizen of the province. I have worked in the oil and gas sector for 30 years as a geophysicist. I am now an independent consultant to various small oil & gas companies that work in the conventional areas of the Alberta basin. I work for myself and do ok at it. The ability to be an entrepreneur in Alberta is what makes us different than the rest of Canada. I worry that we will lose this as we grow. I understand that the oil sands need to be cooled down and I would be ok with seeing increased royalties to new oilsands projects. I have serious concerns that the while cooling the oilsands development, the Alberta government will destroy the struggling conventional oil & gas sector in Alberta without even realizing it. The conventional oil & gas sector is still reeling from the royalty trust legislation changes last fall. Most small oil & gas companies are fighting to survive. If you slam the conventional oil and gas sector again with increases to royalties, it will be a significant blow to this fragile industry. Stock charts of virtually any small to mid-sized company shows that while oil prices are high, companies have difficulty creating value. The entrepreneurs that make Alberta special are fighting to survive a high cost structure and ever smaller rewards as our pools get smaller and smaller. The basin that we are exploring is tired and worn out. Pools are difficult to find. I know this as my job is as an explorer. Compare us to other areas if you wish, but the proof is in the performance of companies. If it was a gravy train out there the stock charts would show it. They don’t. If the Alberta government destroys the conventional oil and gas sector with increased royalties I for one will be very upset. I suspect I am not alone. If you wish to discuss please feel free to call me at [Information Removed]
RRE2199 Before I make any comments I have to state that I have finiancial interests in the energy sector. Secondly I am employed in the energy sector. That being said....Please raise the oil and gas royalties, I do not think it is going to have any long-term negative repercussions on the energy sector or economy in Alberta...and put the extra funds raised into the Heritage trust fund [Information Removed] Edmonton, Alberta
RRE2200 I just wanted to contact my MLA, I live at [Information Removed] , Calgary I happen to work in the oil & gas industry and I am concerned with the Royalty Review. Fortunately because I work in this industry, we as employees are given all the facts to this issue. Unlike the general public who is only getting the facts from the media. It is very disturbing to find out that the figures used to determine the committee's anyalysis is from 2005. This is not a true reflection of todays market. I believe that if these suggestions are taken the economy of Alberta will decline significantly. I believe that a balance is needed between the oil companies and the government for true enconomy. I feel that Alberta has a huge surplus of funds already and is doing a poor job with this money. Living in Calgary over the past 20 years I have seen a lot of change and I can honestly say that the last few years have not been pleasant to live or watch. I am now afraid to walk the streets at night or early morning even with my dog. Our young people have to be careful that they don't get into an argument as a knife could be pulled. I went 3 years with out a family doctor, and have spent many hours in our emergency waiting rooms. Mismanagement of the money we have is so bad, I hate to see what our government will do with extra funds. Learn to manage what we have efficiently and then go on. Yes, there are positive things form the review report that do require attention, but taking more money from companies is not the answer, companies that put so much back into research and development and the general economy of Alberta are worth listening too. I am only 1 person but my voice should count. Please take your responsiblitly to get all the facts before making your decision on this very important subject of Royalites in Alberta. Thank you for your time. [Information Removed]
RRE2201 To whom it may concern, A someone involved in development and evaluation of in situ oil sands projects I can attest to flaws in the panel's royalty review report. I believe the [Information Removed]repsonse is an excellent response to the report and highlights the majority of the major issues. One major issue not addressed is the increasing costs that operators will incur to meet greenhouse gas emissions reduction targets. This makes the oil sands analysis and conclusions of the panel's report even more invalid. It is clear that the report was written with a poltical agenda to sway the common person based on a proposed sense of 'fariness' on an issue that many Albertans simply don't understand. The media further given credence to this flawed report further skewing public perception and escalating this already emotional issue. The release fo the governer generals report this week further fuels the fire. I fear that the provincial government will make a rash decision and based on their on and the publics misinformation to improve short term popularity at the expense of long term prosperity. Needless to say the proof will be in the pudding. Producers who have options will invest in their best returning properties. This is a bigger and more important decision for Alberta. Through out the panel's report and start with a realistic basis for making this decision. Make an effort to have the public (or at least their representatives who will be making this decision) informed with relevant facts and proper analysis instead of having the media convey a flawed analysis appealing to public emotion. Do it right - this is too important to all of us.
RRE2202 -We pay world price for oil & gas. Why not we are charging world oil and gas royalty? Tell us averge rate of royalty in top 10 countries. -Royalty was set when oil was at $10/barrel in 1998.Now it is at $80/Barrel.So you do not need oil companies to wrightoff all expenditure first and 1% royalty should be full royalty. -Why you allow raw bitumen ship outside Alberta and leave all sluge and use lots of water. -You have expert in goverment.Provide all data and decision to back up us.We are owner and govermnet should report to owner of property.
RRE2203 Sir, It is vital that in the case of a non-renewable resource that the citizens of Alberta are fairly compensated through reasonable royalties. It is therefore incumbent upon the Government of Alberta to legislate the recommendations of the recent Royaly Review Report. This issue is critical to the survival of this Province and it's citizens. The revenue received from these royalties must be prudently invested to build a fund which will provide replacement revenue to Albertans once the oil is exhausted. If the Alberta Government employs the model used in Norway, Albertans will enjoy billions of dollars of revenue annually in perpetuity. Please stop frittering away this dividend and build a fund for the future. By converting oil into a legacy fund, the Government will create an "engine" of revenue for all Albertans to enjoy. Whilst the response from the Oil industry must be considered, it must also be seen as an obvious vested interest. A similar reaction would have been seen from Sugar Plantations Owners when the abolition of slavery was proposed. It is obvious that Oil shall remain a scarce and valuable resource and the imposition of fair royalties will promote efficiencies in this industry. Therefore dire predictions of woe should be taken with a generous pinch of salt. Thank you for the opportunity to provide feedback. And thank you for entering what must be an uncomfortable course of action. There will be much resitstance to this action from the vested interest but the Government must "do the right thing" Best regards [Information Removed]
RRE2204 Raise the rates! They are the lowest on the continent. They should be much higher reflecting the stable social and political climate of Alberta. Sure the oil co's are complaing so what... Even if the royalities were 20% higher (where they should be) oil co' would be very profitable and proceeds could be used any number of projects.. Easier acess to higher education, infrastructure, economic diversification, etc...
RRE2205 the review panel is anti-industry, to them, it's better don't do any exxcavation, keep Alberta's property forever!
RRE2206 I completely support the analysis and recommendations of the royalty review report. If anything, the increase in royalties recommended in the report are on the low side. This is coming from someone whose job depends on the health and development activities of the oil sands industry (I am an environmental consultant who helps oil sands clients with their regulatory approvals and environmental management). I am confident that the hydrocarbon sector will continue to fluorish in Alberta if the royalty report recommendations are instituted in policy. Additionally, it will redound to the benefit of all Albertans if the increased royalty revenues are invested in research and innovation development, as well as much needed higher education and infrastructure needs, to ensure that Alberta's future is prosperous far beyond the decline of our hydrocarbon industry. Yours sincerely, [Information Removed]
RRE2207 My background: I have lived in Calgary for 29 years and am an accountant. I am 54, I lost everything including a marriage due to the NEP and finally I have some equity in a home(still a mortgage), and some money put away for retirement. I am interested in Economics Nationally and Globally and am pretty politically savy. Having heard in the press a summary of what they perceived was in the report I was pretty shocked at several things: 1- The reports was issued to the public before a considered evaluation of its impact was done by educated government representatives. 2- The disregard, shown by the early release. of the impact on capital markets, public response(usually based on little infomation, just 30 second sound bites) and the Eastern Canadian attitude to Alberta (rich, redneck, a possible source of even greater funds). It made me shudder. 3- The belief that Albertans were somehow mysteriously being "cheated" of royalties due by an inept system. The government agencies charged with the calculation and collection of Crown and Freehold Royalties are well run, extremely efficient with the funds they are allocated to operate on and monitor closely the Oil Companies in this regard. The reporting of production, costs and royalties is frequent, thorough and well developed with large expenditures in systems to support this by both industry and government. It is a farce to consider that there is money leaking through the system and an insult to the government departments that operate in this process. 4-Various allowances were put in place to encourage high-risk activities (Deep Well) or to make the royalty calculation fair (significantly different Operating Costs at different processing plants). These should still remain. Summary. DO NOT KILL THE GOLDEN GOOSE Royalty rates can be increased a REASONABLE amount without killing investment, and still bring more money to Alberta - perhaps 3-5% increase of the existing rates. DO NOT FORGET ALBERTANS ARE ALSO SHAREHOLDERS, EMPLOYEES, CONTRACTORS AND SUPPLIERS OF THIS INDUSTRY AND WE ALL BENEFIT GREATLY. To change all the calculations accross the board would require a huge investment in IT processing by the government and industry and slow implementation significantly. IF WE ALL LOSE OUR JOBS - THEN GOVERNMENT SPENDING GOES UP (UI, SOCIAL SERVICES) - GOVERNMENT REVENUES GO DOWN....I PAID A LOT OF TAXES LAST YEAR - DO YOU STILL WANT MORE ? OR ARE YOU GOING TO PAY ME WHEN I COME WITH MY BEGGING BOWL ? I AM ALBERTAN - DON'T FIX IT WHEN IT AINT BROKE !
RRE2208 I am very concerned about the proposed changes to the royalty structure. I am part owner in a small junior private oil and gas company exploring in Alberta and Saskatchewan. We are very cautious about where we alocate our drilling money and would no doubt be affected by an increase in royalties. Many of my concerns are being made to the province by other parties, but I would like to add my voice and make two points in particular: 1. Our company would like to explore for gas but the prices are quite low and marginally economic even with the current royalty rates. We target shallow gas locations (less than 1000m depth) with initial production rates of 750 to 1000 Mcf/d. When evaluating a potential prospect we estimate the chance of success based on a number of criteria. We then run a risk analysis to see if it is economic to drill given estimated prices and gas rates over the life of the well. If higher royalties are included in these economics, many wells deemed 'risky' would not go forward simply because a successful well with high gas rates would be penalized right away. This would, I believe, result in fewer higher risk wells being drilled - which is the only way we (Alberta) will be able to maintain healthy drilling levels and therefore gas production into the future. Investment would simply go elsewhere. I would like to suggest that a period (perhaps 2 years) of reduced royalties be applied to new gas wells so companies have an opportunity to recover some of their risked capital while the well is at its peak production rates. 2. A slowdown in industry activity has already started with lower gas prices and escalating costs resulting in the layoffs of many people in the service industries. By increasing the royalies many further reductions are possible in both the service industry as well as in oil companies. I am a geologist in my mid-fifties and in talking with other peers many have stated that if there's no money to be made in the industry then maybe it's time to retire out to the coast or whatever. This is not just idle chat - the only reason many of the province's best entrepeneurs are still active in the industry is because it's exciiting and viable and many are getting fed up. Many already have their second home waiting elsewhere. Any poorly considered change to the royalties that would punish successful companies could result in the permanent loss of an irreplacable resource - experienced people. There is already a large gap in the ages of the earth scientists and engineers as a result of the purges of the '80's and '90's. The industry is already facing a crisis in 10 years or so and this would cause permanent damage to the potential to keep Alberta's oil industry running effectively. Please take the concerns of the oil industry seriously. [Information Removed]
RRE2209 Review Well sites that are controlled Pneumatically first, There is enough natural gas exhausted into the air and Never accounted for....PS The gas exhausted out is enough to heat a city...
RRE2210 As an Albertan, who has lived in Calgary since 1964, there is only one time that I can think of where the doom and gloom forecast was this bad, that was in 1981. Is it now time for our Government to put the province in complete economic shut-down? Do you not realize the implications of such a royalty increase? We as a province have had such a good long run, with surpluses and now we have no debt. Even though the Government public ally states that the Oil Industry is not our only source for our good economy, everything is affected by it. IF this goes ahead as planned we will be in the same sorry state of affairs that our American friends are now living. I understand that there is a poll being taken about this subject. However, one of the first questions is “Is anyone in your family part of the Oil Business". If the response is yes, they are not interested in your "vote". If this is true than it appears that our "Trusted Government" is manipulating its' results.
RRE2211 Dear Mr Stelmac and company, Your recently sponsored commisson on the Alberta royal review is seriously flawed, non more so than in the area of projected enregy prices, and the impact it will have on marginal well economics and on continued investment. Alberta is arguably the richest per captia jusidication in North America, thanks to the strong leadership provided over the last decade by the PC goverment. If implemented, the proposed royality regime will wipe our much of the gains and prosperity enjoyed by Albertans. This sort of tinkering with the prosperity we have all worked hard to develop is totally unacceptable. As you are well aware, you have been placed in a position of leadership by the PC party, elected by the majority of Albertans, including myself and members of my household. You will be well advised not to assume that this support can be taken for granted. In the best interest of Albertans, as well as your own continued electibility, I urge to selve this report and allow the oil and gas industry to continue being the machine that drives Alberta and to a large extent, Canadian econimic well being. Don't [Expletive] around with the goose that lays the golden egg. [Information Removed]
RRE2212 My husband and I moved to Northern Alberta for work, becuase the economy in North Western BC was so poor. This royalty review is threatening both of our jobs, and all we want to do is make an honest living. We have invested alot in coming to Alberta, with purchasing a home and starting a familly. There are a lot of young people in this province that rely on work related to the Oilfield. I know that living expenses are high in Northern Alberta, but they are high anywhere that there is work, that's usually how it works. If this Royal Review is passed, it will economic suicide. Everyone will be impacked whether they work directly or indirectly in the Oilfield. With the empoyment rate in Canada so low, why would the government want to risk more job loss? Where are all of these people going to find work if all of these Oilfield Companies pull out of Alberta?
RRE2213 I do not support the implementation of the recommendations of the Royalty Review Panel. It has been established that the "Our Fair Share" is a flawed document; as the Review Panel did not complete or report all the tasks required of the them as it it is outlined.. 1. How Alberta's royalty system compares to other oil & gas regions taking into account investment economics, industry returns & risks in Alberta. The panel stated "An important aspect of Alberta's Royalty system is how it compares with those in other regions that produce oil & natural gas and that they will be examiing the similarities & differences to help access whether or not Albertans or receiveing a fair share, as owners of the resource and the attractiveness of Alberta as a place for oil & gas companies to invest. The panel then essentially ignored its responsilibity to diliegently complete that term of reference or at least to report its findings. There is no discussion as to why jurisdictions such as Libya or Jordan were selected & felt to be compatiable to Alberta, while Saskatchewan & B.C. were excluded from the entire report. I feel that the jurisdictions were selected soley on the basis of having exceptionally high government take from their petroleum resources. 2. "The panel stated that oil & gas are important to Alberta economy and that if they deem changes are necessary they will need to assess the impacts these changes may have on Alberta's economy & the financial situation of the provinence. The panel did not do its job here as I see nowhere in the "OUr Fair Share" document where the financial impacts to Alberta's economy were addressed. Either this work was not done or it is not being shared with Albertans. This alone should be enough to shelve this report until this work is done and reported openly to Albertans.
RRE2214 I agree with the increase in royalities and believe it is long overdue.As far as "BIG OIL" and their threat to pull out of the province ,great lets pull their lease agreements and negotiate with some serious businesses.
RRE2215 Go figure, if you live long enough you will see it all, on one hand the incompetent Stelmach government is ready to kick Alberta Energy companies where it hurts for Billion of dollars in royalties, yet is free giving Millions of dollars to Quebec companies for technology developments. Alberta universities and schools need technology grants and fast Ed is giving it away to the East??????
RRE2216 In working in the Oil and Gas service sector I believe that the increase in royalties is likely to result in a significant loss of jobs particularly in the Natural Gas sector which is already at the bottom of the business cycle. Captial budgets will be cut significantly. I do recognize that this is posturing by some majors but I believe a 20% increase will certainly result in many job losses (potentially mine included) and will also have a spin - off impact on all other Alberta sectors. I would strongly encourage that the government reduce the increase in royalties and/or not implement the recommendations by the royalty review. Thank you for your consideration...
RRE2217 There are very valuable recommendation in regards to credits for upgraders that are belt in Alberta, however the recommendations in regards to raise the Roaylty went too far. Thank you, [Information Removed]
RRE2218 I believe we should adopt the reports reccomendations. The oil companies are taking far too much out of this province. Look at Norway, they are taking far more in royalties than we are, and it appears that none of the companies are leaving because of the royalty structure. We can't bow to the threats of the threats of the oil industry that they might take dollars to invest elsewhere.
RRE2219 Though I’m hopeful and confident the Tories will do the right thing, I wanted to go on record and state that I will certainly NOT vote to keep a government that puts the panel’s royalty recommendations into effect as-is. The report is fundamentally flawed and the economic impact would clearly be devastating. 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. The credibility and analysis of the report recommendations requires significant review. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal.
RRE2220 Gentlemen: My big concern Is how much "more" is or has been going on in avoiding and Evading tax. The recent [Information Removed] case should come into focus: 1. How much inside collusion could exist between the companies and the Royalties group - go ahead - we didn't see anything. 2. Is there any collusion between those in industry and those working these "Royalty" jobs? Keep the same old regulations and your payout comes later? 3. If too much complaining about Royalty hikes, some good forensic accountants should be assigned to reviewing this entire matter. * [Information Removed] case - Tax Department lowers tax by having insider pay off the assessor. Let the tax payer and Eddie pay. If Eddie hits us with royalties, we lay off people and Eddie is no longer popular. [Information Removed]privitized in 1994 and are "free" to meet and set their own agenda? I would really be checking with [Information Removed]the why, who, what, why and where of all those employed within these Departments and their connections with the energy companies. There is potentially something perhaps bigger than having to dupe the dopes. The experts are now on the stump - for now, anyway.
RRE2221 I am not in favour of an increase in oil and gas royalties. There has been a slowdown in drilling over the last couple years due to huge labour cost increases and a stronger Canadian dollar. A lot of the drilling rigs have moved south of the border wher it is more proitable to operate. Service work is continuing, but a warmer climate is creating a shorter season where a lot of this work can be performed. Having lower royalties in Alberta (than other areas) is allowing businesses to continue to operate dispite the higher operating costs. The oil sector creates so much wealth and so many jobs in Alberta. People don't seem to realize that the money doesn't have to go to the government for it to benefit Albertans. Our economy is the envy of the rest of Canada. Why would you try to stifle it now, when It has been successful for so long? [Information Removed],
RRE2222 Modesty, reason, and rationality must prevail. Be prudent and be cautious. Don't hammer the oil companies but do increase royalties MODESTLY.
RRE2223 I have lived in Alberta my whole life and lived through the NEP that seriously impacted the oil and gas industry in Alberta. I am very concerned that bringing in the royalty report the way it was presented would have a devistating effect on all of Alberta. I think that there is room to increase royalties, but not without taking into consideration the price of natural gas and the increased cost of exploration and operation that has taken place in Alberta over the last couple of years. I think you need to understand the impact that this will have on the whole province, as this industry impacts everything. Over the last couple of years the industry has had higher profits, but the people who work for them has benefited in increased salary and bonuses. This has benefited all of Alberta in consumer spending. It will all go away very quickly when the industry slows down to a crawl. I know that people have already been laid off from service companies because the industry was already starting to slow due to increasing costs. Please consider the economic conditions that exist today, and try a comprimise, where Alberta will see oil and gas continuing to add to our economy, but the government will get more revenue from royalties.
RRE2224 I believe that the government should raise the royalties on heavy, and possibly conventional oil, but decrease the royalties on natural gas in Alberta. Over 70% of the wells drilled in this province are for natural gas and the price is currently low. If we increase the gas royalties, drilling which has decreased 35% from last year will decrease further and have a major negative impact on our economy. Remember the NEP and the effect it had on our province.
RRE2225 Failure to implement the full report is nothing short of a sell out to the oil companies. If Danny Williams in NFLD can pull it off, I expect nothing less from the leaders of Alberta. This is it ... either the Conservatives do what is clearly the right thing ... or they get written off as totally useless.
RRE2226 It appears that the Review has already been discredited by many observers. Seems that the "Alberta Avantage" is to go out the window if the report is accepted ....which, presumably,a sensible government would not tolerate.. Makes me wonder how the panelists were selected and provides yet another reason to question the capabilities of Mr. Stelmach. [Information Removed]
RRE2227 It is about time there has been a royalty review. I beleive there should be a sliding royalty scale (as the oil price goes up and down). The new royaly rate should scale up to at least $150 pre barrel of oil.
RRE2228 Whilst appreciating that many problems have been caused by the lack of planning and action by the previous government, do not rush to make changes for political expediency.Most of us, including myself do not have sufficient understanding to comment on this complicated issue
RRE2229 I am concerned that the increased royalties recommended by the report will cause reduced development of Alberta's resources, so that the increased royalties to be received will not be realized. It seems to me that oil sands development is extremely expensive with a long time before investment is recovered, so I'm concerned that in a short-sighted effort to get more money from the developers that Alberta's long-term royalty revenue will decline. Also, I am skeptical that I will see any benefit from my increased "fair share" should increased royalties happen as the report contemplates, since the government continues to operate with significant surpluses without significant return of these surpluses to individual tax payers (either through rebate cheques or reduced tax rates). I am aware of the need for increased infrastructure spending, increasing healthcare costs, etc., but if the premise of the royalty review is to give Albertans their "fair share" of resource revenues, then I think a portion of these royalties should be returned to Albertans so they can choose how to use these funds rather than government deciding.
RRE2230 I am the president of a small oil company and if this report is accepted we will cease to do business in Alberta. There has been a competition creep happening against Alberta for several years(10) which has led to my concerns about doing business here prior to the panel report. The report is uniinformed and does not follow the mandate it was given in also figuring out the return on investment for those of us doing business here. Alberta has been my home since [Information Removed] and I did do my time thu the rough portion of the NEP but wanted to stay. This report makes me want to leave. Use some common sense and throw this report out. [Information Removed]
RRE2231 Dear Ed. I would strongly urge you to impliment the proposed royalty reveiw as is !! please do not water it down or change any of the suggestions to please the Big oil and gas companys,for to long they have been feeding at the trough provided by king Ralph and Murrey Smith mot be bullied by big oil and gas or the Tory old guard,as the people of Alberta are behind you for now, and are watching carfully to see what you will do re.the report. this is your big chance to show your detractors that you are the man to lead this Province into the future. [Information Removed]
RRE2232 Find some middle ground here but there needs to be some change or people will loose confidence in who is running this government.
RRE2233 Dear sir: My thoughts are that you are on the right path to re-view the royalty structure of Aberta.I do believe that the people of alberta are not getting a fair share of what the royalty charges should be.I think that it is unfortunate that the past premier and cabinet did not act to try and get this situation moving. We appreciate that this situation puts the present Provincial gov in a difficult position.I believe that the problem must be resolved in a respondsible maner.I also think that the alberta economy is very overheated and should be slowed down some.Thanks for your attention
RRE2234 Congratulations for being on the cusp of destroying what took Ralph Klein, a truly great politician, well over a decade to build up. The royalty review is based on old, outdated information and should be thrown in the trash. Maybe somebody should have good look at some of your past " experiments " like the ambulance services takeover and what that has done to completely upset a system that was working fine. It is now nearly impossible for rural communities to get qualified medical personel to fill their ambulances due to big cities hiring everyone they can because the bill is now on the government. An increase in royalties will not only lead to less revenue for the province but again stick it to the smaller communities who rely heavily on the oil and gas industry. Thousands of jobs will be lost and tens of thousands of Albertans will be adversly affected by yet another scheme of your government. I have been a strong supporter of the PC Government for over 25 years but I seriously beleive it is time to look for a change and find a party that has the ability to make decisions based what is best for the province as a whole and not just the major centers or in what seems to be your governments skewed sense of " OUR FAIR SHARE ". I will admit there will be some increases as a result of this: Increased unemployment, Increased crime, Increased bankruptcy claims, Increased mortgage foreclosures, Increased energy costs due to a declining available resources when companies stop exploiting gas reserves and Increased government resentment for yet another boondoggle of epic proportions. You would think a good government would learn from things like the National Energy Program that nearly destroyed our economy once, or, is that your underlying goal?
RRE2235 Has Mr Stelmach really thought this out? The number of people and jobs that this would affect would be staggering, in his effort to gain popularity and the common vote he might very possibly be condeming this province to untold hardship. Both my wife and myself work for the same large oil company here in Calgary and our families well being and prosperity depend on our jobs. Whoever is advising Mr Stelmach has clearly not looked at the big Alberta picture. I ask you this, would Ralph have ever proposed something like this? I think not. Do we want another mass recession like we experienced in the early 80's with Trudeau's energy program, I know for a fact I don't and I would hope our current provincial goverenment would not want that as well.
RRE2236 As a direct employee within the oil and gas sector, I hope the government - my MLA - takes the time to consider the facts based on realistic numbers before accepting the recommendations presented. The impact of accepting these recommendations will be far reaching and rather than a province that has, we will be a province that doesn't. The infrastructure that has been developed to support this sector will be decimated - we all know all have paid premium prices to live in Alberta. [Information Removed]
RRE2237 A royalty review is long overdue! Ralphs good buddys in the oil industry have overextended their stay. Its time that Alberta sees the indecent revenues the oil companies have enjoyed for the last 10 or so years in Ralphs regime. I believe that the royalty regime was set somewhere around the time that oil was priced around $12 / barrell? Now that the oil producers are demanding world oil price then so should the alberta royalty be set approprietly. 1% royalty from the oil sands is a insult to alberta. Further I think that the oil sands producers should be paying in full the twinning of the new highway there. It is only for the reason that the oil companiew are making huge profits that there exists a need for that highway. And alberta has to provide this highway at 1% royalty. Are we nuts or what ? I think oil and royalties should be set according to destination. I think we should have a multi tier royalty and price for oil system. One for domestic ( Alberta) sales, one for export to Canada sales and one for export sales outside of Canada. Price per barrell sold in alberta should be priced at half the world price and pricing for the final product at the pump should be half of what we are paying now. Oil is an alberta resourse and we should benefit by paying alot less for the oil and products in alberta accordingly for domestic use. Alberta should not have to subsidize export oil production whatsoever and if exported outside of alberta then albertans should benefit by at least 25% royalty. This still leaves a tremendous profit margin for oil producers This oil boom has not been a benefit for Alberta at all. Housing is no longer affordable to most in fact pricing is most outrageous. The financial burden of growth to all levels of government are exceeding and are grossly taxing all levels to even try to attempt to finance social, schools, roads, highways and so on .Before the boom there was a natural progression to growth and it seemed that all levels of government did not suffer the strain as we are experiencing now. Like I said the boom has not done us well.. Automobile traffic and conjestion is now a fact of life. Public transit is strained and underfunded so where is this supposed benefit to the oil boom? I think as a long standing albertan the oil has destroyed a quality of life in alberta . It would do us no harm to put the brakes on oil development in this province and especially in Ft. McMurray , it would be like a correction of inflation by the feds when they adjust with rising interest rates. Question is how can a provincial governing body due the same? Raise the royalty rates at least by the amount the royalty review suggested. Make the oil sands pay their own way ie. highway, railroad, airport etc. cost recovery on keeping the oil town alive. Edmonton will vote for PC candidates if your gov't makes some logical changes for albertas benefit and not that of the siding with big oil . Big oil is not our friend at all, and I haven't even spoken about environmental issues ; such as using us fresh water, etc. We were doing just fine before this oil boom, so lets slow it down and catch our breath. Best Regards [Information Removed]/ Edmonton
RRE2238 It's quite easy. This is already destroying are business and nothing is final yet.
RRE2239 I have read throught eh entire report in detail. I have no personal stake (business or otherwise) in the energy sector. The old gas and light crude royalty adjustments (reductions) seems appropriate. The incentives suggested for upgrader investments seem very appropriate; if anything I would suggest that these incentives could be made to be even more attractive to investors. Value Added pieces like upgrading "in-Alberta" are essential to Alberta's long term benefits. On the increases suggested to the Oil Sands area I am not so supportive. These seem to be overly harsh. We have invited very, very , signficant investment to our province under one set of understandings; I don't think it is fair in any business deal to not be very careful on changing rules but when one considers the huge scale of investment in this sector it is even more problematic. I am not convinced that the report has fairly calculated an adjustment to the relative cost of construction differences between the Alberta and the other jurisdictions being compared to (in particular the US states where labor and escalation factors are not near as significant). As a private citizen of modest means I believe the sensible thing to do is maximize the value added elements in Alberta (i.e. Upgrader and Refinery investment incentives) and look to a softer modification to the royalty adjustments to the oil sands that that grows and dinishes more in proportion to the price of oil. Toss the base/lease fees and just go with a floating royalty after capital investments have been consdered in (much like the original deals made). Then one asks, how does this handle the booming pressures? Bring on the pressures, I say. They are challenges but let's think big and tackle them head on; you as a government, the major investors, municipalities, and citizens. In my mind we need to move faster not slower. We are behind the wave and need to get in front as quickly as we can so we don't lose all value added benefits to the US and elsewhere. Get aggressive! And be nice to those companies that have shown confidence to bring billions to our home and spend it all here. Let's just keep more of it here in the longer term; and that doesn't have to be kept just in royalties.
RRE2240 The least that should be done is the proposed increase to the royalty rate. The oil and gas are our natural resources and they are a limited supply. The oil and gas companies are making billions of dollars from our resources and they should at least be paying a greater price for the presious commodity that everyone is so addicted to. It is bad enough that foreign companies are getting rich off of our natural resources and leaving us with huge environmental messes. Charging them a higher royalty rate is more than generous. [Information Removed]
RRE2241 The timing could not have been worse. A small business owner in the service sector of Alberta's oilpatch, we were already suffering a slowdown of work prior to the release of the Royalty Report. This report has made it worse. We don't deal with "Big Oil", strictly with Junior oil compaines, and they are all running scared. An increase of 20% is a ridiculous expectation. If a "Bust" in the Alberta Economy is what the Stelmach government is looking for, they are most certainly headed in the right direction.
RRE2242 I think the oil sector is just vulgar - look at house prices in calgary. The oil companys need to reduce thier own expences if they wish to be profitable. Look at the number of expensive cars ect that people in this industry can afford.Possibly they could lower thier salarys. All in all the average Albertan would be better off if 200 to 300 k people left this provience- result - resonable house prices , more hospital beds , smaller classrooms. This industry along with the Ralph Kline (Alberta Advantage) has raped the average non oil-sector citizen in this provience. Its time we - the retired , the average non oil workers , people needing hospital beds, children needing education were heard. Do the right thing and show this provience that all citizens deserve a share - not just the lucky few that are fortunate enough to work in the oil industry. Btw - I personally lost 20k from the conservative gov decision to tax income trusts. It is depressing as the average person have no one to trust anymore in any government. Will that change ? I doubt it - whats this governments agenda? Show us - that we can respect and trust someone in government. HEARS YOUR CHANCE!!!!!!!
RRE2243 Friday, October 12, 2007 To Whom It May Concern: I am writing as an Albertan who supports Premier Ed Stelmach’s Royalty Review initiative. In my view, there is nothing wrong with having an evaluation of Alberta’s resource royalties. This procedure should be done regularly and openly. Every company in business in a free market system routinely does this. Demand sets the price and to undervalue Alberta’s resource does not reflect true economics. Companies with subsidized windfall profits are deterred from efficiency in cost control and innovativeness. As an Albertan, I have adjusted to high fuel and fertilizer costs by changing my farming practices. I see no reason why any energy company or service company cannot adjust to higher royalties as suggested by the review panel and the provincial Department of Energy. I am disgusted with the fear being spread by energy companies and investment groups. To fear monger is a lazy, bullying tactic which is insulting to the entrepreneurial spirit upon which Alberta has been built. Any extra royalty money should be available to be used to invest in opportunities as seen by those entrepreneurial risk takers in Alberta. The tactic of slowing investment by energy companies to lower service company billings has hurt many Albertans. The threat of pulling out, I hope does not influence the current government leaders’ decision. I have confidence in Alberta’s capitalistic system –a fair market value for our resource is all that is expected. During an interview on the news, a major energy company CEO defended gas prices at the pumps by saying his responsibility was to the shareholders and not the general public. The Alberta government’s responsibility is to the general public and not to investors in energy companies. Yours truly, [Information Removed] Cc : Gordon Graydon Cc: Mel Knight
RRE2244 Alberta's economy is dominated by the oil-and-gas sector, which is already having probelms with Natural Gas prices and the dollar. Don't scuttle the ecomony with a cute new political trick. We can't afford it. Leave the royalties alone.
RRE2245 The Alberta auditor has come out with his report. Thus, the citizens of Alberta have billions of dollars less because of the royalties shortfall. That should be enough to get the attention of everyone.
RRE2246 Altho' I highly doubt the gov't has the "[Expletive]" to stand up to Big Oil, I believe it is exactly what should be done. If companies pull out, I think the government should follow the example of Norway and take over the projects. Those companies have been raking in BILLIONS in profits. It's hardly surprising that they don't want anything to come between them and all that money. That does not mean they are in the right. But, like I said, I have NO faith in this gov't's ability to make a decision that is in the best interest of Average Albertans. I wish I did.
RRE2247 I am a free holder of mineral rights left to our family by my grandmother [Information Removed] and father and I object to a hundred percent increase in taxes. I also would like to know if the government is considering the Freeholders in their decision making [Information Removed]
RRE2248 This is another NEP which will cripple the industry in Alberta and as well as the economy of Albertat.
RRE2249 I feel as tax paying citizen of Alberta, Canada, the Stelmach must accept the Royalty Review Report (with some possible modifications to placate the industry). But, the Spirit of the Report which has been provided by intelligent and well heeled experts in the field is absolutely correct. One would have been very surprised if the Oil Industry did not cry wolf on their Golden geese being witheld. A little slowdown in the overheated industry may not neccessarily be that bad. Maybe a tiered royalty which implements the findings in full over say $50 and partially under that price may be a good balance. But stay strong and wise, Steady Eddy!!
RRE2250 I have grave concerns that the CEO of ENCANA is taking out ad's in the Edmonton Journal to warn Albertan's of the impending doom in raising Albertan's royalty rates. I elected my MLA to make these decisions, it appears that the big oil in in fact running the government. Please stand up and represent me, a born and bred Albertan. Big oil will not leave, they will continue to make obscene amounts of money - they are not the owners of this resource, Albertans are. Please have a spine and show some leadership. Don't pander to big oil, I elected you to govern.
RRE2251 Speaking on behalf of myself the Provincial Government must implement all of the recommendations contained in the royality review report now or very soon. I have just finished reading the report. I have two University degrees and I understand most of it. More importantly the summary fits with the evidence in the report. I was born and raised in this Province. I am 57 years old. I have never lived elsewhere. My father homesteaded in this Province. My roots are deep. I have raised a family in this Province. My taxes are paid. Apparently some of the taxes and royalties allegedly owed by some corporate citizens have not been paid. The Royalty Review Reort makes a fine Liberal Party Campaign document so long as its recommendations remain unimplemented. Melchin must fall on his sword and resign as soon as possible. The incompetence and the lies are intolerable. "Signed" [Information Removed]
RRE2252 October 4, 2007 Honorable Ed Stelmach Premier of Alberta Office of the Premier 307 Legislature Building 10800 – 97th Avenue Edmonton, Alberta T5K 2B6 Dear Mr. Premier I have been working in the Oil & Gas Industry since 1976 and during that time have experienced a decrease in my salary at one company, no raises at a second company and being laid off during my fourth month of my pregnancy with my second child at yet another company. There have been many other lay-offs of my co-workers over the years that I have been lucky enough to have survived through the tough times. Other times I have been able to see the writing on the wall of when a company is heading in that direction and managed to find another job before the lay-offs occurred. Most of these unfortunate situations have been as a result of the Liberal Government trying to take a bigger piece of the pie (i.e. National Energy Program) which is why I and my family have vowed never to vote Liberal. I am very disappointed that the Conservative Government is now trying to do their best to damage this Industry yet again from a Federal and Provincial Level. I’m not sure who we should turn to next to run this Country. I am presently employed by a Trust Company (approx. 13,000 BOE/day) which the Federal Government punched in the gut last fall and now the Provincial Government will be doing their best to finish us off should the Royalty Review Panel’s recommendations be adopted by the Government. I’ve heard on the news that the Government thinks that the [Information Removed] of the world are bluffing when they “threaten” that they will take their business elsewhere. I can assure you they are not bluffing and that there will be major lay-offs in this business which will hurt all Albertans. You need to look farther than your bank statement to see how you are jeopardizing our future. You may be increasing your royalties on existing wells but you will loose possible royalties on the new drills that were budgeted for Q4 2007 and for 2008 if you go ahead with this. The Government will also be paying out more money from a different pocket when a great number of Albertans become unemployed as a result of the hold placed on these budgets. Every company I’ve ever worked for has been more of a gas producer than an oil producer so I’m not sure why you’re basing your decisions on the price of oil. I am fortunate enough to have been married for 30 years. My husband and I are established with very little debt and no small children at home so we could survive on his salary if I lose my job. We, however, are also in the position, at this time, to provide support to our adult children (21 &25) who can’t afford the high rent in Calgary, provide support to my parents whose only income is from Old Age Pension and Supplemental Pension and to provide some financial assistance to our grandson’s parents because, at the age of 6, he requires assistance from a professional (at a cost of $100/hour to his parents) to be successful in school. I’m not sure how much we’ll be able to help our family if I find myself unemployed. The construction boom going on right now in Calgary is truly amazing. I have to wonder how many employees in the Construction Industry will be affected once budgets are cut and smaller and medium sized companies go bankrupt. I’m sure there are people who will be affected that I don’t even know about, including Farmers receiving payment for water or dirt they sell and/or haul for the drilling companies, Retailers that will loose sales/revenues once lay-offs occur, right down to the housewife who baby-sits our children while we work to supplement the family income so she can stay at home with her children. Please also remember that many of the skills we learn to effectively do our jobs within the Oil & Gas Industry are not transferable to other Industries so if lay-offs occur there will be a large number of people who will not be able to find other jobs. Please consider all of the Albertans you will be harming in one way or another before you implement any major changes that are recommended in the Royalty Review paper. The Oil & Gas Industry truly does re-invest in Alberta so please don’t put them out of business. Thank you [Information Removed]
RRE2253 Has the government thought of the long term impact of increasing these roalties and restricting current and future development for oil companies? I will be the first to admit that the oil companies in Alberta are almost like superpowers out of control. They develop this province at an alaming rate with no other agenda that profit. But the downside to this report is that if the oil companies want to or have to they will shut down operations and put thousands of people out of work. The long term result will be that the government will be paying millions of dollars out to unemployment rather than collecting royalties from the oil companies. There are a lot of peoples livelyhoods depending on the governments response to this review. I urge you to consider the long term fallout this could cause. I don't like the fact that they could exercise their power over us like that but if the oil patch crashes then Alberta will no longer be a strong viable province. We will simply be starving and these oil companies know it. Best of luck in these important decisons. [Information Removed]
RRE2254 I am very concerned about the recomendations made in the Royalty Review. I believe they are extremely short sighted and will lead to a major reduction in the total income the Alberta Government (and peopel) will see from the oil industry. I sincerely hope that the government is intelligent enough to realise that implementing any of the recomendations will result in a huge cut in activity level of the oil companies and therefore the employment rate in the province. I am a facilities engineer with a major oil company and I have already warned my suppliers and contractors that if the recomendations go through they can consider all orders and contracts cancelled until further notice. That means a lot of people not paying income tax or buying new products within our province. The government needs to decide if the want a small piece of a huge pie or a large piece of no pie?
RRE2255 the only people that really think this is a good idea are the people who dont work in the oil field and the retarded NDP just because it have got them on the news, ppl will lose jobs around alberta, the problem is everyone thinks of fort mac and the oil field they forget places like slave lake where im from in the conventional oil field and there is just to many ppl and not enought money in it for the oil companies do raise the costs
RRE2256 Royalties are wrong in every way shape or form. The profits made by oil and gas companies have been in the billons of dollars for many years. It is time they give something back. Profit margins should be limited to ten percent and then the consumer would be able to make his or her dollar go further. NO more royalties!
RRE2257 I agree with the Wildrose Party - why would you take more money in just so you can have an even larger surplus? If you do take more royalty, GIVE IT BACK to the taxpayers in tax cuts or 'Ralph Bucks' instead of giving it to other organizations who just complain about how unfair or how little they receive (healthcare, education, munis, etc.)
RRE2258 It is unfortunate that all of the discussion has to be so extreme. I can tell you for a fact that thousands of people could find themselves out of work and the government find itself with less revenue than it has today. Perhaps someone should ask Don Getty what it is like to be premier when times aren't so good in the oil industry. [Information Removed] will spend their $1 billion in Texas, BC, Saskatchewan and Wyoming because that is what their shareholders will insist on. I'm a shareholder, most of you are too if you own any mutual funds. The farmers who don't get leases, the rural people who lose their jobs as truck drivers, roughnecks, welders etc. will suffer the most. We really need the government to use common sense and find a middle ground.
RRE2259 I feel that our resources are extremely important. The oil and gas industry must realize that these resources are not renewable. Also their scare tactics create fear among vulnerable employees as well as across the province. This should not be tolerated. It is my opinion that the government take a stance in increasing the royalities. Now this may not be as high as recommended or it may be as recommended. But to back down because of potential threats by the oil and gas industry is just wrong morally and sends the message to the alberta population that our government is at the mercy of american oil and gas companies. These companies need to understand that although they may have the means to extract the oil, it is useless without the resource itself. And I am sure there are many other industry contractors out there that would be more than glad to replace them. I saw a recent documentary that in South America (Brazil?), the government receives over 90% per barrel. Anyways just letting you know how my family feels. Thanks [Information Removed]
RRE2260 If change is required it should be carefully mitigated and implimented with the least shock to theaverage Albertan The drastic recommendations to bring about a more generous share to Albertans will impact all of us in a negative way in terms of JOBS and Security and value of homes etc. as the outcome from the change to the royalty will mean less activity in the oil sands and how fare are we to chang the rules after companies and people have invested and spent so much money in oil sands leases or activity and the average person buying a home in fort McMurray. Already it is the highest cost area of developing a resource, and will be made less rewarding by changing the current situation. As for natural gas, many projects are being shelved so do you want more projects to be shelved and companies to fold. I will pray for wisdom to prevail with the dicision makers, for I see that the report is lacking some that was lost in the simulation.
RRE2261 Re: Royalty Review. 1) Extremely credible panel; 2) Very well presented report; 3) All persons I know, many very active media people and several spokespersons for the oil and gas industry have obviously not read the report; 4) Industry people have to speak up about the facts but to create a scare is inappropriate and most be discounted as a requirement to appear accountable to their shareholders; 5) We all know that several large oil and gas companies were about to invest in newly acquired properties outside Alberta (e.g. B.C.) and would likely invest less in Alberta in the coming year; 6) The big play is still in Alberta; 7) Oil sands exploitation while expensive is not risky; 8) Even after the proposed increase, Alberta will still be taking a low "overall take" even compared to some US states; 9) Costs are management issues; 10) Equipment imports are now cheaper; 11) Alberta needs extra royalty dollars to set up a reserve fund to deal with infrastructure and environmental issues; 12) Since so few people are actually reading the report, there is a need to provide a summary to the public on this web site or in the news media; 13) I believe that this report must be accepted in its entirety! [Information Removed] Blackfalds
RRE2262 You're forcing me to leave this blood sucker province, that's what you're doing!
RRE2263 My feeling is that we should not raise royalties significantly beyond where they are now. Albertans have made good profits on their houses, they have got the highest standard of living in Canada and the lowest taxes. In addition many own mutual funds or stocks that have done well due to the outlook for the resources industry and the impression amongst foreign investors of stability. This is already a dividend in itself. Its generally true that higher taxes drive away investment and discourage economic activity and this can often results in less not more net tax income to authorities. I think we should be careful not to introduce National Energy Programme number 2 and go down a route that produces a result which is the opposite of that intended. As I understand the review board compared taxation in other jurisdictions with royalties in Alberta which seems to be an apples and oranges comparision. In addition the extraction costs were not considered, which are far higher in the oil sands even discounting labour shortages. Therefore I would urge the Government to be cautious I don't want to wake up and find I have no job and a house worth half of what it was. Best wishes [Information Removed]
RRE2264 If the government does not raise the oil royaltie to 20% as recommended by your own panel, I will not be voting Conservative again If the government does not raise the oil royalties to 20% as recommended by its own panel, I will never vote Conservative again. As an ordinary Albertan I will not be satisfied by any wishy-washy half measures. The pc's didn't get themselves or the province to where they are today by being indecisive.
RRE2265 I have read the Royalty Review Report and wish to lend my support to the call for a substantial increase in the Alberta Oil and Gas Royalty. As a retired Albertan I cannot help but think that simple justice requires that all sectors of the Alberta economy contribute their fair share to the economic well being of my province Unfortunately, for some time the Oil and Gas Industry has failed to be an equal partner in economic life of this province and I applaud my new government for instituting a thorough review of Alberta's royalty structure. Having had the courage to call for a review, I hope my government will proceed to the next phase of this exercise: the implementation of the Review Report's recommendations. Failure to act in the foregoing manner will have a negative impact on my personal assessment of the Alberta Government's ability to manage the affairs of this provnce and I would be forced to exprees my displeasure at the poll
RRE2266 I think the royalty review has gone too far with its recommendations. I am a professional in the oil and gas industry, and fear for my job if the full recommendations are implemented. I feel that the panel has not accurately taken into account the costs associated w/ working in a mature basin. I do feel that there is room for a small increase in royalties to reflect the higher price of oil, so hope that a middle ground can be found. Thank you.
RRE2268 In view of Oil prices at over $90/barrel there needs to be adjustment to royalty rates. We need to keep the economy and jobs in view while making any adjustments. Thanks
RRE2269 I agree with the recommendations of the Royalty Review Board. Oil companies have been raking in excessive profits, while our Heritage Trust Fund shrinks with inflation. Even if changing the royalties deters some investment by Big Oil, Alberta needs sustainable growth, not the breakneck expansion over the past years. Our oilfield service company has turned away work due to the fact that we cannot find good employees to expand. Now that things are slowing down, our existing employees are enjoying a stable workplace, rather than one in crisis from expanding too fast.
RRE2270 I think you are crazy if you increase thr royalties up to 36%. This will cause nothing but problems for alberta, This will kill small town alberta. Way to think it through folks
RRE2271 I fully support the recommendations of the Alberta Royalty Review Panel to increase the royalty rates. We, as Albertans deserve to get our fair share from energy development. I believe that if the oil developers and companmies do not want to pay the fair share recommended in the report, we should just let these resources stay on the ground for future generations. Oil and gas are non-renewable resources and production in most areas of the world have already peaked and/or close to its peak. Alberta should conserve these resources and not give it away to the oil companies. As the report stated, "Albertans do not receive their their fair share from energy development and they have not in fact, been receiving their fair share for quite some time. This is the perfect time to correct the injustice. The price of oil is at its highest , we are a secure source of oil and we have the proximity to the US market. Please do not be intimidated by threats of the big oil companies. Let us think long term. Save some of our oil for future generations. Oil and gas is not going out of style. Do what is right for Albertans. Adopt the recommendations of the panel. Sincerely yours, [Information Removed] Calgary, Alberta
RRE2272 Last year when the federal government proposed to tax the income trust, all the BIG OILs support the government, because it would kill the trust & junior oil and benefit the BIG OILs. NOW the provinical government wants to tax all oil companies. This will kill big oil, small oil, trust & service sectors, all together. BIG OILs start to feel the pain!!! You deserve it because you support the income trust tax last year! NOW it is your turn to be TAXed!
RRE2273 Personally, i think that adding extra royalties on the oil Alberta's oil companies produce is a very bad idea. In my view, it hurt the economy quite a bit as the oil companies will slow oil production. I don't understand the reasoning behind the move and could use with an explanation and the logic behind which the decision was made.
RRE2274 I've read the report and it is very clear that this review panel had the "right" answer in mind before they even began. Obvious,egregious, and deliberate errors, such as not including land-sale bonuses in the Government total take, show that this review was not at all an attempt to find what is "fair". Rather, this report is clearly intended to provide political cover for a politically motivated tax hike. Shame on you Mr Stelmach. Sincerely [Information Removed]
RRE2275 A government taxes to provide required services, taxation should be no more than required for these services. Why would we propose additional taxes when we are already in surplus.
RRE2276 The government has polarized the parties involved and emotionalized the issues. You have abrogated your responsibility to foster productive dialogue betwen government and industry as well as your responsibility to manage the identity of Alberta within the global business community. You have sparked unnecessary antagonism between the citizens of Alberta and its key industry. No one is denying the need for a royalty review. I hope the government's path forward in some way repairs the damage done to Alberta's identity and sets up a constructive dialogue producing a result beneficial to the citizens of Alberta and the industry. The article in today's Edmonton journal by Pedro Van Meurs is a bit too much in the mood of I'm right and you're wrong, even though there may be some substance in the commentary. This is now how we do business in Alberta as a government or as an industry. An outraged citizen [Information Removed]
RRE2277 The only people who suffer because of this debate are the contractors, workers and service providers. Not the government nor the oil companies. My client has already withdrawn funding for the majority of my companies jobs this winter. WE ARE SUFFERING HAS A DIRECT RESULT OF THIS ROYALTY ISSUE. Regards [Information Removed]
RRE2278 YES!! Please apply the extra 25% royalty. I believe Alaska has even higher royalties and the oil companies are still there. One of the reasons that there is such a boom in Alberta is because we are giving our profits away. 25% is a bargin
RRE2279 I'm thinking losing at 20-30 billion $ in capital investment from Alberta is not what stelmach had in mind, but that's what this will do if it goes through. I can't believe an un-elected premier would put this forth. At least have enough consideration to Albertans and make it an election issue. There should be a law agaist un-elected premiers making decisions above their pay grade.
RRE2280 I do not believe the Royalty Review recommendations go far enough - and I would urge the Premier to ensure that Albertan's resources are not 'given away' as Murray Smith told oil personnel in the U.S. The people of Alberta are behind getting our 'fair share'. Remember this the oil companies can't take it with them when they leave........I'm sure Norway has lot's of advice on who we can hire to extract OUR resources.
RRE2281 This should not go ahead as suggested. This will devistate the Alberta economy. This province will turn into the same situation as Saskatchewan.
RRE2282 How greedy can the government be? Yes, the O&G sector is doing well, but why bite the hand that feeds you. If you increase the Royalties by 20%, that will force O&G exploration outside of Alberta - so if there is no one exploring in Alberta, where are you going to get the 20% from - makes no sense?????
RRE2283 I am afraid that this review has opened Pandora's box. The royalty scheme currently in place was not broken so why fix it? The reality of the conventional oil and gas industry in Alberta is one that is getting progressive more difficult to be successful. The sedimentary basin is what is considered "mature" meaning that large oil and Gas reserves are getting very difficult to find. New reserves are found in smaller and smaller pools that decline quicker than at any time in the past. Compounding the problem is that exploration and service costs have gone up dramatically over the past several years. As well, the price of natural gas has fallen significantly over the past 2 years as demand in mainly eastern North America has been soft. Natural gas storage levels are at record highs which is expected to keep the selling price low for at least another 12 months. The recent strength in the value of the Canadian dollar also affects the value of the products produced. A large percentage of the oil and gas is shipped to the USA and according paid in US dollars. With a stronger dollar, the producer gets less Canadian dollars for their products. These four scenarios, smaller pool sizes, esculating costs and continued soft natural gas prices, and a strengthening Canadian dollar are the "perfect storm" for producers already challenged to remain profitable. While the price of oil remains at around $80 the majority of the conventional exploration and drilling is for natural gas in locations all over the province. This perfect storm scenario is currently playing with ONLY 38% of the drilling rig fleet working. This slowdown affects not only the drilling and service sectors but every restaurant, hotel, gas station, car dealer, tire shop etc. in the province that services this activity. These businesses are already feeling the slower activity levels. To further burden the profitability of the producers means even less activity and corresponding less jobs for Albertans in all regions of the Province. If adopted, royalty review panel's reccommendations would take $2 Billion out of the Alberta economy and put it into the Roayalty Trust Fund. This fund does not create wealth for the people of Alberta like the reinvestment of profitable companies. What would you rather have, a bigger Trust Fund and people unemployed or the status quo with people working, paying mortgages and buying new cars and TV's and building their own futures? Your MLA needs to know that you are concerned about the government continuing to provide a stable and secure business environment so that we can all keep our jobs! Let them know that they should not make any signifcant changes to the current royalty programs despite what others may say. DO NOT LET THE GOVERMENT KILL THE PRIMARY DRIVER OF THE WHOLE ALBERTA ECONOMY!
RRE2284 Dear Mr. Stelmach, I strongly support an increase in the royalty fee. A 10% increase iin the royalty fee is a nominal amount for the large oil companies, considering the amount of profits they have garnered over the past few years. The increase is further supported by the fact Alberta offers the oil companies a safe and secure business environment along with the second largest proven oil reserves. Venezuela along with other hostile regimes have been asking the oil companies to leave as they nationalize their resources. This is something that would never happen here in Canada nor Alberta. The royalty fee increase is just and fair. Yours truly, [Information Removed]
RRE2285 I will again reiterate the same suggestions I made two weeks ago. Adopt the Commission's recommendations in whole. A fifty percent increase in royalty rates across the board, with another fifty percent being phased in over the next five years. HOWEVER, this money go to Albertans with residency status of five years or over, IMMEDIATELY. Average Albertans have not seen any benefit what-so-ever in their standard of living in this so-called boom. Companies yes, individuals no. You have managed to flood the market with this propaganda of a "labour shortage", and keep wages depressed. There may be a shortage of cheap skilled labour in this province; there is definitely NOT a shortage of skiilled labour. [Information Removed]
RRE2286 DO NOT implement the changes suggested by the royalty review. The panel in charge of this review has no experience in the oil and gas industry and thus does not understand how this will affect not only the industry, but the entire economy of Alberta. DO NOT IMPLEMENT ANOTHER NATIONAL ENERGY PROGRAM!
RRE2287 I' ve been in the oil patch over 20 years and the Royalty Review seems to be causing nearly as much fear and panic as Trudeau's "NEP". It seems every time Alberta begins to enjoy a Boom in an industry some form of Government has to stick their greedy fingers into it. I'm very dissapointed in our Governments choice. Thank you for your time. [Information Removed]
RRE2288 What ever happened to the "Alberta Advantage" of lower taxes, less Government and the entrepenurial spirit that rewards risk taking and profit - I guess we'd rather figure out ways to penalize success and ramp up public spending with a totally one sided report !
RRE2289 puuuuhleeeeeeze don't kill my economy. I have nothing to do with oil and gas, but will have a hard time making a living without the benefits of a vibrant economy. it makes no sense to risk losing this sector to add another two billion to a ten billion dollar pile that will shrink to five billion if this plan is implemented. Why does everyone think that oil companies won;t pack up and leave if they can make money elsewhere? They will be gone faster than you can imagine. Don't do it! There has to be a number that makes sense. Please get this one right. I'll puke if I see Stelmach on tv bragging about how he wasn't intimidated by big oil companies as they head down the highway to Saskatchewan or BC.
RRE2290 I would like to see another rebate to all Albertans' that have lived in the province for at least a significant time frame, such as 2 years or so. There is no "Alberta Advantage" to long time residence. We are the ones putting up with the increase in housing prices, traffic, crime, etc.
RRE2291 We should have a system like Alaska in place. Where the royalties are both saved and actually shared with the residents of our province.
RRE2292 Good day Minister Knight, I am an average Albertan who has had the good fortune to benefit from the hot economy in recent times. I also lived through the National Energy Program instigated by the federal Liberals in the 1980's. I thankfully survived the dire economic downturn, but believe me, it wasn't by much. A repeat f this travisty must not be an option. As you review the recomendations by both the Alberta Royalty Review Panel, and the oil & gas sector, I respectfully ask that you find a compromise that as Tristone Capital said in the Calgary Herald's October 3 issue, will "maximize the value of oil & natural gas resources for Albertans while maintaining a competative investment climate...". You must find the middle ground that will placate the reasonable majority of Albertans, and the oil & gas industry. We need the expertise of the oil patch, and they should be fairly compensated for their investment in Alberta as much as the people of Alberta should be fairly compensated for "their" natural resources. There will be many dissenting voices heard on both sides of the issue. These people will most likely never be satisfied with any compromise reached by your government. I hope you will not be swayed by the radical segment of either side of this issue. I trust in you to find a solution that will treat everyone fairly. I wish you all the very best in this endevour. [Information Removed]
RRE2293 My family moved to Alberta in 1983 just after the NEP was introduced and we lived thru the fallout which in many cases took years to recover from. We are currently reaping the rewards of a successful economy. I would hate to see it damaged by an implementation of a royalty program that was not a well thought out and planned. As a tax payer in Alberta I see that we already have large revenue surpluses that in my opinion are not being spent in the most rational way to enhance our province. Education and Medicare could certainly see some of that monies. This makes me think, "Why would the province need the 2 billion more $ at the detriment to the economy?" I believe it is not in the best interest of Albertans regardless of what the media is saying. My message to you is, please review all impacts of implementing a change to royalties in a UNBIASED, non- politically corrrect fashion as to provide the best return on investment for all Albertans. You have a big job ahead of you, please give it your best consideration. My kids want to see a great Alberta in the next generation.
RRE2294 We need to increase royalties in Alberta and invest that money in the future of our children. The natural resources belong to all Albertans and when they are gone what will we have? Will these oil companies provide us with cheap forms of energy to heat and power our homes? Will they be there to clean up their mess when they are gone? They are the reason we need a heavy rail line and 4-lane highway to Ft. Mac. Let them pay for it. This oil boom is creating a lower standard of living for the average Albertan. Not everyone works in the patch, not everyone is getting huge wage increases. Housing prices are out of control, and consumers are getting gouged on goods and services because workers in this one sector of our economy make good wages. There are people in the province who need a break, perhaps in the form of tax breaks, elimination of AHC Premiums, reductions in licenses and fees.... Perhaps this is where money generated from an increase in royalties could go. Invest this money in infrastructure in communities all across Alberta before it all collapses from the increased population. Invest in opportunities to diversify the economy so we are not so dependant on resource revenue. Oil and gas are non-renewable resources so you have only one chance to get this right. You could leave us a legacy of greatness if our province gets its fair share of the revenue and it is invested to expand our. Or you could leave us a legacy of hurt if these companies rob us of our resources and we are left with a crumbling province. We could be the laughing stock of the world. Look after the average Albertans. They are the ones who built this province. They were here long before the oil boom and they’ll be here long after it’s over.
RRE2295 As an employee of a Calgary based oil company doing allot of work in Sask I think a rate hike in Alberta would be the best thing for Saskatchewan, already funds are being sent our way that are diverted from Alberta spending. Thanks
RRE2296 Once again the Government is sending mixed messages. On one hand you say you do not have enough revenues to support infrastructure and health programs and therefore plan on imposing rate hikes on oil investments. On the other hand you say you want help from Albertans in deciding where to invest $40 Billion dollars, effectively wanting opinions from an un-educated ( most people do not want to know )general public.
RRE2297 I support the 'fairness' aspect of the royalty review report. I urge you to ensure that all Albertans receive maximum benefit from the dwindling resource rather than just shareholders in petroleum companies.
RRE2298 venezuala would be proud
RRE2299 I do not work directly with the Oil & Gas Industry. However, I like my job and I like being part of a vibrant economy. I DO NOT WANT AN INCREASE TO ROYALTY RATES. We want a MORE stable regime. Enough of this garbage. Don't touch royalty rates!!!!!!
RRE2300 Rising construction costs, a tight labor market, high cost of products and a downturn in the natural gas industry are all putting a strain on the Oil Industry. Add to that an increase of 20% to royalty rates and our Oil and Gas sector could have a major slow down. No most companies won't leave but to slow construction of mega projects would cause a slow down in the economy. Leave the royalty structure alone. [Information Removed]
RRE2301 I would like to comment on the review, in that there will definately be grave circumstances to the economy if the royalty hikes are passed as they have been currently proposed. There is most definately alot of errors in the review as to the cost of drilling and completing certain wellbores. The review panel estimated costs very low and obviously did not consult with Industry on current costs. I do believe there was already a pullback in progress, but it will be much larger if the proposed royalty hikes are legislated. If there is significant withdrawl from R&D investment in Alberta, we will definately lose a huge amount of skilled workers from the Oil and Gas industry and it is very hard to replace them when utilization does increase. We have seen a large exodus of skilled workers already, but it will be certainly amplified if the hikes are implemented. The royalty hikes have to be derived through consultation with industry leaders, or [Information Removed]. The ramifications will mirror what happened when the NEB policy was implemented in 1980. I truly hope the Alberta Government rethinks their process, and consults with Industry to come up with a solution that both sides can accept. I have been in the Industry for 26 years and saw first hand what the NEB did to the industry in 1980. It was devastating, and there is absolutely no reason for the government to make the same mistake now. Please listen to what industry is SHOUTING at you, and rethink what you have proposed. The future of our Province depends on this issue, and it must be a fair decision for Government, for the oil and gas industry, and most importantly for the people that live and work in this province.
RRE2302 I am extremely worried that the proposed royalty changes will have a devastating affect on the Alberta economy. We have already been hurt by an extended period of low NG prices. I do not think EnCana and other oil & gas companies are using idle threats if the Alberta government proceeds with the royalty changes. If the economics don't work, companies such as EnCana will go elsewhere to Provinces and countries where they can get a better rate of return their investment. The last thing Alberta needs right now are fly-by-night companies swooping in, replacing the exiting major companies and cutting corners on their operations in order to make drilling in Alberta economic thus putting all Albertans at risk. I hope this Government, which I helped elect into power, has the where-with-all take into account the suggestions of the knowledge experts on oil and gas in this province and revise the more onerous aspects of the proposed royalty changes. We all agree change is necessary however input from all sectors should be considered before such changes are undertaken. Regards, [Information Removed]
RRE2303 PLEASE do not be swayed by the ill-informed or well-endowed with respect to oil royalties! WE NEED TO INCREASE ROYALTIES! I really appreciated the different approaches yet similar results from the well-informed royalties review, Parkland Institute, and AG's perspectives. DO NOT BE SUCKERED BY THE OWNERS AND TEMPORARY BENEFICIARIES OF BIG (US_FUNDED) BUSINESS!
RRE2304 We normally leave it up to corrupt third world governments and the Premier of Newfoundland to carry to carry on in this manner. To arbitrarily and retroactively change the rules once the capital has been spent and the project can not be built or moved to an other jurisdiction is simply wrong. Governments in democratic countries should not behave this way. Alberta should respect the written commitments it has made and should only contemplate changes for new projects where the operators and investors have the option of not proceding if the new requirements are too onerous. Even the Premier of Newfoundland understood this, seeking royalties and back ins on new projects, but not tearing up his existing commitments as Alberta seems poised to do. Alberta already has some the of highest overall tax/royalty rates for oil in the world so the "fair share" arguement seems like cynical political posturing not a reasoned argument. I am amazed that Albertans could support this sort of approach while still claiming that the NEP represented some sort of egregious federal tax grab. From where I sit, I can't tell the difference.
RRE2305 I'm presently a contractor with an oil and gas company. And there are numerous rumours about cutting back spending next year. This could mean that my company would loss revenue and I would have to end up laying guys off. Our company is small but supplies good work and wages for our employees. I hope the government realizes the implication of what they are purposes and this will send Alberta in a down word slope. This is a very bad idea in my opionion and will send a lot of people to the poor house.
RRE2306 My personal opinion on changing royalties is that when you get too greedy either on the part of the government or the Oil and Gas Industry no one gets anything. I lived through the NEP Program in 1982 and saw the devastation on the economy when Ottawa tried to grab all the profits from the Energy Industry. When someone works to get the oil out of the ground they should get paid for their efforts. It costs a lot of money to get that oil out of the ground. I have seen the good the Energy Industry has done in providing services in communities where they go in. They have also provided a lot of jobs in the community. We don't want to get back to going on Welfare and Unemployment. It will cost the government more money and the people of Alberta.
RRE2307 If this goes through the same thing is going to happen that happened back in the eightys.... All drilling and service companys will pack up and move elese where, over seas, U.S. South America... But the government HAS to be greedy just to have this happen again... UNBELIEVABLE WHY CANT THEY JUST LEAVE IT ALONE....
RRE2308 DO NOT ADOPT THIS NEW ROYALTY REVIEW REPORT!! PLEASE!! I am a Certified Engineering Tech in Fort McMurray, AB working on a new Oilsands Project. Though we all know that Royalties should be paid by the Oil Companies, a NEW model has to be made in considering a negotiation between the government and the Oil Companies to come to an agreement. The CURRENT MODEL will remove BILLIONS of dollars of investment from Alberta, ultimately affecting jobs, economy and wealth of the province. DO NOT ADOPT THIS NEW ROYALTY REVIEW REPORT!! PLEASE!! [Information Removed]
RRE2309 I would like to know if the Government will be forwarding funds to oilfield service companies when producers start shutting in deep wells and stop exploration... you do it for the farmers.... I will not be voting for Eddy when the election is called, I will be at the welfare office with many others once you destroy the economy.
RRE2310 Alberta should not be bullied into selling it's resources below market value. The current economic boom may suffer if roayalties are increased but the longterm consequences of inaction are far more devastating.
RRE2311 After reading through the review, I as an Albertan and an employee in the oil & gas sector, an concerned that what is being recommended will send our economy into a recession. As I have been thorugh 2 downturns (which included wide spread layoffs) in the economy primarily due to changes in royalties/taxes I urge you to reconsider how these recommendations are implemented. Nexen invests heavily in community projects and othe non-pofit organizations and it would be a great shame to have to stop these investments because the government wants an even begger budget surplus. Again I urge you to NOT implement these changes without further consultation with corporate Alberta and its citizens.
RRE2312 As an employee in the oilfield services business here in Alberta I am very concerned about the government tampering with the existing royalty system based on a report which is obviously flawed. Please review the input of all concern before making a rash decision which will have significant negative influence on our province.
RRE2313 I am a very concerned Albertan and would like to make my concerns known regarding the Alberta Royalty Review. Let me introduce myself and my family to you. * I am a 26 year old woman working for one of the major producers in the oil & gas industry. I work in the Public Affairs department and look forward to a long career in the oil & gas industry. * My husband is 28 years old and is a self-employed computer programmer. His clients are all oil & gas companies. * My father is a 70 year old welder, working for a compression company that supports the oil & gas industry. * My uncle is a 55 years old lawyer, working for a firm that supports employment law, specifically in the oil & gas industry. * My cousins, 34 and 38, all work for oil & gas companies and have small children and big mortgages to support. * My neighbors and friends are all employed directly or indirectly by oil & gas companies. The proposed changes would negatively impact the livelihood of all of us and hundreds of thousands of Albertans. I ask you to try to stop the reckless Royalty Proposal that would devastate our entire economy overnight. This proposed change will not be good for Albertans and it will not be good for Canada. Many companies will find Alberta simply not a good place to invest and will move their projects south of the border or to other provinces immediately. The consequences will be devastating. Our unemployment rate will rise, value in homes will be lost, people will not be able to spend money on shopping, going to restaurants and stores and retail outlets will go out of business. There are very few working Albertans who will not be dramatically impacted by this change. Like many others, I fear that the "Alberta Advantage" will simply become a thing of the past, and many will be layed-off from their jobs and their quality of life completely diminished. Companies have already issued notices to the media and internally to their staff. This is not a scare tactic - it is reality. I ask that this government represent the people who have elected you. Do everything in your power to save Alberta from destroying itself and the people who proudly call this province home. Regards, [Information Removed]
RRE2314 I would encourage you to not destroy our economy. While there are parts of the recomendations that look ok, there are other parts I'm very scared of. I do not see a lot of difference between the OSST and the NEP's PGRT. Paying a tax that you do not get to deduct from your taxes is just wrong. The other is the Grandfathering issue. Companies have made investment decisions based on the rules at that time and now you want to change them. Be wary of what will happen if Alberta gets a reputation that it renegs on it's deals. I thought Premier Stelmach was a rural person where handshakes and peoples word still mean something.
RRE2315 As a taxpayer and a life long Albertan, I'm deeply troubled by what I'm hearing from this review panel. The heavy handed approach they have taken from the initial publication to it's ongoing 'royalty lost' time ticker makes me believe they have a secondary agenda, and not in the best interests of Albertans in general. I am an employee of an Oil and Gas producer, everyone of us in our [Information Removed] company are Albertans and care deeply for this province. I don't understand the attitude that the panel is fostering of 'the us against the big corporate giant' mentality. We want to work with the province so that everyone is treated fairly. I thought we've always talked about working together as a team on this issue. If this panel's recommendations are taken in full, this industry will die. Our [Information Removed] company will no longer have viable economic assets to generate wealth and government will no longer have royalties, personal tax collection, and spin off effects. Only to mention a few. What made Alberta stand out from the rest of Canada is it's ability to foster entrepreneurial spirit. The sense that money in the hands of the individual will make a better choice than that of the government. We are on the brink of smashing that and any goodwill that we have fostered with any investor that has backed Alberta. Once that is done, it will take decades to re-establish that trust. I beg of you. Do this the right way. Phase royalty increases in. Let's see and study the effect on investment. Let's do it better than oil rich nations, many of whom our socialist which the panel loves to put forth as examples, and work together and develop new opportunities. We can make this work for all. Thank you.
RRE2316 The citizens of Alberta have not been benefiting sufficiently from oil and gas development for two reasons: first the oil and gas companies have not paid their fair share, and second the Alberta government has done a poor job of providing the supporting infrastructure (transportaton, schools, health care, Universities, etc.), If Albertans felt that they shared in the wealth of the province they would not be demanding that the private sector pay more. I also think that the government should ensure that any change in the royalty regime is comparable to that in other places, so that if Encana wants to take their investment elsewhere they have no economic reason to do so.
RRE2317 The Hunter Royalty Review Report should be implemented in it's entireity. If the Oil Companies do cut back for a while that would be a good thing to give us time to catch up on the infrastructure and cool down the inflation we have in Alberta. The Oil Companies have had it too good for too long in Alberta, the resource is here, they don't have to look it, their costs are about $25/Barrel and Alberta is stable politically, unlike other countries. Why the rush to develop the tar sands, they will only get more valuable with time. The "Hunter" recommendations are timid compared to other jurisdictions, the royalties should be even higher. I say go for it, Premier Stelmach.
RRE2318 From your report on the royalty structure, I can only find that it is grade benefit to the oil company's Like to remind you that the Albertans share of the royalty from 1975 to 2010 would be $70 billion and that be just for Oil Sands Royalty. Also due to lack of infrastructure Albertans will also be indebt for a futher $130 Billion by 2010. Conceder that the town of Fort Mc Murray alone needs $5 Billion over the next 5 years just to keep up with their infastructure. Keeping in mined that Royalty of our conventional oil and gas is being used for the infrastructure due to expansion , of the Oil Sands. I there for classify the Royalty incentive program as the biggest scam and legal robbery in history of man kind. And when Albertans realize in the near future how they have been robbed, the politician of today would have to seek Asylum in the USA Their is nothing wrong with some incentive for the Oil Sands projects So when A Company wanting to build a plant for 100.000 barrels a day, no problem, do not pay Royalty untill the plant is paid for, but when it seeks a expansion up to 200.000 barrels a day, I want to see my Royalty for the first 100.000 barrels a day to continue. Since I as a Albertan am not getting the Royalty and in fact am paying for the plant, I would insist that only Canadian labor and material is being used. Further more Oil Company's should not be allowed to write of this Royalty Expense on their Federal tax taking the Federal government for a other 2 Billion a year Thank You [Information Removed]
RRE2319 im just an average albertan but honestly in going through with this royalty review would you not be cutting back on the amount of work the work that the oil & gas industry is bringing into this province? further more in grande prairie there is already talk of a few companies pulling out of the patch. now im just shooting in the dark here but if those companies pull out wouldnt that make the unemployment rate across the board just go through the roof? and if history is correct didnt the government already try to do something like this and killed the patch for 15 - 20 years? Do you really wanna do that just when our dollar is able to battle with the U.S. for the first time in 30 years?. honestly to me that kinda sounds a little counter-productive and really to be frank, just get your hands out of the patch its not like u like to get them dirty anyways. maybe just maybe if the government were to endorse the patch, the patch workers and those involved with the industry just might be willing to endorse the government. i know that sounds bad but honestly all the government of canada and alberta has done for the canadian citizen is just find new words to [Expletive] us over in the same fashion, BE DIFFERENT. and you know that saying... you scratch my back ill scratch yours? well maybe you should try scratching the back of these companies instead of gouging at their eyes, and taking from the working mans pocket
RRE2320 My message is simple and to the point. I have voted PC for 25 years ([Information Removed]) and if the royalty changes are made as presented by the "committee", I will NOT be voting for the PC Party in the next provincial election. The junior oil and gas sector has already been crippled by rising costs, falling natural gas prices, and to a large extent the collateral damage of the "trust stock meltdown" while enduring increasingly smaller pool sizes typical of a maturing basin. The royalty changes contemplated referencing natural gas ( and to some extent light oil) particularly on higher rate wells and deeper tight gas targets (removal of incentives) will push many junior companies to heavily curtail drilling and make many opportunities uneconomic even at higher prices if they materialize. It will push many of these companies already close to bankruptcy over the edge. If you look at the US energy sector which is even more mature than Canada's, it is the junior and independent smaller entities that keep the sector going after the multinationals move onto bigger international opportunities. If we stop drilling this will immediately affect many other sectors including drilling, service companies, hotels, restaurants (hospitality indutries), farmers secondary income through water hauling, grading, surface land fees. This is only the tip of the iceberg as 1/6 of Albertans are directly working in oil and gas. How many others are secondarily affected? I can only imagine the effects on cities such as Fort Mac, Grand Prairie, Medicine Hat, Brooks and on and on whose new prosperity can be directly linked to high levels of oil and gas activity. There is no doubt in my mind you will lose most of Calgary due to its links to oil and gas. Can you afford to lose 1mm votes and countless seats? Alberta's oil and gas sector has fueled the entire Canadian economy and you want to bite the hand that feeds Alberta's growth and prosperity. Remember oil and gas provides several billion a year just in landsale money in addition to the royalty money. It is in your hands now to re-look at the the committees findings and find a better solution than has been presented. If you don't, I will not vote PC next election, something I never thought would ever cross my mind let alone change my "X" on a voting slip. Your committee chair has made many FLIPPANT remarks ("Albertans deserve 100% of the rent) since the report's release that will cause fear/anger in Albertans not in the energy sector. If he wants 100% of the rent ,whatever that means, perhaps the Alberta govt should start another Alberta Energy Company (now the biggest company in Canada, ENCANA) and pay all the money it takes to extract the oil and gas and the upfront costs for the oil sands mega projects. I am sure the Alberta govt does not want to re-invest more than 100% of its "profits" back into the ground and run a business that averages a rate of return less than 5%. [Information Removed]
RRE2321 I don"t understand the Review Panel comments. Ability to pay is the key to any scheme. If there is a profit we should failry share. Looking only at gross percentages says nothing about the ability to pay. Royalties that are based on a net and allow a return should be the criteria, not the percentage of the gross.
RRE2322 Don't kill the goose that is laying the golden egg
RRE2323 A think that we, as Albertians, should make the decision as to what Royalty we might levy on the producers, with all the facts in play. What do other jurisdictions levy? I think Alberta is still one of the best places to invest as far as drilling, for Oil and Gas is concerned. We should not let the emotion get into the process. Oil Companies will naturally complain about a rise in costs. I also would ask you to whom does the Oil and Gas belong? Albertians. These Oil and Gas Companies have made the biggest returns ever so why shouldn't the Province take its due. This Royalty structure was put in place during a low time of production and we wanted some increase in activity now we could use some leveling off of the activity. This may be a mechanism that could be used to level out the peaks and valleys in the provinces activity levels. A 20% rise is not that bad. Maybe we need to be flexable when it comes to low producing situations. What are the exact Royalties that the province levys at this time? Thanks [Information Removed]
RRE2324 If anyone thinks this province does not revolve around the oil industry..simply put they are an idiot...I have seen what greed does over the years and if this government wants to get greedy they will end up with nothing except about a million [Information Removed]people that are out of jobs!!!!
RRE2325 My jaw dropped when reading the report about the lack of understanding of the oil and gas business in Alberta, the laws of supply and demand. Does the ex-Shell executive really believe we control labour shortages and global steel prices, or the shortage of concrete driving those prices sky high? This is called supply and demand - Basic economics that one studies in first year university. Does the panel advocate that the industry collude to reduce costs? That is the other alternative unless the government imposes cost and wage controls (and that worked well in the past just as it is working in Zimbabwe - read sarcasm). The conventional gas royalty proposals offer relieve only for a $4 gas price or below and only for wells that are very low production. At about 500 mcf/d (a very poor well) the royalties for all other prices become prohibitive. For the good wells that carry all the sub economic wells on production the higher royalites effectively kill many of our producing pools. SInce the new royalties will reduce the economic rent to nearly zero for many conventional gas plays the amount of money the province will realize in associated land sales will be reduced to zero. Does the panel not realize that when we run economics we put in all the costs (drilling, seismic, royalties etc), predict the price and what is left over is a pot of money of which we can spend a good portion of it buying mineral rights - working in a competetive environment we are all working to get the mineral rights we want and therefor often bid higher than the economics tell us to. The government will lose most of what they gain in royalty increase to land sale bonus losses. Get a grip and make a proper decision. The stability of Alberta to investors has already been damaged by this ill timed, ill prepared, ill researched report.
RRE2326 I entirely agree with the Panel's conclusion that royalties should be raised. Cheers, dba [Information Removed]
RRE2327 I feel I must comment on the royalty review panels report. I am against accepting the report as is. In particular for the panel to say the report must be accepted in its intirety and no grandfathering is crazy. I am completely opposed to the government changing any rules after people have invested money under other rules. The last 10 to 15 years have been very good to Alberta and to jeopardize investment in our province is not right. With the exception of the oil sands that could use some tweeking the conventional oil and gas royalty system seems quite fair. There is significant risk in exploring for oil and gas and it becomes harder and harder each year. Please don't ruin the good thing we have going for Alberta.
RRE2328 The oil & gas industry provides alot of job opportunities for the people of this province and if this royalty review goes through it means job cuts and people without good paying jobs. I also think the review committee has left out alot of important factors in their recommendations - such as the rising loonie, labour costs, equipment costs that are all putting pressure on oil sands development. The review committee has recommended significant increases to royalty revenues - over 10% - I can see a need for some sort of an increase but 1.9B is not reasonable - the committee needs to take other economic factors into consideration - like the rising loonie which makes Canadian industry less competitive especially when shipping our Oil & Gas to the U.S.
RRE2329 against royalty!! keep stable economy!! keep our job and home!!!
RRE2330 There is considerable discussion about the Royalty Review. Which is great. It shows that a democracy can work. My concerns are not tha the governement witll do the wrong thing. I am sure they will end up doing the right thing. My concern is there seems to be descrepancies between whats in the report and what I am hearing form all corners of industry. Questings about the panels cost estimates not reflecting 2007 rates. The apparent elimination of costing in the value of the mineral leases. And now I hear that a least one panel member has indicated that the review did not take a proper reckoning of the royalty holiday for deep wells. Paring back that grace will most certainly have a negative impact on development. Now maybe that advantage should be removed but bear in mind that budgets are forecast a year ahead. It is not fiscally prudent to switch horses in mid stream. Nor is it prudent to have to expain to investors that the Government has changed regulations. Alberta is a great economic climate. So is Canada. But recent developments over the past year has taken the lustre off the oil and gas industry. Investors are going elsewheres with their money due to a downturn in gas prices, tax rule changes for trusts and the general scare over the sub prime and commercial paper fallout. With these factors already inhibiting development it does not seem sound reasoning to change royalty structures without first making sure there the right facts are on the table. Thank you, [Information Removed]
RRE2331 I am one of many oil and gas workers in Alberta. I have lived and worked in Red Deer, Alberta for the past 12 years. The more I read about this report, the more scared i get about my families future. I can not understand how our government can even consider this report at this time. Our industry is similar to a boat taking on water. If this report is accepted by government the way it reads now. Our boat, along with our livelyhoods in't imaging worse timing for this review to be happening. The service sector is going to take the biggest hit of all. Our clients will simply take their dollars elsewhere. For the sake of the thousands of employees in the oil and gas industry, service setor, I hope the recommendations of this report get thrown in the garbage.
RRE2332 Hello, Despite making my living through the oil and gas industry, I feel it's the right thing to do to raise the royalty rates. We're the beneficiaries of being in the right place at the right time. I feel that some of our good fortune should be held back for future generations and that this is a way to provide an annuity to future generations. In addition, I think our economy is overheated and out of control. I think a it wouldn't hurt for things to slow down to a reasonable and sustainable level of growth. Please support the Royalty Review panels recommendations in full. Thanks, [Information Removed]
RRE2333 For too long, Alberta has let non-Canadian Oil/Gas companies to exploit our resources and rip up our land. As well as the Canadian Oil/Gas, but they haven't exploited as much as the non-Canadian companies. I would like to have the money from the royalties be spent on cleaning up the waste and devastation created, the Province of Alberta to be more stringent and monitor the companies. For example, in the muskeg (Slave Lake area) oil leaks from a pumping station into the ground... more oil has been lost and contaminated the ground than the Exxon Valdez incident. Yet no one takes responsibility for this devastation! Spend the royalties to clean up this mess, and be more strict on policing the environmental disasters these oil companies purposely create!
RRE2334 Please do NOT jeopardize our Alberta advantage by becoming greedy with royalties. Squeezing the golden goose won't make her drop eggs faster - she'll simply die! When you pole people on their opinions on this matter, please add questions that test not only their greed, but their understanding of the economics involved. If they don't understand the economic implications of raising the royalty, then their opinion is uninformed and not worth considering. Be smart with my families future ... PLEASE!
RRE2335 I think that we should be getting more money for OUR resources...I know that there is a risk of slowing doen development a tad .. but the demmand for the product is going to be huge
RRE2336 I would like to say that I have read a lot about this review and I do not consider it to be a positive thing for Albertan's for many reasons. It does not cosider the overall impacts to the economy in items such as lower revenues in landsales and lower foreign capital investment due to the political unstability seen from these changes. You can't just change the rules when things are good or vice versa. The royalty plan in place was setup to cover all price and production ranges so it does not require modifications. Also, the current producers are in a low revenue environment due to high operational costs and the rising Canadian dollar. The impact of all of this overlaid with the recent trust changes will cause a recesion in the Canadian oil industry. Think before you react to a few pressures.
RRE2337 As long as our royalty schedule is within the range of other oil producing regions, then we are not likely to be in danger of losing investment in the industry. By all means, increase the royalty till we are in the mid range.
RRE2338 Premier Stelmach, Minister Knight; I wish to urge both you gentlemen to implement the entire royalty review in its complete form. Albertans deserve to be paid fully for our resources, this fair compensation requires that all companies from the small producers to the large multinationals pay what is deserved to all Albertans for using our resources. Lastly, I also urge your government to protect the enviornment in the light of an even larger energy boom. Please protect my province for my generation (as I am a university student) I sincerely hope that both you gentlemen do not fold under the pressure being placed upon yourselves by the greed of the oil and gas industry. Thank-you.
RRE2339 I strongly believe that if the Royalty Report is enacted, the province will spiral into a full-blown recession. I can understand the viewpoint of most Albertan's; thinking that we should get a "bigger piece of the pie" and that the oil companies are making too much money. I think that is a very narrow view point and that they are failing to see the big picture. If oil companies cut spending as much as they are indicating, and bring drilling, etc. to a stand-still; the larger economy will suffer. With no one drilling or funding exploration, who will stay in all the new hotels being built everywhere, who will eat in all the restaurants? If no one is being employed in the oil sector, every spin-off effect of severe cut-backs will be felt across the province and beyond. Some Albertan's may think that increased royalties will lead to cash-back cheques like we had over natural gas rebates, but I doubt that will be the case. Over all, taking a larger amount of royalties will cost the province money as the amount of activity will drop greater than the amount of gain that will be imposed on the oil companies. Was the study not composed of 2005 information? Wages were less then, everything has changed vastly in two years. I would love to buy or build a new house based on 2005 numbers like the review board used. The oil sector is no different. The wages we pay our employees has increased as has everything else in the last two years. The future looks very dark to me if this policy goes through. Thank you, [Information Removed]
RRE2340 Albertans own the resources and they should not be given away. I believe the royalities could be higher. There should not be a huge rush to commercialize and mine, harvest, or pump them out. In the case of oil resources they are non-renewable. The value should only increase with time. I am very disappointed with the proposal by Encana to export raw bitumen. Perhaps a sliding scale of royalities should be used. The lowest being for resources being "mined", brought into a finished product , and sold within Alberta. The highest royalties on raw resopurces exported outside out of Alberta and Canada. Thus the more Alberta jobs produced, the less lower the royalty. Thank you for your time
RRE2341 I believe increasing royalties on oil and natural gas by up to 20% in Alberta is extremely aggressive. Please understand, I am not a rich person, but I am doing well. I have a wife and a new born baby boy that I hope will have every opportunity we have right now. I work for one of the biggest oil and gas companies in Canada, and I just want to share my thoughts. Also, when I say "my company", I am referring to the company I work for; I don't really own it. First, if you increase royalties by 20%, my stock and my stock options will be devalued. This is part of my retirement plan. A plan I have worked very hard on, so I will have a comfortable future, and I will not have to rely on my government to support me. I will not blame my company if my stock and stock options go down in value because of new taxation laws, I will blame my government. I have friends that work for energy trust companies, and if I ask them how they feel about the conservative government, it is a very unanimous voice expressing their disapproval. My company employs over 7000 people directly as staff or contractors. Not all of these people work in Alberta, but the majority of them definitely do. If you take 5000 people and assume they paid $20,000 in income taxes last year, this would add up to $100,000,000 in income taxes. This does not include the amount of taxes we pay everyday such as GST on the goods and services we purchase, gasoline taxes on the vehicles we drive, or property taxes we pay for the houses we live in. It also does not include the people my company indirectly employs such as employees of drilling companies, service companies, pipeline companies, environmental companies, hotels and restaurants, etc. Every sector of our economy feeds off the oil and gas industry, so increasing royalties would effect everyone in our province not just the millions of investors in oil and gas stocks, or the 10's of 1000's of employees of oil and gas companies. Federally, I have been a conservative my whole life, but I will tell you this. I will not be voting conservative in the next federal election. Part of Mr. Harper's campaign was not to change the tax structure on trusts, and he did. For this, he does not deserve my vote. Similarly, I have always supported the conservatives provincially, but how could I support a government that will affect my family in such a negative way. I know this seems like a no win situation for you Mr. Stelmach, but it is not. There is a very vocal minority; I feel is uneducated on this issue that will voice their disapproval if you do not increase the royalties as suggested. However, the vast majority of people in Alberta who are positively affected by the oil and gas industry will quietly thank you for being strong on your position not to increase royalties as suggested, and you will get our vote in the next provincial election. This is our best way of showing our support for you and your government.
RRE2342 Hello, I work for an oilfield service company. My responsibilities are accounts payable and payroll. I am fairly low on the corporate totem poll and yet this royalty increase will effect me as well. This industry affects millions of people in this province and the increase is coming at a lull. Already there have been threats from big corporations that they will pull money out of Alberta. I do not believe that Alberta will be able to thrive as it has if this increase goes through. Thank you, [Information Removed]
RRE2343 I admire Ed Stelmach for instituting the review at arms length to all other players, including the government and oil companies. It seems a fair and decent assessment of the current situation and has proposed a reasonable alternative, placing us far from the top of royalty rates in the world. I would ask that the government consider accepting the recommendations of the review in their entirety. The investors will stay, there are few other safe, reasonable oil-bearing regions in the world in which to work.
RRE2344 This type of radical change in royalties is the sort of thing a 3rd world country would do. This simply removes all investor confidence in the system. The small to mid sized oil and gas Companies will be clobbered. What will that do to the economy? Do the math. This is NOT a smart move. Please do not follow through with the recommendations, they weren't made by any one with upstream oil / gas experience. I think there was one guy, midstream at best from Shell. Not a smart move. Dont do it. I repeast, NOT SMART, short sighted, this will not work. Thank you [Information Removed]
RRE2345 I want to urge the government to tread carefully before making wholesale changes to the Royalty Programs. The flight of capital will be swift and sure as we experienced during the NEP. Even the smallest change to interest rates up or down can cause huge economic impacts as we recently saw in the US. The shutting down of the Royalty Trusts has already impacted Calgary as shown by the takeover of [Information Removed] but also the corresponding 10% drop in house values. I assure you the only albertans who want house prices to drop are those who don't own one. After the NEP, prices dropped so precipitously that people walked away from there mortgages. With mortgages at record levels this could easily happen again. I sincerely believe you have not thought this through and should not be influenced by the clamoring masses.
RRE2346 As an Albertan first and foremost, I don't agree with the royalty review report & I have set out my reasons below. While well-intentioned, the panel has prepared a report and set of recommendations that do not reflect the current realities of the industry, and that are flawed in several areas: 1. The analysis ignored real costs facing the industry. Those costs were provided to the panel by industry associations and some operators, and are accepted and expected by the investment community. For natural gas, real costs are 60% higher than the assumption used by the panel. 2. The report’s “fair share” conclusion is based on a single independent report that compares Alberta’s “share” to the government “share” in other jurisdictions, while it ignores other independent reports that indicate Alberta is one of the least profitable places in the world for oil and gas investment. 3. An increased “share” for Alberta is predicated on increased royalties not resulting in reduced investment in oil and gas development. In other words, it suggests industry’s cash flow could be significant reduced without any impact on the industry. As a citizen and a voter, I wouldn't want any changes made to the current royalty regime that may have a negative impact on the quality of my life and that of my fellow Albertans. I don't wish to see the oil & gas industry (& the economy of Alberta) slump due to a government policy as it did in the 80's.
RRE2347 royalty money should be given to canadians
RRE2348 If the royalty panel report is accepted in full I think it will have a negative impact on the Province of Alberta. Many major oil companies have publicly stated that it will significantly impact their operations. As a result they will have to reduce investment in the Province of Alberta. This will effect workers in the oil industry and well as workers in the oil services industry as well as many others indirectly. This has the potential to allow many people to lose their jobs. As well, it will discourage new entrants into the oil industry due to having to pay royalties as soon as the a well produces revenue (not when it pays out). However can a start up invests thousands of dollars and pay royalties as well prior to making a profit? This changes the payback period period and economics of drilling and many wells that would have been drilled will not be drilled. I agree that Albertans should get their fair share of royalties from the oil industry. However, what good is a larger royalty on a decreasing industry as a result of the proposals? I think that royalties should be increased as commodity prices increase. There needs to be a balance between what maintains a healthy, booming oil industry and the appropriate increase in royalties.
RRE2349 Friday, October 19, 20 Premier Ed Stelmach: I am writing as an Albertan who supports the premier’s Royalty Review initiative. From the information that has become public, it is apparent that measures need to be taken by your government to protect the interests of Albertans’ resources for Alberta’s citizens. Hopefully, the current government will not cave to the bullying and threatening actions being engaged in be some major oil industry players who clearly do not want changes that will affect them. As a life long Albertan, I have been directly affected by the cuts in the 1990’s to both education and health care. With responsible decision making now, I would hope that the need for such cuts again would be averted. Sincerely, [Information Removed] Cc Gordon Graydon Cc Mel Knight
RRE2350 Dear Alberta Government: Even the mention of an increase in the royalty rates has initiated a slowdown in the Alberta economy. People are hesitating on buying new commodities knowing that a raise in rates would lead to dramatic changes in the oil and gas business. Is the Alberta government that greedy that they are not happy with the billions of dooars they get now. All contractors and companies have to make a profit or they will not do business. Oil companies are even more needing to have a reliable, steady, consistent playing field as the risks they take are tremendous and the capital inputs are huge. They cannot be expected to explore and develop new resource plays if the profitabilty and reliablilty of the industry is subject to change by the whim of the governments. This royalty review has all the makings of a tax grab similar to the 1980s by the federal goverment that put Alberta in a tailspin for years. People lost their houses, their jobs, families were broken apart. It was a disaster. Think long and hard Alberta government people, this could start a downturn that would stop the Alberta economy in its tracks.
RRE2351 Please consider this carefully through all fields' perspectives...there are many that would be negatively affected by this proposal...please consider this for both Albertans and Canadians' good. Thank you.
RRE2352 Please stop the implementation of the ARRP recomendations. Thank you.
RRE2353 I am extremely surprised and disappointed that our premier is not fully accepting the panels recommendations - wasn’t he the one setting up the panels in the first place for "transparency"? To my knowledge the affordable housing panels recommendations were rejected too. If the energy companies can go elsewhere, well they should. My only question is where? Even with the recommendations Alberta will be one of the most affordable places, so are they going somewhere where to royalties are higher? Who are they trying to bully here? Thanks for reading my message, [Information Removed]
RRE2354 I have been following the 20% royalty proposed from our government over the past while and quite frankly am very concerned of the overall outcome this may have for our province. I understand what our premier is trying to do. Oil and gas will not be around forever and the province feels they should take more of a cut so when the industry does slow down, the province will have a fairly substantial nest egg to fall back on. It is an excellent government practice to look this far ahead in the future for the people of Alberta if it is for the people of Alberta. Unfortunately, I don’t think our government is trying to look at our side as much as I have tried to understand theirs. Here is how the common voter that works within the oil industry is looking at it. There are approximately 95,000 Albertans that work directly in the oil and gas sector. These people including myself all have families which a rough guess would mean at least 45,000 spouses and children. These people all spend money in their communities which in turn allow how many other industries and families flourish. If this tax goes through, the oil and gas companies will put many of their projects on hold at least until investors start to get upset. By this time most of the oil and gas industry will be unemployed, lost their homes to the banks and have moved to a different province to find employment. There is a reason why a flood of Albertans have been buying up homes and driving the price of houses to unsustainable levels in cities such as Regina. This in turn affects everyone in small business, real estate, not profit organizations and even charities. If people move out of the province in search for new employment, it will take a very long time to get them to come back to work here. So even if the oil and gas sector resumes normal production, the province will be in more of a dire need for workers than we have today. Educated or highly experienced people will not stay in Alberta to wait for things to turn around. We are in just as high of demand here as many other provinces and further. Oil and gas companies have donated millions of dollars in our community so our children can play sports or go to collage in a brand new building. I don’t see the government doing these things in our community. My son’s soccer club does not say sponsored by the government of Alberta but it does say Encana. To sum up, I am sure there will be at least 1,000,000 people at a minimum which will be directly or indirectly affected by this proposal. One thing I am sure of is if myself with everyone else becomes affected by this decision, our beloved new premier will know what it is like to be unemployed not to long after. Good luck getting re-elected! Yours truly concerned, [Information Removed]
RRE2355 I am currently employed by [Information Removed]. As the largest [Information Removed] in Alberta, we are fortunate to have industry information that allows for very informed opinion on the issue of Royalty changes. Although I agree there should be a formal process to regularily review and change Royalties if required. I am confident that this panel's assessment and proposal will severly cripple Alberta's economy and specifically Rural Alberta. If industry pulls an estimated $10 billion of capital investment in 2008, this will potentailly create high unemployment in the service sector, it will force the service sector to move it's resources elsewhere (US and Internationally), which would also be determetal long term as the loss of technological advances in Alberta and the ability to attract service companies to return in the Future would be limited. There could also be a negative "trickle down effect" created with local business and commuinty funding for social programs as Producers experience drastically reduced activities in given areas, and this affects ALL ALBERTANS, not just people directly employed in the Oil and Gas industry. I support the intent of this initiative, I want our Teachers, Nurses and Doctors to be paid well and have a strong Social Network, however not at the sake of everyone's well being! I think the process should be re-vissited and it should be a colaberation between Government and Industry to come up with the best possible solution.
RRE2356 [Information Removed] Mr. Morton, Although I am not directly involved in the Oil and Gas industry, I am familiar enough with it and old enough to remember a similarly harmful movement to curtail opportunity in Alberta, a movement directed by a Federal government led by Liberals intent on picking the pockets of hard working Albertan's. Odd now that the Liberals of Alberta see the opportunity in Alberta's energy sector and the ramifications of such moves but the ruling Conservative party does not. Viewing your site leads me to believe you were a young man when the NEP was introduced by Pierre’s LaLonde and Trudeau. And despite not being a direct part of the energy industry, I realize how important a role it plays in just about every business in Alberta and how tinkering affects the development of opportunity for everyone. I was fortunate enough to have been invited to a business dinner in late 2006 with leading business men hosted by Premier Hamm the then premier of Nova Scotia. I realized, through evening long conversations, that most of the young men and women in attendance had never actually known hard times in business here in Alberta, something I was rather pleased with having personally been affected by the recessions relating to the industry energy. I would suggest however, should our government choose to initiate the plans set forth in the panel recommendations relating to the royalty payment scheme, I will assure you, you and all of the other young men that have not known what a downturn is will witness one first hand. Should that be the case the only comfort you may have is that your tenure with the government was sufficient enough to afford you a pension for you will not see it from a seat in government. Speak to your leader and suggest an alternate path. [Information Removed]
RRE2357 Do not adopt report as is, due to the fact of the weakness of inflated costs & inappropriate use of royalty vs taxes in report. It is rather unfortunate that no matter what you do with the report you will be the looser unless you compromise. Due to the blow up of income trusts last fall & the tentative increase in conventiional o/g royalties, the reports recommendations will certainly cause significant downturn in the rural area's of Alberta. Also I am not a member of any provincially union who would gain significantly with a larger wage increase to my salary once the royalties were increased. Regards [Information Removed]
RRE2358 It is time for the Alberta government to stop letting the oil companies cheat the people out of their fair share. Follow the lead of Newfoundland's Danny Williams, and set Albertans up with a royalty regime that represents the valuable resource the people own.
RRE2359 Premier Stelmack and Government of Alberta members, in regards to the decision being made on the royalty review I would like for you to know that a lot of Albertans are for the rate hikes. I watched the Edmonton news this evening and was compelled to write and voice my opinions after witnessing many picketing working Albertans outside the legislature building today. If our government does not raise the rates now there will be no other time to raise rates. The oil and gas industry controls much of this province already. Too much some might say. If "we" don't raise rates now the oil companies will know that they can and will get away with whatever they deam, further into the future. This provinces resources belong to each and every Albertan including our children who do not have a voice. Alberta has the second largest deposit of oil that has been discovered to date and we should take this opportunity to even the field and ensure our future is more sustainable.For this reason alone , now is a great time to change the rates. The oil companies want oil and will eventually get it, what Albertans want is a fair price for these resources. The economy is already in a slow down in the oil sector. Not all families in Alberta are benefiting from the oil dollars, the "boom" has brought with it a lot of hardship and a huge increase in the cost of living. This may very well be the perfect time to re- negotiate royalty rates. I trust that "you" will review carefully and do what is in the best interests of all Albertans. I thank you for your time and considerations. [Information Removed]
RRE2360 Dear Sirs, I am writing to you to raise my concerns regarding the Alberta Royalty Review Report released 2 weeks ago. As a resident of Alberta, I would like The Alberta Government to take the right decision in regarding to The Royalty Review. But a decision like this, of paramount importance, needs to be debated as much as possible with the main protagonists. I do not understand why the Alberta Government needs to meet a deadline for mid or end of October to enact a serious project like this. As mother of 3 kids, I can tell you we wish more schools to be built, more hospitals and walking-clinics to be built, new train stations to be built, roads and in general, improve the public services. But this should be done without causing a negative impact in Alberta’s economy or causing a big exodus of Oil & Gas Companies to other more profitable latitudes. On the contrary, we want to maintain the Alberta’s economic growth reached so far. Without the Oil & Gas boom, Alberta wouldn’t have reached the economic growth it has had in the past few years. I would like to know your point of view regarding the comment in the report that says “The Oil & Gas Industry has direct control over their cost”. I think this is not correct and is strictly related with the Demand/Supply market. I trust the foregoing concerns would be taken into consideration. I look forward to hearing from you. Yours truly, [Information Removed]
RRE2361 The oil royalties should not be increased at all !!! We have more than enough revenue at this time to manage our province, with a surplus LEFT OVER. With the rising dollar, against the US dollar, our oil companies are making less because they are paid in US funds and have to operate in CDN dollars. If royalties are raised this will cut into profits and slow down growth. Do you remeber 1986 when oil prices went to less than $10.00 / barrel? I am not saying oil price will drop but the spending stopped in. 1986 and lay offs were everywhere and this will cause lay offs again even with high oil prices. With lay offs this will cause lost tax revenue for the government in personal income tax and corp tax and also a decline in Alberta's population. Our economy will probably go to Hell. THINK VERY LONG AND HARD ABOUT THIS. DON'T LET THE LIBERALS AND NDP DRAG YOU AROUND BY YOUR NOSE. I started my business in Jan of 1986 with 2 other partners and by May that same year I was by myself with no revenue at all, but managed to make it. Today, I have a new shop [Information Removed]and there is 9 of us on the payroll. Our company has grown a little every year, so don't srew it up for us because I am getting closer to retirement and don't have time to start over again. Our business is a [Information Removed]. For more information about us our website is, [Information Removed] Mr. Stelmach, I would be more than happy to show you our business and product if you are interested. Thank you and have a good day. [Information Removed]
RRE2362 The report came up with more emotions, not most Albertan interests. Alberta needs to build more hospitals, roads and schools. The well developed economic and more investment in the province, more revenue the Alberta can get to fund these infrastructures. I believe that the Government of Alberta would look into long term not short term. [Information Removed]
RRE2363 Royalty Review - comments I urge Premier Stelmach and his team to ensure they have all the facts before they decide on the recommendations of the Royalty Review panel. The impact to all Albertan's will be tremendous. Oil companies will not be able to survive, or reinvest profits into new projects if they do not sustain a decent rate of return. If this policy is adopted you will see job losses in the oil and gas sector and any other industries that depend on oil and gas in this province. Spending will go down and the domino effect will run rampant through the rest of Alberta's businesses. The 1980's were a nightmare, never knowing if this Friday was the one where your husband would bring home the dreaded "pink slip" because the company he worked for couldn't afford to operate anymore. This policy will not put more money in the pocket of the Alberta government. By adopting this policy you will shut down viable business and this will result in even less revenues that you experience now, when the province has stability and growth. I have never seen the Oil and Gas sector as stable as it has been over the last 8-10 years. It is not broken, please do not try and fix it. Thank you for listening. [Information Removed]
RRE2364 As an employee of a large Canadian Oil and Gas company, I know first hand the impact these changes will not only have on our Industry in Alberta, but our economy as a whole. I look to the Premier (and his representatives) to bring some reality to this proposal – before they send this Province into an irreversible economical tailspin. I find it hard to believe that the current government is prepared for the aftermath they are looking at endorsing. To be more specific: ? The Fundamental assumptions for capital costs the Panel used are low by a factor of 2. Credibility and analysis of report recommendations require significant review. ? By nixing the Special Royalty Programs for deep, marginal wells – the government is ensuring exploration for these type of wells is completely non-economical (end of story). Deep Foothills exploration within Alberta will be non-existent. ? With the Primary Oil Sands being eliminated from the Oil Sands Royalty Program – the economics for all Heavy Oil Properties in Alberta will drop dramatically (even at $82/bbl oil). If oil were to come down to even $60/bbl, not only would we stop drilling completely – we would probably be shutting wells in. ? The review states that 82% of the gas wells will be lower (this is based on lower gas prices). Based on strip pricing for 2008 (about $6.00/mcf), all gas wells (including the marginal ones) will pay more in Royalties – deeming them uneconomical. ? With the Oilsands Royalty going from 25% to 33% base – there are present projects being built which would not have spun a wheel if they had known this would happen. Bottom line is that all people hear about is how oil has gone from $20/bbl to over $80/bbl. What they don’t realize are the enormous price pressures we presently have in this Province. MD taxes increasing by over 50% in some municipalities, costs of services going through the roof, Heavy Oil differentials approaching $30/bb. It is interesting to note that even prior to reading this panels recommendations, gas development in this province is almost at a standstill. By endorsing these recommendations – our present Government will ensure that billions of dollars will exit this Province in 2008. Encana’s recent PR about moving $1.0B out of their capital budget for Alberta is just the beginning. I never thought I would say it in my life – but with the Conservatives being so naïve to honestly think this will have minimal impact on development within the Oil and Gas industry in Alberta – I may become a supporter of the Liberal Party!! Who would have thought a Government could [Expletive] the economy of the most successful Province in history – all in a matter of a few months – this will go down in Canadian History!! [Information Removed]
RRE2365 The speech Wednesday evening was nothing but a campaign speech. Ed is scared of Big Oil and it shows. I want the 2 billion we are owed every year in our pockets not oil companies profits. This oil and gas belongs to Canadians and Albertans. Regards [Information Removed]
RRE2366 Premier Stemach; Now is the time to act on the full recommendations of the royalty review. Prices are high, substantive proven reserves exist and a slowdown in capital markets would provide a timely pause to reposition and implement strategies to support sustainable development of the oil sands. Energy Dept professionals have made the case in the past and now the Auditor General's has made this fact public with his annual report. It is my understanding that the royal regime in place never contemplated the prices we're seeing -- for example, natural gas prices higher than $5.00 we never contemplated, with royalty rates capped at a price substantially less than the current market prices. The result -- a wholesale windfall to the resource companies. When an oil and gas company makes a $7.0 billion profit and suggests they may redirect a billion dollars -- do not be swayed -- it just shows us all their true committment to Albertans -- for what it really is. [Information Removed]
RRE2367 It’s a new ERA – Economics have changed with the new global economy. Alberta must review their assets and enjoy what equity is theirs to retain. Submitted by [Information Removed] First of all we should give thanks to the hard workers and visionaries of decades ago who found oil, worked hard and created a solid foundation for Alberta to build a thriving economy. We must also give thanks to the Provincial government and somewhat to the Federal government for their support through grants, loans and creative tax structures to assist the oil sector. In the beginning it was essential for the governments to support the concept of having few or lower taxes on small businesses. Decades ago, I’m sure the economists knew close to 100% of the potential tax money that was left in the hands of the Alberta entrepreneurs ended up back in the Alberta economy. Economics 101…neither over tax the business community nor the entrepreneurs for they create economic growth and diversification in the local economy. It’s a new era. Economics 101 has a new calculation to consider. Times have changed. It’s a new era. Decades ago economists confidently knew close to 100% of the money earned on the oil coming from below our feet is not re-invested back into Alberta or at least back into Canada. Today, how much of that revenue stays in Canada? I’m neither an economist nor do I have access to sufficient financial statements to determine how much of the revenue generated from Alberta’s oil stays in either Alberta or Canada. I’m sure it is less than 50% and maybe be closer to 30%. Therefore, there is only one conclusion: The province of Alberta should take an even larger slice of the pie than indicated in the royalty review paper. These energy companies were surviving with oil prices below $15, they were doing well at $30 a barrel and at rates above $40 a barrel they have been giving out lavish salaries, bonuses, share options, expensive parties and staff flies usually fly first class and stay in very expensive hotels. The [Information Removed]of the world will still be very wealthy and the Encana’s of the Alberta (Encana only exists because of indirect or direct healthy grants, loans and subsidization from both the province and federal governments in the 70s and 80s.) will continue to do well. At business school there was always the old comment; Let the business community look after the assets and not the government (province) because we the business community know how to look after the money and we will spend it wisely. For years I believed that. However, with so many lavish bonuses and share options handed out to employees and executives these profits are not being spent in the province. The $500,000 or $1,000,000 spent on the golf condominium in Arizona was neither spent here in Alberta nor has it helped our economy. The $150,000 spent on a Porsche or a BMW, or $250,000 to $400,000 on a Bentley or Ferrari leaves the country and goes to the manufacturer. Lets be open and fair 3% to 5% does helped the Alberta economy; for the salesman makes $1000 to $2000and the dealership earns $3000 to $10,000, but the remaining $150,000 to $350,000 goes to Germany or Italy. $100,000 to $1,000,000 boats are ordered and left in other parts of the world. Decades ago, most Albertans vacationed in Alberta or Canada and that vacation money was spent here. Today most people in the oil/gas sector vacation elsewhere. Many of Alberta’s oil/gas sector companies have offices in Houston, London, Rio, NewYork, Paris and Singapore. These staff members live, stay and work in million dollar homes and offices. Commuting back and forth to these offices is done in first class of other country based airlines or in corporate private jets that were purchased elsewhere and are often stationed and serviced elsewhere in the world. We all know money is electronically moved from one tax haven to another. The list of situations where money leaves the country and the province is endless. Huge leakage of monies! It’s a new era and there is huge leakage of monies that no longer stays in Alberta to drive the economy. Companies employee 1000s’ of accountants, economists and lawyers who work long hard hours looking for ways to avoid paying taxes. Some avoidance of taxes may even be tax evasion. Yes, I know it’s a global economy. Yes, we all know the world has changed. So does the need to change the tax structure and royalty. The Province of Alberta should take a larger portion of the up front revenue. The royalty system should be easy, highly visible and easily understood by all. Eliminate the need for 1000s of accountants to be searching for ways to escape or minimize tax or Royalty payment. Bottom line – Millions or even billions of dollars which came from the oil beneath our feet that belongs to the citizens of Alberta should stay here and be spent here by the provincial government . I agree hard working oil/gas patch sector workers should be paid well and their $100,000 to $200,000 annual incomes are earned and they deserve it. WIN - WIN SITUATION - In the end there maybe casualties of accountants, the profit of the oil/gas sector may increase and the citizens of Alberta will gain a greater percentage of what is really their asset in the first place. The oil in the ground does belong to Albertans. Reality – no matter what the royalty fees or taxes are – someone – an entrepreneur will make a very healthy living from it. The [Information Removed]of the world will always do well. [Information Removed] A long time citizen of this wonderful province who wants to see it remain a wonderful place to live. Long term outlook - the monies generated from the oil and gas below our feet has a definitive end. Once the commodity is gone what will support Alberta and Albertans. Capture and retain as much as possible. Seize the day and retain what is ours for the future. This commodity is not an infinite revenue source.
RRE2368 Dear Mr. Premier, As a financial professional I would like to urge you to work with the energy industry to find an alternate solution to the Alberta Royalty Review Panel (ARRP) recommendations. What most Albertans fail to realize is that the cost of implementing the ARRP recommendations (which are based on bad data) may very well be greater than any of the benefits. The market is ‘reflexive’ so eroding oil & natural gas economics in Alberta will lead to less investment (capital flight out of Alberta), fewer jobs, lower personal income, lower revenue, lower royalties (over the longer term), lower tax collected and eventually more leverage for energy firms and less cash for the province to spend. Reflexitivity can cause positive or negative spirals that are difficult to exit (e.g. just look at the U.S. real estate difficulties). The province of Alberta is currently wealthy (debt free and cash rich with yearly budget surpluses) because of its historical royalty and tax take and pro-business (Conservative) attitude. Lastly, for those worried about future royalties for Albertans in the distant future, I would like to add that under current production rates the oil sands, in aggregate, will last another 400 years! It would make sense to continue the pace of oil sands development (even though costs are high) so that we can maximize the present value of the royalty take for all Albertans. Kind Regards, [Information Removed] Dear Mr. Premier, The above letter was sent in by my colleague [Information Removed], and I would like to echo the sentiments expressed above. I am the chief administrations officer of a small Alberta-registered portfolio management company [Information Removed]. The suggested royalty changes, as they pertain to our sector, would devastate a sector already reeling from weak natural gas prices and escalating costs. It is too early for us to understand the full fall-out on our small business, but it could be dire if the current recommendations are fully implemented. Respectfully, [Information Removed]
RRE2369 I have worked in the oil industry for over 20 years, and have run economics for the last 10. This has given me quite a bit of insight into the economics of the oil industry. The interesting thing is even though the price for commodities has increased dramatically, so has the price of services. The net result is that we still look for about a 15% rate of return on capital. As for the huge profits oil companies are making, I have two points. Most of the profit comes from projects undertaken when commodity prices were lower and are now making high rates of return. The second point is most of the cash flow from oil companies goes directly back to drilling more wells, building more equipment etc. For those of you who think that the whole oil industry is booming, you should talk to service companies who are already laying off people in the 1000's due to low gas prices and to people who work for Junior oil and gas companies (who have only been operating for the last 2 to 3 years), most of which are losing money due to the high cost of services. I talk to people in both sectors every day and they were nervous about thier job security even before this royalty review. My last point is that this additional $2 billion ($700/person)that the royalty review panel says Albertans will get will be a temporary gain, that will be more than offset by house prices dropping by $50K. Perhaps before you enact the panels findings, you should read a book called "THE PRIZE". It is an interesting history of the oil industry and it shows that just about every time governments change the rules in a local juristicition, they have short term gain and long term pain. Judging by the story in the Globe today about [Information Removed] pulling $1billion worth of capital out of Alberta to put into BC, Sask and the US, the long term pain is starting. In closing, I have talked to over a 100 people the last few weeks, all of them who have voted Conservative all thier adult lives, and each have said that if these recomendations are put into law, they would never again vote Conservative. I guess that would make Premier Ed a Trivial Pursuit question and the Harry Strom of the new millenium.
RRE2370 There's one Chinese proverb: "Collect eggs by killing hens". If the govenrnent of Alberta does accept the recommendations of the Panel, it will exactly be "collecting eggs by killing hens". If the "hens (oil and gas companies)" are dead or in trouble, how can you collect "eggs (royaties and taxes)" any more? Please be cautious as the oil patch relies on prudent government policies and/or decisions. Thanks! [Information Removed]
RRE2371 My view is that the Panel's review was seriously flawed in several aspects. Their assumptions on capital are completely false by a factor of at least 2. Also, the expected impact on govt. royalties is much greater than the stated $2 billion. The assumption that activity levels will remain the same is shear stupidity. If the report is implemented as proposed, activity levels in the oil & gas industry will be severely reduced. The economic impact to Alberta will be massive. Please take the necessary time to gather the facts and make a prudent decision. Thanks, [Information Removed]
RRE2372 I am very upset at the proposed changes and the heavy handed, greedy measures proposed by the panel. I am a small business owner in Alberta, and I feel my voice is not being heard. My business directly employs 9 people and indirectly we employ dozens more. We are involved in the E&P side of the business and we use money only raised within the company. Our company will be devastated fincancially by the proposed changes. There are two major complaints I have with the report. The first is concerning the data used to determine the Finding, Develop, and Producing costs for conventional oil and gas. The data submitted in the report is not at all accurate for businesses in 2007. Major changes to the Canadian Dollar exchange rate, and major changes to the costs since 2005 have rendered the analusis completely invalid. Also statistical tricks, like using the statistical mode and mean interchangeably in what looks to be a manipulative manner, have been used to depict the profitability of conventional oil and gas projects falsely. This has the appearance that the panel knew the answer, that Alberta is not getting its fair share, and found data to support that conclusion, no matter how invalid it is. The second major concern I have is the ethical fairness of the proposed changes. The province has sold oil and gas leases, and the companies have spent their money(in our case, our own money) to develop these leases. It seems highly unfair to change the rules so substantially after the fact, and makes a mockery of the title of the report. I would be so happy if someone from the government would call me so we could discuss this. My livelihood, those of my employees, those of the service company folks we employ, and our families are part of Alberta too and we feel like we are in your gunsights. You are going to hurt us severely if you enact the report's recommendations.
RRE2373 right now the industry is in peril with only 38% of the rigs working. Service companies are begging for work and no one can help. How can you raise taxes on a deminishing tax base which will put us in a recession. I know good companies whose revenues have dropped by 2/3 who might go out of business. Why does Saskatchewan lower royalties and taxes so companies will move there. How do you tell the other provinces oh we don't have enough, Alberta is suffering we need to raise taxes. Don't kill the goose that lays the golden egg, maybe you could learn from the past and only take bay steps. Maybe raise rates over ten years.
RRE2374 The recommendations on the final report from the Royalty Review Panel should be accepted in its entirety. The recommendations are fair and reasonable. The oil companies have created a lot of propaganda to convince Albertans that Alberta receiving more royalties will damage the economy. This is just not true. Companies who have already invested over 15 billion dollars will not stop percent. The oil belongs to Alberta and it is about time Alberta gets paid for its resource. Taking slightly more money for royalties will not harm the economy, however a slow down in the extent of the boom would be very welcome to all Albertans who have seen costs increase without their salaries increasing to match. Mr. Premier Stelmach the decision you make regarding this issue will be your legacy please do what is best for Albertans not what is best for the oil companies' bank account. Sincerely, [Information Removed]
RRE2375 An unpredictable increase in royalties could hurt the Alberta economy and we are all doing quite fine right now thank you very much. It's understandable that Albertans want their fair share, but let's make sure we don't end up worse off, with a dismally smaller pie just because we think we should get a bigger slice. Focus on making the pie bigger. This is common-sense economics in contrast with a royalty review that threatens to bring Alberta's advantage to a crashing halt.
RRE2376 As a geologist who has worked in the oil industry in Alberta for the past 27 years I have seen the risk and reward associated with our business. I have also watched most companies move away from the risky exploration and development approach and towards the resource play style of play which the oil sands and low productivity tight gas plays typify. While providing a lower reward, risk is reduced to an development problem rather than a discovery problem. With the unprecedented rise in the price of oil, we in the oil industry have enjoyed a windfall of bonuses, and salary increases. Senoir management at many firms have rewarded themselves handsomely for the good fortune which has come upon us. Albertans in general have benifited from the price increases as well with more jobs being present then can possibly be filled. As a result wages have risen but unforetunately often not as fast as living expenses. Through all of this the province, the manager of the resource for Albertans, has not taken any windfall taxes from the companies. As a result, as the study indicated, Albertans are literally giving away the eggs from the golden goose. The proposed royalty increase is an overdue correction and would put us into the mid-tier of royalty rates still below Alaska and Texas. It might also slow Alberta's economy down to a reasonable growth rate from the super heated economy that is occuring at present. There should be a sliding scale present if commodity prices drop but in the modern world with great demand and limited supplies of secure and stable production that is unlikely. The government of Alberta has to recognize the resource that Albertans have been given is limited and not renewable. As stewards you must put the best interests of the general population first, both the current generation and future generations. I believe the proposed new royalty scheme is a reasonable compromise. I am concerned that the image of the government being in collusion with the energy industry to deny Albertans their fair share is starting to become firm. The industry ,like the public, had an opportunity to be consulted and provide input during the evaluation process. The fact that the industry has a second pass at the results in closed consultation with the government makes many people wonder who the government of Alberta is working for. As a worker in the oil industry I am sure we can still make a reasonable rate of return on our investments and Albertans can get their share. BMW sales may drop and less luxury homes may be built, but money made too easily is often thrown away. A higher royalty will force the better companies to tighten their belts and sharpen their pencils, the companies that did not have a good business plan will fail anyway. The golden goose will get trim, it will not die as long as there is a demand for oil and gas, and money can be put away for future generations of Albertans.
RRE2377 I truly don't think you realize the grave consequences that implementing the recommendations on the royalty review will have on this province. Implementing these changes will throw us 20-30 years back in time when we had the NEP to deal with, but this is worse.......our own Provincial Government is doing it to it's own people. To do this would truly kill the "Alberta Advantage" and stagnate the oil and gas business for decades to come. [Information Removed] Calgary
RRE2378 Time to call big oil's bluff, Ed. I what to see more refineries built in Alberta. If the oil companys just want our oil and create the jobs in the USA then they need to pay top dollar for it before it leaves our borders.
RRE2379 NO NO NO NO ...
RRE2380 Premier Stelmach...I urge you not to sucumb to the "sky is falling" posturing of the Oil and Gas Industry and in particular the shameless attempt at blackmail by the EnCana Corporation....who have done so well living off the resouces owned by all Albertans. The Panel's report is credible and thoughtful. Albertans should not be afraid or ashamed to ask the industry to pay a fair and competitive price for OUR resources. The proposed rates are still very favourable to the industry as compared to jurisdictions such as the U.K and U.S. I suggest EnCana take their $billion down to Venezula where I'm sure they'll be welcomed with open arms. I'm equally sure there will be a long line-up of foreign investors happy to replace that investment in Alberta. Remember...all Albertans own the Resources and deserve a fair share of the the benefits. Thankyou [Information Removed]
RRE2381 raise the royalties by $2 billion/ year
RRE2382 We need to put "our money" into infrastucture, schools, hospitals, health care, child care, heritage fund etc., not give away "our money" to the oil companies.
RRE2383 I am concerned that the Primier will not increase the royalty rate to the levels the report recommended. If he does not the people of Alberta will say this government is in the hands of the Oil & Gas companies. Come up with all the excuses you want but the people will not believe the industry is hurting with the profits they are making. Accept the report and get a fair share of the peoples resourse for the people of the province.
RRE2384 If companies want to decrease their work load, all they have to do is increase their prices - done deal. If the Alberta government wants the province to decrease the work load of the people in the province, all they have to do increase their take of the pie - done deal.
RRE2385 I would rather my legacy be that of creating and building... not tearing things down that I dont understand.
RRE2386 Many proponents for Big Oil claim that an improved Royalty Regime for Alberta will discourage future investment and slow down the booming economy. How is that a bad thing? The economy of Alberta is currently out of control and hinges completely on one sole driver. Alberta's economy could use a little slowdown and diversification, which would help shield it from an eventual crash if the current pace of unsustainable, uncontrollable growth continues. Even with a new Royalty Regime, Alberta would still be an extremely desirable destination for oil developers, as opposed to other world markets that are far less stable politically. It's no surprise that oil companies balk at the mere mention of this, why would they give up $2 billion per year in profit if they do not have to? An economic slowdown is what Alberta needs right now, and allow for some time for workforce shortages, inflation, and things like speculative housing prices come back into balance. As a young single, well-educated individual, and high-income earner for my age, it is practically impossible for me to buy any property in this kind of market that is larger then a shoe box, and it would probably be a bad investment as you could probably only recover your investment in these kind of economic conditions, or over the very long term. In addition, worker shortages, this situation is reaching critical in the health care industry as these kind of individuals are in very high demand not only here but elsewhere in Canada and the world. But not just here, even in the service industry for restaraunts, retail outlets, and even grocery markets, it is becoming increasing difficult to hire enough staff to serve customers. -end-
RRE2387 It is imperative that the provincial gov does not give in to the blatent blackmail techniques being used by the large oil companies-especially the likes of Encana which peter lougheed had the wisdom and forsight to impliment (AEC) then Ralph comes along and literally gives it away to make himself look good. Stand firm Ed-Albertans such as myself are counting on you to implement the royalty Review Panels recomendations for the stability of our ecomomic well-being now and for the future of my Grand Children and future generations. Its not a Re-Newable Resource-when its gone so will the big oil companies be gone .Yours Truly,[Information Removed]
RRE2388 Take a page from Norway and provide for our citizens, our agriculture and our environment. Norway did not allow other countries bully her as Alberta has in the past. Don't you think the neighbors haave been expecting this?? A little late (60 years) but let's do it!! Increase roayalties!!
RRE2389 Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 10:46:26 DATE ENTERED {ts '2007-10-02 12:00:01'}
RRE2390 DATA FLAW IN ROYALTY REVIEW PAPER Two major differences between Alberta and other jurisdictions is the: BONUS PAYMENT & RENT FOR LAND NON TAX DEDUCTIBILITY OF ROYALTY PAYMENTS (except for the royalty tax credit of 25% less operation costs or less than 20% on average) These do not apply in many comparative jurisdictions, thus the report is flawed in terms of total government take. Higher royalties = lower bonus payments as the land value as declined Thus government take will not go up as fast as predicted in the report. Also our royalties are NON-tax deductible. Other jurisdictions do not tax phantom income not received. Therefore the true government take will increase more that the report suggests using marginal tax rate analysis. In fact after tax netbacks for high cost wells could go negative at high prices such as they did in the early 1980’s causing production to be shut down, and provinces to reduce royalties. Changes in royalties should make royalties tax deductible and eliminate the royalty tax credit to be fair. [Information Removed]
RRE2391 I have read the royalty review report and I find it one sided. A complete review should consider the impact of a change in royalties on the rate of return (ROR) on investments in Alberta Oil and gas Projects. CAPP has such a summary. Currently, the ROR for Alberta Projects rate dead last compared with other Provinical and country Oil and gas Projects. The ROR in Alberta is 12%. This is not an exciting number in the business community. Any change in royalties will dampen investment into the province. As of Friday morining Sept 28, Encana had announced a potential reduction of $1 Billion in its capital spending next year if the royalties change as per the report. This means layoffs of employees. Other companies will follow. I guess all of this means nothing to our government. [Information Removed]
RRE2392 Dear Honourable Ed Stelmach, Premier and Honourable Lyle Oberg, Finance Minister, Re: Alberta Royalty Review Panel Report Before implementing the current proposals, the Government needs to fully understand the impacts of proposed changes so that we do not stall investment which is the real driver of the prosperity of all Albertans. The Government should focus on encouraging the economy first and not taking more which will kill the hand that feeds it! The Oil and Gas industry invested $60 billion in the province in 2006. Look at the impact of taking that investment in the Province away and compare that with Government trying to take $2 billion to ineffectively distribute! Give your head a you really think the people of Alberta will be better off by killing $60 billion investment annually and offset that by you taking $2 billion more in? A key argument used in the report to support the recommendation to raise royalties significantly is the assertion that “government takes” elsewhere in the world are higher than in Alberta. But, this assertion is meaningless without comparing cost structures, well productivity, reserve sizes, and reinvestment levels. We’d love to have the resource base that some of these countries do……but we don’t! We have a resource that costs more and yet we get less per well than in most jurisdictions. You need to compare returns on capital employed to determine which jurisdictions provide the best returns for those investing the capital. A John S. Herold report shown in the National Sept 25, 2007 illustrates that returns in Canada are modest compared to many other jurisdictions, and in fact probably half of most jurisdictions. The ARRP report suggests that approximately 80% of gas wells will see reduced royalty payments if the recommendations are implemented. However, this would occur only if gas prices were to decrease to approximately $4 per mcf. At more current levels of $6.25 per mcf, the proposed royalty rates are all above the old ones. Today, with existing royalties on gas, rig utilization in Alberta is running at about 40%. If industry activity is already in decline in Alberta, higher royalties will only decrease activity further. In the US, where the industry is drilling similar prospects, rig utilization is approaching full capacity. The future of Alberta is largely in unconventional gas and oil (EOR and oilsands). These are high-cost, low productivity projects that require high prices to generate acceptable economic returns so that investment is encouraged. The recommendations in the report call for the government to receive a higher royalty rate on gross revenues without consideration to what it costs and the time to achieve payout for those who do the investment. Your proposal will render most of these as uneconomic and will thus stall the “Alberta Advantage”. If you carry through with this as proposed and without significant reduction, your Government record will likely stand with the NEP as significant events which killed investment in Alberta and hurt every Albertan as a result! Sincerely, [Information Removed]
RRE2393 A very short sighted report. Makes assumptions which are completely invalid. Why do we need change? Taking money out of the oilpatch will result in less royalties, income taxes, and jobs.
RRE2394 I am NOT in favour of any kind of changes to the oil & gas royalties. Frankly I am shocked. I would expect this from the Feds... but not from our own provincial government.
RRE2395 I believe that the Royalties are a form of theft by government on individuals and businesses. Nations with higher Royalties and taxes have generally lower standards of living. Humans should be served by government whose job should be to enforce the constitution and bill of rights and defend the nation. No one should be robbed or have there possessions redistributed by anyone. Governments who steal from people and businesses usually are of nations of little merit or worth. I will be ashamed of this province and the morality if its leadership if it allows the Royalties to go up by one penny! I will consider this government to be weak and a threat to our political liberty.
RRE2396 I am the owner and founder of a manufacturing business in Edmonton [Information Removed]. My business now employs [Information Removed], with the majority of our product sold and exported to the U.S. We are being hit with both the falling U.S. dollar and the overheated labour market in Edmonton that makes it extremely difficult to find enough people to sustain our manufacturing process. I can only hope that the threat of cutting back investment issued by the large oil companies comes true when our provincial government does the right thing and accepts the royalty review recommendations in full. The oil in the ground will still be there if we take it out a bit slower and the people moving to Alberta may decide to make Alberta their home instead of coming here to make the fast buck and then leave.
RRE2397 If the recommendations of this report are implemented without exclusions or further compromises, I will consider voting Conservative for the first time. The good work done by the Royalty Review should not be squandered. [Information Removed]
RRE2398 While I truly feel the oil companies are making a huge profit, increasing Royalty payments could potentially shut down many of the scheduled projects (Alberta's boom could bust as it did in the 80's). I would prefer to see legislation to action them to put more money into environmental recovery issues instead of the bandaid situation they currently have.
RRE2399 I am writing to voice my opinion on the Royalty Review recommendations and the possible increase in royalties paid by Alberta hyrocarbon producers. Firstly, I am directly employed by the oil industry. I am not management, I work in a technical capacity evaluating newly drilled wells. I work in Calgary [Information Removed]. The last few years have been incredably busy. I alone was responsible for spending in access of a million dollars in these areas. This money was spent testing newly drilled wells. In the last several months activity has slowed. This is due to the extreme difficulty in finding ecomomically viable new reserves. Many of our new wells are marginal and we are constantly trying to find new ways of extracting more gas from what would traditionally have been abandoned or shut in wells. This is incredibly difficult and expensive. On top of the huge difficulties of trying to make these wells make money (after all, if we can't our jobs will be in jeapardy), we are doing this at a time when the baby boom generation is retiring taking all their expertise with them. It is true, Oil Companies in the last few years have made incredible profits. Most of that was from wells drilled many years ago. We, today, don't have large easy oil and gas deposits waiting to be drilled. They have already been found and are depleating. Tomorrows reserves will be difficult to find and expensive to exploit. I do not believe the people of Alberta will be served by an increase in royalties. One of the biggest economic benefits we get from our hydrocarbons is vast employment. This direct and indirect employment is truly what we need. I have a good job, I invest in my community and have roots in Alberta. I have lived and worked through oil patch busts, they are devastating and you never forget. What the executives of the oil companies are saying is true, if we increase royalties in this province I and many other middle class, hard working Albertans will pay for it. Sincerely [Information Removed]
RRE2400 Dear Mr. Stelmach and MLA's, I'm pleading with you on behalf of all Albertans that have economic ties to the Oil & Gas industry (which is all of us, directly or indirectly), not to support the Panel's flawed Royalty Review in it's current form. Instead, ask your constituents if they want to live in an Alberta where thousands of their neighbours will lose their jobs, financial security, and confidence in a Tory government which they have supported for so many years. While the allure of addional funds directed to the government, being passed on it's citizens has resulted in support for the Review, it is my feeling that if the general public knew the true facts about the impact of the Royalty increase, they would most certainly think twice before supporting it. I'm calling on you to take a stand, ensure that all the facts are presented before these recommendations are allowed to be passed. Require that independent advisors be consulted to arbitrate over the situation. Review the report by TD Bank which confirms that the Panel's figures are flawed and that their recommendations will most certainly have devastating results for our economy. Please lead your fellow MLA's to do the right thing and get all the facts, from both sides (Oil & Gas companies included) before making a decision that will impact generations of Albertans. Your Fellow Albertan, [Information Removed]
RRE2401 I think a 2% increase is acceptable. I also know that with growing demand the percentage should increase gradually in a set time frame that would not surprise investors who are investing in Alberta. However, a larger increase would correct out of control inflation and bring service costs to a more acceptable level. That would bring consumers back to living within their means and help reduce their debt load. Tough decision I'm sure. Good luck.
RRE2402 This review is long overdue. I work in the industry and have seen the profits that are being taken out of our province and our country. I almost feel that maybe Chavez in Venezuela may have done the right thing. It's depressing to see our province and country kowtowing to the demands of big business and not the people. Yea, business will howl and cry, but they'll get over it and back to work in short order. DO THE RIGHT THING FOR THE PEOPLE!
RRE2403 I believe that the Gov't of Alberta should have a firm hold and control of its natural resources, the Oil sands being its biggest resources to the Provincial and Federal economy and by regulating the access to the private oil companies and having total revenue control would be best for the Province in both short and long term outlook.
RRE2404 Get on with it!
RRE2405 Our family lives in Calgary, and we support the findings of the royalty review panel. The policy must be that the resources belong first and foremost to people of Alberta and not to the developers. I understand that the economic engine of the oil and gas industry is not possible without the investment and foresight of commercial enterprise; however, there appears to be some sort of divine entitlement given to a business that finds oil or gas in the ground. That sort of “I found it, it’s mine” attitude, is not how a province can be run. These businesses seem to forget that to find and extract what they’ve located in the ground, they use roads that are publicly funded, schools that are publicly funded, healthcare that is publicly funded and many other types of infrastructure that is publicly funded. Resources found in Albertan soil belongs to the community, and must be purchased from that community before it can be used. I don’t blame the companies for trying to get more for less. I don’t blame them for announcing that disaster will strike the industry if costs go up. That’s their job. But it’s the governments job to see that Albertans are compensated fairly for the resources they are giving up. It’s your job to see that this is done the right way for ALL the people. You have to expect that the oil and gas companies are going to do everything that they can to push the government into some “half measured step”. Our family hopes the Government of Alberta does not bend to the ear of big business and implements the recommendations of the Royalty Review Panel completely. Thank you, [Information Removed]
RRE2406 Dear Premier and Government, I have yet to meet a voter that doesn't support the Hunter royalty review report. Please rest assurred that, as far as I can tell, the large majority of Voters support those recommendations. Adjustments for Grande Prairie natural gas etc. do not take away from the well laid out recommendations in total of this report. Any company pulling out of Alberta's opportunities should be met by our active courting of Chinese or Indian investment. That should wake them up pretty fast to the unique nature of the market for our resources. They are large, near the U.S. market, and in a stable country. We're behind you 100% Mr. Premier. [Information Removed]
RRE2407 Thanks for [Expletive] over my brother's company with the new royalty increases. Yeah, I'll sure be happy with the $2 rebate you'll probably give me for my "fair share." I see how well you've managed the other money you look after for me. I'll trust an oil executive over a politician any day.
RRE2408 I am gravely concerned that we are eliminating the competitive advantage that Alberta has fostered when competing for investment on the global energy front. I am not saying an increase is not warranted but this extreme increase is just not prudent in my opinion. Alberta has long beeen percieved as a great place to do business and seen in ternationally as a low political risk area to pursue business. If you take away that, it will be inevitable that investors get spooked and look for other places to invest. I am an advocate of an increase but a small one as I believe what is proposed could devastate this province and all we have achieved to this point. Caution is warranted in this regard as the potential unforseen downside could be catastrophic. This report, if adopted as proposed, would definately change my voting behaviour. [Information Removed]
RRE2409 Hmmm, lets see, someone decided to open a Rolls Royce dealership in Calgary, theres actually enough excess cash in the jeans to justify that, now, if we just build the roads so they can drive the cars. Cart before the horse I believe. Raise them. I'm not part of the gravy train that they are enjoying, and am sick of watching the select few have a great go, while the rest of us miss the "Alberta Advantage"
RRE2410 I belive that increasing the Royalties paid to the Province would be a negative. While it would add more cash to the provincial bank account in the short term there is no doubt in my mind that thelong term impacts would be job losses and opportunity losses for Albertans and Canadians as a whole due to the inevitable decrease in investment that would result from increased royalties.
RRE2411 I work in the oil industry, and this reminds me of the NEP did back in the early 80's. How can you possibly do a review, when you don't have or include all the information. Seismic costs, land costs, and cost of operation. Service companies have already laid off some of there staff. Gas prices are low and will probably remain that way through next year. It would be a huge mistake to implement the royalty review as is. I think there is room for negotiation, but to implement the review as is, there would be massive layoffs in the industry. The goverment should take it's time in it's decision and should not be rushed. This is too big a concern for a quick decision. Companies like Encana will look elsewhere to do business. There is too much at stake here, so be careful with your decision.
RRE2412 The proposed revisions to the royalty structure in Alberta are of significant concern to Albertans. In an era of high-cost, long-term investment in energy projects, coupled with significant R&D expense, increasing the “government take” is the last thing we should be considering. In 2006, land sale ($3 billion) and royalty ($11 billion) transactions made up more than 40% of the Alberta government revenues. Add to that the taxes paid by the industry (including service companies), the income taxes paid by employees involved in the sector, and the industry re-investment towards operating and capital projects in the province ($60 billion), it’s not hard to argue that oil & gas is the driving force behind the Alberta economy. As an employee in the sector, changes to the royalty structure could significantly impact my family’s well being. Given the thriving economy, we chose to move to Calgary 18 months ago to offer our children more educational and recreational opportunity, and solidify my career. Our living expenses have doubled given the cost of housing and services, while our family’s income has been slightly reduced since this move. With an overall increase in government take, from an industry that now requires a significant number of specialized business and technology inputs to find economically feasible projects and investments in the province, the impacts could likely mimic the early 1980’s when the federal Petroleum & Gas Revenue Tax was implemented. Many people lost their jobs and homes during that time, and if this occurs again I can confidently commit that I will no longer be a resident of Alberta. The current royalty regime was a collaborative development between industry and government to encourage long-term investment in high-cost ventures (i.e. unconventional gas (CBM & tight gas), oil sands, etc.), thus offering long-term growth and prosperity for our economy. Either this collaborative approach has been lost, or its goal was to bait extensive long-term investments into our province only to rob them later. The Government needs to fully understand the impacts of proposed changes so that we do not stall investment (i.e. $60 billion in 2006) which is the real driver of our prosperity and the “Alberta Advantage.”
RRE2413 I wrote a coment on this website last week, expecting to here a comment from the Government, in particulary Ed Stelmach, as I was asked to en ter my e-mail address. Obviously no one cares about my comments. As previously stated I am not Encana or Suncor. I am the little guy that you are trying to [Expletive]. My great grandparents homesteaded in Alberta. They didn't come from India or Saskatchewan, and you don't have the courtesy to even reply. I listened to Ed Stelmach's address this evening and learned nothing. If you come from somewhere else and have nothing , why should you have a share in my oil or gas rights.
RRE2414 The royalty review was probably required to determine where Alberta stands in relation to other areas worldwide, however, comparisions should not be made with other areas which have lower operations costs, lower cost of living, lower taxation than Canada, 4 seasons to work in, etc. My belief is that short term gain will be more than offset by long term pain. There are already too many people layed off in the last 18 months due to a slow-down in drilling activity due to low gas prices. If the new royalty regime is enacted, then there will be a significant number added to that number. Loss of high paying jobs results in depressing the housing market as more people no longer meet their mortgage payment, loss of tax revenue to the Government, and eventually a change in government which the reduction in activity is felt be a larger portion of the population. A solution and test of the new royalty rate could be done by grandfathering the existing facilities and production, and applying the new rates to go forward projects, and evaluate the industry response to the new rates which will determine if they're repressive or not. In the event I loose my job over these new royalty rates, my sentiments toward this government will change dramatically. AB government already receives their "fair share" and by calling the report "Fair Share" you are targeting those citizens who obviously don't work in the petroleum industry. In conclusion, I'm not against changing the royalty rates, however they should be phased in over time against new production and the government can evaluation their impact on our petroleum sector of the economy. Keep in mind that the rest of the country is also dependent on the oil industy and it's spinoffs. Regards
RRE2415 If the proposed revisions to the royalty rates are implemented as they stand right now the compnies involved will pack up their toys and head to B.C and the U.S..They're not " Blackmailing " us, They're Just stating the facts. Implement an increase but do it gradually and don't get greedy. If this comes down in the way it is, it'll be worse than in the 80's and, I for one ,do not want to go through that again !
RRE2416 I cannot believe that our government is doing this. Are you trying to put us into a recession again? I thought our representative were supposed to be smart. Here is what is going to happen: -Oil companies will stop investing in Alberta and go to invest in other countries. How many companies are already thinking about it? -Thousand of people are going to lose their job in the Oil Industries and many others -Other country will come and invest in our country and take over our Oil and Gas (Chinese Russia etc.). And I’m sure they will get a bargain from the government trying to get back some of the money they lost by their own stupidity. -People loosing their job will lose their houses, will stop buying all together, all industries will be affected, store, retails etc. Why is it that we are compare to other countries and specially the US? Really! Since when are we doing anything like the US? The US is certainly not a model for anything. Yes! They have to take money somewhere to fund their wars. How much money did you spend doing this report? How much spend in advertising, salary, etc. to try to get us to swallow it? If the government wants to go after and industry to get “the fair share” why don’t we go after insurance company? There’s a problem for you. I pay 4.98$ for my half liters of coffee at Starbuck, I pay 1.01$ for my liters of fuel. Now which one is easier to get? Want to do a research over that too. Maybe the government should get their fair share of the coffee industry too! I’m very unhappy with this proposal and would appreciate that MY government does not try to [Expletive] us over...again.
RRE2417 To, Premier Ed Stelmach, W Here comes my bull in a china shop observations. It would seem to me that the OIL Companies are somewhat Greedy. ( what big buisnesses are not) I could put a pretty long list here but I do not want writer's cramp and let's stay with the issue at hand. These companies invest billions of dollars in to our economy and they want grand rewards, True? In short but crude form, a Dog knows better than to bite the hand that feeds it. If these companies choose to pick up and leave Ab., it as You know will not be the 1st time, but it may be the last. Oil shortage, my butt ! If You follow these layed out tax guide lines, GOD HELP US ! , because in time, Oil will go as the way of coal and eventually the Dodo Bird.
RRE2418 The recommendations of the Panel should be put into effect without alterations, most especially in view of the Auditor General's report. Yes, this will cause a slowdown in the economic activity of the province but it is a slowdown that every municipality sorely needs. We all need breathing space. Companies involved in the oil sands will be the most affected; however, given the amount of water being used to extract this bitumen, a review is definitely warranted. People will come to realize very shortly that our most valuable asset is potable water and that pipelining water from the Athabasca to the arid lands of Southern Alberta makes much more sense than using it to produce petroleum energy resources for the United States. Most of the people with whom I have discussed this matter agree that it will take real courage by our existing provincial government to adopt the Panel's recommendations.
RRE2419 This nonrenewable should not be given to for profit international companies at discount prices. Royalties should be based on "what the market will bear". Anything less is either graft or stupidity, as opposed to financial wisdom. Use Norway as an example.
RRE2420 On a day that the price of oil reached an all time high there are press reports that suggest that Premier Stelmach feels that the industry is under seige and cannot stand the enactment of the entire royalty review. These companies were making less a few short years ago then they will make tomorrow if ALL of the rcommendations are enacted yet their gloom and doom songs have apparently found a recptive audience in the Premier's office. You'll lose my vote, and my families' votes, forever.
RRE2421 We deserve more royalties for our oil. The oil belongs to the citizens of Alberta and their children, not to the current government. The oil grows more valuable every year. We should increase the royalties to maximize our long term benefits, not our short-term profits.
RRE2422 Mr. Stelmach, Your revised royalty plan is ill conceived and comes at a horrible time. This action will precipitate billions of dollars in cutbacks that will have a horrible impact on our economy. If you must revisit the royalty situation, please include the industry. 2 billion spent by industry creates 10 billion in spinoff. You have got everyone talking, unfortunately you have created a huge distrust in your government and are likened to the Trudeau Liberals with their NEP. Since the population of Alberta did not elect you Premier why not run on this platform and see if you get a mandate. My guess is that your own party is turning against you already. If not, maybe it is time for a real conservative party in Alberta. Yours truly, [Information Removed]
RRE2423 I am worried that a decrease in Oil industry because of a increase in royalty will ripple through the whole economie and one by product will be a drastic decrease in property values that have grown in last few years this would put plenty of people on the street and a housing market crash. I think the goverment takes plenty in the way of income taxes on the wages of oil patch workers and the 20% increase in royalty's will be offset in a 20% reduction in monies earned by patch workers income taxes. please be careful yes heavy oil in strong but here in Grande Prairie we are in a serious slowdown and this could kill the economie here for years
RRE2424 Royalties should be tied percentage wise to income.
RRE2425 ARRP recommendations = lost jobs, lost consumer spending, falling home prices, vanishing investment, and LOWER ROYALTY REVENUES FOR GOVERNMENT. That's right. The $1.9 billion is a FALLACY!!!
RRE2426 These are our resourses that are being sold off at firesale royalty rates. Keep more of the returns from the depletion of our future resourses. Use the money to reduce the rising cost of living in this oil rich province. Put some money into the school systems, training for our workforce ( that is if young people choose to join the force while suffering under unfair labour relations laws}. If raising the rate causes a slowdown,let it be. And keep the unskilled,unsafe foriegn workers at home. Also the country may need more dollars in hand to help the last wave of Chinese worker apparently still in Vancouver seeking refugee status. Bring in some more to fill their jobs,and their dead working partners,so that the fire sale can continue at a faster rate? These companies are raping Alberta's system,doing everything in the book to hide behind the unfair Alberta Labour Laws,so as to reap profit at the expense of fair wages for their workers and a fair return to the Alberta public. Don't listen to big business weeping, Get a fair deal for Albertans!
RRE2427 Thank you for this opportunity to express my views on 'Our Fair Share.' I have given Alberta three sons who work in this Province and are raising their families here; and I want them, and their children, to enjoy a continued happy lifestyle in Alberta. A financially sound Province where they can work, play and be healthy adults. Of course I am for increasing our share - we need to keep pace with Texas, and not fall behind because of dated legislation. Full Speed Ahead, please!!!!!!!!!!!!!!!!!! Sincerely, [Information Removed]
RRE2428 I was born and raised in rural Alberta on a cattle farm. I truely love the province and would not consider moving anywhere else. I am currently employed with a small private oil and gas company. I just wanted to give a point of view from an average working Albertan. I feel that the average Albertan would be affected in a negative way if the RRP recommendations were brought in. If the Alberta economy slows down the average Albertan has the chance of losing his or her job. Lets face it everyone in Alberta is some how or some way related to oil and gas industry. If there was no oil and gas here there would be no people here so no economy. I feel that all Albertan are going to benefit more form a booming economy then they are going to benefit from the province taking more royalityes. How is the extra 2 billion dollars going to affect the average Albertan? It is not. No one knows what is going to happen if the royalites are increased but you have to ask yourself one question. Is it wortth the risk for the average voting Albertan? The answer is no.
RRE2429 i find it sad the the continuous greed of the alberta goverment could dictate the end of our streets paved with gold economic boom. without the investments to continue oil and gas production, it is possible the trickle down affect throughout our entire provincial economy could be devistating. i sincerely hope the goverment of alberta has a counter option to sustain our economic growth once the investors are gone. and by the way, i am a native albertan and have NEVER considered myself an owner of our natural resources. as anyone with a pair of eye glasses can read, my land title for my home excludes mineral rights. sincerely, [Information Removed]
RRE2430 I'm trying to get an understanding of how the proposed royalty would work. The current price environment for oil is in excess of $400 per m3 therefore the price component of an oil royalty is set at 35%. If a well produces 1 m3 per day, the quantity component would be -20% for a net royaly of 15%. Is this correct? The average well in Alberta @ 18 barrels per day is 2.9 m3 per day. The proposed royalty would be work out to about 30%. I don't believe the royalty panels assertion that 57% of oil wells would be subject to lower royalties under the proposed scheme. If their assertion hinges on $50 per barrel oil, that price hasn't been seen in over a year. Have I misinterpreted something and are my calculations correct? Thankyou
RRE2431 To Whom It May Concern: Your proposed royalty increase is an action by you to gather more money at a time when all signs are showing a slow down in the energy sector in Alberta. In today's Regina's Leader Post it says that government bookkeepping incompetence as cost the government over 1.5 billion dollars in lost revenue. I would suggest tat rather then taking such a draconian approach the government should do a better job in long and short term planning as to how to spend the income they now have. Sound fiscal planning and spending will eliminate the need to try and get more money from a sector that is the backbone of the province. Thank You
RRE2432 I will not vote for this party ever again if this is put through as it reads today! My entire business is service compnay that relies on Deep Gas in the [Information Removed].
RRE2433 Thank you for the opportunity to provide feedback on this important issue. I cannot appreciate the difficult position that the elected officials of this province have now found themselves in. The pressure associated with making simple financial decisions for oneself can be quite daunting at times. I can only imagine the stress associated with making a monumental economic decision that could affect miilions of citizens. However, I do ask that the members of the legislative assembly of Alberta steel themselves as they enter into their most serious deliberations concerning the issue of resource royalties. As the child of a former oil industry worker, I must say that I deeply appreciate the openness of the Alberta Government and the willingness of the petroleum industry to facilitate employment and resource development to the benefit of many. The economic benefits of this sector cannot, and should not, be underestimated. Yet, these same economic benefits appear to have been curtailed by a royalty system that has not changed with the times. Other jurisdictions in the world have far more lucrative royalty strategies, which have injected much needed capital into the public coffers, and have not negatively impacted exploration and development. The current comments made by representatives of the petroleum industry (and some MLAs) comparing any suggestion of royalty increases to the conditions in Venezuela are disingenuous and inflamatory. At any moment, I do expect the ugly spectre of the National Energy Program to raise its loathsome head through various media and editorial. I am asking that the elected officials of this province keep their heads above such rhetoric and embrace the facts as presented. I would encourage the members of the legislative assembly of the province of Alberta to increase resource royalties to reflect the current development situation. The global need for oil is tremendous and every estimation predicts that this situation will not change anytime soon. With the desperate need of urban municipalities for infrastructure funding, provincial school boards for education funding, and health regions for care funding, the provincial cabinet members would demonstrate great wisdom and forethought in increasing royalty rates as per the Royalty Review Panel report. Once again, thank you for this opportunity to participate in this process. [Information Removed]
RRE2434 Royalties should be increased. Any talk of slowdown in the oil sands is just scare mongering. Simply put, there is no other region in the world with so much reserves. Companies will have no choice but to invest there if they still want to be in the game. These resources belong to Albertans and they have been shortchanged for a long time. It is time the Alberta Government showed some courage and take the bull by its horns. Increase the royalties without any delay.
RRE2435 Finaly Alberta Gov is taking bold steps, tand raising royalty .t
RRE2436 We are headed into difficult times. GAS drives this province NOT OIL. The rural communities will be hit harder than most because of their reliance on few opportunities. Oil co's have done a poor job at making people aware of how the business is conducted - I even find my own family misunderstands the economic dynamic that operates. So you plan to hit the big guys with the deep pockets. Watch them ship out their cash to Angola or Venezeula after all the panel seems to belive these places are like us???? Watch your farming buddies wilt Ed. No acivity, no cash, no royalty. I voted conservative for a reason. This is a liberal idea! It is also pushed by a life -long forestry "consultant" that is bigger (ego) than the report itself. I have read the report - It is highly opinionated, like my response here. The difference is that I have been in the O& G business 30 yrs in various capacities - Forestry management wasn't one of them. Get the personal mission out of the fair share report.
RRE2437 I believe the review was fair balanced, and accurate. The posturing presented by the oil companies is only natural due to their reluctance to paying more money. I wish to see the reccomendations of the report implemented fully. However, a phase in period would be acceptable.
RRE2438 I believe the review is long overdue! Royalties should be adjusted and reflect a percentage closer to the rest of the world (ie.: Norway). We should take a page out of Newfoundland's Premier Danny Williams book who stood up to the oil companies on behalf of his provice and its people. Oil and gas are non-renewable resources and once they're gone, no oil company will contribute a penny to Alberta. I hope Premier Stelmach will stand up for what's good for Alberta and not for what's good for the oil & gas companies. There is no way these companies willl pull out or slow down. Even if some did, there are enough waiting in the wings to pick up the "slack".
RRE2439 I sincerely hope Premier Stelmach implements the entire recommendations in the Royalty Review report. If he does, I predict he will be re-elected with a large majority and go on to be premier for a long time.
RRE2440 Mr. Stelmach I would like to share my concerns about the recent Royalty Review Report. I have worked in the Oil & Gas Industry for the past 14 years and now support a family of 5, this industry has been fairly stable for the entirety of my career and with this new tax structure I am affraid that this is all about to change. I can only hope that the Government has the foresight to see that working with the Oil companies has much more benefit than bullying them into a whole new set of rules (some of which will break contracts that are already in place, but that's another story) Please do not force another National Energy Policy type of taxation upon this industry. My family and many others depend upon this industry for out livelyhoods
RRE2441 The government of Alberta must show resolve and fully implement Our Fair Share Royalty Review Report. It and the Auditor Generals report are very clear. The Hon Ed Stelmach government musy do this. It is also high time the government laid the blame for not doing this on R Klein who had the province on "Auto Pilot" for more than thrre years of lost revenues to Albertans. Adopt and imlement the reoprt as a whole as it was intended, Sincerely [Information Removed]
RRE2442 For all the Albertans who want higher Royalties are simply greedy pigs/We have the best province in Canada and everybody is working flat out and making money in the province of Alberta. Now if the Greedy Government takes more Royalties how many Albertans will loose there jobs and homes. So all you greedy politians better thing twice before you raise royalties for government coffer. The Heritage Fund is a joke anyways as the money will never go to the people anyways. Thankyou
RRE2443 My impression of the review is that it is quite conservative leaving room for substantial profits by industry . The comparisons with other jurisdictions all show it being less not more at the ned of the day . This ignores the primary Alberta advantages . We have a stable democratic government ; english based with no record of war or natural disasters to destroy or shut down operations. In any other business this would warrant a premium price for stability and location to the primary customers . In short the risk is small . Albertans cannot be afraid of reduced investment when we are presently operating way above our sustainable capacities . Unless there is miracle invention around the corner the commodity will not go out of fashion . Reaping benefits from our resources over a longer span is not a bad thing . Only those making incredible profits want to expedite the liquidation in case we wake up to the poor management of our natural non-renewable resources. As the Premiere indicated take a deep breath and get what we need for our future Albertans . Don't water down the recommendations and even consider more intense scrutiny of the values that should be returned.
RRE2444 I think alberta goverment should leave as is. The oil patch is slow right now. This will make cut backs a lot worse and put even more people out of work. For what people have gained over the last 5 years they could lose everything to the banks. The goverment end up paying out for welfare. Thanks
RRE2445 It's about time the oil companies paid there fair share. Most oil companies are owned by NON Canadian's. Why are we giving them the breaks. Let's keep the money here where we can help out out own people. It's sickening to see how much these oil executives get paid. If proper royalty payments will break the oil company then maybe the executive will have to take a paycut. Put the money back into the roads, and hospitals that can't take anymore oilfield growth.
RRE2446 I am a resident of Strathmore and strong supporter of the Conservative Party. The issues raised buy the Royalty Review Panel is certainly top of mind. There has been a significant amount of discussion on the topic from the oil companies and response to those veiled innuendo's. I am worried about the potential impact to the Alberta economy and to the Residents of the Province, if a radical increase in royalty fees is initiated. In thinking this through, I do have a line of sight proposal for consideration. 1) Introduce a stepped program to increase royalties by 1% per year, until the level is equal to a proper ratio comparative to other regions in the world. 2) Introduce a credit incentive program for the oil and gas companies if they choose to invest in Alberta communities. For every dollar that they spend directly on local infrastructure, it becomes a credit against the royalty amount to be collected. (Example - A company builds a swimming pool for the community, and arena for the community, a road for the use of members of the community. The full expenditure can claimed in that year, or if amortized, the prorated credit can be applied up to five years 3) Extend the credit incentive program to include investment in hospitals, health care, education and infrastructure within the Province Please review this suggestion, and if in your opinion it has merit, please table it for discussion.. I am not involved within the oil and gas industry, but am very involved in the Province of Alberta. Please drop a quick confirmation to confirm receipt of this email Sincerely [Information Removed]
RRE2447 What does the government plan to do with another 2 billion dollars? their only plans seem to be to spend money, so the more they get, the more they spend. Much of the spending is on non essential items and catering to special interest groups that, were there not billions of dollars being spent, would have to survive on their own. Until the government is prepared to return most of the extra royalties to the people of alberta, they should not antagonize the industry, and they should leave the royalties alone. the government can\t use the money it has wisely, so why collect more?
RRE2448 I am an employee of a service company in the oil industry in Northern Alberta. It is of great concern to me, my family, co-workers and others how the matter of the Royalty Review Report is handled by the Alberta Government. It could be very devastating to us all if the industry takes a major hit such as this. It must be considered, for the sake of ALL Albertans, how far this could set our province back (does the 80's ring a bell?) if a 20% increase in royalties is implemented. We actually fear for our jobs, our livelihoods - what will we do if the oil industry takes a major fall? Will we lose our jobs, our homes, will our families suffer? I have a teenage daughter in college - will I be able to support her if I lose my job? These are all valid concerns that we, working Albertans, have regarding the decision that our Government is going to make - please consider the long-term effects this could have on all of us. Thank you for your time.
RRE2449 I am very disappointed in the Alberta Governments proposed Royalty changes in the energy sector. There is no doubt tha if this chnge goes through, thousands of people will eventually be without jobs. Alberta's economy will falter as companies take their business elsewhere where such extreme royalty and tax laws do not exist. I am fearful for my job if this proposed change goes through, as are many of my collegues in this industry. I don't think I am alone when I forsee protests in the streets of Edmonton and Calgary by energy workers. Even though I am not old enough to remember the crisis of the National Energy Program, I studied it and this seems so oddly reminiscent of that disaster. Does the government not learn from its past mistakes? Obviously not. I really hope it is not too late and we can throw out this proposal before it is brought into action. People will end up on the streets and a recession in this province will be iminnent. All industry in the province is affected by the energy industry and the effects will trickle down into every community and industry in this province. God help us all if we don't revoke this idiotic proposal by OUR supposed energy minister. More like self sabotage minister. Ridiculous.
RRE2450 BRING BACK RALPH!!! LONG LIVE THE KING!!! Get rid of Stelmach.
RRE2451 I have been following the ongoing debate about the Royalty review in the papers and on the news and I am very concerned about what I am reading and seeing. Through out the discussion I keep hearing the comment that with the increase in royalties we will remain competitive with the rest of the world. My only question is why would we want to be merely competitive why not try to be better then anywhere else what is wrong with that? When a company is deciding to invest in oil and gas anywhere in the world why make the decision difficult for them we should be striving to be the most lucrative place to invest that I think is in the best interests of all Albertans not some short term increase in royalty returns that eventually scares away investment. My other concern is in what I do not hear being discussed. Unless I am mistaken the Alberta government’s largest source of revenue is income tax not oil and gas royalty payments. It strikes me as a bit shortsighted to increase the lesser portion of the revenue stream while threatening the larger portion of it. Taken as a stand alone issue I do not think that this Royalty review would as big of an issue but in combination with the current labour shortages, the First Nations land claims, and the ongoing threat of carbon sanctions I think we stand the very real chance of undermining the investment environment we have worked so hard to build in this province. In closing, while I think we have already done a little damage to our reputation as a safe reliable area of investment I do not think the damage is permanent. What is needed now is strong decisive action that says the investment community, Alberta is the most stable reliable and profibable place to invest your money. That is the Alberta Advantage.
RRE2452 I feel compelled to respond to Alberta’s Royalty Review report that has the oil/gas community’s ear. One real problem with the report is the facts are wrong, way wrong. The consequences on city’s like G.P., Red Deer, Camrose could be catastrophic if the report is adopted as presented. The real concern here is if gas is subject to an increased royalty hike gas drilling will be slowed to a crawl. Tens of thousands of jobs will be lost, and our province will be thrown into a major recession. Rigs will be going into Saskatchewan or worse yet into the U.S. Many smaller oil and gas companies will cease to exist. Their stock since the report was sent out has dropped 25%. This is not to mention they were already at 52 week lows, due to commodity price of gas. In 1998 our industry went into a similar tailspin however it was strictly commodity driven. This could be far worse.
RRE2453 One can expect the oil companies to do a lot of sabre rattling, but hold the course! We're prepared to take a financial hit to gain some stability in our lives. [Information Removed]
RRE2454 I think there is a balance that can be achieved. In other words, don't side with the oilpatch 100% (i.e no hike in the royalties) and also don't side 100% with the study (and hike the royalties to the degree called for). Albertans are entitled to fair compensation, however, if we hike royalties to the degree indicated in the report, and drilling etc. does dry up, all Albertans will face a much bigger issue - job losses in large quantity. Unfortunately, this province is still not indistry diverse enough to withstand such a negative action.
RRE2455 Way to go Ed. Don't worry, the oil company will stay & come back as long as the profit is still there.
RRE2456 I am very concerned about the recent messages that have been coming out of the legislative building. Not only do we as Albertans have an outdated royalty system, which doesn't reflect the true market value of our non renewable natural resources, the AG report is even more mind boggling. Then on top of this oil companies are complain about the high cost of doing business in Alberta and that this is the main reason royalties can not and should not go up. This argument is ridiculous as it is these large companies that have driven the cost of doing business in our home up way beyond the means of average Albertans. Premier Stelmach, I voted for you during the PC leadership convention because I thought you would be transparent with us as Albertans, and would make decisive positive decision without being pushed around by the business or Calgary lobby. I am extremely disappointed by the recent conduct of the government in the past 10 months. Especially your own comments at a business lunch in Calgary where you said ""will not trounce existing agreements" [on royalties]. Have the backbone to stand up to these companies and lets slow down the economic growth in Alberta to manageable mean, because as many people I talk to feel that we are on the path toward unsustainable economic growth. This is your responsibility and I hope to hear a change of attitude from you and your caucus colleges.
RRE2457 Caution! Make sure you keep the economy going and do not do what is popular but what is right. Remember Klein did the same in ’93 and came out as a winner. If this government destroys the economy, it will go down as the biggest looser in history of Alberta! People will blame the government if things turn out sour and the consequence will be drastic. Sincerely, [Information Removed]
RRE2458 I think that the royalties should be increaed 20% to reflect appropriate royalty levels. I do not agree with further discussion or analysis into the numbers - the whole point of the inquiry was to discuss and analyze the situation. They have accomplished this and their findings should be respected. This is an important time for Alberta's relationship with big energy corporations. Will the government stand up for what is an appropriate royalty payment for the use of natural resources that belong to Albertans, or will big oil push around Alberta like they do in many other places in the world. There is always a demand for oil and if these multi-billion dollar companies like Exxon want to pull out of Alberta, some one else will gladly take their place.
RRE2459 If the Alberta Government takes another $2 billion in royalties from the oil compampanies, then the oil companies will have $2 billion less to invest in Alberta. This will likely mean fewer jobs and one of those jobs may mean my own. I may be laid off just like the many employees in the oil and gas service industry who have recently been laid off already.
RRE2460 Alberta's economy was doing very well, but after a very long spring break up and a wet summer, any one working in the industry knows how volatile it can be. I think it would be detrimental to growth and prosperity for Alberta if the government is too quick implementing any changes at this time.
RRE2461 With regards to conventional oil and gas,Alberta is already one of the most highest cost drilling and completion cost environments in the world. The propose royalties will only result in exploration capital being channelled to other countries. Pertaining to the oilsands, a lot of capital has been spent and is in the planning stages. It is unfair to change the rules in the middle of the game. However that being said, there could be a better mechanism, whereby the royalies are index to oil prices. As the oil price increase the royalies increase. Just be prepared to share the down in a $25 oil environment. If the propose changes are implemented, you will have put the final nail in the Alberta Advantage. I will tear up my Conservative Membership, and never vote again for the Conservatives.
RRE2462 If such Royalty was implemented, it would cripple the oil and gas industry. 1 out of every 6 people is connected to the oil and gas industry. Why would the gov't bite the hand that feeds you. Do we not get taxed enough? Taxes where put in place to help fund a war. This war is now over, but taxes, royalites etc insist on going up. Remeber the NEP. That ruined the Oil and gas industry and it was years before we recovered. The recession in the USA is going to effect us in some way shape or form. Why add to this. I hope when I declared my vote for Ed, it was not a big mistake. I am a single mother of 3 daughters. I work very hard within my Oil and Gas company. I need this job to support my children, watch them grow and then send them to University or College, so they may contribute to society. Why put all of us and our families at risk. Sincerely, Janet Harvey
RRE2463 Re: Royalty Review Report I am very worried about the panel's recommendation recently put out. I understand we can 'charge more' than other countries given our proximity to the US and 'political balance' (not so sure now? trusts and now this). However, third world countries, well actually, almost ANY other country has a much bigger and CHEAPER labour pool than Alberta. We are stretched very thin as it is. Gas is near the lows as it is. I don't necessarily disagree we need to adjust to a point, but the drastic swing you are proposing simply scares me. And it doesn't give outside investors confidence, already after they're getting over the Trust changes. We have a great province and a good thing going, lets not look back in 5 years and say "Wow, Alberta was really humming along before that, now they're the classic business-school case of what NOT TO DO". Government should stay as far away as they can from business, please don't mess this up too. My wife and I live in Calgary and planned to for a long time. We hope if this goes through this isn't the beginning of the end. [Information Removed]
RRE2464 If it ain't broke, don't fix it. One good turn deserves another.
RRE2465 I would very much like to see that money still being invested and growing as much each year as it can. I would also like to see some of the money used for the shools in our province. The ones that are older and in need of some serious renovations. One priority that we should really consider are our schools in this province. We should be able to take some of the Heritage money and fix some of them up. We need those schools for our future. Thank you [Information Removed] - Red Deer
RRE2466 PLEASE... take into consideration that by jeopradizing our oil industry in this province you will harm every single Albertan for years to come. The report wants to take money out of the private sector and filter it into the government coffers, I highly doubt that the government will be able to sustain our economy at the level it is at. Filtering this money out of industry and into the public sector is absolutely the wrong thing to do. Our province is in very sound economic health, and the oil companies not only serve our communities through various charities and philanthropic endeavors, they employ a very large section of our workforce, and the trickle down effect of an economic crash in this province will be devastating. Does anyone remember the early 1980's? Our family lost their home... Mr. Stelmach... this is political suicide, the farmers are not where the money is at, the oil patch is. If you want happy healthy farmers, then support your primary industry, and the money will continue to flow freely throughout our entire province. Laissez-Faire... That is how Alberta was built, and that is why we are the strongest province in the nation. The slowdown in our oil patch is already starting, my husband has been out of work for 6 months, and has had to seek employment overseas, along with FIVE of our friends... be very careful, this trend may not be reversible.
RRE2467 You have got yourself and Albertans in a helluva mess. The tone and substance of the report is that the Oil Industry has been ripping off the people of Alberta complements of the Gov't of Alberta. The majority of the people of Alberta believe this now and as the US Senators told the oil industry execs prior to the energy crises, "If I am not seen as trying to hurt the oil industry I won't be re-elected." The fact is the report misses the point that an attractive investment climate brings in considerable more moneys to Alberta that a few percentage points of royalty can ever bring in. Also, where was the advice to the government that changing the tax regime negatively to the investor always leads to reduced investor confidence? As an air service provider, my business depends on high oil sands investment activity - I have invested my lifetime earnings into my business. A downturn could bankrupt me. Please don't turn me into an NDP looking for a handout.
RRE2468 I am extremely OPPOSED to the recent proposal to change Alberta's royalty structure. It is very clear that Stelmach, as well as the average Alberta citizen, has no clue as to the negative consequences that will prevail if this review is accepted. I believe that the government is banking on the general naivety of the average Albertan citizen by asking them if they would like more money in their pockets. Of course the anser will be yes, but that is only becaue they do not clearly understand the impact and that "more" will actually be less when all is said and done. The average Albertan, and obviously our government as well, do not understand the cost structure (among other things) of the oil industry and are not in a position to comment. All the people want is the government to put more money in their pockets. These are people who trust our government (and probably shouldn't) and believe their governement when they say it will be better for Albertans. They do not understand that this will clearly NOT be the case because the government has done a good job of hiding the negative effects and incompleteness of this review. Shame on you Mr. Stelmach!! You likely won't be around to pick up the pieces when they start to fall. It is your job to listen to ALL Albertans, and that would also include the Oil and Gas Industry. Stop thinking of the Industry's negative response as "bully" tactics. This is your way of ignoring the valid points that they have to say. They are not trying to bully you, they are trying to educate you before your government makes yet another mistake that takes another 2 billion out of our pockets. I urge you to take a second look at this!! You are playing with the economy, please don't [Expletive] it up anymore than Harper and his sidekick, Flaherty did.
RRE2469 I have been employed in the oil patch for 26 years. I have been through the up and down cylces based of of supply and demand. What I see here is a government shooting itself in the foot.
RRE2470 Hello: Most people have been expecting the Oil and Natural Gas Corporations to eventually threaten us. The Media have been saying the scare tactic was to be expected. I would hope the Premier does'nt blink. They had their chance to present their side at the hearings and were even given a second chance after the fact, which in the eyes of many was unfair and unbalanced. Anything short of the Review Panels recomendations will project the image of a Premier who lacks leadership qualities. Recent surveys are overwhelmingly on the Premiers side .....if he proceeds with the Panels Recomendations. What could be more Politicaly Expedient ? We all know the Oil Companies would do anything for oil. Please encourage our Premier to do the right thing, for the province and himself. Thank You [Information Removed] Calgary
RRE2471 [Information Removed] are you thinking. If your goal is to take a red hot economy and flush it down the toilet you are on the right track with your new policies. I am truely disappointed.
RRE2472 I support the idea to increare the royalties. If the oil companies want to move to other places to explore oil. Let them. The resource will not go away
RRE2473 I agree that the Oil Sands/Heavy Oil royalty regimes are outdated and need to be brought into the new paradigm of $70/bbl oil. I also agree that the administration is a nightmare that needs to be simplified. However, the increase in royalties to the conventional oil and gas explorers will have an immediate and wide-reaching impact on Albertans that I do not think is reflected in the report. It will not be "business as usual" with the proposed regime, drilling and land sale activity will be cut back drastically from it's already reduced levels. Investment Capital is the most mobile portion of the business equation in oil/gas exploration. If one province/country has more attractive terms than others (higher ROR and lower risks), then the capital moves there and leaves the less attractive regime. We need to have better full cycle economic comparisons of conventional oil and gas exploration with other regimes (didn't see Sask or BC?) including an analysis of other critical factors such as capital costs, reserve size, productivity and overall economics. Just saying we aren't getting the same percentage doesn't spell out the full impact. If royalties are raised to the levels proposed for conventional oil/gas, it will greatly reduce the exploraion capital spent in this province on that sector (the exploration wells target the "higher" productivity wells that are proposed to have the greatest royalty increase). That will have an effect on government revenues and, more importantly, every community that has businesses supported by oil & gas industry spending (everything from hotels & restaurants to backhoes and construction workers). Be very careful to understand the financial (and subsequently political) implications of increasing royalties. The most active natural gas drilling in North America right now is for "tight gas" in the Rocky Mountain region of the US. Their costs to drill are approximately 30-40% less than in Alberta (they don't have an Oil Sands industry competing for labor and equipment) and their recoverable reserves are higher per well due to the fact their basin is less mature in development. Pushing our economics further from those that are already better than ours will definitely move capital to BC, Sask and south of the border. Response is only necessary if you require any clarification. Thank-you [Information Removed]
RRE2474 The review of royaltys recomendations should be immediatly implemented by all government departments. Consulting with the "industry " is not necessary. The royalty increase is very fair and considered very moderate when compared to other jurisdictions. [Information Removed]
RRE2475 I think the Royalty review is the oil and gas industry.
RRE2476 Implement the Report - or resign and refund to the tax payer the money that has been wasted on this entire exercise.
RRE2477 As a resident of Alberta for over 30 years, we went through the Federal NEP Trudeau senario and do not wish to revisit those depressant times. Everything is hinged on the oil industry, if layoffs occur then unemployment will cost us more. We now have a great tax base, lets keep on trucking. If we do need more Royalties then lets do it slowly 1-3 % per year until we reach our cap.New companies, new explorations, well testing-give the companies a break 1-3 years until they start to make money- don't tax them on a dry hole. I think we will get more from the oil companies if we create a tax deductable refund to them based upon them donating money to hospitals, cancer clinics, schools, and other capital cost projects as an incentive program that would be spelled out to them in lieu of Royalty increase, that if they do not donate the money back then the hammer is to increase Royalty fees. I also think alot of investors,pensioners etc. would be hurt by a heavy Royalty increase having a domino effect right down to the disadvantaged citizens.
RRE2478 The recomendations supplied by the royalty review panel are outrageous. This province was decimated by the NEP. I survived by going to Saskatchewan to work. It now seems the Alberta government wants to rape the industry and send me to work in Sask. again. Oil and Gas Royalties are not rent. They are payment for a resource after payment for exploration rights and millions of dollars of initial investment. If I rented you my farm land I would recieve 1 third of the crop in land rental. Your Up front cost would be the seed etc. You would not pay for the right to have a look to see if there was crop land there. Implementation of this report in its entirety would make us no better than any third world tinpot dictatorship. I was born in Alberta and worked here most of my career. This current report is the most greed driven money grab I have wittnessed short of crap out of Ottawa in 53 years.
RRE2479 All natural resources should be considered as a trust fund for all Albertans and the government has done a shameful job of managing and accounting for the non-renewable resource of oil and gas. Please accept the recommendations of the Royalty Review and please do not listen to the fear mongering of the big oil companies who have had it their way for far too long. We actually need things to slow down in this province. We especially need faith that our government is capable of managing things properly and the auditor general's report clearly shows the opposite has been happening. Please get it right!
RRE2480 Mr Premier, I am concerned that if the Stelmach government adopts the Alberta Royalty Review Panel's recommendations it will no longer be economically viable for oil and gas companies to do business in the heavy oil area serviced by St. Paul residents. The conventional heavy oil wells will be the first to be shut in because of the high cost to produce them. This will cost us, especially in St. Paul because the Lakeland area will be affected the most by a royalty increase. Within a very short period of time, we will see bankruptcies, mortgage foreclosures and job losses. Will the royalty increase be worth the consequences if you've lost your retirement savings, your family member, friend or neighbor has lost their job and your house in St. Paul is now worth half the value. I am extremely concerned for my family and my future. I am also concerned about those I work with: contractors, friends, neighbors, the community, and every other Albertan if the Panel's recommendations are adopted. The damage has already been done for 2008. The uncertainty caused by the Stelmach government has occured at the worst possible time, while companies are finalizing their winter drilling programs. My largest client (one of the largest producers in the province) just anounced today to its employees and contractors that it will be rolling back just about every department by 60% for 2008. Hopefully next year is just a bump in the road and not the beginning of the end. Please get it right. Don't accept the Panel's recommendations. If changes are needed to the royalty structure then further consultation is required to strike the right balance. [Information Removed]
RRE2481 Go for 10%. We should be on par with the U.S..
RRE2482 While royalty review is a good step and means a lot for Alberta and us (Albertans), both oil patch and government should negotiate without killing the current economic vibe. If we Albertans could wait so many years, why not negotiate with the involved party (i.e., oil industryt) for a few weeks? I strongly feel that unneccessary rush without negotiation may raise questions in the years to come.
RRE2483 I believe very strongly that extensive royalties need to be charged of oil companies so that civil society can maintain the kind of social and physical infrastructure that are required to accompany economic development., and provide for a future that extends far beyond resource exploitation. Do not be swayed by corporate smoke screen scare tactics. The oil has enormous worth, and those who have the will to develop it responsibly, and contribute to a wholesome society at the same time will not be scared away.
RRE2484 Dear Sir/Madam; Through inaction of the government, we already see a decline in engineering and construction work. Companies are citing the royalty review as reason. Our small company is trying to keep the employees busy, but by December lay-offs are iminent. We are waiting for wise leadership, please provide that ASAP.
RRE2485 The Government of Alberta, as the representative of the citizens of the Province, has a duty to ensure that provincial natural resources are used to the benefit and advantage of the citizenry. Clearly, this review is long overdue and the Government must act upon it by adopting the panel's recommendations in full. Even after adopting all the panel's recommendations, Alberta oil is a bargain and development will continue. Threats from the industry must not be heeded before the will of the electorate.
RRE2486 A serious look needs to be taken at the basic assumptions within the report. When the independant investment bankers are saying that there are serious errors in it then someone needs to take notice. Also, a total look at all levels of fees needs to be included such as fees and rentals paid for surface and mineral leases, property taxes, as well as how much is paid in freehold royalties. In addition, there is a tremendous misunderstanding as to what is done with oil company profits. They do not stay with the company but are reinvested in new and current projects creating new jobs and growing the economy which results in higher revenue for the government in the form of income taxes. In addition, Albertans benefit with the weath of high paying jobs to choose from as well as from the level of support that oil companies provide in the communities in which they operate. Do we really want the investment to shift to BC, SK and the US? I don't think so. It will impact Edmonton and rural Alberta far more than it will impact Calgary. [Information Removed]
RRE2487 Stelmach, Don't be a spineless fool- adopt all royalty report recommendations in their entirety. BTW, you may want to reconsider the lack of funding provided to Edmonton. Who the hell could of thought up such a ludicrous system???? I don't know why I'm wasting my time, you'll be flipping burgers after the next election.
RRE2488 We were delighted with the Royalty Review Panel's final report and we feel that the report should be adopted in it's entirety. The report is unbiased, accurate and well thought out. Anything less than full adoption of the report would be cheating the rightful owners of these nonrenewable resources. Why would we settle for anything less when even small countries like Norway have a much fairer royalty system as do even states like Texas to name a few who receive more equitable shares than we do. Any scare mongering by those with a opposing views is just repugnant and self serving. Please do the right thing and adopt the report as written by the unbiased and competent group that wrote it. Thank you. [Information Removed] .
RRE2489 Mr. Premier: I wish to applaud your action on commissioning the Royalty Review, and hope that you follow through on many of it's recommendations, for far too long, big oil has gotten a free ride in Alberta. Two billion dollars, the amount being thrown around could be put to use today or saved for future generations, through the Heritage Fund. This is not only our money Mr. Premier, this is the money of our future.
RRE2490 The recommended royalty changes should not be implemented as the royalty review panel suggests. The strong economic stability within Alberta will be jeprodized. I believe that the loss of jobs, and loss of money back into the economy will completely diminish any gains achieved by increasing the panels current plan. *I'm not saying don't make changes, or increases to the royalties, but do so wisely and take into consideration independent reports (i.e. [Information Removed]Assessment).
RRE2491 I suggest that the Government of Alberta take a very careful review of the implications of implementing the recommendations of the RRP. My personal view is that the "ripple effect" of significantly reduced energy investment in this province will dramatically affect the number of jobs and small business such as my own. I suggest that the Government of Alberta look at means to introduce these changes gradually and to listen to the people who will be affected by these recommendations not just those who make them.
RRE2492 I have not heard any mention about the other costs that producers face, but they go directly to the government in some way. Certain wells have to be cored when drilling as required by the EUB, many wells need pressure surveys done for the EUB, water gas and oil samples must be done and submitted to the EUB and the list goes on. I also wonder where the money would go if royalties were increased. I believe we are better off with jobs for almost everyone and having the money spin off this way rather than increase royalties and put more people on employment insurance. Thank you.
RRE2493 Unfortunately, the government's decision to appoint a panel to review the oil & gas royalty regime in Alberta, who have no direct energy experience, are using dated and flawed information and have a pro-conceived bias towards the industry, has resulted in a recommendation that, if implemented, will have tragic consequences for the industry that is the life-blood of the Alberta economy. If the intention of the recommendation is to add additonal royalty revenues into the coffers of Alberta treasury, they will fail miserably because there will be far less production for the royalties to be applied to in the first place. The new recommended royalty structure will severly curtail exploration activity in the province, particulary for deep, conventional gas. When production declines, gas prices will increase, which will mean additional royalties and the cycle begins again. I sincerely hope that the government of Alberta is not even considering implementing the recommendations of this panel. If they do, they will ruin the industry that brought us to properity and will soon be the government no more! [Information Removed]
RRE2494 Albertans are already and have been for years benefiting directly and indirectly because of the oil and gas resouces in the Basin. I believe you will seriously hurt the economy of this province if the recommendations of this report are adopted. Why get greedy? Who is really going to benefit - not the average Albertan I would hazard to guess - but I sure know who it would hurt - the 1 in 3 people in this province that are employed because of the oil and gas prosperity we have been enjoying for the past number of years.
RRE2495 Dear Members , I am writing to express my dire concern that the government would implement the recommendations of the Royalty Review Panel as tabled. As a retired oil and gas executive who remains close to the industry and the challenges it faces I strongly suggest that the warnings of dire consequences being advanced by industry should not be taken lightly. The implications for future capital flows are very significant and , in particular , the spin off effect thereof. There is a significant risk that the attractive economic climate nurtured in Alberta over many years will be severly impaired with negative consequences for all Albertans and , ironically, with the prospect that government revenues from industry will in fact be negatively impacted. Government revenue is but a minor aspect of the potential economic fallout. Only time will tell with respect to this latter possibility but I suggest the government [ and the people of Alberta ] should be careful about what they wish for. Implementation of the royalty proposals as presented will , in my view , have devastating effects. From a risk / reward perspective I suggest the potential rewards [ increased revenue to government ] will be modest whereas the risks of devastating economic impact on all Albertans is large. Why risk killing the goose that laid the golden egg? As a long standing member of and supporter of the Conservative party I am extremely upset that this process was embarked upon in the manner it was and am more concerned about how it will be addressed. Now is the time for true leadership by making modest changes to the royalty structure in circumstances where it can be clearly demonstrated that they are justifiable [ eg at higher commodity prices , after payout and reasonable return on capital etc ] and explaining to the people of Alberta why a modest and rational approach has been as to preserve and nuture the economic prosperity of all Albertans. The easy way out would be to implement the recommendations , hope it reads well with the voters and move to an election. If that is the case be assured you will not have my support. This is a very complex matter with far reaching implications for Albertans. One could go on and on with respect thereto. Suffice it to say that I want to register my serious concern about pending action to be taken and to encourage you to step back from the abbyss and take a moderate and reasoned approach to this critical matter. Yours, [Information Removed]
RRE2496 20% royalty on a well that isn't drilled is $0.00, just in case the panel didn't catch that in the ten minutes it talked to [Information Removed].
RRE2497 The new royalty structure recommended in the report will kill virtually all of the proposed new projects on the drawing boards of oil and gas companies operating in Alberta. It looks like something Hugo Chavez might have imposed in Venezuela. Does Alberta want to be seen as the Venezuela of the North? The current royalty structure takes more than enough money for the citizens of Alberta and the status quo should remain in place. It is totally unfair to impose higher royalties on the companies who bear all the risks of developing the resources and are facing severe cost pressures in developing new projects. [Information Removed]
RRE2498 Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 07:31:16 DATE ENTERED {ts '2007-10-02 07:45:00'}
RRE2499 As an Albertan I am in complete favour of the Royalty panel's recommendattons. In fact I would have gone farther by increasing the 1% Royalty to 5 or 10%. It's hard to believe that after 40 years of operation, Suncor is still only paying 1% royalty. What a joke. By the way, I am an engineer who does a lot of work for the oil sands industry. We, like our competitors, have too much work and not enough engineers. We mostly hire from outside the country. How does this help the average Albertan? It doesn't. All the average Albertan knows is that the infrastructure is pathetic these days. I am tired of the oil companies and non-Albertans complain about the "extra taxation". Alberta was a place of envy when there were only two oilsand operations. Now it is just viewed as a place to come and pillage.
RRE2500 how does this gov,t think that the people of alberta, own the tarsands, ? how much have they invested of their own money, to benifit and profit, from these multi-billion dollar ventures??, pl tell your govt, that every body may purchase shares in these company,s in an open stock market for all canadains, our companys are not in alberta to be raped and pillaged by this government, as they will just devistate the oli patch, alberta, heartbeat and bakbone, I forseee much unemplyment, in an already soft gas market
RRE2501 Alberta is a jurisdiction based on the rule of law. One of the foundational tenents of law is that a contract to which two or more parties agree cannot be unilaterally changed by one party just because that party decides later that it did not make as good a deal as it should have. If I had mineral rights, made a deal with an oil company to drill and produce those rights and return a mutually agreed upon royalty to me in payment, I would be legally, morally and ethically wrong in trying to change that agreement just because I wanted more later. Mr. Stelmach, you must not destroy our respect for the rule of law as it is practiced in Alberta. Make changes in new agreements but do not try to break open existing agreements fairly entered into.
RRE2502 I don't support the governments move to push this issue in this way. The Oil companies have the money to leave and back out I do not think they would find it worth their while to stay here under the new conditions when they could make so much more in other provinces and countries. Everyone I know who earns a living in the Oil and Gas industry is already starting to suffer. Production has slowed down. I think Albertas srong economy should be more than enough to keep everyone happy.
RRE2503 I simply want to say that Albertans will not accept a "compromise" between the Royalty Review Panel recommendations and the view of the oil companies and their lobbyists. The government must implement the report in full and not some mild and cheeselike attempt to satisfy everyone. Deals made at $30.00 per bbl. don't stand when the world price is at $80. Anything else is simply selling the future of Albertans to the present greed of big oil companies and their many shareholders, most of whom are neither Albertan or Canadian.
RRE2504 Were has everyone been the last year . Drive up and down QE2 ,See how much equipment is sitting Idle , As and Owener of a Small sevice Company . I have a Frist hand view . Busness slowed down Last sept. and is still not a lot better, So many service companys our just operating and thats all. We feel that this report is mostly baseed on Fort McMurry Operations . Because it sure seems a long way from are part of the oil patch. Yours Truly [Information Removed]
RRE2505 What Alberta really needs right now is government leadership that is strong enough to tell the people the report is flawed and a massive tax grab would destroy the economy. It may seem unpopular, but how popular would the destruction of the Alberta economy be? I would think that a PC candidate would never again be elected in this province for 80 years. I guarantee I will stop voting PC if this AEP (a reference to the hated NEP, get it?) goes through.
RRE2506 What should be considered when comparing royalty schemes in different states/nations with those in Alberta is the relative difficulty of withdrawing and processing the reserves. Alberta's oil and gas resources are not nearly as facile as those in Middle Eastern nations or California and Texas. Increasing royalties to the levels recommended in the royalty review would simply make the economics not favorable enough to continue exploration and development of many of Alberta's oil and gas plays. Alberta is already making impressive surpluses year after year, primarily because of the well balanced royalty system that is in place. If the recommendations of the panel pass, I foresee this situation becoming a classic example of killing the goose that lays the golden eggs.
RRE2507 As an Albertan, I am in full support of raising royalty amounts that should be paid by the oil companies, and concur with the recommendations made by the royalty review. I hope the premier keeps in mind the best interests of the average Albertan, and our children who are the key to Alberta's future. [Information Removed]
RRE2508 It is not only oil and gas companies, their employees, and financial institutions that are nervous about the royalty review report. Many people in this city would be out of work very quickly if the panels recommendations are adopted. The entire country would instantly lose billions of dollars and thousands of jobs which are currently fueled by the energy sector. All of us can clearly see that Canadians are profiting enormously from oil and gas right now. Please don't make the mistake of thinking that energy producers are bluffing when they say they need to make a large enough profit to make their projects financially viable.
RRE2509 i am glad to see that the taxation rates are finally keeping pace with todays overinflated economy
RRE2510 [Information Removed] I have worked in oilfield services all my life, and through the years of the N.E.P.. The Oil companies devastated our economy then and it took years to get over it. PLEASE don't give them a reason to do it again. They will not hesitate to pull out of Alberta and go elsewhere to get a better return.
RRE2511 Agree with the report. If threatened with job or economic loss, follow the Russian example and tax them back to Israel.
RRE2512 I don't agree with the increased royalty rates. Although I think that we as the "regular" Albertan need to benefit from the natural resources in our province, I am not sure that increased royalties are the answer. And as far as the Parkland Institutes belief that the Government should OWN oil and gas?? No offence is meant - but haven't we learned why government should not own things? Phones, alcohol, etc??
RRE2513 Albertans do deserve a fair share. Indeed if you take into account the total monies paid to Albertans through wages and infrastructure, I believe they already have a good share of the gas income (I exclude oil revenue, which is a different story). Gas pricing, which is at a low now, is already making many projects barely economic. Many smaller operators are captial constrained and on the verge of divesting gas. This will cut activity and therefore cost jobs right through the sector, especially the service sector, which is the mainstay of many many Alberta towns. You must get this message across to "Joe Alberta", and reduce the greed and hype. Consider linking the royalty to production with a gas price trigger.
RRE2514 Albreta should not raise royalties. Here is a good reason. B.C. Has No Plans To Raise Royalties [Information Removed] The Canadian Centre for Policy Alternatives recommends raising royalties in British Columbia in a new report, although the province's energy minister says there are no plans to do so. "We constantly review ours," said Energy Minister [Information Removed]. "That's different maybe than other jurisdictions, I don't know. We review ours regularly to make sure that we are getting the best value we can in the province of British Columbia. I appear before treasury board once a year to actually talk about our programs and make sure they're meeting the goals that we've set out as a government." The Canadian Centre for Policy Alternatives suggests that the province raise royalty rates and create a standalone provincial fund, similar to Alberta's heritage fund. Located in Ottawa, the CCPA's national office co-ordinates the national research agenda and publishes reports, studies, books and commentary on a wide range of public policy issues. It was founded in 1980. The report makes other policy recommendations including: rapidly phasing out "all provincial government subsidies" to the oil and gas industry; end gas flaring in B.C. and impose increasingly higher fines on companies that fail to meet deadlines. In addition, it suggests the government immediately charge royalty fees on every unit of gas flared; place annual limits on the amount of natural gas produced; implement a carbon tax and keep protected areas and special management zones protected. On the heels of the Alberta royalty review report, [Information Removed], vice-president of Western Canada operations for the [Information Removed]said it's a concern that what happens in Alberta with the royalty system might spawn similar initiatives in other jurisdictions. "I think that's a fair assessment of the concern," he said. "We would look, though, to governments to kind of make sure they understand their current royalty fiscal system. B.C. has done a bunch of work just recently looking at the fiscal system and I would say therefore has a very current system, they've just put in profit royalty incentive. "What we're talking about is (what does) the marketplace need to look like from a fiscal perspective to attract investment? I think that's part of the problem with the analysis that's gone on in Alberta, it hasn't really taken that into account." B.C. possesses a strength, [Information Removed] added, with a fiscal regime that recognizes the nature of its resource - it's remote, geologically challenging and short on infrastructure. Meanwhile, the CCPA report calls for eliminating "subsidies" or initiatives like royalty credit programs from the province created to spur development of things like summer drilling. "It is not as though wells drilled in summer cannot be drilled in the winter," the report stated, adding that year-round development has benefits, including a more stable environment for workers in the industry who live in the region and having fewer peaks and valleys in terms of employment. "But from a strict resource conservation perspective, does it make sense to subsidize activities that have the effect of speeding up development and depleting resources faster than they otherwise might be?" "I think that would be contrary to the policy that B.C. has really been adopting," [Information Removed]said. "They've been trying to encourage development of a local business service sector and one of the key strategies was to encourage (a) round the year level of activity. "I think we need to be really careful about the terminology," he added. "I would argue that they're describing something as subsidies which is essentially striking the right fiscal measures to attract investment. This is not a provincial regime that is applying subsidies, it's a provincial regime that is saying what will it take to encourage the investment, to encourage the development of the province's resource." The report also suggests placing annual limits on the amount of natural gas produced, stretching out the benefits of the resources over time. "At least when it comes to forest and fisheries resources there is debate, public debate, about just how sustainable or unsustainable harvest rates are. There is no such equivalent when it comes to fossil fuels and their exploitation in B.C.," the report stated, citing the Ladyfern gas field over exploitation. "It's an interesting way to look at it, I mean it's two totally different things," said [Information Removed]also the MLA for Peace River North, a riding in the heart of the province's oil and gas industry. "The natural gas industry is out there, the industry is developing natural gas in the province. It, in turn, creates jobs and wealth for the province and for the people that live in northeastern B.C. and the communities that are there. Putting a again one of those great socialist ideas that failed in the '90s."
RRE2515 I think that it is a great idea in the long run for Alberta to increase royalties. Slowing down the economy might not be such a bad thing to prolong the economical fortune that we're experiencing now. Currently we lack the labor force to build houses fast enough or enough people to work at fast-food sectors. I hope that the Alberta government can be "forward" thinking and seriously consider a revenue increase on oil.
RRE2516 I think if the royalty goes through alot of people will be out of work. I've already been looking into going to Saskatchewan to work in the oil patch. I work on service rigs and believe this will slow us down alot, its bad enough were slow already. So if it goes through I think I'll have no choice but to move to Saskatchewan were the oil patch is starting to pick up alot more.
RRE2517 I think the government needs to look at other methods of gathering and saving cash. I cant tell you how sick and f"ing tired i am of seeing drunk Indians and knowing that we are doing this to them, when you get something for free you just dont feel the need to work. I think we need to take a hard look at how much we are paying them and ask ourselves, when is enough, enough. as for the royalties, Alberta is already the richest province out there, why do they need even more. I think if we agree to the royalty hikes the way they are, we are all going to lose our shirts. They it has been explained to me it hits the service company's as well as the oil company's. HURRY UP AND THROW THIS OUT!!! Alberta is basically sitting at a stand still waiting for this. People are already loosing there house's. How many times do we have to learn the hard way, good and steady is good for the economy. I just had to leave my pregnant fiance in Grande Prairie and come back to work in calgary because G.P. is so slow. I would like to hear your feed back in terms of my comments. would it be better if I started a petition, would the government listen then.
RRE2518 There are a number of items that could be addressed but here I comment on one key point at this time. What the revue panel seems to have dismissed are the many submissions that are 'off topic' on a particular issue. It centers around an early comment by Premier Stelmach after his becoming premier that he had no intention of putting the brakes on the Alberta economy. I think this is not in line with the majority of Albertan’s desires if the submissions to the panel are examined. I have read pretty much all of the submissions and those asking for a royalty increase seldom use the argument that Alberta needs or deserves more money from industry but rather that Alberta needs to slow down activity and increasing the royalties would seem the only way to accomplish this. The panel argued that it has no mandate to control activity but only to examine ‘fair share’ which essentially means monetary take. It noted that the government has many ways to control activity apart from the royalty regime and those are political issues, not the panel’s responsibility. But as the premier has taken the position that he will not take the foot off the accelerator, those wishing a slowdown had no recourse but to try to control activity by submissions to the panel requesting higher royalties. I feel that industry and government misread the will of the people on this and, I think, still do. Industry threatens that this report if adopted will cause a slowdown but the people are saying "Great! That's what we want." Even today after the report we hear industry continuing it’s dire warnings about curtailment of Alberta’s financial growth. This was behind my point when I spoke on [Information Removed]about the people agreeing with industry that higher royalties will effect producer activity. What industry doesn’t seem to get is that people want this to happen; not that they are afraid this will happen. If industry (and government) were to understand the depth of this sentiment, they would be better positioned to address the underlying concern of many private citizens, municipalities and environmental organizations. But it is too easy to see this simply as a fight over money. If my analysis is correct, then I believe that it might be possible to create a a better consensus that the royalty report recommendations as it now stands. But this will require a recognition that the royalty regimes are not independent of political issues and the two require some form of marriage. I would be pleased to discuss the form that wedding might take if there is interest on your part. My personal plan is to be on vacation next week so if you are interested in me commenting further, please let me know soon. [Information Removed]
RRE2519 Do not think that investment will not suffer and many industries related to the oil industry. The review must have flaws if there was little or no input from experts in the oil and gas industries. I am a personal trainer, who depenes on wealthy individuals with big bonuses to buy personal training. If my business suffers I will not be voting conservative. Stelmach was not voted in by the public and I doubt he would be. If he hampers the economy at all he will be out. [Information Removed]
RRE2520 We should maximize the royalty. As oil is a vital world commodity with no real replacement in sight, I doubt that companies will leave the province, and if they do others will move in to take their place. The province should not fear taking a tough line on this issue and remember that its primary duty is to the people and not any corporation.
RRE2521 I was very disappointed that the review panel did not provide any estimate on the potential negative impact on the employment of the province caused by the proposed royalty changes. It seems to me that they chose to ignor this issue which is critial to many thousands of Alberta families. There is a good reason to question if the panel members really care about potential massive loss of jobs if the proposed changes are in place. To the impacted families, they would bear much more than simply saying " The proposed increase in royalties and taxes will slow the investment in the oil sands, not as a primary goal, but as a result of re-establishing a faire share for Albertans..." I can't speak for other Albertans, but if you ask me if I want to get my "fair share" of stranded resources by giving up my current employment, my answer is definitely NO! Alberta's valuable resources have been sitting underground for perhaps millions of years and it was not until a few years ago they really played an important role in lifting up people's wealth. And we should not forget it was a combination of benign policy environment(Alberta Advantage) and business adventures as well as luckily higher commodity prices that really helped Alberta to boom. Keeping resources stranded creats no value and ZERO share of benefit for Albertans ! As a responsible government, we should be focusing on building sustainable infrasturctures throughout the province and keep the booming long lived. Alberta should be in a much much better position to do so than most other government in this planet, if not all, thanks to a marvelous balance sheet created by the right policies. Additional two billions on paper would not do Alberta a whole lot. Even more hard cash in the hand of the govenrment may not mean anything to the people unless the results been delivered. And to deliver needs real focused effort.. Regards, [Information Removed]
RRE2522 I can see our company will have a new focus based on decision that have not even been made yet. How these decisions are carried out in the near future will ultimatley decide how we proceed in a buisness plan and focus. With reference to; "In summary, the gas business is very different from the oil business. The proposed changes will severely hamper our deep gas economics. Further, by not grandfathering existing production, our cash flows are reduced significantly, especially in high rate areas such as the Foothills. In order for us to operate within our cash flow, we will have to cut capital significantly, ironically resulting in less future royalties. Lower activity means less opportunities for all Albertans in the communities where we operate. The Government has said it will review the panel's recommendations and make a decision by mid-October. Time is short. I have been and will be meeting with MLA's and government departments over the next two weeks. [Information Removed]has also drafted an open letter to the Premier expressing his concerns. I would urge every [Information Removed] employee and contractor to contact the Premier and your MLA and discuss any concerns you may have about the program or the impact it could have on you or your province. I've provided a link below that directs you to the Alberta Government site where you can direct comments on the royalty issue. In the Questions and Comments box go to the subject area and select royalty review. I would encourage you to pass this letter on to friends, business associates and suppliers. The message is clear. Albertans do deserve a fair share, but at current gas prices there is no room for a bigger government share. This is too important for Albertans to get wrong. Wells you don't drill don't pay any royalty. "
RRE2523 I worry that the 1980s are going to happen again if this review goes through. People will be out of jobs because companies will not want to invest in further exploration. Not only will the oil industry be affected but the industries providing services to the oil and gas companies will be affected. They are stating that Alberta is not getting its fair share well if this royalty goes through we will continue not get are share because there will be no investments. Some of the major companies are already threatening to pull out of projects and that is going to hurt our ecomony in a major way. So if the goverment is ready to fork over money to unemployed individuals then they can go ahead with the review but it damage our economy in a major way.
RRE2524 I'm not as knowledgeable on the issue of royalties as some, but from what I've read it's pretty safe to say that there was a lot of misconceptions formed when producing the cost figures contained in this report. As a result Industry is very adament that any significant hikes would make future investment uneconomical. I hope Ed Stemach and his Government take these comments into account when responding. Bottomline: it doesn't matter how much you increase royalties; if industry doesn't invest then the net result is less revenue for the province and less jobs for Albertans. As an Albertan who works in the Oil and Gas industry I can tell you that my future vote will depend on Ed's response.
RRE2525 One of the key assumptions in the panel report and all the comments from industry and financial analysts is that the conventional oil and gas business is supposedly shrinking in Alberta. Last I looked natural gas sales have been pretty flat the last 5 years. And the potential is there to keep it flat - with the right economic framework. One of the panelists made a comment like "the current system make what otherwise would be uneconomic wells economic"...GREAT. That's exactly what good economic policy should do. Everybody in Alberta has benefitted from that policy. We drill alot of small wells, something like 20000 per year. Texas and other US states a lot of the new finds are just as small since they too are drilling CBM wells, deep thick tight deep basin wells and shale wells. And Alberta is rich in all 3 of those resources. A variety of reports have indicated we have 500 Tcf of CBM, 500 Tcf of Deep Basin gas and 800 Tcf of shale gas in place. We only produce 5 Tcf per year. With the right economic framework and policies there will be a strong conventional business in this province for decades to come and the province will benefit from a steady stream of royalties, industry and personnal income tax and municipal taxes. With the right royalty and tax policies. Royalty rates should be set at a level that is a benefit for all Albertans for the long term. And we have a long bright future with more than 300 years of potential supply at todays rate - if we can economically get it out of the ground. Economic circumstances change very rapidly. Look at the Canadian dollar now trading at $1.02. That's a huge swing in 3 years - who predicted? Wow. Look at drilling in Alberta. Its half what it was a year ago, only 35% of the rigs running vs. 65% a year ago. What a swing. Look at unemployment at 3.5% or less with more people working in the province than ever before. Alberta is driving the economy of this country at a time when the manufacturing heart land is hurting due to the change in the dollar. Careful how you tweak our economy, the envy of much of the country and the world. The royalty report suggested capital costs of about $1.73/mcf and operating costs of $1.20 or a total of $2.93/mcf. Reality is closer to $3 to $3.50 plus $1.25 operating costs for a total $4.25 to $4.75. A huge increase vs. 3 years ago. Partly capital and partly smaller and smaller wells. But the important part of cost is that a lot of it goes to pay salaries of hard working Albertans in every community in this great province. And those salaries get spent in those communities on goods and services and on municipal taxes and as income taxes. Those taxes along with the royalties pay for and the operations of hospitals and schools and town councils and the grading of roads. Increasing the royalties dramatically as suggested by the panel puts all of this at great risk. Why has drilling slowed down? Economics - our dollar is on par with the US. 3 years ago it was 80c. Our gas and oil is sold mainly in the US. To send natural gas to the US costs a dollar. The exchange rate at 80c used to offset that cost. So we get a dollar less as a producing province for every mcf/d vs. Texas. Our average well size has dropped in half over the last 10 years. We drill lots of wells to keep our homes heated and those of our friends in the USA. That activity is what keeps people employed, working and enjoying a great life style and paying taxes. Those lots of wells have seen their average cost increase over 40% in the last 3 years - mainly it is labour but its also steel, transportation and fuel costs - the later all being set by international forces. Not something we can control in this province. So add up smaller wells, a lower price and higher costs and that is why our drilling has slowed down. In Texas their drilling activity is at a peak. They are seeing rising costs too but they tend to drill wells that are slightly better than here (its just the geology in each area that creates that difference). But they don't have to pay $1 dollar to transport their gas to market. So their economics are better. Without even talking about royalties and taxes. So with 1800 Tcf of low rate gas in the ground, enough to keep production flat for decades why the dramatic increase in royalties? When prices are high (>$10/mcf) sure the companies should pay more but at $6-8/mcf we need to have a royalty program that keeps the economics alive for the low rate gas, keeps Albertans employed and working and keeps the income streams strong for industry, the government, the communities and Albertans. Lets figure out how to make the pie bigger!
RRE2526 royalty suggestion too low it should be much higher as the cost of production declines and the value of the asset climbs. We need regular reviews and the option to increase as we see fit.
RRE2527 The oil & gas royalties should be increased, but the way they have calculated the 20% hike is incorrect and the increase will end up being closer to 50%. This will hugely impact all of the oil & gas activities in Alberta - and the folks that will be impacted to the highest degree are the workers in the field - the one's with the most to lose - not the so called 'fat cats' sitting at the top of the heap. Think of the roughnecks, motorhands, welders, pipefitters, truck drivers, backhoe operators, small business operators that perform services for the oil & gas industry. They are the ones that will lose their livelihood. Thank you, [Information Removed]
RRE2528 i have worked in the oil patch in the grande prairie area for 15 years and tomorrow i am putting my house up for sale,good luck with the extra royalties now all you have to do is find a way to get it out of the guys seem to be pretty out of touch with your biggest industry. [Information Removed]
RRE2529 I think the most prudent choice would be to do a Canadian Compromise. Accept the royalty increase but phase it in over the next 3 years.
RRE2530 What benefit does increasing royalties have when the economy is going to suffer in negative losses ie.(jobs, housing returns, unemployment rate, interest rates etc.) Further more greed (as proven throughout history time and time again) has been the demise of many people. I also assume the federal goverment is watching carefully, so they can implement some type of surcharge for us to give to the rest of the country. I think we should leave our vibrant economy the way it is, we don't need a housing disaster like the USA on our hands because of layoffs. [Information Removed]
RRE2531 Government interferance in the private sector always ends up negative not for the Gov or the comanys it hurts the average hardworking Albertan and we need to reconsider your actions, this could be good for Alberta but the fact is, is that it is not going to be Oil Companys are going to fight it and that only means less work for me, its not going to affect you or the comanys positively or negatively but I gaurantee its gonna affect me negativly so please don't do it or Albertans are in a lot of trouble, this is the wrong timeing to try something like this 5 years ago it would have bean an exellent idea, please look at what is going on economically with this province right now not 6 mounths or a year ago, I think a smarter policy that would accually help the working Albertan would be a use it or lose it policy as it comes to leased land and different zones this would keep our people working and forcing companys that have taken so much from this province to invest in it and its people again.
RRE2532 Premier Ed Stelmach I have no direct or vested interest in the oil industry. However, I, like every Albertan, is to a certain extent dependent on the good and vibrant health of this industry. Insofar as increasing royalties, I am strongly in favour of leaving them as they are. The Report says that our roylty rates are amongst the lowest in the world. I find nothing wrong with that. Wal-Mart has the cheapest brand name products in North America and as a result is a very successful retailer. Increaseing royalties will do nothing tomaintain emplyment or encourage capital investment in the Province. By now you should realize that certain portions of the report are flawed. As a staunch conservative, I cannot justify the stupidity of releasing this report to the public before any internal vetting. But be that as it is, I strongly urge you to back away from any increases. Yours truly. [Information Removed]
RRE2533 As a resident in Calgary, Alberta I am very concerned about the impact on the Albertan economy if the recommendations put forth by the Royalty Review Panel are adopted. From reading the industry reports recently published in response to the Panels recommendations, I am seriously alarmed by the conclusions put forth by the RRP. A key argument presented in the report to support the recommendation to raise royalties is that ?government takes? elsewhere in the world are higher than in Alberta. This assertion is meaningless without comparing cost structures, well productivity, reserve sizes, and reinvestment levels. To account for these parameters, one must compare returns on capital between jurisdictions. The data I have see, put forth by [Information Removed], and published in the [Information Removed]Tuesday September 25, 2007 page F5, suggests that returns in Canada are modest compared to many other jurisdictions. I strongly urge our Premier and his ministers to take this information into account before making any decisions regarding royalty revisions. I have been a strong supporter of the conservative government up until now. After PM Harper came into power, I was very disappointed by his reversal in decision on the royalty trust tax issue. The Alberta government has an opportunity here to make a good decision regarding royalties. If the outcome of this issue results in yet another blow to Canadian investors (and the oil industry), I will be voting 100% against the conservative government in any future elections (provincial and federal). Sincerely; [Information Removed]
RRE2534 If the current recommendations by the review are implemented, the oil industry here would still pay amongst the lowest royalties on earth. Their threats are childish and ludicrous put in the context of the world oil economy, and immoral in the context of the future of our children, the health of our enviroment, and disappearing clean water. Be strong, and don't let the corporate bullying overshadow your responsibility to the citizens of Alberta!
RRE2535 I think think raising royalties is a great idea. These oil companies are getting our oil for free compaired to other countries. If royaties to increase I want to see more money go in to schools and health care. University is now a thing for the rich.
RRE2536 Gutless Ed does not have the political [Expletive] to do the right thing here and implement the findings in the report. He will allow our resources to be sold off cheap instead of planning for the long term of this province and its citizens. Everyone knows he is the industry's puppet just like Ralph was. What he should do is call a province wide referendum on this subject as it will have a major impact for the present and the future. Wait I forgot we do not have referendums here at all because we are just a bunch of dumb taxpayers ruled by intelligent politicians or at least they think they are intelligent. Since actions speak louder than words the choices they make over this issue will clearly show who the dumb ones are!
RRE2537 The main division between those for and against the Panel's proposal now appears to be exposed as what it is. Those whoe think that they are not getting their fair share of the recent economice growth and those that don't want the economic growth, that the province has recently experienced, to end. While I have a definte bias with one side of the arguement, it is understandable how people feel that they are not getting their fair share. The proposed changes would untimately contract business activity in the province over a wide spectrum of businesses and sectors. While it would obviously hurt some more than others, all parties would lose. Instead focusing on increasing the burden of royalties that producers pay to help Albertan's get their 'fair share', perhaps there is another solution. A solution that is not being widely discussed is using tax policy to help those that are feeling left behind. Alberta has been very forward in its implementation of a flat tax policy for income tax. However there is one element within this structure that could be administered to help those in the lower income brackets. One idea is to raise the level at which income earners would start paying income tax. For example, giving everyone a break on their first $50,000 of income at 10% would be a very large tax break and help those feeling that they cannot keep up to the current growth. Obviously this could create a large void in receipts the government would take in. That could be remedied by the increase in the percentage of tax paid ,to say 15% or 20%, or whatever level would cover most of the missing receipts. While on the forefront this action would seem as a politically difficult item to sell, it would accomplish several things. Firstly it would give a large absolute and percentage income boost to those in the lower income brackets, which would obviously directly aid most of those Albertans not feeling that they are taking part in the recent hydrocarbon led growth. Secondly, it would place a larger income tax burden on those making an apparently 'disproportionate' share of the recent oil wealth. Thirdly, changing the income tax rules versus the royalty burdern companies would face would enable the industry to continue to spend in Alberta, invest in Alberta, employ Albertans and actract capital to Alberta. This scenario I have proposed would force my family to pay a significantly larger portion of our total income in taxes, on both an absolute and percentage basis. One may ask why I would propose to pay more taxes. The answer is clear when one considers that, should the royalty changes as proposed go through, the amount of taxes that our family pays would be significantly less. Please don't let populism drive the royaly policy. Leave Alberta as the most attractive place for people to invest capital and use more direct governmental tools help those who feel that they are not getting their 'fair share'.
RRE2538 I feel that there is little doubt that Alberta is, and has been for years, well behind the curve when it comes to collecting Energy Royalties. It is apparent to me that the review panel went to great lengths in compiling a very exhaustive and well researched report. I feel that full implementation of this document is an absolute must.
RRE2539 I will admit right-off that I have not read the entire text of the Royalty Review however I do have significant concerns about the recommendations based on information presented in the mainstream media. I work for a junior oil and gas company and believe that this gives me some critical insight into what it takes to make an oil or gas project (i.e. exploratory drilling for new reserves) economic. In my experience it is alreaty difficult to make the case for acquiring mineral rights, seismic data and drilling an exploratory well in a "small-budget company" in an environment of relatively low natural gas prices. I am concerned that a significant increase in royalties will further burden the economics of such projects to the point where the economic hurdles become insurmountable and growth, both corporate and production (i.e. revenue for the government) is discouraged. The worst case scenario, for my own personal experience, could obviously be a loss of employment and difficulty finding other employment as companies, large and small, divert funds from Canadian projects. While I support an analysis of our current situation in regards to royalties and whether Albertan's are getting their fair-share I urge the government to be very careful in making any adjustments to the royalty scheme, especially where they have the potential to result in large-scale loss of employment for many Albertan's. I am especially concerned because, in talking to family and friends outside of the oil and gas industry, there seems to be a very large miss-conception of exactly how profitable this industry is for the majority of us working within it. As it is my family of four gets by on my income by carefully watching what we spend. Sincerely, [Information Removed]
RRE2540 In my opinion I feel that the Royalty Rate should be raised by the recommended amount. Further to that I feel that 25% of the increase should be returned directly to the citizens of Alberta by means of a Royalty Rebate program. This should have some limitations such as age (18), residency (minimum of 5 years) etc. Thank You [Information Removed]
RRE2541 The analysis of the Royalty Panel has been shown by independent financial analysts to be fatally flawed by lowballing expenditures. There is already a slow down in natural gas activity that will be accelerated by any increase in royalty rates. There is also a slowing in the oilsands development due to the high cost environment. It appears an implied object ive of the panel was to further cool down this sector. The current royalty uncertainty in itself will result in further economic slowdown due to deferred investment. I have no doubt that the political winds will force an increase in royalties (every one always wants more cash from the public trough). May be Albertans need a slap in the head via a self induced recession to learn how good things are for the vast majority of Albertans. This is not an academic exercise. People's livelihoods (especially our young people) are hanging in the balance. Hopefully rational heads will prevail over political expediency.
RRE2542 Mr Stelamch : I support you on most issues but if you cave in to the Oil Industry and go against the recommendations in the Royalty Report, I'm afraid I have to go in another direction. I'm confident I know what your decision will be and it doesn;t please me at all. I think you will decide, if you haven't decided already, that you will NOT go along with the reports recommendation of a Royalty increase of 2 billion dollars a year but instead try to keep peice in the family by suggesting that one billion should be the figure. It is time the Provinvial Government stood up and called a spade a spade. PLEASE quit running scared from BIG OIL. Albertans deserve that.
RRE2543 I'm currently sitting on a well southwest of Fox Creek. The cost on this well for servicing is 1.65 million for the 21 days we've been here. A drilling rig had to move here earlier and repair some casing at a cost of close to 1 million. To date we haven't had more than two puffs of gas from this well. The oil company might be making money off other wells but they are spending a bunch on this one. To the people who think that oil companys make a truckload of money day in and day out they should start looking at the real picture and real costs.
RRE2544 I feel very strongly that the provincial government should implenment ALL of the recommendations of the report. Furthermore, I think this government should show Albertans that they are taking seriously the criticisms made in the report that the government has previously not done a good job of managing our resources.
RRE2545 I would like to submit that if the government goes ahead with the Royalty increase it will send Alberta into a depression of unmeasurable proportions. I am involved in the forestry industry and through that a part is played with the oil industry. If the royalties are raised the oil industry will shut down. This will affect not only the oil industry but will touch every other industry out there. In our area Edson, the oil and gas industry intersects with every local industry and buisness. There has been a great deal of growth in our community due to the busy oil industry around here. Hotels, grocery stores, just about every business has some benifit form the oil and gas in our area and as well myself and my family are both very involved in this industry. Everyone I know is very nervous and stressed that the government will go ahead with this increase and all see it as a death sentence for their lives as they know it. Many jobs will be lost. Many families shoved into turmoil. Every year the government has come forward saying they have received more in oil and gas revenue than was expected and therefore have more money to spend. Why then would you even consider raising the royaltis? I believe that nothing should change as far as where the royalies are at. If it does change I feel the government will be making a terrible mistake and I for one know that it will affect me and my family in a devistating way. Sincerely, [Information Removed]
RRE2546 Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Monday, 01/Oct/2007 18:09:56 DATE ENTERED {ts '2007-10-02 06:00:10'}
RRE2547 it would be devastating to our provincial economy, if this was put in place. Oil companys will pull out, there are other avenues to wich they will take there buisness. This would make our new premier remembered for all time, as the premier who took energy rich alberta into a recession. Hope you have extra money in the kitty for welfare,food banks, and many many recieverships.
RRE2548 Premier Stelmach is letting his government propose a royalty scheme that will bring Alberta into recession and kill our economy. The Oil and Gas Industry keeps Alberta strong, but it's strength is also affected by commodity prices, the Canadian dollar and the regulatory environment. Already we have seen the impact of low gas prices on the economy of Alberta. A slowdown has been coming over the past year. We see it in real estate, new business starts and company foreclosures. The government needs to review this recommendation again. A real economist needs to be involved this time. The basics of how commodity pricing and royalties effects a business need to be included in the calculations. The royalty increase proposal is the nail in the coffin of the industry and our economy. Already suffering from lower gas prices and higher Canadian dollar, the industry already is reducing activity levels. How can this committee think the production and activity levels would be the same, ignorant of market effects? How could they publicize a bogus of royalty increased value of $2B? The government is undertaking political suicide!! Meanwhile, average Joe uneducated Albertan, who is working hard as a laborer or rig worker, or a Tim Horton's cashier, will all be out of work. The supporters of this who only saw the $2B number in the papers will be on the war path after they see how it affects their personal lives. Good luck keeping this province afloat if you take on the level of recommendations! Please rethink it and ensure it makes sense to all Albertans, with real consideration to business economics.
RRE2549 Dear Government of Alberta, I would suggest leaving the royalty structure as is. The Oil and Gas companies give back to the province of Alberta in job creation and are the hub of the Alberta economy. If the royalty structure is changed they can take their research and development money to other countries or just buy back their shares. I think it is important to be fair not greedy. Alberta is already the richest province of any in Canada.
RRE2550 There is no question Alberta should increase the royalty rate. The oil companies have been getting a free ride for so long with record profits the last number of years. The billions and billions of profits the oil companies made were the results of the oil cartel, not the oil companies' doing. It would have been ok if the oil companies earned the money, but yhey didn't. I don't think it is fair that company executives got hundreds of millions of dollars in bonuses; these money belong to the people of alberta. The oil royalty rate should be based on world prices: increase as prices increase and decrease as oil price decrease. Indeed, even my friends working for the oil companies had said the past few years that they made so much money they couldn't spend it all, so they gave themselves huge bonuses.
RRE2551 Mr. Premier; While my response may be too late to influence decisiosns you may have already made I would urge you and your government to implement the Royalty Review Report as written. I believe you have asked an expert panel, with a broad base of knowledge and experience to examine a complex and difficult issue with a fairly encompassing set of terms of reference. This was long overdue. To now pick and choose or modify the results would suggest that the caucus knows more than the panel and therefore the panel's efforts were a waste of taxpayers funds and panel efforts. I do not beleive you or your government to be this arrogant but I worry when I hear the gloom and doom mantra of the Oil & Gas Industry that this may undukly sway your decisions. The vehement reaction of the industry and its shills and spokespeople indicates to Albertans that they have been getting way too much for way too long. I find it particularly disturbing when companies with such favoured pedigree and history in Alberta's Oill & Gas Industry like EnCana, CNRL and Conoco-Phillips/PetroCanada are leading the charge. One need not follow their history back too many name changes to see the relative advantages they all bring to the "marketplace". My greatest concerns are that these companies suggest that recent short term shifts in markets over the past 6 motnhs should drive a long term economic policy. The other concern is that the greed of these organizations is what has driven up not only thier costing problems but also the social and economic problems faced by the province. The lack of foresite by these organizations is astounding. In 1992, while working at [Information Removed], I was told that if they could get anything over $15 per barrell for their synthetic crude that they would make money. The opportunity to invest in Oil Sands developement in an organized and controlled manner existed at that time and to their credit Syncrude and Suncor expanded and Shell brought its Albian Sands plant on line. The CNRL's of the world knew that the bitumen was there and there was no one in the world suggesting that the world was going to run out of a need for oil anytime soon but they chose not to invest at the low end of the cost cycle. They waited until the costs rose drastically and then their greed forced them to jump on the "me too" bandwagon. As oil prices have risen to their present heights over the past 7 yeasrs this unprecedented activity has driven our economy up beyond healthy and sustainable to the point we see today. For the long term economic prosperity of Alberta including my children and grandchildren I would urge you to adopt the Royalty Review report. Failure to do so will be judged, in the long term, as a failure to Albertans and will certainly lower the respect that Albertans, including myself, have for yourself and your government. Thank you. I look forward to your speech tomorrow evening. [Information Removed]
RRE2552 The message I am hearing hear in southern Alberta is that it is possible that we may be in for a very long slow down if the provincial government decides to get to greedy with the oil companies!! We have already noticed a considerable shortage of work due to low nat gas prices. We went from having 50+ employees down to about 25. I know many people that rely on a busy oil patch to be able to stay in southern ALBERTA. I don't think the system is broke so don't fix it. We must be doing well if we are debt free and have enough surplus to send everyone in ALBERTA a $400.00 cheque because the government never knew what to do with the extra money. PLEASE make the right decision for all of ALBERTA. Thanks [Information Removed]
RRE2553 Please accept and implement the Royalty Commission report in full. As an Albertan, a tax payer, and a member of the Conservative Party, I think it is important that we get fair value for our non-renewable resources. I think the commission report is a fair compromise between the rights of Albertans as resource owners and the need to have a stable and business friendly environment. I believe that the energy companies are bluffing when they predict a massive pullout and reduction in investment. They are merely protecting the interests of their shareholders and will say what they feel they have to in order to keep the current and advantageous (to them) system. In reality, Alberta is a safe, stable, non-corrupt, non-dangerous place to extract resources. The energy companies are not going pull out of Alberta because their other options (Sudan? Bolivia?, Iraq?, etc) are far less attractive places to do business. This is an opportunity to address the errors of the past and move boldly ahead. Please do not squander it. Regards, [Information Removed]
RRE2554 Please execise constraint on a already weakend market. I do not want to have mortgage that exceeds my home value and have to walk away from it because of Government Greed
RRE2555 I am concerned that the Alberta government does not fully understand the consequences of a royalty change of the magnitude proposed. It is fine for the energy giants to pull money, as they actually have a choice to conduct operations in other, potentially more profitable jurisdictions. The loses from that move will be large and costly. But these companies will survive and profit from their move away from a high cost operating environment. What about all the Albertans who are employed by companies that do business only or primarily in Alberta? They have no choice, they will slowly loose value (as is taking place in the trust sector now) until they are either bought by foreign companies that have the patience to wait for a reversal of the royalty proposal (as is inevitable if the Province is to survive in its present form) or they simply cease to do business. To implement this plan as is will see the government preside over a second National Energy Policy debacle. I cannot believe that the legacy of this government will be to preside over the dismantling of the main engine for long term growth in this Province. I will not debate the findings of the review committee, suffice it to say that as a born and bred Albertan I want a fair share of a healthy economy, not a regressive and repressive tax.
RRE2556 To say we are concerned is an understatement, given the uncertanty of the North American market, why would a new administration take on such a delicate and complex issue. The people most affected will be the working class, who will be the first to lose their jobs. They will not be shopping, they will be unable to afford their mortgage payments, and thus welcome to a politically induced recession. Say goodbye to the Alberta Advantage and embrace unemployment and bankruptcy. I and many others are certain you are putting our future and our childrens future at risk for no rational benefit.
RRE2557 To whom it may concern: I believe that the Royalty Review report made very good recommendations that should be implemented immediately. The Alberta government should be working for the people of this province instead of for the oil industry. Implementing the report's recommendations will show that the government is actually working for the people. Regards, [Information Removed]
RRE2558 ----- Original Message ----- From: [Information Removed] To: Ed Stelmach ; Lyle Oberg ; Rob Renner ; Leonard Mitzel Sent: Thursday, September 27, 2007 8:42 AM Subject: Oil Royalties Premier Mr. Ed Stelmach Oil Minister Mr. Lyle Oberg MLA Mr. Leonard Mitzel MLA Mr. Rob Renner I am an Albertan with a couple of businesses that deal directly with the oil industry with approx 55 employees. [Information Removed] We are currently experiencing a fairly severe down turn in our industry. I have been hearing from several Oil companies (customers) that if your proposed royalty change goes through as proposed they will be cancelling even more wells etc. We do not need a further slow down at this time, the trickle down effect from our current slow down has not fully reached all Albertans, but it will. Any further slow down will put our industry and I believe our province in a recession. I agree we need to redo the current royalty structure, but need to do it carefully and slowly as to not deepen our current slow down. Respectfully [Information Removed]
RRE2559 was deeply concerned after reading the report from the royalty review panel. What I found the most concerning was the fact that a rise in royalties of the proposed magnitude may scare of the large amounts of capital required to get many oilsands projects off the ground. There are a number of smaller companies currently pursuing smaller in-situ projects which will still require several hundred million dollars each of capital. These companies do not currently have production large enough to generate the kinds of revenues to support these projects so they are forced to raise capital in the equity markets. Take for instance [Information Removed][Information Removed], this would not have been possible without raising several hundred million dollars of funds. Some of the more notable smaller Alberta Based companies which will require capital over the next few years for their projects include: [Information Removed]and several others. These projects are not the prime projects that we see from the likes of [Information Removed] etc., they are less robust projects and the proposed royalties may cause some of them to not be funded. By making it more challenging for these projects to get the money required you are opening the door for larger, multi-nationals to develop the projects. This is a shame as many Albertans are working very hard on these projects and are also investors in these projects. I believe that the royalty review panel has carried out both a superficial and incomplete assessment of a change in royalties. It is my belief, that they have identified the maximum rent available to the province; they have however lacked the wisdom and sophistication of what they have framed. The oil industry is a margin business both because of the maturity of the basin in the conventional business, but also the very nature of the oil sand business. When a margin business losses a material share of net revenue, in this case in excess of 20% there is a material shift upwards in the required commodity price for many of the projects to proceed. We have seen this in gas drilling in 2007 with 40% fewer gas wells and a decline in production of close to 1 billion cubic feet per day. The impact of the recommendations would be expected to include: 1. A decline in activity until commodity prices rise to support project development. 2. A compounded effect of that decline as the required investment capital is reduced in availability, increased in cost if raised and therefore further increasing the required commodity prices to advance projects. 3. Service sector companies through reduced activity will see the erosion of the volume and value of work and employment will decrease. Alberta’s GDP may be much less than it might have been and government revenue may in fact shrink as they garner a thicker slice, but of a smaller pie. Other points would include: 1. The principle of ability to pay is distorted by the proposed (OSST) oilsands severance tax. This is a gross tax where at current prices it is not the ~ 5% impact on the net to a company but potentially a 10-12% impact from cash flow available to a company as there is no deductibility in tax or other cost factors. 2. The proposal shifts foreign exchange risk to companies. In other words government revenues would be insulated from changes in exchange rates this of course is at the expense of the company share. The severance tax in combination with the foreign exchange risk becomes regressive in lower commodity prices, this will make any slow down worse. 3. The bitumen price question has a potential to be a significant and serious wild card to the determent of companies and perhaps the province. There is clearly a transfer price question for integrated projects. This should be addressed; however a non-integrated project only receives what it can. If deemed prices calculated by a formula do not reflect market prices either the government or company will lose, clearly not an objective. This recommendation in particular is very problematic and not well understood, notwithstanding the recommendation made. The harsh criticism of the committee to others would be particularly well applied to this recommendation of their own. 4. Small companies will be under pressure. In a margin business scale is everything. Wal-Mart is both respected and despised for what it is in the retail margin business. In the oil business this will increase the pressure on being big to survive. The numerous small companies of the conventional, but more particularly the oil sands will be consolidated. The business will be more dominated by the multi-national and activity will be constrained.
RRE2560 After years of carefully cultivating an image as an investors' paradise, the Alberta government is getting a rough ride on Wall Street over proposed royalty changes that would significantly reduce profits for oil companies that invest in the province. Accustomed to dealing with political risk in places like Russia and Venezuela, investors and analysts are stunned that Alberta - which has sold itself as Texas North - has apparently taken such an aggressive approach to the industry that has spawned so much wealth there. "The Alberta government is doing a classic 'shoot yourself in the foot' strategy," said [Information Removed] "It's tried and true: If you really want to hurt your economy, start raising taxes on industries that are really basic to the lifeblood of your economy ... It's so stupid - I thought these people were more sophisticated than that." Taken from [Information Removed] Oct 4, 2007. As an Albertan living and working in Alberta, I'm embarassed that North American markets think of Alberta and Albertans in such a way.
RRE2561 ALL of the Review Panel's recommendations should be implemented -- at a minimum! Albertans have lost too much already to the oil companies. These are OUR resources and WE should be benefitting from their use, not just left to deal with the inflated housing market, human resource crisis and environmental disaster that have resulted. Norway and Venezuela have much more desirable royalty regimes and are doing very well finding companies willing to work under their regulations. Do not listen to the doom and gloom forecast of Big Oil. Their interests are not those of Albertans. If you would differentiate this government from the mistakes, patronage and deception of the Klein era, take leadership on this issue now and finally do right by Albertans.
RRE2562 I urge the government to move very carefully on this issue. We are already seeing the effects of the proposed royalty hikes in terms of job losses and environmental effects. I live in Grande Prairie and major oil and gas companies will no longer be drilling for gas in our area if there is any amount of royalty hike because gas wells up here are deep and already expensive to drill. Obviously that will translate into many job losses for Albertans. There will also be negative environmental effects. A major oil and gas company has already cut it's reclamation budget by 60% in anticipation of the hikes. Getting a 'fair share' for Albertans will cost citizens their jobs and compromise environmental values. I think if you asked any Albertan to choose between a job and more royalties, they would choose the job. The support for this initiative seems to be primarily coming from large urban centers (e.g. Edmonton) where people are several steps removed from the oil and gas industry and are unable to see the impact a slow-down will have on their personal livelihood. If royalty rates are increased it will not take long before the spin-off effect hits them and they realize the dependence of their quality of life on a strong oil and gas industry. In turn, the government responsible for a slow-down in the economy will be quickly held accountable. Albertan's will not put up with an unnecessary policy change done under the auspices of benefiting Albertan's that causes detrimental effects to the economy and environment.
RRE2563 There are just so many reasons to adopt the recommendations of the Royalty Review Panel, I really hope that the corporate interests do not bluff and browbeat the government into backing off. Frankly the royalty rates (and collection protocols) should be more strict than what is proposed. I expect that after all the bluster and threats it will be business as usual for most companies and investment in the province, with the legacy of an extra infrafrastucture fund that is greatly needed. No matter how wealthy we may feel right now, I cannot imagine that anyone in Alberta thinks that we don't need the money for schools, roads, transit, hospitals, high-speed rail links, environmental remediation, secondary education and tuition reductions, social services for those falling through the cracks, agricultural support for the tough water years and migration / adaptation that lies ahead, an emergency fund for the year that floods or tornadoes hit Edmonton or Calgary square on (for that has to come at some time), and so on. I really think that a focused, well-advertised "purpose" or directive for any extra funds raised by increased royalties would alleviate much of the concern and criticism. Give the province a vision and let us know these funds will be well-spent and of immense value. For my part I would dearly love a commuter rail system connecting Calgary with Canmore and Banff, coupled with shuttle buses to whisk the tourists to the ski areas or Banff Springs, etc. It would be forward-thinking and would knock a chip out of the road congestion and automobile emissions in the National Park. Any visionary and ambitious use of the royalty revenue would be an easy sell, as the alternative sees this money leave the country (for the most part) as excessive profits for the multinationals. Even if this is not just bluffing and posturing by Encana and others, I submit that most of the province (and certainly the environmental affront) would benefit from a slowdown of the energy sector. How many people in Calgary really think that it has become a better place in the last few years? I hear nothing but complaints and anxiety over housing costs, the difficulty and affordability of staffing one's small business, and the poorly planned growth. I could go on but you know it better than I. Good luck with this difficult decision and I hope that your office can come through this boldly and wisely. [Information Removed]
RRE2564 Regarding the oilsands royalty: This is the most ridiculous scheme to tax our province into prosperity that I have heard in a long time. I find it hard to take this seriously, but since we have destroyed our economy before with no long term benefit I must admit that it might happen. This is the foolish, greedy sort of planning that sends so many Canadians to the States year after year while businesses in their field are crushed. My immediate family moved to the US in the 1980’s when Canada destroyed the oil industry long before oil prices declined because nobody is willing to invest in a risky venture when the rewards are all siphoned off by any other group. It just doesn’t work. This grand illusion of more toys for the people is valuable for just one thing, votes. Nobody anywhere will ever tell you that they get their “fair share” of anything. Pandering to this mentality is not only sad but dangerous. We are heading down the road to having plenty of oil in the ground where it is good for nothing at all and no industry interest just like Newfoundland. The heritage fund is an ill conceived plan to help make the greed sound noble and make the whole thing more palatable to the masses. The idea that a heritage fund would remain untouched for a rainy day is laughable and stagnant money is of no value anyway. Resource is defined by the cost of harvesting the oil as well as the price received. There is no question that this must be written into any economic evaluation as an increase in cost or decrease in value. This will effectively reduce the resource in Canada, not to any government body but clearly to anybody trying to make a living. Alberta has not historically been hostile to business in the fashion of the heavy handed governments of Eastern Canada. If we emulate them in this fashion then we will soon reap the rewards of a similar, dead economy. Ostensibly this isn’t a tax but practically it does the exact same thing. No profit margin is so elastic that a 20% rise in taxes will not slow the sector by more than 20%. The toys will not come. The new roads and hospitals will not come. The money will not be there for a heritage fund. The resource will dry up. This couldn’t have been better planned if Green Peace who is at least open about its hostility to oil and private industry wrote it. Thank you for your attention.
RRE2565 Leave royalities alone. What have the government done to create jobs lately? We all know that people will never see any "fair share" anyway. People would have have good jobs.
RRE2566 Dear Premier Stelmach: I am an engineer working in the Alberta oil and gas drilling industry. I am responsible for cost estimating and verification and technical responsibilties of drilling of deep gas wells in western Canada. I have seen reports of the costs used by your review committee. THEY BEAR NO RESEMBLANCE TO REALITY! In fact, they are about 1/2 of what it really costs to drill wells in Western Canada. Where are they getting their costs from? They are, at best, several years out of date. Implementation of the planned increases in royalties will clearly result in LESS economic benefit to Albertans, rather than MORE. The decrease in spending by exploration companies, as a result of the reduction in economic wells to drill, will reduce the Government take to less than if you leave the royalties as they are. On top of that, many Alberta taxpayers will be without jobs, another loss of government revenue. And, these taxpayers, including me, will be voting in the next election for those politicians that provide the economic conditions for steady, well-paying jobs. Those that work against that principle will be looking for new jobs themselves. Were you too young or too out of touch to remember the devastation to Alberta's economy when Trudeau brought in the National Energy Plan? Are you trying to keep his ignorant spirit alive? If you really want to know what the cost are of exploring for oil and gas, then get 3rd party auditors to check the books of several oil companies. You will then find the true costs of exploring for oil and gas in Alberta and Western Canada. In conclusion, LEAVE THE ROYALTY RATES ALONE, if you care about Albertans. [Information Removed]
RRE2567 Premier Stelmach: I disagree with the findings of the royalty review panel. It is flawed and doesn't correctly reflect the cost of doing business here in Alberta. If the panel's recommendations are fully implemented, it will seriously reduce the oil & gas investments in Alberta, which will snowball into a reduction of jobs and ultimately reduce the quality of lifestyle of all Albertans. My personal experience of having graduated from engineering in the early 80's is one of witnessing jobs that were very abundant in 1980 to little or no entry level jobs in 1983 and years forward until the National Energy Program was discontinued. During this time span, many engineering graduates like myself, were struggling to find jobs in our field to gain valuable experience to be able to qualify for professional engineer status and further our careers in more responsible roles. Many of my classmates dropped out of the profession altogether. This past situation results into one of the current dilemmas that the oil & gas industry is now faced with; a gap of qualified professionals that now follow the retirement of the baby-boomers. Many young people in the 80's were reluctant to enter into the field of engineering as the outlook for jobs upon graduation was very bleak. Now, the engineering faculties are full of young people looking forward to promising careers. Please do not support the implementation of the royalty changes that are currently recommended by the review panel. I would hate to see the cycle of the early 80's repeat itself with the loss of opportunity for the current and future generations of engineers. Regards, [Information Removed]Calgary, Alberta [Information Removed]
RRE2568 I have now completed my review of this document and believe the government of Alberta must act on its recommendations. I also find the orchestrated threats (blackmail) of a number of upstream oil and gas companies offensive. There is clearly room for a phased in implementation of the reports recommendations though this shoud occur within a short period of time (maximum3 years). The decision of your government on this issue will be the primary determinant of my vote at the next election. Thanks for the opportunuty to provide comments.
RRE2569 I work for a small private Heavy Oil Exploration company. I can say with a great degree of certainty that 25% of our staff are geniunely concerned for their jobs. And at least 50% of them should be concerned. The only people that will make it through this unscathed are already well off. This proposal is going to hurt the support and admin staff the hardest. We have had to keep up with the Jones in terms of paying the same prices for houses, with having a lot less income. I am afraid that I will lose my job, my house, my car. What risks are you willing to take with peoples lives? Do you realize the thin thread a lot of peoples finances are on. Historically what does financial ruin lead to? Suicides. I am worried about people in this province, in general, knowing that some of them will take a fatal step to get out of financial ruin. Be VERY, VERY CAREFUL!!!!
RRE2570 Dear Mr Stelmalch I am an Albertan, born, raised, schooled and working in Calgary. In September, 1979 I entered the University of Calgary’s Engineering program. In April, 1980 I had many choices for summer employment and decided on [Information Removed]in Calgary. At the end of the summer I was invited to return the following year. In October 1980 the National Energy Program was introduced and I heard on the radio that the Alsands project, among others was closed down. The following summer work was impossible to find. At the same time many of the families I knew including my own who were part of the working class were losing their jobs. By my 3rd year in engineering, 1981 my parents and I knew people who had lost the equity in their homes and were simply walking away. By the time I graduated in 1983 no jobs were in sight. I lived with my parents to keep costs down. My partner had graduated from Education and also had no job prospects. Calgary began to look like a waste land with abandoned construction projects scarring the city. By the time I scraped together enough experience through “consulting” and by working for very little pay I was finally hired at an oil company in permanent position in 1985. Then the oil price collapsed. From 1980 to 1985 when the NEP was finally dismantled, I have read that 30 billion dollars was taken from industry and in this case sent to Ottawa. Another 30 billion of course was taken from the Alberta provincial coffers. Industry suffered a loss of 6 billion dollars a year during a time when oil prices were high. The AARP report is suggesting taking 2 billion a year from the industry. Although this is not as high as the NEP amount, I would still expect effects to be devastating to the Alberta economy. In sharing my personal history, I hope you can appreciate how worried I am when governments tamper with the economics of oil or any business for that matter. My [Information Removed]is currently in his 2nd year of Engineering and I sincerely hope that history does not repeat itself. Sincerely, [Information Removed]
RRE2571 Hello, As an Albertan working in the petroleum industry, the royalty review is something that is very important to me. Not just me, but the health of the socio-economic climate as well. It is completely apparent that viewed on a world wide scale, us Albertans are getting short-changed on royalties. This bodes poorly for the residents, the tax payers. There are multi-billions being poured into mega projects in a small geographic area, and yet it is up to the government to provide the necessary services for the communities to grow and develop. I do not see how this is sustainable, or even a reasonable proposition. Alberta is experiencing growing pains. We are all feeling it. The recent influx of cash for government funded projects is a good start, albeit about five years too late. We need a vision for the future, and it involves getting "our fair share". The oilsands are a world scale energy resource. The world wants it. The demand will not cease. It is our obligation to do something great with it. We need to build this province into a world leader. A good place to start is to increase our take of the pie. It is imperative that the premier implement the royalty review without making any changes to the recommendations. The oil companies will not slow down exploration and development, do they ever when the price of the project double? Thank you for providing a forum for feedback. [Information Removed]
RRE2572 My suggestion is very simple: Step One - implement the Review Panel recommendations. Step Two - put every penny of the enhanced revenue into the Heritage Savings Trust Fund. The second step removes the political liability of trying to spend or find reasons not to spend the new revenue in the short term. The Heritage Fund is the best way to prepare for the decline of conventional oil and gas in Alberta.
RRE2573 The royalty review (as I have said for years) is dead on!! We've been getting ripped off for years. (Thanks King Ralph) We can't even meet half way. It must be the full 20% (I'd like even higher.) If Encana does slow down, who cares. (our oil and gas isn't going anywhere) It's just a bluff anyway. And on top of that, this economic boom is great for these big companies and most other corporations but it isn't so great for the average guy. Our buying power is poor and we don't all benefit from this boom. A slower development would be great. PS I'm sure 80% of all Albertans realize we've been getting hammered by the big corporations now and without a minimum 20% increase in royalties, I'm sure the Liberals would win a landslide next election and I sure don't want that.
RRE2574 Please have a second opinion done on this review. Our service rig industry is already at a 5 year low utilization rate. I could not survive on lower income as I was just married and am expecting a newborn. As an Albertan, I am used to not seeing my fair share already and with the previous surpluses and our growing Heritage fund, I find it unnecessary to increase the tax burden of companies already supporting our province. Increase minimum CAODC guidelines for pay to keep up with or surpass inflation and Albertans will be compensated fairly and directly, instead of continuing letting our government tell us what is good for us and OUR money.
RRE2575 My employment is based on the drillng of gas wells in the Foothills. The proposed increase in gas royalties and elimination of the Deep Gas Royalty Holiday would seriously limit the number of gas wells drilled in the Foothills. I have not told my wife what the impact would be as I do not want her to worry about me losing my job. Gas well drilling is already seriously impacted by the low gas prices and I was surprised to see that gas royalties could be increased. I can not understand why the land sale bonuses were not factored into the analysis. I am very concerned. [Information Removed]
RRE2576 I support recommendations in the report and request that the government implement them immediately.
RRE2577 After viewing calculations of what this Royalty increase would be like I believe that the Royalty Review Panel is wrong with their calculations. I believe that a 20% increase would be reasonable but the calculations that I saw would be more like 49%. This would be unacceptable and would have terrible effects on the industry that I work in. If this was to be implemented as is I can assure you that in a couple of years you will be as unemployed as I will be. I strongly urge you to review and consider this review again before you make any decisions.
RRE2578 Good for Mr. Stelmach and co-workers, to review the royalty agreement. I agree with his move to increase the fee's. Everything else has increased in this market and don't be discouraged by the " Encana's Saber rattling ", that they will move $ 1 Billion of their money out of Alberta. When oil hits $ 100.00 to $ 120.00 a barrel they will be back. The Alberta gov't is hitting this at the right time, just when the price is going to make its next 20 % increase.
RRE2579 The proposed increase seems very steep. Why would you want to discourage work being done in Alberta? I feel that this proposal is going to force companies to look elsewhere to make a profit. I don’t think most business’ are around because they don’t earn anything – what would be the point. Alberta center’s around our natural resources and oil is a big one. We have a thriving economy right now and if this goes through – companies will look elsewhere, likely set up offices elsewhere, and hire people NOT from Alberta. It is not just those people that will lose their job here in Alberta – it is all the business’s that rely on those people having jobs in industry and spending money at their store. The trickle down effect from this could send Alberta into a downward spin. Why on earth would we want to do that?
RRE2580 On September 20, I sent an email with an attached letter to the Premier with copies to Ministers Oberg and Knight, and my MLA, in which I supported the Panel's conclusions. (I have not yet received any acknowledgement of the receipt of that email.) I sincerely hope that the government will not be intimidated by the disgusting threats from some companies whose comments represent a disgusting display of corporate greed and arrogance. There is no "golden egg" here; if the "goose" laid anything, it was a "rotten egg" which has caused unsustainable growth with a horde of attendant social, environmental, political and economic problems in this province. Some slowing of the provincial economy would be good. I wish to point out that I am a member of the Alberta PC Party and a [Information Removed]business consultant.
RRE2581 In my own words, I feel that the government "missing" or not properly collecting the royalties is NOT the oil companies fault...and the government should be handling this situation much more delicatly because if the oil companies decide to pack up and leave, it will put over HALF THE PROVINCE out of jobs and possibly on the streets. The government is too greedy...and if they did their job properly we as a province would not be terrified about losing our jobs, and homes!
RRE2582 I think that the fight between the two giants, the oil companies and the government is gonna be felt by the little guy. The Guys and girls working in alberta's oilfield.
RRE2584 As a taxpayer and voting member of the PC party of Alberta, I would like to strongly voice my opinion that the government NOT adopt the recommendations put forth by the royalty review panel. The effects of a further downturn in the industry in Alberta will hurt all Albertans, not just those working in the Oil & Gas Industry. Should the government ratify the recommendations as they stand today without further consultation and proper review -- the recommendations are flawed in many, many areas... they will lose my vote and membership to the party. I realize that Albertans have a right to their fair share, but this isn't the answer. I'm sure Albertans don't want recessionary moves.. the Alberta Advantage will be worthless. Thank you.
RRE2585 Unbelievable, is the only word that comes to mind that truly describes the way I feel about the royalty review circus that is currently unfolding in the media. How could this government allow this royalty review to turn into such an emotionally charged public spectacle? This flawed process, that should have been discussed with all stakeholders behind closed doors, is now being displayed in front of the world investment community. Alberta’s reputation in international financial circles is now in shambles. The damage is already done, no matter how much or little royalties are raised. Investors may come back but it will take a long time. Investors don’t like to be lied to and deceived. Harper promised he wouldn’t tax trusts. Alberta promised a stable economic regime and the “Alberta Advantage.” Capital moves quickly around the globe and will find the best risk adjusted rate of return. Alberta and Canada are viewed as risky now and just as confiscatory as Venezuela. If you don’t believe it, talk to investors from Europe or the US. It is a shame because it took Canada 15 years to re-build a good reputation after the NEP. The economic prosperity of this province is generated from the entrepreneurial individuals and companies that have thrived in this financially viable environment, not the government. If this government needs a fast buck, raise taxes (Oh no! we can’t do that, we will lose votes), don’t tinker with the system that got us to where we are today. If one individual loses their job or if one energy project is cancelled because of this process, then you have failed the people of Alberta and should not be given a continued mandate to govern. In collecting up front land lease payments, the Government knew that industry was basing its analysis and making financial decisions on the assumption that the Province would maintain the “Alberta Advantage” of a stable fiscal regime. It is plain wrong not to grandfather existing oil and gas leases from new royalties. How is it possible to ignore the fact that people and companies bought these rights? A deal is a deal. If the government now thinks royalties are too low, it should honour existing rights and raise royalties on new leases. That would be fair, but then this has never been about fair. I, Personally, would have been embarrassed to use Venezuela as a viable comparable regime. What is next? A government sponsored study concluding that Albertan’s enjoy too many political freedoms based on a comparison with China, Myanmar and Iran? There is a reason why Venezuelans are so poor despite being blessed with massive oil reserves and other natural resources. High levels of Government involvement in oil and other Venezuelan industries discourages the private investment necessary to generate economic growth and prosperity. More government, less wealth. If anything, Venezuela should be a shining example of why royalties should be lowered. The entire report of this inspired panel was crafted to meet their agenda of justifying increased royalties. Their sole objective was to raise royalties as much as possible. Why didn’t they try to figure out (prospectively, not retroactively) what level of royalties would generate an appropriate risk adjusted reward while maximizing long term benefit to Alberta and its citizens? But “wait” you say. “That determination is extremely complex and clearly beyond the talent, knowledge and wisdom of a panel of political hacks. “We would need a different panel for that.” We already have that panel…..It is called the free market. I am astonished that we have come to this in Alberta but hopefully the damage will be minimal when the Government reaches its decision. It is unfortunate but clear that the Government will raise royalties in some manner as they now need to appease the uninformed folk (who likely will not reap any individual benefits from this expected $2BB windfall) and the best we can hope for is the smallest amount of carnage in the Industry and the Province. One thing that is abundantly clear is that this government will not do what is in the best near term or long term interests of the Province. There is only one factor impacting it’s decision; do whatever is most likely to get re-elected. Stelmach started this process in order to win his parties leadership vote, not because it was the right thing to do. Now he will make a decision that he believes will ensure his election as Premier. As a life long Conservative I shutter to think that I will actually contemplate voting for a Liberal candidate in the next election, which incidentally could not come quickly enough! I would strongly encourage you to consider recommending a quick and decisive solution to this situation, which will have the least effect on the energy industry. Your political future may depend on it…. Incidentally, this is the first time I have ever felt strongly enough about an issue to write about it. Regards [Information Removed]
RRE2586 I am opposed to the idea of raising the royalty charged to the industry that put ALBERTA on the map. Without this industry the government of Alberta will be spending millions in Unemployment, Social Services, Food Banks, etc. Bankruptcies will dramatically increase due the rise in housing in Alberta......and then being without a job. The Alberta government promoted, lured and invited this industry to the province, and now you think you can take advantage of the dollars and stability that they bring to US......the people of ALBERTA. The government claims US Albertans would see more cash in our pockets.....I don't recall ever receiving a cheque from the government of Alberta for Royalties in the first place. It is my opinion that the new government of Alberta is trying to fill their own pockets with that you can cover the UNACCOUNTED expenses the politicians have spent. A word of caution to Mr. will be without a job should this new charge of royalties be enforced. It is only common sense that is needed to see the big picture........WHY DOES THE GOVERNMENT WISH TO CHEW OFF THE VERY HAND (INDUSTRY) THAT FEEDS OUR PROVINCE. I am not college educated......nor do I need to be to understand the consequences US ALBERTANS (not politicians) will be faced with. And WE ALBERTANS will be coming to the government of Alberta to bail us out. Mr. Premier you said you were for the Alberta people........where the hell are you? You have already been in my pockets with the mention of this new royalty.....the industry has slowed right down. Thanks alot. LOL Mr. Premier. You have only been in position for a short while.....the others before you worked hard to bring Alberta to the status is has the world. The removal of one vital brick will bring it all coming down. Do you, Mr. Premier, want this monkey on your back? Do you, Mr. Premier, want our children to have to re-build a burnt bridge that you put afire? The only one mistake Ralph Klein ever did.....was to entrust you with our welfare. Ralph should never have left; there does not seem to be anyone out there with his good common sense for taking care of his people. PS: I did not vote for you in the first place, nor will I ever vote for anyone who wishes to put Albertans, (you're wage payers) out of a job. If you haven't guessed......I am employed in the industry. Will you be paying for my re-training for a another job, and paying for my home, and buying my groceries, and paying for our clothes, and paying for the sporting programs while I'm in school? NOT LIKELY. Oh, maybe you will use the new royalty funds to pay for all the above. Or maybe, you would like to first pay all the expense accounts that are unaccounted for. (CROOKS) Theft is a crime where I come from. Yours truly, LOL Teed Off Albertan (no.... not golf......can no longer afford it thanks to you) I would expect a reply from YOU, Mr. Premier, not your gopher or caddy. CC: To everyone I know, and so on, and so on, etc.
RRE2587 Mr. Stelmach, I was not originally going to get invoved with what is being said regarding ther Royalty review, however with all the verbal slinging in the media from the sides I thought I would share my confusion with you in the hopes you can bring clarrity to the issue. I have not read the Royalty review pannels recommendation in detail, however based on the oppostions retort I believe I have some understanding of what producers are saying and what regular Albertan's are saying. To me I can't understand why the review pannel has not responded to the critizm of their report (have you instructed them on this). The producers have spent an enormous effort in disecting the panels report and I have even seen revised Bugets all the way down to the number of wells imacted should this royalty scheem be adopted. I have never seen a proposed change in legislation not be defended by a government. I'm I missing something here? I hope that your response to Albertan's on Oct. 22 brings clarrity to this issue as I feel the regualr Joe Alberta does not have all the facts to offer an educated opinion. Sincerly, concerned
RRE2588 I have voted Conservative in the past and consider myself to be business friendly. With that being said, I wholeheartedly endorse all recomendations of the review panel. Anything less than the implementation of all of the panel's recomendations will lead me to vote, donate and work for another political party.
RRE2589 Hello, As an Albertan working in the petroleum industry, the royalty review is something that is very important to me. Not just me, but the health of the socio-economic climate as well. It is completely apparent that viewed on a world wide scale, us Albertans are getting short-changed on royalties. This bodes poorly for the residents, the tax payers. There are multi-billions being poured into mega projects in a small geographic area, and yet it is up to the government to provide the necessary services for the communities to grow and develop. I do not see how this is sustainable, or even a reasonable proposition. Alberta is experiencing growing pains. We are all feeling it. The recent influx of cash for government funded projects is a good start, albeit about five years too late. We need a vision for the future, and it involves getting "our fair share". The oilsands are a world scale energy resource. The world wants it. The demand will not cease. It is our obligation to do something great with it. We need to build this province into a world leader. A good place to start is to increase our take of the pie. It is imperative that the premier implement the royalty review without making any changes to the recommendations. The oil companies will not slow down exploration and development, do they ever when the price of the project double? Thank you for providing a forum for feedback. [Information Removed]
RRE2590 Dear. Mr. Slelmach, My stance on this issue is our province is based on the oil and gas industries. The government is collecting a great deal of money already from these companies. I think that a small increase, let's say half of what this this report is saying would be fair. The rest of the world is watching and we sure don't want to jeopardize what we have here in Alberta. On a personal side of things we lost money on the Trust companies and we also have money invested in oil stocks that is for our retirement so we will be watching "very "closely what you will do and if you want my vote the next time you want to be elected I would say make the right decision! [Information Removed]
RRE2591 October 9, 2007 Dear Mr. Premier, I am an Albertan who has worked in the oil industry in Calgary since 1983. I have never written a letter to the Premier before but feel I must write and register my opinion about the Report of the Alberta Royalty Review Panel. Since the release of the Report I have made an effort to become informed about the recommended changes and their potential impacts to the oil industry and the citizens of Alberta. Whether the public accepts it or not, representatives in the oil industry are in the best position to understand the economics that drive this business and they are also best equipped to predict capital spending and risk in different fiscal regimes. In the press, oil company representatives are portrayed as bullies when they say that capital budgets will be reduced if the proposed changes are implemented. Wouldn’t that be the same as someone telling you that the house you planned to purchase for $300,000 would now cost $400,000? You might respond by “I can’t afford that amount and I can’t buy that house”. It’s not threatening, it’s stating a fact. I’m not sure what they’re supposed to do. The oil companies have to take on all the risk, and cover all the costs before any investment can be recouped. Often, these are long term projects, particularly in the case of the oil sands and other non conventional plays. Apparently, the Report has not taken that into account. Why not? I work for two international oil companies. Both of them say the domestic (Western Canada) return on investment is the lowest of any of their properties. Why does the Report that Alberta is not getting their “Fair Share” compared to other jurisdictions? Does the Review Panel recognize that the proposed changes will have far reaching impacts, not only in terms of who is affected, but also for the length of time the effects are felt? After working in the oil industry for 25 years, this is the first time I can remember new graduates being hired on any scale. Through the late 1980’s and into the 1990’s, enrollment in faculties such as Geology, Geophysics and Petroleum Engineering dropped off as there was no hope of finding a job after graduation. I would like to think that my children could be part of an industry that is the main driver of the Alberta economy, but changes proposed by the Review Panel would definitely leave them with fewer opportunities. I have heard people say that oil industry should “slow down”; that the pace of development is too rapid, the oil industry executives are too rich and arrogant. If reversing the current boom is the goal of the Stelmach government, the changes outlined in the Report will have that effect. The public may not realize that the slowdown will not only impact the rich oil industry executive, it will impact the standard of living of all Albertans. The satisfaction that the oil industry executives are making less money may seem hollow when that is considered. Sincerely, [Information Removed]
RRE2592 Think very carefully before enacting changes to the royalty structure. The industry is already under threat from massive capital and operating cost increases which have outpaced oil price growth. Low gas prices will also significantly impact investment. The future of Alberta lies in a strong investment environment not in a short term gain in royalty generated revenue.
RRE2593 Please DO NOT increase the royalty rates at this time. It would be a detriment to the Alberta economy right now.
RRE2594 I agree with the royalty review report in that there should be a higher percentage of royalties for the oil and gas resources that comapnies are extracting from Alberta. These resources are non-renewable and as such should provide a better royalty rate than is currently used. The rate should be adjusted to levels that are commonly found in oil and gas production areas around the world such as Norway. Thanks.
RRE2595 The oil and gas industry is a very well balanced system which re-invests large amounts of money in the province of Alberta. Through the mineral rights leasing and continued drilling for conventional reserves the reinvestment in Alberta's economy is significant. For government employees and environmental activists to think they understand the business of exploring for and developing oil and gas is very presumptuous. The irresponsible headline of the study implying that Albertan's are not getting their fair share is just a media stunt. I am very disappointed. We are at risk of destroying the economic boom, and I do not believe that companies will continue to invest billions of dollars in Alberta without the prospect of a reasonable pay out or a reasonable return on investment. OIl and gas drilling and development is a marginal business and it will not take much to drive out the very companies which are investing in the industry. Random changes to royalty structures adds an element of political risk that is unacceptable. Proponents of a royalty grab believe that oil companies make too much profit. Have they considered that the profits become budgets for reinvestment. Does the current government have the maturity to understand the issues and make the right decisions for Albertans? This is an issue of continued economic prosperity for the province and we must not let pride get in the way of doing the right thing. A continued vibrant industry will result in more than the suggested 2 billion dollars for the province. A collapsed industry will be a disaster. Costs have increased significantly and reseves per well are decreasing. Move with caution and a deep understanding of consequences.
RRE2596 I am writing to you today to express my concern about the report of the Royal Review panel and provide my perspective as to how the Alberta Government should respond. I work for [Information Removed], principally dealing with our oil sands developments. Our company has provided its perspective to the Premier already. While I do not profess to understand all the aspects, even if the [Information Removed] analysis is half right, it gives me real cause for concern. There is no question that your party is in a predicament with respect to sliding popularity. There has been a chorus of industry frothing about the impact of the recommended royalty changes. This is not to be taken lightly. I urge extreme caution on fiddling with something this important to the Alberta economy. I acknowledge the activity levels in Alberta are higher than earlier predicted and have created undesirable pressure within the Alberta economy. Managing the growth through the royalty take is a blunt instrument and would likely have lasting unintended effects. Here’s why I believe this to be true, particularly for oil sands developments. It has to do with what I call time-to-effect. I agree with others that have said the royalty changes won’t really change spending levels in the near term for oil sands. That is because it does not make sense to halt construction of multi-billion dollar projects mid way through construction. The changes will, however, have a much higher likelihood of impacting long term oil sands investment. Pre-1995, oil sands projects proponents had to negotiate with both the province and the federal government on royalties. This was a barrier to new investment and in acknowledgement of this fact generic royalty terms were put in place. It has been over 10 years since the terms have been in place and we’re just now seeing the growth that has been spurred by higher oil prices. Changing the oil sands royalty terms now won’t be felt for several years. This fact has likely not gone un-noticed by your government – that there is short term political safety in making changes (specifically related to the oil sands) as the impacts in the economy on the voters will not manifest until well after a Spring 2008 election. I implore you to take the long term view as so much is at stake for me personally and for my family. My boys are now entering their teenage years and I am also looking out for their future in terms of opportunities for working in the Alberta economy. The way the Conservative party handles this will be directly reflected in my vote in the next election. I urge extreme caution on such an important matter. Sincerely, [Information Removed]
RRE2597 Protect jobs for oil sands. Don't break down a strong economy. Leave royalties alone.
RRE2598 I read one line in your report which somes up the government very nicely "the companies are making too much" . Never forget that fereral and provincial governements have never been prudent with our tax dollars and that is a fact! Taking incentives away from the jr. and mid size exploration companies will be disater in the short term and compounded with the recent trust ruling and flailing gas price, the decisions the government and so called industry experts make could fundamentally damage the entreprenurial spirit Albertans are famous for. LESS governement is more. I moved from out east to a vibrant economy where there is a sad belief that the more you tax the better you will all might as well presribe to drinking the same Koolaid they have been drowning in for decades. Hope you are prepared to pay my mortgage when I get laid off.
RRE2599 In my opinion, we need to get our fair share. I support the government's move to increase the royalties charged. We must look forward into the future to assure that Alberta can survive the rougher times. The industry has been getting an almost free ride for too long. [Information Removed]
RRE2600 Thank you Mr. Premier for having the guts to stand up for the people of alberta. These are mainly foreign owned oil companies who are destroying our wilderness areas for the sake of a few greedy, greedy big business oil companies. Permanent damage has been done already and they are still getting away with low amounts they pay to us. When you consider the environmental devasation, harm that can never be rectified - toxic water in the form of water left in barrels that will eventually seep into the athabasca river - which provides drinking water for millions. This is frankly horrifying. I pray that Mr. Selmach will follow through and listen to the people of Alberta. We cannot destroy our children's future and leave them with a legacy of pollution, health problems (which the tax payer will pay for) animals now with blindness in these areas where the drilling is high - and all the other risks and safety and health risks that have been kept hidden from the public. Thank you mr. Stelmach for having the courage to go ahead and speak for Albertans not only for the greedy oil patch.
RRE2601 We, like most Albertains do not work in the oil patch and receive not direct benifit from the price of a darrel of oil. I wish the government had control the growth of the economy rather than letting it get right out of hand. We now suffer from lack of infrastructure in schools , health care, roads, etc. Many of us are sick of it. All we get from the boom is inflation. It is now unlikely my children will be able to afford a house. Am I happy that the the oil companies get richer and richer? I think not. Please do not make a tooken approach to this and make them pay another 5%. They need to pay their fare share. As an Albertian it is my oil, not theirs. If they want to move out of Alberta , great let them go, they'll be back.
RRE2602 I think the Royalty Review Panel did a good job. Their recommendations should be implemented.
RRE2603 I agree wholeheartedly with the recommendations of the Royalty Review Panel. The industry indeed has the ability to pay much more in royalties and if there is any associated slowdown in economic activity related to oilsands development that is probably a good thing overall. The oilsands industry is out of control and the frenzy of development and spending has little if any regard for the environment. Hiking royalties as per the Panel Report should be part of the Alberta Government strategy to manage economic growth in a manner which fully takes into account environmental impacts and particularly rising carbon emissions. Contrary to some observers and politicians, it is not a bad thing to slow down economic development in this province to safeguard the environment for future generations. Anything less is highly irresponsible and falls short of providing good responsible government. [Information Removed] Calgary Alberta
RRE2604 Increasing conventional oil and gas royalties at this time seems like a very foolish move. The risk of finding reserves of oil and gas has increased substantially over the past 10 years such that we should be trying to attract capital not scaring it away. When oil and gas prices rise, the government receive increas cash from companies bidding on lland so there should be no requirement to raise royalties. Raising royalties will only reduce spending on land, drilling and employment. Why go down this road and kill or injure the goose? With respect to oil sands, I am somewhat confused by the report as there appears to me to be two types of deposits.One which is pick and shovel (mining) and the other deeper deposits which require drilling and steam injection or fireflood or other inovative approaches. Each should be treated in a different manner. A 1% royalty to payout seems to me to be a little low and perhaps an increase to 5% is justified without all the other increases??
RRE2605 The Royalty report is very clear in showing what needs to be done to benefit all Albertans, and not just those with financial interests in the O&G industry. The current government needs to see through the Oil industry spin and do the right thing. Other jurisdictions are successfully producing hydrocarbons and taking significantly more royalty revenues. I have worked in the Oil industry in Calgary for 20 years, and if the local producers here want to whine and threaten to reduce their expenditures, then the Alberta Government should PLEASE call their bluff. There are a multitude of international companies that would be very happy to move in and produce in one of the most stable, predictable and highly profitable oil producing areas in the world. That statement is still very true even if the Royalty Review's recomendations are implemented. [Information Removed]
RRE2606 Hello, In regards to the recent debate over oil and gas royalty rates, I am strongly in favour of a substantial raise. I believe 70% (if mot more) is reasonable; this resource belongs to the people of Alberta and Canada and there should be sufficient compensation for the profits it brings. No one should put off a raise in royalty rates based on thinly veiled threats from companies that jobs or profits will be lost, or even that they would go elsewhere. Perhaps these corporations could try drilling for oil in the Canadian shield. Alberta is in an ideal position to increase the quality of life of its residents; we have oil and we can decide what we want for it. I strongly urge you to make a decision for people over one for business. Oil companies have had more than enough years of excessive prosperity. Regards, [Information Removed]
RRE2607 Oil and gas is what drives the economy in the province of Alberta. The Alberta goverment is not poor and neither are the oil companies. I work in the oilpatch and I need my job to survive. If there is no oilpatch work the current economy in Alberta will take a 180 degree turn. It not only will affect oilfield companies and other oilfield related industries, but it will ultimately impact everybody (negatively). I hope that this Royalty Review Panel will be settled in a way where all sides can benefit. In my opinion people in this province will benefit more from a strong economy driven by oil and gas rather than receiving more royalty money.
RRE2608 I support the need for a rebalancing of the royalty regime and addressing the coming challenges that will be imposed by the decline of revenue from both conventional oil and gas. The most significant challenge in implementing the royalty review recommendations will be in achieving a balance of appropriate compensation levels and not tipping over into a puntive level of taxation. The failure by past ministers to move forward on this issue is one that borders on criminal. Their failure has resulted in the current adversarial approach from industry, instead of one that should have been already negotiated and already be in transition to full implementation. The lost revenues from this failure to act are the cost of their dereliction of duty, to borrow a military charge.
RRE2609 I am a 55 year old, self employed directional driller with 34 years in the oil patch. Drilling activity is already way down from last year. If Ed Stelmach listens to the apparently brain dead bureaucrats who wrote this report and the leftest looney journalists that support it, the Alberta Conservative Party will have brought on a new National Energy Program. Please promise me you will not destroy our economy.
RRE2610 Dear Mr. Stelmach, Bravo to you and the panel review for finally having the guts to address the royalty issue. It is obvious that Mr. Klein and his Calgary oil and gas friends weren't going to touch it, so I applaud you!! And please know, that although you are both conservatives - the majority of Albertans realize that you inherited this 'mess' and won't paint you with the same brush as Klein. In your review and decision, PLEASE do the right thing for Alberta and don't let the current fear mongering being heaped upon us from the oil and gas industry deter you from taking the right path. I look forward to the pending decision and this will definately impact my vote in the next election. Thank you.
RRE2611 Support for the royalty review The only real question is when the oil runs out in X years, what will we have to show for it. I also don't think for a minute that the threats of big oil about leaving have any substance. Where are they going to go? Alberta has the largest, most stable supply of oil anywhere. Does it mean that they may put an upgrader project on hold? Perhaps, but I'm not sure that's a bad thing anyways. They will however be back at some point. Will they put all of them on hold. Not a chance. Remember, we don't have to get all the oil out of the ground in the next 10 years. It will be needed for a long time and future generations should benefit, through continued (and increased) royalties and proper use of the Heritage fund. I wouldn't object to a break for small Alberta based producers (are there any left?) but big oil is making record profits.
RRE2612 I am in complete agreement with the recent Royalty Review Report. Our province is unfortunately selling its soul to support world addiction to fossil fuels. It has been said that our consumption rates for fossil fuels are overtaking production rates; therefore, oil companies will not just walk away from our reserves because of increased royalty rates. If they are willing to pay higher rates in other countries, why not ours? Would it not be better to charge higher royalty rates, and, with the increased revenues, invest in renewable energy infrastructure and technology? We fail to look ahead to our future generations after we have squandered all the non-renewables. Sincerely, [Information Removed]
RRE2613 I understand the Government's want for a larger piece of the pie, but I hope they understand that the pie might be all gone if they implement these changes. They hold the future of alot of Albertan's in their hands, and I assume they will make the right decision and NOT take the recommendations of the Royalty Review.
RRE2614 I moved away from BC because again and again panels of "experts" supported disasterous moves made by the provincial government. Our fisheries, forestry and mining industries were all badly effected, and thousands of working families suffered. If the Royalty Review Panel is wrong and my family gets negatively impacted, will they take responsibility? I think not. The Royalty Review Panel seems to me to be armchair philosophers who are willing to gamble with other people's livlihoods. I do not support them, I do not support premier Stelmach, and I do not support any drastic changes in oil royalties.
RRE2615 Whoever is on this panel is not thinking correctly. If the royalty changes expressed, make the extraction of various natural resource types in the province uneconomical, the energy companies will be cutting back their investments in a major way. Cut back of investments will lead to loss of jobs -- period.
RRE2616 Leave the royality alone.. Don't destry our Alberta economy. We don't want the days of the early 80's to come back again. Our economy is strong.... Leave it the way it is PLEASE
RRE2617 I will again reiterate the same suggestions I made two weeks ago. Adopt the Commission's recommendations in whole. A fifty percent increase in royalty rates across the board, with another fifty percent being phased in over the next five years. HOWEVER, this money go to Albertans with residency status of five years or over, IMMEDIATELY. Average Albertans have not seen any benefit what-so-ever in their standard of living in this so-called boom. Companies yes, individuals no. You have managed to flood the market with this propaganda of a "labour shortage", and keep wages depressed. There may be a shortage of cheap skilled labour in this province; there is definitely NOT a shortage of skiilled labour. [Information Removed]
RRE2618 Please do not raise the Royalty rates without going back and re-examining your data. A quick decision with inaccurate data will end up harming all Albertans. The oil and gas industry injects a lot of money into our economy in many ways other than royalties. The increased rates could potentially decrease investment in Alberta. Please slow down and re-evaluate this carefully!!!
RRE2619 After a full corporate review of where we are going as a province. I have realized that I will be one of the First to be unemployed in Alberta. I hope the 2 Billion will be there for me to draw from at that point. Does the province need More money??? If it is being spent that poorly, we need to look at that problem as well. Does anyone in Government understand that the oil companies "re-invest" , which means it Stays in Alberta. I don't see the $30Billion Kitty being handed out to us now, so how is $2 Billion more going to help? To take the money in a tax form, is going to cripple the Oil & Gas sector / Alberta Economy ... I spend all my money right here at home. I operate gas fields around [Information Removed], where we have Not had any drilling activity in gas for almost 1 Year due to economics (low gas prices). This will be a death sentence. Hope there is work in Sask. for a career operator. A very worried,[Information Removed].
RRE2620 To whom it may concern, I am 24 years old and work for an oil and gas well servicing company [Information Removed]. I came here just over 5 years ago to make some serious money in the Alberta oilpatch.Now I have built a house and have worked my way up in the company in hopes of making this a lifelong career. I have contributed alot to the province of Alberta in my short lifespan and will do so for many years to come. If this Royalty Review proceeds the way that the government has suggested, I will have no choice but to sell my new house and move. Because like many others my job and how much I work depends on the oil companies keeping us working. When I see memo's from the oil companies that read "many projects will become uneconomic" and that "the proposed change creates a risk of drastic reduction of activity", a person starts to think of a career change.Please consider my views expressed,and that of many others in the same predicament when making a decision in your final report. Sincerely [Information Removed]
RRE2621 Please ensure you have my best interests at heart as an Alberta. I am both an employee and shareholder in the resource industry, and I am concerned that the Royalty Review recommendations will have a negative impact on my employers activities in Alberta. Before sweeping reforms are sought, discuss with industry and be sure you have the correct answers.
RRE2622 I believe that if this is implemented it will have a very negative effect on Albertas economy. And I think the government estimates are grossly under estimated. The negative impact will extend to a very high percentage of urban and rural areas that rely on oil and gas business.
RRE2623 Personally I don't think it is a good idea to up the royalties,taxes are enough the way it is.I own a small company and Revenue Canada takes half my income already. If the oilfield shuts down my families income is gone
RRE2624 I believe that the oil companies have not been paying enough royalties to the people of Alberta for many years. I support the findings and recommendations of the Royalty Review Report. [Information Removed]
RRE2625 you say as albertans we would like to see some long term benefits ,true but when we pay more for gasoline , heating , and electricity, when we produce it , can that be justified. of course i dont understand why this is the way it is , and why can these things be purchased in other provinces at lees cost?? These are the questions we have when this comes up .
RRE2626 In my opinion, the recent proposal is an enormous tax-grab, benefitting mainly Alberta, and eventually paid for by the general population and industry in Canada, caused by necessitated increases in oil and oil-based products. It's a typical NDP and Liberal attitude and not a traditional Alberta solution to pay for more spending money. I'm disappointed and against adoption of the proposal.
RRE2627 I believe that a change in the way that royalties are calculated in Alberta is long overdue. As was clearly stated in the report, the petroleum resources in Alberta belong to the people of Alberta. It is imperative that as much of the revenue generated by these resources as possible, be available to the Government of Alberta to administer on behalf of the owners, the citizens of Alberta. Given that this is a finite resource, the opportunity to realize this goal is dwindling with every barrel pumped unless the proposed changes to the royalty structure occur. [Information Removed]
RRE2628 I urge the Premier to make sure that Albertans get their fair share of oil royalties. The present regime is not giving Albertans enough money. If increased royalies slow down development, I see that as an added bonus. The Edmonon economy is overheated. Businesses not related to the oil and gas industry cannot get people to work for them. In the long term will hurt the province. Take a larger share.
RRE2629 The timing of the report is not favorable. The market place in the Oilfield Service sector is down significantly. If the report had been released in an active year such as 2005 the Royalty Review report would not be looked upon as a increase in tax, but moreover as "can we have our share too". I would like to see Albertans get thier share. Would it be prudent to wait a couple of years until activity levels are on the up swing or at least leave royalties alone on conventional (depleting) oil & gas and target a marginal increase on oilsands while oil prices are high along with the reserves the oil sands provide.
RRE2630 Sorry, but this a typical premier's address. Any premier in the country could have read this piece of wishfull thinking. Where's the beef ? regarding the "Resource royalty framework". According to premier Stelmach "Tomorrow we'll be releasing details of a new royalty framework". When tomorrow? Who has information about when tomorrow? I am getting really unconfortable about investing any more money in Alberta. There should have been a clear statement TONIGTH about that ROYALTY FRAMEWORK. Premier Stelmach may think "small investors" are not important, I respect his view but, at the same time, I will take care of my investments. I am a "small" investor in Albertan companies and i do not like at all the way things are done. Again, WHEN WILL "DETAILS" BE PUBLISHED TOMORROW, WHO KNOWS ABOUT THIS TIME (before market opens, during open hours, after market closes) ? THE WHOLE THING SOUNDS TOTALLY UNPROFESSIONAL AND NON ETHICAL. Have a good evening. [Information Removed] Try to respond in 3 working days, hahahha
RRE2631 I trust the government will do the right thing and carefully scrutinize the royalty review's recomendation to increase royalties specifically taking into account the tremendous cost pressures facing the industry. Their assumptions regarding costs appear flawed and as this has a serious impact on so many in the industry it is critical the facts be known before a ruling is made.
RRE2632 I am writing this letter to express my concerns about the royalty review and its findings. Having looked at the data I see no way that it is economically effective to raise royalties in the manner that is suggested in the review. I am quite disgusted with how the topic has played out from both the government and the oil company ends. The royalties can be raised, I agree with that and so do some oil companies, just not to the extent that the review recommends. The review numbers are WRONG. This will not only affect my family and friends that are directly involved in the industry but you can guarantee that the growth in other markets such as housing, real estate, goods and services, etc. will not only stop but decline. I never thought that Alberta would see a Liberal government and even though the PC party may win the next election by an uneducated opinion of the general population, I can assure you that in four years time you will find it hard to find someone who is happy with the economic downturn that will be started with the implementation of the recommendations by this review board. I hope you seriously consider the ramifications of the actions our government and take action by trying to reassess the Royalty data of other sources and not just the review panel. If this reviews recommendations go through as is you can look forward to one less vote in the upcoming election and I will also do my very best to educate as many people as I can in hopes that the government who put Albert into an economic tailspin does not get re-elected. Thank you for your time, [Information Removed]
RRE2633 I am becoming mildly alarmed that the large and rapid changes being recommended to the royalty system is/will cause unpredictable and negative results. I would urge our elected officials to take adequate time and avalible resouces to minimize the negative effects the proposed change will create for the Alberta/Canadian economic engine.
RRE2634 As a 47 year old second generation Albertan, who has always voted conservative I am deeply concerned that you appointed a liberal panel that has a liberal agenda. The data is seriously flawed if they used 10yr old cost data to justify the "windfall profits". Should this government kill the Alberta Advantage, I look forward to urging everyone I know to vote this government down in the next election. Look up Californication for the definition of what has happened to the conservative party, that made me proud to be an Albertan until now!!!!!!
RRE2635 Dear Sir; As a born and raised Albertan (now in my mid 40's), I've seen a lot of swings in our economy. I'm extremely concerned that the proposed changes to the provincial royalty structure will adversely affect the economy in Alberta - possibly in a catastrophic way. I firmly believe the review panel made significant errors in its review, particularily from costs standpoint and in its comparism of other royalty regimes around the world. Please don't do anything rash!! You're working with incorrect data, and we can't afford to get this wrong. Sincerely; [Information Removed]
RRE2636 Industry has, predictably, said things are fine as they are and their threats to leave if we change the structre are a lttle bit childish and disapointing! But, so are crys from the far-left decrying any activity or profit. Is there a happy middle? 1. There was a study of (22?) Royalty structures from around the world, how do we compare here and how big is the varience? 2. Perhaps a phased-in program that doesn't hit industry too hard, but allow us Albertans to capture the revenue and benefit from this one-time, non-renewable resource. I would be dissapointed if we just cave into either industry or those who will never be happy anyway; so I guess my vote is for a well thought out middle ground, balancing all interests! Thanks, [Information Removed]
RRE2637 I believe that royalty rates should rise substantially. As stated by others, these resources belong to all Albertans and we should all share in the associated prosperity, not just a few. Currently many oil/gas companies are attaining very high profits and consequently, other businesses associated with the oil and gas industry are also benefiting from the "Alberta Advantage". However, most Albertans are NOT benefiting from the "Advantage" and are struggling with increased living (utility, housing, etc.) costs.
RRE2638 Grave concern l believe that if the recommendations put forth by the panel goes through that it will cripple not only the industry but all other associated businesses involved either directly or indirectly. l like seeing the growth in the small town that l live in even though it has very little impact from the gas/oil industry. l think that the government of this province should spend more time looking at a viable way to slow the growth that has been occuring and figure out a way to extend it over a longer period of time. We all must remember what happened when the NEB rulings came through back in the early 80's. At that time things ground to a halt and took several years to recover. Looking at different models put into the panels proposal....where new development would not become a source of revenue for up to 6 or 7 years because of the royalty "grab" it would make no sense for companys to invest here. Knowing this...knowing that their capital would be shifted to other provinces or even overseas has me baffled as how the government would even consider allowing these dollars to potentially going elsewhere...and they will. l know that l would not build a house...let it sit empty for 6 years before l decide to sell or rent it. This may seem like a poor analogy but l would like to see a return on my investment long before that. l hope that this government will not just steam roll the panels recommendations through without giving all points the consideration that that deserve. DON'T LET THIS BE THE LEGACY THAT THIS GOVERNMENT WILL BE REMEMBERED FOR!!!!!. DON'T LET THE PANEL KILL THE INDUSTRY!!!!!
RRE2639 Dear Mr. Stelmach, I strongly disagree with the recommendations of the royalty review panel. Driving away investment from a capital intensive industry is suicide for the province. Not only will there be less revenue, when lease bonus payments are included, but there will be a permanent loss of tens of thousands of jobs. Enjoy your short lived political success from this desperate measure. I hope you sleep well knowing you may be ruining the lives of thousands of hardworking Albertans and families. I am a card carrying conservative and I never dreamed I would someday be driven to the evil Liberals from a conservative imposed National Energy Program 2. [Information Removed]
RRE2640 In response to the governments proposal to double the freehold mineral tax, I wish to lodge my opposition. The tax should not be doubled and in fact should be abolished.Our grandparents came to Alberta in 1902 to clear the land and purchse it complete with oil and gas rights.Freehold mineral tax dollars are not being used to provide services to Freehold mineral rights owners. Isn`t it the fundamental premise of the government to provide services to its citizens.
RRE2641 The analysis in the royalty review report is flawed and ignores economic reality of gas being at an all-time low. The Royalty Review Report proposed will ultimately have a negative impact on Alberta and Canada's economics.
RRE2642 Alberta, the beautiful and prosperous province than so many call home. It boggles my mind that the greed for more money could possibly out weigh the negative effects on our economy. We are debt free and have been seeing billions in surplus due to oil and gas, so why should slow down the whole countries economic engine for a few more provincial dollars? The amount of taxes being collected is up across the board already ,due to the money pouring into our province by the barrel. If fast food places cant fight the labour crunch and stay open, how are oil companies supposed to keep pace with closing margins. Maybe there does need to be changes made in the future, but slowing oil production now will stop all the spin off benefits we've seen in recent years. PLEASE for the sake of all albertans, leave the oil patch alone at least untill labour shortages and rising material costs settle down. Only then could we truly decide what our fair share is that we are entitled to. Thank you for taking the time to read this.
RRE2643 I would like to start by saying I support the Alberta government's position to increase royalties. I am employed in the oil and gas services industry so I make this comment after giving it considerable thought. Lately I have noticed that big oil companies are making claims through various media with threats that they will cut budgets, etc if the new legislation passes. I feel that these threats are just that and that they were predictable given that the oil compnaies may not be as profitable as they have been. I believe that the new legislation will have a positive impact in Alberta's economy and should be fully supported and adopted.
RRE2644 I agree fully with the royality report and believe that the recommendations are long overdue and should be implemented immediately. In addition I would add another recommendation. That being that the 1% royality break that is currently given should only apply to companies that upgrade the oil and SHOULD NOT apply to oil that is mined or extracted by other methods and piped outside the province or country. Albertans do not need to give away our resources or subsidize companies that do not add value or jobs to our province and are only interested in taking raw material out of this province as cheaply as they can. I can only support a government that promotes value for all Albertians and the way the government deals with this report will be a test of the new (post Ralph) government and an indication of weather big oil is controlling this government or weather this government is acting in the best interest of albertians.
RRE2645 How you, the goverment handle this Royalty Review will have lonbg lasting implications, remember 1980 when the Liberals implimented the NEP.. This is not a NEP., however it could have the same outcome. Tread very carfully.
RRE2646 Dear Mr. Stelmach, To adopt the Review Panel's recommendations in full would simply be biting the hand that feeds all of Albertans. The idea that all Albertans will win is a tremendous lie. They will actually be hurt by a higher royalty rate. Jobs will be lost and people will go elsewhere for work. Spending in the province will decrease and the econonmy as a whole will suffer. An increased royalty rate will reduce the amount of money that is spent on this provinces bread and butter (oil and gas investment) and thus the pie will shrink and in actuality the royalties the province gets will shrink. How is this good for the average Albertan? To say that we will be better off is a fallacy and people need to be told the truth by you. Thank you for your time, [Information Removed]
RRE2647 This illustration should help some of the denser MLA's to comprehend this issue: Why is it that no one in the government understands this, maybe some people should just start to talk slower. Here is a good analogy for the Stelmachistan government to consider while mulling over their “fair share” conundrum. I think this explains the opinion polls (75% in favor of the Royalty increase) to a tee. Of course, the panel doesn’t even consider the possibility that the “size of the pie” might get smaller rather than simply taking a bigger piece of a pie that stays the same size……. Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: The first four men (the poorest) would pay nothing. The fifth would pay $1. The sixth would pay $3. The seventh would pay $7. The eighth would pay $12. The ninth would pay $18. The tenth man (the richest) would pay $59. So, that's what they decided to do. The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20."Drinks for the ten now cost just $80. The group still wanted to pay their bill the way we pay our taxes so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?' They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay. And so: The fifth man, like the first four, now paid nothing (100% savings). The sixth now paid $2 instead of $3 (33%savings). The seventh now pay $5 instead of $7 (28%savings). The eighth now paid $9 instead of $12 (25% savings). The ninth now paid $14 instead of $18 (22% savings). The tenth now paid $49 instead of $59 (16% savings). Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20,"declared the sixth man. He pointed to the tenth man," but he got $10!" "Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got ten times more than I!" "That's true!!" shouted the seventh man. "Why should he get $10 back when I got only two? The wealthy get all the breaks!" "Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor!" The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill! And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier. [Information Removed] For those who understand, no explanation is needed. For those who do not understand, no explanation is possible. This illustration could go a little further and point out that if there had been 20 groups of 10 guys at the bar, with one paying the most in each group, not only would no one be able to pay the bartender, but neither would the bartender be able to pay his staff or his the banker. And if the bar and enough of the other businesses in town had to close as a result of running the 10 guy off, the bank would close, clothing stores would close, home construction companies would close, car dealerships, and so on. Eventually the tax base would decrease putting pressure on the schools to go to bigger class sizes, lower compensation, less police, less ambulances, etc.. Point is that the producer (in our case oil and gas) is at the headwaters of the cash flow through the entire economy. Cash flows from the producer to goods and services providers and government then on to more goods and services providers and governments again and again, resulting in a multiplication effect through the entire economy and tax base. When the cash flow is slowed or stopped at the producer (the watershed), there are many many many unanticipated negative impacts downstream
RRE2648 I think a review of the Royaly regime was long overdue. My biggest concern is the magnitude of the changes you are contemplating implementing based on what I believe is flawed and simplistic assumptions. The Canadian oil industry is unique and not easily open for comparison to other countries royalty structures. I think further industry input and consideration is essential before implementing such large scale changes.
RRE2649 I urge Premier Stelmach and his Government to adopt the recommendations of the Royalty Review Panel. The Panel provided a carefully balanced report with clear recommendations, not a “bargaining position.” By choosing to implement the report the Government will: . begin to address the imbalance in royalties (vis a vis other jurisdictions’ and in historical context); . probably slow the overheated economy of this province, which is actually causing difficulties for other businesses, social dislocation in communities, and hardships for some individuals; and . to a degree, preserve the profit from non-renewable resources for future generations. As expected, those involved in the oil and gas businesses (directly and indirectly) object to any likely reduction of their “bottom lines.” The outcry was to be expected. Should the Government choose not to fully adopt the recommendations; Albertans will hold Government accountable and expect clear and understandable disclosure of: . the information leading to that decision; . by whom it was submitted; . how it was verified; and . the Panel’s response. By carefully choosing the Panel and publicly releasing their report, you have put on the line not only their individual reputations on the line, but that of this Government. I am a retired Albertan with investments in the oil and gas industries, including the tar sands.
RRE2650 Although I agree with the fact that alberta should be recieving more, I think there are a couple of issues with the way it is being handled now. Over the past few "boom" years, there should have been adjustments made on a year by year basis. To try and capture everything in one fell swoop is not an intelligent choice to make now, especially with the dollar at par, and gas prices so low. If the changes are made as the panel suggests, I think we'll definitely see some major changes from our oil the wrong direction, budget cuts and layoffs will have to occur.
RRE2651 I think you should leave the royalty as is we are very fortunate to have the gas and oil to sell and with our short season to explore is very expensive.
RRE2652 I do not agree that we should try and extract further revenue from the oil sands. Its about jobs. We must keep full employment and continually create new positions. If you are not growing then you are going down. There is no status quo to stay the same. We must have continious construction of value adding upgraders and encouragement of huge investment in difficult recovery operations. Why do we need to collect more? We have no debt and have annual surpluses even after the highest per capita budget in Canada. We have been here before. When the wind is knocked from the sails the ship stops quickly and is very hard to restart. Do not allow our ship to stop in Alberta, my six children need jobs available here and now and forever. [Information Removed]
RRE2653 Premier Stelmach, As a resident of Alberta, and a citizen of Canada, I request that you fully implement the recommendations of the Alberta Royalty Review. I would prefer that Alberta invest less in oil and gas extraction. I would prefer that Alberta and Canada be leaders in the development of clean, renewable energy; that we set and regulate targets for reductions in greenhouse gas emissions (not reductions in emission intensity) as recommended by the IPCC; that we promote and develop industries that incorporate the true value of the extraction and use of natural resources in their products, including long-term environmental and health costs; that we not let corporations dictate societal priorities and political mandates. However, given the reality of resource extraction in Alberta, I implore you to at least ensure that in the future we will have the financial resources for education, health care, child care, senior care, public transportation, affordable housing development, cultural initiatives, wilderness protection, among others. I ask you to be creative in imagining how increased revenues from royalties can be used to encourage investment in clean, renewable energies and to develop employment opportunities for Albertans when oil and gas runs out, both of which will be inevitable mandates for future Alberta governments. I implore you to ensure that environmental assessments for oil and gas developments meet the highest standards, that new projects are not rubberstamped, and that the government takes the lead in coordinating development among all resource industries to ensure cumulative environmental impacts are minimized. I implore you to ensure that corporations pay in full for the water they use, for the restoration of the land, and for the health care of individuals directly impacted by development. I urge you to take very seriously the panel recommendations regarding enforcement, public reporting, accountability, and conflicting interests in the Department of Energy. I recognize that my comments go beyond the direct scope of the review, as was found by the panel in their assessment of the consultation process. However, I feel strongly that to only comment on one aspect of this issue is to ignore the reality of how these decisions will impact the future of this province. Please do not be bullied by the industry. Your job is to consider the future of the citizens of Alberta, not the future of corporations. Thank you for the opportunity to comment on this review. Respectfully, [Information Removed]
RRE2654 I hold shares in my RRSP for a couple of oil sands companies. It is a concern for me if the share prices stall or lose value as a result of slow downs caused by increasing royalty costs. I do not object to the review in principle but the amounts recommended do seem quite excessive. It causes me to wonder about the motivation of such an excessive amount, is it politically motivated, is it fair to companies who invest millions in our oil sand recovery? Do we really want to see an business and government fighting over billions of dollars. Our government already has a surplus and I am not against seeing more money in the provincial treasury, but it is a little difficult for me to understand a government who asks for more money from business with one hand and at the same time under funds schools, hospitals, cities, etc etc. If you can not use the funds already at your disposal to improve these conditions please leave the companies that will fund my retirement alone. [Information Removed]
RRE2655 I voted everytime to support Ralph Klein - since Stelmack has come into power it is very apparent that he does not support seniors in Alberta or does not consider that Edmonton is as important as Calgary and other communities in Alberta. If he every tried to get down Gateway or Calgary Trail at rush hour he would know why Edmonton needs to receive at least the same as other communities. He should try a live near this location. I will be keeping a close watch on his points of view prior to any election - and I can tell him that at present he will not or anyone running for the conservative party in my riding will not be receiving any votes from this household. I have never voted Liberal in provinical elections - but I am considering doing so in the next election Thank You [Information Removed] I was very proud to say that I was from Alberta and had no difficulty supporting Klein when he cut back to get Alberta out of debt - it was about time that government starting running the province more like a household where you only spend and purchase things that you can afford.
RRE2656 I'd like to know how much money was wasted on this shoddy review panel and report. A review panel is to review all aspects of an issue. They failed miserably in taking other issues into account. Never mind comparing apples to apples in the information. The information is very skewed. Was anyone in the panel and in this current government here in the 1980's? Why would you risk a replay of those events? Clawing in these revenues will result in a pull back in the industry. A industry that fuels this provinces economy. Is the government willing to support me and my kids when I lose my job. As it is I am 1 pay cheque away from losing my home. Not everyone in Calgary is on the gravy train. I am one of the have nots struggling to make my mortgage payment and put food on the table. I don't smoke or drink or go out to dinners/movies or anything for that matter. I live bare bones. If this royalty review goes through, I along with many other Calgarian are hooped. I am a rarity, I am a born and raised Albertan. I am struggling as it is in this prosperous Province. This Premier if he goes along with the ridiculous report will do a dis-service to all Albertans and will find himself ousted very quickly as no one is really impressed with his rein so far. Say NO to this Royalty Review, it is bad for all Albertans.
RRE2657 How can we accept a change in the royalty structure without a fully informed review which includes the think tanks in the oil and gas sector? How could our government impose such a drastic change in the royalty structure without reviewing the implications to the taxpayers and the rest of Canada? Basic Economics dictate that an increase in taxes will also cause an increase in unemployment and ultimately, if not tuned properly, a reduction in GDP. Have we fine tuned this? It seems not. We are all reading about what the government is proposing, but a better decision would be made if we had more informed people at the table. I do not respect nor support the process that has taken place whereby the oil and gas sector representatives are left out of the decision making process.
RRE2658 If this report is adopted in full I feel we Albertans will suffer! The government needs to look at the data that was used in this report and realize that it is incorrect. In order to make the best decision the government needs to have a royalty review report that uses current data for operating and developmental costs not the data that the panel provided which is at least 2 years old. As well the government needs to consider "Grandfathering". If a royalty amount was agreed upon between government and industry then this needs to be honored. As the government is well aware the oil and gas companies base exploration and development on set costs and evaluations, if the existing investments that the oil and gas companies made are going have increased royalties then these projects/investments no longer become economical. When a project becomes uneconomical the oil and gas companies will not spend the resources and money needed to develop it, so they leave the oil and/or gas in the ground. This in turn means fewer royalties for Albertans. As an Albertan I understand the need for royalties and agree that they need to be improved, but the only way to find the right improvement is to listen to both Industry and Albertans and find a happy medium, one that works for everyone. We have heard from Industry that they plan on cutting billions of dollars in their budgets for Alberta if the royalty review is adopted in full, this will reduce the funds being put into the Heritage fund which will negatively impact Albertans. We have heard from Wall Street that Alberta’s economy will suffer because of lack of share holder confidence in investing in Oil and Gas companies which will also have a negative impact on our economy. And now you are hearing from me that this will have a negative impact on my life, as well as that of my families as I work for an Oil and Gas company and my husband works for a service provider and we fear the consequences this will have on our current job status. It is the duty of the Government to act in the best interest of its people, so I hope you will listen.
RRE2659 1. Any increase in royalties on conventional oil and gas is simply wrong and bad for Alberta taxpayers. If the current fiscal regime was as favourable as the report suggests then all of the world's major explorers would be here looking for conventional reserves. In fact, none of the majors are doing that nor have they been for many years. The WCSB is a MATURE basin, which means that remaining conventional targets are small and costly to find. 2. The Alberta government already has a very efficient mechanism in place for adjusting it's take in accordance with the value of the resource: it's called the Crown land sale. An historical review of crown land sale bonuses will bear out that they vary in accordance with the wider economic picture. Note the negative effect that current natural gas prices have had in recent months as but one example.
RRE2660 Thank you Premier Stelmach. I have been in need of a reason to retire and this will be my ticket, as it will be the conservative government's ticket to retirement as well. I have voted conservative all my life and now it's going to change. Thanks again.
RRE2661 rising loyalty may temperarily increase the government share by percent, but will lower the surplus by lowering income tax, job losses.
RRE2662 Below is a letter expressing my concerns to the Minister finance and the Premier. I found it very difficult to evaluate the impact of these recommendations due to lthe ack facts conerning calculation of royalties. The immediate impact to this companies production would appear to be an increase in royalties from aproximately 25% to +/- 42%. for $7 gas. As we depend upon our cash flow to fund our capital program this would have an immediate reduction of 17% to available capital and make most of our drilling program uneconomic when drilling risk is considered. If you have any additional information that would significantly change my evaluation please forward it to me. Thanks for your consideration [Information Removed] "After having read the “Report of the Royalty Review Panel” I have some very serious concerns about the recommendations of this Panel. My concerns are both as a long time Albertan ([Information Removed]) and [Information Removed]. 1. The recommendation for wholesale changes to the royalty system without grandfathering existing agreements is a severe blow to credibility of the business environment of Alberta. This has all the earmarks of the NEP program of the early 1980’s and could have a similar impact. One of the primary reasons for [Information Removed]entry in the Canadian oil & gas business in 2003 was that there was a stable economic environment in which long term business agreements could be entered into without a lot of risk of the rules changing in the middle of the game. [Information Removed] made a conscious decision at that time to concentrate our activity in Alberta as opposed to Saskatchewan or British Columbia because of the past history of these provincial governments getting greedy during the good times. If the government of Alberta implements any of these changes on existing contracts this trust will be lost for a very long time. In this report there is a recommendation that the government also needs to review the economics on regular basis. I agree that this is a good idea to ensure that the people of Alberta can be informed on value that they are receiving for this resource. If adjustments are necessary they can be done through other means 2. As a public company [Information Removed] we are evaluated against other oil & gas companies on the basis of a number of factors not just rate of return and net present value. Other parameters like net production after royalty, finding costs, and after royalty reserve additions, among others, are used in these comparisons. Not withstanding the comparisons indicated in the report to other jurisdictions, the proposed royalties, especially on gas, will make the Canadian operations appear to be at an economic disadvantage to similar projects in the US. I can tell you from personal experience that [Information Removed] must compete for capital based on these parameters to continue to explore in Canada. With the current royalty and tax regime along with the strong Canadian dollar and current costs, the comparisons are already difficult This is obvious with a number of our competitors [Information Removed] who have significantly reduced their drilling activity in Canada but continued to spend in the US. An increase of the royalties would further reduce the flow of capital to this province and ultimately reduce the revenue not increase it. 3. [Information Removed] activity is concentrated in natural gas [Information Removed] where costs are high. The recommended increase of royalties and elimination of the deep gas royalties would make this area marginally economic especially when we would be penalized on a cash flow basis with much higher royalties. Low rate wells which would qualify for royalty reduction are uneconomic, even at much higher prices in this area. A royalty increase on gas would also be significant deterrent to exploration of new areas where high rates are necessary to pay for significant infrastruce to bring these wells to market. 4. The report does not detail how the modeling for comparison to other jurisdictions handles the land bonus revenue to government. It seems to me that this is an area that takes into account the changing effects of price and costs. As we saw in the past couple of years the revenue received by the government from land bonuses increased significantly when prices were high and over the long hall should provide a balanced affect for the government to receive its “fair share”. After all the economic comparisons for how much money can be spent up front to receive a reasonable rate of return is used to compare with other projects in the company. I hope that you and the caucus take a very serious look at the implication of any significant change to the destruction of trust with the industry sector to do business in Alberta over the long term. The current economy of Alberta is largely due to maintaining this trust. As a long time Albertan I would hate to see the benefits we receive eroded because of the need to “get our fair share” which in the end we may lose more than we gain. I would strongly recommend that royalties not be changed, especially on gas, and if you feel it is necessary to make adjustments that they are on go forward basis. Yours truly, [Information Removed]
RRE2663 I feel that at least 50% of the Oil revenue should go into government funds in order to provide a better place for all albertans especially those having to live on AISH, the homeless and the unemployed, for job creation, for education, for housing and for career development. A housing policy should be the main issue, as well as an increase of the AISH allowance, grants and bursaries for business start up and education.
RRE2664 I fully support a review of the current royalty structure. The report released appears to make fair recommendations, those being that we are not currently recieving adequate royalties and should increase the royalty rate immediately. I remind you that (as the report says) Oil Companies do not own the resource. We (the people) do, and the Government represents us, not the Oil Company. Although the Oil Company is entitled to a fair profit over and above their costs, they are not entitled to endless revenue from something that belongs to everyone. I am not concerned about Oil Companies going elsewhere... there is no where else for them to go. If this slows production in the short term, it doesn't really matter, the oil will only get more valuable with time, and I don't see there being a big rush to pull it all out. The current scheme of charging discounted royalties while capital investment is paid off is not working. I personally have heard stories of Oil Companies moving every expense (Including Salaries) into Capital expediture, just to get around this. Please increase the royalty rates now, and apply to all current projects.
RRE2665 Implementing the recommended changes will be an absolute disaster for Alberta. I can understand making some changes to oil sands. The number of companies climbing over top of each other to propose so many projects is an indication of the current profitability. Conventional oil has the advantage of high price, which will likely continue. But natural gas pricing is in a slump that will not likely recover until at least 2009. Most companies have already curtailed their gas drilling activity. Raising the royalties will make them almost stop completely. Production will decline quickly and Albertans will soon be receiving less gas royalties instead of more. Many of them will also lose their jobs. It's happening already and it will only get worse. It's the government of B.C. that will be collecting more royalties, because that's where all the rigs will go. Leave conventional natural gas alone.
RRE2666 As I am sure that you understand clearly, the "Royalty Review" is a very important issue concerning the Oil and Gas industry here in Alberta. I am very concerned that perhaps the government is not clear of the potential negative impacts that this is likely to have on our economy. People quite often do not appreciate or understand that the oilfield is not simply an industry. There are significant positive contributing economic spin off jobs and industries that are also created or enhanced due to our great industry here in Alberta. Look at our provincial government. We have the best balance sheet in all of Canada. We are clearly the model that all of the other provinces would like to even be able to compare to. Due to repetition of this good government fiscal management it is easy to take this for granted. They say timing is everything. I believe this as well. I strongly view this Royalty Review as "not the best timing." I do not believe in overcharging. This practice is short term thinking and it is of a higher risk. I also believe that due to circumstances that warrant, such as increased expenditures that are out of your control you have to increase what you charge your industry. If the industry is stable or prospering you can likely succeed with this measure. If the industry is not stable or prospering you can not do this. You have to either reduce expenditures to be able to maintain margins with current revenues or accept reduced margins. This is a very bad time to be expecting the Oil Industry to increase expenditures. With the change to the taxation of Income Trusts, reduced commodity pricing and our increased dollar these are very negative impacting factors in our industry. It does not matter if we are suggesting increasing the industry's expenditure by one billion dollars annually or one thousand dollars, it is an increased expenditure. This increased expenditure is not what the industry needs right now. If the province was to have suggested this action two or even three years ago I am sure it would have been successful and Albertans likely would have benefited from this. If the government attempts to impose any type of increased expenditure to the industry I can not understand how this will not significantly impact all Albertans negatively. This decision is very clear and simple. The timing is not right! This may seem crazy but I believe with the current industry conditions, if the government could provide incentives (reduce expenditures to the Oil and Gas Companies) this would provide a lot more positive results in regards to revenue for Albertans and government. I am not entirely opposed to the government charging higher Royalty's. Increased revenue will benefit Albertans. If the government through direct negotiation with the Oil and Gas Industry can clearly substantiate the need for increased royalties and the industry is in a position to be able to support this cost then it is a good deal for Albertans. It is clear that currently government is not going to succeed with any negotiation at the present time. If government, at this time, increases their rates this will not increase revenue to Albertans. The government with its citizens will suffer. As I am sure that you understand clearly, the "Royalty Review" is a very important issue concerning the Oil and Gas industry here in Alberta. I am very concerned that perhaps the government is not clear on the potential negative impacts that this is likely to have on our economy. People quite often do not appreciate or understand that the oilfield is not simply an industry. There are significant positive contributing economic spin of jobs and industries that are also created or enhanced due to our great industry here in Alberta. Look at our provincial government. We have the best balance sheet in all of Canada. We are clearly the model that all of the other provinces would like to even be able to compare to. Due to repetition of this good government fiscal management it is easy to take this for granted. They say timing is everything. I believe this as well. I strongly view this Royalty Review as "not the best timing." I do not believe in overcharging. This practice is short term thinking and it is of a higher risk. I also believe that due to circumstances that warrant, such as increased expenditures that are out of your control you have to increase what you charge your industry. If the industry is stable or prospering you can likely succeed with this measure. If the industry is not stable or prospering you can not do this. You have to either reduce expenditures to be able to maintain margins with current revenues or accept reduced margins. This is a very bad time to be expecting the Oil Industry to increase expenditures. With the change to the taxation of Income Trusts, reduced commodity pricing and our increased dollar these are very negative impacting factors in our industry. It does not matter if we are suggesting increasing the industry's expenditure by one billion dollars annually or one thousand dollars, it is an increased expenditure. This increased expenditure is not what the industry needs right now. If the province was to have suggested this action two or even three years ago I am sure it would have been successful and Albertans likely would have benefited from this. If the government attempts to impose any type of increased expenditure to the industry I can not understand how this will not significantly impact all Albertans negatively. This decision is very clear and simple. The timing is not right! This may seem crazy but I believe with the current industry conditions, if the government could provide incentives (reduce expenditures to the Oil and Gas Companies) this would provide a lot more positive results in regards to revenue for Albertans and government. I am not entirely opposed to the government charging higher Royalty's. Increased revenue will benefit Albertans. If the government through direct negotiation with the Oil and Gas Industry can clearly substantiate the need for increased royalties and the industry is in a position to be able to support this cost then it is a good deal for Albertans. It is clear that currently government is not going to succeed with any negotiation at the present time. If government, at this time, increases their rates this will not increase revenue to Albertans. The government with its citizens will suffer. As I am sure that you understand clearly, the "Royalty Review" is a very important issue concerning the Oil and Gas industry here in Alberta. I am very concerned that perhaps the government is not clear of the potential negative impacts that this is likely to have on our economy. People quite often do not appreciate or understand that the oilfield is not simply an industry. There are significant positive contributing economic spin of jobs and idustries that are also created or enhanced due to our great industry here in Alberta. Look at our provincial government. We have the best balance sheet in all of Canada. We are clearly the model that all of the other provinces would like to even be able to compare to. Due to repitition of this good government fiscal management it is easy to take this for granted. They say timing is everything. I believe this as well. I strongly view this Royalty Review as "not the best timing." I do not believe in overcharging. This practice is a short term thinking and it is of a higher risk. I also believe that due to curcumstances that warrent, such as increased expenditures that that are out of your control you have to increase what you charge your industry. If the industry is stable or prospering you can likley succeed with this measure. If the industry is not stable or prospering you can not do this. You have to either reduce expenditures to be able to maintain margins with current revenues or accept reduced margins. This is a very bad time to be expecting the Oil Industry to increase expenditures. With the change to the taxation of Income Trusts, reduced commodity pricing and our increased dollar these are very negative impacting factors in our industry. It does not matter if we are suggesting increasing the industry's expenditure by one billion dollars anually or one thousand dollars, it is an increased expenditure. This increased expenditure is not what industry needs right now. If the province was to have suggested this action two or even three years ago I am sure it would have been succesful and Albertans likely would have benifited from this. If the government attemts to impose any type of increased expenditure to the industry I can not understand how this will not significantly impact all Albertans negatively. This decission is very clear and simple. The timing is not right! This may seem crazy but I believe with the current industry conditions, if the government could provide incentives (reduce expenditures to the Oil and Gas Companies) this would provide a lot more positve results in regards to revenue for Albertans and government. I am not entirely opposed to the government charging higher Royalty's. Increased revenue will benifit Albertans. If the goverment through direct negotiation with the Oil and Gas Industry can clearly substantiate the need for increased royalties and the industry is in a position to be able to support this cost then it is a good deal for Albertans. It is clear that currently government is not going to succeed with any negotiation at the present time. If government, at this time increases thier rates this will not increase revenue to Albertans. The government with its citizens will suffer.
RRE2667 Royalty Review Report recommendations absolutely have to be implemented, especially following the Auditor General's report! Recent public outcry from industry was to be expected! Who wants to pay more taxes?? As an owner of these resources, I rquest that their sale price be increased to the levels recommended! I am willing to live with a decelerated development timeline if that results! It will only mean that the income strem will last longer and that up front infrastructure costs will be reduced!
RRE2668 An increase in royalty rates appears quite appropriate given Alberta's infrastructure and accomodations growth cannot barely keep up with oil and gas industrial growth. Increasing the royalty rates may slow down oil projects a bit, but this may be good, as this is what the Fort McMurray mayor has been wanting for several years. The extra royalty income will help the province's infrastructure keep up with the growth. Do not over charge and cause what happened in the 80's with the National Energy Program that caused a recession for years. Perhaps introduce a phased approach to gradually increase royalty tax rates so that the oil companies can adjust to the increased costs. Director level managers are often held personally accountable for reaching budgets. Perhaps introduce 0% increase for 2007, X% for 2009, and Y% for 2010. This is how the federal government phases in new tax percentage increases/decreases. In summary, an increase in royalty taxes is appropriate, carefully decide how much of an increase and how soon. [Information Removed]
RRE2669 I find the recent royalty review a joke and a slap in the face to the residents of Alberta. One in three jobs in Alberta are related to the Oil and Gas industry and if the Alberta government wants to bite the hand that feeds.....just wait for the next election. I voted for a Tory government not a Liberal government. The tax dollars that the government would lose from a slow down in the Oil and Gas industry would be much greater than the tax dollars that you think would gain from a royalty tax increase. I have been bent over from the Federal Tories because their color has gone from blue to pink and I pray that you do not change from blue to pink.
RRE2670 Please use your heads and leave the current royalty system in place. The Western Canada Basin is already a very expensive basin to operate in, and there is no loyalty in business, which will lead to a major diversion of money out of Alberta. I really do not want to see Alberta being run by anybody else but the Tories. If this reccommendation is approved the Tories will be wiped out in Alberta. [Information Removed]
RRE2671 Alberta MUST raise royalty rates since the resources of our Province belong to we, the people, noit they, the govtéindustry. Nationalization would be the best choice for all Canadians, however, we must be willing to accept this small increase for now. Compared us to Norway, our resources and all of our money have been going to a select few corporations.....this must stop. »Where is all of the money????????????????????????
RRE2672 The Premier needs to reconsider the Panel's recommendation of the Alberta Royalty. Oil companies are already facing high costs of developing Alberta's natural resources, the increase in royalty proposed by the panel could have a drastic negative impact on natural gas activity in the province. As it becomes uneconomical to sustain some of the field operations and develop new projects, oil companies will have no choice but to shut down operations and cancel new development projects. This could result in loss of thousands of jobs, resulting in a downturn of the Alberta economy.
RRE2673 I'd like to share my feedback on the Alberta Royalty Review: The government needs to really think this review thru more thoroughly as it seems it would have a huge implact on all business in Alberta, not just the oil industry. If it is not economical to drill once incentives are gone and royalties significantly changed, the oil companies will significantly reduce it's drilling programs. Then how would their be an advantage to Albertan's, how does the panel think Alberta would be 2 billion dollars ahead/year. I am a single mom with two children working in the oil industry and am proud to be able to sustain a decent quality of life for them on my salary, however if their were layoffs my future could be in jeapardy. I also look at the real estate bleak would that look if there was "no money" in the province. I also think the investment community outside of Canada would/could think twice about investment in Canada if they felt it was risky.....I am referring to the "no grandfathering" proposal for high risk wells that were proposed and operated prior to this royalty regime proposal. This is a wishy washy attitude on the proposals's like changing the rules halfway thru the game. I do believe that it may be time for a new royalty regime but please think long and hard about all facets around this........don't act so quickly (as this seems to have been) only to see Alberta take a huge hit and then to have to bring incentives and review royalties all over again 2 years from now as we all see the huge impact it had on our economy.
RRE2674 'Bite the hand that feeds you' comes to mind. My concern is not just a greedy waivering Provincial Gov't & its leadership, nor is it the greedy oil companies. My concern is the lack of thought on how this will effect the day to day lives of each and every Albertan as we strive to maintain some form of stability and good life for ourselves and our families. While we witness this ridiculous 'Clash of the Titans' , we lie in the path of destruction.....and you want our support? You are supposed to take care of us.....not destroy our livelihoods and balance of life. An Albertan first, then a Canadian, then an [Information Removed].
RRE2675 The oil sands royalty rate recommended by the review committee is fair and provides the right balance. They considered the right balance in developing their recommendation. Governmement should not cave in with a compromise to placate the oil companies. Gas roylaties need to be set to sustain the gas industry in Alberta recognosing that there is little long term upside to gas prices and that the long term benchmark will be established by the landed price of imported LNG.
RRE2676 Off Wednesday, in field Thursday, back in office Friday. [Information Removed]
RRE2677 The timing of the royalty review could not have been worse. I am not writing to argue whether the royalties should be changed but to state the timing is terrible. The oil and gas industry is currently in a downturn. Hundreds if not thousands of people in this province have recently been let go. I am a professional engineer working in Calgary and I have had to take a salary cut. I fear that if the province does not get this right we will create a home grown version of the dreaded NEP program. Even if the province decides they are justified in raising royalties they should postpone implementing any changes until the industry is in an upswing and better able to absorb losses in cash flow.
RRE2678 I am strongly in favour of the government adopting the Royalty Review recommendations. The report seems to be moderate and sets out a reasonable approach to change something that has sorely lacked leadership. The resources belong to the people and not the oil companies. And they aren't going anywhere by themselves. Further to that I do have a comment about [Information Removed] "ad campaign". I am unswayed by their scare tactics that they will go elsewhere in the report is implemented. I truly feel that our way of life has suffered tremendously under this current "boom". We don't have enough bodies to fill the jobs that are available, infrastructure is in a terrible state and finding affordable housing is close to an impossibility in our province. If [Information Removed] leaves, as it threatens to do, maybe some of these jobs can be filled and we can all enjoy a better quality of life. [Information Removed]
RRE2679 The oilsands sector is extremely inefficient in delivering projects profitably. Project costs can be reduced by 25%-40% in many areas to offset increased royalties. This can be accomplished through through alternative project delivery mechanisms and an emphasis on cost-effectiveness rather than speed to production.
RRE2680 Current land bonus's and royalties paid to the government already represent 40% of the government's income; and the Alberta government is debt free and generating anual surplus's. Why does the royalty rates need to be increased? Also, when comparing the royalty rates from Alberta, I hope they are being compared to similar fields with the higher operating costs and capital input. Compare the royalties to Saskatchewan or BC, but not to the US or South America. I think the Alberta government is getting greedy. If royalty rates are increased, once economic projects in the Alberta oil patch will decrease and investment in Alberta will decrease as well. I think we need to look at the bigger picture and realize that where the Alberta economy is right now is a good place to be. Thanks.
RRE2681 To whom this concerns, As a working Alberta tax-payer I must express my concern over the government's proposed royalty hike. This will undoubtedly destroy the oil industry in this province and cost me, my family, my friends, and pretty well everyone I know their jobs. The Alberta government was elected by Albertans to represent Albertans, I therefore insist that they start doing their job and stop trying to ruin our lives. [Information Removed]
RRE2682 As a Albertan, I do not support the governments position on the recommended changes to the royalty review. I beleive the government is under estimating the negative effects this will have on the province if the document is excepted in full.
RRE2683 As I am sure many citizens have written you, I am very concerned about the impending Royalty Review and its drastic consequences on the Alberta Economy. I feel that the Royalty Review was completed by people who are not affected by any of the negative outcomes that may result. Therefore, I feel it is flawed. I have highlighted my concerns below and look forward to your response. The key topics I wish for you to discuss with the Premier are as follows: • The fiscal terms for existing projects should be honored, • The current Royalty Adjustment Program for Deep Marginal Gas Wells should be maintained, • The thresholds for the sliding rate royalty scales for gas must be adjusted to be consistent with breakeven costs, and • The Oil Sands Severance Tax should not be implemented. In the past the Alberta Government has been able to work with industry to provide considerable revenues to the Crown, keeping the Alberta economy strong. If the above points are not considered I do not see how major corporations will be able to invest in Alberta’s economy. I believe many Major Oil and Gas Companies will follow in EnCana’s footsteps, making a detrimental recession imminent. The three main flaws I see with the report are highlighted below. The analysis in the report is flawed • The Report fails to appropriately consider the relatively high cost, low reserves, and rapid decline rate inherent in the Western Canadian Sedimentary Basin and the true cost and multi-decade commitment of oil sands development. Direct comparison against other jurisdictions without proper consideration of their vastly different economic returns led to flawed outcomes, • The Report bases its recommendations on outdated or erroneous costs, and • The Report incorrectly suggests that the oil and gas industry has direct control over costs and that they shouldn’t be taken into account when determining a royalty regime. The Report ignores the economic realities occurring in Alberta today • Drilling activity in the Western Canada Basin is at a 5 year low and most companies have significantly reduced their capital spend, and • The Report understates cost estimates and inflation, and fails to consider the significant impact of the rising Canadian dollar. The Report fails to consider the significant impact the recommendations would have on future investment in Alberta • The recommendations will have a substantial negative impact on Alberta and Canada’s economy, • The recommendations will make most Deep Gas wells uneconomic, reducing or eliminating an approximately $6 billion annual investment into Alberta along with the associated jobs and royalties, • The proposed Oil Sands Severance Tax will make most future projects uneconomic, resulting in substantial delays and cancellation, and • Albertans will not realize the incremental $2 Billion of royalties sought by the report as they will end up with a larger piece of an increasingly smaller pie due to reduced investment. I am very concerned how this will impact Alberta as a Province. The trickle down effect will negatively impact all aspects of business in Alberta as well as the social economic status we currently have. As a voter I am concerned with how this will affect myself and my family as I would like to see them enjoy a prosperous future.
RRE2684 I am waiting for all of those billions to come to Saskatchewan. Please proceed , you fools. [Information Removed]
RRE2685 As a lowly, but educated employee of the oil and gas industry (1/6 of Albertans) I'm aware Alberta is drying up. The oil sands are economical at high barrel prices (thankfully NOT set by the government) and most of Alberta's conventional plays have been picked over. Alberta's resources are dwindling to tight gas and heavy oil, providing shrinking profit margins and expensive EOR costs. As a proud employee of [Information Removed], I'm proud to say our leaders had the foresight to diversify prospects far beyond the clutches of Alberta. SO, no matter what furthur royalties are placed on Alberta's resources (47% isn't enough?) I'm confident [Information Removed] will survive elsewhere. I'm not sure the response will be the same from junior companies who are proudly based here, solely depending on Alberta for reserves. A simple way for the government to obtain more royalty funds would be to impose the royalty increase on FOREIGN investments. Spare the Albertan! Proudly born and raised in Calgary, [Information Removed]
RRE2686 Dear Premier/ Alberta Royalty Review Panel I believe today's paper quoted the Chair of the ARRP, Bill Hunter; as "I was prepared for debate .... I wasn't expected threats ..." My perception regarding these perceived threats from certain O&G companies is reality - Mr Hunter. These statements are not threats; but simply a business reviewing their costs, revenues & opportunity costs, like any other business; like forestry (your business, Mr. Hunter) or government (your business, Premier Stalmach) These O&G companies are preparing for next year's budget. If the ARRR is implemented in its entirety then enterprising companies will likely spend their capital elsewhere to improve their rate of return. This should be no surprise to a seasoned Forestry executive or a seasoned politcian - who are both familiar with setting budgets and when doing so realizing some items may require reduction or no spending at all. And Premier Stalmach to quote one of your few remarks to date on the ARRP - "I will not be intimidated" Premeir Stalmach - the perceived threats and/or statements from O&G players, investment firms, etc. are not met to intimidate - you of all people ought to realize this. Those statements are stated to give you, your cabinent and the ARRP a reality check. I am Joe lunch bucket oil/gas office worker I will try to keep my comments below, pertaining to royalties applicable to conventional O&G as set out in the Alberta Royalty Review Report (ARRR) unbiased - you be the judge. The last time I checked - the economy in Alberta was based on a capitalist system; not socialist or communist. That the pioneers in Alberta to present day Albertans foster an environment conducive to a free market economy OR perhaps the new Conservative government prefers a socialist/communist economy? Is this a leap - I hope not. Adam Smit or Karl Marx - I prefer Adam Smith; the panel behind ARRR appear to prefer Karl Marx. How did this all start. Perhaps by the title of the ARRR - "Our Fair Share". The title itself incites mis-trust of the oil & gas industry by the general public in Alberta. Certainly the ARRR nor the title cannot be changed now; but you can at least come out in the public eye and defend the character of those in the patch. After all the prosperity we enjoy today can be directly linked to the oil & gas activity since the first significant discovery in 1947. Perhaps some information from the Alberta Government informing the public - that the economic engine of Alberta is O&G, not tourism, not agriculture, not forestry and most importantly that the prosperity in all sectors of the province we enjoy today is derived again from the O&G industry. Thank-you Premier Stalmach for the foresight. The Multiplier Effect - most of the economy is O&G derived and/or depends on O&G activity to sustain their business?? or maybe I'm missing something here; I need not name all the industries again; but all are healthy due to the O&G juggernaut - I believe you already know this; which is why it is perplexing that most Albertans favor the ARRR. A read of recent newpaper articles suggest again most Albertans strongly agree that industry is simply posturing and will not disappear from the Alberta Economy. Mr. Stelmach - please explain to me why Albertans are of this mind set?? Do you believe O&G is helping Alberta Premier Stalmach? If you do believe O&G is a main driver behind our economy - then please convey to the general public our good fortune; and if you do maybe more Albertans will realize those benefits - all you have to do is look around the province from tip to tip and side to side. The Oil & Gas Perfect Storm; lets see; the Halloween treats announced by the Feds last October - effectively crippling the O&G trust sector and taking away a vital exit strategy from Junior O&G companies, low gas prices, high costs, the exchange rate, lack of skilled labor, and now the ARRR; in general I believe our O&G industry is in a state of flux - Premier Stalmach do the aforementioned events cause you any concern? I'm beginning to think not. As your Government seems to prefer to retard growth and promote tourism, agriculture, ranching and forestry?? Mature Sedimentary Basin; Conventional O&G - last time I checked we are well past the 1/2 life pertaining to conventiional O&G production from Alberta; (maybe we have 10 to 20 years left, maybe 5 to 10?) - where industry will extract reserves from the ground provided they can make a buck. If the ARRR on conventional O&G is implemented - we Albertans will reap higher royalties but for a shorter period of time; maybe 5 to 8 years; vs lesser royalties for 10 to 20 years; as I am certain your ARRR plan will be a drag on new drilling programs and hence shorten the production life of reserves remaining in Alberta. The sedmentary basin is a shrinking basin - Premier Stalmach. Most if not all big O&G pools have been found, are producing and will be depleted sometime in the not to distant future; granted there may be the odd big discovery; but trust me, few and far between. Most of the new drills will be targeting shallower to intermediate targests, mostly for gas and mostly for pools of a smaller size compared to past discoveries. It is possible Premier Stalmach that a prudent O&G businessman, big or small, will take a hard look at the economic numbers pertaining to conventional O&G extraction and drilling and decide to take his capital to a business friendly environment; maybe B.C. or Saskatchewan or elsewhere. Please check your numbers and the consequences when weighing how to balance and share the pie. Rural vs. urban, Calgary vs. Edmonton - one of your government's role is to unite the pair of solitudes; rural vs. urban and Calgary vs. Edmonton; but no - from all your actions and in-actions your government appears to endorse and promote division of the dual solitudes. Your job is to unite not divide. Big oil is not bad oil; - Again Alberta has prospered from oil and your government needs to embrance oil, not drop oil, you need to talk to oil and find a balance to continue growth & prosperity and keep a share for Albertans. Premier Stalmach what is your vision; where are you taking us? Does your vision include the promotion of O&G activity OR do you desire a drag on O&G activity by implementing the ARRR. Jobs, jobs, jobs - we are losing jobs in the patch today - and I suspect more losses will come - if the ARRR specific to conventional O&G is implemented - less jobs mean less taxes means less wealth for all Albertans. Alberta Economic barometres - have you checked these barometres lately; rig utilization, land-sale bonues, service rig completions. I believe all are moving negative; south into the red. Should those Albertans strongly agreeing to the ARRR be concerned? I hope so - as 'quality of life' may be headed in the wrong direction for all Albertans . Typically the aforementioned barometres are sometimes refered to as the 'canary in the coal mine' - we should all be concerned. Premier Stalmach I hope you find the right balance. Open for business - both provinces, B.C. and Saskatchewan, post-ARRR, have publicly announced their royalty structures will not change; B.C. and SK are open for business; not AB - is there a message there? AB is one of two 'have' provinces; most are 'have nots' - some of the 'have nots' maybe approaching boarder-line 'haves' why is that - because they are open for business and business is going their way. Premier Stelmach, I suspect their respective citizens are more than happy to welcome O&G to conduct business in their province; by implementing incentives, including a reasonable royalty program conducive to promoting drilling activity and their citizens receiving their fair share. Is that a fair statement Premier Stalmach? Adam Smith & the invisible hand - if you are to implement the ARRR in its entirety as recommended by the panelists and most Albertans (who I believe are mis-informed) - then the invisible hand will become the visible hand. And that hand will end-up taking food off the plate of every Albertan in the province. I know the ARRR panelists and most Albertans think otherwise; but as demonstrated by leaders in the patch over the last few days, capital can take flight and go elsewhere; as announced by Crescent Point going to SK; as mentioned by EnCana, who may reduce spending by $1.0BB, as announed by Talisman who may reduce its spending by $500MM - but given the pulse of Albertans and the ARRR panelists - they perceive these announcements as idle threats, scare mongering all designed to instill fear into the masses. Premier Stelmach do you really believe these announcements are falsehoods? We own the Resources; we want our fair share; yes we had AEC, we had Petro-Canada who enjoyed automatic ownership of minerals and we had the NEP - all have disappeared; except PC; which is now a shawdow of its former self. Why - well O&G extraction is capital intensive; and not always successful. Did you know for every producing well in AB there is likely one or more d&a or suspended wells in the province. Perhaps the Government should bear all the risk and extract the reserves and keep all the wealth which is then transferred to all Albertans in the Province. Obviously not the case. Why? We Albertans from the start had a choice between Capitalism or Socialism. Whether its Capitalism or Socialism; in both systems there are rich, poor and the middle-class. I prefer Capitalism. I hope you convey a message that as a 'fall-out' from a successful Capitalist system there will be some rich people, some poor people, and a large middle class. Is that so bad, Premier Stelmach. If your Government and other Albertans are opposed to people getting rich and potentially middle class people moving from the middle class to the rich class and the poor moving to the middle class - then your Government should convert to Socialism. Socialism promotes the working class and there is certainly nothing wrong with that; Socialism promotes everyone receiveing the same benefits and pay; and there is nothing wrong with that - if you are an indivdual who has no ambition and prefers to rely on government handouts - I am not. In practice Socialism breeds laziness and brings to life the notion of relliance on Government for subsidies, jobs, income and so on. Business and industrious people tend to migrate away from environments where incentive and initiative are taken away; your implemetation of the ARRR report pertaining to conventional O&G will drive away capital & investment. Your ARRR will take away the Alberta Advantage - which is not OK with me and I hope other Albertans. Premier Stalmach given the shortage of skilled labor in our province you need to pull these people into our province, not push them out. Premier Stalmach - a federal liberal opposition party member was quoted as saying the Federal Conservative minority party of Canada led by Stephen Harper is running as if they are a majority party - why is that. Becauase they have a vision, a plan. Your Government, Premier Stalmach is a majority but is running as if you are a minority. And in the event the ARRR is implemented in its entirety as most Albertans have indicated they want their 'fair share' (due to mis-information and no support of the O&G industry from the Alberta government) the lapse of time and consequences of the ill fated intend of the ARRR will cause your Government to be a minority government or no government at all - and deservedly so. Albertans will receive their 'fair share' on O&G conventional production but I suspect it will be a short life; as O&G is a non-rewable resource and the incentive to extract those resources at a reasonable cost will likely disappear. But that is ok because we Albertans will receive a higher royalty but over time less production and less revenue ; not solely due to O&G being a depleting resource but because there will certainly be less drilling directly due to the ARRR and then most Albertans may ask the Government to provide incentives to attract industry back to our province. Prosperiy to Mediocrity to Poverty - I prefer all Albertans are able to experience prosperity on some level. The ARRR will move our economy towards medocrity. And if your Government does not manage our future economy in a balanced approach, recognizing the significance of the O&G industry to our province - we will move from mediocrity to poverty; although I will say this scenario is not likely – I’m just a little peeved with how your Government handled or mis-handled the file on the royalty review. Your job Premier Stelmach is to distribute the wealth amongst the rich, poor and middle-class; remembering that the rich & middle class support the poor (via jobs, taxes, consumption and so on) and the poor need the middle class and rich, for obvious reasons. Our tax dollars should be expended on infrastructure, education, health-care and the environment; and if spend correctly ought to sustain a properous soceity. Until we find another industry to support our economy, like O&G, please do not kill the goose who lays the golden egg.
RRE2687 I am a 28 year old alberta oilfield service worker. I have a wife two children a mortgage vehicle payments etc...... I try to follow the politics as closely as possible with regards to the volitile industry in which I work in. This royalty review that is on everyones mind is very hard for me to understand. My first question is who is this supposed to benefit? The little understanding that I have of this is that it will be used to build alberta infrastructure, hospitals, schools, roads etc... Great we all will benefit from that. My only concern is that I won't be able to use the roads because I won't be able to afford the gas for my vehicle as I will be unemployed due to the lack of work that I forsee this royalty review bringing on. My second thought is maybe there won't be any roads because there may not be any royalties to collect if the threats by the largest energy companies in this country hold true.
RRE2688 We have spent vast sums of money in Alberta since the mid 1960's and have experienced many of the Province's impulsive decisions that affect the oil industry. This most recent royalty review, if implemented, will probably be the final straw that will persuade Lario Oil & Gas Company to exit Canada and take our investment elsewhere. We strongly encourage you to re-consider and be reasonable. Thank you,
RRE2689 I live in Calgary and make a good living by working in the oil and gas industry. As a result I pay good taxes to both the federal gov't and the gov't of Alberta. Industry activity in conventional oil and especially gas was already cooling off due to low gas prices and high Canadian dollar. The royalty report appears to have used questionable assumptions and bases, which suggests that the concusions were figured out before any study was done. Personally, I am now fearful for my livlihood. I have always voted conservative but was starting to question this due to the poor treatment of Calgary since Ed Stelmach became Premier. Raising royalties will certainly be a factor invoting against the incumbents at the next opportunity.
RRE2690 I fully support this initiative. It will serve numerous causes in Alberta, such as: 1. Help for people earning low income who have to deal with rising costs of living. It is a shame that a young person works full time and can not support him/herself. There is something fundamentally wrong with this concept. 2. Even if it slows down the investment it will help us to catch the breath. Development is happening too fast to a detriment of Alberta infrastructure and our values. Besides at this level of oil price, we do not need to worry about companies pulling out from Alberta. 3. I am a professional engineer and i myself benefit from the boom, but it is getting too much, there is so much waste of our efforts, time, money especially by Americans, who treat us as third world country. I hate to see crude oil pumped to US for refining. We have to think about future of our people, in my opinion no Albertan should pay for higher education. Premier Stelmac has my full support on this and other issues, I see him as a good, down to earth person who will do what is right and will not get scared by any interest group. [Information Removed], Edmonton
RRE2691 I am deeply concerned about the royalty review recommendations that were released in September. I have read the reviews, and heard many comments back. I am deeply concerned that if the Alberta Government does go through and implement all the recommendations from the panel then all Albertans will be affected and not in a good way. From many of the conversations with people in the industry, in the production and service sectors, it is obvious that cutbacks will happen and redirection of investment. If this happens all Albertans will be negatively affected. In the report there are many problems, for example the capital and operating costs were not correct, thereby not accurately reflecting the cost to companies. I believe that government, industry and other stakeholders need to come together to review the report and do sensitivites with the number. This includes the high Canadian dollar, the capital and operating costs, the land sales revenues. The numbers should be current, reflecting the current situation with the market, not numbers from that past. The oil and gas environment has changed recently and the royalty review should take this into account. For the government to act on this recommendation before making sure that ALL the data is accurate would be poor judgement. It is the responsibility of the government to make sure it has all the facts (and that they are correct) and then to act in the best interest of all Albertans, taking into account the long-term consequences. Thank you for your time.
RRE2692 Good morning Alberta, I have lived in Calgary since 1981 and am very proud to say this is my “Home". I understand that we as Albertans are due our fair share of any royalties from the energy companies profiting from Alberta's resources. I also remember all too clearly the results of the Liberal National Energy Program on Alberta and the energy sector. I urge our elected officials to please exercise caution and prudence when modifying the current energy royalty rates. Let’s keep Alberta’s competitive edge growing, we as Albertans have and will continue to benefit from the energy sectors growth and profitability. Thank you
RRE2693 It amazes me how Alberta's economic engine (the oilsands) are under attack from so many quarters. I came across an article in the Ottawa citizen yesterday that started out as follows: "Maybe we can't shut down the Alberta tar sands overnight, but could someone at least turn down the air conditioning in this office?" Rest assured, if the liberals form the next Federal government, you can kiss the tarsands goodbye. It will be bad enough for the feds to kill the goose that laid the golden egg. If Alberta's government does it, it will be criminal. If royalties are raised, it should be by a very modest amount and it should take into account the risks inherent in that industry. A phase-in of a modest royalty increase that can fluctuate up and down depending on the state of risk should be the most aggressive action taken by the province. Thanks [Information Removed]
RRE2694 The added taxes will have a negative effect on much needed JOBS.
RRE2695 I think that the report should be accepted as written. The writers have given a lot of thought to all the issues. The government should not cave in to oil company demands. Then take the extra 2 billion and invest it for the future as there will come a day when oil revenues will drop.
RRE2696 I'm writing in disgust at the released panel report that your government seems to be considering implementing. As a conservative MLA I'm very surprised that you and the entire caucus isn't revolting against Mr. Stelmach. Here are several points you should consider:: 1) What business do you know of that doesn't use up to date costs and overall rate of return in evaluating profitability in determining if money should be spent? Quite frankly if your government can't look at any major investment companies' evaluation of the industry ( both producer and service side) and realize how tight things are maybe they should take some basic economic courses. 2) It is nice to know that a bunch of academic/advisors can do a simplistic analysis of a very dynamic industry. Perhaps a map and use of jurisdictions such as British Columbia and Saskatchewan in their comparisons would have been much more appropriate then Texas, California and Angola. Quite frankly BC and Sask. have spent years trying to re-stimulate an industry decimated by socialist government policies which harp on the concept that "companies can always pay more". 3) If the concept of "drilling fleet utilization" is foreign to this government perhaps using the analog of a factory only using 43% of it's productivity capacity should make warning bells go off that perhaps the profitability of the industry isn't as juicy as portrayed by the panel. Quite frankly if this is the same party which has made this province the envy of Canada over the last 20 years I'm rather bewildered. Come next election I'll be considering alternatives for where my vote goes and which party is pro-business.
RRE2697 I believe that the report should be implemented in it's entirety. The panel obviously did a thorough and comprehensive review and the government should not be swayed by special interest groups to dilute this report and ignore it's recommendations. It's time that Albertans received our fair share of royalty payments.
RRE2698 I don"t understand the Review Panel comments. Ability to pay is the key to any scheme. If there is a profit we should failry share. Looking only at gross percentages says nothing about the ability to pay. Royalties that are based on a net and allow a return should be the criteria, not the percentage of the gross.
RRE2699 I think the government of Alberta is just being greedy to consider such a large increase in the percentage of royalties. While I understand the concept that the oil companies are making huge profits and our share is minimal, the Alberta government seems to have no consideration for the people who depend on jobs in the oil industry to support their families. Can they live with themselves when jobs and wages are slashed and a large number of Albertans as well as Alberta businesses are plunged into (at the very least) financial hardship , or worse, bankruptcy. There must be a happy medium somewhere. Look past the dollar signs and do what is best for the people of Alberta.
RRE2700 Please reconsider the proposed increase in Royalties structures as proposed by the review panel. It is my firm belief that excessive increases of royalties will suppress the oil and gas industry and may lead ultimately to a severe economic slow down for ALL of Alberta. As an Albertan I do believe that a fair increase is not unreasonable after all a slight increase would be acceptable to both Albertans and the oil and gas industry. That being said the proposed amounts are quite staggering-- with my math quite in excess of the reported 20% increase. This doesn't necessarily take into account long expensive start up costs of many properties or the every increasing costs of production. I believe that if the review panels suggestions are not amended there will be a cascade effect-- firstly the industry (Oil and gas companies) will cut back drastically on their research and development projects-- to the point of shelving existing proposed developments and drilling. This will lead to industry slow down, less drilling and higher unemployment. It also means that NO royalty monies would be collected by the government on those lost opportunities therefore less money to the Alberta government. Higher unemployment or lower end wages will affect the whole of the province, as those in the "boom" areas will be watching their spending. And not flocking to the malls or urban areas spending on hotels, in malls and on retail purchases. I am old enough to remember the boom and bust of the 70's and 80's. Most anyone that can remember that volatile economic time would not choose to relive it! I encourage the minister of finance, minister of economic affairs, minister of natural resources, the premier and in actuality all MLA's to carefully examine the royalty review. Understand that some of the reasoning may have been flawed and that there may be real danger in implementing such recommendations. I implore you to be fair -- both to Albertans and to the industry. I understand that Albertans were in favour of a review but a large increase in royalties will indeed net a lower return for Albertans at this time if multiple projects are shelved. The damage will be widespread and it would take years to rebound especially if commodity prices fluctuate widely or drop as it would take increases in commodity values in order to keep projects/ properties viable. We have been very fortunate in Alberta to have a prosperous and viable economy. Please keep it viable. Remember -- a poor decision at this time will cost Albertans as well as politicians as I believe that it could be political suicide for the government. As reported in the news of late many large oil/gas companies have already started to slow down development. You cannot fault their reasoning as they need this matter to be resolved-- lets make it a win/win solution as the other choice we ALL lose. Thank You [Information Removed]
RRE2701 My opinion is have ALL royalties collected that are due to this date and then phase in the royalties phased in slowly over a ten year period up to a max of 10%. At that time another review must be completed for future adjustments. Thank-you [Information Removed]
RRE2702 Incresing royalities is a must for the oil companies. This is a industry that has been in Alberta for years and will continue to be a main stay here. They need to better compensate the owners of the resource, Albertains. I have lived in other parts of Canada and the social infrastructure of Alberta and the services we receive in Alberta is sub par. For the riches Alberta has it's roads, schools, healthcare, parks and community services are lacking. We also nickle and dime citizens for all types of services in Alberta compared to other proviences and for a provience that has all this preceived wealth we are not giving that wealth back to the owners. Oil companies need to give more of the proceeds back to the owners, and I believe this will not hurt investment in the oil industry. They may have to work a little harder to make their billions in profits but a little hard work never hurt anyone. The oil is only going to get move valuable in the future and we need to secure that future now.
RRE2703 If the proposed revisions to the royalty rates are implemented as they stand right now the compnies involved will pack up their toys and head to B.C and the U.S..They're not " Blackmailing " us, They're Just stating the facts. Implement an increase but do it gradually and don't get greedy. If this comes down in the way it is, it'll be worse than in the 80's and, I for one ,do not want to go through that again !
RRE2704 I am very displeased with this report. It bases many of its recommendations on a simplistic comparison of Government take with suggested "comparable" juridictions. It underestimates the cost of activity in Alberta, does not consider the return on investment that is currently being experienced in the Province (in comparison to other areas) and is replete with poor assumptions including the assertion that implementing the recommendations will have no effect on activity levels. The report does not even consider the effect of the recommendations will have on mineral land sale bonuses which is likely to be dramatic. There is clearly significant bias in the report which quotes royalty statistics based on non-economic pricing scenarios Of course, whenever anyone is asked whether they "deserve more" or a "fairer share" they will respond positively. From the tone, and unprofessional analysis that evident in this document, it is clearly a thinly disguised attempt to promote a political agenda on behalf of the dominant authors. The Government would be ill advised to adopt the recommendations of this dominantly political document. Given a decision of this magnitude for Alberta's future, the Government should take its time and enter into its own consultation with key stakeholders in order to find a new mutually acceptable royalty structure for the province. We have spent many decades building the "Alberta Advantage" to squander it by making an ill-considered and hasty decision. I'm sure we don't want to end up like Saskatchewan which also has a considerable resource endowment but a much weaker economy due to over-regulation in combination with high royalties and taxes. The financial markets would easily tolerate some continued uncertainty as we pursue a balanced solution as opposed to the reaction we will experience from poor decision for the Province's long term future.
RRE2705 I have been a long standing P.C in this province for the past 34 years as has my entire family. I am at a crossroad! Alberta and Albertans have benifitted from the Petroleum Industry incredibley in the past. Alberta is the engine that runs Canada and all Canadians have benifitted in one way or another through the explotation of our natural resources. I agree that the royalaties for Alberta must be adjusted. But not to the extent the review board proposes. The immediate fallout say nothing of the long term ramifications will be irreversable. just take a long look at what happened in South America for instance. I do not think the panel has taken in the true facts regarding the risk / cost / payout involving the extraction of oil and gas, let alone the new environmental enforcements and protocols that now must be followed. The members of the panel are not even experts in the petroleum industry so how can they make a clear and honest opinion on something they are not capable of delivering. The lose of jobs will be like watching dominos fall. People that have invested and reinvested their lives and a lot of them are new residents, that have come to Alberta to work in the petroleum industry, will loose everything through foreclosures and unemployment. The oil companies will ramp down their drilling programs dramatically and believe me they will. There must be a compromise between government and industry so everyone wins and walks away from the table with something. The review panel and the oil companies must reconvene and the outcome must be benifical for all. You can not collect royalties fron shut-in or insignificant producing wells. Please have some common sense and lets keep investing in our future as well as all Canadians future. Thank you for your time....[Information Removed]
RRE2706 Alberta is becoming more and more expensive and less attractive to the oil companies. Our wage rates and the lack of skilled labor available create a huge burden on the oil companies building facilities. With that being said the large companies are still building for now. With the above costs and the review of the royalties we are staging ourselves for the same devistations we saw in the 80's. We are better off having our government tax the people and attracting the work rather than tax the companies and drive them out of our province.
RRE2707 I would like to comment on the royalty review debate with the following: 1. We are in a new age of government, the current Minister Mr. Knight is being accused of things he had no part of. We started fresh in December of 2006 with new appointments shortly thereafter. Mr. Knight has taken action with the AEUB, and will be fair with the royalty review. There must be a balance between economic development and return on royalties. This is the challenge of the Ministry and the government. It is not suprising that the large oil companies would react negatively to any increase, however I truly believe that they new it was coming. The oil companies were likely to reduce their development due to high cost of drilling and development. The resource is in Alberta and there isn't a better climate for developing these resources in the world. Even if the development is slowed somewhat this may help with the inflation in Alberta. There is enough comparables in Canada, and the World to make a sensible decision on what is the right return on the natural resources in Alberta. They made a similar decision in the Forest Industry a few years ago and it appears to be working even if the Americans don't agree. The Ministry of Energy has the knowledge and personnel to study both sides of the issue and make the right decision for Albertans, but we must give them the opportunity to do the right thing. The decision cannot and should not be a snap decision to satisfy the press or the opposition parties, but in the best interest of all Albertans and stand the test of time. Therefore, I believe Mr. Stelmach must react cautiously and let the "experts" separate the truth from the myths, and make the right decision. It will take time to weigh both sides of the issue and make the right decision for the future of Alberta. We should all be happy that the government of the day is willing to take this issue head on and represent all parties involved in the issue. Thank you, and good luck.
RRE2708 We would like to voice our concern over the Royalty recommendations. Just last week my husband and 3 other welders were laid off due to the uncertainty the company they worked for was undergoing. The company itself has placed $40,000,000 worth of contract work on hold until it can determine the effects of the Royalties. I realize this is not the only compnay with concerns and know that we are not the only family being effected. We understand this is a complex issue, but we hope great consideration has been given to the effects the present recommendations will have on all of Alberta. I believe most people are prospering mainly because of the oil industry. And yet others seem to forget that all business is tied together in some way creating a long term effect on everyone. I would hope the ultimate goal would be to create a win-win situation with the oil companies, which obviously means further negotiating to determine what is in the best interest of everyone. [Information Removed]
RRE2709 I returned to Alberta this summer after 4 years in New York and could not have been more excited about coming back to my home. The land of opportunity. Having been away for a while makes me realize just how well off we are as Albertans. It's a place full of hope and optimism and great potential. But this royalty review proposal has me very concerned as to whether it will remain that way. It seems that many advocates have been shrugging off the "threats" of oil companies to pull spending out of Alberta, but I am absolutely convinced that they are not bluffing here. It won't be a matter of sending a message. It will be simply a necessary step to achieve the best return on their investments for the shareholder's sake. Money that could be spent developing plays in Alberta will be put towards other areas that will become the best economic option. It wouldn't even be a question for the companies whether or not it's the right thing to do. Many people seem to have the opinion that "Big Oil" is scared of the proposed changes and making wild threats in an attempt to sway the government back in their favour. Again, I do not in the least share this impression. It's really not the big oil & gas companies that will be hurt at all. They've all got properties and interests spread all across North America and will have no trouble finding places to invest with a better return. And the communities elsewhere that are lucky enough to receive this extra spending will certainly benefit from it. It's all the regular citizens of this province that will be hurt most greatly by the changes. The review panel seems to have looked at recent spending (assuming much lower than actual costs by the way) and started salivating at all the extra money that could be pulled in. But the problem is this: There would not have been that much spending if royalties were so much higher. Taking a higher percentage in royalties of a much lower amount of money, will actually result in less money for Albertans. Less money for Albertans, less spending by oil companise within Alberta.... it's lose-lose and less for all! I can't think of a single person in this province that would actually benefit from the changes if implemented in full.
RRE2710 I am a 25 year old warehouseman for a company that sells semi-trucks. Our industry is quite reliant on the oil industry, and i have some concerns about the royalty isssue. As much as I would like to see royalty rates to be more fair, I have concern that oil companies will cut back their investment. I agree that oil companies are making record profits and more of these profits should be shared with Albertans being that it is our oil. The concern I have is that I as well as many other people cannot be unemployed. I have to have a job, i have no other option. I recommend getting more view points from Albertans, because after all it is our decision, not Ed Stelmachs. If the royalty increase means loss of jobs for Albertans, including myself, I do not support the royalty increase. If employment would not be affected, I would support the royalty increase. However, a thorough compromise between big oil and the working Albertan on how to share this money would mean the most for the quality of life of Albertans.
RRE2711 I am very much against changing the royalty review in Alberta! Having read, heard and discussed the impact of royalty review - it is my personal belief that the consequences of the implimentation of this review will bring Alberta to grinding halt. I think the polls are misleading too as many people in Alberta are not presented with the full picture. They are told that we can take more royalties from Oil and Gas companies which is just not true. I am directly employed by one of these companies and I can tell you, my job will be on the line next year if the royalty changes are implemented. We should not forget that the reason why Alberta is envy of rest of the county is because of oil and gas industry. As a whole the industry is already slowing down due to reduced gas prices and higher dollar. The affect of this is not visible but it is coming. Service companies such as [Information Removed] has already started laying off people yet it is not making the news yet. From ethics point of view, I find that Alberta Government is betraing our biggest driver - oil and gas industry. Tactics like this to increase the revenue will most definately deter future investments by multinational companies in the future. If the royalty structure is changed and next year thousands of people loose their jobs, you can rest assured this government will not be ruling Alberta for many many years to come.
RRE2712 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. The credibility and analysis of the report recommendations requires significant review. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal.
RRE2713 Please ensure this message is read at the office of the Premier and by MLA Edmonton-Decore, Bill Bonko. Premier Stelmach: I have read the report prepared by Mr Hunter and his panel associates. You appointed this panel to determine an equitable royalty regime that would facilitate a prosperous future for Albertans. The panel has done so. It is little surprise that industry representatives raise alarm bells at the prospect of increased royalties; indeed, it is their duty to protect the interests of their shareholders, so we can expect nothing else. Like you, Premier Stelmach, I am a "born and raised" Albertan who lived through the NEP. Today's environment is completely different. If royalties cannot be raised in an era of record profits and runaway oil-sands development, then when can they? I urge you, Premier, to implement fully the recommendations of the Royalty Review Panel. [Information Removed]
RRE2714 I firmly beilieve that it is about time that Albertans' got some decent type of return on our resources. It is also critcal that this money be truly "invested" for the future of all of Alberta. Listing buildings and other types of "infrastructure" as being assets of the Alberta Truat Fund is completely wrong. The money put into that fund belongs to all Albertans, especially those who in future will not have the revenue stream from the petrochemical industries to sustain them. Alaskans pay no income tax, Norway has hundreds of billions put away for future generations. A tank of gas in the U.S. costs just over half of what we pay. What have Albertans got for having all these resources? A bloated government that only seems to care about the voters come election time. Enact the reccomendations of the royalty review & invest it. Don't just spend the money, as has happened continually since the PC's figured out how to get their hand in the cookie jar.
RRE2715 I have worked for a number of the largest oil and gas companies in Alberta ([Information Removed] and others) and I believe that the report does not go far enough. There is far too little public oversight and control over the royalties submitted, with too much trust given to an industry that has shown itself as being willing to cheat the public out of its small share of a resource. In addition to what has been proposed, the government should also implement a 20-year historical review process of each well and royalty-generating item and impose a 10x penalty for any under-payment of royalties. Such a review process should also have a voluntary component which would then provide each company with ample motivation to update and catch-up any past and future royalty payment. Albertans own the oil and we should be the major beneficiaries of it, but our government has failed us. Instead of ensuring that our future is secure and our taxes are even lower (like Alaska), we have huge profits being sucked out of our province. Oil executives have multiple Ferraris while my children wait for a school to be built in our 10+ year-old community in Calgary! Why is it that the public is so poor while the companies are so fantastically rich from a resource that the public owns? The infrastructure in Fort MacMurray is under-built, yet the oilsands companies are doing very little to aid in the costs of constructing a community for their workers. This is very different from how companies used to work in communities like Pine Point, Kitimat, Thompson, Elliot Lake and others in Canada. It is time for our government to make clear expectations that the benefits of resource extraction have to be earned by these corporations. They have been given too light a ride and this review, while a good start, still fall far short of where it really needs to be. I hope that the government implements ALL of the recommendations as they have been given, and also sets out a clear 5-year cycle of royalty reviews in the future.
RRE2716 It is going to be a sad day for Alberta and Albertans once the new unelected governing party brings in there royalty increases. In one day they will destroy what has taken years of had work by many Albertan’s to build into one of the hottest and profitable economies. We moved from N.F.L.D in 1981 to Alberta the end of the last oil patch crash not Saskatchewan , now it feels like that we are going to be living in Saskatchewan even though we live in [Information Removed]. The saddest part is if the governing party was to go to the polls with this issue there is no other alternative except for a party with even crazier ideas. For this reason I am looking for work over seas.
RRE2717 For the future of the people of our province, I urge the government to accept and implement all the recommendations of the Royalty Review Panel. The panel seems to have balanced the need to provide a fair return to both corporations and, more importantly, the people of Alberta. The fact that royalties on many types of oil and gas extraction will be lowered is proof of that. The danger lies not in the fact that some oil companies may threaten to ease off on investing, in a time when their large scale investments have overheated the economy to the extent that the boom is actually making a good deal of Albertans worse off. The real danger is the potential impact of giving away non-renewable resources at bargain basement prices. I strongly encourage the Government of Alberta to show leadership and a commitment to acting in the long-term best interests of the people of Alberta by implementing all of the Royalty Review Panel's recommendations.
RRE2718 I feel that Alberta would be acting very foolishly if the recommendations contained within this review are followed through in full. We would all sit back and watch as our Province, that once flourished thanks to the oil companies, quickly dries up and no longer is useful in any fashion to the better part of the world. This puts all of us Albertans (and Canadians as a whole) at substantial risk. Aren't the Billions in Surplus that the Provincial government already reaps enough, or do we sacrifice everyone here just to add more Billions into poor choices, wasteful spending and so on. For the sake of all of us, we need to leave things as they are.
RRE2719 I am an Albertan who works in the oil sector and have for almost 30 years. I am seriously concerned about the news that your government is considering raising royalty payments at this time. Within the last few days, an exceeding significant number of oil companies have either suspended or cancelled their drilling programs while they wait for an announcement regarding this issue. In the short term, this means that there will be little or no work for many in the industry. The potential long term effect is that work is cancelled indefinitely and layoffs begin. For obvious reasons, I do not need to illustrate the “trickle down” effect that will have on our local economy. Currently there are many individuals who work in the oil industry that are suffering. Due to many factors such as changes to the tax structure of trust companies, and the soaring cost of projects, many contract companies have experienced a 35% reduction in the amount of business. Companies such as [Information Removed] have been sending their crews to the United States to work. That means two weeks in the U.S. and one week in Canada. Not only are they not with their families, but the benefits are going to the U.S. These contract employees of companies who are moving equipment and people out of Alberta and rolling back wages, as we speak, due to concerns with the lack of work and impending royalty issues. With the current slow down that I am seeing, it is not out of the realm of possibility to forecast an oil industry recession if the government does not proceed carefully. If the royalty change goes through in the way it has been proposed, high producing wells will have to pay higher taxes. This sounds like a good idea, however what I see is a few good wells pay for keeping the existing low production wells running, assist in the new wells being drilled and completed, and keeping the small companies that I work for to stay in business. If the good wells generate insufficient income there will be a shortfall on cash flow to stay in business and to pay the day to day bills. All of us in the conventional energy sector will see an immediate negative personal financial impact. I agree that additional dollars should be retained for Albertans and their future. Penalizing the oil industry today will in no way lead to a brighter tomorrow. It is another NEP, but with the pitfalls hitting us in 2007. I also think that it is unfair to imply that the only time Alberta can get their fair share is at the wellhead. The money I get is taxed at the energy company level, is taxed at my company, is taxed as income when I get it, and pays many taxes, levies and user fees when it leaves my hands. With the Province running a surplus why would you risk all these other revenue streams to get an additional cut of royalties? What would the value of the tax loss be if the oil companies quit spending their money on capital projects? This number should be determined before proceeding. It goes without saying that a halt on capital project spending would have a massive effect on the people of Alberta. The characterization that these profits go to a few rich people to make them richer is misleading. Some of these oil and gas company shares I own, to save for my retirement. Higher taxes and royalties mean not only do I earn less, but the money that I have saved for my retirement goes out the window, and I’m only a few years away from retirement…which will hurt my family if I lose my position at this time. It has been my experience that the companies that make money in the patch tend to hire more people, and those people pay taxes. I have heard that Mr. Stelmach will not be intimidated by big oil. Fair enough, but big oil has already shown that they will reduce spending due to increase costs. I think that it is fair to say that they will take their money and go elsewhere if it doesn't work out. For the ordinary Albertan's sake you must consider the timelines for your plan, the impact it will have, and proceed with caution. In my opinion both yours and my financial futures are in jeopardy if you choose to proceed with the implementation of this plan at the current rate. Respectfully, [Information Removed]
RRE2720 Dear Sirs, The oil sands growth started to occur following the implementation of the "generic royalty" terms and the economic spinoff has vaulted Alberta into an enviable position. Do not create an envirnment of instability that is likely going to negate the increased royalty take the report anticipates. Continued growth under the current fiscal regime will provide Alberta royalty revenue for decades and more. Proposed changes in the royalty terms will in the end result in Albertans getting a larger share, but froma smaller pie! Please do not create instability. [Information Removed]
RRE2721 I am [Information Removed] I have been in Alberta operating as a Independent Drilling Contractor for 28 years and been through many business cycles. I have employed between 60-300 workers at different points in my career. The royalty claw back of the Conservative Government reminds me of the days of the NEP and Peirre Truduea. Our drilling business is in its lowest levels since 1998 and oil was $12/barrel. Our Utilization level is at 30%. Our customers in the Producing business are not able to make money in this market due to the low price of gas. We have 1/3 of our employees laid off 100% of the time and 2/3 of our people laid off more than half of the time. This Royalty Increase is going to make the situation even worse than what it is right now. This scares me so much I am almost seeing a total destruction of my business that I have been operating 28 years. I have seen a lot, and this makes me think that this government does not understand the fundamentals of what makes industry succeed in this province. In the current envirornment, capital is extremely tight to raise to help move business forward. If the policies of the royalty recommendation are implemented there will be absolutely no equity injection at all and even less cash flow to be used toward operations. This means more unemployment and hence less taxes for the govt. Also this will reduce exploration and development dramatically which will result in less gross production in the province. The government may get higher revenue collection, but production will decline due to the pull back in activity which will then results in less revenue for the government treasury. The end result will be high unemployment in the oilfield producing and services sector, a deflation in housing and other consumer sectors in Alberta and a unhappy population. The government needs to remember that it is the working man that ultimatley creates the wealth for the government. You take our jobs away and you take your wealth away. Don't forget who feeds you. The workers of Alberta do. Don't take away our jobs. This is what your new Socailistic policies are going to do. The results of this implementation will bring bad economic results to the province, and I beleive for the first time in decades you will see the liberals voted in by mass population. This is a very dangerous path for all of us. Please don't ruin our careers and futures with this most radical policey change. Keep the conservatives in power by practicing what the old doctrine was of the conservative prior to these recommended changes toward strong socailism and anti-capitalism. Let industry create wealth so government can have fair tax dollars. Don't destroy the independent businessmen of Alberta by implementing this change in policey. Be responsible policey makers for a stronger and better future in Alberta. Keep your workers employed by creating incentive for Alberta Corporations, not stripping incentive away from them. Your Truly, [Information Removed]
RRE2722 Mr. Stelmach, I believe you should implement the report in its entirety! It was not an ad hoc report, but a far ranging on that included voices from all sides of the debate. In terms of people complaining that the "government will be taking too much money from the sector and will waste it," I would suggest that you indicate that the money will be going directly into the Hertitage Trust Fund. We have a wonderful vehicle already in place to build an oil and gas legacy for our kids. Currently, not enough of the money is going into savings. My thoughts. Thanks, [Information Removed]
RRE2723 I am a Petroleum Engineer and a long time Alberta citizen that is concerned the affect any royalty change will have on my life and my family's life [Information Removed]My job is to continually evaluate the economics of drilling for oil and gas prospects, so I am very familiar the affect any royalty change will have on oil and gas activity. Some points: 1. The basic fundamental assumptions for certain capital costs the Panel used to develop the Report are low by a factor of 2. 2. The Panel Report states that 82% of natural gas wells will pay lower royalties. This statement is based on an assumption of continuing low natural gas prices. In fact, with the current one year natural gas price, all gas wells (including marginal wells) will pay higher royalties. The proposed royalty rate for gas wells needs to ensure that marginal wells (the vast majority of new wells throughout Alberta) remain economic. Under the proposed new royalty program, many wells will become uneconomic. 3. The Panel recommends eliminating primary production in the oil sands area from the oil sands royalty program. This change will mean that the majority of the hundreds of these wells now drilled in Northern Alberta (Bonnyville, Elk Point, Cold Lake, Lloydminster and Slave Lake/Wabasca), will be uneconomic. This form of production should continue to be eligible under the oil sands royalty program. The proposed change creates a risk of a drastic reduction of activity in this region. 4. The Panel recommends the elimination of special royalty programs. Recently, industry and the Alberta Department of Energy carefully evaluated the royalty adjustment program for deep marginal gas wells. After extensive review, the Alberta government modified this program to ensure the economics of such drilling were supported by the program. By eliminating this program, there is a major risk to the activity in North West Alberta (Hinton, Edson and Grande Prairie) associated with tight, deep basin gas drilling and production. The current special royalty program should be retained. This is an area I specifically work on and I know what effect it will have on myself, my family, my Calgary collegues and my Grande Prairie collegues and their families. 5. The Panel recommended increasing the oil sands royalty rate from 25% to 33% after projects have paid out. They also recommended that the existing 1% pre-payout royalty be retained along with a new proposed severance tax which may be as high as 9%. The Panel has further recommended that the 1% pre-payout royalty (along with the proposed severance tax) now be paid, in addition, after the project reaches payout. Existing approved oil sands projects have been proposed and developed based upon the current royalty program and rates. By substantially increasing the royalties on oil sands, there is a significant risk that new projects will be cancelled and future expansions scaled back, delayed or cancelled. The proposed royalty increases negatively impacts oil sands economics which are already marginal. Most importantly, Canada atttracts significant international investment due to its stable business environment (as demonstrated with the many recent acquisitions of Canadian Oil&Gas firms by international companies). By changing the current royalty regime you are introducing significant uncertainty into the business community in one of the highest cost oil and gas basins in the world. This can only lead to decreased investment, jobs, income taxes and an increase in social assistance. Is that the real result the Alberta government wishes to implement ? Or is this just a money grap by the Alberta Government ?
RRE2724 Mr. Stelmach The Royalty Review Panel and the Auditor General have indicated that Albertans have been short changed with respect to $8 to $10 billion dollars over the last few years due to insufficient royalty rates. Your government was responsible for this mismanagement. These billions, not just millions, could have been used to help pay for much needed education and health services and infrastructure costs. What has happened is disgraceful. Do not allow this to continue. Raise the rates to the levels proposed. They are reasonable and fair. The oil companies are posturing as they have nothing to lose. Please stand tall for Alberta!! Regards [Information Removed]
RRE2725 The Royalty agreemtn was to encourage development of the oilsands. The ones that stepped up to take that chance have set the stage for those that follow. The risk for invdestors to oilsands technology no longer exists. That it costs more to get into the game now than the origanl investors -- is true in any field. The pioneers have reaped the fruits of their risk investiment. the need for the royalty arrangement has now passed and Albertans deserve a greater share for supporting development of this important resource, which is now has the infastructure and market in place for investors/companieis coming on board now.
RRE2726 I don't agree with raising the royalties to the level recommended by the panel. The "big, bad" oil companies have taken the risk, invested the capital and had the vision to create the project (i.e.: Oilsands Fort McMurray). The government is just trying to gain popularity with this issue. The "average" Albertan will never see their "fair share." However, many average Albertans will see job losses if the new royalities come to pass, killing the golden goose.
RRE2727 As a worker in the oil and gas, I am nervous about the proposed changes to the royalty system. Our industry is already experiencing a serious slowdown, housing prices are falling and many workers are not working enough to cover the high cost of living in Grande Prairie. A increase in royalties would be a knock out blow to our industry and the people that work in it, please don't take away all that we've worked for. [Information Removed]
RRE2728 I feel strongly that the Royalty Review suggestions should all be implemented, maybe it would slow down the growth the Gov't seems unable to handle, oil will always be worth as much, if not more, in the years to come. And if the Oil Executives in Calgary are upset, too bad, they show little compassion for the average taxpayer in Alberta, the actualy owners of the resource. To have the Oil Company's dictate Alberta Policy is a bad decision and one I would hope our Premier has the courage to stand up to and back the average taxpayer instead. DON'T LET BIG OIL RUN OUR PROVINCE!
RRE2729 I am a small business owner. I employ about 12 people doing land surveys for the seismic industry.This industry suffered from the change in rules for Income trust last year and we had a very disappointing year as a result. We started off the winter season with some good contract lined up. After Harpers announcement we saw a lot of that work disappear and as a result had to lay off several workers. I see the same thing happening here with the royalty review. Once again it is the start of the busy winter season and we had a lot of work lined up. Since the announcement of the royalty review we have seen several contracts cancelled and other ones postponed. Right when we should be gearing up for a busy winter I see another slow down coming. The government needs to be aware that Albertans are already getting a huge benefit from the busy economy. Taking 20percent more royalties is obviously going to have a negative impact on the industry and will result in layoffs and job loss. How can anyone think that would help Albertans share in the oil weath?
RRE2730 I work in the Oil industry and yes, my job and my families well being is directly linked to the continued success of this industry. While I do not trust the Oil and Gas companies as far as I can throw them, I trust Canadian governments (Federal, Provincial and Municiple) even less. The Oil companies at least are responsible to their shareholders to create value and wealth. Governments show no such obligations. In Canada governments are notorious for tax grabs - and this royalty review recomendation amounts to exactly that. Squeeze the goose until the eggs turn to crap. The easy "finds" in this province are few and far between. If we expect to have the investment flow into this province to continue the standards that we have come to expect, then we better keep in mind that the royalty take is part of the economics that determine where companies spend their money. A blanket statement saying we aren't get our fair share and upping the take by 20% is ridiculous - I hope my tax payers money didn't go to these clowns. How would they like it if there personal taxes were treated like that.
RRE2731 I believe that this is a bad idea. So far, our province had had surpluses for a long time, and the oil business had provided the opportunities for Alberta and the rest of Canada. This system is working very well so far, so there should not be any big changes made. Any change will cause some big consequences, and the Stelmach government will no doubt be to blame should these results be negative.
RRE2732 I am shocked that I have had to drive disabled Albertans to food banks while Alberta neglected to collect billions of dollars of royalties. This sort of "hide the report" has really destroyed my trust in the Alberta Government. It is obvious that ordinary Albertans don't count... Yet Alberta has been more than willing to listen to the oil and gas industry . I suggest you consider the recomendations of the royalty review. If the industry is worried about "low producing wells, perhaps consider increasing the rebate for older wells. But for heavens sake, do something (ANYTHING!) to restore our confidence in the Government of Alberta.
RRE2733 If EnCada pulls out $1E9 in new well investments, then they will not drill in the National Wildlife Area - this is a good thing. Given the international human & environmental violations by the Talisman's, EnCana's, Chevron's, & Halliburton's of the world (and we all know how they control other banana republics), why would we trust anything they have to say? EnCana (a former Albertan company) has recently shown its true colours of not remembering its roots. However, Albertans have experience kicking out government energy programs. That's fine - give the goods to Lorne Calvert, Gary Doer, & Danny Williams, for they know how to stand up for their people. Good luck!
RRE2734 1. Consider the unconventional hydrocarbons (e.g. methane, shale gas, EOR and oilsands) which are high cost projects. Higher royalty will render such projects unattractive and uneconomic. 2. Increase in royalty is likely to drive down industry activities in Alberta including investments, with the likelihood of job loss. 3. Industry focus may shift to adjacent province(s) that have more attractive fiscal policies than Alberta. I strongly recommend that no action be taken on any increase of royalty at this time.
RRE2735 Don't listen to the oilfield spin doctors-the forecast of doom and gloom is pathetic at best,disingenuous at worst. Remember where they come from - the good ole USA - they have no one but self interest at heart. Take the Norway example , they haven't quit investing there yet despite the "horrendous" taxes.I live in Ft Mac and a little "slowdown" would be a good thing..
RRE2736 Mr. Stelmach, As an Albertan, I am confident that you will take sufficient time to ensure that whatever formula you come up with will be a win-win situation for both Albertans and our oil & gas players today. There is a lot at stake here, however if implemented correctly, I believe the royalty formula can work for all (Albertans & Industry) increasing funding to the Alberta Government which in turn can be invested in health care, infrastructure, schools, etc.. Ultimately, the oil & gas industry and it's enormous growth in the past several years is the major reason for these large stresses placed on our infrastructures. The royalty report is fine however I'm sure you have the wisdom to not slap down a 20% increase in royalties as this will for sure kill a lot of future investmenst in our province, not to mention the effect it will have on current operations. We do have to also ensure that we are not being raped of everything we have, the way we are going, Alberta will look very different in 10 years just with the ongoing projects. Ultimately, if the additional monies can be used wisely particularly for the above mentioned throughout the province, this will only benefit the oil & gas industry as well as they too should also have a more engaged work force. At any rate, as I said before, please ensure you take the time you need to make the right decisions that work for all because this could definitely affect our province today and for many decades to come. Thanks [Information Removed]
RRE2737 Dear premier, Based on the information from the research results by CIBC, published: Tuesday, September 11, 2007 OTTAWA, [Information Removed], CanWest News Service: Canadian oilsands to become important global oil source, it seems reasonable to increase the royalty to the level suggested. [Information Removed]
RRE2738 The Alberta Royalty Review Panel’s Report to the Alberta government will have a major impact on the future of the energy industry and the economy of Alberta. For example, in 2006 the company i work for directly and indirectly employed 93,000 Albertans – mostly through contracted supplies and services. The Panel Report has recommended a substantial increase in “government take” on the current and future production of oil and natural gas in Alberta. However, the potential impact to the future activity and future production of oil and natural gas in Alberta, resulting from the Panel’s recommendations if adopted, was largely overlooked. While government revenue may initially increase, I believe that it would decrease in the longer term due to the resulting decrease in activity. Alberta's resources create a lot of jobs and economic activity as we develop them. Adding to our high costs by increasing royalties could have a drastic negative impact on oil and natural gas activity in the Province. The Panel’s base capital cost assumptions used to model and develop their Report recommendations are significantly understated. Accurate cost assumptions are critical to developing appropriate models to evaluate future impacts and ensure no unintended consequences. I value my job and do not want the government to follow the panel's recommendations. Thanks you for your time.
RRE2740 The government has become way too greedy. Although the government believes they will be getting more money out of this they are only going to loose money due to businesses pulling out of Alberta. You are going to take a booming economy and slow it down to nothing.
RRE2741 I believe that we need to look at changing royalty rates. However, I also believe that the royalty review panel's recommendations, which were based on incorrect data, will unfairly change royalty costs for oil companies to something more like 50%. This will make new activity prohibitively expensive, which will severely hurt the Alberta economy, and cost many jobs. Please take this in to account before making a final decision. Thank you for your time.
RRE2742 Royalty Report is flawed in not realizing the drastic negative overall impact that their recommendations would have on our future. I agree that their should be a review of the royalty system but it should be colaborative with energy companies included in this review. Investment in our province by corporations must continue to be encouraged and not be shunnted to other countries or provinces.
RRE2743 My wife and I entirely support your courage and leadership to correct what the last leader chose to ignore entirely. We appreciate the pressure you are facing from the industry lobby and we want you to know that as life long Albertans, we want you to do what is good and right for Alberta. This means making a correction to the formulas to provide a more fair share to the citizens of this province and reducing the insane windfall that the PNG companies have enjoyed for far too long. If it was not so rosey for them, perhaps we would not be in this tragically overheated economy with all its negative side effects and greatly diminished quality of life. The new forumula will be successful if, and only if, it creates a slow down in the pace of development. The down sides of this boom far outweight the benefits and we cannot wait to see a correction. We are NOT conservative supporters and yet we are thrilled with the calm, considered and thoughtful leadership Mr. Stelmach is demonstrating, finally some intelligence, ethics and sanity at the top! The fact that you are not rising in the poles leaves me speachless and dumbfounded! Thank you for giving us hope and a reprieve from mindless and morally bankrupt governance. [Information Removed]
RRE2744 Premier Stelmach: How delighted I was, along with so many average Albertans, when the Royalty Review Panel you established as promised gave its results about the need for increased royalties from the oil and gas industries. For many years this has been a great concern to me, but I knew under the former premier's "rule", this was a dead issue. And then, to have your auditor general reiterate these findings in an even clearer message seemed to guarantee that at last, someone in our government was going to do something that would truly benefit all Albertans, present and future. Then came the expected "threats" from the major oil companies, similar to a spoiled child not getting their way and "taking their ball and bat and going elsewhere", or even of terrorists saying "do it our way or we'll make you suffer". How I hoped and prayed that you would be above listening to these threats and would not give in to their demands as your predecessor always did. How I hoped and prayed that you would live up to your nickname of "honest Ed", steady Eddie, and that you really were a man of the people, all the people, not just those who could buy their way in and out of wherever they wanted to be. Although I have been a member of the federal Conservative party for a long time, I have not been a member of the provincial party, other than to vote in the leadership campaign. I did this so that the autocratic rule of the former premier was not continued. I did this to ensure someone, just like you, would be the leader of this great province of ours. As our leader, of all Albertans, present and future, I ask you sincerely to respect the results of your Royalty Review Panel, to respect the opinions and suggestions of your Auditor General, to respect and uphold the desires of the vast majority of your fellow Albertans. We have asked you to act on the results of this Panel and to increase the royalty rates. I truly believe to not do so would adversely affect your party, your own credibility and ultimately all the people of Alberta. I guess on Wednesday evening we will see who really runs this legislature, the Conservative Party and our province. I hope and pray it is you, and that you're doing it for us. Sincerely, [Information Removed]
RRE2745 If these higher royalties are put in place, It will be the end of Alberta as we know it. Without oil and gas exploration, all Albertans will suffer significantly.
RRE2746 I have read the royalty report and thought it was well thought out and that its recommendations should be accepted and implemented by the government. I work as a geologist in the oil and gas industry and think that the industry has long forgotten that the mineral rights belong to the people, and that the governments job is to make sure that the industry is paying its fair share.
RRE2747 I agree that Albertans should get their full money back bfor the resources in Alberta. The growth in Alberta has pointed the immediate need for more infrastructure to sustain it. More schools, hospitals, roads, and better tranist. This infastructure will benefit everyone, including big oil companies operating in Alberta.
RRE2748 The authors of your Royalty Review are ill imformed about the reality of the business. I am a small independent in the oil and gas business and we will be hurt by your proposals. I am against your proposals to increase royalities. It will hurt many people and the Alberta boom will be over. I will no longer support your party if these measures are implemented. [Information Removed]
RRE2749 Leave conventional gas and oil sources alone and increase the royalties from what is booming, like the oil sands, but only according to the amount of profits, don't hurt the actual investments and developments themselves.
RRE2750 Good day. Firstly, let me congratulate the current government to having the courage to do the royalty review. Secondly, let me say that I'm sending this response on behalf of myself, my wife and my brother. We care about our province and are very well educated (I'm an accountant and have MBA, my wife is a medical doctor, my brother is an enginneer and has MBA, as well used to work in the energy sector - both big oil companies and the public sector). Here are our comments: 1. We very strongly believe that our royalty system should be structured to rank towards the top (say 80-85%) on international royalty scale, not at the bottom of the scale. 2. There should be a tiered system with minimum royalties corresponding to low natural resource prices (e.g. oil at $20 or less) and increasing significantly with higer prices (should apply not only to crude but also to natural gas, bitumen, etc). 3. The natural resources sector is naturally cyclical and the best way for the royalty regime to recognize this is to have a tiered system as above. 4. Significantly increasing royalties will most likely cool down the investment activity but this will actually benefit Albertans, benefit the province and our environment, especially in the mid to long-term. 5. From the political point of view, we have been pretty much die hard conservatives and voting accordingly both on the provincial and federal level. However, we will not be voting conservative in the next provincial election if the government does not introduce major changes, very significant increases, to the royalty structure. Regards, [Information Removed] PS. We support the recently released Parkland Institute report regarding royalties.
RRE2751 This report confirms what we've all known for years.
RRE2752 Dear Sir or Madam, It is very unusual for me to contact Government on matters of policy. However, I feel that I must speak up with respect to the recommendations contained in the Royalty Review Final Report. The Report itself is based on what appears to be a fundamental misunderstanding of how international oil and gas fiscal regimes operate. I suspect that they cherry-picked a small set of data which would boot-strap them into the result for which they were looking. In fact, oil and gas investments in Alberta have amongst the worst IRR performance in the world. Dwindlings reserves in a mature basin, combined with huge costs and long payouts dictate that this is a risky regime in which to invest. Our fiscal regime should be structured accordingly. In writing this submission, I pondered quoting liberally from numerous analysts' reports in order to try to show the horrible misunderstanding that the Panel appears to have with respect to economics in general and the oil and gas industry in particular. However, I believe they had access to all that information and chose to ignore it. Accordingly, my comments will be more "visceral". The Government may feel free to adjust royalties on new wells and projects, on a go forward basis, and the capital will either stay or flee to where it is most efficiently deployed. What is fundamentally un-Albertan, however, is to change the royalty structure on wells or projects which have already been sanctioned and, in many cases, have already caused the operator to spend billions of dollars. This is dishonest to the operator, its shareholders and its lenders who had the courage to risk their capital on a given set of economics. Whether or not the contracts themselves specifically provide that the operator will pay the appropriate royalties as may be in effect from time to time is absolutely irrelevant. As an Albertan, born and raised, I've always believed that a promise is a promise and a handhake is ones' word. People and capital are attracted to regimes which honour this code and are fearful of regimes that don't. Moving the goal-posts in the middle of the game is never appropriate. I've voted Progressive Conservative all my life. I've even joined and contributed to the Party from time to time. Most recently, I joined the Party so that I could vote for a Party Leader who seemed to believe in traditional Alberta values: Ed Stelmach. Apparently, I was wrong. I lived through the National Energy Program and its devastating wake. i've always feared that some short-sighted policy wonk would, one day, try again to take a bigger bite of the apple than could be supported. I always expected, however, that this would come from Ottawa, not Edmonton. The new Government appears to think that "sticking it to Calgary" will play well in the rest of the province. I suggest that this is absolutely flawed. Edmonton is largely the industrial heart that keeps Calgary and Fort McMurray going. If Calgary and Fort McMurray are knocked off course, it's going to be Edmontonians that feel it first. If some or all of the recommedations are implemented, in particular the change in royalties on existing wells and projects, I will be sure to never vote Progressive Conservative again. You can rest assured that myself and tens of thousands of others will have lots of time to contribute to other parties, since we'll all be unemployed. Shame. Sincerely, [Information Removed]cc: Alberta Progressive Conservative Party
RRE2753 I am a wellsite geologist working in the Alberta Foothills. My comments refer to your conventional O&G proposals, as I know nothing about tar sand. I am wondering how the forestry industry would respond if a retired oilman was hired to review Alberta's stumpage royalty regime. It is imperative that somebody who knows something about the oilpatch be consulted. I am not thinking about oil company employees here, I am thinking about entrepreneurs, who work harder, and risk their own cash. I am not totally current about Texas, but I am very sceptical about the reported State take on conventional. Since most Foothills wells will come under the high productivity category, they will attract 50% royalty. This takes no account of the capital cost of these expensive wells which can cost upwards of $20,000,000.00. With high royalty and the high corp tax big companies pay, these will never pay out, and will never be drilled. I fully expect that if the recommendations of this report are implemented, Foothills drilling will be shut down immediately. I also function as a principal of a small oil company (85 BOE/day). You first have removed our royalty tax credits and now you propose raising the royalties on our 2 best wells (where small interests make 90% of our cash). Our drilling is now at a standstill with the increase in the $CAN and the tremendous drilling cost increases of the last 4 years (up at least 50%). We can't do anything now, and we certainly won't if you raise royalties. I am a long time Conservative. When I look at this report I see nothing Conservative about it. This could have been authored by the Liberals or even the NDP. I live in Calgary and work in the country, and I can say that nobody I have talked to likes these recommendations. If the Conservatives lose support in Calgary and rural areas, there is a reasonable chance that the Liberals will take the next election. This would only increase the problems in the conventional oilpatch. You have to take your eye off the high price of oil. You must consider vastly increased drilling costs, the high Canadian dollar, and the current low gas prices. Our small oilco was much better off 4 years ago with oil prices at $40.00 and lower $CAN and explorations costs. We also had the ARTC, a feature that was very important to small operators. I realize this sounds like a lot of crying to you, but if I could sell out, I'd do it in a heartbeat. I have 2 jobs, I can't live off of the oilco because of added operational costs. I own 21% of 85 BOE/day, and I get to take home $5,000.00 per month from it. As I have 5 kids, 3 in university, I have to work on drilling rigs to make it. It is so discouraging to do all the work, supply all the capital, take all the risk, and then have the Conservative Government take most of the proceeds. These proposals will be particularly hard on new startups and small operators. The Exxon-Mobil types will simply continue to produce their old oil and shut down their exploration efforts. Bear in mind that these comments refer to conventional O&G only, I know nothing about heavy oil or tar sand. The one thing I liked about the report was the elimination of the minimum bid at landsales. As you may realize, low bidding is not allowed in BC or Sask, so small companies are effectively shut out of the sales. Alberta has historically been small company friendly with low minimum bids and the ARTC. Alberta has always realized that they make their main cut on royalties, not landsales. And, obviously good land has always fetched a good price for the taxpayers of Alberta. If the implemention of these proposals brings the Liberals upon us, we will only suffer more, and the suffering will probably extend far beyond the oilpatch. Thanks for reading, Yours Truly, [Information Removed]a very worried geologist with 30 years experience in the Alberta oilpatch.
RRE2754 Why would this government want to put the future development in this province at risk? I see many oil and gas companies with huge earnings and what happens to those earnings? They are put right back into the province as spending. If this Royalty scheme is implemented companies will cut their spending which is not good for long term economic growth. I personally don't feel that the government can efficiently distribute that extra money anyway and it will simply be wasted. Should some changes be made? Absolutely, but the proposed changes are downright dangerous.
RRE2755 I feel the government is way out of line collecting more tax from the oil industry when we are a cash rich province. If the goernment collected the taxes owed to them each year that would be more than enough. If you want to kill the economy and creat high unemployment nkeep going down the pay you are creating. If this does go through you can say good bye to my vote.
RRE2756 Please not only take the Royalty Review seriously, but follow it. Despite the Government's statements that it does not want to put on the brakes, especially in the oilsands, not doing so could prove extremely damaging to Albert'a environment. If higher royalties slow things down, this would be a positive outcome. Meanwhile, do collect the outstanding royalties from the past few years.
RRE2757 I disagree with the conclusions of the royalty review - I have voted conservative my entire life but you will lose my vote permanently if you proceed with the recommendations. [Information Removed]
RRE2758 Does anybody recall the National Energy Program from the Trudeau era and what this did to our province? I bet Mr. Peter Lougheed can. Has anybody asked for his views? I can not believe that our own provincial government is attempting, and will succeed, in producing the exact same consequences if the 'panel' proposals are adopted. I have been employed in the oilfield for the last twenty years and have seen my share of ups and downs. The last five years have been very prosperous for Alberta, as the provincial surplus can attest. So why now, when markets and productivity seem to have 'planed' out, and uncertainty surrounds every decision a person or a company makes, does our government decide to expand the vault? Short term gain, and I stress short, is not the solution. I agree, the oil industry should surrender more for provincial development, but the oil industry is very sensitive to abrubt changes in course. Why can not this be introduced gradually? The oil industry has always been volatile, so why agitate? Please proceed with caution, and please evaluate all data with unbiased views. I have been a proud Albertan for 35 years, and with hope, for another 65.
RRE2759 I think that royalties to government and therefore to benefit the common Albertan should be higher. 20%?? well maybe not, but for people like me who are not involved in oil and gas industry it would be better that the ecomony cools a little and costs of housing, services etc.are more reasonable. Please consider the recommendations carefully and do not be swayed by the lobbying of the fat cats in oil and gas.
RRE2760 I think the Alberta Gov't should implement the recomendations made by the Royalty review- it is about the time the big oil companies start paying their fair share- they have made huge profits at the expense of ordinary Albertan's who have suffered because of not enough dollars for our Health Care System, infrastrucure, Schools etc. If the Alberta Gov't had been collecting their fair share of royalty taxes a long time ago our province would not be in such a mess.
RRE2761 If Alberta has the power to increase the royalties it receives from the energy sector, particularly with regards to the oil sands, then it should by all means.We have something very special up there, something the world wants, something that will be needed for centuries. If increasing the royalties will slow down the rate of development a little, then so be it. This way, rather than the oil companies receiving the most benefit, the average albertan will reap the benefits, in things like improved infrastrucure, roadways, community facilities, research and development (perhap, say, in non-petroleum based energy - hint, hint), higher wages for teachers and in turn, better education for our children, etc. This economy could use a little bit of control at this point, and our quality of life is suffering because it is currently not. Getting worker/servers in next to impossible, housing prices have escalated to the point where you literally need two 6-figure earners in the household to afford anything half-decent, bumper to bumper traffic is expected everyday causing a dramatic rise in accidents and road rage, crime is rampant. We really need to look at the rest of Canada to see how far we've really fallen. Who are the oil sands really benefitting? Sure everyone has a job, but the cost of living is much higher. Increasing the royalties is a win-win situation for everyone, save the .0001%, the oil executives drving their ferrari's, laughing all the way to the bank at our expense. The Oil sands are a natural resource that belong to Alberta and Canada. The Klein government did it's job in getting the ball rolling, but let's not let that ball gain too much momentum that it loses control, and leaves us with a desolate hole up there in northern Alberta. Let's take a step back, look at the situation, and come up with a plan that will benefit all albertans and more than one industry. We need to look to the future, and the deposits up there should be able to sustain Alberta for centuries. At this rate, decades, perhaps.
RRE2762 Raising the royalties on the oil companies will be the biggest mistake ever made in the province. The government is ignorant to the massive loses of jobs this will create. I have seen what conoco phillips had paid in 06 for royalties and taxes. about 1.7 billion dollars. Is that not enough? Also does the gov't not see that the industry is already slow. The price of natural gas is less than half it was 3 years ago. For the love of god do not do this oh also I wander what ralph klein thinks of this???
RRE2763 Use the oil money to improve the quality of life for all Albertans.
RRE2764 Dear Government of Alberta, I am a grade 9 student in st. albert alberta and we are learning about the rolalty report in our social studies class. My opinion is that you should raise the royalty from twenty five percent to thirty three.First of all that wasset a long time ago (the twenty five percent ) and times have changed since then. Also we have lost two billion dollars that could have gone to more useful things than the oil companies. I think that the royalty should have been changed a few years ago because it could have had so many benefits for Alberta. Thank you for taking the time to read my message.
RRE2765 If the proposed royalty tax increasing will result in a very slowed economic in Alberta, that is not good to everybody. If it has no impact on the employment of Alberta, slight increase could be fine. But be careful, the increase of royalty tax may cause a crush of economic if oilers stop investing in Alberta but in somewhere else.
RRE2766 I am strongly opposed to the 100% increase in tax on freehold royalty properties. We certainly pay enough already and this is just gouging the little guy. When are the Conservatives going to wake up and not tax so much.
RRE2767 As a contractor to the oil and gas sector I feel that any futher money grabbing by the government will put myself and others like me at risk. If you like collecting income tax from me and those like me I would suggest that you think very carefully about your next move......
RRE2768 My $0.02 on the issue. I think the increases suggested by the royalty report are too high. I would like to see a net increase closer to 10% instead of the 20% recommended. Where I would like to see some drastic increases is for any resources that are being shipped out of the country. There should be a completely different structure of royalties for any bitumen, crude; etc that is being shipped out of Canada to be further refined somewhere else. This product leaving the country is taking jobs and investment with it. An increase of 50-60% for this instance would be welcomed. I know there has been a lot of posturing by the large companies about the negative effect an increase will have on them and I agree that too big an increase will be a negative. I also agree that there are different issues in the Alberta labor market that make it more expensive to do business here over other markets. Overall, I have no issue with charging more. I also think slowing down investment in the Province will be a positive for today’s overworked Albertans and the next generations of Albertans who will have the same opportunities we have had if the investment is spread out over 15-20 years instead of 5. I also think we are being stolen from with any raw product that leaves our country without a stiff tariff. Thank you for your time. [Information Removed]
RRE2769 I am a born and raised Albertan, and I have worked in the oil industry for 25 years. In that time I have witnessed the devastating results that ill conceived government action can cause to the industry and the province as a whole. While the province has done a good job of diversifying our economy, the energy industry is still the primary driver of Alberta's economic prosperity. I have children who will be entering the workforce soon, and I fervently hope they will have a solid economic environment to build their careers in Alberta. PLEASE DO NOT IMPLEMENT THE CHANGES TO THE ROYALTY SYSTEM AS THEY ARE CURRENTLY PROPOSED.
RRE2770 This report is seriously flawed and will adversely affect the Alberta economy. Please consider all the tax revenue that Alberta receives from a prosperous oil patch and all the befefits that flow from a well employed population. Royalties should not be changed. [Information Removed]
RRE2771 Given the opportunity, I would vote to accept the Royalty Review Panel's recommendations in full. I believe that reduced investment in the short-term is an acceptable consequence of full implementation of the recommendations. A fair royalty revenue stream will be realized in the future when projects are deemed viable by the oil and gas companies.
RRE2772 Royalty rates are WAY too low. There is nothing wrong with being competitive with countries like Norway as long as the level of investment required to extract the resource is factored into the analysis. We have a responsibility to future generations not to squander this immense resource. Clearly the oil companies will complain as the money comes out of their pockets. They will come to where the resource is and that is in Alberta. Lets keep the money in Alberta and in Canada.
RRE2773 Many people told me that the recent run of the Alberta economy, driven primarily by the energy sector, was "too good to be true". If the royalty panel recommendations are adopted by the Alberta Government, I guess my excitement at forging a career in the Alberta energy sector was, indeed, too good to be true. Alberta is the wealthiest province in the nation and, therefore, one of the wealthiest places on the planet. Do Albertans get their "fair share" of the energy sector? Go visit my home province of Newfoundland and see if Albertans are being short-changed. I understand that every leader of government needs to have a legacy. Please, Mr. Stelmach, don't make greed your government's legacy.
RRE2774 Please consider the following effects to increasing government royalties in Alberta. Although the impact on large O&G companies will not be devastating, small and midsize companies will be pushed to the point of having to reassess whether or not they will be able to meet their business plans. This will lead to an industry implosion the likes of which have not been seen since 1981. Please remember the effects on the provincial economy after that last assault on the industry by the federal government. This will not only impact the O& G sector but also the Agriculture industry, the Transportation industry and especially the retail industry, through reduced spending of disposable income from those left employed and worse the cessation of spending by those who will have lost their livelihood as a result of Alberta getting it's “Fair Share”. You must consider, is it better to be receiving tax income from working Albertans or writing cheques to unemployed Albertans. Please keep in mind that the Oil and Gas industry reaches well beyond the exploration and production of the commodity. Consider the impact of the reduced activities of Community Engagement Departments who will no longer have funds available for interaction with the stakeholders in the areas that they operate in. This will be a substantial loss to those community groups and the people who reside in those communities. This will also be true of the companies’ involvement with the First Nations groups. Where will this support come from? Also consider the vast amounts of monies spent by the Oil and Gas industry on reducing the environmental impact of exploration and in particular production. These initiatives will cease to exist. Development of new and cutting edge technologies for noise reduction from compressor stations, new methods of Green House Gas reduction, water recycling, and waste heat recycling projects will be scraped due lack of project funding so Alberta can get it’s “Fair Share”. Finally, your government has yet to achieve a mandate to implement such drastic legislation on behalf of the people of Alberta. You are still working on a mandate given to Mr. Klein. Please call an election immediately and fight for your mandate to govern. This will force you to hear what Albertan's as a province have to say about the royalty report and allow the voting public to judge your stance on its findings. Thanks you for this opportunity. [Information Removed]
RRE2775 Dear Sir, There are a lot of things to comment here based on the elements the report based on. I think the review panel tried to do a good job but missed the big picture and a good understanding of the potential impact of their recommendations if implemented. As a simple citizen, my strong belief is that the recommendations will have a substantial negative impact on Alberta's economy in special and Canada's economy in general. I think we are living here on the edge of costs in all our work and particular lifes. And this is possible because of a relative secure economic environment which we like so much but which environment we are about to damage. Forcing big financial players as well as smaller ones to look elsewhere for a better return (they have no choice since this world is run by a "do money" concept) will live me and you looking around for a "what's left" alternative. Let not fool ourselves, sooner or later we all be affected. And than we'll have to start the cycle again, to make our house nice so the guest feel attracted and come. Why we should do this?? Why all this pain just to realize how nice it was?? In the end I want to say that I do not totally disagree with the panel and I am convinced that the review was done with very good intentions. It's about the recommendations. I am convinced that a program directed to cut the costs (some benefits or incentives or bonuses can apply) will increase the profits and the net profits we'd like to see our fair share in. Since this is more a political issue now, I must say here my point of view is not related in any way with the political scene, I'm just a citizen of this city and I'm trying to be a good one. I think furthered consultations are more likely to bring a better alternative for this situation and that's the way I would like to see the industry and government headed. Sincerely, [Information Removed]A citizen of Calgary
RRE2776 dear mr. stelmach hopefully the recommandations of the royaltyreport will be implemented. it is good that the oilexploitation slows dowmn a little bit. This is good to lower the inflation and for the generations after us, so they can still have oilroyalties. It also gives relieve on the labourmarket. The wages are out of control. I hope you sleep well. sincerely; [Information Removed]
RRE2777 October 18, 2007 Premier Ed Stelmach Alberta Department of Energy North Petroleum Plaza 7th floor, 9945-108 St Edmonton, Alberta T5K 2G6 Dear Mr. Stelmach We write to you to express our concerns with the increased royalty tax proposed in Alberta. A few of the major oil companies have stated very clearly that if you decide to pass the royalty tax as is they will be seriously looking at not only cutting back exploration and production in Alberta but looking at alternative province to conduct business. I am sure you are aware of the devastating triangular effect on the service sector part of industry this decision would have on our communities. By raising Alberta royalty taxes to the extent as suggested in the controversial report, you not only take away the opportunity for future growth, but risk the loss of thousands of jobs in Alberta. A substantial amount of oil industry profits go back into exploration and new sources to meet our growing energy needs. These oil companies do share their resources in our communities. Recently, $50,000 was given to the Edson Daycare. This is a much needed funding source, our daycares are in great demand. CAPP has become a recent Shareholder in the Foothills Model Forest and $250,000 was given to this company. Foothills Model Forest is a non profit organization that works in the field of applied research in sustainable landscape management, and relies on this kind of funding. Many other donations by the energy industry to specific projects within this company are also worth noting. The Alberta Winter games had sponsors, directly and from service companies, in Hinton two years ago. This is just a very small part of the generosity of the oil industry. Increased Royalty tax, donations like these would not happen and this would affect our communities and thousands of jobs within them. Energy is vital to our economy. Our energy sources must be diverse and reliable. The proposed tax will take away the sources needed for future growth and cause a slow death of the industry. I'm in favor of more funds for education, health etc. but getting those revenues by sacrificing one industry is not the way to go. Alberta is the only debt free province, and making huge amounts of funds through the current various tax implementations. You represent our province and what we as the public are hearing is; that you are implying that you are not collecting enough taxes from us and or your lack of provincial process and responsibility on the review of the royalty tax policy. This was your (provincial) responsibility years ago to have slowly increased this tax, and now because you did not managed this appropriately; you want to increase this tax in an unrealistic increase. Who is going to pay for such a decision, the citizens of Alberta? At a minimum, considerations for the new tax should be put on hold while a closer look at the data gathered, data missed, misrepresented and some serious consultation not only with these company’s but the “General Public” of Alberta. Not just Edmonton and Calgary. It is us that this decision will affect most, “Citizens of Alberta”. Sincerely, [Information Removed] P.S Yes we are part of the “uneducated construction contractor” , with no EI benefits, two kids making a good living in the Oil and Gas industry right now. This royalty tax gets passed, we will be unemployed, but don’t worry about us, I guess you will support us, through WALFARE.
RRE2778 Given that the government is supposed to serve the interests of Albertans, and the report shows that citizens are overwhelming in favour of higher royalties while industry favours the current ridiculously low scheme for higher profit, it would be irresponsible and negligent to implement anything less than the increased royalty rates proposed in the report. Preferably, greater increases would truly serve the public interests of Albertans, which is what the government is supposed to do.
RRE2779 I strongly favor royalties AT LEAST as high as those proposed by the commission. And even if the oil lobby is right that this would slow down the boom, this would be a GOOD thing. The economy is overheated, and our oil resources are only going to become more precious as time goes by....
RRE2780 I work on provincial highways, and have done a fair number of projects in Fort Mac. It is a mess from many points of view. The growth is out of control, Infrastructure building (highways and others) can not keep up. Prices are out of control. This development has to be slowed down for economical reasons and environmental reasons. How? Precisely by increasing royalties. All CEOs of mayor companies by now have said they will slow down (slow down , not quit) the development of the oil sands. THey will not go anywhere, this is the only oil game left in the planet. For the sake of the planet, Canada and our future kids, let's go slowly. The problem with water is also incredible, where the water is going to come from to process all that oil sand? There is only one river, and by now it is being used extensively by Syncrude and Suncor and soon CNR and Petrocan and others!. Who is doing the studies of water availabilty? Also very important is the fact that some oil companies are talking of refining bitumen in the USA. The will ship the bitumen from Alberta in pipelines. This is a mix of sand and "water". Are we stupid? Are Albertans stupid? This will be the plain theft of our water resources by an oil corporation. Once the sand and bitumen has been separated, water is left for them to sell in the USA. Large amount of water I may add. Billions of m3. Are we that stupid?. This governement must stop this insanity, Klein did this, is ED going to continue on the same path? So please increse royalties to the max, thank you.
RRE2781 I am a native Albertan born and raised in Calgary. Although I currently work as a geologist in the oil patch, I didn't in 1985, the year I lost my house due in no small part to the effect the NEP had on the Alberta economy. My $225,000 house built and bought in January 1980 wouldn't sell in 1985 even though I listed it for $135,000, $15,000 below the mortgage amount. I had no alternative but to give it back to the bank as the monthly payments of $2000.00 at 12.75% interest made it too expensive even though I was working as a [Information Removed] in the summer months. [Information Removed] jobs were small, few and fair between, people didn' t have the money to spend. I returned to University and graduated from [Information Removed]. I am married have three young children [Information Removed], [Information Removed] and [Information Removed]. My house is paid off, my wife and I have a fair bit tucked away in RRSP's and RESP's. At work, I hear a lot of talk about how the new royalty rates will affect the junior oil and gas companty work for, primarily because our few biggest wells that are capable of generating the needed cash flow to drill our more exploratory wells will be hit the hardest drying up this source of capital. In addition to that, wells that have an unrisked estimated return over 30% on some of our lands will generate an 8% unrisked return under the new royalty plan, and that is at current gas pricing. Risked, these wells become uneconomic. My reason for writting is to inform you that should the new Royalty rate come into effect and have a fairly severe impact on the Oil and Gas Industry, my family would likely be fine. In fact two or three years out, we might actually benefit from the depressed Alberta economy and even find that we can move up into a larger home, acerage, or even move to another area like BC, Sask., or even the USA. I can't predict such favourable conditions however for much of Alberta's population. Just keep in mind that activity has ground to a halt in the past and could do so again. Just look back to the 1980's, granted interest rates aren't double digit and oil prices are currently high (although the patch has seen much of that increse erased due to the rising dollar), the spin off effect of a major industry pullback will lower gov't revenues far more than the hoped for $2 billion that the new Royalty structure will be trying to bring in.
RRE2782 1st Mr. Flaherty with Income Trusts & now this. I am very surprised by this entire "Royalty Review Panel's" process & how the initial report has been handled. I'm a big believer in people so I would appreciate your response on how the qualifications of the board members justify such recommendations that will be viewed by other countries as something that would only come from a radical government body such as Venezuela or one of our Provincial brothers. [Information Removed] I would appreciate your response & voicing my displeasure on how this is proceeding. There needed to be a more balanced split in the committee with individuals that actually have "hands-on experience" to work towards a resolution everyone can live with and Mr. Stelmach needs to address this very quickly to... a. reassure foreign investors, & b. preserve his Constituents hard earned savings that have already been hit hard due to mismanagement of the Income Trust sector by our Federal Government. Yes I did vote for Mr. Stelmach but I am having huge reservations on the direction of the Conservative Party with the me vs. oil industry attitude. It needs to be presented & dealt with as a "we're all in this together" & works towrds a resolution where everyone wins. regards, [Information Removed]
RRE2783 If the change in royalities causes oil companies to go else where to develope resources what will this do to our booming economy?If oilfield job disappear all sectors of the economy will suffer and how would that be an Alberta advantage?
RRE2784 Continued investment in the oil sands is critical for the long term financial health and growth of our province. In the past, our business friendly climate has made us a desirable place to invest. This ill-advised report has threatened our business reputation internationally. Unless we act quickly, we will be labelled as a difficult and unreliable place for business to invest. Please act to repair our reputation!
RRE2785 I believe the proposed Alberta royalty increase will bring the Alberta economy to a screaching halt. The premier doesn't have the knowledge or the insight to initiate an increase as proposed. How much more money is needed in the Alberta Hertiage fund that is currently mismanaged by a bunch of idiots???
RRE2786 i am going to be directly affected by whatever decision is made at the end of the month. 2 questions i have regarding this bullshit report. 1: if we (albertans) get our fair share of cash from the new royality scam and i lose my job, it the government of Alberta going to give ME MY FAIR share by paying my mortage since i wont have a job? or is it only the underemployed lazy eco-tards that are going to see some help? 2: where is that extra 2+ billion dollars going to go? it seems this retarded government cant even manage the 130+ billion dollars it deals with now. if i lose my job because of a few completely out of the loop panel members, and a MENTALLY RETARDED premier, [Information Removed] since they have messed up mine and about 150 000 others...part of me wants this to happen, just to prove that the province will fall flat on its ass, and i dont think it will recover. the patch is already flat, so, tell whomever, go ahead and kill it, im just going to go over seas and work, and spend all my money besides my house taxes somewhere else, [Information Removed] i have heard people talking that ED had better watch what he says and choose his next words with caution., [Information Removed]
RRE2788 I like the report and think it's important to not let ourselves be bullied by the profit makers (.i.e EnCana) in this industry. I feel that if we stand our ground, then will will be able to get the proper respect we deserve. If EnCana or any other company does not like it, then I am sure another company would gladly step up to the plate to follow the plan. We have desired resources, let's not forget that!!
RRE2789 was deeply concerned after reading the report from the royalty review panel. What I found the most concerning was the fact that a rise in royalties of the proposed magnitude may scare of the large amounts of capital required to get many oilsands projects off the ground. There are a number of smaller companies currently pursuing smaller in-situ projects which will still require several hundred million dollars each of capital. These companies do not currently have production large enough to generate the kinds of revenues to support these projects so they are forced to raise capital in the equity markets. Take for instance [Information Removed]oil and gas who just this month commissioned their [Information Removed]project, this would not have been possible without raising several hundred million dollars of funds. Some of the more notable smaller Alberta Based companies which will require capital over the next few years for their projects include: [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed], [Information Removed]and several others. These projects are not the prime projects that we see from the likes of [Information Removed], [Information Removed]etc., they are less robust projects and the proposed royalties may cause some of them to not be funded. By making it more challenging for these projects to get the money required you are opening the door for larger, multi-nationals to develop the projects. This is a shame as many Albertans are working very hard on these projects and are also investors in these projects. I believe that the royalty review panel has carried out both a superficial and incomplete assessment of a change in royalties. It is my belief, that they have identified the maximum rent available to the province; they have however lacked the wisdom and sophistication of what they have framed. The oil industry is a margin business both because of the maturity of the basin in the conventional business, but also the very nature of the oil sand business. When a margin business losses a material share of net revenue, in this case in excess of 20% there is a material shift upwards in the required commodity price for many of the projects to proceed. We have seen this in gas drilling in 2007 with 40% fewer gas wells and a decline in production of close to 1 billion cubic feet per day. The impact of the recommendations would be expected to include: 1. A decline in activity until commodity prices rise to support project development. 2. A compounded effect of that decline as the required investment capital is reduced in availability, increased in cost if raised and therefore further increasing the required commodity prices to advance projects. 3. Service sector companies through reduced activity will see the erosion of the volume and value of work and employment will decrease. Alberta’s GDP may be much less than it might have been and government revenue may in fact shrink as they garner a thicker slice, but of a smaller pie. Other points would include: 1. The principle of ability to pay is distorted by the proposed (OSST) oilsands severance tax. This is a gross tax where at current prices it is not the ~ 5% impact on the net to a company but potentially a 10-12% impact from cash flow available to a company as there is no deductibility in tax or other cost factors. 2. The proposal shifts foreign exchange risk to companies. In other words government revenues would be insulated from changes in exchange rates this of course is at the expense of the company share. The severance tax in combination with the foreign exchange risk becomes regressive in lower commodity prices, this will make any slow down worse. 3. The bitumen price question has a potential to be a significant and serious wild card to the determent of companies and perhaps the province. There is clearly a transfer price question for integrated projects. This should be addressed; however a non-integrated project only receives what it can. If deemed prices calculated by a formula do not reflect market prices either the government or company will lose, clearly not an objective. This recommendation in particular is very problematic and not well understood, notwithstanding the recommendation made. The harsh criticism of the committee to others would be particularly well applied to this recommendation of their own. 4. Small companies will be under pressure. In a margin business scale is everything. [Information Removed]is both respected and despised for what it is in the retail margin business. In the oil business this will increase the pressure on being big to survive. The numerous small companies of the conventional, but more particularly the oil sands will be consolidated. The business will be more dominated by the multi-national and activity will be constrained.
RRE2790 I think we should get more money from oil revenues. The report states that the new proposed rate is still competitive Internationaly. Of course the oil companies are going to be against it because it will dip into the billions of dollars of profits they all ready make. We should be more concerned about the residents of Alberta than pandering to large corporations. They may threaten it will hurt growth but the truth is they have no choice but to invest in the oil sands because there is too much money to be made there even if it is less than they originaly hoped.
RRE2791 At first I was on the fence about the royalty review report, being a worker in Alberta's oil and gas industry I was not certain what this would mean to me as a resident. Monday's anouncement by the provincial auditor about the royalty coverup of the former Klein regime has upset me very much. I understand there has been a downturn in the gas industry and that is the primary defense of the oil companies in conjunction with rising costs. I would like to know if they would be willing to return some of the windfall they received thanks to Mr. Klein in order to avoid a steep hike at this time. I voted conservative at the last election even though I didn't agree with Mr. Kleins lack of campaigning and vote for me because I got rid of our debt attitude. For the most part I hold conservative values but I fear that based on Mr. Stelmachs decision concerning this review I can not vote conservative in Alberta if this isn't recified and by rectified I mean increase royalties and give our infrastruction time to catch up to the growth. Implement a royalty system that travels with the price of gas and oil (bituman). Quit wholesaling our energy future to the United States and perhaps encouraging the construction of refineries and upgrading in the province to create value and jobs as opposed to letting people in [Information Removed] gain from our loss as we did with the [Information Removed] pipeline. Man could I go on, just as one voter to another this more than any other topic that has come up in recent memory will cost this government votes.
RRE2792 it is a bad thing to do now
RRE2793 As a resident of alberta I know that royalties paid to the goverment from oil and gas production have helped in creating a strong economy, record economic growth and low unemployment. The continuation of this prosperity relies heavily on oil companies spending money to drill new wells. These operations literally create thousands of jobs for Albertans. If oil companies see that drilling wells is not profitable, then these jobs disappear. Ultimately the government will receive less royalities - the exact opposite of what they were trying to achieve. The government needs to find a balance. I'm sure oil companies can afford to pay high royalties than they are now, but I've heard that the royalty report used incorrect information and its propositions would prevent a lot of wells from ever being drilled. I urge the government to take some time and make sure they make a decision based on the correct information. Thanks, [Information Removed]
RRE2794 I think this report is based on flawed, out of date data and was conducted by a panel that doesn't understand the true costs to oil companies. I am really concerned about Alberta's economy if the PC government goes ahead and attempts to push these recommendations through. The big oil companies have already stated that they will simply move elsewhere - that means that the thousands of oil service companies will do the same. This will affect hundreds of thousands of people currently employed in our province in the oil & gas industry. Thousands of jobs will be lost. From there, every facet of our economy will suffer. The oil patch is already in a huge downturn. This is really inadvisable timing. What are you trying to do? Ruin Alberta? The PCs will certainly not get my vote if this goes through.
RRE2795 I believe it is time to raise the royalties. The oil companies and developers of our natural resources will be long gone once they are depleted. No use trying to get anything out of them then. Do it now, take our fair share. The natural resources belong to Albertans, not the developers. Thanks for this opertunity.
RRE2796 The royalty review report confirms what many Albertans alreay knew. Please implement all recommendations of the report.
RRE2797 I think if the Alberta government does go ahead with the royalty review reports recomendations the province of Alberta's economy is doomed. I do agreee we need to come to some sort of agreement that when times are good ie high gas prices, the provience should reap somemore benifits but when times are bad (like right now) we should be encouraging activity in province. This report 's facts are wrong it is out dated. It does not take into account how today's market we have higher risks and costs that are associated with drilling and completing a well in Alberta. Please take into consideration that there will be alot of lost jobs in Alberta and what that will do to famillies that work in the oilpatch. The province will also lose alot of money from taxes being paid from the workers and companies that are in the industry. The provience is debt free why do we need to recieve more money? In fact if this goes through we will see a huge down turn in Alberta's economy (I do not need a crystal ball to predict that future). We could possible send the provience back into debit. People will have to move out of the provience to find work or go on wellfare. Has everyone forgotten what happened in the 80's when Treaudo's gov implemented its policies. Please do not think of the oil companies public concerns as threats they are just trying to tell everyone that it will no longer be economical to spend their money here, if you went ahead with the royalty tax hike you give them no choice but to invest their money somewhere else. I love my provience and would hate to have to move because the Alberta government made a bad decision. I understand that if the Government does nothing inreagards with the royalty tax hike they will look like big oil pushed them around, but I think there must be a happy medium somewhere and that is what the Alberta government should be looking at doing because I do not think you want to be responsible for the suffering of thousand of families accross our great provience. Sincerly [Information Removed]
RRE2798 Dear Mr. Stelmach, I am a grade 9 student in St. Albert AB. The Royalty Review is important to me because it is my future and I believe that we deserve the extra 2 billion dollars. It would make homes for the homeless, people would have better healthcare and no one would be without a house. I really think we should get 33% of the money because we need and we deserve it!
RRE2799 This is a great report and an excellent example of how democracy is truly supposed to work. Kudos to the Stelmach government for making it happen. Now, of course the true leadership will be in full implementation of this report. Albertans will be closely watching, a majority of which support its full implementation. As publicly elected officials, your duty is first to the people of this province, who ultimately own the resources. The new royalty proposal offers a way for us to share this resource fairly (and still extremely profitably) with industry. Thank you. [Information Removed]
RRE2800 All power to you Mr. Ed, in my opinion it is only a matter of how much the royalty should go up. Alberta has a low royalty rate in comparison to other O & G regions in the world, considering size of reserves and a safe and stable political climate. This wealth belongs to all Albertans and not just a small sector employed in oil and gas related industry. And yes it will slow down this ‘overheated’ oil sand rush but that will be a good thing. The luck of planning and resulting damage inflicted by Ralfs administration on this province needs to be corrected and the royalty revision would be a small but good start. Regards, [Information Removed]
RRE2801 I don't mind the idea of a larger take from oil companies, but, just like tax increases, it must be done in small steps. If you just implement the pannels proposal in full I fear the share holders of these larger companies will pull their investments out of this country and province and seek better returns elsewhere. If this happens there will be a lot of job loss in Alberta. Long story short... Your net revenue for govenment will be less than it is right now. Be carefull. Step forward with small steps and consider todays market prices. Maybe better to take a bigger piece of the pie when prices of natural gas are higher.
RRE2802 say NO to gov royalties increase...let the oil companies invest in our future...thank you
RRE2803 Increasing royalties higher than they already are increases operational costs which reduces the amount of activity in Oil and Gas operations in Alberta. This industry currently employs thousands of people that would otherwise be on the poverty list - increasing operational costs means possible cuts in other areas and the first is always Human Resources - the result - Poverty, and what stems from Poverty - increased crime and social degradation. Please reconsider and review the royalty review already done.l
RRE2804 This review is flawed and there are a lot of factors at play which are not being considered. The PC Federal Government has killed the energy trusts which were a natural conduit for small oil companies to sell production to the trusts. Therefore killing the small companies and the dollar differential being paid in US dollars for oil and gas is also lost. Now the Alberta Government review panel is trying to put in place a tax grab that equals an National Energy Program for Alberta set up by Trudeau in the 80's which killed the energy industry then and will kill it now!! Our company has had wells cancelled by the oil companies when the well was already to go because there is a possibility that the well will be uneconomical because of what the review may cause. The oil companies would rather spend their money in other countries that are more accommodating to the oil and gas industry than do work in their own country. Do not kill the golden goose! [Information Removed]
RRE2805 I think that royaties should be tied to Alberta's inflation rate because the oil industry is driving that rate. that should be a fair starting point for all. And that should not clip Alberta's wings . Thks [Information Removed]
RRE2806 With record government surpluses, why do we need a Royalty review anyway. We do not not need to increase taxes,things are great just the way they are. I do not want to see a slow down in our economy, as it will take too long to return to our great economy like last time. The only people complaining are the lazy bums that don't want to work.
RRE2807 We elected a Conservative government so that we don't have [Expletive] like this. The ARRP recommendations are flawed as you know. We DO NOT want higher royalty rates or ridiculous new taxes like the OSST. Thank you.
RRE2808 I disagree with an increase to royalties. Its going to force drilling companies out of our province and seek exploration elsewhere. There will be mass layoffs, and increase to welfare participants. I think the gov't should leave well enuf alone. Its not like they havent been cashing in over the last few years anyways.
RRE2809 The royalty report is blatantly a flawed, this would take far too long to explain in terms but look at the report it shows that "slowing" investments in Alberta Oil Sands will be balancee by an upswing in conventional Oil and natural Gas activity. The panel claims 82% of gas wells will pay lower royalties under their approach, yet this is only true at low uneconomic pricces, and at prices expected over the next year ALL gas wells will pay higher royalties which will only make the current drilling down turn worse. The government is becoming greedier and greedier, and I could go on and on with examples of them stealing from the hands of hard working Canadians.
RRE2810 I am an Albertan who works as an employee in the oil and gas sector. I am seriously concerned about the impact of raising royalties as outlined in Royalty Review Report. Reading how oil companies may suspend or cancelled their drilling programs causes concern that there will be reduced work for many in the industry, creating potential layoffs which could eventually affect the local economy. I agree that additional dollars should be retained for Albertans and their future however without a balance it could lead to an oil industry recession. Is it fair to imply that the only time Alberta can get their fair share is at the wellhead? The money I earn is taxed at the energy company level, is taxed at my company, is taxed as income when I get it, and pays many taxes, levies and user fees when it leaves my hands. With the Province running a surplus why would you risk all these other revenue streams to get an additional cut of royalties? What would the value of the tax loss be if the oil companies quit spending their money on capital projects in Alberta? This number should be determined before proceeding. It goes without saying that a halt on capital project spending would have a massive effect on the people of Alberta. The generalization that these profits go to a few rich people to make them richer is misleading. I have personally invested in oil and gas company shares for my retirement. Higher taxes and royalties mean not only do I earn less, but the money that I have invested for my retirement substantially decreases. Please consider that the companies that are successful in the patch are able to employ many Albertans, and those people pay taxes and contribute to the local economy.
RRE2811 It is important to remember not to repeat mistakes, as a government it is your responsibility to learn from failed initiatives such as the NEP. Companies will not be able to continue production under these incredibly high rates, and it will force Alberta (and moreover Calgary) into a recession. This will undoubtably be one of the worst mistakes made by our government for the past 20 years, and it is on the first eve of a new Premier. I would expect Ed Stelmach to step down shortly after the ripples that will be heard across Canada. Many people will leave the province after this, and I would only expect someone who doesn't see the interconnectedness of our economy to the Oil and Gas sector. If you place incredibly high royalties on them, it will in turn crush all other sectors, such as manufacturing who provide for the very companies that are penalized. The amounts can be construed to give well over 50% of the royalties. This is unheard of in any country, and is a ridiculous proposal from a new leader.
RRE2812 I have worked in the oil patch for 35 years and it has been very good to me and my family. Except for the National energy program in the 1980s. It was devistating to me and every one eles in the drilling industry. i am in the position know that I could live through another 5 year slow period but most Albertans under the age of 30 will most likely be on EI that will not pay a morgage make vehicle payments or feed their families.The tax dolars lost when 12000 rig hands are unemployed and all the other spin jobs would be more than we will gain by increasing the Royalties.
RRE2813 Almost all the oil companies are owned and controlled by foreign interested. To believe that all the profits are re-invested back in Alberta economy is naive. Instead, the actual headquarters in these foreign countries will receive their share of the profits. If Albertans truly own the resources, perhaps the extra $2 billion could be used to eliminate health care premiums or diversify the economy for when the resources have dried up. One could argue that the current boom is inflationary which is actually eroding the standard of living here in Alberta which is another reason for increasing royalty rates. One has to ask themselves, shouldn't Alberta residents enjoy the same standard of living as oil-rich countries like Qatar and the United Arab emirates? In a way, we are the shareholders that government works on behalf of.......
RRE2814 Why can't we develop our own resources and keep all of the profit? This is our future. Let them cry.
RRE2815 I think that it is time to review the royalties in this province but it needs to be done with the input of all concerned parties. There needs to be a lot more discussion, if implemented in full it will cripple the ecomomy of Alberta when the investment dollars are spent in other juristictions.
RRE2816 Are you kidding? How many times are you going to ask for feedback? If you have heard a single word, you have heard the entire chorus: yank royalty rates upwards drastically, use them to improve the standard of living within Alberta, and set a complete moratorium on oilsands development until the economic benefits of our resources have been integrated into our economy! Right now, we are no more than a colony of the oilsands companies - our territory is plundered, a few plutocrats get pennies on the dollar, and the resource is shipped away. Take a stand and prove that you have both the right and moral authority to govern this province. Do what your electorate has been screaming for you (and your predecessor) to do for years: make this province a better place to live. This "$26 billion" worth of future investment lost doesn't worry me at all - it will come, and the development will be far more sustainable than a gold rush which leaves our province in this condition. Think about the longer term, think about your voters, and think about the standard of living that this province could have if its people received even the barest compensation for this economic roller coaster. [Information Removed] Beaumont, AB
RRE2817 As an average working Albertan, with a family to raise, increased school and transportation costs to pay, health care that does not cover what used to be covered, I am hopeful that the premier will make to right decision about the Royalty fund. Considering the needs of ALL Albertans, not just the oil company executives and share holders who are already rich beyond what the average person can imagine. Please remember 'David and Goliath" , and don't be pressured or threatened into submission by the 'giants'. It's time for the Alberta Government to give a strong message that they will not be threatened by 'big oil'. Please give careful consideration to creative ways that a middle ground can be found. Average families have experienced raising cost to food, heating, housing etc. therefore oil companies should also experience a raise in cost to do business, instead of only a raise in salary and annual bonus cheques. still hopful, [Information Removed]
RRE2818 There is no reason on earth why Alberta should be collecting the lowest royalties for gas & oil in the world. You cannot even get the accounting right on the pitiful royalties you assess - are you running a 'Food for Oil' type scam here? Are you stupid, incompetent, corrupt or all of the above? Big Oil is whining and making threats - turning up the heat... let them go; they'll be back - Newfoundland and Venezuela prove that fact. China would be happy to invest here if the Americans cut and run (as if). We are the owners of the God cursed oil -- get a spine and start looking after the interest of Albertans. Put our interests ahead of Big Oil's for the first time ever!
RRE2819 First I wanted to start off by saying, thank you! I believe that it is the government’s fiduciary duty to conduct analysis on what is “fair” in terms of royalties that oil and gas companies pay. The modus operandi of the Royalty Report was true to heart; looking after the best interests of all Albertans. However, such analysis must be conducted in a manner that is accurate and valid. To this extent I think the panel’s report is severely flawed. The individuals involved might have had adequate qualifications on conducting the research, or had years of experience on analyzing and assessing royalty rates. However, the greater extent of Alberta’s economy and thus the wellbeing and welfare of its current and future citizens must also be considered. The panel had zero qualifications and or expertise in this area. For example, the tax system in Canada is based on a progressive system. It is inherently flawed, but is the lesser of all evils. To say that one person makes $100,000/year should be taxed the same absolute dollar amount as another person making $1,000,000/year is unfair and unjust. That is why we have a progressive system! But that is exactly what the panel has recommended to do in terms of royalty rates, comparing Alberta’s royalties to other jurisdictions. What does it matter if say Algeria’s royalty rates are lower, higher or the same as Alberta’s. My argument here is that it does not matter. One should look at the rates of return on investment, and build in a risk factor. Secondly, Newton’s Third Law of Motion states that for every action there is an equal and opposite reaction. The panel’s action was to increase royalty rates, resulting in increased revenues for Alberta. However, it failed to consider the rates of return for oil and gas companies. In doing so it failed to consider that some of the capital earmarked for investment might be better invested outside of Alberta if royalty rates were increased. Nor did they consider the impact of jobs and services resulting from lack of investment in the industry. Nor did they even think about the reduced taxes resulting from, higher unemployment, lower wages, lower corporate profits, lower oil and gas production and cancelled projects. Finally, a province that has eliminated its debt and is currently running record surpluses, what does another $2 billion mean? I mean what are they going to do with that money? Last time the government had the brilliant idea of distributing a one time dividend (Ralph Bucks) to each Albertan. The way I see it, there is way too much risk and potential downside to increasing royalties. Where is the upside to all of this? Oh, I see it now…an extra $2 billion to a government that already has too much money than they know what to do with. On second thought I know exactly what we can do with the $2 billion dollars. We can implement a new gun registry in Alberta. Canada tried that a few years ago, and its total cost was about that!!! I will be waiting for my registration form in the mail. Sincerely, [Information Removed],
RRE2820 Dear Premier, I hope you will approve the full recommendations of the Royalty Review and ensure that Albertans receive some of the direct benefits of this non renewable resource. In addition to the royalty rates, the report made some important observations about the ineffectiveness of the civil service and the conflict of interest within the Energy Department. The same problem occurs in ministries that regulate renewable resources and the down sizing and perpetual reorganizing of the Kline era has left chaos and inefficiency in the protection and management of renewable resources. The EUB does not protect environmental values but the board makes decisions that have serious cumulated impacts. A Conservation Fund, as recommended by the panel would provide funds to manage and protect water and other resources that are more valuable than oil. Please show leadership that represents the interests of all Albertans and future generations. [Information Removed]
RRE2821 October 12, 2007 Alberta Government Subject: My Opinions related to “Our Fair Share” I read the report “Our Fair Share” and on the same time I have read different opinions on internet or on newspapers. After doing this I feel that is my obligation to express my opinion before Albertans I voted, believing that my consideration will be considered. My opinion is that the government of Alberta, the elected people by Albertans has the right and duty to think for different improvement on political and economical life of this country, which will benefit to all people. I believe that Alberta government has shown before Albertans a continuous stability in political life which is related with a everyday improvement on economic development. The government has a duty before Albertans to guaranty their freedom, their weights, for the present and for the future. Albertans, if will be seen on complex are people who are working on government, employer or workers on different sectors of economy, are investors, seniors on retirement, are children-the new generation who are taking education on different levels, and are unemployed people that unfortunately exist on this country. Every right that these people have on this moment, granted by the democratic government, must be protected, as it have been protected until now. The future will be the same or better, stable and must guaranty the prosperity of Albertans. My opinion is that the government, continuously have the right to make chances on different directions, on royalty system, on taxes, and this must be done after in-depth studies, which not are simple copies of other government in the world, but are a synthesis of Albertans life and Albertans government. The in-depth studies must guaranty a better future for the Albertans, and must respect every right issued on different time. Based on this I strongly believe that Alberta government will respect and recognize the “Grandfathering” to ensure that the economical policy in Alberta is stable, in interest of all Albertans, and so it will be and on the future. Regarding increasing the royalty in Oil and Gas industry? The government has the right to review the actual royalty system, increase decrease and make different incentive programs for different sectors of the economy, if the changes will lead on the interest of Albertans. But, based on Panel recommendations, my opinion is that if the Government will accept and apply this study, then the results will be painful for all Albertans, the Government will have more percent on royalty but less royalty in dollar, the Albertans will have less jobs, more unemployment, less investors. The Panel has recognized the economic and fiscal impact of their recommendations on page 102, but the impact can have greater dimensions, not only on oil sands, but everywhere on Alberta’s Economy. If the panel’s study will be accepted the Albertans will loose jobs, including me. Oil and gas production will decrease, and other prices will be increased including the pump prices. If this will happen, the government will loose a part of royalties (not All), and the new generation, seniors all Albertans will loose the quality of healthcare and the education. On other side the investors will loose the opportunity in Alberta, but they will find other frontiers to invest. Albertans take their share from oil and gas industry; they take their salary and benefits. The Panel with their study is looking to increase some % on royalty increase and loose Billions of dollars. They in person are not in danger even if this will happen. Only I and thousands other like me will be in dangerous position to loose 100 % of the salary and other benefits. Alberta government on 2005 decided to distribute 400 $ per person from the budget. Probably these benefits have been at least 40 % contribution from oil and gas industry. This moment is a small sign that Albertans take their share from oil and gas and anywhere they are working and contributing. I understand that the government for higher rate of development needs more and more money. My believe is that the best way on doing this is to increase the GDP of Alberta and not the % on royalty, cooping come other countries. Regarding the Chairmen’s Afterward on Panel’s study I will join his ideas for tax change-CLCT on oil and gas industry, on forestry on mining but not on agriculture. For the agriculture, my opinion is to give them credit instead of more taxes. I will disagree only with calculations (the result for this tax are $ 79 million year). Only based on oil and gas production on Jul 2007 (3616341 BOE/D), if this production will be stable, Alberta will have $ 132 million per year (here are not included oil sands). I will join the Chairman ides that this money being spent on research and innovation, but I will add here that that the government, the elected people, will have better ideas because they have the whole picture of the country. I do not accept the idea of Panel regarding a “Super Ministry” for Oil and gas industry. The ministry must have the right people and the right number to complete their job in time, but it is not the time to make money with increasing the royalty and spend the budget with super ministry. I will be pleased to meet with Panel group and discuss in person, in more details, regarding the royalty or other issues treated on their study. I am open for this anytime after work. I am open and for any phone call or email regarding the Panel’s study. Truthfully, [Information Removed]
RRE2822 I have read the Royalty review report. I believe the Alberta government should implement its recommendations in full. Thank You [Information Removed]
RRE2823 Please note the following: 1) I have worked in the environmental and energy related fields for approx. 30 years, including N.B., Nfld, Que, B.C. and most recently Alberta. 2) The royalty review commission has produced a "Balanced" assessment with Fair and well-balanced recommendations. 3) Albertans own the resource and the gov't works for Albertans. 4) It is your mandate and responsibility to make the best deal possible for the Majority of Albertans (excluding a handful of oil & gas powerbrokers) and not the Minority of senior managers and executives responsible for O & G development. 5) Do not be intimidated by their rhetoric becasue that is all it is. It maybe true that they (e.g., EnCana) will slash $1 bill in investments next year (maybe 1/3 of their projected investments) but this leads to two questions: 1) Is that so bad? the rate of inflation is 3 x that of the national average and no one, in almost all sectors, can keep up with costs or accomplish the work they need to due to labour shortages (skilled, unskilled & professional) and high costs. It will give everyone a chance to breath, help stabilize the "boom" component of the cycle and allow the citizens of alberta to live a little. 2) Does this mean they will not ever invest that $1 bill or does it mean they will not invest it next year and instead will invest it over a longer period of time. This sounds like a win win situation providing some stability to the economy, will reduce workplace accidents, maybe we will see a higher portion of high school kids graduate instead of dropping out to work in the oil patch, insurance rates may be level out or at least insurers may reduce the pressure to increase rates and a number of unprofessional and incompetent service providers presently riding on the boom bandwagon will find themselves looking for other work because firms will have the opportunity to be more selective on who they hire. I could go on but I think you get the message. 6) Finally, Alberta has one of the largest oil reserves in the world in a country that is politically and economically stable -- where else do you think they will go? where else could they possibly go? Russia is pushing up SPOT prices in Europe and will have an increasing influence on what Europe does. We (Alberta) have/has the opportunity to influence the foreign policy of other countries as well as that of Canada's and instead what do we do, bend over and say how far. A strong leader will take a clear and strong position for the majority of Albertans. A weak leader will cave in to the Oil & Gas lobby. An uncertain, insecure leader will come up the middle and waffle and try to be all things to all people. Premier Stelmach, which one are you? [Information Removed]
RRE2824 With the Royalty Review Report completed I suggest the Alberta government call the premium to present royalties be called The Royalty Infrastructure Equalization. Tie the increase to the requirement of the local, provincial requirements for infrastructure. Our resources, be they the people, products, renewable or nonrenewable, past or present have a transparent provincial department that dispenses the monies to the affected areas; Roads, Health, Pensions, Heritage Fund, Rural or Urban. Sincerely, Robert G. Culham A Constituent, Calgary, Alberta. ============================================================
RRE2825 I am born in . Alberta, seen how the oil and gas sector has been instrumental in the prosperity of Albertans and Canadians. I have seen the booms and busts from the 70's until now. Many of the downturns in the industry have been the result of government policy NEP, Trust rulings of Oct.06, and potentially the Alberta Royality Review. With depleting production for this industry from all players, any negitive impact from this review will send an already slowing industry to 1981-1982 levels,go back to those yrs and look at the foreclosures and bankrupties in that era. There is no doubt we need to tweek some of the rules but a whole sale changes with out proper consultation of the oil and gas is irrisponsible ,poor business, and political suicide. You could expect this from the Federal Liberals, but I never would expect from the party I have supported since the 70's when I was able to vote.
RRE2826 I am a reservoir engineer with over 25 years experience working in the oil and gas service business. I have no problem with full implementation of the recomended roylaty review. The current oil and gas industry in the past 5 years has been hell bent on 100% pure exploitatin of alberta's resources for the benerit of their share holders. The alberta advantage is limited to only a few people who's bonuses and share options reflect their own personal agenda. I can only hope that this current government has more leadership foresight then the past "reactionary" government. [Information Removed]
RRE2827 Although Alberta's economy is diversifying beyond oil and gas revenues, I urge you to seriously investigate the impact of changes to our royalty program. The immediate financial return is only part of the equation. Consideration must also be given to an economic slowdown resulting from decreased oil and gas activities. I trust you and your colleagues will consider these issues as you determine the most suitable decision for the long term benefit of Albertans.
RRE2828 If implemented the Province will receive less revenue from industry. Land bonus payments will drop immediately, activity levels will plummet and the Province will lose the active exploration sector which took so long to build. Smaller active Canadian companies will suffer most. The big guys have the staying power and have activities in other parts of the world on which to concentrate. These large companies will simply shift their budget away from Alberta to other provinces or countries. The most damaging portion of the report is the suggested change to higher deliverability gas and oil wells. The drilling of these wells is what motivates a large portion of the industry and leads to the significant discoveries required to keep adding reserves, long term activity and substantial revenues in the form of land sale bonuses and royalties to the province. Although I believe some changes to the royalty system in Alberta are warranted , these should be concentrated in the oil sand sector - particularly the 1% prepayout rate. Any changes that are made should be phased in to allow industry time to adjust and to avoid a possible overreaction which would be to everyone's detriment. A spirit of fairness should require that existing agreements with the province be grandfathered.
RRE2829 I just wanted to send a short note expressing deep concern about the proposed Royalty changes. I work for a junior gas company which explores primarily in the Alberta Deep Basin. We have been modeling the proposed changes into our program and have serious concerns about the economics of drilling these deeper (2800m) higher rate gas wells under the proposed regeme.
RRE2830 Show some backbone! Show some vision! Show some decisiveness! Don't be cowed!!! It's the people's resource. We have one of the lowest royalty regimes in the world. These companies are not pulling out. Where would they go where there is a lower royalty regime? And if they did, there will be others taking their place. Just get on with it will. This Mr. Dithers II routine is very annoying.
RRE2831 What the ?#!!@ are you doing? As someone who has been gainfully employed in the oilpatch for over a decade, have provided a way of life for my family that is above average. I disagree with what you are doing. Sure, the oil companies make a lot of money, but they also invest a lot of money. By getting rid of oil companies in Alberta, I hope you can keep my way of life and the lives of all the thousands of oilpatch workers in Alberta intact. Or, do we all move and take our highly taxable income and our disposable income to another province? Or country? If need be? Instead of trying to fleece more money (sorry) royalties fom the oil companies so many of us have come to rely on for a paycheck, ($400 every blue moon won't do it) maybe you can cut back on some of your government perks and learn to really budget OUR money. I love my job and on the whole I love Alberta. Always indebted to the government, Your humble servant, [Information Removed]
RRE2832 Premier Stelmach: I work for an oil and gas company and I am concerned that my job and the job of many thousands of others may be at risk if the royalty review report is implemented as drafted. I have been through a number of resource industry downturns and it is not a pleasant time. I have no problem with the oil and gas industry sharing the wealth of our natural resources with the people of Alberta, after all I am one of those people. However, it must be done on a basis such that the government and industry share the risk and the rewards. The price of our products is determined by market forces and always go through up and down cycles. This is risk and if the capital allocation decision makers determine that the return is too low or uncertain for Alberta oil and gas projects, then the capital will be diverted elsewhere. The result will be many, formerly well paid, Albertans will not be paying taxes, but will be looking to receive government resources in the form of unemployment assistance. No one wants that. An increase in the royalty take by the Alberta government is expected and provided that it is done reasonably and fairly, will be accepted by the industry and world capital investors. The system must be flexible enough to deal with fluctuating values for the oil and gas products and still provide enough assurance to industry investors that a reasonable return on investment can still be had in this province. I don't believe the panel's royalty report achieves that flexibilty and assurance. It would ensure that the government is paid first and at too high a rate such that little or no return is available to the oil and gas investors much too late in each projects production cycle such that the decision to take on the project is difficult or impossible. Hence, the jobs shrink and vanish. I believe the panel's makeup, data and approach was flawed. Venezuela, Nigeria and Russia are not jurisdictions that I believe we should be looking to emulate in most , if not all, of what they do. The approach for Alberta should be based on facts, risks and rewards to be found in Alberta and Canda and not in socialist regimes of other countries. So please Mr. Stelmach, be prudent and cautious in your decision making about the royalty report so that all of us can continue to share in the wonderful bounty that this province provides. Regards, [Information Removed]
RRE2833 As an owner of an Alberta company that distributes piping products to the oil and gas industry and employs 60 people - I would like to caution the government on implementing the reccomendations of the review in their entirety or at all for that matter. Our business has slowed down significantly over the as 12 months and if it continues - we will be laying off staff very soon. The oil & gas companies have obviously already reacted to the cost increases they have experienced over the last few years and if the Alberta Government takes another bite out of their bottom line - I think we could be in for a very bumpy ride for several years in Alberta. Please - Not another NEP - Peoples GREED will do us all in if we are not careful!! [Information Removed]
RRE2834 I am totally IN FAVOUR OF AN INCREASEin the royalty rate for our oil. We are already paying a heavy ecological price already for the extraction of oil. As a native-born Albertan I do not see any benefits in rushing to get the resource out, and would in fact like to see a slowing of the development.
RRE2835 Please implement the Royalty Review recommendations now. And even better - implement the taxes retroactively. Remember that Albertans own the oil and not the other way round!
RRE2836 Please do not make a rash decision on Royalty Review Report. This could have a damaging effect on the service industry in towns around Calgary & Edmonton. In fact with the recent downturn in the industry there has already been layoffs.
RRE2837 I have read and digested the royalty review recomendations and am in the opinion that everything looks resonable except for the gas royalty rate increase. I believe a slow down in development and exploration may bring us back to what it means to be Canadian. However, with my heating bills looking more managable and seeing that the royalty rate could jump from a high of 30% to a high of 50% has me concerned that my gas bill will also see a drastic increase to reflect the higher take from the people of Alberta. I also worry about young families with new homes and expensive morgages. If the government has misscalculated the impact of higher royalties (Gas looks very high) for the short term (2-3 years) we (Albertans) could be in for uncertain economic future. I trully believe the oil sand projects need this increase in royalties to bring balance, however, I do beleive Bill Hunter may have miscalculated the overall impact of higher gas roylaties. I am also interested in hearing the governments plan on spending/saving this extra monies that may or may not be generated with this form of corporate taxation. I hope it will go into our schools and medical fields. There are so many things that need attention. I dream of an Alberta that has strong government with a strong commitment to more social living. I would also like to ask a question. Bill Hunter said that over 90% of all gas and oil well in Alberta wouyld be receiving less royalties. If this is a true statment and not a form of propaganda to pass this new royalty structure. Then does Alberta have world quality resources that can be taxed at these increased rates? I believe the oil sands do but I am concerned about natural gas and conventional oil. i.e. 90% of all wells in Alberta can't handle more tax; this should be a concern for our current government. If this is true, having more tax on development of conventional oil and gas may not entice economic investment until prices move up drasticly. Which ultimatly means the consumer will pay more. Thank you [Information Removed]
RRE2838 How could you even consider such a suicidal move? You're driving away future investors just by suggesting such greediness. Canada has a great bargaining tool in its undeveloped oilsands projects. No foreign company is going to want to add to the already exorbitant costs of extrication by adding more pennies to you as well. Not to mention the fact that it is borderline corrupt.
RRE2839 After meeting with our bosses over the Royality Review, I believe that if the government goes ahead with this it will ultimately be the end of Alberta's prosperity. The oil companies are preparing to leave or shutdown their operations if this proposal goes through. I would like to see the government leave well enough alone and let Albertans enjoy our prosperity. There already has been a slow down in the industry and with the government threatening to raise Royalty Payments, Alberta I believe will go into a Recession. Please do not go through with this, I love my job and the fact that there are lots of jobs for all. Why does Alberta need more Royalty Money?
RRE2840 In the three weeks since the release of the Royalty Review Report, I have gained some perspective on the report findings and subsequent reaction and have the following comments: 1) the report findings are well balanced and appear to address revenue sources from depleting oil and gas resources and new oilsands reserves 2) oil company reaction to the report is very self-serving and belies any notion of committment to Albertans or the economy as a whole; profits are the only thing that matters to them 3) If there was ever a time in Alberta's history when an increment in oil royalties could be justified and applied with minimal impact, that time is now. I would expect that a government of integrity and courage will not be afraid to fully implement the recommendations of their own blue-ribbon panel. [Information Removed]
RRE2841 I hope the gov't. looks seriously at this before making a grave mistake. I am amazed at how a supposedly intelligent panel could come up with such a shallow Report. There use of outdated data is astounding. An outsider like me new at first word of it that they were lost. The industry had already agreed to more royalties before this Review, go back to talk to people that know what they are taliking about and settle this amicably. Good times have made the people of Alberte greedy and we risk killing the Golden Goose to extract the last golden egg when if we let the goose live, she will lay many more golden eggs. Please give this some sound thought that the panel obviously did not!
RRE2842 The oil companies need our oil far more than we need their money at this time. This oil will just sit in the ground until they decide to step up to the table. The provincial government has not been on top of this, the whole issue of giving our resources away is irresponsible now and has been for years. Many of the wells are not even monitered.
RRE2843 It's been too long since we've demanded more from the corporations who have been involved in extracting and processing our natural resources. States such as Texas receive a higher royalty rate and their economy has not hampered for it. The money generated could be better used in our coffers so that we can invest wisely rather than us becoming a Detroit or a Newfoundland where once the resource is gone, we cannot sustain or change smoothly into a new sector.
RRE2844 The panel's recommendation to increase the base royalty rate from the existing 25 percent to 33 percent is a step in the right direction, but still grossly inadequate. Following these recommendations won't damage economic growth or investment in Alberta. Stelmach has the opportunity to become a premier known to be both market savvy and citizen-friendly. Standing up for AB with help the Conservatives to regain the faith of citizens who have been hurt by the boom.
RRE2845 The royalties should be increased. YES...absolutely... Selling oil and gas is like selling the bricks off your house. Phase the increase over 10 years (3% per year compounded = 33%)
RRE2846 I am most definitely against adopting the recommendations contained in the report. The report takes far too simplistic and narrow a view of the situation. Merely because other jurisdictions charge more is not justification to increase the royalties in Alberta. The oil and gas basin in Alberta is mature and new production is very hard to find. We must continue to provide adequate incentives to the industry to continue exploration and development. There is a delicate balance in this situation. At present the royalty regime in Alberta is fair to the industry and to Albertans. I would support Mr. Stelmach announcing immediately that his government would continue to review the situation but at present and in the near future the government of Alberta will not be adopting the report. Thank you
RRE2847 Please stick with the recommendations to increase royalty rates. Do not be influenced by the fear mongoring that the oil companies and their employees have used. Other companies will be more than happy to move in to devevelop this non-renewable resource.
RRE2848 I very much want to government to follow through on the total increase in royalties!!!! If some of the producers leave and we lose some jobs - so be it. It would be good for Alberta to cool off our hot economy a little. The oil companies will come back. Don't give in to the blackmail of the oil companies, Premier Stelmach, and don't wait to make your decision according to how the political winds blow. Listen to the Royalty Review and the Provincial Auditor. Let's see some leadership!
RRE2849 I think these changes should be implemented very carefully and after an in-depth consultation process similar to that followed to create the generic fiscal terms for the oilsands. Following though on these types of changes without this sort of intensive consideration will not allow Government and Industry to fully understand the impacts of proposed changes and could result in investment in Alberta stalling which, I believe, is the real driver of our prosperity.
RRE2850 UNLESS YOU INCREASE ROYALTY RATES AS RECOMMENDED AND SLOW DOWN THE PACE OF OIL SANDS DEVELOPMENT, I WILL NOT VOTE FOR YOU IN THE NEXT ELECTION. I belive that our current situation is on the verge of being catastrophic. Costs are out of control, the labour market is grossly out of balance, and the longer-term social and environmental consequences will be severe. Oilsands developers have a deal that is far too sweet; I doubt that we (as citizens and taxpayers) will ever see the revenues indended; and the royalties are far too low given the current price of oil. Alberta is one of the safest and most stable places in the world to develop and undertake exploration for oil. We shouldn't have to give it away. WAKE UP, ED, OR ELSE!
RRE2851 To Alberta Government; Does the government officials actually realize how many spinoffs just from the Oil & Gas Sector alone actually are? I am directly involved in the sector and with a drilling rig fleet of about 860 in western canada and with activity levels already diminishing for the 2 winters it is a very scary thing as it is. I must say that this government has perfect timing especially when the price of natural gas has been down in price. That really makes sense to me, obviously these high paid officials don't look at the statistics that everyday oilpatch workers and businesses look at for future rig counts and a already short winter drilling season as it is. I think they missed the boat by about 3years ago when the price of natural gas was up to about & above 13.00 per gigajoule. When people all over this Province were working through spring and summer and not just limited to the winter. I myself feel like Mr. Stelmach should take that chip of his shoulder and he says he would'nt be bullied by the Corporate Oil & Gas Giants but those "giants" are putting food on the table for 1000's of Albertans whether they be in the major cities or where Mr.Stelmach is from rural northern Alberta. Just a little insight on how many people and families reap from just one (1) drilling rig working. In case they (Alberta Government) does not know--- 3 Crews 18 men/crew, Co. Rep, Rig Manager, Geologist, Water Hauler, Vacuum Truck Hauler, Safety attendant, 3 camp staff. Just for one rig this does not even include Oil and Gas Service Companies down the line you could estimate that one drilling rig working feeds about 50 families whether directly involved or indirectly. Last that I checked on the CAODC website their were less that 260 rigs working in all of the three (3) Western Provinces which means already that there are hungry people out their that have been hungry for sometime and alot of them that is the only knowledge that they know. So for 10-20 year veteran that is all they know and with the added influx of people from other provinces other jobs are becoming scarace. So the timing of the Royalty Increase could'nt have a come at a better time when the Oilfield in terms of drilling has already been slowing down for the past couple of years and with Oil companies already slashing there future expenditure. You can bet that the Unemployment lines will be stretch through the doors at the unemployment offices and the extra cash that the government may recieve from a royalty increase will be going to fund the unemployment people of Alberta instead of going into Road development,Schools, Hospitals etc. Like I had said the Alberta Government couldn't have picked on a better time to scrape up some extra $$$$$. Sometimes I really wander where yours heads are.
RRE2852 I first saw the report on the news on the evening that the Report was released. I was confused. I now just did more research and I'm not the one who is confused - I think Stelmach and the Royalty Review Panel are extremely confused. The numbers don't add up - at all. One out of six Albertans work in the oil and gas industry. So as an Albertan, who works in this industry, I have a shared interest in this Report. I think the Royalty Review Panel needs to take some math classes. I'm not an expert and even I can see that they [Expletive] up...royally. No pun intended. Bye bye Stelmach. Hello to anyone who knows how to do simple math and make it right....almost makes me want to get into politics. I'm a farm girl with common sense - apparently Stelmach squeaked in as Premier lacking common sense.
RRE2853 I have read the review committee's report and I strongly support their recommendations. Please adopt this report in full. [Information Removed] Edson, Alberta
RRE2854 To not go ahead in full with the royalty review would be appaling. I hope that too many people have not been fooled by all the propaganda that the oil companies have put out. If people that cared about the province and environment had as much money as the oil companies, we could have countered with the truth, but alas, nobody has more money than big oil. So please, do the right thing and increase the royalties as prescribed by the royalty review board. But lets no [expletive] this money away like so much has been in the past. I should note that I work in the oil and gas industry, and still think that this is something that needs to be done, for the people of Alberta. Do not mess this up, because I, as many other people will remember this when it comes election time.
RRE2855 Please do not increase the royalty for Alberta because we currenlty are doing very very & do not want to slow up oil production and have oil companys move to other provinces.
RRE2856 Stealing from the industrious and giving to the indolent is extremely counterproductive.
RRE2857 My concern is that the percentages put forward by government may be too high and affect the oil gas industry expansion and developement plans. Talks with the oil and gas industry is very important at this time. I hope that the government be very sure about what it decides in this matter. [Information Removed]
RRE2858 Implementing the recommendations will cause the producers to re-evaluate future investment in Alberta. Is the Governrment of Alberta going to put billion into research to improve the recovery from existing mature fields? I think not! Significantly more resources will be left in the ground! Once the low cost production is recovered, exit will occur instead of maximizing recovery. This will leave significant resources behind that would otherwise produce a royalty share. In addition, there is high probability that many infill and extension wells will no longer be drilled. In the end, there is significant risk that royalty share will shrink dramatically from conventional reserves. The people of Alberta, and Canada, have been well served by the current royalty structure over conventional production. Changing this structure will have detrimenatal effects!
RRE2859 Has the Government actually taken the time to understand the impacts should this be implemented. It really begs the question, what will the current Government do with these additional funds? They have done little to improve Healthcare, Education and infrastructure. I pulled some interesting stats regarding where Alberta stands today, Unemployment is at the lowest level of any jurisdiction in North America. The Province is debt free and generating annual surpluses that are the envy of virtually all other jurisdictions in Canada and beyond. Individuals enjoy the lowest tax rates in Canada, and Alberta does not have a sales tax which is clearly an advantage. More importantly, Oil & Gas companies are investing billions of dollars in our economy to keep it strong for the future. If the Government thinks they can take credit for the above stats their mistaken, it's the Oil and Gas industry that's made Alberta the place to be. Remember, people don't flock to Alberta because of the Healthcare system, or send their kids to school in Alberta because of the superior education system, they come here to be part of the Oil and Gas business that's provided us all with a high quality of life. Don't be short sighted and please don't mess this up!!!
RRE2860 I am writing to ask you to reject the “Report of the Alberta Royalty Review Panel”. There is a simple rationale for such a stance, as follows: the narrow remit of the Panel is fatally flawed. Energy development, regulatory and environmental policy are, in the modern world, integrated to such an extent that omission of one or more, make any narrow recommendation not only irrelevant, but potentially threatening with respect to the remainder. And, as is clear from the opening words of the Report, this is exactly the danger we face: “Many voiced concern for the environment and pressures on infrastructure. Those concerns are outside the terms of reference for the Panel and its ability to make recommendations.” (“Executive Summary” p9). Acceptance of recommendations in the report threatens development and environment, and ultimately Alberta and Canadians as a whole. Energy development, regulatory and environmental policies are in need of overhaul, that much is clear. I therefore believe that any change in royalty regime be part of a comprehensive energy review. I also believe I am well qualified to comment. [Information Removed], a Petroleum Engineer and resident of Calgary, I have also worked internationally [Information Removed]. So, permit me to illustrate my concerns with examples from my personal experience. And let me also invoke (in bold italics) the words of a famous Scot, Adam Smith, a proponent of ideas that speak clearly across the centuries to our current concerns. Energy Development. The panel appears to argue that recommendations moving Alberta’s royalty rates closer to “the middle of the pack” is of itself proof of “fair share”. But this is undone by their clear recognition that in production “total costs….time (frame)….and life…are all factors…” that lead to (royalty) variation (“Oil Sands”, p90). From my own experience, Norway and the UK (both mentioned by the Panel) are producing light conventional oil and natural gas from reservoirs that have a productivity several magnitudes higher than typical Albertan fields. Although offshore, they have well developed infrastructures, close to consuming markets. In contrast, much of the new growth in Alberta will come from unconventional oil and gas, characterized by low productivity, significant development costs and relatively distant markets. By those definitions, Alberta is at the low end of the pack, and royalties should reflect that. A tax which tended to drive away stock from any particular country would so far tend to dry up every source of revenue both to the sovereign and to the society. Not only the profits of stock, but the rent of land and the wages of labour would necessarily be more or less diminished by its removal. In the case of Norway, a significant share of oil revenue, including royalties, is transferred direct to a sovereign trust fund equivalent to Alberta’s Heritage Trust. In contrast, current Alberta government attitudes are likely to see any increased royalties go directly to spending. This kind of tax and spend approach is unacceptable in a government that has failed to increase productivity and efficiency in many other areas under its direct responsibility, including those affecting the oil and gas industry. And so it seeks a “cash cow” to make up for failure in fiscal responsibility and good governance, and does so through a Panel pursuing a populist line of inquiry. Given the non-renewable nature of the resource this is more than a political issue – it’s a moral one. Capitals are increased by parsimony, and diminished by prodigality and misconduct. No more common than that of a scarcity of money. Regulation – Environment and Utilities. The regulatory framework in Alberta is clearly malfunctioning, witness recent events at the EUB. It is time for a complete overhaul of public policy in this area, which should review both environmental and utility regulation, consider an abandonment of prescriptive policy for a more flexible case based approach and an environmental mandate focusing on unconventional resources in a CO2 constrained world. Given the importance of the issues, this should be a non-partisan review, open to all. Government policy in Alberta energy supply is failing to meet the issue of greenhouse gas emissions. As an example, we have the majority of Albertan electricity supply coming from coal - a far more environmentally damaging fuel than natural gas. Yet, royalty panel proposals will cause significant gas resources to become uneconomic, when they should be replacing coal fired power. As an example, the UK has met its Kyoto targets in large part from the abandonment of coal for power generation and its substitution by previously uneconomic gas supply. This resulted from a successful market based liberalization of its energy markets, initiated by a UK Conservative Party, extended by a liberal-democratic (Labour) Party. This has also reduced real energy prices over the long term and increased energy diversity, including higher wind power generation capacity than exists today in either Alberta or Canada. By contrast, key policy failures in utility regulation by successive Albertan governments has stymied competition, reduced choice for consumers and increased prices. Before government go looking to the oil industry for more royalty revenue, we should be demanding government take a lead in creating efficient, diverse energy markets that will take less money from people’s pockets and simultaneously reduce GHG emissions in power generation. [T]though the wages of the workman are commonly paid to him in money, his real revenue, like that of all other men, consists, not in the money, but in the money’s worth; not in the metal pieces, but in what can be got for them. Great nations are never impoverished by private, though they sometimes are by public prodigality and misconduct. It is the highest impertinence and presumption… in kings and ministers, to pretend to watch over the economy of private people, and to restrain their expense… They are themselves always, and without any exception, the greatest spendthrifts in the society. Let them look well after their own expense, and they may safely trust private people with theirs. If their own extravagance does not ruin the state, that of their subjects never will. Environment. There is no doubt that the Albertan oil and gas industry faces challenges in making its unconventional assets meet modern world environmental standards, including not only GHG emissions, but also land and water quality standards and use. This requires good government and innovation by industry. However, we cannot expect to both increase royalty revenue and improve environmental sustainability unless we develop a better understating of oil industry’s challenges in these areas. This requires a joint approach, not a partisan one. In my current role, and with such an approach, EnCana has developed the Weyburn, Sask. CO2 Enhanced Oil Recovery (EOR) project, a world class example of CCS (Carbon Capture & Storage) that provides research data with application to the environment. EnCana has a self-interest to promote CCS, for it enhances its own oil recovery. That it also benefits society, is no surprise: It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from their regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our necessities but of their advantages. Reject the “Report of the Alberta Royalty Review Panel”. The narrow remit of the Panel is fatally flawed. Any change in royalty regime must be part of a comprehensive energy review. Yours Sincerely, [Information Removed]
RRE2861 The recommendations in the report should be adopted in full with a corresponding drop in personal income taxes.
RRE2862 I find it amazing that the poll showed 88% of the people in favor of the higher royalty structure. In theory it sounds fine but in reality I think it would be very harmful to Alberta's economy. I am in the oil industry and saw the effects of the NEP (which in simplest terms was an increase in royalties) If the government goes through with the proposed increases without trying to find some middle ground, there will be adverse results. The major oil companies as announced by [Information Removed] will put the majority of their spending money elsewhere. Companies that explore in Alberata and Saskatchewan will probably put most if not all of their money in Saskatchewan. The result of dollars leaving Alberta will result in need for less workers in the oil industry (drilling, service companies and oil companies). There will of course be a spin off to all other businesses in Alberta. The report says Alberta is not getting it's fair share. I would like to know what Alberta is putting into the industry. Alberta is not taking the risks of exploration, the oil companies are taking the risk!. Alberta happens to own the mineral rights, for which I feel Alberta is being fairly compensated. We have enjoyed a robust economy, Alberta doesn't have debt. How has Alberta been hurt by the present royalty structure. It doesn't make sense to me, so count me in as a vote against the changes as currently proposed. Yours truly, [Information Removed]
RRE2863 I work in the oil patch. I have done very well by this industry. I support the royalty review recommendations. The old royalty system is out of date and is not serving Albertans well. I know the industry will have to adjust. There may be some loss of jobs, but right now the money associated with this resource is really only ending up in the hands of a select few – and I consider myself to be very lucky to have benefited significantly. However, this is the people’s resource and average Albertans who are not directly employed by the industry should also be benefiting to a larger degree. We only get one chance to produce oil and gas. We need to make sure we do not [Expletive] it up. With some minor adjustments, I believe the report makes solid recommendations. As a side note, we also only get one chance to use the product – so an emphasis on policy that promotes and enables energy efficiency must also go hand in hand with the royalty changes. Finally, I believe the proposed crown land conservation tax is an excellent idea.
RRE2864 Alberta should phase in the royalty recommendations over a ten year period. An additional $200,000,000.00 per year for ten years. This will meet the recommendations of the royalty review committee and give the Oil companies a reasonable and concrete increase to budget for.
RRE2865 Please Save Alberta ! Don't make a mess in Royalty Review. These will have a negative impact to all employees working in Oil Industries.
RRE2866 Dear Premier Stelmach: I am very concerned that the Province may be about to make an important decision based on flawed information: - the Royalty Review uses economic assumptions that are out-of-date, way out-of- date - Alberta is a mature basin (in other words it's very hard to find oil and gas - it can be done, but only by spending a lot of money and suffering a lot of disappointment) - and as such cannot be compared to most other countries in terms of what a reasonable royalty rate is. - the Royalty Review Panel is not impartial - it is well known that the forestry industry (Chairman Bill Hunter) is not friendly with the oil and gas industry. The feeling is no doubt mutual - no-one in forestry would tolerate the appointment of a panel to review forestry royalties that was headed by an executive in the oil industry. As you know the Province has many sources of revenue (as they relate to the oil, gas and tar sands industry): - royalties on production - land sales - corporate taxes - personal income taxes - property taxes (levied on corporations and individuals). If the changes as recommended are implemented: - royalty revenue will decline as very few new wells will be drilled - land sale revenue will plummet to near zero (from $1.5 billion last year, and an estimated $750 million this year) - corporate tax revenue will drop, and then in the coming years go strongly negative as companies use loss-carry-back provisions to recoup taxes paid during these past few profitable years (i.e. government revenue doesn't go to zero, it goes negative, and possibly for many years). - personal income tax revenue will decline as people are laid off and move to other places to seek work; large deficits and layoffs of government employees, teachers and nurses will follow. - property tax revenue will fall as buildings and homes become vacant These may sound like scare-tactics, but we (who are old enough) have seen it all before, in 1981 with the NEP. It took 10+ years to restore confidence in the industry (and country). This province has portrayed itself as business-friendly. Let's keep our word and not do anything stupid under the guise of being "fair". All our citizens who thought they were going to get a better deal will quickly find out that capital investment moves very quickly, and has a long memory, and that while the Province owns the resources, they are worth nothing if no-one takes the trouble ($ and risk) to get them out of the ground. Respectfully submitted, [Information Removed]
RRE2867 I recently moved to Fort McMurray to work for Oil Sands and Natural Gas Projects. But, I am so much concern about the future of the city and province due to proposed royalty increases. Today, I read that [Information Removed]plan to move there investments to other provinces if proposed royalty increase are implemented. By substantially increasing the royalties, there will be a big risk that new projects will be cancelled and future expansions scaled back or cancelled. I am sure that all of the residents of Fort McMurray are diretly and indiretly involves in Oil and Gas business, and we are helpless for the future of the town and Province. And, It is not right to increase the royalty for already implemented or approved projects too. I strongly suggest to keep the current policy and encourage domestic and foreign investors to come and do business in Alberta.
RRE2868 I do not agree with the Royalty Review Report. I fear that if this goes ahead there will be irreparable damage done to the Alberta oil and gas industry which will in turn affect the Alberta economy and the federal economy. As a Albertan in my early 30's up until now I have been very confident with the direction this province has been going to ensure a secure future for me and my family. After reading this review I now have a huge uncertainty about my future and the future of this province and country as a whole.
RRE2869 Go get em Ed!
RRE2870 I find it shocking that there can even be any question as to whether or not royalty levels should be increased. What further evidence is required? If the Premier wants to demonstrate conclusively that his government remains,as many suspect,firmly in the pockets of the oil industry ,he need only to hesitate to do what 88% of Alberta citizens say he must-namely provide a level of royalty that benefits all citizens and sustains the value of our energy resources.
RRE2871 My major concern about the "panels" review, is that it is very aggressive, and that it doesn't represent a true picture of the costs the oil sands companies are incurring. Being an Albertan, and for that fact a Canadian, I am very concerned that this review, if implemented, could cause a major downturn in the economy of Alberta, and thus, the economy of Canada as a whole. Not only would it result of thousands of direct and indirect jobs lost, but the future investment in Alberta by these companies would obviously decline. I feel that a less aggressive plan could increaseAlberta Government now, and still guarantee billions of dollars in the future for Alberta's booming economy.
RRE2872 To Whom it may concern, I am employed in the Oil and Gas sector of western Canada and presently feel the economic impact of soft gas prices all around. Certain markets such as housing which seems to have a hold of the headlines clouds the issue that economy is hurting and with trust issues recently imposed I don't think it would be wise to impose a royalty hike. I am not completely aware of the report data that was submitted to come to the present conclusion of raising the royalties but I do know that the economy is alot more fragile than you think and feel that increments or a later date (say the next boom) would be a better idea than kicking the industry when it's down. Regards, [Information Removed]
RRE2873 I have been in the oilfield service industry for over 40 years and have gone thru some very hard times, especially in the 80's. I am now selling products related to the industry and I am getting concerned about how changing the rules midway thru projects will affect the industry. In the last year projects have been postponed and there has been a tremendous slow down in the fabrication business. Sales for the company I work for have been over 40% lower than previous years and I know of several companies that are close to closing their doors. Hopefully were not one of them. Killing the goose that laid the golden egg doesn't work any more now than the NEP did in the 80's. Be very carefull with your decision as many ordinary people will be affected by it. Like it or not, the Oil Companies have the ability to affect our futures. Don't just go along with this because the other parties want you to. Most Albertans realize that getting too greedy only causes problems, personally or in business. Remember, your decision will determine the future of the province and many people like you and me. Good luck, hope you can find an acceptable decision.
RRE2874 Alberta has oil, and oil companies want access to oil. Along with the changes to royalty fees, is there not some way that we can also introduce new rules that reward those companies who do not jerk the province around by making major changes or punitive changes to their business plans? Holding the carrot of preferred access to Alberta oil to those companies that play fair with Alberta should be introduced AT THE SAME TIME as the royalty fees changes. Instead of the fear mongering from oil and gas sector in response to the royalty fees, make it clear - through legislation - that the way to work with Alberta is through sensible, long-range planning that respects the environment, and respects Alberta's obligation to compensate current and future generations for the true costs in this province of extracting our oil. Seems simple to me - arrange the rules of the game so that only the companies that prove themselves worthy of working with us in our province can continue to play in future. I'm sure their shareholders will understand that concept, and make it more difficult for them to damage our province and their share value.
RRE2875 myself and my partner started [Information Removed] oilfield service in 2004 with 4 tank trucks. we started with 4 employees and now employ 50 running 35 trucks including 4 swabbing rigs. Information Removed] It has been a great business. In 2004 I decided to start [Information Removed] Body & Paint Shop. We started with two employees and now have 11. Our business has grown and continues to grow on both the oilfield side and the body & paint shop. It has done so well because of the oil patch & spin off from the oil patch. [Information Removed] I am very worried if the royalties are raised too much we will lose everything because of a shortage of work. I worry not only for myself but for my 75 fellow employees and all the everyday people they deal with everyday as well. The hit will not only ruin people involved in the oil patch but all the other albertians working as well. The spinoff from the oilpatch is huge! I just talked to a fellow who was in the insurance business in 1981 and he told me 2 of his clients commited suicide then from the last crash in the oil patch. Think of the royalty review as just that. a review. If you do not decide to put it through, you can assure yourselves you have probably saved a few people from commiting suicide. If I know I have saved someone's life I would feel real good. Make 20 or 30 percent of something and save lives doing it or make 100 percent of nothing and be responsible for suicide in Alberta. your choice. Thanks for your time. [Information Removed]
RRE2876 I care about Alberta's future, and I don't think it was considered in the Royalty Review Report. We want a solution that works out the best for the Alberta's economy and future. Clearly, the future can't be visualized if this proposal gets implemented.
RRE2877 Dear Premier Stelmach, I have lived in Alberta for almost a half century, my entire life. On a number of occasions, I have voiced concerns about government policy. In the past, as they closed hospitals, under funded education, and sold off our electrical infrastructure, I expressed concerns that my provincial government was not representing the good of its citizens. Given that history of concerns, I am pleased to be supportive of a government initiative. It was a bold move to mandate an independent assessment of the current royalty structure. I have read most of the report and am impressed with the writers’ broad perspective. It looks to me that the report looks to balance economic development with insuring that present and future residents share the benefits of our resources. For too long business interests have guided economic policy in this province, at the expense of Albertans. I am pleased to see that this government is taking a stand. I fully expect that industry will continue to attempt frighten Albertans by threatening to withdraw investment. These threats are businesses way of influencing public policy – I still remember when car manufactures contended that government legislation making air bag mandatory would bankrupt them. In short, your government has put an issue important to all Albertans on the table. You have a recommendation from an independent panel. I encourage you to fully implement the recommendations in the report. Please stand up for Albertans and require resource companies to give this generation and the next fair compensation for the resources they extract. Your stand on this issue has had an impact on me, I am considering renewing my Conservative party membership. Thank you for taking the time to read this note. [Information Removed]
RRE2878 I am an Albertan and have been my entire life. My feeling on this is that if our esteemed Premier is truly a man of the people, and wants to make life for Albertans better, then why would His Honor want to cut his and our noses off to spite the face. Oil & Gas Revenues have continually contributed to a strong economy and strong voting people. This province currently has a 14 billion dollar surplus thanks to the hard working Albertans that His Honor is proposing to help with the Royalty Review, why cut Royalty revenues????? Why not use a portion of the income surplus to build the necessary infastructure this province needs. Why risk a huge economic downturn by clawing back moneys from OIl & Gas Producers. Does His Honor really want to see a return of the Recession from the early to mid 80's????? I know I don't. I know Albertans don't want that.
RRE2879 I find it very difficult to write this message given my frustration with the government of Alberta. I am hoping that cooler heads prevail and our government will not throw Alberta into one of the worst recessions we have ever had by incorporating any royalty changes. I, for one, do not want to see my house value drop 20%. Our natural gas business has been in a slow down for the past 18 months. Junior exploration and production companies are under enormous pressure as are our oilfield services companies. Putting through any royalty increases would put the final nail in the coffin of our natural gas business. Encanca has already promised to take $1 billion out of the province and we could see many billions more to follow. Our oilsands are also under enormous cost pressures and adding more will put projects on the back burner and I think we can all make the calculation that the benefit of a project that is cancelled is 0. I have already had personal experience with international investors opting out of an investment in Alberta given our current royalty review. I also do not think that the transactions completed in the energy sector since the announcement of the royalty review as a sign that foreign investment will continue. These transactions were negotiated months ago and the parties are fullfilling their obligations under contracts signed before the announcement of the royalty review. I truly believe that any royalty increase will severly damage Alberta economically as well as reputationaly. I cannot see any possible gains for our government or for the people of Alberta with any increase in royalty. Whatever the calculated gains may be they will be erased in the cost associated with these gains. Our province has been the envy of Canada for years and I hope that our government does not set us back to the early 1970's or the NEP days of the 1980's.
RRE2880 Dear Premier Stelmach, I salute you on your leadership in taking a tough stand on the Alberta Royalty Review. I urge you to accept all the recommendations. Don't dilute it, don't water it down. The oil companies are under the mistaken impression that they are the goose that lays the golden eggs. Not so. The golden goose is the oil in the ground, and that belongs to all Albertans. In the current boom the rich (read oil companies) have become richer while the poor have become poorer. We have unacceptable inflation, insufficient hospitals, not enough schools, inadequate roads, not enough doctors, far too high housing prices and too many homeless people on the street. Increased royalties will help to alleviate some of these problems and are long overdue. I hope that you may have the vision and determination to resist all pressures and set things right, just as was done under Premiers Peter Lougheed and Earnest Manning. I wish you every success, [Information Removed] P.Eng,
RRE2881 Please, please increase the royalties. Many Albertans have not benefitted from the boom (due to inflation). For example, our rents have tripled but our salaries have only increased slightly. Oil patch workers have done well judging from all the BMWs. My landlord should not be subsidized and he will not build multi-family structures. Please slow this madness down. Hospitals, education, roads etc have been negatively impacted and services are poor. Thanks [Information Removed]
RRE2882 Our thoughts and feedback on the Royalty Review Report As seen by the directly effected. You always hear concerns about what the Oil & Gas industry did to the housing market and how there is a housing crisis, again caused by the Industry. However, did you hear about how Oil & Gas contributed to a 15 Billion dollar Heritage Fund? Did you hear what the Oil & Gas Industry has done for Alberta and local communities? In my opinion the bottom line is the Provincial Government is upset about the losses of Royalties due to the increasing dollar. During the last election there was extensive media coverage regarding Affordable Housing and the Recycling Program, however where was the Media coverage of the potential “bomb” that is about to be dropped on Alberta and cause mass destruction? All because of the Government is looking for a solution. If the Government puts forth this increase, this may cause many Albertan’s to have to go bankrupt which may cause a lot of mental/emotional stress on people, families, marriages, children and the general health of the directly effected. However, many will be affected because most live in a financially extended society and these homes, toys, vehicles etc. will end up going back to the banks and these monies owing on them are higher than the values itself. The banks will have to compensate for their losses which will result in an increase of interest and in turn drive up payments. Thus again may result in more people being unable to provide for their families and keep a roof over their heads. Some people may have insurance to cover financial loss or if in-turn life insurance, might be required to be paid out, due to extreme stresses, that too will then cause insurances to increase. Have we even touched on the full extent of the mushroom effect of what will happen? There is 30 billion dollars in reserve, stop looking for a short term solution for the increase of the Canadian Dollar. Every increase of .01 cent = 1 Billion dollars of lost Royalties. Albertan’s should not have to pay for a prosperous Canadian dollar. Idea: What about an Oil & Gas Alberta Infrastructure Program to support the housing issue crisis fund? 1. Loan 5 Billion to “the Fund” from the Heritage Fund; 2. Oil & Gas “the Fund” to repay within 1-2 years; 3. This gives 1-2 years to re-access Royalties with proper knowledge; 4. How you disburse “the Fund”, TBA. This way it would be a win, win, win, win situation all around. In conclusion there is 30 Billion dollars in Alberta savings. This I imagine is called the “Rainy Day Fund” if you proceed with the current review recommendations……. ……………………………………WELL ALBERTA??????????????? WHERE IS THE ARK!!!!! (translation: cause it is gonna pour) Please put a freeze on the devastating destructive proposal and hire a new panel with industry knowledge and start over.
RRE2883 Dear Mr. Premier, I am strongly opposing this move because it will make us gain a piece of sesame and lose a melon. The report says the gain will be 2 billion dollars go to Alberta government a year. But the assumption is the economy is stably strong like now and growing. By average, an Albertan can share less than $700.00 per year in this case. However, this move will jeopardize our booming economy and all the benefits the economy brought to us. It is the Alberta Oil and Gas industry created this booming. Please consider the following benefits that the booming economy has brought to us: 1. Everybody in the province gets a job with a better pay than those in other provinces 2. In Alberta, more than $100,000.00 real estate gain in book value per household in the past two years by average. 3. Consumers are confident to spend and created more jobs opportunities in Alberta 4. The government collected more tax dollars because of booming economy and dollars will be spent on projects to benefit all Albertans 5. Billions of dollars have been invested to our Oil and Gas and other industries from outside of Canada 6. The current tax structure has supported the Oil and Gas industry and the economy established a healthy system to keep growing in the future 7. You and your party stay in power in the government 8. And more… All of these can be in danger because of the increased royalty to oil and gas companies. There are already signs of chaos that may happen if your government decide to increase the royalty as the report suggested. You know the oil sand projects have already struggled on the rising cost due to the high inflation. EnCan just announced that it will cut the investment by $1 billion in 2008 if your government increase the royalty as the report suggested. You know a big Oil and Gas producer and invester can directly and indirectly hire about 100000 people. It’s the oil and gas producer and investor who decide to hire or not to hire people, not your government to make the decision in this matter. Please site down with the oil and gas producers and investor and listen to their opinions before you make any decision. Regards, [Information Removed]
RRE2884 At today's gas price, and at the forecasted price, almost all of the provinces gas wells will incur a higher royalty, as opposed to the panels conclusion that 82% of gas wells will receive a lower royalty rate. The increased royalty also provides dis-incentive to drill deeper targets, wells which provide a disproportionate amount of corporate spending (not to mention gas rate) compared to the well-count. Most companies that I'm aware of had already planned on a 30% reduction in natural gas drilling from 2007 (which itself was down 30% from the year previously), all due to lower gas prices and substantially increased service costs. Service costs have increased approx 30% over the last two years, the panel used 2005 cost projections which come up short of todays numbers. It's not enough to say to companies, " just cut your costs". Imagine if government were forced to do the same. The billions of dollars invested to date in the oilsands was put there on the understanding of a fixed royalty rate. Raising the rate once the dollars are committed will only serve to delay or cancel future projects entirely. Unless that is your intention, of course. If you want to slow things down, increase the royalty rate on new projects, but those that already have significant dollars committed should be grandfathered at the 25% rate. The end result will be, rather than a $2.0 billion royalty surplus, an actual decrease in royalties due to decreased industry activities, including land-sales and bonus payments (which account for roughly 40% of the total royalties, and which were ignored by the panel. If they had been included, the comparison to Norway would have been relatively equal). [Information Removed]
RRE2885 Do not agree with 20% increase in royalties.What does the goverment plan to do with the extra revenue?
RRE2886 Do you have a fax number that we could submit our comments thru.
RRE2887 It is sad to see that we try to curb bullying in the classroom only to see our oil and gas sector is quick to bully both the government and all Albertans. If the royalty review shows a disparity between enormous corporate profits matched to a shrinking middle class and standard of living in our province, I personally feel a win/win situation must be achieved by our leaders. For years industry has thrown out the term 'accountability' as a way to cover their butts when it suited them. It is time for answers and accountability for ALL of Alberta to improve the common good. My question concerns personal CEO take-home salaries versus the average oil and gas employee. Most people would have to work lifetimeS in order to achieve the same wage. When is enough enough? How will the government address this? Will bullying be stopped at the top before we get critical of the lower eschelon of society? This will certainly determine my vote. [Information Removed]
RRE2888 The royalty review report if enacted will cause widespread problems throughout the oil/gas industry. If the workload slows down anymore then there will be many layoffs and I for one cannot afford to lose my job. This is a reality and had happened already to several companies with work the way it is, without the added burden of the changes that could occur from this report.
RRE2889 Albertans enjoy the highest standard of living in Canada and have the hottest economy in all of the western world. Unfortunatley, the majority of Albertans don't realize that the proposed Royalty changes will cause the real spenders in our economy -the oil and gas companies - to cut back on their capital projects. Who benefits from the billions of dollars in Oil Company Capital spending? Welders, pipefitters, carpenters, nannys, [Information Removed] workers.......everyone in Alberta. I hope that you - the Government of Alberta - who represent the people of Alberta have a little better understanding of basic Economics and are a little less short sighted than many of my fellow citizens. Please don't change the royalty structure to represent the changes that have been proposed recently. Don't become the government responsible for sending our economy into a recession. [Information Removed]
RRE2890 This Royalty Review is all non-sense. What kind of people did you have on your panel to research this? Did they look at the big picture? Did they take every factor in to consideration? Or were they soley focused on getting "your" money and getting Mr. Ed voted back? First off- yes, the oil is "Alberta's". But so are the fields & crops that feed us and the trees that give us homes. I'll bet you can make a few extra bucks out of those guys too- cutting down YOUR trees, farming on YOUR fields. Oil is Albertas biggest natural resource- if we didn't have it, we'd be sitting here rocking our chairs like our neighbors in good ol' Saskatchewan, twiddling our thumbs. They've got nothing. With this Royalties increase, we too will have nothing. You need to take a look at the big picture and the whole effects of this- it is a domino effect. Just because you guys are "losing" 2 billion a year (as if we, the RICHEST province, needs it..) you are willing to sacrifice the livelihood of your people. The industry is already at a major slow down, with work being hard to come by. By increasing the Royalties, nobody will want to work and bring their business (and money) here. They will simply take their business elsewhere. That in turn, will atttract less people to our province and remove people out of our province. This in turn, TAKES MONEY AWAY. Values of all sorts will decrease. Thousands upon thousands of jobs will be lost, all those "rig pigs" spending their money here won't have any money to spend IN YOUR PROVINCE anymore. If nobody can afford to live, they will go somewhere where they can afford to live. Everything in this province will go down- not just the oil companies. Nobody would be able to find a new job, people couldn't afford to build new houses, new cars- not to mention the gas that goes with it, people will be going out for dinner less frequently, people won't be able to afford to buy new clothes, not to mention new clothes and stuff for their kids and the stuff we need to live our everyday lives.. may I remind you that almost 90% of the products used are PETROLEUM products. If you do this Royalties Increase, your province as a whole decreases. You will bring everything down with them. The attraction of being in Alberta will not be so attractive anymore. People will simply take their business and money elsewhere. And then where is your extra 2 billion? You are willing to sacrifice "X" Billion dollars for an extra measly 2 billion? Do not bite the hand that feeds. We bring you in ample amounts of business and money; in the oil sector and outside of it. Everybody benefits from it and the only reason why we are the way we are today (stable and prosperous) is because of oil.. but with the Royalties, not only will oil companies suffer, so will every other business sector in this province. We will just be another Newfoundland, suffering as a whole with no work and nothing to do. you should re-consider this Review and take a good close look at it. Perhaps listen to someone who knows what they are talking about and are open minded to grasp the whole concept.
RRE2891 I am writing as a concerned Albertan regarding the Royalty Review. As a mother of 3 and a wife of an Oilfield Operator, I fear what could happen to not only our economy but to my own family if the Royalty Review Panels' suggestions are implemented. My husband works very hard in the Oil Industry to allow for me to be at home with our 3 children. It is important to both of us to have one parent at home to help to guide our children and to instill proper values and morals into them. Our children are from the ages of 5 months to 4 years, all at very impressionable ages. My husband and I worry of what could come if this Panel's recommendations go forth as is. It is our understanding that this Panel didn't seem to gather the information correctly as well as made comparisons that really are not valid. We express our concerns as citizens of Alberta, the way things look to us, is that if this goes through, not only is my husbands job in jeopardy but so is our family dynamic as well as what is truly important to us. We attended a meeting on October 11th that had well over 500 individuals from our community all with concern of what could happen if the Review Panel's recommendations go forth. As active members of our community, we see first hand how important the Oil industry is to our community and the economic success of our Province. Oil companies dollars have played a significant role in the future of our youth in our community and our province. The youth of today are our future for tomorrow and as we see it the Oil companies support this truth significantly. If the recommendations go through as is, many dollars that support our communities and thus our youth will be lost. Oil Industry dollars help to sustain our communities by investing in the youth that are a part of it, from organized sports to church groups to schools. As the Government you collect dollars from these companies (on our behalf), but these companies don't stop there - they invest in our communities as well. Their dollars support many things in communities, not just in rural Alberta but in major centers as well. The Oil and Gas Industry is also indirectly responsible for many other jobs in this province that would also be lost, of which I am sure you are well aware. If they cannot drill a well because of feasibility, as Government you cannot collect any dollars on it, they need to see things as profitable or these companies will not be able to do business. It is important that as Government you take the time to do things right for all Albertans. You need to get all the facts, all the information and to seriously look at how the decisions will affect our communities in the long run. We understand that changes may be needed but not the way the Review Panel have suggested. Please, as a Mother, a Wife and an Alberta citizen, do not go through with the recommendations. Make it fare for all parties involved. Keep Alberta growing, thriving and help to sustain it for the future, for everyone.
RRE2892 Please read this very insightful commentary from, this gives the best persepctive on the royalty issue. Satya Das's Policy Channel Column 2 October 2007 The Alberta Government shouldn’t worry about a “balance” between today’s fire-sale resource royalties and the eminently sensible report of the government commissioned Royalty Review Panel. The report is the balance. If anything, the report is conservative in its recommendation of the “fair share” Albertans ought to draw from the natural resources they own. Drawing that fair share doesn’t depend only on adjusting royalty rates. It comes down to smart, efficient stewardship of the resources that belong to Albertans – resources of which government is only the trustee. If the report had a broader mandate, it might have tied Alberta’s economic rent from non-renewable resources to building a more sustainable and more diversified province. Bill Hunter, the ferociously intelligent chair of the Royalty Review panel, is an evangelist for the bio-economy – the wealth Alberta can draw from intelligent use of wood fibre, agricultural fibre, biomass and “waste” products. The royalty review report, and Hunter’s work with the Alberta Forestry Research Institute and the Alberta Science and Research Authority, foresee an Alberta that pursues the potential of both the hydrocarbon economy and the carbohydrate economy – using the present wealth of the first to develop the future wealth of the other. Despite the dire warnings from some in the energy sector – EnCana felt compelled to take out ads in weekend newspapers warning against a royalty increase – Alberta should keep its eye on the bigger picture of how present and future energy revenues can be used to create the next economy. Ironically, EnCana is an example of what government leadership can achieve. Former Premier Peter Lougheed launched the publicly-owned Alberta Energy Company to ensure that the development of Alberta’s energy resources would be of benefit to Albertans, the owners of the resource. The kind of vision and ingenuity inherent in the creation of a government energy firm that morphed into EnCana, can be applied to using the fruits of a fair-market royalty return. If the royalty review recommendations are adopted, Alberta will be extremely competitive in the global market. Charging a fair-market rent will give us a much more flexible opportunity to design and build a future of sustainable prosperity. Alberta’s unique value proposition lies in supplementing today’s hydrocarbon wealth with alternative energy, green energy, and clean energy. We can use additional revenues to aggressively pursue carbon capture and sequestration, clean coal technology (including gasification, hydrogen production and coalbed methane extraction), and biofuels/biomass energy. And one last thing: despite the warnings of local energy firms trying to get the best return for their shareholders, Albertans will not lose tenants for their publicly owned resource. Our unique combination of political stability and huge energy reserves that sets us apart in a world addicted to the hydrocarbon economy. Our stability is going to make us the energy supplier of choice for the world -- not just the U.S., but the voracious populations of China and India and other emerging global powers. In fact, many foreign investors are standing by to pick up the opportunities that may be abandoned by local enterprises that feel they can’t afford a higher rent. Whether from Abu Dhabi or Norway, China or India, they see Alberta for the bargain it is. That’s why we can afford to raise the rent, in line with the balanced and sensible recommendations of Hunter’s panel. By Satya Das
RRE2893 I have been reading with interest the press reports, company responses, and related material on the subject of the royalty review. So to complete my reivew I ACTUALLY WENT TO THE ALBERTA WEBSITE AND READ THE PANEL'S REPORT. I must adimit that even though I am a financial consultant much of the detailed information is over my head - as I am sure it is to most of Albertans. I am not employed in the oil and gas industry. In my opinion the report is flawed - I base this conclusion on the following: - A conclusion that Albertans do not receive their fair share is not one that can be made on the basis of an analysis of royalties alone - the entire fiscal picture must be considered. - The report compares the AB gov't share of royalties to States in the US like Texas and Alaska - even though the royalty take in US States often includes non-gov't mineral lease owners a comparison that is, at best, apples to oranges. Not only that; the two states mentioned above collect their revenue from a completly different mix of sources - Alaska and Texas do not collect any state personal income taxes while Alberta does. A while ago I corresponded with the former Minister of Finance - Shirley McLelland - on the topic of changes to the Alberta rate of tax on dividends and pointed out several unfair issues with respect to the changes. I was told in a reply signed by the new Minister - Dr Oberg - that notwithstanding the imperfections in the proposals, the gov't fiscal policy is based on the overall assessment of the impact on revenue and that I could not focus on one single topic of tax revenue and identify fair or unfair elements without reference to the overall fiscal policy. Well I feel the same here - a comparison of royalties (gov't and non-gov't) simply cannot evolve to a conclusion that Albertans do not receive their fair share! - As a financial consultant I cannot agree with the concept of no grandfathering - that is ridiculous. Oil and Gas companies operate with sophisticated financial modelling tools and capabilities - they deserve the certainty of knowledge that the rules of the game will not change holfway through the game. The very notion that a royalty regime can be changed after a multibillion dollar investment by a company is not only absurd, but it serves to destroy the very credability of the gov't in question. - How can the Panel recommend an oils sands severance tax that is non-deductuble for income tax purposes? Federal Dept of Finance officials have finally (after 33 years of non-deductuble crown royalties) gotten back to a system where royalties are deductible!! - Several of the points raised in the press releases of major oil and gas compnaies resonate with me - how can the report ignore lease sales income of $3.5 billion? The cost comparisons used by the panel will neccessarily be out of date given new environmental regs, etc. There seems to be a feeling that the oil companies are simply self serving with their comments - look again! These companies are public corporations which take their image very seriously. They would not publish rubbish AND they employ very competant people - for example I am more inclined to believe the Cdn Natural Resources report that the changes will result in a 50% increase in royalties than I am inclined to believe the 20% estimate of the Panel. Believe me there is no public company that would engage in propaganda on this topic. Their reports and their conclusions are well analysed and very carefully thought out before being published. Alberta has prided itself on 'the Alberta Advantage' and I have always believed in it - I am a lifetime Alberta resident. I know that this province and all of us in it are much better off with the absolute strongest oil and gas industry possible - we have the advantage now! We don't have to give it up - we can have a robust royalty system which generates a huge amount of long term revenue for the residents of the province and still creates the very best investment opportunity consistent with the spirit of the Alberta Advantage. [Information Removed]
RRE2894 Your email has been received into our mailbox. [Information Removed] DATE RECEIVED BY MAIL WAS Tuesday, 02/Oct/2007 12:01:21 DATE ENTERED {ts '2007-10-02 12:15:02'}
RRE2895 This decision will decide my vote. Hope the Alberta Gov. does the right thing and NOT increase the royalties. It would be a snowball of economic disasters. Way to many families would be effected.
RRE2896 It's time for Albertans to consider the future of our children. We need to safeguard their future by following all of the recommendations of the Royalty Review Panel. If this causes a slowing down of the overheated economy that we presently have, I see that as a good thing. There are too many grade 12 graduates putting their futures on hold because they are making unrealistically high wages in the oil patch. We are experiencing labour shortages which is driving up wages and inflation in the housing sector. As the auditor general reported the oil industry have had more than their fare share in the past, because the government has not collected the royalties that Albertans were entitled to. They are making record profits but trying to make us afraid that bad things will happen if we don't continue to let them take more than their fair share of the revenue. Once the oil is gone, it's gone. We need to build up a fund to use to secure our children's future by providing strong infrastructure and by making attempts to diversify the economy as Peter Lougheed tried to in the late 70's and early 80's. I strongly urge the government to follow the recommendations of the Royalty Review Pane.
RRE2897 Enough damage has been done to peoples retirement portfolios by the drop of share prices caused by political interference. More revenue will cause the east to salivate over what we have. Please leave everything as is.
RRE2898 Premier Stelmach, Please be very careful when looking at changing the royalty structure. We can't afford another NEP type disaster brought on by ill-advised government policy. It is important that we Albertans get our fair share from our resources, but if it means destroying our economy in the process, then Albertans will be worse off in the long run. Changing the structure just for short-term political gain and to bring your popularity up would be a huge mistake. In the long run, if the economy is damaged by government policy, especially policy based on achieving short-term political gain, your government will eventually be punished at the polls.
RRE2899 Why Change what works. Companies who invest in Alberta's Oil and Gas do so thinking the province is stable and do not expect to wake up one day and have the government decide it needs more. Investment decisions are made on current legislation. Would ABC Energy have paid as much for that oil sands lease last month as they would now? I guess just bad timing for them. First Trusts and Now Royalties? What could be next! I may just have to vote Liberial for the first time in my life. [Information Removed]
RRE2900 Implement the report and stop giving away our resources and our future. Call industry's bluff. A slow down in oil sands development is not a bad thing. In the end, the world needs oil.
RRE2901 I'm not sure why the government is so fired up about this extra royalty/tax grab. Canada has the lowest oil and gas investment returns in the world, and yet the royalty panel has chosen to ignore this. The extra 2 billion dollars is a fantasy number. If these recommendations are implemented, the actual number will be more like a 1 billion dollar loss, along with the unemployment, economic hardship and suffering that goes along with it.
RRE2902 I believe that the proposed changes to the Royalty system have the potential to stop and reverse the economic boom that we have experienced in Alberta. These changes will have adverse affects on investment from oil companies along with any other companies considering investment in Alberta. Further, the reduction in investment will cause a loss of jobs in the oil and gas sector which will also lead to a loss of jobs around the province. When Albertans have less money to spend, job creation, economic growth and the like will slow. However, the magnitude of the potential loss of investment already believed to be larger than $3 billion could severly limit further growth in the province. Also, the government would set a dangerous precedent that the Alberta Governement is willing and able to change the rules anytime it sees fit regardless of the potential impact to the economy. The flood of businesses moving their head offices to Alberta would stop and could provide incentives for business to leave to province to more accomidating governments. My support for a PC party that would knowingly harm its own economy would have to be seriously reconsidered if this were to be undertaken. Thank you, [Information Removed]
RRE2903 Dear Ed Stelmach, I am writing to let you know that I believe the recommendations of the royalty review panel are already a pitiful and cynical compromise favouring (mostly American) CEOs and corporations. I heartily concur with the recent Parkland Institute that we as a province should be asking for at least 90% from these companies that are making billions and billions of dollars of PROFIT from Canadian public resources. More importantly the oil and gas industry is creating an environmental nightmare and we have no insurance whatsoever that they will ever clean it up. Unlike most mining operations where companies are required to post very substantial bonds before extraction, bonds that would enforce full clean-up, the oil and gas industry for some reason is exempt from this. Could it be because your government knows that restoration is impossible? I am asking for a moratorium on new tar sands development until the environmental impacts are truly understood. We should not be using relatively clean burning Canadian gas and Canadian water to extract dirty tar for American companies. This is insane. We have no national energy policy of our own. It's time to review our participation in NAFTA. We have sold ourselves out BUT it can be amended. With six months notice we can give notice for a review of the energy agreements we made under NAFTA and amend them. You've heard the news of countries all over the world taking back control of their resources and their sovreignty. It's time for us to do the same. WHY NOT? Sincerely, [Information Removed]
RRE2904 For once let's use our brains. Let the oil companies finish all the big projects, thereby,keeping us all working and the economy booming, then up the royalties, after all the big projects are finished. It's a win win situation and doesn't make those bankers richer than they already are. Let the oil companies keep their profits for now.
RRE2905 I agree with the review board that it's time to increase the royalties in Alberta, a small slowing of the expansion will not hurt the province over the long term, and there is not that many reserves in a secure country that these big companies can invest in. It's time to give to the country and people and less profit to the big companies.
RRE2906 It is my understanding that we have been at a surplus for a while now. We still pay healthcare, I still work as hard as ever, continuing to pay my taxes. Obviously this type of move has been given little thought as to what it will do to Alberta. I truely believe E&P will take their money and spend it else where. If I were in that position I would spend my money were it made the most sense. I never thought I would think of putting my vote towards an Albertan Liberal party, then again I never thought this type of ignorant behavior from the conservatives. If you claim to be doing the best for Albertans, pay attention to our fortunes over the past 4 or so years...
RRE2907 Increasing royalties not a bad idea but what is a bad idea is not grandfathering those projects, particularly oil sands projects, that are built on models where the royalty and tax rates are not subject to upwards revision.
RRE2908 I think the government would be making a greve mistake by altering the Royalty structure; especially at this precarious time for energy and investment markets. Regards; [Information Removed]
RRE2909 I attened the [Information Removed]last night in Bonnyville and the CEO gave DOOM and GLOOM report on how the royalty increase would basically shut down all new wells to be drilled, please get all the facts from people who actually know the situation before you make a decision that might just ruin the economy in Alberta. I trust that ED STELMACH will get the proper information from the proper people before making a decission,, I went through the recession in 1981-1983 and it wasn't fun. Words of wisdom that I beleive: " YOU CAN SHEAR A SHEEP MANY TIMES, BUT YOU CAN ONLY SKIN IT ONCE." The few dollars per Albertan that will be collected in extra ROALTIES , will be far less than the income tax that the province is colecting now in the good economy ,than it will in a recessed economy. A well that is not drilled does not pay any dividends.. [Information Removed]
RRE2910 Please think this through a little more and take the time necessary to get it right. The PC Party does not want as its legacy to be the governing body that brought the oil and gas industry to its knees as was done under the NEP in the early 80's. The issues are complex and intricate, please for the good of all Albertans don't kill the goose that laid the golden egg. [Information Removed] Calgary
RRE2911 My message to the government is simple: resist the pressure and do what is right - pass the recommendations of the Royality Review panel. The energy sector has had ample opportunity to make their views clear to the review panel. Why do we continue to listen to their threats and bullying? I have never written a letter or sent an email to a government member on a public policy decision until today. This one has got my blood boiling! I sincerely hope that the government listens to the silent majority of Albertans who believe that the royality regime as it exists today is unfair and acts on the recommendations.
RRE2912 I am really curious how the present government justifies changing the rules midstream during the process. Did you not consider econimics were done on these projects utilizing the current royalty structure? Are you prepared for the legal challenges and if so, could the money consumed in the battle negate any increase? Why damage the current economic structure and force companies to invest in more value added basins?
RRE2913 All the threats the oil companies are now making because of the Royalty Review is a slap in the face to all Albertans after these same companies have reap huge profits at the expense of those not involved in the oil patch. The Alberta Advantage as a result of the Oil Boom has failed to materialize for most of us. Its time to slow down the exploitation of this province and plan for more long term control over "our " resources at royalty rates on par with the rest of the world since we are paying world prices at the pumps.
RRE2914 The Royalty Review Panel has done an admirable job given its limited resources and time. It has pulled together relevant information that reflects the current levels of total take in different jursdictions worldwide, and has made reasonable recommendations that would allow the Alberta people to increase their overall take while still allowing a very healthy climate for new investment. Just to indicate that I'm not a fire-breathing populist (or at least not with respect to this particular issue), I fully acknowledge that at a sufficiently high level of taxation, investment will grind to a halt or a near-halt and not only will the overall tax revenue from energy resources decline, but all the associated economic activity will cease. However, there is nothing to indicate that we will be remotely close to such a punitive level of taxation, even if the panel's recommendations are fully implemented. Secondly, we have to be a bit careful about defining energy deposits as "ours" because the last time I checked, Alberta was open to immigration from the rest of the country and also the rest of the world. In other words, who qualifies as an Albertan is itself a dynamic concept. Along the same line, even if we define the energy deposits as "ours" and ours alone, without a reasonable royalty regime that allows them to be profitably extracted, the deposits may as well not even exist. But to reiterate, I see no indication that the proposed changes (particularly as they relate to the tarsands) will leave us at an unreasonable rate of taxation. Rather, they will a)provide some much-needed additional dollars for infrastructure needs, and b)help slow the rate of economic growth to something more reasonable. As to the second point, were Alberta an independent monetary area it would have increased short-term interest rates in the last few years in order to keep development proceeding at a more reasonable pace. There's not an economist out there who thinks that an unemployment rate of 3.6% is healthy, and we see inflation running higher than the rest of the country. The headline inflation figures themselves only tell part of the story because CPI is notoriously poor at measuring housing costs, and house prices have roughly doubled in the last 24 months through all parts of the province. Healthy? Sustainable? Hardly. Having said all this, I certainly don't view the energy companies as the devil incarnate. In fact, their threats and posturing are only too predictable; their job is to maximize their profit stream, not the well-being of the citizens of the province (the latter is the domain of elected officials, along with each citizen themself.) Let's look more closely at the proposed changes to the oilsands royalty rates. The firms are currently charged a mere 1% of revenue until the capital costs of the initial investment (including interest) are recovered, and only then do they pay a royalty of 25% on operating profit (or 1% or revenues, whichever is higher. But it is almost always the 25% of profits.) The panel proposes that the royalty rate increase to 33% of operating profit from 25%, but that no changes be made to the 1% revenue royalty during the cost-recovery process. The jump from 25% to 33% is an increase of nearly a third, but from a level of only 25%. Moreover, investment in the oilsands still remains a risk-free venture! No other business venture gets this preferential tax treatment in which they pay no taxes until they've recovered all their initial investment. Rather, a normal company subtracts an annual depreciation figure (Capital Cost Allowance, if we want to get technical) from its annual operating profit and is taxed on the remainder. The royalty holiday that the oilsands projects receive essentially turns their "business" into a risk-free venture, in which the only question is WHEN they company will recover its capital costs, not IF they will recover them. Furthermore, the royalty holiday may have made sense in order to spur investment when oil was in the $15-20 per barrel range. Now that prices are $60-80 range and technology has also improved, the energy companies have to acknowledge that the world has changed and that the oilsands are by no means a "risky" investment, even with slightly higher labor costs. Rather than bleating pitifully about the proposed increase from 25% to 33%, they should count their blessings that the royalty holiday itself isn't on the chopping block. To conclude, I wholeheartedly endorse the panel's conclusions and recommendations and certainly hope that the government implements them in their entirety. The government's actions in this regard will also be the primary determinant of my vote in the next election.
RRE2915 Adopt all of the recommendations as presented. The royalty review report has already made a reasonable compromise. And at $88 per barrel the oil companies threats of not investing are hollow. The extra royalty is only $2 billion. To put it into perspective, one oil company (Encana) made $6.5 billion last year.
RRE2916 Start weaseling out of a fair return to Albertans, Stelmach. The election is just around the corner and you and the Conservatives will be HISTORY.
RRE2917 It would be nice if the royalties would go to Albertans. Unfortunately it will go to the "government"! That is all we need is a bigger more bloated out of control spending government. I wish we had a true Conservative government. Give the money to us individually!!!
RRE2918 I work in the upstream sector of the energy industry. From the various reports published by energy sector consulting firms this week regarding the Royalty Review, I fear that the panel has made certain flawed assumptions (eg. the industry is in a very different economic position than it was even 12 months ago), leading to conclusions which, if implemented by the government of Alberta, will seriously hurt the entire economy of this province. While I agree in principle with the idea of a Fair Share for all Albertans, I think the whole issue should be looked at again, prior to the wholesale adoption of the panel's recommendations.
RRE2919 I expected more than an 'Alberta Connects' email link and am very disappointed. Please find someone able to respond to the followind directly, as opposed to 'virtually': The oil companies drilling in Alberta so mightily are now threatening to cease same. This is not a surprise. As mentioned previously, budgets, financial planning and investments have all been altered as per expected from this development. Good luck to you. Microsoft Corp. gave me no reason to respect them until they started investing in philanthropolic causes.
RRE2920 Plain and simple. If you bite the hand that feeds you hard enough, you just may go hungry. If an increase is necessary and feasible, implement an increase, but do not be greedy.
RRE2921 The ARRP recommendations are grossly misguided. Spare Albertans the economic hardship that will ensue under such measure. Lets maintain the 'Alberta Advantage'. Scrap the ARRP and its socialist agenda.
RRE2922 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]
RRE2923 As a concerned Albertan I thought I'd like to voice my opinion. In your news release dated Sept 18 -2007 you said 'Albertans should be receiving our fair share from the energy resource developments.' Albertans are aready benefiting from the energy resources already. Calgary would not be the way it is today, if not for this resources in Alberta. I'm a 3rd generation Albertan with a young family of my own. I don't work for any oil and gas company but my husbands small business certainly benefits from the wealth of Calgary. As do many businesses in Alberta. If those oil and gas companies up and leave then we all lose. Government of Alberta will probably lose more then they want to gain for the oil and gas companies. "Our fair share" is to keep the oil and gas companies here in Alberta and make Alberta the world leading energy producer. Which will benfit us now and in the future. Premier Stelmach you must think of our children and grandchildrens future. There is so much opportunity for them here now and the future. This is the the wealthiest time of Alberta's life, let's keep it going. Thank you for your time. [Information Removed]
RRE2924 Hi--the royalty is extemsive and well done -needs much more on value added --barrels of oil per year rather than per day with accompanying dollar values --report should be upgraded , expanded and sent out to each Alberta household-projections for the next 10-15 yrs too --extimate only 50% of voting public is computer literate thus need for a well done hard copy as the best ,definitive study around-- ---the 2 billion dollars being mantrad endlessly has a conditioning aspect to it--the reality may be 20 billion check this or omit ---[Information Removed]
RRE2925 The report is unreliable since it was based on outdated data and economic conditions. I can't support its recommendations.
RRE2926 The report's recommendations need broader consultation and consideration. What other options have you considered in terms of increasing revenue from royalties? The energy sector was not adequately consulted on this matter and Albertans are only hearing one side of the debate. There's a lot at stake and you need to consider the lasting impact on ALL Albertans. Our economy, quality of life and future is directly linked to the sucess of the oil and gas industry in this province. Make sure you understand ALL the consequences and ALL possibilities. What about turning your attention to more urgent matters, like holding industry more accountable for our environment? Eddie, I would take back my vote for you if I could. Don't capsize the boat unless you've got a lifeline.
RRE2927 Research what Norway has done regarding Royality. These energy companies stiilw would make enough money even if a 60% royality was to put in place.
RRE2928 My message is short and clear - if the goal of this panel is to put a lot of Albertans out of work and into poverty then the recommendations they are making would succeed in doing just that. Please look carefully at this and do not put in place policy that will affect the financial health of all Albertans. We want to work. We need to work.
RRE2929 [Information Removed] the oil companies
RRE2930 Tread lightly as implementing the recommendations on the Royalty report would be devastating.
RRE2931 While I think everyone agrees that there needs to be changes (oilfield industry included). Perhaps this is the time to take small steps and factor the increase over time. It is a shame that other provinces are more than willing to take this important industry into their province and we seem willing to let them go. I guess it is like this, the oil and gas industry put us into a debt free position and yet we still want more. Lets remember, if we take this industry for granted they wiil be gone and then we will wish we were getting the royalties we get now. This industry got us where we are today, lets thank them not gouge them for more. I trust our governing party and know they will make the right choices.
RRE2932 We are already seeing the down turn in oil and gas exploration. Companies are down sizing laying off people. I want to keep my job but the Alberta govnt is making that difficult if you tax the oil companies even more. As I see it the Alberta govnt has now become the greedy one. Alberta is in a surplus, buildings, houses and everything else we want is being built or maintained. Why does the govnt want more? OH i remember so that the politicians can spend more on personal spending on their credit cards. ( Encana has already said they are ready to pull out 1 billion in 2008 and realocate else where. This is the first of many companies. What else is going to be affected? The proposed changes will have immediate and long-term impacts on working Albertans. The magnitude of the expected capital reductions is the tip of the iceberg. In the short term, these changes would mean extensive job losses across the industry. There will be fewer wells drilled, completed, pipelined, operated and serviced. There will be fewer hotel bookings, vehicle purchases, landowner lease payments, restaurant meals etc. More importantly and over the long term, well-paying, permanent jobs will not materialize across Alberta. So much for being a proud Albertan.
RRE2933 I am an employee of an oil and gas company, so my view may be considered biased, but from an economici pespective, the concept of increasing the royalties on O&G in Alberta is an unfortunate one. I believe that by compensating companies for the risk and difficulty of exploring for natural resources, you encourage investment in our province. By insisting that companies pay an increased amount, you will be changing the economic conditions that allow them seek out O&G reserves in the province. If the desire is to cool down the activity in the Oil patch, then increasing royalties is the correct action. However, I believe that the economic impact to the province will be great than any extra royalties collected. In the long term, increasing royalties will harm the province more than help.
RRE2934 Hello, I am shocked that the premier of Alberta is considering making such significant policy changes when he in fact he has not been elected by the people of Alberta, as a result, he has no mandate from the people to make significant change. I would suggest the premier and the government take a hard look at who employs the majority of the people in this province, it is the Oil and Gas companies. These companies are experiencing significant increases in their costs and it will get to a point where people will be laid off and then the government will have even less personal income tax money. It is beyond me why the Government would now penalize the Oil Sands companies when in fact there would not no Oil Sands industry if these companies did not take the risk so many years ago. For the sake of the economy in this province, it is my hope that the Government does not adopt this royalty review report.
RRE2935 To the Premiers Office: [Information Removed]is a diversified oilfield services provider who caters to the ancillary service requirements of the producing companies throughout the western Canadian sedimentary basin. Speaking on behalf of our company I can tell you that we share the sentiment of PSAC, CAPP and the entire oil and gas industry; both the producers and service companies alike. There is a growing concern that the recent royalty review is full of inaccuracies and outdated information that needs to be dealt with to ensure that the review does, in fact, compare "apples to apples" and is leading toward a set of revamped guidelines only if and where it is deemed necessary. The Alberta government needs take the stance of making well informed decisions and not simply rush to judgement to meet a pre-set deadline of an announcement in early October that has been suggested by the Premiers office. The Alberta government needs to listen to the industry groups such as CAPP and PSAC to make sure it has received input from the "true experts" in our industry when it comes to the rising input costs (increased finding and development costs) that have been experienced over the past several years in the western Canadian sedimentary basin to garner the information necessary to make well informed adjustments to the current royalty regime only if and when it is deemed necessary. The affects felt by our industry and Alberta's general economy if a proper analysis of this issue is not undertaken could be devasting to say the least. Specific to the royalty structure; we are concerned that conventional oil and gas producers need to be treated equitably with those that are involved in the exploitation of our oil sands regions. As I am sure you are aware, our conventional oil and gas industry has been hit particularly hard over the past 12 months with reduced drilling activity levels due to depressed natural gas prices brought on record high natural gas inventory levels. To put this in perspective, [Information Removed] has been forced to lay off approximately 20% (100 people) of its workforce over the past 8 months and we are not alone on this front. Although we feel that it will likely take another 12 months or longer for the supply and demand equation of natural gas to right itself, we are confident that our current workforce level will be required to sustain us for the foreseeable future. This of course could change should the industry take another devastating blow to its current activity levels brought on by a series of unnecessary adjustments to our current royalty structure. To summarize, it is our position that any "knee jerk" decisions that are made by the Alberta government without detailed input from the industry associations could have a long lasting and devastating affect not only to our industry but to the economy of the province of Alberta and our Country. We respectfully ask that the Premiers office takes time to truly understand all of the facts before making changes to a royalty regime that it perhaps does not completely understand at this point in time. In the end, if change is required they should be implemented based on accurate information and well informed decisions; not some preconceived deadline and misunderstood information. [Information Removed]
RRE2936 Have you heard of the National Energy Program instituted by the Trudeau Government? It scared me then and this report scares me now.
RRE2937 Implementation of the proposed changes contained within the Royalty Review report will do significant damage to the economy in Alberta. Implementing the proposed changes will make marginal projects uneconomical. Right now these marginally economic projects pay the wages of an enormous amount of people. These jobs will no longer be required if the project does not recieve funding and believe me they WILL NOT be funded. This Royalty Review assumes that the amount of investment will remain the same regardless of the royalty rate. This is not true. International Companies will no longer inject billions of dollars into the Alberta economy, they will seek oportunity elsewhere. I hope someone has looked into the fact that alot of people will lose there jobs and with that comes foreclosures and property repossessions. BLEAK ECONOMIC FUTURE. Canada is already a terrible place for foreign investors. How about this for an example. Implement the proposed changes to the Royalty structure = Big international companies no longer invest in the Western Canadian Sedimentary Basin = Alot of people lose their jobs = they dont pay taxes anymore and collect unemployment. All in all these changes will not generate any additional funds and will most likely reduce the amount of money the Alberta government collects from its citizens. B.C. and Saskatchewan will then enjoy the riches Alberta once had. Thanks for your time. [Information Removed]
RRE2938 I feel that if the recommendations are implemented, the fallout would adversely affect the economy of Alberta. I work in the oil and gas industry but also own a restaurant/pub in rural Alberta. Since the oil and gas companies have cut their capital budgets in order to bring costs in line, there hasn't been as much work. This minor adjustment has been felt by my establishment and others in the community. If the government does not think that a major royalty adjustment will not affect the economy of Alberta, I think that their head is in the sand. The majority of the oil and gas companies are operating at a profit, and as a citizen perhaps there should be some adjustment for Albertan's to capture their share, however, the recommendations are a bit extreme. There are companies that are operating on a low margin and would not be able to absorb the extra royalties. The lack of free cash in the hands of thousands of Albertans would affect every industry across the spectrum.
RRE2939 I think that the oil companies should pay more in royalties. We should not be afraid that they will reduce investment, it is fear-mongering as they do not have many other options for investing in other parts of the world that are as safe as Alberta and having such excellent proximity to the US. They have a sweet deal here!
RRE2940 As a 4th year business student in the U of C's Petroleum Land Management program, the prospect of raising royalties scares me. Since I have been in the program I have seen the high of 2006 for oil and gas but also the drastic slow down that followed. the program I am in is supposedly the easiest to have the chance at employment after graduation. I am noticing that classmates and I are struggling to frind work even now and this royalties raise would only hurt our chance for employment. This will effect everyone in the province more is intended and many poeple will lose thier jobs as well as the econnmy will slow down drastically. DON'T RAISE ROYALTIES!!!
RRE2941 I have seen, with my own eyes, wells and projects get cancelled or delayed at the mere suggestion of increased royalties. The recession has already started... do you ant to be the man who puts the kiss of death on it? Do you want to be the man who is responsible for people losing their houses and their life savings?
RRE2942 When is the government going to start compensating oil companies for the time and effort they expend consulting with landowners who do not want them to operate on their land (native and other)? This is a significant cost to doing buisness that has risin not fallen as the reserves of oil and gas dwindle. Either the governement needs to inform people of the benefit they get when a well is drilled or the government needs to reduce royalties to compensate oil companies for the expensive work they are undertaking. Currently it is getting harder and harder to do buisness which equates to more and more expensive. These significant costs already jeprodize development without a change to the royalty rates. I think most albertans have no idea how much prosperity the oil and gas industry brings to Alberta.
RRE2943 Dear Premier Stelmach, I am writing to give my support for the recommendations in the Royalty Report. It seems clear to me that Albertans have not been getting the benefit of the natural resources because no one here has been willing to stand up for the rights of the actual owners of the resource. While there have obviously been economic benefits to the way the resource has been developed, there is a paltry amount in the Heritage fund in comparison to other countries. The oil companies have had everything their way for too long, thanks to past governments. It is high time to take a more responsible approach to the resources that belong to Albertans, both in terms of the monetary benefits, as well as the impact of such development on the environmental, health, and social wellbeing of our province. Perhaps you are the person who will have the courage to look after the interests of those who are concerned about the future. Sincerely, [Information Removed]
RRE2944 The Alberta Government must take the time to fully understand the royalty report and the concerns addressed by the oil and gas industry and investment companies. I believe a new review panel should be formed to address the concerns raised by the oil and gas industry. Industry is willing to work with the government to produce a royalty regime that is fair to both the citizens of Alberta and the oil and gas industry. This panel needs to consider the economic reality of volatile commodity prices, higher operating costs and the appropriate risk and reward of long-term capital investments. The Government of Alberta should not adopt the recommendations presented in the Royalty Review Report.
RRE2945 Think long and hard, then land somewhere in the middle. Significant changes to this system could result in much higher costs to the local economy than many people realize. I agree with [Information Removed]when he indicates there needs to be a change, but not one of the magnitude of this review. Lost jobs, and lost taxes will hurt everyone in this province if major oil and gas companies no longer view their investments here as favourably as in other jurisdictions.
RRE2946 If you want to start a recession and bankruptcies in Alberta just go ahead and change the royalties. People seem to forget what drives the economy in alberta and which people pay a majority of the taxes in the province. things are not always going to be this good because what goes up must come down, it always does. I have worked though many downturns in the industry since the mid 1980's and is not always as good as it seems. It does come to an end eventually. Thanks
RRE2947 I disagree with the report. I do not think the report correctly outlines the costs of recovering/producing the oil. Our province has a large income already from the oil and gas industry. If this royalty would rise I believe we would lose jobs and that affects the people of alberta a little more directly than getting a new road built. Please talk with the oil and gas industry and negotiate a rate that is agreeable to both sides. Please do not just listen to a report by "experts" which may or may not have the proper information.
RRE2948 For natural gas, real costs are 60% higher than the assumption used by the panel. This analysis ignored real costs facing the natural gas industry.
RRE2949 I am deeply concerned with what may happen to Alberta's economy. Where is our Conservative government's business sense? It seems to have left the province when Mr. Klein left office. It is scary to think that our present government does not have the sense to keep our economy from totally falling apart - listen to the oil companies and all companies in the know - moderate your request for the increase of royalties - ask for no more than a 7% increase and keep the people of Alberta working and not driven to bankrupcy. Where were you in the 80's? Have you no knowledge of past history?
RRE2950 Do not Albertans already enjoy the benefits of a healthy oil and gas sector? I'm not sure of the statistics, but it appears that many Albertans work directly for a producer or service provider or are employed by businesses providing services to the aforementioned. You don't have to look any further east than Saskatchewan to discover the effects on the oil and gas industry due to higher royalty rates. They have a similar resource base but it has not been tapped because the economics are not there. Companies chose to develop resources in Alberta because it makes more economic sense. Leaders in the industry and CAPP believe that increasing royalties will significantly affect their abilities to exploit Alberta's rich resource base, including the widely untouched oil sands. Wouldn't it make sense to come up with a royalty structure that works with industry so that Albertans can not only benefit from royalty payments but also the pay cheques that come from the oil and gas industry? Please exercise caution here and make the decision that best suits our province. This is not about doing the politically correct thing or trying to leave a political legacy. I do not know if royalties need to be restructured but if it ain't broke, don't fix it. If restructuring royalties will address a problem, fine. But if we're looking for an easy way to secure more cash flow, we might be shooting the goose that lays the golden eggs.
RRE2951 The Oil companies should be paying not less than 20% in terms of royalties. Norway has 200 billion in their trust account and Alberta has 12 billion, and Norway has been collecting for less than half the time as Alberta.
RRE2952 I am writing to you with regarding my concerns of the Alberta Royalties Review. This decision could hold all of Alberta in jeopardy. Please do what you can to be invoiced in this decision that can doom all of Alberta. If the Alberta Government increases the Royalties to what they are proposing, the province will be in serious trouble. The economy will drop, thousands of jobs will be lost and we will have people competing against each other for minimum wage jobs. Every cent the Government thinks we will gain from the oil companies will be spent on Employment Insurance and Welfare for the thousands of people who lose their jobs. The Oil & Gas companies are to thank for the provincial deficit being paid off, and now we are going to bite the hand that feeds us? The crime rate will increase substantially when desperate people turn to using drugs to cope and selling drugs to make their payments on their property. The suicide rate will also rise when banks are foreclosing on mortgages. Please take the time to consider what effects will really result from the Royalty increase to 20%. Alberta will loose a lot of money as a result of the Oil & Gas Companies canceling proposed projects. Alberta’s economy will be destroyed and all Albertans will be negatively affected. Please make the right choice for Alberta, say no to the Royalties increase of 20%, don't destroy what everyone in our Province has worked so hard to achieve together. Thank-you, [Information Removed]
RRE2953 Unless something is done to recover all of our losses in our retirement portfolios due to the havoc caused by the ill conceived royalty review, I will encourage everybody I know to vote you out!!! The slide continues. What a mess you have made!!!!!!!!
RRE2954 I don't believe that the royalties should be increased.
RRE2955 I would like to know that what the 2007 Royalty Review Report is actually our "fair share". In the sense that if these royalty rates are increased, what's to say that petroleum investment won't pull back accordingly? So yeah, way to go Alberta, now we have a "bigger piece of a smaller pie". We continue to compare ourselves with countries like Norway, which are increasingly more socialist than Canada. Is that a "fair" comparison? I guess that I am worried that if the increased royalty rates bring the economics of western canadian gas down, the reaction by petroleum producers will have immediate and painful consequences on the Alberta economy. And, that if it doesn't, the $2B/yr revenue from royalties will not actually be realized by Alberta as this money will more than likely be distributed across the country through transfer payments or not be spent in Alberta anyways.
RRE2956 Did our goverment, completely forget about the surplus and where it came from??? Small explorations company 's can't afford this. Please don't bite the hand that feeds you.
RRE2957 In regards to the royalty review report, I would like to say that I hope that the Alberta Government will implement a plan that will give the people what they deserve and at the same time be fair to the oil and gas industry. I also believe that energy that is exported should pay a royalty that is fair in terms with the rest of the world.
RRE2958 Consider the "lifting costs" & our "production decline" for our norther Oil & Gas is much higher than other areas due to the viscosity. So we receive less bang for our buck than other places in the world. Please.. Do not interfere with capital returns or investing will go elsewhere. eg: Saskatuan is just realizing their potential, and so are the investers.
RRE2959 Since we, the Albertans never see any of the money collected, receive any better or expanded services, facilities, infastructure derived from the the royalties now collected why not let the industry continue to have the break that continues to stimulate the provincial economy. The only advantage we as Albertans see from natural resource activity and development is our booming economy which is created by an affordable environment for business and industry. Basic rule of economics is that the more you tax a commodity, the less you get of it. Wake up and smell the crude Ed.
RRE2960 You guys sound like commies. Status quo seemed to be working fine - nice job idiots my house value just went down $30,000. I'm voting Alberta Alliance at my first opportunity.
RRE2961 I feel that the Panel should be instructed to immediately release its official position on the DGRH/RAP as this as it is such a huge part of what the Conventional Oil & Gas sector is opposed to. My personal and professional opinion regarding the is that the Deep Gas Royalty Holiday / RAP should not be removed: 1) In light of the reported comments in the Edmonton Journal on Monday by Royalty Review Panel member Andre Plourde (See ATTACHMENT) . 2) As you are likely aware the "Pedro van Meurs" Report which the Royalty Review Panel pretty much 'road mapped' states in Sect. 7.3. that a deep gas royalty holiday or a depth qualifier in the productivity formula might be prudent. 3) The RAP was just reviewed and modified and as such 20% of typical wells on the DGRH program no longer qualify. As such the 20% increase wanted by the Panel has already been achieved on new lands post July 2006. I know firsthand that 75% of the wells my company ( [Information Removed] ) has planned to drill in 2008 do not meet our corporations hurdle rates as my Team did the actual evaluation on the Impact of Removing the DGRH/RAP programs. ATTACHED: From the Edmonton Journal: However, it seems a provision the experts' panel omitted from its report could spell big relief for [Information Removed] and other industry players that have hotly criticized the proposals. While the panel recommends the government end "several" special incentives or programs that offered royalty discounts, it wants to keep a discount program for deep gas wells -- but never mentions that in its report. Industry has strongly protested what it thought was the program's possible death, since the high drilling costs in deep-gas basins would batter already low margins, including for [Information Removed] project near Grande Prairie. "Sadly, as far as I know, it's not explicitly stated anywhere in the report," economist and review panelist Andre Plourde said. He noted that keeping that rate reduction did factor into panel calculations, which many industry voices have questioned. [Information Removed] said that might mean "business as usual" for that gas sector. "It will keep from happening a significant decline in Canadian gas production. "It's huge," he said. "It's one of the biggest issues we have with (the panel's) whole findings," [Information Removed] added, suggesting the panel might have done a mea culpa after hearing its critics. [Information Removed]
RRE2962 Yes! Please listen to the report's reccomendations. The oil and gas industry makes BILLIONS in profits every year, and who is paying for it? The millions of Alberta citizens who do not directly profit from the industry. Poverty is rampant, the gap between the richest and poorest in our province is atrocious, education has slipped, our seniors are forgotten, and our environment suffers. If this government decides to listen to the royalty review and increase the royalties, even if it's not as much as is reccomended, that money will go to the government, and in turn to the people of Alberta in the form of much-needed services to make up for the detriments that our booming economy brings with it. Please do not bend over for the oil and gas industry. I know they would like to make us think that they are "barely making ends meet", but this is just not the truth. The truth is that more of their exorbitant profit should be going to the people of Alberta.
RRE2963 Alberta’s Reserves should be seen from the prospective of belonging to Albertans and not squandered needlessly at the detriment to the next generation. Rapid and unfettered growth of the energy sector benefits many foreign national corporations, leaving Alberta with the tramped aisles and torn shelves of a department store on Bay-days. Alberta’s oil and gas reserves will remain in high demand regardless of increasing royalty rates considering our proven reserves are located in a stable and secure corner of the world with access to infrastructure needed to bring these products to the very near market. I agree with the recommendations in the royalty review report. “Albertans own the resources”, we need to be the ones whom define these transactions.
RRE2964 The royalty review will have a serious negative impact on oil industry investment activities. We need to see a sustainable oil and gas investment environment to keep Alberta economy going. Increasing royalty ratres is not the way to go.
RRE2965 I don't want to go back to the 80s were no jobs were avaiable and people were lossing their homes. This province is booming and supporting alot of Canada don't take that away from us. I'm totally against the Royalty increase. I vote NO.
RRE2966 When we need road repairs or need to fixing roads, better highway service for all Albertan and I think this is right way to increase royalty to pay the road repairs bill and other stuff while oil or gas company driving road and by each day passing, the road getting bad shape, and they do not repair themselves so we has to pay for repairs bills. Go for it increase royalty is last call. Don't be afraid. We are your side.
RRE2967 Hello there, I have copied a letter that I just sent off to Premier Stelmach, it is below. Please feel free to contact me at [Information Removed]. I am a dual citizen and I do business in Edmonton as well as Seattle. Thank you. October 19th, 2007 Honorable Premier Ed Stelmach, I hope that this reaches you well. I am writing you on behalf of “ordinary Albertans” as well as our tenant oil companies to offer constructive feedback on the “Our Fair Share” report. Your upcoming decision will affect Alberta for years to come and I feel that the Panel’s Report misses the mark when it comes to the environment and who is responsible for its care. As owners of this immensely naturally resource rich province, expecting our “tenant” oil companies to shoulder the majority of the expense for caring for the environment is a long term recipe for failure. The Panel’s Report states that “energy companies do not own the resource; they simply lease the right to produce it.” I respectfully disagree with this statement. Whose Problem is it? Alberta’s resources belong to Albertan’s and it is obvious that Review wants to have their best interests at heart. However, in the report they say that caring for the environment is the oil companies “cost of doing business.” This logic is an easy way of saying “it’s their problem, not ours.” If we were to be completely objective here and use common sense, when you own your own home, who inherently will take better care of the land, you or the tenant? As much as we would like to believe that all oil companies will gladly fork over hundred of millions of dollars to invest in reducing their carbon emissions, we have to stop deluding ourselves. The nature of business IS business. Environmental responsibility without profitability will not become globally acceptable. Thoughts on the Solution Tax Breaks for Environmental Leaders Your upcoming delivery to the province and nation on October 24th, 2007 must be one that is a win-win not a lose-win for either party. Much like we provided tax breaks in 1997 in order to jumpstart investment into Alberta, we require a similar tax break for companies to invest in new technology that dramatically reduces our environmental footprint. It does not make sound business sense to propose an increase in the net royalty rate from 25% to 33% and still place the majority of the onus and more specifically expense of environmental upkeep in the oil companies hands. A true win-win would be for oil companies to receive significant tax advantages for utilizing and advancing technological breakthroughs such as carbon capture and storage as well as nuclear powered energy for In-situ mining. It is no secret that extracting bitumen from Mother Earth requires an immense amount of financial investment, human capital and natural resources. As we all know, good things can not last forever and now more than ever, our environment needs attention. For example, the Athabasca River is being seriously depleted due to In-situ techniques for extracting bitumen and areas in which we have already mined surface bitumen are in dire need of speedy reclamation. We need to proactively take care of our home while we profit from it. Speaking of profit, a second area that I believe the Panel’s Report needs discussion concerns the Royalty Rates. Royalty Rates: Tied to the Price of Oil With oil prices reaching and soon to be exceeding $90 US a barrel there is no doubt that Alberta will continue to be a superpower in the energy sector. We need a policy that encourages the entrepreneurial spirit on an international level while also being fair to the owners of the resource. I would propose an increase in royalty rates only once they pass today’s current oil prices. This way, companies maintain their current profitability levels and as oil prices continue to climb, Albertans receive a larger piece of the pie: Everyone is Happy. I believe that instead of simply raising the rate from 25% to 33%, that tying it to the future price of oil gives Albertans an opportunity for potential tax revenues beyond what would be possible even at the Panel’s proposed rates. We would not be cutting into the current profitability of our tenant oil companies and forcing them to operate from a position of scarcity. It is essential that as Canadians and Albertans we become world leaders in balancing environmental responsibility while maintaining exceptional profitability and peace of mind for all stakeholders involved. Our generation and those to come depend upon what we choose to do in this moment. In closing, the real question is not “Do Albertans receive their “Fair Share?” The real question is “How do we create a solution that rewards not only Albertans but also environmentally conscious actions by the oil companies? We all have to decide that it is NOT just the oil companies “responsibility” to protect the environment, it is all of ours. The oil sands are going to be mined. That much we know for sure. HOW we choose to go about doing it is up to us. Thank you for taking the time to read this letter and for your service to our province and country. Warm regards, [Information Removed]
RRE2968 I think that an increase in royalties is an absolute must. One billion dollars is a drop in the bucket, and when shared among the various companies involved it is even less. Their "wow is me" is really pathetic. I want to say, as well, that the government today had better make some heads roll over the mishandling of the royalty money. There is absolutely no excuse for knowingly allowing such a mistake to carry on over any length of time, let alone years. This money is not the government's to say "oh well". It is the people of Alberta's money, whom you have been trusted to care for. SHAME ON YOU for letting this go. SHAME ON RALPH KLEIN for creating such an atmosphere of fear within the ranks that they would be willing to let this go on. FIX THE PROBLEM!!!
RRE2969 Hi, I am an empoyee of an oil and gas production and exploration company. While Albertans have a right to have our "fair share" of the royalties from the sale of oil and gas I implore you to invest the time and energy into making sure it is fair and and does not negatively impact all Albertans' welfare. Please factor in the risks and sacrifices that oil and gas companies take to get the production they have. Often there is only a very small profit. Also, the indirect costs to Albertans may be huge if we cut back the investment the oil companies make in many areas of our communities. Is it worth the $1.5 billion? [Information Removed] Calgary
RRE2970 I am very concerned about the potential problems that increased O&G Royalties may cause. I do not work in the Oil patch but I am already feeling the effects that the uncertanty of the situation is having on the economy. I have seen house prices fall and the sale of existing homes almost drag to a halt. Everyone is afraid to make a move for fear they won't have a job. I realize that increased royalties will have some short term positive effect for Albertan's but if the oil and gas industry does start to lay-off or worse pull out of this province, we will all feel the slap in a big way. Anyone who thinks that the oil and gas industy doesn't drive the economy and our overall prosperity in this province is deluding themselves. Are the Oil & Gas companies raking in big bucks, you bet, but they also keep most of us working whether directly or indirectly. You can't have your cake and eat it too. We ALL rely on the revenues generated by that industry and although we may not benefit from them by way royalty income we certainly benefit from the O&G industry by way of employment and prosperity for many. I hope the Alberta Government and Premier Stelmach will think long and hard about what they are going to do in regards to raising royalties and don't do anything to jeopardize the prosperity that the people of Alberta, government included, have been enjoying for the past few years. It is greatly due to the oil companies that this province is in the shape it's in. Best Regards, [Information Removed]
RRE2971 if this goes through there will be alot of people out of work!how is the government going to deal with that?and with loss of work will come loss of homes and everything else!
RRE2972 with The slow down of Gas Drilling and Goernment requiring more Ryalty Tax i am in danger of loosing my Job
RRE2973 Ithink that the review should be done at the time to enure the future for all albertans is in place for sure
RRE2974 Don't ask the barber if you need a haircut. Don't ask the energy companies if royalties are high enough. Appoint an truly independent panel. Follow their recommendations. Will the energy companies give an objective opinion? About as objective as the barber's
RRE2975 I've read the Royalty Review Panel Report, and what it recommends is the minimum increase for sound stewardship of a resource that belongs to future as well as present generations of Albertans. Please accept the Hunter Report in its entirety, as far as its principles go. But please do not feel completely bound by the recommendations as to the royalty rate. As a quid pro quo for maintaining the one per cent of gross until capital is recovered, you should seek a market rent more analogous with U.S. jurisdictions like Alaska, and with Norway and Britain. My recommendation is one per cent of gross and 50 per cent of net on all oil sands projects after capital recovery. Moreover, all environmental mitigation expenses should be counted as part of the capital costs. So if firms want to extend the one per cent of gross payout period, they can make their own investments in reducing the carbon footprint, building their share of the carbon capture and storage pipeline and infrastructure, and apply all of this against the one per cent royalty capital cost. Further, firms that wish to share in public infrastructure costs -- cotnributing to roads, hospitals, schools, housing -- should be eligible to include these in the one per cent as well. If all this range of capital expenditures is covered in the one per cent, then it is more than fair to collect at least a 50 per cent of net royalty, after capital cost recovery, and to continue to collect one per cent of gross. This would continue to put Alberta in a very competitive position globally. And we ought to be charging a premium economic rent on our public report because we are a politically stable jurisdiction, adjacent to the world's biggest energy consumer, with the second largest oil reserves in the world. Just a political note -- if the current Alberta government in any way dilutes, undermines or cherry-picks from the Hunter report, me and tens of thousands of other Albertans like me will do our level best to elect a modern, confident, forward looking government that will not be intimidated by the oil lobby and will have the backbone and the moral clarity to ensure our patrimony isn't squandered at fire sale prices.
RRE2976 Page FP1of the September 26, 2007 Financial Post says it all. If the proposal are adopted Canada will have the second highest royalty regime in the world (.26%) ahead of S Africa. What a typical Canadian thing to do , squeeze the last out the last penny. Shame on you, I will vote Liberal in protest next time!!!!!
RRE2978 I believe the GOA should accept the recommendations in the royalty review. I believe Albertans especially the future Albertans recieve meaningful beneftis from this non-renewalble resource. We now have the opportunity to provide for a better future on this precious Alberta resource, let us recieve a fair share for us and our future. We are already providing developers free water to use in their operations, ability to negatively impact our environment and a lengthy time of when they had to pay very little given the high price of oil (near $70/bbl US).
RRE2979 The oil companies should not be let off the hook for any increase in royalties.They have been paying far to little for too long. this is shown by the obscene wages,salaries and benefits of the company management and the high wages and benefits of the regular employees while many Albertans have to try and get by on far less.The whining and crying of the ceo's about any increase in the rate just shows how greedy these individuals are and how little they care about the financial future ofthis province.
RRE2980 Dear Mr.Stelmach We are two grade 9 students and we think that 2 billion dollars should go into savings for schools and infrustructure. [Information Removed] says that albertans need more money. Everything is to old and needs repiars. Our school is getting a extension right now but others need repiars thanks for reading this, BYE.
RRE2981 First off, I do not believe the Alberta Government has been wreckless in its handling of the royalty issue, but certainly the time to act is now. The royalties should be increased substantially for all oil companies. The oil belongs to Albertans not big oil. The oil companies have been responsible for the unrelently pressures on every business sector and citizen of this province turning the Alberta Advantage into the Alberta Dissadvantage for anyone trying to work or do business outside of the oil sector. The royalty rate should be used as a method of controlling the excitement of the oil companies and give them a chance to consider how quickly they strip us of our resources. If it slows the progress down, so be it. Regular Albertans will get a chance to take a breath and recover financially. The trades will have a chance to get real with there expectations of work. Business will be in a better balance with the work to be done. Folks from outside the province looking for the streets paved with gold will have a chance to consider there opportunities in Alberta in a more realistic light. Alberta will have more resources to address the oil driven infrastructure issues. We need to avoid becoming the "one trick pony" that we were seen as before. Meaning others industries including manufacturing need an opportunity to flourish here,as well. Right now it seems any national or international company outside of the oil sector will look anywhere else to avoid our inflation issues and the pay scale intolerance of the average worker in the current condition. So, RAISE THOSE ROYALTIES!
RRE2982 Implement the report lock, stock and barrel. We've been robbed by the oil and gas industry. Show us some backbone. Just Do It!
RRE2983 it would be devastating to our provincial economy, if this was put in place. Oil companys will pull out, there are other avenues to wich they will take there buisness. This would make our new premier remembered for all time, as the premier who took energy rich alberta into a recession. Hope you have extra money in the kitty for welfare,food banks, and many many recieverships.
RRE2984 I strongly support increasing royalties to Alberta. I think that the huge windfall profits that are being made and the increase in costs for Albertans from everything from road construction to huge price increases and real estate is the downside to the Alberta Advantage. These costs ought to be paid for directly through a realistic royalty program which heretofore has been a dismal giveaway to the multinationals. As a senior, I can no longer afford reasonable entertainment as restaurants for example are double a few years ago and if I were not to have had a home, I would have to move out of town. These are the uncounted costs that are the direct result of the boom which is only a boom for those directly employed in the energy sector. Royalties are at the least a return to the citizens here so that oil does not flow ..ripped off from Albertans to other nations without our receiving payment and frankly, a 2 billion dollar increase is less than one quarter of what I would like to see. I would also insist that upgrading of that product be done in this province or at least in Canada...That would be my deal. They will have to take it..We have the oil and the multinationals have no choice no matter what specious lies they have been spreading on TV. This is not the old days when they can take their rigs south to threaten us. I have not forgotten that and I hope that the government has not forgotten that either. I will support to government only if a new and seriously better royalty regime be instituted.
RRE2985 I can not see how the government can go through with the recommondations put foward. This would crush the alberta economy. As an employee of a oil and gas company I would lose my job, Along with thousands of other Albertans. Year after year the Alberta government has surplusses in the billions how much more do they need. It feels as if we are living in a communist regime where the government just takes control of private industry and takes all profit. Has anyone done the economics on thousands of lost jobs and lost investment in the province? Do I just file for bankruptcy when I can no longer pay my mortgage payments and feed my family?
RRE2986 the smart thing to do would be to leave natural gas royalties alone but continue with the prospect of raising the oil sands royalties. It is quite obvious that they do not pay enough, as the original royalty scheme was brought in when the oil sands were barely economic at best. It is quite clear that gas prices are pretty low, and oil is really high. The royalties endured on natural gas is already much higher than the oil sands, so take a greater piece of the oil sands "pie", and dont jepordize thousands of jobs in conventional gas drilling and development.
RRE2987 September 27 2007 Subject: Concern with oil royalties Dear Premier Stelmach, I am an Albertan who works in the oil sector. Whether as a contractor, consultant or employee to or for the energy sector, I am seriously concerned about the news that your government is considering raising royalty payments at this time. Within the last few days, an exceeding significant number of oil companies have either suspended or cancelled their drilling programs while they wait for an announcement regarding this issue. In the short term, this means that there will be little or no work for many in the industry. The potential long term effect is that work is cancelled indefinitely and layoffs begin. For obvious reasons, I do not need to illustrate the “trickle down” effect that will have on our local economy. Currently there are many individuals who work in the oil industry that are suffering. Due to many factors such as changes to the tax structure of trust companies, and the soaring cost of projects, many contract companies have experienced a 35% reduction in the amount of business. There are contract companies who are moving equipment and people out of Alberta and rolling back wages, as we speak, due to concerns with the lack of work and impending royalty issues. With the current slow down that I am seeing, it is not out of the realm of possibility to forecast an oil industry recession if the government does not proceed carefully. If the royalty change goes through in the way it has been proposed, high producing wells will have to pay higher taxes. This sounds like a good idea, however what I see is a few good wells pay for: keeping the existing low production wells running, assist in the new wells being drilled and completed, and keeping the small companies that I work for to stay in business. If the good wells generate insufficient income there will be a shortfall on cash flow to stay in business and to pay the day to day bills. All of us in the conventional energy sector will see an immediate negative personal financial impact. I agree that additional dollars should be retained for Albertans and their future. Penalizing the oil industry today will in no way lead to a brighter tomorrow. I also think that it is unfair to imply that the only time Alberta can get their fair share is at the wellhead. The money I get is taxed at the energy company level, is taxed at my company, is taxed as income when I get it, and pays many taxes, levies and user fees when it leaves my hands. With the Province running a surplus why would you risk all these other revenue streams to get an additional cut of royalties? What would the value of the tax loss be if the oil companies quit spending their money on capital projects? This number should be determined before proceeding. It goes without saying that a halt on capital project spending would have a massive effect on the people of Alberta. The characterization that these profits go to a few rich people to make them richer is misleading. Some of these oil and gas company shares I own, to save for my retirement. Higher taxes and royalties mean not only do I earn less, but the money that I have saved for my retirement goes out the window too. It has been my experience that the companies that make money in the patch tend to hire more people, and those people pay taxes. I have heard that you, Mr. Stelmach, will not be intimidated by big oil. Fair enough, but big oil has already shown that they will reduce spending due to increase costs. I think that it is fair to say that they will take their money and go elsewhere if it doesn't work out. For the ordinary Albertan's sake you must consider the timelines for your plan, the impact it will have, and proceed with caution. In my opinion both your political and my financial future are in jeopardy if you choose to proceed with the implementation of this plan at the current rate. Respectfully, [Information Removed] Grande Prairie. Alberta
RRE2988 My thoughts, maybe less/slower investment in Alberta would be a good thing for those of us who aren't in the oil patch - less inflation, less environmental damage, more controlled growth, and less requirement for infrastructure growth to keep up. Besides, the oil/gas isn't going to go away, and seems like it should retain its value in years to come. So.. I'm in favor of higher royalties in order to slow down the current madcap rate of growth.
RRE2989 To the Alberta Government, I am very disappointed in the handling of the Royalty Review and it's findings. The results of the report were very conviently manipultated to imply to the public that the proposed increase in Royalties would be of great benefit to us. The huge failure in how those results were portraited is the 'missed' loss of investment into the Alberta workforce and local markets. I work for a large oil company and it has been properly reporting what these increases mean. EnCana is already stating that they will cut their budget by 1 billion dollars. That's a huge loss to Albertans since all that money would have gone into the Alberta economy. Albertans will lose jobs, many jobs - that's the bottom line. I say I'm disappointed because if you're going to publish the results of the Royalty Review, you should publish them in a non-biased fashion. Not sway them to look good on you and discount the true impact that these increases will have on Albertans. When a large oil company cuts its budget the ripple effect of that will be felt across the province. You definitely have not made that clear to Albertans. Obviously there needs to be ANOTHER Royalty Review. One that is focused on what's best for ALL Albertans. [Information Removed]
RRE2990 thank you for taking time to review the monetary gains of business vs government 1.increases royalities 2.spend the money approipiately ie. infrastructure, health care, housing, education social programs for albertans DO NOT WASTE IT! ACCOUNTABILITY 3. prevent big business from exploting government(that is elected not placed there by them), natural resources (non-renewable), and jobs ie. oil/gas pipelined to u.s.a to be upgraded or refined DON'T BACK DOWN ! STAND UP FOR CANADA AND ALBERTA!
RRE2992 I fully support implementing the recommendations of the review ASAP, not phased in and not based on todays oil price. The increased in royalty is is long overdue and is needed to address the various issues associated with the booming economy. We discussed this in a group on Monday and every single person in the room agreed and in fact many were very emotional about it. If it results in a slow down in the economy that is okay, it will give us a chance to catch up. The hospitals are to crowded the roads are to busy and dangerous, the Environment Department can't keep up to the effects of continued development. We can't keep staff in Long Term Care Facilities to look after the very people who helped pioneer the Province. Use the extra revenue's to develop Environmently friendly energy, encourage and provide help for wind and solar development. Top off wages for those people looking after the elderly and sick. Thank you.
RRE2993 Premier Stelmach: I trust you to make the best decision for Albertans. Do what you have determined is the correct course to follow based on all of the information you have received to assist you with your decision. All the best, [Information Removed]
RRE2994 I am a resident of Calgary and proud to live in a province that is the envy of Canada and the world. This province has become great not by collecting taxes and revenues, but by supplying high paying jobs and providing a stable environment for investors. In recent weeks several major oil companies have 'threatened' to pull their future investments from this province. They have been called fear mongers and alarmists by the media, but there is no reason to think that they are bluffing. Alberta has a higher cost environment to operate than other competitive jurisdictions. A perfect demonstration of this is the discrepancy between the rig count in Alberta and that in the United States. Gas drilling has slowed significantly in Alberta over the last six months, but gas drilling in the U.S. is continuing at full speed. Clearly the economics for drilling in Alberta are inferior to the United States and we are threatening to make them worse? With this evidence it seems that major oil companies may not be bluffing in their threats to cut spending in our province.
RRE2995 I suffered through the 1980's. I understand that there is a need for the PC's to get re-elected, hence a show of support for greater royalties, but do not accept the report as a whole - that is not the way the industry works. My suggestion: leave existing oil and gas alone, leave new deep drilling alone, have a sliding scale on other new conventional oil and coalbed methane, leave current oil sands alone, and have a new royalty for new oil sands. Existing situations have been worked out on the old regime. We have a budget surplus because of our lower taxes which generate new and more business, including spin-offs, to derive tax revenue from.
RRE2996 Dear Premier: Please consider a "Win Win" Solution for the royality implementation program. Lets not kill the golden goose that lays the golden egg. Perhaps: 1) Implement Increases over a period of 5 years 2) Consider negotiating for secondary industries like upgraders and refinaries to be built in Alberta thus creating jobs and tax revenues for Alberta. 3) negotiate with industry to come up with an equitable formula that is a " Win Win" for all impacted. 4) Ensure that the Royality grab is ONLY $2 billion and does not end up being $5billion. 5) Ensure that the extra revenue is not frittered away, but goes into the Heritage Trust Fund. 6) The earnings from this investment to the Heritage Fund can be used to improve infrastructure in Alberta but more importantly in Ft McMurray. Thank you [Information Removed]
RRE2997 Clearly one does not want to kill the goose that lays the golden egg. Is there a way Albertans can receive greater benefit without insulting oil and gas companies? I believe there is and it's to focus on their bottom. For many years now the industry has been given free reins in developing natural resources until all their costs are recuperated before any significant royalty is payable. The incentive here is for the industry to front load as many costs as possible on these projects. A more practical way would be to establish a commission which oversees costs to determine which company is most efficient. While there are many parameters involved a bottom line motivated company can and will ensure that costs are kept in line. The baks are a great example of zero based budgeting and cost control yet employee remuneration is very competitive. [Information Removed]
RRE2998 I believe the recommendations of the Panel will have a major adverse impact on the investment decisions of the oils sands companies. This will in turn have an adverse impact on the job market. How will the government justify this to the people who have made major decisions to move to Alberta for the jobs and invested in costly houses (particularly here in Fort McMurray), when people start losing their jobs when the oil companies start pulling back on their planned projects? Please consider us workers in your decision-making.
RRE2999 The recent energy sectors threats of reduced investment (The company said it will "cut 30 to 40 per cent of the $2.5 billion to $3 billion it plans to spend next year on Alberta-based activity." [Information Removed] president and CEO [Information Removed]) if the royalty review go through should be dealt with swiftly. If not for Alberta's energy sector record profits the [Information Removed]$1 - Billion Dollar Bow Tower would not be going ahead, maybe that is where [Information Removed]should make the $1 - Billion dollar cut to Alberta investment? Albertans are aware of the record profits the energy sector has been reaping over the past few years, even if industry insiders like [Information Removed] do not want to mention them in their comments of the review. All we want as Albetans is the ability to sell the right to our energy reserves at a fair and sustainable price point twhich is inline with the return on investment from the energy sectors projects and the fair market price of our commodities.A process that will allow Alberta an opportunity to receive a proportionate return on our reserves equal to the energy sectors yearly or project profits.