Tuesday, September 30, 2008

The Green Shift is not the NEP!

Mel Knight reduced the oil royalty to 19% from from 25% at the same time changing the trade from US dollars to Canadian Dollars! The production is running at 1.6 million barrels a day.

That extrapolates to 4.6 billion dollars a year lost to Alberta Taxpayers! That is half the provincial budget gone back to the oil companies!

Economies to scale shows us the probability that Albertans own more than a small fraction of the oil stocks. Most stocks by default are foreign owned.

Alberta is not loosing anything in this Green Shift! Had the Alberta Conservatives not reduced the royalty to below rock bottom there would be no room for anyone to plunk a tax on the stuff.

The NEP came into effect at a time when the royalty was much much higher, and the production was 1/1000th what it is now. The NEP did bite into Alberta's revenue. The Green Shift doesn't.

On the darker side, this Government will put every extra cent received from other business, every income tax dollar back into the goal of reducing royalty further! Something to think about when this crew tells you they don't have the money for it.
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