Tuesday, July 20, 2010

Alberta Oil "Investment"

There is a good discussion on oil at

One segment brought out a cold fact that its the Alberta Taxpayer who pays for building the Tar Sands and oil factories around the province, not the oil companies! Yet they refer to their "giant investment"

Start up of these projects is bankrolled by the oil companies in as much as a finance company may help you buy your car.

It is however, the Alberta taxpayer who pays for the project by accepting only 1% royalty payments on sales.

Example:
If the royalty is 16% (which is high for today's dealings) 1% goes to the province as a royalty while the other 15% is retained by the oil company to apply against the cost of the start up. These costs would include finance charges, transportation, wages contractors; everything.

When the project is fully paid for, the oil company is to pay 16%

While I may agree with the formula I do not agree with the application. Auditor General Fred Dunn chided the Government for not having enough staff in the department which is responsible for auditing the oil companies. This is a deliberate short staff by the Government.

In other words the oil companies, unaudited are free to charge what ever they think is right against the Alberta taxpayer!

While Saskatchewan are still at 30% US royalty, BC is still at 30% US royalty and Alberta Languishes at below 16% considering we only get 48 cents per bbl of crude which goes to the up graders.

This Government is in the oil business; not the business of looking after the electorate.

There is only 1 way to change this and that is to Vote and Vote something other than Conservatives.. The Wild rose party will give you more of the same; there is no help for us there.
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