Wednesday, November 05, 2008

Oil price is up 15 to 20% thanks to Alberta Taxpayers

In time with the last election and par currency with the US, Alberta changed the funds for pricing on all Alberta’s petroleum agreements to Canadian dollars away from US dollars.

This change has added an additional 15 to 20% onto the revenue the oil companies are receiving on the resources.

Using today’s figures tar sands only; natural gas and conventional oil excluded.
1.5 million Barrels of tar sands productions would return $98,550,000 per day total US dollars. The gross take in Canadian Dollars is $84,989,520

The Tar sands rates are now 19% for royalty down 6% from the 25% original agreement.

Alberta now receives only $16,148,008 Canadian.
At the original 25% that would be $21,247,380 per day

Oil companies are now brining in 5 million dollars a day more than what they were a year ago. Alberta treasury is down by this same amount.

Considering the tar sands are profitable at 27.50 per barrel US their business seems to be a good one to be in.

I can’t say the same thing for the Alberta Conservatives.
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