Thursday, March 11, 2010

Alberta new royalty regime is a farce!

Alberta has produced a document about their new oil regime and competitiveness that is a Public Relations show with very little relative fact in it.

For instance; number of drilling rigs in Alberta is down.  They do not take any time explaining that omnidirectional drilling techniques is what is in now and one rig can drill as many holes as a dozen rigs of just a few years ago. 

Also Alberta does not have the oil shale play that BC and Saskatchewan does.

A year after the last oil regime was announced with all the big numbers in it, the Auditor general pointed out to the Government they had not come any where close to their targets of 19%.

That same document changed our take from US dollars to Canadian dollars.
Take into consideration the 48 cents per barrel we get for crude in payment in lieu of cash and  you will quickly determine we collect less that 1/2 of what either BC or Saskatchewan take in.

The maximum royalty rate will be reduced from • the current levels of 50 percent to 40 percent for conventional oil and to 36 percent for natural gas, effective January 1, 2011.

They have not collected so much as 1 cent at these royalty rates!

  The point of this exercise is to try to put some level of credibility to the BS they peddled to get elected last time!. 

They say that 1 person is 7 is directly or indirectly employed in the oil and gas industry.  That is saying that 14 percent can expect good or marginal returns for incomes and the other 86 percent of the population is either unemployed or marginally employed! 

This crew has been lying through their teeth since day one and they are not about to change.
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