Wednesday, December 05, 2012

Conservatives playing the same old game-again.

The original game came forward out of election eve of desperation.  The new game is in play now, trying to convince Albertan’s of industry desperation that won’t allow a claw back on heavily discounted oil.  Between the discounted oil and zero royalty we are paying the industry to take the resource from the province and we make nothing!  Zilch!

The Game:  On the eve of Selmach’s last election there was a big play about no money being collected by Alberta for royalty.  Just before the election was called, they posted the “New Royalty Regime” which is made up on nonsense, never to be used numbers.    On the bottom of the page is one single line, Revenues taken in Canadian Funds.  That little sleight of hand cost Alberta 18% of its royalty at that point in time!  Privately Conservatives laughed at how dumb and gullible Albertans were.

Since Ralph Klein started the raid, our take on royalty has dropped straight line to zero!  A full half of our royalty was lost since this document was first released!

After they were elected the world recession hit (again).  The price of oil tanked as there was a glut on the market.  The oil patch having a large number of illegal immigrants working for them who could not collect EI for that very reason, were in trouble. 

Alberta responded with a 7 billion dollar make work program that was to keep these foreign bodies working with some income.  Some workers were catching one weeks work a month under the program.  At no point was the industry asked to account for the 7 billion dollars they drew down!
The Government was broke; they didn't have 7 billion dollars however AIMCO was sitting on 70 billion dollars of Alberta Municipal and Government pension funds.  AIMCO declared a 7 billion dollar loss through bad investments while like companies in their industry were showing a 3% profit!

Certainly, AIMCO is not arms length from the Government as stated.  With the loss stipulated, it means there will be no chance of payback.   Municipal pensions were robbed!

Understand this is not a local Alberta or even Canadian event!   Drilling was at a standstill throughout the US and around the world!  They had to be kept busy and the Shale play was the only game in town. 
Saskatchewan was first off the mark to go after the shale.  There were not many crews and equipment that could work the shale at that time.  The headlines in Alberta however ran with ongoing stories the oil rigs were leaving Alberta for Saskatchewan because of the high royalty rates Alberta was charging!
Next into the shale efforts was British Columbia.  Same stories played in the news again;  Because of high royalty rates, Rigs were leaving Alberta for BC!

Ongoing stories (outright lies) running for over a year went a long way to convince the public that there was a grain of truth in what they were saying.    As I have come to see this shoddy event, Alberta taxpayers funded much of the shale drilling in BC and Saskatchewan! Certainly both Provinces had illegal aliens working their oil patch.

Now; today, both royalty and discounted oil are on the agenda.   Based on 100.00 per barrel that is  64 billion dollars a year that should be in Alberta to work with. Instead; it is literally down the tubes.  These are low numbers as Pentane also down the tubes is discounted heavier than the oil.  If oil is at 88.00 per barrel, take 88% of the 64 billion to see what you, your family are being ripped off. It will be low, in Canadian Funds but a good idea. 

Oil Industry and the Conservatives who are working hard for them at the expense of the province have a new con in play.

Now they are running newspapers ragged with stories and items about short funds and cite low oil prices because of discounts.
Alberta sets the prices!  This isn't some big bidding war!  Even it if was a bidding war it would be crooked and totally fixed!     Saskatchewan or BC does not have to discount their oil to sell it!

Three major refineries that feed off Alberta oil shut down for refit.  This shorts Alberta sales of oil by 300,000 barrels per day and that is a lot of revenue even though Alberta taxpayers see no part of it.

The Alberta Conservatives and their shadow the Wild Rose Party (who were thrust into opposition by the oil industry) have absolutely no intention  of changing either the oil discounts or the oil royalty both of which we are entitled.

Suncor, just today released its 4th quarter record production and profits.  They say it costs them 33.00 per barrel to produce the oil.  They also say their output is up to 325,000 barrels per day.   That means their profits are running 325,000 barrels times 55.00 US!   Provincial profits are zero.

If you have a want for a future for your kids; a reasonable care for your parents in their old age; get rid of this Government and the opposition.

Are you afraid of change?  What could possibly be worse than electing a party or parties time and again who  continue to demonstrate they have absolutely no interest in bettering this Province.  They continue to keep enough money in play you and your family can survive if you go into debt.

You deserve more! Take it!  Vote these people and their ongoing lies and games out of office!

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