Alberta Royalty Review = The death of the Alberta oilpatch

[rigger11]

i know first hand as to why it is not feasable to drill for the natural gas that we have here in AB. you have to take into consideration the cost of drilling that well. here is an example of the cost break down of a drilling rig per day.
(this is basedon the last rig that i was on, oh and it was drilling for gas up in zama)

$20,000/day jsut for the rig
$500/day for the loader
$500/day for the crewtruck
$3000/day for the camp(maybe more not 100% sureon this 1)
then there is the crew pay anywhere from 11 -13 guys a week wages from $21-39 dollars/hour + overtime
then there is the rental of the drill collars and pipe adn the cost of the drill bits, anywhere from 2-6 bits of different quality and price range(the most expensive one that i saw was $75,000
then there is the cost of the drilling mud(which if it is a bad whole can cost over a million just for the mud)
and then the cost of all the other rentals(shacks,400 bbl tanks, light plants, 3 sided tanks)
and if it is a directional hole then that costs more too....

and well, when it sells at what?? 6.49 per what ever the measurement is...there is not a lot of profit in the gas sector right now.

Hello everyone. This thread showed up in a google search I have set up to keep an eye on interest in the Royalty Review.
With that in mind I would like to invite anyone interested to the following:

Concerned about Alberta and its future?
The Alberta Alliance is & we would like to meet you!

We invite you to attend a Town Hall style meeting in Calgary

Location:
Blackfoot Inn - Heritage Room
5940 Blackfoot Trail, S.E.
Calgary, AB.

Date:
Tuesday, November 27, 2007

Time:
7:00 PM

Speakers:

Duane Mather, President and CEO of Nabors Canada

John Murdoch, President and CEO of Madison Energy

Paul Hinman, MLA and Leader of the Alberta Alliance Party

The Alberta Alliance was founded on grassroots principles, we welcome all to attend. You will learn more about our party, in particular our stance on the Royalty Review. Members of our provincial council and future candidates will also be in attendance. We look forward to meeting you and sharing our vision for our province’s future.

We would also like to welcome our many new members and thank them for their generous donations.
Through them this event and the advertising have been made possible.
Listen for our radio advertising on QR77, starting on Monday

If you have any questions, please feel free to contact me.

Thanks,
Jane Morgan, CFO
Alberta Alliance Party
1-888-262-1888
www.albertaalliance.ca
info@albertaalliance.ca

[G1GY]

Wow! A four page pollitical thread in the lounge. Go figure.

[BC564]

I think the royalty reviews had to be adjusted somewhat.....when it the last time they were increased....when is the last time you got a raise.....everything should go up with the cost of living including the royalty's.... of course...this is just my opinion

[digital-audiophile]

I wouldn't call this a political discussion Politics usually involve public input, this decision was made by the governement without taking the average Albertan in mind.

I hope all the supporters of the unrealistic royalty hikes enjoy their $400 "Ed bucks" cheque while they are on unemployment after they lose their jobs due to the massive downturn in the industry

[rigger11]

Originally Posted by digital-audiophile

I wouldn't call this a political discussion Politics usually involve public input, this decision was made by the governement without taking the average Albertan in mind.

I hope all the supporters of the unrealistic royalty hikes enjoy their $400 "Ed bucks" cheque while they are on unemployment after they lose their jobs due to the massive downturn in the industry

agreed!!!!!

[rigger11]

Originally Posted by BC564

I think the royalty reviews had to be adjusted somewhat.....when it the last time they were increased....when is the last time you got a raise.....everything should go up with the cost of living including the royalty's.... of course...this is just my opinion

when werethey increased last????? when did the oil industry crash last???? 1982? it was the same time!

[BC564]

It was last altered in 1997 to encourage investment in the oil sands.

[BC564]

The oil crash in the early 80's was a world wide crash.... due to the Iranian revolution. This crash in the price of oil also caused the Soviet Union to break up. I dont know where you got your info from but no alberta royalty changes are going to cause a worldwide oil price crash.

Back to my original post...All I said was I believed that the royalty's had to be adjusted somewhat. And I said this is just my opinion. If the price of oil goes up....and then the price at the pump goes up....doesnt it stand to reason then that the royalties should increase to some point?