Alberta Royalty Review = The death of the Alberta oilpatch

[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?

[digital-audiophile]

Not a worldwide oil price crash, but the NEP by the Trudeau govt. in 1980 that killed the Alberta oilpatch. Calgary was destroyed, interest rates went over 20% and people were selling their houses for $1 and walking away from their mortgages.

Here is a little homework for you http://en.wikipedia.org/wiki/National_Energy_Policy

[BC564]

I lived through it...I understand....but what Trudeau's government did and what I said ( that the royalty's should be adjusted somewhat) how is that the same thing?

OH and thanks for the homework...read it closely.

[digital-audiophile]

I don't think that it is the same thing, but it is looking to have a similar impact on life in Alberta.

I am not against all Albertan's getting their fair share (even the ones that have just moved here let alone people like me that have been in the province for 30 years) but I just don't think this was the right time to do this. If the Stelmach governemtn stopped and looked at what has been goignon in the oilpatch in 2007 it might have reconsidered their changes. Drilling has been on a decline, costs have been running overboard and finding good quality staff has been hard.

The Alberta oilpatch was heading into a downturn already, the new royalty regime just puts the icing on the cake and will make it difficult for the oilpatch to get out of the slump. A downturn that may have only lasted though 2008, not is not looking like it will recover until into 2010.

The problem is that too many people are only listening to what the popular media has to say and not doing their own research. Heck it was only until a couple weeks ago that the local news stopped reffering to Alberta as "booming" inside the industry we have seen the slowdown starting 18+ months ago.