Alberta oil royalties


miniboss
#1
It is my opinion, that the Premier of Alberta, is an idiot. He pushed so hard to get the oil and gas royalties jacked up, and now is talking about suspending them for 5 years to attract even MORE business to Alberta. If this province isn't in the toilet already, it will be in 5 more years. The suspension of the royalties, means he's screwing with OUR money, that's not cool. If you are a citizen of the state of Alaska, you get a royalty check from oil and gas revenues, in Alberta, we get the shaft. He has no idea what it means to be "joe average", With even more business, everything is going to be jacked up beyond afford ability. Not everyone in Alberta is an oil millionaire. The price of gas is projected to go to $1.50.liter, and we DON'T have a choice, we HAVE TO DRIVE, because no one had the foresight to create the infrastructure for mass transportation, so we would have a choice, and god forbid a cap were to be placed on the price of short haul cab rides. Minimum wage is going up to $8.40/hour, ok, and your rent is $1200.00/month It can't be done, unless you have a roommate, and it still gives you virtually nothing to live on, and you have to put up with someone else. The math doesn't add up. If people have money to spend, they will spend it, if not, the rest of the economy is going to suffer, but it doesn't matter, 'cause the Premier's got all that oil money rolling in. Those who own the apartments, that are up for rent are getting greedy, wait, too late. I could understand if a rent increase was in relation to the price of gas or power going up, their excuse is, well the property value is going up. So, that's only relevant if it's being sold, like I said, greedy. A craphole house now a days is selling for around $200,000, that's nuts, a decent house sells for anywhere from $300,000-$500,000, how exactly are people supposed to qualify for mortgages for these outrageous prices? the answer is to pay for it over one and a half lifetimes, literally, 40 year mortgages are becoming common, so If you can't pay for it, your kids will. The Premier has made it very clear, that affordable shelter is not on his "things to take care of" list, so people suffer. We as human beings are supposed to have the fundamental basic right, to shelter, yet "tent city" was taken down, I was mad when I heard that because, it wasn't much, but it fulfilled that right, again, no choice, so a cardboard box on a vent, is better I guess. Most of those folks in "tent city" were good, honest, hard working people, who were both working, trying to make a go of it, and still couldn't make ends meet. I think THAT shows what a sorry state our province is in, and it's going to get worse. The environment will also suffer, because of all the new tar sands projects, he wants started up. Gas wells, and the tar sands are destroying our environment. We all remember a certain "terrorist" from northern Alberta, I don't condone his methods, or anything else that happened, at all, but when it was all said and done, he was right, bang on the money, in regards to the environmental impact the gas wells were having on animals, and people in the area, and we didn't listen, the oil industry discredited him as some kind of crackpot. Fort Mac, is growing faster than it can afford to. Too many people are moving to this province hoping to cash in on the oil boom, only to end up worse off than they started. the influx of people is putting a drain on ALL our resources. We cannot continue this way, somethings going to give. The problem is, if our population starts to decline, the rest of us are going to have to make up the shortfall in the tax base, we lose either way. I'd say that's enough ranting for now, let me know what you think.
 
Albertabound
#2
At least he had the sense to ask for higher royalties, and never bent over for the oil companies. Higher royalties is a good thing, they should be higher yet...I agree with you on all the rest though, and after seeing what Alberta has gone through, I ask. Are people in Saskatchewan ready for their oil boom? I don't think so. You mentioned what happens when your population declines.......it already is. People are moving back to Sask. in droves. At least you guys had a few good years. Rent in Sask. in already going up and the so called boom is just starting. Funny though, guess who is buying up all the rental property........Alberta developers. And what are these developers doing? Raising the prices to match Alberta's. By the end of September min. wage will be $9.55 or $9.95....can't remember, one of the two. So yeah, the fun has already started in Sask. and big oil has bearly got their foot in the door. Wait until the oil sands buss. moves across the boarder. Your province will empty and Sask. will become the new rape and pillage province.
 
MikeyDB
#3
Saudis are paying $.91/US gallon for gasoline..... Canadians pay far more....

Why?

Because politicians like those in Alberta are Canadians in Americans clothing. They're greedy and power hungry and while the government of Canada flim-flammed Canadians years ago into paying for...investing in Petro Canada, the whole gasoline pricing structure is a lie perpetuated by American oil industry and amplified by arseholes like Alberta's politicians.
 
cyberclark
#4
His whole royalty program is a scam folks! He has dithered the numbers and posted up a bunch of meaningless graphs. You are so very correct to complain about the royalty issues and this Government! As I posted before the last election there was nothing in the oil royalty program for Albertans.
 
ShintoMale
No Party Affiliation
#5
i don't understand this oil royalty business
 
Socrates the Greek
#6
Quote: Originally Posted by miniboss View Post

It is my opinion, that the Premier of Alberta, is an idiot. He pushed so hard to get the oil and gas royalties jacked up, and now is talking about suspending them for 5 years to attract even MORE business to Alberta. If this province isn't in the toilet already, it will be in 5 more years. The suspension of the royalties, means he's screwing with OUR money, that's not cool. If you are a citizen of the state of Alaska, you get a royalty check from oil and gas revenues, in Alberta, we get the shaft. He has no idea what it means to be "joe average", With even more business, everything is going to be jacked up beyond afford ability. Not everyone in Alberta is an oil millionaire. The price of gas is projected to go to $1.50.liter, and we DON'T have a choice, we HAVE TO DRIVE, because no one had the foresight to create the infrastructure for mass transportation, so we would have a choice, and god forbid a cap were to be placed on the price of short haul cab rides. Minimum wage is going up to $8.40/hour, ok, and your rent is $1200.00/month It can't be done, unless you have a roommate, and it still gives you virtually nothing to live on, and you have to put up with someone else. The math doesn't add up. If people have money to spend, they will spend it, if not, the rest of the economy is going to suffer, but it doesn't matter, 'cause the Premier's got all that oil money rolling in. Those who own the apartments, that are up for rent are getting greedy, wait, too late. I could understand if a rent increase was in relation to the price of gas or power going up, their excuse is, well the property value is going up. So, that's only relevant if it's being sold, like I said, greedy. A craphole house now a days is selling for around $200,000, that's nuts, a decent house sells for anywhere from $300,000-$500,000, how exactly are people supposed to qualify for mortgages for these outrageous prices? the answer is to pay for it over one and a half lifetimes, literally, 40 year mortgages are becoming common, so If you can't pay for it, your kids will. The Premier has made it very clear, that affordable shelter is not on his "things to take care of" list, so people suffer. We as human beings are supposed to have the fundamental basic right, to shelter, yet "tent city" was taken down, I was mad when I heard that because, it wasn't much, but it fulfilled that right, again, no choice, so a cardboard box on a vent, is better I guess. Most of those folks in "tent city" were good, honest, hard working people, who were both working, trying to make a go of it, and still couldn't make ends meet. I think THAT shows what a sorry state our province is in, and it's going to get worse. The environment will also suffer, because of all the new tar sands projects, he wants started up. Gas wells, and the tar sands are destroying our environment. We all remember a certain "terrorist" from northern Alberta, I don't condone his methods, or anything else that happened, at all, but when it was all said and done, he was right, bang on the money, in regards to the environmental impact the gas wells were having on animals, and people in the area, and we didn't listen, the oil industry discredited him as some kind of crackpot. Fort Mac, is growing faster than it can afford to. Too many people are moving to this province hoping to cash in on the oil boom, only to end up worse off than they started. the influx of people is putting a drain on ALL our resources. We cannot continue this way, somethings going to give. The problem is, if our population starts to decline, the rest of us are going to have to make up the shortfall in the tax base, we lose either way. I'd say that's enough ranting for now, let me know what you think.

What is really seek here is that every $.10 cents of an upwards move at the gas pumps it drops $100M in the federal coffer pockets.
From the time gas was $.090 cents a litter not long ago to today, we see that the federal coffers are collecting a win full of some $500m revenue a year, and Harper is quick to dump that money into the military while he is telling Canadians that we are in for some hard times. Who is kitting who here. LOSERS IN OTTAWA GO TO HELL AND DON'T COME BACK YOU ARE NOT FIT TO RUN THIS COUNTRY!!!!
Last edited by Socrates the Greek; Jun 2nd, 2008 at 04:10 PM..
 
cyberclark
#7
You have missed the point; his whole royalty program is a sham; an outright lie to get elected on. First, none of this crap is to take place until 2011. At that time it is expected the Canadian dollar will again be at .85 US.

These guys have changed the orignal agreement on royalty to Canadian $ from the original US$ This means we loose 15% of our current revenue when things settle out.

In the mean time he has reduced the royalty to 19%

They have no intention of ever increasing royalty percentage. More specific they plan on reducing it as more revenue comes available through new production.

The conversation runs along the lines of "we made more money in royalty this year than last" etc. They will not say we got more money because we increased royalty.

Follow the links in the original message! It is all there. It is a great bit of news for investors and the stock market but it is a really bad show for the people of this province.
 
cyberclark
#8
Further to this; when you consider the cost of goods and services in this province are up 20% and we are only pulling 19% royalty it could be argued we are paying the oil companies 1% to take the resource away from the province.