Reader Adrian emails – “Surely it can’t be, a State/government run incentive scheme that is clumbersome, bureaucratic and doesn’t work… Whats going wrong? The future depends on these plans …doesn’t it?”
Reader Adrian emails – “Surely it can’t be, a State/government run incentive scheme that is clumbersome, bureaucratic and doesn’t work… Whats going wrong? The future depends on these plans …doesn’t it?”
Yes! The future (of Canadian government) rests on these cumbersome bureaucratic plans which don’t work. Not a bright future, is it?
Mommas, don’t let yore babies grow up to join CUPE.
Tax cut now please. De-fund a bureaucrat today.
It should be possible to design a royalty schedule that takes into account pricing and development cost changes over both the very short and very long term. Reductions on pretty much ad hoc basis like this obviously implIes that should prices rise, the rates will rise again. So the explorers have no confidence on what the risk reward will be. Stelmach has singlehandedly turned the ab oilpatch from being the most bankable in the world to one of the least.
A while back I did a search on the AB PC party website for the word “conservative”. I only found it in a PDF of the party’s founding documents. No surprise there I guess.
Danielle smith will be the next premier real soon if this keeps up.
Gord Tulk says “Danielle smith will be the next premier real soon if this keeps up.”
I think you are right, Gord. And that is probably the reason why Stelmach made his announcement yesterday that there will be no tax increases and rescinded the last liquor tax hike. He is now starting to run scared. Likely the Pc’s (Large “P” and small “c”) are doing a bit of polling. You would think that those clowns would remember how the Federal Reform Party started out.
“Clumbersome” should be a word.
I quit voting PC right after Ralf beat up Nancy.
My question for special Ed always was, “Why”? Why, when you are running 7 billion dollar surplus’s do you need to raise the royalty rate? If I as an Albertan don’t see any benefit from the surplus now why should I suspect that increased revenue from higher royalties will fix my discontent?
As I suspected at the time the only thing increased royalties did was drive business out of Alberta.
Isn’t the communist slogan: “we’re not happy until you’re not happy” That’s why 7 billion dollars wasn’t enough.
When minorities dictate to the majority through lobbying and such this is the result.
How’s that “fair share” working for you Ed?
Wildrose party is looking really good from over here!
theredsuit: I am with you on that one, trs. I just wish they would get rid of the silly “Wildrose” crap and name it a party the rest of Alberta could connect with. Red Ed wore out his welcome with me a long time ago as well as a good number of other people I know in the O&G acquisition, production and drilling business.
One good friend of mine has one property left to sell in Alberta and then he is done with his involvement here. His family go back 3 generations in this type of business and he is fed up. This is from a guy who was producing in excess of 1000/bopde.
He hears Saskatchewan calling, and with a little luck, I’ll make him a ‘Rider fan as well. heh
You know, until a few weeks ago, I couldn’t conceive of an alternative to the Alberta Tories, despite finding their ever increasing lack of accountability and fiscal irresponsibility distressing (Hmm, AB Libs or NDP? Please). I attended at a speech delivered by Danielle Smith in Nisku, and I was very impressed. She was extremely focused on the economics of the main industry in Alberta, property rights, and restraining government power.
She even mentioned the HRCs a at least twice, unprompted, in her speech.
I am now following Ms. Smith and her candidacy very closely. I liked what I heard from her.
http://www.wtrg.com/rotaryrigs.html
Rig count in Canada from a year ago – down 57%
Rig count in USA from a year ago – down 52%
Yep, it’s all Ed Stelmach’s fault. Oil’s price down by 60%, natural gas in free fall – that couldn’t have anything to do with it. Come on, people – a year ago, oil was over $140/bbl, and people were expecting it to go to $200. Anything that turned faster than Ignatieff’s position on the Iraq war was being put to work. Now, with oil down 15% in just the last week alone, oil people are naturally keeping their powder dry, if I may be allowed a mixed metaphor.
I hold no brief for Stelmach; unlike Harper, he has a comfortable majority in a conservative province, so he doesn’t have to pander to win votes. But blaming him for reduced drilling has no basis.
KevinB the question is: When did the number of rigs begin to decline in Alberta. Yes the drop of the price of oil is part of the problem but the beginning of the decline in Alberta coincided with the raising of the royalties not the decline in the commodity price.
Were I in the oil industry I would keep my powder dry until there was an upturn in the price then invest where I am certain the royalty rates will not yo yo. Saskatchewan? Maybe, British Columbia? Maybe. Alberta? Maybe NOT.
Ed and the PC’s royalty decision was made in the context of a provincial election and record oil commodity prices.
Are the royalty rates that much different in SK/BC? Or is it that the AB gov’t decided to raise them/adjust/modify/re-jig/etc, creating uncertainty?
Eddie dropped the health premiums,thanks for that.
KevinB: I am in the Oil and Gas business and the rig count went down as soon as Red Ed announced the royalty plan. If we had had someone other than a farmer (with apologies to all farmers because I come from that stock) with absolutely no clue how to deal with the oil patch, none of this would have happened.
This was done before the downturn in world prices and a politician with half a brain would have at least stated that ‘due to the recent downward spiral in energy prices, the royalty program will remain as previously set out. We will review the royalty program upon stabilization of energy prices and act accordingly’
Oil companies would have been mollified, even tree huggers could not bitch (although they would anyways) and the rigs would not be parading to other parts of the Western Sedimentary Basin.
KevinB: I live and work in Alberta’s oil patch – oilfield service hands were laid off in fall/winter 07-08, months before the price of oil dropped. A direct result of Ed’s Royalty Review. I know because my work load decreased 30% during the same period and well before the price of oil or gas collapsed.
Ed forgot the farmer’s axiom: if it ain’t broke, don’t fix it. Ed is from farming stock – he should know better. Now he is going to pay for it.
Ed has been listening to a lot of “new” advisors who came from outside the PC party and it shows.
Ted Morton is poised to take the reins of the party as soon as a Stelmach created economic downturn creates a leadership review. I suspect by mid winter the pain will be felt.
How did that clown get the leadership?
How did that clown get the leadership?
Easy one member one vote. All the libs and NDs took out weekend memberships and voted Special Ed.
Ted Morton is poised to take the reins of the party as soon as a Stelmach created economic downturn creates a leadership review.
You mean this Ted Morton??
“It’s going to have to be both,” says Ted, speaking of spending cuts and hitting up citizens for more cash.
“The shortfall is so big. We can’t keep loading debt on to the next generation. That’s not what conservatives do.”
But Ted, can it be done by taking the scissors to spending?
“It would be too much. The shortfall is so great, cuts alone can’t do it.”
Although I think Ed belongs on the short bus, we have to remember,when drilling in Alberta, It should be called a Gas patch. With Gas prices under $4 the money just isn’t there for producers. A lowered royalty rate on nothin’ is still nothin’.
Ted Mortons time has come and gone.. He could have left the PC’s and led the new wild rose party, but no. I supported him but he is done like dinner.
Completely agree, wuberman. We, my wife and I, were support’n Morton too, but during the leadership race he vowed he wouldn’t leave the PeeCees and I guess he sealed his fate then and there.
I voted Wildrose Alliance in the last Alberta election and I’ll do it again.
The PeeCees are done.
I don’t think Wildrose is the answer, I think alberta needs a complete break from the confederation, stop the pilfering of this province.