Thursday, September 13, 2007

Danny Millions State Capitalist

Quick someone tell the Tired Old Tories in Alberta, Oil companies accept state capitalism. That whippersnapper Danny Williams is demanding a stake in oil development, on top of royalties. While in Alberta the same oil companies whine about any increase in their royalty windfall of paying 1% annually for 25 years.

The government of Newfoundland has agreed to buy a 5 percent stake in a planned expansion of Husky Energy Inc's White Rose offshore oil field, Canadian Press reported on Wednesday.

The Canadian province of Newfoundland plans to take a 10 pct stake in new oil and gas projects off its coastline, the province's government said.

The demand was contained in the provinces 35-year energy plan released yesterday by Premier Danny Williams.

The province will take a 10 pct stake in future offshore oilfields if they meet long-term strategic objectives and will pay its share of exploration and development costs, he said.

Newfoundland wants a bigger share in future energy projects, and oil companies say the demand is a reasonable point of negotiation for new projects.

Newfoundland described itself as an "energy warehouse," with natural resources unmatched by most other jurisdictions in North America. Given the possibility of Newfoundland being "a significant player on the international stage," Premier Danny Williams named "control" as one of three main energy goals, planning a provincially owned energy corporation to play a major role in future developments.

Paul Barnes, the St. John's-based spokesman for the Canadian Association of Petroleum Producers, said state equity stakes are common throughout the world beyond North America and Europe. He said his members are prepared to negotiate exact figures for specific deals. "It's not overly concerning to our members that equity participation is on the table here because we experience it on worldwide basis."

Except in Alberta where the the Republican Lite Tories bend over for the Oil industry.

They forget that State Capitalism is as Canadian as Saskatoon Berry Pie.


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Transparency Alberta Style

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