More Oil Whiners

One of Canada's Oil giants, a financial and political backer of both the Conservative Party provincially and federally, threatens a capital strike. Hoping to make Farmer Ed fill his boots.

In the latest salvo in a thundering barrage of industry criticism, Canadian natural gas and oil sands giant EnCana Corp. [ECA-T]says it will slash its investment in Alberta by up to 40 per cent or $1-billion next year if the province fully implements recommendations to sharply boost royalties contained in a recent review by an independent panel.

"If the Royalty Panel's recommendations are adopted in full, many of Alberta's new and emerging resource plays will simply not be economically viable," EnCana chief executive officer Randy Eresman said in a news release issued before stock markets opened Friday.

And another Alberta right wing rump party chimes in defending big oil in opposition to the peoples interests. Unlike Link Byfield's would be WildRose Party, which also opposes any royalty changes, the Alberta Alliance actually has a seat in the legislature.

And though they agree that the government has used 'Third World accounting' ( a euphemism for money laundering) for over a decade, which has lost us royalties already supposedly paid, they offer no solutions. Rather like the rest of their ilk, they say its fine to sell out our resources at below bargain basement prices for the good of Big Oil.

Alberta Alliance Response to the Report of the Royalty Review Panel.

Alliance Recommendations

1. Before it even considers royalty changes, the government needs to get its current royalty house in order. One of the findings of the panel often ignored in the media was that the government's understanding and maintenance of the current royalty system is incomplete and flawed. Evan Chrapko, one of panel members has been quoted as saying about the current royalty accounting structure, "we have record-keeping that works for Third World countries in the 1960s." This need to be rectified before we can move forward.

4.After consultation and with contribution from industry, increase oil sands royalties on the front end by 1% in a progressive four year phase-in. When fully phased in, this would result in an increase of $292 million per year by 2010 and $438 million per year by 2016 when bitumen production will have risen to three million barrels per day (based on $40 per barrel bitumen.) The phase in period will give industry proper time to adjust for the increased burden. The 1% would continue after projects payout as well, in essence be a Gross Overriding Royalty.

Ho Hum that is exactly what is occurring now so this is a non-recommendation.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you.

SEE:

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

This Is What Alberta Democracy Looks Like

Link Byfield Goes AA

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Fearless Prediction Confirmed

My prediction that Alberta CEO Prince Edward would sell Albertans out over the Royalty Review is confirmed from a couple of sources.

From the EnerPub Blog:

Alberta premier Ed Stelmach is expected to decide how much of the report’s recommendations to implement by the middle of October. There is considerable public pressure to increase royalties. However, Alberta’s oil lobby also has significant political influence because of the oil and gas sector’s large contribution to the economy. And the government will be loathe to jeopardize the future of an industry that accounts, directly and indirectly, for about half the province’s GDP.
The likely outcome, therefore, is a more modest increase than the panel recommends.

Edmonton Sun columnist and usually an Ed booster; Neil Waugh weighs in worrying that given his track record the man who would be king might well cop out.

There's one compelling and disturbing thing about the Alberta government's royalty review.

And that's where Premier Ed Stelmach exactly stands on clawing back the oil, gas and, in particular, oilsands royalties and restoring what Bill Hunter's royalty review panel calls "our fair share."

The premier talked tough a few days ago when he said, "I won't be intimidated" by the powerful Big Oil lobby.

However, he hasn't actually said in plain Ralph Klein English what large numbers of Albertans now expect him to say: Alberta's royalty rates must go up.

The premier's office cranked out a release saying that instead of finally revealing where Ed stands on royalties, the Tories now want to "open communication channels" with the oil industry. While government bureaucrats will conduct a "technical analysis" review of the Hunter panel's recommendations to boost the royalty take by at least $2 billion.

Fears that the PCs were now in full retreat went from bad to extreme when it was revealed who is conducting the "shared understanding" with the oilpatch fat cats.

Justice Minister Ron Stevens, next to Dave Hancock, is the softest target in Stelmach's cabinet.

And instead of the finance department running the numbers, the energy bureaucrats - the same guys who messed up in the first place - will be marking Bill Hunter's homework.

Don't Let Big Oil Set Our Royalty Rates make sure Ed hears from you.

SEE:

Morons

More Shills For Big Oil

Find blog posts, photos, events and more off-site about:
Stelmach, Alberta, tarsands, oilsands, Canada, state capitalism, royalties, oil, profits,
Atlantic Accord, Newfoundland, Premier, Danny, Williams, Province,
Bill Hunt, Alberta Royalty Review,
Alberta Cabinet, CAPP, Ed Stelmach,
Big Oil,oil royalties, PC, Calgary, Party of Calgary, politics, NEP, Conservatives, Fort McMurray, One Party State,