Showing posts with label royalties. Show all posts
Showing posts with label royalties. Show all posts

Thursday, October 18, 2007

Nationalize The Oil Patch


Under workers control!

A publicly owned Petro-Alberta would have a democratically elected board of directors, including representatives of the workers, consumer advocates, environmentalists, and the public.

Share ownership by the public and the workers, union investment with profit sharing and public debentures.
The Stelmach government should tax energy companies' profits up to nearly 100 per cent and the government should take ownership of part of the oil sector, rather than adopt the tamer recommendations of the royalty review panel, an Edmonton-based think tank said today.

In stark contrast to the energy industry's complaints that the review's proposed hikes go way too far and would cripple the economy, The University of Alberta's Parkland Institute said Albertans deserve to capture at least 90 per cent of available economic rent on oilsands project.

The left-leaning institute also noted that the nationalized oil companies in Norway, China, Korea and Japan have taken stakes in Alberta's oilpatch, and that a predecessor to energy giant EnCana was once partly province-owned.

"Public ownership is the best way to capture royalties, as 100 per cent goes to the owners, the people of Alberta," the report says.

Parkland research director Diana Gibson says Albertans should expect the same kind of return on the province‘s resources as an oil and gas executive earning a multimillion-dollar paycheque would get for his shareholders.

Selling Albertans Short: Alberta's Royalty Review Panel fails the public interest by Diana Gibson, Parkland Institute October 17, 2007
Release View Executive Summary Download Report (pdf)


SEE:

It's Time to Take Back Our Oil and Gas

NDP And Workers Control

Nationalize the Oil Industry

I Am Malcontent

Who Will Decide About Royalties

The Myth of the NEP

Aren't you sorry you sold your shares

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Robot Protest

Robot comes from the Russian word Robotnichki, meaning drudgery and worker. A wage slave by any other name.

And when the Oil Rig bosses pay their wage slaves to protest on their behalf against the workers own self interest this is what you get.

During the speeches, the workers showed little emotion, cheering only sporadically.

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The Alberta government said yesterday that only $15.2-million was spent on new exploration rights for conventional oil and natural gas in a bimonthly auction.

It is the lowest total this year for conventional energy, a sector in which proposals for higher royalties have provoked considerable anger from industry.

For exploration rights in the oil sands, $15.7-million was collected, which ranks as a median result for the year, ahead of 10 other auctions. With oil prices at a record, the call for higher royalties on that resource has caused less controversy.

In sum, the sale of exploration rights so far this year is down 62 per cent to $1.18-billion from $3.14-billion in the same period a year earlier.

Exploration rights on Crown land in Alberta are posted for sale by the provincial government at the request of individual companies and are awarded in a blind auction where energy firms submit sealed bids. The government take from these auctions can vary dramatically as energy companies spend aggressively when commodity prices are high but pull back quickly when they fall.

A record take of $3.43-billion was reached in 2006, up more than 50 per cent from the previous record of $2.26-billion in 2005. That, in turn, surpassed the long-standing record of $1.15-billion set in 1997, which was reached in part because of the first oil sands boom following the adoption of a generous royalty regime.

This year's decline mirrors collapses recorded in 1981, 1999 and 2002.

That's because such auctions tend to generate less money in Alberta than in other jurisdictions, generally because access to drill for oil and natural gas is seasonal and in the oil sands the raw resource is of lower quality than in major oil fields elsewhere.


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

See:

Real Oil Workers Rally

I Am Malcontent

Who Will Decide About Royalties

Alberta's Tar Sands Gamble

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Wednesday, October 17, 2007

Rent A Crowd

The right wing press pundits and those opposed to Albertans getting their fair share will make a big deal out of the Oil Bosses Venezuelan Style Protest at the Leg today. Until you realize that the workers there were bussed in by the bosses and paid to be there, complete with signs provided by their bosses.

Also most of them have not read the Royalty Report nor know what its recommendations are. And thanks to your's truly helping get the message out about this right wing demo a counter protest occurred.


The workers, many carrying signs printed by Ensign Energy, the drilling giant based out out of Calgary, and wearing hard hats brought by the company for the occasion, said they fear losing their livelihoods if the report's recommendations are accepted.

Whether the crowd had considered the accuracy of the report was another matter; while several said they felt it was flawed, they either admitted they hadn't read it, or, in several cases, that they didn't really understand the complexities of the royalty structure. Many also confirmed their employers had given them a paid day off to attend the rally.

And about two dozen pro-report demonstrators also showed up. Alan Boyle said he worked in the oilpatch for nearly 40 years. "I don't blame these people for being apprehensive because the message they're getting is fear and they're following that. They're scared for their jobs. I notice some older fellas who in the 80s were perhaps hurt when the NEP came in."

But Boyle also said based on the price of oil, the only reason for companies to fear monger about slowing down is because they want to make more money, instead of paying the public its fair share -- something that repeated reports from multiple economists suggests hasn't happened in years.

"It's generally fear and these people are bought and paid for. I don't think the royalty review is way out of line. I think it's quite fair. I don't really see where, based on the price of oil per barrel right now, that any company is really hurting. There are traditionally seasonal sectors feeling the pinch right now but that's got nothing to do with oil royalties."

The AFL issued in a statement criticizing the Wednesday event planned for the Alberta legislature in Edmonton. Gil McGowan, president of the AFL, said:

"These are people who have bought into the scare tactics currently being used by Big Oil. Obviously, they have a right to speak for themselves. But let's be clear: they don't speak for anything close to a majority of Albertans working in the oil patch or related industries." "It's always scary when the people who sign your paycheques start talking about job loss," says McGowan. "But it's clear that a strong majority of workers in this province - regardless of what industries they happen to be in - want a much better deal on the resources that we all own collectively as citizens. And they're not about to back down just because a few cranky CEOs have been rattling their sabres." "Right now, Big Oil is behaving like a kid throwing a tantrum," concludes McGowan. "They're stamping their feet and making threats. But they're not about to leave the sandbox - because there's too much money to be made and, frankly, because there's nowhere else for them to go."

He described the legislature rally, organized by owners of small energy and oilfield service companies, as “essentially a bosses’ rally.”


While it’s being billed as a “grassroots oil workers rally,” McGowan wondered how it could be when most of the companies don’t work in the northern Alberta oil patch, including Fort McMurray. He added those involved are mostly natural gas employers. At a time when many industry players have already admitted the gas industry is slowing as basins mature and prices increase, McGowan said these companies are using those pre-existing market conditions as scare tactics.
“These employers have been trying to say their recent layoffs are a sign of things to come when in fact they have almost nothing to do with the current royalty regime or the one being proposed by the royalty panel,” he said. “Their problem has nothing to do with current royalty regime or the proposed one. They’re caused by the recent slump in the price for natural gas.”


As for the claims about the slow down in the conventional gas and oil patch, that is the nature of the business. Last spring was too warm for some patch operations. Guys I know working in the patch who start in December or January weren't getting started till late February early March. This fall appears to be another Indian Summer so again the patch will start up later than usual.

Dave Hamsing, who runs a drilling company south of Calgary, said companies are already scaling back operations, waiting to see how the government responds to the royalty review.

Hamsing has only two rigs booked this winter, after six were cancelled. He fears another bust in Alberta is a possibility.

"The ones who suffer from the fallout will be us, the service companies, entrepreneurs, employees, families. The rest of Alberta is going to suffer if they implement the royalty report in its state," said Derrick Jacobson, owner of a small oil service company in Red Deer.

"It's not threats anymore, I mean some companies have shifted operations to Saskatchewan already."

Jacobson called Wednesday's protest in Edmonton a "grassroots oil workers rally," but the involvement of a high-priced public relations firm is raising questions.

Don't believe me,well then lets ask Mr.Right Wing his-self, Neil Waugh;


Threat of job losses in the oilpatch due to royalty boost may just be a Big Oil invention

But it was a great day for the flat-earth believers in the Calgary oil towers and their compliant, soon-to-be communications directors.

Fortress Stelmach had been finally breached and the Stalmachistas are fleeing for the hills after the Cowtown oil aristocrats launched their third and final desperate assault - code-named the "Perfect Storm."

That is where tens of thousands of oilpatch workers would lose their jobs if the modest royalty tweaks go through - not to mention their double wides and dually diesels.

THE PROBLEM IS REAL

Of course, there is a problem. The winter drilling season is going to be a bust. And the summer one was nothing to brag about either.

Big Oil has already pulled back their big budgets. Rigs are racked and trucks haven't turned a wheel all summer, especially in Stelmach's rural heartland.

Big Oil invented the storm. Now they want to pin the blame on Stelmach, as rig moving king pin Murray Mullen tried to do last week when he announced the "temporary layoff" of 100 truck drivers and swampers.


Yep today's protest was the Oil Rig Bosses blaming the Royalty report for the fact that they had a poor spring and summer and are preparing for a slow start this winter. It has nothing to do with our getting our fair share and everything to do with the weather.

But heck you know they would look silly if they protested the weather.

Come to think of it I wonder if they have considered the impact of Global Warming on their jobs.

Nah, that's just another socialist plot like the Royalty Report.

Representatives from the fledgling Wild Rose Party and the Alberta Alliance, Alberta's two ultra-right wing parties, also addressed the crowd. Alliance leader Paul Hinman, the MLA for Cardston-Taber, called the recommendations a colossal mistake. "It's pure politics to talk about 'fair share' because that's how you make everybody upset, by saying 'you didn't get your fair share'," he said.


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

SEE:

Our Resources, Our Future, Our Decisions

Real Oil Workers Rally

I Am Malcontent

Who Will Decide About Royalties


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Our Resources, Our Future, Our Decisions

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Our Resources, Our Future, Our Decisions

Date:
Sunday, October 21, 2007
Time:
2:00pm - 4:00pm
Location:
Alex Taylor School Gymnasium
Street:
9321 Jasper Avenue
City/Town:
Edmonton, AB

Who should get the royalties - big oil or the people of Alberta? Come and have your say.

Participate in community discussions about the current Royalty Review. Hear from respected panelists and join in the discussion

Panelists Include:
Brian Mason - Leader of Alberta's NDP
Diana Gibson - Parkland Institue
Bill Moore Kilgannon - Public Interest Alberta


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


SEE:

Mason Hits The Bricks

I Am Malcontent

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil

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Real Oil Workers Rally

In response to the right wing rally by oil company executives in hard hats today at the Legislature the Alberta Federation of Labour will be holding a real oil workers rally in a real oil city.

Thursday, October 18, 2007 at 9pm to 10:30pm

Timberline Room, Sawridge Hotel, Fort McMurray

The Real Oil Workers Forum and Rally

Come sign our petition urging the government to increase royalties and guarantee more value-added production in Alberta. Make your voice heard. Bring copies of the petition back to your jobsites!

Hosted by the Alberta Federation of Labour


Meanwhile the guys from Quattro Energy Services and their Alberta Alliance pals might be in for a surprise at their rally today. Real hard hat oil workers might show up to counter protest.

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



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Monday, October 15, 2007

The Autumn Of Our Discontent


It appears that the Alberta Advantage is not all it is trumped up to be. At least to Martha and Henry. I guess we are all malcontents now.

a portrait of disquiet reflected in a new Harris-Decima survey of western Canadians conducted for The Canadian Press.

The online survey looked at the attitudes of 1,400 westerners, but found the most angst and unhappiness in Alberta, the province that leads the nation in growth and per capita wealth.

One in four Alberta respondents said they found people in the province generally grumpier and less civil compared with two years ago.

And despite multibillion-dollar budget surpluses and a provincewide construction boom to try to accommodate the teeming inflow of newcomers:

-24 per cent said the post-secondary education has worsened.

-28 per cent said grade-school education has deteriorated.

-51 per cent said their community has not improved or, in some cases, even worsened.

-70 per cent said there has been no improvement in their family's health and well-being.

The survey, conducted Sept. 10-12, is considered accurate within 2.6 percentage points 19 times out of 20. When just the 350 Alberta respondents are counted, the sampling error is plus or minus 5.2 percentage points, 19 times out of 20.

So I guess a Fall/Winter election is not a good idea for Prince Eddie.

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

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Saturday, October 13, 2007

Hugo Stelmach

The tactics used by the oil bosses in Venezuela are now being used in Alberta.

Media Advisory - Oil Workers to Gather at Legislature to Save Jobs ...


A misleading headline, they aren't really the 'oil' workers. Like Venezuela they are the self interested oil bosses forcing their non-union workers to rally for their jobs that they threaten to cut to stop Albertans getting their fare share of royalties.

Derrick Jacobson, the owner of Quattro Energy Services, a small oil and
gas service company operating in central Alberta, took the initiative of
organizing this rally with his employees and other concerned Albertans.


Digging a bit deeper we find like Venezuala it is a right wing political rally organized by the big oil supporters of the Alberta Alliance Party.

RE: Grassroots Oilworkers Rally

Hello all,

We have booked the grounds at the Alberta Legislature for Wednesday, October17th, 2007 at11:00 am. The address is10800-97th Avenue Edmonton, AB.

We will have MLA Paul Hinman as a guest speaker. If there are any others interested in speaking please let me know so that I may have some type of schedule in place.

I will have a link on my website with all of the reports, petition, as well as releases from Oil Companies. This rally will be designed to inform the public on the crippling effect passing the Royalty Review will have as well as protest the passing of it.

Please be advised it will be kept professional and is not intended to have a wolf pack mentality. We only have one shot at this so let’s be on our best behavior and let our concerns be heard. If anyone is lining up buses etc. I will also post it on my website. This link will be up and running by the end of the day.

The premier is booked to make a public address on the 22nd. Bring your hardhats and let’s show them what Alberta is about. The rally will take place in front of the main entrance steps.

Regards,
Derrick Jacobson
President-Quattro Energy Services Inc.



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


SEE:

I Am Malcontent

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil



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I Am Malcontent


“[The royalty report] has tapped into a pocket of malcontent that nobody knew existed,” said David Yager, chief executive officer of HSE Integrated Ltd., a small energy services company, and a columnist for Oilweek magazine.


That's because the oil elitists and their special interests live in the golden petro towers of Calgary.

Far above the masses on main street.

And I find it interesting he used 'malcontent' rather than what it really is mass discontent with the Tired Old Tories.


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

SEE:

Who Will Decide About Royalties

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil



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Who Will Decide About Royalties

Big Oil and their pals in the investment industry according to this story in the Globe and Mail today.The folks who have been whining the most are having secret meetings with Stelmach's Government.

According to Tristone, which has worked closely with Alberta civil servants in Edmonton to produce new work it will present on Monday

“I think Stelmach's going to make the right decision,” said George Gosbee, chairman of Tristone Capital Inc., a Calgary investment bank that has worked to broker a balance between higher royalties and keeping the province's economic engine running.


These are the same guys that said this earlier this month; Tristone CEO sees lower gas output if cost rises

International oil producers will flee Alberta if the Western Canadian province's government implements a proposed hike to oil and natural gas royalties and taxes, an investment bank said on Monday.

Going ahead with a recommended 20 percent, or C$2 billion, hike to Alberta's take from oil and gas production in the province will actually cause government revenue to drop as production falls by half-a-million barrels a day, according to Tristone Capital Inc, an investment bank that serves the oil and gas industry.

"The C$2 billion increase per year in the government's take is an absolute fallacy," George Gosbee, Tristone's chief executive, told reporters.

Instead of an increase, government revenue would fall by about $1 billion a year if the proposals are adopted, the banker said.

Tristone's study is the latest in a series of industry arguments against the royalty hike proposed last month by a government-appointed panel.


Tristone did not make their predictions or objections known to the original Royalty Commission.

Tristone Capital Inc., a brokerage that did not participate in the public review, published a lengthy response to the panel's report,



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


SEE:

Headline Says It All

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil



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Friday, October 12, 2007

Headline Says It All


And just as he was going up a wee bit in the polls the National Post ran this screaming full banner headline on their front page today;

STELMACH BLINKS FIRST
Alberta Premier Ed Stelmach has indicated he may be willing to give in to intense oil-industry pressure

Which then resulted in this:
Premier Stelmach quoted as saying he won't trounce royalty deals

Stelmach reconsidering royalty issue: report

Alberta leader wants calm Stelmach: formal royalty, tax talks ‘over,’ but ministers meet privately with investors


And while Eddies PR flack; former Calgary Herald Columnist (and scab), Tom Olson admits he wasn't at the 'private' business affair he attempts to do some damage control;

Alberta premier has not decided on royalties: aide

Alberta's premier has not ruled out any recommendations from his royalty review panel, which has urged the province to boost its take from the oil industry by C$2 billion ($2.1 billion), or 20 percent, a year, his spokesman said on Friday.

"No final decisions have been made," Tom Olsen, a spokesman for Premier Ed Stelmach, told Reuters. "The premier is committed to meeting the objective of the report. The suggestion of (panel chairman Bill) Hunter is that there was room to move on royalties. The status quo is not an option."

No royalty decision yet
Premier Ed Stelmach's office insists he has not made any final decisions on royalties, after a newspaper report today suggested he's backing away from at least one of the royalty review panel's contentious proposals.

Stelmach said a private speech Thursday to about 100 executives organized by the Harvard Business School Club in Calgary that he will "not trounce existing agreements," the National Post reported, citing sources in attendance at the event.

The government-commissioned review on energy royalties urged Stelmach against "grandfathering" - imposing new rules on higher royalties on projects that have already begun under the current royalty system.

"I can't dispute the quote," said Tom Olsen, the premier's press secretary.

Olsen said he wasn't at the speech.

David Heyman, another premier's aide who was there, said he couldn't recall any exact quotes, and no government staff recorded or took notes as Stelmach spoke.

Stelmach's remarks came to an audience member's question. "Here's what I do remember: It was a long answer. It took several minutes," Heyman said.

The aide noted that Stelmach's speaking style doesn't include "short, sharp sentences," so it might be difficult to draw conclusions based on one part of a lengthy comment.

You see he can't really think on his feet, he rambles, he is indecisive, he goes with the wind.

While the government continues to back pedal and lower expectations on the royalty issue despite it giving Ed a boost in the polls. Its the politics of lowered expectations.


No decision expected for another two weeks

With energy companies warning high royalties will trigger cutbacks and job losses, and public opinion overwhelmingly in favour of higher royalties, this is almost universally deemed the pivotal decision of Stelmach's leadership.

Energy Minister Mel Knight refused to comment on the progress of his department's study of the royalty review.

"We're working very hard to reach a balance," Knight said outside cabinet Tuesday.

Stelmach and many ministers have largely abandoned talk of Albertans' "fair share" of resource revenues -- they've instead adopted the buzzword "balance," referring to a decision that considers both the public's ownership of resources and industry's multibillion-dollar investments.

The two weeks is when Ed will do his Ralph Klein imitation and do a fireside chat on TV.
Stelmach may call late fall vote

Pass new royalty law before any hint of election: NDP

And of course the first family of the right in Alberta, the Byfield's once again have one of their scions defend Big Oil and tell us how good we have it here, hinting at the doom and gloom of the recession of the eighties if we dare ask for our 'fair share';

Fairness And Envy: Human Factors That Fuel The Royalty Debate
Nickle's Energy Group, Canada - 9 Oct 2007
By Mike Byfield
As I have said before Ed is preparing to sell us out to the oil interests.


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




SEE:

Ohhh Pulllleeeaasse

Alberta Needs A Chavez

Albertans Are Simpletons Says Government

Royalty Is NOT A Tax

Fearless Prediction Confirmed

Morons

More Shills For Big Oil

Stelmach Sells Out

King Ralph Shills For Big Oil



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