Ed Stemlach is on Channel 52

[SeeGeeWhy]

Can those of us with access to TV give a play by play of Ed Stelmach's decision over the royalty review?

He is on channel 52.

Thanks in advance!

[Juventus3]

20% increase. Price sensitive, adjustments will be made based on the difficulty of extracting the resource.

1.4 billion by 2010

[FlamesKickAss]

http://events.onlinebroadcasting.com...2507/index.php

[Frequitude]

I can't view any video type media. Can anyone provide more updates please? As a Suncor employee, I'm very interested.

[First Lady]

or live webcast..... for those who have peasant TV


http://events.onlinebroadcasting.com...2507/index.php

[Frequitude]

Originally Posted by Juventus3

20% increase. Price sensitive, adjustments will be made based on the difficulty of extracting the resource.

1.4 billion by 2010

Does this mean he's implementing that severance tax concept that depends on the price of oil?

[Juventus3]

Originally Posted by Frequitude

Does this mean he's implementing that severance tax concept that depends on the price of oil?

I guess, although he didn't use the word severance in the coverage I saw on CBC.

[PowerPlayoffs06]

http://calsun.canoe.ca/News/Alberta/...5/4605015.html

CALGARY — Alberta Premier Ed Stelmach announces energy royalties will be increased by roughly $1.4 billion dollars, starting in 2009.

That's the whole article at the link, just FYI.

It'll be interesting to see the reaction of the oil companies. Wonder if you can buy stock in the tears of oil execs.

[Frequitude]

Originally Posted by Juventus3

I guess, although he didn't use the word severance in the coverage I saw on CBC.

Terrible idea. Partially neutralizes the potential upside reward of investing in the O&G sector.

[Frequitude]

Any word on what he's doing with the existing contracts with Suncor and Syncrude to be allowed to switch over to bitumen royalties on Jan. 1, 2009?

[mykalberta]

I didnt think he would go 2/3, I figured 1/2 + 1. Looks like in 14 months + 1 day there will be an election call.

Its lose/lose but overall descent decision by Embarassment Eddie.

[simmer2]

Sounds like he's not honouring the agreements in place with Suncor and Syncrude, they will need to adhere to the new royalty regime as well.

Increase from 1% to 9% on pre-payouts and up to 40% on post-payout depending on price.

He emphasized that there would be "stability" for investors because as commodity prices increase, the royalties would increase, but the same would happen if prices decreased; royalties would decrease.

I think this may scare investors somewhat, as many of them invest in Alberta based on increasing commodities. If the upside is limited, then the investing community won't be as keen to invest.

It does sound like most of the money is coming from Oil Sands though.

[flambers]

Mean while Oil companies in Calgary have told their employee's if the Alberta Government puts in the Royalities layoffs will need to occur.....

...........of course that is a rumour.....

[PowerPlayoffs06]

http://calsun.canoe.ca/News/Alberta/...5/4605015.html

Another article.

[First Lady]

Originally Posted by Frequitude

Any word on what he's doing with the existing contracts with Suncor and Syncrude to be allowed to switch over to bitumen royalties on Jan. 1, 2009?

No grandfathering will be implemented for existing oil sands projects. The government is in discussions with Syncrude and Suncor, whose Crown agreements expire in 2016, to transition to the new oil sands royalty regime.

From the media release:

http://www.alberta.ca/home/NewsFrame...DC70214D2.html

[Thunderball]

You can bet your ass there will be layoffs. Whether the oilpatch needs to or not, they are going to send a real message to the government.

I think this is a deplorable situation of which the victims will be individuals.

The government and the big oil companies are like two pigs with lipstick chomping at a trough. The government didn't do this cause they need infrastructure money... they got it. This was political. This was also to take control of the economy to a degree and prematurely cool it. The Oil companies are teflon... its not a lot of money to them, but its going to cost them anyway. They'll cut projects and staff and make damn sure that the province regrets this.

Way to go Stelmach.

[Juventus3]

His true public speaking ability (or lack there of) became apparent today at the PC. He was uming and awing the entire time at the mic. Whatever happened to political leaders with a bit of charisma?

[llama64]

Originally Posted by Juventus3

His true public speaking ability (or lack there of) became apparent today at the PC. He was uming and awing the entire time at the mic. Whatever happened to political leaders with a bit of charisma?

Canadians don't like them?

[Slava]

The oil companies don't have a reason to lay off employees....oil prices are at historical highs, and most companies make piles of money with oil at $50/barrel. How they can justify lay-offs is disgraceful.

[peter12]

Originally Posted by llama64

Canadians don't like them?

What was that Trudeau guy all about? Or Mulroney? Or Chretien?