The gov't has already said it won't use this as leverage against companies drilling natural gas which is on the decline. It will largely be nailing the oilsands. The royalty program was created when oil was $20/bbl. I realize the cost of doing business in ft mac is 2-2.5 times what it is even Fox Creek and GP but they are selling for $80 plus/bbl. They are turning billion dollar profits and they are worried about having to cough up a few hundred thousand extra in royalties to the province they are taking the resources from in the first place. Damn crybabies
The govt should take more. The oil companies will stop investing for one year like they did when Kyoto was signed but then they realize they are missing out on their share of the market over a few hundred thousand dollars a years, they will pull their heads from their filthy stinking rich asses and get back to business in ALberta as usual. The market might turn down a bit. It won't even be considered a turn down as much as it will be considered a step back to reality.
|