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Originally Posted by burn_this_city
Well considering outside the oilsands the majority of production is natural gas, which its not exactly trading at an all time high.. Plus the cost pressures already seen in the industry province wide will only be increased based on the new structure... That coupled with the cosmic rise in the canadian dollar, we have already seen a large errosion of the margins these companies were seeing last year.. Hence the drop in profits, which might I add are typically re-invested into the resource base.. The piles of money that you speak of don't really exist.. 1.7 billion divided by 2 million people works out to $85 each.. I hope this is really worth it in the end... 
Edit: I just wanted to add that I think these new royalties are workable.. It just depends how high the canadian dollar rises and how much the price of oil fluctuates.. I don't see the massive layoffs happening with the sliding royalty system.. Just slower investment over the long term.. |
Well, its a little better than that...
$1.4 billion divided by 3.25 million ends up being about $430 a head. About the same as the Ralphbucks. Which backs up your point still... is this really worth the headaches its gonna cause if they were just giving the equivalent away not even two years ago?
It won't be massive, catastrophic layoffs, but mark my words, a lot of people are going to lose their jobs and many projects are not going ahead. Less projects = less payouts. In the end, even farmers, ranchers and other landowners are going to suffer a little.