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Originally Posted by Flames in 07
got it, I just learned two things.
1) you have very little idea of how the oil gas industry works (well I actually learned that a few posts ago, but its confirmed here)
2) you have no desire to learn anything. you are here to teach Alberta how the world works even if most of what you say has no basis in reality. No need to be encumbered with facts.
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Well thanks for the ad hominem attack. I have an innate desire to learn, which is why I'm trying to get in a debate. I provide conference proceedings from Alberta's royalty review forum and their findings. You have provided anecdotal evidence.
Seriously, where do you get off saying I have no basis in reality? What makes you any more qualified to talk about these issues by virtue of your simple disagreement with me?
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Oil sands producion hasn't declined but the cost to develop other, largely gas fields has change from economic to prohibative. And although nat gas and liquids doesn't get the same pub in papers where you are from it is more important to the ab economy. Further Oilsands development is a franction of overall oil production, there are about 30 grades of oil in AB and oilsands grades make up about 10 of them. On average they are bigger streams but again it is the smaller fields that employ a greater proportion of the people. IIRC oilsands projects in particular have special breaks in this royalty regime so by showing us development in Ft Mac to proove the new royalty structure works just exposes how much you don't know.
And btw the value shown to albertians is only there if business is allowed to function, and run their businesses.
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This is largely an incoherent rambling and doesn't even address my arguement. The new royalty structure makes the cost of business more expensive, yes. It is the mandate of the Government of Alberta to ensure that its resources are used at economically and socially optimum levels and it was clear that under the previous royalty regime, that wasn't the case.
I stated that oil companies were receving 14 more percentage points in rents since 1997. Don't get me wrong oil companies deserve their returns, but an appropriate return on investment is generally considered to be 5 to 10%. Oil companies were receving well above this rate. These are rents which should go to the people of Alberta. How is this even arguable?