Quote:
Originally Posted by Cowboy89
2009 and 2010 is the foreseeable future and it sure as hell won't be even close to $150/bbl anytime soon. So no it's not like oil prices can only go up! In a $45/bbl world hiking royalties just makes tough times tougher. Ripping up old agreements compromises business climate and that was exactly what that clip alluded to. Even if prices recovered overnight capital wouldn't return as fast due to the risk of government policy changing on a whim. Had there been no royalty review the low price itself would have slowed development down enough to avoid unsustainable inflation. Just yesterday Alberta's inflation rate was quoted as 2.4 down .2 from the national average. There was never a need for public policy hacks to draft up a royalty increase in the first place. The net result is less government revenue and less business going on. Hurray! congrats idiots! EPIC FAIL no one's better off.
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Correct me if I'm wrong, but is it not likely that we're in for a vicious oil spike in the near future with current trading well below what is considered to be a market range. There's only so much oil/gas consumption that is discretionary.
I suppose we can't blame Farmer Ed for that... but we can definitely blame him for the exacerbation of instability in Alberta.