Quote:
Originally Posted by Makarov
The only thing that you are omitting however is the fact that Alberta's petroleum reserves are finite. Once they're gone, they're gone. So its a delicate balance between maximizing production and maximizing benefit to Albertans of every last drop of oil.
I don't purport to be any sort of expert on royalty structures, but it is important that we maximize benefit to Albertans (and Canadians) of this limited resource.
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Bitumen will be absolutely worthless in 100 years. It's the most marginal barrell of production in the world. Meaning it's the least economic, and the first to be displaced in lower price scenarios. We have much more than 100 years worth of Bitumen at
any development schedule. Higher royalties will leave more of it in the ground forever at a financial benefit to no one either government or industry. It's not like a piggy bank where we can choose when to make a withdrawl.