I realize that there is another thread on this, but the discussion about royalties from gas vs. oil that culminated in the graph above by crazy_eoj just accentuated the wanton lack of perspective on the part of our government.
The gas royalties will remain somewhat constant, because a large portion of that production has been in place and stable for years. The royalties that we receive for oil are extremely low considering what other jurisdictions are demanding of the same companies worldwide.
We have a royalty structure already in place that is designed to make sure that we are competitive and fair in our demand for royalties, but there is a blind eye and disregard on the part of the government to make sure that loopholes to avoid paying the agreed upon amount are closed as they appear.
And now talk of a PST? Give me a break.
(PS. There is a hockey game on, and this is a sideline distraction argument for me, so anyone who is interested can look online for the intended royalty structure, or check out previous threads on the subject.)
By the time that the oilsands royalty agreements were put in place til now, our Heritage Fund should have been reaching Norway levels. We could then almost equal our 'current' income from oil and gas in being a loans banker for the rest of Canada.
PST. Makes me wish that we lived in a democratic province. Almost.
|