Quote:
Originally Posted by Brewmaster
This is the type of idea that could potentially set the Canadian oil patch back decades. Provincial oil & gas fiscal regimes need to be competitive with the rest of the world or corporations will simply take their money elsewhere. The provincial royalty regimes in place today are carefully calculated to take a larger royalty on higher rate wells and increasing oil prices while remaining competitive with other provinces and states. Getting too greedy will send the oil companies to more competitive regimes. See the Stelmach royalty review in Alberta in 2007 for an example. Distributing oil and gas revenue directly to non oil and gas companies is essentially taking it right out of the pocket of the government and the tax payers.
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Norway taxes energy industry profits at 80%.
Alberta's royalty rates are downright generous in comparison, let alone 'competitive'.