Quote:
Originally Posted by polak
Show me one company that packs up and leaves when there is profit to be made? We're not reducing revenue until oil is at a price where these companies are making money hand over fist.
This isn't retail where you can open up shop anywhere you like. There is Oil in the ground to be exploited. I don't think anyone will leave because their profits are skimmed by a small precentage once they get to a level that is well over healty.
Pandering to the patch is exactly how we got in this "eggs in one basket" boat.
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What you are suggesting sounds an awful lot like the NEP from the early 1980's. Many companies packed up and left, and the result was unemployment and a real estate crash in Alberta. I'm not saying our current royalty regime is perfect, but making changes based on arbitrary numbers, like $90/bbl because 'companies are making money hand over fist' just isn't good business. Oil companies will go where they can get the best rate of return. Some jurisdictions can get away with much higher taxes and royalties because they have more prolific oil deposits and lower operating costs.