Quote:
Originally Posted by Harry Lime
In October of 2004, Venezuela raised their royalty rate from under 1% to 16.7%. There was much hand ringing, and threats that future production would be pulled, industry would suffer.
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Wait, did you just compare Venezuela's oil production with Alberta's oil production and try to make them equivalent?
Oil production costs are lower in Venezuela, they can take the royalty hit on profits a lot easier. Cut the smaller profits to be had in Alberta, and companies will pull out a lot faster.
That's almost as dishonest as trying to compare Norway's royalties with Alberta's, neglecting to mention that oil production in Norway is dominated by Statoil, and that the majority of Statoil is owned by the Norwegian government.