Quote:
Originally Posted by Harry Lime
No, I didn't compare Venezuela's oil production and Alberta's at all. I referenced that Venezuela raised their royalty rate without consequence, and the gulf States followed suit three years later. The point I was trying to make was that they were hearing the same rumbling of doom that we hear now, and nothing came of it.
Also, oil companies won't pull out and abandon any profit margin, as long as there is profit. That would make no sense to do so.
The comparison to Norway is that they continually work at finding a balance between what the industry can handle and what can be drawn in royalty. Alberta doesn't even try. Norway also banks all of the profit. The amount of royalty that Alberta sees will always be far below that of Norway, but our production is of a much higher volume, and the royalty as it is now is criminally low because the definition of 'payout' isn't concrete, or sensible.
I must admit, that I tend to comment on things here in a manner that is more in line with talking at a pub vs. actually delving into issues with any academic flair. It wouldn't surprise me at all if half of what I say sounds like it's in German or something, so I hope that this clarifies a little.
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Venezuela's management of their oil industry has been an unmitigated disaster. Production consistently dropping even though the resource base is enormous. Partners outright walking away from agreements. Not to mention the entire society is on the verge of collapse because of socialist ideals gone wrong and now without funding.
Any comparison to Alberta is nearly laughable.