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Originally Posted by Table 5
Personally, I think this is part of the problem...that most people only look at the current situation, and want to make decisions based on that particular circumstance only. In a few years, when the energy sector will probably be riding high again, and everyone is getting giant bonus checks, and spending like its going out of style...is that a good time to re-assess things? What about in another decade when there's another down-turn? Do you then change your thinking again?
This type of industry will always yo-yo, so how about looking at things a little long-term, and making some decisions based on that? Let's have a master plan that takes into account what happens to this province in 25-50 years. What's the best situation for our children and grandchildren, and not just for our bank account right this second.
Me, I'd like to see a government that sets the tone for the next generation. One that looks to support and energize the O/G economy, but one that also understands that there's a strong societal push around the world to move away from oil-based resources, and that we may not be able to solely rely on oil/gas a few decades from now. Id like to see a government at least consider what happens if things never truly recover or if there's a malaise for a decade. I'd also like to see a government have a budget that doesn't require high oil revenues to fund basic services.
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Personally, I feel that the days of "spending like it's going out of style" are gone. While I'm not going to project what the price of oil is 3 years from now, I certainly expect it to be a price where oil companies need to be competitive. Knowing this, a royalty structure, like the one in place now, will favour the patch and continue to attract investment.
As has been stated many times, a small piece of a big pie is still larger than a big piece of a small pie.
I just pray that if the NDP win this election and review the royalty program they do it with the industry together. At least let the guys setting budgets have a say in what they need from a royalty persepective to stay competitive.