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Originally Posted by firebug
On another note, royalty review. These are actually far more material to corporate budgeting issues than the corporate tax rate. What confuses me is that industry is failing to take advantage of these low prices to renegotiate these in an environment that will be more sympathetic to them. A royalty review now doesn't scare me (in fact the sooner the better) an NDP royalty review at $100 WTI and $5 AECO is what would really make me terrified. Industry and conservative pundits trying to delay this run the risk of having that delay bite them badly in the ass.
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I don't think industry has much say in the review outcome. And the NDP is most definitely planning for $100 oil as much as they are the current price. The thing that bugs me most is that it really doesn't matter to the NDP what is happening with oil prices or the economy in general. They're going to do what they do in any condition. This is from their platform....
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the people of Alberta as a whole are deprived of much of the benefit of our own resources....Through these policies, we’ll implement competitive, realistic royalty rates as prices rise, to ensure full and fair value for Albertans as the owners of the resources
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So the idea that any of this is up for discussion is not reality. They want more money and that's about it.