Quote:
Originally Posted by BlackArcher101
Smoke and mirrors show.... we'll end up making it stable by asking for a flat payment which will be paid no matter the price of oil, but the companies will burden the volatility. What the conservatives won't tell you is the new payment will be lower than the average, so the companies will just pocket the rewards during high oil prices.
I know, unlikely, but man nothing surprises me anymore with this government.
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I don’t think industry would want that though. For sure the smaller companies prefer the lower royalty at low price because it reduces break even and keeps debt servicing payments and keeps profit to debt ratio style covenants from triggering. The big guys might want an absolute lower rate but even for them maintaining year over dividends is important
I can’t see industry lobbying like that and the province can’t get stability without raising the bottom rate. So unless stability really doesn’t matter and it’s a pure gift to industry then I think this is a competence thing.