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Originally Posted by Bring_Back_Shantz
But why was it a dumb move?
Do you know what the actual result/changes to the royalty structure actually were and why it was a pretty positive result for everyone involved, and how we reaped the benefits of that when prices were high, and when prices tanked during the pandemic? And how we are reaping those benefits now? More importantly how they UCP is taking credit for that to claim they are somehow the greatest example of financial acumen in the country?
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There wasn't much change
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That's why industry had expected this review would lead to a rate hike. But instead, the panel concluded Alberta's rates are comparable to other jurisdictions.
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The oilsands, which contribute the most in royalties to provincial coffers, will be unaffected as rates will remain the same.
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Royalty review's key conclusions
The key points of the report are:
Albertans are receiving their fair share.
Oilsands royalties won't change.
Conventional oil and gas wells will pay a minimum royalty of five per cent of revenue until they have recovered costs.
System will reward the most efficient drillers.
Alberta markets will be developed for the use of natural gas.
Alberta government accepts the report and is expected to adopt its recommendations this spring.
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The biggest changes were to NG but that really didn't matter as long as Canadian export is limited to the US.
The biggest benefit of the review is that Albertans can point to it to show that Alberta is getting a good share of resource profits whenever the Rest of Canada tries to use the argument that oil and gas profits only go to the private sector.
https://www.cbc.ca/news/canada/calga...nges-1.3424556