Quote:
Originally Posted by Bring_Back_Shantz
The several week delay in the royalty review isn't the problem.
The problem is that when commodity prices are coming down daily, and no one knows if/when we'll see a recovery, starting a royalty review is a terrible idea.
Right now there are enough variables that make investing in Oil and Gas risky in any jurisdiction. To add another level of uncertainly, and then to delay it not once, but twice, is adding unnecessary risk at a time when you should be offering stability in an effort to slow the bleeding.
I can tell you first hand that companies are in fact delaying decision on capital in Alberta, which means they are spending it elsewhere in the meantime. That's capital/jobs that would have been mighty useful the over the last year.
It's not a difference of opinion, it's a fact that what the NDP has done has hindered capital allocation in the province. The extent of it is pretty difficult to quantify exactly, but the fact is that NDP policy has directly contributed to worsening an already difficult situation.
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Problem is, this is Alberta and people have no trust in any government other that the PCs. A review doesn't have to be a bad thing. It's likely that nothing changes.
And really, the uncertainty is the reason for capital withdrawal? The $30 WTI has 10 fold the impact. Just trying to keep things in perspective. In no way am I suggesting that the delays are a good thing.Or that the NDP are not gonna mess up etc. But they are not the reason why there is capital withdrawal right now. These decisions are not being made on a whim...