Ed blinks... Alberta rejigs royalty regime

[calculoso]

http://ctv2.theglobeandmail.com/serv...N/ctv-business

The Alberta government has altered its royalty rates for companies drilling new oil or gas wells after Jan. 1, a move that will cost the province as much as $1.8 billion over the next five years.

In a response to the slowdown in oil and gas drilling, companies drilling new wells will have a one-time option of choosing new transitional royalty rates instead of the new framework set to come into effect at the beginning of the year.

All companies will shift to the new royalty framework by Jan. 1, 2014.

Mr. Stelmach noted that the break only goes to companies that are drilling new wells. “Nothing is expended in this program until a drill bit hits the ground.”

[browna]

But, is it too late for 2009 drilling program? A lot of companies have set thier captial budgets up already...although those can be probably modified hurredly before year end.

[Ethaniel]

he is definitely cutting this change of heart close.

[Ozy_Flame]

Not good news for the environment, but as usual, green politics comes second to big business in the oil industry. At least it means jobs might be more secure.

[Incinerator]

A little too late Ed, it's like burning down half the house before calling the fire truck in, should've never lit the match in the first place.

[burn_this_city]

Originally Posted by Ozy_Flame

Not good news for the environment, but as usual, green politics comes second to big business in the oil industry. At least it means jobs might be more secure.

Last I checked natural gas wasnt exactly dirty fuel...

[First Lady]

Originally Posted by Incinerator

A little too late Ed, it's like burning down half the house before calling the fire truck in, should've never lit the match in the first place.

I somewhat agree. We permanently laid of our three staff in March.

One moved back east.

Another is now "underemployed"; not using his skills.

The third is working in SK.

We are in process of selling off our equipment.

It is too late for us; hopefully not for others.

[First Lady]

Originally Posted by Ozy_Flame

Not good news for the environment, but as usual, green politics comes second to big business in the oil industry. At least it means jobs might be more secure.

Oh please. Have you ever worked in the field? Do you have any idea what extents they go to, to protect the environment?

[Ozy_Flame]

Originally Posted by First Lady

Oh please. Have you ever worked in the field? Do you have any idea what extents they go to, to protect the environment?

Yes, I have worked in the oil industry. And promptly left.

And the most effective, cost-efficient method to protecting the environment is not even drilling in the first place.

End of story.

[Flames in 07]

Originally Posted by Ozy_Flame

Yes, I have worked in the oil industry. And promptly left.

And the most effective, cost-efficient method to protecting the environment is not even drilling in the first place.

End of story.

Just curious. Is your heater on in your house right now? How about light?

[Thunderball]

Maybe enough to salvage Q3 2009 drilling programs, but the damage is done. The Oilpatch is typically 6 months to a year behind the trends.

The Oilpatch has nothing on the pollution that agriculture (you'd be shocked and appalled at some of the things farmers do), forestry, coal and manufacturing are allowed to get away with per capita. The patch also pays very dearly for what they can't fix, the others sure don't.

[JD]

Without the benefits of the stats, I'm thinking the biggest CO2 emissions in Alberta are from coal-fired electricity generation and cement manufacturing. People love to point their fingers at the oil sands, perhaps rightfully so in some cases, but they're just an easy target.

The oil industry gets a hard time, but even in my relatively short career I've seen major improvements in environmental consideration. But I guess people still need to be able to sit in their warm homes and cars and point their fingers at someone for the destruction of humankind.

[First Lady]

Originally Posted by Ozy_Flame

Yes, I have worked in the oil industry. And promptly left.

And the most effective, cost-efficient method to protecting the environment is not even drilling in the first place.

End of story.

So you don't own or use anything that is made of plastic?

You don't have any "wrinkle free" clothing? Everything you wear is made of 100% cotton or silk?

You burn trees to heat your home?

What are your bike tires made of ?

Do you have hamsters on wheels generating power for your computer?

None of your walls or furniture is painted?

Lastly, you don't use toothpaste; perhaps you use baking soda; but what is your toothbrush made of ?

[Ozy_Flame]

Originally Posted by First Lady

So you don't own or use anything that is made of plastic?

You don't have any "wrinkle free" clothing? Everything you wear is made of 100% cotton or silk?

You burn trees to heat your home?

What are your bike tires made of ?

Do you have hamsters on wheels generating power for your computer?

None of your walls or furniture is painted?

Lastly, you don't use toothpaste; perhaps you use baking soda; but what is your toothbrush made of ?

Wow, if I didn't think you were a borderline creepy internet stalker before, now you've just confirmed what I already knew!

[First Lady]

Originally Posted by Ozy_Flame

Wow, if I didn't think you were a borderline creepy internet stalker before, now you've just confirmed what I already knew!

LOL. Hey, it is your coworkers who are creeping my blog 24 hrs a day. Who's stalking whom?

Seriously though; I just know if you are that anal about the oil industry you probably are living the typical granola cruncher lifestyle.

Ever wonder where the plastic for your Starbuck lids come from?

[Muta]

Originally Posted by First Lady

Seriously though; I just know if you are that anal about the oil industry you probably are living the typical granola cruncher lifestyle.

What? He simply implied that more drilling due to lowered royalty rates could harm the environment. I fail to see how more drilling doesn't do that.

And, that's quite the sweeping generalization you made there. Because he worked in the oil industry and left, he's now a 'granola cruncher'? Laughable.

[Ozy_Flame]

Originally Posted by First Lady

LOL. Hey, it is your coworkers who are creeping my blog 24 hrs a day. Who's stalking whom?

Seriously though; I just know if you are that anal about the oil industry you probably are living the typical granola cruncher lifestyle.

Ever wonder where the plastic for your Starbuck lids come from?

Yeah, that's me - Ozy_Flame, your 21st century hippie. If I'm not out protesting wars and growing organic fruit, I'm bathing in hemp oil and worshiping hair grease....

Pretty baseless comment.

[flamesfever]

I think the government would have been much smarter to admit the new royalty regime was too excessive and adjust it accordingly to get the industry back to the previous level of drilling in Alberta. This would have restored the sense of trust between the parties, and given the industry the long range fiscal regime they need to adequately drill and maintain the diminishing reserves.

[First Lady]

I was just wondering how long it would be before you showed up.... and there you are.

Originally Posted by Muta

What? He simply implied that more drilling due to lowered royalty rates could harm the environment. I fail to see how more drilling doesn't do that.

Your failure to see what the industry does to protect, perserve and restore the environment, only illustrates that you too do not have any hands on experience in the field.

And, that's quite the sweeping generalization you made there. Because he worked in the oil industry and left, he's now a 'granola cruncher'? Laughable.

It has been my experience that people who make statements like "... not even drilling in the first place."; fall into the granola crowd.

[First Lady]

Originally Posted by Ozy_Flame

Yeah, that's me - Ozy_Flame, your 21st century hippie. If I'm not out protesting wars and growing organic fruit, I'm bathing in hemp oil and worshiping hair grease....

Pretty baseless comment.

Geez, you sound like you are offended by the comment. It was not meant to be offensive.

Some of my best friends are granola crunchers; even some of my family. They are proud of what they do to help our environment; you should be too.