B.C. Trumps Alberta [in Oil & Gas]

[OracleOfCalgary]

http://www.nationalpost.com/rss/Story.html?id=166999


Dollar value of oil and gas drilling rights sold in 2007
British Columbia $1.05B
Alberta $673M
[...]
Alberta's numbers, by contrast, have collapsed. The province, which is at war with its oil industry over a 20% average increase in royalties effective in 2009, collected $673-million this year from the sale of conventional oil and gas rights, down from $1.47-billion last year, and$650-million from the sale of oilsands rights, down from$1.96-billion last year.


Thanks Ed!

[burn_this_city]

Geee I coulda swore people in the patch said this might happen..

[maverickeastwood]

Thats awesome...good to see the homeland doing better

[longsuffering]

Originally Posted by burn_this_city

Geee I coulda swore people in the patch said this might happen..

The sky is falling ....

[maverickeastwood]

What is the total resource revenue of each province (oil & gas, forestry, mining, etc.)? That would be an interesting stat.

[guzzy]

I think it has a lot more to do with exploration in BC than it does the royalty review. Most of Alberta's big gas deposits have been located and drilled over the last 50 years. BC is relatively new territory with the new technologies in directional drilling etc.

[maverickeastwood]

BC had a hard 10 year haul with the NDP (I never voted for them, Liberals not much better IMO)) and with the current market conditions are now able to capitalize. The Peace region of the province is going through the same people crunch that Alberta is. With the forest industry in a downward spiral and people out of work, they may find opportunity in the North. Areas like Grande Prairie is taking advantage because of there expertise and being in the vicinity. Some of the problems that are encountered is geography and highway redtape.

[photon]

If Saskabush and Manitoba would get their acts together this could happen for them too.

Worldwide though the amount of oil from conventional sources is decreasing and unconventional (like the oil sands) is increasing.

There's $150 billion of oil sands development in Alberta ongoing in the next decade, how much does this impact that?

[burn_this_city]

Originally Posted by longsuffering

The sky is falling ....

Everyone said this would happen, honest Ed just accelerated things slightly... Natural gas is so depressed right now, we need a really cold winter to deplete the record high inventory. If not, land sales and drilling in this province is due for a long hangover. Good thing all my chick friends recently got Land & Legal certificates, they should make for good drink coasters.

[Julio]

Originally Posted by photon

If Saskabush and Manitoba would get their acts together this could happen for them too.

Worldwide though the amount of oil from conventional sources is decreasing and unconventional (like the oil sands) is increasing.

There's $150 billion of oil sands development in Alberta ongoing in the next decade, how much does this impact that?

Pho, if you read the whole article it mentions that Sask had record land sales $ as well this year, although not from the gas sales mentioned for BC, but from the Bakken oil play in the south east of the province. Sask. has been doing pretty well the past couple of years...they even have had more people moving from Alberta to there than the opposite, for the first time in a generation or so.
As for Manitoba? They do have a tiny oil industry, and Bakken does go into Manitoba a bit, but it doesn't appear they will ever have a large oil industry. I don't know how worried the Man gov't is about that though, seeing as how any revenue they got from O and G would just reduce the huge equalzation $ they get from Ottawa (They get more $ from Ottawa as a % of their total revenues than Newfoundland)

[Addick]

Originally Posted by longsuffering

The sky is falling ....

But yet all the Oil and Gas is still in the ground, and will remain there when all the O&G is extracted from places with lower Royalties. People in the patch said that the demand would go down for Alberta O&G but economists said that once the global supply goes down you can bet your ass the the demand for Alberta O&G will rocket right back up. Why sell ourselves short? Is it a race to get all the O&G out of the ground?

[Teh_Bandwagoner]

First of all, the O&G industry has been slowing down long before the new royalty program was announced, with natural gas hovering around that $7-$8 range. Royalties certainly don't help, but it's not the sole reason for the decline.

Second of all, it's such a fad to blame Ed. Yes he changed the royalty program, but that was part of his platform prior to being voted in. And guess who voted him in? I say Albertan's are just as much at fault for the new royalty regime as much as Ed. The irony in that is that his vote came from rural areas, and that they will likely to be the first to be affected by any royalty fallout.

[truth14]

I think it has a lot more to do with exploration in BC than it does the royalty review. Most of Alberta's big gas deposits have been located and drilled over the last 50 years. BC is relatively new territory with the new technologies in directional drilling etc.

Ding Ding Ding.

That's exactly what is happening.

[OracleOfCalgary]

Originally Posted by truth14

Ding Ding Ding.

That's exactly what is happening.

Actually, no... I'll agree that it's too early to make any conclusions about the royalty review... however, BC surpassing Alberta has at least as much (or more) to do with weakness in Alberta exploration activity as it does in new developments in BC.

e.g.

Alberta's numbers, by contrast, have collapsed. The province, which is at war with its oil industry over a 20% average increase in royalties effective in 2009, collected $673-million this year from the sale of conventional oil and gas rights, down from $1.47-billion last year, and $650-million from the sale of oilsands rights, down from $1.96-billion last year.

That's a pretty major decline. Not the best time bring in a new royalty structure.

[Reaper]

Time to phone in to work and tell them I can't come in because the sky is falling.

[OracleOfCalgary]

Originally Posted by Reaper

Time to phone in to work and tell them I can't come in because the sky is falling.

No need, your pink slip is being faxed to you in the morning.

[Reaper]

Originally Posted by OracleOfCalgary

No need, your pink slip is being faxed to you in the morning.

Yeah, right after those $60 Million projects complete themselves...

[crazylegs]

Originally Posted by OracleOfCalgary

Actually, no... I'll agree that it's too early to make any conclusions about the royalty review... however, BC surpassing Alberta has at least as much (or more) to do with weakness in Alberta exploration activity as it does in new developments in BC.

e.g.

Alberta's numbers, by contrast, have collapsed. The province, which is at war with its oil industry over a 20% average increase in royalties effective in 2009, collected $673-million this year from the sale of conventional oil and gas rights, down from $1.47-billion last year, and $650-million from the sale of oilsands rights, down from $1.96-billion last year.

That's a pretty major decline. Not the best time bring in a new royalty structure.

I would bet that decline was partially based on the royalty review occuring. The Oil and Gas industry is/was hesitant to undertake any project with not knowing what environment they are playing in. The sales will rebound next year. I would be more worried if sales since the announcement were down significantly, and even then this would be more the oil and gas industry giving it to the gov't.

[Dan02]

Originally Posted by Teh_Bandwagoner

Second of all, it's such a fad to blame Ed. Yes he changed the royalty program, but that was part of his platform prior to being voted in. And guess who voted him in? I say Albertan's are just as much at fault for the new royalty regime as much as Ed.

Ed has never been elected by the general population....