'Big Oil' can't threat

[mrdeeds]

Originally Posted by First Lady

Oh, come on... we're not that scary....

A little opposition from the right would be healthy...imo

I agree completely, the more voices heard in Alberta's political landscape the better. The PC's have had it too good for far too long.

[redforever]

Originally Posted by vodafone_b

^ What about venezuela? I see them as a big competitive threat

They have nationalized their oil industry and have made it very hard for outside companies to work there anymore.

[Reggie Dunlop]

Originally Posted by First Lady

Oh, come on... we're not that scary....

Personally, I think you are. I consider the Alliance and their far-right ilk to be fascists at worst and amusing parlor libertarians at their most benign. They come and go as the Chinooks blow and constantly reinvent themselves and I don't think that'll ever change.

The Oil Industry cries too much. Anyone with a long memory in this province knows there's been far worse for them to sob over. Good on Stelmach.

[First Lady]

Originally Posted by Slava

A little opposition is healthy, I agree with you on that. But more to the right? Stelmach is pretty right wing himself. A lot of Morton supporters had him as their second choice because of his socially conservative values.

We need more opposition to the left....that is the point of opposition, not to support the things that are already going on!

Things already going on??? We have bloated budgets, over spending and zero savings..... today we got higher gouging of business....that could harm the economy.

The PC's have been moving more and more to the centre... not the right.
There is no fiscal responsibility being shown by the current government. The Liberals and NDP have done there job and pushed them to the centre...

Why do think the Liberals have not yet made their response to Stelmach?
Because two days ago they were calling for a 20% royalty increase... and guess what .... they got it.

[Hakan]

When Andre Plourd chair of the Dept. of Economics at U of A and a noted conservative is shocked at the state of royalty structure in Alberta and recommends increases of royalties more than double what they currently are then there is a problem.

Sometimes I just don't get Calgarians.

[Slava]

Originally Posted by First Lady

Things already going on??? We have bloated budgets, over spending and zero savings..... today we got higher gouging of business....that could harm the economy.

The PC's have been moving more and more to the centre... not the right.
There is no fiscal responsibility being shown by the current government. The Liberals and NDP have done there job and pushed them to the centre...

Why do think the Liberals have not yet made their response to Stelmach?
Because two days ago they were calling for a 20% royalty increase... and guess what .... they got it.

No, the Liberals were calling for the full 26% increase. Stelmach doesn't have the stones to stand up and do the right thing here though, even after years of under-collecting!

Nothing will harm the economy more than a xenophobic, right wing agenda. You won't attract skilled workers with new ideas here, which is really what the economy needs to grow!

[mykalberta]

I guess we will soon see if spending by companies decrease because of this decision or if it was all BS. I will reserve judgement until next budget season.

[Hakan]

The only way that this will hurt the Alberta economy in aggregate (and not just some of the whining O&G employees in this thread) is if oil prices experience a sustained decrease. If oil prices continue to rise then net investment will not be hurt and will probably go up.

Now who among the piss and moaners in this thread want to make the bet that oil prices will be going down in the next five years?

Didn't think so.

[automaton 3]

I don't understand the sky is falling attitude from some either. The boom can't and won't last forever...maybe some posters haven't seen a down-time in the economy yet?

It seems like not very long ago (late 90's?) where downtown oil companies were laying staff off like crazy when the price of oil went in the tank. I remember one of my wife's friends (I think she worked at BP at the time) telling us how they issued everyone a blue or red card or something like that...IIRC those with the red card were sent back to work, those with the blue card were marched into a huge conference room and offered "employment counselling" - and were sent packing just like that.

I was also thinking about some of the people I know who work on rigs who have seen some ups and downs in the past, but went crazy this time buying fancy new trucks and spent a fortune jacking them up, bought boats, quads and trailers - and some are now in trouble. I guess hindsight is always 20/20 but its a cycle...it doesn't last forever.

[redforever]

Originally Posted by Hakan

The only way that this will hurt the Alberta economy in aggregate (and not just some of the whining O&G employees in this thread) is if oil prices experience a sustained decrease. If oil prices continue to rise then net investment will not be hurt and will probably go up.

Now who among the piss and moaners in this thread want to make the bet that oil prices will be going down in the next five years?

Didn't think so.

the new royalty regime is tied to the price of oil. It will no longer be a stationary royalty rate.

[First Lady]

Originally Posted by Slava

No, the Liberals were calling for the full 26% increase. Stelmach doesn't have the stones to stand up and do the right thing here though, even after years of under-collecting!

Can you source that 26%? This is what I am going by:
http://www.theglobeandmail.com/servlet/story/RTGAM.20071023.wliberalroyalties1023/BNStory/energy/home

The Alberta Liberals, the opposition to the governing Conservatives, want royalties and taxes collected from the energy business to rise 20 per cent, as recommended by an expert but controversial review panel that in September concluded the province has been missing out on billions of dollars.

Mr. Taft, at a news conference set for 11:30 a.m. MDT, plans to say the 20-per-cent increase is “non-negotiable.” He has additional calls for royalties to “encourage environment sustainability” and support economic diversification, planning to release a video online Tuesday afternoon outlining his positions.

And this morning on Rutherford he said "Stelmach's 20% is not the same as the Liberal 20%" He more or less admitted that they got what they wanted, but takes issue now with the implementation date. Which, fair enough he has a point there.

Nothing will harm the economy more than a xenophobic, right wing agenda. You won't attract skilled workers with new ideas here, which is really what the economy needs to grow!

Xenophobic? You feel the term applies to the Alberta Alliance Party. How have you come to that opinion?

[burn_this_city]

Originally Posted by Hakan

The only way that this will hurt the Alberta economy in aggregate (and not just some of the whining O&G employees in this thread) is if oil prices experience a sustained decrease. If oil prices continue to rise then net investment will not be hurt and will probably go up.

Now who among the piss and moaners in this thread want to make the bet that oil prices will be going down in the next five years?

Didn't think so.

Just wait two years, when the extra refining capacity currently under construction worldwide comes online. You will see a substantial decrease in the price of oil. Current high prices are not due to a lack of crude, but rather a lack of refining capacity to produce gasoline and distillates. OPEC and other petroleum organizations have stated all along that this was why the price of oil remains so high.

[cal_guy]

Originally Posted by burn_this_city

Just wait two years, when the extra refining capacity currently under construction worldwide comes online. You will see a substantial decrease in the price of oil. Current high prices are not due to a lack of crude, but rather a lack of refining capacity to produce gasoline and distillates. OPEC and other petroleum organizations have stated all along that this was why the price of oil remains so high.

I'm betting that the oil prices will increase because of the new refining capacity instead of falling. That's because today's refineries are ideally suited for light crude resulting a low supply and high demand. In contrast heavy crude because of the limited refining capacity has resulted in high supply and low demand resulting in a extreme spread between light and heavy oil. The new refineries will increase the demand of heavy oil and reduce the supply available driving the price of heavy oil up. And since Alberta's oil production is heavy good times are ahead.

[Salisbury]

This whole issue for Stlemach was like standing over a snake, if he stood on it, it would bite him, and if he didn't it still would bite. I'd bet that we wont see big oil pulling out of Alberta, in the near future, AND I'd bet that there will still be record profits again in 2009. And, hey, if the economy cools off, who cares, we cant find employees; they are like "hens teeth". Try get a small contractor to come to your house for minor renos, line ups at all the retailers for service...... the list goes on and on. The only reservation I have about this, is lets hope that something usefull is done with the extra revenue and it is not pissed away like a silly $400 payment to every Albertan!