Wednesday, October 17, 2007

More False Assumptions Over Alberta's Royalty Review Report.

Interesting piece in the National Post suggesting the Canadian oil and gas stocks are not “surging” as they apparently are in the US. The blaming is being put on the “Our Fair Share” Royalty Review, in part.. It also mentions that the loonies’ rapid rise (more correctly put – the US dollars significant decline) in value being up 20% in 2007 already and breaking parity with the US may have something to do with this.

The Canadian energy sector stock prices have been at or near record price levels before and after the royalty review report. Interesting today that Suncor is trading today over $103.00 – over the record high of $100.00 it enjoyed just before the Royalty Review came out.

People are entitled to their own opinions – they are not entitled to their own facts. In fairness, things are moving pretty quickly in the world these days and everything is so interlinked it is difficult to isolate causes and effects.

That said, it is at best a stretch to blame some minor stock volatility on a review report that has not been commented on by the government yet. Just more scaremongering and political positioning as I see it.