I have been harping about getting your views on how much rent Albertans should change for access to the oil sands and other energy reserves. The way to do that is to contact the Premier’s office by phone or email or seeing what events he is at and show up and share your thoughts.
This works! He is forthright enough to say so. Check out this story on the test for EUB restored confidence for some straight from the Premier’s mouth proof.
If this knd of information is good enough for measuring public confidence in the EUB, it ought to be good enough to tell him if you believe the oil companies or the independent review panel's analysis about what is a reasonable royalty rate for your resources.
Thursday, September 27, 2007
You Can't Handle The Truth
I think this scene from "A Few Good Men" is one of the best of all time.
Any Albertan who reads the Royalty Reviw Report "wants answers" and we can "handle the truth."
We are questioning the manner of how decisions are being made.
"We use words like honour code and loyalty" reminds me governments use words like Integrity Transparency and Accountability. They better become meaningful and evident to Albertans.
This further consideration of this Royalty Review Report is a great place to start making those governance values self-evident.
Albertans Are Sending Messages on the Royalty Review to the Government
Here is an example of an email I received from a citizen of Alberta who is concerned about the long term future of this province. This is what she sent to the Premier on the Royalty Review Report.
"I applaud the government for reviewing oil and gas royalties. The subject
matter is beyond my realm of understanding of the oil and gas industry.
However, I do believe that there is a need to rebalance the distribution of
wealth generated from oil and gas development. The oil and gas industry
and its allies (i.e. FirstEnergy) responses to the report are predictable and
demonstrate the arrogance and opulence of Calgary's corporate elite.
The resource belongs to Albertans and it is often rural Albertans
(where resources are developed) that bear the brunt of development, and not
necessarily the enormous benefits. I am hopeful the government will
stand-up to the oil and gas industry and implement a royalty structure that is
current and reflects today's marketplace. I am also hopeful, that an
increase in royalties will be invested into the Heritage Trust Fund. I
believe Alberta should follow the lead of jurisdictions such as Alaska and
Norway who have significant investment funds as a result of their oil and gas
development. These funds benefit all residents of the jurisdictions, today
and into the future.
Finally, as a resident of rural Alberta (who does business with corporate Calgary) I am completely unsympathetic to the complaints of corporate Calgary. This small interest group is obviously focused on themselves. They are ignorant and inconsiderate of the
hinterland and its residents who play an enormous part in fueling the economic
engine of this province.
I would argue rural Alberta will support a restructuring of the royalty review and is willing to have its economies and communities slow down if oil and gas investment is dampened."
We need thousand more like her to take up this issue for a fair share of royalties.
Exercise your citizenship rights Alberta. Use it or lose it!
"I applaud the government for reviewing oil and gas royalties. The subject
matter is beyond my realm of understanding of the oil and gas industry.
However, I do believe that there is a need to rebalance the distribution of
wealth generated from oil and gas development. The oil and gas industry
and its allies (i.e. FirstEnergy) responses to the report are predictable and
demonstrate the arrogance and opulence of Calgary's corporate elite.
The resource belongs to Albertans and it is often rural Albertans
(where resources are developed) that bear the brunt of development, and not
necessarily the enormous benefits. I am hopeful the government will
stand-up to the oil and gas industry and implement a royalty structure that is
current and reflects today's marketplace. I am also hopeful, that an
increase in royalties will be invested into the Heritage Trust Fund. I
believe Alberta should follow the lead of jurisdictions such as Alaska and
Norway who have significant investment funds as a result of their oil and gas
development. These funds benefit all residents of the jurisdictions, today
and into the future.
Finally, as a resident of rural Alberta (who does business with corporate Calgary) I am completely unsympathetic to the complaints of corporate Calgary. This small interest group is obviously focused on themselves. They are ignorant and inconsiderate of the
hinterland and its residents who play an enormous part in fueling the economic
engine of this province.
I would argue rural Alberta will support a restructuring of the royalty review and is willing to have its economies and communities slow down if oil and gas investment is dampened."
We need thousand more like her to take up this issue for a fair share of royalties.
Exercise your citizenship rights Alberta. Use it or lose it!
TD Reports on the Alberta Economy - More Boom - No Bust
The Toronto Dominion Bank has issued a new report on the Alberta economy today (10 days after the release of the Royalty Review Report) saying the “Alberta Boom Will Not Go Bust.” They predict another “solid advance in real GDP of 4.3% in 2007 after accounting for lower gas prices and activity. The reasons are based on “…the massive surge in oil sands investments and related activities as a key driver in the province’s ongoing expansion.
The Edmonton Calgary Corridor is going to grow even faster at an estimated 5% in 2007. They also predict the growth in 2008-09 will moderate to 2.5-3% “…because of dampening forces on demand stemming from rising labour costs, producer and infrastructure costs. This simmering is seen as a good thing and a chance for Alberta to catch her breath and according to the TD Bank “…is what the doctor is ordering to ensure that expansion continues over the medium term.”
They make a point about the growth in medium sized (10k-100k populations) centres in Canada. Alberta has 7 of the fastest 15 such cities and 5 of those Alberta municipalities are outside the Edmonton Calgary corridor.
The Edmonton Calgary Corridor is ranked 4th amongst the 19 largest North American urban centres in terms of job creation and lowest unemployment in 2006. The average purchasing power for Albertans living in the Corridor is $57,000 in 2005, a full $15,000 above the average American’s purchasing power. If the Edmonton Calgary Corridor were an OECD country its prosperity would rank second in the world – just behind Luxembourg.
There is a cost to good times. Labour markets are tight and the retiring baby boomers will make it harder to sustain growth. Housing shortages and recent dramatic price hikes makes affordability is a problem and vacancy rates make it worse.
Infrastructure is strained and new growth requirement are putting project in jeopardy because of premium pricing and worker and material shortages. As a result government spending has skyrocketed increasing 12% per year every year since 2004.
While Alberta is the new economic engine of Canada other parts of the country are suffering because they have to compete and costs have gone up as a result. That said the TD notes 60% of the oil sands spin off goes to the rest of Canada through demands for manufacturing. The higher incomes for Alberta residents’ results in them paying a net $9B per year more than other Canadians into federal taxes. That is about $3000 for every man woman and child living in Alberta today. The other provinces benefit form Alberta’s prosperity because they can keep taxes lower because they now qualify for even larger equalization payments.
The Edmonton Calgary Corridor is going to grow even faster at an estimated 5% in 2007. They also predict the growth in 2008-09 will moderate to 2.5-3% “…because of dampening forces on demand stemming from rising labour costs, producer and infrastructure costs. This simmering is seen as a good thing and a chance for Alberta to catch her breath and according to the TD Bank “…is what the doctor is ordering to ensure that expansion continues over the medium term.”
They make a point about the growth in medium sized (10k-100k populations) centres in Canada. Alberta has 7 of the fastest 15 such cities and 5 of those Alberta municipalities are outside the Edmonton Calgary corridor.
The Edmonton Calgary Corridor is ranked 4th amongst the 19 largest North American urban centres in terms of job creation and lowest unemployment in 2006. The average purchasing power for Albertans living in the Corridor is $57,000 in 2005, a full $15,000 above the average American’s purchasing power. If the Edmonton Calgary Corridor were an OECD country its prosperity would rank second in the world – just behind Luxembourg.
There is a cost to good times. Labour markets are tight and the retiring baby boomers will make it harder to sustain growth. Housing shortages and recent dramatic price hikes makes affordability is a problem and vacancy rates make it worse.
Infrastructure is strained and new growth requirement are putting project in jeopardy because of premium pricing and worker and material shortages. As a result government spending has skyrocketed increasing 12% per year every year since 2004.
While Alberta is the new economic engine of Canada other parts of the country are suffering because they have to compete and costs have gone up as a result. That said the TD notes 60% of the oil sands spin off goes to the rest of Canada through demands for manufacturing. The higher incomes for Alberta residents’ results in them paying a net $9B per year more than other Canadians into federal taxes. That is about $3000 for every man woman and child living in Alberta today. The other provinces benefit form Alberta’s prosperity because they can keep taxes lower because they now qualify for even larger equalization payments.
Note to Premier Stelmach: Oil is a Seller's Market
Here is some highly relevant information for Albertans and their politicians when they consider the recommendation of the Royalty Review Report.
I find it interesting that some of the current oil patch players are saying the industry will leave Alberta if the royalties go up. Strange when we see “unsophisticated oil nations” like Norway, China and Dubai buying up companies or oil sands leases.
It is a sellers market Premier Stelmach. This is a but and a big picture long term policy issue Premier Stelmach. You and your government are our Trustees responsible for long term stewardship and development of our resources. YOU must ensure the development benefits all of the citizens of Alberta - anw and in the future.
The answer to the Royalty Review Report is obvious…don’t let anyone obfuscate the issues with short term narrowly framed self interest positions or threats.
-----Original Message-----
From: UNNews@un.org [mailto:UNNews@un.org]
Sent: September 27, 2007 9:00 AM
To: news11@secint00.un.org
Subject: COMPETITION FOR OIL AND GAS RESERVES HEATING UP, SAYS UN TRADE BODY
COMPETITION FOR OIL AND GAS RESERVES HEATING UP, SAYS UN TRADE BODY New York, Sep 27 2007 11:00AM The emergence of new players in the global market and shifts in the policies of gas and oil producers means that traditional conglomerates from industrialized nations are facing increasing competition in the race to access the world’s reserves, the United Nations agency on trade and development issues said today.
With crude oil prices staying well above $70 a barrel, traditional transnational corporations are losing bargaining power to oil-producing countries “eager to use climbing demand to capture a larger share of the rents,” <" http://www.unctad.org/Templates/webflyer.asp?docid=9016&intItemID=1528&lang=1 to the UN Conference on Trade and Development (UNCTAD).
The agency draws attention to “large imbalances” in global consumption, production and reserves of oil and gas, such as the fact that developed countries consume more than half of global oil and gas output, while they account for only a quarter of production.
Moreover, less than 8 per cent of the world’s remaining proved reserves of oil and gas are found in these countries. As many as 21 of the top 25 countries ranked in 2005 by total remaining proved reserves were developing or transition economies.
In addition, data suggests that resources in developed countries are being depleted more than 10 times faster that that of developing and transition economies, which means that the former will have to rely increasingly on oil and gas imported from the latter.
Competition for oil and gas resources is becoming more complex, according to UNCTAD, due to changes in government policies in producing nations. Some developing countries with large reserves, such as Kuwait, Mexico and Saudi Arabia, do not allow foreign participation in oil and gas extraction.
Others permit foreign investment but are facing embargoes applied by the home countries of companies, such as in the case of those from the United States which are not allowed to invest in Iran or Sudan.
Also affecting competition is the entry of new corporations based in developing and transition economies, including Kuwait Petroleum, Lukoil (Russia), Petrobras (Brazil) and Petronas (Malaysia), who are already among the main foreign investors in selected oil and gas producing countries and operate alongside traditional companies from the developed countries such as British Petroleum, Royal Dutch Shell and Chevron.
2007-09-27 00:00:00.000
___________________
For more details go to UN News Centre at http://www.un.org/news
To listen to news and in-depth programmes from UN Radio go to: http://radio.un.org/
_______________________________
I find it interesting that some of the current oil patch players are saying the industry will leave Alberta if the royalties go up. Strange when we see “unsophisticated oil nations” like Norway, China and Dubai buying up companies or oil sands leases.
It is a sellers market Premier Stelmach. This is a but and a big picture long term policy issue Premier Stelmach. You and your government are our Trustees responsible for long term stewardship and development of our resources. YOU must ensure the development benefits all of the citizens of Alberta - anw and in the future.
The answer to the Royalty Review Report is obvious…don’t let anyone obfuscate the issues with short term narrowly framed self interest positions or threats.
-----Original Message-----
From: UNNews@un.org [mailto:UNNews@un.org]
Sent: September 27, 2007 9:00 AM
To: news11@secint00.un.org
Subject: COMPETITION FOR OIL AND GAS RESERVES HEATING UP, SAYS UN TRADE BODY
COMPETITION FOR OIL AND GAS RESERVES HEATING UP, SAYS UN TRADE BODY New York, Sep 27 2007 11:00AM The emergence of new players in the global market and shifts in the policies of gas and oil producers means that traditional conglomerates from industrialized nations are facing increasing competition in the race to access the world’s reserves, the United Nations agency on trade and development issues said today.
With crude oil prices staying well above $70 a barrel, traditional transnational corporations are losing bargaining power to oil-producing countries “eager to use climbing demand to capture a larger share of the rents,” <" http://www.unctad.org/Templates/webflyer.asp?docid=9016&intItemID=1528&lang=1 to the UN Conference on Trade and Development (UNCTAD).
The agency draws attention to “large imbalances” in global consumption, production and reserves of oil and gas, such as the fact that developed countries consume more than half of global oil and gas output, while they account for only a quarter of production.
Moreover, less than 8 per cent of the world’s remaining proved reserves of oil and gas are found in these countries. As many as 21 of the top 25 countries ranked in 2005 by total remaining proved reserves were developing or transition economies.
In addition, data suggests that resources in developed countries are being depleted more than 10 times faster that that of developing and transition economies, which means that the former will have to rely increasingly on oil and gas imported from the latter.
Competition for oil and gas resources is becoming more complex, according to UNCTAD, due to changes in government policies in producing nations. Some developing countries with large reserves, such as Kuwait, Mexico and Saudi Arabia, do not allow foreign participation in oil and gas extraction.
Others permit foreign investment but are facing embargoes applied by the home countries of companies, such as in the case of those from the United States which are not allowed to invest in Iran or Sudan.
Also affecting competition is the entry of new corporations based in developing and transition economies, including Kuwait Petroleum, Lukoil (Russia), Petrobras (Brazil) and Petronas (Malaysia), who are already among the main foreign investors in selected oil and gas producing countries and operate alongside traditional companies from the developed countries such as British Petroleum, Royal Dutch Shell and Chevron.
2007-09-27 00:00:00.000
___________________
For more details go to UN News Centre at http://www.un.org/news
To listen to news and in-depth programmes from UN Radio go to: http://radio.un.org/
_______________________________
Subscribe to:
Posts (Atom)