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.
Thursday, September 27, 2007
You Can't Handle The Truth
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/
_______________________________
Oil Exec Calls Royalty Review Chair "A Lumberjack"
I see from the Front Page of the Edmonton Journal and Gary Lamphier’s continued excellent business coverage on the RRR the Hunter Panel on Royalty Review is not going to stay out of the fray. Some of them made the rounds to some media people yesterday and are ready, willing and able to actively explain their processes, findings and continue to clarify the issues and their recommendations. Good for them.
There are some oil company executives who are now becoming insulting and calling names like some school yard bully. One such person recently appeared on a radio show saying Bill Hunter, the Chair of the Panel and former president of Alberta-Pacific Forest Industries was a “lumberjack” and suggesting he didn’t know the energy industry.
I have worked in both industries and I can tell you one thing though. If the oil and gas industry took a similar responsible stewardship view of their obligations to the citizens as owners of the natural resources as does the forest industry, the energy industry would not be in the public relations and political jam they are in now over rents and royalties.
The Edmonton Journal Headlines today says it all about the tactics being used by some – clearly not all of the oil patch leadership. Bill Hunter the Review Chair says “We’re Not a Bunch of Morons” is the front page of today’s Edmonton Journal. The inside story headline states the Panel position “Industry Argument ‘Distorts Picture.’”
These reactions from some of the industry “leaders” remind me of some “practical” advice from one of my professors in Law School. He said “If the law is against you argue the facts. If the facts are against you, argue the law. If both the facts and law are against you, then call the other side names.” Let’s hope the players keep this pubic consideration about this very important matter to all Albertans at a professional level and in a civil manner – even where we disagree.
This complex issue of providing for responsible, sustainable and optimal development of our oil sands is one of the most important economic, environmental, social AND POLITICAL decisions facing Alberta.
The record shows the development of the oil sands has not been well planned by our political level, not well regulated by our regulatory agencies and not well administrated by our bureaucracy. The impacts and implications of this decision will be felt for a long time to come.
This resource belongs to all citizens of Alberta and we need to be sure we, and industry and government are all clear about that. As Albertans we need all the various parties to work together but the ultimate decision is ours. Let your MLA know what you think responsible development and sustainable stewardship of your oils sands means. I will soon post on some of my ideas and those of others I have spoken with on the subject.
There are some oil company executives who are now becoming insulting and calling names like some school yard bully. One such person recently appeared on a radio show saying Bill Hunter, the Chair of the Panel and former president of Alberta-Pacific Forest Industries was a “lumberjack” and suggesting he didn’t know the energy industry.
I have worked in both industries and I can tell you one thing though. If the oil and gas industry took a similar responsible stewardship view of their obligations to the citizens as owners of the natural resources as does the forest industry, the energy industry would not be in the public relations and political jam they are in now over rents and royalties.
The Edmonton Journal Headlines today says it all about the tactics being used by some – clearly not all of the oil patch leadership. Bill Hunter the Review Chair says “We’re Not a Bunch of Morons” is the front page of today’s Edmonton Journal. The inside story headline states the Panel position “Industry Argument ‘Distorts Picture.’”
These reactions from some of the industry “leaders” remind me of some “practical” advice from one of my professors in Law School. He said “If the law is against you argue the facts. If the facts are against you, argue the law. If both the facts and law are against you, then call the other side names.” Let’s hope the players keep this pubic consideration about this very important matter to all Albertans at a professional level and in a civil manner – even where we disagree.
This complex issue of providing for responsible, sustainable and optimal development of our oil sands is one of the most important economic, environmental, social AND POLITICAL decisions facing Alberta.
The record shows the development of the oil sands has not been well planned by our political level, not well regulated by our regulatory agencies and not well administrated by our bureaucracy. The impacts and implications of this decision will be felt for a long time to come.
This resource belongs to all citizens of Alberta and we need to be sure we, and industry and government are all clear about that. As Albertans we need all the various parties to work together but the ultimate decision is ours. Let your MLA know what you think responsible development and sustainable stewardship of your oils sands means. I will soon post on some of my ideas and those of others I have spoken with on the subject.
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