The Pembina Institute has a Royalty Reform Tracker on their website. It tracks how much royalties Albertans would have earned if the Alberta Government had accepted the Review Panel Recommendations when presented.
That is unrealistic because the need time to review the review and be sure they understand all the implications of the recommendations...including the political ramifications after all.
Check out what not accepting the Review Panel recommendations is costing you in continuing forgone royalty payments. ths link is Albertans' Fair Share Minimizing Environmental Impacts of Oil Sands Development in Canada The Pembina Institute
The fact the Royalty Review Report was made public at the same time the government received it is a step towards more open democracy for sure. Usually these report go on the shelf or into the back rooms for "discussion."
So far this has been a pretty open process. We shall see how the Minister of Justice and Attorney General handles his "industry liaison role" in the "further consultation" they are engaged in. I know and trust Ron Stevens to be totally open, transparent and accountable in all his discussion with industry pending a government decision on recommendations.
Albertans will be wondering and watching.
Thursday, September 27, 2007
Contact Premier Stelmach to Let Your Royalty Concerns Be Known
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.
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.
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.
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