Nov
20
So it appears that the Alberta Government is going to relax the royalties and taxes on the oil industry… This is a good thing, and hopefully will help the economy and the industry be more competitive in this market place…
Premier Ed Stelmach announced a new five-year plan that lets producers pay less than the rates set in next year’s revamped royalty regime, a move that affects thousands of conventional oil and gas wells.
In making the surprise announcement, the premier said this change is needed to shake off the effects of a slowdown in Alberta drilling and the global economic crisis.
He argued extra tinkering to the province’s royalty framework — announced with much fanfare in October 2007 — will help spur drilling of new wells between 1,000 and 3,500 metres deep.
“The world has changed in recent months and we must respond. We must be competitive, so we’re making this change to encourage new activity in the oilpatch,” Stelmach said.
“This is all about accessing risk capital and ensuring that the jobs are maintained here in the province of Alberta.”
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The Chamberlain Group
Glad to see Stelmach is on this, if oil goes any lower Alberta could see some serious job losses. Great post!
Gerard