Are We Back To The Days of Ralph?

So it looks like we are back to the days of Ralph with the Royalties in Alberta… Here is the original article from the Calgary Herald.  Yesterday Premier Ed passed another revision of his Royalty Review and is now sitting at 36%.  The Article also talks about how the Alberta government will collect in 2013 $400 million more than what was under King Ralph’s reign, however it’s $800 million less then what Premier Ed originally passed.

I would like to hear from all the individuals that are in the oil industry and would like to get your take on this… What have you seen this do to the industry and how will it impact the oil and gas industry in Calgary in the future…

Backtracking on the Royalties

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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