Alberta Royalty Review

[gunslinger]

3 days till opening morning boys then we all can take the month off and go hunting again, yee haaa thank christ for the oil patch.

Originally Posted by Walleyes

When and where have any of these companies ever called poverty ??? They claim nothing but profits !!! Why is profit such a bad word ??? You know why because most people are jealous of it that's why.. Some in this world are smart enough to do what can be done to make money the rest want to live off of them that can.. This is what is happening here and now in this province.. I have chose in my life to live the oil patch life !!! I live away from home 250 days out of the year,, yes you heard it 250 days !!! for that I get payed plenty.. You know how much ??? about $250,000.00 a year so what ??? Do you want to live my life ???? You could not handle my life... I do it because it is my calling,, its what I am good at... Now people stand in front of me and tell me good riddance to you ass hole,, sorry that just doesnt work... I have been feeding this province off of my tax dollars way to long to be told I am not needed anymore.. Don't think so,, lets do a poll how many tax dollars have you been putting in over the last say 10 years ??? what ?? way to much ???.. I have personally paid no less then between 30,000.00 to last year 53,000.00 dollars in personal income tax.. Don't tell me about paying you're fare share.... But I am smart enough to know why that money has to be payed and where it goes..

I have one saying for you people that live on the lower scale of the income bracket !!! you chose you're life style and job not me,, don't make me pay for you're choices and I won't make you pay for mine...

Funny, you seem to know what everyone on the board can "handle" or not. Well just to open your eyes a little,


what you made last year, my company paid in taxes. Just to let you know, it has nothing to do with oilfield and can sustain greatly without the oilfield, we did very well through the 80's.. Sorry


By the way, I make all this yet still get to be with my wife every night.

[Buckhead]

I guess some people just don't get it.

I hear the same story over and over. "I am an oilfield consultant and I made $200,000, $300,000, $400,000 last year." And all they have to show for it is a new pickup and a couple of quads.

This is typical patch mentality. Make a lot of money really fast, spend it even faster - and then ask for a handout from someone else when they are out of work.

The patch has been booming for the last 10 years. If these people have not saved or invested anything for a rainy day - I do not feel sorry for them in the least.

I am fortunate that I am very well compensated for my work, I am just not so crass as to try and belittle other folks by bragging about my income here.

There is absolutely nothing wrong with companies making a good profit and paying their employees well. This is just good business and benefits everyone.

Ultimately, the resources of Alberta belong to all Albertans. All people are asking is that the companies that are making huge dollars in profits contribute their fair share so that there is money to build hospitals, schools, roads and other infrastructure that is being stretched to the max in the current business climate and by the large influx of people moving into Alberta to work.

I am sure noone on here wants to see anyone else lose their job. But it is a fact that the economy goes in cycles - always has, always will. What is good today, may not be in the future.

[russ]

Originally Posted by Walleyes

1.4 billion for Albertans wow... .

Which brings us to a point that's been conveniently overlooked. 1.4 billiion isn't even a single quarters profits for at least 4 or 5 of the "big" players. There's literally hundreds of small cap operations out there making millions in profits that add up to mega-billions. This has all been a bunch of huffing and puffing over what amounts to pocket change.

[209x50]

From "A Thousand Barrels a Second" by Peter Tertzakian McGraw Hill 2006

"In other words we know a region is maturing when the rate of production cannot be increased no matter how many more wells the industry drills. Such is the case of the United States, the country with longest history of crude oil production. Production out of the once substantial U.S. crude oil reserves peaked in 1970 at 9.6 million barrels per day. In 2004, 145 years after it first began, US production was down to 5.4 million barrels per day."

So where are they going to get it?

He goes on to talk about reservoir maturity and the production shrinkage that comes with it.

"Estimates vary, but the overall average global decline rate is now somewhere between five and eight percent. The implications are profound. If oil companies do not spend money on new drilling, production in 2006 will decline by 4.3 million barrels per day in 12 months, assuming a conservative five percent decline. In two years, 2008, we would be down to 77.6 million barrels per day. So after a mere two years, the worlds production would regress back to where we were 10 years ago."

This scenario only deals with offsetting a 5 percent production decline in existing fields, it doesn't take into consideration the growth in consumption every year which is running about 2% globally.
So where are they going to get it?

[59whiskers]

Cost over runs on many of the oilsands operations under construction far exceed original budgeted amounts, now we have a government implementing another 20% tax expense on companies with high cost over runs and we live like Royalty. There are lots of opportunities over seas for major players to do business while leaving the smaller service companies here in Alberta with no work. Most of the major oil companies doing business in Alberta are not Canadian owned and business decisions are made somewhere else in the world. Share holders of these companies make the final decision as to whether or not how much business will be done here. Sure some of these Alberta projects are to far along not to turn back but there are huge opportunities in Asia, India, Mongolia, Middle East,,etc. Shareholders are looking in that direction for future investment opportunities that could be more economical at this time.

[Morbius131]

Buckhead that is a great post and very well written! Throughout this whole thing I have heard a whole lot of "I this" and "I that". As much as I don't want to see anyone lose jobs, suffer economic hardship or suffer as a result of this review. Ultimately, the natural resources of Alberta or for all Albertans.

If a lot of the "big players" in the oil industry want to leave...LEAVE...quit talking about it and just do it. The natural resources are there and if some of the big guys leave, you can bet your bottom dollar that someone else will move in to get the resources.

Change leads to innovation and cheaper means of extracting these valuable resources. In the end I believe this will turn out to benefit a greater section of the population.

Morb

[RandyBoBandy]

cost over runs??? how about following the rules all other business's use?? no more than a 10% screw up with budgets!! Going to other countries..WHAT A GOLLDARN laff!! Alberta has a stable political enviroment...go ahead a try an asian country or a middle east country....you'll spending $$$ on security far beyond staying here...and that includes the threats of going to BC,,unions,taxes etc...ROFLMAO...this province of Alberta is a cash cow for properly managed oil companies

[Chet]

It's definitely a good topic for debate. Personally, as an employee of an Oil and Gas production and exploration company in Calgary, it is an issue that I am very concerned about. I was reserving judgment about it until some kind of decision had been made. After the decision came down, my initial reaction is that I don't think this is a "deal-breaker" for Oil and Gas in Alberta. I think the effect on the company I work for will be minimal. Our exploration levels will probably not change signifiantly due to the royalty rate changes. Our activity level is less this year than it was last year but that is due to a variety of reasons. When we are trying to decide what projects we will go ahead with in the coming months, natural gas prices are still the biggest factor for us.

There are some things I really don't like about the new rules though. One of the biggest concerns I have is the shallow rights reversion policy that the government is adopting. This concerns me as an oil and gas employee as well as an outdoorsman. The governments decision to pull undeveloped shallow rights in producing wellbores and re-sell them will result in drilling many more wells than necessary to produce the same reserves. It drives production costs up siginicantly and creates a bigger footprint on the environment than is needed. I guess the drilling contractors need a carrot too.

Chet

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[Walleyes]

Read this in the Sun today pretty much sums it up I think..

Stelmach's royalty tax is a victory for the looters, moochers and parasites along with those who want something for nothing egged on by the envious, such as Rick Bell and led by the zeros of the Alberta Conservatives.

Can you say nail on the head.....

.

[Walleyes]

Ohh so its the oil companies fault that are kids are in over crowded classrooms, and we have to pay for the extras like lockers and text books and such.. And thx I didn't realise it was the oil companies fault that our health care system is in shambles and we have to pay so much for it.. Now I can see it all... And oh yah it has to be their fault that our housing market has gone through the roof keeping hundreds of our contractors working how dare they... And all that crime my goodness how dare they,, they must hire people just to come in and run around the streets and sell dope and shoot each other and steal from one another,, oh wait that's the unemployed and the people who don't want to work for a living, phew I'm sure glad this royalty review isn't going to put anyone out of work..And all those kids that are running around the street at night vandalising and stealing and beating each other up who have parents that could care less where they are or what they are doing,, damn oil companies they should be paying for counselling for all these people how dare they.. And our environment well how dare they drill for clean burning natural gas and coal bed methane gas who do they think they are hell coal works just fine, little smelly but hey it worked before it will work again.. Yup them damn oil companies making this poor little province into the envy of the country.. How dare they give our young adults actual opportunities for decent well paying jobs when they get out of school and a hope for the future.. Man I hate 2% - 3% unemployment it sucks.. Lets get it to where it should be oh I don't know lets say what 8 - 10 sure why not... The government can take care of them hell we will have an extra 1.4 billion to spend.. Oh no that's rite we won't because we are going to loose all the revenue that was created when we were all working.. Oh well lots of them can head back home to the east god knows its booming out there...

Here I thought that our Government that is sitting on billions of our tax dollars was responsible for fixing our schools and building roads silly me..And our health care system well I was under the understanding that that was run by bureaucrats and doctors that charge the government $100.00 for a 15min visit to a clinic that is full to the roof with people with nothing wrong with them other than a cold but hey its free for them,, lets go get some pills ehh,, we can sell them on the street that's what the oil companies are paying us to do..

Man am I ever glad I read that its all so clear to me now.. Thx man...

Here in lies the problem hey guys its always someone else's fault and I am never to blame... Its those guys they have the money its their fault..

Yup I'm sure glad I have people with such vision looking out for poor little old me...

.

[Sakoman]

Lot's of debate still going on here.

As an employee of an oil company I am not as concerned today as I was two weeks ago as on the surface the RR does not look like what the original recommendations suggested. That being said I don't not agree with the Govt. tearing up existing contracts and telling Syncrude and Suncor to step up to the table or we will take other measures to force you to. Not good business but that is my opinion.

As for the above Anti Oil posts, I am sure none of you even have a clue of how oil works and the way the business even runs. I find it amazing how you can be so convinced in your opinions and rationalizations without sitting down and seeing all the numbers in front of you. As for the huge corporations that you like to quote their profits there are only a few dozen of companies like that in the world. Most of the oil companies in Alberta do not make anywhere near that kind of money. The company I work for made 1.5 million last year of which we sank every penny right back into the economy. This year we will probably run a small loss due to gas prices.

One last thing 12% of Alberta's oil production is conventional. Not even all of that 12% gets the $90 you love to chide us for.

.

[getasheep]

Originally Posted by Sakoman

I find it amazing how you can be so convinced in your opinions and rationalizations without sitting down and seeing all the numbers in front of you.

I think this statement goes both ways. All of us have our personal lens that we see an issue through. Thus we have different takes on this issue. Oil companies are neither the savior of this province nor the scum of the earth... they probably lie more to the middle. It goes the same to assume that a person posting in support of more royalties knows nothing about Oil & Gas or vice versa.

So thats my stance... we debate in extremes but the best outcome is generally in the middle (do I sound Canadian enough! ha ha)

disclaimer: I have worked in forestry, oil, non-profit, and government... i'm now a student again... so i'm trying to keep my lens as objective as possible.

[Walleyes]

Yup its been very educational,, nothing like a good dust up to get the blood flowing... I love a good debate (in case you guys couldn't tell)

[Copidosoma]

"Don't expect me to feel sorry for you when you brag of "supporting everyone else" with your high taxes, wages etc. Especially when you are doing it with a commodity you do not own."


Wow, very well said.

[spurs]

funny.

Just for information sake the sun is wrote at a grade 7 level. Time to graduate as I see that they are scraping the bottom of the barrel for editorials.

All I'm saying is it is pretty hard for people in VP and President chairs to make a business plan when the government changes the rules all the time. First the Income trust then the oil royalty. Good for them they can scew and lie without repercussions. Bring back Ralphy. Maybe they shouldn't have wasted 5 billion on the gun registry, now I will forgive them if they amend that piece of legislation.

Pigs at a trough.

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[Win94]

Just for information sake the sun is wrote at a grade 7 level.

Mikehunt read that back to yourself. Your kidding me right???

Try this: Just for information sake, the sun is WRITTEN at a grade 7 level.

PM me and we can have a quick grade 6 math lesson as well.

[Buckhead]

And, Yes - OIL is the root of all EVIL!!!

Old Beelzebub is mixing up another batch in his cauldron as we speak, for us stupid humans to fight over.

Where do ya think all that sulphur smell (H2S) comes from?

[Walleyes]

We do live in a province that has all hell for a basement...

[bruteforce1]

Mike I agree.

Federal or Provincial the government has still impacted the stability of alot of companies in Alberta. It's one thing to say they are not going to touch trusts and thengo after them.

Lurch I agree responsible spending.

I have taken this time to reflect on the monies oil companies have put into community projects such as pools, skating rinks and educational institutes. I know this does them justice also but it was still what the communities wanted and felt they needed. I would hope that the government listen to what the people want and don't just funnel this money to what they think is best. I'm not covinced that they won't go their own route as has been proven in past performance. Let's say oil goes to 120 dollars a barrel so in alot of situations the government owns 50% of the oil and the oil company is left with the other 50% to pay the expenses. Being Alberta doesn't produce west texas crude the economics are quite a bit different.

As an albertan I would like to thank the oil companies for spending billions of dollars in developing Albertas resource and putting all of the infurstructure in place to make it a viable product. (read history of oilsands) maybe ontario should get some of the money since they were once players in the oilsands in alberta, I presonally think they should as they are having a tough time out there. I think the government in Alberta has done a fine job on this one. Can anyone explain to me where this money is going to be spent or is the plan to be reactive and put it where ever the headline will look the best at the time.

Have fun taking your deer as it is albertas resource so don't be surprised if your MLA would like the tenderloins and the back straps, since it is their resource.

[orca]

I love the coment from the Montana Governor come on down our tax rates are considerably less and we want you . We will not shaft you and get greedy. The same invitation is coming from Sask. So all of the people who said that the oil companies will not pull out be careful what you wish for. When they move it is for a 5 yr time span. So when the oil rigs move out east and south with thier new money and the goose leaves don't come crying when your wages drop and your house is worth half what it is now. I went through the first drop in the early 80's and paid heed to the bumper sticker ( for god 's sake let there be another oil boom and this time I promise not to( p%$^#&&) throw it away)

[AbAngler]

Originally Posted by orca

I love the coment from the Montana Governor come on down our tax rates are considerably less and we want you . We will not shaft you and get greedy. The same invitation is coming from Sask. So all of the people who said that the oil companies will not pull out be careful what you wish for. When they move it is for a 5 yr time span. So when the oil rigs move out east and south with thier new money and the goose leaves don't come crying when your wages drop and your house is worth half what it is now. I went through the first drop in the early 80's and paid heed to the bumper sticker ( for god 's sake let there be another oil boom and this time I promise not to( p%$^#&&) throw it away)

We tried drilling in Montana a few years ago. Ended up with a crap load of land and a whole bunch of torn out hair. Very disorganized sytem they have down there. Just finding a well location to go with logs was a major undertaking. The location would read "10 paces west of dry creek bed, 20 paces north". Try putting that on a map! There is a formal system, but it wasn't used very well.... We also sent a guy down there to look at core. The core storage facility was a warehouse with a bunch of core stacked to the ceiling with no order. Depths were anyones guess... He came home vowing never to return.

Sask, on the other hand is a pleasure to drill.

[Reeves1]

Woman in Ford credit claims zero unemplyment in AB right now

[steveo10]

Drove home from a rig today. About a hr drive... mustve seen at least 10 (i think 12 to be exact) rigs.

Keep a punchin and a pumpin

[russ]

Originally Posted by Reeves

Woman in Ford credit claims zero unemplyment in AB right now

maybe you need to lower your standards - Walmart's hiring