Alberta's new taxes

[TOM4CWB]

Perfeco,

I agree with your take on the increased taxes... more concerning is the shut down of work in the oil industry.

Was at the New [opened in Oct 2015]Leduc/Nisku Kenworth $25M dealership picking up parts Friday at 4pm... was shocked that I was the only person there. Parking lots for service and parts was empty.

Good side was they had every part I needed in stock... software nonsense is crazy... but after 30mins and going up the parts guys 3 higher... the manager did find all the needed parts... in stock... a massive warehouse twice as big as the west end store. Obvious they are going to need to close down a store somewhere if this keeps up.

Nisku A ghost town... the folks at KW were in as much shock as I was. No traffic tie ups at 4:30pm Friday in Nisku... UFA was deserted... when I stopped to get fuel... was the only vehicle there as well. Not like this since 1982.

[Hamloc]

Was listening to QR77 the other day and they were talking to the head of the Canadian oil well drilling contractors association. The projected wells to be drilled in 2016 hasn't been this low since 1983, when Alberta's oil industry was on its knees due to the NEP brought in by the last Trudeau in power. I don't see anything in the NDP climate policies which will turn this around just the opposite.

During both the Alberta provincial election and the federal election both eventual winners talked about the middle class standard of living going backwards and how they were going to reverse this. All I see so far is an acceleration of the lowering of our standard of living unless your a government employee.

[perfecho]

Woahh there Hammy....Although the NEP had an effect on work here in Alberta, take a look at the oil supply back then...the province and feds had things worked out in about a year, but low world prices and high interest rates made for a major recession...a recession that was world wide. Just like now, the ND's will be labelled with this one, even though they had bugger all to do with it. Again, I am not really an ND supporter, but I will not sit and blame just because it is not my party.
The real issue here is how the previous government had so much opportunity to make this province wealthy and diverse...and what we have is empty vaults and a bunch of wealthy corps.

[TOM4CWB]

Premier Stelmach did his job decently enough... interesting comment here:

"Former premier Ed Stelmach is lauding NDP premier Rachel Notley for living up to her campaign promises, in particular a plan to review royalty rates.

"She'll follow through on the commitment," he said. "I'm sure that she'll meet with industry, she'll meet with investors, meet with Albertans that will have their say."

Stelmach increased royalty rates in 2007, but was forced to roll them back in face of fierce opposition from industry.

He said times are different now, because the price of oil, while low, is stable.

"At least we know what they're going to be for the next few months," he said.

"When we did ours, oil was $145 and then dropped down to $37 and it was at that time there was very little capitalization simply because the banks were worried about remaining alive and financially stable. It was quite different."

Stelmach was at the legislature Monday to hear the speech from the throne.

Notley said Monday she will announce a panel to review the current rates by the end of summer."


Small pickings[royalty review]... compared to a massive move to confiscate Billions in revenue from all energy... right off the top...


The BIG hit is going to change Alberta; ready or not:

"Alberta's climate change strategy includes a tax on carbon, a cap on oilsands emissions, a phasing out of coal-fired electricity and an emphasis on wind power.

"Our goal is to become one of the world's most progressive and forward-looking energy producers," said Premier Rachel Notley. "We are turning the page on the mistaken policies of the past, policies that have failed to provide the leadership our province needed."

But the strategy will not be cheap and will be paid for not only by industry, but by ordinary Albertans.

If the policy is approved, the price of gas at the pump will jump by 4.7 cents per litre and home heating costs will rise by $320 per year by 2017 and $470 by 2018.

There will be, however, consumer rebates to offset some of those increases.

The carbon tax on industry is expected to raise $3 billion a year, which will be reinvested in renewable energy sectors and cover increased costs to consumers.

The province sees the emissions cap as motivation for the oilsands sector to innovate and become more globally competitive.

Greenpeace, industry approve

The plan is endorsed by environmentalists and the oilsands industry.

"On behalf of Canadian Natural Resources Ltd., my colleagues from Suncor, Cenovus and Shell, we applaud Premier Notley for giving us, to provide us the position of leadership on climate policy," CNRL chairman Murray Edwards said at the news conference.

Steve Williams, CEO of Suncor, shared Edwards' enthusiasm.

"This plan will make one of the world's largest oil-producing regions a leader in addressing the climate change challenge," he said.

While Greenpeace said the measures will help slow Alberta's growing emissions, diversify its economy and create jobs, they still require emission reduction targets.

"Targets give an important signal to business, let the world know where Alberta is headed, and help ensure that direction leads to the reductions that science and equity demand," said spokesman Mike Hudema.

The Canadian Association of Petroleum Producers (CAPP) offered cautiously optimistic comments.

"From our industries point of view, there are certainly a lot of details that will need to be filled in on multiple different fronts, but in general we're quite supportive of the use of natural gas and the phase out of coal," CAPP president Tim McMillan said.

One of the few dissenting voices came from the opposition Wildrose Party.

Leader Brian Jean said Albertans face job losses and economic uncertainty.

"This new carbon tax will make almost every single Alberta family poorer, while accelerated plans to shut down coal plants will lead to higher power prices and further jobs losses," he said in a news release.

Notley unveiled the strategy Sunday afternoon at a news conference.

Alberta, provinces, to 'do their part' on climate change policy
Alberta climate-change panel to consult before taking action
ANALYSIS | Carbon taxes could hit oilpatch hardest
Here are some of details of the plan according to a government news release:

Coal and renewable energy

Alberta will phase out all pollution created by burning coal and transition to more renewable energy and natural gas generation by 2030.
Three principles will shape the coal phase-out: maintaining reliability; providing reasonable stability in prices to consumers and business; and ensuring that capital is not unnecessarily stranded.
Two-thirds of coal-generated electricity will be replaced by renewables — primarily wind power — while natural gas generation will continue to provide firm base-load reliability.
Renewable energy sources will comprise up to 30 per cent of Alberta's electricity production by 2030.
Carbon pricing

A price will be put on carbon to provide an incentive for everyone to reduce greenhouse gas pollution.
The price will be introduced in two steps: $20 per tonne in January 2017 and $30 per tonne in January 2018
An overall oilsands emission limit of 100 megatonnes will be set, with provisions for new upgrading and co-generation.
Methane reduction

In collaboration with industry, environmental organizations and affected First Nations, Alberta will implement a methane reduction strategy to reduce emissions by 45 per cent from 2014 levels by 2025.

Revenue neutral

All proceeds from carbon pricing will be reinvested in Alberta.
A portion of revenues will be invested into measures to reduce pollution, including clean-energy research and technology; green infrastructure, such as public transit; and programs to help Albertans reduce their energy use.
Other revenues will be invested in an adjustment fund that will help individuals and families make ends meet and provide transition support to small businesses, First Nations and people working in affected coal facilities.
Notley's unusual Sunday briefing came the day before Notley meets with Prime Minister Justin Trudeau and other provincial and territorial leaders in Ottawa to discuss a national climate change plan and a week prior to a major international climate conference in Paris.

Trudeau tweeted his approval following the briefing.

Congratulations @RachelNotley on unveiling Alberta's Climate Leadership Plan. A very positive step in the fight against climate change.

— @JustinTrudeau
The strategy is seen as critical to improving Alberta's environmental reputation at the international level in order to win better acceptance of the province's energy exports.

Former American vice-president, Al Gore, called the strategy inspired and forward thinking.

"This is also another powerful signal — well-timed on the eve of the Paris negotiations — that humanity is beginning to win our struggle to solve the climate crisis," he said in a statement.

The Alberta strategy is based on information gathered by a five-member climate change panel chaired by Andrew Leach, academic director of energy programs at the University of Alberta's business school.

Canada sets carbon emissions reduction target of 30% by 2030
How Canada's provinces are tackling greenhouse gas emissions"

http://www.cbc.ca/news/canada/edmonton/alberta-climate-change-newser-1.3330153

[blackpowder]

Maybe its just me but....
I see a suspense novel involving the uncovering of the long hidden drivers of the anti-humanity green movement. This has changed from a anti waste - anti pollution concept to something totally different.
So lets see, Where did all the money come from over the last 2 decades????
Who did it go to??
It was all well planned strategy over a long time and to think otherwise is naive. Rewatch Avatar.
John Grisham will someday write a novel involving the Saudi Royal Family.
Perhaps room for a set of books when you consider their regional politics as well.

[perfecho]

Good for Eddie...... Had liked liked him as premier, but the puppeteers of the old regime didn't'. Now is the time.... If it ever turns around, we know the rules....

[Hamloc]

Perfecto, one of the reasons for the NEP was the high global price of crude oil in 1979 of $40 usd. Part of the NEP was a made in Canada price for oil which kept the price below world price subsidizing eastern Canada. It also raised the federal government share of returns from oil at the wellhead from 10% in 1980 to 24% in 1983. At the same time reducing the producers return from 45% to 33%. Alberta received 43% instead of 45% in the same time period. This resulted in much less oil activity due to lower returns and the resulting low in drilling activity which bottomed out in 1983. Another interesting side affect was the Fed Liberals projected a deficit of just over 11 billion for 1983 based on increased energy revenues, these never materialized and the deficit ballooned to 29.7 billion. The NEP ended in 1985 when the world price of oil hit $10 usd a barrel.

Through this same period Norway experienced an economic boom due to high world oil prices, a boom which contributed a great deal to their financial standing today. Economists put the cost to Alberta through this period at between 50-100 billion dollars.

Perfecho I totally disagree with you on the NEP I believe it had a lot to do with the poor economic performance of Alberta during this period. The taxing policies of Premier Notley's government shows that they have learned nothing from history.

[LEP]

I agree that pennies per liter will have no effect on consumption or making people act greener.

Moving from coal to natural gas is a bigger deal. All manufacturing and heavy industry uses power and increasing the cost discourages growth and makes business uncompetitive.

Anybody wonder why the oils and are cheerleaders here?

If you read the press release, these taxes are going to the big emitters to become more energy efficient (read BIG HANDOUTS). Where do you think the majority of the money will go?

The article also states that the money can also be used to cover deficits. So a token payment to the taxpayer and split the money the the oils and producers.

You guys were worried about the conservatives?

[LEP]

Correction where the previous post says oils it should read oilsands

[perfecho]

What taxes are unreasonable from Notely...the 12% Corp taxes that is still the lowest in the country...especially when corps made the kind of money they did.
As per oil glut of 80's...

"After 1980, reduced demand and overproduction produced a glut on the world market, causing a six-year-long decline in oil prices culminating with a 46 percent price drop in 1986."

"The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985.[1] Long-term effects of the recession contributed to the Latin American debt crisis, the savings and loans crisis in the United States, and a general adoption of neoliberal economic policies throughout the 1980s and 1990s."
taken for Wikipedia.
Remember the interest rates...in access of 20%? You really believe that Trudeau caused all that with NEP? I agree it wasn't great for Alberta, but I believe outside forces contributed to the length and depth of that recession.
The really sad thing is , "we" didn't learn from history....Remember...

“Please God, give me one more oil boom.” “This time I promise not to piss it away.” Guess what we did...
Notely had nothing to do with that part!