Oil activity is ramping up

[LEP]

Looks like the province should get some help with the revenue side out of the local oil economy.

Several companies have booked some decent sized drilling programs. Should be easily a 1,000 wells drilled here this year.

That with the big crop should help the picture.

[riders2010]

Maybe freeride can stop running around looking for welfare for overpaid oil industry workers that the rest of us all pay for.

And maybe he can stop screwing farm families and smaller rural towns.

Price at the pumps how the hell is this province broke???

[ajl]

Interesting how the cancellation of oil sands projects is improving the long term economics of more conventional projects.

[15444]

Don't worry. JT already has a hole that can be filled with oil money. #spendingfasterthanmakingit

[mustardman]

Too bad we GIVE the Resources away for Free
No Royaties on New wells for 3 years!!

Creates Lots of Growth but we have No frickin money to pay for the Infrastructure THIS Growth Needs
Like Hospitals,schools,teachers,roads etc

We are as bad off financially as Alberta because they've had the same mindset for years

[Hamloc]

Muustardman how does that mindset compare to Ontario, Newfoundland, NewBrunswick, are they better off in your mind?

[mustardman]

We have far more Desirable resources than those provinces.
But when Business Cycle WAS high ,you charge royalties accordingly
When oil And potash prices were thru the roof we Gave it away
Akin to having high grain prices and Renting your land out for $10 an acre. Creates a lot of people banging at your doors but your Not making any money.
And then Go and borrow 1.6 billion to pay for bills,and Crickets over the Credit rating drop WTF!!

[WiltonRanch]

Agree mustard. Think though our province was so far behind the 8 ball our govt was willing to give up some money to get things going. Alberta bumped up their royalty and sask dropped them and look where the investment went. Now with Notley in there sask could bump up royalties a bit but not get stupid. The royalty free carrot was a good encouragement for high risk plays like the Baken and heavy oil plays. Not all oil companies are multinational behemoths. Aside from a couple majors most companies that have made breakthroughs and developed a lot of oil in Saskatchewan are small to medium cap outfits. Wouldn't you want to encourage domestic small caps through incentives as opposed to the Chinese govt or Exxon?

[bucket]

Could someone explain the potash royalty scheme?

Is there something about a royalty vacation while doing capital expansions?

And why does potash cost less in China than 70 miles from the plant?

Questions not complaining.

[Hamloc]

I can only speak as an Albertan. Final result for 2015-2016 budget was a 6.4 billion dollar deficit. This does not include the roughly 7 billion dollar deficit on capital projects. The NDP raised corporate income tax from 10 to 12% and also raised personal income tax. Revenue from income taxes was still down from previous year. It amazing, no matter how high the tax 12% of 0 is still 0 lol. How high would the royalties have to be to offset this type of spending? If they were higher would any have been saved? In Saskatchewan's case your government I am guessing put royalties lower to attract investment. From what I see in Alberta unemployed people pay no tax!!

[mustardman]

You can and should have low taxes and lower royalties When commodity prices are Low..

When prices are at All time highs you get a FAIR share or like what's happened now WE ARE broke and the only way we can build a school for the INFLUX of people is akin to the BRICKs Layaway plan (P3 , one dollar down and pay exorbitant rent for years and years)

Every other province has horror stories on the Long Term costs of P3 infrastructure ... But oh ya that won't happen to us...

[ajl]

What SK has done is akin to renting out the land for $10 while grain prices are low not high. The alternative is for the land to grow weeds under this scenario. Oil is the only game in town in Canuckistan. Produce or die. Canada is just a giant one industry town and is a third world nation without credit. We are just beginning to find out what this means.

[riders2010]

I d like to ask freeride why he raised the land rent three times when grain prices are not any higher??