AB and $50 oil

[grassfarmer]

An interesting video that paints a different picture to what we usually hear. Tough on the NDP too so that should entice some of you to watch it.

[URL="http://www.youtube.com/watch?v=wNPLICOYrrw"]http://www.youtube.com/watch?v=wNPLICOYrrw[/URL]

[SASKFARMER3]

Ill bite! Yea the NDP is super duper in Alberta! The Rinoceros party almost were better, And Trudeau is liked all across canada!

[SASKFARMER3]

So almost 1 in 4 people vote for liberals. So find that one friend and slap the sucker.

Have a nice day Grass your heroes are not great.

[Hamloc]

Watched the first 10 mins don't have time to watch it all. If as he states oil companies can make money hand over fist at 50 dollar oil and still paying royalties as if oil was at 100 dollars why has virtually every oil company in Alberta reported losses in the last year and even though the NDP raised corporate taxes from 10% to 12% their revenue from corporate taxes will drop by about 750 million in 2016? As I said didn't finish the video, I am assuming he didn't like the fact that the NDP didn't raise royalties is that correct?

[lnewman]

An interesting video that paints a different picture to what we usually hear. Tough on the NDP too so that should entice some of you to watch it.

[URL="http://www.youtube.com/watch?v=wNPLICOYrrw"]http://www.youtube.com/watch?v=wNPLICOYrrw[/URL]

Good article Grass It takes a while to watch,worth it.
This should be watched by all Land owners, The oil companies sold off leases in our area nobody is getting leases paid for or maintained . 20 out of 22 leases on our land not producing and never will again .There is no money set aside no bond , to clean them up. This is bad news for all.

[lnewman]

Watched the first 10 mins don't have time to watch it all. If as he states oil companies can make money hand over fist at 50 dollar oil and still paying royalties as if oil was at 100 dollars why has virtually every oil company in Alberta reported losses in the last year and even though the NDP raised corporate taxes from 10% to 12% their revenue from corporate taxes will drop by about 750 million in 2016? As I said didn't finish the video, I am assuming he didn't like the fact that the NDP didn't raise royalties is that correct?

This has nothing to do with the ndp but they are screwed also ,you have to watch more, it the wells no clean up. This well effects us all.Waiting for crop to dry its good view. skip to 30 min. into video

[grassfarmer]

Ill bite! Yea the NDP is super duper in Alberta! The Rinoceros party almost were better, And Trudeau is liked all across canada!

Maybe you should bite your tongue if you are too lazy to watch the video or too stupid to understand it.



Hamloc he shows that $22 is their breakeven. Creative accounting can make what is good look bad just as it can do the opposite. He reckons the collapse in royalty levels since the Klein era has caused the current deficit situation. Nowhere else in the world gives their resources away as cheap as AB, BC and SK. The most remarkable claim was about the NDP royalty review of which he was part - he was in the room when it happened. They just looked around and said "everything OK?, lets just keep it as it is" there was no process, no analysis, no data used. If that is true that is huge in my mind as it implies the province is still run by big oil and it means the Alberta financial situation is not going to improve whether its the NDP or PC's in power.

And then the points about well abandonment that lnewman raises. This is a video well worth watching.

[Hamloc]

If their breakeven is 22 dollars a barrel wouldn't these oil companies still be making a profit and paying taxes instead of cutting staff and posting losses? Are you saying the NDP royalty review was a farce? Sorry doesn't add up will have to find time to finish watching.

[grassfarmer]

If their breakeven is 22 dollars a barrel wouldn't these oil companies still be making a profit and paying taxes instead of cutting staff and posting losses? Are you saying the NDP royalty review was a farce? Sorry doesn't add up will have to find time to finish watching.

Its an interesting one for sure. According to him yes, the NDP review was a farce. Says that @the 15 minute mark I believe.

[perfecho]

Appreciate this one, thanks.

[mustardman]

Yes only in western Canada are we STUPID enough to have Single Digit royalty rates when
The Rest of the World has Double Digit rates

[stonepicker]

Musterman, "a half truth equals a whole lie" Alta. oil royalties are on a sliding scale, when oil prices are high royalties are high ( among the highest ) when prices are low royalties are lower , makes good sense to me. How come you don't talk about royalties when they were 32%- 38% for a number of years? Get your head out of the oilsands and do some studying.

[grassfarmer]

Musterman, "a half truth equals a whole lie" Alta. oil royalties are on a sliding scale, when oil prices are high royalties are high ( among the highest ) when prices are low royalties are lower , makes good sense to me. How come you don't talk about royalties when they were 32%- 38% for a number of years? Get your head out of the oilsands and do some studying.

So for how many years and when were they paying the 32-38%? You didn't mention the gas side of the oil and gas royalty equation where they miscalculated in the 2009 review and dropped the gas rate substantially - enough to ensure that overall royalties paid have been lower ever since 2009. Course now they aren't paying at all which is quite the break. Imagine if all you farmers that are renting land when you get into a year of lower profitability you just don't pay your rent - that's what the oil companies get - the resource for nothing at times.

[stonepicker]

The resource for nothing? the oil co's are the one's hiring people and spending there own money on exploration and innovation. To me, lowering royalties when times are tough is good gov. policy. I'm getting the impression grass farmer that you feel that anything successful should be taxed to the max, continually. Less gov. and more free enterprise, that's what builds a strong country. socialism brings poverty to everyone! Alta. is the strongest province in the country ( with the least debt ) they must've done something right! Although next year i'm guessing sask. will be the strongest prov. with the least debt.

[grassfarmer]

The resource for nothing? the oil co's are the one's hiring people and spending there own money on exploration and innovation. To me, lowering royalties when times are tough is good gov. policy. I'm getting the impression grass farmer that you feel that anything successful should be taxed to the max, continually. Less gov. and more free enterprise, that's what builds a strong country. socialism brings poverty to everyone! Alta. is the strongest province in the country ( with the least debt ) they must've done something right! Although next year i'm guessing sask. will be the strongest prov. with the least debt.

So can I use some of your land for free, no rental required in poorer years? Even in the good years these oil companies only had to pay 1% of gross revenue until they had everything paid for. So in a farm scenario even when grain prices are sky high I would get to use your land for 1% of gross revenue until I'd paid all the development costs - paid for all new machinery, grain driers, bins, B-trains - even the interest on any money I needed to borrow would be an allowable development cost. I'd be able to cut any trees on your land, leave a mess behind and sell them for firewood. I'm sure you'd be one of the first to shout socialism if anyone suggested anyone taking your land over like this.

Anyways can you provide me with the years that the oil companies paid the huge royalties you claimed in your last post? I can't find that in any data I've seen.