How Alberta’s biggest oil companies are still raking in billions

[chuckChuck]

I don't hate fossil fuels I use them every day. There are few choices to fossil fuels except to reduce consumption and wait for affordable options which will replace oil in the next decades.

I have paid the oil industry hundreds of thousands of dollars in my farming career. They often gouge consumers. They continue to make substantial profits on the backs of consumers and the environment.

They are opposed to protecting the environment if it affects profits. They need to be more accountable and responsible for the hidden costs of oil that we all pay for.

Norway and Alaska have understood better that you can't rip and ship a one time finite resource for ever, damage the environment for generations and then let the oil industry take excess profits and not even clean up their mess.

Peter Lougheed understood this, but many of the new generation of Albertans have lost this long term perspective.

[chuckChuck]

https://www.parklandinstitute.ca/boom_bust_and_consolidation https://www.parklandinstitute.ca/boom_bust_and_consolidation

As of 2017, the Big Five control 79.3% of Canada’s productive capacity of bitumen (2.86 million barrels per day (bb/d) out of a total of 3.6 million bb/d of bitumen production). The Big Five also collectively control 90% of existing bitumen upgrading capacity, a total of 1.2 million bb/d. The Big Five are positioned to dominate Canada’s future oil sands development. In a sense they are the oil sands.

The Big Five directly employed 35,788 workers in 2017. Their aggregate revenue was $115.23 billion, their aggregate net income was $13.74 billion, and the assets they own and control are worth a total of $278.82 billion. For perspective, Alberta’s annual gross domestic product is about $300 billion. The aggregate gross profits of the Big Five in 2017 were $46.6 billion, which was close to the government of Alberta’s 2017 income of $47.3 billion.

In 2016, the average profit margin for all industries in Canada was 7.8%. Three of the Big Five—Suncor, Cenovus, and CNRL—had net profit rates above 13.5% in 2017, and Cenovus’s profit margin was an impressive 19.4%. Simply put, these three firms are extraordinarily profitable compared to the vast majority of businesses in Canada. By contrast, the 2017 net profit rates for Imperial (1.7%) and Husky (4%) were well below the 2016 economy-wide profit margin average of 7.8%.

In 2017, the Big Five returned $4.16 billion to their shareholders in the form of dividends, or 30.3% of their net profits, which is considerable. The Big Five spent another $2.04 billion of their income buying back shares from the market, meaning that the total transfer of value to shareholders in 2017 was $6.2 billion. In comparison, the Big Five paid $1.6 billion in income taxes and $3.12 billion in royalties to various levels of government (chiefly Alberta), meaning the total transfer of value to various governments in 2017 was $4.72 billion. The residual once all these payments and transfers are made are retained as savings—uncommitted capital that can be eventually invested. The Big Five’s 2017 residual savings were $7.3 billion.

[Hamloc]

I don't hate fossil fuels I use them every day. There are few choices to fossil fuels except to reduce consumption and wait for affordable options which will replace oil in the next decades.

I have paid the oil industry hundreds of thousands of dollars in my farming career. They often gouge consumers. They continue to make substantial profits on the backs of consumers and the environment.

They are opposed to protecting the environment if it affects profits. They need to be more accountable and responsible for the hidden costs of oil that we all pay for.

Norway and Alaska have understood better that you can't rip and ship a one time finite resource for ever, damage the environment for generations and then let the oil industry take excess profits and not even clean up their mess.

Peter Lougheed understood this, but many of the new generation of Albertans have lost this long term perspective.

So you continue to attack oil companies, what about government. Just ran across an interesting article written on Dec. 11 on the CBC website. Up until now NewBrunswick consumers were subject to the federal carbon tax of $20 a tonne on gasoline, 4.42 cents a litre. Well NewBrunswick just negotiated a new deal with Trudeau. They will implement their own carbon tax, the same $20 a tonne but they are going to lower their existing excise tax on gasoline so that the consumer ends up paying a net increase of 1 cent a litre, this should certainly create a large incentive for change of habits. So Trudeau continues to make deals that really eliminate the carbon tax for certain areas of Canada. It really makes a mockery of the whole program!!!!

[Guest]

and how in hell can carbon tax be 4% on gasoline in western canada and 40% on natural gas ???????????????????????

[Oliver88]

and how in hell can carbon tax be 4% on gasoline in western canada and 40% on natural gas ???????????????????????

Saskatchewan carbon tax will be increased by 50% tomorrow.....thanks to Trudeau, McKenna and traitor Goodale. 🖕🏻

[Misterjade9]

3.1 cents carbon tax on a liter of propane, As of 48 minutes ago it is now 6.2. Ottawa GFYS.

[farming101]

3.1 cents carbon tax on a liter of propane, As of 48 minutes ago it is now 6.2. Ottawa GFYS.

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcrates/fuel-charge-rates.html https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/fcrates/fuel-charge-rates.html

[Hamloc]

Farming 101 if you read "Ottawa approves New Brunswick's carbon tax plan for consumers" on CBC you will find that New Brunswick has negotiated a new deal where the net cost payed by consumers is lower, the rates on the table you provided will not apply to New Brunswick. Apparently C02 produced in Atlantic Canada is somehow experienced differently by Justin Trudeau!!!!

[dmlfarmer]

Farming 101 if you read "Ottawa approves New Brunswick's carbon tax plan for consumers" on CBC you will find that New Brunswick has negotiated a new deal where the net cost payed by consumers is lower, the rates on the table you provided will not apply to New Brunswick. Apparently C02 produced in Atlantic Canada is somehow experienced differently by Justin Trudeau!!!!

Well that is one way of looking at it. The other way is that every province had the opportunity to develop their own carbon pricing plan or accept the fed's plan. NB choose to create their own cheaper system while the prairie province government sat around bitching and complaining and denying and thus ended up with a more expensive system. What is really funny is the carbon tax to Alberta residents is now higher under Kenney's leadership than it was or would be now under Notley because Kenney scrapped that bad ND plan in favor of a more expensive Liberal plan.

[Hamloc]

Well that is one way of looking at it. The other way is that every province had the opportunity to develop their own carbon pricing plan or accept the fed's plan. NB choose to create their own cheaper system while the prairie province government sat around bitching and complaining and denying and thus ended up with a more expensive system. What is really funny is the carbon tax to Alberta residents is now higher under Kenney's leadership than it was or would be now under Notley because Kenney scrapped that bad ND plan in favor of a more expensive Liberal plan.

I agree on one point, Alberta and Saskatchewan Premiers could negotiate a carbon tax run around like the Atlantic provinces have and as result we would pay less tax. Their continued fight against the tax is costing us money. But you are wrong that Notley's tax was lower. When Jason Kenney eliminated the carbon tax Albertan's were paying $30 a tonne. The new federal tax that is imposed on Alberta today is $20 a tonne and will rise to $30 a tonne April 1. The rebates on the federal tax are supposed to be higher than they were under Rachel Notley. Enjoy your day.