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October 2007

Vol. 12, No. 40 Week of October 07, 2007

Oil Patch Insider

‘Get it right Alberta’ Web site launched to fight proposed royalty increases

They describe themselves as “concerned Albertans, including private citizens, small oil and gas companies and members of the investment community.” They have “come together” to launch a new Web site — www.getitrightalberta.ca — to ask other Albertans to take a close look at the Alberta premier’s proposed increase in petroleum royalties, which if enacted will boost the province’s take from oil companies by an average of 20 percent.

Their home page has a photo of a man (grandfather?), a young boy and a dog walking down the road together. Their rallying statement is, “More royalties does not mean more for Albertans. Get it right Alberta.”

The Web site is the result of “mounting concern surrounding the recommendations contained within the Report of the Alberta Royalty Review Panel,” which they say “appears to go beyond the original mandate of ‘striking a balance.’ ”

They remind Albertans that all MLAs — members of the legislative assembly — have a voice in whether or not the government accepts or revises the royalty review panel’s recommendations, which Premier Ed Stelmach has essentially embraced. Their Web site makes it easy for anyone to contact his or her Alberta MLA or newspaper editor with concerns, offering direct links to all Alberta MLAs, to numerous newspaper editors, and to a petition that says “We the undersigned urge the Alberta government not to endorse any part of the Alberta Royalty Review Panel (ARRP) report until the government has taken the time to assess the implications and potential consequences of the ARRP recommendations. We ask the government to slow down and get it right.”

People with questions are invited to call (403) 462-0799.

CAPP speaks out — again and again

The group behind the Get it right Alberta Web site isn’t the only alliance speaking out against the proposed royalty hike in Alberta. On Sept. 20, the Petroleum Services Association of Canada, which represents Canada’s oilfield service companies, was the first organized group to release a formal comment, saying it was “gravely concerned” with the royalty review report’s recommendations.

The Canadian Association of Oilwell Drilling Contractors issued a press release Sept. 28, also refuting the royalty panel’s recommendations.

But the most outspoken has been the Canadian Association of Petroleum Producers. In addition to press releases calling the royalty panel’s report flawed, CAPP President Pierre Alvarez has been telling anyone who will listen that higher royalty rates will impede investment, activity and growth in Alberta’s oil and gas industry. In a speech to the Calgary Chamber of Commerce on Oct. 2 he said the panel’s report calls for significantly higher royalties and taxes, but suggests there will be no overall impact on industry investment, activity and growth: “The basic assumption is that the size of the ‘pie’ will not change,” said Alvarez. “Past experience, in this country and around the world, just doesn’t support the panel’s view.”

The Calgary Chamber of Commerce is also raising concerns about the report. It’s worried about the impact on small and medium-sized businesses. Forty percent of the Calgary business community is directly tied to oil and gas, the chamber said.

—Petroleum News






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