Home › Forums › Coking › News: DCU, Upgrader › 3.Upgrader (registered users only) › Alberta to raise Oil / NG Royalties 2009+ › RE: Alberta to raise Oil / NG Royalties 2009+
Alberta raising Oil/NG Royalties after 2009 from 1% to 9% before investment payout & 25-40% after investment recovery = Proving once again that US does not have sole ownership of Government stupidity = Canada, Europe & rest of the world have their fair share as well. As the article indicates this was pure political play – to get public appeasment & get re-elected – it doesnt stand chance to pick up the $1.4-$2 billion in incremental revenue (due response reactions it is likely to set in motion). An action like this will only cripple projects and cause them to cancel or move to one other regions. (A Tax proposal that was going to be implemented with Royalty change has already been cancled.)
This political “plan” does not exempt Canadian producers Suncor & Syncrude that are worlds largest Oil Sands producers and even though their Royalty agreements don’t expire 2016, pressure to have them adopt the new rates early (or face worse ones?) is already being applied.
Alberta already has 56-66% (depends on oil price) of the Oil Sands Revenue and this panel’s proposed plans change that to 64%+…… but stock prices reactions for OS producers are already in freefall & the plan has lot negative feedback <Greed on this level seldom works long term>.
But this does put a question mark around Alberta Upgrader & Coker expansions as well as the US Refinery Coker expansions that were to use the Synthetic /Blended Bitumen crudes.