Could Saskatchewan become more oil investor friendly than Alberta?
Alaska Support Industry Alliance Analysis
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(Reference today's articles below)
Alaska and Canada Pay Attention: To investors, costs matter and costs include the cost of taxes and royalties and regulatory requirements and reneging on tax credits.
Go ahead and demonize the goose that lays golden eggs. Try to popularize the 'taking' of more private wealth for public redistribution using tired, old and untrue "fair share" arguments. Sure, you'll rip off investors for a short period of time but you will deter future investment and injure the sustainability of natural resource industry jobs and government revenue and the prosperity of your children.
Just be on notice that when you do that, and when investment dries up and when you try to wrongly blame the poor economy on the "big bad rich people" for your pathetic decisions, we'll be here to call your bluff, you terrible, intellectually dishonest public officials!
Do you really want us to help our fellow citizens remember that it was you who sharpened your state's or your province's reputation as an unreliable investment destination where, sadly, "a deal is not a deal"?
Investors matter. -dh
| Alaska Public Media. Are North Slope oil tax credits a good investment for the State of Alaska? That’s the question asked by a recent report from the Department of Revenue. The researchers answer: No, not compared to other options. But some experts say the paper doesn’t give the tax credits a fair shake. (Go ahead Alaska, change the rules of he game, delay and veto tax credits. See where that gets you! -dh)
Quotation From Alaska Support Industry Alliance Analysis: Tax credits were created to encourage a desired behavior by industry. |
Fraser Institute. If history is any indication, the NDP government’s review of Alberta's energy royalty regime could serve as a deterrent to new investment in that province’s oil and gas industry, finds a study released today by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.
“While the Notley government is delivering on a campaign promise to review royalty rates paid by the province’s oil and gas producers, it must tread carefully. When the Ed Stelmach government launched its review in 2007, there was an immediate plunge in investor confidence,” said Kenneth P. Green, Fraser Institute senior director of energy and natural resources and author of Fallout from the 2007 Alberta Royalty Review Panel.
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Legislators, Governors and Premiers note: Saskatchewan and BC have learned from history and are seeking to attract investors. Alberta and Alaska, however, recently voted out leaders who attracted investment and are now considering a repetition of past policies. Past policies increased tax (Alaska) royalty (Alberta) costs while deflecting investment. -dh Petroleum News. The British Columbia government of Premier Christy Clark wants to tie the hands of current and future administrations over 25-year periods by shielding projects against any changes to provincial taxes and regulations. A 37-page project development agreement signed in May with Malaysia’s Petronas, operator of the Pacific NorthWest consortium, is designed to establish the “rules of the game” for Pacific NorthWest that will carry over to any other projects, Finance Minister Mike de Jong said. He said the deal provides a “measure of stability.” (Measures of stability are what all mega-project investors need in order to pass 'due diligence' hurdles. Are you listening, Alaska and Alberta? -dh) |
Petroleum News by Gary Park. No Canadian province has experienced longer rule over the past 60 years under the left-wing New Democratic Party than Saskatchewan and no province has been more averse to the NDP than Alberta.
The tide turned in 2007 when Saskatchewan elected Brad Wall as its premier and installed his conservative-minded Saskatchewan Party as its government.
That might have been a mild shock, but it was nothing compared with the May landslide election of the NDP in Alberta, ending 44 years of unbroken Conservative Party rule.
Nervous tremor in Alberta
Under Premier Rachel Notley, the new Alberta government has sent a nervous tremor through its mainstay oil and gas sector by pledging to conduct a review of royalties, possibly starting late this year.
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