Alberta Royalty Review = The death of the Alberta oilpatch

[Psyire]

If it were a perfect world this would be a good thing. More money put back into communities and infrastructure. However, in reality it's going to mean less money in the pockets of people and more money wasted by our government as usual.

[digital-audiophile]

I actually do work for EnCana as a consultant


What will happen is that EnCana will invest their money into other areas, Saskatchewan, British Columbia, Wyoming, Colorado. Wouldn't we rather keep this work in our own province?

[Pan]

They invest where they see profit, they see profit here for a long time, its just a typical industry response when asked to give up more of their money. Every industry does it.

[digital-audiophile]

There is already not much profit when gas is at $7MMCF and it costs $6MMCF to produce right now, when the cost now goes up to $6.95MMCF to produce after royalty adjustments it is no longer viable to drill these wells.

This will cause the loss of jobs not only in the energy sector and will do nothing but hurt our economy.

Anyone that is old enough to remember the NEP and what it did to Alberta will be able to talk about job losses and things like people having to sell houses for $1 and walk away from their mortgages.

[Pan]

I'll help you find a new job in my hydrogen powered car :0

[Quagmire]

Personally I think if Encana doesn't like it,they should take a walk.It our oil/gas and if they want it they should be paying us our price.They need our oil more than we need them to drill for it.Any oil/gas company that isn't happy here is welcome to be replaced by one that will be.BTW I'm plenty old enough to remember the end of the last boom,and it was hard for some people,but when we see a 55% rise in profit of an already hugely profitable company,profit made on a resource that is owned by the citizens of the province (myself I think all Canadians should own it, but I don't think it works that way)then its time to spread the wealth.

[Zylumn]

My father in the 50's worked for shell oil co. as a driller. He has mentioned there are still dozens of wells that are still producing that he drilled in the 50's. He is not reaping the benefit of those wells as I am not but hopefully my grandchildren will.
Kevin