Alberta (Dis)Advantage?

[kanabel]

Whoever invested in Alberta or lived and worked until 2008 wishes this golden times again. Back then, neither BC nor SK were as competitive as they are getting more now in oil and gas industry, which is Alberta economic spine. What`s next for Alberta? Is $80/barrel enough for kick start or we need different approach or different political establishment? Here is the link below about current Alberta competitiveness:

http://ca.news.yahoo.com/s/capress/100224/...ess_competitive

In MY opinion Stelmach`s move for royalties was irrational then, as much as I believe Flaherty is doing same political moves with mortgage rules that can bring more damage than success

Cheers

Dejan

 

[bizaro86]

QUOTE (kanabel @ Feb 24 2010, 08:56 PM)
Back then, neither BC nor SK were as competitive as they are getting more now in oil and gas industry, which is Alberta economic spine. What's next for Alberta? Is $80/barrel enough for kick start or we need different approach or different political establishment?




The Alberta Royalty review was a huge mistake. However, the fact that BC and SK are now offering a good business environment is still a huge pro for the Alberta economy. The offices for the oil and gas companies doing that work are all in Calgary, and a good deal of the service companies are based all around Alberta as well. I know a good number of people here in Calgary making excellent money working on gas plays in BC or oil in SK. So that money filters here as well.



Michael

 

[mortgageman]

interesting story on the reportonbusiness website about syncrude scrapping plans for an upgrader because it's far more profitable to ship it to the US




The Alberta Royalty review was a huge mistake. However, the fact that BC and SK are now offering a good business environment is still a huge pro for the Alberta economy. The offices for the oil and gas companies doing that work are all in Calgary, and a good deal of the service companies are based all around Alberta as well. I know a good number of people here in Calgary making excellent money working on gas plays in BC or oil in SK. So that money filters here as well.



Michael

 

[Savard]

Today, I will be printing out this article and sending it along with a letter to the Premier and Liepert. I encourage everyone to do the same.

 

[gwasser]

QUOTE (Savard @ Feb 25 2010, 06:05 AM) Today, I will be printing out this article and sending it along with a letter to the Premier and Liepert. I encourage everyone to do the same.

Stelmach and friends have made an incomprehensible mess of the royalty system. Nobody knows what tommorrow will bring.
The Alberta Government is not only to blame for the mess in the conventional gas industry - they got caught in a perfect storm: a massive economic down turn and an enormous change in technology that made shale gas and tight gas production technically and economically feasible.

We went overnight from natural gas shortage of supply to oversupply. That is the oil and gas industry for you. As a province we have to be agile to react to these changes. Unfortunately the current Conservative Government has become stale, out-of-ideas and incapable of admitting mistakes and correcting them.

So we probably have to hope for an inexperienced Wild Rose government. This will create even more uncertainty in the short term. Cinics may claim that it won`t be that bad, because many rightwing Tories will probably cross the floor so as not to fall off the gravy train. Also, the Wildrose party seems to have many backers from the old Reform Party who putting their weight and experience behind the fledgeling party. Optimists may see much needed fresh air in the stale rooms of government with some behind the scene experienced support.

As for the royalties, they will be corrected I have no doubt, but Alberta`s reputation as a stable place to do business has been harmed for some years to come. To add oil to the fire, normally respectable economist Jeff Rubin states that Alberta`s deficit can be fought by increasing royalties even more, especially in the oil sands, for which we are the last somewhat business friendly bastion. I guess, reduction of overspending especially upon recovery is something unthinkable. We should also deal with municipal governments and their unions who buy proverbial $5000 hammers.

I see the current government as `digging and digging deeper into a pile of sh.t`. Good riddance!