Pity Severely Normal Albertans

For alternative energies, it mostly promotes development of energy-intensive, non-conventional resources--such as coal-bed methane and the oilsands--which it proudly calls the "next Alberta." It proposes that the taxpayer subsidize industry with $200 million in royalty breaks in this regard - at a time when oil and gas companies are making record profits.

There is no mention of the fact that North American natural gas production peaked in 2001, or that oil prices have reached record highs of $70 a barrel. Terms like "energy conservation," "efficiency," and "peak oil" fail to be mentioned.

PREMIER RALPH IS THE MAN WHO (IN HIS WORDS) LEADS THE "SEVERELY NORMAL"
LINK FOR “SEVERELY NORMAL ALBERTANS": http://www.cbc.ca/story/canada/national/2004/10/28/aish041028.html

Is Alberta going broke?
http://www.cbc.ca/news/background/realitycheck/20060705sheppard.html

production from so-called conventional oil and gas reserves is dwindling noticeably, and has been for a few years and with that comes a similar reduction in the up to 40 per cent take the province pockets from royalties on these conventional resources.

the Ralph Klein government negotiated a new royalty regime in 1996 requiring only a one per cent royalty on revenues until unconventional capital costs (which tend to continue) are accounted for. Of the total resource money collected ($14.3B), only $905 million came from the oilsands (even less than lottery revenue)

there are three structural components to the box Alberta finds itself in, none of which is easy to change.

First of these obstacles: the oilsands royalty regime: oilsands operators pay one per cent on any revenue they earn until profits exceed their capital costs. After that, the royalty is supposed to rise to 25 per cent of net revenues, (traditional royalty level) … BUT: Operators can choose, within limits, to pay royalties on either the raw bitumen (“substantially less”) or the upgraded synthetic crude. These oilsands are expected to account for 90 per cent of Alberta's oil production within the next 10 years - one barrel of $50 bitumen earns the province 25 cents.

The second obstacle is Alberta’s pride in not having a provincial sales tax.

The third obstacle is Alberta also has the lowest tax regime by far of any province - something it calls "the Alberta advantage."

Little wonder the province has been trying all these years to keep the lid on health-care and education spending.

25 CENTS PER BARREL FOR THE "SEVERELY NORMAL ALBERTANS"
LINK FOR “SEVERELY NORMAL ALBERTANS": http://www.cbc.ca/story/canada/national/2004/10/28/aish041028.html
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