Federal Government Supports Alberta Royalty Plan

The Alberta government infuriated many in the province's oil industry last week by announcing it would hike royalty rates to a maximum of 40 per cent of a company's net revenues. The measure is expected to bring the Alberta government $1.4 billion in extra revenue, a 20 per cent increase over current levels, at a time when oil prices are reaching record highs and business is booming in the province's oil sands. But industry leaders have predicted the hike in royalties paid to Alberta could prompt oil companies to cancel new capital projects and scale back operations. But Prentice, a Calgary MP, dismissed as alarmist warnings by some critics that Stelmach's move would bring an end to Alberta's long-running economic boom. "In the world in which we live, where there is a premium on a secure supply of oil and gas in a stable environment, Alberta will continue to prosper and I think do very well," he said. Despite the angry reaction of some in the oil industry, Prentice noted that much of the commentary "has been pretty measured." .... http://www.canada.com/edmontonjournal/news/story.html?id=ab90b19d-f47e-435d-bc97-6f2b004b0a11 [Proofreader’s note: this article was edited for spelling and typos on November 1, 2007]

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