What should the government do with royalties? Simple. Follow the royalty report's recommendations.

Will they? Not likely!!

I reserve judgment of Premier Stelmach's handling of the issue until he actually 'speaks' to it!! The opposition parties have given the Premier a gift, by supporting the report. Three parties agree on one issue, Heaven forbid. The oil and gas sector has had it too good for too long, and now, they complain about paying a fair share! Please! Sounds like an election issue to me!

I believe the Alberta government should bring in royalty changes as set out in the review.

No oil company is going to give Alberta a pat on the back when the oil is gone and sell gasoline at a reduced rate because we were nice to them.

Alberta is the biggest 'game' in town. They were taking the oil happily at $30 per barrel. Now it is $90 and rising. No one is going anywhere.

I would be in favor of substantially raising the royalties if and only if those royalties were equally shared with all Albertans. That is: if each Albertan received a cheque from the government every year depending on collected royalties.

Only once in the history of Alberta did Albertans receive a $400 cheque from the surplus of collected taxes.

However, the government is a private corporation; if the government increases royalties, they (the government officials) will spend those royalties on their luxuries while the vast majority of Albertans will remain dispossessed and in poverty.

Government ownership is not public ownership.

If the public were the owners, they would receive regular dividends from the royalties and any government sale of land or resources would require approval in a plebiscite or referendum by the vast majority of Albertans. Clearly this is not so in this province.

So it makes no difference to me if increased royalties pass from one privileged minority (private oil and gas companies) to another privileged minority (the government) while I and the vast majority of Albertans receive nothing.

NIKKI D.

If we compare the oil reserves in Alberta to the world, it tells us that it is second to Saudi Arabia. If we compare the living standard in Alberta to Saudi Arabia, I think Albertans are way behind it. Therefore, the recommendations should be implemented AS IS.

The oil companies who are threatening to leave should be allowed to leave since this gap will be filled by investors from all over world in a really small fraction of time.

1) Until the Arctic becomes significantly more appealing to developers, Alberta will remain the prime attraction for oil and gas industries. The idea that they will pull up stakes if required to pay higher royalties is ludicrous! Premier Stelmach needs to step in and claim as much as possible for now and retroactively for past years of theft.

2) Albertans have been robbed for too many years and need to claim what is rightfully theirs, or do the job themselves and kick the developers out and make the oil patch a public affair.

3) Ralph Klein allowed the theft of resources during his watch. There needs to be a full and public inquiry to determine what happened and how he (and his crew, including Stelmach) may have benefited from their pandering to the oil patch.

4) Additional resources need to be put into education and training first and foremost with an emphasis on health care and distance education programs and services. Next to oil and gas, Alberta's best export is its first-class academic institutions and training facilities.

I wholeheartedly agree with Chuck, take the money Alberta has been robbed of and invest it in education.

There seems to be a huge issue made of the higher proportion of women in Canadian universities than men. Makes sense when one thinks that a male graduating high school can make $80,000 a year with no additional education or training by doing manual labor on the oil rigs... or spend a few years in university or college and earn a degree just to make that same amount of money each year with their degree. It's sad how the oil patch workers are so overpaid. Instead of the oil companies threatening to pack up and leave Alberta (which we all know they will never actually do), why don't they just pay more modest salaries to their employees as proportional to education and experience - that will save them the $2 billion in royalties and everyone will be happy (except for the young males who now might actually have to pursue further education to make such a grandiose salary). Much of the money made by the riggers ends up being wasted on cigarettes, alcohol, and environment-unfriendly trucks... why not invest it in something a bit more meaningful to society like an education?

I think it's important to examine how the numbers in the report were arrived at. Did they account for the latest exchange rate? Did they account for our current level of social services in comparison to the countries we're comparing ourselves to?

If it's not apples to apples, the report is flawed.

Premier Stelmach has not shown a backbone since being elected. This is his chance.
He should have embraced the complete report as soon as published. I voted for him but that will change if his government backs down to big business over this. Get it right or prepare for a large public backlash.80+% of the public want this as written.

To Sherilyn:
Not all riggers spend thier money on "cigarettes, alcohol, and pick-up trucks".
This is not a gender issue, or an education issue. It's a matter of economics. Please don't stereotype.

And yes, the threat to leave (or postpone) work in Alberta is very real. Please look up the history of the NEP and how it caused the greatest Recession in Alberta since the 30's before you suggest repeating it. I have a wife, family, and new home that depend on this industry. If my wages don't increase and my mortgage goes to %18, I'll lose it all, and so will tens of thousands of Albertans.

Interesting to read the comments. I wish we here in Saskatchewan were discussing this very topic during our provincial election campaign.Strangely, not a word on changing our royalty rates in this province, from any politicians in any of the parties. We need to take a few lessons from Danny Williams in Newfoundland. Too bad he is not running in Saskatchewan or in Alberta's possible upcoming election!

The oil and gas companies don't need Alberta. They should all pull out and focus their energies elsewhere, leaving Albertans to drill their own damn wells. By dividends from Talisman Energy run to about 17 cents a year on a $19.60 share. That is worse than "bank interest" That is a return of less than 1 percent. We could do better by exploring and exploiting other parts of the globe. Get yout "Black and DEckers" out and start drilling!

This is not a yes or no question. It's a political issue that will bring both yes and no. The amount of yes and no depends on the politician and the times. My guess is Mr. Stelmach will eventually say 50% yes and 50% no - 50% increase now for the voters and 50% for oil, with a promise to phase in the rest later. This will appease the voters for now and give oil a chance to adjust. How soon the phase in? That depends on the reaction of voters who are still passing judgement on the new leaser and government.
Frank

The NEP was put in play in 1980, when oil prices were right around $40/barrel. In the mid-80s, the price had fallen once again to the $20-25 range. Now, and for the foreseeable future, prices will remain at record prices. No one knows how long this will last and we should all look to the future and plan accordingly.

Alberta has always done well with oil and it's a matter of opinion as to whether the NEP caused a recession in AB - perhaps it had more to do with the fact that the industry was already bloated and the 'recession' was really a correction? Sound familiar? Bottom line: If you make a living in a high risk sector, be prepared to deal with changes. NEP today, war tomorrow, Hydrogen vehicles the next day.

These days, people are high on big wages and low interest. People may well lose their homes, but this will not be due to oil prices or royalties so much as bad planning - you can't simply finance your life away and expect prices/wages to stay high enough to support it. Sorry, just the facts.

We need to support our fellow Albertans and Canadians and use our resources to further our own future interests. Take your heads out of the sand, folks.

Big Oil corporate executives are taking millions in their pocket in the form of bonuses. It's about time Albertans take their fair share. If the oil companies want to go and invest elsewhere, India, Russia and China will be happy to take over. After all, huge US Oil companies are looting us off. I can proudly tell them to go back to the south.

I am an ironworker in the construction industry and i make good money related to the oilsands, but i have a modest home and bought 2 used cars for my family. If big oil pulls out i will not lose my home because I didn't buy a house and cars on the edge of my credit limit due to the high wages.

I don't think any oil companies will leave and the natural gas industry has been slow for years. I would like to see the report recommendations adopted as is.

If the economy slows down it would be a good thing so the rest of the province can catch up.

This is a time the provincial government has to stand firm, make a solid decision, fair to the the oil & gas sector and receive fair compensation for our non-renewable resources.

If the players plan on cutting back, there will be others that will gladly take their place and reap their rewards in our province.

Employment has always been a cyclic path, so if there is a slowdown, the few that are not prepared may be challenged.

As with life,we make choices.

I agree that an increase is necessary. Should this slow the industry perhaps that is a good thing; slow the overheated economy, allow time to consider the impact on our northern environment (oil sands), and to allow infrastructure to catch up. In the meantime, prices will rise and eventually, even more will be achieved for all at a higher price.

As far as dividends referred in an earlier post, that stock has risen from ~$14.50 in the three years to the current ~$19.50. Not bad and it does tend to beat the bank. Sounds like it might be a good time to sell.

This is the type of decision that changes governments -- it is time for a change and new ideas.

The report is flawed -- there is no such thing as a "fair share"; Alberta has to compete on an international basis for capital investment. The economics are simple: jack up royalty rates and you're stemming oil co's revenue, this will limit new capital investment in Alberta and we will simply get a bigger slice of a smaller pie. Good for Alberta? -- hardly, considering how many of your jobs are tied to this industry.

Some change is required, no question. But the 20%, on top of low gas prices, cancellation of trust agreements, etc. could put economy of this province into a tailspin.

For those of you who think your job has nothing to do with the oil and gas sector, think again. A significant amount of the money that lands in the hands of hotels, furniture stores, car dealership, restaurants, dentists, lawyers, etc. comes indirectly from oil and gas. I suggest we all be careful about cutting off the hand that feeds us.

1. Mr Stelmach should not only follow the full royalty recommendations he should make this offer to only companies willing to invest within the next 48 months. Companies wishing to enter the oil industry outside of this time frame (or companies who leave and come crawling back) should have to do so at even higher rates. This might shut up the "Big Oil" so called threats (Bluffs at best)

2. The Premier is in a "need to know" position. The royalty review recommendations were already a compromise between Oil Companies and the Province, as well they were based on $64/bbl oil prices.

3. I feel many Albertians/Canadians do not see the big picture here. This decision has the potential to change the economy dramatically for many years to come. Oil is what makes the world go round today. This is a fact! Many people say "Money makes the world go round" but in essence Oil is the money. Oil is non renewable and Alberta has the second largest reserves in the entire world only behind Saudi, which would probably not be the most stable place to extract/refine oil (if you value your life anyways) As far as "Big Oil" Alberta is #1 on their radar screens and they are not going anywhere!!! Besides if we look at the worst case senario possible, we might prolong things and save some of the prosperity for our children. Not so bad if you can look past our greedy way of thinking.

4. "A Crude Awakening / The Oil Crash" - 2006 is a must see movie. It should be mandatory viewing by all Albertans.

5. If "Steady Eddie" does not impliment the full recommendations tonight it will be time for immidiate change in political parties!!!!!!!!

Albertans get what is yours and stop the big oil companies from destroying and raping the country side and then leaving when there is nothing left.

I am surprised at the infantile US (downtrodden but so deserving) vs BIG BUSINESS (always ready to rip off the poor little guy) attitudes that are posted. Grow up. The average Albertan is not an investor. Take away the impetus to attract Canadian and international investment and any business will cut spending. No, they won't necessarily go away, they will just send their money elsewhere where the returns are better. In order to keep me as an investor they would have to do just that Simple really.

There's a strong us vs. them flavour in this forum, and the general consensus amongst those in favour of the increased royalties is a) oil companies are 'threatening' to decrease activity, b) oilfield workers are overpaid and foolish with their money, and c) a host of social problems with be solved with a little bit more money.

Well, oil companies aren't threatening anyone. This is something that's hard for the general public to grasp, but the president of an oil company isn't sitting on some mountain of gold; the money they earn this year goes directly into next years budget - sustaining the company's activity and pumping dollars into the AB economy. Any down-turn in profits is going to result in a down-turn in activity during following years. When projects don't meet economics, they're cancelled. That means people in the field are out of work. That's not a threat, that's reality.
Oilfield workers make a lot of money, and in my opinion they earn it. They're a crucial part of the puzzle, and put their lives/limbs on the line every day. And I'm sure old Flo at the Bonnyville Motel isn't so cynical as to how they spend their money.
Finally, where in Canada - or elsewhere in the world - is healthcare and education not in trouble? The oil industry pumped 10 billion dollars into Alberta last year. Taking more money in isn't the solution; wise and equitable use of existing money, is.

I wonder how many people would be so eager to get an extra $500 on their Klein cheque if it meant their neighbour 3 houses down lost her job?

Looking at the comparison chart on this website, it upsets me to think that China can have royalties in the 90% range, and yet big oil is telling us we can't do the same. It's obvious China is booming AND maintaining a very high royalty rate for its citizens. We cannot possibly be lagging the Chinese, are we??

So...our government wants to hike up the royalties collected from the oil companies? What do you honestly think the oil companies are going to do? They will, of course, pass on the increased cost to their CUSTOMERS and, guess what, that's US, as in You and Me, lowly ALBERTANS to pay the added taxes. They are, after all, COMPANIES in our CAPITALIST economy. Give your heads a shake!

Also, do we really want to give our government MORE $$ to throw away? Where, exactly, have they spent our Heritage Trust Fund? Has anyone seen it at work IN ALBERTA lately building new schools, drawing new doctors to our rural areas, repairing our aging transportation infrastructure?

Who, exactly, do you think the "oil companies" are?!? "They" are ALBERTANS - there are several "oil companies" that call Calgary home. And who, exactly, do you think they employ? Hmmm... Albertans. So who wins here? Nobody. Drive the companies out of our economy and we ALL suffer.

That's it - stick it to the "oil companies" and we stick it to ourselves.

Leave the royalty system as it is-if you don't the industry will vacate Alberta by a large degree.

Norway gets about 78% of revenues that are earned by extracting oil there. Alberta is sitting at about 47%, even the war-torn Nigeria gets more! Norway also has $160 Billion saved up from royalties - Alberta, with almost the same size population, only has about $15B in the Heritage Fund. Only Alaska has a more corrupt government. There is no reason to give away our resources, Alberta is currently the only politically stable place with new recoverable oil reserves. Basically, the only new game in town (globally!)

Unfortunately, I do not believe that the current government of Alberta will ever have the spine (or ethics) to do the right thing when it comes to corporations. Oil companies are simply bluffing so they can keep stealing billions of Albertans' money (on top of what should fairly be theirs).

Last year Encana made $7B in profits, and the new royalties are supposed to bring in an extra $2B to Albertans - therefore, only one company could afford it, let alone the entire industry! The cuts in investment are coming anyway due to the falling gas prices (caused by the warming climate) and NOT due to changing royalties. Remember how oil companies threatened Danny Williams in Newfoundland? Well, they are back at the table now - and he kept his spine.

What we need is a public campaign finance law that forbids corporations and rich individuals from buying off the government during elections. Until we have that, our health and environment will be sacrificed and Albertans will continue to receive only the scraps. It serves us right for letting one party sit in power for 40 years. In order for the party to get $1M or so in campaign contributions from the oil industry, they give up billions of Albertans' money to those companies. .

Albertans need to wake up to the fact that oil and gas execs make millions each year while 40% of Albertans can barely afford rent. I wonder who will stay in this province to provide the much needed labour if people can't even afford to live here. Higher royalties are necessary to offset the negative effects of the boom, and in fact, to slow down the economy. Economic growth of 6% per year is unhealthy and causes huge inflation (as we have seen in Alberta). We do not need to pillage all of our resources within a few years.

What about global warming? Oil companies don't even want to pay $1 or $2 per barrel for implementing Kyoto. But then, why should they? The government in Alberta will never do its job, and they can keep profiting at the population's expense. Good for them!

Oil companies will leave the province when the resources are depleted. So why should we give them a free ride? We are asking for a fair share of the resources which we own. We need to build hospitals, schools, roads and a better life for us and future generation..If they want to leave the province (oil companies) there are other big players waiting in line to come from China and India..So my dear Albertans do not worry. We will find other companies..

The companies won't leave.

Anyone saying they will is probably a rabid market fundamentalist.

Take Exxon and Connonco to the cleaners

THE REAL DEAL!!!
The oil patch isn't just a job, it's a way of life. People who don't know anything but just follow what they hear on TV have no idea how fragile this industry is. From what I've read so far in these comments, I think that you don't understand.

If your next meal depends on a phone call from an oil company that needs work done, then you'll understand. This year alone, with natural gas price drops, the gas industry slowed down at least 75%. Now add on a rising dollar and threat of rising taxes on top, and there isn't a lot of "big" oil spending going on.

Most of the companies I work for at the moment are Canadian, heck they're Alberta owned and they're not spending a dime.

So imagine a city slicker working at a bank that made commission only off every customer that they had served and that was all they got to live on. Then, one day, the bank decides in a magical dope-smoke-filled brainstorm to raise interest rates and bank fees. You'll have customers still coming through the doors, but only to move their investments else where once they've found out about the uncalled for hike. So how are going to pay off student loans, vehicles, and a morgage with no customers. I DON'T KNOW EITHER!!

P.S. Just because we work in the oil patch and didn't go to University doesn't make you any smarter than us. Most of the guys I work with are 10 times smarter than most engineers will ever hope to be. Just because it looks good on paper, doesn't mean it's going to work.

Raise 'em.

Cheryl:
Yes, China has royalties in the 90%. They also have an average wage of $0.57/ hour.

Alberta's 4.5 million people can not compete with China's 1.3 Billion.

Again, let's compare apples to apples, not apples to water-buffalo.

Hiking royalties would be a bad thing for ALL Albertans. RBC bank recently issued a recommendation that everyone should read, and they are an independent 3rd party that is only interested in the welfare of the economy. While we gain short-term royalties, we would lose any long-term investment by oil companies, and our entire economy is based on energy. Energy suffers, we all suffer. Why slap the hand that feeds us?

We are not on equal playing field with other governments when it comes to operating costs in Canada. Companies looking to invest take into consideration more than just royalty percentages, they look at wages, transportation and building costs, etc. 70% royalty here would be a worse environment to drill in than 70% in say...Saudi Arabia, or Venezuela (cheaper labour).

Sean said it best, I'd rather have a smaller share of a much bigger pie thank you.

Most people writing these comments don't understand the real issues. Even a little unbiased research would conclude the following:

1. What is the point of raising royalties? The answer is to have a better quality of life for Albertans through increased government funding.

2. Quality of life includes government funded projects like roads, schools, hospitals. But it also depends strongly on your individual standard of living, your career, the economy, your working hours and home life, and the opportunities that exist for your family.

3. In Alberta and even in Canada, the entire economy is driven by resource exploration and production. Every industry, whether you're a waiter or an artist or a banker or a construction worker or a small business owner, your standard of living depends directly on the economy, i.e. the growth rate of the economy.

4. To see whether we should raise royalties, we just have to compare the benefits of more government spending with the negative aspects of reduced investment and reduced economic growth. There should be an optimum point where raising them too much would slow economic growth too much, and raising them too little would not give the government their fair share.

Also, if people looked into it some facts:
-Companies do not invest based on royalty %, they invest based on rates of return. Since in Alberta the oil and gas is expensive and difficult to extract, we have lower rates of return.
-Someone talked about oil prices now being so much higher than in the 80s when NEP was introduced. Actually, the inflation adjusted price of oil today is lower than back then.
-One of the main reasons the public keeps seeing these massive profits is companies only invest in projects or wells that make money at $50 - $65/bbl (so the extra 25-40$/bbl goes to profits). Obviously this is to reduce the risk.. There are absolutely no guarantees that oil will remain at $90. If you think this is conservative, try to do otherwise and see if anyone will invest in your company.

Know what your talking about before you assume that "big oil" is screwing you. Actually most oil and gas in Alberta is produced by Canadian based companies, so our money is not being robbed and sent away to foreign lands.

We have been sold out it is time for an election.

I'm disappointed. Adopting 3/4 of the panel's recommendations, which was already a compromise, is a sell-out. He could have done more to ensure we are receiving the maximum return for our non-renewable resource.

Now that rates are going up 20% I expect the doom sayers will be selling their homes and declaring bankruptcy. If the sky is indeed falling, we should see the consequences in the short term.

This is all good news for Alberta and Albertans. Stelmach should not stop here, but I expect his industry lobbyists will keep him in check.

I was hoping Stelmach would have stood up more firmly to big oil. Giving the industry until 2009 is a 14-month royalty holiday and a cop-out. Also, not charging oilsands developers the surcharge recommended by the panel is troubling.

It's clear to me that most Albertans don't understand the oil industry.

Rather than looking at profits, why not look at how much a company invests in Alberta each year to get those profits?

The oil companies will just take their investment income elsewhere. The real losers here are Albertans.

Why must we wait until 2009 to see increased royalties? And why was there no reference to the billions the Auditor General said should have been captured? Fred Dunn clearly said we should have raised royalties years ago. Why, now, are we waiting another year and half before getting what we deserve?

Good news for Saskatchewan. This will not play out in anyone else's favour.

I hope you're all gonna chip in for my bills when I get laid off. You'll do that right? Right?

Hmmm. Didn't think so.

And where, pray tell, do you think this 1.4 Billion dollars is going to go? You're naive if you think it'll ever come back to us.

Alberta needs to follow Newfoundland's lead in insuring that all non-renewable natural resources produce royalties for future renewable resource development including wind and solar energy. Also, as we equalize the royalty scales by exacting what was due in the past gravy years, we slow down one time oil and gas exploitation. The net effect may be a slower economy which actually will benefit us in the long term even if the developers are crying foul now. Let's stop them from laughing all the way to the bank once and for all.

Premier Stelmach has sold out to the oil companies. I had hoped for much more. Why should we give them 14 months grace? How can Premier Stelmach tell the school boards they have only 3% to give the teachers, when he has given the oil companies a 25% bonus? If only they would listen to former Premier Lougheed who initiated the current prosperity in this province.

I think Alberta/Albertans should get their fair share of the Royalties. We already have a huge amount of oil going to the US to be processed, we need to stop the whole in our border. The oil company Chairmen/Directors can forgoe their multi-million dollar bonuses. These are ridiculous.

It's about time, we have been allowing our oil to leave Alberta for nothing for years...yes, things will slow considerably in Alberta over the next few years, however, the resource we own will also be worth much more in the future.

This boom started when I was about 14 (about1970), Alberta was a quiet place then...I would have survived fine with lower wages, lower house prices and less people...Growth!!!!!!..That's all it was, 900,000 to 3,500,000 people in 37 years and quality of life has gone to hell. Stelmach gets my vote...Ralph gave it away, Period!!

Yes, Ed Stelmach got it right! Some oil companies may take their investment income elsewhere, thus creating a slow-down (on the heels of excessive acceleration). However, and this is the real point, the oil could be left in the ground, as an asset, for future generations.

Premier Stelmach did not get it right but not for the obvious reasons that I have heard the past month. The question we needed to ask was how much royalty money is enough to effectively run the province and provide the appropriate level of support and services?

Our past Premier publicly announced that there was no plan for investment and how to effectively use the royalty money, so no amount is the right amount. What we needed to hear from this Government is how they intend to use the money. They needed to first declare a budget and detailed multi-year plan that would determine how much money is needed. For example, if they intend to actually become debt free then declare the unfunded liability debt is going to be paid off or health care funding increased for specific projects. Without such fiscal responsibility up front, the Government will just piss it away as they have in the past.

Just wondering does anyone know if Starbucks is hiring? Oh wait, that will be the next thing to be taxed because you pay like $10 for a cup of coffee so they must be making too much money too...oh but wait, NONE of us will have jobs to buy coffee with pretty soon.

If any of you believe that you're going to see a dime of this 1.4 billion I have some ocean front property for you in Athabasca. Just remember waiter, carpenter, IT guy, where your bread and butter has been coming from for the last 20 years. Oh and by the way, if you think our roads are so bad maybe you should leave the comfort of your downtown apartment and take a drive to Saskatchewan sometime and see what kinda roads they have. We have it pretty good here people.

Ryan says "I hope you're all gonna chip in for my bills when I get laid off..."

Mike slams engineers and anyone else who has any sort of professional training...

Guys, really, what are these comments contributing to the discussion except to help expose your own ignorance. For Ryan, if you're concerned about your future, consider some different career options and make lifelong learning as much a part of your life as complaining is. Mike, let me assure you that you would not be working in ANY industry if it were not for some engineer taking years and thousands of dollars to train to design the tools and products you use. Oh, and when you need a lawyer, doctor, pharmacist, or teachers for your kids, I'm sure you'll also be able to figure that all out, too, because you're so gifted in comparison.

In 1993 when Klein slashed education and healthcare spending by 20% without warning, he sent the province into a tailspin with hundreds of HIGHLY skilled professionals fleeing the province for greener pastures, an exodus for which we are still paying heavily. I (a teacher at that time) stayed and endured terrible working conditions and reduced wages only to realize three things:

A - Far too many Albertans are blissfully and willfully ignorant of current events, but are only too happy to cry foul when trouble lands on their front step.

B - The Province was (and likely still is) run by very nearsighted minds with no capacity for longterm planning.

C - I am solely responsible for my own financial well-being and that has meant that I've had to find alternate training to ensure that I could always be gainfully/happily employed. Now, I'm a doctor but I could also fit in easily working with information technology, advanced security systems, and home renovations. There's the value of retraining and education.

If the oil companies leave, fine. Leave the oil in the ground and wait for the price to hit $150/barrel or more. In the meantime, Alberta should take the lead in developing and producing alternate energy sources, thereby showing the capacity to think into the future.

There are hundreds of small oil- and gas-related companies operating in Alberta that should be given preferential treatment regarding royalties. That is, let's truly keep the profits local and offer tax incentives to local Co's while levying the greatest taxes and royalties against those companies operating from without the Province, especially from out of Canada.

Finally, please, don't send out any more 'oil' cheques. Invest the money in worthwhile projects that are sustainable and have longterm positive impacts such as in R&D;, training, healthcare, education, and infrastructure (including effective mass transit).

I think that GREED is the ORDER of the day. The oilsands have 14 months to exploit our Alberta resources. They also save a large percentage of royalties. In the end, Albertans are still being taken advantage of.
Oilsands will continue to provide IMPACT Dollars to Alberta, why its in their policy.

If a company cannot afford to explore and mine in Alberta, I'm sure someone else will be willing to. The time has come where the oilsands industry should not steal from Albertans.

IMPACTS of oilsands development are ALL AROUND US here in our province. It's time oilsands developers pay their dues from this decision day to 2009.

What happens to prices at the pumps now? Who will, in the end, pay for the additional royalties going to the Province?

I hear a lot of crying. I was a teacher in the Cal Public system in the late 70's. Left in '80 for the oil patch. Lets fast forward to Klein and spending cuts in early 90's. I think there was a 10% civil servant wage cut across the board. Teachers included and also MLAs took a cut. Many oil people did not get a cut. They lost their jobs. Out of all this something good came and that someone finally realized a lot of education $ had been spent on administration and empire building.

Thank God that less $ was spent on that. I am not sure where this additional 1.4 mill will be spent. For me I don't want to see it wasted on ed. admin. If some of it goes into the classroom, great.

Finally it seems that so much $ leaves this province to support other provinces. Alberta should be keeping more.

Sherilyn; your comments reflect your ignorance and understanding. Please post further sexist, uneducated and ill-informed views to the appropriate forum, i.e. the Edmonton Sun.

First off, I'm from Winnipeg and not an Albertan.
I think Premier Stelmach failed Alberta by not immediately implementing the royalty charge that was recommended.

The oil companies will shy from investment because of an increase to royalties? Puh-leeze, with oil at $90+ a barrel? Any oil company that hesitates to rush in even with the royalty hike will get trampled by 99 other companies lining up to make their fortune...

The only thing delaying the royalty increase does is allow billions that should be going to Albertans go instead to foreign mostly American investors.

Mr. Stelmach could've come out as the champion of Alberta. Instead he comes across as a dithering pawn, a-la Paul Martin.

Albertans should demand better in their next election.

It's our oil!! We should have a much bigger piece of the pie. If some companies pull out, others will be happy to move in. The oil companies will whine of course. They won't be here after this rich resource is gone -- they'll drain it and pull out, and people will lose jobs then anyway.

The royalty increase was the wrong decision for Ed Stelmach. There are some towns north of Edmonton that are build on the foundations of the oil companies staying in our town. It's greedy to hike the royalties up by 20%, the oil companies were not threatening to leave Alberta... they will.

Why would someone want to pay 20 more percent when they can go to a different country and not have to pay those royalties? Wages have increase by 20% in far-east countries, and you can drill a well for a third of the cost, so again why would they stay here. I think that it would be appropriate to say that Stelmach and his panel just bit the hand that feeds them. The politicians won't be the ones who suffer from the royalty increase, its the people. when families start going bankrupt and have no where to go, who will be the ones that are hurt, it's us. why would you agree with the increase when its just a job, you won't hurt the companies, it will be the workers, the families, our children. Businesses better be hiring now, because lots of people will be losing their jobs in the oilpatch, either that or lots will be leaving the country.

One only has to look at the many "peak oil" reports on the
internet to realize that there really isn't anyplace else to go but Alberta, the mid east production is on the decline

Hello,

This is a big issue for the Government of Alberta because this is the main source of income that we have. Without the Oil and Gas probably Alberta will be just a big desert province. Most people are just moving here because of the high wage that is been offered. High Pay is being offered because few people would want to work not related to Oil and Gas. If and when the Oil and Gas industry would go down then many people from this Industry will find other job here, therefore the supply of workers will increase, demand will decrease and wages will decrease. This will ba a big cahin reaction believe it or not. So Alberta Goverment can have the royalties thatthey are asking as long as each citizen of Albetra will banefit from it because it will be the citizen that will get hurt once the Oil and Gas industries decided to Leave.

The royalty proposal is a bad thing. All these people who are in favour of the hike, let me ask you this, when the government is done rolling around naked in this money, how much of it do you think will reach the average citizen? Only if you are on welfare will you see any of it.

This new hike won't hurt the oilsands so much, especially at $90 a barrel. But if you read the news about the companies pulling out, its the Natural Gas sector which is going to get burned. Natural gas is selling at a very low rate right now due to a stronger dollar and and less demand because of above normal temperatures. These wells are very expensive to develop. Some as high as $15 million. On average an oil company at best has 3 dry wells vs 7 producing wells. Three dry wells out of 10 is a $45 million loss.

They only way to make a province or country really boom is to put the money in the hands of the people, buying cars, houses, tv's, etc. So a hit in the oilpatch will cause a lot of grief in the city with the huge amount of lost revenue from sales.

Don't bite the hand that's feeding you.

This one is for mj who said, "It's our oil!! We should have a much bigger piece of the pie." I will correct them, this is not our oil, it's everyone's oil, without the oil companies drilling and servicing oil and gas, there wouldn't be very much. Why would an oil company stay and pay 1.4 billion dollars more, when Montana and the Far East countries are offering cheaper drilling rights and higher wages, basically cheaper EVERYTHING. When people post their uneducated comments it exposes their true greed and ignorance. These companies have been building new infrastructure, and fixing the roads in your community, it�s not the government, and it�s sure not your tax money that you pay every year because that money is going towards redoing the house for the premier and to their really expensive life styles.
For all the people who agree with the royalty increase, just think for a moment, if you had to pay $400 more in rent, your vehicle needed repairs, and you just got a notice that you were laid off due to cutbacks in the oilfield. Soon these people won�t be able to feed their families, and will have to move else where in search of work.
Then there is an anonymous comment saying that oil patch workers can just switch careers its not that hard, your telling me that a 40 year old man can switch careers just like that. That man can�t go to a postsecondary institution because most likely he either doesn�t have a diploma or its too old and needs to be updated. And this person says that Ryan and Mike are exposing their ignorance, well this person is exposing their stupidity.
Your not hurting the oil companies, most of them will leave Alberta before 2009 when the royalties come into place. You�re hurting yourself, your community, and your province. I just hope that I�m not here to see �Alberta the richest province in Canada� turn into �Alberta the poorest province in Canada.�

To all you left wing socialists looking for a free ride on the backs of others, we live in an entrepreneurial society and free market system. It is what drives our economy and creates jobs and allows people to live a decent lifestyle.

I watched what happened in British Columbia after the NDP was elected and those flakey west coasters kept them in the legislature. They bankrupted the province, chased industry out by big and prohibitive royalties/taxes.

They took the province from having a top credit rating and money in the bank to no credit and a few billion dollars in debt. They took over BC Hydro and the BC Ferry system and turned them from profit making to revenue loosing entities by removing all their profits before they paid their bills and then blaming poor management. Is this what you want for Alberta? I belief all citizens and corporations within a fair means should support their societal and infrastructure needs but no one deserves a free ride. The number one employer in BC under the NDP became the ministry of human resources through the great welfare state. They made it difficult for people to get off social assistance for each social worker needed so many clients to support her role and to reduce that amout ment her/his unemployment

John

If, by chance, the big oil companies were to pack up and leave, can I make a suggestion? Maybe our own provincial government should take our annual surplus and create our own oil company. I am not a huge believer in government run business, but at $90 a barrel, even they could not possibly lose money, could they?