The benefits from Alberta's new royalty incentives will be "material" and "significant," according to research reports that emerged overnight following the announcement on Thursday.Source
Provincial Energy Minister Ron Liepert went much further than most anticipated in announcing a series of royalty holidays for specific types of oil and gas activity, as well as confirming details or "curves" associated with lowered maximum royalty rates announced in March.
Analyst Robert Fitzmartyn of investment bank First Energy Capital said Alberta companies will have to crunch the numbers over the next few weeks to decide whether to adjust their capital budgets but the changes make it likely that activity will increase.
He said it remains unclear whether the new regime will make Alberta a better place to invest than other jurisdictions, given the ever-changing royalty picture and rising and falling commodity prices.
Saskatchewan, for instance, announced Thursday it would cut the maximum Crown royalty rate to 2.5 per cent on the first 882 million cubic feet of natural gas produced from every horizontal gas well drilled between before March 31, 2013.
Maxime
When you over-tax corporations they ...
- leave
or
- pass it on
or
- lay off workers
By now, the socialist experiments of various provincial governments across Canuckistan should be proof enough to Canadians that Robin Hood means a lot of mediocrity for everyone ... except bureaucrats, unions, NGOs, and parasites. For example, under Saskatchewan socialists the province vastly expanded government largesse and government corporations, and unions ruled the roost ... yet the province languished. Now, under the much more capitalist friendly Sask. Party, the province is forging the strongest economy in Canada ... and among the strongest in the entire Western World.
Bonus Read.
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