Re: The One and Only Climate Change thread...
I see you're moving from viability to discussing price. I suppose we are making progress.
Let's look at oil from Alberta. Natural gas as well. When a person or company drills a well and starts selling the oil or natural gas they pay a royalty to Alberta and to Canada. It's so lucrative Alberta built up a heritage fund from the money. I don't think they are charging any provincial sales tax there.
Alberta then increased the royalties. The gas companies fled the province to drill and produce in better environments. Alberta had to change the royalty to entice the oil companies back and it's not clear how many have returned.
So how much in royalties does a hydro producer pay to Ontario?
Newfoundland has also done quite well on petroleum as has Saskatchewan. This is a cash cow.
The governments make money on oil and gas in the way of royalties from the producers and at the gas pump in the way of taxes. Any incentives they might give to entice companies to drill in their jurisdiction is simply "chump change".
Do you think foreign national oil companies are coming to Canada and buying up assets for hugh amounts of money because the assets aren't viable? Do you think they are doing it so they can pay our governments royalties to take oil at a loss?
I'd been expecting McGuinty to step down before March of next year so the Liberals can get a new leader in place and try to lift their poll numbers.
Originally posted by Paul Beckwith
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Let's look at oil from Alberta. Natural gas as well. When a person or company drills a well and starts selling the oil or natural gas they pay a royalty to Alberta and to Canada. It's so lucrative Alberta built up a heritage fund from the money. I don't think they are charging any provincial sales tax there.
Alberta then increased the royalties. The gas companies fled the province to drill and produce in better environments. Alberta had to change the royalty to entice the oil companies back and it's not clear how many have returned.
So how much in royalties does a hydro producer pay to Ontario?
Newfoundland has also done quite well on petroleum as has Saskatchewan. This is a cash cow.
The governments make money on oil and gas in the way of royalties from the producers and at the gas pump in the way of taxes. Any incentives they might give to entice companies to drill in their jurisdiction is simply "chump change".
Do you think foreign national oil companies are coming to Canada and buying up assets for hugh amounts of money because the assets aren't viable? Do you think they are doing it so they can pay our governments royalties to take oil at a loss?
I'd been expecting McGuinty to step down before March of next year so the Liberals can get a new leader in place and try to lift their poll numbers.
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