Alberta Premier Rachel Notley to leave existing royalty rates unchanged

Alberta Premier Rachel Notley to leave existing royalty rates unchanged Canadian Press by Ian Campbell Posted Jan 29, 2016 11:08 am MDT Last Updated Jan 29, 2016 at 3:56 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email It could be the biggest about-face yet for a Premier who until now, told Albertans we weren’t getting our fair share from energy revenues.Rachel Notley has announced there will be no changes on existing wells for the next ten years.Notley addressed industry stakeholders and members of the media Friday morning from the Hyatt Regency, after revealing the results of the royalty review.“The straightforward message I have for every person who wants to know about the government’s plan on royalties is this; our new royalty frame work recognizes the reality of our economy today.”The premier was making reference to how the new “scheme” will leave rates unchanged.“Alberta oil and gas explorers and producers – whether they are your employers, your customers or the people whose shares are in your RRSP – they will know today that the oil and gas wells they drilled this year and in previous years will pay royalties in the same way they have since they were drilled.”Notley says this will provide the industry and more importantly investors with the confidence they need moving forward about the energy sector.“And when those Alberta explorers and producers are making their plans today – for drilling in 2017 and beyond – they will know this; those new wells – even under the panel’s modernized framework – will give them the same internal rate of return they would have earned on the same well drilled in 2016, subject to a) them meeting or beating average industry costs of drilling and b) prices remaining with the range that our extended drilling incentives stay in play.”In a bid to empathize with Albertans, Notley said she knows “we’ve been through a lot” but believes it’s our determination that will help us come through this recession.She once again, cited the importance of a strong, environmental framework that will attract consumers to our natural resources.“We won’t shout at or threaten Canadians in our principal markets. But we will act as a climate leader among the world’s major energy producers by: cleaning up our own act; engaging constructively with other provinces and stakeholders; and being a good partner to Canada’s new federal government as it works to keep its commitments on this issue.”In less than a year, since the election, it appears to the Premier’s focus may have changed from what is still posted on the Alberta NDP’s platform.“The PCs have also refused to implement realistic oil royalties, that the people who own the resources – all of us – deserve. The reason for the refusal is clear; Jim Prentice and the PCs are too close, much too close, to a small minority of Albertans who benefit from the status quo under the PCs” it reads.It’s also however no secret that the price of oil has continued to plummet since Albertans cast their ballot at the polls.Notley says the recommendations they’ve adopted will respond to the pain and the uncertainty that workers and families are feeling across our province.“It’s designed to encourage more investment and more jobs than we’d otherwise have,” she told reporters.“We (Albertans) will agree often and disagree occasionally, but we will: innovate and control our costs; maintain investment and maintain and create good paying jobs – including new jobs adding value to our resources and developing new innovations; gain greater revenues for the Heritage Trust Fund over time; be world climate leaders among energy producers; and persuade Canadians, with evidence and with reason, of the importance of our resources and of us gaining new access to markets.”Notley’s comments alluding to recent opposition from provinces like Quebec, where Mayors like Denis Coderre have vehemently opposed Energy East.“We can look at the public policy, business and environmental issues together, and make practical progress that makes practical sense.”She made her comments in downtown Calgary with investors and stakeholders, getting the same update as media in an adjacent room.Plans for the royalty review have been revealed as crude continues to trade around $33 U.S. a barrel.

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