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Alberta to cut royalty rates with two new programs

Changes aim to squeeze out more oil and gas production


 
A scarecrow, used to deter birds from the tailings pond, stands near the Syncrude Canada Ltd. upgrader plant of the company's mine at dusk in the Athabasca Oil Sands near Fort McMurray, Alberta, Canada, on Tuesday, June 2, 2015. Canadian stocks rose a second day as commodities producers rallied after the price of oil climbed to the highest level this year while gold and copper led metals higher. (Ben Nelms/Bloomberg/Getty Images)

A scarecrow, used to deter birds from the tailings pond, stands near the Syncrude Canada Ltd. upgrader plant of the company’s mine at dusk in the Athabasca Oil Sands near Fort McMurray, Alberta, Canada, on Tuesday, June 2, 2015. (Ben Nelms/Bloomberg/Getty Images)

CALGARY — The Alberta government is introducing two new royalty programs to encourage the energy sector to spend more on developments in their early stages and squeeze more oil and gas from underutilized existing operations.

Under the programs, companies would pay reduced royalty rates on those projects for a longer period.

CEO Tim McMillan of the Canadian Association of Petroleum Producers says the new royalty system recognizes the higher risks and greater costs of drilling associated with emerging developments and wringing out as much oil and gas from ongoing operations.

The changes were recommended by the provincial royalty review advisory panel in January.

They are to take effect as of Jan. 1, at the same time as Alberta’s overall new royalty framework.


 
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Alberta to cut royalty rates with two new programs

  1. So, we’re STILL giving Big Oil incentives to continue destroying the planet?
    When are we going to realize that the Earth’s climate is irreversibly broken?
    When are we going to say that enough is enough?
    Will it be when the food stops being delivered to grocery stores?
    Or when forest fires, droughts, and floods become a daily thing, worldwide?
    What happens when the crops all die?
    The last nine months have been the hottest months on record, consecutively. This trend is continuing with no end in sight. Next year it will be hotter than this year, and the year after that it will be hotter still. There is no escape.
    The Earth…. it gave us everything and we respond by destroying its biosphere.

    • I don’t see any negative comments from you on the article announcing that the federal government is still expected to give Bombardier $1 billion dollars to produce jets so I am guessing you are okay with Canada being in the aerospace industry, just not in the jet-fuel industry. You are okay with Canada consuming fossil fuel products as long as we don’t drill for the fossil fuels ourselves because as consumers purchasing fossil fuels and their by products, we don’t destroy the earth. You must be one of those people who rides around in a kayak made of petroleum products at protests against the industry. Let me guess….you love Obama but don’t realize he has a tar sands in runs in Utah. You also don’t know he is selling records amounts of coal to China and fracking volatile oil out of North Dakota that blows up trains and anything in its path and as an aside, causes earth quakes. You believe he is an environmentalist, don’t you? Not really. He is the biggest oil producer in the world. Hate to break your bubble. We in Canada can try to lower our emissions from less than 2 percent globally and keep buying from great countries like Saudi Arabia, Venezuela and Nigera where they treat their citizens really awful or we can wake and smell the coffee and realize that we are petroleum consumers so that fact that we are producers makes little or no difference. If you want to “leap”, then I suggest you start looking at all the products you use that are made from petroleum and start planning never to travel by plane…oh and start lobbying your federal government to stop subsidizing jet companies because jets are never going to fly using electricity.

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