Please everybody write your MLA and tell them to put a stop to this. It will cripple the economy in the province. The house you live in will lose half its value overnight. The new hospitals and hiways will disappear. If you think if full of it, Encana has already anounced it will cut capital expenditure by $1 billion. Thats 9 zeros boys and girls, and that is only one operator. This is the most serious threat to the Alberta economy since the NEP.
Sure you can have your opinion, your RRSPs will go in the tank because like 90% of Canadians your mutuals are on the TSX index which is heavy on energy. the ramifcations reach alot further than most people realize. Alberta and Ontario are the only net contributer to the federal treasury. The $14.8Billion surplus just announced by the federal goverment will go bye-bye. I have feelers out already to go overseas this will not effect my income, but it will most certainly effect you and your neighbors. The reports I have read figure that capital expenditure in Fort Mac will dry up to the tune of $26Billion.
The CEO of Talisman just made the announcement that they will cut capital expenditure by $500 million if this review goes through. Cresent Point, which is an intermediate income trust, will move $150million out of Alberta. Talisman is the third largest producer of natural gas in the province.
Go out and stand in front of your house, look to the left and look to the right. Most of the houses are owned by people that are directly afectted by the energy industry. The oilpatch has feed my family for 16 years, and feed me for 34 years. the only reseaon I had groceries on the table as a kid was the oilpatch. My father has been invovled for 45 years. The hospital you go get x-rays at, Who do you think payed for that?
I personally give to 2010 till the economy will plumit. look at in the 70's when our doller was higher then the american. aproximatly 2-3 yrs later the econpmy dropped due to high intrest rates and lack of jobs. haven't you people heard of the boom bust cycle?? it happens everywhere. just our turn is comming. my dad works in the oilfeild building gas well leases and theres already some projects that are getting scraped. my brotehr who workd for a company infort st. john bc got layed off beacue there wasn;t enough work in coil tubeing and wire lineing. my one freind who works in fort mac is still going strong bulding buildings in carpentry. not far from my place in a small town of redwater there is 2 maybe 3 upgraders pland and 2 of the 3 are 100% a go and 1 is already started. some places it will slow, someplaces will still go strong. it all depends where you live i belive but eventually it will all slow and come to a low spot. poor people who bought homes in the past 2 yrs haha!
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I am not a proponant of the outrageous inflation that has been going on the last couple of years. Most people do not realize that 70% of the drilling in Western Canada is for natural gas. Gas prices are off by about 50% from the all time highs reached after New Orleans was flooded. The winter of 2005 -2006 was unseasonably warm leading to about 20% of the gas left in storage. Activity levels have been in the white porcealain throne for 18months already. Imagine what would happen to Fort Mac if oil pulled back to $40/bbl, and remember the projects currently under construction are net back at about $60/bbl. Everybody is blaming the inflationary pressures the services. services are not the largest problem. The price of fuel hasn't come down the price of steel hasn't come down. Right now most nat gas are net back in the neighbour of $8/mmcf. Fort Mac will run like clock as long as the price of oil stays up. This plan is going to effect places like Brooks, Provost, Medicine Hat, Grande Prairie, High Level, And Manning to name a few.
The frustration thing for consumers is the attitude of companies
People conserve to save money and product ..then the consumers get hit with aq price hike because the Energy companies say they didn't make enough money.
It's a lose ...lose for consumers and a wiin.. win... for people who just SET the price ..never mind the commodity brokers.;(
The thing in Alberta is that too much talk about how wonderful the province is and it not being ready for the infux of people driving the prices of everything up and EVERYONE has the idea to Cash In on it.
Nobody was prepared for the events that have lead to things like houseing costs inflating by 300%. I still live in the house we bought 10 years ago. I have lived through the cycles of the oilpatch. the largest problem is the infux of people who thought they we're flithy rich because they had new well paying jobs. I could care less if these people lose everthing they have, or should I say the bank has. Even Petro-Canada has said there is material flaws in the report. This was a crown corporation until just recently. I think a royalty review is not nessecarly a bad idea, but this is a seriously flawwed plan.
Being a long time Albertan and seeing firsthand for 5 decades the application of things by beaurocracy... Calgary & Edmonton mostly,,, were always 15 years behind the times.
Being involved in the contruction industry for 23 years I was involved many high profile projects... City Hall,COP and 5 other Olympic venues,Stampede park,The LRT,Harry Hays Building (Fed Gov't),The Zoo,Deerfoot Trail,etc, etc.
Politicians were always out of touch and never thought 20-30 years into the future.
Now with the philosophy of "we will charge it because they will HAVE TO pay it" and
the " I'm going to get my slice of the big profit" attitude has actually spoiled The GREAT living in Alberta and turned it into ..you're rich if in the energy industry.
All this is going to do is lower the profit of oil exec's and others a couple of Billion...they will still have their 100's of billions profit.
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