Royalty Review

[Cyle]

Pretty easy for people to just whine and cry it's the gov't fault for things slowing down. They are politians always have been always will be. They don't care about ANYONE it's just about money for themselves. Nothing will ever change, pc or liberal all the same idiots. How many years was it crazy? 2-3? If you can't take a slow year after that something is wrong. Companies going under because they don't know what they are doing, not that the gov't sets any example because they are stupidly broke right now. But people should of learned from before it won't stay hot forever. Gaurenteed in the next year or so it will get crazy again, last a bit and sure enough it will SLOW DOWN AGAIN. And I can tell you right now many of the same people will be crying about it, there will be lots of people loosing stuff, etc. NO reason for it.

Yea it sucks for people who aren't working, but there is still a lot of work out there. Heck I know a welder who hasen't worked in a 1 1/2 years. Not because there isn't work, but there isn't work he WANTS. Big difference.

Oil companies raking in record profits for a long time, make them pay some of that money. They don't care about the workers at all, they just want more money and will do anything to get it. Sure some might go elsewhere but there will still be plenty here. People can't see the longterm gain by it. They are limited other places to go, and they don't know if other places will raise their royalties.

 

[Rubicon]

The new royalties have little to do with the slow down in activity.

Low oil/gas prices and the new developments in shale gas recovery are the reason for the slow down.

Like hell...alot of majors flipped Ed the bird when this chitstorm royalty scam first was introduced. When was the last time you started racking rigs end of Jan/ middle of Feb......oh wait.. last year. Nothing to do with shale gas.

 

[08summit]

Yeah thats right it was totally the royalties that shut down Alberta...had nothing to do with Gas being worth $2.50/Gig....I'm sure it would have stayed busy and all the Oil companies would have continued to drill gas @ a loss. As mentioned above it was the perfect storm...2 yrs ago these same companies were showing record profits and and spending like drunken fools...why should they rape the land of Alberta for record profits and not have to pay for all the damages they leave behind. I too am "oilpatch trash" and depend on the Patch to feed my family but I don't feel sorry for these Billion dollar companies having to pay a little extra to pay for our roads, environment and the unlimited amounts of water they waste to make there profits. Where will these companies be when our resources run out?? Long gone and our kids will be the ones left to clean there mess.

On another note Estevan/Weyburn are still busy as this is all Oil drilling and the price of oil unlike gas has been pretty good....Most of the drilling here is in the Bakken Formation.

just my 2 cents...end of rant

 

[Mike270412]

What did that bumper sticker say???
"Please God let there be one more boom...I promise I won't pi$$ it all away like last time."













:d:d:d

 

[Cyle]

What did that bumper sticker say???
"Please God let there be one more boom...I promise I won't pi$$ it all away like last time."













:d:d:d

Not gonna happen, to many people will never learn! O well I like cheap stuff when the bottom falls out :d

 

[Mike270412]

Not gonna happen, to many people will never learn! O well I like cheap stuff when the bottom falls out :d

Not gonna happen???????O well,Guess 'll keep makin payments on the schtuff I already got:d:d:d

 

[Longhorn]

With a little research I've found that there are MORE rigs drilling this week than there was in 2007... 299 in 2010 vs. 239 in 2007

Therefore one could conclude, the royalty rate changes have increased drilling activity despite the very low price of gas.:d (And the early spring)

Hey if you as a province don't mind doing the poor oil companies (that are only making gazillions of dollars selling your natural resources), a favor, go ahead.... Give them a tax break. Just like they give you a break at the pump.

Clueless...

 

[RMK Junky]

It all boils down to this. Don't bite the hand that feeds you. I'm going to back the clock up abit here because there are some contributing factors that have led to where we are today. 3 years ago things were at their peak with this industry. Every time I was out in the field providing a service I would hear about the costs on how things were getting out of hand. One consultant I dealt (and by the way these guys talk to one another no matter who they work for) with on a regular basis told me that a well start to finish had almost more than doubled on cost to completion. Rates for services were through the roof. Consultants use to working in the southern part of the province had a hard time adjusting here...I heard it all the time. These guys don't forget this and neither do the companies they work for. So now that King Ralph is gone and this Stelmach guy tries to be a hero saying on how the oil companies are sodomizing Alberta with the "royalties" that they're presently getting..HA! we'll fix'm. That's the second time the hand was bit Then the economic slow down to follow was just icing on the cake. It takes time to recoop your costs on a well once on stream and these guys are still recooping now. The last economic crunch was in '81. My dad was still truckin' then and had to look hard for work. I was only 14 and didn't have a care in the world. My how things have changed :d

 

[Orrin]

Clueless...

You said it...

Just to take us back in time, when the original royalty review was conducted the economy had already started to falter. Everybody here could see some kind of a slow down coming, the royalty review compounded this and brought the slow down on one year sooner in Alberta than anywhere else. Had special Ed let things alone we would've had one more full year of decent activity and province wide income for the govt, the people and the contractors and been in way better shape overall. Why in gods name he asked an expert in the logging industry to review the oil industry is beyond me, unless they were buddies. Adding extra royalties was not neccessarily the wrong thing to do, but the timing of it and the size of the greed all at once was plain ridiculous. Additionally by not living up to investment agreements that the Kline government made with producers (read eastern investors) and changing the investment landscape he alienated the money behind the operations making Alberta a toxic place to do business. Who will invest anywhere when the rules change so easily? Ed's an idiot and so is Mel Knight.

 

[KawisakiRider]

Pretty easy for people to just whine and cry it's the gov't fault for things slowing down. They are politians always have been always will be. They don't care about ANYONE it's just about money for themselves. Nothing will ever change, pc or liberal all the same idiots. How many years was it crazy? 2-3? If you can't take a slow year after that something is wrong. Companies going under because they don't know what they are doing, not that the gov't sets any example because they are stupidly broke right now. But people should of learned from before it won't stay hot forever. Gaurenteed in the next year or so it will get crazy again, last a bit and sure enough it will SLOW DOWN AGAIN. And I can tell you right now many of the same people will be crying about it, there will be lots of people loosing stuff, etc. NO reason for it.

Yea it sucks for people who aren't working, but there is still a lot of work out there. Heck I know a welder who hasen't worked in a 1 1/2 years. Not because there isn't work, but there isn't work he WANTS. Big difference.

Oil companies raking in record profits for a long time, make them pay some of that money. They don't care about the workers at all, they just want more money and will do anything to get it. Sure some might go elsewhere but there will still be plenty here. People can't see the longterm gain by it. They are limited other places to go, and they don't know if other places will raise their royalties.

I 100% agree with you, every tom, dick, and harry had to have the $500,000 dollar house with two new trucks in the drive way and sleds/quads/boats etc.... Now they complain because they couldn't afford 1 month with out work as their payments where $9000+ a month.

Shocker, just live within your means and don't worry about the "Joneses". I worked through the boom like everyone else and like a crazy person saved/invested, smartest thing I ever did.

Also the "bust" weeded out all the crappy work force that thought they could get $200,000 a year for no work/skill. IMO....

 

[moto.racerx]

Yeah thats right it was totally the royalties that shut down Alberta...had nothing to do with Gas being worth $2.50/Gig....I'm sure it would have stayed busy and all the Oil companies would have continued to drill gas @ a loss. As mentioned above it was the perfect storm...2 yrs ago these same companies were showing record profits and and spending like drunken fools...why should they rape the land of Alberta for record profits and not have to pay for all the damages they leave behind. I too am "oilpatch trash" and depend on the Patch to feed my family but I don't feel sorry for these Billion dollar companies having to pay a little extra to pay for our roads, environment and the unlimited amounts of water they waste to make there profits. Where will these companies be when our resources run out?? Long gone and our kids will be the ones left to clean there mess.

So true... already starting and will continue into the future... the selloff ensues and will be spent elsewhere.

When the big guys are gone good luck seeing investment cash to the greater good of alberta from strapped juniors that remain.



Does anyone think longterm?

 

[RMK Junky]

There's a plan in effect but time will tell.

Tories hope new jobs will off set millions in lost royalty revenue

 

[ZRrrr]

Soo...

In desperation for money, the province will sell the publics land for cheap.

More jobs means a higher tax base. Is this not just a means of taxing the citizens, in essence avoiding more corporate tax and again sticking it to the little guy.

Sick.

 

[Andy the Digger]

I think another factor to the slow down in the patch has a lot to do with the new drilling and frac technologies.... One 1500 meter Horizontal leg on one location can produce as much as 20-40 vertical wells??? Then they can drill in any other direction... No new lease, no extra pipeline, and the same rig doing a years work in a matter of months.... Less locations - less lease roads - pipelines - rig moves etc etc etc... I seen Lloydminster from a airplane ( lucky me ) and lost count of the number of wells on some quarters, which would be about 1/10th if they were all horizontal... With the introduction of PDC bits the past 10 yrs, the average 30 day well has been turned into a 14 day well... Anybody find the a$$ who invented those yet???

 

[Orrin]

I think another factor to the slow down in the patch has a lot to do with the new drilling and frac technologies.... One 1500 meter Horizontal leg on one location can produce as much as 20-40 vertical wells??? Then they can drill in any other direction... No new lease, no extra pipeline, and the same rig doing a years work in a matter of months.... Less locations - less lease roads - pipelines - rig moves etc etc etc... I seen Lloydminster from a airplane ( lucky me ) and lost count of the number of wells on some quarters, which would be about 1/10th if they were all horizontal... With the introduction of PDC bits the past 10 yrs, the average 30 day well has been turned into a 14 day well... Anybody find the a$$ who invented those yet???

No but when I do I tell you, pow right to the moon.

 

[Pinner]

I agree Digger, I would say in the thicker shale, 32-64 legs on the same lease, (pad).

Conventional vertical wells are a thing of the past. And not because of the royalties.

 

[Summiteer]

It all boils down to this. Don't bite the hand that feeds you. I'm going to back the clock up abit here because there are some contributing factors that have led to where we are today. 3 years ago things were at their peak with this industry. Every time I was out in the field providing a service I would hear about the costs on how things were getting out of hand. One consultant I dealt (and by the way these guys talk to one another no matter who they work for) with on a regular basis told me that a well start to finish had almost more than doubled on cost to completion. Rates for services were through the roof. Consultants use to working in the southern part of the province had a hard time adjusting here...I heard it all the time. These guys don't forget this and neither do the companies they work for.

Funny things don't flow the other way. A guy I know has a trucking outfit here in town. When prices started to spike, he kept his rates down, figuring that when it all went for chit like it always does, the companies that he wasn't screwing would keep him on. WRONG! things started to slow down and the guys that had been gouging dropped their prices below what he could operate at. Except for one or two customers, the oil companies cancelled their contracts with him to go with the lowballers..... That's some long term thinking.

 

[Pinner]

Funny things don't flow the other way.

Same thing with wages, guys just hammering their companies for hr's (because they can) because of the worker shortages, they started kissing azz when things slowed down, and the good hard workers are no further ahead...


Advise for young workers
Work hard, make money for the company... nah, You'd be further ahead to screw the company and kiss azz if things slow up.

 

[Mike270412]

Same thing with wages, guys just hammering their companies for hr's (because they can) because of the worker shortages, they started kissing azz when things slowed down, and the good hard workers are no further ahead...


Advise for young workers
Work hard, make money for the company... nah, You'd be further ahead to screw the company and kiss azz if things slow up.

People aren't important.Making the almighty dollar$$$$$ is the bottom line.Sad to say it but sure hear a lot of stories lately about people getting screwed just so some big corporation can make a few more bucks."Gotta keep the shareholders happy..."

 

[Summiteer]

People aren't important.Making the almighty dollar$$$$$ is the bottom line.Sad to say it but sure hear a lot of stories lately about people getting screwed just so some big corporation can make a few more bucks."Gotta keep the shareholders happy..."

Especially when the executives and board members are the biggest shareholders.......