It really doesn't matter that Stelmach tried to get a better deal for Albertans. Big Oil can hold Alberta hostage as long as there is no competition from the government. Only private enterprise should make money or explore for and develop the oil. So Stelmach caves because investment is flowing to Saskatchewan because the "socialist" NDP had a lower royalty structure and this of course was retained by the Sask. Party. Now in opposition the NDP may start to bleat about the Sask. Govt. not getting a fair share.
Alberta revamps royalties to spur drilling
Province reverses portions of controversial new charges in an attempt to stem loss of oil and gas exploration
With files from reporter David Ebner in Calgary
April 11, 2008
CALGARY -- Alberta is offering producers of deep oil and gas substantial royalty breaks, in an attempt to spur more drilling in the province and undo some of the harshest effects of last October's royalty regime overall.
Under the terms of a new program announced yesterday, companies that drill deep wells will receive royalty offsets or credits, a move that will cost Alberta more than $1-billion over the next five years.
The province yesterday introduced two new royalty programs, a move aimed at relieving pressure on companies drilling high-cost, high-productivity wells that were seen as the most heavily penalized by the previous royalty regime changes last October.
"Addressing the unintended consequences with these programs will help Alberta achieve the necessary levels of investment and production to generate the royalties anticipated by the New Royalty Framework," Energy Minister Mel Knight said.