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Shifting Sands, Part IV

Life on the cold side of the country's hottest economy

GORDON PITTS

From Wednesday's Globe and Mail

Latest comment posted at 5:40 PM EDT 01/02/08

The oil sands dominate Alberta's wealth and growth, but not all parts of the province are taking part. ...Read the full article

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  1. Nassar Ben Houdja from Canada writes: Yes it is, but lacking a village nanny it's the way it is. And if it's all the same to the doo gooders, and even if it isn't, it's going to stay that way.
  2. Jean Malice from Calgary, Canada writes: Gordon Pitts reminds me of Doug saunders, another Globe reporter who during the presidential election in France was able to find the weirdest, unrepresentative people so he could make his point and drive home his own intent or the intent of his boss. BTW, the gas sector is in trouble through the double whammy of the trust decision that has virtually eliminated the end strategy for small and intermediate producers AND the royalty review brought by Stelmach during a time of high drilling and service costs/average NG prices. That is basically the politicians damage here. Did the reporter mentioned it? no. And yes, sure not everyone in Alberta is a millionaire... That alone should be newsworthy? Perhaps your amazing news finder should also understand that urban sprawl is the result of higher taxation of central core residential owners who are living with older infrastructure and sponsoring the new utilities and services provided in the burbs... Ask Superdave about his originel promise to reduce property taxes back then... Perhaps your reporter should go to the Calgary shelter and interview the really poors who few years ago demanded a smoking deck for $250,000! and that did not really go well with many in Calgary... The Globe and Mail clearly doesn't serve Albertans, at least that series of "reportages" have shown that much. So who do you guys cater to in order to write such garbage?
  3. Vern McPherson from writes: Jean Malice from Calgary, Canada writes:

    -----------------------------------------------------

    The truth shall make you free..................

    The article did not pretend to say this was all of the "other" Alberta. Only a portion of it. ................
  4. Walker N from Calgary, Canada writes: Hhhhmmm....that's odd, I'm originally from a small town (800 people) outside Lloydminster that hosts a bunch of heavy oil wells......Funny thing is all the small towns I know of within the Lloyd oil fields are quite prosperous, new businesses, young families, and new homes being built.... And what's even more hilarious is that a good portion of those 'oil trucks that tear up the roads' are owned by local farmers who can turn a profit of around $50,000-$60,000 a year with them to supplement the farm.

    Seems like a BS article to me, the only towns I know that are suffering are the ones that are not encompassed by an active oil/gas field.
  5. Jim Vickers from saskatoon, Canada writes: I think that it is a good article. Jean Malice seems to be reacting to the article as if it is an attack on all things Albertan, but it seems to be well balanced.
    The tar sands boom has affected us in Saskatoon as well. People in trades and professions not related to the boom are leaving Alberta because of the high cost of living, and driving up housing costs here. Also, those who like to invest in real estate have taken their money out of the Calgary market where prices seem to have leveled off and bought up anything with a roof on it at higher than normal prices. The real estate values have increased ~50% over one year in Saskatoon. That is great if you happened to have owned real estate, but not great if you are renting and on a fixed income, or in a lower paying job. The tar
    The tar sands boom may well slow down or stop if there is a carbon tax levied on the American energy market, or on Canadian industry, Ii can see why the oil industry wants to get all the cheap and easy oil from it as fast as possible before the ordinary citizen in the USA catches on to the real cost of these projects, that is, global warming.
  6. CD W from Canada writes: I have some small experience in alberta's wealth and those who do not necessarily share in it. Canmore has been transformed by all of this, and in a good way, only in that I own there. The local town for the last decade has fought against the private owner really doing something for those who cannot afford to rent or own. We try to offer decent accomodation, but then the bylaw folks get busy, but only against a very few home owners. I dont mind but where will the dishwasher/snowboarder live? The school system in canmore has lovely buildings, but a dropping student population as their parents cannot afford to stay. In alberta, if you win, you win big, if you dont, then you move to Ontario I guess.
  7. I, Publius from Canada writes: Mr. Harvie's grandfather would be a hypocrite. As Mr. Harvie is living off the wealth his grandfather created, it is not clear what he is. His inability to match his grandfather makes him leery of others who might generate generate more wealth than he was left. It is an age old problem of the "landed gentry" being suspicious and resentful of the burgeoning bourgeois.

    Growth is painful and causes displacement. I do not think, however, that there is a majority who would countenance a subsidy to makers of buggy whips.
  8. agent sixtynine from Calgary, Canada writes: Mr. Harvie truly is a hypocrite in trying to stop or control the great unwashed masses from acquiring the same wealth and prosperity as that of his kin.
    Mr. Vickers, there is no global warming.
  9. Go Oilers Go! from Canada writes: The article is not 100% accurate; but it's gist is not wrong per say.

    My hometown is 2 hours east of Red Deer; not even close to the central corridor. It's booming but not at the pace you see in Calgary, Red Deer, Edmonton or Ft. Mac.

    Many rural communities have seen people migrate to the urban centers; but that is happening all across Canada. We are the most urbanized country in the world.

    The fact remains however that ultimately every Albertan does benefit from the oil boom; that's what pays the bills in this province. Low income tax rates and no provincial sales tax are only possible because of the revenue generated by the oil and gas industry.
  10. Bill Needle from Canada writes: BS article - whining from whiners - as always the farmers are the first in the whining line-up.
  11. a sailor on the prairie ocean from Canada writes: from the gist of many posts from alberta you're doubly lucky. you have endless wealth from border to border to border to border. all that money, oceans of gelt for all.
    and quite obviously many of you need never worry about heart problems; for that you need a heart. ugh.
  12. Tony Nickonchuk from Timmins, Canada writes: I wonder where Bill Needle thinks he gets his food from. All of the food we eat at some point originated on a farm. My father was lucky enough to sell his cattle herd just prior to the BSE scare. But he still has to work full time to make a living because his grain farming was not making a profit up until this year when grain prices have risen to levels not seen in years. Sure, maybe farmers seem like whiners, but it's because in this changing world of large factory farms and industrial agriculture, the family farm is becoming obsolete more and more every day. Imagine making a living off the land all your life only to find your livelihood threatened while all around you people are living the sweet life because of oil coming out of the very land you've worked so hard on. Try some empathy next time.
  13. Cowtown boy from Calgary, Canada writes: Typical response from someone like Jean Malice. I have lived in Alberta for 30 years and I see this all the time. If it doesn't come from the lips of some ultra conservative like Erza Levant then it must be garbage. Take your blinders off Jean and view other opinions for a change.
  14. Michael B from Canada writes: I, Publius from Canada writes: Mr. Harvie's grandfather would be a hypocrite. As Mr. Harvie is living off the wealth his grandfather created, it is not clear what he is. His inability to match his grandfather makes him leery of others who might generate generate more wealth than he was left. It is an age old problem of the "landed gentry" being suspicious and resentful of the burgeoning bourgeois.

    Growth is painful and causes displacement. I do not think, however, that there is a majority who would countenance a subsidy to makers of buggy whips
    ***************
    The article clearly discussed the fact that he's not against other people growing rich, that it is more the "me-first" attitude that threw him, and their wanton destruction of Alberta's environment. So really, you don't have a point.
  15. Lowen Wrainger from Canada writes: What, some Albertans aren't equally wealthy! I never would have thought! You mean some of them are feeling done in because they only have one Well on their land? Where's the Beef?
  16. r b from Calgary, Canada writes: A ridiculous article. In the 4 decades that I have been involved in the oilpatch, the greatest increase in wealth has been in the rural areas of Alberta. Absolutely no contest. In the 60's and 70's, to say that rural Alberta was underdeveloped would have been an understatement . Today, these towns and their surrounding areas brim with weath from the oilpatch: this also includes many farmers and their families within the service areas of these towns. It is very common for oilfield operators, electricians and pipefitters to be farmers or ranchers, wit the oilpatch monies keeping their farm operations afloat. I would guess that many farmers and ranchers outside of Alberta would welcome such an option. Compare rural Alberta to rural Saskatchewan - it is like night and day, although Saskatchewan is poised to see a major wealth influx as well. The oil boom has in fact made it possible for the rural areas to delay, and even reverse, the rush to urban areas that are evident in other parts of Canada. Surprisingly, the author didn't interview Wiebo Ludwig, who plopped his Ontario based oddball little cult down in the middle of existing oil and gas country and then proceeded to begin a reign of terror and killing because it didn't sit well with him. You must learn to try harder.
  17. mojo fr kokomo from Calgary, Canada writes: Booms are good but very stressful no matter what. We could slow a bit and probably not even notice as long as we did it the right way. I have to admit feeling a little nostalgic for the days when Calgary was slower and cheaper and yes - boring. Although its alot more exciting these days the issues we have to deal with now are ones we cannot ignore.
  18. JD Would from Calgary, Canada writes: Two Solitudes Funny, it used to be Calgary vs Toronto, or Alberta vs Quebec, now its cities vs rural. --- I'm in Calgary, and here is a true story about a Dodge Ram dualie pickup with a Farmer sticker on the license plate. --- The 'man' driving the pickup rammed through a marked crosswalk in downtown Calgary (6th ave and 5th st) occupied by about 10 people. Some city folk caught up to 'him' at the next traffic light. The Ram pickup driver swore at the city folk, and said, and I quote: "We don't have cross-walks in the country, I'm bigger, and I was at the light first". hmmm...I wonder why the Ram pickup driver is doing in downtown Calgary. Why does he need a big Ram dualie pickup, maybe he needs such a big truck because he needs to compensate for his physical shortfalls. ---- As for Mr. Harvie. you are the definition of hypocrisy. Your daddy and grand daddy made a fortune off of oil. Now you don't want anyone else to make a living off of oil. Your questions. Conspicuous consumption, BMWs??? Maybe people should buy what I think is good, maybe a Geo or a bus pass, certainly not a BMW. Big houses...your daddy bought you 100s of hectares of best real estate in all of Canada, and you want to prevent someone to get a 2000 sq ft house? --- I moved to Calgary in 1991, and I have always felt welcome, whether it be in Calgary, Edmonton or the small towns. However, in the last 13 months, I feel a real nasty change sweeping over Alberta. I hear Calgaryians I wonder who was in office for the last 12 months? Maybe Eddy?
  19. JD Would from Calgary, Canada writes: Dear Tony Nickonchuk
    Farmers don't grow food, farm land grow food. The food can be harvested by serfs, sharecroppers, or employees of Agri-businesses like Archer Daniels.
    ---
    Question: How do farmers double their income?
    Answer: Put up another mailbox, and hope for another subsidy cheque, paid for by city folk.
  20. Duh Work Farce Virtually Alive from Canada writes: Rural displacement, mass urbanization, urban sprawl, huge growing chasm between rich and poor, a rapidly growing class of nouveau riche, BMW's for many, sweat shops for others, beaucoup collateral damage as thousands fall off the economic ladder, housing shortages, billionaires getting the best of both corporation and government, refugees from the East getting the worst, Olympics for the wealthy, destitution for the dispossessed, repressive laws against panhandling and spitting on the sidewalk...sounds like Corporate Communist China.
  21. otmar zambo from Canada writes: The big wigs in the provincial government seems to think that all that wealth from the oil sands is theirs to buy themselves votes at the next election! the spend the taxpayers money like drunken sailors to buy votes and maybe later on silent girectorships from the energy companies. Oh I almost forgot, Albertans received a fourhundred dollar cheque once from all that wealth! Oh Yes, no provincial sales tax but instead the AB government burdened all of us with their service taxes and the highest inflation and the highest prices on anything in the whole country!
  22. ron gardiner from calgary, Canada writes: boo hoo. Poor ranchers and farmers. And they are the guardians of the land to boot?? What a goofy article intended for the masses. Agriculture has caused the most destruction of natural habitat across the planet. Tim Harvies grain and ranching operations has probably done more destruction than a thousand gas wells. Ranchers and landowners are compensated by exploration companies for considerably more than what the land is worth. And don't believe that oil companies trucks are racing around tearing up the roads. Bonds, fines and a legal obligation to municipalities ensure local access roads are in good shape so farmers and ranchers can get to the post office to pick up their subsidy checks.
  23. Still Learning at 77 from Canada writes: The government pension fund of Norway is $74,500 per citizen, Alberta $4,800 per citizen. Boy you fellows in Alberta sure know how to get a good deal.
    http://en.wikipedia.org/wiki/Sovereignwealthfunds

    Have a good day everyone and may the grease money be returned to us.
  24. D. G. from Burnaby, BC, Canada writes: Jean Malice is right on. The Globe & Mail has and always will be an Eastern newspaper, there is nothing "national" about it except its distribution. First off, for a series of articles that is supposed to be about the oilsands, I don't know why this guy is talking to farmers in Calgary about oil and gas wells, the oilsands are about 1000 km north of there. Maybe he was too lazy to drive that far from the Calgary airport he flew into. The province with virtually zero unemployment and this writer talks of "Two Alberta's", like there is one half prospering, and the other half standing in breadlines? If there is anyone not working in Alberta its because they don't want to work. I still remember the bill board sign I saw in Edmonton "7-11 - cashier wanted- $750 signing bonus". Its also a fallacy to say that unless you work directly in the oil business that you are on the sidelines looking in. Like all economies there is a spin off effect, people with money spend it, on houses (which pay house builders), on cars (which pay car manufacturers), all down the line. Its Economics 101. There might still be a spread in wealth in Alberta, but due to a tight labour market, it is probably narrower than anywhere in Canada. The power of a strong economy. If you really want to see wealth, and the spread between wealthy and poor, come here to Vancouver, highest priced homes in Canada, and more expensive cars per capita than Calgary. And there is no oil here. Go figure. I suspect the same spread exists in Toronto.
  25. JD Would from Calgary, Canada writes: BSE origins, cattle are cannibals

    The cause of BSE was 'tainted feed', or, in polictically incorrect words...Feeding herbivore cattle the remains of other animals. The remains of other animals include: ground up intestines, brains, bones, flesh, guts ...., BSE was caused by ranchers making cattles cannibals....hey, Dodge Ram driver, cattle eat plants, not meat, its called Biology 101, which they teach you in grade 7, oh wait, that's the problem, ranchers don't go to school. Readin' and 'riten' that's what city folk do.
    ---
    Poor ranchers, no, that's not true, they got handsomely compensated for being poor stewards of their resources.
    ----
    I wonder if any city person who started a small business, and then failed because of their own inexperience or lack of knowledge got a fat paycheque from the rural taxpayer?
  26. M Poland from Calgary, Canada writes: The Harvie family has given lots back to the province as Albertans, for the use of all citizens. So have most of the oil and gas companies. So, too, have many, many ordinary citizens. Not everyone here in Calgary drives a huge, gas-guzzling SUV, just as not everyone from a rural background is zipping around in a VW Rabbit! The earlier comment about rural subsidies hits the nail bang on, IMHO. You can't walk the beaches of Mazatlan or Waikiki for tripping over the vacationing farmers and ranchers.
  27. r b from Calgary, Canada writes: After 3 installments in this Globe series, it is difficult to come to any other conclusion than it has been intended as a complete hatchet job on oilsands development.

    I cannot imagine any other paper which would try so hard to put negative spin on a wealth generating engine for its citizens.

    Problems? Sure there are. But was the industrialization of Southern Ontario achieved with a zero footprint?

    Across the board, the Canadian, not just the Alberta, economy is far better off with oilsands development than without.

    Yesterday, the oilsands were blamed for providing jobs to Maritimers who otherwise would not have work. Yes, blamed. It was quite a show.

    Today? Apparently some struggling farmers would be better off without oilsands development. How is not quite clear, but they would be better off.

    I can hardly wait for the next installment.
  28. Hannah McCormick from Canada writes: I don't know where these farmers and ranchers getting subsidies are, but I want to know if my family and my neighbours can pack up our land and move there. Most farmers I know have their 3-8 quarters of land passed down to them by their fathers and grandfathers, and they have to go work in the oilpatch to pay for the seed, the fertilizers, and the equipment for the farm.

    I agree that there is some spread in the wealth, trust me, salaried jobs do not pay any higher when the oil boom comes to town and drives up all the prices. However, those jobs are still there when the oil boom busts, too. It's just a little tough working in an office making mediocre money with a university degree, and some shmuck who decided $25/hour was better than a highschool diploma makes twice as much as you.

    And yes, jobs that used to be minimum wage might be paying $18/hour now, but that doesn't seem like so much when a liveable apartment will cost you $1700/month.

    But all these points aside, why didn't they interview some people in the rural areas around the oilsands, if this is what the article is supposed to be on?
  29. Go Oilers Go! from Canada writes: JD Would from Calgary, Canada writes: hmmm...I wonder why the Ram pickup driver is doing in downtown Calgary.

    JD I am not defending the driver in his rude actions; however there are a**holes everywhere.

    As well he was probably driving his Ram pickup downtown because that is his vehicle. Families on the farm don't keep a Honda Civic tucked away for trips to the 'city'. Not to mention if he had farm plates he is burning purple gas so the cost isn't near what you or I would pay for fuel.
  30. Go Oilers Go! from Canada writes: Still Learning at 77 from Canada writes: The government pension fund of Norway is $74,500 per citizen, Alberta $4,800 per citizen. Boy you fellows in Alberta sure know how to get a good deal.

    Actually I'm getting a great deal.

    I certainly support growing the Heritage fund, but you left out two important points.

    First my wage is considerably higher than what I'd be making in Norway for the same occupation. Simple economics...present day value of money.

    I'm much better off making more in wages than having some fund grow to astronomical proportions which would only entice the Feds and other provinces to want a piece of it.

    Second, one of the biggest political issues in Norway right now is spending some of the fund in order to reduce the tax burden.
  31. Peter The Not Quite Great from Edmonton, Canada writes: That an economic boom isn't shared by all is no surprise. If GM sales were to take off tomorrow not every Ontarian would be rich. If maple syrup prices go through the roof not every Quebecker will be rich. The 2010 Olympics won't make everyone in BC wealthy. So no shock that not every Albertan is sharing in the tar sands boom.

    That said, our politicians crow as if everyone in Alberta is eating caviar and wiping themselves with $100 bills so it is good that the article tries to point out that the boom isn't universal.
  32. Go Oilers Go! from Canada writes: JD Would from Calgary, Canada writes:

    Question: How do farmers double their income?
    Answer: Put up another mailbox, and hope for another subsidy cheque, paid for by city folk.

    ...and yet when I grew up in a rural town we didn't have homeless, we didn't have public transportation nor did we have homeless shelters.

    Contrast that to a city where the only thing I hear are politicians telling me they are going to steal money from my paycheque to support those who can't find a job, shelters for the those who can't support themselves, public transportation that I will never or very rarely use, and a litany of other services that I have no need for.

    From my experience it is cities that are the sink hole of taxpayers dollars. If that wasn't the case they wouldn't be screaming for billions in revenue from the federal gov't.
  33. Still Learning at 77 from Canada writes: Go Oilers Go! from Canada writes:---"Actually I'm getting a great deal. "

    Alaska must be getting a greater deal at $61,000 per citizen -please explain the difference.
    Have a good day
  34. Go Oilers Go! from Canada writes: Still Learning at 77 from Canada writes:
    Alaska must be getting a greater deal at $61,000 per citizen -please explain the difference.
    Have a good day

    It's quite simple...the fund is worth $61,000 per citizen; they only receive between $700-$1200 per year from that fund.

    I make a heck of a lot more than an extra $700-1200 per year working in Alberta compared to Alaska.

    The concept that all Albertans are better off having more revenue funnelled into the Heritage fund as opposed to receiving higher wages is flawed. I and many Albertans have benefited far more from higher wages than the gov't having more money.

    The waiter at Earl's probably doesn't benefit; but then again he/she didn't do anything to bring the commodity to market did they?

    As I said present value of money; I'll take $10,000 now as opposed to $1000 cheques every year for 10 years. It's common sense.
  35. Ted Smith from Canada writes: The majority of people in Alberta are doing pretty well I'd say. Simple as that.
  36. westcoastgroovin victoria from Canada writes: the oil boom has skewed the AB economy the way any overheated economy does. The result causes imbalances throughout the system from out of sight labor costs to income/cost disparities. Whether it can be leveled off or how it will level itself remains to be seen. Farm costs have spiralled, but this is not new and not pecurliar to AB. Western farmers have often held another job to support their rural habit. But with a major need in China for calories and protein, that may change too. What AB does have is a healthy tax base, but with it major infrastructure needs as well. Reminds me of riding the tiger.
  37. JD Would from Calgary, Canada writes: Dear Go Oilers Go! from Canada
    ---
    The Dodge RAM duelie pickup driver with the farmer sticker also noticed that the MAJORITY of people he almost ran over did not have the same skin colour as him. He made some pretty disgusting remarks about that.
    --
    His childish racism is my impression of farmers.
    ---
    I made friends with a few people the RAM farmer almost killed, and all are very well educated, making way too much money according to Mr. Harvie. But the joke is on us, we get 45% of our money confiscated by the governments, the majority of which goes to farmer and rancher subsidies.
    --
    BTW, I noticed that the mood in Alberta was getting nasty when Pronger left Edmonton.
  38. Still Learning at 77 from Canada writes: Go Oilers Go! from Canada writes. The concept that all Albertans are better off having more revenue funnelled into the Heritage fund as opposed to receiving higher wages is flawed. I and many Albertans have benefited far more from higher wages than the gov't having more money."

    What is the royalty return per barrel to Alaska compared to Alberta? Are the citizens of Alberta getting their fair share in comparison to Alaska or Norway. I think there is room for Alberta to do better yet, but its up to Alberta's citizens unless the big Oil call the shots.

    Nice to talk to you and have a nice day.
  39. JD Would from Calgary, Canada writes: Dear Still Learning at 77

    Good questions...
    --
    Maybe someone else could answer a few more questions too.
    Can Alberta be compared to Alaska? Is it like comparing apples to oranges?
    1. Alaska has a much smaller population and probably different demographic.
    2. Alaska does not have Medicare, so there is less demand on tax dollars, but more demand on private citizens to provide their own care.
    3. Alaska may have different cultural expectations and needs, maybe they don't need a car, or larger house. How much money does an average Alaskan need to spend each day to have a good standard of living?
    4. Is there some system of 'transfer payments' in the US, that might give money to Alaska. Wether its through 'earmarks' or whatever. I think that Alberta donates a large amount of money in Canadian 'transfer payments'

    Just some thoughts?
  40. Go Oilers Go! from Canada writes: JD Would from Calgary, Canada writes: "His childish racism is my impression of farmers."

    I grew up in a rural town; there isn't much difference between farmers/rural folk and people in the city.

    Some are racist and a**holes and some are the nicest people you will ever meet. In fact from my experience farmers and rural folk are much more personable and down to earth than people in the city.

    The mood when Pronger left was simply a reaction to being hurt/insulted.

    There were rumours he cheated on his wife; but it was the other rumours that his wife simply did not enjoy life in Edmonton that soured so many.

    No one likes hearing negative comments about their community.

    I think it was blown out of proportion. People move from one city to another for work all the time. Pronger wasn't the first athlete to request a trade and he won't be the last.
  41. Kevin Cochrane from Clear Lake, Manitoba, Canada writes: My wife and I just got out of the Mac just before Christmas, sold our house, quit the ridiculous money we were being paid, all that, just to feel human again. Anyways, been kinda tracking this week's articles about the 'oil sands' and the first article was just basically a rehash of all the crap being spewed about the oilsands for the past 3 years, kinda like stock footage. This latest article is really pretty much a waste of time, absolutely nothing to do with the oil sands and instead about a couple of farmers. Are we trying to say let's not overlook the problem of the cattle farmer in Alberta? Help me out here. There is a lot of interesting stories in the oil sands but I am thinking that I am going to see the same old, same old yet again from the G&M. Environmental concerns, guys working away from home and high wages, lack of labour. If you want insite, actually go to the Mac, get up at 4:30am and try to make it to work for 6:30am, then try going back to the Mac leaving at 5:30pm. That goes a long way to explaining why it is the most bizarre place to work in Canada. To sum it all up, try and report on something we haven't already heard a hundred times, please don't bore me with another story of the rampant crime, I lived there for 4 years it really wasn't that bad, just try shopping at Canadian Tire if you want a true picture of heartache and despair.
  42. Go Oilers Go! from Canada writes: Still Learning at 77 from Canada writes: What is the royalty return per barrel to Alaska compared to Alberta? Are the citizens of Alberta getting their fair share in comparison to Alaska or Norway. I think there is room for Alberta to do better yet, but its up to Alberta's citizens unless the big Oil call the shots. Off the top of my head I don't have the answers. One thing to keep in mind is the industries are not the same in Alaska, Alberta or Norway. Different labour markets and thus labour costs as well as different tax structures. Norway's extraction takes place largely in the North Sea. Alaska is conventional oil. Alberta has a mixture of conventional oil and heavy oil. In my opinion it was a fairly logical decision to revamp the royalty structure for the oilsands. Accelerated CCA deductions etc were initially brought in when the technology was not proven and the risk of investing in the oilsands was unknown. That isn't the case anymore and therefore the incentives are no longer needed. Where I think the gov't erred is in the new structure for conventional oil and gas. It's punative on smaller companies that drill boomer wells and thus erodes an important aspect of the industry. The issue was never as simple as all royalties should go up or stay the same. A final point not many like to acknowledge. The Royalty report suggested Albertans have been shortchanged over the past 3-4 years in terms of royalty take. It also pointed out that it was the oil companies getting a bad deal from '97-02ish when commodity prices were depressed and oil reached a low of $11.98/bbl. Everyone seems to like to conveniently overlook situations where our royalties were perhaps too high for the given market.
  43. D. G. from Burnaby, BC, Canada writes: Kevin Cochrane; RIGHT on brother. People outside the industry think you just role out of bed and cash a $10,000 cheque up in Fort Mac. Like you said it is HARD freaking work, at remote work sites, high cost of living, and half the year working in -40C conditions. They earn what they make.
  44. Bill G from Calgary, Canada writes: Still Learning at 77 still has a long way to go. Hope you last that long!
  45. D. G. from Burnaby, BC, Canada writes: RB from Calgary; You are absolutely right. The whole purpose of the Globe & Mail articles on the oilsands was destined to be negative from the moment its editors decided to run it. Its like they think its up to the G&M (aka Eastern Canada) to "expose" the "dangers" of a booming economy to Alberta so they can show them the way to salvation. How pretentious can you get?

    I suspect their real purpose is to lay the foundation for future attacks on Alberta (same old same old) so their favorite political party can leverage eastern provincial jealousy into votes.

    Alberta is the perfect whipping boy in Canada for the NDP and Liberals, as they have zero votes to lose by alienating Albertans, yet millions of votes to gain in Ontario on east. Its worked before (NEP).

    The G&M is a rag.
  46. Still Learning at 77 from Canada writes: Thanks everyone for the comments both good and bad. Some feel offended for questioning Alberta governments decisions, but I also feel a little bad for having taken part in the Athabaska tar sands as the one of the first of many seismic crews in there. The polluted world my Grandchildren are left with does not seem to be a very nice place.

    Have a Good day and may your children bless you all.
  47. Randal Oulton from Canada writes: Will the writer do a follow-up article on how wealth in Ontario is limited to the south-western corner of the province?
  48. Rudy Krueger from High River, Canada writes: Another Perspective Been here for 60 years surrounded by petroleum. When we were kids we would throuw matches on sloughs just before nightfall to watch the methane fires dance around from natural gas seepage. Our water well fed a cistern in which gas was separated and gravity-fed to the house for cooking and the water (stinky stuff) pumped to storage and cattle pens. You could almost walk anywhere in the south of the province lighted by well flares. The Athabasca River had globules of bitumen rolling in it and disappearing into methane as bacteria transformed it. Sour heavy oil was being left in the ground as junk in favour of the occasional light or sweet reservoir. A few wealthy farmers and implement dealers were buying mineral rights from impoverished farmers in return for pocket change. Farmers in the irrigation districts were paying for their kids clothes and books by pulling traffic out of mud holes and occasionally being paid a token amount for oil company access to their land. Now we have had rural gassification, rural electrification, public telephone and info-net capacity, clean air, resource management and conservation, paved roads, agriculture support programs, modern education of all kinds, great rural health care, modern cities with generally excellent infrastructure, HOPE, rural distribution of governmental offices and operational units, attribution of energy value to small producers in the gas gathering system, surface rights protection (not perfect), etc, ad infinitum. I could go on with them for 10,000 words instead of the 2,000 permitted in this blog. One of the perspectives that needs to be addressed is the fact that small oil and gas suffers not from poor policy but inability to adapt to the realities of a late stage producing basin. These are the facts. Only an idiot would waste time debating whether a rock was indeed a rock. The facts speak for themselves. Oil and gas has been good to us all
  49. Alan Burke from climatechange.dynalias.com in Ottawa, Canada writes: Thanks Rudy.
  50. GlynnMhor of Skywall from Canada writes: Still Learning at 77 from Canada writes:"What is the royalty return per barrel to Alaska compared to Alberta? Are the citizens of Alberta getting their fair share in comparison to Alaska or Norway?"

    I'd rather take my share in salary than lose it to the government, be it provincial or federal.
  51. Alan Burke from climatechange.dynalias.com in Ottawa, Canada writes: Then you need a change in government, don't you. The socialist pinko-commie leftist tree huggers in Norway obviously don't have good government in your eyes, do they.
  52. Alan Burke from climatechange.dynalias.com in Ottawa, Canada writes: You know what folks, I'm from Calgary and it pisses me off to see the divisionary attitude many Albertans bring to these discussions. The ROC doesn't deserve the chip on your shoulder.
  53. GlynnMhor of Skywall from Canada writes: Alan Burke... writes: "Then you need a change in government, don't you?"

    Well, I hope we'll have such a change come the next federal election, and the possibility of having our representatives in the Senate is enticing (as opposed to having Senators represent their Parties).
  54. Alan Burke from climatechange.dynalias.com in Ottawa, Canada writes: For once I find myself in violent agreement with you GlynnMhor.
  55. Jean Luft from Canada writes: Still Learning at 77 from Canada says "The government pension fund of Norway is $74,500 per citizen, Alberta $4,800 per citizen. Boy you fellows in Alberta sure know how to get a good deal."

    Yeah, but the country of Norway didn't have to shoulder the burden of carrying Quebec like Alberta did. The NEP alone stole 100 billion from Alberta (an equal amount was given to the Quebec by the feds).....that accounts for about $34,000 per citizen of it.

    You may still be "Learning at 77", but you ain't learning much.
  56. L M87 from Calgary, Canada writes: Why has the government not pushed Alberta beef in trade talk with Asia? Protein is in huge demand with the price of soy jumping significantly. Food, in general, and Agriculture, is booming. a nice niche market with Japan has us trading marbled beef. But this is not enough to buoy the industry. Something has to be done, hello?
  57. GlynnMhor of Skywall from Canada writes: Alan Burke... writes: "For once I find myself in violent agreement with you GlynnMhor."

    I do hope you realize that the change in government I support is from minority Conservative Parliament to majority Conservative Parliament.
  58. Alan Burke from climatechange.dynalias.com in Ottawa, Canada writes: Yup. Me too.

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