For Immediate Release | November 25, 2010
Misplaced Generosity
New report says extreme oil profits come at expense of government revenue
Parkland Institute
CALGARY – Despite a provincial deficit now forecast to reach $5 billion this year, a new report from the U of A’s Parkland Institute points out that Albertans have foregone tens of billions in potential revenue as a result of overly generous royalty cuts and the government’s failure to meet even its own modest targets.
The report, entitled Misplaced Generosity: Extraordinary profits in Alberta’s oil and gas industry, takes a closer look at whether the oilpatch was in need of the latest string of royalty cuts and asks some tough questions about the scale of their profits and how the Stelmach government has managed this province’s most important economic file.
“Albertans are already enduring a recession and a variety of cuts to public services,” says the report’s author Regan Boychuk, public policy research manager with the Parkland Institute. “Without a change of course by their government, they can expect more of the same: generosity for the oilpatch, discipline for citizens.”
The report traces the scale of industry profits over the last decade and delivers some much-needed scrutiny to the Stelmach government’s series of drilling incentives and royalty holidays that have forfeited billions in public revenue.
Debunking myths about Alberta’s supposedly higher oilfield costs, investment fleeing to our neighbours, and about how risky the oil and gas business is in Alberta, Misplaced Generosity also exposes the publicly-funded roots of oil production in the tar sands and reiterates recommendations to improve the accountability and oversight of the provincial government’s management of oil and gas revenues.
“Properly managed in Albertans’ interest,” Boychuk says, “oil and gas revenue could quickly accumulate to a sizable fund that could sustainably generate many billions in investment revenue to support annual budgets for generations to come.”
The Parkland Institute is a non-partisan public policy research institute in the Faculty of Arts at the University of Alberta. Misplaced Generosity: Extraordinary profits in Alberta’s oil and gas industry is available on the Parkland Institute web site at <parklandinstitute.ca> or in hard copy from the Parkland Institute at 780-492-8558.
Related research:
- Misplaced Generosity (Reports)
Comments
Comment on this entry
Please log in to comment. If you don't have Parkland Institute site login yet, register here (it's free and we don't share your email address with anyone).
Subscribe
Work in the media? Get Parkland Media Releases and related advisories through our RSS feed.
View by category
Releases and op-eds by topic
Canada corporations economics education energy policy environment health care healthcare inequality NAFTA - North American Free Trade Agreement neoliberalism oil royalties Parkland Institute privatization royalties service cuts tarsands taxes utilities wages
Releases and op-eds by date
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- July 2011
- June 2011
- February 2011
- December 2010
- November 2010
- September 2010
- June 2010
- April 2010
- March 2010
- February 2010
- December 2009
- November 2009
- October 2009
- June 2009
- April 2009
- March 2009
- January 2009
- October 2008
- September 2008
- Complete Archives
mennok
on 2010.11.26
3:39 pm
I am impressed with your research and article. I am totally amazed on the way our main stream media along with our elected officials locally provincially federally and our stewards whom we trust to educate our children,mislead all of us . To be sure the oil GIANTS who need the resources owned by the people will take what they can turn what they can into the greatest amount of wealth. They are not benevolent nor would the Free Market insist they should be looking out for our best interest we being the people. There fore we the people must devise systems on how we can control the use of our resources to the benefit of all of us even the people in the oil industry. I suggest explaining to the people all of us,that owning a resource like oil is no difference to owning other types of resources like ie: farmland where the owner if he rents out his land he receives cash rent from the renter or a percentage of the crop which he can then sell.The owner receives a fair share for owning the resource.WE the owner must get a fair share and the people must be informed as to what a fair share is and how this wealth can make society the best possible. I have some suggestions
: We the people should determine the rent received from our resources .I suggest at the next provincial election we have the opportunity to choose and elect representatives that run on what the rent will be on our resources. An election on how much rent will be charged.The election starts now. All parties discuss their policy with the people all the people including seniors to children in schools in churches in hospitals in malls in the workplace.Our elected government today makes this possible by publishing all points of view and provides opportunity for discussion. This discussion is necessary and by public pressure WE the people can make it happen . A continuous on going dialogue with the people with the renters of the peoples resources to maximize our well being. Thanks for your great work and the rewards for your efforts will also be great!P.S. How about receiving a part of the rent from the oil Giants in the form of company shares ! Of course not too many shares as to control! the company! This way when the company does well WE do well and the market will rule and we all are investors in it for the long run!Maybe this way we can be better informed on how to make the best business choices as owners!Basically spreading our risk and maximizing our returns! Thanks for reading this ! let’s have more discussion!