The big night
Tonight every oil and gas executive will have their eyes glued to the TV or their ears stapled to the radio. Premier Ed Stelmach will address the province and give his first hint at the details of the plan his government has for royalty rates.
Many people I was speaking with this morning are speculating “steady Eddy” will try and make a safe bet compromised solution. With the review panel suggesting a hike of 20 per cent and energy companies perferring no hike, the question is how much?
Many of the people I was speaking with were those who work for oil and gas companies like Encana, Talisman, and Petro Canada. They all have a different idea of the route Stelmach will take. Some say 5 per cent, others predicting a hike of 10 per cent and some whot think he will tie the rate to the price of oil or gas … I’d hate to be the person who has to figure that math out.
Many also believe oil and gas companies will not be happy with the governments plan but the average Albertan will. They say the industry will lose profits and will grudgingly have to go along but with more money for the heritage fund and social programs, the people will be pleased.
So what will happen? Only time will tell. Stelmach will have his time tonight to give hints in his address for the royalty plan. The bulk of the details will come tomorrow afternoon when Stelmach and Energy Minister Mel Knight unveil their full plan.