This Is a Good Sign

Apparently Ted Byfield has decided that he doesn't like Stelmach's reworking of the royalty scheme.

Given Mr. Byfield's illogical arguments on so many other topics, it probably means that Stelmach actually took a step in the right direction.

Sez Ted:

He has turned Albertans against the industry that has made them prosper and has made their province great.

How else can you interpret his new royalty regime, imposed without negotiation on the province's central economic engine?

I've said this before - governing is about a lot more than just money. It's about people, and the interests of the people. The oil patch has had a great deal of say to date in the royalty arrangments in this province, and has slowly and steadily wormed into the minds of people like Mr. Byfield that it would be a "Bad Thing"(™) to touch anything to do with the oil patch.

What has been made clear is that the free lunch of profits at the oil trough is over. Remember, those resources belong to all of us, not the oil companies per se. They may sulk for a while; and a few may well stomp off in a huff and move their focus elsewhere in the world. It's not a bad thing - slowing down Alberta's economy right now would be good from several standpoints - like trying to hire staff for smaller businesses.

If the oil sits in the ground a bit longer, what's the big deal? It stays, and the odds are that the prices will go up on the resource as supplies begin to run out. So, from an investor/taxpayer perspective looking a little more than next quarter down the road, I have to ask myself just what we lose? Not much. Get it out today at today's prices and a higher royalty fee, we win. Leave in the ground for a while and get it out at higher prices due to reduced availability, and we still win.

Unless the world's need for oil drops dramatically in the next few decades, we come out ahead either way.

Somehow, I think I'll put a little more stock in what Peter Lougheed comes up with over what Byfield tries to pass off as wisdom.