The only Stability is Instability for the Stelmach PCs

For Immediate Release

The Stelmach government continues to fiddle with investment rules and a Global Investment Survey revealed Alberta to be an uncompetitive place to do business. This ranking encompasses the reasons behind the lower levels of economic activity, building permits, and employment rates. Meanwhile, his MLA’s and Ministers that should be primarily responsible for reversing these trends seem focused on ill-advised parenting advice and bikini car washes.

A Global Petroleum Survey yesterday announced Alberta ranks 92 out of 143 jurisdictions and dead last of the Provinces in Canada. Premier Stelmach announced an extension of a royalty incentive plan for one year, previously announced in the spring. Unfortunately, the original proposal hasn’t helped drilling rates as evidenced by the historically low drilling levels that continue. In fact, less than 10% of rigs available are working in Alberta right now which is a multi-year low. Further, land sales in the Province total just over $100 million this year versus the almost $3.5 billion in 2006 and $178 million just last week in BC. Land acquisition is the ultimate leading indicator of future activity for without the land to drill upon, there is no drilling. With no drilling, the impact of these incentives is small. The NRF also takes away alot of the cash flow from current wells that would have been able to finance future drilling.

Interim Leader Paul Hinman commented “For the first time in memory Alberta is losing people to Saskatchewan, a province that under Premier Brad Wall is experiencing economic surplus while Alberta under Premier Ed Stelmach is experiencing economic deficits. This isn't market failure. This is government failure!”

“This is another revision of their New Royalty Framework and I don’t think I have enough fingers to count the number of revisions.” Mr. Hinman continued, “Albertans and industry need some form of certainty in planning their future and the Stelmach PC’s only provide instability. I’m looking forward to the bye-election campaign in Calgary Glenmore where Albertans will have the chance to send Ed a message!”

The Wildrose Alliance calls for the cancellation of the NRF and to bring back the former Royalty Framework that led to over-flowing government coffers rather than empty cupboards. The old system provided healthy employment levels where anyone who wanted a job could get a job. The stability of the former Royalty Framework brought billions of dollars of investment into the Province. Alberta truly had an advantage with low taxes, fully funded health care and education, a strong economy, and cared for its’ seniors.

FOR MORE INFORMATION:
Paul Hinman
Interim Leader
Wildrose Alliance
Phone: 403 479-6000

info@wildrosealliance.ca

Alberta Needs Your Help

Over the last few months I have enjoyed meeting and speaking to many Albertans. Many are contacting us for the first time and they have been motivated by letters they are reading.

This week I will be featuring the letters that are creating the buzz.

February 7, 2009

Friend and Fellow Albertan:

Because of low commodity prices, the worldwide credit crisis, and the policies of Alberta Premier Ed Stelmach, our oil industry is going to have a long, tough year. Two are beyond our control. I’m writing about the third.

In the two years since Premier Stelmach announced the public royalty review process, we’ve all wondered what his agenda was. My investigations lead me to conclude he doesn’t understand or trust the oil industry. Many Tory MLA’s, particularly from northern and rural Alberta, share this view. Somehow, under his leadership, Stelmach has split our province on a north/south, anti-Calgary basis. There is no other possible explanation why he would ignore the mountain of expert advice and subject our industry to punitive royalty increases that will ultimately damage all Albertans.

Stelmach’s recent announcement that he’s going to somehow help junior oil companies without improving investment economics by reducing the Crown share proves once again he just doesn’t comprehend how the wealth-creation process works. His advisors, many political scientists and journalists, and many Albertans don’t understand it either. This is why the “us versus them” aspect of the royalty issue still permeates the public debate.

For 30 years in print and electronic media, I’ve been a vocal supporter of the oil industry. I continue today on a monthly basis in Oilweek and The Calgary Herald. Although I’ve been asked to go into politics many times, I’ve avoided it so I could remain independent as a journalist and commentator. However, the damage being inflicted by the Stelmach government on our company, our employees, our industry and our province is so great and so unnecessary that I have to get involved.

Therefore, I’ve joined a group of likeminded individuals in the Wildrose Alliance Party in a policy and fundraising capacity to create a viable alternative to the current government. I’ve concluded that the only pressure that this government understands is the loss of political power. Many Tories I know are very discouraged with the current leadership and claim that they can change their party from within. While this may be the case in a few years, Alberta can’t wait. Certainly many smaller E&P and service companies and their employees are out of time. We must act now.

As for Wildrose Alliance, what you see today is not the final product. We’re building a centrist, “big tent” party with broad appeal to Alberta’s diverse citizens. But our party will have the true small “c” conservative economic policies the Tories have abandoned. To view an overview I co-authored with party leader Paul Hinman and President Jeff Callaway, go the Wildrose Alliance website and click “Policy Presentation”. There will be many changes to Wildrose Alliance in the next few months.

But we need money to do the foundation work for a major public launch later this year. I’ve personally donated $5,000 in the past 12 months. In the best interests of our province, I’m asking you to make as large a donation as you’re comfortable with. Nothing is the wrong answer. There is no downside to helping. If we create a viable, centre-right alternative to the Tories our province needs, we’ll have a choice next election. If our actions cause the Tories to wake up and become responsive to the needs of working Albertans and its most important industry, then our efforts will be
rewarded much sooner.

I’m working on this a few hours a week because, like you, I have major obligations in ensuring our company emerges from this downturn with the least possible damage. To do this we laid off about 5% of our staff on February 2. Hopefully, it won’t get worse. But I also believe that my modest contribution of time and money to get the Alberta government back on the right path will ultimately help our company.

Sincerely,
David L. Yager

David Yager a columnist with Oilweek and the Calgary Herald. He is also the CEO of an oil service company. You can find a printable PDF version of his letter at the Grassroots Oilworkers website.