Barry Munro, an analyst with the consulting firm Ernst and Young, said yesterday that ... [f]ailing to review the royalty proposal ... could lead to an outflow of capital from Alberta. "There continues to be this very, very impassioned call on the government to just simply fix some things that were just badly flawed within the logic of the royalty recommendations. He's got to get on with that, and he's got to get on with that right now because business-planning cycles require certainty or else people just quit spending. When faced with an uncertain framework, people just allocate capital elsewhere." Moreover, Stelmach's government needs to gain a better understanding of how the oil and gas industry works, Munro said, noting "there's a perception that there's a lack of understanding ... immediately flowing out of that is this lack of confidence."
- Calgary Sun, March 5
The Sun elsewhere notes that Peter Linder, a Calgary-based petroleum analyst and principal owner of DeltaOne Capital Partners Corp, believes that "the royalty regime weighs most heavily on junior companies... who, unlike large producers, are unable to focus on operations outside of Alberta to avoid paying higher royalties. "Those are the ones that are really suffering," he said." Linder also "said he doesn't think Knight will survive in the energy portfolio" and "said he expects Stelmach to appoint a minister 'who is much stronger and much more knowledgable' than Knight."
I suppose this is where I retract all my speculation about merging with the Liberals and suggest we merge with Brian Mason's NDP instead!
UPDATE:
Frank Oberle (Peace River) has been appointed "Caucus Whip" and Robin Campbell (West Yellowhead) as "Deputy Whip". Who needs to be whipped? Half the Cabinet alone would be more than enough to outvote the opposition!
2 comments:
Hi Brian - those quotes you use are more self-absorbed Calgary oil patch guys who are paid to say that stuff...and they are never chalenged to substantiate their facts or opinions.
They don't add much value and are mostly sour grapes and sour gas
I'm an analyst myself, having received the Chartered Financial Analyst charter in 2006, so it may not be surprising that I believe industry analysts are amongst the most authoritative.
Post a Comment