Premier Ed Stelmach said "the changes to the fiscal regime are aimed at restoring investment in its petroleum reserves and competing with massive shale gas discoveries elsewhere".
"The world has changed, the realities of the energy sector have changed and Alberta must change too or risk losing its competitive edge in an industry that has given us so much and still holds so much incredible potential for our future,"
An ETF to use for oil sands companies is CLO (Claymore Oil Sands). It's MER is 0.60%. Currently, CLO trades around half of its peak price.
Chart:
Top holdings:
| CONNACHER OIL & GAS LIMITED | |
| SUNCOR ENERGY INC | |
| IVANHOE ENERGY INC | |
| CANADIAN NATURAL RESOURCES LTD | |
| UTS ENERGY CORP | |
| BLACKPEARL RESOURCES INC | |
| CENOVUS ENERGY INC | |
| IMPERIAL OIL LTD (I/L) | |
| CANADIAN OIL SANDS TRUST | |
| BAYTEX ENERGY TRUST |
CLO is described as follows:
The Claymore Oil Sands Sector ETF has been designed to replicate the performance, net of expenses, of the Sustainable Oil Sands Sector Index™ (the "Index"). The Sustainable Oil Sands Sector Index™ was designed to give investors the maximum exposure to one of the fastest growing industries in the Canadian energy sector and one of the largest reserves of oil in the world. The Index is restricted to companies that are highly focused on oil sands production and are expected to increase their oil sands production in the next ten years. The weightings in the Index are based on a proprietary mathematical formula that focuses on five key factors. By focusing on the following five factors, the Index is designed to invest in the companies that best represent the current and future production of oil sands:
- Current Oil Sands Production measured in barrels per day
- Projected 10yr Forward Oil Sands Production measured in barrels per day
- Focus on Oil Sands Production Percentage of total production focused on oil sands production
- Market Liquidity
- Market Capitalization
This announcement is a farce! Alberta never, ever initiated the "new royalty regime". That was an empty document;a lie to get them elected last time.
ReplyDeleteThis is really no different than them working
with the oil companies to propel the NEP farce!
2 years after the election the AG in Alberta bounced the Government because they had failed to reach their targeted 19% royalty. After that time the minster stated publicly there would be no new rates put in, in the foreseeable future.
The oil companies are picking up the drums now to lend credibility to an election bungle saying
they may stay, things will improve and other spin doctoring.
This is grand theater, nothing more. The mentioned reductions take place in the scale where Alberta has never ever received any cash!
In their reasons they mention fewer rigs drilling. They did not mention most rigs are multi directional; 1 rig does the job of 10 now.
Chase a taxi and you save more money than when you chase a bus!
We still collect less than 1/2 of what BC or Saskatchewan does! What is there to cut? We are presently paying them to take the stuff out of the province and the Wild Rose Party, financed by the same oil companies promise more of the same.
The Conservatives do not think this province is entitled to anything more than a lease on the land and income taxes, on par with the US Republicans.
This rip off isn't going to change any time soon unless Albertans step away from the Conservative vote or, those people who though their vote would not mean anything will step up to the plate and vote.
The royalty announcement isn't even chewing gum for the mind! It is not just cheap theater; It is perpetrating blatant lies.
To do a bit of navel gazing:
ReplyDeleteIf a person has been distant from the Alberta Government (as in not an insider)and you have been taking your investment leads from popular news and have avoided oil and tar sands investment, I think there must be a legal case made to recover some losses due to the massive amount of mis information the Government has given out.
Just a thought.