Alberta Oil and Gas Rights Auction
Published April 17th, 2008
Alberta posted its poorest sale of conventional oil and gas rights in a decade on Wednesday, even though world oil prices soared to almost $115 US a barrel.
Alberta’s auction for petroleum and natural gas rights, is held twice a month , companies bid on lands they want to explore and develop.
Energy Minister Mel Knight said last week he didn’t believe Alberta was becoming less competitive for oilpatch investment next to its east and west neighbours.
Saskatchewan’s April land auction raised $265 million — eclipsing the $250 million it took in for all of 2007. In B.C, meanwhile, the government took in a record $1.2 billion in its fiscal 2007, and its last rights sale on March 26 generated $152 million.
“I am not in any way suggesting that we’re in a competition with Saskatchewan for land sales,” Knight said. “If you look at the royalty structure that’s in place in Alberta today, if you look at the tax structure that’s in place in Alberta today, you look at the fact that there’s no sales tax — add the whole picture together.”
Energy department spokesman Jason Chance said Wednesday’s land sale numbers are not unusual and should not be interpreted next to 2005 and 2006, exclusively, years of record activity in the province.
“You need to look at the longer-term trends and that is what we will do,” Chance said.
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