“When you see our operating costs in the low $30 a barrel range,…” SUNCOR President Rick George was quoted in the Edmonton Journal on page A2, Sept. 24.
Since capital costs are paid for by Albertans though oil royalty holidays, and the oil companies collect a decent percentage on those costs, $40 per barrel of oil is too much profit and not enough royalties.
The BRIK (Bitumen Royalty In Kind) has been a catastrophe for revenues.
Instead of being paid in refined oil or cash, Albertans collect their royalty in raw bitumen, for which we must then find a buyer, or a refiner, who always happens to be a big oil company.
Is any Albertan surprised at the low valuation of bitumen by these conglomerates?
The Stelmach Stumblers have fallen down on the job again.