The Minister make's no attempt to defend the lowest royalities in the world; he would have us think that the little we are getting is sufficient - sit down and be quiet!

Not discussed is the fact that these oil companies made over a billion dollars and paid no income tax!

Facts for Mr. Clark

FACT: The oil sands will continue to be an economic driver for Alberta well into the future.

FACT: For the 2003 production year the 37 pre-payout projects paid $8.1 million in royalties while the 15 post-payout projects paid $217.1 million in royalties.

FACT: Up to an additional 9 projects may reach payout this fiscal year, depending on oil prices and realized operating conditions.

The table below represents royalties received by the crown under assumptions of price per barrel, production cost, royalty rates and production per day by 2017
Price per barrel $40
Less production cost $20
Royalty rate 25%
Royalty per barrel 5.00
Production per day 3 million barrels
Royalty revenue
per month $450 Million

Price per Barrel $50
Cost of production $20
Royality 25%
Royality per bbl $7.50
Production bbl 3 million
Monthly Royalty $675 million

Price per Barrel $60
Production cost $20
Royality 25%
Royalty per bbl $10.00
Production bbl 3 million
Royalty Revenue $900 million

Price Per Bbl $60
Production cost $10
Royalty Percentages 25%
Royalty per BBL $12.50
Production 3 million
Royalty per Month $1.125 billion
Prices listed in Canadian dollars.



After Tax Net Earnings of the Top 10 Oil and Gas Exploration and Production Companies in Canada and
Alberta Ministry of Energy (DOE/EUB) Net Operating Revenue


Rank
Company/Organization
Net Earnings (Cdn$)

1
Alberta Ministry of Energy
7,865,068,000

2
EnCana Corp.
3,297,024,156

3
Imperial Oil
1,682,000,000

4
Petro-Canada
1,669,000,000

5
Cdn. Natural Resources Ltd.
1,394,000,000

6
Husky Energy
1,321,000,000

7
Suncor Energy
1,084,000,000

8
Talisman
1,007,000,000

9
Shell Canada
810,000,000

10
Nexen Inc.
639,000,000

11
Penn West Petroleum Ltd.
434,951,000
Note: data for companies is for the year ended December 31, 2003; data for Ministry of Energy is for the fiscal year ended March 31, 2004.