Canada Is A Poor Negotiator

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Canada Is A Poor Negotiator

Post by ooptec on March 31st 2014, 2:31 pm

Canada taken to the cleaners

Norway and the U.K. are a particularly poignant example of two countries exploiting the same oil at the same time while one is clearly benefiting more than the other. Both countries also helpfully list their production and public revenues back to the 1970s, so it is simple to calculate what the taxpayer took home per barrel in any given year.

Digging through the numbers, it seems Norway is considerably more skilled at negotiation. By charging higher taxes and investing equity ownership in their own production, the Norwegian taxpayer was paid $46.29 BOE in 2012. That same year, the U.K. taxpayer realized only $20.08 per BOE -- less than half as much.

What about Canada? Much of our production is bitumen, which admittedly is a lower value (and often unprocessed) product with higher extraction costs. That said, it seems the nicest nation on earth is being taken to the cleaners. In 2012, Canada produced more than two billion BOE and collected $18 billion in provincial and federal taxes and royalties. This means that the Canadian taxpayer realized a benefit of about $9 per BOE -- less than one-fifth what Norway collected in the same year.

http://thetyee.ca/Opinion/2014/03/31/Canada-Lousy-Oil-Negotiator/?utm_source=mondayheadlines&utm_medium=email&utm_campaign=310314
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Re: Canada Is A Poor Negotiator

Post by Ballyrag on April 1st 2014, 3:42 am

Yea but i think Norway oil is state owned and ours is owned by oil company's

so Norway can get more profit  per barrel Norway owns 80% of its oil

and Canada something like 10% and we give huge tax breaks to the fat cat oil company

I think its more poor management then anything else and government only looking 4 years in the future

covering there ass for the 4 year term

my opinion anyway


btw i enjoy your posts
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