August 07, 2015

Alberta: NDP destroys over $500M in wealth in just two days as second oil company posts losses

Ezra LevantRebel Commander

Another oil company is reporting significant losses, and it's not due to falling oil prices.

This time it was a company called CNRL (Canadian Natural Resources) reporting losses of $405 Million dollars last quarter thanks to the jacked up corporate tax rate brought in by the NDP.

It's hard to know who hates the oil sands the most, Rachel Notley, Brian Topp or Graham Mitchell, but in the past two days this team has effectively destroyed more than half a billion dollars in wealth and cost thousands of jobs. Some might see this as disastrous for Alberta and disastrous for Canada but to these anti-oil sands New Democrats, this is what victory looks like.


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commented 2015-09-07 15:48:24 -0400
I wonder how much money was paid to the CEO of this oil company? How is his bonus looking? What about the CFO? I wonder how many millions in bonuses were paid out to the small number of people that actually don’t do anything? I am expected to believe that the oil companies are hurting when I read in the news? (sure let’s call it that) that “Billions of Alberta Oil workers lose job!!!” yet I still pay over a $1.00 a litre for gas?!? I am expected to believe that these Mega Oil Companies can’t afford to pay taxes? Sure, I’ve used that excuse with the CRA too brother…I feel your pain. Can’t wait to see the next headline… “NDP in league with SATAN!!” “Oil Company Executives heading to Food Banks” “Where did my $100,000,000 go asks one executive?!?” Cry me a river!
commented 2015-09-05 11:49:40 -0400
Reported losses are calculated against projected revnue. They projected theirs when PC was in power. New taxes? Yeah, they will make less… but they still earn profits over costs to run the operations. Don’t be fooled into thinking they “lost” money. The didn’t make as juch as they wanted. NDP is doing exactly what they set out to do. Tax the big company and relieve the taxes on the average working family.
commented 2015-08-30 15:44:51 -0400
What oil Company do you work for
commented 2015-08-29 23:31:00 -0400
What did everyone expect. It’s a new government. That 500 million will serve nicely to pad the pockets of friends and relatives. Give it some time. Once they all have their luxury cars and vacation homes they’ll get bored and actually do something for the country. It’s why I always vote for whoever is in power. Peace out.
commented 2015-08-27 10:23:57 -0400
commented 2015-08-11 04:29:25 -0400
I call bullshit on all these companies. Suncore even just posted they made almost three quarters of a billion in the second quarter. The ass holes need to be taxed. It’s always funny how people think they should be exempt. Especially since all those profits are making their way back to the shitty ol usa
commented 2015-08-10 17:34:11 -0400
I love when people make money. I love when I make money. When oil companies make money they hire more people. People who live all across the country are being laid off from oil patch and related jobs. That is money being sent home to families of workers from all provinces, that won;t be any more.
How many pension funds have investment in the oil patch, how many Canadians are watching their retirement portfolios go down as a result of this decline, exacerbated by corporate tax hikes, royalty reviews, ever changing enviro regulations, and FN disputes. What company would bother trying to do business in a province/country who make it impossible for them to compete. The NDP have no interest in a healthy, Alberta oil and gas industry, and are taking advantage of a bad drop in prices to sink the boat , once and for all, or at least hold it down long enough to impair its place in the global market.

Does Alberta NDP look like they are interested in ,“A government commitment to a vibrant and competitive oil and gas industry” ?
Who will make any changes, “stable and predictable to minimize uncertainty and maximize investment in Alberta”?
Not by anything they have done or said so far. The list of thugs from Ontario in Notely’s cabinet says only one thing, and it is clearly understood. CAPP has to sound cooperative and hopeful, but they know darn well its over here for a good long while, and they are pulling out in droves.
commented 2015-08-10 13:39:16 -0400
Oops sorry Liza I mean
commented 2015-08-10 12:29:30 -0400
Lisa, kris w. Blah blah blah I hate corporations blah blah blah I hate corporations. Blah blah blah I hate when people make money . lol
commented 2015-08-10 10:32:00 -0400
" With the development of the welfare state on the basis of the boom, the rate rose to 48.8% by 1986 in Alberta. " This one from Kris W. is most entertaining when you put it in context.
commented 2015-08-10 10:29:00 -0400
Spoken like a true Marxist, Kris.
May factors are taken into account when coming up with a bottom line in a competitive market. The operative word being competitive. In a competitive market situation, timelines also come into play. Windows of opportunity are time sensitive and numbers and percentages with no context are meaningless.

CAPP pres. Tim McMillian, " The industry would like to see the following four principles included as part of the Alberta government-led royalty review:
A government commitment to a vibrant and competitive oil and gas industry;
Confirmation any royalty changes will be forward looking;
Be stable and predictable to minimize uncertainty and maximize investment in Alberta; and
Consider royalty changes in the context of all the mounting costs from new government policies such as climate change and corporate taxes."
commented 2015-08-10 01:41:43 -0400
Apparently …Dale Warren…. would like to assume that he understood my reference to a “Tax Pass” but obviously, he’s the type of person to spout off about things he “thinks” he perceives correctly yet so prematurely about things he obviously doesn’t truly understand… and it looks like he does this quite often LOL.

The following excerpt in a recent article from Fightback ( should help those less educated on the subject of historical corporate taxation (like poor Dale) to understand “why” the oil barons have not complained about corporate tax (which I OBVIOUSLY referred to as a “Tax Pass”) prior to the NDP takeover.

Similar to Bob Rae’s Ontario NDP government, Notley’s government will come under intense pressure from all sides. The campaign in the media, already intense, will reach a fever pitch. Businesses have already threatened to leave the province. Companies, foreign and domestic, have threatened an end to investment in the province. The province’s credit rating will come under threat, thereby hampering the government’s ability to borrow. As Caplan wrote in his article, “The dangers of an NDP government to the entire Alberta way of life is already a maxim among the elite.”

The corporate elite have raised a noisy campaign against the proposed increase in the provincial corporate tax rate from 10% to 12%. They howl loudly about how this will hurt the bottom line too much and drive them out of business or force them to leave and operate elsewhere, despite the fact that corporate profits are at all-time record highs and corporate tax rates are far lower now than in the past.

This question of corporate taxation helps to explain the limitations of reformism. In the past, on the basis of the post-war boom from the late 1940s until the 1970s, the capitalists were able to afford reforms as a means of buying class peace. For example, in 1949 Alberta’s combined federal and provincial corporate tax rate was 38%. With the development of the welfare state on the basis of the boom, the rate rose to 48.8% by 1986 in Alberta.

In the epoch of the organic crisis of capitalism, the ruling class can no longer afford reforms and is not willing to pay for them. This led the capitalists to launch an all out assault on the living and social conditions of the working class. Over the course of the last 20 years corporate taxes have declined sharply. The federal corporate tax rate was cut from 28% to 21%. Harper’s Tories cut this further to 15% and worked to bring the provinces online with corporate tax cuts and move their rates down to 10%, something the Tories in Alberta were happy to do. Klein reduced the provincial tax rate from 15.5% to 13.5% in 2001 and then brought it down to 10% in 2006. Alberta’s current combined corporate tax rate is 25%, with the Notley government intending to increase it to 27%. They howl and scream madly about a minor increase in taxation when rates were actually higher during the Klein years. With the dismantling of the welfare state and sharp decreases in corporate taxation, the burden of the crisis of capitalism has been shifted squarely onto the backs of the working class.

Surely, the biggest battle in Alberta will be on the question of oil royalties. The Notley government’s program has promised a review of natural resource revenues. People in Alberta don’t just want a review of royalties, they want an increase. A loud opposition has already been organized against this review. When the Tory government under Stelmach opened a royalty review, a vicious campaign was initiated in the media, including the U.S. press. If such a campaign were organized by the oil barons and media against a Tory government then, we can just imagine what will happen when it is proposed by an NDP government now.

Perhaps Dale should educate himself a little bit more on the topics he chooses to debate before he makes a complete FOOL of himself with further assumptions… OOPS!… too late LOL.
commented 2015-08-09 13:45:04 -0400
BTW northern BC is still busy and of course so is Saskatchewan, I cannot draw any other conclusion but to oust the currant regime by force if necessary
commented 2015-08-09 13:28:41 -0400
There are fewer rigs working now than in the 80’s during the NEP.
commented 2015-08-09 12:59:52 -0400
Heh. Nothing to worry about. Alberta’s Petroleum industry is presumable still busy “exploring and embracing” things with Rachel.
“Albertans voted for change and we are prepared to work with the new government to explore and embrace the best change possible,” CAPP (Canadian Association of Petroleum Producers) president Tim McMillan said in a news release."

After all, the only thing CAPP seems worried about in its latest news releases is doing more about Climate Change.
commented 2015-08-09 12:46:00 -0400
Jimmy da Clueless . . . . at one time Jimmy, liberalism was referred to as Classical Liberalism. The ideology advocating private property, an unhampered market economy, the rule of law, constitutional guarantees of freedom of religion and of the press, and international peace based on free trade. Up until around 1900, this ideology was generally known simply as liberalism.
In the 20th century Liberalism adopted far-left idologies of marxism/socialism to the point where there is little difference between the NDP and Liberal parties today. They have left a trail of Destruction in this country for many decades, Alberta being the latest ! ! !
As more and more Socialist Euro states are facing Collapse, and of course the most Socialist President the USA has ever seen, and soon to be 20 TRILLION in Debt . . . hang on Jimmy it’s going to be a wild ride !
commented 2015-08-09 12:28:56 -0400
Kris Warren . . . Granted a tax pass? Absolute NONSENSE ! ! !
Who pays ALL taxes Kris? Why the Consumer DOES . . . the Business, Corporation or whatever . . . simply ADD the cost of ALL TAXES into the Product or Service they Supply. That has always been the case.
Who destroyed Industry in Canada? Certainly NOT tax cuts . . . LOL
In the last decade or so it has been the McWynn liberals in Ontario . . . 300,000 manufacturing jobs and counting.
The failed state of Ontar-i-owe, and now the insane Left is Destroying Alberta . . .
In my world Corporate taxes would be ZERO. All Shareholders Pay Taxes, All Employees Pay Taxes . . .
Of course in YOUR world of high taxes = zero investment = zero jobs = Failed Euro Nanny State !
commented 2015-08-09 12:22:35 -0400
Paul Dunbar . . . when you are dealing with 10s and 100s of Billions of Dollars 2% is a GREAT DEAL . . .
Perhaps Paul . . . you should pick up a book on Economics . . . Thomas Sowell wrote Basic Economics, I recommend it !
commented 2015-08-09 11:42:14 -0400
How much will we take before we do something? Why is “leadnow” still operating?
Is that not sabotaging the election process? Why are they getting away with it?
commented 2015-08-08 18:58:23 -0400
Found a PDF of “The Moon Is A Harsh Mistress". Will read it this weekend.
commented 2015-08-08 18:48:41 -0400
I don’t know about you, Peter Netterville, but much of Canada’s “independence” rests firmly on the shoulders of Canadians. I, too, fear for the future of our country, starting with this next election. I also share your doom and gloom fatalism.

But I also don’t rely on government. They can do what they want, and I will do what I want.

You might want to check out the book “The Moon Is A Harsh Mistress” by Robert Heinlein. In essence, the book is a how-to manual for mounting a revolution. One of the primary characters in the book is Professor Bernardo de la Paz, who describes himself as a “rational anarchist”. Basically, he says that if he agrees with a law, he’ll abide by it. If he disagrees, he won’t. Regardless, he’ll bear the responsibility of the results of those actions, because his is the final responsibility for his deeds.

I think I like that character…
commented 2015-08-08 17:59:36 -0400
Prince Knight, what you say it true, but if Britain and Europe have gone the socialist road (assuming each nation had their conservative opponents), what can we do different that would make a difference. I know this sounds almost fatalistic, but it seems Canada is headed towards the socialist society and there seems to be nothing we can do to stop it. Of course, the NDP win in Alberta has contributed significantly to my doom and gloom fatalism.
commented 2015-08-08 17:20:46 -0400
Eileen — to answer your question(s): "I cannot understand what is wrong with the average Canadian who would vote to install a socialist government like the NDP, or a “progressive – meaning left-leaning” government like the Liberals! Has the unthinkable actually happened? Have millions of Canadians been “brain-washed” so that they have become “sheepies” who docilely follow the leader? Can Canadians no longer use critical thinking skills and think for themselves? "

Re voting in a socialist, “left-leaning” government — the general populace wants a free ride. They don’t want any responsibility, they don’t want to have to work, they want things done for them. They want “easy street”, and will vote whoever they think will give it too them.

Re Canadians being “brain-washed” so they “docilely” follow the leader — by and large, yes. How many people still believe that this “science” of man-caused global warming (excuse me, “climate change”) is real? I rest my case.

Re Canadians no longer being able to think critically or for themselves — of course they can’t! Otherwise why would they be asking government to take care of them?

Are you aware, Eileen, that Maggie Thatcher, former PM in the UK, is still hated among a large portion of Britons? And her crime? She cut government spending, and turned a failing socialist state into a growing industrial nation again. But millions lost their welfare, subsidies to the arts and telecommunications were slashed, and health care was affected. Budgets had to be balanced, but these people still cry foul because they had their incomes gutted. Greece is facing this same situation now, and Canada could (in short order) if we allow these types of governments to gain power. (Talk to nearly anybody in Ontario.)
commented 2015-08-08 16:25:28 -0400
Its really totally irresponsible reporting regarding this article Iam not on the NDP side one little bit BUT lets not distort reality here. the tax increase was 2% so NO the tax increase had NOTHING to do with the 405 million dollar lose
and last time I looked you don’t pay any tax at all if you show a lose.this article is total bullshit
commented 2015-08-08 14:33:48 -0400
If the ndp take Ottawa western separation will take centre stage. Should that happen the the current ndp government in Alberta will become null and void. Things like the flat tax could be implemented ending bonuses paid to oil companies and the old cronyism games that the latest conservative government was so famous for. Turning off the taps heading east until they are willing to finally pay the world oil prices. The west could be the very last bastion of free enterprise in the world. One could make the argument , at least we would be more of a like minded people interested in true freedom and free enterprise. At least we all are against socialism and communism in which most eastern politicians tend to be leaning these days
commented 2015-08-08 14:26:51 -0400
NDPs ought to change their name to Job Killing Party. From the moment the NDs were elected my business starting losing contracts – lost 40% of revenue in the last few months. Even the smell of socialists in an oil rich province is enough to chase business out of town – we can only hope they, at least, head to Saskatchewan. More likely they will simply hunker down, hope for positive change – when none comes under Rachel & her unionist gang, they’ll just fade away, and with them thousands of high-paying jobs. Even the $15.00 minimum wagers will be out of a job. Amazingly intelligent – these socialist dimwits.
commented 2015-08-08 13:39:06 -0400
The price they can sell the fuel at is down to 66% of what it was last year, but they claim that more than 95% of the problem is the tax going from 10% to 12%. I bet the Conservatives would have bought that story and not only lowered the taxes, but handed them huge subsidies and probably even free cake…
commented 2015-08-08 12:37:49 -0400
I cannot understand what is wrong with the average Canadian who would vote to install a socialist government like the NDP, or a “progressive – meaning left-leaning” government like the Liberals! Has the unthinkable actually happened? Have millions of Canadians been “brain-washed” so that they have become “sheepies” who docilely follow the leader? Can Canadians no longer use critical thinking skills and think for themselves?

Our beautiful country is changing for the worse before our eyes because it has elected so many socialist, leftist provincial governments! Look at Ontario, Manitoba, the Maritmes! Now Alberta is skidding towards self-destruction! Wynne whines that she is being short-changed on equalization money! Where does she think any extra money will come from if there are no longer any “have” provinces to provide it?

I just wish that Mr. Harper had pointed out that the destructive fiscal policies of Ontario (high energy costs due to “green” energy, amongst others) is what is driving manufacturing out of the province! And, that it will be Notley’s fiscal policies that will destroy the oil industry! But, Mr. Harper is far too polite to do so. It is refreshing to know that the Rebel calls a “spade a spade” and tells it like it is!
commented 2015-08-08 12:01:41 -0400
To further Greg Wood’s comment; just think about the years, and Years and YEARS CNRL (and many others) have been granted a “tax pass” or been bailed out on certain projects… not to mention the kickbacks and bonus cash received by oil company exec’s and politicians alike in their many back-room and sideline deals! I’ve worked for CNRL and many of their subcontractors so believe me, I KNOW what they like to boast about or prefer to keep quiet.
Personally I DON’T think “…what’s best for CANADA” should be predicated on what’s right or wrong with ALBERTA’S OIL & GAS INDUSTRY but like usual, the government (no matter WHO it is) will ALWAYS feed on the wealth centres rather than tell “average individuals” that they will be picking their pockets for ANOTHER 5 to 30% of their personal income… that naturally comes AFTER the politickers are elected and NOT while they’re kissing ass to get in!… so come on people, lets use our brains a little bit here and just REALIZE once and for all that personal tax and corporate tax combined ultimately balance out to similar levels every year based on our speculative up or down economy and national debt for the year to come no matter “WHO” is running the show and it will ALWAYS be that way until we have a NATIONAL TAX REVOLT for “actual REFORM” (whilst addressing many other NATIONAL financial issues of course) which is the arm chair politicians ultimate fantasy HOWEVER!… the reality is NONE of us seem willing to dig in long enough for that to happen and WE CANADIANS probably never will.
Oh, and obviously, let’s not forget that ANY POLITICAL PARTY’s slogan could be “We can make some of the people happy some of the time, but we will never make ALL of the people happy ALL of the time”.
< End Point >
Canada’s problem is NOT necessarily ALBERTA’S problem today and conversely, ALBERTA’S problems are NEVER “Canada’s” problems especially “right now” while we’re already struggling to continue in OUR PRIMARY INDUSTRY with layoffs and shutdowns, repo’s and foreclosures happening daily… but don’t worry all of you “other Canadian’s”, we’re tough people out here in Alberta and like usual, WE WILL tough it out and come to Canada’s rescue AGAIN like WE ALWAYS DO to turn our tax problems and broken economy around. THE FUNNY THING IS how politicians and non-Albertans no matter who they are ALWAYS focus on ALBERTA’s Oil & Gas in times of trouble, but when the rest of the country is in the green, they just go on with business as usual in Ottawa and treat us like the “red-headed stepchild” LOL!
I’d love to go on and discuss the FACT that millions of individuals have come to Alberta to work then take their money back home to support their own communities and provinces all over the country, but I think the “intelligent readers” of my comments here will truly UNDERSTAND my point that CANADA’s financial well-being should NOT be based solely and completely on the status of ALBERTA’s Oil & Gas… but for obvious reasons IT IS!
WAKE UP CANADA!!!… Our politics are worse than a soap opera’s “Groundhog Day” FFS! Why don’t we talk about BC’s “Forestry Industry” or Saskatchewan’s “Agriculture” for a while instead???
commented 2015-08-08 08:59:52 -0400
That is it in a nutshell Maurice, and hopefully this nonsense will pass and logic will prevail, but the balance is tipped. The momentum is strong. Depending on the outcome of our upcoming election, and the one in the U.S. next year, we will have a chance of turning this thing around or not.