Reactions immediately after the budget ranged from fury, to a feeling of being misunderstood and went on to include the odd smug comment that companies which would qualify as Canadian owned would probably survive pretty well under its provisions.
However, all parties agreed that the Liberal government has brilliantly out maneuvered Peter LOUGHEED'S administration He (Lougheed) has all he ever had. He started off with 45% of revenues and he now has 43% said BOB BRAWN, president of TURBO RESOURCES LIMITED. "On the other hand, if Lougheed wants to keep the oil industry working in Alberta he will have to surrender some of his income to make up theirs. The budget has upped the federal slice of the oil and gas revenue pie from 10% to 24%, while cutting about 12% off the industry's share.
For very few could match MERV LEITCH, Alberta's Energy Minster, He called the budget a massive and discriminate attack. It really means that the people of Alberta are being asked to sell their resource at well below 50%, of their value.
The feeling that eastern control over the oil industry has increased and increased in a less understanding way was prevalent at a Chamber of Commerce press conference following the budget. Its taxation without representation fumed DAVID DAHL, claiming that the western sedimentary basin will see a marked decline in drilling activity.
But for companies which can squeeze under the Canadian control requirements - and these aren't at all clearly defined in the Federal Government's publications to date - the news doesn't t seem too bad. Brawn is cautious about making a definitive analysis of the budget. It 's so complex that we will have to wait on studies. But I believe the Canadian-owned companies will not fare so badly under the provisions.
BOB LA MOND of CZAR pointed to a producer netback to $24.58 ass estimated by the federal government for 1990. "We already get about $35 (Can) in the States for the oil we find there. Therefore, you can't really say that the Canadian exploration scene is competitive when it is compared with the U.S., he said. The program cites netbacks of $7.20/bbl for oil in 1981 and $8.62 in 1983.