CALGARY, Oct. 30 /CNW/ -
What: On October 25, 2007, Alberta announced the framework for a new oil
and gas royalty regime.
On balance, the overall royalties that most oil and gas producers
will pay appear to be going up; a projected increase of
approximately $1.4 billion in 2010. Despite record high oil
prices, natural gas prices are too low to generate reasonable
returns for many projects- and oil and gas producers will take a
cautious approach to the winter drilling period. The royalty
review process has created significant uncertainty- in the midst
of budget time for most industry participants.
How: Oil and gas executives will be challenged to maintain
profitability with higher royalties. A disciplined focus on
achieving operational excellence in both capital and operating
programs will be the most effective strategy to enhance and
maintain financial performance.
Who: Improving financial performance in a rapidly changing business
environment can be a daunting task. Ernst & Young's Calgary
Managing Partner Barry Munro can speak more about the implications
of the new Royalty regime and the steps companies operating in the
Oil and Gas Industry in Alberta must take to remain profitable and
to continue to be an attractive investment opportunity globally.
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