Sayonara, Mr. Stelmach

To everyone's surprise Premier Ed Stelmach announced that he will be stepping down and leaving politics completely this year. Whether you think Mr. Stelmach's departure was premature or long overdue, the bigger debate that lies ahead is finding a capable replacement. Frankly I don't see any candidates emerging that could confidently coax my vote, yet. 



But alas, it is still early as he only made his statement on the 26th. There is still time for a fresh, new candidate to step forward and bring forth new ideas. What Stelmach's sudden departure will initially do is put a chill in the air when it comes to doing business in Alberta and the energy sector, as uncertainty often does. 



In my opinion, if the political rumours are to be believed, a leader who elects to depart before completing his term is admitting weakness and inability in controlling his party as well as governing his province. It is ignoble to bow out, to cop out, due to a lack of competence. It absolutely must be an incredibly difficult job to do, but one in which the challenges should have been weighed prior to enlisting for. At the end of the day, pulling out early without a succession plan in place ultimately shows a level of ignorance and apathy over what is best for Alberta. Of course without ever being in Ed Stelmach's skin I can't truly say for certain.



What I'd like so see in the new Premier is someone with the confidence and ability to lead, the business acumen to promote, develop and guide the Oil Sands to years of success and the financial savvy to build up Alberta's economic diversity while maintaining and striving for a high standard of living.



I am optimistic for what this change will bring. I think that Premier Stelmach's heart may have been in the right place. He has made great contributions. Moving forward we must choose a leader with heart, soul, brawn and brains to get us to the next level.

What are your thoughts? There are some polarized opinions and funny insights - like here, here and here. This Calgary Herald Gallery is a good example of the range of reactions.

I appreciate all your calls and emails. I'm looking forward to helping you with your next step towards building real wealth. 

Your success continues TODAY, let me help you build upon it.



"Nobody can go back and start a new beginning, but anyone can start today and make a new ending." -Maria Robinson 

Warm

Regards,


Todd and Danielle Millar

Stelmach is stepping down

Premier Ed Stelmach will not lead his party in the next election. It comes as a shock and will certainly bring about a leadership race in the future. A quick look at the comments on any newsite shows that people are very polarized about his decision to quit. Examples here and here

Royalties - Doom And Gloom or...?

I would be off my game if I didn't at least mention the very important, some would say shocking, announcement Ed Stelmach made announcing that, yes, Alberta will increase oil sands royalties by January 1, 2009.



The increases mean that the money Alberta collects from the energy business could be a staggering 20% higher than the original forecast for 2010, which would equate to a $1.4-billion increase into the province's treasury.

What started it all?

A report by Alberta's provincial panel said royalties had not kept pace with world energy markets, that all projects in the booming oil rich region should be paying more.

"Albertans do not receive their fair share from energy development."

"The energy industry has been a phenomenal driver," "It not only affects Alberta ... It's going to set the direction for where this industry goes and where Alberta goes the next five to 10 years." Greg Stringham, vice president of the Canadian Association of Petroleum Producers

Alberta has been negatively compared to Venezuela where President Hugo Chavez ran out foreign oil companies first by incredible royalty increases followed by nationalization.

Many oil companies have threatened to stop and or delay future work in Alberta if the panels recommendations were followed to a tee. However, they may have already taken the increase in royalties into account as this is not a new phenomena but something that has been happening in all oil rich countries over the past 5 years.

"Our first reaction to the Alberta government's recent royalty review panel report was that it was authored by a visiting delegation of Venezuelans," Deutsche Bank North America analyst Paul Sankey

However, Ed Stelmach is generally seen as being modest on the panel's recommendations and perhaps he has come to a decision that is both balanced and fair for our province.

Though there may be some layoffs in the oil sands there is still enough boom out there that in a year this will all be forgotten. Only time will tell how much of an impact this will have for the oil companies and exactly what there reaction will be.

"We will adjust to any royalty changes and we can do so with the confidence that we have an array of very good investment opportunities that will allow us to continue adding shareholder value over time," Petro Canada CEO Ron Brenneman

Some Articles of Interest:

A Quagmire in Alberta over Royalties - Interview with Dr. Brownsey a political science professor at Calgary's Mount Royal College

Alberta increases royalties charged to energy companies- "We recognize energy is a volatile industry. There is risk and there is reward. So when oil prices go up, the royalty goes up,"Ed Stelmach

Is Alberta out of step with the world? -"You would think from the anguished cries of the oil companies that the Alberta government's decision to increase royalties was a bolt from the blue. Far from it."