Brokerage says oil royalty boost could cut 19,100 jobs

Royalty Review Could Cut nearly 20,000 Jobs

Oct 11, 2007 04:30 AM

Alberta, the source of about 10 per cent of U.S. oil supplies, may lose about 19,100 jobs if the government imposes higher royalties, says Calgary-based brokerage FirstEnergy Capital Corp.
About 11,000 jobs related to the oil-sands industry and 8,100 from oil and natural-gas drilling could be eliminated if the province adopts a panel's recommendations to boost royalties and implement a new tar-sands tax, the brokerage said yesterday in a research report.

Alberta, the source of about 10 per cent of U.S. oil supplies, may lose about 19,100 jobs if the government imposes higher royalties, says Calgary-based brokerage FirstEnergy Capital Corp.
About 11,000 jobs related to the oil-sands industry and 8,100 from oil and natural-gas drilling could be eliminated if the province adopts a panel's recommendations to boost royalties and implement a new tar-sands tax, the brokerage said yesterday in a research report.

Canadian Natural Resources Ltd. of Calgary warned on Tuesday it may cancel oil-sands projects worth $7 billion because of changes proposed last month by the panel. Also warning of reduced spending in Alberta are producers EnCana Corp., Talisman Energy Inc. and ConocoPhillips's Canadian unit.

Higher royalties may prompt the cancellation of $28 billion in oil-sands projects from 2008 to 2015, the brokerage said, resulting in the loss of an estimated 11,000 direct and indirect jobs, while reduced drilling would eliminate about 8,100 jobs on oil rigs.