Connacher Oil & Gas Ltd CLLZF

Royalty excuse for Last years cutbacks in Oil

[watch4it]

Royalty issue is just a scapegoat for the Oil companies especially from the US to justify thier cutback in exploration and developement in Alberta. These cutbacks started over a year ago. They had no intention of investing any more than they had to for the next few years. Royalty issue is a great way of making Albertans mad at someone other than the Oil companies for the unemployment and losses of income. Oil companies from the States did this even before the dollar was nearing par. It is profit taking time and reinvest in areas where labor costs are cheaper. These areas have higher Royalty programs then Alberta...Don't be fooled. The object of the game is to force smaller business out so that the prices will come down in a few years. This will see the companies reinvest a bit more to fill the needs as the prices rise in the countries they have gone to invest in as well. The Oil patch cycle. Boom and Bust... Don't blame the Government...blame the US Oil companies and make them pay to remove profits from the country. Same thing happened in the late 70's and early 80's. Support 100% owned companies like CLL. Keep the profits in Canada. Reinvest in other countries as well to bring profits home to Canada.