TORONTO — The oil industry is under assault globally by nations and even provinces that want Exxon Mobil, Chevron, Suncor and other companies to cough up more royalties they can use to address such issues as poverty and education.
First it was Venezuela. Now, Nigeria is reviewing its relationships with international oil companies, and the oil-rich Canadian province of Alberta is set to announce a decision today on increasing royalties from the energy industry. It’s a move the industry warns could devastate Alberta’s oil patch.
Venezuela raised royalty and tax rates on foreign oil companies, then later took majority control of all oil projects as part of a larger nationalization drive of “strategic” economic sectors.
Russia and Bolivia have also asserted greater state control over their oil or natural gas assets in recent years.
A report by Alberta’s provincial panel says royalties have not kept pace with world energy markets – “Albertans do not receive their fair share from energy development.”
