Our oil royalties are down ! 🤧

Cry me a river.   But don't be asking Canadian taxpayers to top up your 'losses'.
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CBC News · Posted: Jul 06, 2020


First Nations losing oil revenue amid fall in consumption, drilling

'More money is being spent than what we are realizing,' chief says

In a windswept corner of the Blood Tribe land in southwest Alberta is a pumpjack that towers more than three storeys off the ground and reaches three kilometres deep. It's one of only two new wells to be drilled on the First Nation in the last year, as the downturn in the industry has resulted in reduced drilling across Western Canada.

The well was drilled in December and began operating in February, less than one month before oil prices crashed further as the pandemic spread across the globe. Fuel consumption has fallen sharply as countries continue to react to the virus, while oil production remains relatively high around the globe.

For First Nations that rely on collecting royalties and rent from oilpatch activity on their reserve land, those funds have quickly dried up. In fact, it's becoming costlier to manage oil and gas production on First Nations land than the amount of money collected from industry.

Indian Oil and Gas Canada (IOGC) is the federal agency, fully funded by Ottawa,
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responsible for overseeing oil and gas production on those lands and has a monthly budget of about $1 million.  In May, when the most recent data is available, the agency only collected about $740,000.

"It doesn't make sense," said Chief Roy Fox, with the Blood Tribe. "More money is being spent than what we are realizing."

Fox is keenly aware of the financial situation in the oilpatch, considering there are about 300 oil and gas wells on Blood Tribe land, and the First Nation has a working interest in some of them. Compared to the beginning of the year, revenue from oil and gas activity is down 75 per cent, according to Fox.
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The Indian Resource Council, which represents First Nations with oil and gas reserves on their territory, is calling on the federal government to top up the royalties to a minimum of $4 million per month.

"These are really troubling times," said Stephen Buffalo, the group's president. "It's very important at this time that our prime minister really look at our communities to see if we can do something extra on the side to offset what has been lost."

The council has also asked for a special allotment of the funds earmarked for cleaning up oil oil and gas wells in Western Canada.

Revenues for First Nations have fallen by about 80 per cent in the last decade as commodity prices have fallen.

The declines "are likely to continue," said Strater Crowfoot, CEO of the IOGC, in an emailed statement.
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Sounds like a bad investment - the oil industry.  What the hell is the Canadian government doing, using our tax dollars to support aboriginal oil drilling?

What we need is a civilian body overseeing shit like this in our government tax spending.  "Doing something extra on the side" is the last thing most Canadian taxpayers would want to see done.