Another royalty review

So the US Bureau of Land Management is planning to review federal royalty policies, comparing their return to that of other countries. The results expected from the study contractor may have been telegraphed: The BLM expects the study may reveal a potential for greater revenues.

Not long ago we had a royalty review in Alberta after our premier suggested the review might offer a fairer share for Albertans. The result was a disaster. Oil and gas exploration, development, and land-sale expenditures fled to neighboring provinces.

Perhaps the BLM study should first determine what is best for the US economy: more jobs and increased indigenous production or higher royalty income and larger offshore crude purchases.

Vernon Larson
Calgary

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