Are multi-laterals the next big thing in oil? Saskatchewan bets heavy on it with new incentive program. This is the largest change in oil royalties in decades, as the government hopes to incentivize activity and production. It’s a big shift for a government that for its entire 16 years in office said it wasn’t touching a thing when it comes to royalties.
Let me put this into perspective – for the several years Bill Boyd was energy minister, he always gave the same speech, which basically went like this: “The premier has told me to say thank you. Thank you for the jobs, thank you for the taxes, thank you for the royalties and investment. And we’re not touching a thing when it comes to royalties.”
Usually whenever someone mentions royalty changes, it’s with the intention of raising them. This is the opposite, providing a royalty incentive – NOT a holiday – to get more activity and production going.