EDMONTON - Competing sides nearly came to blows Wednesday outside the Alberta legislature as 700 energy workers rallied against the prospect of higher royalties while smaller groups denounced the energy industry as greedy and manipulative.
Many of the energy workers were handed colourful hardhats, pink for the women, and prefabricated signs paid for by a Calgary-based energy firm.
Rallies outside the legislature are often boisterous, sometimes even violent. But this crowd was almost wooden, showing little emotion and standing quietly for nearly an hour as various politicians and organizers read their speeches.
Mark Ogilvie, a rig worker with Nabors Drilling, admitted he hadn't read the report of a government-commissioned panel that said Alberta should be taking in $2 billion more in royalties annually. But he attended the rally after hearing from co-workers that higher royalties would hurt his job prospects.
"The general consensus is that this isn't good for us,'' Ogilvie said. "I've listened to the people around me and my peers to get me where I am now and believe them.
"I don't want to lose my job. I have a house. I have a family, and I need them both.''
As the rally ended, several groups on the sidelines began aiming loud insults at energy companies that are fighting against higher royalties. It caused a few ugly shouting matches, and police on mountain bikes moved closer but made no arrests.
"It's very unfortunate, but I think that all of these workers here are being manipulated and lied to by the oil companies,'' said Alex Smith, who carried a banner that read "Stelmach: Call their bluff!''
"I don't think any of their jobs are in danger and I don't think investment in Alberta is in danger. I think basically it's a scare tactic being used by the oil companies.''
Some of the energy industry workers likened the prospect of a $2-billion boost in royalties to the much-hated national energy program that rocked Alberta's economy in the 1970s.
"Last time this happened, it hurt everybody,'' said Rick Vanee of Calgary-based Ensign Energy Services. "Now (if) they put the brakes back on again, there's hardly any rigs running.''
Vanee said he'd like to see Alberta Premier Ed Stelmach call an election on the royalty issue.
Stelmach campaigned for the Tory leadership last fall on a platform that included a promise of a royalty review. The panel he selected is now recommending royalty changes that would reduce payments for low production wells, but increase those for big operations, especially the booming oilsands projects in northern Alberta.
Energy firms and investment groups have attacked the report, saying the recommended increases would kill billions worth of investment and thousands of jobs in Alberta.
"We take issue with the panel's proposals that would hit the largest revenue generating wells so hard that it makes future exploration initiatives uneconomic,'' says an analysis released this week by Tristone Capital Inc., an investment bank that serves the oil and gas industry.
"We believe that the government should try to make Alberta more competitive, not less, when it comes to royalties on high-productivity wells.''
Alberta's auditor general recently reported that the province has hidden internal reports since 2004 that say annual royalties could be increased by at least $1 billion without hurting the energy sector's competitiveness.
The Alberta Federation of Labour planned a rally in support of higher royalties for Thursday in Fort McMurray, the heart of the oilsands. Federation president Gil McGowan said it's for those who believe Albertans deserve a larger share of their energy resources.
"We were frankly offended that a bunch of oil employers are claiming to speak on behalf of rank-and-file oilpatch workers,'' said McGowan. "They don't speak for us, so that's why we organized the rally.''
Members of the review panel have also been reacting to the energy industry's attacks on their work. Panel chairman Bill Hunter said last week that he was disappointed the energy sector had not taken "the high road.''
Pedro Van Meurs, an international royalty expert who was hired by the Alberta government to advise the review panel, also wrote a biting commentary that appeared in newspapers Wednesday.
"The question is will Premier Ed Stelmach have the vision to create a sustainable future for Alberta oilsands and accept a substantive bitumen tax?'' wrote Van Meurs.
"Or will he cave in to the unjustified threats of the oil industry and accept a proposal similar to the one developed by the petroleum industry through Tristone Capital?''
