Following are three slides from a presentation by Memorial University economist Dr. Wade Locke tackling the question of whether or not the province is getting its "fair share" from oil and gas revenues.
The entire presentation and an article based on the slides can be found at links here.
Figure 1, above, compares the government "take" across several jurisdictions. Locke defines the government "take" as government revenues divided by net cash flows.
Figure 2, above, shows the change in government "take" as oil prices increase per barrel. Note where Newfoundland and Labrador falls in relations to the other jurisdictions, including Alberta.
Figure 3, above, compares net cash flows among the two orders of governments and the companies.Reading the article and follow the slides one gets a very different impression than the one left by the provincial government on what is involved in the issue of offshore revenues and the provincial government's "fair share".
For example, as noted last year, Premier Danny Williams told the House of Assembly that the 4.9% equity position in Hebron was worth about $1.5 billion over the life of the project, compared to the estimated revenue to the treasury of $8.0 to $10.0 billion over the life of the project.
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