The truth, the whole truth, and nothing but the truth
The release moved late Wednesday afternoon, just in time for the evening news.
On the basis of the last land sale of the year, Alberta – according to an official government release – had set a record for oil and gas land sale revenue in 2010 of nearly $2.4 billion, surpassing the previous record of $1.83 billion set in 2005. As well, the release said, 2010 had established a new marker for average bids – the July 7 sale netted an average bid of $2,185.03 per hectare, exceeding the previous record of $2,084.86 per hectare. That Canadian Press bungled this little nugget into a representation that $2,185 was the annual average bid isn’t the government’s fault, I guess, but it’s an example of what can happen when you start trying to spin statistics to meet some political recipe.
What the government didn’t include in its release – for reasons I’m still not clear on – were revenues derived through the year from the sale of oilsands rights.
Those revenues have been relatively weak this year, were virtually non-existent last year, but in years previous were a key reason why the government was able to report budget surpluses. In 1985, for example, including oilsands rights revenue pushed the total take for the government to nearly $2.3 billion, while the following year, all-in revenue from land sales – conventional oil and gas and oilsands – reached $3.43 billion. That is the TRUE record year for oil and gas land sale revenues for the province, and why the government chose to ignore the TRUE record is a little baffling.
Certainly, reaching $2.39 billion does sound pretty good, but it’s a mis-represented record. If the government wanted to trumpet anything, it might have been better served to compare this year’s total – $2.41 billion, including oilsands – to last year’s paltry $741 million. That, I maintain, would certainly be of more interest to investors, and taxpayers, than the “phantom” record touted by the government.
The release moved late Wednesday afternoon, just in time for the evening news.
On the basis of the last land sale of the year, Alberta – according to an official government release – had set a record for oil and gas land sale revenue in 2010 of nearly $2.4 billion, surpassing the previous record of $1.83 billion set in 2005. As well, the release said, 2010 had established a new marker for average bids – the July 7 sale netted an average bid of $2,185.03 per hectare, exceeding the previous record of $2,084.86 per hectare. That Canadian Press bungled this little nugget into a representation that $2,185 was the annual average bid isn’t the government’s fault, I guess, but it’s an example of what can happen when you start trying to spin statistics to meet some political recipe.
What the government didn’t include in its release – for reasons I’m still not clear on – were revenues derived through the year from the sale of oilsands rights.
Those revenues have been relatively weak this year, were virtually non-existent last year, but in years previous were a key reason why the government was able to report budget surpluses. In 1985, for example, including oilsands rights revenue pushed the total take for the government to nearly $2.3 billion, while the following year, all-in revenue from land sales – conventional oil and gas and oilsands – reached $3.43 billion. That is the TRUE record year for oil and gas land sale revenues for the province, and why the government chose to ignore the TRUE record is a little baffling.
Certainly, reaching $2.39 billion does sound pretty good, but it’s a mis-represented record. If the government wanted to trumpet anything, it might have been better served to compare this year’s total – $2.41 billion, including oilsands – to last year’s paltry $741 million. That, I maintain, would certainly be of more interest to investors, and taxpayers, than the “phantom” record touted by the government.
