This is my favourite article that has appeared since the release of “Our Fair Share.” The CattleNetwork in an article Alberta Angles For a Bigger Share of Oil Receipts as Futures Soar referred to the Canadian system of government as highly decentralized.

The CattleNetwork wrote:

Alberta isn’t the only province hiking taxes in Canada, whose system of government is highly decentralized. Only last month, Newfoundland and Labrador Premier Danny Williams - dubbed “Danny Chavez” - succeeded in imposing such a “super-royalty” linked to oil prices on the Hebron offshore oil project. This Chevron Corp.-led (CVX) venture halted talks with the provincial government for more than a year because the companies didn’t want to pay the tax.

The CattleNetwork then immediately moved on to the situation in Venezuela stating:

Under President Hugo Chavez, Venezuela has strengthened its grip on oil resources, most recently telling foreign oil companies they must cede some ownership and operational control of the Orinoco heavy oil properties to the state oil company. In response, ExxonMobil and ConocoPhillips (COP) abandoned their projects.

Again, the American media shows its ignorance of foreign countries. When you take into account that each province controls its own resources, the reality is that the management of resources is highly centralized. There is a difference between the approach in Venezuela where the state has demanded that the oil companies surrender ownership in its projects and Alberta which claims it should be fairly compensated for the resources it owns. At least the article was entertaining.