The Canadian Association of Petroleum Producers has put forward a four point plan that it would like to see included as part of Alberta’s royalty review.
Minister Marg Macuaig-Boyd announced today that ATB Financial’s Dave Mowat will lead a panel for the review.
“An appropriate royalty structure attracts investment, creates jobs, generates government revenue and builds Alberta communities,” said Tim McMillan, President of CAPP. “The current royalty structure, put in place just five years ago, has helped achieve those goals by being responsive to the ups and downs in the industry and that’s been good for Alberta and Albertans.”
CAPP wants to see a government commitment to a vibrant and competitive oil and gas industry, along with confirmation any royalty changes will be forward looking. It also wants the review to be stable and predictable to minimize uncertainty and maximize investment in Alberta, and consider royalty changes in the context of all the mounting costs from new government policies such as climate change and corporate taxes.
“We are pleased to see the Minister of Energy commit to looking at all factors affecting our energy industry,” McMillan said. “The cost of new government policies is adding to the growing concern about the future competitiveness of our industry.”
McMillan says that new climate change rules and the increase in corporate taxes has already potentially added $800 million to industry costs over the next two years.
