January 29, 2016

A new oil royalty framework announced for Alberta appears to provide a model that will keep the province competitive, help attract new investment and provide certainty for a struggling energy industry.

Alberta’s energy sector provides jobs for over 150,000 Canadians and contributes billions of dollars to help pay for essential government services.

The recommendations by Alberta’s Royalty Review Advisory Panel are very much in keeping with the Edmonton Chamber of Commerce’s submission to the panel.

“We asked the Government to focus less on royalty rates and more on rates of return for the industry,” says Chamber President & CEO Janet Riopel. “We’re glad to see that the government will study ways to expand Alberta’s petrochemical sector.”

The Edmonton Chamber urged the Government to look at the broader issues that hinder capital investment.

Royalty rates are only one factor that resource companies consider when deciding where to deploy capital. Cost of extraction, the regulatory environment, market access, carbon pricing, tax rates and labour costs all have an impact on the rate-of-return that resource-based companies can expect from their investment.

“The energy industry is the engine of the Alberta economy,” says Riopel. “It was vital that this royalty review maintain confidence for both the industry and investors in order to help drive the province’s economic recovery. We would like to thank the Panel for its efforts, especially panel chair Dave Mowat.”

The Chamber is optimistic that today’s announcement will provide certainty for the industry moving forward. We look forward to further collaboration to ensure the oil and gas sector is competitive and continues to create jobs for Albertans and Canadians.

Media Inquiries:

Jim Macdonald
Communications & Outreach Coordinator