The Canadian Association of Petroleum Producers proposes that the Alberta government and oil and gas industry create a committee to streamline regulation and revitalize investment.
The Sustainable Prosperity Steering Committee, CAPP says in a new report, would “find solutions that bring back investment, enhance competitiveness and regulatory timelines, address uncertainty caused by federal initiatives, and ultimately create jobs for Albertans.”
The goal “would be to create a policy and regulatory system that is the most efficient among comparable jurisdictions, which would ultimately make Alberta a more attractive place for industry investment.”
According to the report, 40-50 policy and regulatory initiatives of the provincial and federal governments “have the potential to adversely impact the industry.” At the same time, the US is easing regulation.
The report notes that capital expenditure in conventional upstream projects is recovering more slowly in Alberta than in the US and that unconventional investment will fall again this year.
To a base compliance cost estimated at $3.6 billion/year (Can.), new policies and regulations soon could add $450-760 million/year on conventional and unconventional development in Alberta, the report says.
When the province’s carbon tax is implemented on natural gas produced and consumed on site by conventional oil and gas producers, the cost increase could rise to $1.1-2.1 billion/year by 2023.
The committee CAPP proposes would include senior representatives of the industry and provincial government and rely on “political engagement with the federal government to ensure streamlined policies and address uncertainty caused by federal initiatives that directly impact the competitive position of Alberta.”
