Alberta's voters sent a strong message on May 5 when they ended decades of Conservative rule and elected Rachel Notley, the New Democratic Party's candidate, as their new premier in a special election. One immediate question was what impacts this would have on the province's oil and gas industry.
During her campaign, for example, Notley reportedly questioned support for the proposed Keystone XL crude oil pipeline project. Her platform proposed tax credits for job creators, "and to rebalance our tax and royalty system to reward processing and adding value to our resources."
In her election night victory address, however, she sounded more conciliatory. "In this province, we're optimistic, forward-looking, entrepreneurial, community-minded, and careful with the family budget," she said. "That's the kind of government we'll try to be."
Notley maintained, "To Alberta's job creators, great and small-in the energy sector and in every sector-our government will be a good partner with you to grow our economy and to secure a more prosperous future for every Albertan in every community."
She said, "Together, we need to start down the road to a diversified and resilient economy, to end the boom and bust roller coaster ride we've been on for far too long."
Alberta's oil and gas community generally emphasized its willingness to try and work with the new administration in the days following the election. CBC News reported that Encana Corp. Chief Executive Officer Douglas J. Suttles said the core of his brief post-election conversation with Notley was "let's make sure we talk as you consider alternatives, and if we can [offer] support in any way with information or insights, we are happy to provide that."
"I've got to believe her biggest challenge at the moment is putting her government together, and it's a bit early to be speculating on policy changes," Suttles said.
Royalty review issue
Notley's call for a royalty review raised industry concerns leading up to the election, however. "Canada's oil and gas industry competes for investment, labor, and capital in an increasingly globalized world," Canadian Association of Petroleum Producers Pres. Tim McMillan said in an Apr. 30 commentary. "With that in mind, now is not the time for a review of oil and natural gas royalties."
He noted that when Alberta conducted its last royalty review in March 2010, it considered the role of the province's fiscal regime, the regulatory framework, technology and innovation, and the overall business climate.
It also led to a shrinking of jobs and capital investment, McMillan said. "Another royalty review now could destabilize jobs further at the very time when Alberta families depend on them most," he warned.
