Energy investment gets a boost from royalty reductions
Posted May 28, 2010 7:31 am.
This article is more than 5 years old.
Oil and gas investment in Alberta is expected to increase by as much as $3-billion dollars next year, following new changes to the provinces royalty regime.
The Canadian Association of Petroleum Producers estimates that for every dollar the energy sector invests in Alberta, three dollars is generated in economic activity.
Peter Linder with Delta One Capital tells 660News the province has finally realized that it needed to improve it’s oil and gas exploration competitiveness.
Linder says the changes to the royalty rates should boost drilling activity as early as this fall especially when it comes to shale gas, coal bed methane and horizontal oil and gas plays.
Goverment revenues are expected to take a hit falling by as much as $1.5-billion over the next three years, but the financial blow should be soften by increased land sales, tax revenue and increased energy patch activity.
