Oil by rail has been climbing steadily in Western Canada as pipeline restrictions continue. (National Energy Board)

B.C., Alberta drop in oil and gas investment ranking

Global survey puts nine U.S. states in top 10

Western Canada’s pipeline struggles, regulations and taxes have dropped Alberta and B.C. down in an international survey of petroleum executives rating their attractiveness as a place to invest.

B.C. was the lowest ranked Canadian province in the survey, 58th out of 80 in the “policy perception index” of the survey, as 80 per cent of respondents “cited the high costs of regulatory compliance in B.C., and 81 per cent cited political instability in the province as deterrents to investment,” according to the 2018 Global Petroleum Survey released Thursday by the Fraser Institute.

Alberta ranked 43rd in this year’s survey, a decline from 14th world-wide in 2014. Nearly 60 per cent of executives cited Alberta’s high taxes, and more than 70 per cent were concerned about Alberta’s high cost of regulatory compliance.

RELATED: Alberta buying rail cars to move stranded oil

“Investors are saying very clearly they prefer the competitive taxes and regulatory regimes of the energy-producing American states over Canadian jurisdictions,” said Ashley Stedman, co-author of the survey.

Stedman said the 2018 survey was completed before LNG Canada green-lighted its $40 billion liquefied natural gas export project and pipeline from northeast B.C. to Kitimat. Prime Minister Justin Trudeau, whose government has taken over ownership of the Trans Mountain oil pipeline from Alberta to B.C., has touted the LNG Canada project as the biggest private sector investment in Canadian history.

The B.C. government has waged a public and legal battle against the Trans Mountain expansion since the NDP and B.C. Greens formed a minority government last year.

The survey reflects the U.S. ascent to one of the largest petroleum exporting countries in the world, including LNG production as well as crude oil, as American-based foundations target protests on Alberta oilsands and pipeline projects.

Nine out of 10 of the top jurisdictions for investment appeal are U.S. states, including Texas, Oklahoma, Kansas, Wyoming, North Dakota, Alabama, Montana and Louisiana.

U.S. President Donald Trump has cut business taxes to erase Canada’s previous advantage, pushing Ottawa to increase its tax breaks to compete for investment.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

UPDATE: Propane leak cause of three hour power outage in downtown Revelstoke

Nearly 900 FortisBC customers are being impacted by the leak

Boil water notice lifted for some residents on the west side of Okanagan Lake

Two-hundred and seventy property owners in the Westshoe Estates Subdivision can now safely drink their water again

Morrison wins Kootenay-Columbia for Conservative Party

Unofficial results peg 28,495 votes for Morrison with 98 per cent of polls reporting Monday evening

NDP supporters watch election results in Revelstoke

Revelstokians that worked on the NDP compaign gathered last night

UPDATE: Morrison wins Kootenay-Columbia by more than 7,000 votes

Elections Canada is reporting a 72% voter turnout

Scheer says Canada more divided than ever, as NDP and Bloc hold cards close

While Liberals were shut out of two key prairie provinces, they took two-thirds of the seats in Ontario

Horvat’s hat trick lifts Canucks to 5-2 win over Red Wings

First career three-goal game for Vancouver captain

Saanich Gulf-Islands’s Elizabeth May coy about leadership plans

The federal Green party leader talks possibility of running as MP without being leader

Hundreds attend first annual climate and food conference in Kelowna

Over 25 industry experts spoke at the two-day event

Estheticians can’t be forced to wax male genitals, B.C. tribunal rules

Langley transgender woman Jessica Yaniv was ordered to pay three salon owners $2,000 each

Two youth arrested in UBC carjacking at gunpoint, after being spotted in stolen Kia

‘A great deal of credit is due the alert person who called us,’ said North Vancouver Sgt. Peter DeVries

South Okanagan man charged following armed standoff gets bail

Information on the proceedings is limited due to publication ban

People’s Party of Canada’s anti-immigration views ‘didn’t resonate’ with voters: prof

Party was formed on anti-immigration, climate denying views in 2018

Windstorm knocks out power for 10,000 in north and central B.C.

Power slowly being restored, BC Hydro says

Most Read