Calgary – The oil and gas industry has accepted a post-election invitation from incoming Alberta NDP premier Rachel Notley to work with business leaders and unions in the best interests of the province.
The Canadian Association of Petroleum Producers (CAPP) has announced that they will form an industry group to work with Notley and her team on priorities to protect and grow jobs and investment in the province and in Canada.
“Albertans voted for change and we are prepared to work with the new government to explore and embrace the best change possible,” said CAPP president Tim McMillan in a news release on May 14.
The NDP won 53 of the province’s 87 seats in the May 5 election with a party platform of increasing corporate taxes by two percent and reviewing oil and gas royalty rates.
The defeated PCs that won just 10 seats and the official Opposition Wildrose party with 21 seats said in their campaign they would do neither.
Notley has confirmed that a review of royalty rates for oil and gas producers will take place during the party’s current term in office in collaboration with industry leaders and stakeholders.
McMillan said the industry and the government share a common interest in the industry’s success.
“The best way to protect jobs and investment is through improved market access – building new pipeline, rail and marine transportation infrastructure – while maintaining a strong fiscal regime that allows the industry to compete in the global market,” he said.
“Improved market access and fiscal strength will allow Canada to reap the benefits of helping meet global energy needs through safe, responsible development and delivery of its natural resources.
“With a 50 per cent drop in global oil prices since last summer, these are challenging times and Canadians across the country are feeling the impacts of reduced oil and gas industry activity.”
Oil and gas industry capital investment is forecast to be down $23 billion in 2015.
To date, companies have announced more than 4,500 layoffs, with an additional 23,000 jobs lost as a result of lower drilling activity.
“To grow the oil and gas industry – creating more jobs and increasing public revenues to improve our quality of life – we must continue to keep Alberta and all of Canada attractive for oil and gas investment,” McMillan said.
