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

Avalanche Canada issues special public warning

Very weak layer buried under recent snow a cause for concern

From the Hill: The millstone of a cannabis conviction

Richard Cannings writes about records expungement for cannabis convictions

Tips for avoiding Canada Revenue Agency scams

Grand Forks RCMP are asking residents to be vigilant.

Grand Forks celebrates the holidays with Santa Claus parade, light up

The Christmas tradition was a hit on Friday night.

RDKB receives funding for disaster response ‘work space’ in Midway

The work space and storage will be used by disaster response volunteers.

VIDEO: Ex-NASA engineer pranks mail thieves with glitter bomb trap

Package thefts are common this time of year, but YouTuber Mark Rober used his engineering skills

Canadian detained in China, not clear if related to two other detentions

Reports suggest the person is not a diplomat or entrepreneur doing business in China.

Trudeau sees 2019 election as choice between positive Liberals, divisive Tories

Trudeau is drawing much the same battle lines that propelled the Liberals to a come-from-behind victory in 2015

Snowfall warning issued for Coquihalla, Highway 3

Make sure to equip winter tires if travelling

Lightning top Canucks 5-2 in feisty battle

NHL’s No. 1 team too much for Vancouver

FortisBC says you can return to normal gas use following pipeline fire

Utility says increased pipeline capacity, warmer weather have allowed supply to reach normal levels

CSIS collected info on peaceful groups, but only in pursuit of threats: watchdog

Security Intelligence Review Committee says fears unjustified after reviewing evidence, testimony

Canada ranks 16th on annual gender gap list

This is the second year Canada has placed 16th in the World Economic Forum’s list

VIDEO: Tornado rips through city west of Seattle

Reports indicate five to seven homes damaged in Port Orchard, Wash.

Most Read