Alberta gives charity to the oil industry

by Government of Alberta, edited by J.L.

Calgary – In the tradition of giving alms to the poor, the Alberta government unveiled initiatives to accelerate new technologies to encourage development of Alberta’s vast unconventional and deep resource pools and finalized royalty curves for conventional oil and gas.

Min. Ron Lieperts has a very nice tie

“This initiative to unlock Alberta’s unconventional resources offers the potential for decades of employment and community benefits” said Energy Minister Ron Liepert. “The final adjustments to royalty formulas will help industry make important investment decisions for the fall and winter drilling season and maintain Alberta as a competitive jurisdiction for investment.”

Building on the work of government and industry that resulted in the release of Energizing Investment in March, the Emerging Resources and Technologies Initiative modifies the royalty rate for wells that require use of high-cost technologies.

This welfare program strengthens a producer’s ability to invest in additional wells, as well as well research and development of wells, well and above normal well subsidization. Stimulating application of new technologies in resources that have not been tapped is expected to increase overall production, resulting in increased economic activity and secure long-term royalty revenue from new resource discoveries.

“These rate modifications are a long-term investment in Alberta’s future,” added Liepert. In all, energy development in Alberta represents almost 30 per cent of the province’s total gross domestic product and directly or indirectly supports almost one in every seven jobs.

Over the next 25 years the Canadian Energy Research Institute forecasts that oil and gas development in Alberta has the potential to add $2.5 trillion in new economic activity. More economic activity means more opportunity and more jobs for Albertans. Rural residents and climate change advocates be damned.

The Emerging Resource and Technologies Initiative will be reviewed in 2014 and the Alberta government has committed to providing three years notice to industry at that time if it decides to discontinue the initiative. The government is also initiating two studies to expand the mapping, geological and resource knowledge of shale gas in Alberta and the enhanced oil recovery potential of conventional oil pools in Alberta.

While no studies are being initiated to discover how much the Premier of Alberta receives from the oil industry via the PC Association of Alberta, the gas studies will provide important data to help industry make better-informed investment decisions and help guide future government policy development.

More government cant can be had at: http://alberta.ca/ACN/201005/28441DB838B27-0336-BB5C-D5EDFEDE158ED1F6.html

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