UCP announces energy sector job creation plan

“It takes decades to earn a reputation as a good place to do business,” says Kenney. “With their ideological opposition to the development of our resources, the NDP lost Alberta’s good reputation in months, triggering a massive decline in exploration activity. By the Fraser Institute’s estimate, Alberta has nosedived on the NDP’s watch from 14 to 43 most desirable destination for upstream oil and Gas Gathering (OGG) investment.”

Kenney says a UCP government would:

Reform the Alberta Energy Regulator (AER), to speed up well approvals;
Guarantee in law that the royalty regime in place when a well is permitted, will remain in place for that project in perpetuity.
Intervene at all National Energy Board hearings that affect Alberta oil and gas interests.
Help get drilling rigs back in the field by streamlining regulations that hinder the industry;
Work with the industry to get a fair price for Alberta natural gas, including support for LNG infrastructure to the west coast, appointing an Associate Minister for Natural gas, and implementing the Kvisle Panel recommendations;
Encourage diversification by supporting growth of the petrochemical industry;
Speed up the reclamation of abandoned well-sites.
Facilitate Indigenous financial participation in resource projects and infrastructure.

“Getting investment back is critical,” adds Kenney. “That means no more questions about the predictability of royalties in Alberta, and meeting or beating other jurisdictions when it comes to the speed of approvals.”

Kenney claims despite hiring more staff, the performance of the AER has eroded under the NDP, with industry sources saying it now takes twice as long to get a well approved in Alberta as it does in Saskatchewan, and four times longer than it does in Texas.

“It is up to the AER to ensure that energy development proceeds in an efficient and environmentally responsible manner,” declares Kenney. “Our goal is to have the fastest approvals in North America, which means cutting AER timelines by at least 50 percent. And while we must preserve Alberta’s reputation as a world leader in developing resources responsibly, we must also restore our reputation with investors as a leader in predictable and efficient regulation.”

Kenney has pledged that within 180 days of coming to office, a UCP government would:

Complete a review of the AER to identify efficiencies in both the budget and regulations of the AER;
Establish clear benchmarks for approval times, and maintain a public dashboard of the AER’s key performance metrics;
Streamline and expedite the AER’s review processes to bring greater certainty and stability to Alberta’s investment climate.

“And to ensure that Alberta’s oil and gas interests are protected, a United Conservative government will consistently intervene in NEB hearings that affect our industry,” continues Kenney. “With dozens of foreign funded special interests opposing every energy project at the NEB, we need the voice of the government of Alberta telling the truth about how we produce energy with the highest standards on Earth.”

In addition, Kenney says lack of pipeline access is forcing natural gas producers to sell their product at discounts of as much as 70 per cent.

“Alberta is practically giving away this valuable resource that belongs to all Albertans,” exclaims Kenney. “A United Conservative government will implement a robust natural gas strategy so that our producers can create jobs for Albertans. Among other important measures, we shall appoint an Associate Minister and an Associate Deputy Minister for Natural Gas, and work with the natural gas industry to facilitate infrastructure for shipping Alberta gas to Asian markets through Liquified Natural Gas projects to the coast.”

Kenney points-out Alberta also has an opportunity to attract major private sector capital investment to leverage the province’s inexpensive feedstock into petrochemical diversification and upgrading.

“We will respect agreements made by the current government under the Petrochemical Diversification Program (PDP),” explains Kenney. “As an incentive to develop future projects, we are open to extending the PDP royalty tax credit model. We will also amend the Municipal Government Act to allow municipalities to offer targeted property tax breaks as incentives for petrochemical and other major capital investments.”

Finally, Kenney says there are a large number of suspended or inactive oil and gas wells and associated facilities in Alberta that have reached the end of their economic lives, with the inventory of suspended wells and facilities growing substantially.

As a result, Kenney announced that a UCP government would streamline the process for well and facility abandonment and environmental reclamation.

A UCP government would:

Work jointly with the AER and industry to overhaul the liability management framework in Alberta, ensuring liabilities are covered without unduly discouraging new investment.
Propose that the federal government provide tax incentives and financial support such as “green” flow-through shares for the abandonment and environmental reclamation of oil and gas wells and associated surface facilities.
Urge the federal government to establish alternative financial vehicles that focus on environmental reclamation in the oil and gas industry, such as adapting Qualifying Environmental Trusts (QET) to include well decommissioning costs.

Kenney concludes many other changes proposed by the UCP would also help kick-start the industry, especially the Job Creation Tax Cut, carbon tax elimination, the Red Tape Reduction Action Plan, and the Open for Business Act.

“To get Alberta back to work, and to create jobs in our energy sector, it is necessary for Alberta to move from a defensive, passive, and apologetic approach to a strong, assertive, and strategic defence of our economy, our workers, and our way of life,” he declares. “And with a United Conservative Party government in office, that is what we will do – get pipelines built, fight back against foreign-funded special interests and stand up for a fair deal in Canada.”

by rdnewsNow.com staff

UCP announces energy sector job creation plan

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