Alberta Plans New Royalty Incentives to Spur Oil Production
Alberta Plans New Royalty Incentives to Spur Oil Production Iran’s proposed anti-infiltration law is… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Canada’s oil-producing province of Alberta plans to announce in November a new preferential royalty framework to encourage companies to invest in new oil and gas production, Alberta’s Premier Danielle Smith said at an industry event.
As Alberta owns 81% of the mineral rights, the Alberta government, as the resource owner,sets conditionsand royalties for resource development.
Alberta’s ambition to boost oil production and export more of its crude oil to destinations in Asia to reduce the high dependence on exports to the United States has prompted the provincial government to propose anew 1 million-barrels-per-day oil pipelineto the British Columbia coast.
The pipeline is expected to receive federal government approval as a project of national interest.
Alberta’s government this summer submitted the so-calledWest Coast Oil Pipeline projectto the federal Major Projects Office to be listed as a project of national interest and announced its intent to partner with Trans Mountain Corporation and Pembina Pipeline to advance project development.
The provincial government expects the project to be listed as a project of national interest by October 1, 2026, and receive all approvals and permits by September 2027.
The new royalty framework would be designed to encourage investments in new oil production, Premier Smith said at the Oil Sands Expo in Fort McMurray on Wednesday.
With the new royalty regime, “I suspect that you’re going to see a lot of interest in being able to fill that pipeline,” Smith said at the event, as carried byBloomberg.
“But there is a little more work we need to do,” the premier added.
In a further boost to investment plans, the federal government of Canada this week announced a major cut in theinvestment tax rate, with which Canada’s marginal effective tax rate on new business investment will fall from about 13% to 6.4% – the lowest of any major economy in the world.
Goldman Sachs Sees More Upside in Gasoline as Diesel Crunch Deepens What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Bessent Says Strait of Hormuz Obsolete Within Two Years White House Weighs Defense Production Act as U.S.
Refineries Maxed Out Saudi Arabia Discovers 110 Million Tonnes of Uranium-Bearing Ore Satellite Images Show Seven Tankers Loading Iraqi Crude at Once Qatar and Kuwait Restore 70% of Pre-War Oil Exports Through Hormuz The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment