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

Surrey 37 per cent behind in housing supply projections

Of 18 cities in Metro Vancouver, only City of North Vancouver and Richmond met or exceeded projections

Winning Christmas card art shown at Surrey gallery

Arts Council of Surrey’s annual competition won by Edwin Stephen and Nancy Painter

Delta police campaign shines a light relationship violence

Campaign comes after a Delta man was charged with assault with a weapon and uttering threats

VIDEO: Surrey Santa Parade of Lights rolls through Cloverdale

This year’s parade may be biggest yet, says organizer Paul Orazietti

$192K provincial grant to support Sources Food Hub in Surrey

Money to promote food security through start of a culinary training program

VIDEO: Boys help rescue Cariboo bear cub

The cub, weighing just 24lbs, has been taken to wildlife sanctuary in Northwest B.C. for the winter

Owners of hotels on Vancouver’s Downtown Eastside fight $1 expropriation in court

Vancouver City Council voted to expropriate the properties for $1 each in November

‘Things haven’t changed enough:’ Ecole Polytechnique anniversary prompts reflection

Fourteen women were fatally shot by a gunman at the Montreal school on Dec. 6, 1989

Bear raids freezer, gorges on Island family’s Christmas baking

Hungry bruin virtually ignored meat and fish, focused, instead, on the sweets

B.C. pharmaceutical company’s stocks double in value after successful lupus drug trial

More than 40 per cent of patients using voclosporin saw improvements in kidney function

Second warning on romaine lettuce from California region as another E. coli case reported

Two cases of E. coli have been reported in relation to the illness in the U.S.

Braille signs coming to TransLink bus stops in 2020

Transit authority says it’s the first to do so in Canada and the United States

CUPE issues 72-hour strike notice for SkyTrain

Local 7000 release states ‘parties are still bargaining’, union will have job action plan by Saturday

Abbotsford man was ‘unintended victim’ of 2018 fatal shooting, police say

Jagvir Malhi, 19, was gunned down while on his way to university

Most Read