Alberta, home to Canada’s oilsands, slid lower in a global ranking of energy investment destinations as the industry’s mounting woes are compounded by higher provincial levies.
Just as its oil and gas producers reel from a price crash and hurdles to pipeline projects like TransCanada Corp.’s Keystone XL, an increase in corporate taxes and a royalties review helped push down Alberta’s position to 38th from 16th in an annual survey of 126 locations by the Vancouver-based Fraser Institute. The right-leaning think tank conducted the study between May and July, at the height of uncertainty over the province’s new pro-labour government, which has since sought to appease investors.
This should raise red flags for the provincial government
Premier Rachel Notley’s New Democrats ousted a decades-long Progressive Conservative dynasty in May, pledging to boost corporate taxes to help fund improvements in health care and education. Her policy changes come as plummeting prices make Alberta’s crude the cheapest in the world while producers slash budgets and cut jobs to stay afloat.