Skip to main content

“I am a Canadian, free to speak without fear, free to worship in my own way, free to stand for what I think right, free to oppose what I believe wrong, or free to choose those who shall govern my country. This heritage of freedom I pledge to uphold for myself and all mankind.” ~~ John G. Diefenbaker

FRASER INSTITUTE -- Bills C69 and C48 further damage investment climate of Canada’s energy sector while US investment soars


VANCOUVER—The ability of Canada’s energy sector to attract investment has been weakened by several government policies in recent years, all the while investment in the United States has soared, finds a new collection of essays released today by the Fraser Institute, an independent, non-partisan Canadian policy think-tank.

While Canada’s energy sector has suffered from insufficient pipeline capacity, increased regulations and taxation, the U.S. energy sector has enjoyed sweeping tax reforms and a significant reduction in red tape,” said Robert P. Murphy, Fraser Institute senior fellow and co-author of the essay Policy and Regulatory Framework Changes in the U.S. and Canadian Oil and Gas Sector.

For example, Bill C-48, which bans oil tankers off British Columbia’s northern coast, and Bill C-69, which makes the approval process for major resource projects less certain and more complicated, became law last month.

And Canada continues to suffer a lack of pipeline capacity. Moreover, the federal government has also introduced new methane emission and ethanol regulations, and Alberta’s oilsands emissions remain capped.

On the tax front, while the U.S. recently lowered federal taxes (in part to encourage capital investment), governments across Canada have raised or maintained already high taxes on the energy sector.

For example, Ottawa’s federal carbon tax came into effect earlier this year. And Saskatchewan currently has the highest tax rate on new oil investment in North America, while British Columbia has one of the highest tax rates on new investment in natural gas.

Consequently, from 2016 to 2018, upstream oil and gas investment (essentially, exploration and production) increased 41 per cent in the U.S. but grew by only 15 per cent in Canada over the same time.

What’s more, oil and gas capital investment (as a share of all investment in Canada) declined from 28 per cent in 2014 to just 13.9 per cent in 2018.

Given the importance of Canada’s energy sector to the economy, policymakers should move quickly to create a more competitive investment climate in the oil and gas industries,” said Elmira Aliakbari, associate director of natural resource studies at the Fraser Institute and editor of the essay series.


The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries.

Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being.

The Institute does not accept grants from governments or contracts for research.


Comments

Popular posts from this blog

GORDON F. D. WILSON: When The Trick Masquerades as The Treat

Thirty-seven years ago, Halloween 1987, I became the leader of the BC Liberal Party.   British Columbia was badly polarized. Social Credit held one side and the NDP the other. It had been twelve years, 1975, since Liberal MLAs Garde Gardom, Pat McGeer, and Alan Williams had walked away from their party to join Social Credit, one year after the lone Progressive Conservative MLA Hugh Curtis had abandoned his party to sit with Bill Bennett, the son and heir apparent to long-serving BC Premier, WAC Bennett.   An unwritten agreement by the biggest Canadian political shareholders, the federal Liberals and Conservatives, decided that if British Columbia was to remain a lucrative franchise from a revenue perspective, they couldn’t risk splitting the electoral vote and electing the real enemy, the NDP, so no resources would be used to finance either a Liberal or Conservative party provincially.   “There are two sides to every street,” I was told by a very prominent Canadian businessman who cont

FORSETH: You Have To Be A Bit Crazy

  Ward and his wife Carleen celebrating his win on election night.   In March of this year, I took on the role of Campaign Manager for BC Conservative candidate Ward Stamer.  It’s the third time I’ve had the opportunity as I took on the role for Peter Sharp in 2013, and for Dennis Giesbrecht in 2020. Now let me tell you, in the past, a BC Conservative campaign team generally consisted of myself, the candidate and one or two helpers – and very little in the way of a campaign budget. Thankfully, a benefit of having spent 30+ years in the broadcast media afforded me the ability to do ad copy and write candidate speeches, and prep both Dennis and Peter to deal with the media – it’s also something I have always enjoyed. That was part of my duties this time around as well, however having a team of a dozen and a half volunteers meant that for the first time we had people available to ID our supporters, put together and install campaign signs, distribute campaign literature, and help out at ou

Rustad will support policy for 'everyday' people, otherwise work to bring down NDP

  Conservative Party of B.C. John Rustad Tuesday (Oct. 29) said his party would support government policies that support "average, everyday working" persons in B.C., but also repeated earlier promises to bring down the B.C. NDP government under Premier David Eby. "If there are things that are moved forward that will improve lives for those people, we would be looking at support it," Rustad said. "But if he's going to carry forward with the destructive policies that he has, then yes, we are going to look at every opportunity possible to bring him down as soon as possible."  CLICK HERE for the full story

Labels

Show more