Royalty Review Identifies Diversification as a Priority
Alberta’s Industrial Heartland (January 29, 2016)
More of Alberta’s oil and gas resources may soon be further processed within provincial borders as a result of recommendations by the Royalty Review Panel. After a five month process, the outcome of the Royalty Review was announced today by Premier Notley.
Alberta’s Industrial Heartland Association (AIHA) is encouraged by the recommendation to ‘make a bold stretch and seize opportunities to enhance value added processing in the province’. This includes two specific actions:
1. Developing a value added natural gas strategy for Alberta.
2. Examining opportunities regarding partial upgrading and alternative value-creation technologies for bitumen.
Today’s announcement also noted the creation of a working group in the near future to help enhance diversification in the province.
“In our submission to the Review Panel, we highlighted the need to make value adding a priority,” commented Ed Gibbons, Chair of Alberta’s Industrial Heartland Association. “By further processing our resources here in Alberta, we generate a better overall return to Albertans in the form of diversified economic activity, job creation, and new sources of corporate taxation.”
Given Alberta’s abundant and cost advantaged energy feedstocks, the province could realistically attract over $27 billion in new investment in value added development. This development would generate thousands of construction and operational jobs, and billions of dollars in GDP and annual taxes.
“We foresee new opportunities for investment resulting from today's Royalty Review announcement, specifically in propane processing and bitumen refining,” explained Neil Shelly, Executive Director of Alberta’s Industrial Heartland Association.
Given the current competitive investment climate, AIHA is keen on collaborating with the Government of Alberta on these opportunities in a timely manner.
“Alberta has been identified by international investors as one of several locations under consideration for new industrial projects. We strongly encourage implementing diversification initiatives in the very near future to ensure Alberta is competitive when vying for global investment dollars,” said Shelly.
For more information and regular updates on Alberta’s Industrial Heartland Association, visit www.industrialheartland.com or follow @ABHeartland on Twitter.