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.

BC legislatureTrans Mountain pipeline

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

City of Enderby issues flood caution reminder

Rain in Sunday weather forecast could increase water levels and flow

Rain in Sunday forecast for Okanagan-Shuswap

Environment Canada calling for 15-20 millimetres in regions

Salmon Arm man reported missing by RCMP has been found unharmed

Ken Derkach apologizes for having caused anyone concern

Preparations for flooding in the Shuswap accelerate

A sandbagging machine and a crew to run it have been set up in Silver Creek.

Severe thunderstorm watch in effect for Okanagan, Shuswap

Environment Canada is forecasting strong wind gusts, large hail and heavy downpours in parts of the Interior

VIDEO: Injured bald eagle rescued in B.C. First Nations community

Bird suspected injured in fight, whisked off to Coquitlam rehab

Toronto Raptors’ Ujiri says conversations about racism can no longer be avoided

Thousands have protested Floyd’s death and repeated police killings of black men across the United States

‘I’m afraid’: Witnesses of wolf attack on senior near Prince Rupert worried about safety

Frank Russ shows where the unprovoked wolf attacked his father

Protesters prepare to rally against racism in front of Vancouver Art Gallery

Rally is in response to the deaths of black Americans and a Toronto woman

PHOTOS: Okanagan residents capture epic lightning show

A look at some of the best shots of the storm on May 30

Big White Ski Resort to offer rebate for pass holders after early closure

Next year’s pass will include a 20 per cent rebate

‘No tick is a good tick’: Canadian Lyme Disease Foundation

The foundation’s president said all ticks that attach to humans and pets can carry various diseases

Protesters rally against anti-black, Indigenous racism in Toronto

Police estimated the crowd to be between 3,500 and 4,000 and said there was no violence

Most Read