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CALGARY — Alberta Premier Ed Stelmach will announce natural gas drilling incentives Thursday as the industry struggles with depressed prices and increased shale gas development south of the border.
Stelmach, in Calgary for a ceremony at Bow Valley College, said the incentives will improve Alberta`s appeal to investors and producers. A Fraser Institute report released Wednesday ranked Alberta as the least attractive province for oil and gas investment.
"With the announcements that will be made towards the end of this week, that report quite frankly is going to be old news," the premier said.
Government sources indicate Energy Minister Mel Knight will on Thursday extend temporary royalty breaks on natural gas drilling that were slated to end in March.
The incentives, which took effect in April and were projected to cost the province $1.5 billion, offer a $200-per-metre royalty drilling credit for new conventional oil and gas wells, as well as a maximum five per cent royalty rate for the first year of production on new wells.
The energy industry, which met with Stelmach earlier Wednesday, has been lobbying for an extension of these royalty breaks.
"We`re not immune to what`s happened around the globe," Stelmach said.
"This is all about people keeping their careers, whether it be engineering . . . the rig workers, the motel operators, people that repair tires and trucks in small communities. It`s all based on how we can support further activity in the oil and gas industry."
Read the full article here.
Stelmach, in Calgary for a ceremony at Bow Valley College, said the incentives will improve Alberta`s appeal to investors and producers. A Fraser Institute report released Wednesday ranked Alberta as the least attractive province for oil and gas investment.
"With the announcements that will be made towards the end of this week, that report quite frankly is going to be old news," the premier said.
Government sources indicate Energy Minister Mel Knight will on Thursday extend temporary royalty breaks on natural gas drilling that were slated to end in March.
The incentives, which took effect in April and were projected to cost the province $1.5 billion, offer a $200-per-metre royalty drilling credit for new conventional oil and gas wells, as well as a maximum five per cent royalty rate for the first year of production on new wells.
The energy industry, which met with Stelmach earlier Wednesday, has been lobbying for an extension of these royalty breaks.
"We`re not immune to what`s happened around the globe," Stelmach said.
"This is all about people keeping their careers, whether it be engineering . . . the rig workers, the motel operators, people that repair tires and trucks in small communities. It`s all based on how we can support further activity in the oil and gas industry."
Read the full article here.