CAPP seeks Alberta energy-policy changes

In a campaign it calls “Vote Energy,” the Canadian Association of Petroleum Producers calls for action in Alberta on market access, regulatory competitiveness, climate policy, and fiscal and economic policy.

Among its recommendations are to complete six oil-export pipelines, including three now stalled.

The province, hurt by transportation bottlenecks lowering the value of bitumen produced in the prolific oil sands region, will hold a general election by the 31^st May.

Premier Rachel Notley of the New Democratic Party faces a challenge from United Conservative Party Leader Jason Kenney, who criticises Ms Notley for imposing a carbon tax and not winning pipeline approvals outside the province.

CAPP said it “is calling on all political parties to engage with the oil and natural gas industry to commit to policy solutions and actions which are critical to positioning Alberta as a leading global energy supplier.”

CAPP’s recommendations

To improve market access, it calls on the province to support completion of three stalled pipeline projects by 2020: expansion of the Trans Mountain system, Line 3 replacement, and Keystone XL.

Furthermore, it says the province should support three additional pipelines to Canadian coasts as well as four major LNG projects, all by 2025.

It also calls for “market-driven diversification of energy products” and an effort to meet all Canadian demand for oil and gas with Canadian production.

To improve regulatory competitiveness, CAPP recommends targets for project approvals, including cutting average application timelines by 50% and assessing Alberta’s regulatory timelines against comparable jurisdictional benchmarks.

It calls for a reduction of C$2 billion/year in regulatory costs and implementation by the end of 2019 of a “one application, one review” process for all applications.

And it says Alberta should assert its “constitutional authority over oil and natural gas sector approvals and regulation for all projects within its jurisdiction (i.e., in situ projects).”

CAPP recommends a climate policy “which ensures flexibility, encourages innovation, doesn’t impede investor confidence, and allows for the growth of greenhouse gas emissions-efficient operations.”

It urges the provincial government to advocate for exclusion of the upstream oil and gas industry from the federal Clean Fuel Standard.

It recommends the province emphasise investment in technology and emissions reduction to “achieve positive results in a cost-effective manner which protects competitiveness” and “enables full access to offsets as a compliance tool.”

And it says, “Any climate policy needs to ensure competitiveness and create protection mechanisms for emissions-intensive, trade-exposed sectors which include small and large producers.”

Tax cuts

For fiscal and economic policy, CAPP recommends that Alberta have the lowest municipal tax framework in North America and the most competitive and efficient royalty framework in the world.

The group recommends a return to an Alberta corporate income tax rate from 12%.to 10%

It says the province should urge the federal government to provide 100% immediate capital-expenditure deductibility to align with US tax rate reforms.

And it recommends the provincial government allow costs of research and development to be deductible from royalties.

Source: Oil & Gas Journal