Canada’s oil and natural gas industry supports the federal government’s budget measure to foster growth of the oil and gas industry, which ultimately benefits call Canadians. Tim McMillan, President and CEO, Canadian Association of Petroleum Producers (CAPP) said, “balancing the budget and not raising taxes in these tough economic times when low oil prices are hurting some companies, costing jobs and reducing government revenues is clearly the right way to go. We need to keep Canada an attractive place to invest in oil and gas. The fiscal regime in the federal budget supports capital investment and enables future growth.”
The oil industry in the country employs over 550 000 people and is one of the country’s largest sources of revenue and Canada’s single largest private investor. It paid over CAN$18 billion in royalties and taxes to provincial and federal governments last year. Capital investment for this year is expected to be CAN$49 billion, highest of any sector in Canada and higher than the next two largest sectors combined.
The new tax treatment included in the budget for potential LNG export facilities will enhance Canada’s competitiveness and supports the continued success of natural gas producers. It also recognises the need for a globally competitive business environment and helps create a more level playing field for companies assessing potential investments.
McMillan commented, “along with fiscal considerations, we need to continue our country wide focus on diversifying markets for oil and gas products and moving these products to market. With improved transportation infrastructure, Canada can reap the benefits of helping meet global energy needs through safe, responsible development and delivery of its natural resources. We welcome the government’s commitment to enhance the safety of marine transportation, environmental protection and public engagement to help meet global energy needs.”
Meeting longer term labour requirements is crucial also to the oil and gas industry, which is the largest employer of skilled workers in Canada and McMillan commented, “and we strongly support government measures to improve alignment among worker skills and longer term labour needs, which is crucial to our industry.”
Edited from press release by Claira Lloyd
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/23042015/canada-oil-gas-investment/