1. Reliable, affordable energy:
Consumers all need energy for their homes, businesses, farms, and vehicles. Other industries like manufacturing and agriculture depend on reliable and affordable energy that's available when needed. Skyrocketing price increases in Europe for natural gas and rolling blackouts in China show us what could happen in North America if the supply of natural gas and oil does not meet demand. While energy prices may also rise in North America in response to global trends, the U.S. and Canada will be insulated from the worst effects by having a strong, dependable domestic supply.
2. A Solid and Integral part of the Canadian Economy which will continue for many years:
The natural gas and oil industry is one of Canada’s largest employers, supporting more than 500,000 jobs nationwide. These are well-paying and diverse jobs, ranging from working on a drilling rig to activities like lab research, land reclamation, environmental monitoring, and community relations – literally thousands of different jobs, careers, and professions that support livelihoods and households across the country.
3. Taxes and Investment:
Alberta has long had one of the lowest tax regimes of any province. In addition, the oil and natural gas industry is one of Canada's most significant sources of capital investment. Capital investment is used to build new economic capacity – everything from new exploration drilling to constructing new pipelines, LNG facilities, expanding existing refineries, etc. It is a market that is too important to ignore.
4. World’s third largest oil & gas reserves:
Canada has the world’s third-largest oil and gas reserves. Alberta offers world-scale hydrocarbon resource endowments for investors – several hundred years of crude oil, natural gas, and NGL supply at current production rates. And, there is a lot of running room to buy land (mineral rights) in emerging conventional plays.
5. Technology:
Alberta has long been a leading developer and exporter of petroleum industry technologies, with Alberta oil and gas companies steadily flexing their technical muscle on the world stage and attracting international attention for a diverse range of innovative technologies. Further, in a world clamoring for solutions to reducing emissions, Alberta is already there. Canada is a world leader in developing the innovation and technologies that can help reduce global emissions. Carbon capture, utilization, and storage are notable examples. Not only is the industry continually finding ways to reduce emissions, but research, innovation, and recent technologies are spurring the growth of Canada’s cleantech sector.
6. Stability of Regulation in Alberta:
Alberta is home to one of the world’s most transparent and stringent energy regulatory regimes, and the rules are well-known and reasonable. For example, Alberta's oil & gas sector is a world-class leader in gas flaring reductions. With a strong, stable regulatory framework and a competitive tax structure, project risk is mitigated, and Alberta's long-term prospect for business is incredibly positive.
7. Environment, Social and Governance (“ESG”) means responsible, transparent development:
Canada’s oil and natural gas is produced responsibly, focusing on transparent reporting of emissions reduction, water management, safety and many other factors contributing to the industry’s sustainability. The same cannot be said of many other energy-exporting countries that do not share Canada’s commitment to environmental, social, and governance principles. Responsible energy production is Canada’s competitive edge. Of the top ten oil-producing countries in the world, Canada is the absolute best in every metric of ESG you can measure.
8. The in-ground resources are supported by high-quality extraction and transportation infrastructure, with new infrastructure under development.
Companies such as Pembina Pipeline, Keyera, TransCanada, and Seven Generations are all working on projects that will expand the province’s midstream infrastructure to accommodate increased gas and NGL production. In addition, the TMX oil pipeline expansion will be in service by March 2024, leading to 590,000 Bbl/d of new takeaway capacity and the dawn of a new era of lower ($12ish/bbl) and less volatile Western Canada Select (“WCS”) differentials. In addition, these extra TMX oil volumes to tide-water provides a much-needed additional supply of oil to states like California, which currently produces 463,000 barrels of oil a day, yet consumes 1.8 million barrels a day, and thus California imports almost three times as much oil as it produces.
9. The Provincial government in Canada support investment:
Alberta has a Provincial government that is exceptionally supportive of the oil and gas sector. The Provincial government of Alberta feels that Alberta has an opportunity to capture value added opportunities and has actively supported the sector. Examples include: the Horizontal well royalty program in which horizontal producing wells only pay a 5% royalty for ~ the first year of their life, and the Petrochemicals Diversification Program, was created to encourage companies to invest in the development of new Alberta petrochemical facilities by providing up to $500 million in incentives through royalty credits in round 1 and round 2, and the $500 million Petrochemical Feedstock Infrastructure Program (PFIP) which will provide tangible support to investors making long-term commitments in Alberta.
In contrast, permitting for oil wells in California has ground to a halt, and five oil companies (ExxonMobil, Shell, Chevron, ConocoPhillips, and BP) along with the trade group American Petroleum Institute, have been named in a lawsuit brought by California Attorney General Rob Bonta related to climate change. In contrast, the Alberta oil and gas sector is open for business!
10. Highly skilled oil and gas workforce:
Alberta’s highly skilled workforce and competitive construction costs lead to successful project development and implementation.
Are you looking for a reliable partner to help you unlock value? Look no further than North American Energy Opportunties. Contact us today to learn more about our services and how we can help you achieve your goals.
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