An energy industry group says Alberta’s energy sector could create more than 24,000 jobs and grow the economy by $5 billion, if it works together with the government.
A report from the Canadian Association of Petroleum Producers (CAPP) calls for federal and provincial regulations and policies to be streamlined, in order to create the long-term stability needed to attract investment.
CAPP said government policies on methane emissions, carbon pricing and corporate tax increases have created barriers to growth and could add up to $760 million to existing industry costs.
It added that global commodity prices, rapidly changing market dynamics and new policy directions in the United States have led to negative impacts on oil and natural gas competitiveness in Canada.
LISTEN: CAPP calls for cooperation between government and Alberta energy sector
“We have seen consistently over the last few years, increasing dollars moving to other parts of North America,” Tim McMillan, the president and CEO of CAPP, told News Talk 770’s Rob Breakenridge.
“Where Alberta used to take up a fairly substantial portion of capital spending, that’s been decreasing.”
READ MORE: ‘America first’ tone worries CAPP president
CAPP said it hopes to work with the province to develop a “made-in-Alberta” approach that will increase competitiveness and attract investment.
“Under-investment today is going to play out in lost jobs today and lost opportunity into the future,” McMillan said.
The industry group estimates that by working together, the energy sector could help drop Alberta’s unemployment by nearly 25 per cent, while also generating $4.5 billion in GDP, $207 million in additional income and $79 million in additional royalties for Alberta.