CAPP recommends lower taxes, straightforward regulatory process

The Canadian Association of Petroleum Producers (CAPP) made a number of recommendations on Wednesday, ahead of this year’s provincial election, aimed at doubling investment in the provincial energy sector.

Greater market access, lower corporate and municipal taxes, a straightforward regulatory process and proper climate policy are the recommendations being championed by the oil and gas association.

Speaking at an Edmonton Chamber of Commerce luncheon, CAPP president Tim McMillan said a provincial election will present a “crossroad” for the province’s oil and gas industry.

“If there is ever a time for Albertans to vote for energy and support a strong and growing oil and natural gas industry, that time is now,” said McMillan. “A strong Alberta energy sector makes for a strong Alberta.”

McMillan said if government accepts CAPP’s recommendations, it will pave the way for Canada to become the fourth largest oil producer and the third largest natural gas producer in the world.

CAPP is asking the newly formed government, no matter which party forms it, to support the construction of three new pipelines and to ensure Alberta lowers the corporate tax rate to 10 per cent from 12 per cent.

The association would also like to see application wait times reduced by 50 per cent.

“Right now in Alberta we operate one of the most complex regulatory regimes,” said McMillan. “It takes four times longer to get an oil well licensed in Alberta than it does in Texas or Oklahoma.”

McMillan said current policies that have been driven by foreign-funded campaigns, such as Greenpeace, are hurting Canadian infrastructure and driving investors away from Alberta.

He said these targeted attacks have led to cancelled pipelines and adverse policies such as Bill C-48.

He said the bill that prohibits large vessels from transporting oil and gas to B.C’s northern coast needs to be scrapped in its entirety.

McMillan said CAPP’s recommendations will allow for the growth of the energy sector despite these obstacles.

In a statement from Greenpeace Canada Wednesday, senior energy strategist Keith Stewart said “CAPP’s election platform only works economically if the world fails to avoid levels of global warming that scientists and health professionals warn would be catastrophic.

“With the world making a transition to electric vehicles and renewable energy, doubling down on a massively expanded oil sector is a risky plan.”

Source: Calgary Sun

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