Income tax revenues are $4.2B lower than planned this year. Oil & gas revenue is $3.4B lower. Federal transfer payments are $2.2B higher.
Companies will also be exempt form having to pay the Well Drilling Equipment Tax for any new drills.
Earlier this week, the Alberta government released a vision and strategy for the natural gas sector. Canada is the 4th highest producer of natural gas in the world, and about two thirds of that is produced within Alberta. The newly released vision and strategy is intended to include more than natural gas production and distribution. […]
Through royalty adjustments, the provincial government reduces royalty rates for fossil fuel companies, which they hope will encourage new oil and natural gas reserves and improve the longevity of already existing reserves.
And with lower demands driven by a still ongoing pandemic, we might not see oil prices rising significantly for some time.
Last week, Alberta’s energy minister, sent out a tweet in which she claimed that the oil and gas sector is the largest industry in Alberta. But what does that mean?
We’ve received roughly the same amount in federal transfer payments over the last 13 years as we have royalties, with each of them bringing in a little over 15.5% of the total revenue.
Personal income tax and transfer payments from Ottawa will be the largest sources of income for the UCP government this year. If it wasn’t for them, the provincial debt would be much higher.
More than a quarter of those projects are out of province.
Did you know that Keystone XL isn’t the only oil and gas project that the UCP government plans to spend over $1 billion on?