November 29, 2018 - 5:00 AM EST
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Fraser Institute News Release: Canadian provinces shut out of top 10 most-attractive jurisdictions for oil and gas investment in annual survey

CALGARY, Alberta, Nov. 29, 2018 (GLOBE NEWSWIRE) -- For the first time in more than five years, no Canadian province ranked in the top 10 most-attractive jurisdictions for oil and gas investment, according to an annual global survey of petroleum-sector executives released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.

And for the second straight year, Alberta and British Columbia ranked as the least-attractive jurisdictions in Canada for oil and gas investment.

“Onerous regulations, higher taxes and a lack of pipeline capacity are taking their toll on Canada’s energy sector, and as a result, investors are looking elsewhere to invest,” said Kenneth Green, resident scholar and research chair in energy and environmental studies at the Fraser Institute and co-author of the 2018 Global Petroleum Survey.

This year, B.C. was the lowest-ranked Canadian province at 58th (out of 80) on the Policy Perception Index, a comprehensive measure of the extent policy deters oil and gas investment. Crucially, 80 per cent of respondents cited the high costs of regulatory compliance in B.C., and 81 per cent cited political instability in the province as deterrents to investment.

Alberta ranked 43rd this year—a significant drop from its 2014 ranking of 14th worldwide—and the province continues to decline in investment attractiveness. Specifically, almost 60 per cent of survey respondents cited Alberta’s high taxes, and more than 70 per cent cited Alberta’s high cost of regulatory compliance as deterrents to investment.

Elsewhere in Canada, Manitoba (16th overall) was the top-ranked province followed by Saskatchewan (18th, down from 7th last year). Newfoundland and Labrador, which ranked 4th globally last year, dropped to 26th this year.

South of the border, nine U.S. states rank in the top 10 including Texas, Oklahoma, Kansas, Wyoming, North Dakota, Alabama, Montana and Louisiana.

“Investors are saying very clearly they prefer the competitive taxes and regulatory regimes of the energy-producing American states over Canadian jurisdictions,” said Ashley Stedman, Fraser Institute senior policy analyst and study co-author.

“Policymakers at the federal and provincial levels must be aware of the impact their decisions have on attracting or deterring valuable investment dollars.”

Canadian provincial rankings from the 2018 Global Petroleum Survey

Province2018 Global Rank
(out of 80)
2017 Global Rank
(out of 97)
Manitoba1612
Saskatchewan187
Nova Scotia2126
Newfoundland and Labrador264
Alberta4333
British Columbia5876

*NOTE: 2018 data were not available for Ontario, Quebec, New Brunswick, Yukon, NWT and Nunavut.

MEDIA CONTACT:
Kenneth P. Green, Resident Scholar and Chair, Energy and Environment Studies
Fraser Institute
Ashley Stedman, Senior Policy Analyst
Fraser Institute

To arrange media interviews or for more information, please contact:
Bryn Weese, Senior Media Relations Specialist, Fraser Institute
Tel: (604) 688-0221 Ext. 589
E-mail: [email protected]

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute’s independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org 

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Source: GlobeNewswire (November 29, 2018 - 5:00 AM EST)

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