Canada’s oil and gas industry affected by over-regulation: study

According to a new study from the Fraser Institute, Canada’s oil and gas sector suffers from a widespread perception by industry executives that it is a bad place to do business.

The tax-conservative think-tank report found that out of 22 oil and gas-producing regions in the United States and Canada, none finished in the top 10 in terms of favorable investment climate.

“The message to investors is clear: Canada’s onerous and uncertain regulatory environment continues to hamper the attractiveness of investment in the country’s oil and gas industry,” said Elmira Aliakbari, co-author of the report, Canada-United States Energy Competitiveness Survey 2021.

The survey was completed by 71 industry executives between May and August of this year.

Texas and Oklahoma were considered the top two places to invest in oil and gas, followed by Wyoming, North Dakota and Kansas in the top five positions.

By comparison, Saskatchewan finished 11th, Alberta 12th, Newfoundland and Labrador 16th, BC 18th and the Northwest Territories 20th out of 22 jurisdictions surveyed.

Oil and gas executives cited uncertainty over environmental regulations in Canada, regulatory duplication and inconsistencies, and the cost of regulatory compliance as top concerns relative to the United States.

For example, while only 20% of respondents said they were concerned about regulatory uncertainty in Texas, 65% expressed the same view about Alberta.

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