Investment in the Canadian and U.S. Oil and Gas Sectors: A Tale of Diverging Fortunes finds that from 2016 to 2018, capital investment in Canada’s upstream oil and gas industry (essentially, exploration and production) increased only 15 per cent compared to 41 per cent in the U.S. over the same period. And, the percentage of oil and gas capital investment in Canada as a share of total capital investment has plummeted, from 28 per cent in 2014 to 13.9 per cent in 2018.
The Cost of Pipeline Constraints in Canada, 2019 finds that a lack of pipeline capacity in Canada is driving down the price of Canadian oil and cost the country’s energy sector C$20.6 billion in foregone revenues last year, even after adjusting for quality differences and transportation costs. In fact, the revenue loss in 2018 nearly eclipsed the amount for the previous five years combined (2013 to 2017) when Canada’s pipeline shortage cost our energy sector $20.7 billion.
Effective Tax and Royalty Rates on New Investment in Oil and Gas after Canadian and American Tax Reform finds that, despite the federal government’s recent (albeit temporary) investment incentive measures, the effective tax rate on new investment in the oil and gas sectors are uncompetitive in two of Canada’s major energy-producing provinces: Saskatchewan and B.C. In fact, Saskatchewan has the highest taxes on new investment in both oil and gas among all major energy-producing jurisdictions in North America, and B.C. has the second-highest tax rate on new gas investments in Canada.
The Fraser Institute Annual Survey of Mining Companies, 2018, rates 83 jurisdictions around the world based on their geologic attractiveness for minerals and metals and the extent to which government policies encourage or deter exploration and investment. This year, the state of Nevada ranks as the most attractive jurisdiction in the world for mining investment, followed by Western Australia, Saskatchewan (3rd) and Quebec (4th).
Carbon Pricing in Alberta finds that the province’s carbon tax is unlikely to meaningfully reduce global carbon emissions. Crucially, Alberta’s carbon tax doesn’t replace existing regulations, is not revenue neutral and the government plans to continue subsidizing carbon-emitting alternatives, all of which distort the market pressures a tax would place on emissions, thus negating the theoretical benefits of a pricing scheme.
Global Petroleum Survey, 2018 finds that Alberta and British Columbia are the least-attractive jurisdictions in Canada for oil and gas investment. And for the first time in more than five years, no Canadian province even ranked in the top 10 most-attractive worldwide, with nine of the top 10 spots going to U.S. states.
Electricity Reform in Ontario: Getting Power Prices Down finds that the Ontario government could reduce current electricity prices for Ontarians by 24 per cent by either cancelling or renegotiating existing contracts with wind and solar-power generators. These contracts represent almost 40 per cent of the Global Adjustment charge on Ontarians’ hydro bills while providing just seven per cent of the province’s total electricity generation.