Sask. most attractive for oil investment in Canada: survey
22 Nov 2014
Sask. most attractive for investment in Canada: survey
On the strength of its large petroleum reserves, Alberta remains the most attractive province for oil and gas investment in Canada, says the Fraser Institute’s annual global petroleum survey released this week.
However, Saskatchewan ranked first in Canada (and third worldwide) when the size of proven oil and gas reserves is ignored and the ranking is based solely on survey responses, the Vancouver-based conservative think-tank said. Based on survey responses, Manitoba ranked second in Canada (and fifth globally) followed by Alberta (16th globally).
This year’s survey ranked 156 jurisdictions worldwide on their relative attractiveness for investment, while barriers to investment include high taxes, costly regulatory obligations and uncertainty over environmental regulations.
“Alberta’s wealth of petroleum reserves continue to attract investment, which creates jobs for scores of Canadians,” said Kenneth Green, senior director of the Fraser Institute’s Centre for Natural Resources.
The survey ranking considers both the input from respondents and the relative size of oil and gas reserves of each jurisdiction. Of the 27 jurisdictions with large petroleum reserves, Texas tops the list followed by Alberta, Norway, the United Arab Emirates and Qatar.
Of the 44 jurisdictions with medium-sized reserves, Oklahoma is No. 1, while Newfoundland and Labrador ranks 15th and B.C. ranks 19th. Of the remaining 69 jurisdictions, which have relatively small proven oil and gas reserves, Mississippi tops the list followed by Saskatchewan and Manitoba.
On the other end of the spectrum, Quebec presents the greatest barriers to oil and gas investment in Canada. Although Quebec’s overall rank improved slightly from 141st (of 157) in 2013 to 133rd (of 156) in 2014, it is still regarded as unattractive, with survey respondents citing Quebec’s foot-dragging during authorization and permit processes.