To further energize investment, the Alberta government unveiled initiatives to accelerate new technologies to encourage development of Alberta’s vast unconventional and deep resource pools and finalized royalty curves for conventional oil and gas.
Building on the work of government and industry that resulted in the release of Energizing Investment in March, the Emerging Resources and Technologies Initiative modifies the royalty rate for wells that require use of high-cost technologies. This strengthens a producer’s ability to invest in additional wells, as well as research and development. Stimulating application of new technologies in resources that have not been tapped is expected to increase overall production, resulting in increased economic activity and secure long-term royalty revenue from new resource discoveries.
In all, energy development in Alberta represents almost 30 per cent of the province’s total gross domestic product and directly or indirectly supports almost one in every seven jobs. Over the next 25 years the Canadian Energy Research Institute forecasts that oil and gas development in Alberta has the potential to add $2.5 trillion in new economic activity. More economic activity means more opportunity and more jobs for Albertans.
AgriRecovery aids livestock producers facing drought
Livestock producers in Alberta and Saskatchewan facing two years of drought will receive funding from federal and provincial governments to buy feed while damaged pastures recover. Federal Agriculture Minister Gerry Ritz joined Jack Hayden, Alberta Minister for Agriculture and Rural Development, and Saskatchewan Agriculture Minister Bob Bjornerud to make the announcement last week in Lloydminster.
Under the 2010 Pasture Recovery Initiative, livestock producers living in the eligible counties and municipal districts in Central and Northern Alberta and West Central and Northwest Saskatchewan will receive pasture assistance for breeding cattle, as well as assistance for other types of breeding livestock, totalling up to $114 million subject to size of the eligible livestock. It is estimated that there are more than 2.2 million breeding animals in the affected areas.
In 2008 and 2009, portions of Alberta and Saskatchewan experienced challenging weather conditions that have resulted in delayed pasture development for 2010 in the hardest hit areas.