“Political instability” in British Columbia since the May provincial election has caused the province’s ranking in terms of attractiveness for oil and gas investment to plunge, according to the Fraser Institute in its annual Global Petroleum Survey.
B.C. fell from 39th place out of 96 jurisdictions last year to 76th out of 97 in 2017.
“Investor confidence matters, and having a government that’s openly hostile to resource development has apparently sent a chill throughout the oil and gas industry,” said Kenneth Green, senior director of the Fraser Institute’s Centre for Natural Resources.
Some of the comments from investors surveyed for the study included:
- “Regulatory uncertainty and prohibitive timelines are detrimental to the approval process for major energy projects such as Kinder Morgan’s Trans Mountain Pipeline and Northern Gateway;” and
- “Not only has B.C. been unable to build pipelines, but it has also failed to develop its LNG industry, and this is a major deterrent to investment.”
Other issues of concern in B.C., according to the study, are disputed land claims and protected areas.
According to the study, Newfoundland and Labrador has the most investment-friendly climate in Canada; that province increased in ranking from 25th of 96 last year to 4th of 97. One of the reasons for the increase in attractiveness in this region related to a decrease in regulatory duplication and inconsistencies.
@EmmaHampelBIV
