Liepert mends fences at gas show

Wednesday, 12 May 2010 22:43

ALEX MCCUAIG
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The Gas City Petroleum Show may have had noticeably less participants than the citys last oil and gas exhibition two years ago. But this years bi-annual edition hosted the top government industry representative as Energy Minister Ron Liepert talked of the Tories future plans to boost the sector.
Liepert focused on the governments initiatives to increase investment while streamlining regulations in the oil and gas sector during his 15 minute speech to a half full Cypress Centre which hosted the Petroleum Shows banquet Tuesday night.
Speaking of the Royalty Review to the gathered crown, the minister said the economic downturn has had an effect on the provinces current strategy.
So as a provincial government we needed to determine exactly how competitive our business structure was and last fall we launched into the Competitiveness Review, said Liepert.
That reviews unveiling earlier this year saw royalty rates paid to the province reduced to counter slumping sector in Alberta.
Because what we found was our royalty structure was not competitive, the minister told the audience.
Reducing regulations, specifically some environmental assessments regarding proven safe technologies, are also aims of the government help the provinces hydrocarbon sector be competitive, Liepert said.
Its not about lowing environmental standards but frankly its taking too long for companies to go through our regulatory process, Liepert stated.
As an example, some oilsands projects are taking up to four years to get approved.
Liepert announced a joint task force involving the Environment, Energy and Sustainable Resources in consultation with the Energy Resources Conservation Board to try to streamline the regulatory process.
In an interview with the News following the speech, Liepert said the government is looking at all the factors which will make this province attractive to investors over other jurisdictions.
(And) not only at other provinces but other states in the US and our review determined that we werent that competitive, said Liepert.
But we also found that our royalty structure was not competitive and so we made some changes and we are going to make more changes.
Asked by the News about public consultations regarding the Competitive Review, Liepert said it differs from the Royalty Review in that aspect of consultation.
Liepert drew a hard distinction between the governments latest reconfiguration of royalty rates and the public process during the 2007 Royalty Review
The Competitive Review is to determine what it is that investors take into account when they determine whether or not to put their money into our province or elsewhere, said Liepert.
So this is not a public process, this is about how competitive our we when it comes to investment dollars.
He went on to state investment banks in major North American financial centres as well as the industry help formulate that review process.
The Competitive Review was much narrower in scope than the royalty review was, that is why there wasnt a public process. For all intensive purposes, its not the public that is investing dollars into Alberta, its investment houses and industry.
However, for some, the current state of the oil and gas sector could be summed up by an industry worker at the Petroleum Show.
Two years ago at this show, it was all about the boom, said oilfield mechanic Justin Wallace.
Nowadays, its more of the big companies that can come back here and say, yea, were still here. But none of those companies are saying, yea, were here and strong.