Oil and gas investors are looking elsewhere to invest after Canada’s energy industry has been dogged by constant development delays and illegal protests.
The Fraser Institute’s 2021 Canada-US Energy Sector Competitiveness Survey surveyed 71 senior petroleum executives and found that gas-producing Canadian provinces didn’t make their top ten list of places to invest.
All ten spots went to US states, with Texas coming in as the most desirable place to invest in energy and petroleum.
Alberta and Saskatchewan ranked 12th and 11th respectively. Newfoundland came in 16th, British Columbia landed in 18th place and the Northwest Territories came in 20th.
“Policies matter, and when investors are clearly indicating they would rather invest in American states instead of Canadian jurisdictions, policymakers should take note,” said Fraser Institute policy analyst Jairo Yunis in a press release.
The major concerns investors cited with regard to investing in Canada were “uncertainty concerning environmental regulations, regulatory duplication and inconsistencies, and the cost of regulatory compliance as major areas of concern in Canadian jurisdictions compared to U.S states.”
Investors were also concerned about Canada’s political stability as well as its inability to ensure the security of energy development personnel and equipment.
In recent months, tensions at the BC LNG Coastal GasLink site came to a head after illegal protests resulted in company equipment being sabotaged and destroyed.
Protestors also blockaded road access to the development site in Northern B.C., leaving 500 pipeline workers stranded without access to food and water.
The events prompted the RCMP to move into the area and clear the protests on a court-ordered injunction.
Prime Minister Justin Trudeau’s latest commitment to cap Canada’s oil and gas sector emissions was blasted by Alberta Premier Jason Kenney for targeting the industry unfairly.
“I don’t know why they would make such an announcement without consulting the province with the most oil and gas reserves in Canada,” Kenney said.
“The (federal government) has zero chance of achieving its greenhouse gas reduction goals without Alberta’s oil and gas industries. Let’s be a partner in that.”