The province has launched two new programs aimed at getting oil and gas companies to explore new areas and invest in wells in their early stages. Both the Emerging Resources and Enhanced Hydrocarbon Recovery programs will mean paying lower royalty rates on those projects for a longer time.
President of the Canadian Association of Petroleum Producers Tim McMillan says they recognize that new wells and ones early in their development are more costly and come with higher risks. The programs were recommended by the royalty review panel earlier this year.
The changes will go into effect at the beginning of 2017, at the same time as Alberta’s new royalty framework.