If Canada wants to fulfil Prime Minister Stephen Harper's oft-stated goal of becoming an energy superpower, his government and some provinces must do a better job reducing regulatory and financial uncertainty for global oil and gas investors, a trio of industry representatives said Tuesday.
“Quite frankly, as a result of federal and provincial policy decisions . . . investors have lost some confidence in Canada,” said Don Herring, president of the Canadian Association of Oilwell Drilling Contractors, which represents the operators of almost all of the country's drilling and service rigs.
“Governments have in place regulatory policies that result in high-cost production.”
“Canada provides among the lowest rates of return on investment in the world. I know Canadians may be surprised to hear that,” said Gary Leach, executive director of the Small Explorers and Producers Association of Canada. “We have a highly regulated industry. We have some of the highest environmental standards in the world. And all of this increases the costs of operating in Canada. We are facing — and have for several years — an uncertain regulatory climate for CO2 emissions. The uncertainty alone delays, deters and discourages investment.”
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